[Federal Register Volume 64, Number 190 (Friday, October 1, 1999)]
[Rules and Regulations]
[Pages 53188-53189]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-25504]


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FEDERAL RESERVE SYSTEM

12 CFR Part 262

[Docket No. R-1045]


Rules of Procedure

AGENCY: Board of Governors of the Federal Reserve System.

ACTION: Final rule; technical amendment.

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SUMMARY: The Board is amending its Rules of Procedure to conform the 
comment period for branch notice applications with the period specified 
in its Regulation H, Membership of State Banking Institutions in the 
Federal Reserve System. The Rules of Procedure were not amended when 
the Regulation was amended, effective September 30, 1998. The Board is 
also amending the Rules of Procedure to delete the requirements for 
notices of memberships in cases where membership would confer federal 
deposit insurance, because there are no longer cases where membership 
confers federal deposit insurance. In addition, the Board is amending 
the Rules of Procedure to clarify that the requirement to publish 
notice in the community where a proposed branch would be located does 
not apply to branch applications incidental to merger applications, 
which are subject to the separate notice requirements for merger 
applications.

EFFECTIVE DATE: October 1, 1999.

FOR FURTHER INFORMATION CONTACT: Rick Heyke, Counsel, Legal Division, 
(202) 452-3688. For users of the Telecommunications Device for the Deaf 
(TDD), contact Diane Jenkins (202) 452-3544, Board of Governors of the 
Federal Reserve System, 20th and C Streets, NW, Washington, DC 20551.

SUPPLEMENTARY INFORMATION:

Background

    Section 208.6(a)(3) of the Board's Regulation H, Public Notice of 
Branch Applications, provides that a state member bank wishing to 
establish a domestic branch must publish notice in a newspaper of 
general circulation at the locations specified in Sec. 262.3 of the 
Rules of Procedure (12 CFR 262.3) and that the newspaper notice shall 
provide an opportunity for interested persons to comment on the 
application for a period of at least 15 days. (12 CFR 208.6(a)(3)(i) 
and (ii)). Until September 30, 1998, the comment period for branch 
applications was 30 days and was specified in Sec. 262.3(b) of the 
Rules of Procedure rather than in Regulation H. The Rules of Procedure 
were not amended when the regulation was amended, effective September 
30, 1998 (63 FR 37637, July 13, 1998), and Sec. 262.3(b)(1)(ii) 
continues to provide for a 30-day comment period for these 
applications. (12 CFR 262.3(b)(1)(ii)). It is no longer necessary to 
specify the comment period for branch applications in the Rules of 
Procedure since it is specified in Regulation H. Accordingly, the Board 
is amending the Rules of Procedure to delete the comment period 
requirement as it relates to branch applications.
    Section 262.3(b)(1)(ii)(A) of the Rules of Procedure specifies the 
location for publication of notice of an application for membership in 
the Federal Reserve System that would confer federal deposit insurance. 
Pursuant to Title I, section 115(a) of the Federal Deposit Insurance 
Corporation Improvement Act of 1991 (Pub. L. 102-242), any bank not 
previously an insured bank admitted to membership may apply separately 
to the Federal Deposit Insurance Corporation for insurance. (12 U.S.C. 
1814 and 1815(a).) Previously, membership conferred insured status (see 
12 U.S.C.A. 1814(b) (West 1989)). It is therefore no longer necessary 
to specify the location for publication of notice of an application for 
membership that would confer insurance. Accordingly, the Board is 
amending the Rules of Procedure to delete the publication location 
requirement for such applications.
    Section 262.3(b)(1)(ii)(B) specifies that in the case of an 
application to establish a new branch, notices shall be published in 
the communities in which the head office of the bank and the proposed 
branch are located. Section 262.3(b)(1)(ii)(D) specifies that in the 
case of an application by a bank for merger, consolidation, acquisition 
of assets, or assumption of liabilities (merger), notices shall be 
published in the communities in which the head offices of the banks 
involved are located. Such merger applications are also deemed to 
include applications to establish branches at the branch and/or head 
office locations being acquired, thereby avoiding a separate filing to 
establish branches at the acquired locations, and the Board has not 
required publication under paragraph (b)(1)(ii)(B) in addition to 
publication under paragraph (b)(1)(ii)(D). Accordingly, the Board is 
amending the Rules of Procedure to clarify that publication under 
paragraph (b)(1)(ii)(D) is sufficient in the case of branches acquired 
through merger, consolidation, acquisition of assets, or assumption of 
liabilities.
    The amendments adopted by the Board are rules of procedure. 
Accordingly, 5 U.S.C. 553(b), requiring public comment, does not apply. 
In addition, the amendments are technical amendments that remove an 
obsolete provision, reflect changes in the Board's Regulation H, and 
clarify a possible uncertainty. Accordingly, the Board finds good cause 
not to delay the effective date of the amendments pursuant to 5 U.S.C. 
553(d).

List of Subjects in 12 CFR Part 262

    Administrative practice and procedure, Banks, banking, Federal 
Reserve System.
    For the reasons set forth in the preamble, 12 CFR part 262 is 
amended as set forth below:

PART 262--RULES OF PROCEDURE

    1.The authority citation for 12 CFR part 262 continues to read as 
follows:

    Authority: 5 U.S.C. 552, 12 U.S.C. 321, 1828(c), and 1842.


Sec. 262.3  [Amended]

    2. Amend Sec. 262.3 by revising the first sentence in paragraph 
(b)(1)(ii),

[[Page 53189]]

removing and reserving paragraph (b)(1)(ii)(A), and revising paragraph 
(b)(1)(ii)(B) to read as follows:


Sec. 262.3  Applications.

* * * * *
    (b) * * *
    (1) * * *
    (ii) The notice shall be placed in the classified advertising legal 
notices section of the newspaper, and must provide an opportunity for 
the public to give written comment on the application to the 
appropriate Federal Reserve Bank for the period specified in Regulation 
H (12 CFR part 208) in the case of applications specified in 
Sec. 262.3(b)(1)(i)(A), and for at least thirty days after the date of 
publication in the case of applications specified in 
Sec. 262.3(b)(1)(i)(B) and (C).* * *
* * * * *
    (B) The community or communities in which the head office of the 
bank and the proposed branch or other facility (other than an 
electronic funds transfer facility) are located in the case of an 
application for the establishment of a domestic branch or other 
facility that would be authorized to receive deposits, other than an 
application incidental to an application by a bank for merger, 
consolidation, or acquisition of assets or assumption of liabilities,
* * * * *
    By order of the Board of Governors of the Federal Reserve 
System, September 24, 1999.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. 99-25504 Filed 9-30-99; 8:45 am]
BILLING CODE 6210-01-P