13154 Federal Register / Vol. 62, No. 53 / Wednesday, March 19, 1997 / Notices

in the compliance report submitted to

the Finance Board; such report shall be

in a format defined by the Finance

Board.

3. Provide periodic data, as requested

by the Finance Board, to facilitate its

oversight of FMP compliance.

4. Establish one or more securities

safekeeping agents and notify the

Finance Board accordingly. (Authorized

agents include Federal Reserve Banks,

Federal Home Loan Banks, and other

eligible financial institutions domiciled

in the U.S.)

5. Account for financial transactions

executed under the FMP in accordance

with Generally Accepted Accounting

Principles.

C. The Internal Auditor of Each Bank

Shall Establish Internal Auditing

Programs That Test for Compliance

With the FMP

D. The Federal Housing Finance Board

Shall

1. Monitor each Bank’s compliance

with the FMP.

2. Interpret any questions related to

the FMP.

3. Consider requests for exceptions to

the FMP.

E. This Most Recently Amended Version

of the FMP Shall

1. Become effective on

llllllllll, 1997.

2. Amend and replace the Financial

Management Policy dated July 3, 1996.

Financial transactions and contracts that

were authorized for, and entered into

by, the Banks under these and any

relevant preceding policies, and that

remain outstanding on the effective date

of the FMP, are grandfathered for

purposes of compliance with the

amended policy guidelines.

Footnotes

1. The term ‘‘eligible financial institutions’’

includes:

a. Federal Home Loan Banks;

b. FDIC-insured financial institutions,

including U.S. subsidiaries of foreign

commercial banks, whose most recently

published financial statements exhibit at

least $100 million of Tier I (or tangible)

capital if the institution is a member of the

investing FHLBank or least $250 million of

tangible capital for all other FDIC-insured

institutions, and which have been rated at

least a level III institution as defined in

subsection VI.C. of the FMP.

c. U.S. branch or agency offices of foreign

commercial banks, provided that the most

recently published financial statements of the

foreign commercial bank exhibit at least $250

million of Tier I (or tangible) capital and the

foreign bank can be designated at least a

Level III counterparty as defined under

Section VI.C.2. and has a country risk rating

of not lower than AA from Thomson

Bankwatch.

2. Eligible counterparties for resale

agreements include the Federal Reserve Bank

of New York, primary dealers in government

securities recognized by the Federal Reserve

whose capital exceeds $250 million or whose

obligations under such agreements are

guaranteed by parent firms whose capital

exceeds $250 million, and U.S. Government

Sponsored Enterprises for which the credit of

such institution is pledged for repayment.

The Bank for International Settlements (BIS)

and the central banks of foreign countries

with a Thomson Bankwatch country risk

rating of at least double-A are considered

eligible counterparties, provided the resales

are collateralized solely by FHLBank System

consolidated obligations. Resale agreements

may be consummated using a designated

custodian, provided the custodian is a

domestic eligible financial institution and

documentation is provided which evidences

the Bank’s security interest in the collateral

held by the custodian.

3. Commercial paper, bank note, and thrift

note issuers shall be in the banking, housing,

finance, or securities industries as

determined by an FHLBank. Commercial

paper, bank note, and thrift note issuers (or

guarantors if applicable) must exhibit on

their most recently published audited

financial statements at least $100 million of

tangible capital if the institution is a member

of the investing FHLBank or at least $250

million of tangible capital for all other

institutions. If the commercial paper, bank

note, or thrift note issue receives its A–1/P–

1 rating by virtue of a guarantee or other

credit enhancement, both the minimum

tangible capital requirement and the

maximum allowable unsecured credit

exposure (as determined in subsection VI.C.)

shall apply to the guarantor rather than to the

issuer.

4. For purposes of determining compliance

with the 300 percent of capital limit,

investment levels will be measured as of the

transaction trade date and capital levels will

be based on the Bank’s most recently

available monthly financial statement. A

Bank will not be required to divest securities

solely to bring the level of its holdings into

compliance with the limit. A Bank’s dollar

roll financing activity will not be included in

calculating the Bank’s position relative to the

limit.

5. A ‘‘financial index’’ is defined as an

index that pertains to: (1) Interest rates, (2)

baskets of equities, (3) currencies, or (4)

aggregate measures of inflation, sanctioned

by a national government, including those

derived from aggregate measures of economic

performance and prices. In the event of debt

tied to a basket of equities, the basket should

include a sufficient number of equities to

ensure that the movement of the index is not

dictated by the performance of just one

equity in the basket. To be considered

‘‘eligible,’’ an index must be publicly

available and verifiable independent of

underwriters or selling group members. For

an index that pertains to a foreign country,

that country must be assigned a Country Risk

Rating no lower than AA¥ by Thomson

Bankwatch. In the event a country is not

rated by Thomson Bankwatch, Sovereign

Risk Ratings from Moody’s or Standard &

Poor’s may be used subject to the following

requirements: a country must be assigned a

Sovereign Risk Rating for long-term bonds or

deposits from Moody’s of not lower than Aa3

or a Sovereign Risk Rating for Foreign

Currency from Standard & Poor’s of not lower

than AA¥. The European Currency Unit

(ECU) shall be deemed an eligible index.

