tional information which will be helpful call dates fixed by the Board of Goverto the Board in determining whether to nors of the Federal Reserve System, shall approve such request. be published by such member bank with(d) Foreign branches. Before a mem-in 20 days from the date the call therefor is issued. ber State bank establishes a branch in a foreign country, or dependency or insular possession of the United States, it must have a capital and surplus of $1,000,000 or more and obtain the approval of the Board. (e) Application for approval of foreign branches. Any member State bank desiring to establish such a branch and any nonmember State bank applying for membership and desiring to retain any such branch established after February 25, 1927, should submit a request for the approval by the Board of any such branch to the Federal Reserve bank of the district in which the bank is located. Any such request should be accompanied by advice as to the scope of the functions and the character of the business which are or will be performed by the branch and detailed information regarding the policy followed or proposed to be followed with reference to supervision of the branch by the head office; and the bank may be required in any case to furnish additional information which will be helpful to the Board in determining whether to approve such request.*† § 208.9 Publication of reports of member banks and their affiliates1-(a) Reports of member banks. Each report of condition made by a member State bank, which is required to be made to the Federal Reserve bank of its district as of The report shall be printed in the newspaper published in the place where the bank is located or, if there be no newspaper published in the place where the bank is located, then in a newspaper published in the same or in an adjoining county and in general circulation in the place where the bank is located. The term "newspaper," for the purpose of this part, means a publication with a general circulation published not less frequently than once a week, one of the primary functions of which is the dissemination of news of general interest. The copy of the report for the use of the printer for publication should be prepared on Form 105e. The published information shall agree in every respect with that shown on the face of the condition report rendered to the Federal Reserve bank, except that any item for which no amount is reported may be omitted in the published statement. All signatures shall be the same in the published statement as in the original report submitted to the Federal Reserve bank, but the signatures may be typewritten or otherwise copied on the report for publication. A copy of the printed report shall be submitted to the Federal Reserve bank attached to the certificate on Form 105e. of an affiliate of a member State bank, (b) Reports of affiliates. Each report including a holding company affiliate, shall be published at the same time and 2 Section 21 of the Federal Reserve Act (49 Stat. 715; 12 U.S.C., Sup., 486), among other things, provides as follows: "Whenever member banks are required to obtain reports from affiliates, or whenever affiliates of member banks are required to submit to examination, the Board of Governors of the Federal Reserve System or the Comptroller of the Currency, as the case may be, may waive such requirements with respect to any such report or examination of any affiliate if in the judgment of the said Board or Comptroller, respectively, such report or examination is not necessary to disclose fully the relations between such affiliate and such bank and the effect thereof upon the affairs of such bank." Therefore, of course, in any case where the Board of Governors waives the filing of a report of an affiliate of a member State bank, no publication of a report of such affiliate is required. Section 9 also provides that the reports of affiliates of a member State bank which are required by that section to be furnished to the respective Federal Reserve banks "shall be published by the bank under the same conditions as govern its own condition reports." The term "affiliates," as used in this provision of section 9, under the express terms of that section, includes "holding company affiliates as well as other affiliates," but a member State bank is not required to furnish to a Federal Reserve bank the report of an affiliated member bank. to withdraw from membership in a Federal Reserve bank, subject to such conditions as the Board may prescribe, prior to the expiration of 6 months from the date of the written notice of its intention to withdraw. in the same newspaper as the affiliated | waive such 6 months' notice in any inbank's own condition report submitted dividual case and may permit such bank to the Federal Reserve bank, unless an extension of time for submission of the report of the affiliate has been granted under authority of the Board of Governors of the Federal Reserve System. When such extension of time has been granted, the report of the affiliate must be submitted and published before the expiration of such extended period in the same newspaper as the condition report of the bank was published. tice