Federal Register / Vol. 60, No. 249 / Thursday, December 28, 1995 / Proposed Rules 67097

the states or metropolitan areas in

which the bank maintains its main

office or branches; or

(3) The OCC determines, in published

guidance, that the investment is

inappropriate for self-certification.

§ 24.7 Examination, records, and remedial

action.

(a) Examination. National bank

investments under this part are subject

to the examination provisions of 12

U.S.C. 481.

(b) Records. Each national bank shall

maintain in its files information

adequate to demonstrate that it is in

compliance with the requirements of

this part.

(c) Remedial action. If the OCC finds

that an investment under this part is in

violation of law or regulation, is

inconsistent with the safe and sound

operation of the bank, or poses a

significant risk to a federal deposit

insurance fund, the national bank shall

take appropriate remedial action as

determined by the OCC.

Dated: December 14, 1995.

Eugene A. Ludwig,

Comptroller of the Currency.

[FR Doc. 95–31021 Filed 12–27–95; 8:45 am]

BILLING CODE 4810–33–P

FEDERAL RESERVE SYSTEM

12 CFR Part 202

[Regulation B; Docket No. R–0910]

Equal Credit Opportunity

AGENCY: Board of Governors of the

Federal Reserve System.

ACTION: Proposed rule; official staff

interpretation.

SUMMARY: The Board is publishing for

comment proposed revisions to its

official staff commentary to Regulation

B (Equal Credit Opportunity). The

commentary applies and interprets the

requirements of Regulation B and

substitutes for individual staff

interpretations. The proposed revisions

to the commentary provide guidance on

issues that the Board has been asked to

clarify, including credit scoring and

spousal signature rules.

DATES: Comments must be received on

or before February 28, 1996.

ADDRESSES: Comments should refer to

Docket No. R–0910, and may be mailed

to William W. Wiles, Secretary, Board of

Governors of the Federal Reserve

System, 20th Street and Constitution

Avenue, N.W., Washington, D.C. 20551.

Comments also may be delivered to

Room B–2222 of the Eccles Building

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

weekdays, or to the guard station in the

Eccles Building courtyard on 20th

Street, N.W. (between Constitution

Avenue and C Street) at any time.

Comments received will be available for

inspection in Room MP–500 of the

Martin Building between 9:00 a.m. and

5:00 p.m. weekdays, except as provided

in 12 CFR 261.8 of the Board’s rules

regarding the availability of information.

FOR FURTHER INFORMATION CONTACT: Jane

Jensen Gell, Sheilah A. Goodman, or

Natalie E. Taylor, Staff Attorneys,

Division of Consumer and Community

Affairs, Board of Governors of the

Federal Reserve System, at (202) 452–

3667 or 452–2412. For users of the

Telecommunications Device for the

Deaf, contact Dorothea Thompson at

(202) 452–3544.

SUPPLEMENTARY INFORMATION:

I. Background

The Equal Credit Opportunity Act

(ECOA), 15 U.S.C. 1691–1691f, makes it

unlawful for creditors to discriminate in

any aspect of a credit transaction on the

basis of race, color, religion, national

origin, sex, marital status, or age

(provided the applicant has the capacity

to contract), because all or part of an

applicant’s income derives from public

assistance, or because the applicant has

in good faith exercised any right under

the Consumer Credit Protection Act.

This statute is implemented by the

Board’s Regulation B (12 CFR Part 202).

The Board also has an official staff

commentary (12 CFR Part 202 (Supp. I))

that interprets the regulation. The

commentary provides general guidance

to creditors in applying Regulation B to

various credit transactions, and is

updated periodically to address

significant questions that arise.

II. Explanation of Proposed

Commentary

Section 202.2—Definitions

2(p) Empirically Derived and Other

Credit Scoring Systems

Comment 2(p)–2 would be revised to

provide guidance on revalidation

requirements for credit scoring systems.

Section 202.5—Rules Concerning

Taking of Applications

5(e) Written Applications

Comment 5(e)–3 would be revised to

cross-reference the proposed comments

to section 202.13(b), which address

applications submitted through an

electronic medium.

