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F ederal R eserve Bank of Dallas
DALLAS. TE X A S

75222

Circular No. 73-90
April 2 k , 1973

R E V I S I O N S
Rules of Organization
Rules of Procedure

To All Member Banks and Others Concerned in the
Eleventh Federal Reserve District:
The Board of Governors of the Federal Reserve System has revised
its "Rules of Organization" and "Rules of Procedure".
The revision of the "Rules of Organization" brings descriptions
of the functions of the various offices and divisions of the Board's staff
up to date and otherwise brings the Rules into conformity with current
practice; the revision of the "Rules of Procedure" brings them into con­
formity with current practice and makes them more informative to the public.
A pamphlet containing these revisions, which became effective
March 1, 1973? is enclosed for insertion in the binder of Regulations of
the Board of Governors of the Federal Reserve System and Bulletins of the
Federal Reserve Bank of Dallas furnished all member banks.
Your copy of the "Rules of Organization" and "Rules of Procedure"
effective August 9? 19&7? together with the Amendment to the "Rules of
Procedure" effective September 1, 1971? may now be removed from your binder
and 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 OF ORGANIZATION

RULES OF PROCEDURE
(12 CFR 262)

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

Page

Page
RULES OF PROCEDURE

RULES OF ORGANIZATION
3

S e c . 2 6 2 .1 — B asis

L o c a t i o n ...........

3

S e c . 2 6 2 .2 — P r o c e d u r e

(a ) Governors, Chairman, V ice Chair­
m an .......................................................
(b ) L ocation and business h o u r s ..........

3
3

S e c . 3 — C e n t r a l O r g a n i z a t i o n ......................

3

S e c . 1— B asis

and

S c o p e ......................................

S e c . 2— C o m p o s it io n

and

(a )
(b )
(c)
(d )
(e )
(f)

Office o f the Executive Director . .
Office o f the S e c r e t a r y .......................
Legal D ivision .....................................
D ivision o f Research and Statistics
D ivision o f International Finance .
D ivision o f Federal Reserve Bank
Operations ........................................
( g ) D ivision o f Supervision and Regu­
lation ....................................................
(h ) D ivision o f Personnel Administra­
tion .......................................................

(i)

Sec.

Division of Administrative Services

3
3
3
3
4
4
4
4

4

(j) Office o f the C o n t r o ll e r ....................
(k ) D ivision o f D ata P r o c e s s i n g ..........
(1) Other p e r s o n n e l ...................................

4
5
5

4— F i e l d O r g a n i z a t i o n ...........................

5

(a ) Federal Reserve B a n k s .......................
(b ) Federal Reserve A g e n t s ....................

5
5

S e c . 5— D e l e g a t io n s

A u t h o r i t y ...........

5

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

6

F ederal R eserv e Sy s t e m

7

A p p e n d ix
M ap

of

of

and

Sc

ope

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

fo r R e g u l a t io n s

(a) Notice ....................................................
(b) Public p articipation ..........................
(c) Preparation of draft and action by
Board ...............................................
(d) Effective dates ....................................
(e) Exceptions as to notice or effective
d a t e ....................................................

S e c . 2 6 2 .3 — A p p l ic a t io n s

8

8

8
8
8
8
8

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

9

Forms ....................................................
Filing of applications........................
Analysis by s t a f f .................................
Action on ap p lication s......................
Notice of action ...............................
Action at Board’s in itia tiv e............
General procedures for bank hold­
ing company and merger appli­
cations .............................................
(h) Special procedures for certain ap­
plications ........................................

9
9
9
9
9
9

(a)
(b)
(c)
(d)
(e)
(f)
(g)

S e c . 2 6 2 .4 — A d j u d ic a t io n
H ea r in g

and

10

F ormal

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

S e c . 2 6 2 .5 — A p p e a r a n c e

S e c . 2 6 2 .6 — F o r m s

w it h

9

P r a c t ic e . .

