Full text of Federal Reserve Bank of New York Circulars : Amendments to Rules of Procedure and Rules Regarding Delegation of Authority

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F E D E R A L R E S E R V E BANK
O F NEW YORK

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November 6, 1978

Amendments to Rules of Procedure
and Rules Regarding Delegation of Authority

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

The following is quoted from the text of a statement issued by the Board o f Governors of the
Federal Reserve System:

The Federal Reserve Board today [October 23, 1978] announced approval of several technical changes
affecting registration of bank holding companies or applications for their expansion.
The Board revised its rules of procedures for handling requests for reconsideration of Board decisions and
for the handling of requests for hearings and comments on applications.
At the same time, the Board, in its continuing effort to reduce the reporting burdens of financial
institutions it supervises, eliminated the requirement for new bank holding companies to register with the Board
within 180 days by use of certain forms (F.R. Y-5 and Y-5(a)). The Board will collect essential data for
registration purposes by means of six questions about the company’s financial organizational structure that will
be asked in a letter sent to all bank holding companies whose formation the Board has newly approved. Bank
holding companies must receive prior Board approval of their organizational structure before beginning
operations. The registration process will be completed in the annual report that must be filed with the Board
by all bank holding companies (form F.R. Y-6).

Enclosed is a copy of amendments to the Rules of Procedure and Rules Regarding Delegation of
Authority of the Board of Governors, effective October 19, 1978, reflecting the Board's actions in this
matter. Any questions regarding these amendments may be directed to our Domestic Banking Applica­
tions Department (Tel. No. 212-791-5861).
PA U L A. V O LCK ER.

President.

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Board of Governors of the Federal Reserve System
RULES OF PROCEDURE
RULES REGARDING DELEGATION OF AUTHORITY

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AM ENDM ENTS
(.effective October 19, 1978)

[D o ck e t

No. R-0184]

PART 262— RULES OF PROCEDURE
PART 265— RULES REGARDING
DELEGATION OF AUTHORITY
Reconsideration of Certain Board
Actions
AGENCY: B oard of G o vernors of th e
F ed era l R eserve S ystem .
A CTION : F in al rule.
SUM M ARY: In o rd er to ex p e d ite and
fa c ilita te p erfo rm an ce of c e rta in of its
fu n ctio n s, th e B oard of G o vernors has
in stitu te d a p rocedure by w hich re ­
q uests for rec o n sid eratio n of B oard
actio n on c e rta in ap p lica tio n s wall re ­
ceive p ro m p t a tte n tio n , an d has dele­
gated to its G en e ra l C ounsel th e a u ­
th o rity to d eterm in e w h e th e r or n o t
rec o n sid eratio n sh o u ld be g ran te d .
E F F E C T IV E DATE: O ctober 19, 1978.
FOR
FURTHER
IN F O R M A T IO N
CO N TA CT:
R o b e rt E. M annion, A ssociate G e n ­
eral C ounsel, 202-452-3274 or Bronw en M. M ason, S en io r A tto rn ey ,
202-452-3564. Legal Division, B oard
of G o v ern o rs of th e F ed era l R eserve
S ystem . W ash in g to n , D.C. 20551.
S U P PL E M E N T A R Y IN F O R M A T IO N :
T h e B oard has th e a u th o rity u n d e r
sev eral s ta tu te s and re g u la tio n s p ro ­
m u lg a te d th e re u n d e r to req u ire th a t
com panies m ake ap p licatio n s for th e
B o a rd s p rio r approval of c e rta in
tra n sa c tio n s involving b an k in g o rg a n i­
zations. T h e B oard's rules of p ro ce­




