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F ederal

reserve

Ba n k

DALLAS. TEXAS

of

D allas

7S222

C ircu lar No. 79-53
March 21, 1979

PROPOSED ADDENDA TO REGULATION O

TO ALL MEMBER BANKS,
BANK HOLDING COMPANIES,
AND OTHERS CONCERNED IN THE
ELEVENTH FEDERAL RESERVE DISTRICT:
The Board of Governors of the Federal Reserve System, on March 8,
1979, issued proposed addenda to Regulation O to implement T itle V III (C orre­
spondent Accounts) and T itle IX (Disclosure of Material Facts) of the Financial
Institutions Regulatory and Interest Rate Control Act of 1978.
Printed on the following pages is a copy of the Board's press release
and enclosed is a copy of the Federal Register document.
Interested persons are invited to submit comments regarding the
proposed regulations. Comments should be in w ritin g and should refer to
F .R .B . Docket No. R-0210. They should be sent to the S ecretary, Board of
Governors of the Federal Reserve System, Washington, D .C . 20551, and must
be received by A p ril 20, 1979.
Any questions on the proposed regulations should be directed to
Uzziah Anderson or William C . Reddick, J r . in our Bank Supervision and
Regulations Department, Ext. 6274.
Sincerely yours,
Robert H . Boykin
First Vice President
Enclosure

Banks and others are encouraged to use the following incoming WATS numbers in contacting this Bank:
1-800-492-4403 (intrastate) and 1-800-527-4970 (interstate). For calls placed locally, please use 651 plus
the extension referred to above.

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

FEDERAL
y «v J

press

RESERVE

release

f*4 L R £ ^ V

For immediate release

March 8, 1979

The Federal Reserve Board and the Federal Deposit Insurance
Corporation today published fo r comment proposed regulations to implement
T itle s V I I I and IX o f FIRA.

The Federal Reserve Board's proposed

regulation applies to a l l member banks, including national banks.
T it le V I I I p roh ibits banks that maintain correspondent account
relationships from extending cred it on p re fe re n tia l terns to each other's
executive o ffic e r s , d ire c to rs and p rin c ip a l shareholders.

The le g is la tio n

a lso prohibits banks from opening a correspondent account relationship
when one o f the banks has outstanding a p referen tial extension o f credit
to an executive o f f i c e r , d irecto r or p rin cip al shareholder o f the other
bank.

The proposed regu lation defines a correspondent account as an

account that is maintained by a bank with another bank for the deposit
or placement o f funds.

Comment is s p e c ific a lly requested on th is

d efin ition .
T it le V I I I establish es certain reporting and public disclosure
procedures for insured banks and fo r th e ir executive o ffic e rs and
principal stockholders o f record, but not fo r directors.
Each executive o ffic e r and p rin c ip a l stockholder o f an insured
bank would report annually to the bank's board o f directors on the maximum
(

amount o f indebtedness of the o ff ic e r or stockholder and each o f his or
her related interests to depository banks, the amount o f such indebtedness
outstanding on December 31, the range o f interest rates on the loans and
the terms and conditions.

A depository bank is a bank that maintains

a correspondent account fo r the insured bank.

-2 Each insured bank would be required to forward an annual
report to the appropriate Federal banking agency li s t i n g the name o f
each executive o ffic e r or p rin c ip a l stockholder who f i l e s a report of
indebtedness and the aggregate amount o f indebtedness o f these persons
and th e ir related interests to the insured bank's depository banks.
In implementing T it le IX, the proposed regu lation would require
each insured bank to f i l e with the apprpriate Federal banking agency an
annual report lis t in g the names o f it s executive o ffic e r s and p rin cip al
stockholders and the aggregate amount o f indebtedness from the insured
bank to these persons and th e ir related in te re sts.
Both o f the reports f ile d with the bank agency would be made
a v a ila b le to the public on request.

As proposed, the f i r s t reports would

cover the period from March 10, 1979,to December 31, 1980.

