[Federal Register Volume 60, Number 47 (Friday, March 10, 1995)]
[Notices]
[Pages 13205-13206]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-5879]



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DEPARTMENT OF THE TREASURY
[Docket No. 95-05]


Preemption Determination

AGENCY: Office of the Comptroller of the Currency, Treasury.

ACTION: Notice and request for comments.

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SUMMARY: The Office of the Comptroller of the Currency (OCC) is 
publishing for comment a written request for the OCC's determination of 
whether Federal law preempts the application of a Texas regulation that 
prescribes certain requirements relating to the signs and advertising 
used to identify branch [[Page 13206]] banking facilities located in 
Texas. This notice and request for comment is provided pursuant to 
section 114 of the Riegle-Neal Interstate Banking and Branching 
Efficiency Act of 1994. It is intended to provide interested persons 
with an opportunity to provide comments prior to the OCC's issuance of 
a final opinion letter responding to the request.

DATES: Comments should be submitted on or before April 10, 1995.

ADDRESSES: Comments should be sent to the Communications Division, 250 
E Street SW., Third Floor, Washington, DC 20219. Attention: Docket No. 
95-05. Comments will be available for inspection and photocopying at 
the same location. Appointments for inspection of comments can be made 
by calling (202) 874-4700.

FOR FURTHER INFORMATION CONTACT: Sue E. Auerbach, Senior Attorney, Bank 
Activities and Structure Division, (202) 874-5300.

SUPPLEMENTARY INFORMATION:

Background

    Section 114 of the Riegle-Neal Interstate Banking and Branching 
Efficiency Act of 1994 (section 114), Pub. L. 103-328 (12 U.S.C. 43), 
generally requires the OCC to publish in the Federal Register a 
descriptive notice of certain requests that the OCC receives for 
preemption determinations. The OCC must publish this notice before it 
issues any opinion letter or interpretive rule concluding that Federal 
law preempts the application to a national bank of any State law 
regarding community reinvestment, consumer protection, fair lending, or 
the establishment of intrastate branches (four designated areas). The 
OCC must give interested persons at least 30 days to submit written 
comments, and must consider the comments in developing the final 
opinion letter or interpretive rule. The OCC must publish in the 
Federal Register any final opinion letter or interpretive rule that 
concludes that Federal law preempts State law in the four designated 
areas. Section 114 also provides certain exceptions, not applicable to 
the present request, to the Federal Register publication requirements.

Specific Request for OCC Preemption Determination

    The OCC has been asked to determine whether Federal law preempts 
the application of Texas Rule 3.92, 7 Tex. Admin. Code Section 3.92 
(Rule), ``Naming and Advertising of Branch Facilities,'' in its 
entirety, to national banks. The Rule was adopted by the Texas State 
Finance Commission on August 19, 1994, pursuant to Texas Civil Statutes 
Section 342-917, ``Identification of Facilities,'' which generally 
provides that a bank may not use any form of advertising that implies 
or tends to imply that a branch facility is a separate bank.
    The Rule prohibits advertising of a branch facility in a manner 
which implies or fosters the perception that a branch facility is a 
separate bank. While the Rule applies to all banks located in Texas, 
its provisions and prohibitions would most directly affect those banks 
that have what might be termed a ``generic name'' followed by a 
``geographic modifier'' (e.g., First National Bank of Dallas, Second 
State Bank of Austin), rather than what the Rule terms a ``unique legal 
name'' such as ``Jones National Bank'' or ``Smith Bank.'' The principal 
provisions of the Rule include the following:
    1. Upon acquisition of one bank to serve as a branch of another 
bank, use of the prior name of the extinguished bank to identify the 
acquired bank facility is prohibited on all signs, advertising and bank 
documents.
    2. A sign directing the public to a branch facility must contain 
either the legal name of the bank or a unique logo, trademark, or 
service mark of the bank. If a separate identifying name is used for 
the branch facility that either contains the word ``bank'' or does not 
contain the word ``branch'' and further does not identify the facility 
as a branch, then an additional sign at the branch facility must 
identify the legal name of the bank and identify the facility as a 
branch. This additional sign, for example, could consist of lettering 
on the entrance door or any other lettering visible to the public.
    3. The legal name of a bank is the full bank name as reflected in 
its charter, except that in signs and advertising a bank may omit terms 
which are either indicators of corporate status (N.A., Inc., Corp., 
L.B.A.) or geographic modifiers. However, where a bank without a unique 
legal name proposes to establish a branch facility (other than one 
within the city of domicile) within the same city as or within a 30-
mile radius of a pre-existing facility of a bank with the same or 
substantially similar legal name, the bank must either include the 
geographic modifier on its signs, disclose the city of its domicile on 
all signs directing the public to the branch, or else put up a separate 
sign notifying the public that the facility is a branch.
    4. If a bank without a unique legal name chooses not to place the 
signs as described in the foregoing paragraph, then the Rule requires 
the bank to provide notice to all existing bank facilities of other 
banks within the same banking market as the proposed branch location 
that have the same or substantially similar legal name, disregarding 
geographic modifiers, specifically advising the recipient of the name 
to be used in connection with the proposed branch facility. Banks so 
notified then have the opportunity to file a protest regarding the name 
of the proposed branch with the Texas State Banking Commission (for 
state banks) or with the OCC (for national banks).
    5. While banks in Texas, like other businesses, may operate under 
an assumed or professional name, they may not use an assumed name to 
evade the Rule.
    6. The Rule does not prescribe specifics such as number, size, or 
location of signs, size of lettering, and so on. Further, it does not 
require that branch names, signs, or advertising be approved by any 
regulatory authority.

Request for Comments

    The OCC requests comments on all aspects of the request for a 
determination of whether the application of the Rule to national banks 
is preempted by Federal law.

    Dated: March 6, 1995.
Eugene A. Ludwig,
Comptroller of the Currency.
[FR Doc. 95-5879 Filed 3-9-95; 8:45 am]
BILLING CODE 4810-33-P