Full text of The Northwestern Banker : July 14, 1969, No. 1172

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Oldest Financial Journal Serving The Central and Western States
Des Moines, Iowa

No. 1172

Set Strict Guidelines for Truth-in-Lending
Lending institutions can ex­
pect little, if any, help from the
states in getting softer credit
disclosure requirements than pro­
vided in the Federal truth-in-lend­
ing statute.
The Federal Reserve Board has
issued strict guidelines outlining
how states can seek exemption
from the Federal statute.
As a practical matter, states
seeking an exemption will have to
enact legislation practically iden­
tical to the Federal law.
The Federal statute states that
the board shall exempt from Fed­
eral truth-in-lending requirements
“ any class of credit transaction
within any state if it determines
that under the law of that state
that'class of transactions is sub­
ject to requirements substantially
similar to those imposed” by the
Federal law. In addition, the Fed
is required to find that the state
law provides adequate enforce ment
standards.
Under the final guidelines, state
laws, if substituted for the Feder­
al statute, must:
Cover all real property trans­
actions regardless of the amount,
but may exclude other consumer
credit
transactions
exceeding
$25,000.
Require disclosures and notices
in the form, content and terminology prescribed in the Fed’ s truthin-lending regulations (Regula­
tion Z).
Require disclosure of the finance
charge and the annual percentage

rate, determined as set forth in
the Fed’s regulations.
In the class of transactions
which normally involves secur­
ity interests in real estate, pro­
vide the customer with the right
to rescind certain credit trans­
actions as provided in the Fed­
eral law.
Require creditors to deliver
disclosures and notice in circum­
stances and on time schedules
like those prescribed in Regula­
tion Z.
Include definitions and rules of
construction that give the same
meaning and have the same appli­
cation as those prescribed in the
regulations.
State exemptions from Federal
jurisdiction may be granted only
with respect to the disclosure and
recission
requirements of the
Federal law and regulations.
Under the Federal law, adver­
tising of credit must remain sub­
ject to Federal jurisdiction.
The Fed guidelines require a
state seeking exemption to apply
to the Fed. With the application,
the state must submit a copy of
its state law and a comparison of
each requirement of state law with
the corresponding requirement of
the Federal law. It must demon­
strate that any differences are not
inconsistent with the requirements
of the Federal statute and that
there are no other effective state
laws which are inconsistent with
the Federal requirements.
The state must also provide

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M e m b e r Federal D e p o sit In s u ra n c e C orp o ratio n

July 14,1969

reasons to support the claim that
its law provides for administrative
enforcement comparable to the
Federal statute, criminal liability
for willful and knowing violation,
civil liability for failure to make
required disclosures and a statute
of limitations with respect tó
civil liability actions.

Martin Opposes
Loan Rate Legislation

Congress has been urged by
Federal Reserve Board Chairman
William McC. Martin not to try to
legislate against high interest
rates.
Chmn. Martin advised against
any such move in his second ap­
pearance before the House Bank­
ing Committee at hearings on the
recent increase in the commercial
bank prime rate to 8.5 per cent.
He also told the committee that
the Fed:
Is considering imposing reserve
requirements on commercial paper
issued by nonbank affiliates of
one-bank holding companies.
Has had “ endless discu ssion s”
about raising the maximum interest
rate banks may pay to attract
large certificates of deposit, but
has held back to prevent serious
disintermediation from hitting the
S&L’ s and damaging the housing
market.
He also said that it would be
“ very desirable” for Congress to
vote the Fed standby authority
to impose controls on consumer
credit.