However, comment

is s p e c ific a lly requested on whether the reporting period fo r 1979
should sta rt on July 1.

As proposed, o ffic e r s and stockholders would f i l e

reports with the boards o f d irecto rs on January 10, 1980, and the insured
banks would f i l e th eir reports with the appropriate agency by January 31,
1980.
The agencies' proposed regulations are attached.

*

*

*

*

*

*

13035

E x trac t from
Federal Register
V O L . 44, NO. 48
F rid a y , M arch 9, 1979
p p . 13035 - 13038

[6210-01-M]
FEDERAL RESERVE SYSTEM
[12 CFR Pari 215]
LOANS TO EXECUTIVE OFFICERS, DIRECTORS
AND PRINCIPAL SHAREHOLDERS

FEDERAL DEPOSIT INSURANCE
CORPORATION
[12 CFR Parts 304, 349]
[Docket No. R-02101
FORMS, INSTRUCTIONS, AND REPORTS LOANS
BY CORRESPONDENT BANKS

A G E N C IE S : Board of Governors of
the Federal Reserve System, Comp­
troller of the Currency, and Federal
Deposit Insurance Corporation.
A C T IO N : Proposed regulations.
S U M M A R Y : The agencies listed above
are considering methods and proce­
dures to implement Title V III (Corre­
spondent Accounts) and Title I X (D is­
closure of M aterial Facts) o f the Fi­
nancial Institutions Regulatory and
Interest Rate Control Act of 1978,
Pub. L. 95-630 ( “F IR A ”). Titles V III
and I X o f F IR A take effect on M arch
10 1979.
Title V I I I prohibits banks that
maintain a correspondent account re­
lationship with each other from ex­
tending credit on preferential terms to
each other’s executive officers, direc­
tors or principal shareholders. It also
prohibits the opening of a correspon­
dent account relationship between
banks where there is a preferential ex­
tension of credit from one bank to an
executive officer, director or principal
shareholder of the other bank. In ad­
dition, Titles V III and I X require in­
sured banks and the executive officers
and principal stockholders of record of
insured banks to file certain reports.
D A T E : Comments must be received by
April 20,1979.
A D D R E S S : Interested persons are in­
vited to submit comments regarding
the proposed regulations. National
banks should address their comments
to the Secretary, Board of Governors
of the Federal Reserve System, W ash ­
ington, D.C. 20551, with a copy to
John E. Shockey, Chief Counsel,
Office of the Comptroller o f the Cur­
rency, 490 L ’Enfant Plaza East, S.W.,

Washington, D.C. 20219. State banks
that are members of the Federal R e­
serve System should send their com­
ments to the Secretary, Board of G ov­
ernors of the Federal Reserve System,
Washington,
D.C.
20551. Insured
banks that are not members of the
Federal Reserve System should ad­
dress their comments to the Office of
the Executive Secretary, Federal D e­
posit Insurance Corporation, 550 17th
Street, N.W ., Washington, D.C. 20429.
A ll other interested persons should ad­
dress their comments to the Board of
Governors of the Federal Reserve
System, with a copy to any other ap­
propriate agency. A ll material submit­
ted should refer to F.R.B. Docket No.
R-0210. A ll comments received will be
made available for public inspection.
FOR
FURTHER
CONTACT:

IN F O R M A T IO N

Board of Governors of the Federal
Reserve System: Bronwen Mason,
Senior Attorney, Legal Division
(202/452-3564), or Michael Bleier,
Senior Attorney, Legal Division
(202/452-3721); Federal Deposit In ­
surance
Corporation:
Alan
J.
Kaplan, Senior Attorney, Legal Divi­
sion (202/389-4433); Comptroller of
the Currency: W illiam H. Rivoir, A t­
torney, Enforcement and Compli­
ance Division (202/447-1989).
S U P P L E M E N T A R Y IN F O R M A T IO N :
a. Title V I I I —Effective M arch 10,
1979, Title V III of F IR A , which
amends section 106 of the Bank Hold­
ing Company Act Amendments of
1970, prohibits banks that maintain a
correspondent account relationship
with each other from extending credit
to each other’s executive officers, di­
rectors
or principal shareholders
unless the extension of credit is (1)
made on substantially the same terms
as those prevailing at the time for
comparable transactions with other
persons and (2) does not involve more
than the normal risk of repayment or
present other unfavorable features.
The agencies propose to interpret the
term “other persons” to mean other
persons not associated with, or em­
ployed by, the bank.
Title V III also prohibits the opening
of a correspondent account relation­
ship between banks where there is a
preferential extension o f credit from
one o f the banks to an executive offi­
cer, director, or principal shareholder
of the other bank.
Persons covered by these prohibi­
tions include any individual or compa­
ny that directly or indirectly owns or
controls more than ten percent of any
class of voting shares o f a bank. In the
proposed rule, a principal shareholder
includes a person who controls a prin­
cipal shareholder, such as a person
th at controls a bank holding company.
In addition, shares owned by an indi-

13036
vidu&l’s Immediate family, as defined
In the Federal Reserve Board’s Regu­
lation O, are deemed to be owned by
the individual.
T h e proposed rule defines a corre­
spondent account as an account that is
maintained by a bank with another
bank for the deposit or placement of
funds. T h e agencies are considering
exclusions from the definition of cor­
respondent account such as time de­
posit accounts at prevailing interest
rates and accounts maintained solely
fo r the purpose o f effecting federal
funds transactions or loan participa­
tions. T h e agencies request comment
on this definition as well as sugges­
tions for other possible inclusions or
exclusions. Such suggestions should be
justified in light of the purposes of
the Act.
In addition to its prohibitions, Title
V III imposes reporting requirements
upon executive officers and principal
stockholders of record. The proposed
regulations define principal stock­
holder of record as a person that, di­
rectly or indirectly, owns, controls, or
has the power to vote more than ten
percent of any class of voting securi­
ties of an insured bank.
F or the purposes of these require­
ments, the term insured bank includes
a branch of a foreign bank, the depos­
its of which are insured by the F D IC .
I f a foreign bank maintains a non-in­
sured branch or an agency or a com­
mercial lending company in the
United States, the branch, agency or
company would qualify as a bank for
purposes o f the prohibitions o f Title
V III, but would not be subject to Title
V I I I ’s reporting requirements.
Executive officers and principal
stockholders of record of insured
hanks are required to provide the
board of directors o f their bank with a
report regarding any extension of
credit made to them and to each of
their related interests by each o f their
bank’s depository banks during a cal­
endar year. A depository bank is de­
fined as a bank that maintains a corre­
spondent account for another bank. A
related interest is a company con­
trolled by, or a political or campaign
committee that benefits or is con­
trolled by,~an executive officer or prin­
cipal stockholder o f record. These re­
porting requirements do not apply to
directors, unless the£ are executive of­
ficers or principal stockholders of
record. F or the purposes of the report­
ing requirements, a depository bank
does not include a bank that main­
tains a correspondent account(s) that
does not exceed $100,000 in the aggre­
gate at any time during the reporting
year. T h e agencies are considering a
lower triggering amount for smaller
banks. In particular, the agencies are
considering a cut-off based upon i per­

