View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

F ederal

reserve

Bank

DALLAS. TE X A S

of

Dallas

75222
C ir c u la r N o . 8 0 -2 3 5
D ec e m b e r 16, 1980

BANK

H O L D IN G

to

R E G U L A T IO N Y
C O M P A N I E S A N D C H A N G E IN B A N K

CONTROL

N o t i c e o f F in a l R u le m a k in g R e la t in g
R e a l E s ta t e A d v iso ry and A p p ra isa l S e r v ic e s

N o tice o f C om m en t

P er io d

R e la tin g to a

P o r tio n o f t h e N e w

R u le

TO ALL MEM BER BANK S,
B A N K H O L D IN G C O M P A N IE S ,
A N D O T H E R S C O N C E R N E D IN T H E
E L E V E N T H F E D E R A L R E SE R V E D IST R IC T :
T h e Board o f G o v e rn o rs o f th e F e d e r a l R e s e r v e S y s te m h a s iss u e d a fin a l
a m e n d m e n t t o R e g u la t io n Y , w h ic h w o u ld a llo w b ank h o ld in g c o m p a n ie s t o p e r fo r m
r e a l e s t a t e a d v iso r y and a p p r a isa l s e r v ic e s .
T h i s n e w r u l e w a s m a d e in c o n n e c t i o n
w ith t h e a p p lic a tio n b y F ir st C h ic a g o C o r p o r a tio n , C h ic a g o , Illin o is, t o r e ta in s h a r e s
o f it s n on b an k su b sid ia r y , R e a l E s t a t e R e s e a r c h C o r p o r a tio n , C h ic a g o , Illin o is.
The
a m e n d m e n t w a s is s u e d fo r p u b lic c o m m e n t by C ir c u la r N o . 8 0 - 1 3 2 d a te d J u ly 7 , 1 9 8 0 .
In i t s a c t i o n a d o p t i n g t h e a m e n d m e n t in f i n a l f o r m , t h e B o a r d m o d i f i e d
s o m e w h a t t h e p ro p o sa l, a s it w a s o r ig in a lly s tr u c tu r e d , b y in c lu d in g a p p r a isa ls o f
s in g le -fa m ily r e sid e n c e s.
T h e B oard h as in v it e d p u b lic c o m m e n t o n t h e m o d if ie d
p o rtio n o f th e n e w r u le .
P rin te d on t h e fo llo w in g p a g e s is a c o p y o f t h e B o a rd 's p ress r e le a s e and
n o t i c e a s p u b l i s h e d in t h e F e d e r a l R e g i s t e r . C o m m e n t s o r v i e w s o n t h e m o d i f i c a t i o n
s h o u l d b e s e n t in w r i t i n g t o T h e o d o r e E . A l l i s o n , S e c r e t a r y , B o a r d o f G o v e r n o r s o f t h e
F e d e r a l R e s e r v e S y s t e m , W a sh in g to n , D . C . 2 0 5 5 1 .
A ll m a t e r ia l s u b m it t e d sh o u ld b e
r e c e i v e d n o l a t e r th a n J a n u a r y 1 5 , 1 9 8 1 an d sh o u ld r e f e r t o D o c k e t N o . R - 0 3 1 0 .
E n c l o s e d a r e a l l a m e n d m e n t s , in s l i p s h e e t f o r m , m a k i n g R e g u l a t i o n Y
c u r r e n t a s o f D e c e m b e r 3 1 , 1 9 8 0 , t h e e f f e c t i v e d a t e o f t h e n e w ru le .
P le a s e in ser t
t h i s s l i p s h e e t in y o u r R e g u l a t i o n s B i n d e r a n d d e s t r o y t h e o n e d a t e d N o v e m b e r 1 9 7 9 .
A ny q u e stio n s c o n c e r n in g th e c o n t e n ts o f th is c ir c u la r c a n be d ir e c te d to
th e A tt o r n e y 's S e c t io n o f ou r H o ld in g C o m p a n y S u p e r v isio n D e p a r t m e n t , E x t. 6 1 8 2 .
C o p ie s o f t h e B o a r d 's O rder a p p r o v in g t h e a p p lic a tio n b y F ir s t C h ic a g o C o r p o r a tio n
w ill b e m a d e a v a ila b le upon r e q u e s t t o t h e H o ld in g C o m p a n y S u p e r v isio n D e p a r t m e n t ,
E xt. 6 4 8 8 .
S in c e r e ly you rs,
R o b e r t H . B o y k in
F ir s t V ice P r e s id e n t
E n clo su re
Banks and others are encouraged to use the following incoming W A T S 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)

