h2_19760724.pdf

ANNOUNCEMENT BY

BOARD OF GOVERNORS OF THE

FEDERAL RESERVE SYSTEM (H.2, 1976 No. 30)

Actions of the Board; Applications and Reports

Received During the Week Ending July 24, 1976

ACTIONS OF THE BOARD

Report on bill, S. 3163, letter to Chairman Proxmire of the Senate Banking, Housing and Urban Affairs Committee com-menting on a bill that would permit interest to be paid on demand deposits that consist of public funds of the United States or of a State or a political subdivision or instru-mentality of a State.

Further consideration early next year to the question whether commerical banks should be permitted.to pay the same ceiling rate of interest on Individual Retirement Accounts as thrift institutions.

Amendments to Regulation G, Securities Credit By Persons Other Than Banks, Brokers, Or Dealers, to reduce the amount of paperwork and reporting required in the regulation of securities credit.

Letter to Senator Biden, Chairman of the Consumer Affairs subcommittee of the Banking, Housing and Urban Affairs Committee in response to questions raised relating to violations of the Truth in Lending Act.

American Security Corporation, Washington, D.C., issuance of order announcing determination that ASC is entitled to grandfather privileges with respect to certain nonbanking activities.

Citibank Overseas Investment Corporation, New York, New York, consent for an additional extension of time within which to establish a branch in San Juan, Puerto Rico. JL/

First Citizens Bank of Butte, Butte, Montana, extension of time for three months within which First Citizens Bank of Butte may accomplish membership in the Federal Reserve System. 1/

1/ Application processed on behalf of the Board of Governors under delegated authority.

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

H.2, 1976 No. 30 2

ACTIONS OF THE BOARD-Continued

Dauphin Deposit Corporation, Harrisburg, Pennsylvania, extension of time of three months from August 1, 1976, to November 1, 1976, in which to consummate acquisition of 100 per cent of the voting shares of Dauphin Deposit Bank and Trust Company, Harrisburg, Pennsylvania. 1/

First Bancshares of Florida, Inc., Boca Raton, Florida, extension of time until October 19, 1976, within which to acquire shares of and open Vero Beach National Bank, Vero Beach, Florida. V

Kentucky National Corporation, Louisville, Kentucky, 90-day extension of time, from July 24, 1976, until October 22, 1976, to commence certain de novo activities at an office at 101 South Fifth Street, Louisville, Kentucky. V

Northern Michigan Corporation, Escanaba, Michigan, extension of time from July 24, 1976, to October 24, 1976, within which the de novo Northern Michigan Bank of Kingsford, Kingsford, Michigan, shall be opened for business; and to extend from July 24 to October 24, 1976, the time within which the Corporation may consummate acquisition of Northern Michigan Bank of Kingsford, Kingsford, Michigan. 1/

Northeast United Bancorp, Inc., of Texas, Fort Worth, Texas, extension of time to November 17, 1976, in which to con-summate the acquisition of First State Bank, Bedford, Texas. 1/

Republic of Texas Corporation, Dallas, Texas, extension of time to October 27, 1976, within which to consummate the acquisi-tion of Braes Bayou National Bank, Houston, Texas and to open for business. 1/

Redwood National Mortgage Company, San Francisco, California, a subsidiary of Redwood Bancorp, also of San Francisco, extension of time to October 24, 1976, within which to divest itself of unimproved property in Albany, California. 1/

Peoples State Bank of Holland, Michigan, extension of time to December 19, 1976, within which to establish a branch in the vicinity of 501 West Main Street, Holland Township, Michigan. 1/

Foxworth Bank, Foxworth, Mississippi, investment in bank premises. 1/

1/ Application processed on behalf of the Board of Governors under delegated authority.

NOTE: The H.2 release is now published in the Federal Register. It will continue to be sent, upon request, to anyone desiring a copy.


H.2, 1976 No. 30 - 3 -


To Establish a Domestic Branch Pursuant to Section 9 of the Federal Reserve Act

Approved Union Trust Company of Maryland, Baltimore, Maryland. Branches to be established at the following locations:

A. In the Bel Air Plaza Shopping Center, Bel Air, Hartford County.

B. In the College Center Building, Towson State College, Baltimore County. 2/

First Bank and Trust Company of South Bend, South Bend, Indiana. Branch to be established at the southeast corner of State Road No. 23 and Rittersweet Road, Grander, Harris Township, St. Joseph County. 2/

Louisville Trust Bank, Inc., Louisville, Kentucky. Branch to be established at 3940 Westport Road, Louisville, Jefferson County. 2/

Seattle Trust and Savings Bank, Seattle, Washington. Branch to be established on the southeast corner of N.E. 85th Street and 124th Avenue N.E. in the unincorporated King County. 2/

* * * * *

International Investments and Other Actions Approved Pursuant to Sections 25 and 25(a) of the Federal Reserve Act and Sections 4(c)(9) and 4(c)(13) of the Bank Hoiding Company Act of 1956, as amended

First Chicago International Banking Corporation, Chicago, Illinois: Board interpretation re: letter of credit transactions.

