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(2) The evidence of rehabilitation of the person since the date of his conviction (parole, suspension of sentence, and reputation of the person since conviction will be given consideration. Participation by the person in programs on the national or state levels to hire and retrain the hard-core unemployed also will be given consideration.)
(3) The age of the person at the time of his conviction.
K. A. RANDALL, Chairman.
FEDERAL DEPOSIT INSURANCE CORPORATION,
Memorandum to: Supervising examiners, Federal Deposit Insurance Corporation.
The instructions for reporting bank officer loans contained in our memorandum of February 13, 1967, have resulted in the reporting of substantially all loans found during examinations. In order to reduce the volume being reported, it is believed desirable to establish uniform reporting limitations. Convenient cut-off points are provided by recently enacted legislation (Public Law 90-44 which amends Section 22(g) of the Federal Reserve Act by placing limitations on loans by member banks to their own executive officers). By analogy, henceforth only bank officer loans over $5,000 should be reported. Furthermore, although over $5,000, such loans need not be reported if they are not over $30,000 and secured by a first lien on a dwelling owned and used by the officer as his residence or are not over $10,000 and used to finance the education of the officer's children.
The above cited reporting limitations do not apply to loans collateralled by bank stock, which will continue to be reported regardless of amount.
Other instructions contained in our memorandum of February 13, 1967 will continue in effect, except that copies of Forms DE-24 and DE-25 need not be forwarded to Washington unless, in the opinion of the District Office, the loans are such (because of size or volume, unusual elements, or other factors) as to warrant more than ordinary attention.
EDWARD H. DEHORITY, Chief, Division of Examination.
FEDERAL DEPOSIT INSURANCE CORPORATION,
Memorandum to: Regional Directors.
Subject: Reporting procedures for changes in bank ownership and loans secured by bank stock.
The form FDIC 6620/6 has been designed to facilitate internal processing of changes in control and, to a lesser extent, loans secured by bank stock. Since a portion of the form 6620/6 is transmitted to the Secretary of the Corporation and then becomes public information, instructions for the preparation and processing of the form are deemed necessary.
All forms 6620/6 reporting changes in control, subsequent loans or management changes should be forwarded to this office (Attention: Intelligence Unit) and should be processed as follows:
(1) Do not include attachments with the original (perforated) form. (2) Include the original copy of all attachments with the first Xerox copy of the form.
(3) Include a copy of all attachments with the second Xerox copy of the form.
List only the names of those individuals or organizations relinquishing or acquiring control, with an indication of the number of other share-holders (e.g., 10 others) involved in the transaction, in the "Names of Sellers" and "Names of Purchasers" columns. The number of shares bought or sold by each shareholder should not be shown in these columns although you may wish to have such
individual information available in the attachments. General information regarding the parties to the transaction should be included, where necessary, in the section captioned "Other Information . . . " rather than in these two columns.
When a partnership, corporation, voting trust, one-bank holding company, or other similar organization is a party to the transaction, that name should be listed. The names of the principals of these organizations should not be listed, as buyers or sellers, in that part of the form above the perforation. The names of the principals should be listed in the "Names of Beneficial Owners . . section, if an organization is a purchaser, with the exception that the principals of a registered holding company need not be so listed.
Where the change of control is due to the transfer of stock of a holding company, the name and location of both the holding company and the bank it controls will be listed in the "Name and Location of Bank Whose Stock is Involved." All applicable sections of the form should then be completed as regards the holding company rather than the bank, although the names of those individuals who will replace bank management should be listed in the "Other Information..." section.
Each form 6620/6 submitted will contain, in the "Other Information . . .” section, a statement as to whether a change in control was effected or whether the report is being submitted to reflect a substantial change in stock ownership but which does not affect control.
In reports on insured nonmember banks, the date and the method by which the information was passed along to the other agencies must be given and it is imperative that there be a statement of the "Action Taken or Planned" in all cases. If the circumstances surrounding the change in control are such that no further investigation is deemed warranted it should be so stated, and the basis of this judgment should be clearly set forth. Where further investigation is deemed warranted, this too should be indicated and the report of investigation should subsequently be submitted to this office in memorandum form in duplicate. This office should also be apprised of significant interim developments.
EDWARD J. RODDY,
FEDERAL DEPOSIT INSURANCE CORPORATION,
Memorandum to: Regional Directors
Effective with all new bank applications received after this date, Regional Offices are requested to forward immediately to my office two copies of each of the attached FDIC Form 6700/1 and 6700/2 prepared for each proposed officer, director, employee and other stockholder subscribing to 5% or more of the proposed bank's stock.
