Full text of Federal Reserve Bank of New York Circulars : 8705. Rules Regarding Delegation of Authority

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FEDERAL RESERVE BANK
OF NEW YORK

Circular No. 8 7 0 5
I December 13, 1979

R U L E S REGARDING D ELEG A TIO N OF AUTHORITY
Amendment and Revised Pamphlet

To All Member Banks and Bank Holding Companies,
and Others Concerned, in the Second Federal Reserve District:

The B o ard of G overnors of the F e d e ra l R eserve Sy stem has am en ded its R u les R e g a rd in g
D elegation of A u th ority in ord er to d eleg ate to the D irector of B a n k in g Su perv isio n and R egulation
the authority to m ake certain exam in ation rep o rts av ailab le to the S e cu rities and E x c h a n g e
C om m ission. A copy of the am endm ent, effective N ovem ber 28, 1979, is enclosed. Q uestions
r e g a rd in g the am en dm en t m ay be directed to our D om estic B a n k in g A p p lication s D ep artm en t (Tel
No. 212-791-5861).
A lso enclosed is a revised copy of the B o a rd ’s “R ules R e g a rd in g D elegation of A u th ority ” in
pam p h let form . The rep rin tin g of the p am ph let w as announced in our C irc u lar No. 8683.




T h o m a s M. T i m l e n ,
First Vice President

December 13, 1979

C O R R E C T I O N

The effective date of the "Rules Regarding Delegation of
Authority" of the Board of Governors of the Federal Reserve System is
corrected to read:




"As amended effective October 24, 1979"

Circulars Division
FEDERAL RESERVE BANK OF NEW YORK

BOARD OF GOVERNORS
of the

FEDERAL RESERVE SYSTEM

R U L E S R E G A R D IN G D E L E G A T IO N O F A U T H O R IT Y

(12 CFR 265)
As amended effective September 21, 1979

Any inquiry relating to this regulation should be addressed to the Federal
Reserve Bank of the Federal Reserve District in which the inquiry arises.







CONTENTS
S ec .

265.1— D elegation

4

(c) The Director of the Division of Bank­
ing Supervision and Regulation........ 7

F unctions Dele ­
gated to B oard M embers
4

(d) The Staff Director for Federal Re­
serve Bank Activities.......................... 8

of

F unctions

G enerally ..............................

S ec .

265.1a— S pecific

(a) Any Board Member designated by
the Chairman....................................... 4

(e) [Reserved] ...............................................

9

(f) Each Federal Reserve Bank....................

9

(b) Any Board member................................

(g) The Director of the Division of Inter­
national Finance................................... 14

4

(c) Any three Board Members designated
from time to time by the Chairman
S ec .

265.2— S pecific

F unctions D ele ­
B oard E mployees
and to F ederal R eserve
B a n k s ........................................ 4

gated to

(a) The Secretary of the Board....................

4

(b) The General Counsel of the Board........

(h) The Director of the Division of Con­
sumer Affairs....................................... 14
(i) The Secretary of the Federal Open
Market Committee............................... 15
S ec . 265.3— R eview of Action at De l e ­
gated L evel .............................. 15

6

STATUTORY AUTHORITY
This regulation is issued under authority of
section 11(k) of the Federal Reserve Act (12
U.S.C. 248(k)), which reads as follows:
Sec. 11. The Board of Governors of the Fed­
eral Reserve System shall be authorized and em­
powered:
*
*
*
*
*
(k) To delegate, by published order or rule
and subject to the Administrative Procedure Act,




any of its functions, other than those relating to
rulemaking or pertaining principally to monetary
and credit policies, to one or more hearing exam­
iners, members or employees of the Board, or
Federal Reserve Banks. The assignment of re­
sponsibility for the performance of any function
that the Board determines to delegate shall be a
function of the Chairman. The Board shall, upon
the vote of one member, review action taken at a
delegated level within such time and in such
manner as the Board shall by rule prescribe.

R U L E S R E G A R D IN G D E L E G A T IO N O F A U T H O R IT Y *

(12 CFR 265)
As amended effective September 21, 1979

SECTION 265.1— DELEGATION OF
FUNCTIONS GENERALLY

Board’s Rules of Practice for Hearings (12 CFR
263) for special permission to appeal from a ruling
of the presiding officer at any hearing conducted
pursuant to such rules on any motion ruled upon by
such presiding officer (provided, that if such special
permission is granted the merits of the appeal shall
thereupon be presented to the Board for decision).
Notwithstanding the provisions of section 265.3
hereof, the denial of such special permission pur­
suant to this paragraph shall be subject to review by
the Board only upon the request of a member of the
Board made within two days following the denial.
No person claiming to be adversely affected by
such denial shall have any right to petition the
Board or any Board member for review or
reconsideration of such action.

Pursuant to the provisions of section 11 (k) of
the Federal Reserve Act (12 U.S.C. 248(k)), the
Board of Governors of the Federal Reserve Sys­
tem delegates authority to exercise those of its
functions described in this Part, subject to the
limitations and guidelines herein prescribed. The
Chairman of the Board of Governors assigns the
responsibility for the performance of such dele­
gated functions to the persons here specified. A
delegee may submit any matter to the Board for
determination if the delegee considers such sub­
mission appropriate because of the importance or
complexity of the matter.

(c)
Any three Board members designated from
time to time by the Chairman (the “ Action Com­

SECTION 265.1a— SPECIFIC FUNCTIONS
DELEGATED TO BOARD MEMBERS

mittee’ ’) are authorized, upon certification by the
Secretary of the Board of an absence of a quorum
of the Board present in person, to act by unani­
mous vote on any matter that the Chairman of
the Board has certified must be acted upon
promptly in order to avoid delay that would be
inconsistent with the public interest, other than
(i) those relating to rulemaking, (ii) those pertain­
ing principally to monetary and credit policies,
and (iii) those for which a statute expressly re­
quires the affirmative vote of more than three
members of the Board. This delegation of author­
ity shall terminate June 30, 1980.

(a) Any Board member designated by the
Chairman is authorized:
(1) Under section (a)(6 ) of the Freedom
of Information Act (5 U.S.C. § 552) and Part
261 of this Chapter (Rules Regarding Availabil­
ity of Information) to review and make a deter­
mination with respect to an appeal of denial of
access to records of the Board made in accord­
ance with the procedures prescribed by the Board.
(2) To approve, after receiving the recom­
mendations of the Director of the Division of
Banking Supervision and Regulation and the Gen­
eral Counsel, amendments to any notice of charges,
proposed order to cease and desist, or temporary
cease-and-desist order, previously approved by the
Board of Governors pursuant to the Financial
Institutions Supervisory Act, 12 U.S.C. §§ 1818(b),
(c) (Federal Deposit Insurance Act, §§ 8(b) and

SECTION 265.2— SPECIFIC FUNCTIONS
DELEGATED TO BOARD EMPLOYEES AND
TO FEDERAL RESERVE BANKS
(a) The Secretary of the Board (or, in the Sec­
retary’s absence, the Acting Secretary) is author­
ized:

(c)).