centage o f the depositing bank’s total
deposits.
Executive officers and principal
stockholders must include in the
report filed with the bank’s board of
directors (1) the “maximum amount of
indebtedness” of the executive officer
or principal stockholder and of each of
that person’s related interests to each
depository bank; (2) the amount o f in­
debtedness
outstanding
ten
days
before the report is filed of the execu­
tive officer or principal stockholder
and of each of that person’s related in­
terests to each depository bank; (3 )
the range of interest rates on the in­
debtedness; and (4 ) the terms and con­
ditions of the indebtedness. Separate
amounts are to be reported for the ex­
ecutive officer or principal stockholder
and for each of that person’s related
interests.
T h e agencies propose to define the
term “maximum amount of indebted­
ness” as the highest amount that was
owed during the year. As an alterna­
tive, the agencies are considering de­
fining “maximum amount of indebted­
ness” as the sum of all extensions of
credit. W h ile the alternative method
of calculation appears less burden­
some, it yields a higher figure that
may not accurately reflect the extent
of correspondent borrowing by a
bank’s executive officers and principal
stockholders. Comment is specifically
requested on the cost and burden to
insured banks that would be imposed
by adopting either alternative. Com­
ment is also requested on w hether the
“highest amount” should mean ( I ) the
highest average daily, weekly, or
monthly balance during the calendar
year, (2 ) the highest end-of-the-month
balance during the calendar year, or
(3 ) the highest amount calculated on
some other basis.
Title V i n requires each insured
bank to compile the reports submitted
to it by its executive officers and prin­
cipal stockholders of record and to
furnish such compilation annually to
the appropriate bank supervisory
agency. T h e format fo r the compila­
tion will be published at a later date.
The reports submitted by such persons
to the board of directors of the in­
sured bank must be maintained at the
bank fo r five years and should not be
forwarded to the appropriate Federal
banking agency unless requested. The
appropriate agency may require the
reports to be retained by the bank for
an additional period o f time.
Finally, Title V I I I requires each in­
sured bank to file an annual report
with the appropriate Federal banking
agency. In the report, the bank must
list by name each executive officer
and principal stockholder o f record
that files a report with the bank’s
board of directors concerning indebt­
edness from depository banks. T h e in­

sured b u ik also reports the “aggregate
amount of all extensions o f credit”
made to such persons by depository
banks. This single figure'is calculated
by totaling the “maximum amounts of
indebtedness” reported by the execu­
tive officers and principal stockholders
of record. This report will be part of
the report filed by the insured bank
under Title IX and will be made avail­
able to the public upon request.
b.
Title I X —Title IX , which amends
section 7 o f the Federal Deposit Insur­
ance Act, requires each insured bank
to file a report annually with its ap­
propriate Federal banking agency. In
that report, the insured bank lists
each of its executive officers and prin­
cipal stockholders of record and the
aggregate amount o f extensions of
credit by the bank to such persons and
their related interests. T h e agencies
propose to define "aggregate amount”
as the total o f the highest amounts of
indebtedness owed to the insured bank
by each o f the bank’s executive offi­
cers and principal stockholders of
record and each o f that person’s relat­
ed interests. As an alternative, the
agencies are considering defining "a g ­
gregate amount” as the sum of all ex­
tensions of credit made during the re­
porting year. These reports will be
made available to the public at the
bank and at the appropriate Federal
banking agency upon request.
T h e proposed regulations incorpo­
rate the definitions in the Federal Re­
serve B oard’s Regulation O for the
terms “executive officer,” “extension
of credit,” “immediate family,” and
"control of a bank or company.” It
should be noted that under Regula­
tion O, a person is not considered to
control a company or a bank solely be­
cause o f that person’s position as a di­
rector or executive officer of the bank
or company.
T h e prohibitions against preferen­
tial lending in Title V I I I are prospec­
tive only. Preferential loans that are
outstanding as of M arch 10, 1979, are
not specifically addressed in the stat­
ute or the proposed regulations. How­
ever, banks should eliminate the pref­
erential terms on such loans as soon as
practicable. I f such preferential terms
are not eliminated, they may be sub­
ject to criticism by the agencies. This
policy applies particularly to demand
loans that are within the power of the
bank to call and renegotiate at any
time.
It is emphasized that, although
these are proposals and not final regu­
lations, the actual statute takes effect
on M arch 10, 1979, and all banks are
expected to comply with the law be­
ginning on that date. Until final action
is taken on the proposals, however,
banks should refer to the definitions
of terms contained in the proposed
regulations (in particular, the defini-

