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FEDERAL RESERVE BANK
OF NEW YORK
f Circular No. 5 1 5 1 1
L February 13, 1962 J
Board of Governors’ Rules of Organization and Procedure
To All Banks and Trust Companies, and Others
Concerned, in the Second Federal Reserve District:
Enclosed is a copy of the Rules of Organization and Procedure of the
Board of Governors of the Federal Reserve System, as revised effective
December 15, 1961, and amended effective January 12, 1962. In the revi
sion, the former Rules of Organization and Rules of Procedure were
divided into four parts— Rules of Organization; Rules Regarding Informa
tion, Submittals, and Requests; Rules of Procedure; and Rules of Practice
for Formal Hearings. The revised Rules of Procedure include, in subpara
graphs (1) through (6) of section 262.2(f), provisions effective November 1,
1961 regarding procedures followed by the Board on applications under
section 3 of the Bank Holding Company Act of 1956, and bank merger
applications under section 18(c) of the Federal Deposit Insurance Act.
An amendment, effective January 12, 1962, added subparagraph (7) to
section 262.2(f) of the revised Rules of Procedure.
Additional copies of the enclosure will be furnished upon request.
A lfred H
ayes,
President.
BO AR D OF GOVERNORS
o f the
FEDERAL RESERVE SYSTEM
RULES OF ORGANIZATION AND PROCEDURE
Issued Pursuant to the
A D M IN IS T R A T IV E P R O C E D U R E A C T
and other relevant provisions o f law
Printed February 1962
CONTENTS
Page
3
R u l e s o f O r g a n iz a t io n
R u l e s R e g a r d in g I n f o r m a t io n , S u b m it t a l s , a n d R e q u e st s
R u l e s o f P r o c e d u r e .............................................................................................
R u l e s o f P r a c t ic e f o r F o r m a l H e a r in g s
13
23
33
FOREWORD: BASIS AND PURPOSE
The following Rules are issued by the Board of Governors of the
Federal Reserve System pursuant to the Administrative Procedure Act
(5 U.S.C. 1001-1011), and other relevant provisions of law, including
provisions of the Federal Reserve Act.
As required by section 3 of the Administrative Procedure Act, these
Rules (1) describe the Board’s "Central and field organization in
cluding delegations . . .
of final authority and the established places
at which, and methods whereby, the public may secure information
or make submittals or requests;” (2) state “ the general course and
method by which its functions are channeled and determined, in
cluding the nature and requirements of all formal or informal proce
dures available as well as forms and instructions as to the scope and
contents of all papers, reports, or examinations;” and (3) indicate the
circumstances in which (a) final opinions or orders of the Board are
made “ available to public inspection” and (b) matters of official record
are made “ available to persons properly and directly concerned.”
INQUIRIES REGARDING THIS PAMPHLET
Any inquiry relating to this pamphlet should be addressed
to the Federal Reserve Bank o f the district in which the
inquiry arises.
RULES OF ORGANIZATION
CONTENTS
S e c . 1.
C o m p o s it io n
L o c a t i o n .................................................................. ......................................... 3
and
(a) Governors, Chairman, Vice Chairman................ .................................3
(b ) Location and Business Hours........ ......................................................... 3
S ec.
2.
C e n tra l
....
O r g a n iz a tio n
3
(a) Office of the Secretary .
3
(b) Legal Division ............................................................................................. 3
(c) Division of Research and Statistics........ ............................................. 3
(d) Division of International Finance. . .
4
(e) Division of Bank Operations.................................................................. 4
(f) Division of Examinations............................... .........................................4
(g) Division of Personnel Administration. . .
4
(h) Division of Administrative Services. . .
4
(i) Office of the Controller............................... ............................................... 5
O') Office of Defense Planning......................... ............................................. 5
(fc) Other Personnel
S e c . 3.
F ie ld
S e c . 4.
D e l e g a t io n s
A p p e n d ix
M ap
of
................................................................ 5
5
O r g a n iz a tio n
of
F in a l
A u t h o r it y .
A— List of Federal Reserve Banks and Branches .
F ed era l R eserve
S y stem
.
6
7
9
1
RULES OF ORGANIZATION
4
tion of monetary and credit policy; fosters governmental and public
knowledge and understanding of economic trends underlying System
policies; and conducts research on money and banking, public finance,
production, trade, agriculture, prices, national income, employment and
wages, capital markets, consumer credit and finances, flow of funds,
and savings.
( d ) Division o f International Finance, headed by a Director, ad
vises and assists the Board on international financial and economic
matters and conducts research in this field.
I t carries on staff work
in connection with the supervision of foreign operations of the Fed
eral Reserve System and the membership of the Chairman of the
Board on the National Advisory Council on International Monetary
and Financial Problems.
( e ) Division o f Bank Operations, headed by a Director, advises
and assists the Board with respect to matters concerning the condi
tion, operation, and reports of the Federal Reserve Banks, arranges
for printing and shipment of Federal Reserve notes to supply the Fed
eral Reserve Banks, collects and prepares various data regarding the
condition, operations, expenses, and earnings of Reserve Banks, mem
ber banks, and other banks, and maintains liaison with Treasury D e
partment and other Government agencies on Fiscal Agency operations
of Reserve Banks.
(/) Division o f Examinations, headed by a Director, examines
the Federal Reserve Banks and keeps currently informed on the activi
ties of their internal auditing staffs, reviews and coordinates the bank
examination functions of the Federal Reserve Banks (which examine
the State member banks and their holding company and other affiliates),
reviews reports of such examinations, and advises and assists the Board
with respect to bank supervisory activities of the Federal Reserve Sys
tem, and with respect to various applications, such as applications for
membership in the System, for trust powers, for establishment of for
eign banking and financial corporations, for establishment of branches,
for bank mergers, and for establishment or expansion of bank holding
companies.
(g) Division o f Personnel Administration, headed by a Director,
is responsible for the administration of the Board’s personnel program,
serves as the security office, and advises and assists the Board on per
sonnel matters pertaining to the Federal Reserve Banks.
( h ) Division o f Administrative Services, headed by a Director,
serves as the central procurement, electronic computer, machine tabula
tion, duplicating, communications, and service unit of the Board and
advises and assists the Board with respect to such matters.
It also
performs various administrative functions, including the distribution
RULES OF ORGANIZATION
5
of Board publications and the operation of the Board’s building and
other facilities.
(i)
Office o f the Controller, headed by the Board’s Controller,
is responsible for the receipt and disbursement of the Board’s funds,
maintenance of the books of account, and the formulation of the
Board’s budget.
It analyzes operations and conducts internal audits,
computes assessments upon the Federal Reserve Banks for the ex
penses of the Board and of System leased wire operations, and handles
reimbursement to the Treasury Department for printing, issuing, and
redeeming Federal Reserve notes.
(;) Office o f Defense Planning, headed by a Coordinator, is re
sponsible for the development of the Board’s defense planning program
and the coordination of that program with those of the Federal Reserve
Banks.
It maintains liaison regarding defense matters with Govern
ment departments and agencies, and promotes the commercial bank
preparedness program.
(k ) Other Personnel.— In addition to the Divisions mentioned
above, the staff of the Board includes Advisers and Assistants to the
Board and a Legislative Counsel.
The Federal Reserve Bulletin is
issued monthly under the direction of a Staff Editorial Committee
which is responsible for interpretations and opinions expressed therein,
except in official statements and signed articles.
The Board does not
employ hearing examiners 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 hearing ex
aminers, whose functions in such capacity are appropriately separated
from investigative and prosecuting functions of the staff as required
by law.
SECTION 3—FIELD ORGANIZATION
The United States is divided into 12 Federal Reserve districts.
In
one city in each Federal Reserve district there is located a Federal
Reserve Bank, and in 10 of the districts there are one or more branches
of the Federal Reserve Bank in other cities.
Each Federal Reserve
Bank is a separate legal entity, created pursuant to the Federal Reserve
Act and operating under the general supervision of the Board.
The
locations of the 12 Federal Reserve Banks and their 24 branches and
the boundaries of the Federal Reserve district and branch territories
are shown in Appendix A.
Each Federal Reserve Bank, in addition
to its other duties, carries out local functions for the Board pursuant
to instructions of the Board, and in many matters acts as the Board’s
field representative in the Bank’s district.
It assists in administering
6
RULES OF ORGANIZATION
the Board’s regulations and policies locally under instructions of the
Board, keeps the Board informed of local conditions, and recommends
such action as it thinks appropriate for general policies or in partic
ular cases.
It is desirable and convenient for persons concerned with Federal
Reserve matters to deal in the first instance with the Federal Reserve
Bank of the appropriate district or a branch thereof, and the Board
requests all persons to follow this procedure.
