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federal
Reser ve Ba n k
DALLAS, T E X A S
of
Dallas
75222
Circular No. 81-9
January 14, 1981
RULES OF PROCEDURES
Policy Statem ent Relating to the Handling of Protested Applications
and
Technical Amendments Concerning Publication Requirements
of Application Notices
TO ALL BANKS, BANK HOLDING COMPANIES
AND OTHERS CONCERNED IN THE
ELEVENTH FEDERAL RESERVE DISTRICT:
The Board of Governors of the Federal Reserve System has
adopted a policy statem ent which outlines procedures for the handling of
protested applications to expand bank holding companies, merge financial
institutions and for certain other applications which require the Board's
approval. The statem ent is divided into three categories:
1)
2)
3)
Notice of Applications
Timeliness of Comments
Public Meetings
The policy statem ent applies to applications for which notice is published
on or after February 1, 1981.
In this same action, the Board adopted technical amendments
to its Rules of Procedures which, in order to improve the effectiveness
of newspaper notices of applications, require the use of a standardized
form of notice, establish uniformity in the placement of notices and set
a time limit on the filing of an application after the first notice is
published. Also, these amendments will apply to all applications for which
notice is published on or after February 1, 1981.
Enclosed is a copy of the Board's notices as published in the
Federal Register. Also enclosed is a copy of the technical amendments
to Rules of Procedures to be filed in your Regulations Binder. Please
destroy the slipsheet dated October 1979. The policy statem ent will not
be submitted in any other form, so it is suggested that you retain this
circular for future reference.
B a n k s a n d o t h e r s a re e n c o u r a g e d to u s e th e fo llo w in g in c o m in g W A T S n u m b e r s in c o n t a c t in g th is Ban k:
1-800-442 -714 0 ( in tr a s t a te ) a n d 1-800-527 -920 0 (in te r s ta te ). F o r c a lls p la c e d lo cally , p l e a s e u s e 651 plus the
e x te n s io n r e fe rre d to above.
Thispublication was digitized and made available by the FederalReserve Bank ofDallas' Historical Library (FedHistory@dal.frb.org)
- 2 -
Any questions concerning the contents of this circular should
be addressed to Robert D. Hankins, Director of Applications, of our
Holding Company Supervision Department, Ext. 6120.
Additional copies of this material will be made available upon
request to the Bank and Public Information Department of this Bank,
Ext. 6266.
Sincerely yours,
William H. Wallace
First Vice President
Enclosures
NOTICE OF APPLICATION FOR
[BANK HOLDING COMPANY] or
[ACQUISITION OF BANK BY A
BANK HOLDING COMPANY]
or [MERGER OF BANK HOLDING COMPANIES]
Notice is hereby given by the A pplicant (name and lo c a tio n of head
o f f i c e ) t h a t i t w ill apply to the Federal Reserve Board pursuant to s e c tio n 3
o f the Bank Holding Company Act fo r [a bank holding company] or [ a c q u i s i t i o n
of sh ares of a bank]
Applicant
or
[merger with
another
bank
holding
company].
in te n d s to acquire ( number and p e rc en t o f o u ts ta n d in g ) shares
The
of
(name of bank or company and l o c a t i o n of head o f f i c e ) .
The public is in v ite d to submit w r i t t e n comments on t h i s a p p l i c a t i o n
to the Federal Reserve Board at the Federal Reserve Bank of D a lla s , Holding
Company Supervision Department, S ta tio n K, D a lla s, Texas
period on t h i s a p p l i c a t i o n will
days from d a te of f i r s t
Federal
75222.
The comment
not end before (date-must be no l e s s than 30
n o t i c e ).
Call
Bettye Ramsey, 214-651-6488,
Reserve Bank of D a l l a s , to find out i f you have a d d itio n a l
at
the
time for
subm itting comments on t h i s a p p l i c a t i o n or i f you need more information about
s ubm itting comments.
