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O'lOblZ'b November 2, 1989 To the Addressee: Enclosed — for depository institutions in the Second Federal Reserve District and others maintaining sets of regulations of the Board of Governors of the Federal Reserve System — is a copy of the Board’s "Rules of Organization and Rules of Procedure." The revised pamphlet supersedes the previous printing of those Rules and all amendments thereto. The new pamphlet also includes the text of the Freedom of Information Act (5 USC 552). Circulars Division FEDERAL RESERVE BANK OF NEW YORK 26540(53)2 B o a r d o f G o v e r n o r s o f th e F e d e r a l R e s e r v e S y ste m Rules o f Organization As am ended effective June 1, 1989 Rules o f Procedure 12 C F R 262; as am ended effective A ugust 1, 1989 Contents Page Rules of O rganization Section 1— Basis and scope ......................... Section 2— Com position and location . . . . Section 3— C entral o rg a n iz a tio n ................ Section 4— Field o rg a n iz a tio n .................... Section 5— D elegations o f a u t h o r i ty ......... A ppendix— Federal Reserve B a n k s........... Page Rules of P rocedure 1 1 1 4 5 5 Section 262.1— Basis and s c o p e .................. Section 262.2— Procedure for reg u la tio n s. Section 262.3— A p p lic a tio n s ........................ Section 262.4— A djudication w ith form al h e a rin g ............................................................ Section 262.5— A ppearance and practice . Section 262.6— F orm s .................................... 9 9 10 13 13 13 Freedom of Inform ation A ct 15 Board of Governors—Rules of Organization* As amended effective June 1, 1989 S E C T IO N 1— B asis a n d S co p e S E C T IO N 3— C e n tra l O rg a n iz a tio n These rules are issued by the Board of G over nors o f the Federal Reserve System (th e “ B oard” ) pursuant to the requirem ent o f sec tion 552 o f title 5 o f the U nited States Code that each agency shall publish in the Federal Register a description of its central and field organization. T he B oard’s central organization consists of the m em bers o f the Board and the following offices, divisions, and officials: S E C T IO N 2— C o m p o s itio n a n d L o c a tio n (a ) Governors, chairman, vice chairman. The Board consists o f seven m em bers appointed by the President, by and with the advice and consent of the Senate, for 14 year term s. The m em bers of the Board are required by law to devote their entire tim e to the business o f the Board. One o f them is designated by the Presi dent as chairm an and one as vice chairm an, to serve as such for term s o f four years. A t m eet ings, the chairm an presides or, in his absence, the vice chairm an presides. In the absence of the chairm an and vice chairm an, the m em ber o f the Board present with the longest service acts as chairm an. The chairm an o f the Board, subject to its supervision, is its active execu tive officer. T he Board meets regularly and frequently to consider m atters relating to m onetary and credit policies, regulatory and supervisory duties w ith which it has been charged by the Congress, and adm inistrative and o th er questions arising in the conduct of the w ork o f the Board. (b ) Location and business hours. T he princi pal offices of the Board are at 20th Street and C onstitution Avenue, N .W ., W ashington, D .C. 20551. The public entrance is at 20th and C Streets, N .W . T he B oard’s regular busi ness hours are from 8:45 a.m. to 5:15 p.m. each weekday except Saturday, but its busi ness hours m ay be changed from tim e to time. • These are uncodified regulations, for use within the Federal Reserve System, issued pursuant to 5 USC 552. (a ) Office of Board Members consists o f the m em bers o f the Board, and assistants and spe cial assistants to the Board assigned to public affairs and congressional liaison. (b ) Division of Monetary Affairs, headed by a director, is responsible for planning and coor dinating program s, m em oranda, and analyses and presenting decision-m aking options in a r eas o f m onetary and closely related financial policies. Responsibilities are carried out th rough various staff activities, including preparation o f position papers and o ther doc um ents on m onetary policy issues such as open m arket, discount, and reserve require m ent policy; perform ance of secretariat func tions for the Federal Open M arket C om m it tee, including adm inistration and record preparation and m aintenance; coordination of regulatory and statistical issues closely related to m onetary policy, including publication and interpretation o f a variety o f statistical series on money, reserves, and interest rates; and liaison with the trading desk at the Federal Reserve Bank o f New Y ork in connection w ith open m arket operations and m arket developm ents. (c ) Office of Staff Director for Federal Re serve Bank Activities is responsible for oversee ing the Division o f F ederal Reserve Bank O p erations, assisting the B oard’s C om m ittee on Federal Reserve Bank A ctivities, and coordi nating the functions o f o th er Board divisions th a t relate to F ederal Reserve Bank m atters. The responsibilities o f this office also include all Reserve Bank director m atters, coordina tion o f the annual evaluation program for Federal Reserve Banks, the F ederal Reserve System ’s program for em ergency prepared ness, and representing the Board in activities pertaining to Bank operational m atters in meetings with foreign central banks and other U nited States governm ent agencies. 