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Bank Holding Company/Change in Control
2002 Letters
November 26, 2002
To Oliver I. Ireland, regarding the application of the anti-tying prohibitions of section 106 of the Bank Holding Company Act Amendments of 1970 (12 U.S.C. � 1972) and the Board's safe harbor for combined-balance discounts (12 C.F.R. 225.7(b)(2)). The letter confirms that, for purposes of the safe harbor, a single "customer" can include separate individuals who are all members of an "immediate family" (as defined in 12 C.F.R. 225.41(b)(3)) and who reside at the same address.

October 7, 2002
To First Pryor Bancorp, indicating that the title abstracting activities proposed to be conducted for U.S.-registered aircraft would be within the scope of the title abstracting activities previously determined to be permissible by the Board under section 4(c)(8) of the BHC Act. See, The First National Company, 81 Federal Reserve Bulletin 805, 806 (1995). The title abstracting services would be provided to affiliated and unaffiliated lenders and other parties in connection with aircraft financing and sales transactions, and would not include providing insurance against title defects, or providing a guarantee or certification with respect to aircraft title.

August 13, 2002
To the Capital Group Companies, advising that it and its subsidiaries collectively may acquire up to 15 percent of any class of voting securities of a bank holding company or bank without being deemed to have acquired control of that institution under the Bank Holding Company Act (�BHC Act�) or the Change in Bank Control Act (�CIBC Act�) when the acquisition complies with certain conditions.

July 10, 2002
To Karol K. Sparks, confirming that an insurance agency or broker owned by a financial holding company may, under section 4(k)(4)(B) of the BHC Act (12 U.S.C. 1843(k)(4)(B)), provide certain insurance claims administration services and certain insurance risk management services in connection with the insurance sales activities of the insurance agency or broker.

July 10, 2002
To Craig N. Landrum, confirming that a financial holding company may, under section 4(k)(4)(B) of the BHC Act (12 U.S.C. 1843(k)(4)(B)), provide certain third party administrator services to or on behalf of an insurance company in connection with the sale or underwriting of insurance by the insurance company.

July 9, 2002
To Nancy M. Stiles, confirming that providing certain flood zone determination services is within the scope of permissible activities related to extending credit under section 225.28(b)(2) of Regulation Y (12 CFR 225.28(b)(2)).

February 11, 2002
Letter to a parent bank holding company confirming that staff would not recommend that the Board require an application under section 3 of the Bank Holding Company Act (12 U.S.C. § 1842) if the parent bank holding company reacquires shares of a subsidiary bank holding company. The parent proposes to sell shares of the subsidiary back to the subsidiary, but then may reacquire the shares from the subsidiary pursuant to a put option granted by the parent to the subsidiary in connection with the sellback.

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