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§ 1.218 San Bernardino Public Safety

Authority Revenue Bonds. (a) Request. The Comptroller of the Currency has been requested to rule on the eligibility of the $2,830,000 San Bernardino Public Safety Authority Revenue Bonds, First Issue, for purchase, dealing in, underwriting and unlimited holding by national banks under paragraph Seventh of 12 U.S.C. 24.

(b) Opinion. (1) The San Bernardino Public Safety Authority is a public entity created under the laws of California by an agreement between the city of San Bernardino and the county of San Bernardino. Under this agreement the Authority is authorized to acquire land, construct public safety buildings (jail, juvenile hall, and related facilities) to be leased to and operated by the county and to issue bonds to finance such projects. The Authority is issuing these bonds to finance the construction of a juvenile hall. It is expected that bonds to finance jail facilities will be issued in 1969.

(2) The county, as required by its agreement with the, city, has unconditionally promised in the lease rental agreement to pay annual rentals to the Authority in an amount sufficient to meet annual interest and principal payments on these bonds as well as other necessary expenses. The county which possesses general powers of taxation has thus committed its faith and credit in support of the bonds.

(c) Ruling. It is our conclusion that the $2,830,000 San Bernardino Public Safety Authority Revenue Bonds, First Issue, are general obligations of a State or a political subdivision thereof under paragraph Seventh of 12 U.S.C. 24 and accordingly are eligible for purchase, dealing in, underwriting and unlimited holding by national banks. (Comptroller's letter dated July 26, 1968.) [33 F.R. 11060, Aug. 3, 1968] $ 1.219 Merced County-Atwater Civic

Center Authority, City Building Fa

cilities 1968, Revenue Bonds. (a) Request. The Comptroller of the Currency has been requested to rule on the eligibility of the $300,000 Merced County-Atwater Civic Center Authority, City Building Facilities 1968, Revenue Bonds for purchase, dealing in, underwriting and unlimited holding by national banks under paragraph Seventh of 12 U.S.C. 24.

(b) Opinion. (1) The Merced CountyAtwater Authority is a public entity created under the laws of California by an agreement between the city of Atwater and the county of Merced. Under this agreement the Authority is authorized to acquire, construct and lease public buildings and to issue bonds to finance such projects. The Authority is issuing these bonds to finance the construction of administration and public safety buildings which will be leased to the city.

(2) The city has unconditionally agreed with the county to pay annual rentals to the Authority in an amount sufficient to meet the annual interest and principal payments on these bonds as well as other necessary expenses. The city which possesses general powers of taxation has thus committed its faith and credit in support of the bonds.

(c) Ruling. It is our conclusion that the $300,000 Merced County-Atwater Civic Center Authority, City Building Facilities 1968, Revenue Bonds are general obligations of a State or a political subdivision thereof under paragraph Seventh of 12 U.S.C. 24 and accordingly are eligible for purchase, dealing in, underwriting and unlimited holding by national banks. (Comptroller's letter dated July 26, 1968.) [33 F.R. 11060, Aug. 3, 1968] § 1.220 Santa Barbara County Public

Safety Authority Revenue Bonds. (a) Request. The Comptroller of the Currency has been requested to rule on the eligibility of the $4,100,000 Santa Barbara County Public Safety Authority Revenue Bonds for purchase, dealing in, underwriting and unlimited holding by national banks under paragraph Seventh of 12 U.S.C. 24.

(b) Opinion. (1) The Santa Barbara County Public Safety Authority is a public entity created under the laws of California by an agreement between the city of Santa Barbara and the county of Santa Barbara. Under this agreement the Authority is authorized to develop a site for and to acquire and construct public safety buildings and related facilities to be leased to and operated by the county and to issue bonds to finance this project. The Authority is issuing these bonds for that purpose.

(2) The county, as required by its agreement with the city, has unconditionally promised in the lease rental

agreement to pay annual rentals to the (c) Ruling. It is our conclusion that Authority in an amount sufficient to meet the $1,950,000 Library Lease Revenue annual interest and principal payments Bonds of the Redevelopment Agency of on these bonds as well as other neces- the City of Vallejo are general obligasary expenses. The county which pos- tions of a State or a political subdivision sesses general powers of taxation has thereof under paragraph Seventh of 12 thus committed its faith and credit in U.S.C. 24 and accordingly are eligible for support of the bonds.

purchase, dealing in, underwriting and (c) Ruling. It is our conclusion that unlimited holding by national banks. the $4,100,000 Santa Barbara County (Comptroller's letter dated July 31, 1968.) Public Safety Authority Revenue Bonds [33 F.R. 11060, Aug. 3, 1968] are general obligations of a State or a political subdivision thereof under para

§ 1.222 Los Angeles County-Lawndale graph Seventh of 12 U.S.C. 24 and ac

Building Authority. cordingly are eligible for purchase, deal- (a) Request. The Comptroller of the ing in, underwriting and unlimited hold- Currency has been requested to rule on ing by national banks. (Comptroller's the eligibility of the $300,000 Building letter dated July 31, 1968.)

