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-yJV L V o l. 4 N o . 15 Des M o in es , Io w a Judge Halts Comptroller’s CBCT Ruling F f5 F ù#‘P- Declaring that the Comptroller of the Currency acted illegally on December 12, 1974, and May 9, 1975, when he issued regulations authorizing off-premise electronic banking terminals, District Judge Aubrey E. Robinson, Jr., ruled in Washington, D. C., on July 31 that national banks operating such EFT facilities must discontinue them in states where this is contrary to state law. After the same court rejected a request the following day for a stay of injunction, the Justice Depart ment went to the Court of Appeals the past week on August 6 seeking a stay while the case is appealed. The judge’s decision on that appeal is not expected until sometime this week and possibly not until next week. It is expected the case will be carried quickly to the United States Supreme Court. The suit ruled on by Judge Robinson was filed as Civil Action 75-0089 in the United States District Court in Washington, D. C., by the Independent Bankers A ssocia tion o f A m erica, and several small independent banks. The decision was considered a major victory for the IB A A in its battle to shut off all EFT activity, declaring that it is branch banking. Judge Robinson upheld this view, stating that the customer bank P communications terminals are, in fact, branches despite the Comp troller’s rulings of December 12 and May 9 to the contrary. IB A A authorities are reported to have been surprised by the extent of the decision, especially Judge R ob in son ’ s direct rebuttal o f Comptroller Smith’s basic premise that CBCTs are not branches. Throughout the decision, Judge Robinson relied heavily on the Supreme Court’s ruling in the 1969 Plant City vs Dickinson suit (1st National Bank in Plant City, Fla.— 39-U.S. 122 1969), as well as the McFadden Act enacted by Cong ress nearly a half century ago. In the Plant City case, the Court ruled that the bank could not utilize armored car service to pick up deposits. Based on these decisions, Judge Robinson said that activity carried on at the CBCTs is activity “ carried on at the main office” and therefore is branching. In those states prohibiting branching, or with curbs on it, national banks must cease and desist, he ordered. In his original regulation issued December 12, Comptroller James E. Smith authorized national banks to operate unmanned terminals or POS terminals at any location in the state, or even across state lines to follow a marketing area. The May 9 ruling modified the ruling to A u g u s t 1 1 ,1 9 7 5 authorize a bank to operate such terminals exclusively within 50 miles of the main office or nearest branch, but outside the 50 miles it must be available for sharing at a reasonable cost with one or more financial institutions. The Comptroller’s office reports more than 70 CBCTs in operation by 26 national banks in a number of states since his ruling became effective July 1, 1975. The bulk of these appear to be centered in the midwest—primarily Omaha, Lin coln, Des Moines and Chicago. A ttorn ey s for various state associations were reviewing Judge Robinson’s decision last week, along with their own state laws, to determine whether such CBCT activity in their states is in compliance or illegal. In Nebraska, the EFT enabling law passed by the state legislature earlier this year authorizes such electronic activity for state banks, but the effective date is next January 1, 1976. Consequently, national banks have opened CBCT facilities in numerous retail loca tions in Omaha, Lincoln, Fremont and Wahoo, while state banks must await the January 1 effective date to compete or join these existing systems. The Nebraska law speci fically declares these electronic units are not branches. Nebraska CBCT RULING........... [Turn to page 5, please] Whatever your financial requirement... You’re in Drovers Country! if 4 ■ • ■■HA•P i M TheUrovers National Bank o f Chicago 47th & Ashland Ave. • Chicago, Illinois 60609 • Phone (312) 927-7000 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • Member Federal Deposit Insurance Corp. • Member Federal Reserve System • Member Chicago Clearing House Association A good correspondent! bank relationship is still built! by good people. Yours and ours. John Pothoven C orres. B anking R ep. at the death of her husband, the late A. V. Kjelson. Mr. Guggenmos has served as a bank examiner and as president o f the Spencer National Bank, Spencer, la. Call me toll free . . . 