[Federal Register Volume 62, Number 68 (Wednesday, April 9, 1997)]
[Proposed Rules]
[Pages 17110-17115]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-8815]
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DEPARTMENT OF THE TREASURY
Office of Thrift Supervision
12 CFR Parts 516, 543, 545, 552, 556, 563
[No. 97-30]
RIN 1550-AA83
Application Processing
AGENCY: Office of Thrift Supervision, Treasury.
ACTION: Notice of proposed rulemaking.
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SUMMARY: As a part of its ongoing effort to review and streamline its
regulations, the Office of Thrift Supervision (OTS) is proposing to
revise its regulations governing the comment procedures for certain
specified applications and notices (collectively ``applications''). In
addition to reorganizing the regulations, the OTS proposes to amend the
existing procedures to expand the comment period on these applications,
prescribe the information that comments must contain in order to be
considered by the OTS in its evaluation of applications, and remove
existing provisions that require the OTS to conduct an oral argument on
applications under certain circumstances and replace these provisions
with discretionary conference procedures.
DATES: Comments must be received on or before June 9, 1997.
ADDRESSES: Send comments to Manager, Dissemination Branch, Records
Management and Information Policy, Office of Thrift Supervision, 1700 G
Street, NW., Washington, D.C. 20552, Attention Docket No. 97-30. These
submissions may be hand-delivered to 1700 G Street, NW., from 9:00 a.m.
to 5:00 p.m. on business days; they may be sent by facsimile
transmission to FAX Number (202) 906-7755; or they may be sent by e-
mail: public.info@ots.treas.gov. Those commenting by e-mail should
include their name and telephone number. Comments will be available for
inspection at 1700 G Street, NW., from 9:00 a.m. until 4:00 p.m. on
business days.
FOR FURTHER INFORMATION CONTACT: Catherine Shepard, Senior Attorney,
Regulations and Legislation Division, (202) 906-7275, Kevin Corcoran,
Assistant Chief Counsel, Business Transactions Division, (202) 906-
6962, Office of Chief Counsel; or Diana L. Garmus, Director, Corporate
Activities Division, (202) 906-5683, Office of Thrift Supervision, 1700
G Street NW., Washington, D.C. 20552.
SUPPLEMENTARY INFORMATION:
I. Background
OTS regulations governing applications for permission to organize a
federal stock or mutual savings association, to establish or relocate a
branch office of a federal savings association, and to engage in a
transaction that is subject to the Bank Merger Act require applicants
to follow the public comment and review procedures at 12 CFR 543.2 (e)
and (f).
Currently, Sec. 543.2 provides an opportunity for the public to
submit communications in favor or in protest of applications, and
permits the applicant to respond to any protest. Where a protest is
timely submitted, meets specified criteria, and includes a request for
oral argument, or if an applicant requests an oral argument, the
regulation requires the OTS to conduct an oral argument on the merits
of the application. The OTS may also hold an oral argument in the
absence of any specific request, if it determines that additional
proceedings are desirable.
Today, the OTS is proposing to revise these procedures. The
proposed revisions, discussed more fully below, would consolidate the
public comment procedures for the cited applications. The proposal
would also expand existing public comment periods, prescribe the
information that a comment must contain to be considered in the
evaluation of applications, and delete existing provisions requiring
the OTS to conduct an oral argument on applications under certain
circumstances and replace these provisions with discretionary
conference procedures. The OTS believes that these changes will make
the application processing procedures easier to understand and apply.
Additionally, the proposed discretionary conference procedures will
conform OTS regulations more closely to those of the other federal
banking agencies, in accordance with
[[Page 17111]]
section 303 of the Riegle Community Development and Regulatory
Improvement Act of 1994.
II. Description of the Proposed Rule
The OTS proposes to relocate and revise the public comment and
related procedures for the applications described above. Currently,
these procedures may be found in 12 CFR 543.2, which governs
applications to organize federal mutual associations. The proposed rule
would relocate these provisions to 12 CFR Part 516, which prescribes
application processing guidelines and procedures. This relocation
should make it easier for applicants and others to find relevant
regulations and to determine what procedures must be followed. The
provisions of the revised section are discussed more fully below.