F E D E R A L R E S E R V E p re s s re le a s e
*v
*f

November 26, 1980
For immediate release
The Federal Reserve Board today announced that it has added
the performance of real estate appraisals to the list of activities
permissible for bank holding companies.
The Board confirmed, in connection with an application by
First Chicago Corporation, Chicago, Illinois, that it regards two further
activities as falling within the scope of nonbanking activities already
approved for bank holding companies.

These are "advising State and

local governments about methods available to finance real estate develop­
ment projects," and "evaluation of projected income to determine for
State and local governments whether debt resulting from proposed develop­
ment projects can be adequately serviced."
The Board concurrently approved the application of First
Chicago Corporation to retain the shares of its subsidiary, Real Estate
Research Corporation, subject to provisions of the Board's order of
June 26, 1980, requiring Real Estate Research Corporation to cease by
December 31, 1980, engaging in six of 13 activities listed in the attached
Order.
Attached is a copy of the Board's Order and Federal Register
notice relating to these matters.

Attachments

79750

Federal Register / Vol. 45, No. 233 / Tuesday, December 2, 1980 / Rules and Regulations

12 CFR Part 225
[Regulation Y; Docket No. R-0310]

Proposal To Permit Bank Holding
Companies To Engage I Real Estate
n
Advisory Services and Real Estate
Appraisal Services
AGENCY: B o ard o f G overno rs o f the
F e d e ra l R eserve System .

ACTION: F in a l rule.
sum m ary: T h e Board has a d o p te d a
fin a l ru le th a t adds the p erfo rm a n c e o f
a p p ra is a ls o f re a l estate to the list o f
those a c tiv itie s p erm issible fo r b an k
h old in g com panies. T h e B o ard m o d ifie d
the proposed ru le b y in clu din g
a p p ra is a ls o f s in g le -fa m ily residences in
the fin a l ru le a n d in v ite d pub lic
com m ent on this m o d ific a tio n .

The Board also determined that the
activities of "advising State and local
governments about methods available to
finance real estate development
projects,” and “evaluating projected
income to determine for State and local
governments whether debt resulting
from proposed development projects can
be adequately serviced,” are authorized
by the provision of Regulation Y (12 CFR
I 225.4(a)(5)(v)) that permits bank
holding companies to provide financial
advice to State and local governments.
EFFECTIVE DATE: December 31,1980.
Comments will be accepted on the
modification made to the proposal until
January 15,1981.
ADDRESS: Comments, which should refer
to Docket No. R-0310, may be mailed to
Theodore E. Allison, Secretary, B o ard o f
Governors of the Federal Reserve
System, 20th Street and Constitution
Avenue, N.W., Washington, D.C. 20551,
or delivere'd to Room B-2223 between
8:45 a.m. and 5:15 p.m. Comments
received may be inspected at Room B1122 between 8:45 a.m. and 5:15 p.m.,
except as provided in section 261.6(a) of
the Board's Rules Regarding Availability
of Information (12 CFR 261.6(a)).
FOR FURTHER INFORMATION CONTACT:
Michael E. Bleier, Senior Counsel (202­
452-3721), or Michael L. Kadish,
Attorney (202-452-3428), Legal Division,
Board of Governors of the Federal
Reserve System.
SUPPLEMENTARY INFORMATION: In
conjunction with an application by First
Chicago Corporation, Chicago, Illinois,
the Board in June 1980, published notice
of a proposed amendment to its
Regulation Y that would add the
performance of appraisals of real estate
other than single-family residences to
the list of activities permissible for bank
holding companies and tl>eir nonbank
subsidiaries. (45 FR 44963 (1980)). In the