The Bank That's
On Top of Things
In Northwest Iowa
SECURITY
NATIONAL
BANK
SIOUX CITY, IO W A________________
department in January, 1968. He will
remain in that area. Mr. DeVries
joined the bank in 1968.
DONNELLSON: George N. Benner has
been promoted from vice president to
president of the Citizens State Bank.
Christy
Armstrong

Leo
Kane

Bob
Scott

‘WE H A V E WHAT YOU WANT

in

a

correspondent

bank’

american trust

LEMARS: The Comptroller of the Cur­
rency has approved the application of
the First National Bank to locate a
drive-in facility near the corner of
SW 12th and Lincoln Street here.

a n d s a v in g s b a n k

OELWEIN: The Oelwein Bancorp has
purchased over 50 per cent of the
9TH AND MAIN, DUBUQUE, IOWA
First National Bank here from stock ­
M EM BER: FDIC • FRS
holders. Ray Jipson w ill continue as
bank president. All present board
IOWA NEWS
members willremain on the board. Two
of the owners of the Bancorp w ill be
ALTOONA: Earl Freel, assistant added to the board, Dr. John Gustaf­
cashier at the Altoona State Bank, son, Des Moines pediatrician, and E.
has been named cashier and vice W. Maser, president of the First Na­
president, succeeding Jerry Hickok, tional Bank in LeMars and chairman
who has joined a Britt, Iowa, bank. of the board of the First National
Bank at Sibley.
DES MOINES: Brock L. Hessing has
been promoted to assistant vice presi­ RED OAK: Hawkeye Bancorporation’ s
dent and Frederick DeVries to credit board of directors has approved plans
officer at the Iowa-Des Moines Na­ to acquire controlling interest in the
tional Bank. Mr. Hessing was elected Jasper County Savings Bank at New­
an assistant cashier in 1967 and ton, Iowa, and an option to acquire
joined the bank’ s correspondent bank controlling interest in the capital

COMMERCIAL LOAN
OFFICER
Chicago Loop bank, with over 100 million dollars in
assets, is seeking an experienced and marketing-oriented
senior lending officer. Rather than age, maturity and
sound experience in the field are important. Must be well
trained, aggressive and new business minded. You will
be a member of our senior lending group, working with
sound policies in an atmosphere of flexibility and cre­
ativity. In addition t6 rapid advancement—-we offer bene­
fits, a persistant marketing program and liberal salary.
Our staff is aware of our need to add to the department;
please write Chairman of the Board:
Box CBA, NORTHWESTERN BANKER, 306 15th St., D es Moines, Iowa 50309


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Federal Reserve Bank of St. Louis

fc/Rk C ross C o
BANK PLANNING
W aterloo. Iowa
stock of Kellogg Savings Bank in
K ellogg, Iowa.
Acting as individuals, Hawkeye
President Paul D. Dunlap and E xecu­
tive Vice President Myron Weil a c­
quired interests in both banks with
the consent of Hawkeye’ s board of
directors and offered the stock to
Hawkeye at their co st. The total of­
fering price for the two banks exceeds
$4 million. The sale to Hawkeye is
subject to the prior approval of the
Board of Governors of the Federal
Reserve System, Washington, D. C.
An application must be filed and the
decision on • the application will
normally take several months. This
is the primary reason the purchase is
a two-step arrangement whereby Mr.
Dunlap and Mr. Weil first acquire the
bank interest and then re-sell to
Hawkeye Bancorporation.
In connection with the Newton a c­
quisition, Hawkeye will issue five 3 /4
per cent convertible secured notes for
the total purchase price, convertible
into C lass A common stock of Hawkeye
Bancorporation at $11 .per share. The
Maytag and B ailey fam ilies, who were
the largest stockholders, have d is­
posed of their stock in the banks in a
transaction whereby they acquired
rights to an interest in Hawkeye Bancorporation.
Mr. Dunlap and Mr. Weil have granted
Hawkeye an option to purchase the
Kellogg bank for up to five years at
their co s t. They will guarantee the
total capital accounts will not be less
than the amount shown June 30, 1969.

N E B R A SK A NEWS
KEARNEY: A hearing will be held on
September 11 in Lincoln on an appli­
cation for a proposed state bank to
be located at 110 West 22nd Street in
Kearney. The application has been
filed by Ralph M isco. The bank would
be known as Buffalo State Bank.

