[Federal Register Volume 65, Number 213 (Thursday, November 2, 2000)]
[Proposed Rules]
[Pages 66118-66136]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-27959]
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DEPARTMENT OF THE TREASURY
Office of Thrift Supervision
12 CFR Parts 516, 517, 543, 544, 545, 550, 552, 555, 559, 560, 562,
563, 563b, 563f, 565, 567, 574, 575, 584
[No. 2000-94]
RIN 1550-AB14
Application Processing
AGENCY: Office of Thrift Supervision, Treasury.
ACTION: Notice of proposed rulemaking.
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SUMMARY: As part of its ongoing effort to review and streamline its
regulations, the Office of Thrift Supervision (OTS) proposes to revise
its application processing guidelines and procedures. The proposed
changes would update the rules to reflect existing practices and
procedures; provide more predictable procedures for applicants; and
provide greater flexibility to OTS in processing applications. OTS has
also applied ``plain language'' drafting techniques, which should make
the application processing rules easier to understand.
DATES: Comments must be received on or before January 2, 2001.
ADDRESSES:
Mail: Send comments to Manager, Dissemination Branch, Information
Management and Services Division, Office of Thrift Supervision, 1700 G
Street NW., Washington, DC 20552, Attention Docket No. 2000-94.
Delivery: Hand deliver comments to the Guard's Desk, East Lobby
Entrance, 1700 G Street NW., from 9 a.m. to 4 p.m. on business days,
Attention Docket No. 2000-94.
Facsimiles: Send facsimile transmissions to FAX Number (202) 906-7755,
Attention Docket No. 2000-94; or (202) 906-6956 (if comments are over
25 pages).
E-Mail: Send e-mails to ``public.info@ots.treas.gov">public.info@ots.treas.gov'', Attention Docket
No. 2000-94, and include your name and telephone number.
Public Inspection: Interested persons may inspect comments at the
Public Reference Room, 1700 G St. NW., from 10 a.m. until 4 p.m. on
Tuesdays and Thursdays or obtain comments and/or an index of comments
by facsimile by telephoning the Public Reference Room at (202) 906-5900
from 9 a.m. until 5 on business days. Comments and the related index
will also be posted on the OTS Internet Site at ``www.ots.treas.gov''.
FOR FURTHER INFORMATION CONTACT:
Lane Langford, Regulatory Analyst, Office of Examination and
Supervision, (202) 906-7027;
Celeste Anderson, Program Analyst, Compliance Policy & Specialty
Examinations, (202) 906-7990;
Robyn Dennis, Manager, (202) 906-5751 and Josephine Battle, Program
Analyst Trainee, (202) 906-6870, Supervision Policy Division;
John P. Harootunian, Senior Counsel for Special Transactions, Business
Transactions Division, (202) 906-6415; and
Koko Ives, Counsel (Banking and Finance) Regulations and Legislation
Division, Office of Chief Counsel, Office of Thrift Supervision, 1700 G
Street NW., Washington, DC 20552.
SUPPLEMENTARY INFORMATION:
I. Background
OTS application processing guidelines and procedures are found in
12 CFR part 516. In today's proposed rulemaking, OTS proposes to revise
these rules to update the rules to reflect existing practices and
procedures; to provide more predictable procedures for applicants; and
to provide greater flexibility to OTS in processing applications. OTS
has also applied ``plain language'' drafting techniques.\1\
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\1\ In 1997, OTS added three new subparts to part 516. 62 FR
64138 (Dec. 4, 1997). These new subparts were also drafted using
``plain language'' drafting techniques. OTS is proposing to redraft
the remainder of part 516 consistent with section 722 of Gramm-
Leach-Bliley Act (the G-L-B Act or Act) which requires OTS to use
``plain language'' in all proposed and final rules published after
January 1, 2000.
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The intent of today's proposed rulemaking is to improve the clarity
and the efficiency of the OTS application processing procedures. These
improvements will make the rules easier for applicants to understand.
That is, applicants will know what to expect from OTS and what OTS
expects from applicants in processing an application. The applicants
should also benefit from a more expeditious review and processing of
applications.
Most changes in today's proposed rulemaking clarify existing
procedures. OTS has, for example, presented current information in
user-friendly charts; explained how it computes time periods; and
explained how an applicant may determine whether an application should
be filed with the Region and Headquarters. OTS would also add a new
proposed provision permitting an applicant to designate portions of an
application as confidential to reflect current policy.
In addition, OTS proposes to remove some technical requirements
from the existing regulations and incorporate this information into
individual application forms. OTS is currently revising its forms and
application-processing handbook to reflect these changes. This
regulation will not be issued in its final form until those forms and
handbooks are in place.
OTS proposes only a few substantive changes to the existing rules.
These include new provisions: addressing pre-filing procedures for
complex applications in order to expedite processing of these
applications, permitting OTS to extend certain processing time frames,
and allowing OTS to deem certain long-pending applications to have been
withdrawn. OTS believes that these changes will provide greater
efficiency and flexibility in the processing of applications. The
section-by-section analysis below specifically discusses all of the
proposed changes.
II. Section-by-Section Analysis
Today's proposal would replace existing Secs. 516.1, 516.2, and
516.3 with two new subparts to part 516. Revised subpart A would
prescribe pre-filing and filing procedures. New subpart E
[[Page 66119]]
would describe OTS review procedures. Today's proposal would make minor
revisions to existing subparts B, C, and D, which govern publication
requirements, public comment procedures, and meeting procedures.
In addition, this proposed rule includes conforming amendments
revising and updating numerous cross-references to part 516 contained
in other OTS regulations. These changes are not separately discussed in
this preamble.
Section 516.1 What Does This Part Do?
Proposed Sec. 516.1 sets out the purpose of part 516. Proposed
Sec. 516.1(a) states that the pre-filing and filing procedures and OTS
review process in subparts A and E would apply whenever an OTS
regulation requires any person to file an application with OTS. The
publication, public comment, and meeting procedures at subparts B, C,
and D, however, would apply only when an OTS regulation incorporates
those procedures or when otherwise required by OTS.
Like current rule Sec. 516.2, proposed Sec. 516.1(b) would state
that part 516 does not apply to: (1) An application related to a
transaction under section 13(c) or (k) of the Federal Deposit Insurance
Act, 12 U.S.C. 1823(c) (assistance to insured depository institutions)
or 1823(k) (emergency acquisitions); (2) a request for reconsideration,
modification, or appeal of a final OTS action; (3) a request related to
litigation, an enforcement proceeding, a supervisory directive, or
supervisory agreement; or (4) an application filed under an OTS
regulation that prescribes other application processing procedures and
time frames for the approval of applications, such as applications
under part 563b which refers to mutual to stock conversions.\2\ Where
an OTS regulation provides some application processing procedures, or
time frames, OTS will apply part 516 to the extent necessary to process
the application. Thus, the general rule is if a regulation governing a
specific type of application provides conflicting procedures, the
underlying regulation will govern.
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\2\ On July 12, 2000, OTS published in the Federal Register the
notice of proposed rulemaking and accompanying Interim Final Rule
revising part 563b, which governs application procedures for
conversions of mutual savings associations to stock associations.
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Section 516.5 Do the Same Procedures Apply to All Applications Under
This Part?
OTS currently processes applications under part 516 using two
procedures--expedited treatment and standard treatment. Generally,
expedited treatment allows an applicant to file a notice with OTS
before engaging in an activity, while standard treatment requires an
applicant to file an application and obtain formal OTS approval before
engaging in an activity. Proposed Sec. 516.5 would provide a simplified
chart for determining which treatment applies to a filing. This chart
incorporates existing criteria, except as discussed below. The chart
would also update terminology to reflect current OTS usage.
Under the current rule, the decision to process an application
under expedited treatment is based, in part, on the association's
condition, as reflected in the composite Uniform Financial Institutions
Rating System (UFIRS) rating, the Community Reinvestment Act (CRA)
performance rating, and the compliance rating received during its most
recent examination. The proposed rule would continue to use these
rating systems, but would revise the current rule to utilize ratings
that are assigned by any federal banking regulator. The proposed rule
also clarifies that an applicant without any prior composite, CRA, or
compliance ratings would receive standard treatment. Thus, an
application received from a start-up institution before its first
examination would receive standard treatment.
OTS assesses an association's condition using other rating systems,
including the Uniform Rating System for Data Processing Operations and
the Uniform Interagency Trust Rating System. OTS does not currently
consider these ratings when determining whether expedited or standard
treatment is appropriate. OTS believes that ratings under these systems
may be germane to certain types of institutions and certain types of
applications. OTS requests comment on whether it should revise the
proposed rule to incorporate these ratings in the decision to process
applications under the expedited treatment.
Section 516.10 How Does OTS Compute Time Periods Under This Part?
OTS proposes to add a new provision explaining how OTS computes
time periods under part 516. To conform to current practices, proposed
Sec. 516.10 would state that OTS would not include the day of the act
or event that commences the time period. Separately, the proposed rule
would state when the last day of a time period is a Saturday, Sunday,
or Federal holiday, the period would run until the end of the next day
that is not a Saturday, Sunday, or Federal holiday. This provision
would modify current OTS practice.
Subpart A--Pre-Filing and Filing Procedures
Subpart A would describe pre-filing and filing procedures for
applications under the standard and expedited treatment.
Pre-Filing Procedures
Section 516.15 Must I Meet With OTS Before I File My Application?
Proposed Sec. 516.15 is new. This section would require certain
applicants to meet with OTS at least 30 calendar days before filing an
application. These pre-filing meetings would permit OTS and the
applicant to identify any legal or policy issues at the pre-filing
stage, and would enable the applicant to address these issues early in
the process. By identifying and addressing issues early in the
application process, OTS believes that pre-filing meetings should
expedite the processing of complex applications.
Based on OTS's experience, certain intricate applications
containing novel or complex issues would benefit from the additional
review a pre-filing meeting would provide. OTS proposes to require a
pre-filing meeting for the following types of applications:
An application for permission to organize a de novo
federal savings association.
An application to convert an existing financial
institution or credit union to a federal savings association. OTS
generally would not, however, require a pre-filing meeting where a
state-chartered savings association regulated by OTS or a state-
chartered savings bank regulated by the Federal Deposit Insurance
Corporation (FDIC) seeks to convert to a federal association. The range
of activities that commercial banks and credit unions may conduct can
differ significantly from savings associations' activities. In
contrast, state-chartered savings banks engage in activities that
federal thrifts may conduct (with some exceptions). As a result, these
applications are typically less complex, which alleviates the need to
require a pre-filing meeting. As with any application, however, OTS or
an applicant may always request a pre-filing meeting to expedite the
review.
An application to acquire control of a savings association
filed by an insurance company, an investment company, a securities
firm, a commodities firm, or a pension fund.
OTS may require, or any applicant may request, a pre-filing meeting
for other types of applications or applicants if a meeting will help
resolve issues or expedite the process. OTS specifically requests
comment on whether other
[[Page 66120]]
specific types of applications or applicants should also be subject to
the pre-filing meeting requirement.
The proposed rule does not prescribe a format for the pre-filing
meeting. Rather, OTS expects the Regional Office to select a format
that addresses the needs of the particular applicant and the issues
presented by the proposed application. Depending on the circumstances,
OTS may conduct a pre-filing meeting by telephone, through video
conferencing, in person, or through any other reasonable means.
Similarly, the proposed rule does not indicate who must attend the pre-
filing meeting. Key personnel should attend the meeting. OTS will issue
additional guidance in its handbooks regarding pre-filing meetings.
Section 516.20 What Information Must I Provide to OTS Before the Pre-
Filing Meeting?
This new proposed section, Sec. 516.20(a), requires applicants to
provide OTS with a draft business plan for the savings association at
least seven calendar days before a required pre-filing meeting. This
submission should assist OTS in identifying potential issues and other
concerns in preparation for the pre-filing meeting. At this stage, OTS
will review, but will not approve, the draft business plan.
Under Sec. 516.20(b), the proposed rule would set out the
requirements for the draft business plan. At a minimum, the draft
business plan must:
Clearly and completely describe the projected operations
and activities of the savings association, including financial
projections for a minimum of three years.
Describe the risks associated with the transaction and the
impact of the transaction on any existing activities and operations of
the savings association.
Identify all proposed directors and senior executive
officers of the savings association,\3\ and demonstrate that these
individuals have the expertise to prudently manage the operations and
activities described in the plan.
