[Federal Register Volume 59, Number 80 (Tuesday, April 26, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-9580]
[[Page Unknown]]
[Federal Register: April 26, 1994]
=======================================================================
-----------------------------------------------------------------------
FEDERAL DEPOSIT INSURANCE CORPORATION
12 CFR Part 303
RIN 3064-AB36
Applications and Publication Requirements; Establishment and
Relocation of Remote Service Facilities
AGENCY: Federal Deposit Insurance Corporation (FDIC or Corporation).
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: The Board of Directors (Board) of the FDIC is proposing to
revise its application and publication requirements for the
establishment and relocation of remote service facilities (RSFs). The
intended effect of this rule is to lessen the regulatory burden on
state nonmember banks and state-licensed branches of foreign banks.
DATES: Written comments must be received by the FDIC on or before June
27, 1994.
ADDRESSES: Written comments shall be addressed to the Office of the
Executive Secretary, Federal Deposit Insurance Corporation, 550 17th
Street NW., Washington, DC 20429. Comments may be hand-delivered to
room F-400, 1776 F Street NW., Washington, DC 20429, on business days
between 8:30 a.m. and 5 p.m. (FAX number: (202) 898-3838). Comments
will be available for inspection in room 7118, 550 17th Street NW.,
Washington, DC 20429, between 9 a.m. and 4:30 p.m. on business days.
FOR FURTHER INFORMATION CONTACT: Curtis L. Vaughn, Examination
Specialist, Division of Supervision (202/898-6759), Federal Deposit
Insurance Corporation, 1776 F Street NW., Washington, DC 20429; or
Jeffrey M. Kopchik, Counsel, Legal Division, (202/898-3872), Federal
Deposit Insurance Corporation, 550 17th Street NW., Washington, D.C.
20429.
SUPPLEMENTARY INFORMATION:
Paperwork Reduction Act
No additional collections of information pursuant to section
3504(h) of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.) are
contained in the proposed rule. The Board of Directors of the FDIC has
concluded that the notices required of depository institutions which
seek to establish or relocate a remote service facility under the
proposed regulation will not constitute a ``collection of information''
as defined in 5 CFR 1320.7 which has not already been approved by the
Office of Management and Budget. Consequently, no information has been
submitted to the Office of Management and Budget for review.
Regulatory Flexibility Act
Pursuant to section 605(b) of the Regulatory Flexibility Act, 5
U.S.C. 605(b), the FDIC hereby certifies that the proposed rule will
not have a significant impact on a substantial number of small
entities.
The FDIC has reached this conclusion because the effect of the
rule, if it is ultimately promulgated in its current form, will be to
reduce the recordkeeping, reporting and compliance requirements that
are imposed upon small entities rather than to increase them. This is
because the proposed rule seeks to create a blanket approval process
for requests that must receive the prior written consent of the FDIC.
The proposed rule imposes no new recordkeeping or reporting
requirements upon small entities since notices required are abbreviated
versions of letter applications currently required of banks.
Furthermore, most institutions would not be required to give public
notice of the transaction which would reduce burden on the requesting
institutions.
Discussion
The FDIC desires to reduce the regulatory burden on banks seeking
to establish or relocate RSFs. Currently, banks desiring to establish
an initial RSF must comply with all the application and publication
requirements applicable to the establishment of a ``brick and mortar''
branch office. See 12 CFR 303.2(a) & (c). Successive RSFs may be
established or relocated without a formal application pursuant to
somewhat less involved requirements. See 12 CFR 303.2(c). The existing
regulation does not differentiate based upon the condition of the
institution submitting the application; the only difference it
recognizes is whether or not this is an initial application.
In view of the limited investment represented by an RSF and the
fact that all the information in the FDIC's possession indicates that
consumers are of the opinion that RSFs are a convenient and desirable
banking service, the FDIC is proposing that its existing regulation
concerning the establishment and relocation of RSFs be revised to
lessen the application and notice requirements which an institution
must satisfy before it may establish or relocate an RSF. Furthermore,
unlike the existing regulation, the proposal sets forth even more
streamlined procedures for banks with Community Reinvestment Act (CRA)
ratings of satisfactory or better.