The Federal Reserve will
re q u e s ts f o r a public meeting or formal
co nsider comments, including
hearing on the a p p l i c a t i o n ,
are received by the Federal Reserve Bank during the comment period.
i f they
NOTICE OF APPLICATION FOR
[MEMBERSHIP IN THE FEDERAL RESERVE SYSTEM]
or [ESTABLISHMENT OF RELOCATION OF BRANCH]
Notice i s hereby given by the Applicant ( name and l o c a t i o n of head
office)
that
it
Federal
Reserve
b ra n c h ) .
[The
w ill
Act
apply
for
a p p lic a n t
to the
Federal
(membership,
proposes
to
Reserve
relocation
engage
in
Board
or
pursuant
to
e sta b lish m e n t
busin ess
at
the
the
or
following
l o c a t i o n : ( s t r e e t addresses of branches and d e p o s it f a c i l i t i e s ) . ]
The public is in v ite d to submit w r itt e n comments on t h i s a p p lic a t io n
to th e Federal Reserve Board at
Company
the Federal Reserve Bank o f D a lla s, Holding
Supervision Department, S ta tio n K, D a lla s , Texas
75222. The comment
period on t h i s a p p l i c a t i o n will end on (date-must be no l e s s than 30 days from
th e
date
of
th e
first
notice).
Call
Bettye
Ramsey,
214-651-6488,
at
the
Federal Reserve Bank o f D a lla s , i f you need more information about submitting
comnents.
The Federal Reserve will c onside r comments, including req uests for
a public meeting or formal hearing on the a p p l i c a t i o n , i f they are received by
the Reserve Bank during the comment period.
NOTICE OF APPLICATION FOR MERGER OF BANKS
[AND ESTABLISHMENT OF BRANCHES]
Notice is hereby given by th e A pplicant (name and l o c a t i o n of head
o f f i c e ) t h a t i t will
apply to the Federal Reserve Board pursuant to the Bank
Merger Act t o merge with ( name and l o c a t i o n o f head o f f i c e of bank) ,
th e re b y to e s t a b l i s h branches.
at
th e
fo llowing
locations:
[and
The Applicant proposes to engage in business
(street
a d dre sses
of
branches
and
d e p o s it
f a c i l i t i e s o f bank t o be merged) . ]
The public is in v ite d to submit w ritt e n comments on t h i s a p p lic a t io n
to th e Federal Reserve Board a t the Federal Reserve Bank of D allas,
Company Supervision Department, S ta tio n K, D a lla s , Texas
period on t h i s a p p l i c a t i o n will
Holding
75222. The comment
end (date-must be no l e s s than t h i r t y days
from t h e d a te o f th e f i r s t n o t i c e ) .
Call B ettye Ramsey, 214-651-6488, a t the
Federal Reserve Bank o f D a lla s , i f you need more information about subm itting
comments.
The Federal Reserve will c o n sid e r comments, including requests for
a p u b lic meeting or formal
during the comnent period.
hearing on the a p p l i c a t i o n ,
i f they are re ceived
Federal Register / Vol. 45, No. 240 / Thursday, December 11, 1980 / Rides and Regulations
81541
12 CFR Part 262
[Rules of Procedure, Docket No. R-0334]
Rules of Procedure; Notice of
Applications; Timeliness of Comments;
Informal Hearings
Board of Governors of the
Federal Reserve System.
ACTION: Statement of Policy.
AGENCY:
SUMMARY: This
Statement outlines steps
taken by the Board to improve the
effectiveness of notices of applications
required by a company or bank for
deposit-taking facilities under the Rules
of Procedure. The Statement also
emphasizes the Board’s strict
observance of its rules regarding
timeliness of comments and requests for
hearing on these applications. Finally,
the Statement provides guidelines for
holding informal hearings in the form of
public meetings on protested
applications, particularly those opposed
on the basis of an applicant’s
Community Reinvestment Act record.
e f f e c t iv e d a t e : This Statement will
apply to applications for which notice is
published on or after February 1,1981.
FOR FURTHER INFORMATION CONTACT
Robert E. Mannion, Deputy General
Counsel, (202/452-3274) or Bronwen
81542
Federal Register / Vol. 45, No. 240 / Thursday, December 11. 1980 / Rules and Regulations
Mason, Senior Attorney, (202/452-3564),
Board of Governors of the Federal
Reserve System, Washington, D.C.
20551.
