h2_19750816.pdf

ANNOUNCEMENT BY

BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

Applications and Reports Received or Acted on

and All Other Actions of the Board

H.2 1975 No. 33 During the Week Ending August 16, 1975

District

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

Received SBT Bank, Chicago, Illinois

* * * * *

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

Approved *The Cleveland Trust Company, Cleveland, Ohio. Branch

to be established at 1975 Noble Road, East Cleveland, Cuyahogo County.

Withdrawal United Counties Trust Company, Elizabeth, New Jersey,

Branch to be established on the North Side of Washington Road near its junction with Ernston Road, Sayreville, Middlesex County.

* * * * *

*Application processed by the Reserve Bank 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 1975 No. 33 - 2 -

To establish an Overseas Branch of a Member Bank Pursuant to Section 25 of the Federal Reserve Act

Received 12 Bank of America National Trust and Savings Association,

San Francisco, California: a branch in Denmark, to be located in Copenhagen.

Approved 12 Bank of America National Trust and Savings Association,

San Francisco, California: a branch in El Salvador, to be located in San Salvador.

Thirty Day Notice of Intention to Establish an Additional Branch in a Foreign Country

Approved 2 The Chase Manhattan Bank, National Association: an

additional branch in Puerto Rico, to be located in the City of Mayaguez.

* * * * *

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 Holding Company Act of 1956, as amended

2 First National City Overseas Investment Corporation, New York, New York: an additional investment to maintain its 20.0 per cent interest in Hellenic Investment Company, Athens, Greece.

2 State of New York Banking Department, New York, New York: views of the Board re an agency in New York City by Banco Union C.A., Caracas, Venezuela.

2 State of New York Banking Department, New York, New York; views of the Board re an agency in New York City by Banco Industrial de Venezuela, Caracas, Venezuela.


H.2 1975 No. 33 - 3 -

International Investments and Other Actions Approved Cont' d

2 State of New York Banking Department, New York, New York: views of the Board re establishment of an investment company, Baer American Banking Corporation, to be owned directly or indirectly by Bank Julius Baer & Co. A.G., Zurich, Switzerland.

7 Manufacturers-Detroit International Corporation, Detroit, Michigan: to acquire 10 per cent of the Class A common, 80 per cent of the Class B non-voting, anc 50 per cent of the preferred shares of GDI Financial Corporation, Toronto, Canada.

7 International Bank of Detroit, Detroit, Michigan: to increase its interest in NBD Financial Limited, Hong Kong, from its present 54.5 per cent.

/V * * * *

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

Received 7 SBT Bank, Chicago, Illinois for prior written consent

to merge with Sears Bank and Trust Company, Chicago, Illinois.

•>V >'c Vx "k Vr


H. 2 1975 No. 33

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

Received 7 OC Capital Corporation, South Bend, Indiana, for ap-

proval to acquire 97.546 per cent of the voting shares of Bremen State Bank, Bremen, Indiana.

Midland Bancorp, Inc., Chicago, Illinois, for approval to acquire 100 per cent of the voting shares (less directors' qualifying shares) of the successor by merger to Sears Bank and Trust Company, Chicago, Illinois.

STOCKTON BANCORP, INC., Stockton, Illinois, for ap-proval to acquire 80 per cent or more of the voting shares of The First National Bank of Stockton, Stockton, Illinois.

Benson Bancshares, Inc., Benson, Minnesota, for approval to acquire 87.98 per cent of the voting shares of Swift County Bank, Benson, Minnesota.

First Buffalo Holding Company, Buffalo, North Dakota, for approval to acquire 90 per cent of the voting shares of First State Bank of Buffalo, Buffalo, North Dakota.

Approved First Glenview Bancorp, Inc., Clenview, Illinois, for

approval to acquire 83.13 per cent of the voting shares of The First Trust and Savings Bank, Clenview, Illinois.

Community State Agency, Inc., Bloomington, Minnesota, for approval to acquire 80 per cent or more of the voting shares of Community State Bank of Bloomington, Blooming-ton, Minnesota.