any actio n ta k e n by it on an ap p lica­
tio n upon receip t by th e S ecre tary cm
th e B o ard of a w ritte n req u e st fo r re ­
co n sid eratio n from any p a rty to such
ap p licatio n , on or before th e 15th day
a f te r th e effective d ate of th e B o a rd ’s
actio n . S u ch req u e st sh o u ld specify
th e reaso n s w hy th e B oard sh o u ld re ­
co n sid er its action, and p re se n t rele­
v a n t facts t h a t for good cause show n,
were n o t previously p rese n ted to th e
B oard. W ith in 10 days of receip t of
su ch a req u e st, th e G en e ra l C ounsel,
actin g p u rs u a n t to d eleg ated a u th o rity
(12 C F R 265.2(b)(7)), sh all d eterm in e
w h e th e r or n o t th e req u est for reco n ­
sid e ra tio n sh o u ld be g ran ted , an d sh a ll
n o tify all p a rtie s to th e ap p licatio n
o rally by te le p h o n e of th is d e te rm in a ­
tio n w ith in 10 days. S u ch n o tific atio n
will be co n firm ed p ro m p tly in w riting.
In th e exercise of th is a u th o rity , th e
G en e ra l C ounsel sh a ll co n fer w ith th e
D irec to rs of o th e r in te re ste d Divisions
of th e B o ard or th e ir designees. N o t­
w ith sta n d in g th e foregoing, th e B oard
m ay. on its own m o tio n if it deem s re ­
co n sid eratio n a p p ro p ria te , elect to re ­
con sid er its actio n w ith resp e ct to any
ap p licatio n , an d th e p a rtie s to su ch
ap p lica tio n sh a ll be n o tifie d by th e
S e c re ta ry of th e B oard of its electio n
as provided above. If it is d eterm in e d
t h a t th e B o ard sh o u ld reco n sid er its
actio n w ith resp ect to an ap p licatio n ,
su ch actio n will be sta y ed an d will n o t
be final u n til th e B oard h as acted on
th e ap p lica tio n up o n reco n sid eratio n .
§:!()2.8 Applications.
If a p p ro p ria te , n otice of rec o n sid er­
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atio n of an ap p licatio n will be p u b ­
(i)
R econsideration o f certain Board lish ed p ro m p tly in th e F e d e r a l R e g i s ­
ter.
actions. T h e B oard m ay reco n sid er

d u re p re se n tly provide th a t upon re ­
q u est th e B oard m ay reco n sid er its ac­
tio n s on ap p licatio n s u n d er sections 3
and 4 of th e B an k H olding C om pany
Act an d th e B ank M erger Act, b u t do
n o t specify a tim e period w ith in w hich
su c h a re q u e st is to be su b m itte d or
w ithin w hich th e B o ard will n o rm ally
act on req u e sts for reco n sid eratio n . In
o rd e r to estab lish p ro ced u res to be fo l­
lowed by p arties seeking rec o n sid er­
atio n of B oard actio n on ap p licatio n s
th e B oard considers, an d in o rd er to
insure th a t su ch req u e sts for reco n sid ­
e ra tio n are given p ro m p t a tte n tio n ,
th e B oard has, by th e in sta n t am en d ­
m ent, in stitu te d p ro ced u res governing
req u e sts for rec o n sid eratio n of B oard
actions w ith resp ect to ce rtain ap p lica­
tions.
T h e provisions of 5 U.S.C. 553 r e la t­
ing to notice and public p a rtic ip a tio n
an d d efe rred effective d ate ere n o t fo l­
lowed in co n n ectio n w ith th e ad o p tio n
of th e se am en d m e n ts because th e
rules involved h e re in are p ro ced u ral in
n a tu re and do n o t c o n s titu te a su b ­
sta n tiv e ru le su b je ct to th e re q u ire ­
m e n ts of such section. T h e am en d ­
m e n t is effective im m ediately.
In o rd er to in stitu te th e se p ro ce­
dures, 12 C F R P a r t 262 is am en d ed by
addin g new § 262.3(i) by red esig n atin g
th e su b se q u en t sections accordingly
and by w ith d raw in g § 262.3(g)(5). T h e
new § 262.3(i) is to read as follow':

For the Rules of Procedure to be complete, retain:
1) March 1, 1973 revision of the Rules.
2) Amendment effective October 19, 1977.
3) This slip sheet.
For the Rules Regarding Delegation of Authority to be complete, retain:
1) Printed pamphlet, as amended September 1, 1977.
2) Amendments effective September 27, 1977, October 5, 1977,
October b, 1977, November 16, 1977, January 26, 1978,
May 17, 1978, and August 2, 1978.
3) This slip sheet.
PRINTED IN NEW YORK FROM FEDERAL REGISTER . VOL. 43, NO. 208

(Over)

In addition, in order to accomplish
the delegation provided for above, 12
CFR Part 265 is amended by adding
§ 265.2(b) (7) to read as follows:
§ 265.2 Specific functions delegated to
Board employees and to Federal Re­
serve Banks.
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(b) The General Counsel of the
Board (or in the General Counsel’s absence, the Acting General Counsel) is
a ut 1lorized:
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(7) pursuant to § 262.3 (i) of this chap­
ter (Rules of Procedure) ro determine
whether or not to grant a request for
reconsideration of any action taken by
the Board with respect to an applica­
tion as provided in that part.