(b) Any Board member is authorized, when re­
quested by the Secretary of the Board, to act
upon any request to the Board filed with the
Secretary pursuant to section 263.10(e) of the




*This text corresponds to the Code of Federal Regulations,
Title 12, Chapter II, Part 265, cited as 12 CFR 265. The
words “ this Part,” as used herein, mean Rules Regarding
Delegation of Authority.

4

§ 265.2

(1) Under the provisions of Part 261 of this
Chapter, to make available, upon request, infor­
mation in the records of the Board.
(2) Under the provisions of §§ 18(c) and
18(c)(4) of the Federal Deposit Insurance Act (12
U.S.C. 1828(c) and 1828(c)(4)), §§ 3(a) and 4(c)(8)
of the Bank Holding Company Act (12 U.S.C.
1842(a) and 1843(c)(8)) and §§ 225.3(b) and (c),
and §§ 225.4(a) and (b) of Regulation Y (12 CFR
225.3(b) and (c), and 225.4(a) and (b)), to furnish
reports on competitive factors involved in a bank
merger to the Comptroller of the Currency and the
Federal Deposit Insurance Corporation and to ap­
prove applications the Reserve Bank could approve
under subparagraph (20 ) of paragraph (f) of this sec­
tion, except for the fact that condition (ii) of that
subparagraph has not been met because a director or
senior officer of any holding company, bank, or
company to be acquired or retained, involved in the
transaction, is a director of a Federal Reserve Bank
or branch.
(3) Under the provisions of sections 25 and
25(a) of the Federal Reserve Act, section 4(c)( 13)
of the Bank Holding Company Act (12 U.S.C. §
1843), and Part 211 of this chapter (Regulation K),
to grant specific consent to the acquisition, either
directly or indirectly, by a member bank or an Edge
or Agreement corporation, or a bank holding com­
pany of stock of (i) a company chartered under the
laws of a foreign country or in the case of a mem­
ber bank or an Edge or Agreement corporation (ii) a
company chartered under the laws of a State of the
United States that is organized and operated for the
purpose of financing exports from the United States,
and to approve any such acquisition that may ex­
ceed the limitations in section 25(a) of the Federal
Reserve Act based on such a corporation’s capital
and surplus, if all of the following conditions are
met:
(a) the appropriate Reserve Bank recom­
mends approval.
(b) all relevant divisions of the Board’s
staff recommend approval.
(c) no significant policy issue is raised by
the proposal as to which the Board has not ex­
pressed its view.
(d) such acquisition does not result, either
directly or indirectly, in the acquisition by such
bank or corporation of effective control of any
such company except that this condition need




DELEGATION OF AUTHORITY

not be met if ( 1 ) the company is to perform
nominee, fiduciary, or other services incidental to
the activities of a foreign branch or affiliate of
such bank or corporation, or (2 ) the stock is being
acquired by such bank or corporation from its
parent bank or bank holding company, or sub­
sidiary Edge or Agreement corporation, as the
case may be, and such selling parent or subsidiary
holds such stock with the consent of the Board
pursuant to Part 211, of this chapter (Regulation K).
(4) Under the p ro v isio n s of section s
262.2(a) and (b) of the Board’s Rules of Proce­
dure, to extend, when appropriate, the time period
provided for public participation with respect to
proposed regulations of the Board of Governors.
(5) Under the provisions of section 6621 of
the Internal Revenue Code (26 U.S.C. 6621), to
determine and report to the Secretary of Treasury
or his delegate, the average predominant prime
rate quoted by commercial banks to large busi­
nesses.
( 6 ) To grant or deny requests for the ex­
tension of any time period provided in any notice,
order, rule or regulation of the Board relating to
the filing of information, comments, opposition,
briefs, exceptions or other matters, in connection
with any application, request or petition for the
approval, authority, determination, or permission
of, or any other action by the Board sought by
any person. Notwithstanding the provisions of
section 265.3 hereof, no person claiming to be
adversely affected by any action of the Secretary
on any such request shall have the right to peti­
tion the Board or any Board member for review
or reconsideration of such action.
(7) Under the provisions of section 11 (i) of
the Federal Reserve Act (12 U.S.C. § 248(i)) to
conform references to administrative positions or
units in outstanding rules and regulations of the
Board with changes in the administrative structure
of the Board, the Government of the United
States and agencies thereof, and to conform cita­
tions and references in outstanding rules and regu­
lations of the Board with other regulatory or statu­
tory changes adopted or promulgated by the
Board, the Government of the United States and
agencies thereof.
( 8 ) Pursuant to the requirement of the
Privacy Act (5 U .S.C. § 552a(p)), to approve
future Annual Reports on the Privacy Act from

