Full text of District Notices (Federal Reserve Bank of Dallas) : Reprint of Rules Regarding Delegation of Authority, Circular No. 70-113

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F ederal

reserve

Bank

DALLAS, TEXAS

of

Dallas

75222

Circular No. 70-113
May I k , 1970

REPRINT OP
RULES REGARDING DELEGATION OF AUTHORITY

To All Member Banks
in the Eleventh Federal Reserve District:

Enclosed is the new larger reprint of Rules Regarding
Delegation of Authority as amended effective April 2, 1970.

All

amendments to the regulation that have been issued and effective
through April 2 have been incorporated in the revised copies.
The small size regulation with applicable amendments
should be removed from your binder and may be destroyed.
Yours very truly,
P. E. Coldwell
President
Enclosure (l)

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

RULES REGARDING DELEGATION OF AUTHORITY

(12 CFR 265)

As amended effective April 2, 1970

Any inquiry relating to this regulation should be addressed to the Federal
Reserve Bank of the Federal Reserve District in which the Inquiry arises.

CONTENTS

Se c . 2 6 5 .1 — D

e l e g a t io n

G

of

enerally

S e c . 2 6 5 .1 a — S p e c ific
gated

F
to

F

u n c t io n s

..................................

u n c t io n s

D

3

ele­

B oardM e m b e r s

3

(a) A ny Board M em ber designated by
3
the C h a i r m a n ..............................
(b ) The Com m ittee on Organization,
Com pensation, and Building Plans
S e c . 2 6 5 .2 — Spe c ific

F u n c t io n s

gated to
and

ele­

B oard E m p l o y e e s
F ederal

to

Banks

D

3

S e c . 2 6 5 .3 — R e v ie w

R eserve

.............................................

(a) The Secretary of the B o a r d ...............
(b) The G eneral Counsel of the Board .
(c) T he D irector of the Division of Super­
vision and Regulation .....................
(d) T he D irector of the Division of F ed ­
eral Reserve Bank O perations . . .
(e) The D irector of the Division of P er­
sonnel A dm inistration .....................
(f) Each Federal Reserve Bank ............
(g) T he D irector of the Division of Inter­
national F inance ...............................

3

gated

of

A

c t io n

Level

at

D

3
3

4
5
5
5

7

ele­

...............................

7

STATUTORY AUTHORITY

This regulation is issued under authority of
section 11 (k ) of the Federal Reserve A ct (12
U.S.C. 2 4 8 (k )), w hich reads as follows:
Sec. 11. T he Board of G overnors of the F ed ­
eral Reserve System shall be authorized and em ­
pow ered :
❖

sfc

H8

(k ) To delegate, by published order or rule
and subject to the A dm inistrative Procedure Act,

any of its functions, other than those relating to
rulem aking or pertaining principally to m onetary
and credit policies, to one or m ore hearing exam ­
iners, mem bers or employees of the Board, or
Federal Reserve Banks. T he assignment of respon­
sibility for the perform ance of any function th a t
the Board determines to delegate shall be a func­
tion of the Chairm an. T he Board shall, upon the
vote of one m em ber, review action taken at a
delegated level within such time and in such
m anner as the Board shall by rule prescribe.

RULES REGARDING DELEGATION OF AUTHORITY*
(12 CFR 265)
As amended effective April 2, 1970

any foreign com pany (other than a com pany per­
form ing nominee, fiduciary, or other banking serv­
ices incidental to the activities of a foreign branch
or affiliate of such bank or co rp o ratio n ).
(3)
To perm it an Edge or A greem ent corpo­
ration to exceed the lim itations in § 211.9 (b)
and (c) of this chapter (Regulation K ) . 1
(b)
The Committee on Organization, Compen­
sation, and Building Plans, consisting of three
m em bers of the Board designated by the C hair­
man, is authorized, pursuant to the twenty-second
paragraph of section 4 of the Federal Reserve A ct
(12 U.S.C. 307), to approve the salary of any
officer of a Federal Reserve Bank holding a posi­
tion below that of Senior Vice President, subject
to general guidelines prescribed by the Board.