pub lish ed n otice, the B o ard also
req aested com m ents as to w h e th e r the
a c tiv itie s o f “a d visin g S ta te a n d lo cal
g overnm ents ab o u t m ethods a v a ila b le to
fin a n c e re a l estate d evelo p m en t
p rojects," a n d “ ev a lu a tin g p ro jected
incom e to d ete rm in e fo r S tate a n d local
govern m en ts w h e th e r d eb t resulting
from proposed d ev e lo p m en t p ro jects can
be a d e q u a te ly s erviced," a re c lo s e ly
re la te d to b anking.
In the case o f perfo rm in g a p p ra is a ls o f
re a l e s tate o th e r than s in g le -fa m ily
residences, the record re fle c te d th at
ban ks h a v e p erfo rm e d this service e ith e r
in connection w ith exten sio n s o f cre d it
in v o lv in g re a l estate lend ing o r as a
d iscrete a c tiv ity . In a d d itio n , it app ears
th at the proposed a p p ra is a l a c tiv ity
c a lls upon the n ecessary s k ills and
resources often possessed b y b an k in g
o rg an izatio ns. T h e re c o rd in d ic a te d th at
b an ks also p erfo rm a p p ra is a ls o f single­
fa m ily residences. O n the basis o f the
record, the B o ard d e te rm in e d th a t the
a c tiv ity o f p erfo rm ing a p p ra is a ls o f re a l
estate, in c lu din g s in g le -fa m ily
residences, is c losely re la te d to b an k in g
and th a t its p erfo rm a n c e b y b a n k
h old in g com panies is lik e ly , in g en eral,
to y ie ld n et b en e fits to the public. T h e
B o ard requests in te re s te d persons to
c o m m en t'on the ru le as m o d ifie d .

The B o ard also determined that the
proposed real estate advisory services
are currently authorized by
§ 225.4(a)(5)(v) of Regulation Y (12 CFR
225.4(a)(5)(v)), which provides that a
bank holding company may engage in
the nonbanking activity of “acting as
investment adviser to the extent o f . . .
(v) providing financial advice to State
and local governments, such as with
respect to the issuance of their
securities.”
C e rta in com m ents re c e iv e d b y the
B o ard n o ted th a t aspects o f these
a d v is o ry services m a y be w ith in the
scope o f the a c tiv ity o f "m an a g em e n t
consulting," as d efin e d in foo tn ote tw o
to § 225.4(a)(5) o f R egu latio n Y (12 C F R
225.4(a)(5)(n.2)). T h e B o ard has
p re v io u s ly found th a t it is not
perm issible fo r b a n k h olding com panies
to o ffer m an a g e m en t consulting services
to n o n a ffilia te d com pan ies, w ith the
exc ep tio n o f ban ks. T h e B o ard ’s a ctio n
does n ot a u th o rize b a n k h olding
com panies to engage in such
m an a g e m en t con sulting activ ities ;
h o w e v e r, the B o ard in d ic a te d th a t in
v ie w o f the re la tio n s h ip th a t has
tra d itio n a lly e x iste d b e tw e e n b an k s and
Sta te an d local governm ents, a n d the n et
p u b lic b en e fits th at w o u ld result from
p ro vis io n o f a d v ic e to these
governm ents b y b a n k h old in g
com panies, the B o ard w o u ld be m ore

fle x ib le in d e te rm in in g th a t p a rtic u la r
services c o n stitute “ p ro vid in g fin a n c ia l
a d v ic e ” ra th e r than “m a n agem en t
consulting” w h e n the services are
p ro v id e d s olely to S tate a n d local
govern m en ts ra th e r th a n o th e r n o n b a n k
o rg an izatio ns.
A fu lle r discussion o f the Board's
c o n s id e ratio n o f these a c tiv itie s is
in c lu d e d in its O rd e r reg ard ing the
a s s ociated a p p lic a tio n b y F irs t C hicago
C o rp o ra tio n to re ta in its s ub sidiary,

Real Estate Research Corporation,
which has been published in the notice
section of this issue of the Federal
Register forthe information of interested
persons. This action is taken pursuant to
the Board’s authority under sections
4(c)(8) and 5(b) of the Bank Holding
Company Act, 12 U.S.C. §§ 1843(c)(8)
and 1844(b).
Effective December 31,1980, § 225.4(a)
of Part 225 of 12 CFR Chapter II is
amended by adding the following new
paragraph (14) immediately following
§ 225.4(a)(13):
§ 225.4 Nonbanking Activities
*

*

*

*

*

(a) * * ;

(14) Performing appraisals of real
estate.
Board of Governors of the Federal Reserve
System, N ovem ber 20,1980.

