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Show The National Enterprise. Starch 30, 1977 Page five Bank News NOW Accounts Could Impact Profits, Competition . Request Withdrawn n Financial Center withdrew its Citicorp for to application permission extend services to include thrift certificates at its Vernal and Orem branch offices. The request, according to area director, Steve Farkas, is a result of internal action. Farkas declined further comment. He said the company has plans to resubmit its applications, but added he could not project when. Person-to-Perso- AFCO Thrift and Loan Corp. has applied for permission to establish an industrial loan corporation and issue thrift certificates. The proposed office would serve the areas between 9th Hast and Main Street on South Temple or between South Temple and 4th South on Main or State Street. Organizers of the company include Grant C. Affleck, Carvel R. Shaffer, Robert B. Beckstead and William Pulsipher. Affleck is president and chairman of the board of AFCO Corp., the parent company of CDM Mortgage Corp. and AFCO Realty. AFCO Realty is the developer of Glenmoor Village, an $8 million project in South Jordan, and Sherwood Hills, a $3 million project in Brigham City. Shaffer is executive vice president and legal counsel for AFCO Corp. Pulsipher is a partner and general manager of Western Villages, a hotel, restaurant and service station chain in Nevada. He is also president of Titan Oil, Inc., Titan Drilling, Inc.; and an officer of Intermountain Tourist Supply, Inc. Beckstead was executive vice president and general manager of Murray First Thrift and Loan between 1960 and Continued from page one The impact of conversion from checking accounts to NOW accounts at these ten banks "would be very severe," authors banks could expect "serious erosion of profitability," the authors concluded. But, after a rocky transition period, the banking community would benefit from the transi- predicted. tion. If 25 percent of these banks' customers converted their accounts, the banks would, on the average, "roughly break even, generating little or no profit. Five of the banks would operate at a loss, and the other five would have negligible profits," the authors wrote. These predictions must be treated with "Transitional problems aside," they wrote, the effect of NOW accounts. . .can be expected to have salutory effects on the efficiency of the nation's payment systems." They stated the present paper-base- d checking account system encourages excessive use of checks and inhibits public acceptance of electronic banking. Electronic banking, they opined, "is likely to be far more efficient than paper-base- d transac- caution, they added, because the NOW accounts could actually offer new banks an additional competitive weapon to attract new customers, permitting them to grow faster. Still, it is to be expected that new banks, as well as established ones, would find their profits reduced - or their losses increased - during a transition to NOW accounts," the authors stated. Generally, for about three years, Utahs tions." The authors recommended that Congress put a ceiling of 2.5 percent interest on NOW accounts, instead of the 5 percent now allowed in New England states. This smaller ceiling would substantially reduce the negative impact of the transition period, they concluded. This announcement is neither an offer to sell nor a solicitation of an offer to buy any of these Securities. The offer is made only by the Prospectus. 1970. S NEW ISSUE 500,000 Shares CENTER, INC Common Stock DAILY INCOME 1 50.01 Par Value FINANCIAL DAILY INCOME SHARES, INC. ...seeking high current income from money market instruments, consistent with safety of capital and Price $0.50 per Share liquidity Copies of the Prospectus may be obtained from any of the undersigned. 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