A t each Federal Reserve Bank, one of the three directors of the
Bank appointed by the Board is designated by the Board as Chairman
of the board of directors of the Bank and as Federal Reserve Agent.
He acts as the Board’s official representative and maintains a local
office of the Board on the premises of the Federal Reserve 3ank .
SECTION 4—DELEGATIONS OF FINAL AUTHORITY
The Board does not delegate its authority on any question of gen
eral policy, and its functions are such that there is no delegation of
final authority.
RULES OF ORGANIZATION
7
APPENDIX A
L IST OF F E D E R A L R E S E R V E B A N K S A N D B R A N C H E S
Federal Reserve Bank of
Address
BOSTON
30 Pearl Street (Boston 6, Massachusetts)
NEW YORK
Buffalo Branch
33 Liberty Street (New York 45, New York)
160 Delaware Avenue (Buffalo 5, New York)
PHILADELPHIA
925 Chestnut Street (Philadelphia 1, Pennsylvania)
CLEVELAND
Cincinnati Branch
Pittsburgh Branch
1455 East Sixth Street (Cleveland 1, Ohio)
105 West Fourth Street (Cincinnati 1, Ohio)
717 Grant Street (Pittsburgh 30, Pennsylvania)
RICHMOND
Baltimore Branch
100 North Ninth Street (Richmond 13, Virginia)
114-120 East Lexington Street (Baltimore 3, Mary
land)
401 South Tryon Street (Charlotte 1, North Caro
lina)
Charlotte Branch
ATLANTA
Birmingham Branch
Jacksonville Branch
Nashville Branch
New Orleans Branch
CHICAGO
Detroit Branch
ST. LOUIS
Little Rock Branch
Louisville Branch
Memphis Branch
104 Marietta Street, N. W. (Atlanta 3, Georgia)
1801 Fifth Avenue, North (Birmingham 2, Ala
bama)
515 Julia Street (Jacksonville 1, Florida)
301 Eighth Avenue, North (Nashville 3, Tennessee)
147 Carondelet Street (P. O. Box 1630, New
Orleans 11, Louisiana)
230 South LaSalle Street (P. O. Box 834, Chicago
90, Illinois)
160 Fort Street, West (P. O. Box 1059, Detroit 31.
Michigan)
411 Locust Street (P. O. Box 442, St. Louis 66, Mis
souri)
121 West Third Street (P. O. Box 1261, Little
Rock, Arkansas)
410 South Fifth Street (P. O. Box 899, Louisville 1,
Kentucky)
170 Jefferson Street (P. O. Box 407, Memphis 1.
Tennessee)
MINNEAPOLIS
Helena Branch
73 South Fifth Street (Minneapolis 2, Minnesota)
400 North Park Avenue (Helena, Montana)
KANSAS CITY
Denver Branch
Oklahoma City Branch
925 Grand Avenue (Kansas City 6, Missouri)
1111 Seventeenth Street (Denver 17, Colorado)
226 Northwest Third Street (Oklahoma City 1,
Oklahoma)
102 South Seventeenth Street (Omaha 2, Nebraska)
Omaha Branch
RULES OF ORGANIZATION
8
DALLAS
El Paso Branch
Houston Branch
San Antonio Branch
SAN FRANCISCO
Los Angeles Branch
Portland Branch
Salt Lake City Branch
Seattle Branch
400 South Akard Street (Station K, Dallas 2,
Texas)
301 East Main Street (P. 0 . Box 100, El Paso,
Texas)
1701 San Jacinto Street (P. O. Box 2578, Houston
1, Texas)
210 West Nueva Street (P. O. Bex 1471, San
Antonio 6, Texas)
400 Sansome Street (San Francisco 20, California)
409 West Olympic Boulevard (P. O. Box 2077, Los
Angeles 54, California)
915 S. W. Stark Street (P. O. Box 3456, Portland 8,
Oregon)
120 South State Street (P. O. Box 780, Salt Lake
City 10, Utah)
1015 Second Avenue (P. O. Box 3567, Seattle 24,
Washington)
■ t h e
fe d e r a l
r e s e r v e
system
...........
;----- FI' 'I )> in------- '
--------------- ----- ....................................... ........... ....... . .... .
BOUNDARIES OF FEDERAL RESERVE DISTRICTS AND THEIR BRANCH TERRITORIES
Omafux*
CHicaj
?inctnn«l&
'nver
St. Louis
.HasfivrfU
Dallas
'\T"
HAW AII
NW tq fo
‘prwMlyit.il!§a£n»,£m
Legend
Boundaries of Federal Reserve Districts
© Board of Governors of the Federal
® Federal Reserve Bank Cities
• Federal
ORGANIZATION
Kansas Cit
OF
j&’OirCuf,
RULES
M in n e a p o lis
of Federal Reserve Branch Territories
System
Branch Cities
o
RULES REGARDING INFORMATION, SUBMITTALS,
AND REQUESTS
CONTENTS
Sec. 261.1.
Sec. 261.2.
Sec. 261.3.
P ublished I nformation .......................................................................
13
(a) Federal Register ..........................................................
13
( b ) Annual Report........................................................................
13
(c) Federal Reserve Bulletin......................................................
13
( d ) Other Published Information..............................................
14
U npublished I nformation ............................................
14
(а) Definition .................................................................................
14
(б) General Rule as to Nondisclosure...........................
14
(c) Supervised Banks and Government Agencies.................
15
(d) Certain Unpublished Information Not Disclosed.........
15
(e) Reasons for Nondisclosure....................................................
16
Obtaining I nformation .......................................................................
18
(a) Published Information ..........................................................
18
(b) Unpublished Information .....................................
18
Sec. 261.4.
A pplications, R equests,
Sec. 261.5.
Subpoenas ..................................................................................................
18
(a) Advice by Person Served......................................................
18
( b ) Appearance by Person Served............................................
19
and
11
Submittals . . . .
18
RULES REGARDING INFORMATION
RULES REGARDING INFORMATION, SUBMITTALS,
AND REQUESTS *
(12 CFR PART 261)
As revised effective December 15, 1961
SECTION 261.1—PUBLISHED INFORMATION
(a)
Federal Register.— As
required by sections 3 and 4 of the A d
ministrative Procedure Act (5 U.S.C. 1002, 1003), and subject to the
exceptions therein stated, the Board publishes in the Federal Register
(1) descriptions of its central and field organization; (2) general rules
of procedure; (3) substantive rules, statements of general policy, and
interpretations formulated and adopted for the guidance of the public;
(4) final opinions and orders in the adjudication of certain types of
cases; and (5) general notice of proposed rules or regulations.
The
Board also publishes in the Federal Register notice of receipt of appli
cations pursuant to the Bank Holding Company Act of 1956 and
notice of any formal hearing ordered by the Board.
(b) Annual Report.— The
Board’s Annual Report to Congress,
made pursuant to section 10 of the Federal Reserve Act (12 U.S.C.
247), contains a full account of the Board’s operations during the year,
an economic review of the year, and, on occasion, recommendations
to Congress.
As required by law, the Annual Report includes (1) a
complete record of the policy actions taken by the Board and the Fed
eral Open Market Committee, showing the votes taken thereon and
the reasons underlying such actions (12 U.S.C. 2 4 7 a ); (2) material
pertaining to the administration of the Board’s functions under the
Bank Holding Company Act of 1956 (12 U.S.C. 1844); and (3) mate
rial pertaining to bank mergers approved by the Board under section
18(c) of the Federal Deposit Insurance Act (12 U.S.C. 1828).
(c)
Federal Reserve Bulletin.— In
the Federal Reserve Bulletin,
which has been published monthly since 1915, the Board publishes
a large volume of economic and statistical information; special articles
on subjects of economic interest; regulations, statements of general
policy, and interpretations of general interest to the public; notice of
actions by the Board on certain types of applications, such as appli
cations for membership in the Federal Resferve System; and orders
and accompanying statements of the Board with respect to certain
types of adjudications.
Some material that appears in the Bulletin
is released in advance during the month so that it will be more nearly
current, examples being certain regulations, interpretations, orders
* The text corresponds to the Code of Federal Regulations, Title 12, Chapter II, Part 261; cited
as 12 CFR Part 261.
13
RULES REGARDING INFORMATION
14
and opinions, the monthly summary of business conditions, the Board’s
index of industrial production, and certain other statistical series.
(d)
Other Published Information.— As
required by section 11(a)
of the Federal Reserve Act (12 U.S.C. 2 4 8 (a )), the Board publishes
a weekly statement of the condition of the Federal Reserve Banks.
From time to time, the Board issues statements to the press regarding
particular monetary and credit actions, actions with respect to certain
types of applications, and other matters.
In addition, it issues various
publications, the more important of which are listed in the monthly
Federal Reserve Bulletin.
