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Federal Register / Vol. 50. No. 228 / Tuesday. November 26, 1985 / Rules and Regulations

person, within 30 days of the expiration of the period provided to make a submission, a written notice of the Corporation's order of assessment which must be paid within 10 days. unless otherwise agreed to, or the Corporation may bring an action to collect the assessed penalty.

(3) In addition to any other remedies available to the Corporation, assess a civil penalty of up to $1.000 per day for each day during which the violation continues under section 4081) of the Holding Company Act, 12 U.S.C. 1730al) for any company that violates or any person who participates in e violation of the Holding Company Actor any regulation or order issued pursuant thereto. As used in this paragraph. the term "violates includes, without limitation, any action (alone or with another or others) for or toward causing bringing about participating in. counseling. or aiding and abetting a violation:

(4) Cause the review period to commence again after a determination of sufficiency has been made under

574 6(c)(2) of this part, or extend the review period pursuant to $574.6(CH3)(ü) of this part



institution to be acquired. the amount of and the General Counsel The Director
investment in the insured institution and of the Office of Examinations and
the investment as a percentage of the Supervision with the concurrence of the
acquiror's net worth and (2) the amount General Counsel or their respective
of each entry as a percentage of the designees are authorized to take the
acquiror's tolal assets, net worth and

following actions:
gross income. (3) available unaudited (1) Approve any application or issue
Linancial statements for each entity for notice of intent not to disapprove any
whicb a waiver has been requested notice (1) which does not raise &
which include at least three years of significant issue of law or policy.
statements for each entity of operations including approval or issuar.ce of notice
and interim statements within 90 days of of intent not to disapprove applications
the most recendy filed amendment, and or notices that are opposed by the
2 years of statements or condition and insured institution to be acquired or
interim statements within 90 days of the contested by another prospective
most recently filed amendments: (9) a

acquiror. and letter from an independent accountant (ii) which does not involve net worth indicating changes that would be

maintenance or dividend conditions that required to reconcile the financial fail to conform to paragraph (a)(1)(iv) of slaiements with ones prepared on a this section: basis that would be consistent with

(2) Decide whether a determination of generally accepted accounting

control under $574.4(b) of this part or a principles; and (5) the lastest available presumption of acting in concert under Federal income tax returns for each $574.41d) of this part has been rebutted: entity for the immediately preceding two (3) With regard to notices filed under taxable years.

$574.3(6) of this part, to acquire control (v) Noufication of the state

of insured institutions which cannot be supervisory agent pursuant to $574.6(h)

approved under paragraph (8) of this of this part.


6) All actions regarding publication (4) Appeal. Denial of an application or required or permitted by $574.6(d) of notice by a Principal Supervisory Agent this Part pursuant to paragraph (a) of this section

(ü) Any other action which would may be appealed to the Corporation otherwise be delegated to the Principal under the following procedures: Within Supervisory Agent pursuant to 20 days after notification of the Principal paragraphs (a) (1) and (3) of this section: Supervisory Agent's decision as

(4) Grant waivers of certified financial provided herein. the acquiror must statements for an acquiror's proprietary notify the Office of the Secretanat of the interests in connection with notices filed acquiror's desire to appeal the Principal under $574.3(b) of this part which Supervisory agent's decision. Two

cannot be approved under paragrapb (a) copies of such request for review must of this section be submitted to the Office of the

(5) Notify the state supervisory agent SecretariatFederal Home Loan Bank

pursuant to 574.6(b) of this part. Board, Washington. D.C. 20532, with one (c) Sole authority in the Corporation copy indicated Attention: Director, The Corporation alone may: Office of Examinations and

