Full text of Federal Reserve Bank of New York Circulars : [Correction to Proposed Amendment to Regulation Y]

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July 10, 1990

To the Addressee:
On June 13, 1990, Circular No. 10352 was issued
announcing a proposed amendment by the Board of Governors of the
Federal Reserve System to its Regulation Y (Bank Holding
Companies and Change in Bank Control) regarding the leasing of
personal property by bank holding companies.

Comment on the

Board's proposal was invited by July 16.
Subsequently, the Board of Governors published in the
Federal Register a correction to that proposal, the text of which
has been reprinted on the reverse side of this notice.
Comments on the proposal should still be submitted by
July 16, and may be sent to the Board of Governors, as set forth
in the notice, or to our Domestic Banking Applications Division.




Circulars Divison
FEDERAL RESERVE BANK OF NEW YORK

(OVER)




FEDERAL RESERVE SYSTEM
12CFR Part 225
[Regulation Y; Docket No. R-0694]

Leasing Personal Property; Correction
Board of Governors of the
Federal Reserve System.
a c t i o n : Notice of proposed rulemaking;
correction.
agency:

s u m m a r y : The document corrects a
notice of proposed rulemaking which
appeared in the Federal Register on June
1.1990 (55 FR 22348).

FOR FURTHER INFORMATION CONTACT:

Scott G. Alvarez, Assistant General
Counsel (202/452-3583), Thomas M.
Corsi, Attorney (202/452-3275), or
Donna R. Nordenberg, Attorney (202/
452-3281), Legal Division: or Sidney M.
Sussan, Assistant Director (202/4522638), Division of Banking Supervision
and Regulation, Board of Governors. For
the hearing impaired
Telecommunication Device for the Deaf
(TDD), Eamestine Hill or Dorothea
Thompson (202/452-3544).
The following correction is made to
FR Doc. 90-12658 published in the
Federal Register on June 1.1990 (55 FR
22348).

only,

$ 225.25 [Corrected]
On page 22351, in the first column,
under 8 225.25. in the 13th line of
paragraph (b)(5)(ii) introductory te x t
“exceeds 1 percent'* should read
“exceeds 100 percent”
As a convenience to the reader, new
paragraph (b)(5)(ii) of 8 225.25 is
republished to read as follows:
8 225.25 List of permissible nonbanking
activities.
•
•
•
•
•
(b) * * *

(5) * * *

(ii)
Leasing tangible personal
property. Leasing tangible personal
property or acting as agent broker, or
adviser in leasing such property where,
in calculating the return described in
paragraph (b)(5)(i)(D), the lessor relies
on rental payments, estimated tax
benefits (as described in paragraph
(b)(5)(i)(D)(2)), and an estimated
residual value of the property at the
expiration of the initial term of the lease
that exceeds 20 percent but in no event
exceeds 100 percent of the acquisition
cost of the property to the lessor, if—
(A) The activity otherwise meets the
requirements of paragraph (b)(5)(i);
(B) The aggregate amount of leases in
which the bank holding company, or any
of its bank or nonbank subsidiaries,
relies on an estimated residual value in
excess of 20 percent of the acquisition
cost of the property is limited to no more
than 10 percent of the bank holding
company’s total consolidated assets;
(C) The minimum initial lease term is
90 days;
(D) The bank holding company’s
leasing affiliate maintains capitalization
fully adequate to meet its obligations
and support its activities, and
commensurate with industry standards
for comparable leasing activities; and
(E) The bank holding company
maintains separately identifiable
records of the leasing activities
conducted under paragraphs (b)(5)(i)
and (b)(5)(ii) where it conducts leasing
activities under the authority of both
paragraphs.
By order of the Board of Governors of the
Federal Reserve System, June 6,1990.

William W. Wiles,

Secretary of the Board.
[FR Doc. 90-13437 Filed fr-7-80; 8:45 am]
KLUMO CODE S210-0VM