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

10

10

10

RULES OF ORGANIZATION
As revised effective March 1, 1973

SE C T IO N 1.— BASIS A N D SCO PE
T hese Rules are issued by the Board o f G o v ­
ernors o f the Federal Reserve System (the
“Board”) pursuant to the requirement o f section
55 2 o f Title 5 o f the U nited States C ode that
each agency shall publish in the Federal Register
a description o f its central and field organization.
SE C T IO N 2.— C O M P O SIT IO N A N D
L O C A T IO N
(a) Governors, Chairman, V ice Chairman. The
Board consists o f seven members appointed by
the President, by and with the advice and co n ­
sent o f the Senate, for fourteen-year terms. T he
mem bers o f the Board are required by law to
devote their entire time to the business o f the
Board. One o f them is designated by the President
as Chairman and on e as V ice Chairman, to serve
as such for terms o f four years. A t meetings, the
Chairman presides or, in his absence, the V ice
Chairman presides. In the absence o f the Chair­
man and V ice Chairman, the mem ber o f the
Board present with the longest service acts as
Chairman. T he Chairman o f the Board, subject
to its supervision, is its active executive officer.
The Board meets regularly and frequently to co n ­
sider matters relating to monetary and credit
policies, regulatory and supervisory duties with
which it has been charged by the Congress, and
administrative and other questions arising in the
conduct o f the work o f the Board.
(b) Location and business hours. T h e principal
offices o f the Board are in the Federal Reserve
Building, 20th Street and Constitution A venue,
N .W ., Washington, D . C. 2 05 51 . T h e Board’s
regular business hours are from 8:45 a.m. to
5:15 p.m. each w eekday except Saturday; but
such business hours m ay be changed from time to
time.
SE C T IO N 3.— C E N T R A L O R G A N IZ A T IO N
T he Board’s central organization consists o f the
members o f the Board and the follow ing Offices,
Divisions, and officials:

(a) Office of the Executive Director is headed
by an Executive D irector w hose functions include
the coordination and overall planning o f the
activities o f the staff in carrying out the Board’s
programs, and the handling o f administrative
affairs under the direction o f the Chairman o f
the Board and other Board members with dele­
gated functions. T he Executive Director is respon­
sible to the Board for the direct supervision o f the
Office o f the Secretary, D ivision o f Personnel
Administration, Office o f the Controller, D ivision
o f Administrative Services, D ivision o f Data
Processing, and for certain special programs. T he
D irector has administrative and coordination re­
sponsibilities for the Legal D ivision, D ivision o f
Federal Bank Operations, D ivision o f Research
and Statistics, D ivision o f International Finance,
Division o f Supervision and Regulation, and for
the Federal Reserve Labor Relations Panel. In
addition, the Executive Director is concerned with
coordination o f the functions o f the Board and its
D ivisions with the activities o f the Federal R e­
serve Banks, operating through the appropriate
D ivision o f the Board’s staff, and w ith the C on­
ference o f Chairmen o f the Federal Reserve
Banks, the C onference o f Presidents o f the F ed ­
eral Reserve Banks, and other System organiza­
tions.
(b) Office o f the Secretary, headed by the
Board’s Secretary, coordinates items regarding
Board actions, prepares agendas for Board m eet­
ings, and im plements actions taken. This Office
clears and conducts official correspondence o f the
Board, and is charged with responsibility for
maintaining and providing reference service to
the official records o f the Board and o f the
Federal Open Market Committee.
(c) Legal Division, headed by the Board’s Gen­
eral Counsel, advises and assists the Board with
respect to legal aspects o f its daily operations,
including applicable statutes, regulations, applica­
tions, interpretations, opinions, orders, hearings,
litigation, and legislation.

