Federal Register / Vol. 75, No. 190 / Friday, October 1, 2010 / Notices 60749 

1See 73 FR 79109, December 24, 2008. 

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. The applications also will 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 

(12 U.S.C. 1843). Unless otherwise 

noted, nonbanking activities will be 

conducted throughout the United States. 

Additional information on all bank 

holding companies may be obtained 

from the National Information Center 

website at www.ffiec.gov/nic/. 

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 October 28, 

2010. 

A. Federal Reserve Bank of Chicago 

(Colette A. Fried, Assistant Vice 

President) 230 South LaSalle Street, 

Chicago, Illinois 60690–1414: 

1. Rigler Investment Co., New 

Hampton, Iowa; to acquire 100 percent 

of the voting shares of State Bank & 

Trust Company, Waverly, Iowa. 

Board of Governors of the Federal Reserve 

System, September 28, 2010. 

Robert deV. Frierson, 

Deputy Secretary of the Board. 

[FR Doc. 2010–24666 Filed 9–30–10; 8:45 am] 

BILLING CODE 6210–01–S 

FEDERAL RESERVE SYSTEM 

[Docket No. OP–1345] 

Policy on Payment System Risk 

AGENCY: Board of Governors of the 

Federal Reserve System. 

ACTION: Notice. 

SUMMARY: The Board of Governors of the 

Federal Reserve System (Board) is 

announcing the implementation date of 

March 24, 2011, for revisions to part II 

of its Policy on Payment System Risk 

(PSR). The revisions explicitly recognize 

the role of the central bank in providing 

intraday credit to healthy depository 

institutions, and establish a zero fee for 

collateralized daylight overdrafts, a 50 

basis point (annual rate) charge for 

uncollateralized daylight overdrafts, and 

a biweekly daylight overdraft fee waiver 

of $150. The Board approved these 

revisions in late 2008 for 

implementation in approximately two 

years following substantial changes to 

the Reserve Bank infrastructure. 

DATES: Effective Date: The policy will 

take effect on March 24, 2011. 

FOR FURTHER INFORMATION CONTACT: 

Jeffrey Marquardt, Deputy Director (202) 

452–2360, Susan Foley, Deputy 

Associate Director (202) 452–3596, or 

Jeffrey Walker, Manager (202) 721–4559, 

Division of Reserve Bank Operations 

and Payment Systems, Board of 

Governors of the Federal Reserve 

System; for users of 

Telecommunications Device for the Deaf 

(‘‘TDD’’) only, contact (202) 263–4869. 

SUPPLEMENTARY INFORMATION: On 

December 19, 2008, the Board approved 

revisions to part II of its PSR policy 

designed to improve intraday liquidity 

management and payment flows for the 

banking system, while also helping to 

mitigate credit exposures of the Federal 

Reserve Banks (Reserve Banks) from 

daylight overdrafts.1 The revisions 

formally recognize the role of the central 

bank in providing intraday credit to 

depository institutions and encourage 

them to collateralize explicitly their 

daylight overdrafts. Collateralized 

daylight overdrafts will be charged a 

zero fee, while uncollateralized daylight 

overdrafts will be charged 50 basis 

points (annual rate), an increase from 

the current rate of 36 basis points 

(annual rate), to encourage the voluntary 

use of collateral. The Board also 

approved a biweekly daylight overdraft 

fee waiver of $150 to minimize the 

effect of the proposed policy changes on 

institutions that use small amounts of 

daylight overdrafts. In addition, the 

Board changed other elements of the 

PSR policy dealing with daylight 

overdrafts, including adjusting net debit 

caps, streamlining max cap procedures 

for certain FBOs (implemented in March 

2009), eliminating the deductible for 

daylight overdraft fees, and increasing 

the penalty daylight overdraft fee for 

ineligible institutions to 150 basis 

points (annual rate). The revisions to the 

PSR policy will become effective on 

March 24, 2011. 

The Board encourages depository 

institutions to review documentation 

explaining the implementation of the 

revised PSR policy. Institutions should 

review either the Overview of the 

Federal Reserve’s Payment System Risk 

Policy (Overview) or the Guide to the 

Federal Reserve’s Payment System Risk 

Policy (the Guide). The purpose of the 

Overview is to help depository 

institutions that use only minimal 

amounts of Federal Reserve intraday 

credit understand and comply with the 

PSR policy. The purpose of the Guide is 

to help institutions that use Federal 

Reserve intraday credit more regularly, 

foreign banking organizations, and those 

that may be considered ‘‘special 

situations’’ because of their legal 

structure or payment activity, 

understand and comply with more 

detailed aspects of the PSR policy. 

Versions of the Guide and Overview 

that have been updated with 

information related to the revised policy 

will be available on the Board’s Web site 

later this year at http:// 

www.federalreserve.gov/ 

paymentsystems/psr_relpolicies.htm. 

The current versions of the Guide and 

Overview will be available on the 

Board’s Web site until 30 days after the 

implementation date. 

The Federal Reserve will also publish 

updated guidelines for collateral 

pledging and withdrawal to help 

institutions better understand the types 

of collateral eligible to pledge and the 

processing steps associated with these 

types of collateral. This information will 

be available on the discount window 

and PSR Web site later this year at 

http://www.frbdiscountwindow.org. In 

addition, to assist all institutions in 

understanding the effect of the revised 

policy on their daylight overdraft fees, 

the Board created a simplified fee 

calculator that is located on the Board’s 

Web site at https:// 

www.federalreserve.gov/apps/RPFCalc/. 

The calculator enables institutions to 

input daylight overdraft and collateral 

data to estimate their daylight overdraft 

fees under the revised PSR policy. The 

calculator will be available until 30 days 

after the implementation date. 

By order of the Board of Governors of the 

Federal Reserve System, September 23, 2010. 

Jennifer J. Johnson, 

Secretary of the Board. 

[FR Doc. 2010–24649 Filed 9–30–10; 8:45 am] 

BILLING CODE 6210–01–P 

FEDERAL RESERVE SYSTEM 

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. 


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