Section 202.6—Rules Concerning

Evaluation of Applications

6(b) Specific Rules Concerning Use of

Information

6(b)(2)

Comment 6(b)(2)–2 would be revised

to address the use of age in credit

scoring systems that use scorecards for

different age groups based on

characteristics that are predictive for

each group. Each scorecard considers

the correlation among the predictive

variables (representing characteristics

such as income, length of residence, and

credit history) for the age group. Each

predictive variable is assigned the

appropriate weight given the impact of

the other predictive variables in that age

group, so that comparable scores for

each group reflect the same level of risk.

Under the ECOA and Regulation B, if

a creditor considers age—whether by

directly assigning a value to age or by

some other means such as establishing

scorecards for different age groups—the

age of an elderly applicant must not be

assigned a negative value. The Board

believes that, to ensure that the

treatment accorded applicants age 62 or

older complies with the law, elderly

applicants who do not qualify for credit

under the factors assigned to the

scorecard for their age group must be

rescored under the factors assigned to

the scorecards for all other age groups

in the system. Comment 6(b)(2)–2

would be revised to incorporate this

concept.

Proposed comment 6(b)(2)–4

addresses the use of age in a reverse

mortgage transaction. A reverse

mortgage is a home-secured loan in

which the borrower receives payments

from the creditor, and the repayment of

these amounts does not become due

until the borrower dies, moves

permanently from the home, or transfers

title to the home. The proposed

comment clarifies that using age, as a

proxy for life expectancy, in a reverse

mortgage transaction to determine the

line of credit or monthly payment

amount that a borrower will receive

does not violate the regulation.

6(b)(6)

Comment 6(b)(6)–1 would be revised

to clarify that if a creditor considers

credit history, it must consider

information presented by the applicant

that is not included in the credit report,

if it is the type the creditor normally

considers on a credit report. The

comment also clarifies that when one

spouse is applying for individual credit,

the creditor must consider information

presented by the applicant that would
67098 Federal Register / Vol. 60, No. 249 / Thursday, December 28, 1995 / Proposed Rules

tend to show that a credit history

appearing in the name of both spouses

is not reflective of the applicant’s

individual creditworthiness.

Section 202.7—Rules Concerning

Extensions of Credit

7(d) Signature of Spouse or Other

Person

7(d)(2)

Proposed comment 7(d)(2)–1 clarifies

that in determining the value of an

applicant’s interest in property, a

creditor must look to the actual form of

ownership of the property prior to or at

consummation.

Regulation B requires that if an

applicant is not individually

creditworthy and the creditor seeks the

signature of a co-owner of property

relied upon to establish

creditworthiness, the signature may be

required only on the documents that are

reasonably necessary, under state law,

to make the property available in the

event of death or default of the

applicant. In some states, a signature on

the debt instrument itself may be

necessary. In other states, a creditor may

be able to protect its interest with a

signature on an instrument that creates

a limited obligation—a document

allowing the creditor to reach the

nonapplicant signatory’s interest only in

the property at issue in the event of

default. Examples of such instruments

include a security agreement, mortgage,

deed of trust, or limited guarantee. The

creditor could also consider requesting

a signature on a document sometimes

referred to as a status statement. This

document ascertains the character of

property that will be used in the credit

decision; affirms the purpose of the loan

(if a business purpose, affirms or

disclaims any interest or participation

in the business); and attests to or

disclaims the non-applicant’s desire to

be an applicant or guarantor of the

requested credit.

The Board proposes to revise

comment 7(d)(2)–1 to clarify that where

an individual applicant jointly owns

property in a form and amount

sufficient to establish creditworthiness,

a creditor may not require the

nonapplicant joint owner of the

property to execute any instrument that

forfeits or conveys that person’s interest

in the property to the applicant or other

owners as a condition of credit. For

example, a creditor could not require a

non-applicant spouse to quitclaim their

interest in jointly owned property relied

upon to establish creditworthiness if the

applicant spouse’s interest in the

property, and other resources, are

sufficient to support the credit

requested.

7(d)(6)

Proposed comment 7(d)(6)–1 clarifies

that a creditor may require that the

partners, officers or directors of a

creditworthy business personally

guarantee an extension of credit to the

business, as long as a guarantee is not

required on a prohibited basis—e.g.,

only those businesses owned by women

or minorities.

Comment 7(d)(6)–2 would be revised

to clarify that when the circumstances

of a business loan require the guarantee

of a spouse with no interest in the

business, the creditor could ask the

disinterested spouse to sign a limited

guarantee.