SECTION 261.2—UNPUBLISHED INFORMATION
(a)
Definition.— For
purposes of this Part, “ unpublished informa
tion of the Board” means all information which comes to the Board
or any Federal Reserve Bank or to any officer, employee, or agent of
the Board or any Federal Reserve Bank, in the performance of duties
for or on behalf of the Board, which is not published in the Federal
Register, the Board’s Annual Report, the Federal Reserve Bulletin,
or elsewhere.
Such information includes any examination report or
related information in connection with examinations made by ex
aminers selected or approved by the Board.
It also includes all infor
mation of the kind above described which may be contained in files,
correspondence, memoranda, documents, reports, books, accounts, rec
ords, and other papers, whether located at the offices of the Board or
of a Federal Reserve Bank, or elsewhere, or which may be acquired
by any officer, employee, or agent of the Board or a Federal Reserve
Bank in the performance of his duties.
(b) General Rule as to Nondisclosure.— Except
as authorized
by the Board, no officer, employee, or agent of the Board or any Fed
eral Reserve Bank shall disclose or permit the disclosure of any un
published information of the Board to anyone (other than an officer,
employee, or agent of the Board or of a Federal Reserve Bank prop
erly entitled to such information for the performance of his official
duties), whether by giving out or furnishing such information or a
copy thereof or by allowing any person to inspect, examine, or copy
such information or copy thereof, or otherwise: Provided, That un
published economic, statistical, or similar information and unpublished
information regarding interpretations by the Board of statutory or
regulatory provisions may be disclosed by any such officer, employee,
or agent who has knowledge of the subject matter to any person who,
in the judgment of such officer, employee, or agent, has a proper in
terest therein, unless such information (1) is scheduled for public re
lease at a subsequent specified time, (2) relates to or discloses the
RULES REGARDING INFORMATION
15
affairs of any identified person, or (3) is of any of the kinds described
in paragraph (d) of this section.
(c)
Supervised Banks and Government Agencies.—The
Board,
directly or through such persons as it may designate, (1) makes avail
able to each State member bank a copy of the report of each examina
tion of the bank; and (2) may make available to the Comptroller
of the Currency, the Federal Deposit Insurance Corporation, certain
other agencies of the United States, and any governmental authority
having general supervision of a State bank, copies of reports of
examination and other information, for use where necessary in the
performance of their official duties:
Provided, That all reports or
other information made available pursuant to this paragraph shall
remain the property of the Board and, except as otherwise provided in
this Part, no person, agency, or authority to whom the information is
made available, or any officer, director, or employee thereof, shall dis
close any such information except in published statistical material that
does not disclose the affairs of any individual or corporation.
Certain Unpublished Information Not Disclosed.—Except
(d)
as provided in paragraph (c) of this section or in other circumstances
in which the Board deems such disclosure to be in the public interest,
the Board, for the reasons and good cause found as set forth in
paragraph (e) of this section, will not make available or otherwise
disclose any unpublished information of the Board, whether or not a
matter of official record within the meaning of the Administrative
Procedure Act, if such information relates to any of the following:
(1) Examinations, investigations, inspections, or reports of any
particular bank or affiliate thereof, holding company affiliate,
bank holding company or subsidiary thereof, broker, finance com
pany, or other person engaged, or proposing to engage, in the
business of banking, extending credit, or managing or controlling
banks;
or information
concerning the
business, personal,
or
financial affairs of any such person or of anyone employed by or
doing business with any such person.
(2) Proceedings in connection with consideration of
(i) the
removal of a director or officer pursuant to section 30 of the
Banking Act of 1933 (12 U.S.C. 77), (ii) the termination of mem
bership of a State bank in the Federal Reserve System pursuant
to section 9 of the Federal Reserve Act (12 U.S.C. 327), (iii) the
revocation of a voting permit granted to a holding company
affiliate (12 U.S.C. 6 1), (iv) suspension from use of the credit
facilities of the Federal Reserve System pursuant to section 4 of
the Federal Reserve Act (12 U.S.C. 301), or (v) the granting,
denial, or revocation of approval, permission, or authority in
16
RULES REGARDING INFORMATION
cases in which no public hearing is held, except that the fact that
the Board has granted approval, permission, or authority in such
cases will be disclosed to any person having a proper interest
therein upon request made in accordance with § 261.3(b) to the
extent that such disclosure does not conflict with the principles
stated in paragraph (e) of this section.
(3) The determination of policies concerning discount rates,
reserve requirements,
open market operations,
interest rates,
margin requirements, or other matters relating to monetary, fiscal,
or credit policy.
(4) Relations between the Board and any Federal Reserve
Bank; activities of any Reserve Bank on behalf of any agency
of the United States or any international organization;
and
internal operations of the Board or any Reserve Bank, including,
among other things, any matters of administration.
(5) Relations with, or activities that affect relations with, any
foreign bank, banker, or country.
(6) Any other matter as to which the Board, in a particular
case, determines that, in the public interest and for the reasons
stated in paragraph (e) of this section, the information should
not be disclosed.
(e)
Reasons for Nondisclosure.— The
public interest ordinarily
requires that certain unpublished information, as enumerated above,
be not disclosed.
For the following good causes found, such nondis
closure is a manifest need in order that the Board may properly
execute its statutory functions:
(1) The Board’s investigating, examining, and informationgathering functions, and the appropriate safeguarding of informa
tion regarding such functions, are essential to the proper enforce
ment of the legislation it administers.
(2) In connection with its activities described in subparagraph
(1) of this paragraph (e), its activities described in paragraph
(d) (2) of this section, and its activities in the field of monetary,
fiscal and credit policy, the Board necessarily has much informa
tion that is confidential or that relates solely to the internal man
agement of the Board or of other Government agencies.
This
includes advice and other information received by the Board from
its staff, other Government agencies, the Federal Reserve Banks,
and others.
It also includes information concerning the business,
personal, and financial affairs of individual banks and their
holding company and other affiliates, bank holding companies and
their subsidiaries, brokers, finance companies, and other extenders
RULES REGARDING INFORMATION
17
of credit, and persons employed or doing business with them.
Improper disclosure of such information would:
(i) Permit speculators and others to interfere with the
Board’s actions taken with a view to accommodating com
merce and business and with regard to their bearing upon the
general credit situation of the country;
(ii) Permit speculators and others to reap unfair profits
and other unfair advantages by speculative trading in securi
ties and otherwise;
(iii) Unreasonably and unnecessarily disturb and interfere
with individual privacy and confidential business relations;
(iv) Interfere with the orderly execution and accomplish
ment of the objectives of policies adopted by other Govern
ment agencies concerned with economic and fiscal matters;
(v) Impede the Board’s necessary collection of information
and advice, much of which cannot be obtained except on a
confidential and voluntary basis; and
(vi) Cause misinterpretations and misunderstandings as to
the Board’s policies and purposes, and as to the status of par
ticular financial institutions, with resulting disturbance of se
curities markets and impairment of public confidence in indi
vidual institutions or in the nation’s financial structure.
(3) Relations of the Board, of the Federal Reserve Banks, or
of other banks, with foreign banks, bankers, or countries involve
matters of foreign affairs. Other activities of the Board and of the
Reserve Banks influence the flow of gold and of dollar balances
to or from foreign countries, with vital effects upon such countries
and the United States.
Improper disclosures regarding such
matters would interfere with the orderly conduct of the foreign
affairs of the United States.
(4) Disclosure of unpublished information regarding personnel
or other matters of the Board’s internal administration could be
of no proper benefit to other persons and would needlessly interfere
with the privacy of the Board’s personnel, with the performance
of their duties for the Board, and with the Board’s necessary func
tions.
(5) The Federal Reserve Banks, in addition to their other func
tions, act in many matters as the Board’s field representatives and
give the Board advice and assistance on both local and national
problems.
The Reserve Banks also perform certain functions for
various agencies of the United States and certain international
organizations.
Disclosure of information regarding the Board’s
18
RULES REGARDING INFORMATION
supervision and regulation of the Reserve Banks, its relations
with them, or their activities for agencies of the United States
or for international organizations, would
damage the public
interest in the manner described in subparagraphs (1) through
(3) of this paragraph (e ).
SECTION 261.3—OBTAINING INFORMATION
(a)
Published Information.— Anyone
may
subscribe
to
the
Federal Reserve Bulletin at the standard rate, which is published in
the Bulletin.
ber bank.
A copy of each issue of the Bulletin is sent to each mem
Current or back issues of the Bulletin, Annual Reports,
rules, regulations, or other published information may be examined at
the offices of the Board or any Federal Reserve Bank, and copies, if
in stock, will be supplied by the 3oard at prescribed charges or at
no cost.
(b) Unpublished Information.— Requests
for
access
to
un
published information of the Board should be sent in the first instance
to the appropriate Federal Reserve Bank, which will forward them to
the Board when necessary.