(d) Division of Research and Statistics, headed

RULES OF ORGANIZATION

by a Director, provides the Board and the Federal
Open Market Committee with the econom ic
analysis and information needed for current oper­
ations, for the formulation o f monetary and credit
policies, and for the exercise o f responsibilities
with regard to bank regulation; prepares, pub­
lishes, and interprets a variety of statistical series
in the financial and nonfinancial fields; conducts
basic research relating to the effects o f monetary
policy on econom ic activity and prices, and to the
effects o f financial regulation on the structure and
functioning o f financial markets.
(e) Division of International Finance, headed
by a Director, advises and assists the Board on
international financial, banking, and econom ic
matters and conducts research in this field. It
carries on staff work in connection with the
supervision o f foreign operations of the Federal
Reserve System, the membership o f the Chairman
o f the Board on the N ational Advisory Council on
International Monetary and Financial Policies,
and the administration o f the Voluntary Foreign
Credit Restraint Program.
(f) Division of Federal Reserve Bank Opera­
tions, headed by a Director, advises and assists
the Board with respect to matters concerning the
planning and programs for operation o f the F ed­
eral Reserve Banks. The Division monitors the
im plem entation and achievement o f such pro­
grams and informs the Board o f the status o f
each program. It is responsible for the exam ina­
tion o f the Federal Reserve Banks and the System
Open Market Account; reviews and appraises
Reserve Bank audit activities; provides an ap­
praisal o f Reserve Bank building programs; pro­
vides analysis and recomm endations for Board
policy in the payments mechanism area; admin­
isters an accounting system for collection and
analysis o f budget and expense data; reviews the
lending and credit activities o f the Reserve Banks;
and maintains liaison with the Treasury and other
G overnm ent agencies on fiscal agency operations
and with various interested parties on payments
m echanism matters. T he D ivision also coordinates
the printing, issuance, and redemption o f Federal
Reserve notes and is jointly responsible with the
Bureau o f the Mint for the production and dis­
tribution o f coin.
(g) Division of Supervision and Regulation,
headed by a Director, coordinates the bank super­
visory functions o f the System and evaluates the

examination procedures o f the Reserve Banks;
exercises general supervision o f the comm ercial
and fiduciary activities o f State mem ber banks;
administers the supervisory features o f laws and
regulations relating to affiliates and bank holding
companies; supervises various foreign banking
activities o f member banks and foreign banking
and financing corporations; administers the public
disclosure provisions o f the Securities Exchange
A ct o f 1934, as amended, in their application to
State member banks, and the provisions o f the
A ct giving responsibility to the Board for regu­
lating security credit transactions; drafts regula­
tions pursuant to the Truth in Lending A ct for
financial institutions and other firms engaged in
consumer lending and administers the regulations
in their application to State m em ber banks;
administers the provisions o f the Fair Credit R e­
porting Act, the Currency and Foreign Trans­
actions Reporting Act, and the Civil Rights Act
o f 1968 in their application to State member
banks; processes and presents to the Board appli­
cations filed pursuant to the Bank H olding C om ­
pany A ct o f 1956, as amended, and the Bank
Merger A ct and various other applications sub­
mitted under the provisions o f the Federal R e­
serve A c t or related statutes; and advises the
Board regarding developments in banking and
bank supervisory policies and procedures.
(h) D ivision o f Personnel Administration,
headed by a Director, is responsible for the
developm ent and im plementation o f Board per­
sonnel policies and programs, serves as the
Board’s personnel security office, and advises and
assists the Board on personnel matters pertaining
to the Federal Reserve Banks.
(i) Division of Administrative Services, headed
by a Director, serves as the central procurement,
duplicating, comm unications, and service unit o f
the Board and advises and assists the Board with
respect to such matters. It also performs various
administrative functions, including the distribution
o f Board publications and the operation o f the
Board’s building and other facilities.
(j) Office of the Controller, headed by the
Board’s Controller, is responsible for maintaining
an effective internal financial managem ent sys­
tem, including budgeting, accounting, reporting,
internal and contract auditing, and operational
analyses; determining assessments on the Federal
Reserve Banks for funds to cover expenses of