Section 202.13—Information for

Monitoring Purposes

13(a) Information To Be Requested

Comment 13(a)–6 would be revised to

clarify that a refinancing involves the

satisfaction of an existing obligation that

is replaced by a new obligation

undertaken by the same borrower. The

proposed clarification is consistent with

the definition of ‘‘refinancing’’ in other

Board regulations, such as Regulation C

(Home Mortgage Disclosure), 12 CFR

203, and Regulation Z (Truth in

Lending), 12 CFR 226.

13(b) Obtaining of Information

Proposed comment 13(b)–4 addresses

the collection of monitoring information

for applications submitted through an

electronic medium that does not permit

the creditor to view the applicant. In

these instances, the creditor should treat

the application as if it were accepted by

mail or telephone.

Proposed comment 13(b)–5 addresses

the collection of monitoring information

for applications submitted through an

interactive video process. Regulation B

requires a creditor to ask home mortgage

loan applicants for monitoring

information and, if the applicant

chooses not to provide the information,

requires the creditor to note the

information on the application on the

basis of visual observation or surname.

There is an exception for telephone or

mail applications. Where the creditor

has the capability to view the applicant

during the process, however, such as

with an interactive video, the Board

believes the application is like an inperson application. Thus, a creditor

must ask the applicant for monitoring

information and enter the information

provided on the application form. If the

applicant does not provide the

information, the creditor must note the

information to the extent the video

display makes it possible to do so.

III. Form of Comment Letters

Comment letters should refer to

Docket No. R–0910. The Board requests

that, when possible, comments be

prepared using a standard courier

typeface with a type size of 10 or 12

characters per inch. This will enable the

Board to convert the text into machinereadable form through electronic

scanning, and will facilitate automated

retrieval of comments for review.

Comments may also be submitted on

computer diskettes, using either the 3.5’’

or 5.25’’ size, in any IBM-compatible

DOS-based format. Comments on

computer diskettes must be

accompanied by a paper version.

List of Subjects in 12 CFR Part 202

Aged, Banks, banking, Civil rights,

Consumer protection, Credit,

Discrimination, Federal Reserve System,

Marital status discrimination, Penalties,

Religious discrimination, Reporting and

recordkeeping requirements, Sex

discrimination.

Certain conventions have been used

to highlight the proposed changes to the

staff commentary. New language is

shown inside bold-faced arrows, while

language that would be removed is set

off with brackets.

For the reasons set forth in the

preamble, the Board proposes to amend

12 CFR part 202 as set forth below:

PART 202—EQUAL CREDIT

OPPORTUNITY (REGULATION B)

1. The authority citation for Part 202

continues to read as follows:

Authority: 15 U.S.C. 1691–1691f.

2. In Supplement I to Part 202, under

Section 202.2 Definitions, under 2(p)

Empirically derived and other credit

scoring systems., three new sentences

would be added at the end of paragraph

2 to read as follows:

Supplement I to Part 202—Official Staff

Interpretations

* * * * *

Section 202.2 Definitions

* * * * *

2(p) Empirically derived and other credit

scoring systems.

* * * * *

2. * * * flTo ensure that predictive

ability is being maintained, the performance

of the system should be monitored. This

could be done, for example, by analyzing the

loan portfolio to determine the delinquency

rate for each score interval. If these data

indicate that the system is no longer

identifying risk as predicted, the system must
Federal Register / Vol. 60, No. 249 / Thursday, December 28, 1995 / Proposed Rules 67099

be revalidated and the variables for each

score interval adjusted accordingly.fi

* * * * *

3. In Supplement I to Part 202, under

Section 202.5 Rules Concerning Taking

of Applications, under 5(e) Written

applications., paragraph 3. would be

revised to read as follows:

* * * * *

Section 202.5 Rules Concerning Taking of

Applications

* * * * *

5(e) Written applications.

* * * * *

3. Computerized entry. Information entered

directly into and retained by a computerized

system qualifies as a written application

under this paragraph. (See the commentary to

section 202.13(b) fl, Applications through

electronic media and Applications through

interactive videofi.)

