The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
F ederal Reserve Ban k
DALLAS, TE X A S
of
Dallas
75222
Circular No. 79-200
December 6, 1979
AMENDMENTS TO REGULATION Y
Bank Holding Companies and Change in Bank Control
Rules of Procedure and Rules R egarding Delegation of A u th o rity
TO ALL MEMBER BANKS,
BANK HOLDING COMPANIES
AND OTHERS CONCERNED IN THE
ELEVENTH FEDERAL RESERVE D IS TR IC T:
T h e Board of G overnors of the Federal Reserve System has
issued, in final form , amendments to its Regulation Y , Rules of Procedure
and Rules R egarding Delegation of A u th o rity . T h e amendments, w hich
w ere effective October 24, 1979, address the sup ervision of Foreign Banking
O rganizations and Edge Corporations by Federal Reserve Banks.
Enclosed is the te x t of the Board's o rd er as published in the
Federal R e g is te r, copies of the amendments to Regulation Y , and Rules
of P rocedure. The amendments a re being p rin te d in the new form at recen tly
adopted by this Reserve Bank. A ll c u rre n t amendments includin g those
recently adopted, a re included in the slipsheet for each regulation and
ru le affected. Member Banks and others should file the enclosed amendments
in th e ir Regulations B in d e rs . Please destroy all previous slipsheets for
Regulation Y and Rules of P rocedure.
Please note that the p rin te d copy of the amendments to Rules
R egarding Delegation of A u th o rity is not being fu rn is h ed at this tim e.
T h is amendment w ill be incorporated into a new pam phlet w hich w ill be
d istrib u ted in the near fu tu re .
Banks and others are encouraged to use the fo llo w in g incom ing WATS num bers in co n ta ctin g this Bank:
1-800-442-7140 (intrastate) and 1-800-527-9200 (interstate). For ca lls 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)
-2-
A ny questions concerning these amendments to Regulation Y
and Rules R egarding Delegation of A u th o rity should be d irected to the
A tto rn ey's Section of our Holding Company S u pervision Departm ent,
E xt. 6182. In q u iries reg a rd in g Rules of Procedure should be directed
to our Legal Departm ent, Ext. 6228.
A dditional copies of the amendments w ill be fu rn ish ed upon
request to the S e cretary's O ffice of this Bank, E xt. 6267.
S in cerely y o u rs ,
Robert H . Boykin
F irs t V ice President
Enclosures
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
RULES OF PROCEDURE
AM ENDM ENTS
1 . Section 2 62.3(g )(4) is amended by deleting
the words, “E ach such Order is published in the
Federal Register.”
2. Effective N ovem ber 6 . 1978. section 2 6 2 .3
is amended by adding a new subsection (b) to read
as follows:
SE C T IO N 2 6 2 .3 — A P P L IC A T IO N S
*
* *
*
*
(b)
N otice of applications. (1) In the case of
applications.
(i) for membership in the Federal Reserve
System where such membership would con fer
Federal deposit insurance on a bank,
(ii) by a State member bank for the establish
ment of a domestic branch or other facility
that would be authorized to receive deposits,
(iii) by a State member bank fo r the reloca
tion o f a domestic branch office.
(iv) for merger, consolidation, or acquisition
of assets or assumption o f liabilities, if the
acquiring, assuming, or resulting bank is to be
a State m em ber bank,
(v) to become a bank holding company, and
(v i) by a bank holding com pany to acquire
ownership or control of shares or assets o f a
bank, or to merge or consolidate with any other
bank holding company,
the applicant shall, prior to filing such application,
cause to be published on the same day of each of
two consecutive weeks a notice containing the
name of the applicant or applicants, the subject
m atter o f the application, the location at which
the applicant proposes to engage in business, and
an invitation to the public to give written com ment
upon the application to the appropriate Federal
Reserve Bank no later than thirty days after the
date of publication o f the first notice. Such notice
shall be published in a newspaper o f general cir
culation in (A) the community in which the head
office o f the bank is or is to be located in the case
o f an application fo r membership that would con
fer deposit insurance, (B) the community or com
munities in which the head office of the bank and
the proposed branch or other facility (other than
an electronic funds transfer facility) are located in
the case o f an application for the establishment
o f a domestic branch or other facility that would
be authorized to receive deposits, (C) the com m u
nity or com munities in which the head office of
the bank, the office to be closed, and the office
to be opened are located in the case o f an applica
tion fo r the relocation o f a domestic branch office.
