15300 Federal Register / Vol. 62, No. 61 / Monday, March 31, 1997 / Proposed Rules

4 Under sections 6 and 9(10) of the Act, the Board

is under no obligation to pay unearned accrued

dividends on redemption of Reserve Bank capital

stock from insolvent member banks for which a

receiver has been appointed or from state member

banks on voluntary withdrawal from or involuntary

termination of membership.

(c) Mutual savings banks. The total

subscription of a member bank that is a

mutual savings bank shall equal sixtenths of 1 percent of its total deposit

liabilities as shown on its most recent

report of condition. Whenever any

member bank that is a mutual savings

bank experiences an increase or

decrease in total deposit liabilities as

shown on its most recent report of

condition, it shall file with the

appropriate Reserve Bank an application

for issue or cancellation of Reserve Bank

capital stock in order to adjust its

Reserve Bank capital stock subscription

to equal six-tenths of one percent of its

total deposit liabilities. A mutual

savings bank that is applying for or has

a deposit with the appropriate Reserve

Bank in lieu of Reserve Bank capital

stock shall file for acceptance or

adjustment of its deposit in a like

manner.

(d) Payment for subscriptions. Upon

approval by the Reserve Bank of an

application for capital stock (or for a

deposit in lieu thereof), the applying

bank shall pay the Reserve Bank onehalf of the subscription amount plus

accrued dividends at the rate of one half

of one percent per month. Upon

payment (and in the case of a national

banks in organization or state

nonmember bank converting into a

national bank, upon authorization or

approval by the Comptroller of the

Currency), the Reserve Bank shall issue

the appropriate number of shares by

crediting the bank with the appropriate

number of shares on its books. In the

case of a mutual savings bank not

authorized to purchase Reserve Bank

stock, the Reserve Bank will accept the

deposit or addition to the deposit in

place of issuing shares. The remaining

half of the subscription or additional

subscription (including subscriptions

for deposits or additions to deposits)

shall be subject to call by the Board.

(e) Payment for cancellations. (1)

Upon approval of an application for

cancellation of Reserve Bank capital

stock, the Reserve Bank shall reduce the

bank’s shareholding on the Reserve

Bank’s books by the number of shares

required to be canceled and shall pay

therefor a sum equal to the cash

subscription paid on the canceled stock

plus accrued dividends at the rate of

one half of one percent per month, such

sum not to exceed the book value of the

stock. 4

(2) In the case of any cancellation of

Reserve Bank stock under this Part, the

Reserve Bank may first apply such sum

to any liability of the bank to the

Reserve Bank and pay over the

remainder to the bank (or receiver or

conservator, as appropriate).

§ 209.5 The share register.

(a) Electronic or written record. A

member bank’s holding of Reserve Bank

capital stock shall be represented by one

(or at the option of the Reserve Bank,

more than one) notation on the Reserve

Bank’s books. Such books may be

electronic or in writing. Upon any issue

or cancellation of Reserve Bank capital

stock, the Reserve Bank shall record the

member bank’s new share position in its

books (or eliminate the bank’s share

position from its books, as the case may

be).

(b) Certification. A Reserve Bank may

certify on request as to the number of

shares held by a member bank and

purchased before March 28, 1942, or as

to the purchase and cancellation dates

and prices of shares cancelled, as the

case may be.

By order of the Board of Governors of the

Federal Reserve System, March 20, 1997.

William W. Wiles,

Secretary of the Board.

[FR Doc. 97–7587 Filed 3–28–97; 8:45 am]

BILLING CODE 6210–01–P

12 CFR Part 216

[Regulation P; Docket No. R–0965]

Security Procedures

AGENCY: Board of Governors of the

Federal Reserve System.

ACTION: Proposed rule.

SUMMARY: The Board is proposing to

remove Regulation P, which is no longer

necessary since its provisions have been

incorporated into Regulation H

(Membership of State Banking

Institutions in the Federal Reserve

System), as proposed by the Board

elsewhere in today’s Federal Register.

Regulation P requires each bank to

adopt appropriate security procedures.

DATES: Comments must be received by

May 30, 1997.

