64138 Federal Register / Vol. 62, No. 233 / Thursday, December 4, 1997 / Rules and Regulations

1 62 FR 17110 (April 9, 1997).

Dated: December 1, 1997.

Eugene A. Ludwig,

Comptroller of the Currency.

[FR Doc. 97–31867 Filed 12–2–97; 11:32 am]

BILLING CODE 4810–33–P

DEPARTMENT OF THE TREASURY

Office of Thrift Supervision

12 CFR Parts 516, 543, 545, 552, 556,

563

[No. 97–121]

RIN 1550–AA83

Application Processing

AGENCY: Office of Thrift Supervision,

Treasury.

ACTION: Final rule.

SUMMARY: As a part of its on-going effort

to review and streamline its regulations,

the Office of Thrift Supervision (OTS) is

issuing a final rule revising its comment

procedures for specified applications

and notices (collectively, applications).

In addition to reorganizing the

regulation, the OTS has expanded the

comment period on these applications,

set forth the information that a comment

should contain, and replaced existing

provisions requiring the OTS to conduct

an oral argument on applications under

certain circumstances, with provisions

for informal and formal meetings. Under

the final rule, the OTS will conduct an

informal meeting ordinarily upon the

request of a commenter, but also on its

own initiative. Thereafter, upon the

request of any participant to an informal

meeting, the OTS will conduct a formal

meeting. The OTS may also conduct a

formal meeting on any application on its

own initiative.

EFFECTIVE DATE: January 1, 1998.

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, DC 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 existing § 543.2 (e) and (f).

Currently, § 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. When a

protest is timely submitted, meets

specified criteria and includes a request

for oral argument, or if an applicant

timely 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

protests, if it determines that these

additional proceedings are desirable.

On April 9, 1997, the OTS published

a notice of proposed rulemaking

revising these procedures.1 In addition

to reorganizing the regulations, the OTS

proposed to amend its existing

procedures to expand the comment

period on applications, prescribe the

information that comments must

contain in order to be considered when

the OTS evaluates applications, and

replace existing provisions that require

the OTS to conduct an oral argument on

applications under certain

circumstances, with provisions for

discretionary conferences. The OTS

believed that these changes would make

the application processing procedures

easier to understand and apply.

Additionally, the OTS concluded that

the discretionary conference procedures

would align OTS regulations more

closely with those of the other federal

banking agencies in accordance with

section 303 of the Community

Development and Regulatory

Improvement Act of 1994.

II. Summary of Comments and

Description of Final Rule

A. General Discussion of the Comments

The public comment period on the

proposed rule closed on June 9, 1997.

Eight commenters responded to the

proposal: four community advocacy

groups, two trade associations, one

federal savings association, and one

professional records and information

management association.

As a general matter, the four

community advocacy groups opposed

the elimination of mandatory oral

arguments and supported the extension

of the public comment period.

Conversely, the trade associations and

the federal savings association

supported the proposed conference

procedures and opposed the extension

of the public comment period. The

information management association

expressed unqualified support for the

proposal. Specific comments are

discussed where appropriate in the

section by section analysis below.

B. Section by Section Analysis

The final rule adds new Subparts C

and D to part 516. The new subparts use

plain language drafting techniques

promoted by the Vice President’s

National Performance Review Initiative

and new guidance in the Federal

Register Document Drafting Handbook

(January 1997 edition). The primary goal

of plain language drafting is to make

regulations more readily

understandable. Plain language drafting

emphasizes the use of informative

headings (often written as a question),

non-technical language (including the

use of ‘‘you’’) and sentences in the

active voice.

Although commenters did not have

the opportunity to comment on the

plain language format prior to its use in

this final rule, the OTS believes that the

benefits of the format justify its use.

Moreover, the use of the plain language

format has not altered the substance of

the regulation. The OTS welcomes

comments on the plain language format,

and suggestions on how to improve this

format. The OTS is committed to

converting more of its regulations to the

plain language format in order to reduce

regulatory burden. The recently issued

OTS final rule on subsidiaries uses this

plain English drafting format. See 12

CFR Part 559 (1997).

Subpart C—Comment Procedures

Section 516.100—What Does This

Subpart Do?

Section 516.100 of the final rule

provides that Part 516, Subpart C

contains the procedures governing the

submission of public comments on

certain types of applications or notices

pending before the OTS. Subpart C

applies whenever a regulation

incorporates the procedures, or where

otherwise required by the OTS. This

section is based on § 516.5(a)(1) of the

proposed rule.

Section 516.110—Who May Submit a

Written Comment?

Section 516.110 provides that any

person may submit a written comment

supporting or opposing an application.

This provision is also based on

proposed § 516.5(a)(1).

Section 516.120—What Information

Should I Include in My Comment?

Under the existing rules, a protest is

considered ‘‘substantial’’ if it is

submitted in writing within the
Federal Register / Vol. 62, No. 233 / Thursday, December 4, 1997 / Rules and Regulations 64139

2The existing oral argument procedures and the

new meeting procedures are discussed below.

comment period, and states a reason for

the protest that is consistent with one of

the regulatory bases for denying an

application. To be a substantial protest,

a comment must include the specific

information required at existing

§ 543.2(e)(2) and (4). Under the current

rules, the term ‘‘substantial’’ serves a

purely ministerial purpose—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.2

The proposed rule at § 516.5(a)(3)

described the information that a

comment must contain in order to be

considered by the OTS. Under the

proposed rule, the comment was

required to recite all relevant facts,

including any economic or financial

data supporting the commenter’s

position. Comments opposing an

application were required to address at

least one of the bases for denial of the

application as set forth in the relevant

regulations, recite relevant facts and

supporting data addressing these

relevant bases, and address any adverse

effects on the commenter or community

that may result from approval of the

application.

One commenter supported this

proposed provision, noting that it

provides important guidance to the

public. Another commenter argued that

the comment content criteria give the

OTS too much discretion to reject

comments that do not meet the

technical content requirements.

Commenters argued that these

requirements should not be construed in

an overly burdensome way.

The OTS will review and consider all

comments it receives regardless of

whether the comment meets all of the

regulatory criteria. The sole intent of the

proposed content requirements was to

guide commenters in providing

information that would assist the OTS

in understanding the basis for the

comment. While the OTS will accept

and consider all comments, including

those that do not meet all of the content

criteria, commenters are encouraged to

include all relevant information and

arguments.

The OTS has revised the comment

content provisions at § 516.120 to

emphasize that the OTS will not reject

a comment that does not meet all of the

content criteria, and has made other

changes to enhance the rule’s clarity.

Under the final rule, a comment should

recite relevant facts, including any

demographic, economic, or financial

data, supporting the commenter’s

position. If the commenter opposes an

application, the comment should also

address at least one of the relevant

regulatory reasons for which the OTS

may deny an application, recite any

relevant facts and supporting data

addressing these reasons, and address

how the approval of the application

could harm the commenter or any

community.

If a commenter wishes to request an

informal meeting under the revised

procedures discussed in detail below,

the commenter must file a request for

the meeting with the comment. To

ensure that the OTS will have sufficient

notice of the questions to be discussed

at the informal meeting, requests should

describe the nature of the issues or facts

to be discussed and the reasons why

written submissions are insufficient to

adequately address these facts or issues.

See final § 516.120(b).

Section 516.130—Where Do I File My

Comment?

Section 516.130 provides that public

commenter must file its comment with

the OTS office(s) set forth at § 516.1(c).

If an informal meeting is requested, the

commenter must simultaneously send a

copy of the request to the applicant.

This provision was not included in the

proposed rule, but has been added to

improve the clarity of the final rule.

Section 516.140—Where Do I File My

Comment?

Under the current rules, a commenter

must file a comment within 10 days of

the publication of a public notice of the

filing of the application. This time

period may extended to 17 days after

publication, if a request for extension is

filed within the 10-day period. Proposed

§ 516.5(a)(2) replaced the existing 10-

day comment period with a 25-day

comment period.

Three commenters supported the

proposed 25-day comment period,

noting that this is a clearly defined

period and gives all prospective

commenters an adequate time to submit

appropriate comments. Two

commenters urged the OTS to lengthen

the comment period to 30 days arguing

that a 30-day comment period is used by

the Office of the Comptroller of the

Currency (OCC), the Federal Reserve

Board (FRB), and the OTS in merger and

acquisition applications. Two

commenters thought that the comment

period should be shorter. One argued

that 15 days is sufficient. Another

argued that the OTS should provide a

17-day comment period, at least for

applications involving associations that

have an ‘‘outstanding’’ or ‘‘satisfactory’’

rating under the community

Reinvestment Act (CRA) and that are

eligible for expedited treatment.

The OTS is adopting the proposed 25-

day comment period. The OTS

continues to believe that this expanded

time period, without an automatic

extension, is more workable and less

confusing. The OTS cannot adopt a 30-

day comment period without

substantially revising other application

processing requirements. In accordance

with section 410 of the Competitive

Equality Banking Act of 1987,

§ 516.2(c)(1) requires the OTS to request

additional information, deem an

application complete, or decline to

process an application within 30 days of

receipt of an application. The OTS

believes it is necessary to have at least

five days to review comments within

this 30-day review period.

Under the proposed rule, the 25-day

comment period would have begun on

the date that the notice of application is

published, a date that may precede the

filing of the application. One

commenter argued that the comment

period should start on the day the

application is submitted to the OTS.

The commenter noted that this change

would give community groups access to

the application for the full comment

period. The OTS agrees that

commenters should have access to the

application for the full comment period.

Accordingly, under the final rule at

§ 516.140(a), the comment period begins

on the date that the application is filed.

Under the proposed rule at

§ 516.5(a)(2), the OTS would grant

extensions of the 25-day comment

period on a case-by-case basis. The OTS

would consider a late-filed comment if

the OTS determined that the comment

addressed a significant regulatory

concern and, within the 25-day

comment period, the commenter

demonstrated good cause why it was

unable to submit a timely comment. The

length of any extension would be

determined on a case-by-case basis.

Commenters generally supported this

provision. However, several

commenters urged the OTS to define

good cause to include specified

circumstances, to set specific time

frames for extensions and to make other

changes. One commenter objected that

the unlimited discretion accorded to the

OTS under the proposed extension

provision would create procedural

confusion.

The final rule continues to provide

the OTS with maximum flexibility to

address the unique circumstances of

each extension request. For example,

one commenter may need only an

additional 24 hours to copy or mail

documents. Another commenter may be
64140 Federal Register / Vol. 62, No. 233 / Thursday, December 4, 1997 / Rules and Regulations

3 In the proposed rule, the OTS noted that the

discretionary conference procedures would be more

consistent with the rules of the other federal

banking agencies. One commenter argued that this

rationale is not convincing since the other banking

regulators often have supplemental procedures for

gathering information. The only such procedure

cited by the commenter, however, was the OCC’s

policy of conducting expedited CRA examinations

upon request. The OTS has addressed these targeted

examinations below at Section II.D.3.

4Two commenters argued that the OTS’s

proposed deletion of the mandatory oral hearing

requirement was inconsistent with congressional

intent expressed in section 2612 of the Economic

Growth and Regulatory Paperwork Reduction Act of

1996 (EGRPRA). This section specifically requires

the FRB to hold a hearing where a bank holding

company seeks to acquire a thrift. EGRPRA,

however, does not provide a similar legal right

when a bank holding company acquires a

commercial bank. The commenters argued that

EGRPRA’s retention of hearings in thrift

acquisitions reflects Congress’ view that the agency

should provide hearings in all applications

involving savings associations. The OTS disagrees.

The hearing requirement in section 2612 of

EGRPRA, by its own terms, is limited to specified

proceedings before another regulatory agency.

There is no legislative history in EGRPRA

mandating a broader application. If Congress

intended to require hearings whenever a savings

association is involved in any application

proceeding before any banking regulator, the OTS

believes that Congress would have manifested this

intent more clearly.

awaiting pertinent public data and may

require a longer opportunity to obtain

and analyze the data. Accordingly, the

final regulation at § 516.140 does not

prescribe the duration of the extension

period or the circumstances that would

constitute good cause. Rather, the OTS

will make these determinations on a

case-by-case basis.

One commenter suggested that the

OTS should encourage applicants and

commenters to make joint requests for

extensions of the comment period. One

of the underlying purposes of the

comment procedures is to promote

dialogue and collaboration among the

parties. Since joint extension requests

will advance voluntary resolution of

conflicts, the OTS encourages and

generally will grant all jointly filed

extension requests.

Under the existing procedures at

§ 543.2(e)(3), applicants may file an

answer to any protest within 10 days

after the last date for filing of comments.

The proposed rule eliminated this

provision. Instead, the OTS stated that

it would generally provide an

appropriate opportunity to respond by

forwarding the comments to the

applicant and requesting a response.

Two commenters noted that the OTS

failed to set a deadline for the

applicant’s response. One commenter

suggested that OTS should provide at

least 10 days for response. The other

suggested that the OTS adopt the FRB

practice of requiring applicants to

respond within eight business days.

It is unnecessary to establish a

regulatory deadline for an applicant’s

response to comments. The OTS will

continue to require applicants to

respond to issues raised in comments

the same way that it resolves other

issues raised in applications. The OTS

will, where appropriate, request the

applicant to respond within 30 days to

the issues raised in the application. See

existing § 516.2(c).

Section 516.150—Will I Have

Additional Opportunities to Discuss the

Applications?

Under the existing rules at § 543.2(f),

the OTS must conduct an oral argument

if the applicant or anyone filing a

substantial protest makes a timely

request for the argument or if the OTS

considers an oral argument desirable.

The proposed rule would have replaced

the mandatory oral argument

provisions. Proposed § 516.5(b)(1)

would have required additional

proceedings only where the OTS

determined that the proceedings would

assist in the disposition of the

application or would assist in the

resolution of any issues raised by the

application. Rather than an oral

argument, the proposed rule permitted

the OTS to arrange a conference

between the applicant, commenters, and

others. The proposed rule did not

prescribe procedures for the conference.

Instead, the proposed rule permitted the

OTS to select the procedures

appropriate to the application on a caseby-case basis.

Three commenters supported the

conference procedures contained in the

proposed rule. These commenters

concluded that the conference

procedures were more efficient and

flexible than the current oral argument

procedures.

Four community group commenters

opposed the deletion of the mandatory

oral argument. These commenters

asserted that oral arguments: (1) Do not

unduly delay the application process;

(2) are conducive to fully informed

decision making by the OTS; (3) are not

hard to understand or apply; (4) ensure

that consumer issues are adequately

considered; and (5) promote dialogue

and exchange between the association

and commenters.3

The OTS continues to believe that

formal oral arguments before a presiding

officer are not necessary or productive

in most cases.4 More often, comments

can best be resolved in a less formal

setting, such as a meeting or a telephone

call. Accordingly, the final rule states

that the OTS generally will conduct an

informal meeting on applications upon

the request of any commenter.

Additionally, if an informal meeting

fails to facilitate the resolution of issues

to the satisfaction of any participant in

an informal meeting, the final rule

provides that the OTS will conduct a

formal meeting before a presiding officer

upon the filing of a request. The OTS

may also conduct a formal meeting on

any application on its own initiative.

The new OTS informal and formal

meeting procedures are based upon the

OCC’s related rule governing meetings

and hearings at 12 CFR 5.11.

Thus, the final rule at § 516.150 states

that the OTS may provide a commenter

with additional opportunities to discuss

the application in informal or formal

meetings. The new procedures are

contained in a new subpart D to part

516. The sections of this new part are

discussed below.

Subpart D—Meeting Procedures

Section 516.160—What Does This

Subpart Do?

Subpart D establishes the procedures

governing informal and formal

meetings. It applies whenever a

regulation incorporates the procedures

in the subpart, or when otherwise

required by OTS.

Section 516.170—What Procedures

Govern Informal Meetings on

Applications?

Section 516.170 establishes the OTS

informal meeting procedures. Under

§ 516.170(a), the OTS may arrange an

informal meeting to clarify and narrow

the issues and to facilitate the resolution

of the issues. If a commenter has filed

a written request containing the

information described at § 516.120(b),

the OTS will arrange a meeting. The

OTS may also arrange a meeting upon

its own initiative. The purpose of the

informal meeting is to promote dialogue

and to seek to achieve the voluntary

resolution of issues. The OTS will

inform the applicant and commenters

requesting a meeting of its decision on

a request for a meeting, or its decision

to hold a meeting on its own initiative.

See final § 516.170(b).

One commenter suggested that the

final rule should require the OTS to

announce its decision on the informal

meeting before the expiration of

applicable approval time frames

specified in §§ 516.2 and 516.3. The

purpose of the informal meeting is to

address and resolve issues relevant to

the disposition of the application. An

informal meeting would, thus, be

pointless if it is held after approval time

frames lapse and the application is

deemed approved. Because the

announcement of the decision on a
Federal Register / Vol. 62, No. 233 / Thursday, December 4, 1997 / Rules and Regulations 64141

5Where an application is subject to a

completeness review under § 516.2(c), the OTS will

generally advise applicants and commenters of the

informal meeting before deeming the application

complete. 6See Op. Chief Counsel (November 24, 1993).

meeting obviously must precede the

approval of the application, the OTS has

not added the suggested provision.5

The OTS will invite the applicant and

the commenter filing the request to the

informal meeting. The OTS may also

invite any other interested persons to

attend. The OTS will inform meeting

participants of the date, time, location

and format for the meeting a reasonable

time in advance of the meeting. See

final § 516.170(c). The OTS may select

any format for the meeting. See final

§ 516.170(d). An informal meeting may

encompass an array of forums

including, but not limited to, an

informal telephone conference call or a

face-to-face meeting.