§ 265.2

DELEGATION OF AUTHORITY

conducted for the purposes of determining
the Board of Governors to the Office of Manage­
whether a company engaged in activities of a fi­
ment and Budget for inclusion in the President’s
nancial fiduciary or insurance nature falls within
annual consolidated report to the Congress.
the exemption described therein permitting reten­
(9)
Under the provisions of section 19(j) of
tion or acquisition of control thereof by a bank
the Federal Reserve Act (12 U.S.C. 371b) and
holding company.
§§ 217.4(a) and (d) of Regulation Q (12 C.F.R.
(5) Pursuant to the provisions of Part 261
§§ 217.4(a) and (d)) to permit member banks to
of this chapter, to make available information of
waive the penalty for early withdrawal of a time
the Board of the nature and in the circumstances
deposit in § 217.4(d) (Regulation Q), if all of
described in § 261.6(b) and § 261.7 of that Part.
the following conditions are met:
(6) Pursuant to Part 263.6(d) of this chap­
(i) The President of the United States de­
ter, to designate Board staff attorneys as Board
clares an area a major disaster area or an emer­
counsel in any proceeding ordered by the Board
gency area pursuant to section 301 of the Dis­
to be conducted in accordance with Part 263 of
aster Relief Act of 1974 (42 U.S.C. 5141) and
this chapter.
Executive Order No. 11795 of July 11, 1974.
(7) Pursuant to Part 262.3(i) of this chapter
(ii) A waiver is limited in effectiveness to
(Rules of Procedure) to determine whether or not
depositors suffering disaster or emergency-related
to grant a request for reconsideration of any
losses in the officially designated disaster or
action taken by the Board with respect to an ap­
emergency area.
plication as provided in that Part.
(iii) The appropriate Reserve Bank recom­
(8) To approve provisions of Federal Reserve
mends approval.
Bank operating circulars related to uniform
(iv) All relevant divisions of the Board’s
services.
staff recommend approval.
(c)
The Director of the Division of Banking
(b)
The General Counsel of the Board (or, in Supervision and Regulation (or, in the Director’s
the General Counsel’s absence, the Acting Gen­
absence, the Acting Director) is authorized:
eral Counsel) is authorized:
(1) Under the provisions of the seventh
(1) Under the provisions of section 2(g) of
paragraph of section 9 of the Federal Reserve
the Bank Holding Company Act (12 U.S.C.
Act (12 U.S.C. 325), to select or to approve the
1841(g)), to determine whether a company that
appointment of Federal Reserve Bank examiners,
transfers shares to any of the types of transferees
assistant examiners, and special examiners.
specified therein is incapable of controlling the
(2) Under the provisions of the nineteenth
transferee.
paragraph of section 25(a) of the Federal Reserve
(2) Under the provisions of section 4(c)(8)
Act (12 U.S.C. 625) and § 211.7(c)(i) of this chap­
of the Bank Holding Company Act (12 U.S.C.
ter (Regulation K), to require submission and
1832(c)), to determine that a company engaged in
publication of reports by an “ Edge Act’ ’ corpora­
activities of a financial, fiduciary, or insurance
tion.
nature falls within the exemption described
(3) Under the provisions of section 5 of the
therein permitting retention or acquisition of con­
Banking Holding Company Act (12 U.S.C. 1844),
trol thereof by a bank holding company.
after having received clearance from the Bureau
of the Budget (where necessary) and in accord­
(3) Under the provisions of sections 1101—
ance with the law of Administrative Procedure (5
1103 and section 6158 of the Internal Revenue
U.S.C. 553), to promulgate registration, annual
Code (26 U.S.C. 1101-1103 and 6158), to make
report, and other forms for use in connection with
certifications (prior and final) for Federal tax pur­
the administration of such Act.
poses with respect to distributions pursuant to the
Bank Holding Company Act.
(4) Under the provisions of section 12(g) of
the Securities Exchange Act (15 U.S.C. 78/(g)):
(4) Under the provisions of section 4(c)(8) of
(i)
to accelerate the effective date of a
the Bank Holding Company Act (12 U.S.C.
registration statement filed by a member State
1843(c)(8)) and § 225.4(a) of this chapter (Regu­
bank with respect to its securities;
lation Y), to issue an order for a hearing to be




6

§ 265.2

DELEGATION OF AUTHORITY

(ii) to accelerate termination of the reg­
istration of such a security that is no longer held
of record by 300 persons; and
(iii) to extend the time for filing a reg­
istration statement by a member State Bank.
(5) Under the provisions of section 12(d) of
the Securities Exchange Act (15 U.S.C. 78/(d)),
to accelerate the effective date of an application
by a member State bank for registration of a secu­
rity on a national securities exchange.
(6) Under the provisions of section 12(f) of
the Securities Exchange Act (15 U.S.C. 78/(f)),
to issue notices with respect to an application by
a national securities exchange for unlisted trading
privileges in a security of a member State bank.
(7) Under the provisions of section 12(h) of
the Securities Exchange Act (15 U.S.C. 78/(h)),
to issue notices with respect to an application by
a member State bank for exemption from regis­
tration.
(8) Under the provisions of § 206.5(f) and
(i) of this chapter (Regulation F), to permit the
mailing of proxy and other soliciting materials by
a member State bank before the expiration of the
time prescribed therein.
(9) Under the provisions of §§ 206.41,
206.42, and 206.43 (Instructions as to Financial
Statements 9, 4, and 3, respectively) of this chap­
ter (Regulation F), to permit the omission of
financial statements from reports by a member
State bank and/or to require other financial state­
ments in addition to, or in substitution for, the
statements required therein.
(10) To exercise the functions described in
subparagraph (4) of paragraph (1) of this section
in cases in which the conditions specified therein
as prerequisities to exercise of such functions by
the Federal Reserve Banks are not present or in
which, even though such conditions are present,
the appropriate Federal Reserve Bank considers
that nevertheless it should not take action on the
member bank’s request, and to exercise the func­
tions described in subparagraphs ( 1 ), (2 ), and (7 )
of paragraph (f) of this section in cases in which
the appropriate Federal Reserve Bank considers
that it should not take action to approve the mem­
ber bank’s request.
(11) Under sections 25 and 25(a) of the Fed­
eral Reserve Act and Part 211 of this chapter (Reg­
ulation K), to approve increases and reductions in




the capital stock and amendments to the articles of
association of a corporation organized under section
25(a) and additional investments by a member bank
in the stock of a corporation operating under an
agreement with the Board pursuant to section 25.
(12) To exercise the functions described in
subparagraphs (15)(i) and (ii) of paragraph (f);
and to exercise the functions described in subparagraph (15)(iii) of paragraph (f) in those cases
in which the appropriate Federal Reserve Bank
concludes that, because of unusual considerations,
or for other good cause, it should not take action.
(13) Under the provisions of the seventh
paragraph of section 25 of the Federal Reserve
Act (12 U.S.C. 602), to require submission of a
report of condition respecting any foreign bank
in which a member bank holds stock acquired
under the provisions of § 211.5(b) of this chapter
(Regulation K).
(14) Under the twelfth paragraph of section
13 of the Federal Reserve Act (39 Stat. 754), to
permit any member bank to accept drafts or bills
of exchange drawn upon it for the purpose of
furnishing dollar exchange.
(15) Under the provisions of section 4(b) of
the Federal Deposit Insurance Act (12 U.S.C.
1814(b)), to certify to the Federal Deposit Insur­
ance Corporation that, with respect to the admis­
sion of a State-chartered bank to Federal Reserve
membership, the factors specified in section 6 of
that Act (12 U.S.C. 1816) were considered.
(16) Under the provisions of section
17(A)(c)(2) of the Securities Exchange Act of
1934, as amended (15 U.S.C. 78 q - 1), to accele­
rate the effective date of a registration statement
filed by a member State bank or a subsidiary
thereof, a bank holding company, or a subsidiary
of a bank holding company which is a bank as
defined in section 3(a)(6) of that Act other than a
bank specified in clause (i) or (iii) of section
3(a)(34)(B) of that Act (15 U.S.C. 78c) with re­
spect to its transfer agent activities.
(17) Under the provisions of section 17A
(c)(3)(C) of the Securities Exchange Act of 1934,
as amended, (15 U.S.C. § 78q-l(c)(3)(C)) to with­
draw or cancel the transfer agent registration of
a member State bank or a subsidiary thereof, a
bank holding company, or a subsidiary bank of a
bank holding company that is a bank as defined
in section 3(a)(6) of the Act (other than a bank

