[Federal Register Volume 62, Number 220 (Friday, November 14, 1997)]
[Notices]
[Page 61127]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-29910]
[[Page 61127]]
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FEDERAL RESERVE SYSTEM
Notice of Proposals To Engage in Nonbanking Activities or to
Acquire Companies That are Engaged in Nonbanking Activities
Popular, Inc., Hato Rey, Puerto Rico (Notificant), has provided
notice pursuant to section 4(c)(8) of the Bank Holding Company Act, 12
U.S.C. Sec. 1843(c)(8)) (BHC Act), and section 225.24 of the Board's
Regulation Y (12 CFR 225.24), to acquire through its wholly owned
subsidiary, Popular Cash Express, Inc., Orlando, Florida, certain
assets of Florida Exchange, Ltd., Oak Park, Illinois, and Mirando-J.,
Inc., Oak Park, Illinois, and thereby engage in the approved and new
nonbanking activities. The approved activities are: (1) extending
credit, servicing loans, and related activities, pursuant to Sec. 12
C.F.R. 225.28(b)(1) of the Board's Regulation Y; (2) leasing personal
and real property, pursuant to Sec. 225.28(b)(3) of the Board's
Regulation Y; (3) providing financial and investment advisory services,
pursuant to Sec. 225.28(b)(6) of the Board's Regulation Y; (4)
providing transactional services, pursuant to Sec. 225.28(b)(7) of the
Board's Regulation Y; (5) providing investing and trading services,
pursuant to Sec. 12 C.F.R. 225.28(b)(8)(ii) of the Board's Regulation
Y; (6) acting as principal, agent or broker for insurance related to
extensions of credit, pursuant to Sec. 225.28(b)(11)(i) of the Board's
Regulation Y; (7) acting as agent or broker for insurance directly
related to an extension of credit as would be sold by a finance
company, pursuant to Sec. 225.28(b)(ii) of the Board's Regulation Y;
(8) issuing and selling money orders, savings bonds, and traveler's
checks, pursuant to Sec. 225.28(b)(13) of the Board's Regulation Y.
Notificant also proposes to engage in (1) check cashing services; (2)
accepting bill payments; (3) accepting or disbursing change in exchange
for currency in a different denomination; and (4) transmitting or
wiring money on a worldwide basis. See Midland Bank, PLC, 76 Fed. Res.
Bull. 860 (1990); and Norwest Corporation, 81 Fed. Res. Bull. 974
(1995) and 81 Fed. Res. Bull. 1130 (1995).
In addition, the Notificant proposes to engage, either alone or as
an incident to other activities, in the following new nonbanking
activities that the Board previously has not determined are closely
related to banking under section 4(c)(8) of the BHC Act: (1) selling
bus passes, transit tokens, prepaid phone cards, event and attraction
tickets, prepaid cellular phone time and other similar forms of
alternate media of value; (2) selling postage stamps and postage-paid
envelopes; (3) providing mailboxes and related services; (4) providing
notary public services; (5) providing vehicle registration services and
selling, distributing and renewing license plates and license tags for
motor vehicles; (6) providing photocopying and facsimile transmission
services; and (7) entering into arrangements with automobile clubs to
promote membership in and services of such clubs. These activities will
be conducted worldwide.
Section 4(c)(8) of the Bank Holding Company Act provides that a
bank holding company may, with Board approval, engage in any activity
that 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. A
particular activity may be found to meet the ``closely related to
banking'' test if it is demonstrated that banks generally have provided
the proposed activity, that banks generally provide services that are
operationally or functionally similar to the proposed activity so as to
equip them particularly well to provide the proposed activity, or that
banks generally provide services that are so integrally related to the
proposed activity as to require their provision in a specialized form.
National Courier Ass'n v. Board of Governors, 516 F.2d 1229, 1237 (D.C.
Cir. 1975). In addition, the Board may consider any other basis that
may demonstrate that the activity has a reasonable or close
relationship to banking or managing or controlling banks. Board
Statement Regarding Regulation Y, 49 FR 794, 806 (1984).
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 to seek the views of interested persons on this 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 December 5, 1997. Any request for a hearing on this notice
must, as required by section 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.
This notice may be inspected at the office of the Board of
Governors or the Federal Reserve Bank of New York.
Board of Governors of the Federal Reserve System, November 7,
1997.
Jennifer J. Johnson,
Deputy Secretary of the Board.
[FR Doc. 97-29910 Filed 11-13-97; 8:45 am]
BILLING CODE 6210-01-F