6. Eligible non-member counterparties for

hedging transactions include:

a. Eligible financial institutions;

b. Foreign financial institutions rated at

least a Level III institution, as defined in

subsection VI.C. of the FMP, and domiciled

in countries receiving a country risk rating of

at least AA from Thomson Bankwatch;

c. Domestic corporations or partnerships,

foreign corporations, domestic subsidiaries of

foreign corporations, international

organizations, and foreign governments or

their agencies, rated at least single-A by

Moody’s or Standard & Poor’s, or rated Baa

by Moody’s or BBB by Standard & Poor’s

provided transactions with such

counterparties result in no unsecured credit

exposure for the Bank; and

d. U.S. Government Sponsored Agencies.

7. For purposes of the FMP, unsecured

extensions of credit will be measured as

follows:

a. For on-balance sheet transactions, an

amount equal to the sum of the book value

of the item plus net payments due the Bank.

b. For off-balance sheet transactions, an

amount equal to the sum of the net market

value of the agreement, as determined by the

Bank, plus net payments due the Bank.

c. Extensions of credit arising from offbalance sheet transactions with one

counterparty may be netted provided the

Bank and the counterparty have executed a

master agreement that provides for such

netting.

8. The effective maturity of interest rate

exchange agreements may be considered the

term from settlement to the date on which an

FHLBank has the unilateral and

unconditional option to terminate the

agreement at its then current market value.

For Indexed Principal Swaps, the effective

maturity shall be the weighted average

maturity using consensus prepayment speed

estimates for current interest rate levels,

unless an appropriate alternative

methodology is applied.

Dated: March 5, 1997.

By the Board of Directors of the Federal

Housing Finance Board.

Bruce A. Morrison,

Chairperson.

[FR No. 97–6878 Filed 3–18–97; 8:45 am]

BILLING CODE 6725–01–U

FEDERAL MARITIME COMMISSION

Ocean Freight Forwarder License

Applicants

Notice is hereby given that the

following applicants have filed with the

Federal Maritime Commission

applications for licenses as ocean freight

forwarders pursuant to section 19 of the
Federal Register / Vol. 62, No. 53 / Wednesday, March 19, 1997 / Notices 13155

1Copies of the Complaint and the Decision and

Order are available from the Commission’s Public

Reference Branch, H–130, 6th Street & Pennsylvania

Avenue, NW., Washington, DC 20580.

Shipping Act of 1984 (46 U.S.C. app.

1718 and 46 CFR part 510).

Persons knowing of any reason why

any of the following applicants should

not receive a lciense are requested to

contact the Office of Freight Forwarders,

Federal Maritime Commission,

Washington, D.C. 20573.

Paccent Express Line Co., 11099 South

La Cienega Blvd., #207, Los Angeles,

CA 90045, Officers: Stephen C. Liu,

President, Rachel T. Liu, Vice

President

F&F Forwarding Services, Inc., 416

N.W. 74th Avenue, Miami, FL 33166,

Officers: Flavia M. Ortiz, President,

Xiomara Sanchez, Vice President

International Exports and Marketing

Inc., 116 Jane Street, St. Rose, LA

70087, Officers: Yvonne M. Eiffert,

President, George J. Eiffert, Vice

President

RTW Express Co., 2302 East Del Amo

Blvd., Compton, CA 90220, TiethMing Cheng, Sole Proprietor

Dated: March 13, 1997.

Joseph C. Polking,

Secretary.

[FR Doc. 97–6851 Filed 3–18–97; 8:45 am]

BILLING CODE 6730–01–M

FEDERAL RESERVE SYSTEM

Formations of, Acquisitions by, and

Mergers of Bank Holding Companies

The companies listed in this notice

have applied to the Board for approval,

pursuant to the Bank Holding Company

Act of 1956 (12 U.S.C. 1841 et seq.)

(BHC Act), Regulation Y (12 CFR Part

225), and all other applicable statutes

and regulations to become a bank

holding company and/or to acquire the

assets or the ownership of, control of, or

the power to vote shares of a bank or

bank holding company and all of the

banks and nonbanking companies

owned by the bank holding company,

including the companies listed below.

The applications listed below, as well

as other related filings required by the

Board, are available for immediate

inspection at the Federal Reserve Bank

indicated. Once the application has

been accepted for processing, it will also

be available for inspection at the offices

of the Board of Governors. Interested

persons may express their views in

writing on the standards enumerated in

the BHC Act (12 U.S.C. 1842(c)). If the

proposal also involves the acquisition of

a nonbanking company, the review also

includes whether the acquisition of the

nonbanking company complies with the

standards in section 4 of the BHC Act.

