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F ed er a l R eserve Ba n k o f D allas DALLAS, TE X A S 75222 Circular No. 72-22^ October 3, 1972 INTERPRETATION OF REGULATION Y (Nonbank Activities) To All Banks, Bank Holding Companies, and Others Concerned, in the Eleventh Federal Reserve District: On May 8 , 1972, this Bank forwarded, to you under Circular No. 72-87 a copy of an interpretation of Regulation Y. The interpretation listed those activities that the Board, deter mined to be not "closely related, to banking or managing or controlling banks as to be a proper incident thereto”. Since that time, the Board has added three other activities to that list. The Board’s amended interpretation incorporates these additions as paragraphs (f), (g), and (h), thereby adding to the list of nonpermissible activities the activities of management consulting, property management, and operation of savings and. loan associations. Please note, however, that paragraph (a) has been amended to change the words "Equity funding" to read. "Insurance premium funding" so as to avoid confusion from the claimed right to a service mark by a company engaged in this activity. 72-87. side. This amended interpretation supersedes Circular No. A copy of the interpretation is printed on the reverse Yours very truly, P. E. Coldwell, President This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) BOARD OF GOVERNORS OF THE FEDERAL RESERVE BANK SYSTEM BANK HOLDING COMPANIES INTERPRETATION OF REGULATION Y Interpretation Section 225.126 is am ended to read as follows: S EC T IO N 225.126 A C T IV IT IE S N O T C L O SE L Y R E L A T E D TO B A N K IN G . P ursuant to section 4 ( c ) ( 8 ) of the Bank H old ing C om pany A ct and § 2 2 5 .4 (a ) of Regulation Y, the Board of G overnors has determ ined that the following activities are not so closely related to banking o r m anaging or controlling banks as to be a p roper incident thereto: (c) (d ) (e) (f) (g) (h ) Real estate brokerage. L and development. Real estate syndication. M anagem ent consulting. Property m anagement. O peration of savings and loan associations.* *As indicated in its statement announcing this action, published in the Federal Register of August 10, 1972 (37 F.R. 16133), this activity may be the subject of further consideration by the Board. (a) Insurance prem ium funding — that is, the com bined sale of m utual funds and insurance. (b ) U nderw riting life insurance that is not sold in connection with a credit transaction by a bank holding com pany, or a subsidiary thereof. ♦ 9 /2 9 /7 2 * * * *