7

DELEGATION OF AUTHORITY

§ 265.2

and waiting period requirements for municipal
securities principals and municipal securities rep­
resentatives under Municipal Securities Rulemak­
ing Board Rule G-3, (ii) to grant or deny requests
for a determination that a natural person or
municipal securities dealer subject to a statutory
disqualification is qualified to act as a municipal
securities principal or municipal securities repre­
sentative or municipal securities dealer under
Municipal Securities Rulemaking Board Rule G-4,
and (iii) to approve or disapprove clearing ar­
rangements under Municipal Securities Rulemak­
ing Board Rule G-8 , in connection with the ad­
ministration of Municipal Securities Rulemaking
Board rules for municipal securities dealers for
which the Board is the appropriate regulatory
agency under section 3(a)(34) of the Securities Ex­
change Act of 1934 (15 U.S.C. 78c(a)(34)). (15
U.S.C. 78w and 12 U.S.C. 248.)

specified in clause (i) or (iii) of section 3(a)(34)(B)
of the Act (15 U.S.C. § 78c(3)(a)(34)(B)) that has
filed a written notice of withdrawal with the Board
or upon a finding that such transfer agent is no
longer in existence or has ceased to do business as
a transfer agent.
(18) Under the provisions of §§ 207.2(f),
220.2(e), and 221.3(d) of this chapter (Regulations
G, T, and U, respectively) to approve issuance of
the list of OTC margin stocks and to add, omit,
or remove any stock in circumstances indicating
that such change is necessary or appropriate in
the public interest.
(19) Under the provisions of § 207.4(a)(2)(ii)
of this chapter (Regulation G) to approve repay­
ments of the “ deficiency” with respect to stock
option or employee stock purchase plan credit in
lower amounts and over longer periods of time
than those specified in the regulation.
(20) Pursuant to the provisions of Part 261
of this chapter, to make available reports and
other information of the Board acquired pursuant
to Parts 207, 220, 221, and 224 (Regulations G,
T, U, and X) of the nature and in circumstances
described in § 261.6(a)(2) and (3) of Part 261.
(21) Pursuant to the provisions of section
11(a) of the Federal Reserve Act (12 U.S.C.
248(a)) and sections 17(c), 17(g), and 23 of the
Securities Exchange Act of 1934 (15 U.S.C.
78q(c), 78q(g), and 78w) to issue examination or
inspection manuals, registration, report, agree­
ment, and examination forms, guidelines, instruc­
tions or other similar materials for use in connec­
tion with the administration of sections 7, 8 , 15B,
and 17A(c) of the Securities Exchange Act of
1934 (15 U.S.C. 78g, 78h, 78o-4, and 78q-l).
(22) With the prior concurrence of the ap­
propriate Federal Reserve Bank and the General
Counsel of the Board, to act to refuse an applica­
tion to the Board to stay, modify, terminate or set
aside any effective cease and desist order previ­
ously issued by the Board pursuant to section 8(b)
of the Federal Deposit Insurance Act or any writ­
ten agreement between the Board or the Reserve
Bank and a bank holding company or any non­
banking subsidiary thereof or a State member
bank (12 U.S.C. § 1818(b)).
(23) Pursuant to section 23 of the Securities
Exchange Act of 1934 (15 U.S.C. 78w) (i) to
grant or deny requests for waiver of examination




(24)
To approve a State member bank’s pro­
posed subordinated debt issue as an addition to
the bank’s capital structure if all of the following
conditions are met:
(i) The terms of the proposed debt issue
satisfy the requirements of §§ 204.l(f)(3)(i) and
217.l(f)(3)(i) of this Part (Regulations D and Q)
and the Board’s guideline criteria for approval of
subordinated debt as an addition to capital.
(ii) The appropriate Reserve Bank recom­
mends approval.
(iii) No significant policy issue is raised by
the proposed issue as to which the Board has not
expressed its view.
(d)
The Staff Director for Federal Reserve
Bank Activities or the Staff Director’s designee
is authorized:
(1) To approve
(i) requests of up to $500,000 for each Re­
serve Bank for the purchase or lease of computer
mainframes, if the acquisition is consistent with
the long-range automation plan approved by the
Board of Governors, and
(ii) requests of up to $500,000 for each Re­
serve Bank for purchase or lease of automation
or communication equipment not specifically in­
cluded in the long-range automation plan approved
by the Board of Governors, except computer
mainframes.

8

§ 265.2

DELEGATION OF AUTHORITY

(2) To approve proposed remodeling or reno­
vation of or additions of Reserve Bank or Branch
buildings if the cost is over $500,000, but not
over $ 1 ,000 ,000 , and if the project has been in­
cluded in the capital or operating budget ap­
proved by the Board of Governors.
(3) Under the provisions of the third paragraph
of section 16 of the Federal Reserve Act (12
U.S.C. 413), to apportion credit among the Re­
serve Banks for unfit notes that are destroyed,
giving consideration to the net number of notes
of each denomination that were issued by each
Reserve Bank during the preceding calendar year.
(4) Under the provision of §§ 216.5(b), 216.5(d),
and 216.6 of this chapter (Regulation P), with
respect to Federal Reserve Banks and branches
(i) to require reports on security devices;
(ii) to require special reports; and
(iii) to determine in view of the provisions
of §§ 216.3 and 216.4 whether security devices
and procedures are deficient in meeting the re­
quirements of Part 216, to determine whether
such requirements should be varied in the circum­
stances of a particular banking office, and to re­
quire corrective action.
(5) To review Bank agreements with architects
and other consultants for new construction or
renovation projects over $ 100 ,000 , but not over
$

of First Vice Presidents) in accordance with gen­
erally accepted accounting practices for banks,
except that the following will not be authorized:
(i) reserves for contingencies,
(ii) charge-off of land to below estimated
market value,
(iii) charge-offs of buildings, or special al­
lowances for depreciation that would result in
full depreciation before 40 years after the date
of completion of the structure, and
(iv) write-down of Government securities
below cost, including establishment of a valua­
tion reserve.
(e)