1 §3 ( d ) Office of Staff Director for Management is responsible for the planning and coordina tion o f staff operations and organization, for resource m anagem ent, and supervision of the following functions: Board building adm inis tration and operations, Board budget and ac counting activities, the A utom ation Policy and Program s Com m ittee, personnel-related activities, equal em ploym ent opportunity, and contingency planning operations. (e) Office of the Executive Director for Infor mation Resources Management is responsible for overseeing the Division o f H ardw are and Software Systems and the Division o f A ppli cations D evelopm ent and Statistical Services. T he office has overall responsibility for a d vanced planning and conceptual application o f technology, for autom ation policy, and for coordination of autom ation projects with o th er com ponents of the F ederal Reserve System. ( 0 Office of the Secretary, headed by the B oard’s secretary, coordinates and handles item s requiring Board action, including ac tions under delegated authority; prepares agenda for Board meetings; im plem ents ac tions taken at Board meetings; prepares, cir culates, and indexes m inutes o f the Board; has responsibility for the B oard’s regulatory plan ning.and review; publishes the Federal Reserve Regulatory Service and related m anuals; p ro vides liaison at the staff level with the Federal A dvisory Council, the T hrift Institutions A d visory Council, and ad hoc groups o f the R e serve Banks; m akes arrangem ents for individ uals and groups visiting the Board; m aintains custody o f and provides reference service to official records o f the Board; handles corre spondence and public requests for records; secures visas for official travel of System p er sonnel; and provides relief secretarial and stenographic services. (g ) Legal Division, headed by the B oard’s general counsel, advises the Board in carrying out its statutory and regulatory responsibili ties by the preparation o f Board decisions, regulations, rules, instructions and legal in ter pretations o f statutes and regulations adm inis tered by the Board; represents the B oard in civil litigation and adm inistrative proceedings; assists o ther divisions in fulfulling their re2 R u le s o f O rg a n iza tio n sponsibilities in such areas as contracting, fis cal agency activities, Federal Reserve Bank m atters, labor law, personnel, and supervisory enforcem ent m atters; and prepares testim ony or com m ents on proposed legislation. (h ) Division of Research and Statistics, head ed by a director, provides the Board and the Federal O pen M arket Com m ittee w ith the economic analysis and inform ation needed for current operations, for the form ulation of m onetary and credit policies, and for the exer cise o f responsibilities w ith regard to bank regulation; prepares, publishes, and interprets a variety o f statistical series in the financial and nonfinancial fields; conducts basic re search relating to the effects o f m onetary poli cy on econom ic activity and prices and to the effects of financial regulation on the structure and functioning o f financial m arkets. (i) Division of International Finance, headed by a director, provides the Board, the Federal O pen M arket Com m ittee, and other System officials w ith assessm ents o f current in tern a tional econom ic and financial developments. Staff m em bers analyze m ajor economic and fi nancial developm ents abroad, issues connect ed w ith exchange m arket developm ents, inter national financial flows and their im plications, th e international m onetary and financial sys tem s and their evolution, and the balance-ofpaym ents adjustm ent process. T he division provides econom ic d ata and analyses for pub lic release. It also w orks w ith th e chairm an and o ther Board m em bers in their roles as m em bers o f various interagency bodies deal ing w ith international econom ic policy issues. v . (j) Division of Federal Reserve Bank Opera tions, headed by a director, advises and assists the Board in its oversight o f Reserve Bank op erations. The division is responsible to the Board on m atters concerning paym ents sys tem policy, the price and level o f Federal R e serve Bank services (check collection, funds transfer, autom ated clearinghouse, net settle m ent, securities, and coin and cu rren cy ), and im provem ents to the efficiency o f the pay m ents m echanism . It also m aintains liaison w ith interested parties on paym ents m atters. T he division reviews and appraises Reserve Bank com m unications and autom ation plans R u le s o f O rg a n iza tio n and proposals, as well as Reserve Bank build ing plans. It reviews proposed Reserve Bank budgets; adm inisters expense control and b u d geting system for collection and analysis of budget and expense data; prescribes acco u n t ing principles, standards, and related require m ents to be followed by the Reserve Banks; and provides certain centralized financial ac counting services. T he division conducts an annual financial exam ination o f each Reserve Bank. It also conducts operational reviews o f various R e serve Bank functions, including: check collec tion, electronic paym ents, coin and currency, securities, fiscal agency, open m arket, protec tion, data processing, com m unications, ac counting, and audit. T he division m aintains liaison w ith the T reasury and other governm ent agencies to facilitate the System ’s role as fiscal agent to the U nited States. It also coordinates the printing and distribution o f Federal Reserve notes and is jointly responsible with the Bu reau o f the M int for the production and d istri bution o f coin. (k ) Division of Banking Supervision and Reg ulation, headed by a director, coordinates the bank supervisory functions o f the System and evaluates the exam ination procedures o f the Reserve Banks; exercises general supervision o f the com m ercial and fiduciary activities of state m em ber banks; adm inisters the supervi sory features o f laws and regulations relating to affiliates and bank holding com panies; su pervises various foreign banking activities of m em ber banks and foreign banking and fi nancing corporations; adm inisters the public disclosure provisions of the Securities E x change A ct of 1934, as am ended, in their ap plication to state m em ber banks, and th e p ro visions o f the act giving responsibility to the B oard for regulating security credit tran sac tions; adm inisters the pertinent provisions of the Financial Institutions Supervisory A ct of 1966, and am endm ents contained