Theodore E. Allison,
Secretary of the Board
|F R D m ;. 8 0 -3 7 3 8 6 F ile d 1 2 -1 -8 0 ; 8 4 5 a m |

BILLING CODE 6 1 - 1
2 0 0 -M

BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
BANK HOLDING COMPANIES AND CHANGE IN BANK CONTROL
A M E N D M E N T S T O REGULATION Y t
As amended effective December 31. 1980
1.
Effective January 1, 1979, as to applications
accepted by any Federal Reserve Bank on or after
that date, section 225.4 is amended by revising
subparagraphs (b)(1) and (b)(2) to read as follows:
SECTION 225.4— NONBANKING ACTIVITIES
*

*

*

*

*

(b)(1) De novo entry. A bank holding com­
pany may engage de novo (or continue to engage
in an activity earlier commenced de novo),
directly or indirectly, solely in activities described
in paragraph (a) of this section, 45 days after the
company has furnished its Reserve Bank a notice
of the proposal (in substantially the same form
as F.R. Y -4A ), 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 of exigent circumstances
of a particular case. The Board will publish in the
Federal Register notice of any such proposal and
will give interested persons an opportunity to
express their views on the proposal to the Reserve
Bank. If adverse comments of 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 Bank may inform
the company 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 of subparagraph (2) of this paragraph.
With respect to activities to be engaged in outside
the United States, the procedures of this sub-

i I a R s r e Bank d c d s t a a v r e comments ae
i f eev
e i e ht d e s
r
n t o a s b t n i e n t r , t e p r o s b i t n te
o f u s a t v aue h e s n u m t i g h
comments may r q e t r v e b t e B a d o ta
e u s e i w y h o r f ht
d c s o i a c r a c w t t e p o i i n o §2 5 3 o
eiin n c o d n e i h h r v s o s f 6 . f
te B a d s R l s R g r i g D l g t o o A t o i y (2
h or' u e e a d n eeain f uhrt 1
CFR 2 5 3 b fln a ptto f r r v e w t t e S c e
6 . ) y iig eiin o e i w i h h e r ­
tr o te B a d
ay f h o r .

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) of this
section govern other international operations of
bank holding companies.
(2)
Acquisition of going concern. A bank hold­
ing company may apply to the Board to acquire
or retain the assets of or shares in a company
engaged solely in activities described in paragraph
(a) of this section by filing an application with
its Reserve Bank (Form F.R. Y-4). The Board will
publish in the Federal Register 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 performance of the activity pro­
posed by the holding company can reasonably be
expected to produce benefits to the public, such
as greater convenience, increased competition or
gains in efficiency, that outweigh possible adverse
effects, such as undue concentration of resources,
decreased or unfair competition, conflicts of inter­
ests, or unsound banking practices.

*

*

*

*

*

2.
Effective March 10, 1979, the title to Regu­
lation Y is revised to read “Part 225-Bank Hold­
ing Companies and Change in Bank Control” and
section 225.1 is revised to read as follows:
SECTION 225.1— AUTHORITY, SCOPE,
A N D DEFINITIONS
(a)
Authority and scope. This Part is issued by
the Board of Governors of the Federal Reserve
System under section 5(b) of the Bank Holding
Company Act of 1956 (“the Act”) (12 U.S.C.
§ 1844(b)) and section 7(j)(13) of the Federal
Deposit Insurance Act, as amended by the Change
in Bank Control Act of 1978 (“the Control Act”),
(12 U.S.C. § 1817(j)(13)). Sections 225.2 through

tFor this Regulation to be complete as amended December 31. 1980, retain:
1) Printed Regulation pamphlet dated April 5, 1978.
2) This slip sheet. (Destroy slip sheet dated November 1979.)

