Newspaper article THE JOURNAL RECORD

Vernon, Texas Savings & Loan Opposes Proposed Rule / concerning Deposits

Newspaper article THE JOURNAL RECORD

Vernon, Texas Savings & Loan Opposes Proposed Rule / concerning Deposits

Article excerpt

The proposed adoption of a new rule affecting Oklahoma agencies of savings and loan associations based outside of Oklahoma was opposed Thursday before the Oklahoma Savings and Loan Board by Vernon Savings and Loan Association of Vernon, Texas.

The rule would deny the agency authority to receive deposits, although the savings and loan code in Oklahoma does give it the authority, said Leonard Gasperin, senior vice president of Vernon Savings & Loan, which operates an agency in Frederick.

The matter was tabled by the board, allowing the Oklahoma Bankers Association to submit written arguments in response to the opposition by the Vernon firm. The board will address the matter once again in late November or early December.

Currently, only two out-of-state thrifts operate agencies in Oklahoma. Although the Oklahoma Legislature passed laws in 1970 barring out-of-state associations from doing business in Oklahoma, thosealready holding certificates of authority were allowed to continue providing services through an agent.

Under the proposed rule, certificates of authority issued for an agency to do business, would not permit receipts of deposits to savings accounts or investment securities.

The agency would not be authorized to imply directly or indirectly through advertising that it is an agent or representative with whom savings accounts and investments may be discussed. The rule would not authorize distribution of any of the advertising material concerning savings accounts of the parent association.

In addition, the rule would require the agency to clearly show it is an agency, rather than a branch of a savings institution, by conforming signage to display the name of the agent up front, then state the name of the affiliation.

Gasperin said the rule would have a negative impact on the agency. He objected to the treatment of signage and advertising in the rule, arguing that Vernon itself is ultimately responsible for paying out funds from deposits.

"The public and potential depositors have a strong interest in knowing Vernon is affiliated with the agency," he said. "The potential customer might assume we are entrusting funds to the individualagent rather than the association.

Trevor Swett III, a Washington, D.C., attorney representing Vernon's agency in Frederick, said the proposed rule is a clear threat to the continued operation of the agency. …

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