One commenter suggested that any

announcement of additional

proceedings should identify all persons

invited to the conference and the

substance of the comments received.

The commenter asserted that this

procedure would allow the applicant to

prepare for, and to contact appropriate

persons before the conference. The OTS

does not follow a specific format for

informing participants of the informal

meeting. Rather, the OTS will advise

participants using an appropriate

method for the meeting. For example, if

the OTS determines that an issue may

be resolved in a telephone conference,

the OTS would not necessarily issue a

written notice. Instead, the OTS might

place an advance telephone call

informing the participants of the date

and time of the conference call. By

contrast, where another type of meeting

is selected, the notice may include some

or all of the elements identified by the

commenter.

The OTS anticipates that informal

meetings will be adequate to facilitate

the resolution of issues in most

proceedings. However, the OTS

recognizes that it may encounter

situations where formal meetings may

be necessary. Accordingly, the final rule

recognizes that an informal meeting may

progress to a formal meeting before a

presiding officer under § 516.180.

Accordingly, within three days after the

informal hearing, any participant in the

informal meeting may request the OTS

to hold a formal meeting. See final

§ 516.170(e). The participant making the

request should describe the nature of

the issues or facts to be presented and

the reasons why a formal meeting is

necessary to make an adequate

presentation of the facts or issues. The

request must be filed with the OTS and

copies must be sent to other participants

in the informal meeting.

Section 516.180—What Procedures

Govern Formal Meetings on

Applications?

If a participant in the informal

meeting files a request for a formal

meeting under § 516.170(e), the OTS

will grant the request. Additionally, the

OTS may hold a formal meeting on its

own initiative, if it determines that

written submissions and informal

meetings are insufficient to adequately

present issues or facts to the OTS, or

that a formal meeting would otherwise

benefit the decisionmaking process. The

OTS may limit the issues considered at

the formal meeting to issues it deems

relevant or material. See final

§ 516.180(a).

The OTS anticipates that most formal

meetings will follow an informal

meeting. Accordingly, the OTS will not

grant a request for a formal meeting,

unless an informal meeting has been

conducted under § 516.170. However,

there may be occasions where the

informal meeting may be unnecessary.

Under these or other circumstances, the

OTS may elect to use its authority to

conduct a formal meeting on its own

initiative.

The OTS will announce formal

meetings by issuing a Notice of Formal

Meeting. The Notice will state the

subject and date of the filing, the time

and place of the formal meeting, and the

issues to be addressed. The OTS will

send the Notice to the applicant and any

commenter requesting a formal meeting.

The OTS may invite other interested

persons to participate in the formal

meeting by sending the Notice to such

persons. See final § 516.180(b).

Paragraph (c) addresses who may

participate in a formal meeting. A

person receiving a Notice must notify

the OTS of its intent to participate in the

formal meeting within ten days after the

OTS issues the Notice. At least five days

before the formal meeting, all

participants must provide the names of

their witnesses and copies of their

proposed exhibits to the OTS, the

applicant and any other person

designated by the OTS.

Section 516.180 (d) and (e) govern the

conduct of the formal meeting. Under

§ 516.180(e), the OTS will appoint a

presiding officer to conduct a formal

meeting. The presiding officer is

responsible for all procedural questions

not governed by § 516.180. Subject to

the rulings of the presiding officer, the

participants may make opening

statements and present witnesses,

material and data. All presenters of

documentary material must furnish

copies of the material to the OTS and to

each other participant. The OTS will

arrange for a transcript of the formal

meeting. Each participant must bear the

cost of the transcript that it requests for

its use. See final § 516.180(d). Section

516.180(e)(2) provides that certain rules

governing the conduct of formal

meetings and presentation of evidence

do not apply to formal meetings held

under § 516.180.

The rule does not address such

procedural issues as whether the formal

meeting will be public or private. Two

commenters advocated the addition of a

provision mandating public hearings

whenever a public meeting is requested.

These commenters noted that public

hearings provide opportunities for all

citizens to offer their views, including

senior citizens, public housing residents

and others. These commenters also

noted that this change would align OTS

procedures more closely to those of the

other banking agencies.

Commenters have always had the

ability to request public hearings on

issues involving the application, and the

OTS has had the discretion whether or

not to hold such hearings.6 The ability

of members of the public to request

public hearings, and the OTS’s

discretion to hold public hearings, is not

affected by this final rule. The final rule

would continue to permit the agency to

hold a public formal meeting.

Section § 516.190—Will a Meeting

Affect Application Processing Time

Frames?

The proposed rule at § 516.5(b)(2)

stated that if the OTS timely notifies the

applicant that it intends to hold a

conference, the OTS would temporarily

suspend applicable time periods for

automatic approval of the application.

Two commenters supported this

provision.

The final rule at § 516.190 adopts the

proposed rule with minor editorial

changes. The final rule provides for

suspension of application processing

time frames if the OTS has arranged an

informal or formal meeting. The time

periods will resume when the OTS

determines that a record has been

developed that sufficiently supports a

determination on the issues raised in

the comments.

C. Conforming Amendments to Related

Provisions

The proposed rule included

conforming amendments to §§ 543.2,

545.92, 545.95, 552.2–1, 552.2–2 and

556.5. Commenters had the following

comments on these conforming changes.
64142 Federal Register / Vol. 62, No. 233 / Thursday, December 4, 1997 / Rules and Regulations

7The OCC requires publication on the date of

filing or as soon as possible thereafter. 12 CFR

5.8(a). The FDIC generally requires publication no

earlier than 30 days before filing, and no later than

the date of filing. 12 CFR 303.6(f)(1)(ii). The FRB

generally requires filing within seven days of

publication. 12 CFR 262.3(b).