State of New York Banking Department, New York, New York: views of the Board for establishment of an agency in New York City by The Sumitomo Trust and Banking Company, Limited, Osaka, Japan.

2} Application processed by the Reserve Bank on behalf of the Board of Governors under delegated authority.


H.2, 1976 No. 30 - 4


First Chicago International Finance Corporation, Chicago, Illinois: Investment - to acquire First Chicago Invest-ments Canada Limited, Toronto, Canada.

Security Pacific Overseas Corporation, Los Angeles, California: regarding the sale of mutual funds.

Allied Bank International, New York, New York: Invest-ment to establish and wholly-own a de novo Bank and Trust Company in Nassau, to be known as Allied Bank and Trust Company (Bahamas) Limited.

First National City Overseas Investment Corporation, New York, New York: FNC Comercio E. Participacoes S.A. to issue debt obligations, Rio de Janeiro, Brazil.

American National Overseas Corporation, Chicago, Illinois: Investment - to enter into a joint venture, Americorp-Servicos Assessoria E. Particiapoes Limitada, Brazil.

To Merge Pursuant to Section 18(c) of the Federal Deposit Insurance Act

Approved First Guaranty Bank, Hurt, Virginia for prior approval

to merge with Schoolfield Bank and Trust Comapny, Danville, Virginia.

To Form a Bank Holding Company Pursuant to Section 3(a)(1) of the Bank Holding Company Act of 1956

Approved Bancook Corporation, Cook, Nebraska, for approval to

acquire 80 per cent or more of the voting shares of Farmers Bank of Cook, Cook, Nebraska. 2/

Hastings State Company, Hastings, Nebraska, for approval to acquire 80 per cent or more of the voting shares of Hastings State Bank, Hastings, Nebraska.

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2/ Application processed by the Reserve Bank on behalf of the Board of Governors under delegated authority.


H.2, 1976 No. 30 ~ 5 -


Denied C N Banc Holding Corporation, Maplewood, Missouri, for approval to acquire 80 per cent or more of the voting shares of Citizens National Bank of Greater St. Louis, Maplewood, Missouri.

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To Expand A Bank Holding Company Pursuant to Section 4(c)(8) of the Bank Holding Company Act of 1956

Approved Mellon National Corporation, Pittsburgh, Pennsylvania,

for approval to acquire 100 per cent of the voting shares of Local Loan Company, Chicago, Illinois.

Delayed Southwest Bancshares, Inc., Houston* Texas, notification of intent to engage in de novo activities (originating loans as principal, originating loans as agent, servicing loans for nonaffiliated individuals, partnerships, and corporations; servicing loans for subsidiaries of South-west Bancshares, Inc. and such other activities as may be incident to the business of a mortgage company) at 2901 West Loop South, Houston, Texas, through a sub-sidiary, Southwest Bancshares Mortgage Company (7/21/76) 3/

Reactivated Manufacturers Hanover Corporation, New York, New York, notification of intent to engage in de novo activities (of a consumer finance business including without limita-tion making or acquiring, for its own account or for the account of others, loans and other extensions of credit such as would be made by a finance company, servicing loans and other extensions of credit for any person; and acting as agent or broker for the sale of credit related life accident and health insurance and consumer credit related property (including non-filing insurance) and casualty insurance which is related to extension of credit made or acquired by Ritter Finance Company and/or its direct and indirect subsidiaries) at King Street, Elizabethtown, North Carolina, through its subsidiary, Ritter Finance Company, Inc., of North Carolina (6/30/76) 3/

2/ Applications processed by the Reserve Bank on behalf of the Board of Governors under delegated authority.

3/ 4(c)(8) and 4(c)(12) notifications processed by Reserve Bank on behalf of the Board of Governors under delegated authority.


H.2, 1976 No. 30 — 6 ~

ACTIONS OF THE BOARD-Continucd

Root River Agency, Inc., Preston, Minnesota, notification of intent to engage in de novo activities (an agriculture credit company) at 100 Anthony, North, Preston, Minnesota (7/23/76) 3/