Any such request shall be signed by the
person making it or his duly authorized agent and shall, in so far as
practicable, clearly, completely, and concisely state the full name and
address of the person making the request, the facts involved, the
purposes for which any unpublished information requested will be
used if made available, the nature of such person’s interest in the
matter, and the reasons for which such request should be granted.
SECTION 261.4—APPLICATIONS, REQUESTS, AND SUBMITTALS
All applications, requests, and submittals should be submitted in
the manner prescribed in the Board’s Rules of Procedure as contained
in § 262.2(b) of this Chapter.
SECTION 261.5—SUBPOENAS
(a)
Advice by Person Served.— I f
any person, whether or not an
officer or employee of the Board or of a Federal Reserve Bank, has
unpublished information of the Board and in connection therewith
is served with a subpoena, order, or other process requiring his personal
attendance as a witness or the production of documents or information
in any proceeding, he shall promptly advise the Board of such service
and of all relevant facts, including the documents and information
requested and any facts which may be of assistance to the Board in
determining whether such documents or information should be made
available; and he shall take action at the appropriate time to advise
RULES REGARDING INFORMATION
19
the court or tribunal which issued the process and the attorney for
the party at whose instance the process was issued, if known, of the
substance of these rules.
(b)
Appearance by Person Served.— Except
as the Board has
authorized disclosure of the relevant information, or except as provided
in 18 U.S.C. 1906, any person who has unpublished information of the
Board and is required to respond to a subpoena or other legal process
shall attend at the time and place therein mentioned and respectfully
decline to produce any documents or disclose any information or give
any testimony with respect thereto, basing his refusal upon these rules.
If, notwithstanding, the court or other body orders the production of
any documents, disclosure of any information, or giving of any
testimony, the person having such unpublished information of the
Board shall promptly report the facts to the Board for such action as
the Board may deem appropriate.
RULES OF PROCEDURE
CONTENTS
P rocedure for R e g u l a t io n s ................................................................
(a) Notice
23
........................................................................
23
( b ) Public Participation .................................................
23
(c) Preparation of Draft and Action by Board.............
23
( d ) Effective d a te s ...........................................................
23
( e ) Exceptions as to Notice or Effective Date............
23
A pp l ic a t io n s an d R equests .............................................................
24
(a) Form
..........................................................................
24
( b ) Procedure ...................................................................
24
(c) Comments by Staff....................................................
24
( d ) Notice of Granting or Denial....................................
25
(e) Action at Board’s Initiative......................................
25
(f) Bank Holding Company and Merger Applications
25
A djudication w i t h F o r m a l H earing
26
A ppearance an d P rac t ic e .........
27
F o r m s ............................................................................................................
27
21
RULES OF PROCEDURE
RULES OF PROCEDURE *
(12 CFR Part 262)
As revised effective December 15, 1961
and
As amended effective January 12, 1962
SECTION 262.1—PROCEDURE FOR REGULATIONS
(a)
Notice.— Notice
of
proposed
regulations
of
the
Board
or
amendments thereto will be published in the Federal Register, except
as specified in paragraph (e) of this section or otherwise excepted by
law.
Such notice will include a statement of the terms of the proposed
regulation or amendment and a description of the subjects and issues
involved; but the giving of such notice does not indicate Board
approval of any feature of any such proposal.
The notice will also
include a reference to the authority for the proposed regulation or
amendment and a statement of the time, place and nature of public
participation.
(b) Public Participation.— The
usual method of public submission
of data, views or arguments shall be in writing. Although submittals or
requests may be sent directly to the Board, it is preferable that they
be sent to the appropriate Federal Reserve Bank, which will forward
them to the Board.
The locations of the 12 Federal Reserve Banks
and the boundaries of the Federal Reserve districts are shown in
Appendix A to the Board’s Rules of Organization.
(c)
Preparation of Draft and Action by Board.— In
the light of
consideration of all relevant matter presented or ascertained, the Legal
Division, in collaboration with other Divisions of the Board’s staff, will
prepare drafts of proposed regulations or amendments, and the staff
will submit them to the Board. The Board will take such action as it
deems appropriate in. the public interest. Any other documents that
may be necessary to carry out any decision by the Board in the matter
will be prepared by the Legal Division, in collaboration with the other
Divisions of the staff.
(d )
Effective Dates.— Any
regulation or amendment thereto issued
by the Board will be published not less than thirty days prior to the
effective date thereof, except as specified in paragraph (e) of this sec
tion or as otherwise excepted by law.
(e) Exceptions as to Notice or Effective Date.— In certain situa
tions, notice and public participation with respect to proposed regula
tions may
be impracticable, unnecessary,
contrary to the
public
interest, or otherwise not required in the public interest, or there may
be reason and good cause in the public interest why the effective date
* The text corresponds to the Code of Federal Regulations, Title 12, Chapter II, Part 262; cited
as 12 CFR Part 262.
23
RULES OF PROCEDURE
24
should not be deferred for 30 days.
The reason or reasons in such
cases usually are that such notice, public participation, or deferment
of effective date would prevent the action from becoming effective as
promptly as necessary in the public interest, would permit speculators
or others to reap unfair profits or to interfere with the Board’s actions
taken with a view to accommodating commerce and business and with
regard to their bearing upon the general credit situation of the country,
would provoke other consequences contrary to the public interest,
would unreasonably interfere with the Board’s necessary functions
with respect to management or personnel, would not aid the persons
affected, or would otherwise serve no useful purpose.
The following
may be mentioned as some examples of situations in which advance
notice or deferred effective date, or both, will ordinarily be omitted in
the public interest: The review and determination of discount rates
established by Federal Reserve Banks, and changes in general require
ments regarding reserves of member banks, maximum interest rates on
time and savings deposits, or credit for purchasing or carrying securi
ties.
SECTION 262.2—APPLICATIONS AND REQUESTS
(a)
Form.— Any
application for the approval, authority, or permis
sion of the Board of or for any action for which such
approval,
authority, or permission is required by law or regulation of the Board
shall be submitted in accordance with the pertinent form listed in
§ 262.5. Copies of any such form and details regarding information to
be included therein may be obtained from any Federal Reserve Bank.
Any application or request for which no form is listed in § 262.5 should
be signed by the person making the application or request 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 or request should be granted.
Requests
for unpublished information of the Board should be submitted as
provided in § 261.3(b) of this Chapter.
(b) Procedure.—Any
applications or request should be sent to
the Federal Reserve Bank of the district in which the person making
the application or request is located, and that Bank will forward it to
the Board when necessary.
When appropriate, the Reserve Bank will
make an investigation and report the relevant facts, with its recom
mendation, to the Board.
The locations of the 12 Federal Reserve
Banks and the boundaries of the Federal Reserve districts are shown
in Appendix A to the Board’s Rules of Organization.
(c)
Comments by Staff.—In
the light of consideration of all
RULES OF PROCEDURE
25
relevant matter presented or ascertained, the appropriate divisions of
the Board’s staff will prepare and submit to the Board comments on
the subject.
The Board in due course will take such action as it
deems appropriate in the public interest.
Such documents as may be
necessary to carry out any decision by the Board are prepared by the
Board’s staff.
(d) Notice of Granting or Denial.— Prompt
notice will be given
to the applicant of the granting or denial in whole or in part of any
written application or request.
In the case of denial, except in affirming
a prior denial or where the denial is self-explanatory, such notice will
be accompanied by a simple statement of procedural or other grounds.
(e)
Action at Board’s Initiative.— When
the Board, without receiv
ing an application or request, takes action with respect to any matter
as to which opportunity for hearing is not required by statute or Board
regulation, similar procedure will be followed, including investigations,
reports, and recommendations by the Board’s staff and by the Reserve
Banks, where appropriate.
(/) Bank Holding Company and Merger Applications.— In
addi
tion to procedures applicable under other provisions of this Part, the
following procedures are applicable in connection with the Board’s
consideration of applications under section 3 of the Bank Holding
Company Act of 1956 (12 U.S.C. 1842), hereafter called holding com
pany applications, and of applications under section 18(c)
Federal Deposit Insurance Act
merger applications.
of the
(12 U.S.C. 1828), hereafter called
Unless otherwise indicated, these procedures
apply to both types of applications.
(1) The Board issues each week a list that identifies holding
company and merger applications received during the preceding
week.
Notice of receipt of each holding company application is
published in the Federal Register as provided in § 222.4(e)
(2)
of this Chapter [Regulation Y ] .
(2) If a hearing is required by law or if the Board determines
that a hearing for the purpose of taking evidence is desirable, the
Board issues an order for such a hearing, and notice thereof is
published in the Federal Register.