in the F i nancial Institutions R egulatory and Interest R ate C ontrol A ct o f 1978, in their application to state m em ber banks, bank holding com pa nies, nonbank subsidiaries, Edge A ct co rp o ra tions, foreign banks with dom estic operations, and persons related to such institutions; m oni §3 tors the C urrency and Foreign Transactions R eporting A ct in its application to state m em ber banks and Edge A ct corporations; pro cesses and presents to the Board applications filed pursuant to the Bank H olding Com pany A ct of 1956, as am ended, and the Bank M erg er A ct and various other applications subm it ted under the provisions o f the f e d e r a l R e serve A ct or related statutes; and advises the Board regarding developm ents in banking and bank supervisory policies and procedures. (/) Division of Consumer and Community Af fairs, headed by a director, im plem ents con sum er affairs legislation for which the Board has responsibility. Its functions include d raft ing regulations and interpretations pursuant to the T ru th in Lending A ct, th e Equal Credit O pportunity A ct, the H om e M ortgage D isclo sure A ct, the F air C redit Billing A ct, the C on sum er Leasing A ct, the E lectronic F unds Transfer A ct, and the Federal T rade C om m is sion Im provem ents A ct, for financial in stitu tions and other firms engaged in consum er credit, electronic funds transfers, and leasing activities. The division also adm inisters the B oard’s consum er com plaint-handling system and m onitors enforcem ent activities w ith re gard to state m em ber banks. T he legislation enforced includes the acts already m entioned above as well as the C om m unity Reinvest m ent, F air C redit R eporting, F air D ebt C ol lection Practices, F air H ousing, F lood D isas ter Protection, and Real E state Settlem ent P rocedures A cts and R egulation Q, Interest on Deposits. T he division assists the com m u nity affairs activities o f the Reserve Banks, which are related to th e Federal R eserve’s C om m unity Reinvestm ent A ct responsibilities. (m ) Division of Human Resources Manage ment, headed by a director, is responsible for the developm ent and im plem entation of Board personnel policies and program s, and advises and assists th e Board and the Reserve Banks on personnel m atters pertaining to the Federal Reserve Banks. (n ) Division of Support Services, headed by a director, is responsible for duplication and distribution o f Board publications, press re leases, speeches, and testim ony; space m an agem ent; printing, contracting, and supply 3 §3 services; com m unications; food service m an agement; operation and m aintenance of elec trical and m echancial systems; building and grounds m aintenance; personnel and building security. (o ) Office of the Controller, headed by the B oard’s controller, assists the B oard’s divi sions and the Federal Financial Institutions Exam ination Council in establishing and op erating w ithin their organizational structures, in m anaging their resources, and in ensuring the propriety and accountability o f resource utilization by: adm inistering the budget func tions o f planning, form ulating, executing, re viewing, and reporting; receiving and disburs ing funds; m aintaining books o f account; developing m eans to im prove operations; con ducting organizational analyses; conducting program analyses; providing financial analysis and consultation; reporting results o f opera tions; conducting special studies; m aintaining records o f organizational and financial tran s actions; ensuring that proper cost/benefit and lease/purchase analyses are a part o f m ajor capital investments; and participating in or supporting m anagerial com m ittees and task forces. (p ) Division of Hardware and Software Sys tems, headed by a director, is responsible for the overall planning, acquisition, im plem enta tion, operation, and m aintenance o f the B oard’s autom ation and d ata com m unications equipm ent, environm ental operating and data base systems software, d ata processing and com m unications security, m ainfram e linkage to distributed processing, and other hardw are and environm ental softw are required at the Board and the Contingency Processing C enter (C P C ). T he division is responsible for provid ing a clim ate in which users share responsibil ity in determ ining needs and translating these needs into services, and providing effective and efficient im provem ents in all autom ation and com m unication systems services to the Board and through the C P C to the Federal Reserve System. (q ) Division of Applications Development and Statistical Services, headed by a director, is re sponsible for the design, developm ent, and im plem entation o f applications software; for the 4 R u le s o f O rg a n iza tio n collection, processing, and m aintenance of statistical and regulatory data provided by com m ercial banks, bank holding com panies, other financial institutions, and Federal R e serve Banks; and for the provision of technical consulting services relating to autom ation ac tivities in o ther Board divisions and offices. ( r ) Office of Inspector General is an indepen dent office th at operates under Public Law 100-504 and Board charter. It conducts and supervises audits, operations reviews, and in vestigations relating to the functions o f the Board; recom m ends and provides leadership and coordination for activities th a t prom ote econom y, efficiency, and effectiveness w ithin the B oard’s program s and operations; detects and prevents fraud, waste, and abuse in the B oard’s program s and operations; and keeps the chairm an and Congress fully inform ed about problem s and deficiencies relating to the B oard’s program s and operations and the ne cessity for, and progress of, corrective actions. (s) Other personnel. T he B oard does not em ploy adm inistrative law judges or hearing offi cers as regular m em bers o f its staff; but, in accordance w ith applicable provisions of law and in individual cases as the need m ay arise, the B oard obtains and utilizes adm inistrative