[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]
-----------------------------------------------------------------------
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