Any such hearing is conducted
by a hearing examiner or hearing officer in accordance with the
Board’s Rules of Practice for Formal Hearings (Part 263 of this
Chapter) and, unless otherwise ordered by the Board, is public.
(3) In any case in which a formal hearing is not ordered by the
Board, the Board may afford the applicant and other properly
interested
persons
(including
Governmental
agencies)
an
opportunity to present views orally before the Board or its
designated
representative.
Unless
otherwise
ordered
by
the
26
RULES OF PROCEDURE
Board, any such oral presentation of views is public and notice of
such public proceeding is published in the Federal Register.
Participants in any oral presentation of views are allowed reason
able periods of time for presentation of their views.
(4) The Board’s action on each application is embodied in an
Order that indicates the voting of members of the Board and is
accompanied by a Statement of the reasons for the Board’s action.
Both the Order and accompanying Statement are released to the
press.
Normally, the Statement is issued at the time of issuance
of the Order; where this is not practicable, the Statement is issued
as promptly as possible after issuance of the Order.
Each such
Order is published in the Federal Register; and the Order and
Statement are published in the next succeeding issue of the Federal
Reserve Bulletin.
(5) Each Order of the Board approving an application includes,
as a condition of such approval, a requirement that the transaction
approved shall not be consummated within seven calendar days
following the date of such Order, except in emergency or other
situations as to which the Board determines that such a require
ment would not be in the public interest.
Each Order approving
an application also includes, as a condition of approval, a require
ment that the transaction approved shall be consummated within
three months and, in the case of acquisition by a holding com
pany of stock of a newly organized bank, a requirement that such
bank shall be opened for business within six months.
(6) After action by the Board on an application, the Board
will not grant any request for reconsideration of its action, unless
the request presents relevant facts that, for good cause shown, were
not previously presented to the Board, or unless it otherwise
appears to the Board that reconsideration would be appropriate.
(7) In any case in which the Board orders a public hearing
or a public oral presentation of views, as soon as practicable
following publication in the Federal Register of notice of such
public proceeding, the application shall be available for inspection
by the public except such portions thereof as to which the Board
finds that disclosure would not be in the public interest.
SECTION 262.3—ADJUDICATION W ITH FORMAL HEARING
In connection with adjudication with respect to which a hearing is
required by law or is ordered by the Board, the procedure shall be as
set forth in Part 263 of this Chapter, entitled “ Rules of Practice for
Formal Hearings.” Among such adjudications are those relating to:
RULES OF PROCEDURE
27
Termination of a bank’s membership in the Federal Reserve System,
removal of a bank official under section 30 of the Banking Act of 1933,
revocation of a voting permit of a holding company affiliate, suspen
sion of a member bank from the use of the credit facilities of the Fed
eral Reserve System pursuant to section 4 of the Federal Reserve Act,
issuance of a cease and desist order under section 11 of the Clayton Act,
and, in certain situations, actions with respect to applications pursuant
to the Bank Holding Company Act of 1956.
SECTION 262.4—APPEARANCE AND PRACTICE
Appearance and practice before the Board in all matters shall be
governed by § 263.1 of this Chapter.
SECTION 262.5—FORMS
The following forms, which are available at the Federal Reserve
Banks, shall be used for the purposes indicated:
Form
30
Application for Federal Reserve Bank Stock— Organizing
30a
Application for Federal Reserve Bank Stock— Nonmember
56
State Bank Converting into National Bank
Application for Adjustment in Holdings of Federal Reserve
National Bank
Bank Stock (Except by Mutual Savings Banks)
56a
Application of Mutual Savings Bank for Adjustment in Hold
61
Application of National Bank for Trust Powers
61b
Supplementary Application of National Bank for Additional
70
Trust Powers
Application for Prior Written Consent to Effect a Merger or
ings of Federal Reserve Bank Stock
Other Transaction Pursuant to Section 18(c) of the Federal
Deposit Insurance Act (Resulting Bank to be a State Member
Bank)
83
Application for Membership in the Federal Reserve System
83A
Application for Membership in the Federal Reserve System
83B
Application for Membership in the Federal Reserve System
(Cover Sheet)
(State Banks except Mutual Savings Banks)
(Mutual Savings Banks Authorized to Purchase Stock in
Federal Reserve Bank)
83C
Application for Membership in the Federal Reserve System
(Mutual Savings Banks Not Permitted to Subscribe for Stock
in Federal Reserve Bank)
RULES OF PROCEDURE
28
Form
83D
Application for Stock in the Federal Reserve Bank (Mutual
Savings Bank Admitted to Membership upon Deposit of A p
propriate Amount with Federal Reserve Bank and Now Per
mitted to Subscribe for Federal Reserve Bank Stock under
Laws under Which Organized)
83E
Certificate of Directors and Cashier
86
Application for Cancellation of Federal Reserve Bank Stock
— Liquidating Member Bank
87
Application for Cancellation of Federal Reserve Bank Stock
— Insolvent Member Bank
105
Report of Condition of State Member Bank
105e
(Form 1 0 5 e -l)— Report of Condition of State Member Bank
107
Report of Earnings and Dividends of State Member Bank
107b
Report of Earnings and Dividends of State Member Bank
150
Application for Approval of Reservation of Title of a Cor
(Publisher’s Copy)
(Calendar Year)
(6-M onth Period)
poration Proposed to be Organized under the Terms of Section
2 5(a ) of the Federal Reserve Act
151
152
Articles of Association— Banking Corporations Authorized to
D o Foreign Banking Business under Section 25(a ) of the Fed
eral Reserve Act.
Organization Certificate— Banking Corporation Authorized
to D o Foreign Banking Business under Section 25 (a) of the
Federal Reserve Act
220
Report of an Affiliate or Holding Company Affiliate of a
Member Bank
220a
Report of an Affiliate or Holding Company Affiliate of a
240
Report of Member Firm of a National Securities Exchange
314
Report of Condition by Foreign Banking Corporation (Semi
Member Bank (Publisher’s Copy)
annual)
414
Computation of Reserve to be Carried with Federal Reserve
Bank by Member Bank
728
Report of Securities Credit Extended by Lender Other than a
Bank or Broker
P -l
Application for a Voting Permit under Section 5144, Revised
Statutes (Holding Company Affiliate)
P -2
Exhibit C— Resolution of Board of Directors or Other G ov
P -3
Exhibit L— Agreement to Permit Examinations
erning Body of Applicant
RULES OF PROCEDURE
29
Form
P -4
P -5
Exhibit N — Authorization to Furnish Information
Exhibit P— Agreement by Holding Company Affiliate of State
Member Bank to Accept Provisions of Section 5144, Revised
Statutes
P-6
Exhibit Q— Agreement by Holding Company Affiliate
(of
State Bank Applying for Membership in Federal Reserve
System)
to Accept Provisions of Section
5144, Revised
Statutes
T -l
Agreement, Resolution, Certificate— to Qualify under Section
T -2
Agreement, Resolution, Certificate— to Qualify under Sec
8(a ) of the Securities Exchange Act of 1934
tion 8(a ) of the Securities Exchange Act of 1934 (Bank with
Principal Place of Business outside 50 States of United
States)
Y -2
Application for Prior approval of acquisition of Bank Shares
Pursuant to Section 3 (a ) (2) of the Bank Holding Company
Act of 1956
Y -2 A
Certificate of Directors or Other Governing Body Authorizing
Application Pursuant to Section 3 (a ) (2) of the Bank Holding
Company Act of 1956
Y -5
Registration Statement of Bank Holding Company Pursuant
to Section 5 (a ) of the Bank Holding Company Act of 1956
Y -6
Annual Report of Bank Holding Company Pursuant to the
Bank Holding Company Act of 1956
RULES OF PRACTICE FOR FORMAL HEARINGS
CONTENTS
S ec.
263.1. A p p e a r a n c e a n d P r a c t i c e B e f o r e t h e B o a r d ........................................ ... 33
S ec.
263.2. H e a r in g s f o r t h e P u r p o s e o f T a k i n g E v i d e n c e ..................................... 33
S ec.
263.3. C o n t i n u a n c e s , C h a n g e s , E x t e n s i o n s o f T i m e ..................................... 36
S ec.
263.4. C l o s i n g o f H e a r i n g ; F i l i n g o f T r a n s c r i p t ...................................... ... 36
S ec.
263.5. P ro p o se d F i n d i n g s a n d C o n c l u s i o n s o f L a w ...................................... ... 36
S ec.
263.6. H e a r in g E x a m i n e r ’s R e p o r t a n d R e c o m m e n d e d D e c i s i o n ............ ... 37
S ec.
263.7. E x c e p t i o n s ............................................................................................................. ... 37
S ec.
263.8. M o t i o n s
S ec.
263.9. B r i e f s ........................................................................................................................ ... 38
S ec.