S EC T IO N 265.1— D E L E G A T IO N O F
F U N C T IO N S G E N E R A L L Y
P ursuant to the provisions of section l l ( k ) of
the Federal Reserve A ct (12 U.S.C. 2 4 8 ( k ) ) , the
Board of G overnors of the Federal Reserve Sys­
tem delegates authority to exercise those of its
functions described in this Part, subject to the
limitations and guidelines herein prescribed. The
C hairm an of the Board of G overnors assigns the
responsibility for the perform ance of such dele­
gated functions to the persons herein specified. A
delegee m ay submit any m atter to the Board for
determ ination if he considers such submission
appropriate because of the im portance or com ­
plexity of the m atter.
SEC T IO N 265.1a— S PE C IFIC F U N C T IO N S
D E L E G A T E D TO BO A RD M EM B ER S

SEC TIO N 265.2— S P E C IFIC F U N C T IO N S
D E L E G A T E D TO BO A RD E M PL O Y E E S A N D
F E D E R A L R E SE R V E BA NKS
(a)
Any Board member designated by the
Chairman is authorized under sections 25 and
(a) The Secretary of the Board (or, in his
2 5 (a ) of the Federal Reserve A ct and Parts 211
absence, the Acting Secretary) is authorized,
and 213 of this chapter (Regulations K and M ) :
under the provisions of P art 261 of this chapter,
(1 ) T o approve the establishment, directly or
to m ake available, upon request, inform ation in
indirectly, of a foreign branch o r agency by a
the records of the Board.
m em ber bank or corporation organized under sec­
(b) The General Counsel of the Board (or, in
tion 2 5 (a ) (an “Edge” corporation) or operating
his absence, the Acting G eneral Counsel) is
under an agreem ent with the Board pursuant to
authorized:
section 25 (an “A greem ent” corporation) which
(1) U nder the provisions of section 2 (g ) of
has already established, or has been authorized to
the Bank H olding Com pany A ct (12 U.S.C.
establish, branches in two or more foreign coun­
1 8 4 1 (g )), to determ ine w hether a com pany that
tries.
transfers shares to any of the types of trans­
ferees specified therein is incapable of controlling
(2 ) T o grant specific consent to stock acquisi­
tions, either directly or indirectly, by a m em ber
the transferee.
(2) U n der the provisions of section 4 ( c ) ( 8 ) of
bank or an Edge or A greem ent corporation (and
the Bank Holding C om pany A ct (12 U.S.C. 1843
to approve such acquisitions which m ay exceed
( c ) ) , to determ ine that a com pany engaged in
the limitations in section 2 5 (a ) based on such a
activities of a financial, fiduciary, or insurance
corporation’s capital and surplus) not resulting
nature falls within the exem ption described there­
in the acquisition, either directly o r indirectly, by
in perm itting retention or acquisition of control
such bank or corporation of effective control of
thereof by a bank holding com pany.
* This text corresponds to the Code of Federal Regula­
tions, Title 12, Chapter II, Part 265, cited as 12 CFR 265.
The words “this Part,” as used herein, mean Rules Re­
garding Delegation of Authority.

1 Subject, of course, to the limitations in section 25(a)
relating to aggregate liabilities outstanding on debentures,
bonds, and promissory notes.