Citicorp, New York, New York, notification of intent to engage in de novo activities (consumer personal lending, preauthorized consumer revolving credit; and acting as broker for the sale of consumer credit related life/ accident and health insurance and consumer credit re-lated property and casualty insurance; if these pro-posals are effected, the subsidiary will offer to sell insurance as follows: credit life/accident and health or individual decreasing or level (in the case of single payment loans) life insurance to cover the outstanding balance of consumer credit transactions singly or jointly with their spouses or cosigners in the case of life coverage in the event of death, or, to make the contractual monthly payments on the consumer credit transactions in the event of the obligatorsT disability to the extent permissable under applicable State in-surance laws and regulations; and individual casualty insurance on personal property subject to security agreements and to include liability coverage in home or automobile owner "package" policies where such is the general practice; further, in regard to the sale of credit related insurance, the subsidiary will not act as a general insurance agency) at 1701 North Kipling Street, Suite 205, Lakewood, Colorado, through its subsidiary, Nationwide Financial Service Corporation and its sub-sidiary, Citicorp Person-to-Person Financial Center, Inc., (7/24/76) 3/

CR&T Bancshares, Inc., Columbus, Georgia, notification of intent to engage in d£ novo activities (writing and issuing credit life insurance policies and credit accident and health insurance policies in connection with the ex-tensions of credit such as would be made by a second mort-gage company) at 1148 Broadway, Columbus, Georgia, through a subsidiary, CB&T Homeowners, Inc. (7/24/76) 3/

Permitted

3/ 4(c)(8) and 4(c)(12) notifications processed by Reserve Bank on behalf of the Board of Governos under delegated authority.


H.2, 1976 No. 30 - 7 -


Flagship Banks, Inc., Miami Beach, Florida, notification of intent to continue to engage through a subsidiary known as Flagship Service Corporation (Company), a subsidiary, Flagship Bank of Tampa in the following activities now being performed by Company (providing bookkeeping or data processing services for the internal operations of the holding company and its subsidiaries and storing and processing other banking, financial or related economic data such as performing payroll, accounts receivable or payable, or billing services) After reorgani-zation, Company will be a direct wholly-owned subsidiary of Flagship Banks, Inc.; activities will be conducted at 120 Andalusia Avenue, Coral Gables; 4720 Cypress Street, Tampa; 103 Century 21 Drive, Suite 110, Building No. 2, Jacksonville; and 5800 Diplomat Circle, Ambassador Building, Orlando, all located in Florida (7/24/76) 3/

Bankshares of Nebraska, Inc., Grand Island, Nebraska, notifi-cation of intent to engage in de_ novo activities (sale of credit life and credit disability (accident and health) insurance on extensions of credit) at First Center, 3413 West Thirteenth Street, Grand Island, Nebraska, through a subsidiary, First Savings Company (7/22/76) 3/

BankAmerica Corporation, San Francisco, California, notifi-cation of intent to engage in de novo activities (making or acquiring for its own account loans and other extensions of credit, servicing for itself or others loans and other extensions of credit such as would be made or provided by a finance company, including but not limited to the following specific activities: making of consumer installment loans, purchasing installment sales finance contracts, making loans and other extensions of credit to small businesses, and making loans secured by real or personal property or a combination thereofacting as agent or broker for the sale of credit life and credit accident and health insurance, and credit related property and casualty insurance in connection with extensions of credit by FinanceAmerica Corporation) at offices to be located at 31 A Black Horse Pike, Runnemede, New Jersey, through its subsidiary, FinanceAmerica Corp., a New Jersey Corporation (7/19/76) 3/

3_/ 4(c)(8) and 4(c) (12) notifications processed by Reserve Bank on behalf of the Board of Governors under delegated authority.


H.2, 1976 No. 30 - 8 -


Patagonia Corporation, Tucson, Arizona, notification of in-tent to engage in de novo activities (originating residential mortgages and mortgages on commercial real estate for sale to permanent investors; servicing of mortgages for permanent investors; and interim lending for land development and construction financing where the loan will be sold to a permanent investor) at 1700 First Avenue, Yuma, Arizona, through its subsidiary, Western American Mortgage Company (7/22/76)2/

Withrawn CHAMBANCO, INC., Chambers, Nebraska, for approval to acquire

the assets of Adams & Adams Insurance Agency, Chambers, Nebraska.

Harvard State Company, Harvard, Nebraska, for approval to acquire the assets of Voorhees Insurance Agency, Harvard, Nebraska.



H.2, 1976 No. 30 9

APPLICATIONS RECEIVED

To Become a Member of the Federal Reserve System Pursuant to Section 9 of the Federal Reserve Act

The Central Trust Company of Canal Winchester, Canal Winchester, Ohio.

To Establish a Domestic Branch Pusuant to Section 9 of the Federal Reserve Act

Old Kent Bank of Kentwood, Kentwood, Michigan. Branch to be established in the vicinity of 52nd Street and Eastern Avenue, S.E., Kentwood.

To Merge Pursuant to Section 18(c) of the Federal Deposit Insurance Act

First Virginia Bank of Colonial Heights, Colonial Heights, Virginia for prior approval to merge with Richmond National Bank, Richmond, Virginia.