800 332-5991 - Minnesota News Merchants ^ National Bank 151 C edar Rapids. Iowa 52401 A B A N K S O F IOWA- BA N K Iowa News Nebraska News ATLANTIC: Darryl Peterson has been promoted to assistant vice president of the First Whitney Bank and Trust. He has been a cashier with the bank for 19 years. Other promotions announced in clude Jim Burnside from assistant cashier to cashier and Marion Kunze to assistant cashier. FALLS CITY: Merle L. Veigel will join the First National Bank September 1 as assistant vice president. He formerly was with the Federal Deposit Insurance Corporation as a bank examiner. CARLISLE: The application of the Hartford-Carlisle Savings Bank for consent to exercise limited trust powers has been approved. MOUNT PLEASANT: The Henry County Savings Bank will hold an open house for area bankers at their new location, 301 East Washington Street, Thursday, August 14. SIBLEY: T. Robert Nelson has resigned as president and director of the Sibley State Bank. Bruce Lauritzen of Omaha, Nebr., was elected president. David Wier was elected a director and promoted to assistant vice president. M r. Lauritzen is vice president and director of the First National Bank of Omaha and will not be active in the operation of the bank. Mr. Nelson announced that he resigned in order to have more time to actively pursue his many personal business interests. SERVICE WITH NO SMILE. All our computer knows how to do is work. Quickly. Efficiently. But no smile. Bill Rickert and Ken Young are the ones who smile. Especially when they’re showing somebody how our straightfaced computer works. Call Bill or Ken today. 1- 800- 772-2015 National Bank of https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Waterloo K EARN EY: First National Bank & Trust Co. has increased its capital from $800,000 to $1 million by the issuance of additional stock. OCONTO: Funeral services were held recently for Charles J. Devine, 68, chairman of The Farmers Bank. He joined the bank in 1926 and held the position s of cashier and president before being named chairman July 1, 1975. Frank J. Devine, with the bank since 1950, has been promoted from vice president to president. SCRIBNER: The Board of Gover nors of the Federal Reserve System has announced its denial of the application of Scribner Bancshares, Inc., to become a bank holding company through acquisition of Scribner Bank. STROMSBURG: Fred Guggenmos of Spencer, la., is the new president of the First National Bank after purchasing interest from Marjorie Kjelson, who remains as chairman. Mrs. Kjelson has been president for eight years taking over the duties 0 The Independent Bankers A s sociation of Minnesota will hold its fourteenth annual convention A u gust 13-16 at Arrowwood Lodge in Alexandria. Topics of discussion will include the work of national banking organizations, bank hold ing companies and Fed policy, the strength of Minnesota's indepen dent banks, the state of the economy, and automated, offprem ise banking. R egistration begins at 11 a.m. Wednesday, August 13. The first business session will begin at 9:30 a.m. August 14. DULUTH: Lyle Bourdon has been elected vice president of the Duluth N ational Bank. M r. B ourdon formerly was assistant vice presi dent of the personnel division of First Bank System, Minneapolisbased bank holding company and parent company of Duluth Na tional. ST. JAMES: First National Bank has announced the promotions of Eldo Beckmann from cashier to vice president and Gary Schütz from assistant cashier to cashier. ST. PAUL: John H. LeMay has joined the Minnesota State Bank as senior vice president. He previously was with the Commercial State Bank of St. Paul as vice president of commercial lending. Illinois News CHICAGO: The application of the Community Bank of Lawndale for Federal deposit insurance has been approved. Capital accounts of the bank total $2 million. k o C Ht»«rt1S 4- A. Li Y Send Your News Today to the %K NORTHWESTERN BANKER ft . TELL US ABOUT. . . ;T X Y \Y A 306 Fifteenth Street DES MOINES, IOWA 50309 Staff Changes Business Campaigns Mergers, Consolidations New Departments at the Bank Remodeling or New Building JL Y > y h* Y A V* a Y ■Y . A Y Y > ► Y y Y *> k k * K BANK .............................................................................................. OFFICER ........................ ................ .........I ..................... ..TITLE CITY https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis STATE Open Houses Anniversary Parties Deaths or Retirements Speeches Made by Bank Officers Special Announcements to the Public https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis “It’s only that alarmist, Paul R evere— he sa ys the British are coming. N e v er sa w an ybody so excited about a fe w soldiers out for an evening stroll.” Some folks are a bit short-sighted when it comes to envisioning the future! But the world has a way of moving ahead anyhow. Direct Deposit of Social Security checks, for example, will soon be nation-wide and electronic. If your bank is to participate fully, it must be prepared. This is why we recommend membership in the MidAmerica Automated Clearing House Association (MACHA). Don’t have the necessary sign-up forms? Call MACHA now (816) 474-5630 Mid-America Automated Clearing House Association 906 GRAND AVENUE • SUITE 530 • KANSAS CITY, MISSOURI 64106 • (816) 474-5630 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 5 CALL ON THE “PERFORMANCE TEAM” where comm on transactions are handled uncommonly well. FIRST N A T IO N A L L IN C O L N 13th & M Street • Lincoln, Nebraska 68501 • Member, F.D.I.C. AUBURN: A permit to organize has been issued to Auburn Peoples Bank, Illinois Route 4 and Jefferson Street. The state bank’s total capitalization of $800,000 will consist of $300,000 in both capital and surplus and $200,000 in reserve. There will be 40,000 shares of stock with a par value of $7.50 each. Organizers are Darlene H. Fuchs, Farmersville; Jack Morris, Pawnee; Leonard Courty, Jr., Oscar M. Lane, John E. Michelich, Delmar Neuman, Robert D. Shaf fer, all of Auburn. Service innovations are our business. Why not make them yours? I ■ ■ ■ Hl Iowa-Des Moines National bank Bob Buenneke MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION RUGBY: Merchants Bank has increased its capital stock from $250,000 to $400,000. South Dakota News Wyoming News GILLETTE: The State Examiner has announced his decision denying the application for the Bank of Wyoming here for a state bank charter. Colorado News COLORADO SPRINGS: Mountain Banks, Ltd., has received permis sion to acquire F ort Collins National Bank. North Dakota News BUXTON: First State Bank has increased its capital stock from $105,000 to $125,000 by cash subscription. PARSHALL: Peoples State Bank has changed its name to Peoples Bank and Trust. ARTESIAN: Live Stock State Bank has increased its capital stock from $150,000 to $300,000. CBCT RU LIN G................ [Continued from page 1] law also prohibits branch banking. The question now is whether, national bank CBCT activity is legal or not under the ruling. If national banks in Nebraska should be ordered by the Comptroller to discontinue their CBCTs at this time to comply with Judge Robin son’s ruling, will they be able to renew this service next January 1 under the Nebraska law? Omaha bank officials last week said their counsel is searching for answers to these questions. In Iowa, the law enacted earlier this year by the legislature authorized state banks to com mence CBCT service July 1, 1975. Presently, the Iowa-Des Moines National Bank, with five CBCTs in operation, is the only Iowa bank providing this electronic service. In Chicago, Continental Bank has two CBCTs in operation and a court test of the entire matter is scheduled for its next hearing on Septem ber 8. The bank had announced it would expand the POS service through a city-wide chain of 62 Dominick’s supermar kets, but agreed to suspend this activity until the court rules on whether these are branches and, therefore, in violation of Illinois law which specifically prohibits branch banking. Don Rainer, Agricultural Representative . . . AG REP W A N T E D Progressive Iowa county seat bank of $25MM seeks qualified agricultural representative. Write Box TJO, c/o NORTHWESTERN BANKER, 306 15th St., Des Moines, Iowa 50309. wants to build a solid correspondent banking relationship with you. Bankers Trust 1 Use our toll free WATS line: 800-362-1688 6th & Locust/ Des Moines, Iowa 50309 W hen it comes to helping you help your farm custom ers, none of the others come close. W ig https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis united m issouri bank of kansas city, n.a. Telephone 816-221-6800 6 . , Gill our Bond Department .'Ä Y' 4 M For up-to-the-minute, accurate information . W f C om m erce Bank UL ÌNG A o f Kansas C ity '10th and Walnut (816) 234-2000 Member FDIC Walter Knowles Vice PresidentManager Bond Department Cecil Denton Vice President Government and Municipal Securities 234-2458 234-2450 CAN A LEASEBACK CREATE CASH? If your custom er is long on equipm ent but short of cash, a LeaseBack may be the answer. Let us explain the Bankers Participating LeasePlan. High-yield fo r y o u ..... and ...... we take the risk! FIRST INSURED SERVICES 545 31 st St. - Des Moines, Iowa 50312 - 515/282-5008 R. L. “ DICK” SELLON P. D. “ DUANE” DeVAULT POSITIONS A V A IL A B L E WANT ADS Rates 35 cents per word per insertion. Minimum: 12 words N O R TH W ESTER N B AN K ER 3 0 6 15th S t., D es M oines, Iowa FOR SA LE 9 month old NCR 775-2000 Proof Machine with 12 pockets. Machine offered for sale as we are converting to a POD System September 1 and will not need a multiple pocket Proof Machine at that time. Please contact: Parkersburg State Bank, Parkersburg, Iowa. 1-319346-2414.