Federal Register / Vol. 61, No. 20 / Tuesday, January 30, 1996 / Notices 3039

3The U.S. federal depository institution

regulatory agency(ies) must be able to examine any

aspects of the service provider as may be necessary

to assess the adequacy of the operations and

financial condition of the service provider.

4 If a participant proposes to conduct its Fedwire

processing at a foreign site outside the home

country of the service provider, both the home

country and host country supervisors would need

to permit the participant’s primary supervisor(s) to

review the Fedwire operations.

8. The participant must certify that

the specifics of the arrangement will

allow the participant to comply with all

applicable state and federal laws and

regulations governing the participant,

including, for example, retaining and

making accessible records in accordance

with the regulations adopted under the

Bank Secrecy Act.

9. The participant’s primary

supervisor(s) must affirmatively state in

writing that it does not object to the

arrangement.

10. The participant must have in

place an adequate audit program to

review the arrangement at least annually

to confirm that these requirements are

being met. In addition, in the case of an

arrangement involving a foreign service

provider, both the participant and the

foreign service provider must have in

place an adequate audit program that

addresses Fedwire operations. Audit

reports in English must be made

available to the Federal Reserve and the

participant’s primary supervisor(s) in

the United States.

11. In the case of a service provider

located within the United States, the

service provider must be subject to

examination by the appropriate federal

depository institution regulatory

agency(ies).3

In the case of a service provider

located outside the United States, the

service provider must be subject to the

supervision of a home country bank

supervisor. In its review of a proposed

foreign service provider arrangement,

the Federal Reserve will consider the

extent to which the service provider’s

home country supervisor (1) oversees

banks on a consolidated basis, (2) is

familiar with supervising payment

systems activities, (3) is willing to

examine the Fedwire operations at the

service provider, and (4) has

demonstrated a willingness to work

closely with U.S. banking authorities in

addressing supervisory problems. In

addition, the home country supervisor,

the participant, and the service provider

must agree to permit the participant’s

primary supervisor(s) to conduct on-site

reviews of the Fedwire operations at the

foreign service provider.4 The

participant and the service provider

must agree to make all policies,

procedures, and other documentation

relating to Fedwire operations,

including those related to internal

controls and data security requirements,

available to the Federal Reserve and the

participant’s primary supervisor(s) in

English.

12. The participant and the service

provider(s) must execute an agreement

with the relevant Reserve Bank(s)

incorporating these conditions.

The participant’s Federal Reserve

Bank is responsible for approving each

proposed Fedwire third-party access

arrangement. The Directors of the

Board’s Division of Reserve Bank

Operations and Payment Systems and

Division of Banking Supervision and

Regulation must concur with a proposed

arrangement (1) in which the participant

is not affiliated through at least 80

percent common ownership with the

service provider and where the

participant is owned by one of the 50

largest bank holding companies (based

on consolidated assets), or (2) in which

the service provider is located outside

the United States. Approval of a foreign

service provider arrangement would be

conditioned on satisfactory findings of a

review of both the participant’s and the

foreign service provider’s Fedwire

policies, procedures, and operations,

which would be conducted by the

Federal Reserve prior to the

commencement of operations.

By order of the Board of Governors of the

Federal Reserve System, January 24, 1996.

William W. Wiles,

Secretary of the Board.

[FR Doc. 96–1652 Filed 1–29–96; 8:45 am]

BILLING CODE 6210–01–P

BancTenn Corp. et al.; Formations of;

Acquisitions by; and Mergers of Bank

Holding Companies

The companies listed in this notice

have applied for the Board’s approval

under section 3 of the Bank Holding

Company Act (12 U.S.C. 1842) and §

225.14 of the Board’s Regulation Y (12

CFR 225.14) to become a bank holding

company or to acquire a bank or bank

holding company. The factors that are

considered in acting on the applications

are set forth in section 3(c) of the Act

(12 U.S.C. 1842(c)).

Each application is 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 to the

Reserve Bank or to the offices of the

Board of Governors. Any comment on

an application that requests a hearing

must include a statement of why a

written presentation would not suffice

in lieu of a hearing, identifying

specifically any questions of fact that

are in dispute and summarizing the

evidence that would be presented at a

hearing.

Unless otherwise noted, comments

regarding each of these applications

must be received not later than February

23, 1996.

A. Federal Reserve Bank of Atlanta

(Zane R. Kelley, Vice President) 104

Marietta Street, N.W., Atlanta, Georgia

30303:

1. BancTenn Corp., Kingsport,

Tennessee; and Carter County Bancorp,

Inc., Chattanooga, Tennessee; each to

acquire a total of 12.495 percent of the

voting shares of Cornerstone

Community Bank (in organization),

Chattanooga, Tennessee.

2. Community Financial Group, Inc.,

Nashville, Tennessee; to become a bank

holding company by acquiring 80

percent of the voting shares of The Bank

of Nashville, Nashville, Tennessee.

Board of Governors of the Federal Reserve

System, January 24, 1996.

Jennifer J. Johnson,

Deputy Secretary of the Board.

[FR Doc. 96–1647 Filed 1–29–96; 8:45 am]

BILLING CODE 6210–01–F

First Bankshares of Las Animas, Inc.;

Notice of Proposal to Engage de novo

in Permissible Nonbanking Activities

The company listed in this notice has

given notice under § 225.23(a)(1) of the

Board’s Regulation Y (12 CFR

225.23(a)(1)) for the Board’s approval

under section 4(c)(8) of the Bank

Holding Company Act (12 U.S.C.

1843(c)(8)) and § 225.21(a) of Regulation

Y (12 CFR 225.21(a)) to commence or to

engage de novo, either directly or

through a subsidiary, in a nonbanking

activity that is listed in § 225.25 of

Regulation Y as closely related to

banking and permissible for bank

holding companies. Unless otherwise

noted, such activities will be conducted

throughout the United States.

The notice is available for immediate

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

commencement of the activity 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