To Form a Bank Holding Company Pursuant to Section 3(a)(1) of the Bank Holding Company Act of 1956

Nabach, Inc., Farmer City, Illinois, for approval to acquire 52.27 per cent of the voting shares of State National Bank in Lincoln, Lincoln, Illinois.

Sidney Holding Company, Sidney, Montana to acquire 80.5 per cent of the voting shares of The Sidney National Bank, Sidney, Montana. 2/

2j Application processed by the Reserve Bank on behalf of the Board Governors under delegated authority.

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i


H.2, 197^). 30 - 10

APPLICATIONS RECEIVED-Continued

To Expand a Bank Holding Company Pursuant to Section 3(a)(3) of the Bank Holding Company Act of 1956

LITCO Corporation of New York, Garden City, New York, for approval to acquire 100 per cent of the voting shares of Long Island Bank, Hicksville, New York, successor by conversion to Long Island National Bank, Hicksville, New York. 2)

Tower-Soudan Agency, Inc., Tower, Minnesota, for approval to acquire an additional 43.67 per cent of the voting shares of State Bank of Tower, Tower, Minnesota. If

First City Bancorporation of Texas, Inc., Houston, Texas, for approval to acquire 100 per cent of the voting shares (less directors' qualifying shares) of First City Bank-Northeast, N.A., Houston, Texas.

* * * * *

To Expand a Bank Holding Company Pursuant to Section 4(c)(8) of the Bank Holding Company Act of 1956

Citicorp, New York, New York, notification of intent to engage in de novo activities (purchasing and servicing for its own account consumer installment sales finance contracts, and will act as broker for the sale of con-sumer credit related life and accident and health in-surance and consumer credit related property and casualty insurance on purchased consumer installment sales finance contracts; said insurance will only be offered when such transactions are the equivalent of direct extensions of consumer credit by the subsidiary. If this proposal is effected, the subsidiary will offer to sell insurance as follows: group credit life and accident and health insurance to cover the outstanding balances on consumer installment sales finance contracts to the obligator, singly or jointly with their spouses or co-signers in the case of life coverage, in the event of death, or, to make the contractual monthly payments on consumer installment sales finance transactions in the event of the obligators' disability to the extent permissible under applicable state insurance laws and regulation; individual casualty insurance on personal property subject to security agreements; further, in regard to the sale of credit related insurance, the subsidiary will not act as a general insurance agency) at Mall View Office Park, 5313 50th Street, Building B, Suite 5, Lubbock, Texas, through its subsidiary, Nationwide Financial Corporation (7/21/76) 3/

2/ Application processed by the Reserve Bank on behalf of the Board of Governors under delegated authority.



H.2, 1976 No. 30 - 1 1 ~

APPLICATIONS RECEIVED-Contlnued

Florida National Banks of Florida, Inc., Jacksonville, Florida, notification of intent to engage in de novo activities (the business of acting as agent for the sale of credit life and accident and health insurance directly related to extensions of credit by the bank holding company and/or its banking and nonbanking sub-sidiaries), at Titusville, Opa-Locka, Miami, Fort Pierce, Coral Gables, Madison, Bushnell, Bartow, De Land, St. Petersburg, Ft. Lauderdale, Daytona Beach, Pensacola, Jacksonville, Orlando, Vero Beach, Port St. Joe, West Palm Beach, Key West, Gainesville, Brent, Starke, Lakeland, Chipley, Belle Glade, Ocala, Perry and Fernandina Beach, all located in Florida (7/20/76) 3/

Century Financial Corporation of Michigan, Saginaw, Michigan, for approval to acquire all the voting shares of Century Life Insurance Company of Michigan, Phoenix, Arizona, (underwriting, as reinsurer, credit life and credit accident and health insurance which is directly related to extensions of credit by the bank holding company system)

Nabach, Inc., Farmer City, Illinois, for approval to continue to engage in the provision of investment advisory service for State National Bank in Lincoln, Lincoln, Illinois,

Security Pacific Corporation, Los Angeles, California, notification of intent to engage in de_ novo activities (making or acquiring for its own account, or for the account of others, loans and extensions of credit, including making consumer installment personal loans, to small businesses and other extensions of credit such as would be made by a factoring company or a commerical finance company, and acting as broker or agent for the sale of consumer-related life/accident and health insurance and consumer related property and casualty insurance) at 16052 Beach Blvd, Huntington Beach, California, through its subsidiary, Security Pacific Finance Corp. (7/16/76) 3/

3/ 4(c)(8) and 4(c) (12) notifications processed by Reserve Bank on behalf of the Board of Governors under delegated authority.


H.2, 1976 No. 30 - 1 2 -

REPORTS RECEIVED

Current Report Filed Pursuant to Section 13 of the Securities Exchange Act :

Bank of the Commonwealth, Detroit, Michigan

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PETITIONS FOR RULEMAKING

None.


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