(1) Approve or deny any applications Supervision" and a second copy

or determine whether to disapprove indicated "Attention: Office of General nouces which are col delegated: Counsel. Enforcement Division," with (2) In addition to any other remedies one copy to the appropriate Principal available to the Corporation assess a Supervisory Agent The request for civil penalty under paragraph (16) of the review must identify the party seeking Control Act for any person who willfully review and describe with specificity the violates any provision of the Control action taken for which review is sought Act, or any regulation or order issued by and the reasons why the Principal the Corporation pursuant thereto. of not Supervisory Agent's denial or notice of

more than $10.000 per day for each day disapproval is contended to be

during which the violation continues erroneous. If an applicant does not file (1) By giving utiiten notice of tbe basis an appeal within the time permitted for the violation, the amount of the under this section, any objection to the proposed civil penalty, and an initial determination by the applicant is opportunity for the person to submit waived. A timely appeal filed with the data, views, and arguments within 20 Secretariat in accordance with the days, and provisions of this section shall be

(ii) By giving due consideration to the mandatory for securing judicial review appropriateness of the penalty with of an initial determination.

respect to each of the factors specified (b) Joint octions by the Director of the in paragraph (16) of the Control Act, 12 Office of Examinations and Supervision U.S.C. 173014)(16). and issuing to the

5. The authority citation for Part 584 continues to read as follows:

Authority: Sec 68. « Siat 5(12 U.SC 1730a) unless otherwise noted.

6. Revise 584.4 as follows: $ 504.4 Prohibited acquisition

No savings and loan hoiding company, directly or indirectly, or through one or more transactions, shall

(a) Acquire by purchase or otherwise any of the voting stock or shares of an insured institution not a subsidiary, or of a savings and loan holding company not a subsidiary, and in addition, in the case of a multiple savings and loan holding company, acquire or retain more than five percent of the voting shares of any company becoming e savings and loan holding company for more than one year after that and which is not a subsidiary but is engaged in any business activity other than those specified in of $$84.2(b) or $5842-1(b), or

(b) Acquire control of an ununsured institution or retain, for more than one year after other than en insured institution or holding company thereof, the date any insured institution subsidiary becomes aninsured, control of such institution.

Federal Register / Vol. 50. No. 228 / Tuesday, November 28, 1985 / Rules and Regulations

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7. Remove $ 52.41. $384.50 (Areended)

& Amed 4 s64.00 by removing paragraph (d) thereof and redesignating paragrupa lej a new paragraph (dl. PART 509_BOARD RULINGS ismas Momoved)

Remove 15891 IS003 Poroved

to Remove #2 By the Federal Hurde Lona Bank Baud Nedi. Y. Acting Secretary [FR Doc &-om filed 11-30% tus man were con

12 CFR Parts 562, 546, 552 and 563
IMO. AS-1000)
Detergented Merger Approvades Principal
Superstory Agents Authority

Datet November a es AGENCY: Federal Home Loan Bank Board. ACTIO. Final rule. Mar. The Federal Home Loan Bank Board Board) is twending its regulation which delineate the authority of its Principe Supervisory Agrate (PSAs“) to soprove applicatiom involving mergers. consolidatioas, balk transfer and other transfer of assets and liabilities, of thritt institutions whose deposits are insured by the Federal Servings and Lom Insurance Corporation Corporation and federally chartered savings banks whose deposits are imowed by the Federal Deposit Insurance Corporation ("FDC). The amennent are designed to facilitate expeditious disposition of such application by significantly expanding the cathority delegated to the Principal Supervisory Agents to approve, as well as to deny. applications. A new delegation to the Boards Washington staff at the tractions whide fall outside of the authority delegated to the PSAs will also inprove the fencines of the Board's application procedures. In orion the Board has booed a final rule delegating to the PSAs the suthority to charter Oortata isterion institutions which are wed solely to facilitate other transactions in order to further expedite applications propewing. Finally, the Board is amending and simplifying its rules regarding the rights of shareholders to an appraisal of their

