The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
F ederal Reserve B ank
DALLAS, TEXAS
of
Dallas
75222
Circular No. 81-119
June 12, 1981
RULES OF ORGANIZATION
RULES OF PROCEDURE
Revised Pamphlet
TO ALL DEPOSITORY INSTITUTIONS
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 to bring them into conformity
with current practice.
Incorporated in the revised Rules are the amendment to the Rules
of Organization effective November 7, 1973, and the slip-sheet amendments to
the Rules of Procedure dated December 1980.
The enclosed pamphlet containing the Rules of Organization effec
tive December 31, 1980, and the Rules of Procedure effective February 1, 1981,
should be filed in Volume I of the Regulations and Bulletins binders furnished by
this Bank. The pamphlet currently in the binder, which contains the two rules,
both effective March 1, 1973, as well as the amendments referred to above,
should be removed and destroyed. Since that pamphlet has been printed three
different times—in March 1973, March 1976, and April 1979—you may have any
one of the three pamphlets in your binder. However, all of them contain the
Rules that were effective March 1, 1973.
Any questions concerning the contents of this circular should be ad
dressed to the Department of Communications, Financial, and Community Af
fairs, Ext. 6166.
Sincerely yours,
William H. Wallace
First Vice President
Enclosure
Banks and others are encouraged lo use the fo llo w in g incom ing WATS numbers in con ta ctin g 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)
BOARD OF GOVERNORS
o f the
F E D E R A L R E S E R V E SYSTEM
RULES OF ORGANIZATION
As amended effective December 31, 1980
RULES OF PROCEDURE
(12 CFR 262)
As amended effective February 1, 1981
Any i n q u ir y r e la t in g to th is r e g u la t io n sho uld be a d d r e s s e d to the F e d e ral
R e se rv e B a n k o f th e F e d e r a l R e se rv e d i s t r ic t in which the i n q u iry arises.
CO N TENTS
Page
RULES OF PROCEDURE
R U L E S O F O R G A N IZ A T IO N
S ec . 1— B asis
and
S cope
S ec . 2— C omposition
(a)
(b)
and
..................................
L ocation
.............
Governors, Chairman, Vice Chairman .
Location and business hours .................
S ec . 3— C entral O rganization ......................
(a)
(b)
Office of Board Members ......................
O ffice o f S taff D irector for M onetary
and Financial P o lic y .............................
(c) Office of Staff Director for Federal Re
serve Bank Activities ...........................
(d) O ffice o f S taff D irec to r for M anage
ment ........................................................
(e) Office o f the S e c re ta ry .............................
(f) Legal Division ..........................................
(g) Division of Research and Statistics . . . .
(h) Division of International Finance ........
(i) Division of Federal Reserve Bank Oper
ations ........................................................
(j) Division o f Banking Supervision and
R e g u la tio n ...............................................
(k) Division of Consumer and Community
A f f a i r s ......................................................
(1) Division of P e rs o n n e l...............................
(m) Division of Support S e r v ic e s .................
(n) Office of the Controller ..........................
(o) Division of Data Processing .................
(p) Other personnel ........................................
S ec . 4 — F ield O rganization .............................
(a)
(b)
Federal Reserve B a n k s ............................
Federal Reserve Agents ..........................
S ec . 5 — D elegations
ec
.
262.2— Procedure for R e g u la tio n s ...........
S
3
3
3
S
ec
3
4
4
4
4
4
4
(k) Reconsideration of certain Board actions .
(1) Waiver............................................................
S e c . 2 6 2 .4 —
H
e a r in g
A
5
6
S
262.6 —
F
8
ec
.
A
d ju d ic a t io n
w it h
F
......................................................................
Sec. 262.5 —
M ap
......................................
262.3— A p p l i c a t i o n s
.
5
7
S cope
(a)
(b) Notice of applications .............................
(c) Filing of applications ...............................
(d) Analysis by s t a f f ........................................
(e) Subm ission o f com ments and requests
for hearing .............................................
(f) Action on applications .............................
(g) Notice of action ........................................
(h) Action at Board’s initiative ....................
(i) G en eral p ro ced u res for bank holding
company and merger applications .. .
Special
procedures for certain applica(j)
3
5
5
5
5
5
5
and
(a) Notice ...........................................................
(b) Public p articip ation ....................................
(c) P re p a ra tio n o f d raft and action by
B o a r d ........................................................
(d) Effective dates ...........................................
(e) Exceptions as to notice or effective date
3
3
A ppendix ......................................................
F ederal R eserve S ystem . . . .
262.1— B a s i s
3
6
of
A uthority
.
Se
.............
of
c
3
ppearance an d
orms
P r a c t ic e
...............................................
orm al
RULES OF ORGANIZATION
As amended effective December 31, 1980
Assistants to the Board assigned to public affairs
and Congressional liaison.
