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FEDERAL R ESE R V E BANK OF DALLAS Station K, Dallas, Texas 7 5 2 2 2 Circular No. 84-81 July 30, 1984 TO: All member banks, bank holding companies and others concerned in the Eleventh Federal Reserve District ATTENTION: Chief Executive Officer SUBJECT: Regulation Y — Bank Holding Companies and Change in Bank Control SUMMARY: The Board of Governors of the Federal Reserve System has extended until December 31, 1984, the deadline for compliance and registration of companies that became bank holding companies as a result of Regulation Y revisions that were adopted in February 1984. This supersedes the original compliance date of August 6, 1984 as announced in our Circular No. 84-31, dated February 29, 1984. ATTACHMENTS: Board's press release and order MORE INFORMATION: Robert D. Hankins, Extension 6120; Carla Brooks, Extension 6477; or Gayle Teague, Extension 6481 ADDITIONAL COPIES: Public Affairs Department, Extension 6289 This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) Banks and others are encouraged to use the following incoming WATS 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. FEDERAL RESERVE press release For immediate release July 10, 1984 The Federal Reserve Board has extended the deadline for compliance and registration by companies that became bank holding companies as a result of revision of the Board's Regulation Y (Bank Holding Companies), The revision took into the regulation the Board's interpretations of the terms “bank'*, "demand deposit" and "commercial loan". Revised Regulation Y was adopted in February, The deadline for compliance and registration, originally set for August 6, has now been extended to December 31, 1984. The Board extended the deadline in light of legislation pending in Congress that would redefine the definition of bank in the Bank Holding Company Act and that would provide grandfather rights for certain companies covered by the Board's definitions in Regulation Y. The revised regulation states that any institution that accepts demand deposits and makes commercial loans is a bank for purposes of the Bank Holding Company Act. It defines demand deposits to include NOW accounts and other transaction accounts and commercial loans as the purchase of commercial paper, retail installment credit, certificates of deposit and bankers acceptances, and the sale of federal funds and similar instruments. The Board's order may be obtained from the Federal Reserve Banks. # # # FEDERAL RESERVE SYSTEM Order Extending Registration Date for Certain Bank Holding Companies On Regulation February Y, "commercial 6, defining loan" in 1984, the the the Board's terms "demand definition of Holding Company Act, became effective. (1984). that accept demand commercial which and that are engaged loans nolding deposits, are "banks" companies under and "bank" in and the Bank 49 Federal Register includes for their parent this purpose of making companies Companies 818 institutions in the business the Act. of deposit" As a result of the Regulation Y revision, NOW accounts, bank revision are that became bank holding companies as a result of the Regulation Y revision were required to register with the Board within 180 days, August 6, 1984. The Board is authorized, or by in its discretion, to extend this period. Legislation currently under would redefine the term "bank" consideration in the Bank Holding by Congress Company Act and thus would directly affect the requirement for registration and compliance with the Bank Holding Company Act, oy those companies that have acquired particularly so-called nonbank banks. In view of the pendency of this proposed legislation, the Board believes it appropriate to extend the deadline for registration by companies that became bank holding companies as a result of the Regulation Y revision. Pending definitive Congressional 2- - legislation, such an extension would companies that m a y be exempted under temporarily delay exempted. that bank registration the date holdin g by the legislation and would the registration o f companies Accordingly, became avoid that are not for registration b y companies companies as a result of the Regulation Y revision is hereby extended to December 31, 1984. In connection with the Board h a d granted a six-month Regulation Y period for revision, compliance with the the Bank Holding Company Act upon the request o f certain companies that acquired banks prior pendency of December 31, to December the legislation, 1984, those companies the date 10, 1982. In view of the the Board is also extending until for that have been compliance with the granted a six-month Act b y compliance period b y the Board. By order of the Board of Governors, effective J u l y 10, 1984. (signed) James McAfee James McAfee Associate Secretary of the Board
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