[Federal Register Volume 62, Number 124 (Friday, June 27, 1997)]
[Rules and Regulations]
[Page 34617]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-16871]
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FEDERAL RESERVE SYSTEM
12 CFR Part 265
[Docket No. R-0973]
Rules Regarding Delegation of Authority
AGENCY: Board of Governors of the Federal Reserve System.
ACTION: Final rule.
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SUMMARY: The Board is amending its delegation rules to allow the
Secretary of the Board to determine the Federal Reserve District in
which an institution is located for purposes of Federal Reserve
membership and reserve account maintenance. This amendment should
provide for more expeditious handling of location determinations.
EFFECTIVE DATE: October 1, 1997.
FOR FURTHER INFORMATION CONTACT: Oliver Ireland, Associate General
Counsel, (202/452-3625) or Stephanie Martin, Senior Attorney (202/452-
3198), Legal Division. For the hearing impaired only, contact Diane
Jenkins, Telecommunications Device for the Deaf (TDD) (202/452-3544),
Board of Governors of the Federal Reserve System, 20th and C Streets,
N.W., Washington, D.C. 20551.
SUPPLEMENTARY INFORMATION: The Board has adopted amendments to its
Regulations D (Reserve Requirements of Depository Institutions, 12 CFR
part 204) and Regulation I (Issue and Cancellation of Capital Stock of
Federal Reserve Banks, 12 CFR part 209) to define the location of a
depository institution for purposes of Federal Reserve membership and
reserve account maintenance. (See Docket No. R-0963, elsewhere in
today's Federal Register.) The amendments provide that an institution
is considered to be located in the Federal Reserve District specified
in its charter or organizing certificate, or, if no such location is
specified, the location of its head office. The Board could make
exceptions to the general rule for a particular institution after
considering certain criteria. Thus, if the institution's location were
uncertain or its location based on its charter, organizing certificate,
or head office differed from the location where it conducted most of
its business, the Board could designate the appropriate location, after
consultation with the institution and the relevant Reserve Banks. (The
relevant Reserve Banks are the Reserve Bank whose district contains the
bank's charter, organizing certificate, license, or head office
location and the Reserve Bank in whose district the bank is proposed to
be located.)
The Board is delegating to the Secretary of the Board the authority
to make a location determination under Regulation D or Regulation I if
the relevant Federal Reserve Banks and the institution agree on the
specific Reserve Bank in which the institution should hold stock or
with which the institution should maintain a reserve account, and the
agreed-upon location does not raise any significant policy issues.
Administrative Procedure Act
The Administrative Procedure Act (5 U.S.C. 553(b)(A)) exempts
``rules of agency organization, procedure, or practice'' from the
notice of proposed rulemaking and public comment requirements. As the
Board's delegation rules fall under this exemption, the Board is
adopting these amendments without notice-and-comment procedures.
List of Subjects in 12 CFR Part 265
Authority delegations (Government agencies), Banks, banking,
Federal Reserve System.
For the reasons set forth in the preamble, the Board is amending 12
CFR Part 265 as set forth below:
PART 265--RULES REGARDING DELEGATION OF AUTHORITY
1. The authority citation for part 265 continues to read as
follows:
Authority: 12 U.S.C. 248 (i) and (k).
2. Section 265.5 is amended by adding a new paragraph (f) to read
as follows:
Sec. 265.5 Functions delegated to Secretary of the Board.
* * * * *
(f) Location of institution. To determine the Federal Reserve
District in which an institution is located pursuant to
Sec. 204.3(b)(2)(ii) of Regulation D (12 CFR part 204) or
Sec. 209.15(b) of Regulation I (12 CFR part 209) if:
(1) The relevant Federal Reserve Banks and the institution agree on
the specific Reserve Bank in which the institution should hold stock or
with which the institution should maintain reserve balances; and
(2) The agreed-upon location does not raise any significant policy
issues.
By order of the Board of Governors of the Federal Reserve
System, June 23, 1997.
William W. Wiles,
Secretary of the Board.
[FR Doc. 97-16871 Filed 6-26-97; 8:45 am]
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