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\3\ See 12 CFR 563.555 for definitions of director and senior
executive officer.
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Demonstrate how applicable requirements regarding serving
the credit and lending needs of the savings association's market areas
will be met.
Finally, proposed paragraph (c) would state that OTS may require an
applicant to provide additional relevant information before the pre-
filing meeting.
Filing Procedures
Under the Government Paperwork Elimination Act (GPEA),\4\ Federal
agencies are required, by October 21, 2003, to permit individuals to
file information electronically as a substitute for paper, and to use
electronic authentication to validate the identity of the sender and
the integrity of the electronic content when practicable.
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\4\ Title XVII of Pub. L. 105-277.
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OTS is reviewing the issues related to the electronic filing of
applications, with the goal of permitting some electronic filing before
the GPEA target date. OTS seeks comment on all issues affecting your
ability or desire to send electronic filings. Specifically, what do you
see as the advantages and disadvantages of filing applications
electronically rather than by paper? How can OTS make electronic filing
of applications of most value and easy to use? What constraints should
OTS keep in mind when implementing electronic procedures?
Although OTS would permit, not require, electronic filing, OTS also
seeks input on whether filing electronically would disadvantage certain
applicants.
Finally, OTS anticipates that it will be able to implement
electronic filing only on a graduated basis. Commenters should identify
which types of applications OTS should accept for electronic filing
initially.
Section 516.25 What Type of Application Must I File?
Proposed Sec. 516.25(a), like current Sec. 516.3(a)(2), would
permit applicants eligible for expedited treatment to file in the form
of a notice that includes all information required under the applicable
substantive regulation. The notice would be an application for purposes
of all statutory and regulatory references to applications.
Proposed Sec. 516.25(b) would require applicants subject to
standard treatment to file an application following all applicable
substantive regulations and guidelines governing the filing of
applications.
Proposed Sec. 516.25(c) would also clarify OTS current practices
regarding the contents of a waiver request. If an applicant requests
that OTS waive required information under the rules, the applicant must
submit a written statement describing the waiver request and explain
why the information is not needed for OTS to evaluate the filing under
applicable standards.
Section 516.30 What Information Must I Provide With My Application?
Proposed rule 516.30(a) advises applicants that they may obtain
information about required certifications, other regulations and
guidelines affecting particular notices and applications, appropriate
forms, and instructions from any OTS Regional Office or OTS's web page
at www.ots.treas.gov. The reference to the web page is new. OTS is
currently reviewing and revising its applications forms and handbooks.
The new versions will be available before these rules become final.
Proposed rule 516.30(b) clarifies current Sec. 516.1(c), and would
require the applicant to caption the original application and all
copies with the type of filing. In addition, the applicant must include
all exhibits and other pertinent documents with the original and the
copies. This proposed rule does not require the applicant to provide
original signatures on copies if the copy indicates that the original
was signed.
The current regulation requires an applicant filing certain types
of applications to include copies labeled for submission to certain
other federal government agencies and to state supervisors.\5\ See
current Sec. 516.1(c). OTS proposes to remove the labeling requirement
for all filings.
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\5\ Electronic filing issues are addressed below in the preamble
discussion of Sec. 516.40.
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Section 516.35 May I Keep Portions of My Application Confidential?
Proposed Sec. 516.35 is new, but restates current OTS policy for
protecting confidential information. As a general rule, OTS makes all
submissions under part 516 available to the public. However, under
proposed Sec. 516.35(b)(1), the applicant may request OTS keep portions
of the application confidential. The applicant would be required to
explain in detail how the request is consistent with the standards
under the Freedom of Information Act \6\ (FOIA) and OTS regulations
implementing FOIA.\7\ For example, the applicant should explain how it
will be substantially harmed by public disclosure. An applicant could
provide a statement of the nature and extent of competitive business
harm or personal privacy invasion it would experience as a result of
public disclosure. The applicant must also separately bind and mark the
portions of the application it considers confidential and the portions
it considers non-confidential.
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\6\ 5 U.S.C. 552.
\7\ 12 CFR part 505.
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[[Page 66121]]
Proposed Sec. 516.35(b)(2) would state that OTS would not treat as
confidential the portion of the application describing the applicant's
plan to meet Community Reinvestment Act (CRA) \8\ objectives since
public commenters may need this information to address CRA issues. Some
applicants have attempted to incorporate information contained in
confidential portions of the application into the CRA submission by
referencing it. As a result, public commenters cannot review the cross-
referenced CRA materials from the application and are forced to obtain
this information under FOIA. To insure that this necessary information
is made available to public commenters in a timely manner, OTS would
make all information in the applicant's CRA plan, including information
``incorporated by reference,'' available to the public upon request.
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\8\ 12 U.S.C. 2901.
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Under proposed Sec. 516.35(c), OTS would determine whether
information designated as confidential must be made available to the
public under FOIA and the implementing regulations at 12 CFR part 505.
Before OTS discloses any information to the public that an applicant
designates as confidential, OTS would advise the applicant.
Under proposed Sec. 516.35(d), if OTS issues a public statement
with its decision on an application, OTS may comment on confidential
information in the public statement without notifying the applicant.
Section 516.40 Where Do I File My Application?
Proposed Sec. 516.40 clarifies where an applicant must file an
application. Proposed Sec. 516.40(a)(1) directs all applicants to file
the original application and required copies with, and to the attention
of, the applications filing division of the appropriate OTS Regional
Office. The proposed rule would delete all references to the number of
required copies. Compare existing Sec. 516.1(c). Instead, the proposed
rule indicates that the applicant must file the number of copies
required under the applicable form. If the form does not indicate the
number of copies to be filed, or if OTS has not prescribed a form for a
type of application, proposed Sec. 516.40(a) would require applicants
to submit an original and two copies. Proposed Sec. 516.40(a)(2)
provides the addresses of OTS Regional Offices and the states served by
each Region in chart form.
Proposed Sec. 516.40(b)(1) would require an applicant to also file
additional copies with the applications filing division at OTS
Headquarters, if the application involves a significant issue of law or
policy or if the form otherwise directs an applicant to file with OTS
Headquarters. Again, the applicable form, rather than the proposed
rule, would specify how many copies must be filed with OTS
Headquarters. The applicant must submit three copies, if OTS has not
prescribed a form or a prescribed form does not indicate the number of
copies to file.
Proposed Sec. 516.40(b)(2) advises applicants that significant
issues of law or policy are identified in delegations of authority from
OTS Headquarters to the Regions. These delegations may currently be
accessed on the OTS web site at www.ots.treas.gov under Director's
Orders \9\ or by contacting a Regional Office. The types of
applications involving significant issues of law or policy currently
include among others:
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\9\ The primary delegation of authority to the Regional
Directors is currently contained in Order No. 95-177, dated
September 26, 1995, located on the web site under Director's Orders
for 1995. The OTS is in the process of reviewing and updating both
its delegations and its web site to make this and other application-
related materials more accessible to applicants.
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Acquisitions by foreign acquirors (that have not
previously received OTS approval), insurance or investment companies,
credit unions, securities firms, or pension funds.
Hostile acquisitions.
Qualified stock issuances.
Establishment of a mutual holding company.
De novo charters.
Service corporation activities that have not been
previously approved by OTS.
The list is not exhaustive and OTS reserves the right to identify
significant issues in a particular application, in which case it will
advise the applicant. If OTS identifies such issues, the Regional
Office will forward the appropriate number of copies to OTS
Headquarters. As a result, the 30-day review period under Secs. 516.200
or 516.210 will restart in its entirety. However, the filing date of
the application will not change. See proposed Sec. 516.45(c).
Applicants requiring more information or seeking clarification on these
issues may also contact the Office of Examination and Supervision at
OTS Headquarters, which will provide copies of applicable delegations.
Section 516.45 What Is the Filing Date of My Application?
Proposed Sec. 516.45 is new and identifies the application filing
date. The identification of the filing date is important because much
of the timing of the application's processing is based on this date.
For example, under proposed Sec. 516.200, if an applicant files a
notice under expedited treatment, the applicant may engage in the
proposed activity 30 calendar days after the filing date unless advised
otherwise. For applications filed under standard treatment, OTS must
take various actions within 30 calendar days after the filing date,
such as deeming an application complete and beginning the review
period, requesting additional information, or deeming an application
deficient.
Proposed Sec. 516.45(a) would explain that the filing date of an
application is the date that an applicant completes three requirements.
First, the applicant must comply with any pre-filing meeting
requirement at Sec. 516.15.
Second, the applicant must file the application and all required
copies with OTS, as described under Sec. 516.40. Because it is the
applicant's responsibility to properly address its application, an
application is not filed unless received by the proper office(s). If an
applicant is required to file with a Regional Office and with OTS
Headquarters, the applicant has not filed until it files with both
offices. Similarly, an applicant has not filed with a Regional Office
or OTS Headquarters until the application and the required number of
copies is filed with that office. If an applicant files after the close
of business established by the Regional Office or OTS Headquarters, the
applicant has filed with that office on the next business day.
Finally, under proposed Sec. 516.45(a)(3), an application is not
filed until the applicant pays the applicable fee. An applicant has not
paid a fee until it submits the fee to the appropriate Regional Office,
or OTS waives the fee. Applicants may pay by check, money order,
cashier's check or wire transfer payable to OTS.
OTS will continue its current practice of notifying an applicant
promptly, in writing, of the filing date of the application. OTS's
acknowledgment of receipt of the filing does not imply that the
application is complete. Once an application is filed, OTS will list
the application on the Applications Pending report on the web site at
www.ots.treas.gov. This report lists the name of the depository
institution, date the application was filed, and the type of
application.
Under proposed Sec. 516.45(b), OTS may notify an applicant that the
agency has adjusted an application filing date if the
[[Page 66122]]
applicant failed to meet any applicable publication requirements.
Under proposed Sec. 516.45(c), if an applicant properly files an
application with the Regional Office and OTS later determines that a
significant issue of law or policy exists under Sec. 516.40(b)(2)(ii),
the filing date of the application remains the day the applicant filed
with the Regional Office. However, the 30-day review period under
Secs. 516.200 or 516.210 of this part will restart in its entirety when
the Regional Office forwards the appropriate number of copies to OTS
Headquarters. OTS will notify the applicant when the new 30-day review
period has begun.
Subparts B, C, and D
Today's proposal would make minor revisions to existing subparts B,
C, and D, which govern publication requirements, public comment
procedures, and meeting procedures. OTS does not believe that it is
necessary to propose significant revisions to these subparts because
they were last amended in 1997.\10\
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\10\ OTS regulations are unclear whether the publication
requirements, public comment procedures and meeting procedures in
part 516, subparts B, C, and D apply to applications by depository
institutions seeking to convert to a Federal thrift charter. These
procedures, however, clearly apply to applications for a new
depository institution (see 12 CFR 543.2 and 552.2-1). In light of
the business changes that may accompany conversions, OTS is
proposing to clarify the applicable regulations at Secs. 543.9 and
552.2-6 to apply the publication requirements, comment procedures
and meeting procedures to these conversions as well. This
clarification is consistent with current practices.
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In subpart B, OTS proposes to add a new Sec. 516.55 to govern the
content of the publication notice. This section would provide guidance
to applicants preparing publication notices, and is based on FDIC's
public notice requirements at 12 CFR 303.7. Specifically, proposed
Sec. 516.55 would require an applicant to include the following
information in its public notice:
The applicant's name and address.
The type of application.
The name of the depository institution(s) that is the
subject matter of the application.
A statement indicating that the public may submit comments
to the appropriate OTS office.
The address of the appropriate OTS office(s) where the
public may submit comments.
The date that the public comment period closes.
A statement indicating that the nonconfidential portions
of the application are on file in the Regional Office, and are
available for public inspection during regular business hours.
Any other information that OTS requires the applicant to
publish. Applicants may find the format for various publication notices
in the appendix to the OTS application processing handbook.
Subpart C contains the procedures governing the submission of
public comments on applications or notices pending before OTS. OTS
drafted this subpart in 1997 using the ``plain language'' format, and
used the word ``you'' to refer to any person submitting a written
comment supporting or opposing an application. OTS is proposing to use
the word ``you'' throughout part 516 to refer to any person filing an
application with OTS. See proposed Sec. 516.1(a). To avoid potential
confusion, the proposal makes conforming technical changes to
Secs. 516.120-516.150 by removing the term ``you'' and instead
referring to ``commenters.'' In addition, OTS would revise the section
heading of Sec. 516.140, to reflect this change.