(f)
is authorized as
to a member bank or other indicated organization
for which the Reserve Bank is responsible for re­
ceiving applications or registration statements; as to
its officers under subparagraph (23) of this para­
graph; and as to its own facilities under subpara­
graph (26) of this paragraph:
(1) Under the provisions of the third para­
graph of section 9 of the Federal Reserve Act
(12 U.S.C. 321), section 5155 of the Revised
Statutes (12 U .S.C. 36), and § 208.8 of this
chapter (Regulation H), to approve the establish­
ment by a State member bank of a domestic
branch if the proposed branch has been approved
by the appropriate State authority and if the Re­
serve Bank is satisfied that approval is warranted
after giving consideration to:
(i) the bank’s capitalization in relation to
the character and condition of its assets and to
its deposit liabilities and other corporate responsi­
bilities, including the volume of its risk assets and
of its marginal and inferior quality assets, all con­
sidered in relation to the strength of its manage­
ment;
(ii) the ability of bank’s management to
cope successfully with existing or foreseeable
problems, and to staff the proposed branch with­
out any significant deterioration in the overall
management situation;
(iii) the convenience and needs of the
community;
(iv) the competitive situation (either actual
or potential);

1, 000 , 000 .

(6 ) Within the contingency allowance for a
new building project, to approve individual con­
struction change orders over $500,000, but not
over $ 1 ,000 ,000 .
(7) To exercise supervision over the following
matters relating to Federal Reserve notes:
(i) printing orders and
(ii) contracts for shipment, giving considera­
tion to:
(a) the desirability of maintaining a twoyear reserve supply of $5 and $100 notes and a
one-year supply of $1 notes, and
(b) awarding contracts to the lowest bid­
der determined to be qualified.
(8) To modify the Reserve Bank Accounting
Manual (after considering the views of the Sub­
committee on Accounting Systems, Budgets and
Expenditures of the Committee on Management
Systems and Support Services of the Conference




[Reserved]
Each Federal Reserve Bank

9

DELEGATION OF AUTHORITY

(v) the prospects for profitable operations
of the proposed branch within a reasonable time,
and the ability of the bank to sustain the opera­
tional losses of the proposed branch until it be­
comes profitable; and
(vi) the reasonableness of bank’s invest­
ment in bank premises after the expenditure for
the proposed branch.
(2) Under the provisions of the sixth para­
graph of section 9 of the Federal Reserve Act
(12 U.S.C. 324) and the provisions of section
5199 of the Revised Statutes (12 U.S.C. 60), to
permit a State member bank to declare dividends
in excess of net profits for the calendar year com­
bined with the retained net profits of the preced­
ing two years, less any required transfers to sur­
plus or a fund for the retirement of any preferred
stock, if the Reserve Bank is satisfied that ap­
proval is warranted after giving consideration to:
(i) the bank’s capitalization in relation to
the character and condition of its assets and to its
deposit liabilities and other corporate responsibil­
ities, including the volume of its risk assets and
of its marginal and inferior quality assets, all
considered in relation to the strength of its man­
agement; and
(ii) the bank’s capitalization after payment
of the proposed dividend.
(3) Under the provisions of the tenth para­
graph of section 9 of the Federal Reserve Act
(12 U.S.C. 328), to approve or deny applications
by State banks for waiver of the required six
months’ notice of intention to withdraw from
Federal Reserve membership.
(4) Under the provisions of the eleventh
paragraph of section 9 of the Federal Reserve Act
(12 U.S.C. 329), to permit a State member bank
to reduce its capital stock if its capitalization
thereafter will be:
(i) in conformity with the requirements of
Federal law, and
(ii) adequate in relation to the character
and condition of its assets and to its deposit liabil­
ities and other corporate responsibilities, including
the volume of its risk assets and of its marginal
and inferior quality assets, all considered in rela­
tion to the strength of its management.
(5) Under the provisions of the seventeenth
paragraph of section 9 of the Federal Reserve Act




§ 265.2

(12 U.S.C. 334), to extend the time, for good
cause shown, within which an affiliate of a State
member bank must file reports.
( 6 ) Under the provisions of the seventh
paragraph of section 13 of the Federal Reserve
Act (12 U.S.C. 372), to permit a member bank
to accept commercial drafts in an aggregate
amount at any one time up to 100 per cent of its
capital and surplus.
(7) Under the provisions of section 24A of
the Federal Reserve Act (12 U.S.C. 371 d), to
permit a State member bank to invest in bank
premises in an amount in excess of its capital
stock, if the Reserve Bank is satisfied that ap­
proval is warranted after giving consideration to:
(i) the bank’s capitalization in relation to
the character and condition of its assets and to its
deposit liabilities and other corporate responsibil­
ities, including the volume of its risk assets and
of its marginal and inferior quality assets, all con­
sidered in relation to the strength of its manage­
ment: And provided, That
(ii) upon completion of the proposed in­
vestment, the bank’s aggregate investment (direct
and indirect) in bank premises plus the indebted­
ness of any wholly-owned bank premises subsid­
iary will not exceed 40 per cent of its total capital
funds (including capital notes and debentures)
plus reserves other than valuation reserves.
(8 ) Under the provisions of the ninth para­
graph of section 25(a) of the Federal Reserve
Act (12 U.S.C. 615), to extend the time in which
an “ Edge Act” corporation must divest itself of
stock acquired in satisfaction of a debt previously
contracted.
(9) Under the provisions of the twentysecond paragraph of section 25(a) of the Federal
Reserve Act (12 U.S.C. 628), to extend the period
of corporate existence of an “ Edge Act” corpora­
tion.
(10) Under the provisions of section 5(a) of
the Bank Holding Company Act (12 U .S.C .
1844(a)), to extend the time within which a bank
holding company must file a registration state­
ment.
(11) Under the provisions of section 4(a) of
the Bank Holding Company Act (12 U .S.C .
1843(a)), to extend the time within which a bank