(D) the com munity or com munities in which the
head office of each o f the banks to be party to the
merger, consolidation, or acquisition o f assets or
assumption o f liabilities are located in the case o f
an application by a bank fo r m erger, consolida
tion, or acquistion of assets o r assumption of
liabilities, or (E) the com munity or communities
in which the head offices of the largest subsidiary
bank, if any, o f an applicant and o f each bank,
shares of which are to be directly or indirectly
acquired, are located in the case o f applications
under section 3 o f the Bank Holding Company
A ct.
(2)
In addition to the foregoing notice, an ap
plicant, in the case o f an application to relocate a
domestic branch office or other facility that would
be authorized to receive deposits, shall post in a
conspicuous public place in the lobby of the office
to be closed a notice containing the information
specified in section 2 62.3(b )(1). Such notice
should be posted on the date o f the first notice
required by section 262.3(b )(1).
* * * * *
3.
Effective O ctober 19, 1978, section 2 6 2 .3 is
amended by adding a new subsection 2 6 2 .3 (d) to
read as follows:
S E C T IO N 2 6 2 .3 — A P P L IC A T IO N S
* * * * *
(d)
Submission o f comments and requests for
hearing. The Board will consider a com m ent or
request fo r hearing with respect to an applica-
For this Regulation to be complete retain:
1) Regulation pamphlet.
2) This slip sheet. (Destroy amendments effective October 19, 1978
and November 6, 1978.
O C T O B E R 1979
tion only if it is in writing and is sent to the
Secretary of the Board or the appropriate Fed
eral Reserve Bank on or before the date pre
scribed in the
notice with re
spect to applications filed under sections 3
or 4 o f the Bank Holding Com pany Act or, in
the case o f other applications, the date specified
in the newspaper notice with respect to such
applications, or where no such date is prescribed,
on or before the thirtieth day after the date such
notice is first published. Sim ilarly, the Board will
consider com ments on an application from the
Attorney G eneral or a banking supervisory
authority to which notification of receipt of an
application has been given, only if such com ment
is received by the Secretary o f the Board within
thirty days o f the date o f the letter giving such
notification. Any com m ent on an application that
requests a hearing must include a statement of
why a written presentation would not suffice in
lieu of a hearing, identifying specifically any
questions o f fact that are in dispute and summa
rizing the evidence that would be presented at a
hearing. In every case where a timely com ment or
request for hearing is received as provided
herein, a copy o f such com ment or request shall
be forwarded promptly to the applicant for its re
sponse. The Board will consider the applicant’s
response only if it is in writing and sent to the
Secretary of the Board on or before the tenth day
after the date of the letter by which it is fo r
warded to the applicant. At the same tim e it
transmits its response to the Board, the applicant
should transmit a copy of its response to the per
son or supervisory authority making such com
ment or requesting a hearing. Notwithstanding
the foregoing, the Board may, in its sole discre
tion and without notifying the parties, take into
consideration the substance o f com ments with re
spect to an application, (but not requests fo r hear
ing) that are not received within the time periods
provided herein.
Federal Register
=1'
*
*
*
*
4.
Effective O ctober 19, 1978, section 2 62 .3
is amended by adding a new subsection 2 6 2 .3 (i)
to read as follows:
S E C T IO N 2 6 2 .3 — A P P L IC A T IO N S
♦
*
*
*
*
(i) Reconsideration o f certain Board actions.