of its intention to withdraw should so state in the letter signifying its intention to withdraw and should state the reason for its desire to withdraw prior to the expiration of 6 months. (b) Notice of intention of withdrawal. Any State bank desiring to withdraw from membership in a Federal Reserve bank should signify its intention to do so in a letter addressed to the Board and The copy of the report for the use of mailed to the Federal Reserve bank of the printer for publication should be which such bank is a member. Such prepared on Form 220a. The published letter should state clearly the reason information shall agree in every respect for the bank's desire to withdraw. Any with that shown on the face of the report such bank desiring to withdraw from of the affiliate furnished to the Federal membership prior to the expiration of Reserve bank by the affiliated member 6 months from the date of written nobank, except that any item appearing under the caption "Financial relations with bank" against which the word "none" appears on the report furnished to the Federal Reserve bank may be omitted in the published statement of the Every notice of intention of a bank to affiliate: Provided, That if the word withdraw from membership in the Fed"none" is shown against all of the items eral Reserve System and every applicaappearing under such caption in the re- tion for the waiver of such notice should port furnished to the Federal Reserve be accompanied by a certified copy of bank the caption "Financial relations a resolution duly adopted by the board with bank" shall appear in the published statement followed by the word "none." All signatures shall be the same in the published statement as in the original report submitted to the Federal Reserve bank, but the signatures may be typewritten or otherwise copied on the report for publication. of directors of such bank authorizing the withdrawal of such bank from membership in the Federal Reserve System and authorizing a certain officer or certain officers of such bank to file such notice or application, to surrender for cancellation the Federal Reserve bank stock held by such bank, to receive and receipt for any moneys or other property due to such bank from the Federal Reserve bank and to do such other things as may be necessary to effect the withdrawal of such bank from membership in the Federal Reserve System. Notice of intention to withdraw or application for waiver of 6 months' notice of intention to withdraw by any bank which is in the hands of a conservator or other State official acting in a capacity similar to that of a conservator should be accompanied by advice from the conservator or other such State official that he joins in such notice or application. 1 Under specific provisions of section 9 of the Federal Reserve Act (40 Stat. 232; 12 U.S.C. 328), however, no Federal Reserve bank shall, except upon express authority of the Board, cancel within the same calendar year more than 25 percent of its capital stock for the purpose of effecting voluntary withdrawals during that year. All applications for voluntary withdrawals are required by the law to be dealt with in the order in which of 6 months after notice of intention they are filed with the Board. to withdraw or upon the waiving of such (c) Time and method of effecting actual withdrawal. Upon the expiration 210.2 210.5 COLLECTION Statutory provisions. General requirements. Checks received for collection. Time schedule and availability of credits. Terms of collection. Other rules and regulations. 6 months' notice by the Board, such | PART 210-CHECK CLEARING AND bank may surrender its stock and its certificate of membership to the Federal Sec. Reserve bank and request that same be 210.1 cancelled and that all amounts due to it from the Federal Reserve bank be refunded. Unless this is done within 2 months after the expiration of such 6 months' notice or after the waiver of such notice by the Board, or unless the bank requests and the Board grants an extension of time, such bank will be presumed to have abandoned its intention of withdrawing from membership and will not be permitted to withdraw without again giving 6 months' written notice or obtaining the waiver of such notice. § 210.1 Statutory provisions. Section 16 of the Federal Reserve Act (38 Stat. 265; 12 U.S.C. 248 (a)) authorizes the Board of Governors of the Federal Reserve System to require each Federal Reserve bank to exercise the functions of a clearing house for its member banks, and section 13 of the Federal Reserve Act, as amended by the Act approved June 21, (d) Withdrawal of notice. Any bank 1917 (40 Stat. 235; 12 U.S.C. 342), auwhich has given notice of its intention thorizes each Federal Reserve bank to to withdraw from membership in a Fed-receive from any nonmember bank or eral Reserve bank may withdraw such trust company, solely for the purposes notice at any time before its stock has been canceled and upon doing so may remain a member of the Federal Reserve System. The notice rescinding the former notice should be accompanied by a certified copy of an appropriate resolution duly adopted by the board of directors of the bank.