9 First Manistique Corporation, Manistique, Michigan, for approval to acquire 80 per cent or more of the voting shares of First National Bank at Manistique, Manistique, Michigan, and 100 per cent of the voting shares of Manistique Lakes Bank, Curtis, Michigan, a proposed new bank.

10 Alfalfa County Bancshares, Inc., Cherokee. Oklahoma, for approval to acquire 100 per cent of the voting shares (less directorsf qualifying shares) of The Alfalfa County National Bank of Cherokee, Cherokee, Oklahoma.


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

Received Mercantile Bancorporation Inc., St. Louis, Missouri,

for approval to acquire at least 90 per cent (plus directors* qualifying shares) of the voting shares of Shelbina Bank, Shelbina, Missouri.

U. S. Bancshares, Inc., Brownwood, Texas, for approval to acquire 85 per cent of the voting shares of First State Bank of Crandall, Crandall, Texas, a proposed new bank.

Washington Bancshares, Inc., Spokane, Washington, for approval to acquire 91,493 shares of the voting shares of Bank of the West, Bellevue, Washington.

Approved Southern Bancorporation of Alabama, Birmingham, Alabama,

for approval to acquire 90 per cent or more of the voting shares of First Bank of Russell County, Phenix City, Alabama.

Southern Bancorporation of Alabama, Birmingham, Alabama, for approval to acquire 90 per cent or more of the voting shares of First State Bank, Smiths, Alabama.

First Michigan Bank Corporation, Zeeland, Michigan, for approval to acquire 100 per cent of the voting shares (less directors1 qualifying shares) of First Michigan Bank of Walker, N.A., Walker, Michigan, a proposed new bank.

First Union, Incorporated, St. Louis, Missouri, for ap-proval to acquire 90 per cent or more of the voting shares of First National Bank of St. Peters, St. Peters, Missouri.

Texas Commerce Bancshares, Inc., Houston, Texas, for ap-proval to acquire 100 per cent of the voting shares (less directors1 qualifying shares) of Commerce National Bank of Conroe, Conroe, Texas, a proposed new bank.


H. 2 1975 No. 33

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

Received 2 **Citicorp, New York, New York, notification of intent to 8-13-75

relocate de novo activities (making of consumer in-stallment personal loans, purchasing consumer install-ment sales finance contracts; and acting as broker for the sale of consumer credit related life/accident and health insurance and consumer credit related property and casualty insurance; if this proposal is effected, Nationwide Financial Corporation of California will offer to sell insurance as follows: (a) group credit life/accident and health insurance to cover the out-standing balances of loans to borrowers in the event of their death, or, to make the contractual monthly pay-ments on the loans in the event of the borrowers1 dis-ability; (b) individual physical damage insurance on personal property subject to security agreements (in-cluding liability only when such insurance is sold as part of an insurance package on such property); further, in regard to the sale of credit related insurance, Nationwide Financial Corporation of California will not offer insurance counseling) from 3113 MacDonaId, Richmond, California, to 1806 Wilson Pass Road, Concord, California, through its subsidiary, Nationwide Financial Corporation of California.

7 **First Wisconsin Corporation, Milwaukee, Wisconsin, noti- 8-15-75 fication of intent to engage in de novo activities (serving as the advisory company for a real estate in-vestment trust, in which capacity it will, among other activities, obtain or provide for the trust such ser-vices as may be required to supervise, service or manage the existing Investments of the trust; represent the trust in transactions with others; originate and recommend to the trust investments in the form of con-struction mortgage loans, permanent mortgage loans, equity interest in real estate, and other investments in or related to real property; and advise and consult the trustees of the trust) in Boca Raton, Florida, through a subsidiary, First Wisconsin Mortgage Company, Milwaukee, Wisconsin.

