Guidance on Change in Bank Control Procedures
December 3, 2003
Circular No. 11558

To All Depository Institutions and Others Concerned in the Second Federal Reserve District:

The Federal Reserve Board emphasized the importance of understanding the requirements for filing a notice under the Change in Bank Control Act in a supervisory letter (SR 03-19) dated November 19, 2003.

The letter was issued in response to recent inadvertent incidents of unauthorized changes of ownership involving state member banks and bank holding companies. The Board recognizes the complexity of an ownership position sometimes does not lend itself to easy interpretation of the requirements to file a notice. In situations in which it is unclear whether a notice is required, the potential filer(s) or the affected state member bank or bank holding company is encouraged to contact staff at a Reserve Bank or the Board for guidance.

The attached SR letter provides more details on conditions under which an individual or other affected party should contact the Federal Reserve regarding the filing of a notice under the Change in Bank Control Act and the Board's implementing regulations. This information should be made available to any shareholder currently holding or approaching a 10% or greater interest in the company's shares and any individual or group of individuals that contacts the bank or bank holding company about acquiring a 10% or greater interest.

SR letter (03-19) OFFSITE

Jay B. Bernstein
Bank Supervision Officer
Policy and Applications