(b) Office o f Staff Director for Monetary and
Financial Policy is responsible for preparation of
position papers and other documents on monetary
policy issues, including issues relating to open mar
ket, discount, and reserve requirement policy; per
form ance o f Secretariat functions for the Federal
O pen M arket Com m ittee, coordination of regula
SEC T IO N 2 .—C O M P O SIT IO N A N D LO C A T IO N
tory and statistical issues closely related to mone
tary policy; liaison with the trading desk at the Fed
(a) G o v e rn o rs, C h airm a n , V ice C hairm an.
eral Reserve Bank o f New York in connection with
The Board consists of seven members appointed by
open m arket operations; liaison with Treasury or
the President, by and with the advice and consent
other agencies in the domestic financial area; coor
o f the Senate, for fourteen-year terms. The m em
d in a tio n w ith the S y stem A ccount M anager and
bers o f the B oard are req u ired by law to devote
with the Treasury on foreign exchange market oper
their entire time to the business of the Board. One
ations; Eurodollar and international banking policy
of them is designated by the President as Chairman
issues; coordination of analysis and development of
and one as V ice C h airm an , to serve as such for
options for Board consideration with regard to for
term s o f fo u r years. At m eeting s, the C hairm an
eign exchange policies and the international p ay
presides or, in his absence, the Vice Chairman pre
ments mechanism; and appropriate staff coordina
sides. In the ab sen ce o f the C hairm an and Vice
tion with other agencies in these areas.
C hairm an, the m em ber of the Board present with
The Office also reviews and coordinates statisti
the longest service acts as Chairman. The Chairman
cal and regulatory reports required by the Board of
o f the Board, subject to its supervision, is its active
banks and bank holding com panies; and performs
executive officer. The Board meets regularly and
Secretariat functions for the Depository Institutions
frequently to consider matters relating to monetary
Deregulation Committee.
and credit policies, regulatory and supervisory du
(c) O ffice o f S ta ff D irector for Federal R e
ties with w hich it has been charged by the C o n
serve Bank Activities is responsible for overseeing
gress, and administrative and other questions aris
the Division of Federal Reserve Bank Operations,
ing in the conduct of the work of the Board.
assisting the B o a rd ’s C om m ittee on Federal R e
(b) Location and business hours. The principal
serve Bank A ctivities, and coordinating the func
o ffic es of the B o ard are in the Federal R eserve
tions o f other Board Divisions that relate to Federal
B u ild in g , 20th S treet and C o n stitu tio n A venue,
Reserve Bank matters. The responsibilities of this
N .W ., Washington, D.C. 20551. The Board’s reg
office also include all Reserve Bank director mat
u la r b u sin e ss ho u rs are from 8:45 a.m . to 5:15
ters, coordination of the annual evaluation program
p.m. each weekday except Saturday; but such busi
for Federal R eserve B anks, the Federal Reserve
ness hours may be changed from time to time.
System’s program for emergency preparedness, and
representing the Board in activities pertaining to
SEC T IO N 3 .— C E N T R A L O R G A N IZ A TIO N
Bank operational matters in meetings with foreign
central banks and other United States Government
The Board’s central organization consists of the
agencies.
mem bers o f the Board and the following Offices,
Divisions, and Officials:
(d) Office o f Staff Director for Management is
responsible for the planning and coordination of
(a)
O ffice o f Board M em bers consists o f the staff operations and organization and for resource
m a n a g e m e n t, and su p e rv isio n o f the fo llo w ing
m e m b ers o f the B o ard , A ssistan ts, and Special
SEC T IO N 1.— BASIS A N D SCO PE
These Rules are issued by the Board of Gover
nors o f the Federal Reserve System (the “ Board” )
pursuant to the requirement of section 552 of Title
5 of the United States Code that each agency shall
publish in the Federal Register a description of its
central and field organization.
RULES OF ORGANIZATION
functions: Board building administration and opera
tions, Board budget and accounting activities, data
processing, personnel-related activities, Equal Em
ploym ent O pportunity, and contingency planning
operations.
(e) O ffic e o f the S e c r e ta r y , h ead ed by the
B o ard’s Secretary, coordinates and handles items
requiring Board action, including actions under del
egated authority; prepares agenda for Board meet
ings; implements actions taken at Board meetings;
p re p a re s, circ u la te s and indexes m inutes o f the
Board; has responsibility for the B oard’s Regula
tory Im provem ent Project; provides liaison at the
staff level with the Federal A dvisory Council and
ad hoc groups o f the R eserve Banks; m akes a r
rangements for individuals and groups visiting the
Board; maintains custody of and provides reference
service to official records o f the Board; handles
correspondence and public information requests; se
cures passports and visas for official foreign travel
o f System personnel; and provides relief secretarial
and stenographic services.
(f) Legal Division, headed by the Board’s Gen
eral Counsel, advises the Board in carrying out its
statutory and regulatory responsibilities by the prep
aration o f Board decisions, regulations, rules, in
structions and legal interpretations o f statutes and
regulations adm inistered by the Board, represents
the Board in civil litigation and administrative pro
ceedings, assists other Divisions in fulfilling their
responsibilities in such areas as contracting, fiscal
agency activities, Federal Reserve Bank matters, la
bor law, personnel, supervisory enforcement mat
ters, and prepares testimony or comments on pro
posed legislation.