law judges and hearing officers, whose functions in such capacity are appropriately separated, as required by law, from investigative and prosecuting functions o f the staff. S E C T IO N A F ie ld O rg a n iz a tio n — (a ) Federal Reserve Banks. T he U nited States is divided into 12 Federal Reserve D istricts. In one city in each Federal Reserve D istrict there is located a F ederal Reserve Bank; in 10 o f the D istricts th ere are one or m ore bran ch es o f the Federal Reserve Bank in o ther cities; and in some D istricts there are offices or facil ities w ith specialized functions. Each Federal Reserve Bank is a separate legal entity, cre at ed p u rsu an t to th e Federal Reserve A ct and operating under the general supervision o f the Board. T he locations o f th e 12 Federal R e serve Banks and th e 25 branches and the boundaries o f the F ederal Reserve d istrict and R u le s o f O rg a n iza tio n branch territories are shown in the appendix. 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 m any m atters acts as the B oard’s field representative in the B ank’s D istrict. Each Reserve Bank assists in the regional adm inis tration o f the B oard’s regulations and policies, keeps the Board inform ed of local conditions, and recom m ends such actions as it thinks ap propriate in particular cases. In general, per sons concerned w ith Federal Reserve m atters should deal in the first instance with the F ed eral Reserve Bank of the appropriate D istrict o r a branch thereof, and the Board requests all persons to follow this procedure. (b ) Federal Reserve agents. Each Federal R e serve Bank has nine directors, three o f whom are appointed by the Board. O ne o f the direc tors appointed by the Board is designated by the Board as chairm an of the Board of D irec tors o f the Bank and as Federal Reserve agent. H e acts as the B oard’s official repre sentative and m aintains a local office of the Board on the prem ises of the Federal Reserve bank. S E C T IO N 5— D e le g a tio n s o f A u th o r ity T he Board does not delegate any of its func tions relating to rule-m aking or pertaining principally to m onetary or credit policies or involving any questions o f general policy. However, the B oard delegates certain o f its supervisory and other functions prescribed by statute or regulations o f the Board to its m em bers or employees or to the Federal Reserve Banks as provided in its Rules Regarding D el egation o f A uthority (12 C F R 265). In ad d i tion, the Board delegates to the Federal R e serve Banks certain functions not provided for by statute or regulations of the B oard, includ ing authority to extend the tim e w ithin which certain transactions may be consum m ated. A P P E N D I X — F e d e ra l R e se rv e B a n k s BOSTON* 600 A tlantic A venue, Boston, M assachu setts 02106 A p p e n d ix NEW YORK* 33 Liberty Street (F ederal Reserve P.O. S tatio n ), New Y ork, New Y ork 10045 Buffalo Branch 160 D elaw are Avenue, Buffalo, New York 14202 (P.O . Box 961, Buffalo 14240-0961) P H IL A D E L P H IA Ten Independence M all, Philadelphia, Pennsylvania 19106 (P.O . Box 66, P hila delphia 19105) CLEVELAND* 1455 East Sixth Street, Cleveland, O hio 44114 (P.O . Box 6387, Cleveland 44101) C incinnati Branch 150 East F o u rth Street (P.O . Box 999), C incinnati, O hio 45201-0999 P ittsburgh Branch 717 G ra n t Street, P ittsburgh, Pennsylvania 15219 (P.O . Box 867, P ittsburgh 15230) R IC H M O N D * 701 East Byrd Street, R ichm ond, Virginia 23219 (P.O . Box 27622, R ichm ond, V irgin ia 23261) Baltim ore Branch 502 S. Sharp Street, Baltim ore, M aryland 21201 (P.O . Box 1378, Baltim ore, M ary land 21203) C harlotte B ranch 530 East T rade Street, C harlotte, N orth C arolina 28202 (P.O . Box 30248, C harlotte 28230) C ulpeper C om m unications and R ecords C enter P.O . D raw er 20, C ulpeper, Virginia 22701 ATLANTA 104 M arietta Street, N .W ., A tlanta, G eo r gia 30303 (P.O . Box 1731, A tlan ta 303011731) Birm ingham Branch 1801 Fifth A venue, N orth, Birm ingham , A labam a 35202 (P .O . Box 830447, Bir m ingham 35283-0447) Jacksonville B ranch 800 W ater Street (P.O . Box 929), Jackson ville, F lorida 32231-0044 M iami Branch 9100 N orthw est 36th Street, M iami, F lo ri da 33178 (P.O . Box 520847, M iami 33152) 5 A p p e n d ix N ashville Branch 301 Eighth Avenue, N orth, Nashville, T en nessee 37203 (P.O . Box 4407, Nashville 37203-4407) New O rleans Branch 525 St. Charles Avenue, New Orleans, Louisiana 70130 (P.O . Box 61630, New O rleans 70161-1631) C H IC A G O * 230 South LaSalle Street, Chicago, Illinois 60604 (P.O . Box 834, Chicago 60690-0834 D etroit Branch 160 W. F ort Street, D etroit, M ichigan 48226 (P.O . Box 1059, D etroit 48231) ST. LO UIS 411 Locust Street, St. Louis, M issouri 63102 (P.O . Box 442, St. Louis, M issouri 63166) L ittle Rock Branch 325 W est Capitol Avenue, Little Rock, A r kansas 72201 (P.O . Box 1261, L ittle Rock 72203) Louisville Branch 410 South Fifth Street, Louisville, K en tucky 40202 (P.O . Box 32710, Louisville 40232) M em phis Branch 200 N o rth M ain Street, M em phis, Tennes see 38103 (P.O . Box 407, M em phis, T en nessee 38101) M IN N E A P O L IS 250 M arquette Avenue, M inneapolis, M in nesota 55480 H elena Branch 400 N o rth P ark Avenue, H elena, M ontana 59601 • Additional offices of these Banks are located at Lewis ton, Maine 04240; Windsor Locks, Connecticut 06096; Cranford, New Jersey 07016; Jericho, New York 11753; Utica at Oriskany, New York 13424; Columbus, Ohio 43216; Columbia, South Carolina 29210; Charleston, West Virginia 25328; Des Moines, Iowa 50306; Indianapolis, In diana 46206; and Milwaukee, Wisconsin 53201. 