______________________________ POSITION W A N T E D Desire ag-econ related position with bank in eastern Iowa or northwest Illinois. Graduate University of Illinois, Champaign, B.S. - Agriculture, exten sive ag finance courses. Farm back ground, general interest all areas of agriculture. June L. Johnston Wahl, 4600 Lower Beaver Road, Apt. 1, Des Moines, la. 50310. Phone 515/278-4163. A National Personnel Service Dunhill Personnel of Des Moines Specializing in Bank Employment Suite 410 - Equitable B uilding 604 Locust Street Des Moines, Iowa 50309 Phone 515/243-1182 When you need a little help call us on our toll free wats number 8 0 0 - 362-1615 United National Bank, a statewide South Dakota branch banking system, is seeking two aggressive self starters for loan officer positions in both our Rapid City and Sioux Falls office. Excellent salaries and fringe benefits with a rapdily grow ing bank that offers opportunity for advancement. Installment Loan Officer An experienced consumer lender is required for this position with a minimum of three years commercial bank background in installment lending. Should have in depth knowledge of consumer credit, marketing and collec tions at both the direct and indirect lending levels. Real E state Loan Officer A results-oriented individual is needed for this newly expanded position. Applicant should have a minimum of five to seven years experience in all phases of real estate lending. The ideal candidate should have an extensive savings and loan or commercial bank real estate lending background. Reply in strict confidence in writing to: James E. Barry, Senior Vice President, United National Bank, 14 St. Joe St., Box 2290, Rapid City, S.D. 57701, PH: 605/343-9230, or Loren D. Gerleman, Vice President-Cashier, United National Bank, P.O. Box 1088, Sioux Falls, S.D. 57101, PH: 605/336-9206. Jim Peters Asst. Vice President Money Market Center 234-2219 W ANTED Good opening for young person with operations experience to work into installment loans and farm loans. Excellent chance for country banking career starting as assistant cashier. Should be agriculture oriented. $12MM growing bank in central Minnesota dairy area (town population—1,000). Salary open, good fringe benefits, profit sharing pension plan. All replies confidential. Write Box LLL, c /o NORTHWESTERN BANKER, 306 15th St., Des Moines, Iowa 50309. B A N K S FO R SALE W rite or Call: J. Mason Henry, President CHARLES E. WALTERS CO., INC. P. 0 . Box 1313, Omaha, Nebr. 68101 Phone: (402) 553-6400 BANKERS WANTED COMMERCIAL REAL ESTATE LOAN OFFICER — Must have 3 years experience, including interim financing. (Iowa). INTERNATIONAL DEPT. HEAD— Mature, heavy exper ience. Some travel in midwest. SENIOR OFFICER— For rural bank about $10MM. Must be strong in commercial lending in Iowa or Nebraska. SENIOR OFFICER— For rural Kansas bank; start January, 1976. CASHIER—Opportunity to learn commercial lending in $20MM Kansas bank. CEO— Prefer suburban St. Louis experience. SENIOR AGRI-LOAN OFFICER—W ith correspondent banking experience. SENIOR COMMERCIAL LOAN— Suburbank M issouri; prefer large bank experience. AGRI-LOAN—Several spots; some prefer touch of operations experience. Tellers, credit clerks, proof operators, secretaries, adm inistrative assistants, etc. Bank experience required. “ IT TAKES A BANKER TO KNOW ONE” TOM HAGAN & ASSOCIATES Box 12346, N. K. C., Mo. 64116 (816)474-6874 SERVING PROFESSIONALLY EDDIE A. WOLF WILLIAM B. GREAVES RUSSELL G. GREGORY S. GERALD B. PLAGER WOLFE MURPHY Bonking, Financial & Business Personnel lowo and Nationwide Correspondent Bank Department CAPITAL PERSONNEL SERVICE Central National Bank 8 -Trust Company DES MOINES (515)243-8181 MEMBER FDIC 2 0 4 Securities Bldg. 51 5— 28 3 -2 5 4 5 Des Moines, lowo 5 0 3 0 9 L O C U S T AT SIXTH /FIF T H & G R A N D /35T H & IN G E R S O L L /W E S T DES M OINES V ol. 4 N o. 15 Northwestern Banker N ew sletter is published weekly by the Northwestern Banker Company, 306 Fifteenth Street, Digitized forDFRASER es M oines, Iowa 50309. Subscriptions 25 cents per copy, $6 per year. Second class postage paid at Des Moines, Iowa. Address all https://fraser.stlouisfed.org m all subscriptions, changes of address (Form 3579) manuscripts, mail items to above address. Federal Reserve Bank of St. Louis
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