M INNESOTA NEWS
COTTAGE GROVE: The Comptroller
of the Currency has approved the ap­
plication for a charter for the Park
Grove National Bank here.

MANKATO: Quentin Marsh has been
appointed vice president of the Na­
tional Bank of Commerce here. He was
formerly associated with Farmland
Industries of Kansas City, Mo., and

A.

L IN C O L N

..Professionals in Livestock Loans

FIRST NATIONAL BANK
1 2 th & N S tri
tre e t

w ill now direct marketing and public
relations for the bank.

G

l

TRUST COM PANY OF LINCOLN

L IN C O L N

NEBRASKA

million. The bank has 550,000 shares
outstanding. Drovers National stock
recently was quoted at about $39 a
share bid in over-the-counter trading.
William C. Cummings, Jr., chair­
man of thè bank, said 172,681 shares
would be tendered by him and members
of his family, including Tilden Cum­
mings, president of Continental Illi­
nois National Bank & Trust Company,
his brother, and their father, William
C. Cummings, Sr., who was with the
Drovers National Bank for almost 50
years and for many years was presi­
dent.

MINNEAPOLIS: James A. Watson,
« formerly president and currently chair­
man of the board of Red Owl Stores,
< Inc., has been elected president of
Gamble-Skogmo, Inc. He replaces
| Carl C. Raugust, who has been presi­
dent of the merchandising company
since 1963. Mr. Raugust will continue
^ as a director and chairman of the com­
pany’s executive committee. L . E.
w
Dolan and W. H. D avies, Jr., have
been named to the newly created
-* posts of vice chairmen. F. R. Lombaer, E. 0 . Wack, L. W. Rixe and J.
* E. Gottlieb have been named senior DECATUR: Max C. Fox and Robert
vice presidents; Larry Kanters, vice G. Munsie have been promoted to
**' president; C. H. Gauck, assistant assistant v ice presidents at the Soy
secretary.
Capital Bank here. Terry J. Brown and
Charles T.B lan cett have been elected
PINE ISLAND: F. W. Sanborn has assistant cashiers.
joined the Security State Bank as
vice president, cashier and loan of­
ficer. He is a graduate of the law DOWNERS GROVE: The Comptroller of
sch ool at the University of Minnesota the Currency has approved the ap­
and has formerly served as vice presi­ plication of the Citizens National
dent of the First American State Bank Bank of Downers Grove to locate
a drive-in facility at 927 Curtis
of Grand Meadow, Minn.
Street here.
WINDOM: James A. Clark of Fulda,
Minn., has been elected assistant v ice
* president of the First National Bank
NORTH DAKO TA NEWS
here. He w ill have responsibilities in
fe the timepay department and in agri­
cultural lending. He is a native of BISMARCK: H. L. Thomdal, Jr., state
Spirit Lake, Iowa, and was elected commissioner of banking and finance,
v ice president of the Citizens State has been selected as the new presi­
dent of the State Bank of North Dako­
Bank in Fulda in 1967.
ta. He su cceed s George M. Thompson,
who is retiring on September 1, after
IL L IN O IS NEWS
36 years at the bank. Mr. Thompson
CHICAGO: A company formed by
a group of Chicago bankers and area
businessmen, headed by Walter F.
Mullady, chairman of the Michigan
* Avenue National Bank, has made
an offer to purchase up to 60 per
" cent of the outstanding stock of the
Drovers National Bank at $44.50
a share.
The new company, First Drovers
Corporation, said it w ill buy up to
330,000 shares of the bank’ s stock,
giving the offer a value of up to $14.8

WANTED
Experienced insurance man with bank­
ing experience preferred for $7 mil­
lion bank in southwestern Minnesota.
Salary open. Send resume to Box AIR,
NORTHWESTERN BANKER, 306 15th
Digitized
FRASER
St., for
Des
Moines, Iowa 50309. Confi­
dential.
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Federal Reserve Bank of St. Louis

Member

¿Ftóokrfaotkát
BANK
HSI6N CONSULTANTS
BO * 87 PH. 1*712*2621409
S P E N C E R ,IO W A 51901

has been president sin ce 1962. The
position as president of the bank is
considered one of the top appointive
posts in North Dakota state govern­
ment.