RULES OF ORGANIZATION

the Board; receiving and disbursing the Board’s
funds; and handling reimbursement to the Treas­
ury Department for the printing, issuance, and
redemption o f Federal Reserve notes.
(k) Division of Data Processing, headed by a
Director, supports the Board organization through
the developm ent, operation, and maintenance of
information processing systems. Activities include
systems and mathematical statistical analysis, co m ­
puter programming, equipment operation, data
and production control, advanced planning and
im plementation o f computer systems and c o m ­
munication networks. T he D ivision develops, co l­
lects, and processes statistical information on
banking developments and on the condition o f
Federal Reserve Banks and member banks; and
designs and produces graphics used in econom ic
analysis and information presentation.
(1)
Other personnel. In addition to the D ivisions
mentioned above, the staff o f the Board includes
Advisers, Assistants, and Special Assistants to the
Board. T he Federal Reserve B u l l e t i n is issued
monthly under the direction o f a Staff Editorial
Committee. T he Board does not em ploy admin­
istrative law judges or hearing officers as regular
members o f its staff; but, in accordance with
applicable provisions o f law and in individual
cases as the need may arise, the Board obtains
and utilizes administrative law judges and hearing
officers, w hose functions in such capacity are
appropriately separated, as required by law, from
investigative and prosecuting functions o f the
staff.
SE C T IO N 4.— F IE L D O R G A N IZ A T IO N
(a)
Federal Reserve Banks. The U nited States
is divided into twelve Federal Reserve districts.
In one city in each Federal Reserve district there
is located a Federal Reserve Bank; in ten o f the
districts there are one or more branches o f the
Federal Reserve Bank in other cities; and in some
districts there are offices or facilities with spe­
cialized functions. Each Federal Reserve Bank is
a separate legal entity, created pursuant to the
Federal Reserve A c t and operating under the

§§ 3-5
general supervision of the Board. T he locations
o f the twelve Federal Reserve Banks and the
twenty-four branches and the boundaries o f the
Federal Reserve district and branch territories are
shown in the Appendix. Each Federal Reserve
Bank, in addition to its other duties, carries out
local functions for the Board pursuant to instruc­
tions o f the Board, and in m any matters acts as
the Board’s field representative in the Bank’s
district. Each Reserve Bank assists in the regional
administration o f the Board’s regulations and
policies, keeps the Board informed o f local co n ­
ditions, and recomm ends such actions as it thinks
appropriate in particular cases. In general, persons
concerned with Federal Reserve matters should
deal in the first instance with the Federal Reserve
Bank o f the appropriate district or a branch
thereof, and the Board requests all persons to
follow this procedure.
(b)
Federal Reserve Agents. Each Federal R e­
serve Bank has nine directors, three o f w hom are
appointed by the Board. One o f the directors ap­
pointed by the Board is designated by the Board
as Chairman o f the Board o f Directors o f the
Bank and as Federal Reserve Agent. H e acts as
the Board’s official representative and maintains
a local office of the Board on the premises of the
Federal Reserve Bank.
SE C T IO N 5.— D E L E G A T IO N S O F
A U T H O R IT Y
T he Board does not delegate any o f its func­
tions relating to rule-making or pertaining prin­
cipally to monetary or credit policies or involving
any questions of general policy. How ever, the
Board delegates certain o f its supervisory and
other functions prescribed by statute or regula­
tions o f the Board to its members or em ployees
or to the Federal Reserve Banks as provided in
its Rules Regarding Delegation o f Authority (12
C F R 265). In addition, the Board delegates to the
Federal Reserve Banks certain functions not pro­
vided for by statute or regulations o f the Board,
including authority to extend the time within
w hich certain transactions may be consummated.