T h e Board may reconsider any action taken by it
on an application upon receipt by the Secretary of
the Board o f a written request fo r reconsidsration from any party to such application, on or
before the fifteenth day after the effective date of
the Board ’s action. Such request should specify
the reasons why the Board should reconsider its
action,
and present
relevant facts that,fo r good
cause shown, were not previously presented to
the Board. W ithin ten days of receipt o f such a
request, the G eneral Counsel, acting pursuant to
delegated authority (12 C .F .R . 265.2 (b) (7)).
shall determine whether or not the request for
reconsideration should be granted, and shall notify
all parties to the application orally by telephone of
this determ ination within ten days. Such notifica
tion will be confirmed promptly in writing. In the
exercise of this authority, the General Counsel
shall confer with the D irectors o f other interested
Divisions o f the Board or their designees. N ot
withstanding the foregoing, the Board may. on its
own motion if it deems reconsideration appropri
ate, elect to reconsider its action with respect to
any application, and the parties to such applica
tion shall be notified by the Secretary of the
Board o f its election as provided above. I f it is
determined that the Board should reconsider its
action with respect to an application, such action
will be stayed and will not be final until the
Board has acted on the application upon reconsid
eration. I f appropriate, notice of reconsideration
of an application will be published promptly in
the
* * * * *
Federal Register.
As an incident to these amendments, para
graph 262.3(g )(5) is withdrawn. Subsections (b),
(c), (d), (e). (f), (g), and (h) are redesignated (c),
(e), (f), (g), (h), (j), and (k).
5. Effective October 24. 1979. section 2 6 2 .3 is
amended by deleting subparagraph (k)(5) and revis
ing subparagraph (c) to read as follows:
SECTION 2 6 2 .3 — APPLICATION S
*
*
*
*
*
(c )
F ilin g o f a p p lic a tio n s . Any application
should be sent to the Federal Reserve Bank of the
district in which the head office of the parent bank
ing organization is located, except as otherwise spe
cified on application forms, and that Bank will for
ward it to the Board when appropriate: however, in
the case o f a foreign bank holding company, as de
fined in section 2 2 5.4(g ) of this chapter, applica
tions shall be sent to the Federal Reserve Bank of
the district in which the operations of the organiza
tion's subsidiary banks are principally conducted.
In the case o f a foreign banking organization that is
not a bank holding company but that has one or
more branches, agencies, or commercial lending
companies in any State o f the United States or the
District of Columbia, applications shall be sent to
the Federal Reserve Bank o f the district in which
the organization's banking assets arc the largest.
Applications o f a member bank subsidiary, how
ever. should be filed with the Reserve Bank of the
district in which the member bank is located.
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 RESE R V E SYSTEM
BANK HOLDING COMPANIES AND CHANGE IN BANK CONTROL
AMENDMENTS TO REGULATION Y
t
As amended effective October 24, 1979
1.
Effective January 1, 1979, as to applications
accepted by any Federal Reserve Bank on or after
that date, section 2 2 5 .4 is amended by revising
subparagraphs (b )( 1) and (b)( 2 ) to read as follows:
SE C T IO N 225.4— N O N B A N K IN G A C T IV IT IE S
*
*
*
*
*
(b)(1) D e novo entry. A bank holding com
pany may engage
(o r continue to engage
in an activity earlier com m enced
directly or indirectly, solely in activities described
in paragraph (a ) of this section, 4 5 days after the
com pany has furnished its Reserve B ank a notice
of the proposal (in substantially the same form
as F .R . Y -4 A ) , unless the company is notified to
the contrary within that time or unless it is per
mitted to consummate the transaction at an
earlier date on the basis o f exigent circum stances
of a particular case. T he Board will publish in the
notice o f any such proposal and
will give interested persons an opportunity to
express their views on the proposal to the Reserve
Bank. I f adverse com ments o f a substantive nature
are received within the time specified in the
notice ,11 or if it otherwise appears appropriate
in a particular case, the Reserve B ank may inform
the com pany that (i) the proposal shall not be
consummated until specifically authorized by the
Reserve Bank or by the Board or (ii) the proposal
should be. processed in accordance with the pro
cedures o f subparagraph ( 2 ) o f this paragraph.
