Full text of H.2 Actions of the Board, Its Staff, and the Federal Reserve Banks; Applications and Reports Received : July 24, 1976

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ANNOUNCEMENT BY
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
(H.2, 1976 No. 30)
Actions of the Board; Applications and Reports
Received During the Week Ending July 24, 1976
ACTIONS OF THE BOARD
Report on bill, S. 3163, letter to Chairman Proxmire of the
Senate Banking, Housing and Urban Affairs Committee commenting on a bill that would permit interest to be paid on
demand deposits that consist of public funds of the United
States or of a State or a political subdivision or instrumentality of a State.
Further consideration early next year to the question whether
commerical banks should be permitted.to pay the same
ceiling rate of interest on Individual Retirement Accounts as
thrift institutions.
Amendments to Regulation G, Securities Credit By Persons Other
Than Banks, Brokers, Or Dealers, to reduce the amount of
paperwork and reporting required in the regulation of
securities credit.
Letter to Senator Biden, Chairman of the Consumer Affairs
subcommittee of the Banking, Housing and Urban Affairs
Committee in response to questions raised relating to
violations of the Truth in Lending Act.
American Security Corporation, Washington, D.C., issuance
of order announcing determination that ASC is entitled
to grandfather privileges with respect to certain nonbanking
activities.
Citibank Overseas Investment Corporation, New York, New York,
consent for an additional extension of time within which to
establish a branch in San Juan, Puerto Rico. JL/
First Citizens Bank of Butte, Butte, Montana, extension of time
for three months within which First Citizens Bank of Butte
may accomplish membership in the Federal Reserve System. 1/
1/ Application processed on behalf of the Board of Governors under delegated
authority.




H.2, 1976 No. 30

2

ACTIONS OF THE BOARD-Continued
Dauphin Deposit Corporation, Harrisburg, Pennsylvania,
extension of time of three months from August 1, 1976,
to November 1, 1976, in which to consummate acquisition
of 100 per cent of the voting shares of Dauphin Deposit
Bank and Trust Company, Harrisburg, Pennsylvania. 1/
First Bancshares of Florida, Inc., Boca Raton, Florida,
extension of time until October 19, 1976, within which to
acquire shares of and open Vero Beach National Bank, Vero
Beach, Florida. V
Kentucky National Corporation, Louisville, Kentucky, 90-day
extension of time, from July 24, 1976, until October 22,
1976, to commence certain de novo activities at an office
at 101 South Fifth Street, Louisville, Kentucky. V
Northern Michigan Corporation, Escanaba, Michigan, extension
of time from July 24, 1976, to October 24, 1976, within
which the de novo Northern Michigan Bank of Kingsford,
Kingsford, Michigan, shall be opened for business; and to
extend from July 24 to October 24, 1976, the time within
which the Corporation may consummate acquisition of Northern
Michigan Bank of Kingsford, Kingsford, Michigan. 1/
Northeast United Bancorp, Inc., of Texas, Fort Worth, Texas,
extension of time to November 17, 1976, in which to consummate the acquisition of First State Bank, Bedford, Texas. 1/
Republic of Texas Corporation, Dallas, Texas, extension of time
to October 27, 1976, within which to consummate the acquisition of Braes Bayou National Bank, Houston, Texas and to open
for business. 1/
Redwood National Mortgage Company, San Francisco, California, a
subsidiary of Redwood Bancorp, also of San Francisco, extension
of time to October 24, 1976, within which to divest itself
of unimproved property in Albany, California. 1/
Peoples State Bank of Holland, Michigan, extension of time to
December 19, 1976, within which to establish a branch in the
vicinity of 501 West Main Street, Holland Township, Michigan. 1/
Foxworth Bank, Foxworth, Mississippi, investment in bank
premises. 1/
1/

Application processed on behalf of the Board of Governors under delegated
authority.
NOTE: The H.2 release is now published in the Federal Register. It will
continue to be sent, upon request, to anyone desiring a copy.



H.2, 1976 No. 30

-3ACTIONS OF THE BOARD-Continued

To Establish a Domestic Branch Pursuant to Section
9 of the Federal Reserve Act
Approved
Union Trust Company of Maryland, Baltimore, Maryland.
Branches to be established at the following locations:
A.

In the Bel Air Plaza Shopping Center, Bel Air, Hartford County.

B.

In the College Center Building, Towson State College,
Baltimore County. 2/

First Bank and Trust Company of South Bend, South Bend,
Indiana. Branch to be established at the southeast corner
of State Road No. 23 and Rittersweet Road, Grander, Harris
Township, St. Joseph County. 2/
Louisville Trust Bank, Inc., Louisville, Kentucky. Branch to
be established at 3940 Westport Road, Louisville, Jefferson
County. 2/
Seattle Trust and Savings Bank, Seattle, Washington. Branch
to be established on the southeast corner of N.E. 85th Street
and 124th Avenue N.E. in the unincorporated King County. 2/
*

* * * *

International Investments and Other Actions Approved
Pursuant to Sections 25 and 25(a) of the Federal
Reserve Act and Sections 4(c)(9) and 4(c)(13) of the
Bank Hoiding Company Act of 1956, as amended
First Chicago International Banking Corporation, Chicago,
Illinois: Board interpretation re: letter of credit
transactions.
State of New York Banking Department, New York, New York:
views of the Board for establishment of an agency in
New York City by The Sumitomo Trust and Banking Company,
Limited, Osaka, Japan.
2}

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




- 4

H.2, 1976 No. 30

ACTIONS OF THE BOARD-Continued
First Chicago International Finance Corporation, Chicago,
Illinois: Investment - to acquire First Chicago Investments Canada Limited, Toronto, Canada.
Security Pacific Overseas Corporation, Los Angeles,
California: regarding the sale of mutual funds.
Allied Bank International, New York, New York: Investment to establish and wholly-own a de novo Bank and
Trust Company in Nassau, to be known as Allied Bank and
Trust Company (Bahamas) Limited.
First National City Overseas Investment Corporation, New
York, New York: FNC Comercio E. Participacoes S.A.
to issue debt obligations, Rio de Janeiro, Brazil.
American National Overseas Corporation, Chicago, Illinois:
Investment - to enter into a joint venture, AmericorpServicos Assessoria E. Particiapoes Limitada, Brazil.
*

* * * *

To Merge Pursuant to Section 18(c) of the Federal
Deposit Insurance Act
Approved
First Guaranty Bank, Hurt, Virginia for prior approval
to merge with Schoolfield Bank and Trust Comapny,
Danville, Virginia.
* * * * *

To Form a Bank Holding Company Pursuant to Section
3(a)(1) of the Bank Holding Company Act of 1956
Approved
Bancook Corporation, Cook, Nebraska, for approval to
acquire 80 per cent or more of the voting shares of
Farmers Bank of Cook, Cook, Nebraska. 2/
Hastings State Company, Hastings, Nebraska, for approval
to acquire 80 per cent or more of the voting shares of
Hastings State Bank, Hastings, Nebraska.
2/

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




H.2, 1976 No. 30

~ 5 ACTIONS OF THE BOARD-Continued

Denied
C N Banc Holding Corporation, Maplewood, Missouri, for
approval to acquire 80 per cent or more of the voting
shares of Citizens National Bank of Greater St. Louis,
Maplewood, Missouri.
*

* * * *

To Expand A Bank Holding Company Pursuant to Section
4(c)(8) of the Bank Holding Company Act of 1956
Approved
Mellon National Corporation, Pittsburgh, Pennsylvania,
for approval to acquire 100 per cent of the voting
shares of Local Loan Company, Chicago, Illinois.
Delayed
Southwest Bancshares, Inc., Houston* Texas, notification
of intent to engage in de novo activities (originating
loans as principal, originating loans as agent, servicing
loans for nonaffiliated individuals, partnerships, and
corporations; servicing loans for subsidiaries of Southwest Bancshares, Inc. and such other activities as may
be incident to the business of a mortgage company) at
2901 West Loop South, Houston, Texas, through a subsidiary, Southwest Bancshares Mortgage Company (7/21/76)
3/
Reactivated
Manufacturers Hanover Corporation, New York, New York,
notification of intent to engage in de novo activities
(of a consumer finance business including without limitation making or acquiring, for its own account or for
the account of others, loans and other extensions of
credit such as would be made by a finance company,
servicing loans and other extensions of credit for any person;
and acting as agent or broker for the sale of credit
related life accident and health insurance and consumer
credit related property (including non-filing insurance)
and casualty insurance which is related to extension of
credit made or acquired by Ritter Finance Company and/or
its direct and indirect subsidiaries) at King Street,
Elizabethtown, North Carolina, through its subsidiary,
Ritter Finance Company, Inc., of North Carolina (6/30/76)
3/
2/
3/

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




H.2, 1976 No. 30

—

6

~

ACTIONS OF THE BOARD-Continucd
Root River Agency, Inc., Preston, Minnesota, notification
of intent to engage in de novo activities (an agriculture
credit company) at 100 Anthony, North, Preston, Minnesota
(7/23/76) 3/
Permitted
Citicorp, New York, New York, notification of intent to
engage in de novo activities (consumer personal lending,
preauthorized consumer revolving credit; and acting as
broker for the sale of consumer credit related life/
accident and health insurance and consumer credit related property and casualty insurance; if these proposals are effected, the subsidiary will offer to sell
insurance as follows: credit life/accident and health or
individual decreasing or level (in the case of single
payment loans) life insurance to cover the outstanding
balance of consumer credit transactions singly or
jointly with their spouses or cosigners in the case of
life coverage in the event of death, or, to make the
contractual monthly payments on the consumer credit
transactions in the event of the obligatorsT disability
to the extent permissable under applicable State insurance laws and regulations; and individual casualty
insurance on personal property subject to security
agreements and to include liability coverage in home or
automobile owner "package" policies where such is the
general practice; further, in regard to the sale of
credit related insurance, the subsidiary will not act as
a general insurance agency) at 1701 North Kipling Street,
Suite 205, Lakewood, Colorado, through its subsidiary,
Nationwide Financial Service Corporation and its subsidiary, Citicorp Person-to-Person Financial Center,
Inc., (7/24/76) 3/
CR&T Bancshares, Inc., Columbus, Georgia, notification of
intent to engage in d£ novo activities (writing and
issuing credit life insurance policies and credit accident
and health insurance policies in connection with the extensions of credit such as would be made by a second mortgage company) at 1148 Broadway, Columbus, Georgia, through
a subsidiary, CB&T Homeowners, Inc. (7/24/76) 3/
3/

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




H.2, 1976 No. 30

-7ACTIONS OF THE BOARD-Continued

Flagship Banks, Inc., Miami Beach, Florida, notification
of intent to continue to engage through a subsidiary
known as Flagship Service Corporation (Company), a
subsidiary, Flagship Bank of Tampa in the following
activities now being performed by Company (providing
bookkeeping or data processing services for the internal
operations of the holding company and its subsidiaries
and storing and processing other banking, financial or
related economic data such as performing payroll, accounts
receivable or payable, or billing services) After reorganization, Company will be a direct wholly-owned subsidiary
of Flagship Banks, Inc.; activities will be conducted at
120 Andalusia Avenue, Coral Gables; 4720 Cypress Street,
Tampa; 103 Century 21 Drive, Suite 110, Building No. 2,
Jacksonville; and 5800 Diplomat Circle, Ambassador Building,
Orlando, all located in Florida (7/24/76) 3/
Bankshares of Nebraska, Inc., Grand Island, Nebraska, notification of intent to engage in de_ novo activities (sale of
credit life and credit disability (accident and health)
insurance on extensions of credit) at First Center, 3413
West Thirteenth Street, Grand Island, Nebraska, through a
subsidiary, First Savings Company (7/22/76) 3/
BankAmerica Corporation, San Francisco, California, notification of intent to engage in de novo activities (making or
acquiring for its own account loans and other extensions of
credit, servicing for itself or others loans and other
extensions of credit such as would be made or provided by
a finance company, including but not limited to the
following specific activities: making of consumer installment
loans, purchasing installment sales finance contracts, making
loans and other extensions of credit to small businesses,
and making loans secured by real or personal property or a
combination thereofacting as agent or broker for the sale
of credit life and credit accident and health insurance, and
credit related property and casualty insurance in connection
with extensions of credit by FinanceAmerica Corporation) at
offices to be located at 31 A Black Horse Pike, Runnemede, New
Jersey, through its subsidiary, FinanceAmerica Corp., a New
Jersey Corporation (7/19/76) 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, 1976 No. 30

- 8 ACTIONS OF THE BOARD-Continued

Patagonia Corporation, Tucson, Arizona, notification of intent to engage in de novo activities (originating residential
mortgages and mortgages on commercial real estate for sale
to permanent investors; servicing of mortgages for permanent
investors; and interim lending for land development and
construction financing where the loan will be sold to
a permanent investor) at 1700 First Avenue, Yuma, Arizona,
through its subsidiary, Western American Mortgage Company
(7/22/76)2/
Withrawn
CHAMBANCO, INC., Chambers, Nebraska, for approval to acquire
the assets of Adams & Adams Insurance Agency, Chambers,
Nebraska.
Harvard State Company, Harvard, Nebraska, for approval to
acquire the assets of Voorhees Insurance Agency, Harvard,
Nebraska.
3/

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




9

H.2, 1976 No. 30

APPLICATIONS RECEIVED
To Become a Member of the Federal Reserve System
Pursuant to Section 9 of the Federal Reserve Act
The Central Trust Company of Canal Winchester, Canal
Winchester, Ohio.
*

* * * *

To Establish a Domestic Branch Pusuant to Section 9
of the Federal Reserve Act
Old Kent Bank of Kentwood, Kentwood, Michigan. Branch
to be established in the vicinity of 52nd Street and
Eastern Avenue, S.E., Kentwood.
* * * * *

To Merge Pursuant to Section 18(c) of the Federal Deposit
Insurance Act
First Virginia Bank of Colonial Heights, Colonial Heights,
Virginia for prior approval to merge with Richmond
National Bank, Richmond, Virginia.
*

* * * *

To Form a Bank Holding Company Pursuant to Section
3(a)(1) of the Bank Holding Company Act of 1956
Nabach, Inc., Farmer City, Illinois, for approval to
acquire 52.27 per cent of the voting shares of State
National Bank in Lincoln, Lincoln, Illinois.
Sidney Holding Company, Sidney, Montana to acquire
80.5 per cent of the voting shares of The Sidney
National Bank, Sidney, Montana. 2/
2j Application processed by the Reserve Bank on behalf of the Board
Governors under delegated authority.




i

H.2, 1 9 7 ^ ) . 30

-

10

APPLICATIONS RECEIVED-Continued
To Expand a Bank Holding Company Pursuant to Section
3(a)(3) of the Bank Holding Company Act of 1956
LITCO Corporation of New York, Garden City, New York,
for approval to acquire 100 per cent of the voting
shares of Long Island Bank, Hicksville, New York,
successor by conversion to Long Island National
Bank, Hicksville, New York. 2)
Tower-Soudan Agency, Inc., Tower, Minnesota, for approval
to acquire an additional 43.67 per cent of the voting
shares of State Bank of Tower, Tower, Minnesota. If
First City Bancorporation of Texas, Inc., Houston, Texas,
for approval to acquire 100 per cent of the voting
shares (less directors' qualifying shares) of First
City Bank-Northeast, N.A., Houston, Texas.
* * * * *

To Expand a Bank Holding Company Pursuant to Section
4(c)(8) of the Bank Holding Company Act of 1956
Citicorp, New York, New York, notification of intent to
engage in de novo activities (purchasing and servicing
for its own account consumer installment sales finance
contracts, and will act as broker for the sale of consumer credit related life and accident and health insurance and consumer credit related property and casualty
insurance on purchased consumer installment sales finance
contracts; said insurance will only be offered when
such transactions are the equivalent of direct extensions of
consumer credit by the subsidiary. If this proposal is
effected, the subsidiary will offer to sell insurance
as follows: group credit life and accident and health
insurance to cover the outstanding balances on consumer
installment sales finance contracts to the obligator,
singly or jointly with their spouses or co-signers in the
case of life coverage, in the event of death, or, to make
the contractual monthly payments on consumer installment
sales finance transactions in the event of the obligators'
disability to the extent permissible under applicable state
insurance laws and regulation; individual casualty insurance
on personal property subject to security agreements; further,
in regard to the sale of credit related insurance, the
subsidiary will not act as a general insurance agency) at Mall
View Office Park, 5313 50th Street, Building B, Suite 5,
Lubbock, Texas, through its subsidiary, Nationwide Financial
Corporation (7/21/76) 3/
2/

Application processed by the Reserve Bank on behalf of the Board of
Governors under delegated authority.
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, 1976 No. 30

-

11

~

APPLICATIONS RECEIVED-Contlnued
Florida National Banks of Florida, Inc., Jacksonville,
Florida, notification of intent to engage in de novo
activities (the business of acting as agent for the
sale of credit life and accident and health insurance
directly related to extensions of credit by the bank
holding company and/or its banking and nonbanking subsidiaries), at Titusville, Opa-Locka, Miami, Fort Pierce,
Coral Gables, Madison, Bushnell, Bartow, De Land, St.
Petersburg, Ft. Lauderdale, Daytona Beach, Pensacola,
Jacksonville, Orlando, Vero Beach, Port St. Joe, West
Palm Beach, Key West, Gainesville, Brent, Starke,
Lakeland, Chipley, Belle Glade, Ocala, Perry and
Fernandina Beach, all located in Florida (7/20/76) 3/
Century Financial Corporation of Michigan, Saginaw, Michigan,
for approval to acquire all the voting shares of Century
Life Insurance Company of Michigan, Phoenix, Arizona,
(underwriting, as reinsurer, credit life and credit
accident and health insurance which is directly related
to extensions of credit by the bank holding company
system)
Nabach, Inc., Farmer City, Illinois, for approval to continue
to engage in the provision of investment advisory service
for State National Bank in Lincoln, Lincoln, Illinois,
Security Pacific Corporation, Los Angeles, California,
notification of intent to engage in de_ novo activities
(making or acquiring for its own account, or for the
account of others, loans and extensions of credit,
including making consumer installment personal loans,
to small businesses and other extensions of credit such
as would be made by a factoring company or a commerical
finance company, and acting as broker or agent for the
sale of consumer-related life/accident and health insurance
and consumer related property and casualty insurance) at
16052 Beach Blvd, Huntington Beach, California, through
its subsidiary, Security Pacific Finance Corp. (7/16/76) 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, 1976 No. 30

-12REPORTS RECEIVED

Current Report Filed Pursuant to Section 13
of the Securities Exchange Act
:
Bank of the Commonwealth, Detroit, Michigan
* * * * *
PETITIONS FOR RULEMAKING
None.