(g) Division o f Research and Statistics, headed
by a Director, provides the Board and the Federal
Open M arket Com m ittee with the economic anal
ysis and information needed for current operations,
for the formulation o f monetary and credit policies,
and for the exercise o f responsibilities with regard
to bank regulation; prepares, publishes, and inter
prets a variety o f statistical series in the financial
and non-financial fields; conducts basic research re
lating to the effects o f m onetary policy on e c o
nomic activity and prices, and to the effects of fi
nancial regulation on the structure and functioning
of financial markets.
(h) Division o f International F inance, headed
by a Director, provides the Board and the Federal
Open Market Committee with information and eco
nomic analysis on international questions affecting
U.S. monetary policy and the exercise of regulatory
responsibilities; conducts research in these areas;
provides staff work in connection with the supervi
sion o f foreign operations o f the Federal Reserve
S ystem , the m em bership o f the Chairm an o f the
Board on the National Advisory Council on Inter
national M onetary and Financial Policies, and the
role o f the Chairman o f the Board as U.S. A lter
nate Governor to the International Monetary Fund.
(i) Division o f Federal Reserve Bank O pera
tions, headed by a Director, advises and assists the
Board with respect to matters concerning the plan
ning and program s for operations o f the Federal
Reserve Banks. It provides an appraisal of Reserve
Bank building programs; provides analysis and rec
o m m en dation s for B oard policy in the paym ents
mechanism area; provides an appraisal of Reserve
Bank c o m m u n ic atio n and au to m atio n plans and
proposals; and maintains liaison with various inter
ested parties on payments mechanism matters.
T he D iv isio n is resp o n sib le for finan cial e x
aminations and operational reviews of Federal R e
serve Bank functions including: protection, fiscal
agency, open m arket, checking processing, data
pro cessing , com m u nication s, coin and currency,
audit, and various staff functions. The Division ad
ministers an expense control and budgeting system
for collection and analysis o f budget and expense
data; prescribes accounting principles, standards
and related requirements to be followed by the Re
serve Banks; and provides certain centralized finan
cial accounting services. The Division also m ain
tains liaiso n w ith the T re asu ry and other
G overnm ent agencies and with various interested
parties on matters related to Reserve Bank opera
tion within its area of responsibility. The Division
also co o rd in a te s the printing and distribution o f
Federal R eserve notes and is jo in tly responsible
with the Bureau of the Mint for the production and
distribution of coin.
(j) Division o f Banking Supervision and Regu
lation, headed by a Director, coordinates the bank
supervisory functions o f the System and evaluates
the examination procedures of the Reserve Banks;
exercises general supervision o f the commercial and
fiduciary activities of State member banks; adminis
ters the supervisory features of laws and regulations
relating to affiliates and bank holding companies,
su p e rv ises vario us foreig n b an king activ ities o f
m em ber banks and foreign banking and financing
corporations; administers the public disclosure pro
visions of the Securities Exchange Act of 1934, as
a m e n d e d , in th e ir a p p lic a tio n to S tate m em ber
banks, and the provisions of the Act giving respon
RULES OF ORGANIZATION
sibility to the Board for regulating security credit
transactions; administers the pertinent provisions of
the Financial Institutions Act of 1966, and amend
ments contained in the Financial Institutions Regu
la to ry and In te re s t R ate C o n tro l A ct o f 1978 in
their application to State member banks, bank hold
ing c o m p a n ie s, no nb ank sub sidiaries, E dge Act
Corporations, foreign banks with domestic opera
tions and persons related to such institutions; moni
tors the Currency and Foreign Transactions Report
ing A ct, in its application to State member banks;
processes and presents to the B oard applications
filed pursuant to the Bank Holding Com pany Act
o f 1956, as am en d ed , and the B ank M erg er Act
and various other applications submitted under the
provisions o f the Federal R eserve Act or related
statutes; and advises the Board regarding develop
ments in banking and bank supervisory policies and
procedures.
(k) Division o f Consumer and Community Af
fairs, headed by a Director, implements consumer
affairs legislation for which the Board has responsi
bility. Its functions include drafting regulations and
interpretations pursuant to the Truth in Lending Act
(as am ended), the Federal Trade Commission Im
provements Act, the Equal Credit Opportunity Act
(as amended), the Home Mortgage Disclosure Act,
the Fair Credit Billing Act, the Consumer Leasing
Act and the Electronic Funds Transfer Act, for fi
nancial institutions and other firms engaged in con
sum er credit and leasing activities. The division
also adm inisters, the B oard’s consumer complaint
handling system, and monitors enforcement activi
ties with regard to state member banks. The legisla
tion enforced includes the acts already mentioned
abo v e as w ell as the C o m m u nity R ein vestm en t,
Fair Credit Reporting, Fair Debt Collection Prac
tices, Fair Housing, Flood Disaster Protection, and
Real Estate Settlement Procedures Acts and Regula
tion Q , Interest on Deposits.
(1) Division o f Personnel, headed by a Director,
is responsible for the development and implementa
tion o f Board personnel policies and programs, and
a d v ise s and as sists the B o a rd and the R eserv e
Banks on personnel matters pertaining to the Fed
eral Reserve Banks.
(m) Division o f Support Services, headed by a
Director, is responsible for duplication and distribu
tion of Board publications, press releases, speeches
and testim ony; space m anagem ent; printing, con
tracting, and supply services; communications; food
service management; operation and maintenance of
electrical and m echan ical system s; building and
§§ 3 -4
grounds maintenance; personnel and building secu
rity.