APPENDIX
Federal Reserve Bank

Address

BOSTON

30 Pearl Street (Boston, Massachusetts 02106)

N EW YORK
Buffalo Branch

33 Liberty Street (Federal Reserve P.O. Station, New York, New York 10045)
160 Delaware Avenue (P.O. Box 961, Buffalo, New York 14240)

P H IL A D EL P H IA

925 Chestnut Street (Philadelphia, Pennsylvania 19101)

CLEV ELA N D
Cincinnati Branch
Pittsburgh Branch

1455 East Sixth Street (P.O. Box 6387, Cleveland, Ohio 44101)
105 West Fourth Street (P.O. Box 999, Cincinnati, Ohio 45201)
717 G rant Street (P.O. Box 867, Pittsburgh, Pennsylvania 15230)

R IC H M O N D
Baltimore Branch
Charlotte Branch
Culpeper Communications
Center

100 N orth Ninth Street (P.O. Box 27622, Richmond, Virginia 23261)
114-120 East Lexington Street (P.O. Box 1378, Baltimore, Maryland 21203)
401 South Tryon Street (Charlotte, N orth Carolina 28201)
P.O. Drawer 20 (Culpeper, Virginia 22701)

A TLA N TA
Birmingham Branch
Jacksonville Branch
Nashville Branch
New Orleans Branch
Miami Office

104 Marietta Street N. W. (Atlanta, Georgia 30303)
1801 Fifth Avenue, N orth (P.O. Box 2574, Birmingham, Alabama 35202)
515 Julia Street (P.O. Box 929, Jacksonville, Florida 32203)
301 Eighth Avenue, N orth (Nashville, Tennessee 37203)
525 St. Charles Avenue (P.O. Box 61630, New Orleans, Louisiana 70161)
P.O. Box 847, (M iami, Florida 33152)

C H ICA GO
Detroit Branch

230 South LaSalle Street (P.O. Box 834, Chicago, Illinois 60690)
160 F ort Street, West (P.O. Box 1059, Detroit, Michigan 48231)

ST. LOUIS
Little Rock Branch
Louisville Branch
Memphis Branch

411
325
410
200

M INN EA POLIS
Helena Branch

73 South Fifth Street (Minneapolis, Minnesota 55480)
400 N orth Park Avenue (Helena, M ontana 59601)

KANSAS CITY
Denver Branch
O klahom a City Branch
Omaha Branch

925 G rand Avenue (Federal Reserve Station, Kansas City, Missouri 64198)
1020 16th Street (P.O. Box 5228, Terminal Annex, Denver Colorado 80217)
226 Northwest Third Street (P.O. Box 25129, Oklahoma City, Oklahoma 73125)
102 South Seventeenth Street (Omaha, Nebraska 68102)

DALLAS
El Paso Branch
Houston Branch
San Antonio Branch

400 South Akard Street (Station K, Dallas, Texas 75222)
301 East Main Street (P.O. Box 100, El Paso, Texas 79999)
1701 San Jacinto Street (P.O. Box 2578, Houston, Texas 77001)
126 East Nueva Street (P.O. Box 1471, San Antonio, Texas 78295)

SAN FR A N CISCO
Los Angeles Branch

400 Sansome Street (P.O. Box 7702, San Francisco, California 94120)
409 West Olympic Boulevard (P.O. Box 2077, Terminal Annex, Los Angeles,
California 90051)
915 S. W. Stark Street (P.O. Box 3436, Portland, Oregon 97208)
120 South State Street (P.O. Box 780. Salt Lake City, U tah 84110)
1015 Second Avenue (P.O. Box 3567, Seattle, Washington 98124)

Portland Branch
Salt Lake City Branch
Seattle Branch

Locust Street (P.O. Box 442, St. Louis, Missouri 63166)
West Capitol Avenue (P.O. Box 1261, Little Rock, Arkansas 72203)
South Fifth Street (P.O. Box 899, Louisville, Kentucky 40201)
N orth Main Street (P.O. Box 407, Memphis, Tennessee 38101)

6

B O U N D A R IE S O F F E D E R A L R E SE R V E D IST R IC T S A N D T H E IR B R A N C H T ER R IT O R IE S

☆

C°

THE FEDERAL RESERV E SYSTEM

c)