[Docket No. R-0184]
PART 262— RULES OF PROCEDURE
Sub mission of Comments on
Applications and Requests for
Hearing

AGENCY: Board of Governors of the
Ft deral R» serve System
AC HON: Final rule.
SUMMARY Tn. order to expedite and
acilitate performance of certain of its
functions, the B<)ard of C!<)verriors has
instituted procedures to govern its
consideration of comments and re­
quests for hearing on certain applica­
tions required by law
EFFECTIVE DATE: October 19, 1978,
FOR FURTHER INFORMATION
CONTACT:
Robert E Mannion, Associate Gent...U Counsel, 202-452-3274 or Bronwen M Mason, Senior Attorney,
202 452-3564, Legal Division, Board
of G vemors of the Federal Reserve
System, Washington, D C, 20551.




ter notice with respect to applications
filed under sections 3 or 4 of the Bank
Holding Company Act or, in the case
of other applications, the date speci­
fied in the newspaper notice with re­
spect to such applications, or where no
such date is prescribed, on or before
the 13th day after the date such
notice is first published. Similarly, the
Board will consider comments on an
application from the Attorney Gener­
al or a banking supervisory authority
to which notification of receipt of an
application has been given, only if
such comment is received by the Sec­
retary of the Board within 30 days of
the date of the letter giving such noti­
fication. Any comment on an applica­
tion that requests a hearing must in­
clude a statement of why a written
presentation would not suffice in lieu
of a hearing, identifying specifically
any questions of fact that are in dis­
pute and summarizing the evidence
that would be presented at a hearing.
In every case where a timely comment
or request for hearing is received as
provided herein, a copy of such com­
ment or request shall be forwarded
promptly to the applicant for its re­
sponse. The Board will consider the
applicant’s response only if it is in
writing arid sent to the Secretary of
the Board on or before the 10th day
after the date of the letter by which it
is forwarded to the applicant. At the
same time it transmits its response to
the Board, the applicant should trans­
mit a copy of its response to the
person or supervisory authority
making such comment or requesting a
hearing. Notwithstanding the forego­
ing, the Board may, in its sole discre­
§ 262.3 Applications.
tion and without notifying the parties,
take
into consideration the substance
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of comments with respect to an appli­
(d) Submission of comments and re­ cation, (but not requests for hearing)
quests for hearing. The Board will con­ that are not received within the time
sider a comment or request for hear­ periods provided herein.
ing with respect to an application only
Board of Governors of the Federal
if it is in writing and is sent to the Sec­ Reserve System, October 19. 1918.
retary of the Board or the appropriate
T heodore E. A llison ,
Federal Reserve Bank on or before the
Secreta ry of the Boa rd.
date prescribed in the F ederal R e gi s ­

SUPPLEMENTARY INFORMATION:
The Board has the authority under
several statutes and regulations pro­
mulgated thereunder to require that
companies make application for the
Board’s prior approval of certain
transactions involving banking organi­
zations. While the public, as well as
certain supervisory agencies, have gen­
erally been afforded an opportunity to
comment on certain applications, such
comments have not been handled uni­
formly in the past, and consideration
of untimely comments has often re­
sulted in extraordinary delays in the
processing of applications. In order to
effectuate an orderly procedure for
the processing of applications, and to
insure that comments or requests for a
hearing with respect to applications
are handled in a uniform manner, the
Board has, by the instant amendment,
instituted procedures governing the
( onsideration of comments and re­
quest.- for hearing with respect to ap­
plications that it considers.
The provisions of 5 U.S.C. 553 relat­
ing to notice and public participation
and deferred effective date are not fol­
lowed in connection with the adoption
of these amendments because the
rules involved herein are procedural in
nature and do not constitute a sub­
stantive rule subject to the require­
ments of such section. The amend­
ment is effective immediately.
In order to institute these proce­
dures. 12 CFR Part 262 is amended by
a (Iding n e vi § 262.3( d ) a n d rede:51gn a t ing the subsequent sections. The new
§ 262.3(d) is to read as follows: