Full text of H.2 Actions of the Board, Its Staff, and the Federal Reserve Banks; Applications and Reports Received : August 13, 1977

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

ANNOUNCEMENT BY
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
(H.2, 1977 No. 33)
Actions of the Board; Applications and Reports
Received During the Week Ending August 13, 1977
ACTIONS OF THE BOARD
Proposed revision of Article 9 of the SEC S-X, providing for
"specific requirements as to form and content for consolidated and unconsolidated financial statements of bank
holding companies and banks'1, response to request for
Board's views sent to Mr. Harold M. Williams, Chairman,
Securities and Exchange Commission.
Philadelphia International Investment Corporation, Philadelphia, Pennsylvania, extension of time to October 10,
1977, within which to dispose of the stock of Arbuthnot
Latham Holdings Limited, London, England.
Negotiable orders of withdrawal, letter to Chairman Thomas J.
Mclntyre, Senate subcommittee on Financial Institutions,
in support of the NOW accounts legislation.
Issuance of a subordinated capital note by The Trust Company
of New Jersey, Jersey City, New Jersey.
Issuance of subordinated capital notes by Central Bank, Monroe,
Louisiana.
Westland Banks, Inc., Lakewood, Colorado, extension of time
to December 8, 1977, within which to consummate the
acquisition and opening of Westland National Bank South,
Longmont, Colorado. 1/
Westland Banks, Inc., Lakewood, Colorado, extension of time
to December 31, 1977, within which to consummate the
acquisition and opening of Westland Bank of Lakewood,
Lakewood, Colorado. 1/
First Missouri Banks, Inc., Creve Coeur, Missouri, extension
of time to October 31, 1977, within which to open its de
novo bank, First Missouri Bank of West County, St. Louis
County, Missouri. 1/

1/

Application processed on behalf of the Board of Governors under delegated
authority.




H.29

1977 No. 33

- 2 ACTIONS OF THE BOARD-Continued

Alabama Bancorporation, Birmingham, Alabama, extension of
time to November 11, 1977, within which to acquire
Farmers and Merchants Bank, Ashford, Alabama. 1/
Citizens Bank of New Haven, New Haven, Missouri, to make an
additional investment in bank premises. 1J
Warren Bank, Warren, Michigan, to make an investment in bank
premises. 1/
Termination of Registration for U. of C. Federal Credit Union
(University of Colorado), Boulder, Colorado. If
Detroit Bank - Troy, Troy, Michigan, extension of time to
October 15, 1977, within which to establish a branch at
the northeast corner of the intersection of John R and
Wattles Roads, Troy; and an extension of time to March
15, 1978, within which to establish a branch at the
intersection of Square Lake and Rochester Roads, Troy. 1/
Farmers and Merchants Bank of Central California, Lodi, California, extension of time to August 22, 1978, within
which to establish a branch on McHenry Avenue between
Woodrow and Floyd Avenue, Modesto, California. 1/
Walker Bank and Trust Company, Salt Lake City, Utah, extension of time to February 17, 1978, within which to establish a branch in downtown Tooele, Utah. IJ
Capital Bank of Miami, N.A., Miami, Florida, and Capital Bank
of Kendale, Miami, Florida, proposed merger with Capital
Bank of North Bay Village, North Bay Village, Florida,
report to the Federal Deposit Insurance Corporation on
competitive factors. JL/
Landmark Bank of North Tampa, Hillsborough County, Florida,
proposed merger with Landmark Bank of Tampa, Tampa,
Florida, report to the Federal Deposit Insurance Corporation on competitive factors. 1/

Tj

Application processed on behalf of the Board of Governors under delegated
authority.




II. 2, 1977 No. 33

— 3 —
ACTIONS OF THE BOARD-Continued

To Establish a Domestic Branch Pursuant to Section
9 of the Federal Reserve Act
Approved
NB Bank of Richmond, Richmond, Virginia. Branch to be
established at 1900 Lauderdale Drive, Henrico County. 2/
The Bank of El Paso, El Paso, Texas.
Branch to be established as a Drive-in Facility and Data Processing
Center at 5101 Montana Street. 2/
Valley Bank & Trust Company, Salt Lake City, Utah. Branch
to be established in the vicinity of 8600 South and 1300
East in Sandy, Salt Lake County. 2/

* * * * *

International Investments and Other Actions Pursuant to
Sections 25 and 25(a) of the Federal Reserve Act and
Sections 4(c)(9) and 4(c)(13) of the Bank Holding Company
Act of 1956, as amended
Approved
Citibank Overseas Investment Corporation: A n extension of
the 8-11-77 divestiture deadline re:
indirect equity
interests of IAC (Holdings) Ltd., Australia.
United States Trust Company International Corporation: Investment - to acquire 100 per cent of the shares of U.S.
Trust Company of New York (Grand Cayman) Ltd.
Philadelphia International Investment Corporation: Investment - to acquire 24 per cent of the shares of Australian
Finance and Securities Ltd., Sydney, Australia.
Philadelphia International Investment Corporation: To retain
its 4.5 per cent interest in Arbuthnot Latham Holdings,
Ltd., London, England.
Continental International Finance Corporation: Investment to acquire all the shares of Continental Illinois Investment Corporation, Geneva, Switzerland.

2/

Application processed by the Reserve Bank on behalf of the Board of
Governors under delegated authority.




H.2, 1977 No. 33

- 4 ACTIONS OF THE BOARD-Continued

To Form a Bank Holding Company Pursuant to Section
3(a) (1) of the Bank Holding Company Act of 1956
Approved
Ark Valley Bankshares, Inc., La Junta, Colorado, for approval to acquire 83 per cent of the voting shares of The
La Junta State Bank, La Junta, Colorado and 56 per cent
of the voting shares of The Empire State Bank, Rocky
Ford, Colorado.
Columbus Bancshares, Inc., Columbus, Kansas, for approval
to acquire 90.92 per cent of the voting shares of The
Columbus State Bank, Columbus, Kansas. 2/
Metropolitan Bank and Trust Company, Philippine Securities
Corporation and Tytana Corporation, all of Makati, Rizal,
Philippines, for approval to acquire 35 per cent of the
voting shares of International Bank of California, Los
Angeles, California.

* * * * *

To Expand a Bank Holding Company Pursuant to Section
3(a)(3) of the Bank Holding Company Act of 1956
Approved
The Central Bancorporation, Inc., Cincinnati, Ohio, for
approval to acquire 100 per cent of the voting shares
(less directors 1 qualifying shares) of the successor by
merger to First National Bank of Mercer County, Celina,
Ohio.
First Bankers Corporation of Florida, Pompano Beach,
Florida, for approval to acquire 80 per cent or more of
the voting shares of First National Bank of Cape Canaveral,
Cape Canaveral, Florida. 2/
Central Bancompany, Jefferson City, Missouri, for approval
to acquire 100 per cent of the voting shares of The First
National Bank of Mexico, Mexico, Missouri.
Caprice Corporation, Red Lake Falls, Minnesota, for approval
to acquire 93.33 per cent or more of the voting shares of
Plummer State Bank, Plummer, Minnesota.

27

Application processed by the Reserve Bank on behalf of the Board of
Governors under delegated authority.




H.2, 1977 No. 33

- 5 ACTIONS OF THE BOARD-Continued

To Expand a Bank Holding Company Pursuant to Section
4(c)(8) of the Bank Holding Company Act of 1956
Withdrawn
United Virginia Bankshares Incorporated, Richmond, Virginia,
notification of intent to relocate de novo activities
(originating loans as principal; originating loans as
agent; servicing loans for nonaffiliates, individuals,
partnerships and corporations; servicing loans for affiliates of United Virginia Bankshares Incorporated; the
sale as agent, of credit disability mortgage redemption
and mortgage cancellation insurance in connection with
such loans and such other activities as may be incidental
to the business of a mortgage corporation) from 2200
Century Parkway, N.E., Suite 798, Atlanta, Georgia to
2295 Parklake Drive, N.E., Suite 470, Atlanta, Georgia,
through its subsidiary, United Virginia Mortgage Corporation (8/10/77) V
Delayed
Midland Mortgage Corporation, Detroit, Michigan, notification
of intent to engage in die novo activities (servicing
loans and other extensions of credit for any person or
entity) at 350 First National Building, Detroit, Michigan,
through its subsidiary, Midland Mortgage Service Corporation (8/11/77) 3/
Permitted
Shawmut Corporation, Boston, Massachusetts and Texas American
Bancshares, Inc., Fort Worth, Texas, notification of
intent to continue to engage in de novo activities (agricultural commodity financing, servicing such financing
and related and incidental activities, and in general,
making, servicing or acquiring, for its own account or
for the account of others, loans and other extensions of
credit to agricultural enterprises or secured by agricultural commodities) in Arizona, California, Idaho,
Iowa, Nevada, Utah, and Wyoming, through a joint venture,
American AgCredit Corporation, Guymon, Oklahoma at offices
in Guymon, Oklahoma; Amarillo, Texas; and Denver, Colorado
(8/12/77) 3/

3?

4(c)(8) and 4(c)(12) notifications processed by Reserve Bank on behalf
of the Board of Governors under delegated authority.




H.2, 1977 No. 33

6

-

ACTIONS OF THE BOARD-Continued
Chemical New York Corporation, New York, New York, notification of intent to relocate ^ e novo activities (making
of direct loans and purchasing sales finance contracts
representing extensions of credit such as would be made
or acquired by a finance company; acting as agent for the
sale of credit life insurance and credit accident and
health insurance issued in connection with extensions of
credit and making available to its borrowers, credit
related property and casualty insurance) from 221 West
Main Street, P. 0. Box 373, Lakeland, Florida to 4404
South Florida Avenue, Lakeland, Florida, through its
subsidiary, Sentry Acceptance Company - 802, Inc. (8/8/77)
3/
Chemical New York Corporation, New York, New York, notification of intent to engage in de novo activities (making "large" loans, in excess of $1,500 and not exceeding
$7,500 under the N.C. Gen. Stat. Sec. 24-1.2(a) and Sees.
24-12 through 17) at 4010 Oleander Drive, Wilmington;
Suite 213, Executive Park Building, Asheville; 104 W.
Trade St., Forest City; 533 Marion Plaza, Marion; 2224
North Church Street, Burlington; 332 Highway 84-60, S.W.,
Hickory; 320 West Dixon Boulevard, Shelby; 255 Charlois
Boulevard, Winston-Salem; 897 Peters Creek Parkway,
Winston-Salem; 175 Northpoint Avenue, High Point; 143
West Franklin, Chapel Hill; 225 Green Street, Fayetteville;
if5 Woodlawn Green, Suite 154, Charlotte; 4801 E. Independence Blvd., Charlotte; 600-B South Main Street,
Laurinburg; 415 West Meadowview Rd., Greensboro; 1100
East Wendover Ave., Greensboro; all located in North
Carolina, through its subsidiary, Sun Mortgage Acceptance
Corporation (8/7/77) 3/
Fidelcor, Inc., Rosemont, Pennsylvania, notification of
intent to relocate de novo activities (making and acquiring, consumer and mortgage loans to individuals including
second mortgages on properties in New Jersey where the
loans are owned by direct or indirect subsidiaries of
Fidelcor; engaging in a general consumer finance business; purchasing installment contracts arising from the
sale of personal property and services; and, with the
respect to all of the above, selling credit life and
credit accident and health insurance, mortgage life or

3/

4(c)(8) and 4(c) (12) notifications processed by Reserve Bank on behalf
of the Board of Governors under delegated authority.




H.2, 1977 No. 33

7
ACTIONS OF THE BOARD-Continued

disability insurance, accidental death insurance and
casualty insurance on the collateral and through Master
Life Insurance Company, an indirect subsidiary of
Fidelcor, reinsuring consumer-type credit life insurance
sold) from 92 Roosevelt Avenue, Carteret, New Jersey to
1363 Roosevelt Avenue, Carteret, New Jersey, through its
subsidiary, Fidelcor Financial Centers, Inc. (8/8/77) _3/
Union Trust Bancorp, Baltimore, Maryland, notification of
intent to engage in de novo activities (making installment loans to individuals for personal, family or household purposes; purchasing sales finance contracts executed in connection with the sale of personal, family or
household goods or services; and acting as agent in the
sale of credit life and credit accident and health insurance directly related to its extensions of credit) at

852-854 Terry Road, Jackson, Mississippi, 122 East Pine
Street, Hattiesburg, Mississippi, and 283 West Evans
Street, Florence, South Carolina, through its subsidiaries, Landmark Finance Corporation of Mississippi and
Landmark Finance Corporation of South Carolina (whollyowned subsidiaries of Landmark Financial Services, Inc•)
(8/7/77) 3 A
Landmark Banking Corporation, Fort Lauderdale, Florida, notification of intent to engage in de novo activities
(providing data processing services and storing and
processing banking, financial, or related economic data
for Landmark Banking Corporation and its subsidiaries and
affiliates, their correspondent banks, and other banking
institutions and their respective customers) at Central
and Ninth, St. Petersburg, Florida; 4640 South Orange
Blossom Trail, Orlando, Florida; and 225 East Las Olas
Boulevard, Fort Lauderdale, Florida, through a subsidiary, Landmark Data Services Corporation (8/7/77) 3/
BankAmerica Corporation, San Francisco, California, notification of intent to engage in de novo activities (making
and acquiring, for its own account loans and other extensions of credit such as would be made or acquired by a
finance company and servicing loans and other extensions
of credit; such activities will include, but not be
limited to, making loans and other extensions of credit

37

4(c)(8) and 4(c)(12) notifications processed by Reserve Bank on behalf
of the Board of Governors under delegated authority.




H.2, 1977 No. 33

~

8

—

ACTIONS OF THE BOARD-Continued
to small businesses and making loans secured by real
property; acting as agent or broker for the sale of
credit life insurance in connection with extensions of
credit made or acquired by FinanceAmerica Mortgage Services, Inc.) at 762 Wolcott Road, Waterbury, Connecticut,
through its indirect subsidiary, FinaneeAmerica Mortgage
Services, Inc. (8/8/77)
Security Pacific Corporation, Los Angeles, California, notification of intent to relocate de novo activities
(making and acquiring, for its own account or for the
account of others, loans and other extensions of credit
including secured and unsecured consumer, commercial and
agricultural loans, sale contracts and other forms of
receivables and such other types of loans and credit
extensions as are customarily made or acquired by a finance company; and acting as broker or agent for the sale
of credit-related life/accident and health insurance and
credit-related property and casualty insurance) from 1214
Main to 5193 Overland, Boise, Idaho, through its subsidiary, The Bankers Investment Company (8/11/77) 3/

*

* * * *

To Expand a Bank Holding Company Pursuant to Section
4(c)(12) of the Bank Holding Company Act of 1956
Permitted
American Financial Corp., Cincinnati, Ohio, and its subsidiaries, notification of intent to acquire from 5 per cent
to 35 per cent of the outstanding voting shares of the
following companies: Alpha Portland Industries, Inc.,
Easton, Pennsylvania; Florida Gas Company, Winter Park,
Florida; Integrated Resources, Inc., New York, New York;
and Pacific Holding Corp., Los Angeles, California (8/9/77)
3/
Berkshire Hathway Inc., New Bedford, Massachusetts, notification of intent to indirectly acquire more than 5 per
cent of the outstanding voting stock of United Merchants
& Manufacturers, Inc., New York, New York, a textile
manufacturing and retail clothing chain, through its
subsidiary, Blue Chip Stamps (8/13/77) 3/

37

4(c)(8) and 4(c)(12) notifications processed by Reserve Bank on behalf
of the Board of Governors under delegated authority.




H.2, 1977 No. 33




- 9 w
APPLICATIONS RECEIVED

To Establish a Domestic Branch Pursuant to Section
9 of the Federal Reserve Act
First Bank of Colonia, Colonia, New Jersey. Branch to be
established at 1001 Inman Avenue, Edison, Middlesex
County.
The Commercial and Savings Bank of Millersburg, Ohio. Branch
to be established at Route #62, Winesburg, Holmes County.
Metropolitan Bank & Trust Company, Tampa, Florida. Branch
to be established at State Road 674 and Pebble Beach
Boulevard, Sun City Center, Hillsborough County.

*

* *

* *

To Form a Bank Holding Company Pursuant to Section
3(a)(1) of the Bank Holding Company Act of 1956
Harrison Bancorporation, Cynthiana, Kentucky, for approval
to acquire 3,000 shares of the voting shares of The
Harrison Deposit Bank and Trust Company, Cynthiana,
Kentucky.
Janesville Holding Company, Janesville, Minnesota, for approval to acquire 80.1 per cent of the voting shares of
Janesville State Bank, Janesville, Minnesota.
Country Bancshares, Inc., Jamesport, Missouri, for approval
to acquire 89 per cent of the voting shares of Home
Exchange Bank of Jamesport, Jamesport, Missouri.

* * * * *

To Expand a Bank Holding Company Pursuant to Section
3(a)(3) of the Bank Holding Company Act of 1956
First National Boston Corporation, Boston, Massachusetts,
for approval to acquire 100 per cent of the voting shares
of the successor by merger to Blackstone Valley National
Bank, Whitinsville, Massachusetts.
First Bank System, Inc., Minneapolis, Minnesota, for approval to acquire 100 per cent (less directors T qualifying shares) of the voting shares of Granite City
National Bank of St. Cloud, St. Cloud, Minnesota, a
proposed new bank.

H.2, 1977 No. 33

10 APPLICATIONS RECEIVED

Allied Bancshares, Inc., Houston, Texas, for approval to
acquire 100 per cent of the voting shares (less directors' qualifying shares) of Addicks Bank, Addicks, Texas.
Allied Bancshares, Inc., Houston, Texas, for approval to
acquire 100 per cent of the voting shares (less directors' qualifying shares) of American National Bank,
Humble, Texas.
Allied Bancshares, Inc., Houston, Texas, for approval to
acquire 100 per cent of the voting shares (less directors' qualifying shares) of Hillcroft Bank, Houston,
Texas.
Allied Bancshares, Inc., Houston, Texas, for approval to
acquire 100 per cent of the voting shares (less directors' qualifying shares) of The First National Bank of
Newton, Newton, Texas.
Allied Bancshares, Inc., Houston, Texas, for approval to
acquire 100 per cent of the voting shares (less directors' qualifying shares) of Gulf Coast State Bank,
Winnie, Texas.

* * * * *

To Expand a Bank Holding Company Pursuant to Section
4(c)(8) of the Bank Holding Company Act of 1956
Chemical New York Corporation, New York, New York, notification of intent to engage in de^ novo activities (extending direct loan credit and purchasing sales finance contracts and such other extensions of credit as would be
made or acquired by a consumer finance company operating
under Arizona Revised Statutes Section 6-601 to 6-640
inclusive; and providing group credit life and group
accident and health insurance directly related to such
extensions of credit) at Basha's Shopping Center, Southern
& Mesa Drive, Mesa, Arizona, through its subsidiary,
Sunamerica Corporation (8/9/77) 3/

3?

4(c)(8) and 4(c)(12) notifications processed by Reserve Bank on behalf
of the Board of Governors under delegated authority.




H.2, 1 9 7 7 N o .

33

- 1 1 APPLICATIONS RECEIVED-Cont Itiued

Citicorp, New York, New York, notification of intent to
relocate due novo activities (acquiring and servicing,
sales finance and retail installment sales contracts and
agreements, and acquiring and servicing indebtedness
under such contracts and agreements; such servicing may
include issuance of credit and identification cards,
billing and related services) from 200 West Baltimore
Street, Baltimore, Maryland to 7720 York Avenue, Towson,
Maryland, through its subsidiary, Citicorp Financial,
Inc. (8/8/77) 3/
Citicorp, New York, New York, notification of intent to
engage in de novo activities (making consumer installment
personal loans, purchasing and servicing for its own account consumer installment sales finance contracts, making loans for the account of others such as one-to-four
family unit mortgage loans, making loans to individuals
and businesses secured by real and personal property; and
sale of credit related life and accident and health
insurance) at Chula Vista Square, 542 Broadway, Suite M,
San Diego; University Towne Centre, Regional Shopping
Center, San Diego; College Grove Center, Store No. F-8-E,
San Diego; and 1279 Camino Del Rio South, San Diego, all
located in California, through its subsidiary, Citicorp
Person-to-Person Financial Center, Inc. (8/9/77) 3/
Bank of Virginia Company, Richmond, Virginia, notification
of intent to engage in de novo activities (interim development and construction lending, residential permanent
mortgage lending, commercial permanent mortgage lending,
commercial permanent mortgage lending and servicing of
permanent mortgages) at 3206 Cutshaw Avenue, Richmond,
Virginia, through an indirect subsidiary, Bank of Virginia
Second Mortgage Corporation (a wholly-owned subsidiary of
BVA Credit Corporation) (8/11/77) 3/
Maryland National Corporation, Baltimore, Maryland, notification of intent to engage in de novo activities (engage
generally in the business of a mortgage banker, mortgage
broker and mortgage servicing firm including, but not
limited to, second mortgage financing; originating, buying, selling and otherwise dealing in mortgage loans as
principal or agent; servicing mortgage loans for affiliated
or nonaffiliated individuals, partnerships, corporations
or other entities; acting as adviser in mortgage loan and

3?

4(c)(8) and 4(c)(12) notifications processed by Reserve Bank on behalf
of the Board of Governors under delegated authority.




H.2, 1977 No. 33

-

12 -

APPLICATIONS RECEIVED-Continued
second mortgage loan transactions; and engaging in the
sale, as agent, of credit life, credit disability, credit
accident and health, loan redemption and loan cancellation insurance in connection with extensions of credit bybank and nonbank subsidiaries of the holding company) at
10 Light Street, Baltimore, Maryland; 225 North Calvert
Street, Baltimore, Maryland; Tysons Corner Center, McLean,
Virginia; and 1114 MacArthur Drive, Greater Wilmington
Airport, New Castle, Delaware, through its subsidiary,
Homeowners Loan Corporation (8/11/77) 3/
Maryland National Corporation, Baltimore, Maryland, notification of intent to engage in de novo activities (engaging generally in the business of a mortgage banker and
mortgage broker; and engaging in the business of arranging financing, financial structuring and analysis of real
estate problems) at 450 Park Avenue, New York, New York
and 10 Light Street, Baltimore, Maryland, through a
wholly-owned subsidiary known as Old Line Realty Corporation to form a joint venture to be known as Old Line
Realty Company (8/10/77) 3/
Avon Securities, Inc., Avon Park, Florida, notification of
intent to engage in de novo activities (data processing
services for financial institutions) at 560 E. McNab
Road, Pompano Beach, Florida, through a subsidiary,
Central Independent Financial Centers, Inc. (8/11/77) 3/
United Missouri Bancshares, Inc., Kansas City, Missouri,
for approval of the acquisition of United Missouri Insurance Company, Phoenix, Arizona and to engage in the
following activities (underwriting, as reinsurer, credit
life and credit disability coverages directly related to
extensions of credit by the bank holding company's subsidiaries)
BankAmerica Corporation, San Francisco, California, notification of intent to engage in <de novo activities (making
or acquiring, for their own account loans and other extensions of credit such as would be made or acquired by a
finance company; FinanceAmerica Corporation will engage
in making consumer installment loans, making loans and
other extensions of credit to small businesses, purchasing installment sales finance contracts, and servicing
loans and other extensions of credit; FinanceAmerica Loan
and Investment Company will engage in making consumer