Authority Revenue Bonds of the Los An[33 F.R. 11060, Aug. 3, 1968]

geles County-Lawndale Building Author

ity for purchase, dealing in, underwrit§ 1.221 Redevelopment Agency of the ing and unlimited holding by national City of Vallejo Library Lease Reve

banks under paragraph Seventh of 12 nue Bonds.

U.S.C. 24. (a) Request. The Comptroller of the (b) Opinion. (1) The Los Angeles Currency has been requested to rule on County-Lawndale Building Authority is the eligibility of the $1,950,000 Library a public entity created under the laws of Lease Revenue Bonds of the Redevelop- California by an agreement between the ment Agency of the City of Vallejo for City of Lawndale and the County of Los purchase, dealing in, underwriting and Angeles. Under this agreement the Auunlimited holding by national banks un- ority is authorized to acquire a site for, der paragraph Seventh of 12 U.S.C. 24. and to construct, a public building to

(b) Opinion. (1) The Redevelopment house City and County offices to be Agency of the city of Vallejo is a public leased to and operated by the City and to body, corporate and politic, created un- issue bonds to finance the project. The der the Community Redevelopment Law Authority is issuing these bonds for that of the State of California. Under the law, purpose. the Agency has power to issue bonds for (2) The City, as required by its agreeany of its corporate purposes. It is en- ment with the County, has uncondigaged in the redevelopment of the Ma- tionally promised in the lease rental rina Vista project area of the city of agreement to pay annual rentals to the Vallejo. The redevelopment plan for this Authority in an amount sufficient to meet area provides for a community civic cen- annual interest and principal payments ter including a library. The Agency is on these bonds as well as other necessary issuing these bonds to finance a part of expenses. The City which possesses genthe cost of construction of the library eral powers of taxation has thus comwhich will be leased to the city. The re- mitted its faith and credit in support of mainder of the cost, amounting to $1,- the bonds. 182,370, will be paid for from Federal and (c) Ruling. It is our conclusion that State grants and from city funds.

the $300,000 Building Authority Revenue (2) Under the lease rental agreement Bonds of the Los Angeles Countythe city has unconditionally promised to Lawndale Building Authority are general pay annual rentals to the Agency in an obligations of a State or a political subamount sufficient to meet annual in- division thereof under paragraph Sevterest and principal payments on these enth of 12 U.S.C. 24 and accordingly are bonds as well as other necessary ex- eligible for purchase, dealing in, underpenses. The city which possesses general writing and unlimited holding by napowers of taxation has thus committed tional banks. (Comptroller's letter dated its faith and credit in support of the Sept. 13, 1968.) bonds.

[33 F.R. 15335, Oct. 16, 1968]

$ 1.223 Southeastern Pennsylvania (c) Ruling. It is our conclusion that Transportation Authority, Rental

the $55 million Southeastern PennsylRevenue Bonds (Philadelphia lease). vania Transportation Authority, Rental (a) Request. The Comptroller of the Revenue Bonds (Philadelphia lease), Currency has been requested to rule on Series of 1968, are general obligations the eligibility of the $55 million South

of a State or a political subdivision eastern Pennsylvania Transportation thereof under paragraph Seventh of 12 Authority, Rental Revenue Bonds (Phila- U.S.C. 24 and accordingly are eligible for delphia lease), Series of 1968, for pur- purchase, dealing in, underwriting and chase, dealing in, underwriting, and unlimited holding by national banks. unlimited holding by national banks un- (Comptroller's letter dated Sept. 17, der paragraph Seventh of 12 U.S.C. 24. 1968.)