SUPPLEMENTARY INFORMATION: In 12
CFR Part 262. S5 262.7 through 262.24 are
reserved. 12 CFR Part 262 is amended by
adding new § 262.25 to read as follows:
(2) In addition, each Reserve Bank
will publish a weekly list of (i)
applications accepted as filed by the
Reserve Bank; and (ii) applications for
which newspaper notices have been
published, submitted to the Reserve
Bank for acceptance. Any person or
organization may request the list. The
Board notes that each Reserve Bank’s
list will include only applications
§§262.7—262.24 [Reserved]
accepted or submitted with that
§ 262.25 Policy statement regarding
particular Reserve Bank, and persons or
notice of applications; timeliness ol
groups should request lists bom each
comments and guidelines for public
Reserve Bank having jurisdiction over
meetings.
applications in which they may be
(a) Notice of applications. A bank or interested. Since the lists will be
company applying to the Board for a
prepared as a courtesy by the Federal
deposit-taking facility must first publish
Reserve Banks, and are not intended to
notice of its application in local
replace any formal notice required by
newspapers. This requirement, found in
statute or regulation, the Reserve Banks
§ 262.3(b)(1) of the Board's Rules of
and the Board assume no responsibility
Procedure covers applications under the
for errors or omissions.
Bank Holding Company Act and Bank
(3) With respect to applications by
Merger Act, as well as applications for
bank holding companies to engage in
membership in the Federal Reserve
nonbank activities or make acquisitions
System and for new branches of State
of nonbank firms, after the Board
member banks. Notices of these
publishes notice of these applications in
applications are published in
the Federal Register after the
newspapers of general circulation in the
applications are accepted for
communities where the applicant
processing. While these applications are
intends to do business, as well as the
not covered by the notice provisions of
community where its head office is
§ 262.3 of the Board’s Rules of
located. These notices are important in
Procedures or the provisions of the
calling the public’s attention to an
Community Reinvestment Act, the other
applicant's plans and giving the public a
provisions of this Statement will apply
chance to comment on these plans. To
to such applications. In addition, the
improve the effectiveness of the notices,
weekly lists to be prepared by Reserve
the Board is making several changes in
Banks will include certain applications
its notice procedures.
by bank holding companies for nonbank
acquisitions as they are accepted for
(1} The Board has adopted standard
processing.
forms of notice for use by applicants
that will specify the exact date on which
(b) Timeliness o f Comments. All
the comment period on the application
comments must be received by the
ends, which may not be less than thirty
Federal Reserve on or before the last
calendar days from the date of
date of the comment period specified in
publication of the first notice. The
the notice. The Board's rules allow it to
newspaper forms also provide the name
disregard comments received after the
and telephone number of a person at the comment period expires. In particular,
appropriate Reserve Bank to call to
§ 262.3(d) of the Board’s Rules of
obtain more information about
Procedure states that the Board will not
submitting comments. The Board also
consider comments on an application
publishes notice of bank holding
that are not received on nr before the
company applications for bank
expiration of the applicable comment
acquisitions in the Federal Register after period. Thus, a commenter failing to
the application is accepted for filing,
submit comments on an application
and the Reserve Bank can provide the
within the specified comment period (or
exact date in which this comment period any extension) may be precluded from
ends. (This period will not end before
participating in the consideration of the
the date indicated in the newspaper
application. In cases where a
notice, and ordinarily will end after that
commenter for good cause is unable to
date.) Comments received on or before
submit its comment within the specified
the end of the latest comment period on
comment period, § 265.2(a) (10) of the
an application will be regarded as
Board's Rules Regarding Delegation of
timely. These steps should assist
Authority (12 CFR 285.2(a)(10)) allows
interested members of the public in
the Secretary of the Board to grant
submitting timely comments that are
requests for extension of the period.
relevant to the facts the Board must
Under this provision, upon receipt of a
consider.
request prior to the expiration of the
comment period, the Secretary may
grant a brief extension upon clear
demonstration of hardship or other
meritorious reason for seeking
additional time.
(c) Public Meetings. The Board is
endorsing an experimental period during
which public meetings on protested
applications will be held in appropriate
cases, particularly those protested on
the basis of an applicant’s CRA record.