Specifically, the proposal revises Sec. 303.2(c) of the FDIC's
regulations to provide that a state nonmember bank or an insured state-
licensed branch of a foreign bank whose most recent CRA rating is
Satisfactory or better may establish and operate or relocate an RSF by
filing a letter with the appropriate FDIC regional director. The letter
shall contain the location of the RSF and either a representation that
the site is not included in or eligible for inclusion in the National
Register of Historic Places or written verification that in the opinion
of the appropriate state historic preservation officer the
establishment or relocation of the RSF will have no adverse effect on a
historic site. Unless the institution is notified otherwise by the FDIC
within seven days of receipt of the letter, the institution may
establish or relocate the RSF. The FDIC is proposing that the existing
public notice requirements be dispensed with in this case. See proposed
Sec. 303.2(c)(2). However, if the institution cannot make such
representations concerning compliance with the National Historic
Preservation Act, 16 U.S.C. 470 et seq., it shall proceed pursuant to
Sec. 303.2(c)(3).
In the event that the state nonmember bank or insured state-
licensed branch's most recent CRA rating is not Satisfactory or better,
proposed Sec. 303.2(c)(3) provides that the institution shall file the
letter described in Sec. 303.2(c)(2) of the proposal and comply with
the existing notice provisions of Sec. 303.6(f). Unless the institution
is notified otherwise within fifteen days after completion of
processing of the letter, the institution may establish or relocate the
RSF. In the event that a protest is filed or other objection is taken,
the institution may not proceed until the FDIC provides written notice
of its approval.
The remaining proposed revisions are to Sec. 303.6 (a) and (f) of
the FDIC's regulations. They are technical in nature in order to
conform these sections, which concern application procedures and public
notices of application filings, to the new procedures set forth in
proposed Sec. 303.2. First, the proposal revises Sec. 303.6(a) (2) and
(3) to take into account the different procedures set forth in
Sec. 303.2(c) for institutions with CRA ratings of Satisfactory or
better as opposed to institutions with CRA ratings of less than
Satisfactory. Second, the heading of Sec. 303.6(f)(1)(A) would be
revised under the proposal to make it clear that section applies to
applications to establish an RSF. Third, the proposal amends
Sec. 303.6(f)(2) to delete any reference to remote service facilities.
This is being proposed in order to conform this section of the
regulation with the proposed revision to Sec. 303.6(a) which deletes
the publication requirement for applicants with CRA ratings of
satisfactory or better.
The Board is of the opinion that this is a sensible proposal which
will substantially reduce the regulatory burden imposed on state
nonmember banks and insured state-licensed branches of foreign banks
that desire to establish or relocate an RSF without adversely affecting
the FDIC's ability to assure the safety and soundness of the insured
financial institutions it regulates or its responsibilities under the
CRA. The Board also requests comment on whether the proposal should
treat different types of RSFs differently, i.e., an RSF which caters
exclusively to one bank's customers as opposed to a shared RSF which is
utilized by customers of many banks.
List of Subjects in 12 CFR Part 303
Administrative practice and procedure, Authority delegations
(Government agencies), Bank deposit insurance, Banks, banking,
Reporting and recordkeeping requirements, Savings associations.
For the reasons set forth in the preamble, the Board of Directors
of the Federal Deposit Insurance Corporation hereby proposes to amend
part 303 of title 12 of the Code of Federal Regulations as follows:
PART 303--APPLICATIONS, REQUESTS, SUBMITTALS, DELEGATIONS OF
AUTHORITY, AND NOTICES REQUIRED TO BE FILED BY STATUTE OR
REGULATION
1. The authority citation for part 303 continues to read as
follows:
Authority: 12 U.S.C. 378, 1813, 1815, 1816, 1817(a)(2)(b),
1817(j), 1818, 1819 (``Seventh'', ``Eighth'' and ``Tenth''), 1828,
1831e, 1831o, 1831p-1(a); 15 U.S.C. 1607.