8This commenter also questions whether the

posting requirement has any applicability for short

distance relocations. The posting requirement at

§ 545.95(b)(1)(ii) does not apply to short distance

relocations. See existing § 545.95(c).

1. Duplicative Publication Requirements

One commenter observed that the

publication of notice provisions in

proposed §§ 543.2(d)(1), 545.92(d)(1),

552.2–1(a)(1) and 563.22(e) are

unnecessarily duplicative. The

commenter urged the OTS to

consolidate these provisions into a

single regulation under Part 516. The

commenter noted that this approach

would streamline the OTS regulations

and more closely conform OTS

regulations to the procedural regulations

of the other banking agencies.

The OTS agrees that the cited

publication requirements are

unnecessarily duplicative and has

consolidated §§ 543.2(d)(1),

545.92(d)(1), 552.2–1(a)(1) and

563.22(e)(1) into a new subpart under

Part 516. New Subpart B uses the same

plain language drafting techniques as

used in Subparts C and D.

The proposed rules would have

required an applicant to publish the

notice of the filing of the application no

earlier than three days before and no

later than the date of the filing of the

application. See proposed

§§ 543.2(d)(1), 545.92(d)(1) and 552.2–

1(a)(1). Various commenters suggested

that this three-day publication

requirement should be modified to

require publication as soon as possible

after filing of the application, or

extended to require publication within

7, 10, or 30 days of the filing of the

application.

The OTS has concluded that the

proposed three day requirement may be

too onerous under certain

circumstances, such as where local

newspapers are published on a weekly

basis. Unfortunately, uniformity with

the other bank regulatory agencies on

this issue is impossible, since each bank

regulatory agency has established

different publication requirements.7

Nonetheless, the OTS has decided to

adopt the FRB’s practice of requiring the

filing of the application within seven

days after the publication of the

newspaper notice. See final § 516.60.

This change does not affect the 30-day

comment period. As noted above, the

final rule has been revised so that the

comment period begins on the date that

the application is filed rather than the

date of the newspaper notice. See final

§ 516.140(a).

2. Posting Requirement

Section 545.95 addresses changes of

permanent locations and redesignations

of home and branch offices by federal

associations. The current rule requires

an applicant to post a notice of the

application for 17 days from the date of

the publication of the newspaper

notice—a period that is equal to the

extended comment period under current

application processing procedures. The

proposal would have required the

applicant to post a notice of an

application for 25 days from the date of

first publication. This time period

would more closely track the 25-day

revised comment period.

One commenter argued that § 545.95

unnecessarily duplicates the Federal

Deposit Insurance Act (‘‘FDIA’’)

provisions on branch closures, which

require posting for 30 days and sending

customer notices 90 days before

closure.8 See FDIA Section 42 (12 U.S.C.

1831r–1). The purposes of the two

posting requirements differ. The posting

requirement under § 545.95 is intended

to allow customers the opportunity to

comment on a proposed application to

change an office location or redesignate

a home or branch office. The FDIA

posting requirement, on the other hand,

is intended to provide notice to

customers of the proposed date of

closing of a branch and to identify

where customers may obtain services

following that date. Since the purposes

of the two notices differ, both

requirements will continue to be

applicable. However, the OTS would

not object if an institution were to

combine the two notices, provided the

combined notice clearly complies with

the notification, posting and timing

requirements under § 545.95 and the

FDIA. Any combined posting should

indicate that consummation of the

transaction is contingent on OTS

review.

3. Branching by Federal Savings

Associations

The OTS policy statement on

branching by federal savings

associations is found at § 556.5. The

OTS proposed to revise this section to

include a cross citation indicating that

the procedures for commenting on

applications are set forth in Part 516 and

Part 563e.

A commenter asserted that the

proposed amendment was confusing

and suggested the deletion of the crossreference to Part 563e. The OTS

modified this reference to specifically

cite the applicable regulations at 12 CFR

563e.29 (c) and (d).

D. Related Issues

1. Availability of Applications

Two commenters offered a number of

suggestions designed to improve the

availability of OTS information on

applications. The OTS has been working

on this issue for some time. The agency

began publishing a list of pending

applications on its web site on August

12, 1997. The list is updated daily and

is available at http://www.ots.treas.gov

under ‘‘Public Information’’ and

‘‘Industry Data.’’ Additionally, major

new applications are highlighted under

the ‘‘Significant New Applications’’

page.

2. Publication of OTS Decisions on

Applications

One commenter urged the OTS to

publish its decisions on applications.

The commenter noted that this change

would conform the OTS practices to

those of the FRB which publishes its

decisions in the Federal Reserve

Bulletin.

While the OTS will not publish the

text of its decisions, it intends to

continue its current practice of

simultaneously informing the applicant

and any commenters of the disposition

of an application. In addition, the OTS

intends to modify its web site to

indicate whether applications have been

granted or denied. If a commenter or

any other member of the public wishes

to obtain a copy of the public portion of

an OTS decision, it may do so by

contacting the OTS’s Information

Services Division.

3. Targeted CRA Exams

One commenter suggested that OTS

should implement the OCC’s policy of

conducting targeted CRA examinations

when CRA issues are raised by a

commenter and the issues were not

addressed in the last examination.

The OTS conducts regular CRA

examinations on a set cycle. In most

cases, the OTS has a timely assessment

of CRA performance available in

connection with processing an

application. Where an applicant’s CRA

record is not current, however, the OTS

may conduct a targeted CRA review to

obtain the information necessary to

access performance.

III. Executive Order 12866

The Director of the OTS has

determined that this final rule does not

constitute a ‘‘significant regulatory
Federal Register / Vol. 62, No. 233 / Thursday, December 4, 1997 / Rules and Regulations 64143

action’’ for the purposes of Executive

Order 12866.

IV. Regulatory Flexibility Act Analysis

The OTS certified that the proposed

rule would not have a significant

economic impact on a substantial

number of small entities under section

605(b) of the Regulatory Flexibility Act.

One commenter disagreed with this

certification. The commenter argued

that the proposal would make it

substantially more difficult for small

communities to comment on

applications because these communities

rarely have CRA expertise.

