[Code of Federal Regulations]
[Title 12, Volume 3]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 12CFR265.5]

[Page 779-781]
 
                       TITLE 12--BANKS AND BANKING
 
                   CHAPTER II--FEDERAL RESERVE SYSTEM
 
PART 265--RULES REGARDING DELEGATION OF AUTHORITY--Table of Contents
 
Sec. 265.5  Functions delegated to Secretary of the Board.

    The Secretary of the Board (or the Acting Secretary) is authorized:
    (a) Procedure--(1) Extension of time period for public participation 
in proposed regulations. To extend, when appropriate under the Board's 
Rules of Procedure (12 CFR 262.2 (a) and (b)), the time period for 
public participation with respect to proposed regulations of the Board.
    (2) Extension of time period in notices, orders, rules, or 
regulations. (i) To grant or deny requests to extend any time period in 
any notice, order, rule, or regulation of the Board relating to filing 
information, comments, opposition, briefs, exceptions, or other matters, 
in connection with any application, request or petition for the Board's 
approval, authority, determination, or permission, or any other action 
by the Board.
    (ii) Notwithstanding Sec. 265.3 of this part, no person claiming to 
be adversely affected by any such extension of time by the Secretary 
shall have the right to petition the Board or any Board member for 
review or reconsideration of the extension.
    (3) Conforming citations and references in Board rules and 
regulations. (i) To conform references to administrative positions or 
units in Board rules and regulations with changes in the administrative 
structure of the Board and in the government and agencies of the United 
States.
    (ii) To conform citations and references in Board rules and 
regulations with other regulatory or statutory changes adopted or 
promulgated by the Board or by the government or agencies of the United 
States.
    (4) Technical corrections in Board rules and regulations. To make 
technical corrections, such as spelling, grammar, construction, and 
organization (including removal of obsolete provisions and consolidation 
of related provisions), to the Board's rules, regulations, and orders 
and other records of Board action but only with the concurrence of the 
Board's General Counsel.
    (b) Availability of information--(1) FOIA requests. To make 
available, upon request, information in Board records and consider 
requests for confidential treatment of information in Board records 
under the Freedom of Information Act (5 U.S.C. 552) and under the 
Board's Rules Regarding Availability of Information (12 CFR part 261).
    (2) Annual reports on Privacy Act. To approve annual reports 
required by the Privacy Act (5 U.S.C. 552a(p)) from the Board to the 
Office of Management and Budget for inclusion in the President's annual 
consolidated report to Congress.
    (3) Report on prime rate of commercial banks. To determine and 
report, under 26 U.S.C. (IRC) 6621, to the Secretary of the Treasury the 
average predominant prime rate quoted by commercial banks to large 
businesses.
    (c) Bank holding companies; Change in bank control; Mergers--(1) 
Reports on competitive factors in bank mergers. To furnish reports on 
competitive factors involved in a bank merger to the Comptroller of the 
Currency and the Federal Deposit Insurance Corporation under the 
provisions of the Federal Deposit Insurance Act (12 U.S.C. 1828(c)); The 
Bank Holding Company Act (12 U.S.C. 1842(a), 1843(c)(14)); the Bank 
Service Corporation Act (12 U.S.C. 1865(a), (b), 1867(d)); the Change in 
Bank Control Act (12 U.S.C. 1817(j)); and the Federal Reserve Act (12 
U.S.C. 321 et seq., 601-604a, 611 et seq.).

[[Page 780]]