13037
tiorr o f "correspondent account” ) for
guidance in complying with the prohi­
bitions o f Title v m .
T h e agencies are considering wheth­
er it is necessary to provide forms on
which the statements and reports re­
quired under Titles V III and I X must
be filed. Any such forms, and accom­
panying instructions, would be pub­
lished at a later date. The first reports
under Titles V III and I X are due to be
filed by executive officers and princi­
pal stockholders of record of insured
banks by January 10, 1980, and by in­
sured banks by January 31, 1980.'The
period covered by such reports will be
from M arch 10, 1979 (the effective
date of F IR A ) through December 31,
1979. However, the agencies may con­
sider limiting the first reporting
period to July 1, 1979 to December 31,
1979, in order to provide for the order­
ly implementation of the Act’s report­
ing requirements. Also, comment is re­
quested on whether the January 31
filing date for insured banks should be
extended to a later date.
Accordingly, the Board of Governors
of the Federal Reserve System hereby
proposes to amend the title to the
Board’s Regulation O (12 C F R Part
215) to read "P a rt 215—Loans to Ex­
ecutive Officers, Directors, and Princi­
pal Shareholders,’’ to add a new para­
graph (b ) to section 215.9 of Regula­
tion O, to include sections 215.1
through 215.10 o f Regulation O in
Subpart A titled “Loans by Member
Banks,” and to add a new Subpart B
to Regulation O, to read as set forth
below, and the Board of Directors of
the Federal Deposit Insurance Corpo­
ration hereby proposes to amend 12
C F R by adding thereto a new Part 349
and a new section 304.4 to read as set
forth below.

by name o f each principal stockholder
procedures to implement the reporting
and public disclosure requirements of
o f record o f the member bank; and
(2)
The aggregate amount of all ex­Title V m of F IR A with respect to
member banks and executive officers
tensions o f credit made by the
and principal stockholders of record of
member bank to its executive officers
member banks.
and principal stockholders o f record
ang their related interests. F o r the
§ 215.21 Definitions.
purposes of this paragraph, "aggre­
gate amount of all extensions of
credit” means the sum o f the highest
amounts of indebtedness owed to the
member bank during the year by each
executive officer or principal stock­
holder of record and each of the re­
porting person’s related interests.
Principal stockholder of record has
the meaning given in section 215.21(h)
of Subpart B below.
•

*

*

*

*

2. Sections 215.1 through 215.10 are
designated as new Subpart A, which is
titled:
Subpart A — Loans by Member Banks

3. A new Subpart B is added to Part
215 to read as follows:
Subpart B— Loons by Correspondent Banks
Sec.
215.20 Authority, purpose, and scope.
215.21 Definitions.
215.22 Prohibited transactions.
215.23 Reports by executive officers and
principal stockholders of record.
215.24 Reports by member banks.
215.25 Civil penalties.
A u t h o r i t y : Title V III of the Financial In­
stitutions Regulatory and Interest Rate
Control Act of 1978, Pub. L. 95-630; Secs.
l l ( i ) and 22(h)(7) of the Federal Reserve
Act (12 U.S.C. 248(1) and 375b(7) and 12
U.S.C. 1817(k)(l)).

Subpart B— Loans by Correspondent Bank
§ 215.20

Authority, purpose, and scope.