Subject to determination by the Federal
Reserve, a public meeting may be held
upon request of the applicant or a
protestant who files a timely protest; or
may be instituted by the Federal
Reserve. The purpose of the public
meetings will be to elicit information
and to clarify factual issues related to
the application. It should be noted that
the convening of public meetings is not
intended to preclude private meetings
between the parties to resolve
differences, and the Board continues to
encourage such private negotiations.
The Board has adopted the following
guidelines to be used for requesting,
arranging, and conducting public
meetings during the experimental
period;
(1) Requesting a Public Meeting. A
meeting may be requested by a person
or organization objecting to the
application during the comment period,
and by the applicant during the period
within which it must respond to
comments. In requesting a meeting, the
protestant should submit material that
meets the following criteria:
(i) It must be in writing and received
by the Reserve Bank within the
specified comment period.
(ii) It should contain a summary of the
specific matters to which the protestant
objects and the reasons for each
objection.
(iii) It should contain facts and
evidence supporting the protest,
including any financial, economic or
demographic data.
(iv) Where appropriate, it should
contain a discussion of any adverse
effects on the protestant or the
community if the application were to be
approved.
(v) It should explain why a public
meeting is needed, and why written
submissions would not suffice in lieu of
a meeting.
The protest does not have to be filed
in a legal brief or other particular format
in order for a public meeting to be
granted. The protest will be transmitted
by the Reserve Bank to the applicant,
and applicant will be allowed ten
business days to respond in writing to
the protest Certain personnel
designated by the Reserve Bank will be
available to assist any member of the
Federal Register / Vol. 45, No. 240 / Thursday, December 11, 1980 / Rules and Regulations
public regarding the types of information
generally included in protests, the
forfnat generally used by protestants,
and any other specific questions about
the procedures of the Federal Reserve
System regarding protested applications.
(Z) Arranging the Public Meeting.
Public meetings will be arranged and
presided over by a representative of the
Federal Reserve ("Presiding Officer''). In
determining a time and place for the
public meeting to be held, the Presiding
Officer should take into account such
factors as convenience to the parties,
the number of people expected to attend
the meeting, access to public
transportation and possible after-hours
security problems. The following time
periods will be used as guides in
arranging the public meeting:
(i) A public meeting will normally be
scheduled no earlier than 10 days and
no later than 21 days from the end of the
comment period. The Presiding Officer
will arrange the meeting within these
general time frames to accommodate the
schedules of the parties where possible.
(ii) The Presiding Officer will notify
the applicant and protestant(s) in
writing of the date, time and location of
the meeting as soon as possible after it
is scheduled.
(iii) At least 7 calendar days prior to
the meeting the applicant and
protestant(s) should notify the Presiding
Officer of the names of all persons
wishing to speak on the merits of the
application at the public meeting. If time
permits, as many of these persons as
possible will be authorized by the
Presiding Officer to speak.
(iv) Two copies of any exhibits to be
presented at the meeting should be sent
to the Presiding Officer at least 7
calendar days prior to the meeting. One
copy of each exhibit should also be sent
to each party at least 7 calendar days
prior to the meeting.
(3) Conducting the Public Meeting, (i)
The Presiding Officer will prepare a
written agenda for the public meeting
and will provide it to the applicant and
protestant(s) at least 3 calendar days
prior to the meeting. The agenda will
identify the applicant and protestant(s)
to the application, confirm the location
otthe meeting and the time it will
commence, list persons authorized to
speak at the meeting, and outline the
format to be followed during the
meeting.
(ii) The proceedings of the public
meeting will be transcribed by a court
reporter paid for by the Federal Reserve.
A copy of the transcript will be
available for inspection at the Reserve
Bank. Parties may obtain a copy of the
transcript by purchasing it from the
stenographer for the stenographer’s
usual fee.
(iii) In conducting the public meeting
the Presiding Officer will have the
authority and discretion to ensure that
the meeting proceeds in a fair and
orderly manner. Generally, the public
meeting will be conducted in
accordance with the following format:
[A] Opening remarks by the Presiding
Officer. These remarks are to establish
the purpose of the meeting and briefly
outline the remainder of the agenda.