* * * * *

4. In Supplement I to Part 202,

Section 202.6 Rules Concerning

Evaluation of Applications would be

amended as follows:

a. Under Paragraph 6(b)(2), paragraph

2. would be revised; paragraphs 4. and

5. would be redesignated as paragraphs

5. and 6., respectively; and new

paragraph 4. would be added; and

b. Paragraph 6(b)(6) would be revised.

The additions and revisions would

read as follows:

* * * * *

Section 202.6—Rules Concerning Evaluation

of Applications

* * * * *

Paragraph 6(b)(2)

* * * * *

2. Consideration of age in a credit scoring

system. Age may be taken directly into

account in a credit scoring system that is

‘‘demonstrably and statistically sound,’’ as

defined in § 202.2(p), with one limitation: an

applicant who is 62 years or older must be

treated at least as favorably as anyone who

is under 62. flFor example, an applicant

who is 62 years or older may not be denied

credit if an applicant under age 62 with the

same characteristics would be approved for

credit under the scoring system. Thus, a

creditor using an age-based credit scoring

system must ensure that elderly applicants

who do not qualify under the factors assigned

to elderly age groups are rescored using the

factors or weights assigned to all other age

groups in the system.fi

* * * * *

fl 4. Consideration of age in a reverse

mortgage. A reverse mortgage is a homesecured loan in which the borrower receives

payments from the creditor, and does not

become obligated to repay these amounts

until the expiration of a term or when the

borrower dies, moves permanently from the

home, or transfers title to the home.

Disbursements to the borrower under a

reverse mortgage typically are determined by

considering the value of the borrower’s

home, the current interest rate, and the

borrower’s life expectancy. Age may be

directly taken into account in setting the

terms of a reverse mortgage without violating

the regulation B.fi

* * * * *

Paragraph 6(b)(6)

1. [Types of credit references.]

flEvaluating credit history.fi A creditor may

restrict the types of credit history and credit

references that it will consider, provided that

the restrictions are applied to all credit

applicants without regard to sex, marital

status, or any other prohibited basis.

However, on the applicant’s request, a

creditor must consider credit information not

reported through a credit bureau when the

information relates to the same types of

credit references and history that the creditor

would consider if reported through a credit

bureau.

fli. At the applicant’s request, a creditor

must consider credit information of the same

type that the creditor would consider if

reported through a credit bureau. For

example, if a creditor normally considers car

loan payments, and the consumer presents

credible information (such as cancelled

checks or money-order receipts) about

payment history on a car loan from a finance

company that did not report to a credit

bureau, the creditor must consider this

information in its evaluation of credit

history.

ii. At the applicant’s request, a creditor

must consider information that a credit

history reported in both spouses’ names does

not accurately reflect the applicant’s ability

or willingness to repay. For example, assume

an applicant applies for individual credit and

the credit bureau report shows late payments

on a mortgage obligation held jointly with a

former spouse. If the applicant can

demonstrate that the former spouse alone

was responsible for the late payments (such

as by a transfer of title to the former spouse

and a document from the mortgage creditor

that released the applicant from liability for

the debt) the creditor must disregard both the

mortgage debt and the late payments in

determining the applicant’s

creditworthiness.fi

* * * * *

5. In Supplement I to Part 202,

Section 202.7—Rules Concerning

Extensions of Credit, would be amended

as follows:

a. Under Paragraph 7(d)(2), paragraph

1. would be revised; and

b. Paragraph 7(d)(6) would be revised.

The revisions would read as follows:

* * * * *

Section 202.7—Rules Concerning Extensions

of Credit

* * * * *

Paragraph 7(d)(2)

1. Jointly owned property. fla. Valuation

of applicant’s interest.fi In determining the

value of [the] flanfi applicant’s interest in

jointly owned property, a creditor may

consider factors such as the [form of

ownership and the] property’s susceptibility

to attachment, execution, severance, or

partition and the cost of such action. flThis

determination must be based on the actual

form of ownership of the property prior to or

at consummation, and not on the possibility

of a subsequent change in the form of

ownership. For example, in determining

whether a married applicant’s interest in

property is sufficient to satisfy the creditor’s

standards of creditworthiness for individual

credit, a creditor may not obtain the signature

of the nonapplicant spouse based on the

possibility that the applicant’s separatelyheld property may be transferred into

tenancy by the entirety after consummation.