SOUTH D AKO TA NEWS
VERMILLION: Larry L. Ticknor, e x ­
ecutive vice president of the United
National Bank of Vermillion, has an­
nounced the merger of the United NationalBankof Brandon, V alley Springs
and Canistota and the Lyman County
Bank of Kennebec, all in South Da­
kota, into the United National Bank
of Vermillion. The merger, approved
by the Comptroller of the Currency,
becomes effective August 1.
John T . Vucurevich was elected
president and director; Larry L . T ick ­
nor, executive vice president and
director; Arnold L . Mikkelson, vice
president and director; Harold Dwyer
and Dale Clement, directors. The of­
ficers now serving the main bank and
the branches w ill remain the same.

MONTANA NEWS
HELENA: The 1970 convention of the
Montana Bankers A ssociation will be
held at Many Glacier Hotel, Glacier
National Park, on June 18-20.

CH ILES &COMPANY
MEMBER, MIDWEST STOCK EXCHANGE

412 Farm Credit Building, Omaha, Nebraska 68102
Phone 346-6677 (Area Code 402) Teletype 402 348-1040
Other Offices Located in

LINCOLN
Nebraska

;

When you serve your
customers' peak credit
demands, depend on
City National Bank to
serve you quickly and
efficiently.

LEXINGTON
Nebraska

#

VERMILLION
South Dakota

A lw a y s th e F irst to S erve Y ou !

F irst National Bank o f Omaha

J

16 T H A F A R N A M * O M A H A , N E B R A S K A
M e m b e r F ederal D e p o sit In surance C orporation

COLORADO NEWS
AURORA: The Aurora National Bank
has announced the following promo­
tions: Frank R. Mineo to vice presi­
dent; C. Edward Rougier, Jr., to cash ­
ier; Mrs. Charlotte Kingman to .a s s is ­
tant cashier. Robert L. Sponsler, who
preceded Mr. Rougier as cashier, has
been made responsible for the real
estate and commercial loan depart­
ment at the bank.
COLORADO SPRINGS: Warner M. Fa­
bian has been promoted to v ice presi­
dent of the East Colorado Springs
National Bank. He has been with the
bank sin ce June, 1968, and previously
was employed as installment loan o f­
ficer at the Colorado National Bank
in Denver.
DENVER:' The Denver U. S. National
Bank has announced the promotion of
Richard A. Kirk to senior v ice presi­
dent in charge of the bank’ s personal
banking division. He su cceed s N.
Berne Hart, who has been named of­
ficer in charge of the trust banking
divis ion.
TELLURIDE: The FDIC has approved
application of the Bank of Telluride
for Federal Deposit Insurance.
WESTMINSTER: Charter application
for the proposed Bank of Westminster
has been approved by the Colorado
Banking Board. The bank is to be
capitalized at $450,000. Directors of
the bank are Don C. Hogoboom, for­
mer president of the Security Bank and
Trust Company of Casper, Wyo.; W.
C. Armor, Jr., of Casper; D. J. Dono­
van; Bergin G. Wallin of Arvada,
C olo.; Kenneth A. Platt of West­
minster; Clarence Bartholic of Denver.

application for the Wheat Ridge Na­
tional Bank. Organizers of the bank
include: Roger L. Reisher, president;
William P. Johnson, Robert Appel,
Ira C. Rothgerber, Jr., all Denver at­
torneys; G. C. Williams of Boulder;
Dewitt G. Venable of Denver. The
bank will be capitalized at $500,000