[B] Protestant's Presentation. A
presentation regarding why the
application should not be approved,
including any data or other materials
that further the protestant’s position.
Persons previously identified to the
Presiding Officer may speak concerning
the merits of the application at this time.
[C] Applicant’s Presentation. A
presentation regarding why the
application should be approved,
including any data or other material in
support of the application. Persons
previously identified to the Presiding
Officer may speak concerning the merits
of the application at this time.
[D] Protestant's Rebuttal
[E] Applicant’s Rebuttal.
[Fj Question and Answer Period.
Questions may be addressed by the
protestant(s), and the applicant to one
another, as directed by the Presiding
Officer.
(iv) The Applicant and Protestant(s)
will each be allowed an aggregate of
one and one-half hours in which to
conduct their presentation and rebuttal,
although the time may be divided
between presentation or rebuttal as
desired by the applicant or protestant(s).
If there is more than one protestant they
will normally be expected to apportion
the one and one-half hour period among
themselves. The question and answer
portion of the meeting should not exceed
one hour. The total time for the meeting
should not exceed four hours.
(v) The Presiding Officer may accept
new written material during the meeting
if it is relevant, and will allow the
opposing party 10 business days to
respond in writing to the new material.
The conclusion of the public meeting
normally marks the close of the public
portion of the record, except for the
receipt of written comments reponding
to new material accepted at the public;
meeting.
The Board has issued this
interpretation pursuant to its statutory
authority under sections 3(a), 4(c)(3) and
5(b) of the Bank Holding Company Act
of 1956 (12 U.S.G 1842(a), 1843(c)(8), and
1844(b)), section 18 of the Federal
Deposit Insurance Act (12 U.S.C.
81543
1828(c)), and sections 9 and ll(i) of the
Federal Reserve Act (12 U.S.C. 321 and
248(i)).
By order of the Board of Governors of the
Federal Reserve System, December 3,1980.
Theodore E. Allison,
Secretary of the Board.
[FR Doc. BO-38383 Filed 12-10-80: 8:49 am ]
BILUNG CODE 8210-01-M
12 CFR Part 262
[Rules of Procedure, Docket No. R-0335]
Rules of Procedure; Notice of
Applications
a g e n c y : Board of Governors of the
Federal Reserve System.
a c t io n : Final amendment.
This amendment reflects
steps taken by the Board to improve the
effectiveness of newspaper notices of
applications by a bank or company for
deposit-taking facilities required under
the Board’s Rules of Procedure, by
requiring the use of a standardized form
of notice; specifying that notices appear
in the classified legal notices section of
the newspaper, and requiring
submission of the application
immediately after the first notice is
published.
EFFECTIVE DATE: This amendment will
apply to all applications for which
notice is published on or after February
1,1981.
SUMMARY:
FOR FURTHER INFORMATION CONTACT!
Robert E. Mannion, Deputy General
Counsel (202/452-3274) or Bronwen
Mason, Senior Attorney (202/452-3564),
Board of Governors of the Federal
Reserve System, Washington, D.C.
20551.
SUPPLEMENTARY INFORMATION: Under
S 262.3(b)(1) of the Board's Rules of
Procedure ("Rules"), a bank or company
applying to the Board for a deposittaking facility must first publish notice
of its application in local newspapers.
This requirement covers applications
under the Bank Holding Company Act
and Bank Merger Act, as well as
applications for membership in the
Federal Reserve System and for new
branches of State member banks.
Notices of these applications are
published in newspapers of general
circulation in the communities where the
applicant intends to do business, as well
as the community where its head office
is located. These notices are important
in calling the public’s attention to an
applicant's plans and giving the public a
chance to comment on these plans. The
Board is making several changes in its
81544
Federal Register / Vol. 45, frfa. .240 / Thursday, December 11, 1980 / Rales and Regulations
notice procedures to improve the
effectiveness of the notices.