(b) Opinion. (1) Southeastern Penn- [33 F.R. 15335, Oct. 16, 1968] sylvania Transportation Authority is a body corporate and politic created in 8 1.224 Export-Import Bank deben. 1964 in accordance with the Metropolitan

tures. Transportation Authorities Act of the

(a) Request. The Comptroller of the Commonwealth of Pennsylvania with Currency has been requested to rule that authority to exercise the public powers medium-term interest bearing debenof the Commonwealth as an agency and tures of the Export-Import Bank of the instrumentality thereof. Under the Act

United States are eligible for purchase, the Authority is authorized to plan, ac- dealing in, underwriting, and unlimited quire, construct, improve, maintain, op- holding by national banks under paraerate, and lease, either as lessor or lessee,

graph Seventh of 12 U.S.C. 24. a transportation system in the Philadel

(b) Opinion. The Export-Import Bank phia metropolitan area, to borrow money of the United States (Eximbank) is auand to issue bonds. The City of Philadel- thorized by law to borrow money in furphia has long been authorized under the

therance of its statutory functions. In laws of Pennsylvania to purchase, con

an opinion of September 30, 1966, adstruct, lease, and operate transit facili

dressed to the Secretary of the Treasury, ties and also to sell or lease such facilities

the Attorney General of the United for operation by others.

States ruled that Eximbank's guaranties (2) The Authority is issuing these

of participation certificates and the other bonds to finance the purchase of the contractural liabilities it is authorized to transit properties of the privately owned incur under its governing statute are Philadelphia Transportation Company. valid general obligations of the United Concurrently with the purchase the Au- States. On this basis we concluded in thority will lease the properties thus ac- our ruling of March 28, 1968 (Part 210 quired to the City of Philadelphia. The of this title) that promissory notes of City will then lease back to the Authority the Export-Import Bank of the United the entire Philadelphia transit system States are obligations of the United consisting of the property acquired from States and eligible for purchase, dealing Philadelphia Transportation Company in, underwriting and unlimited holding and also the property owned by the City by national banks under paragraph itself.

Seventh of 12 U.S.C. 24. (3) Under the lease rental agreement (c) Ruling. It is our conclusion that the City has unconditionally promised to debentures of the Export-Import Bank pay out of revenues of current and suc- of the United States are obligations of cessive years a net rental on the dates the United States and, accordingly, are and in the amounts necessary to meet eligible for purchase, dealing in, underthe debt service requirements on the writing, and unlimited holding by nabonds. The City which possesses general tional banks under paragraph Seventh powers of taxation has thus committed of 12 U.S.C. 24. (Comptroller's letter its faith and credit in support of the dated Sept. 23, 1968.) bonds.

[33 F.R. 15336, Oct. 16, 1968)

$ 1.225 Merced County-Los Banos Pub

tional banks. (Comptroller's letter dated lic Safety Authority.

Oct. 4, 1968.)

(33 F.R. 15336, Oct. 16, 1968] (a) Request. The Comptroller of the Currency has been requested to rule on $ 1.226 Seal Beach Administration the eligibility of the $400,000 Merced Building Authority. County-Los Banos Public Safety Author

(a) Request. The Comptroller of the ity, Public Safety Facilities, 1968 Revenue

Currency has been requested to rule on Bonds for purchase, dealing in, under

the eligibility of the $450,000 Seai Beach writing, and unlimited holding by na

Administration Building Authority Revtional banks under paragraph Seventh

enue Bonds for purchase, dealing in, unof 12 U.S.C. 24.

derwriting and unlimited holding by na(b) Opinion. (1) The Merced County

tional banks under paragraph Seventh Los Banos Public Safety Authority is a

of 12 U.S.C. 24. public entity created under the laws of

(b) Opinion. (1) The Seal Beach AdCalifornia by an agreement between the

ministration Building Authority is a pubCity of Los Banos and the County of

lic entity created under the laws of CaliMerced. Under this agreement the

fornia by an agreement between the City Authority is authorized to acquir a site

of Seal Beach and Orange County Sanifor and to acquire, construct and lease

tation District No. 4. Under this agreepublic safety facilities for the City and

ment the Authority is authorized to acthe County and to issue bonds to finance

quire and construct an administration such projects. The Authority is issuing

building and related facilities for City these bonds to reimburse the City for a

and District services to be leased to and site for and to finance the construction

operated by the City and to issue bonds to of a public safety building and related

finance this project. The Authority is facilities which will be leased to the City.

issuing these bonds for that purpose. The building will house the City police

(2) The City, as required by its agreedepartment and will include space and

ment with the District, has unconditionfacilities to be shared by the County

ally promised in the lease rental agreesheriff.