Comment Procedure--Proposed Sec. 516.5(a)(1)
Under this proposed paragraph, where a regulation incorporates the
procedures set forth in Sec. 516.5, public comments may be submitted
only as provided by Sec. 516.5(a), or as otherwise requested by the
OTS. The proposed rule would further provide that the term ``comment''
includes any written submission that favors or opposes the application.
Comment Period--Proposed Sec. 516.5(a)(2)
Under current Sec. 543.2(e), anyone may submit a communication in
favor or protest of an application to the OTS within 10 days of
publication of a public notice of the filing of an application. This
time period may be extended to 17 days after publication, if a request
for extension is filed within the 10-day period. Applicants are
permitted to file an answer to any protest until 10 days after the date
for filing of such public comments.
The OTS believes that a longer comment period, without an automatic
extension, would be less confusing and more workable. Accordingly, the
proposed rule would extend the comment period to 25 days and would
delete the automatic 7-day extension period. The OTS may still grant
extensions on a case-by-case basis, where a comment addresses a
significant regulatory concern and the commenter shows good cause why
it was unable to submit the comment within the 25-day comment period.
The length of any extension will also be determined on a case-by-case
basis.
The proposed rule eliminates provisions permitting the applicant to
file an answer to public comments within ten days of the close of the
public comment period. The OTS will generally provide an appropriate
opportunity for an applicant to respond to relevant comments by
forwarding these comments to the applicant and requesting a response.
Comment Content Requirements--Proposed Sec. 516.5(a)(3)
Under the existing rules, a protest is considered substantial if it
is submitted in writing within the comment period, and states a reason
for the protest that is consistent with one of the regulatory bases for
denying an application. Additionally, a substantial protest must
include: (i) A summary of the reasons for the protest; (ii) the
specific matters in the application to which the protestant objects and
the reasons for each objection; (iii) facts supporting the protest,
including relevant economic or financial data; and (iv) any adverse
effects on the protestant that may result from approval of the
application. 12 CFR 543.2(e) (2) and (4).
Under the current rules, the term ``substantial'' serves a
ministerial purpose. It simply serves as a means of separating comments
that contain the required information (and, thus, may serve as the
basis for a request for an oral argument) from those that do not.
Unfortunately, some have misconstrued OTS findings that a comment is
substantial as an indication that the OTS has evaluated the substance
of the comment and has concluded that the comment is meritorious.
The proposed rule would remove the concept of a substantial
protest. Instead, the rule merely describes what a comment must include
to be considered by the OTS in the review of an application. Under the
proposed rule, a comment must recite all relevant facts, including any
economic or financial data, supporting the commenter's position.
Comments in opposition must address at least one of the regulatory
bases for denial, as set forth in the applicable regulations, recite
relevant facts and supporting data addressing these bases, and address
any adverse effects on the commenter or the community that may result
from the approval of the application. This approach should make the
drafting and review of comments more straightforward and less
burdensome.
Conferences--Proposed Sec. 516.5(b)(1)
Under existing rules, the OTS must conduct an oral argument if the
applicant or anyone filing a substantial protest makes a timely request
for the argument. At the oral argument, the parties may participate in
person or through a designated representative. A transcript of the
argument is made and included in the application file. See 12 CFR
543.2(f).
Oral arguments may assist in the disposition of issues raised by an
application. These additional proceedings, however, are not necessary
in every case, and can delay the application process without
substantially enhancing the quality of the information available to
evaluate the application.
Under the current rules, where a substantial protest is filed with
a request for an oral argument, the OTS must, by regulation, hold an
oral argument. Comparable regulations of the other federal banking
agencies provide these regulators with greater flexibility. Instead of
mandating additional proceedings at the request of the parties, these
rules provide the agencies with discretion to conduct additional
proceedings if the agency concludes that the proceedings would assist
the decisionmaking process.1
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\1\ Currently, the OCC will generally grant a hearing request
``only if the OCC determines that written submissions would be
inadequate or that a hearing would otherwise benefit the
decisionmaking process. * * * [or] concludes that the hearing would
be in the public interest.'' 61 FR 60342, 60365 (Nov. 27, 1996) (to
be codified at 12 CFR 5.11). The FDIC arranges informal and formal
hearings at its own discretion. 12 CFR 303.6(h) (1996). The FRB may
hold a private or public meeting when ``appropriate.'' 12 CFR 262.25
(c) and (d) (1996).