1
0

§ 265.2

holding company must divest itself of interests
in nonbanking organizations.
(12) Under the provisions of section 4(c)(2)
of the Bank Holding Company Act (12 U.S.C.
143(c)), to extend the time within which a bank
holding company must divest itself of interests in
a nonbanking organization acquired in satisfaction
of a debt previously contracted.
(13) Under the provisions of section 5(c)
of the Bank Holding Company Act (12 U.S.C.
1844(c)), to acquire reports under oath to deter­
mine whether a company is complying with the
provisions of such Act and the Board’s regula­
tions promulgated thereunder.
(14) Under the provisions of § 208.11(c) of
this chapter (Regulation H), to extend the time
within which a member bank that has given notice
of intention to withdraw from membership must
surrender its Federal Reserve Bank stock and its
certificate of membership.
(15) Under the provisions of § § 216.5(b),
216.5(d), and 216.6 of this chapter (Regulation
P), with respect to State member banks only:
(i) to require reports on security devices;
(ii) to require special reports; and
(iii) to determine, in view of the provi­
sions of §§ 216.3 and 216.4, whether security
devices and procedures are deficient in meeting
the requirements of Part 216, to determine
whether such requirements should be varied in
the circumstances of a particular banking office,
and to require corrective action.
(16) Under § 208.10(a) of this chapter (Reg­
ulation H), for good cause shown, to extend the
time for publication of reports of condition, such
extensions not ordinarily to be for more than 10
days except in very unusual circumstances beyond
control of the reporting bank.
(17) Under the provisions of § 207.1(b) of
this chapter (Regulation G), to approve applica­
tions for termination of registration by persons
who are registered pursuant to § 207.1(a).
(18) Under the provisions of the second
paragraph of section 25(a) of the Federal Reserve
Act (12 U.S.C. 612), and § 211.3 of this chapter
(Regulation K), to approve amendments to the
Articles of Association of any “ Edge Act” cor­
poration to reflect the following:




DELEGATION OF AUTHORITY

(i) any increase in the capital stock of
such corporation where all additional shares are to
be acquired by existing shareholders;
(ii) any change in the location of the home
office of such corporation within the city where
such corporation is presently located; and
(iii) any change in the number of mem­
bers of the Board of Directors of such corpora­
tion.
(19) Under § 225.4(d) of this chapter (Regu­
lation Y),
(i) to notify a bank holding company that
has informed it of a proposed acquisition of a
going concern that, because the circumstances
surrounding the application indicate that addi­
tional information is required or that the acquisi­
tion should be considered by the Board, the ac­
quisition should not be consummated until spe­
cifically authorized by the Reserve Bank or by
the Board.
(ii) to permit a bank holding company that
has informed it of a proposed acquisition of a
going concern to make the acquisition before the
expiration of the 45-day period referred to in that
paragraph, because exigent circumstances justify
consummation of the acquisition at an earlier
time.
(20) Under § 225.4(b)( 1) of this chapter (Regu­
lation Y), and subject to § 265.3 if a person sub­
mitting adverse comments that the Reserve Bank
has decided are not substantive files a petition
for review by the Board of that decision.
(i) to permit a bank holding company to
engage de novo in activities specified in § 225.4(a)
(or retain shares in a company established de
novo and engaging in such activities) if its eval­
uation of the considerations specified in section
4(c)(8) of the Bank Holding Company Act leads
it to conclude that the proposal can reasonably
be expected to produce benefits to the public.
(ii) to notify a bank holding company that
the proposal should not be consummated until
specifically authorized by the Reserve Bank or by
the Board or that the proposal should be processed
in accordance with the procedures of § 225.4(b)(2).
(iii) to permit a bank holding company to
consummate the proposal before the expiration of
the 45-day period referred to in § 225.4(b)(1).
because exigent circumstances justify consumma­
tion at an earlier time.

§ 265.2

DELEGATION OF AUTHORITY

(vii)
the proposal would involve the acquisi­
(21) Under § 225.4(c)(2) of this chapter (Reg­
ulation Y) to permit or stay a proposed de novo tion by a banking organization that has total
modification or relocation of activities engaged in domestic banking assets of $1 billion or more of a
by a bank holding company on the same basis as de nonbanking organization that appears to have a
novo proposals under subparagraph (20 ) of this significant presence in a permissible nonbanking
activity.2
paragraph.
(23) To set the salaries of its officers below
(22) Under the provisions of § 18(c) of the
the level of First Vice President (including the Gen­
Federal D eposit Insurance Act (12 U .S .C .
1828(c)), §§ 3(a) and 4(c)(8) of the Bank Holding eral Auditor) within guidelines issued by the Board
Company Act (12 U.S.C. 1842(a) and 1843(c)(8)) of Governors.
(24) Under the provisions of the first para­
and §§ 225.3(b) and (c), and §§ 225.4(a) and (b)
graph of section 9 of the Federal Reserve Act
of Regulation Y (12 CFR 225.3(b) and (c), and
225.4(a) and (b)), to approve applications requir­ (12 U.S.C. 325) to approve applications for mem­
ing prior approval of the Board, and under the pro­ bership in the Federal Reserve System if the Re­
visions of § 18(c) (4) of the Federal Deposit Insur­ serve Bank is satisfied with respect to each of the
ance Act (12 U.S.C. 1828(c)(4)), to furnish to the following criteria:
(i) the financial history and condition of
Comptroller of the Currency and the Federal De­
posit Insurance Corporation reports on competitive the applying bank and the general character of its
factors involved in a bank merger required to be management;
approved by one of these agencies, unless one or
(ii) the adequacy of its capital structure
more of the following conditions is present:
in relation to the character and condition of its
(i) a member of the Board has indicated an assets and to its existing and prospective deposit
liabilities and other corporate responsibilities and
objection prior to the Reserve Bank’s action; or
(ii) the Board has indicated that such dele­ its future earnings prospects;
(iii) the convenience and needs of the
gated authority shall not be exercised by the Re­
community to be served by the bank; and
serve Bank in whole or in part; or
(iv) whether its corporate powers are con­
(iii) a written substantive objection to the
sistent with the purposes of the Federal Reserve
application has been properly made; or
(iv) the application raises a significant policy Act and the Federal Deposit Insurance Act.
(25) Under the provisions of section 5(c) of
issue or legal question on which the Board has
the Bank Holding Company Act, as amended (12
not established its position; or
U.S.C. 1844(c)), to grant to a bank holding com­
in formations, bank acquisitions or mergers:
(v) the proposed transaction involves two pany a 90-day extension of time in which to file
an annual report; and for good cause shown an
or more banking organizations:
additional extension of time, not to exceed 90
(a) that rank among a State’s ten largest
days, may be granted.
banking organizations in terms of total domestic
(26) Under the provisions of sections 3 and
banking assets; or
llj of the Federal Reserve Act (12 U.S.C. 521
(b) each of which has more than $10 0
and 248(j)) to undertake remodeling, renovation
million of total deposits in banking offices in the of or addition to its existing buildings or those
same local banking market that, after consumma­ of its branches if the expenditure for any com­
tion of the proposal, would control over 5 per cent pleted project is not over $500,000, and if it has
of total deposits in banking offices in that local
market; or
in nonbank acquisitions:
(vi) the nonbanking activities involved do 2 While other situations may involve the issue of significant
not clearly fall within activities that the Board has presence, the Board regards, as a general guideline, any
designated as permissible for bank holding com­ company that ranks among the 20 largest independent firms
in any industry as having a significant presence.
panies under § 225.4(a) of Regulation Y; or




