Legal Interpretations
Bank Holding Company/Change in Control - 1996 Letters
November 27, 1996
To Bank of America stating that BA Securities may participate in underwriting certain preferred securities to be issued by a group of business trusts established by BankAmerica as a permissible servicing activity under BHCA 4(c)(1)(C), 12 USC 1843(c)(1)(C).
November 15, 1996
To Mr. Donald Toumey regarding a proposal by a section 20 subsidiary to expand the products offered through a dual employee arrangement between the subsidiary and a third party insurance agent. (Cites the Interagency Statement on Retail Sales of Nondeposit Investment Products)
November 14, 1996
To Mr. Michael Phenner confirming that reinsurance by a captive insurance subsidiary of corporate owned life insurance policies on the lives of the directors, officers or employees of the bank holding company, its bank and nonbank subsidiaries is a permissible servicing activity under BHCA 4(a)(2) and 4(c)(1) (12 USC 1843(a)(2) and (c)(1)(C)); and subject to certain restrictions, is not a covered transaction under FRA 23A (12 USC 371c).
September 30, 1996
To Ms. Nancy Stiles concerning joint employee arrangements with independent insurance agencies and broker dealers who would lease space on the premises of two subsidiaries of a bank owned by a bank holding company to permit the sale of fixed and variable annuities by the dual employees. (Cites the Interagency Statement on Retail Sales of Nondeposit Investment Products)
September 10, 1996
To National City Corporation concerning an exemption from the antitying provisions of BHCA 106 (12 U.S.C. 1972) permitting National City to offer a reduced rate on floorplan and other loans to an automobile dealership based on the amount of retail paper financing sold by the dealership to the subsidiary or an affiliate.
September 4, 1996
To Mr. Michael O'Neal concerning whether an application is needed under BHCA 3 (12 U.S.C. 1842) for the intended transfer for tax and estate planning purposes of common stock of a bank holding company from a family member and three related trusts to a family limited partnership.
August 13, 1996
To Mr. Stephen Klein concerning the potential future acquisition by a Tribe of additional shares of voting stock of a state nonmember bank, thereby increasing ownership from 4.64 percent to 9.9 percent; and whether the Tribe would become a bank holding company under the BHCA, 12 U.S.C. 1841(b).
August 8, 1996
To Fulton Financial Corporation concerning the antitying implications (under BHCA 106) of offering shareholders a premium above the prevailing rate of interest on certain certificates of deposit at any of Fulton's subsidiary banks. 12 U.S.C. 1972.
July 22, 1996
To Mr. Jonathan Weld concerning the proposed investment by The Bank of Nova Scotia in Grupo Financiero Inverlat, and whether the Bank would be deemed to control Inverlat under the BHCA in light of the significant interest in Inverlat held by the Mexican government.
July 17, 1996
To Fingerhut Corporation concerning the offering of an installment credit card through a credit card bank, and whether it would be exempt from the definition of "bank" under the BHCA, 12 U.S.C. 1841(c)(2)(F).
June 14, 1996
To Mr. Robert Royer concerning divestiture under the BHCA of shares in MGM, acquired by Credit Lyonnais in satisfaction of a debt previously contracted (DPC).
May 23, 1996
To Mr. Donald Toumey regarding relocation of dual employees of a section 20 subsidiary and a third party insurance agent into branches of affiliated banks.
May 22, 1996
To Mr. Rodgin Cohen concerning modifications to CB Bancshares' ESOP under the CIBC Act, 12 U.S.C. 1817(j).
May 15, 1996
To Mr. Richard Fischer concerning the request by CNA Financial Corporation be allowed to meet its commitment to liquidate or dispose of a state member bank by converting it to a trust company that is excluded from the definition of "bank" under BHCA 2(c)(2)(D).
May 10, 1996
To Toronto Dominion Securities USA, a section 20 subsidiary of Toronto-Dominion Bank, regarding the hiring of all staff members of a securities firm that is dissolving.
April 1, 1996
To Mr. Donald Toumey regarding the proposal of a section 20 subsidiary to enter into a dual employee arrangement to permit sale of annuities from its premises. (Cites the Interagency Statement on Retail Sales of Nondeposit Investment Products)
March 14, 1996
To Dean Witter regarding the permissibility under BHCA § 4(f)(3)(B)(ii) of a proposal by Dean Witter to market a share purchase and dividend reinvestment plan for stock of Dean Witter.
March 12, 1996
To NationsBank Corporation regarding arrangement between its subsidiary, NationsCredit, and the American Travel Motor Club, whereby NationsCredit would make available to its customers promotional materials for the travel club.
March 8, 1996
To Mr. David Kennedy concerning sale of fixed and variable annuities from leased space on the premises of a BHC's thrift subsidiary by employees of the thrift who will also be employees ("dual employees") of an insurance subsidiary of the BHC's bank subsidiary. (Cites the Interagency Statement on Retail Sales of Nondeposit Investment Products)
March 8, 1996
To Ms. Carolyn Kelly concerning sale of variable annuities and life insurance products by an employee of the bank and the bank's affiliated securities broker ("dual employee") as an independent contractor of a third party insurance agent. (Cites the Interagency Statement on Retail Sales of Nondeposit Investment Products)
March 4, 1996
To Hanil Bank, Seoul, Korea, regarding their intention to issue commercial paper in the U.S. using a special purpose company ("orphan subsidiary") under BHCA 4(c)(1)(C).