6 R u le s o f O rg a n iza tio n K A N SA S CITY 925 G ran d Avenue, K ansas City, Missouri 64198 D enver Branch 1020 16th Street, D enver, C olorado 80202 (Term inal A nnex-P.O . Box 5228, D enver 80217) O klahom a City Branch 226 D ean A. M cGee A venue (P.O . Box 25129), O klahom a City, O klahom a 73125 O m aha Branch 2201 F am am Street, O m aha, N ebraska 68102 (P.O . Box 3958, O m aha 68103) D A LL A S 400 South A kard Street (Station K ), D al las, Texas 75222 El Paso Branch 301 East M ain Street, El Paso, Texas 79901 (P.O . Box 100, El Paso 79999) H ouston B ranch 1701 San Jacinto Street, H ouston, Texas 77002 (P.O . Box 2578, H ouston, Texas 77252) San A ntonio B ranch 126 East N ueva Street, San A ntonio, Texas 78204 (P.O . Box 1471, San A ntonio 78295) SAN F R A N C IS C O 101 M arket Street, San Francisco, C alifor nia 94105 (P.O . Box 7702, San F rancisco 94120) Los Angeles Branch 950 South G ran d A venue, Los Angeles, C alifornia 90015 (T erm inal A nnex-P.O . Box 2077, Los Angeles 90051) P ortland Branch 915 S.W. Stark Street, P ortland, Oregon 97025 (P.O . Box 3436, P o rtlan d 97208) Salt Lake City B ranch 120 South State Street, Salt Lake City, U tah 84111 (P.O . Box 30780, Salt Lake City 84125) Seattle Branch 1015 Second Avenue, Seattle, W ashington 98104 (P.O . Box 3567, Seattle 98124) R u le s o f O rg a n iza tio n A p p e n d ix Boundaries of Federal Reserve Districts and Their Branch Territories Llg lsd Boundaries of Federal Reserve Districts ® Federal Reserve Bank Cities Boundaries of Federal Reserve Branch Territories • Federal Reserve Branch Cities Federal Reserve Bank Facility o Board of Governors of the Federal Reserve System 7 Board of Governors—Rules of Procedure 12 CFR 262; as amended effective August 1, 1989 SECTION 262.1—Basis and Scope This part is issued pursuant to section 552 of title 5 of the U nited States Code, which re quires that every agency shall publish in the Federal Register statem ents o f the general course and m ethod by which its functions are channeled and determ ined, rules of procedure, and descriptions of forms available or the places at which form s may be obtained. SECTION 262.2—Procedure for Regulations (a ) Notice. N otices of proposed regulations o f the B oard o f G overnors o f the F ederal R e serve System (th e “ B oard” ) or am endm ents thereto are published in the Federal Register, except as specified in paragraph (e) o f this section o r otherw ise excepted by law. Such notices include a statem ent of the term s o f the proposed regulations or am endm ents and a description o f the subjects and issues involved; but the giving o f such notices does not neces sarily indicate the B oard’s final approval of any feature o f any such proposal. The notices also include a reference to the au th o rity for the proposed regulations or am endm ents and a statem ent o f the time, place, and n atu re of public participation. (b ) Public participation. T he usual m ethod of public subm ission of data, views, o r arg u m ents is in writing. It is ordinarily preferable th at they be sent to the Secretary o f the Board, W ashington, D .C. 20551, w ith copies to the appropriate Federal Reserve Bank. T he locations o f the 12 Federal Reserve Banks and the boundaries o f the F ederal Reserve dis tricts are show n in the appendix to the B oard’s R ules o f O rganization. Such m aterial will be m ade available for inspection and copying upon request, except as provided in section 261.6(b) of this chapter regarding availability o f inform ation. (c ) Preparation of draft and action by Board. In the light o f consideration o f all relevant m atter presented or ascertained, the ap p ro p ri ate division o f the B oard’s staff, in collabora tion with o ther divisions, prepares drafts of proposed regulations or am endm ents, and the staff subm its them to the Board. The Board takes such action as it deems appropriate in the public interest. A ny other docum ents that may be necessary to carry out any decision by the Board in the m atter are usually prepared by the Legal Division, in collaboration with the other divisions o f the staff. (d ) Effective dates. A ny substantive regula tion o r am endm ent thereto issued by the Board is published not less than 30 days prior to the effective date thereof, except as speci fied in paragraph (e ) o f this section or as o th erwise excepted by law. (e ) Exceptions as to notice or effective date. In certain situations, notice and public participa tion w ith respect to proposed regulations may be im practicable, unnecessary, contrary to the public interest, or otherw ise not required in the public interest, or there may be reason and good cause in the public interest why the ef fective date should not be deferred for 30 days. T he reason or reasons in such cases usu ally are th a t such notice, public participation, or deferm ent o f effective date would prevent th e action from becom ing effective as p ro m p t ly as necessary in the public interest, would perm it speculators or others to reap unfair profits or to interfere w ith th e B oard’s actions taken w ith a view to accom m odating com m erce and business and w ith regard to their bearing upon the general credit situation of the country, w ould provoke o th er conse quences contrary to th e public interest, would unreasonably interfere w ith the B oard’s neces sary functions w ith respect to m anagem ent or personnel, would not aid the persons affected, or would otherw ise serve no useful purpose. T he following m ay be m entioned as some ex am ples o f situations in w hich advance notice or deferred effective date, or both, will o rd i narily be om itted in the public interest; T he review and determ ination o f discount rates es tablished by Federal Reserve Banks, and changes in general requirem ents regarding re9 § 2 6 2 .2 serves o f m em ber banks, m axim um interest rates on tim e and saving deposits, or credit for purchasing or carrying securities. SECTION 262.3—Applications (a ) Forms. Any application, request, or peti tion (hereafter referred to as “ application” ) for the approval, authority, determ ination, or perm ission o f the Board with respect to any action for which such approval, authority, de term ination, or permission is required by law or regulation o f the Board (including actions authorized to be taken by a Federal Reserve Bank or others on behalf of the Board p u rsu ant to authority delegated u n d er p art 265 of this chapter) shall be subm itted in accordance w