D ECEMBER 1980

225.6 of t i Part implement the Act, and s c i n
hs
eto
o
ther person w l own a g e t r proportion of t a
il
rae
ht
225.7 of t i Part implements t e Control Act.
hs
h
c a s of voting s c r t e .
ls
euiis
( ) Terms used i the Act. As used i t i P r ,
b
n
n hs a t
Other t a s c i n r s l i g i a person’ con­
rnatos eutn n
s
t e terms “bank holding company,” “company,”
h
t o of l s than 25 per cent of a c a s of voting
rl
es
ls
“bank,” “s b i i r , and “Board” have t e same
usday”
h
shares of a bank holding company or S a e mem­
tt
meanings a those given such terms i the Ac .
s
n
t
ber bank would not r s l i c n
e u t n o trol f r purposes
o
As used i s c i n 225.7 i t i P r , t e term
n eto
f hs a t h
of the Act. An acquiring person may r q
e uest an
“person” has the meaning given i i t e Control
t n h
opportunity t c n e t the presumption e t b i h d
o ots
salse
Ac .
t
by t i paragraph with r s e t t a proposed
hs
epc o
( ) Federal Reserve Bank. The term “Federal
c
t a s c i n The Board w l a f r the person an
rnato.
il f o d
Reserve Bank” a used i t i Part with r s e t
s
n hs
epc
opportunity t present views i w i i g o , where
o
n rtn r
t act o b , on behalf o , or d r c e t be taken
o in y
f
ietd o
a p o r a e o a l before is designated repre­
prpit, rly
t
by a bank holding company or other organizat
ion
s n a i e e t e a informal conference d s u ­
ettvs ihr t
ics
s a l mean e t e the Federal Reserve Bank of
hl
ihr
s o s or a informal p e e t t o s of e i e c .
in
t
rsnain
vdne
th Federal Reserve d s r c i which t e oper­
e
itit n
h
( ) N tices. Section 265.3 of t e Board’ Rules
b o
h
s
a i n of t e bank holding company or other
tos
h
of Procedure governs the submission of n t c s
oie
organization are p i c p l y conducted, a meas­
rnial
s
required by the Control Act, except t a n t c s
ht oie
ured by t t l d p s t held or c n r l e by i on
oa e o i s
otold
t
should be s n t the Federal Reserve Bank o
et o
f
t e date on which i became, or i t become,
h
t
s o
t e d s r c i which the a f c e bank or bank
h itit n
fetd
a bank holding company, or such Reserve Bank
holding company i l c t d Notice s a l not be
s oae.
hl
a the Board may d s g a e With r s e t t
s
eint.
epc o
considered given u l s information provided i
nes
s
n t c s f l d and other a t o s taken under t e
o i e ie
cin
h
responsive t every item s e i i d i paragraph 6
o
pcfe n
Control Act, t e term r f r t t e Federal Re­ of t e Control Act (12 U.S.C. § 1 1 ( ) 6 ) or
h
ees o h
h
87j(),
serve Bank f r i s i u i n t be a q i e , a
o nttto o
curd s
every item prescribed i the appropriate Board
n
determined by the preceding sentence i the ca e
n
s
forms. With r s e t t personal f n n i l s a e
epc o
i a c a tt­
of bank holding companies and by s c i n 9 of
eto
ments required by paragraph 6(B) of the Control
the Federal Reserve Act i t e case of S a e
n h
tt
Act, an i d v d a acquirer may include a current
niiul
member banks.
statement of a s t and laiiis a of a d t
ses
i blte, s
ae
3
.
E f c i e March 1 , 1979, Regulation Y within 90 days of the n t c , a b i f income
fetv
0
oie
re
i amended by adding a new s c i n § 22 . ,
s
eto,
57
summary, and a statement of m terial changes
a
a flos
s olw:
s n e the date t e e f s b e t t the a t o i y of
ic
hro, ujc o
uhrt
t e Federal Reserve Bank or t e Board t r q i e
h
h
o eur
SECTION 225.7— C H A N G E IN BANK
adtoa ifr
d i i n l n o mation.
CONTROL
( ) Exempt t a s c i n . The following t a s
c
rnatos
rn­
( ) Acquisitions of Control.1 Under the Con­
a
4
a t o s a e not s b e t t t e p i r n t c r q i e
cin r
ujc o h ro oie eur­
t o Act, a q i i i n by a person or persons a t
rl
custos
c­
ments of t e Control Act:
h
ing i concert of t e power t vote 25 per cent
n
h
o
( ) the a q i i i n of a d t o a s a e of a
1
custo
diinl hrs
or more of a c a s of voting s c r t e of a bank
ls
euiis
bank holding company or S a e member bank by
tt
holding company or S a e member bank, u l s
tt
nes
a person who continuously s n e March 9, 1979,
ic
exempted, r q
e uire p ior n t c t the Board. In
r
oie o
held power t vote 25 per cent or more o t e
o
f h
a d t o , a purchase, assignment, t a s e , p e g ,
diin
rnfr l d e
voting s a e of t a i s i u i n or by a person
hrs
h t nttto,
or other d s o i i n of voting stock through
ipsto
who has acquired and maintained c n r l of t a
oto
ht
which any person w l acquire ownership, c n r l
il
oto,
i s i u i n a t r complying with the Control Act’
nttto fe
s
or the power t vote ten per cent or more of a
o
procedures;
c a s of voting s c r t e of a bank holding com­
ls
euiis
( ) the a q i i i n of a d t o a sha e of a
2
custo
diinl
rs
pany or S a e member bank w l be deemed t be
tt
il
o
bank holding company or S a e member bank
tt
an a q i i i n by such person of the power t
custo
o
by a person who under paragraph ( ) of t i s c
a
hs e ­
d r c t a i s i u i ns management or p l c e i:
iet h t nttto’
oiis f
t o would be deemed t have c n r l e t a
in
o
o t o l d ht
( ) t e i s i u i n has i s e any c a s of
1 h nttto
sud
ls
i s i u i n continuously s n e March 9 1979, i:
nttto
ic
,
f
s c r t e s b e t t r g s r t o under s c i n 12
euiis u j c o eitain
eto
() the t a s c i n w l not r s l i t a
i
r n a t o il
eut n h t
of the S c r t e Exchange Act of 1934 (15
euiis
person’ d r c or i d r c ownership or power
s iet
niet
U.S.C. § 7 1 ; or
8)
t vote 25 per cent or more of any c a s o
o
ls f
( ) immediately a t r the t a s c i n no
2
fe
rnato
voting s c r t e of the i s i u i n or
euiis
nttto;
14 Control is defined in the Control Act as the power,
(i i other c s s t e Board determines t a
i) n
ae, h
ht
directly or indirectly, to direct the management or policies,
the person has c n r l e the i s i u i n con­
otold
nttto
or to vote 25 per cent or more of any class of voting
t n o s y s n e March 9 1979;
iuul ic
,
securities, of an institution. 12 U.S.C. § 1817(j)(8)(B).