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Consistent with the rules of the other federal banking agencies,
OTS's proposed rule would provide for additional proceedings only where
the OTS determines that such proceedings would assist in the
disposition of the application or would assist in the resolution of any
issues raised by the application.
Instead of mandating specific procedures in the form of an oral
argument, the proposed rule permits the OTS to arrange a conference
between the applicant, commenters, and others. The rule does not
prescribe procedures for the conference. Rather, it permits the OTS to
select the procedure appropriate to the application on a case-by-case
basis. For example, the OTS may determine, based on the facts or issues
raised with regard to a particular application, that it should conduct
a transcribed conference consisting of oral argument. For other
applications, the OTS may decide to use very informal procedures, such
as a conference telephone call. The proposed rule requires the OTS to
provide an applicant and commenters with at least 10 days advance
notice of the time,
[[Page 17112]]
location and procedures to be followed at any conference.
The OTS believes that these changes will improve the public comment
process and will align its regulation more closely with the regulations
of the other federal banking agencies.
In the past, participants in the application comment process have
suggested that OTS should be required to distribute a document
addressing the issues raised in the comments or at the oral argument.
The OTS does not distribute such documents. The only document that the
OTS routinely issues that may refer to the comments is the order or
decision letter on the application.
Application Time Frames--Proposed Sec. 516.5(b)(2)
The proposed rule would provide that applicable time periods for
automatic approval of the application will be suspended if the OTS has
notified the applicant that it intends to hold a conference.2
Applicants are encouraged to arrange meetings with commenters at any
time, independent of OTS involvement. Such meetings will not, however,
suspend the time period for automatic approval.
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\2\ This requirement is currently found at 12 CFR 516.2(c)(6).
Since the proposed rule would include this provision at
Sec. 516.5(b)(2), Sec. 516.2(c)(6) would be deleted. We note that
the OTS also may extend the time for review under 12 CFR 516.2 (e)
and (f).
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Conforming Revisions
The proposed rule would include conforming revisions to various
other regulations. These changes are summarized below.
Section 543.2 would be revised to reflect the relocation of the
public comment procedures to Part 516. In addition, the public notice
procedures at paragraph (d)(1) would be revised to require an applicant
to publish the notice of the filing of an application for permission to
organize no earlier than three days before and no later than the date
of filing of the application. Paragraphs (c) and (d)(4) would be
revised to reflect the fact that applications will no longer be filed
before the publication of the public notice. Paragraph (d)(3) would be
revised to delete the requirement that OTS must provide a notice of the
filing of an application to persons who have filed a request for such
notice. This section is duplicative of the requirement set forth at
Sec. 563e.6. Currently, 543.2(d)(3) also requires OTS to notify the
state official who supervises savings associations in the state where
the new association will be located. This notification requirement
would be retained.
Paragraph (h)(1) would be revised to clarify that public notice and
comment procedures, conference procedures, and approval conditions
otherwise applicable to applications to organize federal associations
would not apply to applications to organize interim federal
associations. Applications that accompany the organization of the
federal interim association, for example, merger applications or
holding company applications, would continue to be subject to the
requirements set forth under the applicable merger or holding company
regulations. A similar revision would be made to section 552.2-2(a),
which governs applications to organize interim federal stock savings
associations.
Section 545.92 governs the establishment of branch offices by
federal associations. This section currently incorporates the comment
and oral argument procedures at Sec. 543.2 (e) and (f). It also cross-
references additional procedures from Sec. 543.2 (c) and (d) that
address the amendment of applications, the publication of public
notices, and public inspection procedures. Rather than require the
reader to refer to two different regulations to determine the
procedures that apply to branch office applications, proposed
Sec. 545.92 would refer to the new comment procedures at Sec. 516.5,
and would restate in full appropriate additional procedures contained
in existing Sec. 543.2 (c) and (d).