The Board has amended its Rules to
require the notices to be published in the
form prescribed by the Board. The
approved standardized newspaper
notices are attached as Exhibits 1,2, and
3 to this notice. Using these notices,
applicant's must specify the exact date
on which the comment period on the
application ends (which may not be less
than thirty calendar days from the date
of publication of the first notice). The
newspaper notices will also provide the
name and telephone number of a person
at the appropriate Reserve Bank to call
to obtain more information about
submitting comments. The Board has
also amended to regulation to require
that the newspaper notices appear in the
classified legal notices section of the
newspaper. While most applicants
currently publish their notices in this
fashion, adoption of this requirement is
intended to promote uniformity of the
placement of required newspaper
notices so that they may be identified
easily by interested persons.
The regulation provides that the
newspaper notices must be published
before the application could be filed
with the Reserve Bank. In adopting this
provision, the Board apparently believed
that the newspaper notices would
immediately precede the submission of
an application and its acceptance by the
Reserve Bank. It has been the Board’s
experience, however, that in numerous
instances applicants have allowed a
substantial period of time to elapse
between the publication of notice and
the submission of a final application to
the Reserve Bank. In this situation the
comment period specified in the
newspaper notice may end before a
person interested in commenting has an
opportunity to examine the application.
Moreover, it has been the Board’s policy
since the institution of the noticc
requirements that notices published
more than 90 days prior to the
submission of the application are
“stale". Thus, as the result of the delay
in submitting the application notices
often become “stale", and must be
republished at the applicant's expense.
In order to remedy these difficulties
and to effectuate its original intent, the
Board has amended its Rules. The
amendment requires that the applicant
submit its application to the Reserve
Bank, together with a copy of the notice
as it appeared in the newspaper,
between the publication of the first and
second notice. The amendment also
provides that the notice may not
precede acceptance of the application
by the Reserve Bank 'by nune 1han
ninety days.
'Hie provisions of S U.S.C. 553 relating
to notice and public participation have
not been followed in connection with
adoption of these amendments because
the changes involved are procedural in
nature and do not constitute'substantive
rules subject to the requirements of that
section. The Board’s expanded
rulemaking procedures (44 FR 3,957
(1979)) have not been followed because
the amendments are technical in nature.
This action is taken pursuant to its
authority under section 3(a) and 5(b) of
the Bank Holding Company Act of 1956
(12 U.S.C. 1842(a) and 1844(b)), section
18 of the Federal Deposit Insurance Act
(12 U.S.C. 1828(c)), and sections 9 and
ll(i) of the Federal Reserve Act (12
U.S.C. 321 and 248(i)).
Accordingly, in § 262.3(b) of the
Board’s Rules of Procedure,
subparagraph (1) is revised to read as
follows:
§ 262.3
*
*
A p p licatio n s.
*
*
*
(b) Notice o f applications. (1) In the
case of applications,
(i) For membership in the Federal
Reserve System where such membership
would confer Federal deposit insurance
on a bank,
(ii) By a State member bank for the
establishment of a domestic branch or
other facility that would be authorized
to receive deposits,
(iii) By a State member bank for the
relocation of a domestic branch office,
(iv) For merger, consolidation, or
acquisition of assets or assumption of
liabilities, if the acquiring, 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, or to merge or
consolidate with any other bank holding
company,
the applicant shall cause to be published
on the same day of each of two
consecutive weeks 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 notice may
appear no more than ninety calendar
days prior to acceptance by the Reserve
Bank of the application. The notice must
provide an opportunity for the public to
give written comment on the application
to the appropriate Federal Reserve Bank
for at least thirty days after the date of
publication of the first notice. In
addition, between publication of the
first and seoond notice, the applicant
stall submit to tfa; ip p w p ra e Reserve
Bank for'acceptance copies of the
application, together with & copy of the
notice as it appeared in the newspaper.
Such notice shall be published in a
newspaper of general circulation in (A)
the community in which the head office
of the bank is or is to be located in the
case of an application for membership
that would confer deposit insurance, (B)
the community 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 of an
application for the establishment of a
domestic branch or other facility that
would be authorized to receive deposits,
(C) the community or communities in
which the head office of 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 of each of the banks to be
party to the merger, consolidation, or
acquisition of assets or assumption of
liabilities are located in the case of an
application by a bank for merger,
consolidation, or acquisition of assets or
assumption of liabilities, or (E) the
community or communities in which the
head offices of the largest subsidiary
bank, if any, or an applicant and of each
bank, shares of which are to be directly
or indirectly acquired, are located in the
case of applications under section 3 of
the Bank Holding Company Act.
