[Federal Register Volume 60, Number 17 (Thursday, January 26, 1995)]
[Notices]
[Pages 5180-5181]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-1906]



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FEDERAL RESERVE SYSTEM

Gillmor Financial Services, Inc.; Change in Bank Control Notices; 
Acquisitions of Shares of Banks or Bank Holding Companies; Correction

    This notice corrects a notice (FR Doc. 95-525) published on pages 
2600 and 2601 of the issue for Tuesday, January 10, 1995.
    Under the Federal Reserve Bank of Cleveland heading, the entry for 
Gillmor Financial Services, Inc., is revised to read as follows:
    1. Gillmor Financial Services, Inc., Old Fort, Ohio; Application to 
Engage in Nonbanking Activities
    Gillmor Financial Services, Inc., Old Fort, Ohio (Applicant), has 
applied pursuant to section 4(c)(8) of the Bank Holding Company Act (12 
U.S.C. 1843(c)(8)) (BHC Act) and Sec.  225.23(a)) of the Board's 
Regulation Y (12 CFR 225.23(a)) to engage through its subsidiary, The 
Old Fort Real Estate Company, Old Fort, Ohio (Company), in community 
development activities pursuant to Sec.  225.25(b)(6) of the Board's 
Regulation Y (12 C.F.R. Sec.  225.25(b)(6)). In particular, Company 
would own a commercial building in Tiffin, Ohio, and lease it to a 
third party for use as a full-service grocery store (``Store'').
    Section 4(c)(8) of the BHC Act provides that a bank holding company 
may, with prior Board approval, engage in any activity which the Board, 
after due notice and opportunity for hearing, has determined (by order 
or regulation) to be so closely related to banking or managing or 
controlling banks as to be a proper incident thereto. This statutory 
test requires that two separate tests be met for an activity to be 
permissible for a bank holding company. First, the Board must determine 
that the activity is, as a general matter, closely related to banking. 
Second, the Board must find in a particular case that the performance 
of the activity by the applicant bank holding company may reasonably be 
expected to produce public benefits that outweigh possible adverse 
effects.
    The Board has previously determined by regulation that engaging in 
community development activities is closely related to banking and 
permissible for bank holding companies under section 4 of the BHC Act. 
See 12 CFR 225.25(b)(6). The Board's community development regulation 
provides that a bank holding company may make equity and debt 
investments in corporations or projects designed primarily to promote 
community welfare, such as the economic rehabilitation and development 
of low-income areas by providing housing, services, or jobs for 
residents. The Board also has issued an interpretation that provides 
further guidance on what types of investments qualify as permissible 
community welfare investments. 12 CFR 225.127.
    Applicant maintains that Company's ownership and lease of a 
building for the operation of Store is authorized under the Board's 
community development regulation because the Store is located in a low- 
and moderate-income neighborhood of Tiffin based on measures of median 
household income. In addition, Applicant states that the Store 
constitutes the only full service grocery store within a 2-mile radius 
and that residents who live near the Store do not have access to public 
transportation that would enable them to shop elsewhere. Applicant also 
maintains that this proposal is consistent with the Board's 
determinations regarding permissible community development investments 
in First Financial Corporation of Wellington, 76 Federal Reserve 
Bulletin 671 (1990) (agricultural test farm) and Luxemburg Bancshares, 
Inc., 77 Federal Reserve Bulletin 63 (1991) (medical clinic).
    In order to satisfy the proper incident to banking test, section 
4(c)(8) of the BHC Act requires the Board to find that the performance 
of the activities by Company can reasonably be expected to produce 
benefits to the public, such as greater convenience, increased 
competition, or gains in efficiency that outweigh possible adverse 
effects, such as undue concentration of resources, decreased or unfair 
competition, conflicts of interest, or unsound banking practices. 
Applicant believes that the proposed activities will benefit the public 
by bringing added convenience to residents of low- and moderate-income 
areas of Tiffin and by promoting competition. Applicant believes that 
the proposed activities will not result in any unsound banking 
practices or other adverse effects.
    In publishing the proposal for comment, the Board does not take a 
position on issues raised by the proposal. Notice of the proposal is 
published solely in order to seek the views of interested persons on 
the issues presented by the application and does not represent a 
determination by the Board that the proposal meets, or is likely to 
meet, the standards of the BHC Act.
    Any comments or requests for hearing should be submitted in writing 
and received by William W. Wiles, Secretary, Board of Governors of the 
Federal Reserve System, Washington, D.C. 20551, not later than January 
24, 1995. Any request for a hearing on this application must, as 
required by Sec. 262.3(e) of the Board's Rules of 
[[Page 5181]] Procedure (12 CFR 262.3(e)), be accompanied by a 
statement of the reasons why a written presentation would not suffice 
in lieu of a hearing, identifying specifically any questions of fact 
that are in dispute, summarizing the evidence that would be presented 
at a hearing, and indicating how the party commenting would be 
aggrieved by approval of the proposal.
    This application may be inspected at the offices of the Board of 
Governors or the Federal Reserve Bank of Cleveland.

    Board of Governors of the Federal Reserve System, January 19, 
1995.
Jennifer J. Johnson,
Deputy Secretary of the Board.
[FR Doc. 95-1906 Filed 1-25-95; 8:45 am]
BILLING CODE 6210-01-F