Unless otherwise noted, nonbanking

activities will be conducted throughout

the United States.

Unless otherwise noted, comments

regarding each of these applications

must be received at the Reserve Bank

indicated or the offices of the Board of

Governors not later than April 11, 1997.

A. Federal Reserve Bank of Atlanta

(Lois Berthaume, Vice President) 104

Marietta Street, N.W., Atlanta, Georgia

30303-2713:

1. PAB Bankshares, Inc., Valdosta,

Georgia; to acquire 100 percent of the

voting shares of First Federal Savings

Bank of Bainbridge, Bainbridge, Georgia,

which will convert to a state-chartered

bank to be known as First Community

Bank of Southwest Georgia, Bainbridge,

Georgia.

B. Federal Reserve Bank of

Minneapolis (Karen L. Grandstrand,

Vice President) 250 Marquette Avenue,

Minneapolis, Minnesota 55480-2171:

1. Provincial Corp., Minneapolis,

Minnesota; to become a bank holding

company by acquiring 100 percent of

the voting shares of Provincial Bank,

Lakeville, Minnesota, a de novo bank.

C. Federal Reserve Bank of Kansas

City (John E. Yorke, Senior Vice

President) 925 Grand Avenue, Kansas

City, Missouri 64198-0001:

1. Kremlin Bancshares, Inc., Kremlin,

Oklahoma; to become a bank holding

company by acquiring 100 percent of

the voting shares of Bank of Kremlin,

Kremlin, Oklahoma.

Board of Governors of the Federal Reserve

System, March 13, 1997.

Jennifer J. Johnson,

Deputy Secretary of the Board.

[FR Doc. 97–6845 Filed 3-18-97; 8:45 am]

BILLING CODE 6210-01-F

Notice of Proposals to Engage in

Permissible Nonbanking Activities or

to Acquire Companies that are

Engaged in Permissible Nonbanking

Activities

The companies listed in this notice

have given notice under section 4 of the

Bank Holding Company Act (12 U.S.C.

1843) (BHC Act) and Regulation

Y, (12 CFR Part 225) to engage de novo,

or to acquire or control voting securities

or assets of a company that engages

either directly or through a subsidiary or

other company, in a nonbanking activity

that is listed in § 225.25 of Regulation

Y (12 CFR 225.25) or that the Board has

determined by Order to be closely

related to banking and permissible for

bank holding companies. Unless

otherwise noted, these activities will be

conducted throughout the United States.

Each notice is available for inspection

at the Federal Reserve Bank indicated.

Once the notice has been accepted for

processing, it will also be available for

inspection at the offices of the Board of

Governors. Interested persons may

express their views in writing on the

question whether the proposal complies

with the standards of section 4 of the

BHC Act.

Unless otherwise noted, comments

regarding the applications must be

received at the Reserve Bank indicated

or the offices of the Board of Governors

not later than April 2, 1997.

A. Federal Reserve Bank of

Philadelphia (Michael E. Collins, Senior

Vice President) 100 North 6th Street,

Philadelphia, Pennsylvania 19105-1521:

1. USABancShares, Inc.,

Philadelphia, Pennsylvania; to acquire

The Knox Financial Services Group,

Inc., Philadelphia, Pennsylvania, and

thereby engage in brokerage activities,

pursuant to § 225.25(b)(15)(i) of the

Board’s Regulation Y.

In connection with this application,

The Knox Financial Services Group,

Inc., will become USA Capital Corp.

Board of Governors of the Federal Reserve

System, March 13, 1997.

Jennifer J. Johnson,

Deputy Secretary of the Board.

[FR Doc. 97–6846 Filed 3-18-97; 8:45 am]

BILLING CODE 6210-01-F

FEDERAL TRADE COMMISSION

[Dkt. C–3722]

J.C. Penney Company, Inc., et al.;

Prohibited Trade Practices, and

Affirmative Corrective Actions

AGENCY: Federal Trade Commission.

ACTION: Consent order.

SUMMARY: In settlement of alleged

violations of federal law prohibiting

unfair or deceptive acts or practices and

unfair methods of competition, this

consent order requires, among other

things, J.C. Penney and Thrift Drugs, its

wholly-owned subsidiary, to divest by

March 21, 1997, to a Commissionapproved acquirer, a total of 161 drug

stores in North and South Carolina. The

consent order settles allegations that J.C.

Penney’s proposed acquisition of 190

Rite Aid drug stores in these two states

and Eckerd Corporation, violated

antitrust laws by substantially reducing

drug store competition.

DATES: Complaint and Order issued

February 28, 1997.1