86-3

December 19, 1986

Re: ________

Dear Ms. ________:

This is in reference to your letter of September 22, 1986 to Mr. Ken Machen.

The purpose of this letter is to advise you that ________ (“________“) is a regulated subsidiary of ________. As a regulated subsidiary, pursuant to Section 10.19104 of the Banking Regulations, ________ is subject to examination by the Superintendent of Banks in the same manner as its parent, ________. ________ is also subject to further supervision by the Superintendent in that ________ must also file reports with the Superintendent as the Superintendent may require under Section 10.19105 of the Banking Regulations; have its affairs audited as and when the Superintendent may require under Section 10.19106 of the Banking Regulations; and is also subject to Regulations to the same extent as ________.

I trust this responds to your request for additional Information. Please contact us if you have any further questions.

Very truly yours,

LOUIS CARTER
Superintendent of Banks

By Original signed by Diana H. Nishiura

DIANA H. NISHIURA
Counsel

DHN:ma