7 **The Main Corporation, Chicago, Illinois, notification of 8-14-75 intent to engage in de novo activities (acquiring for its own account, Medicaid and Medicare accounts receiv-ables from doctors and other providers of medical care

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


H. 2 1975 No. 33

Received Continued at 6000 North Keating, Chicago, Illinois, which were previously conducted at 4415 West Harrison Street, Hillside, Illinois, and acquiring for its own account, accounts receivable from doctors and other providers of medical care and health services, providing billing and accounts receivable managements services for doctors and other providers of medical care and health services) at 6000 North Keating, Chicago, Illinois, through its subsidiary, Health Management Services Corporation,

9 **First Bank System, Inc., Minneapolis, Minnesota, notifi- 8-15-75 cation of intent to engage in de_ novo activities (leasing personal property and acting as an agent, broker, or adviser in the leasing of real or personal property) at Suite 900, 730 Second Avenue South, Minneapolis, Minn-esota, through its wholly-owned subsidiary, FBS Financial, Inc.

10 **Mountain Banks, Ltd., Colorado Springs, Colorado, notifi- 8-11-75 cation of intent to engage in che novo activities (accept-ing passbook savings and certificates of deposits of varying maturities up to 4 years; making direct personal loans of various types secured by new and used motor vehicles, household goods and appliances, miscellaneous chattels and real property; and purchasing time sales contracts on chattels from bona fide dealers; acting as agent for the sale of credit life and credit accident and health insurance in connection with the extension of credit) at 618 Main, Alamosa, Colorado, through a subsidiary, Alamosa Mountain Industrial Bank.

11 **Bancshares, Inc., Houston, Texas, notification of intent 8-14-75 to engage in de novo activities (acting as insurance agent or broker for fire and casualty insurance in-cluding, but not necessarily limited to, home owners' automobile, inland marine, workmen1s compensation and mortgage cancellation insurance; such insurance shall be for the holding company and its subsidiaries directly, as well as insurance that is directly related to an ex-tension of credit or a provision of other financial services by a bank or bank related firm; in addition, as a matter of convenience to the purchaser, a certain amount of fire and casualty insurance not related to an extension of credit or financial services by a bank or bank related firm will be sold) at 1800 St. James Place, Suite 308, Houston, Texas, through an affiliated partnership known as Lancelot Insurance Agency.

**4(c)(8) and 4(c)(12) notifications processed by Reserve Bank 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 1975 No. 33 - 8 -

Received Continued 12 **UB Financial Corp., Phoenix, Arizona, notification of 8- 7-75

intent to relocate de novo activities (the making, origination, acquiring, purchasing, arranging for, holding, warehousing and selling, for its own account and for the account of others, loans of all types, and other extensions of credit, secured by mortgages or deeds of trust on real property, such as would be made by a mortgage company; servicing such loans and other extensions of credit for any person; and acting as an insurance agent or broker selling general casualty, credit life, credit disability, mortgage redemption and mortgage cancellation insurance directly related to loans and extensions of credit made by said H. S. Pickrell Company) from 4325 Lead Avenue S.E., Albuquerque, New Mexico, to 6400 Uptown Boulevard, N.E., Suite 369 W, Albuquerque, New Mexico, through its subsidiary, H. S. Pickrell Company.

Approved 10 First Community Bancorporation, Joplin, Missouri, for

permission to acquire 100 per cent of the voting shares of The Armstrong Insurance Agency, Inc., Pineville, Missouri.

Permitted 1 **T.N.B. Financial Corp., Springfield, Massachusetts, noti- 8-14-75

fication of intent to engage in de novo activities (leasing of real property on a non-operating, full payout basis and acting as an agent, broker, or adviser in leasing such property) at 1391 Main Street, Spring-field, Massachusetts, through a subsidiary, T.N.B. Leasing Corp.