£

Legend
Boundaries of Federal Reserve Districts ----- Boundaries of Federal Reserve Branch Territories

o Board of Governors of the Federal Reserve System
® Federal Reserve Bank Cities

• Federal Reserve Branch Cities

Federal Reserve Bank Facilities

RULES OF PROCEDURE
As revised effective March 1, 1973

S E C T IO N 262.1— BASIS A N D SCO PE
This Part is issued pursuant to section 552 of
Title 5 o f the U nited States Code, w hich requires
that every agency shall publish in the Federal
Register statements o f the general course and
method by which its functions are channeled and
determined, rules o f procedure, and descriptions
o f forms available or the places at w hich forms
may be obtained.

SE C T IO N 26 2 .2 — P R O C E D U R E F O R
R E G U L A T IO N S
(a) N o tice. N otices of proposed regulations of
the Board o f Governors o f the Federal Reserve
System (the “Board”) or amendm ents thereto are
published in the Federal Register, except as
specified in paragraph (e) o f this section or other­
wise excepted by law. Such notices include a
statement o f the terms o f the proposed regulations
or amendm ents and a description o f the subjects
and issues involved; but the giving of such notices
does not necessarily indicate the Board’s final
approval of any feature o f any such proposal.
The notices also include a reference to the au­
thority for the proposed regulations or amend­
ments and a statement o f the time, place, and
nature o f public participation.
(b) Public participation. The usual method of
public submission of data, views, or arguments is
in writing. It is ordinarily preferable that they be
sent to the Secretary o f the Board, W ashington,
D . C. 2055 1, with copies to the appropriate F ed ­
eral Reserve Bank. The locations o f the twelve
Federal Reserve Banks and the boundaries o f the
Federal Reserve districts are shown in the A pp en ­
dix to the Board’s Rules o f Organization. Such
material will be made available for inspection and
copying upon request, except as provided in
§ 261.6(a) o f this chapter regarding availability
o f information.
(c) Preparation o f draft and action by Board.
In the light o f consideration of all relevant matter
presented or ascertained, the appropriate division

o f the Board’s staff, in collaboration with other
divisions, prepares drafts o f proposed regulations
or amendments, and the staff submits them to the
Board. T he Board takes such action as it deems
appropriate in the public interest. A n y other docu­
ments that may be necessary to carry out any
decision by the Board in the matter are usually
prepared by the Legal Division, in collaboration
with the other divisions o f the staff.
(d) Effective dates. A n y substantive regulation
or amendm ent thereto issued by the Board is pub­
lished not less than 30 days prior to the effective
date thereof, except as specified in paragraph (e)
o f this section or as otherwise excepted by law.
(e) E xceptions as to notice or effective date.
In certain situations, notice and public participa­
tion with respect to proposed regulations may be
impracticable, unnecessary, contrary to the public
interest, or otherwise not required in the public
interest, or there may be reason and good cause in
the public interest why the effective date should
not be deferred for 30 days. The reason or rea­
sons in such cases usually are that such notice,
public participation, or deferment o f effective
date would prevent the action from becom ing
effective as promptly as necessary in the public
interest, would permit speculators or others to
reap unfair profits or to interfere with the Board’s
actions taken with a view to accom m odating co m ­
merce and business and with regard to their bear­
ing upon the general credit situation o f the
country, would provoke other consequences con ­
trary to the public interest, would unreasonably
interfere with the Board’s necessary functions
with respect to managem ent or personnel, would
not aid the persons affected, or would otherwise
serve no useful purpose. The follow ing m ay be
mentioned as some examples o f situations in
which advance notice or deferred effective date,
or both, will ordinarily be omitted in the public
interest: T he review and determination o f discount
rates established by Federal Reserve Banks, and
changes in general requirements regarding reserves
of member banks, m axim um interest rates on

