[Federal Register Volume 62, Number 220 (Friday, November 14, 1997)]
[Notices]
[Page 61127]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-29910]



[[Page 61127]]

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FEDERAL RESERVE SYSTEM


Notice of Proposals To Engage in Nonbanking Activities or to 
Acquire Companies That are Engaged in Nonbanking Activities

    Popular, Inc., Hato Rey, Puerto Rico (Notificant), has provided 
notice pursuant to section 4(c)(8) of the Bank Holding Company Act, 12 
U.S.C. Sec.  1843(c)(8)) (BHC Act), and section 225.24 of the Board's 
Regulation Y (12 CFR 225.24), to acquire through its wholly owned 
subsidiary, Popular Cash Express, Inc., Orlando, Florida, certain 
assets of Florida Exchange, Ltd., Oak Park, Illinois, and Mirando-J., 
Inc., Oak Park, Illinois, and thereby engage in the approved and new 
nonbanking activities. The approved activities are: (1) extending 
credit, servicing loans, and related activities, pursuant to Sec.  12 
C.F.R. 225.28(b)(1) of the Board's Regulation Y; (2) leasing personal 
and real property, pursuant to Sec.  225.28(b)(3) of the Board's 
Regulation Y; (3) providing financial and investment advisory services, 
pursuant to Sec.  225.28(b)(6) of the Board's Regulation Y; (4) 
providing transactional services, pursuant to Sec.  225.28(b)(7) of the 
Board's Regulation Y; (5) providing investing and trading services, 
pursuant to Sec.  12 C.F.R. 225.28(b)(8)(ii) of the Board's Regulation 
Y; (6) acting as principal, agent or broker for insurance related to 
extensions of credit, pursuant to Sec.  225.28(b)(11)(i) of the Board's 
Regulation Y; (7) acting as agent or broker for insurance directly 
related to an extension of credit as would be sold by a finance 
company, pursuant to Sec.  225.28(b)(ii) of the Board's Regulation Y; 
(8) issuing and selling money orders, savings bonds, and traveler's 
checks, pursuant to Sec.  225.28(b)(13) of the Board's Regulation Y. 
Notificant also proposes to engage in (1) check cashing services; (2) 
accepting bill payments; (3) accepting or disbursing change in exchange 
for currency in a different denomination; and (4) transmitting or 
wiring money on a worldwide basis. See Midland Bank, PLC, 76 Fed. Res. 
Bull. 860 (1990); and Norwest Corporation, 81 Fed. Res. Bull. 974 
(1995) and 81 Fed. Res. Bull. 1130 (1995).
    In addition, the Notificant proposes to engage, either alone or as 
an incident to other activities, in the following new nonbanking 
activities that the Board previously has not determined are closely 
related to banking under section 4(c)(8) of the BHC Act: (1) selling 
bus passes, transit tokens, prepaid phone cards, event and attraction 
tickets, prepaid cellular phone time and other similar forms of 
alternate media of value; (2) selling postage stamps and postage-paid 
envelopes; (3) providing mailboxes and related services; (4) providing 
notary public services; (5) providing vehicle registration services and 
selling, distributing and renewing license plates and license tags for 
motor vehicles; (6) providing photocopying and facsimile transmission 
services; and (7) entering into arrangements with automobile clubs to 
promote membership in and services of such clubs. These activities will 
be conducted worldwide.
    Section 4(c)(8) of the Bank Holding Company Act provides that a 
bank holding company may, with Board approval, engage in any activity 
that the Board, after due notice and opportunity for hearing, has 
determined (by order or regulation) to be so closely related to banking 
or managing or controlling banks as to be a proper incident thereto. A 
particular activity may be found to meet the ``closely related to 
banking'' test if it is demonstrated that banks generally have provided 
the proposed activity, that banks generally provide services that are 
operationally or functionally similar to the proposed activity so as to 
equip them particularly well to provide the proposed activity, or that 
banks generally provide services that are so integrally related to the 
proposed activity as to require their provision in a specialized form. 
National Courier Ass'n v. Board of Governors, 516 F.2d 1229, 1237 (D.C. 
Cir. 1975). In addition, the Board may consider any other basis that 
may demonstrate that the activity has a reasonable or close 
relationship to banking or managing or controlling banks. Board 
Statement Regarding Regulation Y, 49 FR 794, 806 (1984).
    In publishing the proposal for comment, the Board does not take a 
position on issues raised by the proposal. Notice of the proposal is 
published solely to seek the views of interested persons on this issues 
presented by the notice and does not represent a determination by the 
Board that the proposal meets, or is likely to meet, the standards of 
the BHC Act. Any comments or requests for hearing should be submitted 
in writing and received by William W. Wiles, Secretary, Board of 
Governors of the Federal Reserve System, Washington, D.C. 20551, not 
later than December 5, 1997. Any request for a hearing on this notice 
must, as required by section 262.3(e) of the Board's Rules of Procedure 
(12 CFR 262.3(e)), be accompanied by a statement of the reasons why a 
written presentation would not suffice in lieu of a hearing, 
identifying specifically any questions of fact that are in dispute, 
summarizing the evidence that would be presented at a hearing, and 
indicating how the party commenting would be aggrieved by approval of 
the proposal.
    This notice may be inspected at the office of the Board of 
Governors or the Federal Reserve Bank of New York.

    Board of Governors of the Federal Reserve System, November 7, 
1997.
Jennifer J. Johnson,
Deputy Secretary of the Board.
[FR Doc. 97-29910 Filed 11-13-97; 8:45 am]
BILLING CODE 6210-01-F