[Federal Register Volume 60, Number 211 (Wednesday, November 1, 1995)]
[Notices]
[Page 55579]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-27053]



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FEDERAL RESERVE SYSTEM

Area Bancshares Corporation, Owensboro, Kentucky; Notice to Engage 
in Certain Nonbanking Activities

    Area Bancshares Corporation, Owensboro, Kentucky (Applicant) has 
given notice 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 of the Board's 
Regulation Y (12 CFR 225.23) to engage indirectly through Five Paces 
Software. Inc., Atlanta, Georgia (FPSI), a wholly owned subsidiary of 
Security First Network Bank, FSB, Pineville, Kentucky (SFNB), in 
certain nonbanking activities involving data processing required for 
the provision by SFNB of electronic banking services over the 
nonproprietary computer network known as the ``Internet.'' SFNB has 
received approval from the Office of Thrift Supervision to provide 
certain banking services to its customers over the Internet, including 
deposit and bill-paying services.
    Applicant proposes to acquire a 4.9 voting common stock interest 
and an additional preferred stock interest in SFNB, which acquire FPSI 
as its wholly owned subsidiary. Applicant proposes thereby indirectly 
to market, design, develop, and provide ongoing technical support of 
data processing software for the electronic transmission of financial, 
banking, and economic data for financial institutions seeking to 
provide banking service over the Internet, pursuant to Sec.  
223.25(b)(7) of the Board's Regulation Y. Applicant will also be a 
software licensee of FPSI and will have a director on FPSI's board of 
directors. Applicant seeks approval to conduct the proposed data 
processing activities nationwide.
    FPSI will provide data processing and security software to 
financial institutions seeking to provide banking services to their 
customers over the Internet. Applicant indicates that this software is 
designed to enable electronic transmission of banking, financial and 
economic data in a secure environment over the Internet. FPSI also will 
provide financial institutions ongoing technical support related to its 
software, customization and installation services, and data center 
operations. Moreover, FPSI expects to develop additional data 
processing services that will allow customers to provide secure access 
to accounts across other channels such as through modems over public 
telephone lines.
    Section 4(c)(8) of the BHC Act provides that a bank holding company 
may, with 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.'' 12 U.S.C. 
1843(c)(8). 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 notice, 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 November 
16, 1995. Any request for a hearing on this proposal must, as required 
by Sec.  262.3(e) of the Board's Rules of 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. The notice 
may he inspected at the offices of the Board of Governors or the 
Federal Reserve Bank of St. Louis.

    Board of Governors of the Federal Reserve System, October 26, 
1995.
Jennifer J. Johnson,
Deputy Secretary of the Board.
[FR Doc. 95-27053 Filed 10-31-95; 8:45 am]
BILLING CODE 6210-01-F