Full text of H.2 Actions of the Board, Its Staff, and the Federal Reserve Banks; Applications and Reports Received : June 19, 1976

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ANNOUNCEMENT BY
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
(H.2, 1976 No. 25)
Actions of the Board; Applications and Reports
Received During the Week Ending June 19, 1976
ACTIONS OF THE BOARD
Regulation D and 0 amendments, intended to provide
greater flexibility to banks in adding to their capital
structure, amendments will become effective July 26,
1976.
The Board has issued an interpretation regarding the
ability of a member bank to include certain automated
payments in the account "cash items in process of
collection".
Standby letters of credit, letter to Chairman Proxmire,
Senate Committee on Banking, Housing and Urban Affairs,
in response to request for material regarding standby
letters of credit and related instruments issued by
commercial banks.
Reserves, the Board has considered the question of die novo
member banks and has determined that it is appropriate
to extend transitional relief in the form of waiver of
penalties for reserve requirement deficiencies to such
banks, based on a declining percentage of total required
reserves over a 24-month period in accordance with the
specified schedule.
Report on bill H.R. 13955, letter to Chairman Rees,
Subcommittee on International Trade, Investment, and
Monetary Policy, in response to request for Board's
comments on an amendment which may be proposed to H.R.
13955.
Trans Texas Bancorporation, Inc., El Paso, Texas, extension
of time to November 1, 1976, within which to acquire
Chamizal National Bank, El Paso, Texas, and to open the
bank for business. 1/
Arkansas Bank & Trust Company, Hot Springs, Arkansas, to
make an additional investment in bank premises. 1/

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



H.2, 1976 No. 25

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2

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ACTIONS OF THE BOARD-Continued
Fifth Third Bank, Cincinnati, Ohio, extension of time
to January 8, 1977, within which to establish a branch
at Hamilton and Goodman Avenues, North College Hill,
Ohio. 1/
Chase Manhattan Overseas Banking Corporation, New York,
New York, extension of time within which to complete its
additional investment in Chase and Bank of Ireland
(International) Ltd., Dublin, Ireland. 1/
Chase Manhattan Bank, N.A., New York, New York, extension
of time within which to acquire additional shares of
Banco del Comercio, Bogota, Colombia. V
First National Bank of Coalport, Coalport, Pennsylvania,
proposed merger with United States National Bank in
Johnstown, Johnstown, Pennsylvania; report to the
Comptroller of the Currency on competitive factors. 1/
Genesee Federal Savings and Loan Association, Town of
Irondequoit, New York, proposed merger with The New York
Bank for Savings, New York, New York; report to the
Federal Deposit Insurance Corporation on competitive
factors. 1/
Guaranty Bank, Canby, Oregon, proposed merger with Bank of
Oregon, Woodburn, Oregon; report to the Federal Deposit
Insurance Corporation on competitive factors. 1/
State Savings Bank of Fenton, Fenton, Michigan, extension
of time to July 21, 1976, within which to withdraw from
membership in Federal Reserve System.

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.
V




H.2, 1976 No. 25

- 3 ACTIONS OF THE BOARD-Continued

To Establish a Domestic Branch Pursuant to
Section 9 of the Federal Reserve Act
Approved
Manufacturers and Traders Trust Company, Buffalo, New
York. Branch to be established at 2400 Seneca Street,
West Seneca. 2/
European-American Bank and Trust Company, New York,
New York. Branch to be established at 61-49 188th
Street, Fresh Meadows, Borough of Queens. 2/
The Ousted State Bank, 0nsted, Michigan. Branch to be
established out-of-town at 202 Hyde Road, unincorporated
village of Clark Lake, Columbia Township, Jackson
County. 2/
Harbor Springs State Bank, Harbor Springs, Michigan.
Branch to be established at the northeast corner of the
intersection of Pleasantview Road and M-131, Little
Traverse Township, Emmet County. 2/

* * * * *

International Investment 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 Holding Company Act of 1956, as amended
Citibank, National Association, New York, New York: to
continue to hold the shares of Far East Bank Limited,
Hong Kong, now that the latter holds all the shares of a
nominee company, Far East Bank Nominees Limited, Hong
Kong, without the requisite prior consent of the Board
of Governors.

* * * * *

To Form a Bank Holding Company Pursuant to Section
3(a)(1) of the Bank Holding Company Act of 1956
Approved
Fiduciary Investment Company of New Jersey, Newark, New
Jersey, for approval to acquire 50.2 per cent or more of
the voting shares of Security National Bank of New
Jersey, Newark, New Jersey.
2/~Application processed by the Reserve Bank on behalf of the Board of
of Governors under delegated authority.



H.2, 1976 No. 25

- 4
ACTIONS OF THE BOARD-Continued

Mountain Grove Bancshares, Inc. , Mountain Grove, Missouri,
for approval to acquire 90.83 per cent of the voting
shares of Mountain Grove National Bank, Mountain Grove,
Missouri. 2/
Tioga Bank Holding Company, Tioga, North Dakota, for approval to acquire 100 per cent of the voting shares
(less directors' qualifying shares) of The Bank of
Tioga, Tioga, North Dakota.
El Dorado Bancshares, Inc., Prairie Village, Kansas, for
approval to acquire 98 per cent or more of the voting
shares of Citizens State Bank of El Dorado, El Dorado,
Kansas.
Denied
Nebraska Banco, Inc., Ord, Nebraska, for approval to acquire
100 per cent of the voting shares of Nebraska State
Bank, Ord, Nebraska. The section 4(c)(8) application
for permission to acquire all of the assets of Pierce
Agency, Inc., Ord, Nebraska, hereby becomes moot.
Withdrawn
Pioneer Bancorp, Inc., Northbrook, Illinois, for approval
to acquire 99.7 per cent of the voting shares of Pioneer
Bank & Trust Company, Chicago, Illinois.

*

* * * *

To Expand a Bank Holding Company Pursuant to Section
3(a)(3) of the Bank Holding Company Act of 1956
Approved
Florida Bankshares, Inc., Hollywood, Florida, for approval
to acquire 23.8 per cent of the voting shares of First
National Bank of Sebring, Sebring, Florida.
American Affiliates, Inc., South Bend, Indiana, for approval
to retain 3.83 per cent of the voting shares of American
National Bank and Trust Company of South Bend, South
Bend, Indiana and to acquire an additional 3.74 per
cent of the voting shares of Bank.

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




H.2, 1 9 7 6 N o . 25

-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
Delayed
Walter E. Heller International Corporation, Chicago,
Illinois, notification of intent to engage in de novo
activities (to engage in the business of commercial
finance, factoring, and leasing) at 300 Delaware Avenue,
Wilmington, Delaware, through its subsidiary, Walter E.
Heller & Company (6/18/76) 3/
Permitted
Citicorp, New York, New York, notification of intent to
relocate die novo activities (making of consumer installment personal loans, purchasing consumer installment
sales finance contracts; 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 this proposal is effected, Nationwide Financial Corporation of California will offer to
sell insurance as follows: group credit life/accident
and health insurance to cover the outstanding balances
of loans to borrowers in the event of their death, or,
to make the contractual monthly payments on the loans in
the event of the borrower's disability; and individual
physical damage insurance on personal property subject
to security agreements (including liability only when
such insurance is sold as part of an insurance package
on such property); further, in regard to the sale of
credit related insurance, Nationwide Financial Corporation of California will not offer insurance counseling)
from 934 S. Euclid Avenue, Anaheim, California to 1022
North Tustin Avenue, Orange, California, through its
subsidiary, Nationwide Financial Corporation of Calif.ornia (6/17/76) 3/
Mellon National Corporation, Pittsburgh, Pennsylvania,
notification of intent to engage in de_ novo activities
(making or acquiring, for its own account or the account
of others, loans and other extensions of credit such as
would be made by a mortgage company; acting as insurance
agency in connection with credit life and disability
insurance and mortgage redemption insurance which is
directly related to the extension of credit or provision

3/ 4(c)(8) and 4(c) (12) notificatons processed by Reserve Bank on behalf
of the Board of Governors under delegated authority.




ACTIONS OF THE BOARD-Con tinned
of other financial services by Carruth Mortgage Corporation) at 10001 Lake Forest Boulevard, New Orleans,
Louisiana, through its wholly-owned subsidiary, Carruth
Mortgage Corporation (6/17/76) 3/
Mellon National Corporation, Pittsburgh, Pennsylvania,
notification of intent to engage in de novo activities
(acting as insurance agent or broker with respect to
credit life insurance, credit accident and health insurance, and/or mortgage redemption insurance which
insurance is directly related to an extension of credit
by Mellon National Corporation, its subsidiaries, or
affiliates; specifically such insurance will be associated with extensions of credit made by the various
branch offices of Mellon Bank, N.A., at Mellon Bank
Building, Mellon Square, Pittsburgh, Pennsylvania) at
6400 Steubenville Pike, Robinson Township, McKees Rocks,
Pennsylvania, through a wholly-owned subsidiary, Laurel
Insurance Agency, Inc. (6/18/76) 3/
Pittsburgh National Corporation, Pittsburgh, Pennsylvania,
notification of intent to relocate de novo activities
(mortgage banking, including the making, acquiring, and
servicing for its own account or the accounts of others,
loans and other extensions of credit) from 4300 Stevens
Creek Boulevard, Suite 275, San Jose, California to The
Sherman Building, Suite 10, 3031 Tisch Way, San Jose,
California, through its wholly-owned subsidiary, The
Kissell Company, Springfield, Ohio (6/13/76) 3/
Washington Bancshares, Inc., Spokane, Washington, notification of intent to engage in activities (making or
acquiring, for its own account or for the account of
others, loans or other extensions of credit secured by
real estate mortgages or deeds of trust and the servicing of such loans, and such other activities as are
incidental to the operations of a mortgage company
including, but not limited to; acting as agent or broker
for the sale of mortgage redemption life and disability
insurance and casualty insurance to be issued in connection with making or acquiring such loans and servicing as an escrow or closing agent in connection with
the closing of real estate transactions financed by it)
at One Lake Bellevue, Bellevue, Washington, through its
subsidiary, Bancshares Mortgage Company, substantially
all of the assets of Bankwest Mortgage Company (6/17/76)
3/
3/ 4(c)(8) and 4(c)(12) notificatons processed by Reserve Bank on behalf
of the Board of Governors under delegated authority.



H.2, 1976 No. 25

7
APPLICATIONS RECEIVED

To Establish an Overseas Branch of a Member Bank
Pursuant to Section 25 of the Federal Reserve Act
Bank of America, National Trust and Savings Association,
San Francisco, California: branch - Island of Jersey in
the Channel Islands.

* * * * *

To Form a Bank Holding Company Pursuant to Section
3(a)(1) of the Bank Holding Company Act of 1956
The Berlin City Bank, Berlin, New Hampshire, for approval to retain 50.33 per cent of the voting shares of
The White Mountain Trust Company, Gorham, New Hampshire.
Banco de Santander, Santander, Spain, for approval to
acquire through the direct acquisition of voting shares
of First National Bank of Puerto Rico, San Juan (P.O.
Hato Rey), Puerto Rico.
Community Bancshares, Inc., Forest Green, Missouri,
for approval to acquire 80 per cent or more of the
voting shares of The Merchants and Farmers Bank of
Salisbury, Salisbury, Missouri, formerly The Farmers
Bank of Forest Green, Forest Green, Missouri.

* * * * *

To Expand a Bank Holding Company Pursuant to Section
4(c)(8) of the Bank Holding Company Act of 1956
Schroders Incorporated, New York, New York, notification
of intent to engage in de novo activities (acting as
investment and financial adviser to persons with respect
to their investments in oil and gas interests and assisting in the financing of such investments) in Houston,
Texas, through a subsidiary, Oil Financing & Investment
Company, Inc. (5/7/76) 3/

3>/ 4(c)(8) and 4(c) (] 2) notifications processed by Reserve Bank on behalf
of the Board of Governors under delegated authority.




H.2, 1976 No. 25
APPLICATIONS RECEIVED-Continued
Union Commerce Corporation, Cleveland, Ohio, notification
of intent to engage in de novo activities (leasing
personal property and equipment, or acting as agent,
broker, or adviser in leasing of such property where at
the inception of the initial lease the expectation is
that the effect of the transaction (and, with respect to
governmental entities only, reasonably anticipated
future transactions) will be to compensate the lessor
for not less than the lessor's full investment in the
property; making or acquiring, for its own account or
the account of others, loans and other extensions of
credit primarily to finance the acquisition of personal
property and equipment; such loans would include, but
not be limited to, the financing of time sales contracts,
conditional sales agreements, installment purchase
loans, and secured term loans) at 6065 Rosewell Road,
N.E., Suite 304, Atlanta, Georgia, through its whollyowned subsidiary, Union Commerce Leasing Corporation,
Cleveland, Ohio (6/18/76) 3/
Union Trust Bancorp, Baltimore, Maryland, notification of
intent to engage in d<B novo activities (making secondary
mortgage loans secured in whole or in part by mortgage,
deed of trust, security agreement, or other lien on real
estate situated in the State of Maryland which property
is subject to the lien of one or more prior encumbrances
or other leasehold interest; and acting as agent in the
sale of credit life insurance and credit accident and
health insurance in connection with its extensions of
credit) at Fallston Building, Room 202, 1710A Harford
Road, Fallston, Maryland, through its subsidiary, Union
Home Loan Corporation (6/14/76) 3/
The Terrebonne Corporation, Houma, Louisiana, notification
of intent to engage in de novo activities (acting as
insurance agent or broker in offices at which The
Terrebonnne Corporation or its subsidiaries are otherwise engaged in business or in an affice adjacent thereto
with respect to the following types of insurance: any
insurance for the holding company and its subsidiaries;
or any insurance, including life insurance, that is
directly related to an extension of credit by Terrebonne
Bank & Trust Company, a wholly owned subsidiary corporation of The Terrebonne Corporation; or is directly
related to the provision of other financial services by

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. 25

- 9
ACTIONS OF THE BOARD-Continued
Terrebonne Bank & Trust Company or is otherwise sold as
a matter of convenience to the purchaser so long as the
premium income from such sales does not constitute a
significant portion of the aggregate insurance premium
income of the holding company from insurance sold pursuant to this subdivision) at 720 East Main Street,
Houma, Louisiana, through a subsidiary, Terre Agency,
Inc. (6/14/76) 3/

Jan-Mar Corp., Coleraine, Minnesota, for permission to
retain its general insurance buinsess, d/b/a First
National Agency at Coleraine, Minnesota, (selling of
fire, auto, casualty, life, accident and health insurance, and also the selling of all types of surety
bonds in a community of less than 5,000)
D. H. Baldwin Company, Cincinnati, Ohio, for approval
to acquire the shares of Empire Savings Building and
Loan Association and its subsidiaries, (operation of a
federally insured savings and loan association; insurance sales which Applicant believes to be permissible
under the Board's Regulation Y; and land development)
Community Bancshares, Inc., Forest Green, Missouri, for
approval to engage in the sale of credit life and
credit accident and health insurance d/b/a Miller and
Associates, Forest Green, Missouri.

* * * * *

To Expand a Bank Holding Company Pursuant to Section
4(c) (12) of the Bank Holding Company Act of 1956
Sterling Precision Corporation, West Palm Beach, Florida,
notification of intent to acquire the outstanding stock
of Thorne Automotive Company, Pawtucket, Rhode Island,
an automotive replacement parts distributor. (6/14/76)
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. 25




10 -

REPORTS RECEIVED
Current Report Filed Pursuant to Section 13
of the Securities Exchange Act
The Sylvania Savings Bank Company, Sylvania, Ohio.
* * * * *

PETITIONS FOR RULEMAKING
None

W