37

4(c)(8) and 4 ( c ) ( 1 2 ) n o t i f i c a t i o n s processed by Reserve Bank on behalf
of the Board of Governors under delegated authority.




H.2, 1977 No. 33

- 13 APPLICATIONS RECEIVED-Continued

installment loans, making loans and other extensions of
credit to small businesses, making loans secured by real
or personal property, and servicing loans and other extensions of credit; both corporations will act as agent
or broker for the sale of credit related life and credit
related accident and disability insurance in connection
with extensions of credit made or acquired by FinanceAmerica Corporation or FinaneeAmerica Loan and Investment
Company) at 7919 Preston Highway, Okolona, Kentucky,
through its indirect subsidiaries, FinanceAmerica Corporation (a Kentucky Corporation) and FinanceAmerica Loan
and Investment Company (8/3/77) 3/
Security Pacific Corporation, Los Angeles, California, notification of intent to engage in de novo activities
(acting as investment or financial adviser to the extent
of serving as investment adviser as defined in Section
2(a)(20) of the Investment Company Act of 1940, to an
investment company registered under that Act; providing
portfolio investment advice to any other person and
furnishing general economic information and advice,
general economic statistical forecasting services and
industry studies) at 333 South Hope Street, Los Angeles,
California, through its subsidiary, Security Pacific
Investment Managers, Inc. (8/4/77) 3/
Seilon, Inc., Toledo, Ohio, notification of intent to continue to engage in die novo activities (leasing motor
vehicles to the public or acting as agent, broker, or
adviser in leasing such property where at the inception
of the initial lease the effect of the transaction (and,
with respect to governmental entities only, reasonably
anticipated future transactions) will yield a return that
will compensate the lessor for not less than the lessors
full investment in the property plus the estimated total
cost of financing the property over the term of the
lease, from rentals; estimated tax benefits (investment
tax credit, net economic gain from tax deferral from
accelerated depreciation and other tax benefits with a
substantially similar effect); the estimated residual
value of the property at the expiration of the initial
term of the lease which in no case shall exceed 20 per
cent of the acquisition cost of the property to the
lessor and in the case of a lease of not more than seven
years in duration, such additional amount, which shall

37

4(c)(8) and 4(c)(12) notifications processed by Reserve Bank on behalf
of the Board of Governors under delegated authority.




IL2, 1977 No. 33

14
APPLICATIONS RECEIVED-ContInued

not exceed 60 per cent of the acquisition cost of the
property as may be provided by ail unconditional guarantee
by a lessee, independent third party or manufacturer which
has been determined by the lessor to have the financial
resources to meet such obligation that will assure the
lessor of recovery of its investment and cost of financing)
at 33 Mitchell Boulevard, San Rafael, California and 1965
South Main Street, Salt Lake City, Utah, through its
subsidiary, Bancorporation Leasing (8/8/77) 3/

* * * * *

REPORTS RECEIVED
None

* * * * *

PETITIONS FOR RULEMAKING
None

3/

4(c)(8) and 4(c)(12) notifications processed by Reserve Bank on behalf
of the Board of Governors under delegated authority.