shares in connection with certaia types of mergers and consolidations. EFFECTIVE DATE: December 23, 1985. FOR FURTHER INFORMATION CONTACT: R. Penfield Starke. Autorney (202-3776453). Laura Patriarca, Deputy Director (202-377-6411): Julie L Williams Associate General Counsel Director (202-37-459): Corporate and Securities Dwision Office of General Counsel Federal Home Loan Bank Board. 1700 C Street. NW, Washington D.C 20552 SUPPLEMENTARY INFORMATION: By Board Resolution No. 85-284h dated April 17. 1985, 50 FR (April 25. 1995). the Board proposed to amend its regulations delegating authority to ius Principal Supervisory Agents to approve certania mergers, consolidations and bulk purchases or transfer ol assebo (collectively referred 20 u "mergers") as well as other transfer of assets and liabilities of insured institutions. Mergers involving federally cbartered savings and loan associations and savinga banks ("federal associations'] are subject to approved by the Board. 12 CFR 546.2. 42.13 (1995). Transactions that result in an increase in the insurable accounts of an institution whose deposits are insured by the Corporation (poured institutions") are also subject to approval by the Board as operating head of the Corporation. 12 CFR 582.22 (1985).

Under the Board's current regulations certain merger ad increases is insumable accounts are deemed approved if so objection has been raised by the Principal Supervisory Agent fie the president of the Foderal Home Loan Bank of which both the institutions are members) within 30 days after filing a completed merger application An application qualifies far aołomatic approval unless any of the following circumstances its present

(1) The resulting association requests the granting of supervisory forbearances:

12) The principal Supervisory Agent recommends the imposition of nonstandard conditions prior to approving the merger,

(3) The appħcation has been substantially protested;

(4) The principal Supervisory Agent raicer objections to the merger,

(5) The resulting association would be one of the largest depository Institutions competing in the relevant geographic area, where before the merger there were 5 or fewer depasitory instituttom, the resatting asociation would bave 25 percent of more the total deposits held by depository institutions to the relevant geographic area, and the share of total deposits

would have increased by 5 percent o: more:

(6) The resulting Association would be one of the 2 largest depository institutions compeling in the relevant geographic area where the merger there were to 11 depository institutions, the resulting association would have 30 percent or more of the total deposit beld by depository institutions in the relevant geographic area, and the share of total deposits would bave increased by 10 peroent or more:

(7) The resulting association would be One of the 2 largest depository institutions competing in the relevaad geographic area wbere before the merger there were 12 c mare depository institutions, the resulting association would have 35 percent or more of the total deposits held by depository institutions in the relevant geographic aree, and the care of total deposits would bare increased by 15 perdent os more:

(8) The Herfindahl-Hirschnan Inder ("HHI") in the relevant geographic area is more than 1000 before the merger, and the increase in the HH caused by this merger would be 50 a mares

(9) In a merger involving potential competition, the Aincipal Supervisory Agent determines that the acquiring association to one of 3 or fewer potential entrants into the relevant geographic area;

(10) Both the acquiring and an soquired association have essets of $1 bilion or more;

(11) The mociation that will be the resulting association (other than an association that is neither insured by the Corporation nor chartered by the Board) in the merger has a composite Community Reinvestment Act rating of less than satisfactory, or is otherwise seriously deficient with respect to the Board's nondiscrimination regulations and the deficiencies bave not been resolved to the satisfaction of the Principal Supervisory Agent:

(12) The resulting association's (other than an association that is neither insured by the Federal Savings and Loan Insurance Corporation por chartered by the Board) net worth would oot at least equal the Board's regulatory net-worth requirements. Where goodwill has been included in the resulting association's assets, the applicant must submit an opinion of a certified public accountant. setisfactory to the Principal Supervisory Agent, tbat its use and value are appropriale under and accounted far. by generally accepted accounting principles For purposes of this provision. in calcudating whether the net

Exhibit 27


Federal Register / Vol 51. No. 35 / Friday. February 21. 1986 / Notices

PO Box 56527. Peachtree Center
Station. Ailanta, Georgia 30343.