The proposed rule also makes two revisions to existing
Sec. 516.130, which governs where public comments are filed. First,
this section currently states that public comments must be filed with
the appropriate OTS Regional Office. It has been revised to clarify
that public comments must also be filed with OTS Headquarters if an
application involves a significant issue of law or policy under
Sec. 516.40(b).\11\ Second, currently commenters must only provide
their comments to the applicant if the commenter requests a meeting.
The proposed rule would require commenters to provide a copy of their
comments to the applicant.
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\11\ If OTS identifies a significant issue that is not listed on
its delegations, the commenter will not be required to file with OTS
Headquarters. Rather, the Regional Office will forward the public
comments to OTS Headquarters.
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Subpart D contains the procedures governing OTS formal and informal
meeting procedures. OTS proposes to add a new Sec. 516.185 entitled
``Will OTS approve or disapprove an application at a meeting?'' To
codify current practices, proposed Sec. 516.185 would clarify that OTS
will not approve or deny an application at a formal or informal
meeting. In addition, OTS proposes to revise cross-citations in
Sec. 516.190 to application processing time frames.
OTS is not proposing any significant changes to the formal and
informal meeting procedures in Subpart D. However, it specifically
solicits comments on how the formal and informal meeting procedures are
operating in practice.
Subpart E--OTS Review
Proposed subpart E would describe OTS's application review process.
Proposed Sec. 516.200 would describe the review under expedited
treatment.
Proposed Secs. 516.210 through 516.290 would describe the review
under standard treatment.
Expedited Treatment
Section 516.200 If I File a Notice Under Expedited Treatment, When May
I Engage in the Proposed Activities?
Proposed Sec. 516.200 would describe OTS's review of notices under
expedited treatment, and uses existing Sec. 516.3(a)(2) and (3) as a
base. This section would permit an applicant to engage in the proposed
activities unless OTS takes one of four actions within 30 calendar days
after filing the notice.
First, under proposed Sec. 516.200(a), OTS may require the
applicant to file additional information supplementing the notice. If
the applicant is required to file additional information, the applicant
may engage in the proposed activities within 30 calendar days after
filing the additional information, unless OTS takes one of the three
actions described below.
Under proposed Sec. 516.200(b), an applicant may engage in the
proposed activity unless, within 30 calendar days after the filing
date, OTS notifies the applicant that the application is subject to
standard treatment. OTS will subject an application to standard
treatment if the application raises a supervisory concern, raises a
significant issue of law or policy, or requires significant additional
information. OTS would notify the applicant if it must pay an
additional fee for standard treatment.
Under proposed Secs. 516.200(c) and (d) respectively, an applicant
may engage in the proposed activity unless OTS suspends the applicable
time frames as a result of a formal or informal meeting under existing
Sec. 516.190, or OTS disapproves the notice.
Standard Treatment
Section 516.210 What Will OTS Do After I File My Application?
Proposed Sec. 516.210(a) describes the actions that OTS will take
within 30 calendar days after the filing of an application under
standard treatment. Proposed Sec. 516.210(a) would clarify existing
Sec. 516.2(c) and (d) by outlining the possible OTS actions in chart
form.
Under the proposed rule, OTS will take one of four actions. First,
OTS may notify the applicant that the application
[[Page 66123]]
is complete. If OTS takes this action, the review period for the
application would begin on the date that OTS deems the application
complete.
Second, OTS may notify the applicant that it must submit additional
information to complete the application. Proposed Sec. 516.220, which
is discussed below, would prescribe the procedures that govern the
submission of additional information.
Third, OTS may notify the applicant that the application is
materially deficient and OTS would not process the application further.
An application may be materially deficient if, for example, the
application fails to include required information regarding the manner
in which a savings association will meet its CRA responsibilities, the
application fails to include significant parties, or the applicant
fails to provide key information required by an application form.
Finally, if OTS fails to act, the application would be deemed
complete. The applicable review period would commence 30 calendar days
after the application is submitted.
Proposed Sec. 516.210(b) would address requests for a waiver of an
information requirement. Under this proposed rule, if an applicant
requests a waiver and OTS has not notified the applicant that it must
submit additional information under proposed Sec. 516.210(a)(2), the
request for a waiver is granted. This provision of the proposed rule is
consistent with the current rule at Sec. 516.2(c)(1).
Section 516.220 If OTS Requests Additional Information To Complete My
Application, How Will It Process My Application?
Proposed Sec. 516.220(a) would chart the procedures governing the
applicant's submission of additional information. Proposed
Sec. 516.220(a) would require the applicant to respond within 30
calendar days after OTS's request for additional information. OTS would
take different actions depending on whether the applicant responds to
the request, requests additional time, or fails to file a complete
response.
Under Sec. 516.220(a)(1), if the applicant responds to all
information requests by OTS, OTS may take one of four actions within 15
calendar days after the filing date of the applicant's response. These
actions parallel the four actions described under proposed
Sec. 516.210(a), except that OTS may request further additional
information regarding matters derived from, or prompted by, information
already furnished or additional information otherwise necessary to
resolve the issues presented in the application. OTS intends to utilize
the ``necessary to resolve issues'' provision infrequently and
generally not to address issues that OTS could have addressed
previously.
Under proposed Sec. 516.220(a)(2), applicants may request an
extension of time to respond to an information request. If OTS grants
an extension, the applicant would be required to respond fully within
the extended time period specified by OTS. If OTS denies the extension
request, OTS would not process the application further.
Proposed Sec. 516.220(a)(3) would address an applicant's failure to
respond to an information request. If an applicant fails to respond
completely, OTS could notify the applicant that the application is
withdrawn and OTS would not process it further. Alternatively, OTS
could notify the applicant that the response is incomplete and extend
the period to respond.
As noted above, OTS has 15 calendar days to respond to additional
information submitted under paragraph (a)(1). Proposed Sec. 516.220(b)
is a new provision, which would permit OTS to extend this 15-day period
by an additional 15 calendar days, if OTS requires more time to review
the response. OTS would be required to notify the applicant of the
extension before the initial 15-day period expires. Under the proposed
rule, OTS could extend this time frame for any application. OTS does
not, however, intend to extend this time period routinely, but only in
those circumstances where additional time is necessary to evaluate the
responses to the information OTS has requested.
Proposed Sec. 516.220(c) would govern requests for waiver of an
information requirement. An applicant's request for a waiver of an
information requirement would be granted if OTS fails to act within 15
calendar days after the filing of the applicant's response, or until
the end of the review period, if OTS has extended the review period
under Sec. 516.220(b).
Section 516.230 Will OTS Conduct an Eligibility Examination?
Section 516.230 clarifies existing practices governing eligibility
examinations. Under proposed Sec. 516.230(a), OTS may notify the
applicant at any time before it deems the application complete that it
will conduct an eligibility examination. If OTS decides to conduct an
eligibility examination, it would not deem the application complete
until it concludes the examination.
Proposed Sec. 516.230(b) would permit OTS to request additional
information as a result of the eligibility examination. The applicant
would have to respond to the additional information request within the
time period required by OTS. OTS would review the response under the
procedures described in Sec. 516.220.
Section 516.240 What May OTS Require Me To Do After My Application Is
Deemed Complete?
Under current Sec. 516.2(c)(5), OTS may request an applicant to
supplement an application after it is deemed complete only under
certain specific circumstances. OTS, for example, may request
additional information of a material nature that was not reasonably
available from the applicant, that was concealed at the time the
application was deemed to be complete, or that pertained to
developments subsequent to the time the application was deemed to be
complete. Under proposed Sec. 516.240(a), OTS could request any
additional information that is necessary to resolve or clarify the
issues presented by the application.
Under proposed Sec. 516.240(b), if OTS determines that a major
issue of law or a change in circumstance arose after the application
was filed, and the issue or changed circumstances substantially affects
the application, OTS may notify the applicant that the application is
now incomplete and require the applicant to submit additional
information to complete the application under the procedures at
Sec. 516.220. A major issue of law or a change in circumstance may
arise after the application is deemed complete if, for example,
significant litigation is initiated, major legislation is enacted, a
new person or company acquires the applicant, or there is a major
change in the business plan. OTS may also require the applicant to
publish a new notice under Sec. 516.250.
Section 516.250 Will OTS Require Me To Publish a New Public Notice?
Proposed Sec. 516.250 is new. This section would ensure that the
public has adequate notice and opportunity to comment on any
application that changes substantially after the initial public comment
period. Under this proposed section, if an applicant was subject to
publication requirements, OTS may require an applicant to publish a new
public notice if: (1) The applicant submitted a revision to the
application, the applicant submitted new or additional information, or
a major issue of law or a change in circumstances arose after the
filing of the application; and (2) OTS determines that additional
public comment on these
[[Page 66124]]
matters is appropriate because of the significance of the new
information or circumstances.
Under proposed Sec. 516.250(b), OTS would notify the applicant if a
new public notice of a revised application must be published. Under
proposed Sec. 516.250(c), if the applicant must publish a new public
notice of the revised application, the applicant must notify OTS after
publishing the new public notice.
Section 516.260 May OTS Suspend Processing of My Application?
Proposed Sec. 516.260 would permit OTS to suspend processing of an
application indefinitely under certain circumstances. This provision
uses existing Sec. 516.2(c)(7) as a base. It would permit OTS to
suspend processing if OTS, another governmental entity, or a self-
regulatory trade or professional organization has initiated an
investigation, examination, or administrative proceeding that is
relevant to OTS's evaluation of the application. OTS may also suspend
processing if the applicant requests the suspension or there are other
extraordinary circumstances that have a significant impact on
processing of the application. Such extraordinary circumstances may
include pending legislation, material litigation, assessment of fees
under 12 CFR 502.60(d), or other matters. OTS would promptly notify the
applicant in writing of the suspension.
Section 516.270 How Long Is the OTS Review Period?
Proposed Sec. 516.270(a) uses existing Secs. 516.2(d)(1) and (2) as
a base. It specifies the length of time OTS may review the application.
Under this proposed rule, the applicable review period is 60 calendar
days after the date the application is deemed complete, unless an
applicable OTS regulation specifies a different review period.\12\
---------------------------------------------------------------------------
\12\ OTS rules outlining the substantive requirements for
various applications occasionally impose unique review periods. In
these instances, OTS will apply the review period in the substantive
regulation. See, e.g., 12 CFR 563.22(f).
---------------------------------------------------------------------------
Proposed Sec. 516.270(b) would set out the applicable review period
for related applications. Under proposed Sec. 516.270(b), if an
applicant submits more than one application in connection with a
proposed action, or if two or more applicants submit related
applications, the review period for all applications would be the time
frame for the application with the longest review period. Compare
existing Sec. 516 (2)(d)(2).
Proposed Sec. 516.270(c) would govern extensions of the OTS review
period. Under the proposed rule, OTS could extend the review period for
up to 30 calendar days for any reason. To do so, OTS would be required
to notify the applicant in writing of the extension before the end of
the initial review period. This proposal differs from the current rule
that requires OTS to notify the applicant at least 10 days before the
end of the review period. Compare existing Sec. 516.2(e).
Proposed Sec. 516.270(c)(2) would permit OTS to extend the review
period of any application that presents a significant issue of law or
policy until such time as OTS acts on the application. Under proposed
Sec. 516.270(c)(2), OTS must notify an applicant in writing of this
extension and the general reasons for the extension. OTS must issue
this written extension before the review period expires, including any
extension granted under proposed Sec. 560.260(c)(1).
Section 516.280 How Will I Know if My Application Has Been Approved?
Proposed Sec. 516.280(a) would require OTS to approve or deny an
application before the expiration of the applicable review period,
including any extensions. Under proposed Sec. 516.280(b), an
application would be approved if OTS fails to act within this period.
See existing Sec. 516.2(d)(1).
The proposed rule does not describe the standards that OTS will
apply when it reviews applications. Rather, OTS's approval or
disapproval would be based on the standards in the underlying
regulation for the particular application. The current rule includes
one standard governing the review of applications. In existing
Sec. 516.3(b)(2), OTS must deny applications that are subject to
standard treatment unless the association affirmatively demonstrates
how the application will clearly improve its financial or managerial
condition or improve its compliance with the CRA or other consumer-
related statutes without affecting its financial or managerial
resources. The proposed rule would delete this section because the
review standards in the applicable substantive regulations sufficiently
address these matters.