ith the pertinent form, if any, prescribed by the Board. Copies o f any such form and de tails regarding inform ation to be included therein may be obtained from any Federal Rer serve Bank. A ny application for w hich no form is prescribed should be signed by the person m aking the application or by his duly authorized agent, should state the facts in volved, the action requested, and the appli ca n t’s interest in the m atter, and should indi cate the reasons why the application should be granted. A pplications for access to, or copy ing of, records o f the Board should be subm it ted as provided in section 2 61.9(a) o f this chapter. (b ) Notice of applications. (1 ) In the case of applications, (i) for m em bership in the F ederal R e serve System where such m em bership would confer federal deposit insurance on a bank, (ii) by a state m em ber bank for th e es tablishm ent o f a dom estic branch or o th er facility that would be authorized to re ceive deposits, (iii) by a state m em ber bank for the re location o f a dom estic branch office, (iv ) for m erger, consolidation, or acqui sition o f assets or assum ption o f liabili ties, if the acquiring, assuming, o r resu lt ing bank is to be a state m em ber bank, (v ) to become a bank holding com pany, and (v i) by a bank holding com pany to ac 10 R u le s o f P ro ced u res quire ow nership or control o f shares or assets of a bank, or to m erge or consoli date with any other bank holding com pany, the applicant shall cause to be published on the same day o f each o f tw o consecutive weeks a notice in the form prescribed by the Board. The notice shall be placed in the classified advertising legal notices section of the newspaper, and the first notice may ap pear no m ore than 90 calendar days prior to acceptance by the Reserve Bank o f the ap plication. The notice m ust provide an op portunity for the public to give w ritten com m ent on the application to the ap p ro priate Federal Reserve Bank for at least 30 days after the date of publication o f the first notice. In addition, between publication of the first and second notice, the applicant shall subm it to th e appropriate Reserve Bank for acceptance copies o f the applica tion, together w ith a copy o f the notice as it appeared in the newspaper. Such notice shall be published in a new spaper o f general circulation in (A ) the com m unity in which the head office o f the bank is or is to be located in the case o f an application for m em bership th a t would confer deposit in surance, (B ) the com m unity or com m uni ties in which the head office o f the bank and the proposed branch o r o th er facility (o th er than an electronic funds transfer facility) are located in the case o f an application for the establishm ent o f a dom estic branch or o ther facility th a t w ould be authorized to receive deposits, (C ) th e com m unity or com m unities in which th e head office o f the bank, th e office to be closed, and the office to be opened are located in the case o f an application for th e relocation o f a dom estic branch office, (D ) the com m unity or com m unities in which the head office o f each of the banks to be party to the m erger, consol idation, o r acquisition o f assets or assum p tion o f liabilities are located in the case of an application by a bank for m erger, con solidation, or acquisition o f assets or as sum ption o f liabilities, or (E ) the com m u nity o r com m unities in which the head offices o f the largest subsidiary bank, if any, or an applicant and o f each bank, shares of which are to be directly or indirectly ac- R u le s o f P ro ced u res quired, are located in the case of applica tions under section 3 o f the Bank H olding C om pany Act. (2 ) In addition to the foregoing notice, an applicant, in the case of an application to relocate a dom estic branch office or other facility that would be authorized to receive deposits, shall post in a conspicuous public place in the lobby o f the office to be closed a notice containing the inform ation specified in section 2 6 2 .3 (b )(1 ). Such notice should be posted on the date of the first notice re quired by section 2 6 2 .3 (b )(1 ). (c ) Filing of applications. A ny application should be sent to the Federal Reserve Bank of the D istrict in which the head office of the parent banking organization is located, except as otherw ise specified on application forms, and th at Bank will forw ard it to the Board when appropriate; however, in the case o f a foreign banking organization, as defined in section 2 1 1 .2 3 (a )(2 ) of this chapter, applica tions shall be sent to the F ederal Reserve Bank o f the D istrict in w hich the operations o f the organization’s subsidiary banks are principally conducted. In the case of a foreign banking organization that is not a bank h old ing com pany but that has one o r m ore branches, agencies, or com m ercial lending com panies in any state o f the U nited States or the D istrict of Colum bia, applications shall be sent to the Federal Reserve Bank o f th e dis trict in which the organization’s banking as sets are the largest. A pplications of a m em ber bank subsidiary, however, should be filed w ith the Reserve Bank o f the d istrict in which the m em ber bank is located. (d ) Analysis by staff. In every case, the R e serve Bank m akes such investigation as may be necessary, and, except when acting p u rsu ant to delegated authority, reports the rele vant facts, w ith its recom m endation, to the B oard. In the light of consideration of all rele vant m atter presented o r ascertained, the B oard’s staff prepares and subm its to the B oard com m ents on the subject. (e) Submission of comments and requests for hearing. T he B oard is only required to consid er a com m ent or a request for a hearing with respect to an application o r notice if it is in § 2 6 2 .3 w riting and received by the Secretary of the Board or the appropriate Federal Reserve Bank on or before the latest date prescribed in any notice with respect to the application or notice, or where no such date is prescribed, on