The OTS disagrees. The final rule

should make it easier for small entities,

including small communities, to

comment on applications. The final rule

provides guidance as to the content of

the comments to be filed and expands

the time period for the receipt of such

comments. Thus, the final rule should

provide small entities with a greater

opportunity to file comments. Moreover,

the rule permits commenters to

participate in informal and formal

meetings with the applicant and the

OTS.

Accordingly, pursuant to section

605(b) of the Regulatory Flexibility Act,

the OTS certifies that this final rule will

not have a significant economic impact

on a substantial number of small

entities. The final rule will enable the

OTS to process applications received

from all applicants, including small

savings associations and other small

entities, more expeditiously. It also

allows all entities, including small

entities, a longer period in which to

submit comments on applications.

V. Paperwork Reduction Act of 1995

The information collection

requirements contained in this rule are

found at 12 CFR 516.50–80, 516.100–

190, 543.2, 545.92, 545.95, 552.2–1, and

563.22. All of the collections of

information, except those found in

§§ 516.50–80 and §§ 516.100–190, have

been previously approved by the Office

of Management and Budget and the

burden under them remains unchanged

under this rule (OMB Control Nos.

1550–0005, 1550–0006, and 1550–

0016). The requirements in new

§§ 516.50–80 and §§ 516.100–190 were

previously found in several of the

sections mentioned above. New

§§ 516.50–80 and §§ 516.100–190 do not

add any additional burden and the new

citations will be added to the approved

packages under OMB Control Nos.

1550–0005, 1550–0006, and 1550–0016

by Paperwork Reduction Act Change

Worksheet.

Respondents/recordkeepers are not

required to respond to the collections of

information unless the collection

displays a currently valid OMB control

number.

VI. Unfunded Mandates Act of 1995

Section 202 of the Unfunded

Mandates Reform Act of 1995, Public

Law 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.

This final rule simplifies existing

procedures and should reduce

regulatory burden. The OTS has

determined that the final 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.

VII. Effective Date

Section 553(d) of the Administrative

Procedure Act (‘‘APA’’) requires an

agency to publish a substantive rule at

least 30 days before its effective date.

Section 553(d)(1) of the APA, however,

permits an agency to waive the normal

30-day delay in effective date for good

cause or when a rule relieves a

restriction.

The final rule is exempt from the 30-

day delayed effective date requirement.

Initially, we note that the 30-day

delayed effective date requirement

applies only to substantive rulemaking.

Today’s rule is primarily a procedural

rule that regulates the manner in which

applicants and commenters present

their viewpoints on pending

applications to the OTS. Moreover, to

the extent that the rule may have any

impact on the rights or interest of any

party, the rule relieves restrictions by

streamlining the public comment

process.

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 amends title 12, chapter V,

of the Code of Federal Regulations as set

forth below:

PART 516—APPLICATION

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.

2. Existing §§ 516.1, 516.2 and 516.3

are redesignated as subpart A, and the

subpart heading is added to read as

follows:

Subpart A—Application Processing

Guidelines

§ 516.2 [Amended]

3. Section 516.2(c)(6) is removed and

reserved.

4. Subpart B, consisting of §§ 516.50

through 516.80, is added to read as

follows:

Subpart B—Publication Requirements

Sec.

516.50 Who must publish a public notice of

an application?

516.60 When must I publish the public

notice?

516.70 Where must I publish the public

notice?

516.80 What language must I use in my

publication?

Subpart B—Publication Requirements

§ 516.50 Who must publish a public notice

of an application?

This subpart applies whenever an

OTS regulation requires an applicant

(‘‘you’’) to follow the public notice

procedures in this subpart.
64144 Federal Register / Vol. 62, No. 233 / Thursday, December 4, 1997 / Rules and Regulations

§ 516.60 When must I publish the public

notice?

You must publish a public notice of

the application no earlier than seven

days before and no later than the date

of filing of the application.

§ 516.70 Where must I publish the public

notice?

You must publish the notice in a

newspaper having a general circulation

in the following communities:

(a) The community in which your

home office(s) are located, or if you are

filing an application for permission to

organize, the community in which your

home office will be located; and

(b) If you are filing a branch

application, the community to be served

by the branch office.

§ 516.80 What language must I use in my

publication?

(a) English. You must publish the

notice in a newspaper printed in the

English language.

(b) Other than English. 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

you simultaneously publish additional

notice(s) in the community in the

appropriate language(s).

5. Subpart C, consisting of §§ 516.100

through 516.150, is added to read as

follows:

Subpart C—Comment Procedures

Sec.

516.100 What does this subpart do?

516.110 Who may submit a written

comment?

516.120 What information should I include

in my comment?

516.130 Where do I file my comment?

516.140 When do I file my comment?

516.150 Will I have additional

opportunities to discuss the application?

Subpart C—Comment Procedures

§ 516.100 What does this subpart do?

This subpart contains the procedures

governing the submission of public

comments on certain types of

applications or notices (‘‘applications’’)

pending before the OTS. It applies

whenever a regulation incorporates the

procedures in this subpart, or where

otherwise required by the OTS.

§ 516.110 Who may submit a written

comment?

Any person (‘‘you’’) may submit a

written comment supporting or

opposing an application.

§ 516.120 What information should I

include in my comment?

(a) Your comment should recite

relevant facts, including any

demographic, economic, or financial

data, supporting your position. If you

file a comment opposing an application,

your comment should also:

(1) Address at least one of the reasons

a relevant regulation lists as to why the

OTS may deny an application;

(2) Recite any relevant facts and

supporting data addressing these

reasons; and

(3) Address how the approval of the

application could harm you or any

community.

(b) If you wish to request an informal

meeting under § 516.170, you must file

a request with your comment. You

should describe the nature of the issues

or facts to be discussed and the reasons

why written submissions are

insufficient to adequately address these

facts or issues.

§ 516.130 Where do I file my comment?