Section 516.290 What Will Happen if OTS Does Not Approve or Disapprove
My Application Within Two Calendar Years?
Proposed Sec. 516.290 is new. Proposed Sec. 516.290(a) would permit
OTS to address those applications that have been pending for a lengthy
period and that are not making significant progress to a final approval
or disapproval. Under this provision, if OTS has not approved or denied
an applicant's pending application within two calendar years after the
filing date, OTS will notify the applicant in writing that the
application is withdrawn, unless the agency determines that the
applicant is actively pursuing a final OTS determination. An applicant
would not be actively pursuing a final OTS determination if the
applicant fails to timely take an action required under the proposed
part, including filing required additional information, or OTS suspends
processing the application under Sec. 516.260 based on circumstances
that are, in whole or in part, within the applicant's control and the
applicant fails to take reasonable steps to resolve these
circumstances.
Proposed Sec. 516.290(b) would give applicants with pending
applications a reasonable opportunity to avoid the withdrawal of their
application. This section would not become effective until 90 days
after the effective date of the final rule.
III. Derivation Chart for Revised Part 516
------------------------------------------------------------------------
Revised provision Former provision Comments
------------------------------------------------------------------------
Sec. 516.1(a) Added.
Sec. 516.1(b) Sec. 516.2(a)(1) Modified.
Sec. 516.1(c) Sec. 516.2(a) (2) Modified.
Sec. 516.5(a) Added.
Sec. 516.5(b) Added.
Sec. 516.5(c) Sec. 516.3(b) (1)(i) Modified.
Sec. 516.5(d) Sec. 516.3(b) (1)(ii) Modified.
Sec. 516.5(e) Sec. 516.3(b) (1)(iii) Modified.
Sec. 516.5(f) Sec. 516.3(b) (1)(iv) Modified.
Sec. 516.5(g) Sec. 516.3(b) (1)(v) Modified.
Sec. 516.5(h) Added.
Sec. 516.5(i) Added.
Sec. 516.10 Added.
Sec. 516.15 Added.
Sec. 516.20 Added.
Sec. 516.25(a) Sec. 516.3(a)(2) Modified.
Sec. 516.25(b) Secs. 516.2(b) Modified and Added.
Sec. 516.30(a) Sec. 516.1.(c) Modified and Added.
Sec. 516.30(b) Sec. 516.1.(c) Modified.
Sec. 516.35 Added.
Sec. 516.40(a)(1) Sec. 516.1(c) Modified and Added.
Sec. 516.40(a)(2) Sec. 516.1(b) Modified.
Sec. 516.40(b) Sec. 516.1(a)&(c) Modified.
Sec. 516.45(a) Added.
Sec. 516.45(b) Added.
Sec. 516.55 Added.
Sec. 516.120 Sec. 516.120 Modified.
Sec. 516.130 Sec. 516.130 Modified.
Sec. 516.140 Sec. 516.140 Modified.
Sec. 516.150 Sec. 516.150 Modified.
[[Page 66125]]
Sec. 516.185 Added.
Sec. 516.190 Sec. 516.190 Modified.
Sec. 516.200(a) Sec. 516.3(a)(2) Modified and Added.
Sec. 516.200(b) Sec. 516.3(a)(3) Modified.
Sec. 516.200(c) Added.
Sec. 516.200(d) Added.
Sec. 516.210(a) Sec. 516.2(c)(1) Modified and Added.
Sec. 516.210(b) Sec. 516.2(c)(1) Modified.
Sec. 516.220(a) Sec. 516.2(c)(2)-(5) Modified and Added.
Sec. 516.220(b) Sec. 516.2(e) Modified.
Sec. 516.220(c) 516.2(c)(4) Modified.
Sec. 516.230 Added.
Sec. 516.240(a) Sec. 516.2(c)(4)-(5) Modified.
Sec. 516.240(b) Sec. 516.2(c)(5) Modified and Added.
Sec. 516.250 Added.
Sec. 516.260 Sec. 516.2(c)(7) Modified and Added.
Sec. 516.270(a) Sec. 516.2(d)(1) Modified.
Sec. 561.270(b) Sec. 516.2(d)(2) Modified.
Sec. 516.270(c) (1) Sec. 516.2(e) Modified.
Sec. 516.270(c) (2) Sec. 516.2(f) Modified.
Sec. 516.280(a) Added.
Sec. 516.280(b) Sec. 516.2(d) (1) Modified.
Sec. 516.290 Added.
------------------------------------------------------------------------
IV. Plain Language Requirement
Section 722 of the GLB Act (12 U.S.C.A. 4809) requires federal
banking agencies to use ``plain language'' in all proposed and final
rules published after January 1, 2000. We invite your comments on how
to make this proposed rule easier to understand. For example:
(1) Have we organized the material to suit your needs?
(2) Are the requirements in the rule clearly stated?
(3) Does the rule contain technical language or jargon that isn't
clear?
(4) Would a different format (grouping and order of sections, use
of headings, paragraphing) make the rule easier to understand?
(5) Would more (but shorter) sections be better?
(6) What else could we do to make the rule easier to understand?
V. Executive Order 12866
The Director of OTS has determined that this proposed regulation
does not constitute a ``significant regulatory action'' for purposes of
Executive Order 12866.
VI. Regulatory Flexibility Act
Pursuant to section 605(b) of the Regulatory Flexibility Act, OTS
certifies that this proposed regulation will not have a significant
economic impact on a substantial number of small entities. The proposed
rule generally restates the existing rule in plain language and
clarifies existing procedures. These changes should make it easier for
all applicants to file applications and for OTS to expeditiously review
applications. These changes should, therefore, assist all potential
applications, including small businesses. While the proposed rule would
make several minor changes, only two of these changes would impose
additional burden on applicants. Under the proposed rule, certain
applicants would be subject to a pre-filing meeting requirement and
would be required to provide a draft business plan before the meeting.
OTS believes that the pre-filing meeting is generally consistent with
existing procedures and imposes only a minimal burden. Moreover, most
applicants should already have drafted business plans to provide to the
agency.
VII. Paperwork Reduction Act of 1995
The information collection requirements in this proposal have
previously been approved by OMB under the substantive regulations or
under the application forms; or involve technical changes that do not
affect the overall burden of compliance. To the extent that this
regulation imposes new burden, OTS has filed applications to update the
information collection requirements in the underlying forms. These have
been submitted under 1550-0005, 1550-00015, and 1550-0037.
VIII. Unfunded Mandates Act of 1995
Section 202 of the Unfunded Mandates Reform Act of 1995, Pub. L.
104-4 (Unfunded Mandates Act), requires that an agency prepare a
budgetary impact statement before promulgating a rule that includes a
federal mandate that may result in expenditure by state, local, and
tribal governments, in the aggregate, or by the private sector, of $100
million or more in any one year. If a budgetary impact statement is
required, section 205 of the Unfunded Mandates Act also requires an
agency to identify and consider a reasonable number of regulatory
alternatives before promulgating a rule. The proposed rule generally
restates the existing application processing procedures in plain
language and clarifies existing procedures. These changes should make
it easier for all applicants to file applications and for OTS to review
applications. While the proposed rule would make several minor changes,
OTS has determined that the proposed rule will not result in
expenditures by state, local, or tribal governments or by the private
sector of $100 million or more. Accordingly, this proposed rulemaking
is not subject to section 202 of the Unfunded Mandates Act.
List of Subjects
12 CFR Part 516
Administrative practice and procedure, Reporting and recordkeeping
requirements, Savings associations.
12 CFR Part 517
Government contracts, Individuals with disabilities, Minority
businesses, Women.
12 CFR Part 543
Reporting and recordkeeping requirements, Savings associations.
12 CFR Part 544
Reporting and recordkeeping requirements, Savings associations.
12 CFR Part 545
Accounting, Consumer protection, Credit, Electronic funds
transfers, Investments, Reporting and recordkeeping requirements,
Savings associations.
12 CFR Part 550
Savings associations, Trusts and trustees.
12 CFR Part 552
Reporting and recordkeeping requirements, Savings associations,
Securities.
12 CFR Part 555
Accounting, Consumer protection, Credit, Electronic funds
transfers, Investments, Reporting and recordkeeping requirements,
Savings associations.
12 CFR Part 559
Reporting and recordkeeping requirements, Savings associations,
Subsidiaries.
12 CFR Part 560
Consumer protection, Investments, Manufactured homes, Mortgages,
Reporting and recordkeeping requirements, Savings associations,
Securities.
12 CFR Part 562
Accounting, Reporting and recordkeeping requirements, Savings
associations.
12 CFR Part 563
Accounting, Advertising, Crime, Currency, Investments, Reporting
and recordkeeping requirements, Savings associations, Securities,
Surety bonds.
[[Page 66126]]
12 CFR Part 563b
Reporting and recordkeeping requirements, Savings associations,
Securities.
12 CFR Part 563f
Antitrust, Holding companies, Reporting and recordkeeping
requirements, Savings associations.
12 CFR Part 565
Administrative practice and procedure, Capital, Savings
associations.
12 CFR Part 567
Capital, Savings associations.
12 CFR Part 574
Administrative practice and procedure, Holding companies, Reporting
and recordkeeping requirements, Savings associations, Securities.
12 CFR Part 575
Administrative practice and procedure, Capital, Holding companies
Reporting and recordkeeping requirements, Savings associations,
Securities.
12 CFR Part 584
Administrative practice and procedure, Holding companies, Reporting
and recordkeeping requirements, Savings associations, Securities.
Accordingly, the Office of Thrift Supervision proposes to amend
title 12, chapter V, of the Code of Federal Regulations as set forth
below:
PART 516--APPLICATION PROCESSING GUIDELINES AND PROCEDURES
1. The authority citation for part 516 continues to read as
follows:
Authority: 5 U.S.C. 552, 559; 12 U.S.C. 1462a, 1463, 1464, 2901
et seq.
Secs. 516.1, 516.2, 516.3 [Removed]
2. Subpart A of part 516 (Secs. 516.1, 516.2, 516.3) is removed.
Secs. 516.1, 516.5, 516.10 [Added]
Subpart A [Added]
3. Sections 516.1, 516.5, and 516.10, and subpart A, consisting of
Secs. 516.15 through 516.40, are added to read as follows:
Sec.
516.1 What does this part do?
516.5 Do the same procedures apply to all applications under this
part?
516.10 How does OTS compute time periods under this part?
Subpart A--Pre-Filing and Filing Procedures
Pre-Filing Procedures
516.15 Must I meet with OTS before I file my application?
516.20 What information must I provide to OTS before the pre-filing
meeting?
Filing Procedures
516.25 What type of application must I file?
516.30 What information must I provide with my application?
516.35 May I keep portions of my application confidential?
516.40 Where do I file my application?
516.45 What is the filing date of my application?
516.1 What does this part do?
(a) This part explains OTS procedures for processing applications,
notices, or filings (applications). Except as provided in paragraph (b)
of this section, subparts A and E of this part apply whenever an OTS
regulation requires any person (you) to file an application with OTS.
Subparts B, C, and D, however, only apply when an OTS regulation
incorporates the procedures in the subpart or where otherwise required
by OTS.
(b) This part does not apply to any of the following:
(1) An application related to a transaction under section 13(c) or
(k) of the Federal Deposit Insurance Act, 12 U.S.C. 1823(c) or (k).
(2) A request for reconsideration, modification, or appeal of a
final OTS action.
(3) A request related to litigation, an enforcement proceeding, a
supervisory directive or supervisory agreement. Such requests include a
request seeking approval under, modification of, or termination of an
order issued under part 508 or 509 of this chapter, a supervisory
agreement, a supervisory directive, a consent merger agreement or a
document negotiated in settlement of an enforcement matter or other
litigation, unless an applicable OTS regulation specifically requires
an application under this part.
(4) An application filed under an OTS regulation that prescribes
other application processing procedures and time frames for the
approval of applications.
(c) If an OTS regulation prescribes some application processing
procedures, or time frames, OTS will apply this part to the extent
necessary to process the application. For example, if an OTS regulation
does not specify time periods for the processing of an application, the
time periods in this part apply.
Sec. 516.5 Do the same procedures apply to all applications under this
part?
OTS processes applications under this part using two procedures,
expedited treatment and standard treatment. To determine which
treatment applies, you may use the following chart:
------------------------------------------------------------------------
Then OTS will process
If-- your application
under--
------------------------------------------------------------------------
(a) The applicable regulation does not Standard treatment.
specifically state that expedited treatment is
available.