WANT ADS
Rates 25 cents per word per insertion. Minimum: 12 words.
NORTHWESTERN BANKER ------- 306 15th St., Des Moines, Iowa
POSITION DESIRED
No. 2 man in $25 million bank seeks
position with progressive and growing
bank, preferably in Colorado or other
mountain state, but will consider other
location. Diversified lending and oper­
ations experience, degree, graduate
sch ool of banking. Write Box ZOB,
NORTHWESTERN BANKER, 306 15th
St., Des Moines, Iowa 50309.
HELP WANTED
Wanted, bank president for a rapidly
growing midwestern bank with re­
sources of approximately $15 million.
Offers an unusual opportunity for a
well-rounded
banker.
Commercial
lending experience necessary. We are
looking for a man of ability who wants
the challenge and opportunity to grow
with us. Salary is in the $20,000 to
$30,000 range with fringe benefits
Send resume and salary requirements to
Box ITJ, NORTHWESTERN BANKER,
306 15th St., Des Moines, Iowa 50309.

POS ITION AVAILABLE
Aggressive bank in excellen t Iowa
farming area has position open fcr
bank officer with about 3-6 years of
banking experience. E xcellent oppor­
tunity to advance. Should be exper­
ienced in lending. County seat town.
WHEAT RIDGE: The U. S. Comptrol­ Growing bank of $7-8 million assets.
ler of Currency has approved charter Write Box X PL, NORTHWESTERN

99

ÛÛ
B ank Under the Big I

CENTRAL

NATIONAL

and is expected to open in the fall.
R. Kent Landmark w ill be executive
vice president and managing officer.
He has been an officer at First West-#
land National Bank for four years.
Mr. Reisher is a lso president of the ^
First Westland National Bank, the
Bank of Vail and the Erie Bank.

“ The Bank That Cares’

BANK

AND

TRUST

M em ber Federal D eposit In su ra n ce C orp ora tion

COMPANY

BANKER, 306 15th St., Des Moines, :
Iowa 50309..
^
POSITION WANTED
Young bank officer, married, college,
with several years of bank and insur­
ance experience seeks opportunity
in bank officer capacity. Write Box
BDJ, NORTHWESTERN BANKER,
306 15th St., Des Moines, Iowa 50309.
ADVERTISING HELPS
For the agricultural banker —ads,
mats, editorials and newsletters that
sell full service banking to farmers.
Samples available — Farm Business
Council, Inc., P. O. Box F, Urbana,
Illinois 61801.

*

*

POSITION AVAILABLE
Iowa bank with over $3,000,000 in^
installment loans has good oppor­
tunity for experienced loan officer.
Write Box CFB, in care of the
NORTHWESTERN BANKER, 306 15th St., Des Moines, Iowa 50309.
INCREASE 1969 PROFITS
Cy Kirk and Max Roy, v ice presidents*
of LaSalle National Bank, Chicago,
are prepared to assist you and your
bank in planning increased profits
for 1969. Whether it is an analysis of *
your bond portfolio or a cost study
of your general banking serv ices,
LaSalle National Bank has the fácil- .
ities to serve your every need. Call
Cy or Max today at (Area Code 312)
782—5200 for immediate action.
POSITION WANTED
Managing officer in Nebraska Bank w
with 16 years executive experience
in bank of $5 million desires newVt*
management opportunity in Nebraska.
C ollege and banking school graduate.
Write F ile NVB, in care of the
NORTHWESTERN BANKER, 306 15th St., Des Moines, Iowa 50309.

No. 1172 Northwestern Banker is published five times monthly by the Northwestern Banker Company, 306 Fifteenth Street, Des

Digitized forMoines,
FRASERIowa 50309- Subscriptions 50tf per copy, $6 per year. Second class postage paid at Des Moines, Iowa. Address all maiF”**
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