or before the thirtieth day after the date notice is first published. Similarly, the Board will consider com m ents on an application from the attorney general or a banking supervisory authority to which notification o f receipt o f an application has been given, only if such com m ent is received by the secretary of the Board w ithin 30 days o f the date of the letter giving such notification. A ny com m ent on an appli cation or notice th at requests a hearing m ust include a statem ent o f why a w ritten presenta tion would not suffice in lieu o f a hearing, identifying specifically any questions o f fact th at are in dispute and sum m arizing the evi dence th a t would be presented at a hearing. In every case w here a tim ely com m ent o r request for hearing is received as provided herein, a copy o f such com m ent o r request shall be for w arded prom ptly to the applicant for its re sponse. T he B oard will consider the appli ca n t’s response only if it is in w riting and sent to th e secretary o f the B oard on or before eight business days after the date o f the letter by which it is forw arded to the applicant. A t the sam e tim e it transm its its response to the B oard, th e applicant should tran sm it a copy o f its response to th e person or supervisory au th o rity m aking such com m ent o r requesting a hearing. N otw ithstanding th e foregoing, the B oard m ay, in its sole discretion and w ithout notifying the parties, take into consideration th e substance o f com m ents w ith respect to an application, (b u t not requests for hearing) th a t are not received w ithin the tim e periods provided herein. ( 0 Action on applications. T he B oard takes such action as it deem s appropriate in the public interest. Such docum ents as m ay be necessary to carry out any decision by the Board are prepared by th e B oard’s staff. W ith respect to actions taken by a Federal Reserve Bank on behalf o f th e B oard un d er delegated au thority, statem ents and necessary d ocu m ents are prepared by th e stafT o f such F ed er al Reserve Bank. (g ) Notice of action. P ro m p t notice is given 11 § 2 6 2 .3 to the applicant o f the granting or denial in whole o r in part of any application. In the case o f a denial, except in affirming a prior denial or where the denial is self-explanatory, such notice is accom panied by a sim ple state m ent o f the grounds for such action. ( h ) Action at Board's initiative. W hen the B oard, w ithout receiving an application, takes action with respect to any m atter as to which opportunity for hearing is not required by statute or Board regulation, sim ilar procedure is followed, including investigations, reports, and recom m endations by the B oard’s staff and by the Reserve Banks, where appropriate. (i) General procedures for bank holding com pany and merger applications. In addition to procedures applicable under other provisions o f this part, the following procedures are ap plicable in connection with the B oard’s con sideration of applications under sections 3 and 4 o f the Bank H olding C om pany A ct of 1956 (12 USC 1842 and 1843), hereafter referred to as “ section 3 applications” or “ section 4 applications,” and o f applications under sec tion 18(c) o f the Federal D eposit Insurance A ct (12 USC 1823), hereafter called “m erger applications.” Except as otherw ise indicated, the following procedures apply to all such application. (1 ) T he B oard issues each week a list th a t identifies section 3 and section 4 and m erger applications received and acted upon d u r ing the preceding week by the Board or the Reserve Banks pursuant to delegated au thority. N otice o f receipt o f all section 3 applications and of section 4 ( c ) ( 8 ) applica tions acted on by the Board is published in the Federal Register. (2 ) If a hearing is required by law or if the Board determ ines th at a form al hearing for the purpose o f taking evidence is desirable, the B oard issues an order for such a h ea r ing, and notice thereo f is published in the Federal Register. A ny such form al hearing is conducted by an adm inistrative law judge in accordance w ith the B oard’s Rules of Practice for H earings (p a rt 263 o f this ch ap ter) except that, unless otherw ise o r dered by the Board, such a hearing is public. (3 ) In any case in which a formal hearing 12 R u le s o f P ro ced u res is not ordered by the Board, th e Board may afford the applicant and other properly in terested persons (including governm ental agencies) an opportunity to present views orally before the Board or its designated representative. Unless otherw ise ordered by the Board, any such oral presentation is public and notice of such public proceeding is published in the Federal Register. (4 ) Each action taken by the B oard on an application is em bodied in an order th at in dicates the votes o f m em bers o f the Board. The o rder either contains reasons for the B oard’s action (i.e., an expanded ord er) or is accom panied by a statem ent o f the rea sons for the B oard’s action. Both th e order and any accom panying statem ent are re leased to the press. Each o rder accom pa nied by a statem ent and any order o f gener al interest, together w ith a list o f other orders, are published in the Federal Reserve Bulletin. A ction by a Reserve Bank under delegated au th o rity as provided for under part 265 o f this chapter is reflected in a let te r o f notification to the applicant. (5 ) Unless the B oard shall otherw ise di rect, each section 3 and section 4 and m erg er application is m ade available for in spection by the public except for portions thereof as to which the B oard determ ines th a t nondisclosure is w arranted under sec tion 55 2 (b ) o f title 5 o f the U nited States Code. (j) Special procedures for certain applications. T he following types o f applications require procedures exclusive of, o r in addition to, those described in p aragraphs ( i ) ( 1 ) — ) of (5 this section. (1 ) Special rules pertaining to section 3 and m erger applications follow, (i) Each o rder o f the Board and each letter