ADDRESSES: Comments, which should

refer to Docket No. R–0965, may be

mailed to Mr. William W. Wiles,

Secretary, Board of Governors of the

Federal Reserve System, 20th Street and

Constitution Avenue, N.W.,

Washington, DC 20551. Comments

addressed to Mr. Wiles also may be

delivered to the Board’s mail room

between 8:45 a.m. and 5:15 p.m., and to

the security control room outside of

those hours. Both the mail room and the

security control room are accessible

from the courtyard entrance on 20th

Street between Constitution Avenue and

C Street, N.W. Comments may be

inspected in Room MP–500 between

9:00 a.m. and 5:00 p.m. weekdays,

except as provided in § 261.8 of the

Board’s Rules Regarding Availability of

Information, 12 CFR 261.8.

FOR FURTHER INFORMATION CONTACT: Jean

Anderson, Staff Attorney, Legal Division

(202/452–3707). For the hearing

impaired only, Telecommunications

Device for the Deaf (TDD), Dorothea

Thompson (202/452–3544).

SUPPLEMENTARY INFORMATION:

Section 303 of the Riegle Community

Development and Regulatory

Improvement Act of 1994 (CDRI Act)

Section 303(a) of the CDRI Act (12

U.S.C. 4803(a)) requires the Board, as

well as the other federal banking

agencies, to review its regulations and

written policies in order to streamline

and modify these regulations and

policies to improve efficiency, reduce

unnecessary costs, and eliminate

unwarranted constraints on credit

availability. The Board has reviewed its

Regulation P with this purpose in mind,

and, is proposing to rescind Regulation

P in order to meet the goals of section

303(a).

Regulation P implements the

requirements of the Bank Protection Act

of 1968 (BPA). The BPA requires the

federal financial institution supervisory

agencies to establish minimum

standards for bank security devices and

procedures to discourage bank crime

and to assist in the identification of

persons who commit such crimes. 12

U.S.C. 1882. To implement this statute

a uniform regulation (Regulation P) was

adopted in 1969 by each of the

supervisory agencies—Comptroller of

the Currency, Federal Deposit Insurance

Corporation, Federal Home Loan Bank

Board (now known as the Office of

Thrift Supervision), and the Board. As

originally proposed, Regulation P

included a list of security devices that

banks were required to adopt. On March

1, 1991 (55 FR 13069)(1991

Amendments), the supervisory agencies

amended their rules to incorporate

amendments made to the BPA by the

Financial Institutions Reform Recovery

and Enforcement Act of 1989 (FIRREA)

and to address the fact that many of the

required security devices had been

rendered obsolete by virtue of

technological advances.
Federal Register / Vol. 62, No. 61 / Monday, March 31, 1997 / Proposed Rules 15301

Discussion

The Board’s proposal to rescind

Regulation P and incorporate its

provisions into Regulation H (12 CFR

Part 208—Membership of State Banking

Institutions in the Federal Reserve

System) as proposed by the Board

elsewhere in today’s Federal Register,

would not substantively amend the

terms of Regulation P. The Board’s

proposal to incorporate Regulation P

into Regulation H is designed to

simplify compliance for State member

banks, to the extent possible, by

consolidating the regulatory

requirements applying to State member

banks into one regulation.

Regulatory Flexibility Act Analysis

Pursuant to section 605(b) of the

Regulatory Flexibility Act (Pub. L. 95–

354, 5 U.S.C. 601 et seq.), the Board of

Governors of the Federal Reserve

System certifies that adoption of this

proposal will not have a significant

economic impact on a substantial

number of small entities that would be

subject to the regulation.

This amendment will remove a

regulation and an interpretation that the

Board believes are no longer necessary.

The amendment does not impose more

burdensome requirements on bank

holding companies than are currently

applicable.

Paperwork Reduction Act

In accordance with the Paperwork

Reduction Act of 1995 (44 U.S.C. 3506;

5 CFR 1320 Appendix A.1), the Board

reviewed the rule under the authority

delegated to the Board by the Office of

Management and Budget. No collections

of information pursuant to the

Paperwork Reduction Act are contained

in the final rule.

List of Subjects in 12 CFR Part 216

Federal Reserve System, Reporting

and recordkeeping requirements,

Security measures.

For the reasons set forth in the

preamble and under the authority of 12

U.S.C. 1882, the Board proposes to

amend 12 CFR chapter II, as set forth

below:

PART 216—[REMOVED]

1. Part 216 is removed.

By order of the Board of Governors of the

Federal Reserve System, March 20, 1997.

William W. Wiles,

Secretary of the Board.

[FR Doc. 97–7586 Filed 3–28–97; 8:45 am]

BILLING CODE 6210–01–P