3

DELEGATION OF AUTHORITY

§ 2 6 5 .2

(6) U nder the provisions of section 12(f) of
the Securities Exchange A ct (15 U.S.C. 7 8 /( f ) ) ,
to issue notices with respect to an application by
a national securities exchange for unlisted trading
privileges in a security of a m em ber State bank.
(7) U nder the provisions of section 12(h) of
the Securities Exchange A ct (15 U.S.C. 7 8 /( h ) ) ,
to issue notices with respect to an application by a
m em ber State bank for exemption from regis­
tration.
(8) U nder the provisions of § 206.5(f) and (i)
of this chapter (Regulation F), to perm it the m ail­
ing of proxy and other soliciting m aterials by a
m em ber State bank before the expiration of the
time prescribed therein.
(9) U nder the provisions of §§ 206.41, 206.42,
(c)
The Director of the Division of Supervision
and 206.43 (Instructions as to Financial State­
and Regulation (or, in his absence, the Acting
ments 9, 4, and 3, respectively) of this chapter
D irector) is authorized:
(Regulation F), to perm it the omission of financial
(1) U nder the provisions of the seventh para­
statements
from reports by a m em ber State bank
graph of section 9 of the Federal Reserve A ct (12
a
n
d
/o
r
to
require other financial statem ents in
U.S.C. 3 2 5), to select or to approve the appoint­
addition to, or in substitution for, the statem ents
m ent of Federal Reserve Bank examiners, assist­
required therein.
ant examiners, and special examiners.
(10) To exercise the functions described in
(2) U nd er the provisions of the nineteenth
subparagraph (4 ) of paragraph (f) of this section
paragraph of section 2 5 (a ) of the Federal Reserve
in cases in which the conditions specified therein
A ct (12 U.S.C. 625) and § 2 1 1.9(e) o f this chapter
as prerequisites to exercise of such functions by
(Regulation K), to require submission and publi­
the Federal Reserve Banks are not present or in
cation of reports by an “Edge A ct” corporation.
which, even though such conditions are present,
(3) U n der the provisions of section 5 of the
the appropriate Federal Reserve Bank considers
Bank H olding Com pany Act (12 U.S.C. 1844),
that nevertheless it should not take action on the
after having received clearance from the Bureau
m em ber b an k ’s request, and to exercise the func­
of the Budget (where necessary) and in accord­
tions described in subparagraphs ( 1 ), ( 2 ) , and
ance with the law of A dm inistrative P rocedure
(7) of paragraph (f) of this section in cases in
(5 U.S.C. 5 5 3 ), to prom ulgate registration, an­
which the appropriate F ederal Reserve Bank con­
nual report, and other form s for use in connection
siders that it should not take action to approve
w ith the adm inistration of such Act.
the m em ber b ank ’s request.
(4) U nder the provisions of section 12(g) of
(11) U nder sections 25 and 2 5 (a ) of the
the Securities Exchange A ct (15 U.S.C. 7 8 /( g ) ) :
Federal Reserve A ct and Parts 211 and 213 of
(i) to accelerate the effective date of a regis­
this chapter (Regulations K and M ), to approve
tration statem ent filed by a m em ber State bank
increases and reductions in the capital stock and
with respect to its securities;
am endm ents to the articles of association of a
(ii) to accelerate term ination of the registration
corporation organized under section 2 5 (a ) and
of such a security that is no longer held of record
additional investments by a m em ber bank in the
by 300 persons; and
stock of a corporation operating under an agree­
(iii) to extend the time for filing a registration
ment with the Board pursuant to section 25.
statem ent by a m em ber State bank.
(12 ) To exercise the functions described in
subparagraphs (1 5) (i) and (ii) of paragraph ( f ) ;
(5) U nder the provisions of section 12(d) of
and to exercise the functions described in sub­
the Securities Exchange A ct (15 U.S.C. 7 8 /( d ) ) ,
paragraph (15) (iii) of paragraph (f) in those
to accelerate the effective date of an application
by a m em ber State bank for registration of a
cases in which the appropriate F ederal Reserve
Bank concludes that, because of unusual consider­
security on a national securities exchange.

(3 ) U n der the provisions of sections 1101-1103
of the Internal Revenue Code (26 U.S.C. 1101­
1103), to m ake certifications (prior and final) for
Federal tax purposes with respect to distributions
pursuant to the Bank Holding Com pany Act.
(4) U nd er the provisions of section 4 (c ) (8 ) of
the Bank Holding Com pany A ct (12 U.S.C. 1843
( c ) ( 8 ) ) and § 2 2 2 .4 (a) of this chapter (R egula­
tion Y ), to issue an order for a hearing to be
conducted for the purpose of determ ining w hether
a com pany engaged in activities of a financial, fi­
duciary, or insurance nature falls within the
exemption described therein perm itting retention
or acquisition of control thereof by a bank holding
com pany.