W ith respect to activities to be engaged in outside
the United States, the procedures of this sub-
de novo
de novo),
Federal Register
11 If a Reserve Bank decides that adverse com m ents are
not of a substantive nature, the person subm itting the
com m ents may request review by the Board of that
decision in accordance with the provisions of § 265.3 of
the Board's Rules Regarding Delegation of A uthority (12
C FR 265.3) by filing a petition for review with the Secre
tary of the Board.
paragraph apply solely to activities to be engaged
in directly by a domestic bank holding company
or by domestic nonbank subsidiaries of any bank
holding company. Paragraphs ( f ) and (g ) o f this
section govern other international operations of
bank holding companies.
(2)
Acquisition of going concern. A bank hold
ing com pany may apply to the Board to acquire
or retain the assets o f or shares in a company
engaged solely in activities described in paragraph
(a)
o f this section by filing an application with
its Reserve Bank (Form F .R . Y -4 ). T he Board will
publish in the
a notice of any
such application and will give interested persons
an opportunity to express their views (including,
where appropriate, by means of a hearing) on the
question whether perform ance o f the activity pro
posed by the holding company can reasonably be
expected to produce benefits to the public, such
as greater convenience, increased com petition or
gains in efficiency, that outweigh possible adverse
effects, such as undue concentration of resources,
decreased or unfair com petition, conflicts o f inter
ests, or unsound banking practices.
Federal Register
*
*
*
*
*
2.
Effective M arch 10, 1979, the title to Regu
lation Y is revised to read “Part 225-B an k H old
ing Companies and Change in Bank C ontrol” and
section 225.1 is revised to read as follow s:
S E C T IO N
2 2 5 .1 — A U T H O R IT Y ,
A N D D E F IN IT IO N S
SC O P E ,
(a)
Authority and scope. This P art is issued by
the Board of G overnors of the Federal Reserve
System under section 5(b) o f the Bank Holding
Company A ct of 1 9 5 6 (“the A c t”) (12 U .S.C .
§ 1844(b )) and section 7 (j)( 13) o f the Federal
Deposit Insurance A ct, as amended by the Change
in Bank Control A ct o f 1978 (“the Control A ct”),
(12 U .S.C . § 1 8 1 7 0 (1 3 ) ). Sections 2 2 5 .2 through
t For this Regulation to be complete as amended October 24, 1979, retain:
1) Printed Regulation pamphlet dated April 5, 1978.
2) This slip sheet (Destroy amendments effective January 1, 1979,
Section 225.4(b); March 10, 1979, Section 225.1; March 10, 1979,
Section 225.7; April 2, 1979, Section 225.4(a); and June 14, 1979,
Section 225.4(f).
O C T O B E R 1979
2 2 5 .6 o f this Part implement the A ct, and section
other person will own a greater proportion o f that
2 2 5 .7 of this Part implements the Control Act.
class of voting securities.
(b) Terms used in the Act. As used in this Part,
O ther transactions resulting in a person’s con
the terms “bank holding com pany,” “com pany,”
trol of less than 25 per cent o f a class o f voting
“bank,” “subsidiary,” and “Board ” have the same
shares of a bank holding com pany or State m em
meanings as those given such terms in the Act.
ber bank would not result in control fo r purposes
As used in section 2 2 5 .7 if this Part, the term
o f the A ct. An acquiring person may request an
“person” has the meaning given it in the Control
opportunity to contest the presumption established
Act.
by this paragraph with respect to a proposed
(c) Federal Reserve Bank. The term “Federal
transaction. The Board will afford the person an
Reserve B an k ” as used in this Part with respect
opportunity to present views in writing or, where
to action by, on behalf of, or directed to be taken
appropriate, orally before its designated repre
by a bank holding company or other organization
sentatives either at inform al conference discus
shall mean either the Federal Reserve Bank of
sions or at inform al presentations of evidence.