------------------------------------------------------------------------
(b) You are not a savings association........... Standard treatment.
------------------------------------------------------------------------
(c) OTS or another federal banking regulator Standard treatment.
assigned you a composite rating of 3, 4, or 5.
The composite rating is the composite numeric
rating that OTS or the other federal banking
regulator assigned to you under the Uniform
Financial Institutions Rating System \1\ or
under a comparable rating system. The composite
rating refers to the rating assigned and
provided to you, in writing, as a result of the
most recent examination.
------------------------------------------------------------------------
(d) OTS or another federal banking regulator Standard treatment.
assigned you a Community Reinvestment Act (CRA)
rating of Needs to Improve or Substantial
Noncompliance. The CRA rating is the Community
Reinvestment Act performance rating that OTS or
the other federal banking regulator assigned
and provided to you, in writing, as a result of
the most recent compliance examination. See,
for example, Sec. 563e.28 of this chapter.
------------------------------------------------------------------------
[[Page 66127]]
(e) OTS or another federal banking regulator Standard treatment.
assigned you a compliance rating of 3, 4, or 5.
The compliance rating is the numeric rating
that OTS or the other federal banking regulator
assigned to you under OTS compliance rating
system, or a comparable rating system used by
the other federal banking regulator. The
compliance rating refers to the rating assigned
and provided to you, in writing, as a result of
the most recent compliance examination.
------------------------------------------------------------------------
(f) You fail any one of your capital Standard treatment.
requirements under part 567 of this chapter.
------------------------------------------------------------------------
(g) OTS has notified you that you are an Standard treatment.
association in troubled condition.
------------------------------------------------------------------------
(h) Neither OTS nor any other federal banking Standard treatment.
regulator has assigned you a composite rating,
a CRA rating or a compliance rating.
------------------------------------------------------------------------
(i) You do not meet any of the criteria listed Expedited treatment.
in paragraphs (a) through (h) of this section.
------------------------------------------------------------------------
\1\ A savings association may obtain a copy of its composite rating from
the appropriate Regional Office.
Sec. 516.10 How does OTS compute time periods under this part?
In computing time periods under this part, OTS does not include the
day of the act or event that commences the time period. When the last
day of a time period is a Saturday, Sunday, or Federal holiday, the
time period runs until the end of the next day that is not a Saturday,
Sunday, or Federal holiday.
Subpart A--Pre-Filing and Filing Procedures
Pre-Filing Procedures
Sec. 516.15 Must I meet with OTS before I file my application?
(a) Meeting requirement. (1) You must meet with OTS at least 30
calendar days before you may file:
(i) An application for permission to organize a de novo federal
savings association;
(ii) An application to convert an existing financial institution
(other than a state-chartered savings association regulated by OTS or a
state-chartered savings bank that is regulated by the FDIC) or a credit
union to a federal savings association; or
(iii) An application to acquire control of a savings association,
if you are an insurance company, an investment company, a securities
firm, a commodities firm, or a pension fund.
(2) OTS may require, or the applicant may request, a pre-filing
meeting for other types of applications or applicants, if doing so will
help resolve issues or expedite the process.
(3) Applications for mutual to stock conversions are subject to the
pre-filing meeting requirements under 12 CFR part 563b.
(b) Scheduling the pre-filing meeting. If you are required to meet
with OTS under paragraph (a) of this section, you must contact the
appropriate Regional Office to request the pre-filing meeting.
Sec. 516.20 What information must I provide to OTS before the pre-
filing meeting?
(a) Draft business plan. If you are required to meet with OTS under
Sec. 516.15, you must provide a draft business plan for the savings
association to OTS at least seven calendar days before the pre-filing
meeting.
(b) Contents of plan. At a minimum, your draft business plan
should:
(1) Clearly and completely describe the savings association's
projected operations and activities;
(2) Describe the risks associated with the transaction and the
impact of this transaction on any existing activities and operations of
the savings association, including financial projections for a minimum
of three years;
(3) Identify all proposed directors and senior executive officers
(as defined in Sec. 563.555 of this chapter) of the savings association
and demonstrate that these individuals have the expertise to prudently
manage the activities and operations described in the savings
association's draft business plan; and
(4) Demonstrate how applicable requirements regarding serving the
credit and lending needs in the market areas served by the savings
association will be met.
(c) Additional information. OTS may require you to provide
additional relevant information before the pre-filing meeting.
Filing Procedures
Sec. 516.25 What type of application must I file?
(a) Expedited treatment. If you are eligible for expedited
treatment under Sec. 516.5, you may file your application in the form
of a notice that includes all information required by the applicable
substantive regulation. If OTS has designated a form for your notice,
you must file that form. Your notice is an application for the purposes
of all statutory and regulatory references to ``applications.''
(a) Standard treatment. If you are subject to standard treatment
under Sec. 516.5, you must file your application following all
applicable substantive regulations and guidelines governing the filing
of applications. If OTS has a designated form for your application, you
must file that form.
(b) Waiver requests. If you want OTS to waive a requirement that
you provide certain information with the notice or application, you
must include a written waiver request:
(1) Describing the requirement to be waived; and
(2) Explaining why the information is not needed to enable OTS to
evaluate your notice or application under applicable standards.
Sec. 516.30 What information must I provide with my application?
(a) Required information. You may obtain information about required
certifications, other regulations and guidelines affecting particular
notices and applications, appropriate forms, and instructions from any
OTS Regional Office. You may also obtain forms and instructions on
OTS's web page at www.ots.treas.gov.
(b) Captions and exhibits. You must caption the original
application and required copies with the type of filing, and must
include all exhibits and other pertinent documents with the original
application and all required copies. You are not required to include
original signatures on copies if you include a copy of the signed
signature page or the copy otherwise indicates that the original was
signed.
Sec. 516.35 May I keep portions of my application confidential?
(a) Confidentiality. OTS makes submissions under this part
available to the public, but may keep portions of
[[Page 66128]]
your application confidential based on the rules in this section.
(b) Confidentiality request. (1) You may request OTS to keep
portions of your application confidential. You must submit your request
in writing with your application and must explain in detail how your
request is consistent with the standards under the Freedom of
Information Act (5 U.S.C. 552) and part 505 of this chapter. For
example, you should explain how you will be substantially harmed by
pubic disclosure of the information. You must separately bind and mark
the portions of the application you consider confidential and the
portions you consider non-confidential.
(2) OTS will not treat as confidential the portion of your
application describing how you plan to meet your Community Reinvestment
Act (CRA) objectives. OTS will make information in your CRA plan,
including any information incorporated by reference from other parts of
your application, available to the public upon request.
(c) OTS determination on confidentiality. OTS will determine
whether information that you designate as confidential must be made
available to the public under the Freedom of Information Act (5 U.S.C.
552) and part 505 of this chapter. OTS will advise you before it makes
information you designate as confidential available to the public.
(d) OTS public statement. If OTS issues a public statement with its
decision on an application, it may comment on confidential submissions
in the public statement without notifying you.
Sec. 516.40 Where do I file my application?
(a) Regional Office. (1) You must file the original application and
the number of copies indicated on the applicable form with, and to the
attention of, the applications filing division of the appropriate OTS
Regional Office. If the form does not indicate the number of copies you
must file or if OTS has not prescribed a form for your application, you
must file the original application and two copies.
(2) The address and the states served for each Regional Office are:
----------------------------------------------------------------------------------------------------------------
Region Office address States served
----------------------------------------------------------------------------------------------------------------
Northeast............................. Office of Thrift Supervision, 10 Connecticut, Delaware, Maine,
Exchange Place, 18th Floor, Jersey Massachusetts, New Hampshire, New
City, New Jersey 07303. Jersey, New York, Pennsylvania,
Rhode Island, Vermont, West
Virginia.
Southeast............................. Office of Thrift Supervision, 1475 Alabama, Florida, Georgia,
Peachtree Street, N.E., Atlanta, Maryland, North Carolina, South
Georgia 30309. Carolina, Virginia, District of
Columbia, Puerto Rico, Virgin
Islands.
Central............................... Office of Thrift Supervision, 200 Illinois, Indiana, Kentucky,
West Madison Street, Suite 1300, Michigan, Ohio, Tennessee,
Chicago, Illinois 60606. Wisconsin.
Midwest............................... Office of Thrift Supervision, 122 Arkansas, Colorado, Iowa, Kansas,
W. John Carpenter Freeway, Suite Louisiana, Minnesota, Missouri,
600, Irving, Texas 75261-9027. Mississippi, North Dakota,
Nebraska, New Mexico, Oklahoma,
South Dakota, Texas.
West.................................. Office of Thrift Supervision, Alaska, Arizona, California,
Pacific Telesis Tower, 1 Hawaii, Idaho, Montana, Nevada,
Montgomery Street, San Francisco, Oregon, Utah, Washington, Wyoming,
California 94104-4533. Guam, Northern Mariana Islands.
Mail to: P.O. Box 7165, San
Francisco, California 94120-7165.
----------------------------------------------------------------------------------------------------------------
(b) Additional filings with OTS Headquarters. (1) In addition to
filing in the Regional Office, if your application involves a
significant issue of law or policy or if an applicable regulation or
form directs you to file with OTS Headquarters, you must also file
copies of your application with the Applications Filing Room at OTS
headquarters, 1700 G Street NW, Washington, DC 20552. You must file the
number of copies indicated on the applicable form. If the form does not
indicate the number of copies you must file or if OTS has not
prescribed a form for your application, you must file three copies.
(2) (i) Significant issues of law or policy are described in
delegations of authority from OTS Headquarters to the Regional Offices.
You may obtain these delegations on the OTS website at
www.ots.treas.gov or by contacting a Regional Office.
(ii) OTS reserves the right to identify significant issues of law
or policy in a particular application. OTS will advise you, in writing,
if it makes this determination.
Sec. 516.45 What is the filing date of my application?
(a) Your application's filing date is the date that you complete
all of the following requirements.
(1) You comply with the pre-filing meeting requirement at
Sec. 516.15, including the submission of a business plan.
(2) You file your application and all required copies with OTS, as
described under Sec. 516.40.
(i) If you are required to file with a Regional Office and with OTS
Headquarters, you have not filed with OTS until you file with both
offices.
(ii) You have not filed with a Regional Office or OTS Headquarters
until you file the application and the required number of copies with
that office.
(iii) If you file after the close of business established by a
Regional Office or OTS Headquarters, you have filed with that office on
the next business day.
(3) You pay the applicable fee. You have not paid the fee until you
submit the fee to the appropriate Regional Office, or OTS waives the
fee. You may pay by check, money order, cashier's check or wire
transfer payable to OTS.
(b) OTS may notify you that it has adjusted your application filing
date if you fail to meet any applicable publication requirements.
(c) If, after you properly file your application with the Regional
Office, OTS determines that a significant issue of law or policy exists
under Sec. 516.40(b)(2)(ii), the filing date of your application is the
day you filed with the Regional Office. The 30-day review period under
Secs. 516.200 or 516.210 of this part will restart in its entirety when
the Regional Office forwards the appropriate number of copies of your
application to OTS Headquarters.
4. Section 516.55 is added to read as follows:
Sec. 516.55 What information must I include in my public notice?
Your public notice must include the following:
[[Page 66129]]
(a) Your name and address.
(b) The type of application.
(c) The name of the depository institution(s) that is the subject
matter of the application.
(d) A statement indicating that the public may submit comments to
the appropriate OTS office(s).
(e) The address of the appropriate OTS offices where the public may
submit comments.
(f) The date that the public comment period closes.
(g) A statement indicating that the nonconfidential portions of the
application are on file in the Regional Office, and are available for
public inspection during regular business hours.
(h) Any other information that OTS requires you to publish. You may
find the format for various publication notices in the appendix to OTS
application processing handbook.
5. Section 516.110 is amended by removing the phrase ``(you)''.
6. Section 516.120 is revised to read as follows:
Sec. 516.120 What information should a comment include?
(a) A comment should recite relevant facts, including any
demographic, economic, or financial data, supporting the commenter's
position. A comment opposing an application should also:
(1) Address at least one of the reasons why OTS may deny the
application under the relevant regulations;
(2) Recite any relevant facts and supporting data addressing these
reasons; and;
(3) Address how the approval of the application could harm the
commenter or any community.
(b) If a commenter wishes to request an informal meeting under
Sec. 516.170, the commenter must file a request with the comment. The
commenter should describe the nature of the issues or facts to be
discussed and the reasons why written submissions are insufficient to
adequately address these facts or issues.
