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No. 1294 June 7,1971 Des Moines, Iowa Question Fair Credit ^Guidelines” Banks and S&L’ s are under might arise under the Act. Rather, they are designed to assist banks warning that some of the interpre and S&L’ s —and their examiners — tations contained in the new to develop a working knowledge “ Q&A” guidelines to the Fair o f the law and its requirements Credit Reporting Act —although as it applies to financial institu jointly prepared by the three Fed tions. eral banking agencies and the The central purpose of the Fair Federal Home Loan Bank Board — Credit Reporting Act —which took may not stand up in court. The reason is, according to the effect April 25 —is to insure fair and accurate reporting of credit agencies, that the statute (Public Law 91-508) “ is unclear in some information regarding consumers. instances as to its application to It provides new rights to loan ap financial institutions.” Thus the plicants, installment purchasers, insurance applicants and job courts may “ ultimately construe” seekers to check and question some of these provisions differ •credit material concerning them. ently from the way they are inter In general the law restricts the preted in the guidelines issued use of credit reports on con recently by the Federal Reserve sumers and in certain situations Board, the Comptroller of the Cur rency, the Federal Deposit Insur- requires the deletion of obsolete information. It requires notice Corp., and the FHLBB. when the use of a credit report While the information contained in the guidelines “ should not be. contributes to the denial of, or relied upon without the advice of increase in the cost of, credit or cou n sel,” the agencies said they insurance, or denial of employ would regard institutions acting ment. Disclosure also must be made in accordance with them to be when credit is denied or the cost “ in compliance with the A ct” is increased on the basis of other for regulatory purposes.. The guidelines —actually a information from third parties, and when investigative consumer re pamphlet containing 61 questions and answers and the text of the ports are used. And under the Act, consumers are entitled to new law —are not regulations of of the information the agencies nor do they attempt disclosure to answer every question that maintained in their files by con sumer reporting agencies, and procedures are provided for the correction of erroneous informa tion. Financial institutions can come under the Act as credit grantors, purchasers of dealer paper, is suers of credit cards, and em ployers. In some instances, a financial institution may even be a consumer reporting agency as a result of the type of information about consumers it provides others. The latter has been of major concern to many financial insti tutions. The guidelines say a bank or S&L which regularly passes on information in its files about a consumer, other than information solely as to its trans actions or experiences with the consumer, may be considered a consumer reporting agency. According to the guidelines, this even applies to the regular exchange of information between correspondent financial institu tions, between a holding com pany and its subsidiaries, and between subsidiaries o f the holding company —but not to in formation exchanged within de partments or branches of a bank. And according to guidelines issued by the Federal Trade Com mission, banks and S&L’ s which (Continued on back page) We know the importance of your bank to your community. Correspond with us. IOWA-DES MOINES NATIONAL BANK Dal« Lnckow https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ( 515 ) 284-8686 with photos, w ill appear in the July Get to know Northwestern Banker. VERLON BRITT WANAMINGO: Adolph K. Syverson, president of the Security State Bank sin ce 1939, died recently at the age of 85. H e knows Data Processing for Correspondent Banks. NEBRASKA NEWS mth0 B ankers Trust p*C0S0ttmr bank * S ixth an d L o cu st. D es M o in es (51 5 ) 283-2421 IOWA NEWS AMES: The 26th Annual Agricultural Credit School sponsored by the Iowa Bankers A ssociation and Iowa State University w ill be held on the campus from June 7 through June 18. Herbert B. Howell is director of the sch ool for ISU. Day for members and guests of Group 11 banks w ill be held