(n) O ffic e o f th e C o n tr o lle r , h ea d ed by the
B oard’s Controller, is responsible for maintaining
an effective internal financial management system,
including budgeting, accounting, receiving and dis
bursing Board funds, financial reporting, and inter
nal auditing and operations reviews.
(o)
D ivision o f D ata P rocessing, headed by a
Director, supports the Board’s organization through
the development, operation, and maintenance of in
form ation processing system s. A ctivities include
systems and mathematical statistical analysis, com
puter programming, equipment operation, data and
production control, advanced planning and imple
mentation o f computer systems and communication
n etw o rk s. T he D iv isio n d ev e lo p s, co llects, and
processes statistical information on banking devel
opm ents and on the condition of Federal Reserve
Banks and m em b er banks; and designs and p ro
duces graphics used in economic analysis and infor
mation presentation.
(p) O ther personnel. The Board does not em
ploy administrative law judges or hearing officers
as regular members of its staff; but, in accordance
with applicable provisions of law and in individual
cases as the need may arise, the Board obtains and
utilizes administrative law judges and hearing offi
cers, whose functions in such capacity are appropri
ately separated, as required by law, from investiga
tive and prosecuting functions of the staff.
SEC T IO N 4 . — FIE L D O R G A N IZ A TIO N
(a)
Federal Reserve Banks. The United States
is divided into twelve Federal Reserve districts. In
one city in each Federal Reserve district there is lo
cated a Federal Reserve Bank; in ten o f the districts
there are one or more branches o f the Federal Re
serve B ank in o ther cities; and in some districts
there are offices or facilities with specialized func
tions. Each Federal Reserve Bank is a separate le
gal entity, created pursuant to the Federal Reserve
Act and operating under the general supervision of
the Board. The locations o f the twelve Federal Re
serve Banks and the twenty-five branches and the
b o u n d a rie s o f the F ed era l R e serv e d istric t and
branch territories are shown in the Appendix. Each
Federal Reserve Bank, in addition to its other du
ties, carries out local functions for the Board pursu
ant to instructions o f the Board, and in many mat
ters acts as the B oard’s field representative in the
B an k ’s district. Each Reserve Bank assists in the
regional adm inistration o f the B oard’s regulations
§§ 4-5
RULES OF ORGANIZATION
and p o licie s, keeps the Board inform ed o f local
c o n d itio n s , and rec o m m e n d s such ac tio n s as it
thinks appropriate in particular cases. In general,
persons co ncerned w ith Federal R eserve 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 fol
low this procedure.
(b)
Federal Reserve A gents. Each Federal Re
serve Bank has nine directors, three of whom are
appointed by the Board. One o f the directors ap
pointed by the Board is designated by the Board as
C hairm an o f the B oard o f D irectors o f the Bank
and as F ed era l R e serv e A g en t. He acts as the
Board’s official representative and maintains a local
office of the Board on the premises of the Federal
Reserve Bank.
6
SEC T IO N 5 .— D E LE G A T IO N S O F
A U T H O R IT Y
The Board does not delegate any of its functions
relating to rule-making or pertaining principally to
monetary or credit policies or involving any ques
tions o f general policy. However, the Board dele
gates certain o f its supervisory and other functions
prescribed by statute or regulations of the Board to
its members or employees or to the Federal Reserve
Banks as provided in its Rules Regarding Delega
tion o f A uthority (12 CFR 265). In addition, the
Board delegates to the Federal Reserve Banks cer
tain functions not provided for by statute or regula
tions o f the B oard, including authority to extend
the time within which certain transactions may be
consummated.