*† § 208.11 Board forms. All forms referred to in this part and all such forms as they may be amended from time to time shall be a part of the regulations in this part.** 1A bank's withdrawal from membership in the Federal Reserve System is effective on the date on which the Federal Reserve bank stock held by it is duly canceled. Until such stock has been canceled, such bank remains a member of the Federal Reserve System, is entitled to all the privileges of membership, and is required to comply with all provisions of law and all regulations of the Board pertaining to member banks and with all conditions of membership applicable to it. Upon the cancelation of such stock, all rights and privileges of such bank as a member bank shall terminate. of exchange or of collection, deposits of current funds in lawful money, national-bank notes, Federal Reserve notes, checks and drafts payable upon presentation, or maturing notes and bills, provided such nonmember bank or trust company maintains with its Federal Reserve bank a balance sufficient to offset the items in transit held for its account by the Federal Reserve bank.** the authority contained in secs. 11 (1), 16, *§§ 210.1 to 210.6, inclusive, issued under 38 Stat. 262, 265, sec. 4, 40 Stat. 234; 12 U.S.c. 248 (1), (o), 360, 342. In §§ 210.1 to 210.6, inclusive, the numbers to the right of the decimal point correspond with the respective section numbers in Regulation J, Board of Governors of the Federal Reserve System, July 31, 1939, effective Sept. 1, 1939; 4 F.R. 3677. In § 210.2 General requirements. pursuance of the authority vested in it under these provisions of law, the Board of Governors of the Federal Reserve System, desiring to afford both to the public and to the various banks of the country a direct, expeditious, and ecoUpon the cancelation of such stock, and nomical system of check collection and after due provision has been made for any indebtedness due or to become due to the settlement of balances, has arranged to Federal Reserve bank, such bank shall be have each Federal Reserve bank exerentitled to a refund of its cash paid sub-cise the functions of a clearing house scription with interest at the rate of one- and collect checks for such of its memhalf of 1 percent per month from the date of last dividend, the amount refunded ber banks as desire to avail themselves in no event to exceed the book value of the of its privileges and for such nonmemstock at that time, and shall likewise be ber State banks and trust companies as entitled to the repayment of deposits and of any other balance due from the Federal may maintain with the Federal Reserve Reserve bank. bank balances sufficient to qualify them under the provisions of section 13 to send items to Federal Reserve banks for purposes of exchange or of collection. Such nonmember State banks and trust companies will hereinafter be referred to as nonmember clearing banks. available for withdrawal or other use by the sending bank. For all checks received, the sending bank will be given immediate credit, or deferred credit, in accordance with such time schedule, and as provided below. Each Federal Reserve bank shall (b) For all such checks as are reexercise the functions of a clearing ceived for immediate credit in accordhouse and collect checks under the gen- ance with such time schedule, immedieral terms and conditions hereinafter ate credit, subject to final payment, will set forth, and each member bank and be given upon the books of the Federal nonmember clearing bank shall coop- Reserve bank at full face value in the erate fully in the system of check clear-reserve account or clearing account upance and collection for which provision on day of receipt, and the proceeds will is herein made.*† at once be counted as reserve and be credit given for any item for which the Federal Reserve bank has not yet received payment in actually and finally § 210.3 Checks received for collection. come available for withdrawal or other (a) Each Federal Reserve bank shall re-use by the sending bank; Provided, howceive at par from member and nonmem-ever, That the Federal Reserve bank may ber clearing banks in its district, from in its discretion refuse at any time to other Federal Reserve banks, and from permit the withdrawal or other use of all member and nonmember clearing banks in other Federal Reserve districts which are authorized to route direct for the credit of their respective Federal Reserve banks, checks1 drawn on all member and nonmember clearing banks of its district, and checks drawn on all other nonmember banks of its district which are collectible at par in funds acceptable to it. (b) Each Federal Reserve bank may receive at par from member and nonmember clearing banks in its district, checks drawn on all member and nonmember clearing banks in other Federal Reserve districts, and checks drawn on all other nonmember banks in other Federal Reserve districts which are collectible at par in funds acceptable to the collecting Federal Reserve bank. (c) No Federal Reserve bank shall receive on deposit or for collection any check drawn on any nonmember bank which cannot be collected at par in funds acceptable to the Federal Reserve bank.