the Federal Reserve district in which the oper
(b) Notices. Section 2 6 5 .3 o f the Board's Rules
ations o f the bank holding com pany or other
of Procedure governs the submission o f notices
organization are principally conducted, as meas
required by the Control A ct, except that notices
ured by total deposits held or controlled by it on
should be sent to the Federal Reserve Bank of
the date on
which it becam e, or is to become,
the district in which the affected bank or bank
a bank holding com pany, or such Reserve Bank
holding com pany is located. N otice shall not be
as the Board may designate. W ith respect to
considered given unless inform ation provided is
notices filed and other actions taken under the
responsive to every item specified in paragraph 6
Control A ct, the term refers to the Federal R e
of the Control A ct (12 U .S.C . § 1 8 1 7 (j)(6 )), or
serve Bank for institution to be acquired, as
every item prescribed in the appropriate Board
determined by the preceding sentence in the case
forms. W ith respect to personal financial state
of bank holding com panies and by section 9 o f
ments required by paragraph 6 (B) of the Control
the Federal
Reserve A ct in the case of State
A ct, an individual acquirer may include a current
m em ber banks.
statement of assets and liabilities, as o f a date
3.
Effective M arch 10, 1979, Regulation Y
within 90 days o f the notice, a brief income
is amended by adding a
new section, § 2 2 5 .7 ,
summary, and a statem ent o f material changes
as follows:
since the date thereof, subject to the authority of
the Federal Reserve Bank or the Board to require
SE C T IO N 2 2 5 .7 — C H A N G E IN B A N K
additional inform ation.
CON TROL
(a)
Acquisitions of Control.14 Under the Con
trol A ct, acquisitions by a person or persons act
ing in concert o f the power to vote 25 per cent
or more o f a class o f voting securities o f a bank
holding com pany or State member bank, unless
exempted, require prior notice to the Board. In
addition, a purchase, assignment, transfer, pledge,
or other disposition of voting stock through
which any person will acquire ownership, control,
or the power to vote ten per cent or more o f a
class of voting securities of a bank holding com
pany or State m em ber bank will be deemed to be
an acquisition by such person o f the power to
direct that institution’s management or policies if:
( 1 ) the institution has issued any class of
securities subject to registration under section 12
o f the Securities Exchange A ct o f 1934 (15
U .S.C . § 7 8 1 ); or
(2 ) immediately after the transaction no
14 C ontrol is defined in the C ontrol A ct as the power,
directly or indirectly, to direct the m anagem ent or policies,
or to vote 25 per cent or m ore of any class of voting
securities, of an institution. 12 U.S.C. § 1817(j)(8)(B).
(c) Exempt transactions. T h e following trans
actions are not subject to the prior notice require
ments o f the Control A ct:
( 1 ) the acquisition of additional shares o f a
bank holding company or State m em ber bank by
a person who continuously since M arch
1979,
held power to vote 25 per cent or more o f the
voting shares of that institution, or by a person
who has acquired and maintained control of that
institution after complying with the Control A ct’s
procedures;
( 2 ) the acquisition of additional shares o f a
bank holding com pany or State mem ber bank
by a person who under paragraph (a) o f this sec
tion would be deemed to have controlled that
institution continuously since M arch 9, 1979, if:
(i) the transaction will not result in that
person’s direct or indirect ownership or power
to vote 25 per cent or m ore o f any class o f
voting securities o f the institution; or
9,
(ii) in other cases, the Board determines that
the person has controlled the institution con
tinuously since M arch 9, 1979;
(3) the acquisition of shares in satisfaction of
a debt previously contracted in good faith or
through testate or intestate succession or bona
fide gift, provided the acquirer advises the Federal
Reserve Bank within thirty days after the acquisi
tion and provides any inform ation specified in
paragraph 6 of the Control A ct that the Reserve
Bank requests;
(4) a transaction subject to approval under
section 3 o f the Bank Holding Company A ct or
section 18 of the Federal Deposit Insurance A ct;
(5) a transaction described in sections 2(a)(5)
or 3(a)(A ) or (B) o f the Bank Holding Company
A ct by a person there described;
(6 ) a customary one-time proxy solicitation and
receipt of pro-rata stock dividends; and
(7) the acquisition o f shares o f a foreign bank
holding company, as defined in section 225.4(g ) of
this Part, provided this exemption does not extend
to the reports and inform ation required under
paragraphs 9, 10, and 12 of the Control Act
(12 U .S.C . § 1 8 1 7 (j)(9), (10), and (12)).