3 **Fidelcor, Inc., Rosemont, Pennsylvania, notification of 8-15-75 intent to engage in de novo activities (making insurance available to customers of Local Mortgage Corporation and Local Mortgage Company of Georgia as a matter of con-venience to such customers that will protect the lives and the insurability of lives of the dependents of borrowers; in addition, the activities of Local Mortgage Company of Georgia include the following: making or acquiring, for its own account or for the account of others, loans and extensions of credit such as would be made by a mortgage or finance company, such as first and junior mortgage loans, including Home Modernization Contracts; the servicing of loans or extensions of credit of this type for



H.2 1975 No. 33 - 9 -

Permitted Continued itself or others; and the selling of credit life (in-cluding joint life) and credit accident and health insurance and insurance on collateral securing its loans, but in no event to include liability insurance unless in conjuntion with an insurance package (as a matter of general practice) protecting such collateral; Local Mortgage Corporation and Local Mortgage Company of Georgia may also sell mortgage life and mortgage disabil-ity, term life and dismemberment and accidental death insurance; all insurance will be sold to debtors under these loans or extensions of credit) at 1800 Peachtree Road, N.W., Atlanta, Georgia, through its subsidiaries, Local Mortgage Corporation and Local Mortgage Company of Georgia.

5 **First Maryland Bancorp, Baltimore, Maryland, notifica- 8-14-75 tion of intent to engage in de novo activities (leasing personal property and equipment on a full pay-out basis and acting as agent, broker, or adviser in the leasing thereof; leasing real property on a full pay-out basis and acting as agent, broker, or adviser in the leasing thereof; making or acquiring, for its own account or for the account of others, loans and other extensions of credit with respect to personal property, equipment and real property; and servicing loans, leases and other extensions of credit) at 25 South Charles Street, Baltimore, Maryland, through a subsidiary, First Maryland Leascorp.

5 **First Maryland Bancorp, Baltimore, Maryland, notifica- 8-10-75 tion of intent to engage in de novo activities (acting as insurance agent or broker in the sale of credit acci-dent and health insurance and credit life insurance re-lated to loans and other extensions of credit by State Loan Corp., an affiliate of First Maryland Bancorp, or other insurance to protect the collateral in which State Loan Corp. has a security interest and of liability, homeowners' and other insurance which is sold to indi-vidual borrowers of State Loan Corp. in conjunction with part of an insurance package with insurance protecting collateral in which State Loan Corp. has a security interest as a result of an extension of credit) at 20 Mall Shopping Center, Guilderland, New York, through a subsidiary, Markwood Agency, Incorporated (a wholly-owned subsidiary of Schenectady Discount Corporation).



H.2 1975 No. 33

5

5

1

Permitted Continued **First Virginia Bankshares Corporation, Falls Church, 8-12-75

Virginia, notification of intent to relocate de novo activities (operating as a finance company including the extension of small personal loans; financing retail installment sales; granting real estate loans, primarily second mortgage loans; and acting as agent or broker in the sale of property insurance, credit life insurance and credit accident and health insurance only to its loan customers) from 216 East Tennessee Street, Florence, Alabama, to 1835 Darby Drive, Grant Place, Florence, Alabama, through its subsidiary, Affiliated Financial Corporation of Alabama, Inc.

**First Virginia Bankshares Corporation, Falls Church, 8-14-75 Virginia, notification of intent to relocate de novo activities (operating as a finance company including the extension of small personal loans, financing retail installment sales, granting real estate loans, primarily second mortgage loans; and acting as agent or broker in the sale of property insurance, credit life insurance and credit accident and health insurance only to its loan customers) from 525 23rd Avenue, Tuscaloosa, Alabama, to 620 Fourteenth Street, Suite A, Tuscaloosa, Alabama, through its subsidiary, Affiliated Financial Corporation of Alabama, Inc.

Reactivated **CBT Corporation, Hartford, Connecticut, notification of 8-12-75

intent to engage in de novo activities (commercial financing including the making of loans secured by accounts receivable, inventory, machinery and equipment and real estate and full payout leasing of equipment) at Suite 230, 200 Wendell Court, Atlanta, Georgia, through CBT Leasing Corporation, a wholly-owned subsidiary of General Discount Corporation, a wholly-owned subsidiary of CBT Corporation.