RULES OF PROCEDURE

time and savings deposits, or credit for purchasing
or carrying securities.
SECTION 262.3— APPLICATIONS
(a) Forms. Any application, request, or petition
(hereafter referred to as “application”) for the
approval, authority, determination, or permission
of the Board with respect to any action for which
such approval, authority, determination, or per­
mission is required by law or regulation of the
Board (including actions authorized to be taken
by a Federal Reserve Bank or others on behalf
of the Board pursuant to authority delegated
under Part 265 of this chapter) shall be submitted
in accordance with the pertinent form, if any,
prescribed by the Board. Copies of any such form
and details regarding information to be included
therein may be obtained from any Federal Re­
serve Bank. Any application for which no form
is prescribed should be signed by the person mak­
ing the application or by his duly authorized
agent, should state the facts involved, the action
requested, and the applicant’s interest in the
matter, and should indicate the reasons why the
application should be granted. Applications for
access to, or copying of, records of the Board
should be submitted as provided in § 261.4(d) of
this chapter.
(b) Filing o f applications. Any application
should be sent to the Federal Reserve Bank of
the district in which the applicant is located,
except as otherwise specified on application forms,
and that Bank will forward it to the Board when
appropriate.
(c) A nalysis by staff. In every case, the Reserve
Bank makes such investigation as may be neces­
sary, and, except when acting pursuant to dele­
gated authority, reports the relevant facts, with
its recommendation, to the Board. In the light of
consideration of all relevant matter presented or
ascertained, the Board’s staff prepares and sub­
mits to the Board comments on the subject.
(d) A ction on applications. The Board takes
such action as it deems appropriate in the public
interest. Such documents as may be necessary to
carry out any decision by the Board are prepared
by the Board’s staff. With respect to actions taken
by a Federal Reserve Bank on behalf of the
Board under delegated authority, statements and
necessary documents are prepared by the staff of
such Federal Reserve Bank.

§§ 262.2-262.3
(e) N o tic e o f action. Prompt notice is given
to the applicant of the granting or denial in
whole or in part of any application. In the case
of a denial, except in affirming a prior denial or
where the denial is self-explanatory, such notice
is accompanied by a simple statement of the
grounds for such action.
(f) A ction at Board’s initiative. When the
Board, without receiving an application, takes
action with respect to any matter as to which
opportunity for hearing is not required by statute
or Board regulation, similar procedure is followed,
including investigations, reports, and recommenda­
tions by the Board’s staff and by the Reserve
Banks, where appropriate.
(g) G eneral procedures for bank holding com ­
pany and m erger applications. In addition to pro­
cedures applicable under other provisions of this
Part, the following procedures are applicable in
connection with the Board’s consideration of
applications under sections 3 and 4 of the Bank
Holding Company A ct of 1956 (12 U.S.C. § 1842
and § 1843), hereafter referred to as “section 3
applications” or “section 4 applications”, and of
applications under section 18(c) of the Federal
Deposit Insurance Act (12 U.S.C. § 1823), here­
after called “merger applications.” Except as
otherwise indicated, the following procedures ap­
ply to all such applications.
(1) The Board issues each week a list that
identifies section 3 and section 4 and merger
applications received and acted upon during the
preceding week by the Board or the Reserve
Banks pursuant to delegated authority. N otice of
receipt of all section 3 applications and of sec­
tion 4(c)(8) applications acted on by the Board
is published in the Federal Register.
(2) If a hearing is required by law or if the
Board determines that a formal hearing for the
purpose o f taking evidence is desirable, the Board
issues an order for such a hearing, and notice
thereof is published in the Federal Register. Any
such formal hearing is conducted by an adminis­
trative law judge in accordance with the Board’s
Rules of Practice for Formal Hearings (Part 263
of this chapter) except that, unless otherwise
ordered by the Board, such a hearing is public.
(3) In any case in which a formal hearing is
not ordered by the Board, the Board may afford
the applicant and other properly interested per­
sons (including Governmental agencies) an oppor­

