[Federal Register Volume 60, Number 103 (Tuesday, May 30, 1995)]
[Notices]
[Pages 28151-28152]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-13108]



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FEDERAL HOUSING FINANCE BOARD

The First National Company, Storm Lake, Iowa; Notice to Engage in 
Certain Nonbanking Activities

    The First National Company, Storm Lake, Iowa (Applicant), has given 
notice pursuant to section 4(c)(8) of the Bank Holding Company Act (12 
U.S.C. 1843(c)(8)) (BHC Act) and section 225.23 of the Board's 
Regulation Y (12 CFR 225.23), to indirectly acquire Buena Vista 
Abstracting, Storm Lake, Iowa, and thereby engage in real estate title 
abstracting. Real estate title abstracting includes the reporting of 
information on the interests or ownership of selected real property. 
Applicant would obtain information from public records and prepare a 
written report reciting the property's ownership history, including any 
liens held against such property. The report would assist lenders and 
their counsel in determining the status of the property to be 
mortgaged. In connection with this activity, Applicant would not 
provide any insurance against title defects, guarantee any title, or 
provide any certification with respect to a title. Applicant seeks 
approval to conduct the proposed activities throughout Buena Vista 
County, Iowa.
    Section 4(c)(8) of the BHC Act provides that a bank holding company 
may, with Board approval, engage in any activity ``which 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.'' In determining 
whether a proposed activity is closely related to banking for purposes 
of the BHC Act, the Board considers, inter alia, the matters set forth 
in National Courier Ass. v. Board of Governors of the Federal Reserve 
System, 516 F.2d 1229 (D.C. Cir. 1975). These considerations are (1) 
Whether banks generally have in fact provided the proposed services, 
(2) whether banks generally provide services that are operationally or 
functionally so similar to the proposed services as to equip them 
particularly well to provide the proposed services, and (3) whether 
banks generally provide services that are so integrally related to the 
proposed services as to require their provision in a specialized form. 
See 516 F.2d at 1237. 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 Fed. Reg. 806 (1984).
    Applicant indicates that the proposed real estate title abstracting 
activities are incidental to the business of lending and consistent 
with the provision of real estate settlement services previously 
approved by the Board. See e.g., Norwest Corporation, 76 Federal 
Reserve Bulletin 1058 (1990). Because Applicant would not provide any 
insurance against title defects or [[Page 28152]] guarantee any title, 
Applicant argues that the proposed activities are not the equivalent of 
title insurance.
    In order to approve the proposal, the Board must determine that the 
proposed activities ``can reasonably be expected to produce benefits to 
the public, such as greater convenience, increased competition, or 
gains in efficiency, that outweigh possible adverse effects, such as 
undue concentration of resources, decreased or unfair competition, 
conflicts of interests, or unsound banking practices.'' 12 U.S.C. 
1843(c)(8).
    Applicant believes that the proposed activities would produce 
public benefits that outweigh any potential adverse effects. These 
public benefits include more accurate and faster preparation of 
abstracts and lower costs. In addition, Applicant indicates that the 
proposed activities would not result in adverse effects such as an 
undue concentration of resources, decreased or unfair competition, 
conflicts of interests, or unsound banking practices.
    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 in order to seek the views of interested persons on 
the 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, DC 20551, not later than June 13, 
1995. Any request for a hearing on this proposal 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. The notice 
may be inspected at the offices of the Board of Governors, the Federal 
Reserve Bank of Chicago.

    Board of Governors of the Federal Reserve System, May 23, 1995.
Jennifer J. Johnson,
Deputy Secretary of the Board.
[FR Doc. 95-13108 Filed 5-26-95; 8:45 am]
BILLING CODE 6210-01-F