ment to pay annual rentals to the Au(2) The City has unconditionally thority in an amount sufficient to meet agreed with the County to pay annual

annual interest and principal payments rentals to the Authority in an amount

on the bonds as well as other necessary sufficient to meet the annual interest and expenses. The City which possesses genprincipal payments on these bonds as eral powers of taxation has thus comwell as other necessary expenses. The

mitted its faith and credit in support of City which possesses general powers of

the bonds. taxation has thus committed its faith (c) Ruling. It is our conclusion that and credit in support of the bonds. the $450,000 Seal Beach Administration

(c) Ruling. It is our conclusion that Building Authority Revenue Bonds are the $400,000 Merced County-Los Banos general obligations of a State or a politiPublic Safety Authority, Public Safety

cal subdivision thereof under paragraph Facilities, 1968 Revenue Bonds are gen

Seventh of 12 U.S.C. 24 and accordingly eral obligations of a State or a political

are eligible for purchase, dealing in, unsubdivision thereof under paragraph derwriting, and unlimited holding by naSeventh of 12 U.S.C. 24 and accordingly tional banks. (Comptroller's letter dated are eligible for purchase, dealing in, un

Oct. 7, 1968.) derwriting and unlimited holding by na- (33 F.R. 15336, Oct. 16, 1968]

PART 2-NATIONAL BANKS ACTING

AS INSURANCE AGENTS AND AS
BROKERS OR AGENTS IN MAKING
OR PROCURING LOANS ON REAL

ESTATE Sec. 2.1 Statutory requirements to be com

plied with by national bank desiring

to act as insurance agents. 2.2 Regulations for national banks which

many undertake to act as agents for

insurance companies. 2.3 Statutory requirements to be compiled

with by national bank desiring to act as broker or agent in making or pro

curing loans on real estate. 2.4 Regulations for national bank acting as

broker or agent in making or procur

ing loans on real estate. 2.5 Application forms to be executed by ap

plicants when national bank acts as

broker for the placing of loans. AUTHORITY: The provisions of this Part 2 issued under sec. 13, 39 Stat. 753; 12 U.S.C. 82, 347.

SOURCE: The provisions of this Part 2 contained in Regulations, Dec. 1, 1916, unless otherwise noted. § 2.1 Statutory requirements to be com

plied with by national bank desiring

to act as insurance agent. (a) The bank must be located in a place the population of which does not exceed 5,000 as shown by the last preceding decennial census.

(b) The insurance company for which the bank acts as agent must have been authorized by the authorities of the State in which the bank is located to do business in that State.

(c) The activities of the bank as such agent must be restricted to the soliciting and selling of insurance and the collection of premiums on policies issued by the insurance company.

(d) The bank may receive for services so rendered such lawful fees or commissions as may be agreed upon between the bank and the insurance company for which it may act as agent.

(e) The bank is prohibited from assuming or guaranteeing the payment of any premium on insurance policies issued, through its agency, by its principal.

(f) The bank is prohibited from guaranteeing the truth of any statement made by an assured in filing his application for insurance.

(g) The powers conferred are to be exercised under such regulations as may be prescribed by the Comptroller of the Currency. § 2.2 Regulations for national banks

which may undertake to act as agents

for insurance companies. (a) Each contract of agency must be formally accepted by the board of directors of the agent bank by a resolution spread upon the minutes in the following form:

Be it resolved that the contract of agency entered into on

..19.-between the

Insurance Company and the

National Bank of by

presi. dent (or vice president) and cashier, a copy of which is on file in this bank, is hereby ratified and approved.

(b) A certified copy of such resolution, attested by the president or vice president and by the cashier and by a majority of the directors of the bank, must be forwarded to this office on forms to be furnished by this office.

(c) There should be on file in the bank, available for inspection by the Examiner, the following documents:

(1) An authoritative statement showing the population of the town according to the last preceding decennial census.

(2) A proper certificate from the authorities of the State in which the bank is located showing as to each insurance company for which the bank is acting as agent that such company has received authority from the said State to transact business in that State.

(3) A proper certificate or other writing of each insurance company for which the bank acts, authorizing the bank to act as its agent, setting forth that the bank does not guarantee the payment of any premium on insurance policies issued through its agency by its principal, and stating that the bank is not to be held responsible for the truth of any statement made by an assured in filing his application for insurance.

(4) Copies of all reports for the previous five years made by the agent bank to each insurance company which it represents.

(d) The bank will be required to keep a record as to each company for which it acts as agent, showing: For fire in

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