APPENDIX
FEDERAL RESERVE BANK
ADDRESS
BOSTON*
600 Atlantic Avenue, Boston, Massachusetts 02106
NEW 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
PHILADELPHIA
100 North Sixth Street (P.O. Box 66), Philadelphia, Pennsylvania 19105
CLEV ELAND*
Cincinnati Branch
Pittsburgh Branch
1455 East Sixth Street (P.O. Box 6387), Cleveland, Ohio 44101
150 East Fourth Street, (P.O. Box 999), Cincinnati, Ohio 45201
717 Grant Street (P.O . Box 867), Pittsburgh, Pennsylvania 15230
RICHM OND*
Baltimore Branch
Charlotte Branch
Culpeper Communications
and Records Center
701 East Byrd Street (P.O. Box 27622), Richmond, Virginia 23219
114-120 East Lexington Street (P.O. Box 1378), Baltimore. Maryland 21203
401 South Tryon Street (P.O. Box 30248), Charlotte, North Carolina 28230
ATLANTA
Birmingham Branch
Jacksonville Branch
Miami Branch
Nashville Branch
New Orleans Branch
104 Marietta Street, N .W ., Atlanta, Georgia 30303 (P.O. Box 1731, Atlanta, Georgia 30301)
1801 Fifth Avenue, North (P.O. Box 10447), Birmingham, Alabama 35202
515 Julia Street, Jacksonville, Florida 32231
3770 S.W . 8th Street, Coral Gables, Florida 33178 (P.O. Box 52087, Miami, Florida 33152)
301 Eighth Avenue, North, Nashville, Tennessee 37203
525 St. Charles Avenue (P.O. Box 61630), New Orleans, Louisiana 70161
CHICAGO*
Detroit Branch
230 South LaSalle Street (P.O. Box 834), Chicago, Illinois 60690
160 Fort Street, West (P.O. Box 1059), Detroit, Michigan 48231
ST. LOUIS
Little Rock Branch
Louisville Branch
Memphis Branch
411
325
410
200
M INNEAPOLIS
Helena Branch
250 Marquette Avenue, Minneapolis, Minnesota 55480
400 North Park Avenue, Helena, Montana 59601
KANSAS CITY
Denver Branch
Oklahom a City Branch
O m aha Branch
925 Grand Avenue, Kansas City, Missouri 64198
1020 16th Street (P.O . Box 5228, Terminal Annex), Denver Colorado 80217
226 Dean A. M cGee Ave. (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 FRANCISCO
Los Angeles Branch
Portland Branch
Salt Lake City Branch
Seattle Branch
400 Sansome Street (P.O . Box 7702), San Francisco, California 94120
409 West Olympic Boulevard (P.O. Box 2077), Los Angeles, California 90051
915 S.W . Stark Street (P.O. Box 3436), Portland, Oregon 97208
120 South State Street (P.O. Box 30780), Salt Lake City, Utah 84130
1015 Second Avenue (P.O. Box 3567), Seattle, Washington 98124
P .O . Drawer 20, Culpeper, Virginia 22701
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 32710), Louisville, Kentucky 40232
North Main Street (P.O. Box 407), Memphis, Tennessee 38101
* A dditional offices o f these B anks are located at Lew iston, M aine 04240; W indsor Locks, C onnecticut 06096; Cranford. New Jersey 07016;
Jericho, N ew York 11753; Utica at Oriskany, N ew York 13424; Colum bus, Ohio 43216; Colum bia, South Carolina 29210; Charleston. W est Vir
ginia 25311; Des M oines, Iowa 50306; Indianapolis, Indiana 46204; and M ilwaukee, Wisconsin 53202.
7
Boundaries o f Federal Reserve Districts and their Branch Territories
Minneapolis <5^
D e troit
C h ic a g o
Omaha1
I S a if L a k e C ity
*»cisco
Kansas City
\g
{Oklahoma City*
O'
ly fcu iV>g
R ic h m e
. L o'nisyiU t
1. L o u t s
NtskviHj
W ' ot' e,
Angeles
jBCkSO"
LEGEND
Boundaries of
Federal Reserve Districts
Q
Board o f Governors o f the
Federal Reserve System
•
Federal Reserve Branch
Cities
Boundaries of
Federal Reserve Branch
Territories
(i)
Federal Reserve Bank Cities
•
Federal Reserve Bank
Facility
a
RULES OF PROCEDURE
As amended effective February 1, 1981
SEC T IO N 2 6 2 .1 — BASIS A N D SCO PE
This Part is issued pursuant to section 552 of Ti
tle 5 o f the United States Code, which requires that
every agency shall publish in the Federal Register
statem en ts o f the general course and m ethod by
which its functions are channeled and determined,
rules of procedure, and descriptions of forms avail
able or the places at which forms may be obtained.
SEC TIO N 2 6 2 .2 — P R O C E D U R E FO R
R E G U L A T IO N S
(a) N otice. Notices o f proposed regulations of
the Board o f Governors of the Federal Reserve Sys
tem (the “ Board” ) or amendments thereto are pub
lished in the Federal Register, except as specified
in paragraph (e) o f this section or otherw ise ex
cepted by law. Such notices include a statement of
the term s o f the proposed regulations or am end
ments and a description of the subjects and issues
involved; but the giving o f such notices does not
necessarily indicate the B o ard’s final approval of
any feature of any such proposal. The notices also
include a reference to the authority for the proposed
regulations or amendments and a statement o f the
time, place, and nature of 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 B oard, W ashington,
D .C. 20551, with copies to the appropriate Federal
Reserve Bank. The locations o f the twelve Federal
Reserve Banks and the boundaries o f the Federal
Reserve districts are shown in the Appendix to the
Board’s Rules of 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 of 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 of
the B oard’s staff, in collaboration with other divi
sions, prepares drafts o f proposed regulations or
am e n d m e n ts, and the s ta ff sub m its them to the
Board. The Board takes such action as it deems ap
propriate in the public interest. Any other docu
ments that may be necessary to carry out any deci
sion by the B o ard in the m a tte r are u sually
prepared by the Legal D ivision, in collaboration
with the other divisions o f the staff.
(d) Effective dates. Any substantive regulation
or amendment 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) of
this section or as otherwise excepted by law.
