Legal Interpretations
Federal Reserve Act - 1997 Letters
November 26, 1997
To Transamerica Corporation stating that staff would not recommend that the Board object on the basis of section 20 of the Glass-Steagall Act (12 USC 377) to the proposed acquisition of Whirlpool Financial National Bank by Transamerica as part of a larger transaction involving the acquisition of all inventory financing, consumer financing, and international factoring business of Whirlpool Financial Corporation.
November 14, 1997
To Mr. Anthony Correro stating that an extension of credit by a bank to an insider under a commercial revolving line of credit that triggers the bank's prior approval requirements must comply with the provisions of Regulation O (12 CFR 215.4(b)(3)).
September 26, 1997
To Mr. James Mataya, of America's Community Bankers, regarding reporting and disclosure requirements, pursuant to Regulation O (12 CFR 215.22 and 215.23), for extensions of credit made by a subsidiary of a correspondent bank. 12 USC 375a.
August 21, 1997
To Ms. Caren Seaman regarding transfers from a savings account of one depositor to make payments on a loan of a different depositor held at the same depository institution. Staff concluded that such an arrangement is not exempt from the six-transfer limit under Regulation D, 12 CFR 204.2(d)(2).
August 20, 1997
To a corporation proposing to open savings accounts in its name as agent for its depositors where each account would not exceed $100,000 and transfers would be made through ACH operators at a separate depository institution where the corporation's transaction accounts are located. Because the transfers would not be made from the savings account to another account of the depositor at the same institution, they would be subject to the six-transfer limit under Regulation D, 12 CFR 204.2(d)(2).
August 19, 1997
To Mr. John Hutchinson regarding ACH debits that reverse previous deposits of credit card sales drafts, in order to correct errors. Staff concluded that these debits are analogous to returned checks and should not count against the six-transfer limit on savings accounts in Regulation D, 12 CFR 204.2(d)(2).
June 17, 1997
To Mr. Michael Wiseman, regarding the proposed reorganization of the New York Clearing House into a limited liability holding company, stating that the anticipated investment made by each Clearing House member would be permissible for the state member banks under the Federal Reserve Act, and for the foreign banks under BHCA 4(c)(6).
May 14, 1997
To Ms. Loren Hansen regarding the prohibition of payment of interest on demand deposits as applied to a proposed arrangement among a bank, a title company and a service provider, where the bank was to provide escrow accounting services, general ledger accounting services, and reconciliation services. Based on the facts of the proposed arrangement, staff was unable to conclude that it would not result in a violation of Regulation Q, 12 CFR 217.
April 22, 1997
To First State Bank of St. Charles stating that every assistant vice president of a bank is not covered by the term "executive officer," as used in Regulation O (12 CFR 215), because his or her functions do not include participation in major policymaking functions.
April 3, 1997
To the CFTC concerning the status of overnight deposits in foreign branches of domestic banks for purposes of the statutory prohibition against payment of interest on demand deposits (12 USC 371a) and Regulation Q (12 CFR 217).
March 20, 1997
Discusses the distinction between transaction accounts and savings accounts for reserve requirements under section 19 of the Federal Reserve Act (12 USC 461(b)), and the limitations on transfers and withdrawals from savings accounts under Regulation D. (12 CFR 204.2)
March 6, 1997
To the Bank of Bentonville regarding calculation of the quantitative limit for the exemption from section 23A of the Federal Reserve Act (12 USC 371c) permitting the Bank to increase that quantitative limit for loans to unaffiliated parties secured by shares of Wal-Mart Stores, an affiliate of the Bank.
March 5, 1997
To the Bank of Bentonville regarding its ability, under section 23A of the Federal Reserve Act (12 USC 371c), to purchase from unaffiliated parties accounts receivable that include credit extended to Wal-Mart Stores, an affiliate of the Bank.
March 5, 1997
To NBD Bank regarding the ability of the bank subsidiaries of First Chicago NBD Corporation to purchase securities underwritten by a syndicate in which an affiliate of the bank is a member, pursuant to section 23B of the Federal Reserve Act (12 USC 371c-1).
January 21, 1997
To Mr. Chip Trimmier regarding limitations on the number of transfers and withdrawals from savings accounts under Regulation D. (12 CFR 204.2)