^Manufacturers Hanover Corporation, New York, New York, 7-11-75 notification of intent to engage in de novo activities (making or acquiring, for its 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/acci-dent and health insurance and consumer credit related



H.2 1975 No. 33 - 11

Reactivated Continued property (including non-filing insurance) and casualty insurance which is related to extensions of credit made or acquired by Ritter Finance Company and/or its direct and indirect subsidiaries) at 223 Mason Avenue, Cape Charles, Virginia, through an indirect subsidiary, Ritter Finance Company Inc. of Onancock.

3 **Fidelcor, Inc., Rosemont, Pennsylvania, notification of 8-15-75 intent to engage in de novo activities (making insurance available to customers of Local Mortgage Corporation and Local Mortgage Company of Georgia as a matter of conve-nience to such customers that will protect the lives and the insurability of lives of the dependents of borrowers; in addition, the activities of Local Mortgage Corporation and Local Mortgage Company of Georgia include the follow-ing: the making or acquiring, for its own account or for the account of others, loans and extensions of credit such as would be made by a mortgage or finance company, such as first and junior mortgage loans, includ-ing Home Modernization Contracts; the servicing of loans or extensions of credit of this type for itself or others; and the selling of credit life (including joint life) and credit accident and health insurance and insurance on collateral securing its loans, but in no event to include liability insurance unless in conjunction with an insurance package (as a matter of general practice) protecting such collateral; Local Mortgage Corporation and Local Mortgage Company of Georgia may also sell mortgage life and mortgage disability term life and dismemberment and accidental death insurance; all in-surance will be sold to debtors under these loans or extensions of credit) at 1800 Peachtree Road, N.W., Atlanta, Georgia, through its subsidiaries, Local Mortgage Corporation and Local Mortgage Company of Georgia.

7 **FBT Bancorp, Inc., South Bend, Indiana, notification of 8-14-75 intent to engage in de novo activities (making, acquir-ing, or servicing loans or other extensions of credit for personal, family, household, or commercial purposes; the sale of credit life/accident and health insurance in connection with the aforementioned extensions of credit) in Highland, Indiana, through its subsidiary, FBT Capital Corporation, South Bend, Indiana.

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


H. 2 1975 No. 33 " 1 2 -

To Expand a Bank Holding Company Pursuant to Section 4(c)(12) of the Bank Holding Company Act of 1956

Permitted 9 **Archer-Daniels-Midland Company, Decatur, Illinois, noti- 8- 9-75

fication of intent to acquire all of the outstanding shares of stock of Tabor & Co., Decatur, Illinois, which owns and operates eight country elevators in Illinois, four river barge loading facilities in Iowa and Illinois and a dry corn mill in Kansas City, Missouri.

A * * * *

Other Actions of the Board Report on bill H.R. 8576, a bill to amend three sections

of the Securities Exchange Act of 1934, response to re-quest for Board's views sent to Hon. Harley 0. Staggers, Chairman, Interstate and Foreign Commerce Committee.

Letter to all FRBanks and Branches regarding status of loans from State housing authorities as deposits under Regulations D and Q.

Letter to the chief executive officers of State member banks drawing their attention to the provision of the Emergency Housing Act of 1975; the Board's letter urged that they "review the requirements and objectives of the Act, together with the long-term prospects for repayment by delinquent borrowers before instituting foreclosure action".

Withdrawal of notice of proposed rulemaking, the proposed amendment to Regulation T would have shortened the time allowed for payment against delivery transactions in securities from 35 days to 15 days.

Withdrawal of notices of proposed rulemaking under Regulations G and U, after consideration of the comments received, which reflected difficulty in implementing certain pro-visions of the proposals, the Board has determined that the rulemaking action should be withdrawn.

Offsite electronic facilities, letter concerning offsite automated facilities as branches.