(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 information specified in
paragraph 6 of the Control Act that the Reserve
Bank requests;
(4) a transaction subject to approval under
section 3 of the Bank Holding Company Act or
section 18 of the Federal Deposit Insurance Act;
(5) a transaction described in sections 2(a)(5)
or 3(a)(A) or (B) of the Bank Holding Company
Act by a person there described;
(6) a customary one-time proxy solicitation and
receipt of pro-rata stock dividends; and
(7) the acquisition of shares of 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 information required under
paragraphs 9, 10. and 12 of the Control Act
(12 U.S.C. § 1817(j)(9), (10), and (12)).

of t e U
h nited S a e o t e D s r c of Columbia.
t t s r h itit
"Federal Reserve Bank" s a l mean, u l s o h r
hl
nes te­
wise determined by t e Board, t e Reserve Bank o
h
h
f
t e d s r c i which is banking a s t a e t e
h itit n
t
ses r h
l r e t a of t e l t r o January I 1 8 . o t e
ags s
h ae f
. 90 r h
d t t a i e t b i h s is frt b a c , agency, o
a e h t t s a l s e t is r n h
r
commercial lending company. With r s e t t
epc o
n t c s f l d and o h r a t o s t k n under t e Con­
o i e ie
t e cin a e
h
to A t t e term r f r t t e F d r l Reserve
rl c . h
ees o h e e a
Bank f r i s i u i n t be a q i e , a determined
o nttto o
curd s
by t e preceding s n e c i t e c s o bank h l ­
h
etne n h ae f
od
i g companies and by s c i n 9 of t e F d r l Re­
n
eto
h eea
s r e Act i t e c s o S a e member b n s
ev
n h a e f tt
ak.
*

* ** *

SECTION 225.4 — NONBANKING ACTIVITIES
:\i :[; * * -fi
'
( ) Foreign bank holding companies.
g
U * 4 * J
s
js