You must file your comment with the

OTS office(s) set forth at § 516.1(c). If

you request an informal meeting under

§ 516.170, you must simultaneously

send a copy of the request to the

applicant.

§ 516.140 When do I file my comment?

(a) General. Except as provided in

paragraph (b) of this section, you must

file a written comment with the OTS

within 25 days after the application is

filed with the OTS.

(b) Late-filed comments. The OTS will

consider your late-filed comment if:

(1) Within the comment period, you

demonstrate to the OTS good cause why

you could not submit a timely comment;

and

(2) The OTS concludes that your

comment addresses a significant

regulatory concern and will assist in

disposing of the application.

§ 516.150 Will I have additional

opportunities to discuss the application?

The OTS may provide you with

additional opportunities to discuss the

application in informal or formal

meetings under subpart D of this part.

6. Subpart D, consisting of §§ 516.160

through 516.190, is added to read as

follows:

Subpart D—Meeting Procedures

516.160 What does this subpart do?

516.170 What procedures govern informal

meetings on applications?

516.180 What procedures govern formal

meetings on applications?

516.190 Will a meeting affect application

processing time frames?

Subpart D—Meeting Procedures

§ 516.160 What does this subpart do?

This subpart contains informal and

formal meeting procedures. It applies

whenever a regulation incorporates the

procedures in this subpart, or when

otherwise required by the OTS.

§ 516.170 What procedures govern

informal meetings on applications?

(a) When will the OTS arrange an

informal meeting? The OTS may arrange

an informal meeting with the applicant,

commenters, or any other interested

persons to clarify and narrow the issues

and to facilitate the resolution of the

issues. If a commenter has filed a

written request for an informal meeting

containing the information described at

§ 516.120(b), the OTS will arrange an

informal meeting. The OTS also may

arrange an informal meeting on its own

initiative.

(b) What action will the OTS take on

an informal meeting request? The OTS

will inform the applicant and

commenters requesting an informal

meeting of the OTS decision on a

request for an informal meeting, or of its

decision to hold an informal meeting on

its own initiative.

(c) How will the OTS inform the

informal meeting participants of the

date, time, location and format for the

informal meeting? The OTS will invite

the applicant and the commenter filing

the request for the informal meeting.

The OTS may also invite any other

interested persons to attend. The OTS

will inform the participants of the date,

time, location, and format for the

informal meeting a reasonable time in

advance of the informal meeting.

(d) What procedures will govern the

conduct of the informal meeting? The

OTS may hold informal meetings in any

format, including a telephone

conference or face-to-face meeting.

(e) Will there be an additional

opportunity to discuss the application?

Within three days after the informal

meeting, any participant in the informal

meeting may request the OTS to hold a

formal meeting under § 516.180. The

participant should describe the nature

of the issues or facts to be presented and

the reasons why a formal meeting is

necessary to make an adequate

presentation of the facts or issues. The

participant must file the request with

the OTS and send copies of the request

to other participants in the informal

meeting.

§ 516.180 What procedures govern formal

meetings on applications?

(a) When will the OTS hold a formal

meeting? The OTS will not grant a

request for a formal meeting unless an

informal meeting has been conducted

under § 516.170. The OTS will grant all

requests for a formal meeting filed

under § 516.170(e). The OTS may also
Federal Register / Vol. 62, No. 233 / Thursday, December 4, 1997 / Rules and Regulations 64145

hold a formal meeting on its own

initiative, if it determines that written

submissions and informal meetings are

insufficient to adequately present issues

or facts to the OTS, or that a formal

meeting would otherwise benefit the

decisionmaking process. The OTS may

limit the issues considered at the formal

meeting to issues that the OTS deems

relevant or material.

(b) How will the OTS announce the

formal meeting? The OTS will issue a

Notice of Formal Meeting that will state

the subject and date of the filing, the

time and place of the formal meeting

and the issues to be addressed. The OTS

will send the Notice to the applicant

and any person requesting a formal

meeting under § 516.170(e). The OTS

may also invite other interested persons

to participate in the formal meeting by

sending the Notice to such persons.

(c) Who may participate in the formal

meeting? A person receiving a Notice

must notify the OTS of its intent to

participate within ten days after the

OTS issues the Notice. At least five days

before the formal meeting, all

participants in the formal meeting must

provide the names of their witnesses

and copies of proposed exhibits to the

OTS, the applicant, and any other

person designated by the OTS.

(d) Will the formal meeting be

transcribed? The OTS will arrange for a

transcript. Each participant must bear

the cost of any copies of the transcript

it requests for its use.

(e) What procedures govern the

conduct of the formal meeting? (1) The

OTS will appoint a presiding officer to

conduct the formal meeting. The

presiding officer is responsible for all

procedural questions not governed by

this section. Subject to the rulings of the

presiding officer, a participant may

make opening statements and present

witnesses, material and data. If a

participant presents documentary

material, it must furnish copies of the

material to the OTS and to each other

participant. The OTS may keep the

formal meeting record open for

additional information for up to 14 days

following the receipt of the transcript.

(2) The Administrative Procedure Act

(5 U.S.C. 551 et seq.), the Federal Rules

of Evidence (28 U.S.C. Appendix), the

Federal Rules of Civil Procedure (28

U.S.C. Rule 1 et seq.) and the OTS Rules

of Practice and Procedure in

Adjudicatory Proceedings (12 CFR part

509) do not apply to formal meetings

under this section.

§ 516.190 Will a meeting affect application

processing time frames?

If the OTS has arranged a meeting, it

will suspend applicable application

processing time frames, including the

time frames for deeming an application

complete and the applicable approval

time frames specified in § 516.2 or

516.3. The time period will resume

when the OTS determines that a record

has been developed that sufficiently

supports a determination on the issues

raised in the comments.

PART 543—INCORPORATION,

ORGANIZATION, AND CONVERSION

OF FEDERAL MUTUAL

ASSOCIATIONS

7. The authority citation for part 543

continues to read as follows:

Authority: 12 U.S.C. 1462, 1462a, 1463,

1464, 1467a, 2901 et seq.