Wednesday, June 16 at Mt. Pleasant Golf & Country Club. Registration is $11 for golfers and $7.50 for non-golfers. Co-chairmen are David H. Carrick, assistant cashier, Henry County Savings Bank, and Warren L. F ye, assistant vice president, Mt. Pleasant Bank & Trust C o ., the two host banks . DES MOINES: A suit against Iowa Banking Superintendent Collin Fritz is scheduled for trial in Polk County District Court June 26. Applicants of a proposed Okoboji Marine State Bank, to be located at Arnolds Park, la ., filed the suit after their charter application was denied several months ago. MINNEAPOLIS: Earl A. Patch has retired as president of Third North western National Bank after 48 years GRINNELL: The Iowa group meeting of the National A ssociation of BankWomen, Inc., w ill be held August 1112 at Grinnell C ollege, Grinnell. MINNEAPOLIS: Arnold P. Larsen has been promoted from assistant vice president to vice president at First Minnehaha National Bank. HOLSTEIN: The Holstein State Bank has withdrawn its membership from the Federal Reserve System. MT. PLEASANT: The Annual Sports M INNESOTA NEWS in banking and has been succeeded by Bruce C. Winslow, formerly ex ecu tive vice president. ST. PAUL: The Minnesota Bankers A ssocia tion ’s annual convention, which began yesterday at the St. Paul Hilton Hotel, w ill continue through Wednesday. A full report, There are so many ways we can help you That’s why over half the banks in Iowa are — MNB correspondents | Bob O ’ Meara Senior V ice President M E R C H A N T S N A T IO N A L B A N K CEDAR RAPIDS, IOWA 52401 Member fOIC we're here on your account SECURITY NATIONAL BANK 6TH AND PIERCE SIOUX CITY, IOWA https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis CAMBRIDGE: A . A . Mouse 1, chair man of First National Bank, was honored at an open house in the bank on May 27 for his 65 years of service in banking, 57 of which have been with First National. He has been active in civ ic and church or ganizations and continues as a s k ill ful hunter and fisherman. FALLS CITY: John A llee, 29, former! president of the Bank of Salem, entered a. plea of innocent to embez zlement before District Judge William C olw ell and trial has been set for September 22. The bank was closed by the Nebraska department of bank ing in April after irregularities were discovered. LINCOLN: Harold O. Johnson, 68, assistant director and counsel for the Nebraska department of banking, died June 2 of a heart attack. He had been with the department since 1929. LINCOLN: An application for a state bank charter to be known as Bank of Lincoln and to be located at 70th & O Sts. was filed with the department of banking June 1 by MarvinE. Jew ell, Lincoln attorney. State Banking Director Henry E. Ley held a hearing in Lincoln June 2 on the proposed Pleasantcn State Bank application. Pleasanton is 18 miles north of Kearney. Ercil P h illip s, manager o f the Pleasanton Cooperative Credit A ssociation , filed the application on behalf of a group of residents of the communi ty. It would have $65,000 capital, $45,000 surplus and $20,000 undi vided profits. Two other state charter applica tions are pending. One is for the State Bank of Omaha, to be located at 120th & Center, and applied for by Marvin Schmid, chairman, and Perry Francis, president, of the Southwest Bank of Omaha, located at 90th & Center. The second is for Buffalo State Bank at Kearney, ap plied for by W. F . Nelson. Hearings have been held on both applications. OMAHA: B eneficial Corporation of Wilmington, D el., has received per- Call on the "Performance Team'.’. . Specialists in underwriting and distributing Municipal Bonds. FIRST NATIONAL BANK & TRUST COMPANY OF LINCOLN ________ _______________________ mission from the Federal Reserve System to acquire Central National Life Insurance Co. of Omaha. Appli cation was made under Section 4(c)(12) of the Bank Holding Com pany Act of 1 956. OMAHA: Directors of the United States National Bank have promoted eight staff members. New assistant vice presidents are Lee J. Bachand, Eugene D. Exceen and Howard A. Nelson. New assistant cashiers are Edmund L. Arkfeld, Thomas A .E rnst, Anthony M. Payne and Richard D. Rouse. Named assistant trust o ffi cer is Paul D. Kadavy. ILLIN O IS NEWS RIVER FOREST: Herbert A. Dolowy has been elected president and a director of the River