4

DELEGATION OF AUTHORITY

§ 2 6 5 .2

ations, or for other good cause, it should not take
action.
(13) U nder the provisions of §§ 2 0 7 .2 (f),
2 2 0 .2 (e ), and 2 2 1 .3 (d ) of this chapter (R egula­
tions G , T, and U , respectively), to approve
issuance of the list of O TC m argin stocks and to
add, omit, or remove any stock in circumstances
indicating that such change is necessary or appro­
priate in the public interest.
(1 4) U nder the provisions of the seventh para­
graph of section 25 of the Federal Reserve A ct
(12 U.S.C. 6 0 2 ), to require submission of a re­
port of condition respecting any foreign bank in
which a m em ber bank holds stock acquired under
the provisions of § 213.4 of this chapter (R egula­
tion M ).
(15 ) U nder the twelfth paragraph of section 13
of the Federal Reserve A ct (39 Stat. 754) and
§ 203.2 of this chapter (Regulation C ) , to perm it
any m em ber bank to accept drafts or bills of
exchange draw n upon it for the purpose of fu rn ­
ishing dollar exchange.
(16) U nder the provisions of section 4 (b ) of
the Federal D eposit Insurance Act (12 U.S.C.
1 8 1 4 (b )), to certify to the F ederal D eposit In ­
surance C orporation that, with respect to the
admission of a State-chartered bank to Federal
Reserve membership, the factors specified in sec­
tion 6 of that Act (12 U.S.C. 1816) were con­
sidered.
(17 ) U nder section 1 8 ( c ) (4 ) of the Federal
Deposit Insurance A ct (12 U.S.C. 1 8 4 8 ( c ) ( 4 ) ) ,
to furnish to the Com ptroller of the Currency and
the Federal Deposit Insurance Corporation re­
ports on competitive factors involved in a bank
m erger required to be approved by one of those
agencies if the appropriate departm ents or divi­
sions of the appropriate Federal Reserve Bank
and the Board of G overnors are in unanim ous
agreement that the proposed m erger would have
no adverse com petitive effects and if no member
of the Board has indicated an objection prior to
the forw arding of the report to the appropriate
agency.
(d)
The Director of the Division of Federal
Reserve Bank Operations (or, in his absence, the
Acting D irector) is authorized:
(1 )
U n d er the provisions of the sixteenth p ara­
graph of section 4 of the F ederal Reserve A ct (12
U.S.C. 3 0 4 ), to classify m em ber banks for the
purposes of electing Federal Reserve Bank class
A and class B directors, giving consideration to

5

(i) the statutory requirem ent that each of the
three groups shall consist as nearly as may be of
banks of similar capitalization and (ii) the desira­
bility that every m em ber bank have the opportu­
nity to vote for a class A or a class B director at
least once every three years.
(2 ) U nder the provisions of the third para­
graph of section 16 of the Federal Reserve Act
(12 U.S.C. 4 1 3 ), to apportion credit am ong the
Reserve Banks for unfit notes that are destroyed,
giving consideration to the net num ber of notes of
each denom ination that were issued by each Re­
serve Bank during the preceding calendar year.
(3 ) U nder the provisions of section 19(b) of
the Federal Reserve A ct (12 U.S.C. 461) and
§ 204.2(a)(2) of this chapter (Regulation D), to
perm it a m em ber bank in a reserve city to m ain­
tain reserves at the ratios prescribed for banks
not in reserve cities, provided such bank holds
dem and deposits of not m ore than $25 million, or,
dem and deposits less than the am ount of dem and
deposits of the largest bank in the city that is per­
mitted to maintain reserves at such low er ratio,
whichever is larger, giving consideration to fac­
tors such as the am ount of the b an k’s resources,
total deposits, dem and deposits, dem and deposits
owing to banks, types of depositors and borrow ­
ers, turnover of dem and deposits, geographical
location within the city, and competitive position
with relation to other banks in the city.
(4 ) U nder the provisions of §§ 2 1 6 .5 (b ),
2 1 6 .5 (d ), and 216.6 of this chapter (Regulation
P ) , with respect to Federal Reserve Banks and
branches: (i) to require reports on security de­
vices; (ii) to require special reports; and (iii) to
determine, in view of the provisions of §§ 216.3
and 216.4, w hether security devices and proce­
dures are deficient in meeting the requirem ents of
P art 216, to determ ine w hether such requirem ents
should be varied in the circumstances o f a particu­
lar banking office, and to require corrective action.
(e) The Director of the Division of Personnel
Administration (or, in his absence, the Acting D i­
rector) is authorized, under the provisions of the
twenty-first paragraph of section 4 of the Federal
Reserve A ct (12 U.S.C. 3 0 6 ), to approve the ap­
pointm ent of assistant F ederal Reserve agents (in­
cluding representatives and alternate representa­
tives of such agents).
(f) Each Federal Reserve Bank is authorized,
as to m em ber banks or other indicated organiza­
tions headquartered in its district:

DELEGATION OF AUTHORITY

§ 2 6 5 .2

(1 ) U nder the provisions of the third p aragraph
of section 9 of the Federal Reserve Act (12
U.S.C. 3 2 1 ), section 5155 of the Revised Statutes
(12 U.S.C. 3 6 ), and § 208.8 of this chapter (R eg­
ulation H ) , to approve the establishm ent by a
State m em ber bank of a domestic branch if the
proposed branch has been approved by the ap­
propriate State authority and if the Reserve Bank
is satisfied that approval is w arranted after giving
consideration to:
(1) the bank’s capitalization in relation to the
character and condition of its assets and to its
deposit liabilities and other corporate responsibili­
ties, including the volume of its risk assets and of
its marginal and inferior quality assets, all con­
sidered in relation to the strength of its m anage­
ment;
(ii) the ability of bank’s m anagem ent to cope
successfully with existing or foreseeable problems,
and to staff the proposed branch w ithout any
significant deterioration in the overall m anage­
m ent situation;
(iii) the convenience and needs of the com ­
m unity;
(iv) the com petitive situation (either actual or
p o te n tia l);
(v) the prospects for profitable operations of
the proposed branch within a reasonable time, and
the ability of the bank to sustain the operational
losses of the proposed branch until it becomes
profitable; and
(vi) the reasonableness of b an k’s investment in
bank premises after the expenditure for the pro­
posed branch.
(2) U nder the provisions of the sixth paragraph
of section 9 of the Federal Reserve A ct (12
U.S.C. 324) and the provisions of section 5199 of
the Revised Statutes (12 U.S.C. 6 0 ), to perm it a
State m em ber bank to declare dividends in excess
of net profits for the calendar year com bined with
the retained net profits of the preceding two years,
less any required transfers to surplus or a fund for
the retirem ent of any preferred stock, if the R e­
serve Bank is satisfied th at approval is w arranted
after giving consideration tp:
(i)
the bank’s capitalization in relation to the
character and condition of its assets and to its
deposit liabilities and other corporate responsibili­
ties, including the volum e of its risk assets and of
its m arginal and inferior quality assets, all con­
sidered in relation to the strength of its m anage­
m ent; and

6

(ii)
the bank’s capitalization after paym ent of
the proposed dividend.
(3 ) U nder the provisions of the tenth p ara­
graph of section 9 o f the Federal Reserve A ct (12
U.S.C. 3 28), to waive six m onths’ notice by a
bank of its intention to w ithdraw from F ederal
Reserve membership.
(4) U nder the provisions of the eleventh p ara­
graph of section 9 of the F ederal Reserve A ct
(12 U.S.C. 3 29 ), to perm it a State m em ber bank
to reduce its capital stock if its capitalization
thereafter will b e :
(i) in conform ity with the requirem ents of F ed ­
eral law, and
(ii) adequate in relation to the character and
condition of its assets and to its deposit liabilities
and other corporate responsibilities, including the
volume of its risk assets and of its m arginal and
inferior quality assets, all considered in relation
to the strength of its m anagem ent.
(5) U nder the provisions of the seventeenth
paragraph of section 9 of the F ederal Reserve
Act (12 U.S.C. 3 3 4 ), to extend the time, fo r good
cause shown, within which an affiliate of a State
m em ber bank must file reports.
(6) U nder the provisions of the seventh p ara­
graph of section 13 of the Federal Reserve A ct
(12 U.S.C. 3 72 ), to perm it a m em ber bank to
accept commercial drafts in an aggregate am ount
at any one time up to 100 per cent of its capital
and surplus.
(7) U nder the provisions of section 24A of the
Federal Reserve Act (12 U.S.C. 3 7 1d), to perm it
a State m em ber bank to invest in bank premises
in an am ount in excess of its capital stock, if the
Reserve Bank is satisfied th at approval is w ar­
ranted after giving consideration to:
(i) the bank ’s capitalization in relation to the
character and condition of its assets and to its
deposit liabilities and other corporate responsibili­
ties, including the volum e of its risk assets and of
its marginal and inferior quality assets, all con­
sidered in relation to the strength of its m anage­
ment: A n d provided, T hat
(ii) upon com pletion of the proposed invest­
m ent, the ban k ’s aggregate investm ent (direct and
indirect) in bank premises plus the indebtedness
of any wholly-owned bank premises subsidiary
will not exceed 40 per cent of its total capital
funds (including capital notes and debentures)
plus reserves other than valuation reserves.
(8) U nder the provisions of the ninth p ara­

