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6146 Federal Register / Vol. 62, No. 28 / Tuesday, February 11, 1997 / Proposed RulesBoard hereby certifies that the proposedrule would not have a significanteconomic impact on a substantialnumber of small entities within themeaning of the Regulatory FlexibilityAct (5 U.S.C. 601 et seq.). Theprovisions of the Regulatory FlexibilityAct relating to an initial and finalregulatory flexibility analysis (5 U.S.C.603 and 604) are not applicable.List of Subjects in 12 CFR Part 328Advertising, Bank deposit insurance,Savings associations, Signs andsymbols.For the reasons stated in thepreamble, the Board of Directors of theFDIC proposes to amend 12 CFR part328 as follows:PART 328—ADVERTISEMENT OFMEMBERSHIP1. The authority citation for part 328is revised to read as follows:Authority: 12 U.S.C. 1818(a), 1819,1828(a).2. Section 328.0 is revised to read asfollows:§ 328.0 Scope.This part 328 describes the officialbank sign and the official savingsassociation sign, and prescribes theiruse by insured depository institutions. Italso prescribes the official advertisingstatement insured depositoryinstitutions must include in certainadvertisements. Finally, it prohibits theuse of the official advertising statementand similar statements inadvertisements concerning nondepositinvestment products. For purposes ofthis part 328, the term ‘‘insureddepository institution’’ includes insuredbranches of a foreign bank. Insureddepository institutions which maintainoffices that are not insured in foreigncountries are not required to include theadvertising statement in advertisementspublished in foreign countries.3. Section 328.2 is revised to read asfollows:§ 328.2 Procurement and display of officialsigns.(a) Display—(1) Official sign. Eachinsured depository institution shallcontinuously display its official sign atthe locations specified in paragraph(a)(2)(i) of this section, as follows:(i) Insured banks. At the option of theinsured bank, its official sign is eitherthe official bank sign or the officialsavings association sign.(ii) Insured savings associations.Insured savings associations shalldisplay the official savings associationsign as provided herein. An insuredsavings association shall not display theofficial bank sign at its principal placeof business or at any of its branches.(2) Locations—(i) Required locations.Except as provided in paragraph(a)(2)(ii) of this section, an insureddepository institution shall display itsofficial sign at each station or windowwhere insured deposits are usually andnormally received in the depositoryinstitution’s principal place of businessand in all its branches.(ii) Other locations—(A) Within theinstitution. An insured depositoryinstitution may display its official signin other locations within the insureddepository institution in other sizes,colors, or materials.(B) Other facilities. An insureddepository institution is permitted, butis not required, to display its officialsign on remote service facilitiesincluding automated teller machines,cash dispensing machines, point-of-saleterminals, and other electronic facilitieswhere deposits are received. If aninsured depository institution displaysits official sign at a remote servicefacility, and if there are any noninsuredinstitutions that share in the remoteservice facility, any insured depositoryinstitution that displays its official signmust clearly show that the sign refersonly to a designated insured depositoryinstitution(s).(3) Newly insured institutions—(i)Initial grace period. A depositoryinstitution becoming an insureddepository institution shall not berequired to display its official sign untiltwenty-one (21) days after its first dayof operation as an insured depositoryinstitution.(ii) Early display permitted. Aninsured depository institution maydisplay its official sign prior to the datedisplay is required.(b) Obtaining signs—(1) Procurementfrom the FDIC—(i) Cost; design. Aninsured depository institution mayprocure the appropriate official signsfrom the Corporation for official use atno charge.(ii) Order blanks. The Corporationshall, upon request, furnish an orderblank to an insured depositoryinstitution for use in procuring officialsigns.(iii) Safe harbor rule. Any insureddepository institution which promptly,after the receipt of an order blank, fillsit in, executes it, and properly directsand forwards it to the Federal DepositInsurance Corporation, Washington,D.C. 20429, shall not be deemed to haveviolated this section on account of notdisplaying an official sign, or signs,unless the insured depositoryinstitution shall omit to display suchofficial sign or signs after receiptthereof.(2) Procurement from other sources.Insured depository institutions mayprocure official signs or signs reflectingvariations in size, colors, or materialsfrom commercial suppliers.(c) Receipt of deposits at same teller’sstation or window as noninsuredinstitution. An insured depositoryinstitution may not receive deposits atany teller’s station or window whereany noninsured institution receivesdeposits or similar liabilities, except aremote service facility as defined in§ 303.0(b)(18) of this chapter.(d) Required changes in signs. TheCorporation may require any insureddepository institution, upon at least 30days’ written notice, to change thewording of its official signs in a mannerdeemed necessary for the protection ofdepositors or others.4. Section 328.3 is revised to read asfollows:§ 328.3 Official advertising statement andmanner of use by insured depositoryinstitutions.(a) Mandatory use. Each insureddepository institution shall include theofficial advertising statement,prescribed in paragraph (b) of thissection, in all of its advertisementsexcept as provided in paragraphs (c) and(d) of this section.(1) An insured depository institutionis not required to include the officialadvertising statement in itsadvertisements until thirty (30) daysafter its first day of operation as aninsured depository institution.(2) In cases where the Board ofDirectors of the Federal DepositInsurance Corporation shall find theapplication to be meritorious, that therehas been no neglect or willful violationin the observance of this section andthat undue hardship will result byreason of its requirements, the Board ofDirectors may grant a temporaryexemption from its provision to aparticular depository institution uponits written application setting forth thefacts. For the procedure to be followedin making such application see § 303.8of this chapter.(3) In cases where advertising copynot including the official advertisingstatement is on hand on the date therequirements of this section becomeoperative, the insured depositoryinstitution may cause the officialadvertising statement to be included byuse of a rubber stamp or otherwise.(4) When a foreign depositoryinstitution has both insured andnoninsured U.S. branches, thedepository institution must identify