(e) Exceptions as to notice or effective date. In
certain situations, notice and public participation
with respect to proposed regulations may be im
practicable, unnecessary, contrary to the public in
terest, or otherwise not required in the public inter
est, 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 reasons in such
cases usually are that such notice, public participa
tion, or deferment of effective date would prevent
the action from becoming effective as promptly as
necessary in the public interest, would permit spec
ulators or others to reap unfair profits or to inter
fere with the B oard’s actions taken with a view to
accom m odating com m erce and business and with
regard to their bearing upon the general credit situ
ation o f the country, would provoke other conse
quences contrary to the public interest, would un
rea so n ab ly interfere w ith the B o a rd ’s necessary
functions with respect to management or personnel,
would not aid the persons affected, or would other
wise serve no useful purpose. The following may
be m en tio ned as som e exam ples o f situations in
which advance notice or deferred effective date, or
both, will ordinarily be omitted in the public inter
est: The review and determination of discount rates
established by Federal Reserve Banks, and changes
in general requirements regarding reserves of mem
ber banks, maximum interest rates on time and sav
ings deposits, or credit for purchasing or carrying
securities.
SEC T IO N 2 6 2 .3 — A PPL IC A TIO N S
(a)
Forms. Any application, request, or petition
(hereafter referred to as “ application” ) for the ap
§ 262.3
RULES OF PROCEDURE
proval, authority, determination, or permission of
the Board with respect to any action for which such
approval, authority, determination, or permission is
required by law or regulation of the Board (includ
ing actions authorized to be taken by a Federal Re
serve Bank or others on behalf o f the Board pursu
ant to authority delegated u nd er Part 265 o f this
chapter) shall be submitted in accordance with the
p ertin ent form , if any, prescribed by the Board.
Copies o f any such form and details regarding in
form ation to be included therein may be obtained
from any Federal Reserve Bank. Any application
for which no form is prescribed should be signed
by the person making 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 ac
cess to, or copying of, records of the Board should
be su b m itte d as p ro v id e d in § 2 6 1 .4 (d ) o f this
chapter.
(b)
Notice o f applications. (1) In the case of ap
plications,
(i) for m em bership in the Federal Reserve
System where such membership would confer Fed
eral deposit insurance on a bank,
(ii) by a State member bank for the estab
lishment of a domestic branch or other facility that
would be authorized to receive deposits,
(iii) by a State member bank for the reloca
tion of a domestic branch office,
(iv) for m erger, consolidation, or acquisi
tion o f assets or assumption of liabilities, if the ac
quiring, assuming, or resulting bank is to be a State
member bank,
(v) to become a bank holding company, and
(vi) by a bank holding company to acquire
ownership or control of shares or assets of a bank,
o r to m e rg e or c o n so lid a te w ith any o th er bank
holding company,
the ap p lica n t shall cause to be published on the
sam e d ay o f e a c h o f tw o c o n s e c u tiv e w eeks a
notice in the form prescribed by the Board. The
notice shall be placed in the classified advertising
legal notices section of the newspaper, and the first
n otice m ay ap pear no m ore than ninety calendar
days prior to acceptance by the Reserve Bank of
the application. The notice must provide an oppor
tunity for the public to give written com m ent on
the application to the appropriate Federal Reserve
Bank for at least thirty days after the date of publi
cation of the first notice. In addition, between pub
lication o f the first and second notice, the applicant
10
shall submit to the appropriate Reserve Bank for
acceptance copies of the application, together with
a copy o f the notice as it appeared in the newspa
per. Such notice shall be published in a newspaper
o f g e n e ra l c irc u la tio n in (A) the co m m u n ity in
which the head office o f the bank is or is to be lo
cated in the case of an application for membership
that would confer deposit insurance, (B) the com
munity or communities in which the head office of
the bank and the proposed branch or other facility
(other than an electronic funds transfer facility) are
located in the case o f an application for the estab
lishment of a domestic branch or other facility that
w ould be authorized to receive deposits, (C) the
com m unity or com munities in which the head of
fice o f the bank, the office to be closed, and the
office to be opened are located in the case of an
application for the relocation of a domestic branch
office, (D) the community or communities in which
the head office o f each o f the banks to be party to
the merger, consolidation, or acquisition of assets
or assumption of liabilities are located in the case
o f an application by a bank for merger, consolida
tion, or acquisition of assets or assumption of lia
bilities, or (E) the com m unity or com m unities in
w hich the head o ffices o f the largest subsidiary
bank , if any , or an applicant and o f each bank,
shares of which are to be directly or indirectly ac
quired, are located in the case of applications under
section 3 of the Bank Holding Company Act.
(2)
In addition to the foregoing notice, an ap
plicant, in the case o f an application to relocate a
domestic branch office or other facility that would
be authorized to receive deposits, shall post in a
conspicuous public place in the lobby of the office
to be closed a notice containing the inform ation
specified in section 262.3(b)(1). Such notice should
be posted on the date o f the first notice required by
section 262.3(b)(1).
(c)
F ilin g o f a p p lic a tio n s . Any ap p lica tio n
should be sent to the Federal Reserve Bank of the
district in which the head office o f the parent bank
ing o rg an iz atio n is lo cated , except as otherw ise
specified on application forms, and that Bank will
forward it to the Board when appropriate; however,
in the case o f a foreign bank holding company, as
defined in section 225.4(g) of this chapter, applica
tions shall be sent to the Federal Reserve Bank of
the d istric t in w h ich the o p era tio n s o f the
organization’s subsidiary banks are principally con
ducted. In the case o f a foreign banking organiza
tion that is not a bank holding com pany but that
has one or more branches, agencies, or commercial
RULES OF PROCEDURE
lending companies in any State of the United States
or the District o f C olum bia, applications shall be
sent to the Federal Reserve Bank of the district in
w h ich the o rg a n iz a tio n ’s bank in g assets are the
largest. Applications of a member bank subsidiary,
however, should be filed with the Reserve Bank of
the district in which the member bank is located.
