(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 section
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 financial subsidiary;
(3) provide a description
of the current and proposed activities of the financial subsidiary
and the specific authority permitting each activity;
(4) provide the capital ratios as of the
close of the previous calendar quarter for all relevant capital measures,
as defined in section 38 of the Federal Deposit Insurance Act (12
U.S.C. 1831o), for the bank and each of its depository institution
affiliates;
(5) certify
that the bank and each of its depository institution affiliates was
well capitalized at the close of the previous calendar quarter and
is well capitalized as of the date the bank files its notice;
(6) certify that the bank and
each of its depository institution affiliates is well managed as of
the date the bank files its notice;
(7) certify that the bank meets the debt
rating or alternative requirement of section 208.71(b), if applicable;
and
(8) certify that
the bank and its financial subsidiaries are in compliance with the
asset limit set forth in section 208.71(a)(2) both before the proposal
and on a pro forma basis.
3-386.1
(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 paragraph
(c)(1) of this section 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 under paragraph (a) of this section 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. Any
notification of early approval of a notice must be in writing.