4. Effective April 2, 1979, section 225.4(a) is
amended by adding the following new paragraph
(13) immediately following § 22 5 .4 (a ) (12):
SECTION 225.1 — DEFINITIONS
(b)
Federal Reserve Bank. The term ' Federal
Reserve B a n k " as used in this Part with respcct to
action by. on behalf of. or directed to be taken by a
bank holding company or other organization shall
mean either the Federal Reserve Bank o f the Feder
al Reserve district in which the operations o f the
bank holding company or other organization are
principally conducted, as measured by total deposits
held or controlled by it in subsidiary banks on the
date on which it became, or is to become, a bank
holding com pany, or such Reserve Bank as the
Board may designate. In the case o f a foreign bank
ing organization that is not a bank holding company
but which has one or more branches, agencies, or
commercial lending companies located in any State
o f the United States or the District of Columbia.
“ Federal Reserve B a n k " shall mean, unless other
wise determined by the Board, the Reserve Bank of
the district in which its banking assets arc the
largest as of the later o f January 1. 1980. or the
date that it establishes its first branch, agency, or
commercial lending company.
*
*
*
*
*
*
5. Effective October 24. 1979. scction 225.1 is
amended by revising subparagraph (b). Section
22 5 .4 is amended by revising subparagraph (g)(3).
The amendments read as follows:
*
*
*
*
*
*
(g) Foreign bank holding companies.
*
(1 3 )
T h e sale at retail o f money orders having
a face value of not more than $ 1 ,0 00 and travelers
checks and the sale of U .S. savings bonds.
*
SECTIO N 2 2 5 .4 — NONBANKING A C TIV ITIES
*
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
*
*
*
*
*
*
*
*
*
*
(3)
A foreign bank holding company that is of
the opinion that other activities or investments may.
in particular circum stances, meet the conditions for
an exemption under section 4 (c)(9) of the Act may
apply to the Board for such determination by sub
mitting to its Reserve Bank a letter setting forth the
basis for that opinion.
* * * * *
64898
Federal Register / Vol. 44 ftp. 217 / Wednesday. November 7, 1979 / Rules and Regulations
FEDERAL RESERVE SYSTEM
12 CFR Parts 225,262, and 265
[D o c k * No. R -0255]
Supervision of Foreign Banking
Organizations and Edge Corporations
by Federal Reserve Banks
AGENCY: Board of Governors of the
Federal Reserve System.
ACTION: Final rule.
SUMMARY: The Board has amended its
regulations to assign responsibility for
receiving applications and reports from
a foreign bank that does not have a
subsidiary bank in the United States to
the Federal Reserve Bank of the district
in which banking assets of the foreign
bank are the largest. In addition, the
Board has amended its regulations to
transfer primary responsibility for the
supervision, examination, and
processing of applications of an Edge
Corporation from the Reserve Bank of
the district in which such Corporation is
located to the Reserve Bank responsible
for supervising the Corporation’s parent
holding company or bank. The
amendments are being adopted in order
to centralize in one Reserve Bank the
responsibility for supervising the
operations of banking organizations
headquartered in its district.
EFFECTIVE DATE: October 24,1979.
FOR FURTHER INFORMATION CONTACT: C.
Keefe Hurley, Senior Counsel (202-452
3269], or Michael L. Kadish, Attorney
(202-452-3428), Legal Division, Board of
Governors of the Federal Reserve
System.