The current procedures for branch applications that are subject to
standard treatment under Sec. 545.92 require the publication of a
public notice within 10 days after OTS notifies the association that
the application is complete. These procedures also state that such
applications may, under certain circumstances, be deemed to be approved
within 30 days of this OTS notification. Because these procedures would
not accommodate the proposed 25-day public comment period, the OTS
proposes to require the savings association to publish the public
notice of all branch applications or notices no earlier than three days
before and no later than the date of the filing of the application.
Section 545.95 addresses changes of permanent locations and
redesignations of home and branch offices of federal associations. The
current rule requires an applicant to post a notice of the application
for 17 days from the date of publication of the newspaper notice--a
period that is equal to the extended comment period under current 12
CFR 543.2(e)(1). The proposed rule would expand the time period for
posting to 25 days to more closely track the revised comment period.
The proposed rule would also update existing cross-references to
Sec. 545.92 procedures.
Section 552.2-1 governs procedures for the organization of federal
stock associations. Currently, this regulation incorporates
Sec. 543.2(a) through (f) by reference. Rather than refer the reader to
two regulations to determine the proper procedures for these
applications, proposed Sec. 552.2-1 would refer to the new comment
procedures at Sec. 516.5, and would restate in full any appropriate
additional procedures contained at existing Sec. 543.2(a) through (d).
As in Sec. 543.2, the public notice procedures contained in this
section would be revised to require an applicant to publish notice of
the filing of the application to organize no earlier than three days
before, and no later than the date of filing of the application.
Sections 556.5 (policy statement on branching by federal savings
associations) and 563.22 (merger consolidation, purchase or sale of
assets, or assumption of liabilities) would be revised to include
appropriate citations to the new comment procedures at Sec. 516.5,
rather than the existing procedures at Sec. 543.2.
The OTS invites comment on all aspects of the proposal.
III. Executive Order 12866
The Director of the OTS has determined that this proposed rule does
not constitute a ``significant regulatory action'' for the purposes of
Executive Order 12866.
IV. Regulatory Flexibility Act Analysis
Pursuant to section 605(b) of the Regulatory Flexibility Act, the
OTS certifies that this proposed rule will not have a significant
impact on a substantial number of small entities. The proposed rule
should enable the OTS to process applications received from all
applicants, including small savings associations, and other small
businesses, more expeditiously. It also allows all entities, including
small entities, a longer period in which to submit comments on
applications filed by savings associations.
V. Paperwork Reduction Act of 1995
The information collection requirements contained in this rule are
found at 12 CFR 516.5, 543.2, 545.92, 545.95, 552.2-1, and 563.22. All
of the collections of information, except those found in Sec. 516.5,
have been previously approved by the Office of Management and Budget
and the burden under them remains unchanged under this rule
[[Page 17113]]
(OMB Control Nos. 1550-0005, 1550-0006, and 1550-0016). The
requirements in new Sec. 516.5 were previously found in several of the
sections mentioned above. New Sec. 516.5 does not add any additional
burden and will be added to the approved packages under OMB Control
Nos. 1550-0005, 1550-0006, 1550-0015 and 1550-0032 by inventory
correction worksheet at the final rule stage.
Comments on all aspects of the information collections should be
sent to the Office of Management and Budget, Paperwork Reduction
Project (1550), Washington, D.C. 20503 with copies to the OTS, 1700 G
Street, NW., Washington, D.C. 20552.
The OTS invites comments on:
(1) Whether the collections of information are necessary for the
proper performance of the agency's functions, including whether the
information has practical utility;
(2) The accuracy of the agency's estimate of the burden of the
information collections;
(3) Ways to enhance the quality, utility, and clarity of the
information to be collected; and
(4) Ways to minimize the burden of the information collection
including the use of automated collection techniques or other forms of
information technology.
Respondents/recordkeepers are not required to respond to the
collections of information unless they display a currently valid OMB
control number.
VI. 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. As discussed in the preamble,
this proposed rule simplifies existing procedures and should reduce
regulatory burden. The 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
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 543
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 552
Reporting and recordkeeping requirements, Savings associations,
Securities.
12 CFR Part 556
Savings associations.
12 CFR Part 563
Accounting, Advertising, Crime, Currency, Investments, Reporting
and recordkeeping requirements, Savings associations, Securities,
Surety bonds.
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--APPLICATIONS PROCESSING GUIDELINES AND PROCEDURES
1. The authority citation for part 516 is revised to read as
follows:
Authority: 5 U.S.C. 552, 559; 12 U.S.C. 1462a, 1463, 1464, 2901
et seq.
Sec. 516.2 [Amended]
2. Section 516.2(c)(6) is removed and reserved.
3. Section 516.5 is added to read as follows:
Sec. 516.5 Comment procedures.
(a) Comments--(1) General. If a regulation incorporates the
procedures set forth in this section, public comments in connection
with an application or notice (collectively referred to as
applications) shall be submitted only as provided in this paragraph
(a), or as otherwise requested by the OTS. A comment includes any
written submission in favor of, or in opposition to, the application.
(2) Submission. Any person may file a written comment with the OTS
within 25 days after an application is published for public comment.
The OTS will not consider any comment received after the 25-day comment
period, unless the commenter demonstrates good cause why it was unable
to submit a timely comment, and the OTS concludes that the comment
addresses a significant regulatory concern and will assist the agency
in the disposition of the application.
(3) Content. To be considered by the OTS, a comment must recite all
relevant facts, including any economic or financial data, supporting
the commenter's position. Comments in opposition must address at least
one of the regulatory bases for denial, as set forth in the applicable
regulations, recite relevant facts and supporting data addressing these
relevant bases, and address any adverse effects on the commenter or the
community that may result from the approval of the application.
(b) Conference. (1) The OTS may arrange a conference between the
applicant commenter(s), and other persons, if the OTS concludes that a
conference will assist in the disposition of the application or in the
resolution of any issues raised by the application. The OTS must
provide the applicant and commenter(s) with at least 10 days notice of
the time, location, and procedures to be followed at the conference.
(2) Application time frames. If the OTS has timely notified the
applicant that it intends to hold a conference under paragraph (b) of
this section, the time period for automatic approval of the application
under Sec. 516.2 shall be temporarily suspended until a record is
developed sufficient to support a determination on the issues raised in
the comments.
PART 543--INCORPORATION, ORGANIZATION, AND CONVERSION OF FEDERAL
MUTUAL ASSOCIATIONS
4. The authority citation for part 543 continues to read as
follows:
Authority: 12 U.S.C. 1462, 1462a, 1463, 1464, 1467a, 2901 et
seq.
5. In Sec. 543.2, paragraph (c) is removed and reserved and
paragraphs (d)(1), (d)(3), (d)(4), (e), (f) and (h)(1) are revised to
read as follows:
Sec. 543.2 Application for permission to organize.
* * * * *
(d) * * * (1) The applicant shall publish a public notice of the
application to organize no earlier than three days before and no later
than the date of filing of the application. The applicant shall publish
the notice in a newspaper printed in the English language and having a
general circulation in the community in which
[[Page 17114]]
the home office of the new association is to be located. If the OTS
determines that the primary language of a significant number of adult
residents of the community is a language other than English, the OTS
may require that notice also be given simultaneously in the appropriate
language(s).
* * * * *
(3) The OTS shall give notice of the application to the State
official who supervises savings associations in the State in which the
new association is to be located.
(4) The application and all related communications may be inspected
by any person at the Regional Office during regular business hours,
unless such information is exempt from public disclosure.
(e) Submission of comments. Comments on the application shall be
submitted in accordance with the procedures specified in Sec. 516.5(a)
of this chapter.
(f) Conference procedures. The OTS may arrange a conference in
accordance with Sec. 516.5(b) of this chapter.
* * * * *
(h) * * * (1) Applications for permission to organize an interim
Federal savings association are not subject to public notice and
comment procedures, and conference procedures, and are not subject to
paragraph (g)(3) of this section.
* * * * *
PART 545--OPERATIONS
6. The authority citation for part 545 continues to read as
follows:
Authority: 12 U.S.C. 1462a, 1463, 1464, 1828.
7. In Sec. 545.92, paragraphs (d), (e) heading, (e)(2), and (f) are
revised, and paragraphs (i) and (j) are removed to read as follows:
Sec. 545.92 Branch offices.
* * * * *
(d) Processing of applications/notices. Processing of applications
and notices shall be subject to the following procedures:
(1) Publication. (i) A Federal savings association shall publish a
public notice of the branch application or notice no earlier than three
days before and no later than the date of the filing of the application
or notice. The applicant shall publish the notice in a newspaper
printed in the English language and having a general circulation in the
community in which the home office of the association is located and in
the community to be served by the branch office. If the OTS determines
that the primary language of a significant number of adult residents of
either community is a language other than English, the OTS may require
that notice also be given simultaneously in the appropriate language.
(ii) The public notice shall be in substantially the following
form:
NOTICE OF ESTABLISHMENT OF A BRANCH OFFICE OR CHANGE OF LOCATION OF AN
OFFICE
This is to inform you that [Association Corporate Title, City,
Town, State and Zip Code] is filing [an] [application/notice] with
the Office of Thrift Supervision (``OTS'') for permission to
establish a branch office to be located [address of branch office].
This [application/notice] is filed under OTS regulations at 12 CFR
545.92 or 12 CFR 545.95.
Anyone may comment in favor of, or in opposition to, the
[application/notice] within 25 days of the publication of this
notice. To be considered by the OTS, your comments must be filed in
writing within this time period. Your comment must recite all
relevant facts, including any economic or financial data, supporting
your position. If you submit a comment in opposition, you must
address at least one of the regulatory bases for denial, as set
forth in the applicable regulations, recite relevant facts and
supporting data addressing these bases, and address any adverse
effects on you or the community that may result from the approval of
the [application/notice].
You must send three copies of your comment to the Regional
Director, [insert name and address of the OTS Regional Office where
the application/notice is filed]. You may view the [application/
notice] and all comments filed at the OTS Regional Office, except to
the extent that these materials may be exempt by law from
disclosure. If you have any questions concerning these procedures,
contact the OTS Regional Office.
(iii) Promptly after publication of the public notice, the savings
association shall transmit copies of the public notice and publisher's
affidavit of publication to the OTS.
(iv) The application or notice and all related communications may
be inspected by any person at the Regional Office during regular
business hours, unless such information is exempt from public
disclosure.
(2) Submission of application or notice. A Federal savings
association must comply with Sec. 556.5 of this chapter and shall file
the application required under Sec. 516.3(b)(2) of this chapter or the
notice required under Sec. 516.3(a) of this chapter within three days
of the publication of the public notice under paragraph (d)(1) of this
section.
(3) Submission of comments. Comments on the application or notice
shall be submitted in accordance with the procedures specified in
Sec. 516.5(a) of this chapter.
(4) Conference procedures. The OTS may arrange a conference in
accordance with Sec. 516.5(b) of this chapter.
(e) Approval of branch application. * * *
(2) An application shall be deemed to be approved 30 days after
notification that the application is complete, unless the OTS notifies
the savings association that it intends to hold a conference under the
procedures described in Sec. 516.5(b) of this chapter, or that the OTS
objects to the application on the grounds set forth under paragraph
(e)(1) of this section.
(f) Approval of branch notice. A notice filed by a Federal savings
association that qualifies for expedited treatment shall be deemed to
be approved 30 days after its filing with the OTS, unless the OTS
notifies the savings association that it intends to hold a conference
under the procedures described in Sec. 516.5(b) of this chapter; the
OTS objects to the application on the grounds set forth in paragraph
(e)(1) of this section; or the OTS determines to process the filing as
an application under Sec. 516.3(a)(3) of this chapter. If the OTS
notifies the savings association that it intends to hold a conference,
the savings association may not open a branch until the OTS provides a
notification of its approval.
* * * * *
8. In Sec. 545.95, paragraphs (a) and (b)(1)(ii) are revised to
read as follows:
Sec. 545.95 Change of office location and redesignation of offices.
(a) Eligibility. A Federal savings association may change the
permanent location of its home office or any approved branch office, or
redesignate a home or branch office subject to the appropriate
expedited or standard treatment procedures for establishing a branch
office set forth in Sec. 545.92 of this part.
(b) * * *
(1) * * *
(ii) The applicant shall post notice of the application for 25 days
from the date of first publication in a prominent location in the
office to be closed or redesignated.
* * * * *
PART 552--INCORPORATION, ORGANIZATION, AND CONVERSION OF FEDERAL
STOCK ASSOCIATIONS
9. The authority citation for part 552 continues to read as
follows:
Authority: 12 U.S.C. 1462, 1462a, 1463, 1464, 1467a.
10. Section 552.2-1 is amended by revising paragraph (a) to read as
follows:
[[Page 17115]]
Sec. 552.2-1 Procedure for organization of Federal stock association.
(a) Application for permission to organize. Applicants may file an
application for permission to organize a Federal stock association in
accordance with this section. Recommendations by employees of the OTS
regarding applications for permission to organize are privileged,
confidential, and subject to Sec. 510.5 (b) and (c) of this chapter.
The processing of an application under this section shall be subject to
the following procedures:
(1) Publication. (i) The applicant shall publish a public notice of
the application no earlier than three days before and no later than the
date of filing of the application. The applicant shall publish the
notice in a newspaper printed in the English language and having a
general circulation in the community in which the home office of the
new association is to be located. If the OTS determines that the
primary language of a significant number of adult residents of either
community is a language other than English, the OTS may require that
notice also be given simultaneously in the appropriate language(s).
(ii) Promptly after publication of the public notice, the applicant
shall transmit copies of the public notice and publisher's affidavit of
publication to the OTS in the same manner as the original filing.
(iii) The application and all related communications may be
inspected by any person at the Regional Office during regular business
hours, unless such information is exempt from public disclosure.
(2) Notification to interested parties. The OTS shall give notice
of the application to the State official who supervises savings
associations in the State in which the new association is to be
located.
(3) Submission of comments. Comments on the application shall be
submitted in accordance with the procedures specified in Sec. 516.5(a)
of this chapter.
(4) Conference procedures. The OTS may arrange a conference in
accordance with Sec. 516.5(b) of this chapter.
* * * * *
11. Section 552.2-2 is amended by revising paragraph (a) to read as
follows:
Sec. 552.2-2 Procedures for organization of interim Federal stock
association.
(a) Applications for permission to organize an interim Federal
savings association are not subject to public notice and comment
procedures, and conference procedures, and are not subject to
Sec. 552.2-1(b)(3) of this part.
* * * * *
PART 556--STATEMENTS OF POLICY
12. 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.
13. Section 556.5 is amended by revising paragraph (c)(4) to read
as follows:
Sec. 556.5 Branching by Federal savings associations.
* * * * *
(c) * * *
(4) Comment procedures. Comments on applications for branches must
be submitted in writing and factually documented. Comment procedures
are set forth in Sec. 516.5 of this chapter, part 563e of this chapter,
the OTS Application Processing Handbook, and other supervisory guidance
issued by the OTS.
* * * * *
PART 563--OPERATIONS
14. 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.
15. Section 563.22 is amended by revising paragraphs (e)(4) and
(f)(3) to read as follows:
Sec. 563.22 Merger, consolidation, purchase or sale of assets, or
assumption of liabilities.
* * * * *
(e) * * *
(4) Applications submitted under paragraph (a) of this section
shall be subject to the comment procedures specified in Sec. 516.5(a)
of this chapter, except that comments may be submitted at any time
during the period described in paragraph (e)(2) of this section. The
OTS may arrange a conference in accordance with Sec. 516.5(b) of this
chapter.
* * * * *
(f) * * *
(3) The OTS has notified the savings association that it intends to
hold a conference as described in Sec. 516.5(b) of this chapter;
* * * * *
Dated: March 31, 1997.
By the Office of Thrift Supervision.
Nicolas P. Retsinas,
Director.
[FR Doc. 97-8815 Filed 4-8-97; 8:45 am]
BILLING CODE 6720-01-P