2. In Sec. 303.2, paragraph (a) introductory text is amended by
removing the second parenthetical in the first sentence, the
parentheticals in the second and third sentences, and by removing ``,
relocate a remote service facility'' and ``other than a remote service
facility'' from the fourth sentence, and paragraph (c) is revised to
read as follows:
Sec. 303.2 Applications by insured state nonmember bank to establish a
branch, move its main office or relocate a branch.
* * * * *
(c) Special procedures for remote service facilities. (1) For
purposes of this section, establishing means owning or leasing a remote
service facility either individually or jointly.
(2) An insured state nonmember bank or an insured state-licensed
branch of a foreign bank whose most recent Community Reinvestment Act
rating is Satisfactory or better and who desires to establish and
operate or relocate a remote service facility (RSF) shall file a letter
with the appropriate regional director. The letter shall contain the
exact location of the proposed or relocated RSF, including street
address (unless one has not been assigned to the location), and either
a representation that the site of the proposed or relocated RSF is not
included in or eligible for inclusion in the National Register of
Historic Places or written verification that in the opinion of the
appropriate state historic preservation officer the establishment or
relocation of the RSF will have no adverse effect on a historic site.
Unless the institution is notified otherwise by the FDIC within seven
days of receipt of the letter, the institution may establish and
operate or relocate the RSF. In the event that the institution cannot
represent in good faith that the site of the proposed or relocated RSF
is not included in or eligible for inclusion in the National Register
of Historic Places or evidence that written verification has been
obtained from the appropriate state historic preservation officer, the
institution shall proceed pursuant to paragraph (c)(3) of this section.
(3) An insured state nonmember bank or an insured state-licensed
branch of a foreign bank whose most recent Community Reinvestment Act
rating is not Satisfactory or better and who desires to establish and
operate or relocate an RSF shall file the letter described in paragraph
(c)(2) of this section and comply with the notice provisions of
Sec. 303.6(f). Unless the institution is notified otherwise by the FDIC
within 15 days after completion of processing of the letter, the
institution may establish and operate or relocate the RSF; provided
however, that in the event that a protest is filed with the FDIC or
other objection is taken prior to completion of processing the letter,
the institution shall not establish and operate or relocate the RSF
until the FDIC provides written notice of its approval.
3. Section 303.6 is amended by revising paragraphs (a)(2), (a)(3),
the heading of paragraph (f)(1)(ii)(A), and paragraph (f)(2) to read as
follows:
Sec. 303.6 Application procedures.
(a) * * *
(2) Applications by insured state nonmember banks to establish
branches, including applications to establish remote service facilities
by banks whose most recent Community Reinvestment Act rating is not
Satisfactory or better or who cannot represent compliance with the
National Historic Preservation Act;
(3) Applications by insured state nonmember banks to move their
main office or relocate their branch offices, including applications to
relocate remote service facilities by banks whose most recent Community
Reinvestment Act rating is not Satisfactory or better or who cannot
represent compliance with the National Historic Preservation Act;
* * * * *
(f) * * *
(1) * * *
(ii) * * *
(A) Applications to establish a branch, including a remote service
facility. * * *
* * * * *
(2) Notice by posting. In the case of applications to move a main
office or relocate a branch, in addition to the notice by publication
described in paragraph (f)(1) of this section, notice of the
publication shall be posted in the public lobby of the office(s) to be
moved or relocated, if such public lobby exists, for at least 21 days
beginning with the date of the last published notice required by
paragraph (f)(1) of this section for applications to move a main
office; and for at least 15 days beginning with the date of the
publication notice required by paragraph (f)(1) of this section for
applications to relocate a branch.
* * * * *
By order of the Board of Directors.
Dated at Washington, DC, this 12th day of April, 1994.
Federal Deposit Insurance Corporation.
Robert E. Feldman,
Acting Executive Secretary.
[FR Doc. 94-9580 Filed 4-25-94; 8:45 am]
BILLING CODE 6714-01-P