th- Federal Home Loan Bank Board Nadine Y. Penn. Acting Secreion (FR Doc B-3815 Filed 2-20-86. 8 45 am BILLING CODE 6770-01

(No. 86-901

Privacy Act of 1974; New System of Records

Daled February 3. 1986 AGENCY: Federal Home Loan Bank Board ACTION: Notice of proposed new system of records

control of an insured institution. controlling persons of companies that have filed appucations to acquire control of an insured institution. organizers of institutions seeking FSLIC insurance of accounts or federal charters, individuals who have been the subject of administrative enforcement actions or other civil actions by any agency with authority to supervise or regulate federally insured financial institutions, those who have been named in criminal referrals by such agencies or by federally insured institutions or have been referred to professional societies, licensing authorities or ethics committees for disciplinary purposes. individuals identified as the subjects of criminal investigations by the Department of Justice or state law enforcement authorities in connection with the operation of federally insured financial institutions, and persons engaging in significant business transactions with FSUC-insured institutions. This system also contains the identity of the custodian of any documents describing the specific event causing entry into the system

SUMMARY: Pursuant to the requirements of the Privacy Act of 1974 (5 U.S.C. 552a), the Federal Home Loao Bank Board ("Board") is notifying the public of its proposal to establish a new system of records in order to collect information on known or suspected criminal violations and enforcement actions taken against persons in connection with the operation of financial institutions, their holding companies or service corporations, as well as changeof-control applications filed by, and other significant business transactions with individuals concernung institutions the accounts of which are insured by the Federal Savings and Loan Insurance Corporation ("Corporation" or "FSLIC""). DATE: Comments must be received by March 24. 1986 ADDRESS: Send comments to Director, Information Services Section Office of the Secretariat. Federal Home Loan Bank Board 1700 C Street. NW.. Washing!on DC 20552. Comments will be available for public inspection at this address FOR FURTHER INFORMATION CONTACT John Downing. Attorney. (202) 377-6434 or Rosemary Stewart Director. (202) 377-6137, Office of Enforcement, at the above address.

Authority: 5 USC. 552a. FHLBB-29


The records identify the individual involved and his relationship to the institution, service corporation or holding company, the event causing entry of information into the system leg.. a change-of-control filing, an enforcement action, a criminal referral naming an individual or a referral of information to a professional group for disciplinary action, or receipt of information concerning a criminal or civil violation involving an insured institution); any regulatory or judicial action taken as a result; and the location and nature of any additional records concerning the specific event,

(b) To provide information to government agencies that supervise or regulate any of the operations of financial institutions concering whether persons connected with these institutions heve been the subject of administrative or civil enforcement actions

(c) To provide information concering a violation or potential violation of a vil or criminal law.rule, order or regulation to the appropriate agency, whether Federal. State, local or foreign charged with the responsibility of investigating or prosecuting such violation or implementing the statute, rule regulation of order

(d) To provide information to third parties during the course of an investigation to the extent necessary to obtain information pertinent to the investigation

(e) To respond to requests from the Congress.

in To provide information to the Office of General Counsel ("OCC"). OES and the Federal Home Loan Banks concerning groups or individuals applying for permission to organize s Federal association and/or makung de novo applications for FSLC insurance and the officers and directors of those proposed institutions, and concerning officer and directors of existing financial institutions applying for FSLIC insurance for use in considering those applications

(8) To provide information to OGC. OES. Enforcement, and the Federal Home Loan Banks concerning persons who bave filed notices of intention to acquire control of insured institutions and controlling persons of companies filing applications to acquire control of insured institutions to determine if any agency action is required.

(b) To provide information (1) to OES, Enforcement and the Federal Home Loan Banks examining and supervisory staffs with regard to persons transacting business with or for savings institutions in connection with the Board's examination and supervision of insured institutions, service corporations and savings and loan bolding companies, and (2) to persons designated by the Board as representatives of the Corporation to conduct investigations of insured institutions, their service corporations, or their holding companies.

