The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
Federal R eserve Bank OF DALLAS ROBERT D. M c T E E R , J R . P R E S ID E N T A N D C H IE F E X E C U T I V E O F F I C E R _ , _________, September 9, 1996 DALLAS, TEXAS 75265-5906 Notice 96-86 TO: The Chief Executive Officer of each member bank and others concerned in the Eleventh Federal Reserve District SUBJECT Withdrawal of Interagency Policy Statement Governing the Advertising of NOW Accounts DETAILS The Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of Thrift Supervision have withdrawn their joint statement of policy entitled Interagency Policy Statement Regarding Advertising o f Negotiable Order o f Withdrawal Accounts on the ground that it is obsolete. The removal of the policy statement became effective August 2, 1996. ATTACHMENT A copy of the Board’s notice as it appears on pages 40419-20, Vol. 61, No. 150, of the Federal Register dated August 2, 1996, is attached. MORE INFORMATION For more information, please contact Jane Anne Schmoker at (214) 922-5101. For additional copies of this Bank’s notice, please contact the Public Affairs Department at (214) 922-5254. Sincerely yours, For additional copies, bankers and others are encouraged to use one of the following toll-free numbers in contacting the Federal Reserve Bank of Dallas: Dallas Office (800) 333 -4460; El Paso Branch Intrastate (800) 592-1631, Interstate (800) 351-1012; Houston Branch Intrastate (800) 392-4162, Interstate (800) 221-0363; San Antonio Branch Intrastate (800) 292-5810. This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) Federal Register / Vol. 61, No. 150 / Friday, August 2, 1996 / Notices 40419 FEDERAL FINANCIAL INSTITUTIONS EXAMINATION COUNCIL Interagency Policy Statement Regarding Advertising of NOW Accounts AGENCIES: Office of the Comptroller of the Currency (OCC), Department of the Treasury; Board of Governors of the Federal Reserve System (FRB); Federal Deposit Insurance Corporation (FDIC); Office of Thrift Supervision (OTS), Department of the Treasury. ACTION: Withdrawal of statement of policy. The OCC, FRB, FDIC, and OTS (the Agencies) are withdrawing their joint statement of policy entitled “Interagency policy statement regarding advertising of Negotiable Order of Withdrawal (NOW) Accounts” (the Statement) on the ground that it is obsolete. EFFECTIVE DATE: The removal of the Statement of Policy is effective August 2,1996. SUMMARY: FOR FURTHER INFORMATION CONTACT: OCC: Paul Utterback, National Bank Examiner, (202/874-5461), 250 E Street, S.W., Washington, D.C. 20219. FRB: J. Ericson Heyke ELI, Staff Attorney, (202/452-3688), 20th and C Streets, N.W., Washington, D.C. 20551. 40420 Federal Register / Vol. 61, No. 15Q / Friday, August 2, 1996 / Notices FDIC: Marc J. Goldstrom, Counsel, (202/ 898-8807), Legal Division, 550-17th St., N.W., Washington, D.C. 20429. OTS: Richard Blanks, (202/906-7037), Counsel (Banking and Finance), Office of Thrift Supervision, 1700 G Street, N.W., Washington, D.C. 20552. SUPPLEMENTARY INFORMATION: “NOW accounts” are, in essence, interestbearing checking accounts. Federal law expressly authorizes depository institutions to offer such accounts: must comply with these rules. 45 FR 67464 (1980). This aspect of the Statement has become obsolete. Congress has adopted the Truth-In-Savings Act (TISA). Federal Deposit Insurance Corporation Improvement Act of 1991, Public Law 102-242, 261-74,105 Stat. 2236, 233443 (Dec. 19,1991); 12 U.S.C. 4301-13. The TISA prescribes statutory requirements for the advertisement and payment of interest on deposits, and calls for the FRB to issue any necessary * * * [A] depository institution is regulations. 12 U.S.C. 4308. The FRB authorized to permit the owner of a deposit or account on w hich interest or dividends are has responded by adopting Regulation DD, 12 CFR part 230. See 57 FR 43337 paid to make withdrawals by negotiable or (1992). transferable instruments for the purpose of The Agencies have acknowledged that making transfers to third parties. Regulation DD has superseded their 12 U.S.C. 1832(1).' own advertising rules, and have At first, Congress only allowed such therfefore rescinded them. See id. 43336 withdrawals to be made in Massachusetts and New Hampshire. Act (removing the advertising provisions of qf August 16,1973, Public Law 93-100, Regulation Q); 58 FR 4308 (removing all but the most general advertising section 2, 87 Stat. 342. Congress extended this permission to other states regulations of the Office of Thrift Supervision); 58 FR 27921 (1993) over the next several years. Act of (repealing the FDIC’s advertising February 27,1976, Public Law 94-222, regulation). section 2, 90 Stat. 197 (Connecticut, The Statement also provides advice Rhode Island, Maine, and Vermont); regarding the advance promotion and Financial Institutions Regulatory and Interest Rate Control Act of 1978, Public advertisement of NOW accounts by Law 95-630, section 1301, 92 Stat. 3641, depository institutions that received NOW account authority .for the first time 3712 (1978) (New York); Act of December 28,1979, Public Law 96-161, on December 31,1980. The Statement is obsolete in this respect as well. section 106, 93 Stat. 1233,1235 (New Jersey). Congress finally discarded The Agencies’ Action geographic restrictions entirely, The Agencies hereby withdraw the effective December 31,1980. See Statement. Depository Institutions Deregulation Dated: July 26,1996. and Monetary Control Act of 1980, Public Law 96-221, section 303, 94 Stat. Joe M. Cleaver, Executive Secretary, Federal Financial 132,146 (1980). Institutions Examination Council. During these years, the various Agencies had well-established and long [FR Doc. 96-19555 Filed 8 -1 -9 6 ; 8:45 am] standing rules governing the advertising BILLING CODE 8 2 1 0 -0 1 -P of interest paid on deposits. See Regulation Q, 12 CFR 217.6 (1980)' (issued by the FRB, and applicable to all member banks, including national banks); id. § 329.8 (issued by the FDIC, and applicable to insured state nonmember banks); id. § 526.6 (issued by the Federal Home Loan Bank Board, and applicable to any member of a Federal Home Loan Bank, except an FDIC-insured savings bank, or an institution in Guam) and § 563.27 (issued by the Federal Savings and Loan Insurance Corporation, and applicable to all institutions insured by that entity). The Statement says that it is intended to “remind” depository institutions that, when they advertise the interest-rates that they pay on NOW accounts, they 1The authorization only applies to certain accounts, however: namely, those that belong to natural persons, to nonprofit organizations, and to public units. See 12 U.S.C. 1832(2).
@FedFRASER