[Federal Register Volume 59, Number 162 (Tuesday, August 23, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-20535]
Federal Register / Vol. 59, No. 162 / Tuesday, August 23, 1994 /
[[Page Unknown]]
[Federal Register: August 23, 1994]
VOL. 59, NO. 162
Tuesday, August 23, 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: Final rule.
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SUMMARY: The Board of Directors (Board) of the FDIC is revising 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.
EFFECTIVE DATE: This rule is effective August 23, 1994.
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, DC
20429.
SUPPLEMENTARY INFORMATION:
Paperwork Reduction Act
No additional collections of information pursuant to Sec. 3504(h)
of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.) are contained
in the final rule. Consequently, no information was 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 final 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
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 final rule seeks to create a blanket
approval process for requests that must receive the prior written
consent of the FDIC. The final 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.
Effective Date
The necessity for a 30-day delay in effective date has been waived
since this rule relieves a restriction. 5 U.S.C. 553(d)(1).
Discussion
On April 26, 1994 the FDIC published for public comment a proposed
revision to part 303 of its regulations concerning the application and
publication requirements for the establishment and relocation of remote
service facilities. 59 FR 21676 (April 26, 1994). In general, the
proposal sought to reduce the regulatory burden on state nonmember
banks and state-licensed branches of foreign banks by lessening the
application and notice requirements which an institution must satisfy
before it may establish or relocate an RSF. Even more streamlined
procedures were set forth for banks with Community Reinvestment Act
(CRA) ratings of satisfactory or better.
The FDIC received a total of eight comment letters in response to
its proposal. Five of the letters were from banks or their holding
companies and three were from industry trade associations. All of the
letters enthusiastically supported the proposed revisions.
The FDIC Board specifically requested comment on whether the
proposed revision 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.
The four of eight commenters which addressed this question all urged
the FDIC to adopt the same standards for all types of RSFs, which is
the approach that was taken in the proposal and has been retained in
the final rule.
Under the prior regulation, banks desiring to establish an initial
RSF were required to comply with all the application and publication
requirements applicable to the establishment of a ``brick and mortar''
branch office. Successive RSFs could be established or relocated
without a formal application pursuant to somewhat less involved
requirements. The prior regulation did not differentiate based upon the
condition of the institution submitting the application; the only
difference it recognized was whether or not this was an initial
application.
In view of the limited investment represented by an RSF, 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 and the support expressed by all the commenters, the
FDIC is amending its regulation concerning the establishment and
relocation of RSFs to lessen the application and notice requirements
which an institution must satisfy before it may establish or relocate
an RSF. Furthermore, the final regulation sets forth even more
streamlined procedures for banks with CRA ratings of satisfactory or
better.
Specifically, Sec. 303.2(c) provides 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 public
notice requirements are being dispensed with in this case. See
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,
Sec. 303.2(c)(3) provides that the institution shall file the letter
described in Sec. 303.2(c)(2) 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 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 Sec. 303.2.
First, Sec. 303.6(a)(2) and (3) have been revised 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) has been revised to make it clear that section
applies to applications to establish an RSF. Third, Sec. 303.6(f)(2)
has been amended to delete any reference to remote service facilities.
This is being done in order to conform this section of the regulation
with the 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 revision 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. Thus, the proposal is being adopted in final form without change.
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 amends 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'' and ``Tenth''), 1828, 1831(e),
1831(o), 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 removing and reserving footnote 5
and 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, D.C., this 9th day of August, 1994.
Federal Deposit Insurance Corporation.
Robert E. Feldman,
Acting Executive Secretary.
[FR Doc. 94-20535 Filed 8-22-94; 8:45 am]
BILLING CODE 6714-01-P
