§ 516.3 - Definitions.

(a) Expedited treatment. (1) A savings association is eligible for expedited treatment by the OTS if all of the following conditions exist:

(i) The savings association has a composite rating of 1 or 2;

(ii) The savings association has a Community Reinvestment Act (CRA) rating of satisfactory or better;

(iii) The savings association has a Compliance rating of 1 or 2;

(iv) The savings association is meeting all of its capital requirements under part 567 of this chapter; and

(v) The savings association has not been notified by supervisory personnel that it is a problem association or an association in troubled condition.

(2) Where specified by regulation, a savings association that qualifies for expedited treatment under paragraph (a)(1) of this section may engage in activities upon filing a notice with the OTS together with any necessary certifications. For these activities, a notice will be all that is required and an association may engage in the activity unless the OTS objects within 30 days. Such notices are deemed to be applications for purposes of statutory and regulatory references to “applications.”

(3) The OTS may require complete applications from savings associations that otherwise qualify for expedited treatment in situations raising supervisory concern or a significant issue of law or policy and may request additional information from such associations when necessary. In these circumstances, the OTS may determine that such applications no longer qualify for expedited treatment.

(b) Standard treatment. (1) A savings association will receive standard treatment if any of the following conditions exist:

(i) The savings association has a composite rating of 3, 4 or 5;

(ii) The savings association has a less than satisfactory CRA rating;

(iii) The savings association has a Compliance rating of 3, 4, or 5;

(iv) The savings association has inadequate capital, including failing any one of its capital requirements under part 567 of this chapter; or

(v) The savings association has otherwise been notified by supervisory personnel as being a problem association or an association in troubled condition.

(2) Savings associations receiving standard treatment shall be required to file complete applications under the applicable regulations of this chapter with the OTS. Such applications will be denied unless the association affirmatively demonstrates how the application will clearly improve its financial and/or managerial condition or improve its compliance with the CRA or other consumer-related statutes without adversely affecting its financial or managerial resources.

(c) Composite rating. Composite rating means the composite numerical rating assigned to the savings association by the OTS under the Uniform Financial Institutions Rating System1 or an equivalent rating under a comparable rating system adopted by the OTS, and refers to the most recent rating (as determined either on-site or off-site by the most recent examination) of which the savings association has been notified in writing.

(d) CRA rating. Through June 30, 1989, savings associations received one of five CRA ratings: Outstanding (1), Good (2), Satisfactory (3), Needs Improvement (4), or Unsatisfactory (5). For examinations begun between July 1, 1989 and June 30, 1990, savings associations received numerical ratings of 1 through 5. During this period, ratings of 1 and 2 were considered satisfactory or better and 3, 4, and 5 were less than satisfactory. Savings associations examined for CRA performance after July 1, 1990 receive one of four ratings: Outstanding, Satisfactory, Needs to Improve, or Substantial Noncompliance.

(e) Compliance rating. A savings association's Compliance rating is determined pursuant to the OTS Compliance Rating System which measures an association's compliance with civil rights, consumer protection, and public interest regulations, including the Bank Secrecy Act, Bank Protection Act, Equal Employment Opportunity, Economic Sanctions, and Advertising.