Forest State Bank and Trust Company. He has been vice president in charge of the commercial loan division of a $400 million bank, and before that he was an examiner with the Chicago Fed for 11 years. WORTH: R ussell D. Boyer has been appointed executive v ice president and trust officer and a director of the First State Bank. WISCONSIN NEWS DENMARK: Prior approval has been given by the Fed for the acquisition of 80 per cent or more of the voting shares of the Badger State Bank by the V alley Bancorporation, Appleton. MILWAUKEE: Marine Corporation has Northeast Iowa Banks When you’re ready for it, make an appointment to see our computer compute. It can solve a lot of problems for your bank. When your bank needs this or any other service, call Bill Rickert or Ken Young. 13th and M S tr e e t • Lincoln, N e b ra sk a 6 8 5 0 1 • Member, F .D .I.C . appointed officers of Marine. Bankcard Corporation, which has been formed to serve the BankAmericard program of the Marine banks. Ray mond J. Brown has been appointed assistant vice president in charge of operations, and Zackery Takerian has been named assistant vice president—business development. Mr. Brown has been with Eastern States Bankcard A ssocia tion , Lake S u ccess, N. Y ., and Mr. Taker ian has been sales manager of the charge card division at Continental Bank, Chicago. WYOMING NEWS Wyoming banks w ill be served by the Denver branch of the Federal Reserve Bank of Kansas City, b e ginning in July, according to an announcement by George H. Clay, president of the Kansas City bank. Wyoming banks currently are served by the bank’s Omaha branch. The Board of Governors of the Federal Reserve System approved the transfer of Wyoming into the Denver branch zone following a comprehensive study of changing transportation se rv ice s , area trade orientation patterns, and other e c o nomic relationships. The study clearly indicated that the interests of the public and the banks in Wyo ming could best be served through the Denver branch, Mr. Clay said. The Kansas City bank’s recommenda tion for the transfer was supported by a resolution of the Wyoming Bankers A ssociation in 1969. The transfer is expected to be effective in July, although the exact date has not been pinpointed pending development of detailed plans for servicing Wyoming banks and for transferring reserve accounts and other records from Omaha to Denver. The Omaha branch has served Wyo ming banks since 1917, although certain services have been provided to Wyoming banks through the Denver branch in recent years. LARAMIE: The Bank of Laramie has announced plans to remodel and e x pand within the next six to 12 months. The action w ill provide more teller and loan office sp a ce , four remote-controlled windows at a new drive-in fa cility , and 40 additional parking sp a ce s . The bank has pur chased a property at 302 Garfield for the parking area. MORAN: The Wyoming Bankers A s sociation w ill be in convention Thursday, Friday, and Saturday at Jackson Lake Lodge. On-the-spot photos and a news report of the convention by a staff member will appear in the July issue of the Northwestern Banker. COLORADO NEWS CANON CITY: Byron E. Totten, re tired president of the First National Bank, died recently after suffering an apparent heart attack. He was 67. He joined the bank in 1926, became president in 1964, and retired in 1967 because of ill health. COLORADO SPRINGS: C . K. (Tim) Skinner, Jr., has been named execu tive vice president of the Exchange National Bank. He was president oi the First National Bank, Santa F e, N.M ., from 1968 to last January. WIGGINS: The FDIC has approved coverage for the new First State Bank, which has total capital a c counts of $250,000. Henry G. Trautwein, Jr., is president. f ---------------------- \ B a n k at th e O ld e s t A G R IC U L T U R A L F IN A N C IA L C E N T E R IN C H I C A G O FRED D. CUMMINGS BERNARD D. MILLER LARRY E. MAKOBEN EDWARD L. RIETZ, JR. the National Bank o f W aterloo https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis drovers THE DROVERS NATIONAL BANK OF CHICAGO 47th and Ashland Ave., Chicago, III. 60609 *A Bankers' Bank" Three of our men on your side at Fred Couison Tom Cannon C ommerce NORTH DA KO TA NEWS Fair Credit. . . (Continued from Page 1) pool information, even when the information is limited to their