o f notifi cation by a Reserve Bank acting pursuant to delegated authority approving a section 3 application includes, pursuant to the act ap proved July 1, 1966 (12 USC 1 8 4 9 (b )), a requirem ent th a t the transaction approval shall not be consum m ated before the th irti eth calendar day following the date o f such order, (ii) Each o rder o f the Board approv ing a m erger application includes, pursuant to the act approved F ebruary 21, 1966 (12 R u le s o f P ro ced u res USC 1 8 2 8 (c )(6 )), a requirem ent th at the transaction approved shall not be consum m ated before the thirtieth calendar day fol lowing the date of such order, except as the Board may otherwise determ ine pursuant to emergency situations as to which the act perm its consum m ation at earlier dates, (iii) Each order o r each letter o f notification ap proving an application also includes, as a condition of approval, a requirem ent that the transaction approved shall be consum m ated w ithin three m onths and, in the case o f acquisition by a holding com pany of stock o f a newly organized bank, a require m ent that such bank shall be opened for business w ithin six m onths, but such peri ods may be extended for good cause by the Board (o r by the appropriate F ederal R e serve Bank w here authority to grant such extensions is delegated to the Reserve B ank). (2 ) F o r special rules governing procedures for section 4 applications, refer to section 225.23 o f this chapter. (k ) Reconsideration of certain Board actions. The Board may reconsider any action taken by it on an application upon receipt by the secretary of the Board o f a w ritten request for reconsideration from any party to such appli cation, on or before the fifteenth day after the effective date o f the B oard’s action. Such re quest should specify the reasons why the Board should reconsider its action, and p re sent relevant facts that, for good cause shown, were not previously presented to the Board. W ithin 10 days o f receipt o f such a request, the general counsel, acting pursuant to dele gated authority (12 C F R 2 6 5 .2 (b )(7 )), shall determ ine w hether or not the request for re consideration should be granted, and shall no tify all parties to the application orally by tele phone o f this determ ination w ithin 10 days. Such notification will be confirmed prom ptly in writing. In the exercise of this authority, the general counsel shall confer w ith the di rectors o f other interested divisions o f the B oard or their designees. N otw ithstanding the foregoing, the Board may, on its own m otion if it deems reconsideration appropriate, elect § 2 6 2 .6 to reconsider its action w ith respect to any application, and the parties to such applica tion shall be notified by the secretary o f the Board o f its election as provided above. If it is determ ined that the Board should reconsider its action with respect to an application, such action will be stayed and will not be final until the Board has acted on the application upon reconsideration. I f appropriate, notice o f re consideration o f an application will be pub lished prom ptly in the Federal Register. (/) Waiver. T he Board, o r the officer or R e serve Bank authorized to approve an applica tion, m ay waive or modify any procedural re quirem ents for th a t application prescribed or cited in this section and m ay excuse any fail ure to com ply w ith them upon a finding that im m ediate action on th e application is neces sary to prevent th e probable failure o f a bank or com pany o r th a t an em ergency exists re quiring expeditious action. SECTION 262.4— Adjudication with Formal Hearing In connection with adjudication w ith respect to which a form al hearing is required by law or is ordered by the B oard, the procedure is set forth in p art 263 o f this chapter, entitled “ R ules of P ractice for H earings.” SECTION 262.5—Appearance and Practice A ppearance and practice before th e Board in all m atters are governed by section 263.3 of this chapter. SECTION 262.6—Forms N ecessary form s to be used in connection with applications and o th er m atters are available at th e F ederal Reserve Banks. A list o f all such forms, which is reviewed and revised periodi cally, may be obtained from any Federal R e serve Bank. 13 Freedom of Information Act 5 USC 552; 80 Stat. 383; Pub. L. 89-554 (September 6, 1966) (a ) Each agency shall make available to the public inform ation as follows: (1 ) Each agency shall separately state and currently publish in the Federal Register for the guidance o f the public— (A ) descriptions of its central and field organization and the established places at which, the employees (and in the case o f uniform ed service, the m em bers) from whom, and the m ethods whereby, the public m ay obtain inform ation, m ake subm ittals or requests, or obtain decisions; (B ) statem ents o f the general course and m ethod by which its functions are ch a n neled and determ ined, including th e n a ture and requirem ents o f all form al and inform al procedures available; (C ) rules o f procedure, descriptions of form s available or the places at which form s m ay be obtained, and instructions as to the scope and contents o f all papers, reports, or exam inations; (D ) substantive rules of general applica bility adopted as authorized by law, and statem ents o f general policy or interpre tations o f general applicability form ulat ed and adopted by the agency; and (E ) each am endm ent, revision, or repeal o f the foregoing. Except to the extent th at a person has actu al and timely notice o f the term s thereof, a person m ay not in any m anner be required to resort to, o r be adversely affected by, a m atter required to be published in the F ed eral Register and not so published. F o r the purpose o f this paragraph, m atter reason ably available to the class of persons affect ed thereby is deemed published in the Federal R egister when incorporated by ref erence therein w ith the approval of the D i rector of the Federal Register. * * * * * 15
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