§ 550.2 - Applications.

(a) A Federal savings association desiring to exercise fiduciary powers, either through a trust department or through an affiliate, shall file, in accordance with § 516.1(c) of this chapter, an application indicating which trust services it wishes to offer and providing the information necessary to make the determinations under paragraph (b) of this section.

(b) In addition to any other facts or circumstances deemed proper, the Office, in passing upon an application to exercise trust powers, will give consideration to the following:

(1) The financial condition of the Federal savings association, provided that in no event shall trust powers be granted to a Federal savings association if its financial condition is such that the Federal savings association does not meet the financial standards required by state laws of State-chartered corporate fiduciaries;

(2) The needs of the community for fiduciary services and the probable volume of such fiduciary business available to the Federal savings association;

(3) The general character and ability of the management of the Federal savings association;

(4) The nature of the supervision to be given to the fiduciary activities, including the qualifications, experience and character of the proposed officer or officers of the trust department; and

(5) Whether the Federal savings association has available legal counsel to advise and pass upon fiduciary matters wherever necessary.

(c) The Regional Director, or his designee, is authorized to approve or disapprove any application filed under this section, that does not raise any significant issues of law or policy on which the Office has not taken a formal position. If each of the following conditions are not met, the Regional Director's (or his designee's) approval of such application must be made conditional upon each being met:

(1) The financial condition of the Federal savings association meets the financial standards prescribed for State-chartered corporate fiduciaries by the laws of each state in which the Federal savings association has offices from which it will offer the fiduciary services (the Regional Director may consider the regulatory capital of a Federal mutual savings association as equivalent to capital stock and surplus when state law prescribes minimum capital stock and surplus requirements) and the Regional Director has determined that the financial condition of the Federal savings association is sufficient to support the proposed trust operations;

(2) The Federa1 savings association has submitted a legal opinion from independent counsel certifying that the proposed trust powers are authorized for State-chartered corporate fiduciaries by the laws of each State in which the Federal savings association has offices from which it will offer fiduciary services;

(3) The Federal savings association's regulatory capital meets the Office's minimum requirements for that association under § 567.2 or § 567.3 of this chapter;

(4) Based on the most recent examination of the Federal savings association and any other available information, the Regional Director determines that any deficiencies with respect to the Federal savings association's management are minor;

(5) Based on the most recent examination of the Federal savings association and any other available information, the Regional Director determines that the overall performance of the Federal savings association is satisfactory;

(6) The proposed trust officer(s) who would be in charge of the trust operations must:

(i) Have been responsible for trust operations or fiduciary matters comparable to those proposed, for a period of at least two years during the previous five years; or

(ii) Have had two years of such experience prior to the last five years and successfully completed, during the previous year, an intensive course on trust operations comparable to those proposed;

(7) The Regional Director determines, based on the information available, that the proposed trust officer(s) is trustworthy and competent (the person's experience, education and other relevant factors may be considered) to be in charge of the proposed trust operations;

(8) The proposed trust department or service corporation has legal counsel available to provide advice with respect to fiduciary matters;

(9) The Regional Director has determined that there is sufficient need for the proposed trust activities in the communities to be served; and

(10) The approval of the appropriate Federal or State authorities has been obtained if the proposed fiduciary services are to be exercised through a state or Federally chartered service corporation.

(d) Approval by the Office or the Regional Director of an application under this section authorizes the applicant to exercise only those trust powers specified in the approval. Unless otherwise provided by the approval, fiduciary services based on those trust powers may be offered only in those offices listed in the application.