263.10. O r a l A r g u m e n t .................................................................................................. ... 39
S ec.
263.11. F i l i n g P a p e rs, D o c k e t , C o m p u t a t io n o f T i m e ......................................39
S ec.
263.12. S e r v ic e o f P a p e r s ................................................................................................ ...40
S ec.
263.13. F o r m a l R e q u ir e m e n t s as t o P a p e rs F i l e d .................................................40
..................................................................................................................... 37
31
RULES OF PRACTICE
RULES OF PRACTICE FOR FORMAL HEARINGS*
(12 CFR Part 263)
As revised effective December 15, 1961
SECTION 263.1—APPEARANCE AND PRACTICE BEFORE THE BOARD
(a) N o register of attorneys or agents who may practice before the
Board is maintained and no application for admission to such practice
is required.
Any person desiring to appear before or transact business
with the Board in a representative capacity shall make known to the
Secretary of the Board in writing the capacity in which he proposes
to appear.
He may be required to file a power of attorney with the
Board evidencing his authority to act in such capacity and to show
to the satisfaction of the Board that he is properly qualified.
( b ) Any person appearing before or transacting business with the
Board in a representative capacity, or desiring so to act, may, for
cause sufficient in the judgment of the Board, be suspended or dis
barred from so doing.
(c) Contemptuous conduct at any hearing before the Board, any
member thereof, or a hearing examiner, by any person, including a
person appearing in a representative capacity, shall be ground for
exclusion from any such hearing or for such further period as the
Board may prescribe.
SECTION 263.2—HEARINGS FOR THE PURPOSE OF TAKING EVIDENCE
(a) Hearings for the purpose of taking evidence shall be held as
ordered by the Board and any such hearing will ordinarily be held
before and conducted by a duly designated hearing examiner.
How
ever, the Board may, in its discretion, order such hearings to be held
before the Board, one or more of its members, or, where permitted by
law, a duly designated hearing officer; and hearings so held shall be
subject to the same procedure as that applicable to hearings before a
hearing examiner, except that the Board and members thereof are not
subject under the law to the requirements regarding separation of func
tions prescribed by section 5(c) of the Administrative Procedure Act
(5 U.S.C. 1 0 0 4 (c)), and, with respect to hearings held before the Board
or one or more of its members, the hearing examiner’s report referred
to in § 263.6 and the related exceptions and briefs referred to in § 263.7
will be omitted.
(b) Whenever a hearing is ordered by the Board, notice of such
hearing shall be given to the party or parties to the proceeding by
* The text corresponds to the Code of Federal Regulations, Title 12, Chapter II, Part 263; cited
as 12 CFR Part 283.
33
RULES OF PRACTICE
34
the Secretary of the Board or such other person as the Board may
designate for the purpose.
Such notice shall be given by serving a
copy of the Order for Hearing in accordance with § 263.12 a reason
able time in advance of the hearing.
Unless otherwise ordered by
the Board, notice of any hearing shall be given general circulation by
publication in the Federal Register and, where practical, by release
to the public press.
In any proceeding, the Board may make amend
ments to the Order for Hearing.
(c) All such hearings shall be private and shall be attended only
by parties and their representatives or counsel, representatives of the
Board, witnesses, and other persons having an official interest in the
proceedings: Provided, however, That, on written request by a party
or representatives of the Board, or on the Board’s own motion, the
Board, unless prohibited by law, may permit other persons to attend
or may order the hearing to be public.
In connection with any such
hearing or proceeding related thereto, the Board may designate as
Board counsel an attorney from its staff or other attorney who shall
represent the Board.
For the purposes of these Rules, any attorney
so designated is referred to as “ Board counsel.”
In case of adjudica
tion other than initial licensing proceedings, neither Board counsel
nor any officer or employee of the Board who has engaged in the per
formance of any investigative or prosecuting function in the case, or
a factually related case, may participate in or advise as to the hear
ing examiner’s recommended decision or the Board’s decision, except
as witness or counsel in such hearing or related proceeding.
Proceed
ings with respect to applications for initial licenses shall include, but
not be limited to, applications for Board approval under the Bank
Holding Company Act of 1956. In such proceedings, Board counsel
shall represent the Board in a nonadversary capacity for the purpose
of developing for the record information relevant to the issues to be
determined by the hearing examiner and the Board.
(d) All such hearings shall be stenographically reported and a
transcript thereof shall be made which shall be a part of the record
of the proceeding.
Transcripts will be supplied at prescribed rates
to a party to the proceeding or to any person applying therefor if the
Board has ordered the hearing to be public.
(e) A hearing examiner may at any time withdraw if he deems
himself disqualified; and, upon filing of a timely and sufficient affidavit
of personal bias or disqualification of the hearing examiner, the Board
will determine the matter as a part of the record and decision in the
case.
(/) Except as permitted by the Administrative Procedure Act, the
hearing examiner shall not consult any person or party on any fact
RULES OF PRACTICE
35
in issue except after notice and opportunity for all parties to par
ticipate, nor shall he be responsible to or subject to the supervision
or direction of any officer, employee, or agent of the Board engaged
in the performance of investigative or prosecuting functions.
{g) The hearing examiner shall regulate the course of the hearing
and in connection therewith shall have authority to conduct prehear
ing conferences, administer oaths and affirmations, rule upon offers
of proof and receive relevant evidence, rule on motions, dispose of
procedural requests or similar matters, hold conferences for the settle
ment and simplification of the issues by consent of the parties, certify
any question to the Board (at his discretion or at the Board’s discre
tion) for its consideration and disposition, and take other action con
sistent with applicable rules or regulations of the Board, the Admin
istrative Procedure Act, and other requirements of law.
( h ) Any oral or documentary evidence may be received, except that
irrelevant, immaterial, or unduly repetitious evidence may be ex
cluded by the hearing examiner.
Unless otherwise permitted by the
hearing examiner, written exhibits will not be received in evidence
unless offered in duplicate.
A copy of each exhibit offered must be
furnished to each of the parties at the hearing or at such other time
as the hearing examiner may fix for the exchange of exhibits.
(i ) Objections to the admission or exclusion of evidence shall be in
short form, stating the grounds of objections relied upon; and the
transcript shall not include argument or debate thereon except as
ordered by the Board or the hearing examiner.
Rulings on such ob
jections shall be a part of the transcript except as the Board may
otherwise require with respect to a particular ruling.
N o exception
to any such ruling need be noted before the hearing examiner in order
to urge the same in the consideration of the matter by the Board.
(j) The Board or the hearing examiner may call for the production
of further evidence upon any issue, and, upon appropriate notice, the
hearing examiner may reopen any hearing at any time prior to his
report or the Board may reopen any hearing at any time prior to
entry of its order disposing of the matter.
( k ) Subpoenas, when, authorized by law,1 requiring the attendance
of witnesses or requiring the production of documentary evidence will
be issued only by the Board, or such person as the Board may
designate for this purpose.
Application may be made either to the
Secretary of the Board or to the person so designated by the Board.
Such application shall be in writing and shall state, as definitely as
1 The Board is presently authorized by law to issue subpoenas only in connection with investi
gations instituted pursuant to paragraph 7, sec. 25 of the Federal Reserve Act (12 U.S.C. 603).
36
RULES OF PRACTICE
practicable, the reasonable scope of the evidence sought (reasonably
identifying any document desired) and the facts to be proved thereby,
in sufficient detail to indicate the materiality and relevance thereof.
(I) Witnesses summoned by the Board at the request of a party
or of Board counsel will be paid the same fees and mileage that are
paid to witnesses in the courts of the United States.
Such payments
shall be made by the party at whose instance the witnesses appear.
SECTION 263.3—CONTINUANCES, CHANGES, EXTENSIONS OF TIM E
Except as otherwise expressly provided by law, the Board may by
the Order for Hearing or otherwise provide time limits different from
those specified in these Rules, may on its own motion or for cause
shown change or extend any time limits prescribed by these Rules
or an Order for Hearing, and may continue or adjourn any hearing.
Each hearing shall begin at the time and place ordered by the Board,
except that, where a hearing examiner has been designated to con
duct a hearing, the time and place for beginning such hearing may,
for good cause shown, be changed by the hearing examiner.
There
after, the hearing may be successively adjourned to such time and
place as may be ordered by the Board or by the hearing examiner.
SECTION 263.4—CLOSING OF HEARING: FILING OF TRANSCRIPT
(a) The record of the hearing shall be closed by announcement to
that effect by the hearing examiner when the taking of evidence has
been concluded.
In the discretion of the hearing examiner, the record
may be closed as of a future specified date in order to permit the
admission into the record, under circumstances determined by the
hearing examiner, of exhibits to be prepared.
(b) After the close of the hearing, the transcript thereof shall be
filed forthwith by the hearing examiner with the Secretary of the
Board.