(a ) Authority. This Subpart is issued
F ederal R eser ve S y s t e m
pursuant to Title V III of the Financial
1.
The Title to Part 215 is revised, Institutions Regulatory and Interest
Rate Control Act of 1978 (" F I R A ” )
and paragraph (b ) is added to §215.9
(P.L. 95-630), and under authority of
as follows:
sections l l ( i ) and 22(h)(7) o f the Fed­
PART 215—IOANS TO EXECUTIVE OFFICERS,
eral Reserve Act (12 U.S.C. 248(i) and
DIRECTORS, AND PRINCIPAL SHAREHOLD­
375b(7)) and 12 U.S.C. 1817(k)(l). Title
ERS
V III amends section 106(b) of the
Bank Holding Company Act Amend­
Subpart A — Loans by Member Banks
ments of 1970 (12 U.S.C. 1972).
(b ) Purpose and Scope. T h e purpose
*
*
•
*
*
of this Subpart is to implement the
provisions o f Title V III o f F IR A . It
§ 215.9 Reports by member banks.
prohibits (1 ) preferential lending by a
bank to executive officers, directors
•
•
•
*
*
and principal shareholders o f another
(b ) On or before January 31 of each bank when there is a correspondent
year, each member bank shall file with
account relationship between the
the appropriate Federal Reserve Bank
banks, and (2 ) the opening of a corre­
or the Comptroller of the Currency, as
spondent account relationship be­
the case may be, a report that shall in­
tween banks when there is a preferen­
clude the following information with
tial extension of credit by one o f the
respect to the preceding calendar year:
banks to an executive officer, director
(1 ) A list by name of each executive or principal shareholder of the other
officer of the member bank and a list
bank. This Subpart also establishes

F or the purposes of this Subpart,
the following definitions apply:
(a ) “Bank” has the meaning given in
12 U.S.C. 1841(c). The term includes a
branch of a foreign bank, or a com­
mercial lending company that is con­
trolled by a foreign bank, or by a com­
pany that controls a foreign bank,
where the branch or agency is main­
tained in a State of the United States
or in the District of Columbia or the
commercial lending company is orga­
nized under State law .1 (12 U.S.C.
3106(d)).
(b ) "Com pany” means any person,
estate, trust, partnership, corporation,
association, or similar organization.
The term does not include any corpo­
ration the majority of the shares of
which are owned by the United States
or by any State.2
(c ) “Control of a company or bank,”
“executive officer,” "extension of
credit,” and "immediate family” shall
have the meanings provided in Sub­
part A.
(d ) “Correspondent account” is an
account that is maintained by a bank
with another bank for the deposit or
placement of funds.
(e ) “Depository bank” means a bank
that
maintains
a
correspondent
account(s) for a member bank in an
amount
aggregating
more
than
$100,000 at any time during the re­
porting year.
( f ) “Person” means an individual or
a company.
(g ) “Principal shareholder” means
any person that directly or indirectly,
or acting through or in concert with
one or more persons, owns, controls, or
has the power to vote more than 10
percent of any class of voting securi­
ties of a bank or company. The term
includes a person that controls a prin­
cipal shareholder (.e.g., a person that
controls a bank holding company).
Shares owned or controlled by a
member of an individual’s immediate
family are considered to be owned or
controlled by the individual.
(h ) “Principal stockholder of record”
means a person who directly or indi•Under this definition, a foreign bank’s
branch in a State would be a bank but,
unless the branch’s deposits were insured by
the FDIC, the branch would not be an “in­
sured bank’’ and would not, therefore, be
subject to the reporting requirements of
sections 215.23 and 215.24, below.
’ The definition of a company in this Sub­
part differs from that contained in Subpart
A. The definition in Subpart A excludes in­
sured banks and includes sole proprietor­
ships.

13038
rectly owns, controls, or has the power
to vote more than 10 percent of any
class of voting securities of an insured
bank. The term includes a person that
controls a principal stockholder of
record.
(1) "Related interest” means any
company controlled by a person and
any political or campaign committee,
the funds or services of which will
benefit a person or that is controlled
t^y a person.’
§ 215.22

Prohibited transactions.