§§ 262.3-262.6
tunity to present views orally before the Board or
its designated representative. U nless otherwise
ordered by the Board, any such oral presentation
is public and notice o f such public proceeding is
published in the Federal Register.
(4) Each action taken by the Board on an
application is embodied in an Order that indicates
the votes o f members o f the Board. The Order
either contains reasons for the Board’s action
(i.e., an Expanded Order) or is accompanied by
a Statement o f the reasons for the Board’s action.
Both the Order and any accompanying Statement
are released to the press. Each such Order is
published in the Federal Register. Each Order
accompanied by a Statement and any Order o f
general interest, together with a list o f other
Orders, are published in the Federal Reserve
B u l l e t i n . Action by a Reserve Bank under dele­
gated authority as provided for under Part 265 o f
this chapter is reflected in a letter o f notification
to the applicant.
(5) A fter action by the Board on an applica­
tion, the Board will not grant any request for
reconsideration o f its action unless the request
presents relevant facts that, for good cause shown,
were not previously presented to the Board, or
unless it otherwise appears to the Board that
reconsideration w ould be appropriate.
(6) U nless the Board shall otherwise direct,
each section 3 and section 4 and merger applica­
tion is m ade available for inspection by the public
except for portions thereof as to w hich the Board
determines that nondisclosure is warranted under
section 552(b) o f Title 5 o f the U nited States
Code.
(h) Special procedures for certain applications.
T he follow ing types of applications require pro­
cedures exclusive of, or in addition to, those
described in (g)(l)-(6) above.
(1)
Special rules pertaining to section 3 and
merger applications follows: (i) Each Order of the
Board and each letter o f notification by a Reserve
Bank acting pursuant to delegated authority ap­
proving a section 3 application includes, pursuant
to the A ct approved July 1, 1966 (12 U .S.C.
§ 1849(b)), a requirement that the transaction ap­
proved shall not be consumm ated before the
thirtieth calendar day follow ing the date o f such
Order, (ii) Each Order o f the Board approving
a merger application includes, pursuant to the
A ct approved February 21, 1966 (12 U .S.C.

RULES OF PROCEDURE

§ 1828(c)(l)(6)), a requirement that the trans­
action approved shall not be consumm ated before
the thirtieth calendar day follow ing the date o f
such Order, except as the Board m ay otherwise
determine pursuant to emergency situations as to
which the A ct permits consum m ation at earlier
dates, (iii) Each Order or each letter o f notifica­
tion approving an application also includes, as a
condition o f approval, a requirement that the
transaction approved shall be consumm ated within
three m onths and, in the case o f acquisition by
a holding com pany o f stock of a new ly organized
bank, a requirement that such bank shall be
opened for business within six months, but such
periods m ay be extended for good cause by the
Board (or by the appropriate Federal Reserve
Bank where authority to grant such extensions is
delegated to the Reserve Bank).
(2) F or special rules governing procedures for
section 4(c)(8) applications, refer to § 225.4(a)-(c)
o f this chapter.
(3) For special rules governing procedures for
section 4(c)(9) applications, refer to § 225.4(g) o f
this chapter.
(4) For special rules governing procedures for
section 4(c)(12) applications, refer to § 225.4(d)
o f this chapter.
(5) For special rules governing procedures for
section 4(c)(13) applications, refer to § 225.4(f)
o f this chapter.
SE C T IO N 2 6 2.4— A D J U D IC A T IO N W IT H
F O R M A L H E A R IN G
In connection with adjudication with respect to
which a formal hearing is required by law or is
ordered by the Board, the procedure is set forth
in Part 263 o f this chapter, entitled “Rules o f
Practice for Formal Hearings.”
SE CT IO N 2 62 .5— A P P E A R A N C E A N D
P R A C T IC E
Appearance and practice before the Board in
all matters are governed by § 263.3 o f this
chapter.
SE C T IO N 2 6 2.6— F O R M S
Necessary forms to be used in connection with
applications and other matters are available at the
Federal Reserve Banks. A list o f all such forms,
which is reviewed and revised periodically, may
be obtained from any Federal Reserve Bank.