7. Section 516.130 is revised to read as follows:
Sec. 516.130 Where are comments filed?
A commenter must file with the appropriate OTS Regional Office and,
where an application involves a significant issue of law or policy
under Sec. 516.40(b), with OTS headquarters. The commenter must
simultaneously send a copy of the comment to the applicant.
8. Section 516.140 is revised to read as follows:
Sec. 516.140 How long is the comment period?
(a) General. Except as provided in paragraph (b) of this section, a
commenter must file a written comment with OTS within 25 calendar days
after the application is filed with OTS.
(b) Late-filed comments. OTS will consider a late-filed comment if:
(1) Within the comment period, the commenter demonstrates to OTS
good cause why the commenter could not submit a timely comment; and
(2) OTS concludes that the comment addresses a significant
regulatory concern and will assist in the disposition of the
application.
9. Section 516.150 is revised to read as follows:
Sec. 516.150 Will there be additional opportunities to discuss the
application?
OTS may provide the commenter with additional opportunities to
discuss the application in informal or formal meetings under subpart D
of this part.
10. Section 515.185 is added to read as follows:
Sec. 516.185 Will OTS approve or disapprove an application at a
meeting?
OTS will not approve or deny an application at a formal or informal
meeting under this subpart.
11. Section 516.190 is revised to read as follows:
Sec. 516.190 Will a meeting affect application processing time frames?
If OTS has arranged a meeting, it will suspend applicable
application processing time frames, including the time frames for
deeming an application complete and the applicable approval time frames
specified in subpart E of this part. The time period will resume when
OTS determines that a record has been developed that sufficiently
supports a determination on the issues raised in the comments.
12. Subpart E, consisting of Secs. 516.200 through 516.280, is
added to read as follows:
Subpart E--OTS Review
Expedited Treatment
Sec.
516.200 If I file a notice under expedited treatment, when may I
engage in the proposed activities?
Standard Treatment
516.210 What will OTS do after I file my application?
516.220 If OTS requests additional information to complete my
application, how will it process my application?
516.230 Will OTS conduct an eligibility examination?
516.240 What may OTS require me to do after my application is
deemed complete?
516.250 Will OTS require me to publish a new public notice?
516.260 May OTS suspend processing of my application?
516.270 How long is the OTS review period?
516.280 How will I know if my application has been approved?
516.290 What will happen if OTS does not approve or disapprove my
application within two calendar years?
Subpart E--OTS Review
Expedited Treatment
Sec. 516.200 If I file a notice under expedited treatment, when may I
engage in the proposed activities?
If you are eligible for expedited treatment and you have
appropriately filed your notice with OTS, you may engage in the
proposed activities upon the expiration of 30 days after the filing
date of your notice, unless OTS takes one of the following actions
before the expiration of that time period:
(a) OTS notifies you in writing that you must file additional
information supplementing your notice. If you are required to file
additional information, you may engage in the proposed activities upon
the expiration of 30 calendar days after the date you file the
additional information, unless OTS takes one of the actions described
in paragraphs (b) through (d) of this section before the expiration of
that time period;
(b) OTS notifies you in writing that your notice is subject to the
standard treatment under this subpart. OTS will subject your notice to
the standard treatment if it raises a supervisory concern, raises a
significant issue of law or policy, or requires significant additional
information;
(c) OTS notifies you in writing that it is suspending the
applicable time frames under Sec. 516.190; or
(d) OTS notifies you that it disapproves your notice.
Standard Treatment
Sec. 516.210 What will OTS do after I file my application?
(a) OTS action. Within 30 calendar days after the filing date of
your application, OTS will take one of the following actions:
[[Page 66130]]
------------------------------------------------------------------------
If OTS-- Then--
------------------------------------------------------------------------
(1) Notifies you, in writing, that The applicable review period will
your application is complete. begin on the date that OTS you, in
deems your application complete.
(2) Notifies you, in writing, that You must submit the required
you must submit additional additional information under Sec.
information to complete your 516.220.
application.
(3) Notifies you, in writing, that OTS will not process your
your application is materially application.
deficient.
(4) Takes no action............... Your application is deemed
complete. The applicable review
period will begin on the day the
30-day time period expires.
------------------------------------------------------------------------
(b) Waiver requests. If your application includes a request for
waiver of an information requirement under Sec. 516.25(b), and OTS has
not notified you that you must submit additional information under
paragraph (a)(2) of this section, your request for waiver is granted.
Sec. 516.220 If OTS requests additional information to complete my
application, how will it process my application?
(a) You may use the following chart to determine the procedure that
applies to your submission of additional information under
Sec. 516.210(a)(1):
----------------------------------------------------------------------------------------------------------------
If, within 30 calendar days after
the date of OTS request for Then, OTS may-- And--
additional information--
----------------------------------------------------------------------------------------------------------------
(1) File a response to all (i) Notify you in writing within 15 The applicable review period will
information requests. calendar days after the filing of begin on the date that OTS deems
your response that your application your application complete.
is complete.
(ii) Notify you in writing within 15 You must respond to the additional
calendar days after the filing date information request within the time
of your response that you must period required by OTS. OTS will
submit additional information review your response under the
regarding matters derived from or procedures described in this
prompted by already furnished or any section.
additional information necessary to
resolve the issues presented in your
application.
(iii) Notify you in writing within 15 OTS will not process your
calendar days after the filing date application.
of your response that your
application is materially deficient.
(iv) Take no action within 15 Your application is deemed complete.
calendar days after the filing date The applicable review period will
of your response. begin on the day that the 15-day
time period expires.
(2) Request an extension of time (i) Grant an extension, in writing, You must fully respond within the
to file additional information. specifying the number of days for extended time period specified by
the extension. OTS. OTS will review your response
under the procedures described
under this section.
(ii) Notify you in writing that your OTS will not process your
extension request is disapproved. application further. You may
resubmit the application for
processing as a new filing under
the applicable regulation.
(3) Fail to respond completely.... (i) Notify you in writing that your OTS will not process your
application is withdrawn. application further. You may
resubmit the application for
processing as a new filing under
the applicable regulation.
(ii) Notify you, in writing, that You must fully respond within the
your response is incomplete and extended time period specified by
extend the response period, OTS. OTS will review your response
specifying the number of days for under the procedures described
the extension. under this section.
----------------------------------------------------------------------------------------------------------------
(b) OTS may extend the 15-day period referenced in paragraph (a)(1)
of this section by up to 15 calendar days, if OTS requires the
additional time to review your response. OTS will notify you that it
has extended the period before the end of the initial 15-day period.
(c) If your response filed under paragraph (a)(1) of this section
includes a request for a waiver of an informational requirement, your
request for a waiver is granted if OTS fails to act on it within 15
calendar days after the filing of your response, unless OTS extends the
review period under paragraph (b). If OTS extends the review period
under paragraph (b), your request is granted if OTS fails to act on it
by the end of the extended review period.
Sec. 516.230 Will OTS conduct an eligibility examination?
(a) Eligibility examination. OTS may notify you at any time
examination. If OTS decides to conduct an eligibility examination, it
will not deem your application complete until it concludes the
examination.
(b) Additional information. OTS may, as a result of the eligibility
examination, notify you that you must submit additional information to
complete your application. If so, you must respond to the additional
information request within the time period required by OTS. OTS will
review your response under the procedures described in Sec. 516.220.
Sec. 516.240 What may OTS require me to do after my application is
deemed complete?
After your application is deemed complete, but before the end of
the applicable review period,
(a) OTS may require you to provide additional information if the
information is necessary to resolve or clarify the issues presented by
your application.
(b) OTS may determine that a major issue of law or a change in
circumstances arose after you filed your application, and that the
issue or changed circumstances will substantially effect your
application. If
[[Page 66131]]
OTS identifies such an issue or changed circumstances, it may:
(1) Notify you, in writing, that your application is now incomplete
and require you to submit additional information to complete the
application under the procedures described at Sec. 516.220; and
(2) Require you to publish a new public notice of your application
under Sec. 516.250.
Sec. 516.250 Will OTS require me to publish a new public notice?
(a) If your application was subject to a publication requirement,
OTS may require you to publish a new public notice of your application
if:
(1)You submitted a revision to the application, you submitted new
or additional information, or major issue of law or a change in
circumstances arose after the filing of your application; and
(2) OTS determines that additional public comment on these matters
is appropriate because of the significance of the new information or
circumstances.
(b) OTS will notify you in writing if you must publish a new public
notice of your revised application.
(c) If you are required to publish a new public notice of your
revised application, you must notify OTS after you publish the new
public notice.
Sec. 516.260 May OTS suspend processing of my application?
(a) Suspension. OTS may, at any time, indefinitely suspend
processing of your application if:
(1) OTS, another governmental entity, or a self-regulatory trade or
professional organization initiates an investigation, examination, or
administrative proceeding that is relevant to OTS's evaluation of your
application;
(2) You request the suspension or there are other extraordinary
circumstances that have a significant impact on the processing of your
application.
(b) Notice. OTS will promptly notify you, in writing, if it
suspends your application.
Sec. 516.270 How long is the OTS review period?
(a) General. The applicable OTS review period is 60 calendar days
after the date that your application is deemed complete, unless an
applicable OTS regulation specifies a different review period.
(b) Multiple applications. If you submit more than one application
in connection with a proposed action or if two or more applicants
submit related applications, the applicable review period for all
applications is the review period for the application with the longest
review period, subject to statutory review periods.
(c) Extensions. (1) OTS may extend the review period for up to 30
calendar days beyond the period described in paragraph (a) or (b) of
this section. OTS must notify you in writing of the extension and the
duration of the extension. OTS must issue the written extension before
the end of the review period.
(2) OTS may also extend the review period as needed until it acts
on the application, if the application presents a significant issue of
law or policy that requires additional time to resolve. OTS must notify
you in writing of the extension and the general reasons for the
extension. OTS must issue the written extension before the end of the
review period, including any extension of that period under paragraph
(c)(1) of this section. This section applies to applications and
notices filed under Sec. 575.3(b) and part 574 of this chapter.
Sec. 516.280 How will I know if my application has been approved?
(a) OTS approval or denial. (1) OTS will approve or deny your
application before the expiration of the applicable review period,
including any extensions of the review period.
(2) OTS will promptly notify you in writing of its decision to
approve or deny your application.
(b) No OTS action. If OTS fails to act under paragraph (a)(1) of
this section, your application is approved.
Sec. 516.290 What will happen if OTS does not approve or disapprove my
application within two calendar years?
(a) Withdrawal. If OTS has not approved or denied your pending
application within two calendar years after the filing date under
Sec. 516.45, OTS will notify you, in writing, that your application is
deemed withdrawn unless OTS determines that you are actively pursuing a
final OTS determination on your application. You are not actively
pursuing a final OTS determination if you have failed to timely take an
action required under this part, including filing required additional
information, or OTS has suspended processing of your application under
Sec. 516.260 based on circumstances that are, in whole or in part,
within your control and you have failed to take reasonable steps to
resolve these circumstances.
(b) Effective date. This section is effective 90 days after the
effective date of the final rule.
PART 517--THE MINORITY, WOMEN, AND INDIVIDUALS WITH DISABILITIES
OUTREACH PROGRAM: CONTRACTING FOR GOODS AND SERVICES
13. The authority citation for part 517 continues to read as
follows:
Authority: 12 U.S.C. 1833(e); 42 U.S.C. 12101 et seq.
14. Section 517.6 is amended by revising paragraph (b) to read as
follows:
Sec. 517.6 Certification.
* * * * *
(b) Self-certify ownership status by filing with the OTS Outreach
Program Advocate a completed and signed ABELS Registration/
Certification Form, as prescribed by the U.S. Department of Commerce's
Minority Business Development Agency and available from the Outreach
Program Advocate at the headquarters address of the OTS listed in
Sec. 516.40(b) of this chapter; or
* * * * *
PART 543--INCORPORATION, ORGANIZATION, AND CONVERSION OF FEDERAL
MUTUAL ASSOCIATIONS
15. The authority citation for part 543 continues to read as
follows:
Authority: 12 U.S.C. 1462, 1462a, 1463, 1464, 1467a, 2901 et
seq.
16. Section 543.9 is amended by revising paragraph (a) to read as
follows:
Sec. 543.9 Application for conversion to Federal mutual charter.