(d) Analysis by staff. In every case, the Reserve
Bank m akes such investigation as may be neces
sary, and, except when acting pursuant to delegated
authority, reports the relevant facts, with its recom
m endation, to the Board. In the light of consider
ation of all relevant matter presented or ascertained,
the Board’s staff prepares and submits to the Board
comments on the subject.
(e) Submission o f com m ents and requests for
hearing. The Board will consider a comment or re
q uest for h earing w ith resp ect to an application
only if it is in writing and is sent to the Secretary
o f the B oard or the appropriate Federal Reserve
Bank on or before the date prescribed in the F ed
era l R e g iste r notice with respect to applications
filed u nd er sections 3 or 4 o f the Bank Holding
Company Act or, in the case of other applications,
the date specified in the newspaper notice with re
spect to such applications, or where no such date is
prescribed, on or before the thirtieth day after the
date such notice is first published. Similarly, the
Board will co nsid er com m ents on an application
from the Attorney General or a banking supervisory
authority to which notification o f receipt o f an ap
plication has been given, only if such comment is
received by the Secretary of the Board within thirty
days of the date o f the letter giving such notifica
tion. Any comment on an application that requests
a hearing must include a statement of why a written
presentation would not suffice in lieu of a hearing,
identifying specifically any questions o f fact that
are in dispute and sum m arizing the evidence that
w o u ld be p re se n te d at a h earin g . In every case
where a timely com m ent or request for hearing is
received as provided herein, a copy o f such com
ment or request shall be forwarded promptly to the
applicant for its response. The Board will consider
the applicant’s response only if it is in writing and
sent to the Secretary of the Board on or before the
tenth day after the date of the letter by which it is
fo rw ard e d to the ap p lica n t. A t the sam e tim e it
transm its its response to the Board, the applicant
should transmit a copy of its response to the person
or supervisory authority making such com ment or
requesting a hearing. Notwithstanding the forego
ing, the Board may, in its sole discretion and with
§ 262.3
out notifying the parties, take into consideration the
substance of comments with respect to an applica
tion, (but not requests for hearing) that are not re
ceived within the time periods provided herein.
(f) A ction on a p p lica tio n s. The Board takes
such action as it deems appropriate in the public in
te re st. Such d o cu m en ts as m ay be n ecessary 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.
(g) Notice o f action. Prompt notice is given to
the applicant of the granting or denial in whole or
in part o f any application. In the case of a denial,
except in affirming a prior denial or where the de
nial is self-explanatory, such notice is accompanied
by a simple statement of the grounds for such ac
tion.
(h) A ctio n at B o a r d ’s in itia tiv e . W hen the
Board, without receiving an application, takes ac
tion with respect to any matter as to which oppor
tu n ity fo r h ea rin g is not re q u ire d by statute or
Board regulation, similar procedure is followed, in
cluding investigations, reports, and recom m enda
tio n s by the B o a rd ’s sta ff and by the R eserve
Banks, where appropriate.
(i) General procedures for bank holding com
pany and merger applications. In addition to pro
cedures applicable under other provisions of this
P art, the follo w ing proced ures are applicable in
connection with the Board’s consideration of appli
cations under sections 3 and 4 of the Bank Holding
C o m p an y A ct o f 1956 (12 U .S .C . § 1842 and
§ 1843), hereafter referred to as “ section 3 appli
cations” or “ section 4 applications” , and of appli
cations under section 18(c) of the Federal Deposit
Insurance Act (12 U .S.C. § 1823), hereafter called
“ merger applications.” Except as otherwise indica
ted, the following procedures apply to all such appli
cations.
(1) The B oard issu es each w eek a list that
identifies section 3 and section 4 and merger appli
cations received and acted upon during the preced
ing week by the Board or the Reserve Banks pursu
ant to delegated authority. Notice of receipt of all
section 3 applications and o f section 4(c)(8) appli
cations 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 pur
pose of taking evidence is desirable, the Board is
§ 262.3
RULES OF PROCEDURE
m ated before the thirtieth calendar day following
sues an order for such a hearing, and notice thereof
the date o f such O rder, except as the Board may
is published in the Federal Register. Any such for
mal hearing is conducted by an administrative law
otherw ise determ ine pursuant to em ergency situa
ju d g e in a c c o rd a n c e w ith the B o a rd ’s R ules o f
tions as to which the Act permits consummation at
Practice for Hearings (Part 263 of this chapter) ex
earlier dates, (iii) Each Order or each letter of noti
cept that, unless otherwise ordered by the Board,
fication approving an application also includes, as a
such a hearing is public.
condition of approval, a requirement that the tran
sa ctio n a p p ro v e d sh all be c o n su m m a te d w ithin
(3) In any case in which a formal hearing is
three m onths and, in the case o f acquisition by a
not ordered by the Board, the Board may afford the
h olding com pany o f stock o f a new ly organized
applicant and other properly interested persons (in
bank, a requirement that such bank shall be opened
cluding Governmental agencies) an opportunity to
for business within six m onths, but such periods
present views orally before the Board or its desig
may be extended for good cause by the Board (or
nated representative. Unless otherwise ordered by
the Board, any such oral presentation is public and
by the appropriate Federal Reserve Bank where au
notice of such public proceeding is published in the
thority to grant such extensions is delegated to the
Federal Register.