(i) To provide information to receivers or conservatom of insured institutions or formerly insured institutions for use in determining the background and reliability of persons with whom they are considering entering into transactions or with wbom the


12 U.S.C. 1464 and 1730


Confidential Individual Information System


Federal Home Loan Bank Board, 1700 G Street, NW., Washington, DC 20552 CATEOORIES OF INDIVIDUALS COVERED BY THE SYSTEM

These records may contain information concerning individuals who have filed notices of intention to acquire


(a) To provide the Board's Office of Examinations and Supervision (*OES") and Office of Enforcement ("Enforcement") and the Federal Home Loan Banks with information concerning the current status of suspected criminal violations in connection with institutions the accounts of which are insured by the FSLIC. their bolding companies, and service corporations. which have been referred the Department of Justice or other law enforcement agences for possible investigation and prosecution.

Federal Register | Vol. 51. No. 35 / Friday, February 21. 1986 / Notices


institution previously has entered into transactions

O) To OGC. Enforcement and persons representing the Board in legal matters. and to other persons baving access to legal papers connected with such matters. OUCIES AND MACTICES FOR STORING RETRIEVING, ACCESSING, RETAINING, ANO DISPOSING OF RECONDS IN THE SYSTEM STORAGE:

Records are maintained on fixed disks.


Records are retrievable by name of individual or by the individual's relenonship to the insured institution involved WFTQUAROS

Access to the system will be available only to Board employees and agents who have been issued the system passwords, which will be revealed only to those persons who have need for information from the system in the performance of the duties. TUMON ANO DISPOSAL

Records will be retained for up to 25 years after the date of entry. Records will then be sent to the Federal Records Center. SYSTEN MANGE MNO ADORES

Database Administrator. Office of Examinations and Supervision. Federal Home Loan Bank Board, 1700 G Street, NW Washington, DC 20552 NOTACATOA OCEDURES:

This system will be exempt from notification and record-access requirements and requirements that an individual be permitted to contest its content under 3 U.S.C. 552a(k)(2) because it contains investigatory material compiled for law enforcement purposes. ACORD ACCESS OCEDURES:

See Notification procedures. COMISO Recono noCEDURES:

See Notification procedures. COID touna CATEGORIES:

This system will be exempt under 5 U.S.C. 5528(2)(2) from the requirement that the sources of records used in the system be published because it contains investigatory material compiled for law enforcement purposes.

Dy the Federal Home Loan Bank Board. Nadide Y. Por Acting Secretary [FR Doc *-2016 Filed 2-20-86 845 am) wa do ano

FEDERAL MARITIME COMMISSION official OMB inventory of currently

approved collections of information. A Agrooment(o) Filed

copy of the SF 63 and supporting The Federal Maritime Commission

statement and the approved collection hereby gives notice of the filing of the

of information instrument(s) will be following agreement(s) pursuant to

placed into OMB's public docket files. section 5 of the Shipping Act of 1984.

The following forms, which are being Interested parties may inspect and

handled under this delegated authority,

have received initial Board approval obtain a copy of each agreement at the Washington, DC Office of the Federal

and are hereby published for comment. Maritime Commission, 1100 L Street

At the end of the comment penod. the NW., Room 10325. Interested parties

proposed information collection, along may submit comments on each

with an analysis of comments and

recommendations received, will be agreement to the Secretary. Federal Maritime Commission, Washington, DC

submitted to the Board for final 20573, within 10 days after the date of

approval under OMB delegated

authority the Federal Register in which this notice appears. The requirements for

DATE: Comments must be received comments are found in $ 572.803 of Tite within fifteen working days of the date 48 of the Code of Federal Regulations. of publication in the Federal Register. Interested persons should consult this ADORESS: Comments, which should refer section before communicating with the to the OMB Docket number (or Agency Commission regarding a pending

for number in the case of a new agreement

information collection that has not yet Agreement No.: 225-010887

been assigned an OMB number), should Title: General Agency Agreement be addressed to Mr. William W. Wiles. between Hanjin Container Lines, Ltd. Secretary. Board of Governors of the and Sea-Land Service, Inc.