Notice of such filing shall be given by the Secretary to all
parties to the proceeding.
SECTION 263.5—PROPOSED FINDINGS AND CONCLUSIONS OF LAW
Within 15 days after the date of notice of filing of the transcript
with the Secretary of the Board, or within such reasonable time there
after as may be allowed by the hearing examiner, any party or Board
counsel may submit to the hearing examiner proposed findings and
conclusions of law, with supporting briefs or memoranda of law.
In
lieu of proposed findings and conclusions of law, and within such time
as the hearing examiner shall allow, Board counsel may submit com
ments in respect to the evidence of record or proposed findings and
conclusions of law submitted by any party.
Copies of any such pro
37
RULES OF PRACTICE
posed findings, conclusions, briefs, memoranda of law, statements, or
comments shall be furnished to other parties and to Board counsel
as promptly as practicable.
All such proposed findings, conclusions,
or other such submissions shall be a part of the record.
SECTION 263.6—HEARING EXA M IN E R ’S REPORT AND RECOM
MENDED DECISION
(a) Following the expiration of the time allowed for filing proposed
findings and conclusions or comments of Board counsel, the hearing
examiner shall prepare and file with the Secretary of the Board his
report and recommended decision.
Such report and recommended
decision shall contain findings and conclusions, with the reasons or
basis therefor, upon all material issues of fact or law.
( b ) The hearing examiner’s report and recommended decision shall
be forthwith served on all parties and on Board counsel by the Secre
tary of the Board or such other person as the Board may designate
for the purpose.
(c) The report and recommended decision of the hearing examiner
shall become a part of the record.
SECTION 263.7—EXCEPTIONS
(a) Within 15 days after date of service of the hearing examiner’s
report and recommended decision, any party or Board counsel may
file exceptions thereto, to his failure to follow a proposed finding or
conclusion, to the admission or exclusion of evidence, or to a ruling
of the hearing examiner; and within such period he may file a brief
in support of his exceptions.
Within 5 days following the date of
service of such exceptions and briefs, any party or Board counsel may
file a brief in opposition. A copy of such exceptions and briefs shall
be forthwith served on each party and on Board counsel. Exceptions
shall be argued orally only as allowed by the Board.
(b) Objections to the recommended decision of the hearing exam
iner or to his failure to follow a proposed finding or conclusion not
saved by exception filed pursuant to this section will be deemed to
have been abandoned and may be disregarded.
Exceptions not briefed
in accordance with this section and § 263.9 may be regarded by the
Board as waived.
SECTION 263.8—MOTIONS
(a)
All motions made subsequent to the designation of a hearing
examiner and before the filing with the Board of the hearing exam
iner’s report and recommended decision shall be addressed to and ruled
upon by the hearing examiner and may be stated orally upon the record
unless otherwise directed by the Board or hearing examiner.
A t all
38
RULES OF PRACTICE
other times motions shall be addressed to the Board in written form
and filed with the Board in accordance with the requirements of
§ 263.11.
Written motions shall state with particularity the order or
relief sought and the grounds therefor.
(6)
Within 10 days after service of any written motion, or within
such other period of time as may be fixed by the Board or hearing
examiner, any party or Board counsel may file a written answer or
objection to such motion.
The moving party shall have no right to
reply, except as permitted by the Board or the hearing examiner.
(c) No oral argument will be heard on motions except as otherwise
directed by the Board or hearing examiner.
Written memoranda or
briefs may be filed with motions or objections or answers to motions,
stating the points and authorities relied upon in support of the posi
tion taken.
( d ) The hearing examiner shall pass upon all motions properly ad
dressed to him and upon such other motions as the Board may direct,
except that, if the hearing examiner finds that a prompt decision by
the board on a motion is essential to the proper conduct of the proceed
ing, he may refer such motion to the Board for decision.
The Board
shall pass upon all motions properly submitted to it for decision.
(e) All motions and answers or objections thereto and rulings
thereon shall become part of the record. Rulings of a hearing ex
aminer on any motion may not be appealed to the Board prior to
its consideration of the hearing examiner’s report and recommended
decision except by special permission of the Board, but they shall be
considered by the Board in reviewing the record. Requests to the
Board for special permission to appeal from such rulings of the hearing
examiner shall be filed promptly, in writing, and shall briefly state
the grounds relied on.
The moving party shall immediately serve a
copy thereof on each party.
(/) Unless otherwise ordered by the Board, or the hearing examiner,
the hearing shall continue pending the determination of the motion /
by the Board.
SECTION 263.9—BRIEFS
(a)
All briefs shall be confined to the particular matters in issue.
Each exception or proposed finding or conclusion which is briefed
shall be supported by a concise argument and by citation of such
statutes, decisions, and other authorities, and by page references to
such portions of the record, as may* be relevant.
If the exception
relates to the admission or exclusion of evidence, the substance of
the evidence admitted or excluded shall be set forth in the brief with
appropriate references to the transcript.
RULES OF PRACTICE
(6)
39
Except as provided in § 263.7, within 10 days after service of
an original brief, any party or board counsel may file a reply brief,
which shall be confined to matters in the original brief of the op
posing party.
Copies of any brief or reply brief shall be filed, and
service thereof made, in the manner prescribed in § 263.12.
(c)
Briefs not filed on or before the time fixed in these Rules, or
such other time as may be fixed by the hearing examiner, will be
received only upon special permission of the Board.
SECTION 263.10—ORAL ARGUMENT
Upon written request of any party or of Board counsel made within
the period of time allowed in § 263.7 for the filing of exceptions and
briefs, or on its own initiative, the Board may, in its discretion, allow
oral argument before the Board or one or more members thereof.
Oral
argument shall be limited to a party or his representative and Board
counsel, unless otherwise permitted by the Board.
SECTION 263.11—FILING PAPERS, DOCKET. COMPUTATION OF TIME
(a)
All reports, exceptions, motions, briefs, and other papers re
quired to be filed with the Board in any proceeding shall be filed with
the Secretary of the Board.
The Order for Hearing may provide for
the number of copies of papers to be filed.
Any such papers may be
sent to the Secretary by mail or express but must be received by him
in the office of the Board in Washington, D . C., within the time limit,
if any, for such filing.
(£>) Unless and until otherwise ordered by the Board, the Order
for Hearing, the transcript of record, proposed findings or conclusions
and briefs in support thereof, the report of the hearing examiner, ex
ceptions thereto, and briefs in support of or in opposition to such
exceptions, and other papers which are filed in connection with any
hearing shall not be made public, and shall be for the confidential
use only of the Board, appropriate members of the Board’s staff,
parties, and counsel.
(c)
The Secretary shall maintain a docket in connection with each
hearing.
(e?) In computing any period of time prescribed or allowed by these
Rules or by order of the Board, the day of the act, event, or default
after which the designated period of time begins to run is not to be
included.
The last day of the period so computed is to be included,
unless it is a Saturday, Sunday, or a legal holiday in the District of
Columbia, in which event the period runs until the end of the next
day which is not a Saturday, Sunday, or holiday in the District of
RULES OF PRACTICE
40
Columbia.
Intermediate Saturdays, Sundays, and holidays shall be
included in the computation.
A half-holiday shall be considered as
other days and not as a holiday.
SECTION 263.12—SERVICE OF PAPERS
(a) The Board will serve all orders, notices, reports, and other
papers issued by it when service thereof is required, and reports filed
pursuant to § 263.6.
Every other paper requiring service, including
motions, proposed findings and conclusions, exceptions and briefs,
shall be served on any party to a proceeding by the party filing the
same.
( b ) Service shall be made by personal service on the party or his
attorney of record, by registered mail addressed to the party or his
attorney of record, or by other appropriate means specified by the
Board.
Service by registered mail shall be deemed to be made as of
the date of receipt by the person addressed.
SECTION 263.13—FORMAL REQUIREMENTS AS TO PAPERS FILED
(а) All papers filed under these Rules shall be typewritten, mimeo
graphed, or printed.
(б) All papers shall be signed by the party filing the same, or his
duly authorized agent or attorney, or Board counsel and, except in
the case of Board counsel, must show the address of the signer.
(c) All papers filed shall include at the head thereof, or on a title
page, the name of the Board, the names of the parties, and the subject
of the particular paper or pleading.