SUPPLEMENTARY INFORMATION: Section
25(a) of the Federal Reserve Act (12
U.S.C. 611-631) provides for the
organization of corporations for the
purpose of engaging in international or
foreign banking and financial operations
("Edge Corporations"), subject to such
rules and regulations as the Board may
prescribe. In accordance with the
Board’s Regulation K, the Board's Rules
of Procedure, and the Board's Rules
Regarding Delegation of Authority, each
Edge Corporation Is required to submit
reports to and subject itself to
examinations by the Reserve Bank of
the district in which the Edge
Corporation is located. On June 14,1979,
the Board revised Regulation K, 12 CFR
Part 211, affording Edge Corporations
wider banking and investment powers.
There has been significant growth in the
number and size of Edge Corporations,
most of which are wholly owned
subsidiaries of United States banks or
bank holding companies. Because of the
close relationship between Edge
Corporations and their parent
institutions, the Reserve Bank
responsible for supervising of the parent
organizations should also have
responsibility for supervision their
subsidiary Edge Corporations. The
Board has revised its procedures so that
the Reserve Bank of the district where
an Edge Corporation's parent holding
company or bank is located will be
responsible for all of the organization’s
out-of-district facilities.
A foreign bank that operates one or
more branches, agencies, or commercial
lending companies in the United States
is subject to certain provisions of the
Bank Holding Company Act (12 U.S.C.
1841 et seq.) and to other supervisory
and regulatory requirements as a result
of the International Banking Act of 1978.
The Board has assigned responsibility
for receiving»applications and reports
from such an institution to the Reserve
Bank in whose district the foreign
bank's banking assets are largest.
As rules of agency procedure and
practice, the notice and public
participation provisions of 5 U.S.C. 553
with regard to the Board’s action are not
applicable. This action is taken pursuant
to the Board’s authority under sections
11 and 25(a) of the Federal Reserve Act
(12 U.S.C. 248, 615), and section 5 of the
Bank Holding Company Act (12 U.S.C.
1844).
Effective October 24,1979, PartB 225,
262, and 265 of 12 CFR Chapter II are
amended as follows:
PART 225—BANK HOLDING
COMPANIES AND CHANGE IN BANK
CONTROL
1. By revising § 225.1(b) to read as
follows:
§ 225.1
*
*
D efinitions.
*
*
*
(b) Federal Reserve Bank. The term
"Federal Reserve Bank” as used in this
Part with respect to action by, on behalf
of, or directed to be taken by a bank
holding company or other organization
shall mean either the Federal Reserve
Bank of the Federal Reserve district in
which the operations of the bank
holding company or other organization
are principally conducted, as measured
by total deposits held or controlled by it
in subsidiary banks on the date on
which it became, or is to become, a bank
holding company, or such Reserve Bank
Federal Register / Vol. 44, No. 217 / Wednesday, November 7, 1979 / Rules and Regulations
as the Board may designate. In the case
of a foreign! iking organization-that is
not a bank holding company but which
has one or more branches, agencies, or
commercial lending companies located
in any State of the United States or the
District of Columbia, "Federal Reserve
Bank” shall mean, unless otherwise
determined by the Board, the Reserve
Bank of the district in which its banking
assets are the largest as of the later of
January 1,1980, or the date that it
establishes its first branch, agency, or
commercial lending company.
2. By revising § 225.4(g)(3) to read as
follows:
§ 225.4
*
*
*
Nonbanking activities.
*
*
*
(g)Foreign bank holding companies.
*
*
(3) A foreign bank holding company
that is of the opinion that other activities
or investments may, in particular
circumstances, meet the conditions for
an exemption under section 4(c)(9) of
the Act may apply to the Board for such
determination by submitting to its
Reserve Bank a letter setting forth the
basis for that opinion.
PART 262—RULES OF PROCEDURE
3. By revising § 262.3(c) to read as
follows:
§ 262.3
*
*
Applications.
*
*
*
(c) Filing of applications. Any
application should be sent to the Federal
Reserve Bank of the district in which the
head office of the parent banking
organization is located, except as
otherwise specified on application
forms, and that Bank will forward it to
the Board when appropriate; however,
in the case of a foreign bank holding
company, as defined in § 225.4(g) of this
chapter, applications shall be sent to the
Federal Reserve Bank of the district in
which the operations of the
organization’s subsidiary banks are
principally conducted. In the case of a
foreign banking organization that is not
a bank holding company but that has
one or more branches, agencies, or
commercial lending companies in any
State of the United States or the District
of Columbia, applications shall be sent
to the Federal Reserve Bank of the
district in which the organization’s
banking assets are the largest.
