[Federal Register Volume 60, Number 247 (Tuesday, December 26, 1995)]
[Rules and Regulations]
[Pages 66713-66720]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-30541]
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[[Page 66714]]
DEPARTMENT OF THE TREASURY
Office of Thrift Supervision
12 CFR 505, 506, 510, 512, 516, 543, 544, 545, 550, 552, 556, 563,
563b, 563c, 563d, 565, 566, 567, 571, 574, 575, 583, 584
[No. 95-200]
Technical Amendments; Loans to One Borrower
AGENCY: Office of Thrift Supervision, Treasury.
ACTION: Final rule.
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SUMMARY: The Office of Thrift Supervision (OTS) is revising its
regulations to incorporate a number of technical and conforming
amendments. The amendments include corrections to: Amendments adopted
in 1994 that were not codified as OTS intended, cross-references that
became outdated due to other regulatory amendments, regulations
affected by legislation, regulations containing addresses, office
titles, and other titles that are out of date, the table setting forth
OMB control numbers assigned to regulations under the Paperwork
Reduction Act, and regulations containing typographical errors.
This rulemaking also adopts as final the OTS's interim final rule
regarding loans to one borrower (LTOB).
EFFECTIVE DATE: December 26, 1996.
FOR FURTHER INFORMATION CONTACT: For Technical and Conforming Amendment
information contact: Mary Gottlieb, Senior Paralegal, (202) 906-7135,
Regulations & Legislation Division, Chief Counsel's Office. For Loans
to One Borrower information contact: William J. Magrini, Project
Manager, Supervision Policy, (202) 906-5744; or Valerie J. Lithotomos,
Counsel (Banking and Finance), Regulations and Legislation Division,
Chief Counsel's Office, (202) 906-6439, Regulations and Legislation
Division, Chief Counsel's Office, Office of Thrift Supervision, 1700 G
Street, NW., Washington DC 20552.
SUPPLEMENTARY INFORMATION:
Technical and Conforming Amendments
Sections 505.1 through 505.4 are being amended to reflect the
reorganization and relocation of the Public Reference Room announced in
the Federal Register on September 14, 1995.1 The former
Information Services Division is now part of the Dissemination Branch
and is located at 1700 G Street, NW. on the lower level.
\1\ 60 FR 47801 (September 14, 1995).
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Part 506, concerning the control numbers assigned pursuant to the
Paperwork Reduction Act, is being amended to reflect the Paperwork
Reduction Act of 1995 2 and to generally update the regulation
reference table.
\2\ Pub. L. 104-13 (May 22, 1995).
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Section 516.1 is being amended to correct the addresses of OTS's
Regional Offices. The definition of ``CAMEL Rating'' found at
Sec. 516.3(c) is being amended to reflect the previous global change
from the MACRO to the CAMEL rating system for examinations.3
Section 516.3(c) still refers to the components of the obsolete MACRO
system.
\3\ 59 FR 18474 (April 19, 1994).
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The model bylaws for stock associations in the appendix to part 552
are being amended to make them conform with the regulatory change that
removed the annual independent audit requirement for small savings
associations with composite CAMEL ratings of 1 or 2.4 Institutions
regulated under the Securities Exchange Act of 1934 ('34 Act) will
still have to comply with Sec. 552.10, which requires associations to
send an annual report to stockholders containing financial statements
that satisfy the requirements of Rule 14a-3 of the '34 Act. Rule 14a-3
allows an institution that does not have an annual audit to include
unaudited financial statements in its annual report.
\4\ 59 FR 60300 (November 23, 1994).
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Sections 563b.2(a)(16) and 574.6(a)(4)-(a)(6) were inadvertently
removed 5 and are being reinstated without revision.
\5\ 59 FR 22725 (May 3, 1994); 59 FR 28468 (June 2, 1994).
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This final rule also includes a number of non-substantive technical
revisions correcting a variety of erroneous cross-references and
eliminating obsolete terminology. The majority of the revisions concern
the removal of the term ``District Director'' and ``District Office.''
The OTS's field offices were converted from district to regional
offices several years ago. The regulations have been reviewed to
determine, in each individual case, whether references to ``District
Director'' should refer instead to ``Regional Director'' or ``OTS,''
and whether references to ``District Office'' should refer instead to
``Regional Office'' or ``OTS.''
Loans to One Borrower
On March 28, 1995, the OTS published an interim final rule with
request for comment on LTOB.6 That interim final rule reflected
changes that the Office of the Comptroller of the Currency (OCC) had
recently made to its lending limits regulation. Section 5(u) of the
Home Owners' Loan Act requires that savings association lending limits
conform to those applicable to national banks.7
\6\ See 60 FR 15861 (March 28, 1995).
\7\ 12 U.S.C. 1464 (u).
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The comment period for the interim final rule closed on April 27,
1995. The OTS received two comment letters: one from a savings bank and
one from a national trade association. Both comment letters raised one
issue--whether the removal of the term ``monthly or quarterly'' (used
in describing the periodic reports in which LTOB limits must be
computed) prevents savings associations from calculating their LTOB
limits on a monthly basis.
The reference to ``monthly or quarterly'' was removed because the
OTS no longer requires institutions to file monthly Thrift Financial
Reports (TFRs). TFRs are now filed only at the end of each quarter.
Thus, for compliance tracking purposes, an institution's LTOB limits
are now normally computed on the basis of its unimpaired capital and
unimpaired surplus at the end of each quarter. The purpose for the
quarterly computation rule is to reduce the burden associated with
frequent recomputation of LTOB limits. The OTS will not object if
institutions choose to recompute their LTOB limits more frequently than
quarterly, provided that adequate documentation is maintained.
Moreover, we also note that the LTOB rule expressly provides that
if an association knows, or has reason to know, that its level of
unimpaired capital and unimpaired surplus has changed significantly,
either upward or downward, subsequent to a quarter-end computation, the
institution must recompute its LTOB limits.8
\8\ See 12 CFR 563.93(f)(1).
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Because the OTS has decided to make no substantive changes to its
interim final rule, that rule is adopted as final today, with one
technical correction. The words ``general valuation'' are being removed
from the definition of ``unimpaired capital and unimpaired surplus'' at
Sec. 563.93(b)(11)(ii). In its present form, the definition specifies
that an association's ``general valuation allowances for loan and lease
losses not included in supplementary capital under part 567 of this
chapter'' are to be added to the association's computation of
unimpaired capital and unimpaired surplus.9 The words ``general
valuation''
[[Page 66715]]
were inadvertently included in the interim final rule. The words are
extraneous.
\9\ 60 FR at 15864.
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Administrative Procedure Act; Riegle Community Development and
Regulatory Improvement Act of 1994
The OTS has found good cause to dispense with both prior notice and
comment on this final rule and a 30-day delay of its effective date
mandated by the Administrative Procedure Act.10 OTS believes that
it is contrary to public interest to delay the effective date of the
rule, as it corrects a number of errors that have caused confusion and
these corrections will aid the public in using OTS's regulations.
Because the technical amendments in the final rule are not substantive,
they will not detrimentally affect savings associations by becoming
effective immediately; the LTOB rule is already effective.
\10\ 5 U.S.C. 553.
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In addition, this document is exempt from the requirement found in
section 302 of the Riegle Community Development and Regulatory
Improvement Act of 1994 11 that regulations must not take effect
before the first day of the quarter following publication, as it
imposes no new requirements.
\11\ Pub. L. No 103-325, 12 U.S.C. 4802.
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Regulatory Flexibility Act
Pursuant to section 605(b) of the Regulatory Flexibility
Act,12 it is certified that this technical corrections regulation
will not have a significant economic impact on a substantial number of
small savings associations, small service corporations, or other small
entities.
\12\ Pub. L. No 96-354, 5 U.S.C. 601.
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Executive Order 12866
The Acting Director has determined that this rule is not a
``significant regulatory action'' for purposes of Executive Order
12866.
Unfunded Mandates Reform Act of 1995
The OTS has determined that the requirements of this final rule
will not result in expenditures by State, local, and tribal
governments, or by the private sector, of more than $100 million in any
one year. Accordingly, a budgetary impact statement is not required
under section 202 of the Unfunded Mandates Reform Act of 1995.
List of Subjects
12 CFR Part 505
Freedom of information.
12 CFR Part 506
Reporting and recordkeeping requirements.
12 CFR Part 510
Administrative practice and procedure.
12 CFR Part 512
Administrative practice and procedure, Investigations.
12 CFR Part 516
Administrative practice and procedure, Reporting and recordkeeping
requirements, Savings associations.
12 CFR Parts 543 and 544
Reporting and recordkeeping requirements, Savings associations.
12 CFR Part 545
Accounting, Consumer protection, Credit, Electronic funds
transfers, Investments, Manufactured homes, Mortgages, 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 556
Savings associations.
12 CFR Part 563
Accounting, Advertising, Crime, Currency, Flood insurance,
Investments, Mortgages, Reporting and recordkeeping requirements,
Savings associations, Securities, Surety bonds.
12 CFR Part 563b
Reporting and recordkeeping requirements, Savings associations,
Securities.
12 CFR Part 563c
Accounting, Savings associations, Securities.
12 CFR Part 563d
Authority delegations (Government agencies), Reporting and
recordkeeping requirements, Savings associations, Securities.
12 CFR Part 565
Administrative practice and procedure, Capital, Savings
associations.
12 CFR Part 566
Liquidity, Reporting and recordkeeping requirements, Savings
associations.
12 CFR Part 567
Capital, Savings associations.
12 CFR Part 571
Accounting, Conflicts of interest, Investments, Reporting and
recordkeeping requirements, 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 583
Holding companies, Savings associations.
12 CFR Part 584
Administrative practice and procedure, Holding companies, Reporting
and recordkeeping requirements, Savings associations, Securities.
Accordingly, for the reasons set out in the preamble and under the
authority of 12 U.S.C. 1462a, the Office of Thrift Supervision hereby
amends chapter V, title 12 of the Code of Federal Regulations and
adopts as final the interim rule amending 12 CFR 563.93 published at 60
FR 15861 on March 28, 1995, with one change, as set forth below:
Chapter V [Amended]
1. Chapter V of title 12 is amended by removing the headings for
subchapters A through G; and by removing the term ``subchapter''
wherever it appears, and by adding in lieu thereof the word
``chapter''.
PART 505--FREEDOM OF INFORMATION ACT
2. The authority citation for part 505 continues to read as
follows:
Authority: 5 U.S.C. 552; 12 U.S.C. 1462a, 1463, 1464.
Sec. 505.1 [Amended]
3. Section 505.1 is amended in paragraph (a) by removing the word
``('Office')'', and by adding in lieu
[[Page 66716]]
thereof the word ``('OTS')'', and by removing the words ``the Office
as'', and adding in lieu thereof the words ``the OTS as''; and in
paragraph (b) by removing the word ``Office'' each place it appears,
and by adding in lieu thereof the word ``OTS''.
4. Section 505.2 is revised to read as follows:
Sec. 505.2 Public reference room.
The OTS will make materials available for review on an ad hoc basis
when necessary. Contact the Dissemination Branch, Records Management
and Information Policy Division, Office of Thrift Supervision, 1700 G
Street, NW., Washington, DC 20552, or visit the Public Reference Room
at 1700 G Street, NW., lower level, from 9:00 a.m. to 4:00 p.m. on
business days.
5. Section 505.3 is revised to read as follows:
Sec. 505.3 Requests for records.
Initial determinations under 31 CFR 1.5(g) as to whether to grant
requests for records of the OTS will be made by the Manager,
Dissemination Branch or by an official so designated. Requests may be
mailed to: Freedom of Information Act Request, Dissemination Branch,
Records Management and Information Policy Division, Office of Thrift
Supervision, 1700 G Street, NW., Washington, DC 20552, or marked
``FOIA'' and delivered in person to the Public Reference Room,
Dissemination Branch, Records Management and Information Policy
Division, 1700 G Street, NW., Lower Level. Requests may also be sent by
facsimile.
6. Section 505.4 is revised to read as follows:
Sec. 505.4 Administrative appeal of initial determination to deny
records.
Appellate determinations under 31 CFR 1.5(h) with respect to
records of the OTS will be made by the Executive Director for
Administration or the Director, Records Management and Information
Policy Division. Appeals by mail should be addressed to: Dissemination
Branch, Records Management and Information Policy Division, 1700 G
Street, NW., Washington, DC 20552. Appeals may be delivered personally
to the Dissemination Branch, Records Management and Information Policy
Division, Office of Thrift Supervision, 1700 G Street, NW., Lower
Level. Appeals may also be sent by facsimile.
PART 506--INFORMATION COLLECTION REQUIREMENTS UNDER THE PAPERWORK
REDUCTION ACT
7. The authority citation for part 506 continues to read as
follows:
Authority: 44 U.S.C. 3501 et seq.
8. Section 506.1 is revised to read as follows:
Sec. 506.1 OMB control numbers assigned pursuant to the Paperwork
Reduction Act.
(a) Purpose. This part collects and displays the control numbers
assigned to information collection requirements contained in
regulations of the Office of Thrift Supervision by the Office of
Management and Budget (OMB) pursuant to the Paperwork Reduction Act of
1995, Pub. L. 104-13, 109 Stat. 163, and is adopted in compliance with
the requirements of 5 CFR 1320.8. Information collection requirements
that are not mandated by statute must be assigned control numbers by
OMB in order to be enforceable.
(b) Display.
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Current OMB
12 CFR part or section where identified and described control No.
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502.3................................................... 1550-0053
510..................................................... 1550-0081
516.1(c)................................................ 1550-0056
Part 528................................................ 1550-0021
528.1a.................................................. 1550-0011
533.1................................................... 1550-0011
543.1................................................... 1550-0018
543.2................................................... 1550-0005
543.9................................................... 1550-0007
544.2................................................... 1550-0017
544.5................................................... 1550-0018
545.36(d)............................................... 1550-0011
545.74.................................................. 1550-0013
545.81.................................................. 1550-0077
545.82.................................................. 1550-0033
545.92.................................................. 1550-0006
545.95.................................................. 1550-0006
545.96(c)............................................... 1550-0011
545.121................................................. 1550-0047
545.131................................................. 1550-0011
546.2................................................... 1550-0016
546.4................................................... 1550-0066
550.2................................................... 1550-0037
550.14.................................................. 1550-0037
552.2-1................................................. 1550-0005
552.2-6................................................. 1550-0007
552.4................................................... 1550-0017
552.5................................................... 1550-0018
552.6................................................... 1550-0025
552.7................................................... 1550-0025
552.10.................................................. 1550-0019
552.11.................................................. 1550-0011
552.13.................................................. 1550-0016,
1550-0025
562.1(b)................................................ 1550-0011
563.1(b)................................................ 1550-0011
563.10.................................................. 1550-0027
563.22.................................................. 1550-0016,
1550-0025
563.34.................................................. 1550-0011
563.37(c)............................................... 1550-0067
563.38.................................................. 1550-0065
563.41(e)............................................... 1550-0011
563.42(e)............................................... 1550-0011
563.43 (f) through (h).................................. 1550-0075
563.43(i)(3)............................................ 1550-0075
563.47(e)............................................... 1550-0011
563.48(c)............................................... 1550-0011
563.74.................................................. 1550-0050
563.80.................................................. 1550-0061
563.81.................................................. 1550-0030
563.93(f)............................................... 1550-0011
563.99-563.101 (Subpart D), Appendix A.................. 1550-0078
563.99e................................................. 1550-0011
563.132................................................. 1550-0033
563.134................................................. 1550-0059
563.170................................................. 1550-0011
563.170(c).............................................. 1550-0011,
1550-0083
563.172................................................. 1550-0011
563.173(e).............................................. 1550-0011
563.174(e).............................................. 1550-0011
563.174(f).............................................. 1550-0011
563.175(e).............................................. 1550-0011
563.175(f).............................................. 1550-0011
563.177................................................. 1550-0041
563.180................................................. 1550-0084
563.180(d).............................................. 1550-0003
563.181................................................. 1550-0032
563.183................................................. 1550-0032
Part 563b............................................... 1550-0014
563b.4.................................................. 1550-0032
563b.20 through 563b.32................................. 1550-0074
Part 563d............................................... 1550-0019
Part 563e............................................... 1550-0012
Part 563f............................................... 1550-0051
Part 563g............................................... 1550-0035
Part 564................................................ 1550-0011
566.4................................................... 1550-0011
Part 568................................................ 1550-0062
571.6................................................... 1550-0005
574..................................................... 1550-0032
574.6................................................... 1550-0015
Part 575................................................ 1550-0071
584.2-1................................................. 1550-0063
584.2-2................................................. 1550-0063
584.9................................................... 1550-0063
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PART 510--MISCELLANEOUS ORGANIZATIONAL REGULATIONS
8a. The authority citation for part 510 is revised to read as
follows:
Authority: 12 U.S.C. 1462a, 1463, 1464.
Sec. 510.2 [Amended]
8b. Section 510.2 is amended in paragraph (a) by removing the
phrase ``subchapters A, B, C, D, E, F, and G of''.
PART 512--RULES FOR INVESTIGATIVE PROCEEDINGS AND FORMAL
EXAMINATION PROCEEDINGS
9. The authority citation for part 512 is revised to read as
follows:
Authority: 12 U.S.C. 1462a, 1463, 1464, 1467, 1467a, 1813; 15
U.S.C. 78 l.
[[Page 66717]]
Sec. 512.4 [Amended]
10. Section 512.4 is amended by removing the phrase ``Director or
any Deputy Director of Enforcement'', and by adding in lieu thereof the
phrase ``Deputy Chief Counsel for Enforcement or the appropriate
Regional Counsel for Enforcement''.
Sec. 512.5 [Amended]
11. Section 512.5 is amended in paragraph (a) by removing the
phrase ``Director or any Deputy Director of Enforcement'', and by
adding in lieu thereof the phrase ``Deputy Chief Counsel for
Enforcement or the appropriate Regional Counsel for Enforcement''.
PART 516--APPLICATION PROCESSING GUIDELINES AND PROCEDURES
12. 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.
Sec. 516.1 [Amended]
13. Section 516.1 is amended in paragraph (b)(1) by removing the
word ``17th'' and by adding in lieu thereof the word ``18th''; in
paragraph (b)(2) by removing the number ``30348-5217'' and by adding in
lieu thereof the number ``30309''; in paragraph (b)(3) by removing the
phrase ``111 East Wacker Drive, suite 800, Chicago, Illinois 60601-
4360'', and by adding in lieu thereof the phrase ``200 West Madison
Street, Suite 1300, Chicago, Illinois 60606''; in paragraph (b)(4) by
removing the phrase ``P.O. Box 619027,''; and in paragraph (b)(5) by
removing the word ``Center'' and by adding in lieu thereof the word
``Street''.
14. Section 516.3 is amended by revising paragraph (c) to read as
follows:
Sec. 516.3 Definitions.
* * * * *
(c) CAMEL rating. A savings association's CAMEL rating is its
Capital, Assets, Management, Earnings, and Liquidity rating as of the
most recent rating update (as determined either on-site or off-site by
the most recent examination) of which the savings association has been
notified in writing.
* * * * *
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 543.8 is amended in paragraph (a) by removing the
phrase ``District Director or his or her designee'', and by adding in
lieu thereof the word ``OTS''; and by adding a second sentence to read
as follows:
Sec. 543.8 Conversion of State mutual charter to Federal charter.
(a) * * * Requests for such approval shall be filed in accordance
with Sec. 516.1(c) of this chapter.
Sec. 543.11 [Amended]
17. Section 543.11 is amended in paragraph (c)(1)(iii)(C) by
removing the last sentence.
PART 544--CHARTER AND BYLAWS
18. The authority citation for part 544 continues to read as
follows:
Authority: 12 U.S.C. 1462, 1462a, 1463, 1464, 1467a, 2901 et
seq.
Sec. 544.3 [Amended]
19. Section 544.3 is amended in the petition by removing the phrase
``District Director'', and by adding in lieu thereof the phrase
``Regional Director''.
PART 545--OPERATIONS
20. The authority citation for part 545 continues to read as
follows:
Authority: 12 U.S.C. 1462a, 1463, 1464, 1828.
Sec. 545.74 [Amended]
21. Section 545.74 is amended in paragraph (c)(4)(iv) by removing
the phrase ``District Director or his or her designee'', and by adding
in lieu thereof the phrase ``Regional Director''; and by removing the
phrase ``he or she has'', and by adding in lieu thereof the phrase
``there are''.
Sec. 545.82 [Amended]
22. Section 545.82 is amended in paragraph (c)(1)(i) by removing
the phrase ``District Director'', and by adding in lieu thereof the
phrase ``OTS'', and by removing the phrase ``of the parent Federal
savings association''; in paragraph (c)(1)(ii) by removing the phrase
``District Director'', and by adding in lieu thereof the word ``OTS'',
and by removing the phrase ``the Federal savings association's''; and
in paragraph (f)(2) by removing the phrase ``its District Director'',
and by adding in lieu thereof the phrase ``the OTS''.
Sec. 545.121 [Amended]
23. Section 545.121 is amended in paragraph (c) concluding text by
removing the phrase ``District Director'', and by adding in lieu
thereof the phrase ``Regional Director'', and by removing the phrase
``Director of the Office'', and by adding in lieu thereof the word
``OTS''; and in the third sentence of paragraph (e) by removing the
phrase ``it the person'', and by adding in lieu thereof the phrase ``if
the person''.
Sec. 545.131 [Amended]
24. Section 545.131 is amended in paragraph (b)(7) introductory
text by removing the phrase ``District Director'', and by adding in
lieu thereof the phrase ``Regional Director''.
PART 550--TRUST POWERS OF FEDERAL SAVINGS ASSOCIATIONS
25. The authority citation for part 550 continues to read as
follows:
Authority: 12 U.S.C. 1462a, 1463, 1464, 1735f-7.
Sec. 550.2 [Amended]
26. Section 550.2 is amended in paragraph (c) introductory text by
removing the phrase ``District Director's'', and by adding in lieu
thereof the phrase ``Regional Director's''; and in paragraph (c)
introductory text, and paragraphs (c)(1), (c)(4), (c)(5), (c)(7),
(c)(9), and (d) by removing the phrase ``District Director'' each place
it appears, and by adding in lieu thereof the phrase ``Regional
Director''.
Sec. 550.3 [Amended]
27. Section 550.3 is amended by removing the phrase ``or the
District Director'', and by adding in lieu thereof the phrase
``Regional Director''.
Sec. 550.10 [Amended]
28. Section 550.10 is amended in paragraph (b)(2) by removing the
phrase ``District Director'', and by adding in lieu thereof the phrase
``Regional Director''.
Sec. 550.13 [Amended]
29. Section 550.13(b) is amended by removing the phrase ``shall
also be filed with the District Director and that the Office may review
such documents'', and by adding in lieu thereof the phrase ``shall also
be filed in accordance with the filing instructions in Sec. 516.1(c) of
this chapter and that the OTS may review such documents''.
Sec. 550.14 [Amended]
30. Section 550.14 is amended in paragraph (a) by removing the
phrase ``Sec. 500.32(c)(5)'', and by adding in lieu thereof the phrase
``Sec. 516.1(c)''; and in paragraphs (b) and (c) introductory text by
removing the phrase ``District Director'', and by adding in lieu
thereof the phrase ``Regional Director''.
[[Page 66718]]
Sec. 550.15 [Amended]
31. Section 550.15 is amended in paragraph (a) by removing the
phrase ``parts 558 and 559 of this title'', and by adding in lieu
thereof the phrase ``part 558 of this chapter''.
PART 552--INCORPORATION, ORGANIZATION, AND CONVERSION OF FEDERAL
STOCK ASSOCIATIONS
32. The authority citation for part 552 continues to read as
follows:
Authority: 12 U.S.C. 1462, 1462a, 1463, 1464, 1467a.
Sec. 552.5 [Amended]
33. Section 552.5 is amended in paragraph (a) by removing the
phrase ``552.6-3, and 552.6-4'', and by adding in lieu thereof the
phrase ``and 552.6-3''; and in paragraph (b)(1)(ii) by removing the
phrase ``552.6-3 and 552.6-4'', and by adding ``and 552.6-3'' in its
place.
34. Article VIII of the appendix to part 552 is revised to read as
follows:
Appendix to Part 552--Model Bylaws for Stock Associations
* * * * *
Article VIII--Fiscal Year
The fiscal year of the association shall end on the
________________ of ________________ of each year. The appointment
of accountants shall be subject to annual ratification by the
shareholders.
* * * * *
PART 556--STATEMENTS OF POLICY
34a. The authority citation for part 556 continues to read as
follows:
Authority: 5 U.S.C. 552, 559; 12 U.S.C. 1464, 1701j-3; 15 U.S.C.
1693-1693r.
Sec. 556.5 [Amended]
34b. Section 556.5 is amended in paragraph (c)(4) by removing the
phrases ``of chapter C'' and ``of chapter D''.
PART 563--OPERATIONS
35. The authority citation for part 563 continues to read as
follows:
Authority: 12 U.S.C. 375b, 1462, 1462a, 1463, 1464, 1467a, 1468,
1817, 1828, 3806; 42 U.S.C. 4106.
Sec. 563.9 [Amended]
36. Section 563.9 is amended in paragraph (f) by removing the
phrase ``Notwithstanding the provisions of Sec. 571.25 of this chapter,
a'', and by adding in lieu thereof the word ``A''.
Sec. 563.93 [Amended]
37. Section 563.93 is amended in paragraph (b)(11)(ii) by removing
the phrase ``general valuation''.
Sec. 563.134 [Amended]
38. Section 563.134 is amended in paragraphs (b)(5) and (c) by
removing the phrase ``District Director'', and by adding in lieu
thereof the phrase ``Regional Director''.
Sec. 563.160 [Amended]
39. Section 563.160 is amended in paragraphs (c)(2) and (d)(1) by
removing the phrase ``District Director'', and by adding in lieu
thereof the phrase ``Regional Director''; and by removing paragraph
(f).
Sec. 563.170 [Amended]
40. Section 563.170 is amended in paragraph (b)(1) by removing the
phrase ``District Director'' each place it appears, and by adding in
lieu thereof the phrase ``Regional Director'', and by removing the term
``District'' and by adding in lieu thereof the term ``Region''; in
paragraph (c)(3)(iii) by removing the phrase ``, its District Director,
or the'', and by adding in lieu thereof the phrase ``or its''; and in
paragraph (e) by removing the phrases ``District Director'' and
``District'', and by adding in lieu thereof the phrases ``Regional
Director'' and ``Region'', respectively.
Sec. 563.177 [Amended]
40a. Section 563.177 is amended in paragraphs (a) and (b) by
removing the phrase ``chapter II'', and by adding in lieu thereof the
phrase ``subchapter II''.
Sec. 563.183 [Amended]
41. Section 563.183 is amended in paragraph (c)(1) by removing the
phrase ``shall be by letter signed by the officer making the report
with the original and two copies to the District Director or his or her
designee'', and by adding in lieu thereof the phrase ``shall be done in
accordance with Sec. 516.1(c) of this chapter''.
PART 563b--CONVERSIONS FROM MUTUAL TO STOCK FORM
42. 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.
43. Section 563b.2 is amended by removing paragraph (a)(15), by
redesignating paragraph (a)(16) as paragraph (a)(15) and by adding new
paragraph (a)(16) to read as follows:
Sec. 563b.2 Definitions.
(a) * * *
(16) Employee. The term employee does not include a director or
officer.
* * * * *
Sec. 563b.3 [Amended]
44. Section 563b.3 is amended in the last sentence of paragraph
(c)(8) by removing the phrase ``Sec. 563b.10(c)'', and by adding in
lieu thereof the phrase ``Sec. 563b.10''.
Sec. 563b.3 [Amended]
44a. Section 563b.3 is amended in the charter provision of
paragraph (c)(13) by removing the phrase ``chapter D'', and by adding
in lieu thereof the phrase ``Part 563b''.
Sec. 563b.4 [Amended]
45. Section 563b.4 is amended by designating the concluding text of
paragraph (b)(1)(i) as paragraph (b)(1)(ii); and by removing the phrase
``Corporate and Securities'' where it appears in newly designated
paragraph (b)(1)(ii) and by adding in lieu thereof the phrase
``Business Transactions''.
Sec. 563b.8 [Amended]
46. Section 563b.8 is amended by removing the phrase ``Corporate
and Securities'' where it appears in the first, second, and third
sentences of paragraph (e)(1) and adding in lieu thereof the phrase
``Business Transactions''.
Sec. 563b.29 [Amended]
47. Section 563b.29 is amended in paragraph (b) by removing the
phrase ``District Director'', and by adding in lieu thereof the phrase
``Regional Director''.
PART 563c--ACCOUNTING REQUIREMENTS
48. The authority citation for part 563c is revised to read as
follows:
Authority: 12 U.S.C. 1462a, 1463, 1464; 15 U.S.C. 78c(b), 78m,
78n, 78w.
Sec. 563c.3 [Amended]
49. Section 563c.3 is amended by removing paragraph (b) and the
paragraph designation for paragraph (a).
PART 563d--SECURITIES OF SAVINGS ASSOCIATIONS
50. The authority citation for part 563d is revised to read as
follows:
Authority: 12 U.S.C. 1462a, 1463, 1464; 15 U.S.C. 78c(b), 78l,
78m, 78w, 78d-1.
Sec. 563d.1 [Amended]
51. Section 563d.1 is amended by removing the phrase ``Corporate
and Securities'', and by adding in lieu thereof the phrase ``Business
Transactions''.
Sec. 563d.2 [Amended]
52. Section 563d.2 is amended by removing the phrase ``Corporate
and
[[Page 66719]]
Securities'' where it appears in the first, third, and fourth
sentences, and by adding in lieu thereof the phrase ``Business
Transactions''; and by removing the word ``District'', and the phrases
``District Office'', ``District Offices'', and ``District Director''
where they appear, and by adding in lieu thereof the word ``Region'',
and the phrases ``Regional Office'', ``Regional Offices'', and
``Regional Director'', respectively.
PART 565--PROMPT CORRECTIVE ACTION
53. The authority citation for part 565 continues to read as
follows:
Authority: 12 U.S.C. 1831o.
Sec. 565.9 [Amended]
54. Section 565.9 is amended by removing the phrase ``section
565.8'' in paragraph (a) and by adding in lieu thereof the phrase
``Sec. 565.7''.
PART 566--LIQUIDITY
55. The authority citation for part 566 is revised to read as
follows:
Authority: 12 U.S.C. 1462, 1462a, 1463, 1464, 1465, 1467a; 15
U.S.C. 1691, 1691a.
Sec. 566.2 [Amended]
56. Section 566.2 is amended in paragraph (c) by removing the
phrase ``, Sec. 566.1, and Sec. 566.3'', and by adding in lieu thereof
the phrase ``and Sec. 566.1''.
PART 567--CAPITAL
57. The authority citation for part 567 continues to read as
follows:
Authority: 12 U.S.C. 1462, 1462a, 1463, 1464, 1467a, 1828
(note).
58. Section 567.3 is amended by:
a. revising paragraph (a);
b. removing, in paragraph (b)(5), the phrase ``Sec. 563.131 of this
chapter or other Office regulations'', and by adding in lieu thereof
the phrase ``other Office regulations or other guidance'';
c. revising paragraph (d)(1);
d. removing, in paragraphs (d)(2) and (d)(3), the phrases
``District Director'' and ``District Director's'' each place they
appear, and by adding in lieu thereof the phrases ``OTS'' and
``OTS's'', respectively;
e. revising the fourth and fifth sentences of paragraph (d)(3), and
removing the third sentence of paragraph (d)(3); and
f. revising paragraph (d)(5). The revisions read as follows:
Sec. 567.3 Individual minimum capital requirements.
(a) Purpose and scope. The rules and procedures specified in this
section apply to the establishment of an individual minimum capital
requirement for a savings association that varies from the requirement
that would otherwise apply to the savings association under Sec. 567.2
of this part. Pursuant to 12 U.S.C. 1464(s), the OTS may establish such
individual minimum capital requirements for savings associations as it
deems necessary or appropriate on a case-by-case basis in light of the
particular circumstances of each savings association.
* * * * *
(d) Procedures--(1) Notification. When the OTS determines that a
minimum capital requirement different from that set forth in Sec. 567.2
of this part is necessary or appropriate for a particular savings
association, it shall notify the savings association in writing of its
proposed individual minimum capital requirement; the schedule for
compliance with the new requirement; and the specific causes for
determining that the higher individual minimum capital requirement is
necessary or appropriate for the savings association. The OTS shall
forward the notifying letter to the appropriate state supervisor if a
state-chartered savings association would be subject to an individual
minimum capital requirement.
* * * * *
(3) * * * The OTS shall provide the savings association and the
appropriate state supervisor (if a state-chartered savings association
is involved) with a written decision on the individual minimum capital
requirement, addressing the substantive comments made by the savings
association and setting forth the decision and the basis for that
decision. Upon receipt of this decision by the savings association, the
individual minimum capital requirement becomes effective and binding
upon the savings association. * * *
* * * * *
(5) Change in circumstances. If, after a decision is made under
paragraph (d)(3) of this section, there is a change in the
circumstances affecting the savings association's capital adequacy or
its ability to reach its required minimum capital level by the
specified date, OTS may amend the individual minimum capital
requirement or the savings association's schedule for such compliance.
The OTS may decline to consider a savings association's request for
such changes that are not based on a significant change in
circumstances or that are repetitive or frivolous. Pending the OTS's
reexamination of the original decision, that original decision and any
compliance schedule established thereunder shall continue in full force
and effect.
59. Section 567.4 is amended by:
a. removing, in paragraph (a)(1) introductory text, the phrase ``,
after referral of an appropriate case by a District Director and based
on a recommendation of the Office's Office of Enforcement developed in
coordination with the Deputy Director for Regional Operations'';
b. revising paragraph (a)(2) introductory text;
c. revising the second and fifth sentences in paragraph (a)(3)(i)
introductory text;
d. removing, in paragraph (a)(3)(i) introductory text the word
``Enforcement'' each place it appears, and adding in lieu thereof the
phrase ``the Office''; and in paragraphs (a)(3)(i)(A) and (C),
(a)(3)(ii), (a)(4), and (a)(5)(ii), by removing the words ``of
Enforcement'' each place it appears;
e. removing, in paragraph (a)(4), the phrase ``, based on a
recommendation from the Office developed in coordination with the
Deputy Director for Regional Operations,'';
f. revising paragraph (a)(6); and
g. removing in paragraph (b)(1) the phrase ``(such as an
application under Sec. 563.131 of this chapter, or an application for
approval to exceed its applicable equity risk investment threshold
pursuant to Sec. 563.98(g) of this chapter)''.
The revisions read as follows:
Sec. 567.4 Capital directives.
(a) * * *
(2) Notice of intent to issue capital directive. The OTS will
determine whether to initiate the process of issuing a capital
directive. The OTS will notify a savings association in writing by
registered mail of its intention to issue a capital directive. If a
state-chartered savings association is involved, the OTS will also
notify and solicit comment from the appropriate state supervisor. The
notice will state:
* * * * *
(3) Response to notice of intent. (i) * * * The response should
also include any information that the savings association wishes the
OTS to consider in deciding whether to issue a capital directive. * * *
Such responses shall be submitted in accordance with Sec. 516.1(c) of
this chapter. * * *
* * * * *
(6) Change in circumstances. Upon a change in circumstances, a
savings association may submit a request to the OTS to reconsider the
terms of the capital directive or consider changes in the savings
association's capital plan
[[Page 66720]]
issued under a directive for the savings association to achieve its
minimum capital requirement. If the OTS believes such a change is
warranted, the OTS may modify the savings association's capital
requirement or may refuse to make such modification if it determines
that there are not significant changes in circumstances. Pending a
decision on reconsideration, the capital directive and capital plan
shall continue in full force and effect.
* * * * *
Sec. 567.10 [Amended]
60. Section 567.10 is amended in paragraphs (a)(3) introductory
text and (c) by removing the phrase ``its District Director'' and by
adding in lieu thereof the phrase ``the Regional Director''.
Sec. 567.13 [Amended]
61. Section 567.13 is amended in paragraph (c) by removing the
phrase ``by the District Director''.
PART 571--STATEMENTS OF POLICY
62. The authority citation for part 571 continues to read as
follows:
Authority: 5 U.S.C. 552, 559; 12 U.S.C. 1462a, 1463, 1464.
Sec. 571.6 [Amended]
63. Section 571.6 is amended in paragraphs (a)(2)(iv), (b)(3)(i),
(d)(1), (d)(2), (d)(4)(ii), and (g) by removing the phrase ``District
Director'', and by adding in lieu thereof the phrase ``Regional
Director''; and by redesignating paragraph (b)(3)(i) as paragraph
(b)(3).
Sec. 571.13 [Amended]
64. Section 571.13 is amended in the introductory text of paragraph
(a) by removing the phrase ``563.90 and''; and in paragraph (a)(1) by
removing the phrase ``or District Directors''.
Sec. 571.20 [Amended]
65. Section 571.20 is amended in paragraph (a) by removing the
phrase ``District Director'', and by adding in lieu thereof the phrase
``Regional Director''.
PART 574--ACQUISITION OF CONTROL OF SAVINGS ASSOCIATIONS
66. The authority citation for part 574 continues to read as
follows:
Authority: 12 U.S.C. 1467a, 1817, 1831i.
Sec. 574.2 [Amended]
67. Section 574.2 is amended by removing and reserving paragraph
(i).
Sec. 574.3 [Amended]
68. Section 574.3 is amended in paragraph (c)(2)(v) by removing the
phrase ``District Director'', and by adding in lieu thereof the phrase
``Regional Director''.
Sec. 574.4 [Amended]
69. Section 574.4 is amended in paragraph (c)(4)(ii) by removing
the phrase ``District Director or his or her designee'', and by adding
in lieu thereof the phrase ``Regional Director''; and in paragraph
(f)(2) by removing the phrase ``Sec. 574.6(b)(3) of this part'', and by
adding in lieu thereof the phrase ``Sec. 516.1(c) of this chapter''.
70. Section 574.6 is amended by adding paragraphs (a)(4) through
(a)(6); by removing in paragraph (c)(3)(ii)(D) the phrase ``chapter
II'', and by adding in lieu thereof the phrase ``subchapter II''; and
by removing paragraph (c)(3)(iii) to read as follows:
Sec. 574.6 Procedural requirements.
(a) * * *
(4) H-(e)3. This application shall be used for all applications
filed under Sec. 574.3(a) of this part:
(i) By a savings and loan holding company for approval of
acquisitions by a merger, consolidation, or purchase of assets of a
savings association or uninsured institution or a savings and loan
holding company; or
(ii) By any company for approval of acquisitions by a merger,
consolidation, or purchase of assets of two or more savings
associations.
(5) H-(e)4. This information filing shall be used to claim that a
reorganization is exempt from prior written approval of the OTS under
Sec. 574.3(c)(1)(ii) of this part.
(6) Notice Form 1393, parts A and B. This form shall be used for
all notices filed under Sec. 574.3(b) of this part regarding the
acquisition of control of a savings association by any person or
persons not constituting a company except as provided in paragraph
(a)(3) of this section.
* * * * *
Sec. 574.7 [Amended]
71. Section 574.7 is amended in paragraphs (a)(2)(iii)(A) and (E)
by removing the phrase ``Senior Deputy Director for Supervision
(Policy)'', and by adding in lieu thereof the word ``OTS''; in
paragraphs (a)(2)(iii)(F)(1) through (4) by removing the phrase
``District Director or his or her designee'', and by adding in lieu
thereof the word ``OTS''; and in paragraph (c)(2) introductory text by
removing the phrase ``(a)(4), and''.
PART 575--MUTUAL SAVINGS AND LOAN HOLDING COMPANIES
72. The authority citation for part 575 continues to read as
follows:
Authority: 12 U.S.C. 1462, 1462a, 1463, 1464, 1467a, 1828, 2901.
Sec. 575.2 [Amended]
72a. Section 575.2 is amended in paragraphs (i) and (p) by removing
the phrase ``of chapter F''.
Sec. 575.10 [Amended]
73. Section 575.10 is amended in paragraphs (a)(1) and (a)(2)(iii)
by removing the phrase ``and 571.5''.
Sec. 575.11 [Amended]
74. Section 575.11 is amended in paragraph (g) by removing the
phrase ``Secs. 563.39 and 571.5'', and by adding in lieu thereof the
phrase ``Sec. 563.39''.
PART 583--DEFINITIONS
75. The authority citation for part 583 is revised to read as
follows:
Authority: 12 U.S.C. 1462, 1462a, 1463, 1464, 1467a, 1468.
Sec. 583.10 [Removed]
76. Section 583.10 is removed.
PART 584--REGULATED ACTIVITIES
77. The authority citation for part 584 continues to read as
follows:
Authority: 12 U.S.C. 1462, 1462a, 1463, 1464, 1467a, 1468.
Sec. 584.1 [Amended]
78. Section 584.1 is amended in paragraph (b) by removing the
phrase ``District Director'', and by adding in lieu thereof the phrase
``Regional Director''.
Sec. 584.2-2 [Amended]
79. Section 584.2-2 is amended in paragraph (b) by removing the
third sentence; and in paragraph (c) by removing the phrase ``the
District Director or the Director of the Office, as the case may be,'',
and by adding in lieu thereof the phrase ``the OTS''.
Dated: December 11, 1995.
By the Office of Thrift Supervision.
Jonathan L. Fiechter,
Acting Director.
[FR Doc. 95-30541 Filed 12-22-95; 8:45 am]
BILLING CODE 6720-01-P