DELEGATION OF AUTHORITY

§ 2 6 5 .3

lation H ), for good cause shown, to extend the
time for publication of reports of condition, such
extensions not ordinarily to be for m ore than 10
days except in very unusual circum stances beyond
control of the reporting bank.
(17) U nd er the provisions of § 2 0 7 .1(b) of this
chapter (Regulation G ) , to approve applications
for term ination of registration by persons who are
registered pursuant to § 2 0 7 .1 (a ).
(18) U nder the provisions of the second p ara­
graph of section 2 5 (a ) of the Federal Reserve
A ct (12 U.S.C. 612) and § 211.3 of this chapter
(Regulation K ), to approve am endm ents to the
Articles of A ssociation of any “Edge A ct” corpo­
ration to reflect the following: (i) any increase in
the capital stock of such corporation w here all
additional shares are to be acquired by existing
shareholders; (ii) any change in the location of
the hom e office of such corporation within the
city where such corporation is presently located;
and (iii) any change in the num ber of members
of the Board of D irectors of such corporation.
(g)
The Director of the Division of Internation­
al Finance (or, in his absence, the Acting D irec­
tor) is authorized, under the provisions of the
sixth paragraph of section 14 of the F ederal R e­
serve Act (12 U.S.C. 358) to approve the estab­
lishment of foreign accounts with the Federal
Reserve Bank of N ew York.

graph of section 2 5 (a ) of the Federal Reserve
A ct (12 U.S.C. 6 1 5 ), to extend the tim e in which
an “Edge A ct” corporation m ust divest itself of
stock acquired in satisfaction of a debt previously
contracted.
(9) U nd er the provisions of the twenty-second
p aragraph of section 2 5 (a ) of the F ederal Reserve
A ct (12 U.S.C. 6 2 8 ), to extend the period of cor­
porate existence of an “Edge A ct” corporation.
(10) U nder the provisions of section 5 (a ) of
the Bank Holding Com pany A ct (12 U.S.C.
1 8 4 4 ( a ) ), to extend the time within w hich a bank
holding com pany m ust file a registration statement.
(11 ) U n der the provisions of section 4 (a ) of
the Bank Holding Com pany A ct (12 U.S.C.
1 8 4 3 ( a ) ), to extend the tim e within w hich a bank
holding com pany m ust divest itself of interests in
nonbanking organizations.
(1 2) U nd er the provisions of section 4 ( c ) ( 2 )
of the Bank Holding Com pany A ct (12 U.S.C.
1 8 4 3 ( c ) ), to extend the time within which a bank
holding com pany m ust divest itself of interests in
a nonbanking organization acquired in satisfaction
of a debt previously contracted.
(13) U nd er the provisions of section 5 (c) of
the Bank Holding Com pany A ct (12 U.S.C.
1 8 4 4 (c )), to require reports under oath to deter­
mine w hether a com pany is complying with the
provisions of such A ct and the B oard’s regulations
prom ulgated thereunder.
(14) U nder the provisions of § 208.10(c) of
this chapter (Regulation H ) , to extend the time
w ithin w hich a m em ber bank that has given notice
of intention to w ithdraw from membership m ust
surrender its Federal Reserve Bank stock and its
certificate of membership.
(15 ) U nder the provisions of § § 2 1 6 .5 (b ),
2 1 6 .5 (d ), and 216.6 of this chapter (R egulation
P ) , with respect to State m em ber banks only: (i)
to require reports on security devices; (ii) to re­
quire special reports; and (iii) to determ ine, in
view of the provisions of §§ 216.3 and 216.4,
w hether security devices and procedures are defi­
cient in meeting the requirem ents of P art 216, to
determ ine w hether such requirem ents should be
varied in the circumstances of a particular banking
office, and to require corrective action.
(1 6) U nder § 2 0 8 .9 (a) of this chapter (R egu­

S EC T IO N 265.3— R E V IE W O F A C T IO N
AT D ELEG A TED LEVEL
A ny action taken at a delegated level shall be
subject to review by the Board only if such review
is requested by a m em ber of the Board either on
his own initiative or on the basis of a petition for
review by any person claiming to be adversely
affected by the action. A ny such petition for re­
view must be received by the Secretary of the
Board not later than the fifth day after the date
of such action. N otice of any such review shall
be given to the person with respect to w hom such
action was taken and be received by such person
not later than the close of the tenth day follow­
ing the date of such action. U pon receipt of such
notice, such person shall not proceed further in
reliance upon such action until he is notified of
the outcom e of review thereof by the Board.

7