( ) A f r i n bank h l
3
oeg
o ding company t a i o
ht s f
t e opinion t a o h r a t v t e o i v s m n s may.
h
ht t e ciiis r n e t e t
n atclr i c m t n c .
h odtos o
4.
Effective April 2, 1979, section 225.4(a) is i p r i u a c r u s a c s meet t e c n i i n l r
an exemption under s c i n 4 c ( ) o t e Act may
eto ()9 f h
amended by adding the following new paragraph
a
pply t t e Board f r such d t r i a i n by sub­
o h
o
eemnto
(13) immediately following § 225.4(a) (12):
m t i g t is Reserve Bank a l te s t i g f r h t e
itn o t
etr e t n o t h
b s s f r ta o i i n
a i o ht p n o .
SECTION 225.4— NONBANKING ACTIVITIES
H * **
<
(13)
The sale at retail of money orders having
a face value of not more than SI,000 and travelers
checks and the sale of U.S. savings bonds.

*

*

*

#

6 . E f c i e December 5 1 7 . s c i n 2 5 4 a
fetv
. 9 9 eto 2 . ( )
i amended by r v s n subparagraph ( ) (i) t
s
eiig
9 ii o
ra a flos
e d s olw:

*

5
.
E f c i e October 2 , 1 7 , s c i n 2 5 1 i
fetv
4 9 9 eto 2 . s
SECTION 225.4 — NONBANKING ACTIVITIES
amended by r v s n subparagraph ( ) Section
eiig
c.
225.4 i amended by r v s n subparagraph ( ) ()
s
eiig
g 3.
( ) A t v t e clos l related t banking or
a ciiis
ey
o
The amendments r a a f l o s
e d s olw:
managing or c n r l i g banks.
otoln
* * * * *
SECTION 225.1— AUTHORITY, SCOPE,
A N D DEFINITIONS

() Federal Reserve Bank. The term “F d r l
c
eea
Reserve Bank'" a used i t i P r wi h r s e t t
s
n hs a t t e p c o
a t o b . on b h l o . o d r c e t be t k n by a
cin y
e af f r ietd o
ae
bank h l
o ding company or o h r o g n z t o s a l
t e r a i a i n hl
mean e t e t e F d r l Reserve Bank of t e Feder­
ihr h e e a
h
a Reserve ds r c i which t e o e a i n of t e
l
it i t n
h prtos
h
bank h
olding company or o h r o g n z t o a e
te raiain r
p i c p l y conducted, a measured by t tl d p s t
rnial
s
oa e o i s
h l o c n r l e by i i s b i i r banks on t e
ed r otold
t n usday
h
d t on which i became, o i t become, a bank
ae
t
r s o
holding company, o such Reserve By.k a t e
r
s h
Board may d s g a e I t e c s o a f r i n bank­
eint. n h ae f oeg
i g o g n z t o t a i n t a bank h l i g company
n r a i a i n ht s o
odn
b t which h s one o more b a c e , a e c e , o
u
a
r
rnhs gnis r
commercial l n i g companies l c t d i any S a e
edn
oae n
tt

( ) ac i g a insurance agent or broker i
9 tn s
n
o f c s a which t e h l i g company o
fie t
h odn
r
is s b i i r e a e other i e engaged i
t usdais r
ws
n
b s n s ( r i an o f c a j c n t e e o
uies o n
fie d a e t hrt)
w t r s e t t t e f l o i g t p s of i ­
i h epc o h o l wn ye
n
srne
uac:
* * * * *
(i) any i s r n e s l by a bank h l i g
ii
nuac od
odn
company o a nonbanking s b i i r i
r
usday n
a community t a has a p p l t o n t
ht
ouain o
exceeding 5.000 ( s shown by t e ls
a
h at
proceeding d c n i l c n u ) p
e e n a e s s rovided
t e p i c p l p a e of banking b s n s
h rnia l c
uies
of t e bank h l
h
o ding company i l c t d
s oae
i a community having a p p l t o n t
n
ouain o
exceeding 5 0 0
.0.

E f c i e December 31, 1980, s c i n 225 4 a i
fetv
eto
.() s
amended by addingt e followingnew paragraph ( 4
h
1)
immediately following § 22S.4(aX13):
SECTION 225.4— NONBANKING ACTIVITIES
* * * * *
(a) * * *

( 4 Performing a p a s l of r a e t t .
1)
prias
e l sae