Applications of a member bank
subsidiary, however, should be filed
with the Reserve Bank of the district in
which the member bank is located.
4. By deleting $ 262.3(k)(5).
PART 265—RULES REGARDING
DELEGATION OF AUTHORITY
5.
By revising § 265.2(f) to read as
follows:
§ 265.2 Specific functions delegated to
Board Em ployees and to Federal Reserve
Banks.
*
*
*
*
*
(f) Each Federal Reserve Bank is
authorized as to a member bank or other
indicated organization for which the
Reserve Bank is responsible for
receiving applications or registration
statements; as to its officers under
subparagraph (23) of this paragraph; and
as to its own facilities under
subparagraph (26) of this paragraph:
*
*
*
*
*
By order of the Board of Governors of the
Federal Reserve System, effective October 24,
1979.
Theodore E. Allison,
Secretary o f the Board.
[FRDoc. 79-34405Filed11-6-79; 845am)
BILLING CODE 6210-01-M
niflllll
65731
Rules and Regulations
Federal Register
VoL 44. No. 222
Thursday, November 15, 1979
FEDERAL RESERVE SYSTEM
12 CFR Part 225
[Docket No. R-0255]
Supervision of Foreign Banking
Organizations and Edge Corporations
by Federal Reserve Banks; Final Rule;
Correction
AGENCY: A Board of Governors of the
Federal Reserve System.
ACTION: Final rule: Correction.
This document corrects a
previous Federal Register document (FR
Doc. 79-34405) beginning at page 64398
of the issue for Wednesday, November
7,1979.
DATE: Effective October 24,1979.
s u m m a ry :
FOR FURTHER INFORMATION CONTACT:
C.
Keefe Hurley, Senior Counsel (202/452
3269), or Michael L. Kadish, Attorney
(202/452-3428), Legal Division, Board of
Governors of the Federal Reserve
System.
SUPPLEMENTARY INFORMATION: In the
third column of page 64398, paragraph
"1." of PART 225—BANK HOLDING
COMPANIES AND CHANGE IN BANK
CONTROL is corrected to read as
follows:
PART 225—BANK HOLDING
COMPANIES AND CHANGE IN BANK
CONTROL
1. By revising S 225.1(c) to read as
follows:
S225.1 Authority, scop*, and definitions.
•
•
•
*
*
(c) Federal Reserve Bank. The term
‘Tederal Reserve Bank” as used in this
Part with respect to action by, on behalf
of, or directed to be taken by a bank
holding company or other organization
shall mean either the Federal Reserve
Bank of the Federal Reserve district in
which the operations of the bank
holding company or other organization
are principally conducted, as measured
by total deposits held or controlled by it
in subsidiary banks on the date on
which it became or is to become, a bank
holding company, or such Reserve Bank
as the Board may designate. In the case
of a foreign banking organization that la
not a bank holding company but which
has one or more branches, agencies, or
commercial lending companies located
in any State of the United States or the
District of Columbia “Federal Reserve
Bank” shall mean, unless otherwise
determined by the Board, the Reserve
Bank of the district in which its banking
assets are the largest as of the later of
January 1, I960, or the date that it
establishes its first branch, agency, or
commercial lending company. With
respect to notices Hied and other actions
taken under the Control Act, the term
refers to the Federal Reserve Bank for
institution to be acquired, as determined
by the preceding sentence in the case of
bank holding companies and by section
9 of the Federal Reserve Act in the oase
of State member banks.
Board of Governors of the Federal Reserve
System, November 7,1979.
Theodore E. Allison,
Secretary of the Board.
[FR Doc. 79-35206 Filed 11-14-79, 8:45 am]
BILLING COOE U 10-01-M
@FedFRASER