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FEDERAL RESERVE BANK OF NEW YORK r Circular No. 7 0 0 7*1 1~ September 26, 1972 J AMENDED INTERPRETATION OF REGULATION Y Nonbanking Activities T o A ll Bank H olding Companies, and O th ers Concerned, in the Second Federal R eserve D istric t: Our Circular No. 6937, dated May 8, 1972, contained the text of an interpretation by the Board of Governors of the Federal Reserve System of its Regulation Y, listing activities the Board of Governors has determined are not so closely related to banking or managing or controlling banks as to be a proper incident thereto. Since that time, the Board has added the activities of management consulting, property management, and operation of savings and loan associations to that list. Accordingly, printed below is the text of an amended interpretation of Regulation Y, incorporating the additional activities. A lfred H ay es, President. [Reg. Y] 12 CFR PART 225— BANK HOLDING COMPANIES Nonbanking Activities The Board of Governors amends § 225.126 by revis ing paragraph (a ) and adding new paragraphs ( f ) , ( g ) , and ( h). In paragraph (a ) the words “ Equity funding” are changed to read “ Insurance premium funding” to avoid confusion from the claimed right to a service mark by a company engaged in this activity. Paragraphs ( b) , ( c) , ( d) , and ( e), as originally pub lished May 4, 1972 (37 F.R. 9022), have not been changed. As amended, §225.126 reads as follows: § 225.126 A c tiv itie s n o t clo sely re la te d to banking. Pursuant to section 4 ( c ) ( 8 ) of the Bank Holding Company Act and § 225.4(a) of Regulation Y, the Board of Governors has determined that the following activities are not so closely related to banking or man aging or controlling banks as to be a proper incident thereto: (a ) Insurance premium funding— that is, the com bined sale of mutual funds and insurance. (b ) Underwriting life insurance that is not sold in connection with a credit transaction by a bank holding company, or a subsidiary thereof. (c ) Real estate brokerage (see 1972 Fed. Res. Bul letin 428). (d ) Land development (see 1972 Fed. Res. Bulletin 429). (e) Real estate syndication. (f) Management consulting (see 1972 Fed. Res. Bul letin 571). (g ) Property management (see 1972 Fed. Res. Bul letin 652). (h ) Operation of savings and loan associations* (see 1972 Fed. Res. Bulletin 717). By order of the Board of Governors of the Federal Reserve System, September 20, 1972. * As indicated in its statement announcing this action, published in the Federal Register of August 10, 1972 (37 F.R. 16133), this activity may be the subject of further consideration by the Board.
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