F E D E R AL R E SE R VE B ANK O F N E W YORK
Fiscal Agent of the United States
Circular No. 5152
£ February 14, 1962 J
OFFERING OF TWO SERIES OF TREASURY BILLS
l,200,000,000 of 90-Day Bills, Additional Amount, Series Dated November 24,1961, Due May 24,1962
(To Be Issued February 23, 1962)
),000,000 of 181-Day Bills, Dated February 23,1962, Due August 23,1962
To A ll Incorporated Banks and Trust Companies, and Others
Concerned, in the Second Federal Reserve D istrict:
Following* is the text of a notice issued by the Treasury Department, released for publication today at
4 p.m., Eastern Standard time:
The Treasury Department, by this public notice, invites
tenders for two series of Treasury bills to the aggregate r nount
of $1,800,000,000, or thereabouts, for cash and in exchange for
Treasury bills maturing February 23, 1962, in the amount of
$1,700,583,000, as follow s:
90-day bills (to maturity date) to be issued February 23,
1962, in the amount of $1,200,000,000, or thereabouts,
representing an additional amount of bills dated N o
vember 24, 1961, and to mature May 24, 1962, originally
issued in the amount of $600,696,000, the additional and
original bills to be freely interchangeable.
181-day bills, for $600,000,000, or thereabouts, to be dated
February 23, 1962, and to mature August 23, 1962.
The bills of both series will be issued on a discount basis
under competitive and noncompetitive bidding as hereinafter
provided, and at maturity their face amount will be payable
without interest. They will be issued in bearer form only, and
in denominations of $1,000, $5,000, $10,000, $50,000, $100,000,
$500,000 and $1,000,000 (maturity value).
mitting tenders will be advised of the acceptance or rejection
thereof. The Secretary of the Treasury expressly reserves the
right to accept or reject any or all tenders, in whole or in part,
and his action in any such respect shall be final. Subject to
these reservations, noncompetitive tenders for $200,000 or less
for the additional bills dated November 24, 1961 (90 days remain
ing until maturity date on May 24, 1962) and noncompetitive
tenders for $100,000 or less for the 181-day bills without stated
price from any one bidder will be accepted in full at the
average price (in three decimals) of accepted competitive bids
for the respective issues. Settlement for accepted tenders in
accordance with the bids must be made or completed at the
Federal Reserve Bank on February 23, 1962, in cash or other
immediately available funds or in a like face amount of
Treasury bills maturing February 23, 1962. Cash and exchange
tenders will receive equal treatment. Cash adjustments will be
made for differences between the par value of maturing bills
accepted in exchange and the issue price of the new bills.
Banking institutions generally may submit tenders for ac
count of customers, provided the names of the customers are set
forth in such tenders. Others than banking institutions will not
be permitted to submit tenders except for their own account.
Tenders will be received without deposit from incorporated
banks and trust companies and from responsible and recognized
dealers in investment securities. Tenders from others must be
accompanied by payment of 2 percent of the face amount of
1 reasury bills applied for, unless the tenders are accompanied
by an express guaranty of payment by an incorporated bank
or trust company.
The income derived from Treasury bills, whether interest
or gain from the sale or other disposition of the bills, does not
have any exemption, as such, and loss from the sale or other
disposition of Treasury bills does not have any special treat
ment, as such, under the Internal Revenue Code of 1954. The
bills are subject to estate, inheritance, gift or other excise
taxes, whether Federal or State, but are exempt from all taxa
tion now or hereafter imposed on the principal or interest
thereof by any State, or any of the possessions of the United
States, or by any local taxing authority. For purposes of taxa
tion the amount of discount at which Treasury bills are
originally sold by the United States is considered to be interest.
Under Sections 454(b) and 1221(5) of the Internal Revenue
Code of 1954 the amount of discount at which bills issued
hereunder are sold is not considered to accrue until such bills
are sold, redeemed or otherwise disposed of, and such bills are
excluded from consideration as capital assets.
Accordingly,
the owner of Treasury bills (other than life insurance com
panies) issued hereunder need include in his income tax return
only the difference between the price paid for such bills,
whether on original issue or on subsequent purchase, and the
amount actually received either upon sale or redemption at
maturity during the taxable year for which the return is made,
as ordinary gain or loss.
Immediately after the closing hour, tenders will be opened
tr
eral Reserve Banks and Branches, following which
public announcement will be made by the Treasury Department
ot the amount and price range of accepted bids. Those sub
Treasury Department Circular No. 418 (current revision)
and this notice prescribe the terms of the Treasury bills and
govern the conditions of their issue. Copies of the circular
may be obtained from any Federal Reserve Bank or Branch.
Tenders will be received at Federal Reserve Banks and
Branches up to the closing hour, one-thirty p.m., Eastern
Standard time, Monday, February 19, 1962. Tenders will not
be received at the Treasury Department, Washington. E^ach
tender must be for an even multiple of $1,000, and in the
case of competitive tenders the price offered must be expressed
on the basis of 100, with not more than three decimals, e.g.,
99.925. Fractions may not be used. It is urged that tenders
be made on the printed forms and forwarded in the special
envelopes which will be supplied by Federal Reserve Banks
or Branches on application therefor.
I his Bank will receive tenders for both series up to 1 :30 p.m., Eastern Standard time, Monday,
.February 19, 1962, at the Securities Department of its Head Office and at its Buffalo Branch. Tender forms for
the respective series are enclosed. Please use the appropriate forms to submit tenders and return them in an
envelope marked ‘ Tender for Treasury Bills.” Tenders may be submitted by telegraph, subject to written"
confirmation; they may not be submitted by telephone. Payment for the Treasury bills cannot be made by credit
through the Treasury Tax and Loan Account. Settlement must be made in cash or other immediately available funds
or m maturing Treasury bills.
Results of the last offering of Treasury bills (91-day bills to be issued February 15, 1962, representing
an a c ltional amount of bills dated November 16, 1961, and maturing May 17, 1962; and 182-day bills dated
e ruary 15, 1J62, maturing August 16, 1962) are shown on the reverse side of this circular.
A lfred H a ye s,
President.
/>ZcaAe n o t e th a t t h e c u r r e n t o f f e r in g is f o r 9 0 -d a y a n d 1 8 1 -d a y T r e a s u r y b ills.
( over)
RESULTS OF LAST OFFERING OF TREASURY BILLS (TW O SERIES TO BE ISSUED
FEBRUARY 15, 1962)
Range of Accepted Competitive Bids
91-Day Treasury Bills
Maturing May 17, 1962
Price
H ig h ........................ ........
Low ........................ ........
Average .................. ........
182-Day Treasury Bills
Maturing August 16,1962
Approx. equiv.
annual rate
99.317
99.298
99.303
Price
98.519°
98.500
98.508
2.702%
2.777%
2.759% 1
Approx. equiv.
annual rate
2.929%
2.967%
2.952% 1
a Excepting two tenders totaling $900,000.
1
On a coupon issue of the same length and for the same amount invested, the return on these bills would provide
yields of 2.82 percent for the 91-day bills, and 3.04 percent for the 182-day bills. Interest rates on bills are quoted in
terms of bank discount, with the return related to the face amount of the bills payable at maturity rather than the
amount invested, and their length in actual number of days related to a 360-day year. In contrast, yields on certificates,
notes, and bonds are computed in terms of interest on the amount invested, and relate the number of days remaining in
an interest payment period to the actual number of days in the period, with semiannual compounding if more than one
coupon period is involved.
(80 percent of the amount of 91-day bills
bid for at the low price was accepted.)
(15 percent of the amount of 182-day bills
bid for at the low price was accepted.)
Total Tenders Applied for and Accepted (By Federal Reserve Districts)
91-Day Treasury Bills
Maturing May 17, 1962
Accepted
Applied for
District
B o sto n .......................... ..........
New York .................. ..........
$
22,138,000
1,524,495,000
182-Day Treasury Bills
Maturing August 16,1962
$
22,038,000
Applied for
$
13,027,000
Accepted
$
9,327,000
793,675,000
956,280,000
443,280,000
8,893,000
Philadelphia ................ ..........
27,250,000
12,250,000
13,893,000
Cleveland .................... ..........
33,041,000
32,741,000
15,290,000
15,290,000
Richmond .................... ..........
11,936,000
11,936,000
1,440,000
1,440,000
Atlanta ........................ ..........
23,331,000
23,031,000
8,835,000
8,835,000
C h ica g o ........................ ..........
201,524,000
152,924,000
99,020,000
42,320,000
St. L o u is ...................... ..........
28,013,000
22,013,000
8,494,000
7,069,000
Minneapolis ................ ..........
21,693,000
19,593,000
5,748,000
4,748,000
Kansas City ................ ..........
48,829,000
34,829,000
7,324,000
7,324,000
Dallas .......................... ..........
24,883,000
23,683,000
8,890,000
6,890,000
San Francisco ............ ..........
62,528,000
51,628,000
56,524,000
44,824,000
Total ............ ..........
$2,029,661,000
$1,194,765,000
$600,240,000
$1,200,341,000b
b Includes $214,966,000 noncompetitive tenders accepted at the average price of 99.303.
c Includes $48,639,000 noncompetitive tenders accepted at the average price of 98.508.
@FedFRASER