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Federal Deposit Insurance Corporation

Division of Supervision

550 17th Street NW, Washington, DC 20429

Notices for Investments in Real Estate Activities,
Life Insurance Products and Annuity Contracts

August 29, 1996


Proposed Rule on Notice Requirements for Investments in Real Estate Activities,
Life Insurance Products and Annuity Contracts (Part 362 of the FDIC's Rules and


The FDIC Board of Directors is issuing for public comment an advance notice of proposed
rulemaking amending its requirements for insured state banks wishing to engage in real estate
investment activities, indirectly through a subsidiary, and/or in insurance products and annuity
contracts, either directly or indirectly through a subsidiary. Written comments are due by
October 22, 1996.


The regulations now require an insured state bank to file an application with the FDIC to engage
in activities that would not be permissible for a national bank. The proposal would streamline the
approval process by requiring the bank to give a 60-day notice prior to engaging in the activity in
lieu of filing an application, provided the bank meets certain criteria. Banks that wish to engage
in such activities but do not meet the prescribed criteria would continue to file under the
application provisions of Part 362.
This advance notice of proposed rulemaking gives the public an opportunity to comment on
changing the requirement from filing an application to giving a 60-day notice under specific
circumstances. The notice also invites comments on the specific criteria adopted in the notice
procedure, which concern whether:
a real estate subsidiary should be organized "solely" for the real estate-related activities
or "mixed-use" subsidiaries should also fall within the notice provisions; imposing all the
restrictions of Sections 23A and 23B of the Federal Reserve Act is appropriate or the
FDIC should simply state the investment limits; and the tying restriction is broader than
necessary and, if so, how it should be modified.


A copy of the advance notice is attached. For more information, please call Shirley K. Basse,
Review Examiner in the Division of Supervision (202-898-6815); or Pamela E. F. LeCren,
Senior Counsel (202-898-3730), Patrick J. McCarty, Counsel (202-898-8708), or Linda L.
Stamp, Counsel (202-898-7310), all in the Legal Division
Nicholas J. Ketcha Jr.

Attachment: PDF Format (106 kb, PDF help or hard copy),HTML Format
Distribution: FDIC-Supervised Banks (Commercial and Savings)

Last Updated 07/13/1999