*† § 210.4 Time schedule and availability of credits. (a) Each Federal Reserve bank will publish a time schedule showing the time at which any item sent to it will be counted as reserve and become 1 A check is generally defined as a draft or order upon a bank or banking house, purporting to be drawn upon a deposit of funds, for the payment at all events of a certain sum of money to the order of a certain person therein named, or to him or his order, or to bearer, and payable on demand. collected funds. (c) For all such checks as are received for deferred credit in accordance with such time schedule, deferred credit, subject to final payment, will be entered upon the books of the Federal Reserve bank at full face value, but the proceeds will not be counted as reserve nor become available for withdrawal or other use by the sending bank until such time as may deposit or collection shall by such action be deemed to authorize the Federal Reserve banks to handle such checks subject to the following terms and conditions; to warrant its own authority to give the Federal Reserve banks such authority; to agree to indemnify any Federal Reserve bank for any loss or expense sustained (including but not limited to attorneys' fees and expenses of litigation) resulting from the failure of such sending bank to have such authority, or resulting from such Federal Reserve bank's guaranty of prior endorsements, or resulting from any action taken by the Federal Reserve bank within the scope of its authority for the purpose of collecting such checks; and to guarantee all prior endorsements on such checks whether or not a specific guaranty is incorporated in an endorsement of the sending bank. (a) A Federal Reserve bank will act only as agent of the bank from which it receives such checks and will assume no liability except for its own negligence and its guaranty of prior endorsements. (b) A Federal Reserve bank may present such checks for payment or send such checks for collection direct to the bank on which they are drawn or at which they are payable, or in its discretion may forward them to another agent with authority to present them for payment or send them for collection direct to the bank on which they are drawn or at which they are payable. (c) A Federal Reserve bank may, in its discretion and at its option, either directly or through or from an agent, accept in payment of or in remittance for such checks, cash, bank drafts, transfers of funds or bank credits, or other forms of payment or remittance, acceptable to the collecting Federal Reserve bank. The Federal Reserve bank shall not be liable for the failure of the drawee bank or (d) Checks received by a Federal Reserve bank which are payable in its own district will ordinarily be forwarded or presented direct to the banks on which they are drawn, and such banks will be required to remit or pay therefor at par in such one or more of the forms of payment or remittance authorized under as may be acceptaparagraph (c) ble to the Federal Reserve bank. (e) Checks received by a Federal Reserve bank payable in other districts will ordinarily be forwarded for collection to the Federal Reserve bank of the district in which such checks are payable; Provided, however, That, where arrangements can be made satisfactory to the collecting bank or agent and to the Federal Reserve bank of the district in which such checks are payable, any such checks may be forwarded for collection direct to the bank on which they are drawn or at which they are payable, or may be forwarded for collection to another agent with authority to present them for payment direct to the bank on which they are drawn or at which they are payable. All such checks shall be handled subject to all the terms and conditions of this part. (f) With respect to any check sent member or nonmember direct by a clearing bank in one district to a Federal Reserve bank in another district, the relationships and the rights and liabilities existing between the member or nonmember clearing bank, the Federal Reserve bank of its district and the Federal Reserve bank to which the check is sent will be the same, and the relevant provisions of this part will apply, as though the member or nonmember clearing bank had sent such check to the Federal Reserve bank of its district with its endorsement and guaranty of prior endorsements and such Federal Reserve bank had sent the check to the other Federal Reserve bank with its en dorsement and guaranty of prior en dorsements. any agent to pay or remit for such checks, nor for any loss resulting from the acceptance from the drawee bank or any (g) Bank drafts received by a Federal collecting agent, in lieu of cash, of any other form of payment or remittance Reserve bank in payment of or in reauthorized herein, nor for the nonpay-mittance for checks handled under the terms of this part shall likewise ment of, or failure to realize upon, any bank draft or other medium of payment be handled for collection subject to all or remittance which may be accepted the terms and conditions of this part. from the drawee bank or any collecting agent. (h) The amount of any check for which payment in actually and finally |