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F ederal reserve Ba n k DALLAS, TEXAS of Dallas 75222 C ircular No. 80-16 J a n u a ry 30, 1980 AMENDMENT TO REGULATION K INTERNATIONAL BANKING OPERATIONS 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 has issued in final form, amendments to its Regulation K which will sim plify procedures for subsidiaries o ft). S. banking organizations to establish branches in foreign countries. A copy of the Board's order as published in the Federal Register is enclosed. Member banks and others who maintain Regulations Binders should file the enclosed amendment in their binders. Any questions concerning Regulation K should be directed to the Attorney's Section of our Holding Company Supervision Depart ment, Ext. 6182. Additional copies of the amendment will be furnished upon request to the Secretary's Office of this Bank, Ext. 6267. Sincerely yours, Robert H. Boykin First Vice President Enclosure Banks and others are encouraged to use the following incoming W ATS numbers in contacting this Bank: 1-800-442-7140 (intrastate) and 1-800-527-9200 (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) 70708 Federal Register / Vol. 44, No. 238 / Monday, December 10, 1979 / Rules and Regulations T h is a c t i o n r e lie v e s a p r o c e d u r a l r e s t r ic t io n a n d , th e re fo re , th e n o tic e a n d p u b lic p a r ti c ip a t io n p r o v is io n s o f 5 U .S.C . 553 w i t h r e g a r d to th e B o a r d ’s a c t i o n a r e u n n e c e s s a r y . T h is a c t i o n is t a k e n p u r s u a n t to th e B o a r d 's a u th o r i t y u n d e r s e c ti o n s 25 a n d 25(a) o f th e F e d e r a l R e s e r v e A c t (12 U .S.C . 601 et seq.)\ a n d s e c tio n 5(b) o f th e B a n k H o ld in g C o m p a n y A c t (12 U .S.C . 1844(b)). E ffe c tiv e N o v e m b e r 2 8 ,1 9 7 9 , P a r t 211 o f 12 C F R C h a p te r II is a m e n d e d a s fo llo w s: PART 211—INTERNATIONAL BANKING OPERATIONS FEDERAL RESERVE SYSTEM B y r e v is in g § 211.5(b)(3) to r e a d a s fo llo w s: 12 CFR Part 211 §211.5 Investm ents In other organizations. [Docket No. R-0263] * International Banking Operations; Regulation K AGENCY: Board of Governors of the Federal Reserve System. ACTION: F in a l ru le . su m m a r y : T h e B o a r d h a s a m e n d e d s e c tio n 211.5(b)(3) o f its R e g u la tio n K (12 C F R 211.5(b)(3)), to s im p lify th e p r o c e d u r e s b y w h i c h s u b s id i a r ie s o f U n ite d S t a t e s b a n k in g o r g a n iz a tio n s m a y e s t a b l i s h b r a n c h e s in fo re ig n c o u n trie s . EFFECTIVE DATE: N o v e m b e r 28,1 9 7 9 . FOR FURTHER INFORMATION CO NTACT C. K e e fe H u r le y , S e n io r C o u n s e l (202/452 3269), o r M ic h a e l L. K a d is h , A t to r n e y (202/45 2 -3 4 2 8 ), L e g a l D iv isio n , B o a rd o f G o v e r n o r s o f th e F e d e r a l R e s e rv e S y s te m , W a s h in g t o n , D .C . 20551. SUPPLEMENTARY INFORMATION: O n Ju n e 1 4 ,1 9 7 9 , th e B o a r d r e v i s e d its r e g u la t io n s g o v e r n in g t h e i n t e r n a ti o n a l o p e ra tio n s o f m e m b e r b a n k s, E dge a n d A g r e e m e n t C o r p o r a tio n s , a n d b a n k h o ld in g c o m p a n i e s (“ i n v e s t o r s ” ), a n d c o n s o l id a t e d th e m i n to o n e re g u la tio n , R e g u la tio n K. S e c tio n s 211.3(a) a n d 211.4(c)(2) o f R e g u la tio n K g o v e r n th e e s t a b l i s h m e n t o f fo re ig n b r a n c h e s b y m e m b e r b a n k s a n d E d g e C o r p o r a tio n s , r e s p e c tiv e ly ; a n d § 211.5(b)(3) a p p li e s th e p r o c e d u r e s o f § 211.3(a) to th e e sta b lish m e n t o f b ra n c h e s by s u b s id i a r ie s o f m e m b e r b a n k s , E d g e C o r p o r a tio n s , A g r e e m e n t C o r p o r a tio n s , a n d b a n k h o ld in g c o m p a n ie s . T h e B o a rd h a s a m e n d e d $ 211.5(b)(3) to sim p lify a p p r o v a l p r o c e d u r e s fo r th e e sta b lish m e n t o f b ra n c h e s b y s u b s id i a r ie s o f a n in v e s to r w h e r e th e in v e s to r , its s u b s id i a r ie s , o r a ff ilia te s h a v e o f fic e