(a )(1 ) N o bank that maintains a cor­
respondent account for another bank
shall make an extension of credit to an
executive officer, director, or principal
shareholder of such other bank unless
the extension o f credit is not preferen­
tial.
(2 ) N o bank shall open a correspon­
dent account at another bank that has
outstanding an extension of credit to
an executive officer, director, or prin­
cipal shareholder of the bank desiring
to open the account unless the exten­
sion of credit is not preferential.
(3 ) N o bank that maintains a corre­
spondent account at another bank
shall make an extension o f credit to an
executive officer, director or principal
shareholder of such other bank unless
the extension of credit is not preferen­
tial.
(4 ) N o bank that has outstanding an
extension of credit to an executive of­
ficer, director, or principal sharehold­
er of another bank shall open a corre­
spondent account at the other bank
unless the extension of credit is not
preferential.
(b )
For the purposes of this section,
an extension of credit is not preferen­
tial if (1 ) it is made on substantially
the same terms, including interest
rates and collateral, as those prevail­
ing at the time for comparable trans­
actions with other persons that are
not covered by this Subpart and who
are not employed by the bank, and (2 )
it does not involve more than the
normal risk of repayment or present
other unfavorable features.

(b ) T h e report required by this sec­
tion shall include the following infor­
mation:
(1 ) T h e “maximum amount o f in­
debtedness” of the executive officer or
principal stockholder of record and of
each of that person’s related interests
to each depository bank;
(2 ) T h e amount of indebtedness of
the executive officer or principal
stockholder of record and of each of
that person’s related interests out­
standing as of December 31 of the cal­
endar year for which the report is
made to each depository bank;
(3 ) T h e range of interest rates
charged on the indebtedness reported
in paragraphs ( b X l ) and (b )(2 ) of this
section; and
(4 ) A general description of the
terms and conditions of the indebted­
ness reported in paragraphs (b )(1 ) and
(b )(2 ) of this section.
(c ) For the purposes of this Subpart,
"maximum amount o f indebtedness”
shall mean the highest amount owed
during the calendar year for which
the report is made.
(d ) The report required by this sec­
tion must be filed by a person who was
an executive officer or a principal
stockholder of record of a member
bank at any time during the reporting
year and who received an extension of
credit during that year from a deposi­
tory bank of the member bank.
§ 215.24

Reports by member banks.

(a ) On or before January 31 of each
year, each member bank shall compile
the
reports
filed
under
section
215.23(a) above, and shall forward a
compilation of such reports to the
Comptroller o f the Currency, in the
case of a national bank, or the appro­
priate Federal Reserve Bank, in the
case of a State member bank. The re­
ports required by section 215.23(a)
above, shall be retained at the member
bank for a period of five years. The
appropriate Federal banking agency
may require these reports to be re­
tained by the bank for an additional
period of time.
(b ) Each member bank shall include
in the report required under section
§ 215.23 Reports by executive officers and
215.9(b) of Subpart A the following in­
formation:
principal stockholders o f record.
( 1 ) A list by name of each person
(a )
I f during any calendar year an
who files a report under section
executive officer or principal stock­
215.23(a) above; and
holder of record of a member bank
• (2) the aggregate amount, or sum, of
had outstanding an extension o f credit
all the maximum amounts of indebted­
from a depository bank(s) of the
ness
reported
under
section
member bank, the executive officer or
215.23(b)(1) above.
stockholder shall, on or before Janu­
ary 10 of the following year, make a
§ 215.25 Civil penalties.
written report to the board of direc­
As
specified
in
subsection
tors of the member bank.4
106(b)(2)(F) of the Bank Holding
’ The definition of related interest In this
Subpart differs from that in. Subpart A. The
definition in Subpart A excludes insured
banks.
4 Persons reporting under this section are
not required to include information on ex-

tensions of credit that are fully described in
a report by a person they control or a
person that controls them, provided they
identify their relationships with such other
person.

Company Act Amendments of 1970 (12
U.S.C. 1972(b)(2)(F)), any bank, or any
officer, director, employee, agent, or
other person participating in the con*
duct of the affairs of the bank, that
violates any provision of this Subpart
shall forfeit and pay a civil penalty of
not more than $1,000 per day for each
day during which the violation contin­
ues.
By Order of the Board of Governors
of the Federal Reserve System March
6,1979.
F ed eral D e p o s it I n s u r a n c e
C o r p o r a t io n
T h e o d o r e E. A l l i s o n ,
Secretary o f the Board.


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102