97-8815. Application Processing  

  • [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
    
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    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,
    
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    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
    
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    (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
    
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    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
    
    
    

Document Information

Published:
04/09/1997
Department:
Thrift Supervision Office
Entry Type:
Proposed Rule
Action:
Notice of proposed rulemaking.
Document Number:
97-8815
Dates:
Comments must be received on or before June 9, 1997.
Pages:
17110-17115 (6 pages)
Docket Numbers:
No. 97-30
RINs:
1550-AA83: Application Processing
RIN Links:
https://www.federalregister.gov/regulations/1550-AA83/application-processing
PDF File:
97-8815.pdf
CFR: (11)
12 CFR 516.5(a)
12 CFR 552.2-1(b)(3)
12 CFR 516.2
12 CFR 516.5
12 CFR 543.2
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