§ 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 Facilities 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 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 $4,100,000 Santa Barbara County Public Safety Authority 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 31, 1968.)

[33 F.R. 11060, Aug. 3, 1968]

§ 1.221

Redevelopment Agency of the City of Vallejo Library Lease Revenue Bonds.

(a) Request. The Comptroller of the Currency has been requested to rule on the eligibility of the $1,950,000 Library Lease Revenue Bonds of the Redevelopment Agency of the City of Vallejo for purchase, dealing in, underwriting and unlimited holding by national banks under paragraph Seventh of 12 U.S.C. 24.

(b) Opinion. (1) The Redevelopment Agency of the city of Vallejo is a public body, corporate and politic, created under the Community Redevelopment Law of the State of California. Under the law, the Agency has power to issue bonds for any of its corporate purposes. It is engaged in the redevelopment of the Marina Vista project area of the city of Vallejo. The redevelopment plan for this area provides for a community civic center including a library. The Agency is issuing these bonds to finance a part of the cost of construction of the library which will be leased to the city. The remainder of the cost, amounting to $1,182,370, will be paid for from Federal and State grants and from city funds.

(2) Under the lease rental agreement the city has unconditionally promised to pay annual rentals to the Agency in an amount sufficient to meet 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 $1,950,000 Library Lease Revenue Bonds of the Redevelopment Agency of the City of Vallejo 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 31, 1968.) [33 F.R. 11060, Aug. 3, 1968]

§ 1.222 Los Angeles County-Lawndale Building Authority.

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

(b) Opinion. (1) The Los Angeles County-Lawndale Building Authority is a public entity created under the laws of California by an agreement between the City of Lawndale and the County of Los Angeles. Under this agreement the Authority is authorized to acquire a site for, and to construct, a public building to house City and County offices to be leased to and operated by the City and to issue bonds to finance the project. The Authority is issuing these bonds for that purpose.

(2) The City, as required by its agreement with the County, 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 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 Building Authority Revenue Bonds of the Los Angeles CountyLawndale Building Authority 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 Sept. 13, 1968.)

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

§ 1.223

Southeastern Pennsylvania Transportation Authority, Rental Revenue Bonds (Philadelphia lease).

(a) Request. The Comptroller of the Currency has been requested to rule on the eligibility of the $55 million Southeastern Pennsylvania Transportation Authority, Rental Revenue Bonds (Philadelphia lease), Series of 1968, for purchase, dealing in, underwriting, and unlimited holding by national banks under paragraph Seventh of 12 U.S.C. 24.

(b) Opinion. (1) Southeastern Pennsylvania Transportation Authority is a body corporate and politic created in 1964 in accordance with the Metropolitan Transportation Authorities Act of the Commonwealth of Pennsylvania with authority to exercise the public powers of the Commonwealth as an agency and instrumentality thereof. Under the Act the Authority is authorized to plan, acquire, construct, improve, maintain, operate, and lease, either as lessor or lessee, a transportation system in the Philadelphia metropolitan area, to borrow money and to issue bonds. The City of Philadelphia has long been authorized under the laws of Pennsylvania to purchase, construct, lease, and operate transit facilities and also to sell or lease such facilities for operation by others.

(2) The Authority is issuing these bonds to finance the purchase of the transit properties of the privately owned Philadelphia Transportation Company. Concurrently with the purchase the Authority will lease the properties thus acquired to the City of Philadelphia. The City will then lease back to the Authority the entire Philadelphia transit system consisting of the property acquired from Philadelphia Transportation Company and also the property owned by the City itself.

(3) Under the lease rental agreement the City has unconditionally promised to pay out of revenues of current and successive years a net rental on the dates and in the amounts necessary to meet the debt service requirements on the bonds. The City which possesses general powers of taxation has thus committed its faith and credit in support of the bonds.

(a) Request. The Comptroller of the Currency has been requested to rule that medium-term interest bearing debentures of the Export-Import Bank of the United States are eligible for purchase, dealing in, underwriting, and unlimited holding by national banks under paragraph Seventh of 12 U.S.C. 24.

(b) Opinion. The Export-Import Bank of the United States (Eximbank) is authorized by law to borrow money in furtherance of its statutory functions. In an opinion of September 30, 1966, addressed to the Secretary of the Treasury, the Attorney General of the United States ruled that Eximbank's guaranties of participation certificates and the other contractural liabilities it is authorized to incur under its governing statute are valid general obligations of the United States. On this basis we concluded in our ruling of March 28, 1968 (Part 210 of this title) that promissory notes of the Export-Import Bank of the United States are obligations of the United States and eligible for purchase, dealing in, underwriting and unlimited holding by national banks under paragraph Seventh of 12 U.S.C. 24.

(c) Ruling. It is our conclusion that debentures of the Export-Import Bank of the United States are obligations of the United States and, accordingly, are eligible for purchase, dealing in, underwriting, and unlimited holding by national banks under paragraph Seventh of 12 U.S.C. 24. (Comptroller's letter dated Sept. 23, 1968.)

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

§ 1.225

Merced County-Los Banos Public Safety Authority.

(a) Request. The Comptroller of the Currency has been requested to rule on the eligibility of the $400,000 Merced County-Los Banos Public Safety Authority, Public Safety 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 CountyLos Banos Public Safety Authority is a public entity created under the laws of California by an agreement between the City of Los Banos and the County of Merced. Under this agreement the Authority is authorized to acquire a site for and to acquire, construct and lease public safety facilities for the City and the County and to issue bonds to finance such projects. The Authority is issuing these bonds to reimburse the City for a site for and to finance the construction of a public safety building and related facilities which will be leased to the City. The building will house the City police department and will include space and facilities to be shared by the County sheriff.

(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 $400,000 Merced County-Los Banos Public Safety Authority, Public Safety 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 na

(a) Request. The Comptroller of the Currency has been requested to rule on the eligibility of the $450,000 Seal Beach Administration Building 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 Seal Beach Administration Building Authority is a public entity created under the laws of California by an agreement between the City of Seal Beach and Orange County Sanitation District No. 4. Under this agreement the Authority is authorized to acquire and construct an administration building and related facilities for City and District services to be leased to and operated by the City and to issue bonds to finance this project. The Authority is issuing these bonds for that purpose.

(2) The City, as required by its agreement with the District, 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 the 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 $450,000 Seal Beach Administration Building Authority 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 Oct. 7, 1968.)

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

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 procuring loans on real estate.

2.4 Regulations for national bank acting as broker or agent in making or procuring loans on real estate.

2.5 Application forms to be executed by applicants 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 complied 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.

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