Federal Election Commission Main Page
June 26, 1987
CERTIFIED MAIL
RETURN RECEIPT REQUESTED
ADVISORY OPINION 1987-14
James S. Blewett
Senior Vice President
The First National Bank of
Shreveport
400 Texas Street
Post Office Box 21116
Shreveport, Louisiana 71154-0001
Dear Mr. Blewett:
This responds to your letter of May 8, 1987, requesting an
advisory opinion on behalf of the First National Bank of
Shreveport ("the Bank") concerning application of the Federal
Election Campaign Act of 1971, as amended ("the Act"), and
Commission regulations to the Bank's sponsorship of a political
action committee to be used solely for the purpose of financing
political activity in connection with state and local elections.
You state that the Bank is a national banking association
organized under the National Banking Act. The Bank is
contemplating forming and sponsoring a political action committee
which will be prohibited by its articles of association from
supporting candidates for Federal office. The political action
committee will be formed solely for the purpose of financing
political activity in connection with state and local elections.
The Bank will pay the cost of establishing, administering and
soliciting contributions to the committee; it will make no direct
contribution in connection with any election to any office
whether local, state, or Federal. You ask if such a committee is
subject to the organization, registration, recordkeeping,
contribution limitations, and solicitation and contribution
restrictions of the Act.
Under the Act and regulations, a national bank is prohibited
from making a contribution or expenditure in connection with any
election to any political office, including local, state or
Federal offices. 2 U.S.C. SS 441b(a), 11 CFR 111.2(a). The Act
also includes an exception to this prohibition which allows
payment of the costs of establishment, administration, and
solicitation of contributions to a separate segregated fund to be
used for political purposes. 2 U.S.C. SS 441b(b)(2)(C).
Commission regulations explain that national banks may engage in
activities specifically permitted under Part 114 to the extent
the activity is not prohibited by other law.*/ 11 CFR
114.2(a)(1). Therefore, a national bank is permitted to
establish and sponsor a separate segregated fund as set forth in
2 U.S.C. SS 441b(b)(2)(C) and 11 CFR 114.5. See Advisory Opinion
1979-42 and the Commission's response to Advisory Opinion Request
1976-109.
Since the Bank's fund will not be making "contributions" or
"expenditures" to influence any election for Federal office, it
would not be a "political committee" and thus not subject to the
organization, registration, reporting, and recordkeeping
provisions or to the contribution limits of the Act. 2 U.S.C.
SS 431(4), SS 431(8), SS 431(9), SS 441a. Commission regulations
specifically exempt a separate segregated fund from registering
with the Commission if it is established solely for the purpose
of financing political activity in state and local elections.
See 11 CFR 102.1(c) and 2 U.S.C. SS 433. Because the proposed
committee would not be a "political committee," it would also be
exempt from the recordkeeping, reporting, and contribution limit
provisions of 2 U.S.C. SS 432, SS 434 and SS 441a. In addition, the
requirements of 2 U.S.C. SS 432(e)(5) as to the name of a separate
segregated fund would not apply in this case since the Bank's
committee will not be a "political committee" under Commission
regulations. 11 CFR 102.14(c).
Because this is the separate segregated fund of a national
bank, it is subject to the solicitable class restrictions, the
voluntary contribution requirements, and the solicitation notice
provisions contained in 2 U.S.C. SS 441b(b)(3) and (b)(4) even
though it is only financing state and local activity. See 11 CFR
114.5(a), (b), and (g); see also 11 CFR 114.2(a)(2).
*/ The Comptroller of the Currency, in Banking Circular #137
(BC-137), dated February 19, 1980, has indicated that national
banks are permitted to form separate segregated funds for
political purposes under 2 U.S.C. SS 441b(b)(2)(C).
This response constitutes an advisory opinion concerning
application of the Act, or regulations prescribed by the
Commission, to the specific transaction or activity set forth in
your request. See 2 U.S.C. SS 437f.