Federal Reserve System. 20th and C Parties: Hanjin Container Lines, Ltd. Streets. NW., Washington, DC 20551. or (Hanjin) and Sea-Land Service, Inc. delivered to room B-2223 between 8:45 (Sea-Land)

a.m. and 5:15 p.m. Comments received Synopsis: The proposed agreement may be inspected in room B-1122 would permit Sea-Land to act on bebali between 8:45 a.m. and 5:15 p.m., except of Hanjin as its general agent at the Port as provided in $281.8(a) of the Board's of Elizabeth. New Jersey for the carriage Rules Regarding Availability of of cargo between ports and points in the Information, 12 CFR 261.6(a). Far East and the United States. The

A copy of the comments may also be parties have requested a shortened

submitted to the OMB desk officer for review period.

the Board: Robert Neal, Office of Dated: February 18, 1988.

Information and Regulatory Affairs, By Order of the Federal Maritime

Office of Management and Budget New Commission

Executive Office Building. Room 3208. John Robert Ewer,

Washington, DC 20503. Secretary

FOR FURTHER INFORMATION CONTACT: (FR Doc. 46-3845 Filed 2-20-86, 8:45 am) A copy of the proposed form the request MUND copt 1

for clearance (SF 83), supporting
statement instructions, and other

documents that will be placed into FEDERAL RESERVE SYSTEM

OMB's public docket files once

approved may be requested from the Agency Forms Under OMB Review agency clearance officer, whose name February 14. 1986.

appears below: Federal Reserve Board

Cleanance Officer, Martha Bethea, Background

Division of Research and Statistics, On June 15, 1984, the Office of

Board of Governors of the Federal Management and Budget (OMB)

Reserve System. Washington, DC 20551 delegated to the Board of Governors of

(202-452-3822). the Federal Reserve System (Board) its

Proposal to approve under OMB approval authority under the Paperwork

delegated authority the extension with Reduction Act of 1980, as per 5 CFR

revinions of the following report: 1320.8. "to approve of and assign OMB 1. Report title: Survey of Terms of Bank control numben to collection of

Lending (STBL) information requests and requirements

Agency form number: FR 2028A, 2028Aconducted or sponsored by the Board

S. 2028B under conditions set forth in 5 CFR

OMB Docket mumber: 7700-0061 1320.8." Board-approved collections of Frequency: Quarterly information will be incorporated into the Reportera: Commercial banks

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As you know, the comittee on Banking, Finance and Urban
Affairs has legislative jurisdiction over the Bank Secrecy
Act (the Act).

On March 5, 1985, the Subcommittee on Financial Institutions Supervision, Regulation anċ insurance invited then Assistant Secretary of the Treasury for Enforcement and Operations John M. Walker, Jr., and James D. Harmon, Jr., Executive Director of the President's Commission on Organized Crime, to brief the members of the Subcommittee on the state of compliance with the Act, on the efforts the Departmen: of the Treasury was engaged in to enforce the Act, and on suggestions for ch es in the law to enhance the Government's ability to carry out the Act.

The briesing was very helpful to the members of the Subcommittee. The briefing was foliowed in April by this Subcommittee's extensive investigations of the failure of the Bank of Boston and other Massachusetts banks to comply with the reporting requirements of the Act, as well as the institutional failure of the Office of the Comptroller of the Currency relative to their responsibilities under this law.

The Subcommittee intends to continue its review of the Act, examine suggested legislative changes, further inquire about the state of compliance by financial institutions, and possibly to conduct oversight hearings on the enforcement efforts that your Department and the banking regulators have undertaken since the Subcommittee's initiative last March.

In that regard, the Subcommittee would appreciate a comprehensive written report updating the activities and initiatives the Department anë, specifically, the Office of Enforcement and Operations, have undertaken to see that

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