Upon receipt in the Washington Office, the original copy will be sent to Federal Bureau of Investigation. The results of the FBI name check will be made available to you as soon as possible, but processing of the application and your recommendation should not be delayed for this reason.
The Federal Bureau of Investigation advises that, to aid identification, it should have as a minimum the date and place of birth and Social Security or IRS_identification number, which should usually be available from the individual Form 83 (Revised 1968) filed by prospective directors and officers. In order to obtain necessary identifying information, it will now become necessary that non-director subscribers to 5% or more of the bank's stock be asked to submit financial statements (Form 83) along with the proposed directors.
My office is also prepared to initiate name check searches with the Internal Revenue Service, but this will not be done on a routine basis unless there is reason to suspect irregularities. Should you desire an IRS check on any new bank proponent, please advise.
An initial supply of Forms 6700/1 and 6700/2 will be sent to you in a few days. Additional forms may be ordered in the future from the Corporation's supply JOHN L. FLANNERY, Director.
FEDERAL HOME LOAN BANK BOARD
The Federal Home Loan Bank Board indicated in its response that it maintains no data banks on individuals; therefore, a Subcommittee Analysis is not included.
The Federal Home Loan Bank Board response of March 6, 1973 is reproduced below.
Hon. SAM J. ERVIN, Jr.
FEDERAL HOME LOAN BANK BOARD,
DEAR SENATOR ERVIN: I have received your letter of February 5, 1973 advising this Agency that the Constitutional Rights Subcommittee is conducting a government-wide survey of Federally-controlled data banks containing personal information about individuals for statistical, administrative or intelligence purposes.
After inquiring into the policies and procedures of our Information Systems Division-the data collection or processing unit of the Federal Home Loan Bank Board, I can assure you that it is this Agency's policy not to collect, process or maintain files of the type described in your survey. The Federal Home Loan Bank Board is not planning to automate, film or computerize any such data nor will we attempt to obtain such data from other Government agencies.
We appreciate your Committee's efforts and agree in your concern for information that may enable you to better determine the need for legislation in this area. Should the Board institute any data banks such as you describe, we will be most cooperative in furnishing the information you require.
With kindest regards, I remain
CARL O. KAmp, Jr.
There were no attachments submitted with the Federal Home Loan Bank Board response.
FEDERAL MARITIME COMMISSION
The Federal Maritime Commission indicated in its response that it maintains no data banks on individuals; therefore, a Subcommittee A nalysis is not included.
The Federal Maritime Commission response of January 7, 1971 is reproduced below.
FEDERAL MARITIME COMMISSION,
Hon. SAM J. ERVIN, Jr.,
DEAR SENATOR ERVIN: I am pleased to respond to your inquiry of December 15, 1970 relative to your study of computers, privacy and constitutional rights with current emphasis on data banks containing personal information about individuals.
This Commission does not now nor does it contemplate the collection and storage in a data bank of information "(1) for surveillance of demonstrators and others involved in political activities either for or against various governmental policies; or (2) on persons who are either no longer dealing with the agency or (3) on persons who have not yet dealt with it." In fact, the mission of the Commission does not include the use or need of such information and therefore we have no computerized data banks containing information on individuals. The answers to your questions one through nineteen are, therefore, in the negative or the questions are not applicable under the circumstances.
For your information, the Commission has and does use computer applications and contemplates further use of such where found feasible but none have or will involve information within the scope of your inquiry. We currently use limited time on General Services Administration computers on a reimbursable basis in connection with the following:
1. An index of tariffs on file with the Commission pursuant to Section 18, Shipping Act, 1916 and Section 2, Intercoastal Shipping Act of 1933. 2. An index of carrier agreements that have been filed with and approved by the Commission pursuant to Section 15, Shipping Act, 1916.
3. An index of Ocean Freight Forwarders licensed by the Commission pursuant to Section 44, Shipping Act, 1916.
We contemplate the possible use of similar indexes that will identify by name and address the owners or operators, the insurers or guarantors and the name, type, tonnage and flag of vessels covered by P.L. 91-224, the Federal Water Pollution Control Act as amended by the Water Quality Improvement Act of 1970. Personal data as to individuals would not be needed nor accumulated. I trust the above is responsive to your inquiry but should you desire additional detail, I will be most happy to provide it.
HELEN DELICH BENTLEY,
There were no attachments submitted with the Federal Maritime Commission response.