own experience with a customer, are e f fectively operating a credit bureau. “ Even though the loan exchange may not necessarily give the paying record of the consumer, the fact that it identifies sources and/or amounts of other loans is enough to qualify it as a consumer reporting agen cy,’ ’ the FTC said. MINOT: Jeff G. Stockdill and Douglas A. Freeman have joined the staff of the First National Bank, according to President George M. Johnson. Mr. Stockd ill, who is completing a train ing period, will work in auditing. Mr. Freeman, who has worked as a part-time teller, w ill be in the in stallment loan department of the bank, Mr. Johnson said. WANT ADS Rates 25 cents per word per insertion. Minimum: 12 words. NORTHWESTERN BANKER 306 15th St., Des Moines, Iowa SOUTH D AKO TA NEWS ABERDEEN: A . N. (Norg) Sanderson has been named assistant vice pres ident and agricultural loan officer at the head office of the First National Bank of Aberdeen. He has been with the bank sin ce 1964. Chairles A. Stiles has been promoted to manager of the installment loan department at the Mobridge branch. He has been in the Mobridge office since joining the bank in 1959. SIOUX FALLS: Leonard E . Martinek, former vice president and manager at the east branch, National Bank of South Dakota, has been named vice president in charge of business development at the main office and eastern division headquarters here. James J. Murphy, former assistant cashier and manager of the install ment loan department at the main office has succeeded Mr. Martinek. FOR SALE 20 pocket NCR proof machine, ap proximately 10 years old. B ill Parks, Manly State Bank, Manly, Iowa. Telephone 5 1 5 /4 5 4 -2 2 5 5 . PERSONNEL OFFICER Des Moines, Iowa, bank is looking for an experienced Personnel D irec tor to be in charge of salary adminis tration, staff training, communica tion s, personnel retraining and ad vancement, reporting directly to top management. Actual personnel e x perience required but banking experi ence not a prerequisite. Write File DMM, NORTHWESTERN BANKER, 306 Fifteenth Street, Des Moines, Iowa 50309. FOR SALE A four teller station straight line counter, with under counter storage ÛÛ Bank Under the Big I of Kansas City and with one return—lime oak and formica. In excellen t condition. Available about October 1. Farmers State Bank, Superior, Nebraska 68978. FOR SALE Controlling interest in $12 million bank in Northern Minnesota. Write Box MPN, c / o NORTHWESTERN BANKER, 306 Fifteenth Street, Des Moines, Iowa 50309. NEEDED The chief executive officer for a smaller bank in Iowa. Send replies in confidence to Box ABI, in care of NORTHWESTERN BANKER, 306 15th St., Des Moines, Iowa 50309. CASH FLOW SHEETS Monthly cash flow income and e x pense forms —s o helpful in planning budget loans for farmers and ranchers«. Samples available. Farm Business C ouncil, Inc., 1300 Hagan Street, Champaign, Illinois 61820. PROTECT YOUR FARM LOANS Send Doane’s Farming For Profit monthly farm management newsletter. Latest ways to save money., increase yields and profits. Mailed direct by us with your imprint. Low co s t. Free sample. D. R. Gorr, Doane Agricul tural Service, Inc., Dept. 702, 8900 Manchester Road, St. Louis, Missouri 63144,___________________ ____________ C A LL THE “ INSIDE MEN” The “ Inside Men” of LaSalle Na tional Bank, C hicago, w ill give you fast action o n ’credit requests. Call Tom Roth, Jack Ramey, Rick Anderson or Phil Butler, and find out how fast action on your loan requests can b e. Our new phone number is (312) 443-2774. n 1 w o u ld like to se ll m y m ajo rity b an k stock. [] 1 w o u ld lik e to b u y m ajo rity b an k stpck. “ The Bank That Cares” Please CENTRAL NATIONAL BANK AND TRUST Mem ber Federal Deposit Insurance Corooration COMPANY Contact: J. Mason Henry, Pres. C H A R LES E. W A LTERS C O ., IN C . P. O. Box 1313, Omaha, Neb. 68)01 Phone: (402) 553-6400 No. 1294 Northwestern Banker Newsletter is published weekly by the Northwestern Banker Company, 306 Fifteenth Street, Des Moines, Iowa 50309. Subscriptions 25ÿ per copy, $6 per year. Second cla ss postage paid at Des Moines, Iowa. Address all mail subscriptions, changes o f address (Form 3579), manuscripts, mail items to above address. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis i-
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