s o r b r a n c h e s in fo re ig n c o u n tr ie s . * * * * (b) Investment limitations. * * * (3) A s u b s i d i a r y ( o th e r t h a n a m e m b e r b a n k o r a n E d g e C o r p o r a tio n ) m a y e s t a b l i s h a fo re ig n b r a n c h w i t h p r io r a p p r o v a l o f th e B o a rd . U n le s s o t h e r w is e a d v i s e d b y th e B o a rd : (i) a s u b s id i a r y (o th e r t h a n a m e m b e r b a n k o r a n E d g e C o r p o r a tio n ) w h o s e a f f ilia te s h a v e o ff ic e s ( o th e r t h a n r e p r e s e n t a t i v e o ffic e s) in tw o o r m o r e fo re ig n c o u n tr ie s m a y e s t a b l i s h in itia l b r a n c h e s in a d d i t i o n a l fo re ig n c o u n tr i e s a f te r 60 d a y s ' n o tic e to th e B o a rd ; (ii) a f o re ig n b a n k s u b s id i a r y m a y , w i t h o u t p r io r a p p r o v a l o r p r i o r n o tic e , e s t a b l i s h a d d i t i o n a l b r a n c h e s in a n y c o u n tr y in w h i c h it o p e r a t e s o n e o r m o r e o ffic e s ( o th e r t h a n r e p r e s e n t a t i v e o ffic e s); a n d (iii) w i t h o u t p r io r a p r o v a l o r p r i o r n o tic e , a n y s u b s id i a r y ( o th e r th a n a fo re ig n b an k , m em b e r b a n k , or Edge C o r p o r a tio n ) m a y e s t a b l i s h a d d it i o n a l b r a n c h e s in a n y fo re ig n c o u n tr y in w h i c h a n y a f f ilia te o p e r a t e s o n e o r m o re o ffic e s (o th e r t h a n r e p r e s e n t a t i v e o ffice s]. A u t h o r i ty to e s t a b l i s h b r a n c h e s th ro u g h p r io r a p p r o v a l o r p r io r n o tic e s h a ll e x p ir e o n e y e a r fro m t h e e a r l i e s t d a te o n w h ic h t h a t a u th o r i t y c o u ld h a v e b e e n e x e r c is e d , u n l e s s e x t e n d e d b y th e B o a rd . A n i n v e s to r s h a ll in fo rm th e B o a rd w i t h in 30 d a y s o f th e o p e n in g , c lo sin g , o r r e lo c a t i o n o f a b r a n c h a n d th e a d d r e s s o f a n e w o r r e lo c a t e d fo re ig n b r a n c h . * * * * * By O rder of the Board of G overnors of the Federal R eserve System, effective Novem ber 28,1979. Theodore E. Allison, Secretary of the Board. [FR Doc. 79-37825 Filed 12-7-79: 8:45 am) BILLING COOE 6210-01-M B O A R D O F G O V E R N O R S O F T H E FE D E R A L R E SE R V E SY STEM INTERNATIONAL BANKING OPERATIONS A M E N D M E N T S T O REGULATION K t As a m ended effective N ovem ber 28, 1979. Effective November 28, 1979, section 211.5(b) is amended by revising subparagraph (3) to read as follows: SECTION 211.58— INVESTMENTS IN OTHER ORGANIZATIONS * * * * * (b) I n v e s t m e n t l im i t a t i o n s . * * * • * (3) A subsidiary (other than a member bank or an Edge Corporation) may establish a foreign branch with prior approval of the Board. Unless otherwise advised by the Board: (i) a subsidiary (other than a member bank or an Edge Corporation) whose affiliates have offices (other than represen tative offices) in two or more foreign countries may establish initial branches in additional foreign coun tries after 60 days’ notice to the Board; (ii) a fore ign bank subsidiary may, without prior approval or prior notice, establish additional branches in any country in which it operates one or more offices (other than representative offices); and (iii) without prior approval or prior notice, any subsidiary (other than a foreign bank, member bank, or Edge Corp oration) may establish additional branches in any foreign country in which any affiliate operates one or more offices (other than representative offices). Authority to establish branches through prior approval or prior notice shall expire one year from the earliest date on which that authority could have been exercised, unless extended by the Board. An investor shall inform the Board within 30 days of the opening, closing, or relocation of a branch and the address of a new or relocated foreign branch. * * * * * t For this Regulation to be complete as amended November 28. 1979. retain: 1) Printed regulation pamphlet dated June 14. 1979. 2) This slip sheet. N O V E M B E R 1979
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