*
*
*
*
*
Board of Governors of the Federal Reserve
System, December 3,1980.
Theodora E. Allison,
Secretary o f the Board.
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
RULES OF PROCEDURE
AMENDMENTS
1. Section 262.3(g)(4) is amended by deleting
the words, “Each such Order is published in the
Federal Register.”
2. Effective November 6, 1978, section 262.3
is amended by adding a new subsection (b) to read
as follows:
SECTION 262.3 — APPLICATIONS
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(b) Notice of applications. (1) In the case of
applications,
(i) for membership in the Federal Reserve
System where such membership would confer
Federal deposit insurance on a bank,
(ii) by a State member bank for the establish
ment 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 merger, consolidation, or acquisition
of assets or assumption of liabilities, if the
acquiring, 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, or to merge or consolidate with any other
bank holding company,
the applicant shall, prior to filing such application,
cause to be published on the same day of each of
two consecutive weeks a notice containing the
name of the applicant or applicants, the subject
matter of the application, the location at which
the applicant proposes to engage in business, and
an invitation to the public to give written comment
upon the application to the appropriate Federal
Reserve Bank no later than thirty days after the
date of publication of the first notice. Such notice
shall be published in a newspaper of general cir
culation in (A) the community in which the head
office of the bank is or is to be located in the case
of an application for membership that would con
fer deposit insurance, (B) the community or com
munities 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 of an application for the establishment
of a domestic branch or other facility that would
be authorized to receive deposits, (C) the commu
nity or communities in which the head office of
the bank, the office to be closed, and the office
to be opened are located in the case of an applica
tion for the relocation of a domestic branch office,
(D) the community or communities in which the
head office of each of the banks to be party to the
merger, consolidation, or acquisition of assets or
assumption of liabilities are located in the case of
an application by a bank for merger, consolida
tion, or acquistion of assets or assumption of
liabilities, or (E) the community or communities
in which the head offices of the largest subsidiary
bank, if any, of an applicant and of each bank,
shares of which are to be directly or indirectly
acquired, 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 of an application to relocate a
domesdc 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 nodce containing the information
specified in secdon 262.3(b)(1). Such notice
should be posted on the date of the first notice
required by section 262.3(b)(1).
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3.
Effective October 19, 1978, secdon 262.3 is
amended by adding a new subsection 262.3 (d) to
read as follows:
SECTION 262.3 — APPLICATIONS
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(d)
Submission of comments and requests for
hearing. The Board will consider a comment or
request for hearing with respect to an applica-
For this Regulation to be complete retain:
1) Regulation pamphlet dated April 1979.
2) This slip sheet. (Destroy October 1979 slip sheet.)
DECEMBER 1980
tion only if it is in writing and is sent to the
Secretary of the Board or the appropriate Fed
eral Reserve Bank on or before the date pre
scribed in the Federal Register notice with re
spect to applications filed under sections 3
or 4 of the Bank Holding Company Act or, in
the case of other applications, the date specified
in the newspaper notice with respect 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
consider comments on an application from the
Attorney General or a banking supervisory
authority to which notification of receipt of an
application has been given, only if such comment
is received by the Secretary of the Board within
thirty days of the date of the letter giving such
notification. 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 of fact that are in dispute and summa
rizing the evidence that would be presented at a
hearing. In every case where a timely comment or
request for hearing is received as provided
herein, a copy of such comment or request shall
be forwarded promptly to the applicant for its re
sponse. 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 for
warded to the applicant. At the same time it
transmits its response to the Board, the applicant
should transmit a copy of its response to the per
son or supervisory authority making such com
ment or requesting a hearing. Notwithstanding
the foregoing, the Board may, in its sole'discre
tion and without notifying the parties, take into
consideration the substance of comments with re
spect to an application, (but not requests for hear
ing) that are not received within the time periods
provided herein.
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4.
Effective October 19, 1978, section 262.3
is amended by adding a new subsection 262.3 (i)
to read as follows:
SECTION 262.3 — APPLICATIONS
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(i) Reconsideration of certain Board actions.