Similarly, a creditor may not routinely

require a nonapplicant joint owner to execute

any document (such as a quitclaim deed) that

would change the nonapplicant joint owner’s

interest in property offered by the applicant

to support the extension of credit.

b. Other options to support credit.fi If the

applicant’s interest in the property does not

support the amount and terms of credit

sought, the creditor may give the applicant

some other option of providing additional

support for the extension of credit[, f] fl.

Ffior example[—]fl:

i.fi [r]flRfiequiring an additional party

under § 202.7(d)(5)fl;

ii.fi [o]flOfiffering to grant the

applicant’s request on a secured credit

basisfl; or

iii.fi [a]flAfisking for the signature of the

co-owner of the property on an instrument

that ensures access to the property but does

not impose personal liability unless

necessary under state lawfl (which could

include, for example, a security agreement,

deed of trust, mortgage, limited guarantee,

quitclaim deed, or status statement from the

nonapplicant owner).fi

* * * * *

Paragraph 7(d)(6)

1. Guarantees. A guarantee on an extension

of credit is part of a credit transaction and

therefore subject to the regulation. flA

creditor may require the personal guarantee

of the partners, directors, or officers of a

business even if the business itself is

creditworthy. The guarantee must be based

on the guarantor’s relationship with the

business, however, and not on a prohibited

basis.

2. Spousal guarantees. The rules in

§ 202.7(d) bar a creditor from requiring the

signature of a guarantor’s spouse just as they

bar the creditor from requiring the signature

of an applicant’s spouse. For example,

although a creditor may require all officers of

a closely held corporation to personally

guarantee a corporate loan, the creditor may

not automatically require that spouses of

married officers also sign the guarantee. If an

evaluation of the financial circumstances of

an officer indicates that an additional

signature is necessary, however, the creditor

may require the signature of a spouse in

appropriate circumstances—for example, if

the property relied upon to meet the

creditor’s standards is held jointly. In such a

case, the creditor could ask the spouse to sign

an instrument that provides for liability to

the extent of the spouse’s interest in the

property relied upon to support the credit

(such as a limited guarantee).fi

* * * * *
67100 Federal Register / Vol. 60, No. 249 / Thursday, December 28, 1995 / Proposed Rules

6. In Supplement I to Part 202,

Section 202.13—Information for

Monitoring purposes, would be

amended as follows:

a. Under 13(a) Information to be

requested., paragraph 6. would be

revised; and

b. Under 13(b) Obtaining of

information., paragraphs 4. and 5.

would be redesignated as paragraphs 6.

and 7. respectively, and new paragraphs

4. and 5. would be added.

The revisions and additions would

read as follows:

* * * * *

Section 202.13 Information for Monitoring

purposes

13(a) Information to be requested.

* * * * *

6. Refinancings. fl A refinancing occurs

when an existing obligation is satisfied and

replaced by a new obligation undertaken by

the same borrower. fi A creditor that

receives an application to [change the terms

and conditions of] flrefinancefi an existing

extension of credit made by that creditor for

the purchase of the applicant’s dwelling may

request the monitoring information again but

is not required to do so if it was obtained in

the earlier transaction.

* * * * *

13(b) Obtaining of information.

* * * * *

fl4. Applications through electronic

media. If an applicant applies through an

electronic medium (for example, via the

Internet or by facsimile) without any face-toface interactive video capability, the creditor

should treat the application as if it were

accepted by mail or telephone.fi

fl5. Applications through interactive

video. If a creditor takes an application

through an interactive application process

with video capabilities, and the creditor can

see the applicant, the creditor should treat

these applications as taken in person and

collect the monitoring information.fi

* * * * *

By order of the Secretary of the Board,

acting pursuant to delegated authority for the

Board of Governors of the Federal Reserve

System, December 21, 1995.

Jennifer J. Johnson,

Deputy Secretary of the Board.

[FR Doc. 95–31363 Filed 12–27–95; 8:45 am]

BILLING CODE 6210–01–P

12 CFR Part 211

[Regulation K; Docket No. R–0911]

International Banking Operations

AGENCY: Board of Governors of the

Federal Reserve System.

ACTION: Proposed rule.