(a)(1) Filing. Any depository institution that proposes to convert
to a Federal mutual association as provided in Sec. 543.8 must, after
approval by its board of directors, file an application on forms
obtained from OTS. The applicant must submit any financial statements
or other information OTS may require.
(2) Procedures. An application for conversion filed under this
section is subject to the procedures for organization of a federal
mutual association at Sec. 543.2(d) through (f) of this chapter.
* * * * *
PART 544--CHARTER AND BYLAWS
17. The authority citation for part 544 continues to read as
follows:
Authority: 12 U.S.C. 1462, 1462a, 1463, 1464, 1467a, 2901 et
seq.
18. Section 544.2 is amended by revising the last sentence of
paragraph (c) to read as follows:
Sec. 544.2 Charter amendments.
* * * * *
[[Page 66132]]
(c) * * * Such request for reissuance should be filed with the
Corporate Secretary at the Washington Headquarters Office at the
address listed at Sec. 516.40(b) of this chapter and contain signatures
required under Sec. 544.1 of this part, together with such supporting
documents as may be needed to demonstrate that the amendments were
properly adopted.
19. Section 544.5 is amended by revising paragraph (c)(1)(ii) to
read as follows:
* * * * *
Sec. 544.5 Federal mutual savings association bylaws.
(c) * * *
(1) * * *
(ii) Applications submitted under paragraph (c)(1)(i) of this
section are subject to standard treatment processing procedures at part
516, subparts A and E of this chapter.
* * * * *
PART 545--OPERATIONS
20. The authority citation for part 545 continues to read as
follows:
Authority: 12 U.S.C. 1462a, 1463, 1464, 1828.
21. Section 545.92 is amended by revising paragraphs (b), (d)(2),
and the first sentence of paragraph (f) to read as follows:
Sec. 545.92 Branch offices.
* * * * *
(b) Eligibility. Federal savings associations eligible for
expedited treatment under Sec. 516.5 of this chapter may establish a
branch office subject to the procedures in paragraph (f) of this
section. A Federal savings association subject to standard treatment
under Sec. 516.5 of this chapter must not establish a branch office
without prior approval subject to the procedures in paragraph (e) of
this section.
* * * * *
(d) * * *
(2) Submission of application or notice. A Federal savings
association must comply with Sec. 556.5 of this chapter and must file
the application required under Sec. 516.25(b) of this chapter or the
notice required under Sec. 516.25(a) of this chapter within three days
after the publication of the public notice under paragraph (d)(1) of
this section.
* * * * *
(f) Approval of branch notice. A notice filed by a Federal savings
association that qualifies for expedited treatment must be deemed to be
approved 30 days after its filing with OTS, unless OTS takes one of the
actions described at Sec. 516.200 of this chapter. OTS will apply the
review standards set forth in paragraph (e)(1) of this section; or OTS
determines to process the filing as an application under
Sec. 516.200(b) of this chapter. * * *
* * * * *
PART 550--FIDUCIARY POWERS OF SAVINGS ASSOCIATIONS
22. The authority citation for part 550 continues to read as
follows:
Authority: 12 U.S.C. 1462a, 1463, 1464.
23. Section 550.80 is revised to read as follows:
Sec. 550.80 How do I obtain OTS approval?
You must file an application under part 516, subparts A and E of
this chapter.
24. Section 550.260 is amended by revising the first sentence of
paragraph (b)(2) to read as follows:
Sec. 550.260 How may I invest funds of a fiduciary account?
* * * * *
(b) * * *
(2) If you must file a document with the Comptroller of the
Currency under 12 CFR 9.18, you must also file that document with the
appropriate Regional Office at Sec. 516.40(a) of this chapter. * * *
* * * * *
25. Section 550.530 is amended by revising the last sentence to
read as follows:
Sec. 550.530 How do I surrender fiduciary powers?
* * * You must file the resolution with the appropriate Regional
Office at the address listed in Sec. 516.40(a) of this chapter.
PART 552--INCORPORATION, ORGANIZATION, AND CONVERSION OF FEDERAL
STOCK ASSOCIATIONS
26. The authority citation for part 552 continues to read as
follows:
Authority: 12 U.S.C. 1462, 1462a, 1463, 1464, 1467a.
27. Section 552.2-6 is amended by adding the following sentence to
the end of the section to read as follows:
Sec. 552.2-6 Conversion from stock form depository institution to
Federal stock association.
* * * An application for conversion filed under this section is
subject to the procedures for organization of a federal stock
organization at Sec. 552.2-1.
28. Section 552.4 is amended by revising the last sentence of
paragraph (d) to read as follows:
Sec. 552.4 Charter amendments.
* * * * *
(d) * * * Such requests for reissuance should be filed with the
Corporate Secretary at Washington Headquarters Office at the address
listed in Sec. 516.40(b) of this chapter, and contain signatures
required under Sec. 552.3 of this part, together with such supporting
documents as needed to demonstrate that the amendments were properly
adopted.
29. Section 552.5 is amended by revising paragraph (b)(1)(ii) to
read as follows:
Sec. 552.5 Bylaws.
* * * * *
(b) * * *
(1) * * *
(ii) Applications submitted under paragraph (b)(1)(i) of this
section are subject to standard treatment processing procedures at part
516, subparts A and E of this chapter.
* * * * *
PART 555--ELECTRONIC OPERATIONS
30. The authority citation for part 555 continues to read as
follows:
Authority: 12 U.S.C. 1462a, 1463, 1464.
31. In Sec. 555.310, the first sentence of the introductory text of
paragraph (a) is revised to read as follows:
Sec. 555.310 How do I notify OTS?
(a) Notice requirement. You must file a written notice with the
appropriate Regional Office listed at Sec. 516.40(a) of this chapter at
least 30 days before you establish a transactional website. * * *
* * * * *
PART 559--SUBORDINATE ORGANIZATIONS
32. The authority citation for part 559 continues to read as
follows:
Authority: 12 U.S.C. 1462, 1462a, 1463, 1464, 1828.
Sec. 559.3 [Amended]
33. Section 559.3 is amended by:
a. Removing, in paragraph (e)(2)(i), the phrases ``Sec. 516.3(a) of
this chapter'' and ``Sec. 516.1 of this chapter'', and by adding in
lieu thereof the phrases ``Sec. 516.5 of this chapter'' and ``standard
treatment processing procedures at part 516, subparts A and E of this
chapter''; and
b. Removing, in paragraph (e)(2)(ii), the phrases ``Sec. 516.3(b)
of this chapter''
[[Page 66133]]
and ``Sec. 516.1 of this chapter'', and by adding in lieu thereof the
phrases ``Sec. 516.5 of this chapter'' and, ``standard treatment
processing procedures at part 516, subparts A and E of this chapter''
respectively.
34. Section 559.4 is amended by revising the third sentence of the
introductory text to read as follows:
Sec. 559.4 What activities are preapproved for service corporations?
* * * You should read these two sections together to determine
whether you must file a notice with OTS under Sec. 559.11 of this part,
or whether you must file an application subject to standard treatment
processing procedures at part 516, subparts A and E of this chapter to
request prior written OTS approval in order for your service
corporation to engage in a particular activity. * * *
* * * * *
35. Section 559.11 is amended by revising the first sentence and
the last sentence to read as follows:
Sec. 559.11 What notices are required to establish or acquire a new
subsidiary or engage in new activities through an existing subsidiary?
When required by section 18(m) of the Federal Deposit Insurance
Act, a savings association (``you'') must file a notice (``Notice'')
under part 516, subpart A of this chapter at least 30 days before
establishing or acquiring a subsidiary or engaging in new activities in
a subsidiary. * * * If OTS notifies you within 30 days that the Notice
presents supervisory concerns, or raises significant issues of law or
policy, you must apply for and receive OTS's prior written approval
under the standard treatment processing procedures at part 516, subpart
A and E of this chapter before establishing or acquiring the subsidiary
or engaging in new activities in the subsidiary.
36. Section 559.13 is amended by revising paragraph (b) to read as
follows:
Sec. 559.13 How may a savings association exercise its salvage power
in connection with a service corporation or lower-tier entities?
* * * * *
(b) If OTS notifies you within 30 days that the Notice presents
supervisory concerns, or raises significant issues of law or policy,
you must apply for and receive OTS's prior written approval under the
standard treatment processing procedures at part 516, subparts A and E
of this chapter before making a salvage investment.
* * * * *
PART 560--LENDING AND INVESTMENT
37. The authority citation for part 560 continues to read as
follows:
Authority: 12 U.S.C. 1462, 1462a, 1463, 1464, 1467a, 1701j-3,
1828, 3803, 3806; 42 U.S.C. 4106.
Sec. 560.30 [Amended]
38. Section 560.30, footnote 3 is amended by removing the phrase
``Sec. 516.1(a) of this chapter'', and by adding in lieu thereof the
phrase ``Sec. 516.40(b) of this chapter''.
39. Section 560.32 is amended by revising the second sentence of
paragraph (c) to read as follows:
Sec. 560.32 Pass-through investments.
* * * * *
(c) * * * If within that 30-day period OTS notifies you that an
investment presents supervisory, legal, or safety and soundness
concerns, you must apply for and receive OTS prior written approval
under the standard treatment processing procedures at part 516,
subparts A and E of this chapter before making the investment. * * *
40. Section 560.35 is amended by revising paragraph (d)(3) to read
as follows:
Sec. 560.35 Adjustments to home loans.
* * * * *
(d) * * *
(3) A Federal savings association may use an index not satisfying
the requirements of paragraph (d)(2) of this section 30 days after
filing a notice unless, within that 30-day period, OTS has notified the
association that the notice presents supervisory concerns or raises
significant issues of law or policy. If OTS notifies the association of
such concerns or issues, the Federal savings association may not use
such an index unless it applies for and receives OTS's prior written
approval under the standard treatment processing procedures at part
516, subparts A and E of this chapter.
41. Section 560.93 is amended by revising the second and third
sentences of paragraph (d)(3)(iii) to read as follows:
Sec. 560.93 Lending limitations.
* * * * *
(d) * * *
(3) * * *
(iii) * * * A savings association that meets the requirements of
paragraphs (d)(3)(i), (ii), (iv) and (v) of this section and that meets
the requirements for ``expedited treatment'' under Sec. 516.5 of this
chapter may use the higher limit set forth under this paragraph (d)(3)
if the savings association has filed a notice with OTS that it intends
to use the higher limit at least 30 days prior to the proposed use. A
savings association that meets the requirements of paragraphs
(d)(3)(i), (ii), (iv), and (v) of this section and that meets the
requirements for ``standard treatment'' under Sec. 516.5 of this
chapter may use the higher limit set forth under this paragraph (d)(3)
if the savings association has filed an application with OTS and OTS
has approved the use the higher limit;
* * * * *
42. Section 560.160 is amended by revising paragraph (a)(1) to read
as follows:
Sec. 560.160 Asset classification.
(a)(1) Each savings association must evaluate and classify its
assets on a regular basis in a manner consistent with, or reconcilable
to, the asset classification system used by OTS in its Thrift
Activities Handbook (Available at the address of Washington
Headquarters Office at Sec. 516.40(b) of this chapter).
* * * * *
PART 562--REGULATORY REPORTING STANDARDS
43. The authority citation for part 562 continues to read as
follows:
Authority: 12 U.S.C. 1463.
44. Section 562.4 is amended by revising paragraph (b)(1) to read
as follows:
Sec. 562.4 Audit of savings associations and savings association
holding companies.
* * * * *
(b) * * *
(1) If a savings association has received a composite rating of 3,
4 or 5, as defined at Sec. 516.5(c) of this chapter; or
* * * * *
PART 563--OPERATIONS
45. The authority citation for part 563 continues to read as
follows:
Authority: 12 U.S.C. 375b, 1462, 1462a, 1463, 1464, 1467a, 1468,
1817, 1820, 1828, 3806; 42 U.S.C. 4106.
46. Section 563.22 is amended by revising paragraphs (b)(1)(ii),
(b)(2), (d)(4), (f)(1), and (h)(2) to read as follows:
Sec. 563.22 Merger, consolidation, purchase or sale of assets, or
assumption of liabilities.
* * * * *
(b)(1) * * *
(ii) In the case of a savings association that meets the conditions
for expedited treatment under Sec. 516.5 of this chapter,
[[Page 66134]]
convert, directly or indirectly, to a national or state bank.