The Board may reconsider any action taken by it
on an application upon receipt by the Secretary of
the Board of a written request for reconsidera
tion from any party to such application, on or
before the fifteenth day after the effective date of
the Board’s action. Such request should specify
the reasons why the Board should reconsider its
action, and present relevant facts that, for good
cause shown, were not previously presented to
the Board. Within ten days of receipt of such a
request, the General Counsel, acting pursuant to
delegated authority (12 C.F.R. 265.2 (b) (7)).
shall determine whether or not the request for
reconsideration should be granted, and shall notify
all parties to the application orally by telephone of
this determination within ten days. Such notifica
tion will be confirmed promptly in writing. In the
exercise of this authority, the General Counsel
shall confer with the Directors of other interested
Divisions of the Board or their designees. Not
withstanding the foregoing, the Board may, on its
own motion if it deems reconsideration appropri
ate, elect to reconsider its action with respect to
any application, and the parties to such applica
tion shall be notified by the Secretary of the
Board of its election as provided above. If it is
determined that the Board should reconsider its
action with respect to an application, such action
will be stayed and will not be final until the
Board has acted on the application upon reconsid
eration. If appropriate, notice of reconsideration
of an application will be published promptly in
the Federal Register.
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As an incident to these amendments, para
graph 262.3(g)(5) is withdrawn. Subsections (b),
(c), (d), (e). (f), (g\ and (h) are redesignated (c),
(e), (f), (g), (h), 0). and (k).
5. Effective October 24. 1979. section 262.3 is
amended by deleting subparagraph <k)(5) and revis
ing subparagraph (c) to read as follows:
SECTION 262.3 — APPLICATIONS
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(c)
Filing of applications. Any application
should be sent to the Federal Reserve Bank of the
district in which the head office of the parent bank
ing organization is located, except as otherwise spe
cified on application forms, and that Bank will for
ward it to the Board when appropriate; however, in
the case of a foreign bank holding company, us de
fined in section 225.4(g) of this chapter, applica
tions shall be sent to the Federal Reserve Bank of
the district in which the operations of the organiza
tion's subsidiary banks arc principally conducted.
In the case of a foreign banking organization that is
not a bank holding company but that has one or
more branches, agencies, or commercial lending
companies in any State of the United States or the
District of Columbia, applications shall be sent to
the Federal Reserve Bank of the district in which
the organization's banking assets are the largest.
Applications of a member bank subsidiary, how
ever. should be filed with the Reserve Bank of the
district in which the member bank is located.
6.
Section 262.3 is amended effective for all ap
plications for which notice is published on or after
February 1. 1981. The amended paragraph
262.3(b)(1) follows:
SECTION 262.3— APPLICATIONS
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(b) Notice of applications. (1) In the case of ap
plications,
(i) for m em bership in the Federal Reserve
System where such membership would confer
Federal deposit insurance on a bank,
(ii) by a State member bank for the establish
ment of a domestic branch or other facility that
would be authorized to receive deposits,
(iii) by a State member bank for the relocation
of a domestic branch office.
(iv) for merger, consolidation, or acquisition
of 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, or to merge or consolidate with any other
bank holding company,
the applicant shall cause to be published on the
same day of each of two consecutive weeks a no
tice in the form prescribed by the Board. The no
tice shall be placed in the classified advertising le
gal notices section of the newspaper, and the first
notice may appear no more 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 comment 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 of the first and second notice, the applicant
shall submit to the appropriate Reserve Bank for
acceptance copies of the application, together with
a copy of the notice as it appeared in the newspa
per. Such notice shall be published in a newspaper
o f general circulation in (A) the community in
which the head office of 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 of an application for the estab
lishment of a domestic branch or other facility that
would be authorized to receive deposits, (C) the
community or communities in which the head of
fice of 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 of each of the banks to be party to
the merger, consolidation, or acquisition of assets
or assumption of liabilities are located in the case
of an application by a bank for merger, consolida
tion, or acquisition of assets or assumption of lia
bilities, or (E) the community or communities in
which the head offices of the largest subsidiary
bank, if any, or an applicant and of 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.
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@FedFRASER