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U.S. BANCORP: U.S. COURT OF APPEALS AFFIRMS NATIONAL BANKS' RIGHT TO MARKET INSURANCE PRODUCTS

 PORTLAND, Ore., July 19 /PRNewswire/ -- U.S. Bancorp today issued the following release:
 The U.S. Court of Appeals on Friday upheld the Comptroller of the Currency's interpretation of section 92 of the National Bank Act, confirming that national banks located in small towns are free to solicit and serve insurance customers without geographic limitation.
 This ruling overturns a 1992 decision by the Court of Appeals that U.S. Bancorp (NASDAQ: USBC) and other nationally-chartered banks did not have the legal authority to sell insurance.
 "We are delighted with this ruling, which allows us to continue to provide insurance products to our customers," said Jeff Grubb, president of U.S. Bank Insurance Agency, a U.S. National Bank of Oregon subsidiary.
 "U.S. Bank Insurance Agency plans to continue selling auto, homeowners and life insurance and enhance our marketing effort by offering additional insurance products," he added.
 The case stems from legislation passed by Congress in 1916, which authorized nationally-chartered banks to sell insurance in towns with a population of less than 5,000.
 In 1986, U.S. National Bank of Oregon requested authorization from the U.S. Comptroller of the Currency for its Banks office to sell insurance on a nationwide basis. The Independent Insurance Agents of America challenged bank insurance sales outside of rural areas.
 Today's ruling, written by Circuit Judge Buckley, upheld the Comptroller's interpretation of section 92 of the National Bank Act as imposing no geographic limit on the insurance market so that, as long as it is located in a small town, a bank is free to solicit and serve insurance customers everywhere.
 U.S. Bancorp is the largest bank holding company headquartered in the Northwest, with assets of $20.8 billion as of June 30, 1993. U.S. Bancorp is one of the nation's 35 largest bank holding companies, and has consistently ranked among the top tier of these companies in performance and capital strength.
 U.S. Bancorp's bank subsidiaries include U.S. Bank of Oregon; U.S. Bank of Washington; U.S. Bank of California; U.S. Bank of Nevada; and U.S. Bank of Idaho. Other financial services businesses include U.S. Bancorp Mortgage Company and U.S. Bancorp Securities and Trust Group.
 -0- 7/19/93
 /EDITOR'S NOTE: For a copy of today's U.S. Court of Appeals Ruling or for more information on this case, please contact Jeff Grubb, U.S. Bank Insurance Agency, at 503-275-3311/
 /CONTACT: Jeff Grubb of U.S. Bank Insurance Agency 503-275-3311/
 (USBC)


CO: U.S. Bancorp; U.S. Bank Insurance Agency ST: Oregon IN: FIN SU:

JH -- SE007 -- 2887 07/19/93 08:50 EDT
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Publication:PR Newswire
Date:Jul 19, 1993
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