8. In § 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:

§ 543.2 Application for permission to

organize.

* * * * *

(d) * * *

(1) The applicant must publish a

public notice of the application to

organize in accordance with the

procedures specified in subpart B of

part 516 of this chapter.

* * * * *

(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) Any person may inspect the

application and all related

communications at the Regional Office

during regular business hours, unless

such information is exempt from public

disclosure.

(e) Submission of comments.

Commenters may submit comments on

the application in accordance with the

procedures specified in subpart C of

part 516 of this chapter.

(f) Meetings. The OTS may arrange

informal or formal meetings in

accordance with the procedures

specified in subpart D of part 516 of this

chapter.

* * * * *

(h) * * *

(1) Applications for permission to

organize an interim Federal savings

association are not subject to paragraphs

(d), (e), (f) or (g)(2) of this section.

* * * * *

PART 545—OPERATIONS

9. The authority citation for part 545

continues to read as follows:

Authority: 12 U.S.C. 1462a, 1463, 1464,

1828.

10. In § 545.92, paragraphs (d), (e)

heading, (e)(2) and (f) are revised, and

paragraphs (i) and (j) are removed to

read as follows:

§ 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 must publish a public notice

of the branch application or notice in

accordance with the procedures

specified in subpart B of part 516 of this

chapter.

(ii) 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.

(iii) 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 § 556.5 of this

chapter and shall file the application

required under § 516.3(b)(2) of this

chapter or the notice required under

§ 516.3(a) of this chapter within three

days after the publication of the public

notice under paragraph (d)(1) of this

section.

(3) Submission of comments.

Commenters may submit comments on

the application or notice in accordance

with the procedures specified in subpart

C of part 516 of this chapter.

(4) Meetings. The OTS may arrange

informal or formal meetings in

accordance with the procedures

specified in subpart D of part 516 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 suspends the applicable

processing time frames under § 516.190

of this chapter, or 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 suspends the

applicable processing time frames under

§ 516.190 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
64146 Federal Register / Vol. 62, No. 233 / Thursday, December 4, 1997 / Rules and Regulations

process the filing as an application

under § 516.3(a)(3) of this chapter. If the

OTS suspends the applicable processing

time frames, the savings association may

not open a branch until the OTS

provides a notification of its approval.

* * * * *

11. In § 545.95, paragraph (a) and

paragraph (b)(1)(ii) are revised to read as

follows:

§ 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 § 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

12. The authority citation for part 552

continues to read as follows:

Authority: 12 U.S.C. 1462, 1462a, 1463,

1464, 1467a.

13. Section 552.2–1 is amended by

revising paragraph (a) to read as follows:

§ 552.2–1 Procedure for organization of

Federal stock association.

(a) Application for permission to

organize. Applications for permission to

organize a Federal stock association are

subject to this section and to § 543.3 of

this chapter. Recommendations by

employees of the OTS regarding

applications for permission to organize

are privileged, confidential, and subject

to § 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 to organize in accordance

with the procedures specified in subpart

B of part 516 of this chapter.

(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) Any person may inspect the

application and all related

communications 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.

Commenters may submit comments on

the application in accordance with the

procedures specified in subpart C of

part 516 of this chapter.

(4) Meetings. The OTS may arrange

informal or formal meetings in

accordance with the procedures

specified in subpart D of part 516 of this

chapter.

* * * * *

14. Section 552.2–2 is amended by

revising paragraph (a) to read as follows:

§ 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 subparts B,

C and D of part 516 of this chapter or

§ 552.2–1(b)(3) of this part.

* * * * *

PART 556—STATEMENTS OF POLICY

15. 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.

16. Section 556.5 is amended by

revising paragraph (c)(4) to read as

follows:

§ 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 subpart C of part 516 of this

chapter, § 563e.29 (c) and (d) of this

chapter, the OTS Application

Processing Handbook, and other

supervisory guidance issued by the

OTS.

* * * * *

PART 563—OPERATIONS

17. 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. 4012a, 4104a, 4104b, 4106, 4128.

18. Section 563.22 is amended by

revising paragraphs (e)(1), (e)(4) and

(f)(3) to read as follows:

§ 563.22 Merger, consolidation, purchase

or sale of assets, or assumption of

liabilities.

* * * * *

(e)(1) Unless the OTS finds that it

must act immediately in order to

prevent the probable default of one of

the savings associations involved, the

applicant must publish a public notice

of the application in accordance with

the procedures specified in subpart B of

part 516 of this chapter. In addition to

initial publication, the applicant must

publish on a weekly basis during the

period allowed for furnishing reports

under paragraph (e)(2) of this section.

* * * * *

(4) Commenters may submit

comments on the application in

accordance with the procedures set

forth in subpart C of part 516 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 informal

or formal meetings in accordance with

the procedures set forth in subpart D of

part 516 of this chapter.

* * * * *

(f) * * *

(3) The OTS suspends the applicable

processing time frames under § 516.190

of this chapter;

* * * * *

Dated: November 26, 1997.

By the Office of Thrift Supervision.

Ellen Seidman,

Director.

[FR Doc. 97–31612 Filed 12–3–97; 8:45 am]

BILLING CODE 6720–01–M

NATIONAL CREDIT UNION

ADMINISTRATION

12 CFR Part 703

Investment and Deposit Activities

AGENCY: National Credit Union

Administration (NCUA).

ACTION: Interim final rule with request

for comments.

SUMMARY: On June 12, 1997, the NCUA

Board issued comprehensive final

amendments to the NCUA Rules and

Regulations on investment and deposit

activities. Two new provisions will

result in a number of credit unions

having to significantly change the way

they do business with broker-dealers,

which was not NCUA’s intention. In

addition, there are a few minor errors in

the regulatory language. This document

revises the two broker-dealer provisions

to make them consistent with NCUA’s

intent and corrects the minor errors.