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FED ER A L RESERVE BANK OF DALLAS DALLAS. TEXAS 75222 C i r c u l a r No. 76-144 O c t o b e r 29, 1976 A m e ric a n R e v o lu tio n B ic en ten n ia l AMENDMENT TO REGULATION Y C o n ti n u a ti o n o f A u to m o b ile L e a s i n g a s P e r m i s s i b l e A c ti v ity F o r B a n k H o ldin g C o m p a n ie s TO ALL BANKS, BANK HOLDING COMPANIES, AND OTHERS CONCERNED IN THE ELEVENTH FEDERAL RESERVE DISTRICT: On O c t o b e r 13, 1976, t h e B o a r d of G o v e r n o r s of t h e F e d e r a l R e s e r v e S y s te m i s s u e d a p r e s s r e l e a s e s t a t i n g its d e t e r m i n a t i o n t h a t b a n k h o l d i n g c o m p a n ie s s h o u l d b e a llo w e d to c o n t i n u e to c o n d u c t a u to m o b ile le a s in g a c t i v i t i e s in a m a n n e r c o n s i s t e n t w ith t h e B o a r d ' s p e r s o n a l p r o p e r t y le a s i n g r e g u l a t i o n . In c o n n e c tio n w ith t h e s t a t e m e n t , t h e B o a r d h a s a m e n d e d R e g u l a ti o n Y , " B a n k H o ld in g C o m p a n i e s . " T h e a m e n d m e n t s p e c i f i e s , a m o n g o t h e r t h i n g s , t h a t s u c h le a s i n g may b e c o n d u c t e d o n ly on a n o n o p eratin g b a s is . A u to m o b ile le a s in g h a s b e e n a p e r m i s s i b l e a c t i v i t y fo r b a n k h o l d i n g c o m p a n ie s s i n c e A p r il 17, 1974. T h e O c t o b e r 13 s t a t e m e n t c o n c l u d e d , u p o n r e e v a l u a t i o n , t h a t a u to m o b ile le a s in g b y b a n k h o ld i n g c o m p a n ie s is e s s e n t i a l l y e q u i v a l e n t to le n d i n g f u n c t i o n s , d o e s n o t c a u s e u n f a i r c o m p e ti tio n , a n d is n o t c o n t r a r y to t h e p r o v i s i o n s of t h e C o n s u m e r L e a s i n g A ct of 1976. M em be r b a n k s a n d o t h e r s t h a t m a in ta in R e g u l a ti o n s B i n d e r s s h o u l d file t h e a m e n d m e n t , w h i c h is p r i n t e d on t h e r e v e r s e of t h i s c i r c u l a r , in t h e i r b i n d e r s . A n y q u e s t i o n s c o n c e r n i n g t h e a m e n d m e n t s h o u l d b e d i r e c t e d to T i m o th y K. I r v i n e of o u r R e g u l a t i o n s D e p a r tm e n t at (214) 651-6169. A d d itio n a l c o p ie s of t h e a m e n d m e n t w ill b e f u r n i s h e d u p o n r e q u e s t to t h e S e c r e t a r y ' s Office of t h i s B a n k . S in ce rely y o u r s , T . W. P la n t First Vice 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 SYSTEM BANK HOLDING COMPANIES AMENDMENT TO REGULATION Yf Effective O ctober 13, 1976, R egulation Y is am ended as fo llo w s: 1. Section 2 2 5 . 4 ( a ) ( 6 ) is am ended by adding a new fo o tn o te 4 at the en d o f paragraph 225.4(a) ( 6 ) (iii) to read as follow s: SE C T IO N 2 2 5 .4 — N O N B A N K IN G A C T IV IT IE S (a ) A ctivities closely related m anaging or controlling banks.*** to banking or ( 6 ) (a ) L easing personal property or acting as agent, broker, or adviser in leasing such property p rov id ed : * * * * * (iii) the lease is on a nonoperating basis;4 2. A s an incident to this am endm ent, footnotes num bered 4 to 12 are redesignated 5 to 13. * * * * * tF or this Regulation to be complete as amended effective October 13, 1976, retain: 1) Printed Regulation Y pamphlet as amended effective June 24, 1974; 2) Technical corrections in Regulation Y pamphlet covering Sections 225.3 and 225.4; 3) Amendment effective December 1, 1975, Section 225.5(c); 4) Amendment effective May 15, 1976, adding a new section 225.6; and 5) This slip sheet. 4For purposes of the leasing of automobiles, the requirement that the lease be on a nonoperating basis means that the bank holding company may not, directly or indirectly, provide for the servicing, repair, or maintenance of the leased vehicle during the lease term; purchase parts and accessories in bulk or for an individual vehicle after the lessee has taken delivery of the vehicle; provide for the loan of an automobile during servicing of the leased vehicle; purchase insurance for the lessee; or provide for the renewal of the vehicle’s license merely as a service to the lessee where the lessee could renew the license without authorization from the lessor.
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