12

§ 265.2

been included in the capital or operating budget
approved by the Board of Governors.
(27) Under § 211.5(e) of this chapter (Reg­
ulation K) to extend the time in which a member
bank must divest itself of stock or other evi­
dences of ownership in a foreign bank acquired in
satisfaction of a debt previously contracted.
(28) With the prior approval of both the
Director of the Board’s Division of Banking
Supervision and Regulation and the General Coun­
sel of the Board, to enter into a written agree­
ment with a bank holding company or any non­
banking subsidiary thereof or with a State mem­
ber bank concerning the correction of an unsafe
or unsound practice in conducting the business of
such bank holding company, nonbanking sub­
sidiary or State member bank and concerning
the correction of any violation of law, rule or
regulation incident to such an unsafe or unsound
practice. (12 U.S.C. 248(a), 321, 324, 325, 330,
1844; 12 CFR § 208.8).
(29) Under the p ro v isio n s of section
2(a)(5)(D) and 3(a) of the Bank Holding Company
Act (12 U.S.C. 1841(a)(5)(D), 1842(a)), to extend
the time within which a company or a bank must
divest itself of banks shares acquired in satisfac­
tion of a debt previously contracted.
(30) Under the provisions of the Change in
Bank Control Act of 1978 (12 U.S.C. § 1817(j))
and section 225.7 of this chapter (Regulation Y),
with respect to a bank holding company or State
member bank, to determine the informational
sufficiency of notices and reports filed under the
Act, to extend periods for consideration of no­
tices to determine whether a person who is or
will be. subject to a presumption described in sec­
tion 225.7(a) of this chapter should file a notice
regarding a proposed transaction, and, if all the
following conditions are met, to issue a notice of
intention not to disapprove a proposed change in
control:
(i) no member of the Board has indicated
an objection prior to the Reserve Bank’s action.
(ii) all relevant departments of the Reserve
Bank concur.
(iii) if the proposal involves shares of a State
member bank or a bank holding company con­
trolling a State member bank, the appropriate
bank supervisory authorities have indicated that




DELEGATION OF AUTHORITY

they have no objection to the proposal, or no ob­
jection has been received from the appropriate
bank supervisory authorities within the time
allowed by the Act.
(iv)
no significant policy issue is raised by
the proposal as to which the Board has not ex­
pressed its view.
(31) Under the provisions of the twenty-first
paragraph of section 4 of the Federal Reserve
Act (12 U.S.C. 306), to approve the appointment
of assistant Federal Reserve agents (including
representatives or alternate representatives of such
agents).
(32) Under the provisions of the sixteenth
paragraph of section 4 of the Federal Reserve
Act (12 U.S.C. 304), to classify member banks
for the purposes of electing Federal Reserve Bank
class A and class B directors, giving consideration
to:
(i) the statutory requirement that each of the
three groups shall consist as nearly as may be
of banks of similar capitalization, and
(ii) the desirability that every member bank
have the opportunity to vote for a class A or a
class B director at least once every three years.
(33) To increase its operating budget up to 1
per cent of the annual operating budget.
(34) To purchase or lease new automation or
communications equipment, except computer
mainframes, at a cost of up to $ 1 ,000 ,000 , if
included in long-range automation plans and capi­
tal or operating budgets approved by the Board
of Governors.
(35) To set the salary structure for nonofficial
employees within guidelines issued by the Board
of Governors, and to approve payment of salary
above or below established salary ranges for one
year.
(36) To approve payment of separation allow­
ances upon the involuntary termination of em­
ployment of officers below the level of First
Vice President (separation payments made to the
General Auditor may be approved by the Chair­
man of the Board of Directors).
(37) In connection with building projects:
(i) to enter into agreements with architects
and other consultants up to $ 100 ,000;
(ii) to administer the contingency allowance;

DELEGATION OF AUTHORITY

§ 265.2

(iii) within the contingency allowance for a
new building to approve construction change
orders up to $500,000;
(iv) to approve exceptions to Buy American
Policy for construction materials within author­
ized dollar limits; and
(v) to award contracts to other than the
lowest bidder within authorized dollar limits.
(38) To sell real property (prior consultation
with the Director of the Division of Federal Re­
serve Bank Operations is required for any prop­
erty appraised at more than $ 1 ,000 ,000).
(39) To purchase or lease new fixed or oper­
ating equipment, other than automation or com­
munications equipment, costing up to $250,000,
if identified in capital or operating budgets ap­
proved by the Board.
(40) To make changes in territories served by
offices within its district for specific functions.
(41) To extend the employment of officers and
employees, except the President and First Vice
President, for one year beyond mandatory retire­
ment age.
(42) To grant performance cash awards
(i) to Senior Vice Presidents, if approved by
the President, and
(ii) to the General Auditor, if approved by
the Chairman of the Board of Directors.
(43) To extend the time within which a bank
holding company may acquire shares, a new bank
to be acquired by a bank holding company may
be opened for business, or a merger may be con­
summated in connection with an application
approved by the Board, if no material change
that is relevant to the proposal has occurred since
its approval.
(44) To extend the times within which
(i) a State member bank may establish a
domestic branch,
(ii) a member bank may establish a foreign
branch, or
(iii) an “ Edge Act” or “ Agreement” corpo­
ration may establish a branch or agency, if no
material change has occurred in the bank’s (or
corporation’s) general condition since the appli­
cation was approved.
(45) To extend the time within which an
“ Edge Act” or “ Agreement” corporation or a