Reserve Bank).
(4) Each action taken by the Board on an ap
(2) For special rules governing procedures for
plication is embodied in an Order that indicates the
section 4(c)(8) applications, refer to § 225.4(a)-(c)
votes o f mem bers o f the Board. The O rder either
of this chapter.
(3) For special rules governing procedures for
contains reasons for the Board’s action (i.e., an Ex
section 4(c)(9) applications, refer to § 225.4(g) of
panded Order) or is accompanied by a Statement of
the reasons for the B oard’s action. Both the Order
this chapter.
(4) For special rules governing procedures for
and any accom panying Statem ent are released to
section 4(c)(12) applications, refer to § 225.4(d) of
the press. Each Order accompanied by a Statement
and any O rder o f general interest, together with a
this chapter.
(k) R econsideration o f certain Board actions.
list of other O rders, are published in the Federal
The Board may reconsider any action taken by it
Reserve B u l l e t i n . Action by a Reserve Bank un
on an application upon receipt by the Secretary of
der delegated authority as provided for under Part
the Board o f a written request for reconsideration
265 o f this chapter is reflected in a letter o f notifi
from any party to such application, on or before the
cation to the applicant.
fifteenth day after the effective date of the Board’s
(5) U nless the Board shall otherw ise direct,
actio n . Such req u est should specify the reasons
each section 3 and section 4 and merger application
why the B oard should reconsider its action, and
is made available for inspection by the public ex
present relevant facts that, for good cause shown,
cept for portions thereof as to which the Board de
were not previously presented to the Board. Within
termines that nondisclosure is warranted under sec
ten days o f receipt o f such a request, the General
tion 552(d) of Title 5 o f the United States Code.
(j) Special procedures for certain applications.
Counsel, acting pursuant to. delegated authority (12
The following types of applications require proce
C .F .R . 265.2 (b) (7)), shall determine whether or
n o t the re q u e st for re c o n sid e ra tio n sh ou ld be
dures exclusive of, or in addition to, those described
granted, and shall notify all parties to the applica
in paragraphs (i)( 1)—(5) of this section.
(1)
Special rules pertaining to section 3 andtio n orally by te le p h o n e o f this d eterm in a tio n
w ithin ten d ay s. Such n o tific atio n will be c o n
merger applications follows: (i) Each Order of the
firmed promptly in writing. In the exercise of this
Board and each letter o f notification by a Reserve
authority, the General Counsel shall confer with the
Bank acting pursuant to delegated authority approv
Directors o f other interested Divisions of the Board
ing a section 3 application includes, pursuant to the
or their designees. Notwithstanding the foregoing,
Act approved July 1, 1966 (12 U .S.C . § 1849(b)),
the Board may, on its own motion if it deems re
a requirement that the transaction approval shall not
consideration appropriate, elect to reconsider its ac
be consum m ated before the thirtieth calendar day
tion with respect to any application, and the parties
following the date o f such Order, (ii) Each Order
to such application shall be notified by the Secre
o f the B oard approving a m erger application in
cludes, pursuant to the Act approved February 21,
tary of the Board of its election as provided above.
1966 (12 U .S .C . § 1 8 28(c)(l)(6)), a requirement
If it is determined that the Board should reconsider
that the transaction approved shall not be consum
its action with respect to an application, such action
RULES OF PROCEDURE
§§ 262.3-262.6
will be stayed and will not be final until the Board
which a formal hearing is required by law or is or
dered by the B oard, the procedure is set forth in
has acted on the application upon reconsideration.
Part 263 of this chapter, entitled ‘ ‘Rules of Practice
If appropriate, notice of reconsideration of an appli
cation will be published prom ptly in the F ederal
for H earings.”
Register.
(1)
W aiver. The Board, or the officer or Re
S E C T IO N 2 6 2 .5 — A PP E A R A N C E A N D
serve Bank authorized to approve an application,
P R A C T IC E
may waive or modify any procedural requirements
for that application prescribed or cited in this section
Appearance and practice before the Board in all
and may excuse any failure to com ply with them
matters are governed by § 263.3 of this chapter.
upon a finding that immediate action on the applica
tion is necessary to prevent the probable failure of a
SEC T IO N 2 6 2 .6 — FORM S
bank or company or that an emergency exists requir
ing expeditious action.
Necessary forms to be used in connection with
applications and other matters are available at the
S E C T IO N 2 6 2 .4 — A D JU D IC A T IO N W ITH
Federal R eserve Banks. A list o f all such forms,
F O R M A L H E A R IN G
which is reviewed and revised periodically, may be
obtained from any Federal Reserve Bank.
In connection with adjudication with respect to
13
@FedFRASER