    (2) Reserve Bank director interlocks. To take actions the Reserve 
Bank could take except for the fact that the Reserve Bank may not act 
because a director, senior officer, or principal shareholder of any 
holding company, bank, or company involved in the transaction is a 
director of that Reserve Bank or branch of the Reserve Bank.
    (3) Application approval under section 5(d)(3) of the FDI Act. To 
approve applications pursuant to section 5(d)(3) of the Federal Deposit 
Insurance Act (12 U.S.C. 1815(d)(3)), in those cases in which the 
appropriate Federal Reserve Bank concludes that, because of unusual 
considerations, or for other good cause, it should not take action.
    (d) International banking--(1) Establishment of foreign branch or 
foreign agency or of Edge or Agreement Corporations. To approve, under 
sections 25 and 25A of the Federal Reserve Act (12 U.S.C. 601 and 604) 
and Regulation K (12 CFR part 211), the establishment, directly or 
indirectly, of a foreign branch or agency by a member bank or an Edge or 
Agreement Corporation if all of the following conditions are met:
    (i) The appropriate Reserve Bank and relevant divisions of the 
Board's staff recommend approval;
    (ii) No significant policy issue is raised on which the Board has 
not expressed its view; and
    (iii) The application is not for the applicant's first full-service 
branch in a foreign country.
    (2) Acquisition of foreign company or U.S. company financing 
exports. To grant, under sections 25 and 25A of the Federal Reserve Act 
(12 U.S.C. 601 and 604) and section 4(c)(13) of the Bank Holding Company 
Act (12 U.S.C. 1843(c)(13)) and the Board's Regulations K and Y (12 CFR 
parts 211 and 225), specific consent to the acquisition, either directly 
or indirectly, by a member bank, an Edge or Agreement corporation, or a 
bank holding company of stock of a company chartered under the laws of a 
foreign country or a company chartered under the laws of a state of the 
United States that is organized and operated for the purpose of 
financing exports from the United States, and to approve any such 
acquisition that may exceed the limitations of section 25A of the 
Federal Reserve Act based on the company's capital and surplus, if all 
of the following conditions are met:
    (i) The appropriate Reserve Bank and all relevant divisions of the 
Board's staff recommend approval;
    (ii) No significant policy issue is raised on which the Board has 
not expressed its view;
    (iii) The acquisition does not result, either directly or 
indirectly, in the bank, corporation, or bank holding company acquiring 
effective control of the company, except that this condition need not be 
met if:
    (A) The company is to perform nominee, fiduciary, or other services 
incidental to the activities of a foreign branch or affiliate of the 
bank holding company, or corporation; or
    (B) The stock is being acquired from the parent bank or bank holding 
company, or subsidiary Edge or Agreement corporation, as the case may 
be, and the selling parent or subsidiary holds the stock with the 
consent of the Board pursuant to Regulations K and Y (12 CFR parts 211 
and 225).
    (3) Investments in Edge and Agreement Corporations. To approve an 
application by a member bank to invest more than 10 percent of capital 
and surplus in Edge and agreement corporation subsidiaries, provided 
that:
    (i) The member bank's total investment, including the retained 
earnings of the Edge and agreement corporation subsidiaries, does not 
exceed 20 percent of the bank's capital and surplus or would not exceed 
that level as a result of the proposal; and
    (ii) The proposal raises no significant policy or supervisory 
issues.
    (e) Member banks--(1) Waiver of penalty for early withdrawals of 
time deposits. To permit depository institutions to waive the penalty 
for early withdrawal of time deposits under section 19(j) of the Federal 
Reserve Act (12 U.S.C. 371b) and Sec. 204.2 of Regulation D (12 CFR part 
204) if the following conditions are met:
    (i) The President declares an area of major disaster or emergency 
area pursuant to section 301 of the Disaster Relief Act of 1974 (42 
U.S.C. 5141);

[[Page 781]]

    (ii) The waiver is limited to depositors suffering disaster or 
emergency related losses in the officially designated area; and
    (iii) The appropriate Reserve Bank and all relevant divisions of the 
Board's staff recommend approval.
    (2) [Reserved]
    (f) Location of institution. To determine the Federal Reserve 
District in which an institution is located pursuant to 
Sec. 204.3(b)(2)(ii) of Regulation D (12 CFR part 204) or Sec. 209.15(b) 
of Regulation I (12 CFR part 209) if:
    (1) The relevant Federal Reserve Banks and the institution agree on 
the specific Reserve Bank in which the institution should hold stock or 
with which the institution should maintain reserve balances; and
    (2) The agreed-upon location does not raise any significant policy 
issues.

[56 FR 25619, June 5, 1991, as amended at 56 FR 67153, 67154, Dec. 30, 
1991; 58 FR 26509, May 4, 1993; 62 FR 34617, June 27, 1997; 66 FR 58655, 
Nov. 23, 2001]