member bank may accomplish a purchase of stock
that has been authorized by the Board pursuant
to section 25 or 25(a) of the Federal Reserve Act,
if no material change has occurred in the general
condition of the corporation or the member bank
since such authorization.
(46) To extend the time within which Federal
Reserve membership must be accomplished, if no
material change has occurred in the bank’s
general condition since the application was ap­
proved.
(47) To waive the penalty for deficient re­
serves by a member bank, if, after a review of all
the circumstances relating to such deficiency, the
Reserve Bank concludes that waiver of the penalty
is warranted, except that in no case shall a penalty
for deficient reserves be waived if the deficiency
arises out of the bank’s gross negligence or conduct
inconsistent with the principles and purposes of re­
serve requirements.
(g) The Director of the Division of Interna­
tional Finance (or, in the Director’s absence, the
Acting Director) is authorized, under the provi­
sions of the sixth paragraph of section 14 of the
Federal Reserve Act (12 U.S.C. 358) to approve
the establishment of foreign accounts with the
Federal Reserve Bank of New York.
(h) The Director of the Division of Consumer
Affairs (or, in the Director’s absence, the Acting
Director) is authorized:
(1) Pursuant to the provisions of section
11(a) of the Federal Reserve Act (12 U.S.C.
248(a)), sections 108(b), 621(c), and 704(b) of
the Consumer Credit Protection Act (15 U.S.C.
1607(b), 1681s(c) and 1691c(b)), section 305(c)
of the Home Mortgage Disclosure Act (12 U.S.C.
2804(c)), section 18(f)(3) of the Federal Trade
Commission Act (15 U.S.C. 57a(f)(3)), and sec­
tion 808(c) of the Civil Rights Act of 1968 (42
U.S.C. 3608(c)), to issue examination or inspec­
tion manuals, reports, agreement, and examina­
tion forms, guidelines, instructions or other simi­
lar materials for use in connection with:
(i) sections 1 through 709 (excluding sec­
tions 201 through 500) of the Consumer Credit
Protection Act (15 U.S.C. 1601-16910,
(ii) sections 301 through 310 of the Home
Mortgage Disclosure Act (12 U.S.C. 2801-2809),

14

§ 265.2

(iii) sections 18(f)(1 )-(3) of the Federal
Trade Commission Act (15 U.S.C. 57a(f)(l)-(3)),
and
(iv) section 805 of the Civil Rights Act of
1968 (42 U.S.C. 3605); and rules and regulations
issued thereunder.
(2) Pursuant to sections 123, 171(b) and
186(b) of the Truth in Lending Act (15 U.S.C.
1633, 1666(j) and 1667(e)) and the Board’s Regu­
lation Z, (12 CFR Part 226.12), to grant, but not
deny or revoke, exemptions to States from the re­
quirements of:
(i) Chapter
2 (15 U.S.C. 1631-1644),
where State law imposes substantially similar re­
quirements and there is adequate provision for
enforcement,
(ii) Chapter
4 (15 U.S.C. 1666), where
State law imposes substantially similar require­
ments or gives greater protection to the consumer
and there is adequate provision for enforcement,
and,
(iii) Chapter 5 (15 U.S.C. 1667), where
State law imposes substantially similar require­
ments or gives greater protection and benefit to
the consumer, and there is adequate provision for
enforcement.
(3) Pursuant to section 703(b) of the Con­
sumer Credit Protection Act (15 U.S.C. 1691b(b)),
to call meetings of and consult with the Consumer
Advisory Council established under that section,




DELEGATION OF AUTHORITY

to approve the agenda for such meetings, and to
accept any resignation for Consumer Advisory
Council members.
(i) The Secretary of the Federal Open Market
Committee (or, in the Secretary’s absence, the
Deputy Secretary) is authorized:
To approve for inclusion in the Board’s annual
report to Congress, records of policy actions of
the Federal Open Market Committee.
SECTION 265.3—REVIEW OF ACTION
AT DELEGATED LEVEL
Any action taken at a delegated level shall be
subject to review by the Board only if such re­
view is requested by a member of the Board either
on the member’s own initiative or on the basis of
a petition for review by any person claiming to
be adversely affected by the action. Any such peti­
tion for review must be received by the Secretary
of the Board not later than the fifth day after the
date of such action. Notice of any such review
shall be given to the person with respect to whom
such action was taken and be received by such
person not later than the close of the tenth day
following the date of such action. Upon receipt
of such notice, such person shall not proceed
further in reliance upon such action until such
person is notified of the outcome of review thereof
by the Board.

Board of Governors of the Federal Reserve System
RULES REGARDING DELEGATION OF AUTHORITY
AMENDMENT
(effective November 28, 1979)

Disclosure of Reports of Examination Under the 1975
Amendments to the Securities Exchange Act of 1934
[Docket No. R-0261f\

Board of Governors of the Federal
Reserve System.
ACTION: Final rule.
SUM M ARY: This amendment delegates to the
Director of the Division of Banking Supervision
and Regulation authority to make certain reports
available to the Securities and Exchange
Commission. This delegation will simplify
procedures now followed by the Board.
E F F E C T IV E D A TE: November 28, 1979.
A G EN C Y :

FO R F U R T H E R INFORM ATION CONTACT:

Stephen L. Siciliano, Senior Counsel, (202-4523920), Legal Division, Board of Governors of the
Federal Reserve System, Washington, D.C. 20551.
S U P P L E M E N T A R Y IN FO RM A TIO N : The
purpose of this amendment is to delegate to the
Director of the Board’s Division of Banking
Supervision and Regulation authority to make
reports of examination of transfer agents,
clearing agencies and municipal securities
dealers subject to the Board’s supervisory
jurisdiction available to the Securities and
Exchange Commission pursuant to section 17(a)
(3) of the Securities Exchange Act of 1934, as
amended. The Board is required by the Act to
make such reports of examination available to the
Commission upon request so that it might carry
out its regulatory responsibilities under that
statute. This delegation will simplify procedures
now followed by the Board in processing such
requests from the Commission. To accomplish this
delegation, section 265.2(c) of the Board’s Rules
Regarding Delegation of Authority is amended by
addition of a new subsection (25), as set forth
below.

 [Enc. Cir. No. 8705]


The provisions of section 553 of Title 5, United
States Code, relating to notice and public
participation and to deferred effective dates, are
not followed in connection with the adoption of
section 265.2(c) (25) because the rule involved
therein is procedural in nature and accordingly
does not constitute a substantive rule subject to the
requirements of such section.
Effective November 28, 1979, 12 C.F.R. §
265.2(c) is amended by adding a new paragraph
(25) to read as follows:
SECTION 265.2-SPECIFIC FUNCTIONS
DELEGATED TO BOARD EMPLOYEES AND
TO FEDERAL RESERVE BANKS
*

*

*

(c) The Director of the Division of Banking
Supervision and Regulation (or, in the
Director’s absence, the Acting Director) is
authorized:
*

*

*

(25) Under the provisions of section 17(c) (3)
of the Securities Exchange Act of 1934, as
amended, to make available upon request to
the Securities and Exchange Commission
reports of examination of transfer agents,
clearing agencies and municipal securities
dealers for which the Board is the appropriate
regulatory agency for use by the commission in
the exercise of its supervisory responsibilities
under that statute.
By order of the Board of Governors of the
Federal Reserve System, November 28, 1979.

For these Rules to be complete, retain:
1) Pamphlet amended “effective September 21, 1979”.
2) Correction notice, dated December 13, 1979,
indicating that the effective date of the pamphlet
is October 24, 1979.
3) This slip sheet.
PRINTED IN NEW YORK