H.2 1975 No. 33 13

Continued Letter to Chairman Rosenthal, Subcommittee on Commerce,

Consumer and Monetary Affairs, responding to request for information on the Federal Reserve System's involvement in certain areas of the nation's payments mechanism.

Formation of an investment company, BAER AMERICAN BANKING CORPORATION, to be wholly owned by Baer Holding A.G. , Zurich, Switzerland, letter to New York State Banking Dept. in response to request for Board's views on the proposed formation of Baer, stating that in legislative proposals submitted to Congress the status of New York State investment companies owned by foreign banks was considered and it was determined not to include them in the coverage of the bill "Foreign Bank Act of 1975".

Uniform Margin Requirements for Writing Options, the Board issued for comment a revised proposal to amend Regulation T, designed to prevent the excessive use of credit in connection with the issuance, endorsement or guarantee of puts and calls, which are options to sell or buy stock; comment to be received not later than September 30, 1975.

American National Bank of Edmonds, Edmonds, Washington, proposed acquisition by Peoples National Bank of Wash-ington, Seattle, Washington, report to the Comptroller of the Currency on competitive factors.

Bank of Virginia-Potomac, Fairfax County, Virginia, pro-posed merger with Bank of Fredericksburg, Fredericksburg, Virginia, report to the Federal Deposit Insurance Corpo-ration on competitive factors.

Independent National Bank, Willingboro, New Jersey, pro-posed merger with The First National Bank of Stone Harbor, Stone Harbor, New Jersey, report to the Comptroller of the Currency on competitive factors.

New Braurifels Commerce Bank National Association, New Braunfels, Texas, proposed merger with The First National Bank of New Braunfels, New Braunfels, Texas, report to the Comptroller of the Currency on competitive factors.

Twin City State Bank, Texarkana, Texas, proposed merger with Twin City Bank, Texarkana, Texas, report to the Federal Deposit Insurance Corporation on competitive factors.


#

H.2 1975 No. 33 14 -

Continued ***Barnett Banks of Florida, Inc., Jacksonville, Florida,

extension of time until October 5, 1975, within which to acquire and open for business, the Barnett Bank of Port Everglades, Fort Lauderdale, Florida.

***First Banc Group of Ohio, Inc., Columbus, Ohio, additional extension of time until November 8, 1975, to commence business of its approved de novo subsidiary, First Group Mortgage Corp., Columbus, Ohio.

***First National Bankshares of Florida, Inc., Pompano Beach, Florida, extension of time to November 27, 1975, within which to acquire First National Bank of New Smyrna Beach, New Smyrna Beach, Florida.

***Guaranty Bancorporation, Tulsa, Oklahoma, extension of time to September 16, 1975, within which to consummate acquisition of 100 per cent (less directors1 qualifying shares) of the voting shares of Guaranty National Bank, Tulsa, Oklahoma.

***Southeast Banking Corporation, Miami, Florida, extension of time until November 13, 1975, within which Southeast Credit Insurance Agency, Inc., may open for business.

***Chesterton State Bank, Chesterton, Indiana, to make an investment in bank premises.

***First Virginia Bank of Roanoke Valley, Roanoke, Virginia, extension of time in which to merge with The Farmers National Bank of Salem, Salem, Virginia.

***Fidelity Bank, Rosemont, Pennsylvania, extension of time of six months from September 6, 1975, within which to establish a branch office at 705 Hamilton Mall, Allen-town, Pennsylvania.

***Long Island Trust Company, Garden City, New York, extension of time within which to establish a branch at the corner of Veterans Highway and Spartan Lane, Hauppauge, New York.

^^Manufacturers Hanover Trust Company, New York, New York, extension of time within which to establish a branch on the corner of Steward Avenue and South Street, Town of Hempstead, New York.

***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 1975 No. 33 - 15 -

Continued ***Bamerical International Financial Corporation, San Francisco,

California, extension of time to February 20, 1976, within which to acquire 100 per cent of the shares of a de novo finance company in Paraguay.

***Processed on behalf of the Board of Governors under delegated authority.


h2_19750816.pdf

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