SUMMARY: The Board of Governors of the

Federal Reserve System (Board) is

proposing to amend its Regulation K

regarding interstate banking operations

of foreign banking organizations. The

Riegle-Neal Interstate Banking and

Branching Efficiency Act of 1994

(Interstate Act) removed geographic

restrictions on interstate banking by

foreign banks effective September 29,

1995, and requires certain foreign banks

without U.S. deposit-taking offices to

select a home state for the first time. The

proposed amendments to Regulation K

would require these foreign banks to

select a home state by March 31, 1996,

and would immediately remove

outdated restrictions on certain mergers

by U.S. bank subsidiaries of foreign

banks outside the home state of the

foreign bank. Obsolete and superseded

provisions of Regulation K concerning

home state selection would be deleted.

The Board is also requesting comment

on other aspects of the Interstate Act as

it applies to foreign banks.

DATES: Comments must be received by

February 5, 1996.

ADDRESSES: Comments should refer to

Docket No. R–0911 and may be mailed

to William W. Wiles, Secretary, Board of

Governors of the Federal Reserve

System, 20th Street and Constitution

Avenue, N.W., Washington D.C. 20551.

Comments also may be delivered to

Room B–2222 of the Eccles Building

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

weekdays, or to the guard station in the

Eccles building courtyard on 20th

Street, N.W. (between Constitution

Avenue and C Street, N.W.) at any time.

Comments may be inspected in Room

MP–500 of the Martin Building 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:

Kathleen M. O’Day, Associate General

Counsel (202/452–3786), Ann E.

Misback, Managing Senior Counsel

(202/452–3788), Douglas M. Ely, Senior

Attorney (202/452–5289), Legal

Division; Michael G. Martinson,

Assistant Director (202/452–3640),

Division of Banking Supervision and

Regulation, Board of Governors of the

Federal Reserve System. For users of

Telecommunication Device for the Deaf

[TDD] only, please contact Dorothea

Thompson (202/452–3544), Board of

Governors of the Federal Reserve

System, 20th and C Streets, N.W.,

Washington, D.C. 20551.

SUPPLEMENTARY INFORMATION: The

Interstate Act amended section 5 of the

International Banking Act of 1978 (IBA),

which governs interstate banking and

branching operations of foreign banks.

The Interstate Act also amended the

Bank Holding Company Act of 1956

(BHC Act), the Federal Deposit

Insurance Act and several other statutes

regarding interstate banking operations

of bank holding companies, national

banks and state banks. In light of these

amendments, the Board proposes to

amend the provisions of its Regulation

K regarding interstate banking

operations of foreign banking

organizations (12 CFR 211.22) as

discussed below.

Determination of Home State

Section 104(d) of the Interstate Act

modifies the existing definition of a

foreign bank’s home state under section

5(c) of the IBA. Section 104(d) retains

the provision of the IBA stating that the

home state of a foreign bank that has

any combination of branches, agencies,

subsidiary commercial lending

companies and subsidiary banks (U.S.

banking operations) in more than one

state is whichever of these states is

selected by the foreign bank, or by the

Board if the foreign bank fails to choose.

Section 104(d) also provides, for the

first time, that if a foreign bank has U.S.

banking operations, including agencies

or subsidiary commercial lending

companies, in one state only, that state

is the foreign bank’s home state for

purposes of interstate branching. The

Board proposes the following

amendments to 12 CFR 211.22(a) in

order to reflect and implement these

changes to the definition of a foreign

bank’s home state.

Abolition of Distinction Between

Deposit-Taking Offices and NondepositTaking Offices

Prior to the Interstate Act, the Board

interpreted the IBA to require a foreign

bank to have a home state only if the

foreign bank had deposit-taking offices,

i.e., branches or subsidiary banks. 44 FR

62903 (November 1, 1979). This

interpretation is set forth in

§ 211.22(a)(2) of Regulation K. Section

104(d) of the Interstate Act superseded

this interpretation by providing for the

first time that foreign banks with only

agencies or subsidiary commercial

lending companies have a home state.

Accordingly, the Board proposes that

§ 211.22(a)(2) be deleted.

The Board also proposes that

§ 211.22(a)(5) be deleted. This provision

follows the Board’s interpretation of the

IBA in § 211.22(a)(2) by requiring

foreign banks to select as their home

state the state where their first U.S.

deposit-taking office is located. Since

the Interstate Act has superseded that

interpretation, § 211.22(a)(5) is proposed

to be removed.