[Code of Federal Regulations]
[Title 12, Volume 2, Parts 200 to 219]
[Revised as of January 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 12CFR208.76]

[Page 202]
 
                       TITLE 12--BANKS AND BANKING
 
                   CHAPTER II--FEDERAL RESERVE SYSTEM
 
PART 208--MEMBERSHIP OF STATE BANKING INSTITUTIONS IN THE FEDERAL RESERVE SYSTEM (REGULATION H)--Table of Contents
 
         Subpart G--Financial Subsidiaries of State Member Banks
 
Sec. 208.76  What Federal Reserve approvals are necessary for financial subsidiaries?

    (a) Notice requirements. (1) A state member bank may not acquire 
control of, or an interest in, a financial subsidiary unless it files a 
notice (in letter form, with enclosures) with the appropriate Reserve 
Bank.
    (2) A state member bank may not engage in any additional activity 
pursuant to Sec. 208.72(a)(1) or (2) through an existing financial 
subsidiary unless the state member bank files a notice (in letter form, 
with enclosures) with the appropriate Reserve Bank.
    (b) Contents of notice. Any notice required by paragraph (a) of this 
section must:
    (1) In the case of a notice filed under paragraph (a)(1) of this 
section, describe the transaction(s) through which the bank proposes to 
acquire control of or an interest in the financial subsidiary;
    (2) Provide the name and head office address of the subsidiary;
    (3) Provide a description of the current and proposed activities of 
the financial subsidiary and the specific authority permitting each 
activity;
    (4) Certify that the bank and each of its depository institution 
affiliates, was well capitalized at the close of the previous calendar 
quarter, and remains well capitalized as of the date the bank files its 
notice;
    (5) Certify that the bank and each of its depository institution 
affiliates is well managed as of the date the bank files its notice;
    (6) Certify that the bank meets the debt rating or alternative 
requirement of Sec. 208.71(b), if applicable; and
    (7) Certify that the bank and its financial subsidiaries are in 
compliance with the asset limit set forth in Sec. 208.71(a)(3) both 
before the proposal and on a pro forma basis.
    (c) Insurance activities. (1) If a notice filed under paragraph (a) 
of this section relates to the initial affiliation of the bank with a 
company engaged in insurance activities, the notice must describe the 
type of insurance activity that the company is engaged in or plans to 
conduct and identify each state where the company holds an insurance 
license and the state insurance regulatory authority that issued the 
license.
    (2) The appropriate Reserve Bank will send a copy of any notice 
described in this subsection to the appropriate state insurance 
regulatory authorities and provide such authorities with an opportunity 
to comment on the proposal.
    (d) Approval procedures. A notice filed with the appropriate Reserve 
Bank will be deemed approved on the fifteenth day after receipt of a 
complete notice by the appropriate Reserve Bank, unless prior to that 
date the Board or the appropriate Reserve Bank notifies the bank that 
the notice is approved, that the notice will require additional review, 
or that the bank does not meet the requirements of this subpart.

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