(2) A savings association that does not meet the conditions for
expedited treatment under Sec. 516.5 of this chapter may not, directly
or indirectly, convert to a national or state bank without prior
application to and approval of OTS, as provided in paragraph (h)(2)(ii)
of this section.
* * * * *
(d) * * *
(4) Applications filed under section 5(d)(3) of the Federal Deposit
Insurance Act (12 U.S.C. 1815(d)(3)) and paragraph (a) of this section
must be processed in accordance with the time frames set forth in
Secs. 516.220 through 516.290 of this chapter, provided that the period
for review may be extended only if the Office determines that the
applicant has failed to furnish all requested information or that the
information submitted is substantially inaccurate, in which case the
review period may be extended for up to 30 days.
* * * * *
(f) * * *
(1) The acquiring savings association does not meet the criteria
for expedited treatment under Sec. 516.5 of this chapter;
* * * * *
(h) * * *
(2) Other transfer transactions--(i) Expedited treatment. A notice
in conformity with Sec. 516.25(a) of this chapter may be submitted to
OTS under Sec. 516.40 of this chapter for any transaction under
paragraph (c) of this section, provided all constituent savings
associations meet the conditions for expedited treatment under
Sec. 516.5 of this chapter. Notices submitted under this paragraph must
be deemed approved automatically by OTS 30 days after receipt, unless
OTS advises the applicant in writing prior to the expiration of such
period that the proposed transaction may not be consummated without
OTS's approval of an application under paragraphs (h)(2)(ii) or
(h)(2)(iii) of this section.
(ii) Standard treatment. An application in conformity with
Sec. 516.25(b) of this chapter and paragraph (d) of this section must
be submitted to OTS under Sec. 516.40 by each savings association
participating in a transaction under paragraph (b)(2) or (c) of this
section, where any constituent savings association does not meet the
conditions for expedited treatment under Sec. 516.5 of this chapter,
except as provided in paragraph (h)(2)(iii) of this section.
Applications under this paragraph must be processed in accordance with
the procedures in part 516, subparts A and E of this chapter.
(iii) Standard treatment for transactions under section 5(d)(3) of
the Federal Deposit Insurance Act. An application in conformity with
Sec. 516.25(b) of this chapter and paragraph (d) of this section must
be submitted to OTS under Sec. 516.40 by each savings association which
will survive any transaction under both section 5(d)(3) of the Federal
Deposit Insurance Act (12 U.S.C. 1815(d)(3)) and paragraph (c) of this
section, where any constituent savings association does not meet the
conditions for expedited treatment under Sec. 516.5 of this chapter.
Applications under this paragraph must be processed in accordance with
the procedures in part 516, subparts A and E of this chapter, provided
that the period for review may be extended only if OTS determines that
the applicant has failed to furnish all requested information or that
the information submitted is substantially inaccurate, in which case
the review period may be extended for up to 30 days.
47. Section 563.41 is amended by revising paragraph (e)(2)(ii)(A)
to read as follows:
Sec. 563.41 Loans and other transactions with affiliates and
subsidiaries.
* * * * *
(e) * * *
(2) * * *
(ii) * * *
(A) Has a composite rating of 4 or 5, as defined in Sec. 516.5(c)
of this chapter;
* * * * *
48. Section 563.81 is amended by revising the first sentence in
paragraphs (a)(1), (a)(2), and (c) to read as follows:
Sec. 563.81 Issuance of subordinated debt securities and mandatorily
redeemable preferred stock.
(a) General--(1) Savings associations receiving standard treatment.
No savings association subject to standard treatment of its
applications under Sec. 516.5 of this chapter may issue subordinated
debt securities or mandatorily redeemable preferred stock includable in
regulatory capital pursuant to this section or amend the terms of such
securities unless it has obtained the written approval of OTS * * *
(2) Savings associations receiving expedited treatment. No savings
association eligible for expedited treatment under Sec. 516.5 of this
chapter may issue subordinated debt securities or mandatorily
redeemable preferred stock pursuant to this section for inclusion in
regulatory capital or amend the terms of such securities unless it
provides notice to OTS, and such notice contains a statement of the
association's intent to include such securities in regulatory capital.
* * *
* * * * *
(c) Form of application or notice; supporting information.
Applications subject to standard treatment or notices eligible for
expedited treatment under Sec. 516.5 of this chapter must be in the
form prescribed by OTS. * * *
* * * * *
49. Section 563.143 is amended by revising the heading and the
first sentence of paragraph (a)(1) to read as follows:
Sec. 563.143 Must I file with OTS?
(a) * * *
(1) You are not eligible for expedited treatment under Sec. 516.5
of this chapter. * * *
* * * * *
50. Section 563.171 is amended by revising paragraph (b)(4) to read
as follows:
Sec. 563.171 Frequency of safety and soundness examination.
* * * * *
(b) * * *
(4) At its most recent examination, OTS determined that the savings
association was in outstanding or good condition, that is, it received
a composite rating of 1 or 2, as composite rating defined in
Sec. 516.5(c) of this chapter;
* * * * *
51. Section 563.180 is amended by revising paragraph (d)(11) to
read as follows:
Sec. 563.180 Suspicious Activity Reports and other reports and
statements.
* * * * *
(d) * * *
(11) Obtaining SARs. A savings association or service corporation
may obtain SARs and the instructions from the appropriate OTS Regional
Office listed in Sec. 516.40(a) of this chapter.
* * * * *
52. Section 563.183 is amended by revising paragraph (c)(1) to read
as follows:
Sec. 563.183 Reports of change in chief executive officer or director;
other reports; form and filing of such reports.
* * * * *
(c) Form and filing of reports. (1) Unless otherwise specified by
OTS, a report required by Sec. 563.181 of this part or this
Sec. 563.183 must comply with Sec. 516.30 and must be submitted to the
appropriate Regional Office listed in Sec. 516.40(a) of this chapter.
* * * * *
[[Page 66135]]
53. Section 563.555 is amended by revising paragraph (1) of the
definition of ``troubled condition'' to read as follows:
Sec. 563.555 What definitions apply to this subpart?
* * * * *
Troubled condition means:
(1) A savings association that has a composite rating of 4 or 5, as
composite rating is defined in Sec. 516.5(c) of this chapter.
* * * * *
54. Section 563.565 is revised to read as follows:
Sec. 563.565 What procedures govern the filing of my notice?
The procedures found in part 516, subpart A of this chapter govern
the filing of your notice under Sec. 563.560.
PART 563b--CONVERSIONS FROM MUTUAL TO STOCK FORM
55. The authority citation for part 563b continues to read as
follows:
Authority: 12 U.S.C. 1462, 1462a, 1463, 1464, 1467a, 2901; 15
U.S.C. 78c, 78l, 78m, 78n, 78w.
Sec. 563b.27 [Amended]
56. Section 563b.27 is amended in paragraph (e), footnote 1, by
removing the phrase ``Sec. 516.1(a) of this chapter'', and by adding in
lieu thereof ``Sec. 516.40(b) of this chapter''.
PART 563f--MANAGEMENT OFFICIAL INTERLOCKS
57. The authority citation for part 563f continues to read as
follows:
Authority: 12 U.S.C. 3201-3208.
58. Section 563f.6 is amended by revising the last sentence of
paragraph (a) to read as follows:
Sec. 563f.6 General exemption.
(a) * * * A depository organization may apply to OTS for an
exemption under part 516, subpart E, of this chapter.
PART 565--PROMPT CORRECTIVE ACTION
59. The authority citation for part 565 continues to read as
follows:
Authority: 12 U.S.C. 1831o.
Sec. 565.4 [Amended]
60. Section 565.4 is amended as follows:
a. Section 565.4(b)(2)(iii)(B) is amended by removing the phrase
``as defined in 516.3(c)'' and adding in lieu theereof ``as composite
rating is defined in Sec. 516.5(c)'' and
b. Section 565.4(b)(3)(iii)(B) is amended by removing the phrase
``as defined in Sec. 516.3(c)'' and adding in lieu thereof ``as
composite rating is defined in Sec. 516.5(c)'' and
c. Section 565.4(c)(2), footnote 1, is amended by removing the
phrase ``Sec. 516.1 of this chapter'', and by adding in lieu thereof
``Sec. 516.40 of this chapter''.
PART 567--CAPITAL
61. The authority citation for part 567 continues to read as
follows:
Authority: 12 U.S.C. 1462, 1462a, 1463, 1464, 1828 (note).
62. Section 567.3 is amended by revising the third sentence in
paragraph (d)(2)(i) introductory text, to read as follows:
Sec. 567.3 Individual minimum capital requirements.
* * * * *
(d) * * *
(2) * * * (i) * * * Such response must be filed in accordance with
Secs. 516.30 and 516.40 of this chapter. * * *
* * * * *
63. Section 567.4 is amended by revising the fifth sentence of
paragraph (a)(3)(i) to read as follows:
Sec. 567.4 Capital directives.
(a) * * *
(3) * * * (i) * * * Such responses must be filed in accordance with
Secs. 516.30 and 516.40 of this chapter. * * *
* * * * *
64. Section 567.7 is amended by revising paragraph (f) to read as
follows:
Sec. 567.7 Interest-rate risk component.
* * * * *
(f) OTS will provide, upon request, manuals describing the OTS
Model and guidance at the address set forth in Sec. 516.40(b) of this
chapter.
PART 574--ACQUISITION OF CONTROL OF SAVINGS ASSOCIATIONS
65. The authority citation for part 574 continues to read as
follows:
Authority: 12 U.S.C. 1467a, 1817, 1831i.
66. Section 574.4 is amended by revising the second sentence of
paragraph (f)(2) to read as follows:
Sec. 574.4 Control.
* * * * *
(f) * * *
(2) * * * Certifications provided for in this paragraph must be
filed with OTS in accordance with Secs. 516.30 and 516.40 of this
chapter.
PART 575--MUTUAL HOLDING COMPANIES
67. The authority citation for part 575 continues to read as
follows:
Authority: 12 U.S.C. 1462, 1462a, 1463, 1464, 1467a, 1828, 2901.
68. Section 575.3 is amended by revising paragraph (b)(2)
introductory text to read as follows:
Sec. 575.3 Mutual holding company reorganizations.
* * * * *
(b) * * *
(2) Sixty days have passed since OTS received the Reorganization
Notice and deemed it complete under Sec. 516.210 or Sec. 516.220 of
this chapter, and OTS has not:
* * * * *
69. Section 575.13 is amended by revising the third sentence of
paragraph (a)(1), paragraph (b), the first sentence of paragraph
(c)(2), and the first and last sentences of paragraph (e), to read as
follows:
Sec. 575.13 Procedural requirements.
(a) * * * (1) * * * Proxies and proxy statements must be filed in
accordance with Sec. 563b.5(e) of this chapter and must be addressed to
the Business Transactions Division, Chief Counsel's Office, Office of
Thrift Supervision, at the address set forth in Sec. 516.40(b) of this
chapter. * * *
* * * * *
(b) Applications under this part. Except as provided in paragraph
(c) of this section, any application, notice or certification required
to be filed with OTS under this part must be filed in accordance with
part 516, subpart A of this chapter.
(c) * * *
(2) Filing instructions. Any Reorganization Notice submitted under
Sec. 575.3(b) of this part must be filed in accordance with part 516,
subpart A of this chapter. * * *
* * * * *
(e) Time-frames. All Reorganization Notices and applications filed
pursuant to this part must be processed in accordance with standard
treatment processing procedures at part 516, subparts A and E. * * *
The review by OTS of proxy solicitation materials, including forms of
proxy and proxy statements, and of any other materials used in
connection with the issuance of stock under Sec. 575.7 of this part
must not be subject to the applications processing time-frames set
forth in Secs. 516.210 through 516.290 of this chapter.
* * * * *
[[Page 66136]]
PART 584--REGULATED ACTIVITIES
70. The authority citation for part 584 continues to read as
follows:
Authority: 12 U.S.C. 1462, 1462a, 1463, 1464, 1467a, 1468.
73. Section 584.2-2 is amended by revising the last sentence of
paragraph (b) to read as follows:
Sec. 584.2-2 Permissible bank holding company activities of savings
and loan holding companies.
* * * * *
(b) * * * OTS must act upon such application under the guidelines
in part 516, subpart E of this chapter.
* * * * *
Dated: October 26, 2000.
By the Office of Thrift Supervision.
Ellen Seidman,
Director.
[FR Doc. 00-27959 Filed 11-1-00; 8:45 am]
BILLING CODE 6720-01-P