[Federal Register Volume 65, Number 213 (Thursday, November 2, 2000)]
[Proposed Rules]
[Pages 66118-66136]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-27959]


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DEPARTMENT OF THE TREASURY

Office of Thrift Supervision

12 CFR Parts 516, 517, 543, 544, 545, 550, 552, 555, 559, 560, 562, 
563, 563b, 563f, 565, 567, 574, 575, 584

[No. 2000-94]
RIN 1550-AB14


Application Processing

AGENCY: Office of Thrift Supervision, Treasury.

ACTION: Notice of proposed rulemaking.

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SUMMARY: As part of its ongoing effort to review and streamline its 
regulations, the Office of Thrift Supervision (OTS) proposes to revise 
its application processing guidelines and procedures. The proposed 
changes would update the rules to reflect existing practices and 
procedures; provide more predictable procedures for applicants; and 
provide greater flexibility to OTS in processing applications. OTS has 
also applied ``plain language'' drafting techniques, which should make 
the application processing rules easier to understand.

DATES: Comments must be received on or before January 2, 2001.

ADDRESSES:

Mail: Send comments to Manager, Dissemination Branch, Information 
Management and Services Division, Office of Thrift Supervision, 1700 G 
Street NW., Washington, DC 20552, Attention Docket No. 2000-94.
Delivery: Hand deliver comments to the Guard's Desk, East Lobby 
Entrance, 1700 G Street NW., from 9 a.m. to 4 p.m. on business days, 
Attention Docket No. 2000-94.
Facsimiles: Send facsimile transmissions to FAX Number (202) 906-7755, 
Attention Docket No. 2000-94; or (202) 906-6956 (if comments are over 
25 pages).
E-Mail: Send e-mails to ``<a href="/cdn-cgi/l/email-protection#f0cc91d098829596cd" http: public.info">public.info</a>@ots.treas.gov">public.info@ots.treas.gov</a>'', Attention Docket 
No. 2000-94, and include your name and telephone number.
Public Inspection: Interested persons may inspect comments at the 
Public Reference Room, 1700 G St. NW., from 10 a.m. until 4 p.m. on 
Tuesdays and Thursdays or obtain comments and/or an index of comments 
by facsimile by telephoning the Public Reference Room at (202) 906-5900 
from 9 a.m. until 5 on business days. Comments and the related index 
will also be posted on the OTS Internet Site at ``www.ots.treas.gov''.

FOR FURTHER INFORMATION CONTACT:

Lane Langford, Regulatory Analyst, Office of Examination and 
Supervision, (202) 906-7027;
Celeste Anderson, Program Analyst, Compliance Policy & Specialty 
Examinations, (202) 906-7990;
Robyn Dennis, Manager, (202) 906-5751 and Josephine Battle, Program 
Analyst Trainee, (202) 906-6870, Supervision Policy Division;
John P. Harootunian, Senior Counsel for Special Transactions, Business 
Transactions Division, (202) 906-6415; and
Koko Ives, Counsel (Banking and Finance) Regulations and Legislation 
Division, Office of Chief Counsel, Office of Thrift Supervision, 1700 G 
Street NW., Washington, DC 20552.

SUPPLEMENTARY INFORMATION:

I. Background

    OTS application processing guidelines and procedures are found in 
12 CFR part 516. In today's proposed rulemaking, OTS proposes to revise 
these rules to update the rules to reflect existing practices and 
procedures; to provide more predictable procedures for applicants; and 
to provide greater flexibility to OTS in processing applications. OTS 
has also applied ``plain language'' drafting techniques.\1\
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    \1\ In 1997, OTS added three new subparts to part 516. 62 FR 
64138 (Dec. 4, 1997). These new subparts were also drafted using 
``plain language'' drafting techniques. OTS is proposing to redraft 
the remainder of part 516 consistent with section 722 of Gramm-
Leach-Bliley Act (the G-L-B Act or Act) which requires OTS to use 
``plain language'' in all proposed and final rules published after 
January 1, 2000.
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    The intent of today's proposed rulemaking is to improve the clarity 
and the efficiency of the OTS application processing procedures. These 
improvements will make the rules easier for applicants to understand. 
That is, applicants will know what to expect from OTS and what OTS 
expects from applicants in processing an application. The applicants 
should also benefit from a more expeditious review and processing of 
applications.
    Most changes in today's proposed rulemaking clarify existing 
procedures. OTS has, for example, presented current information in 
user-friendly charts; explained how it computes time periods; and 
explained how an applicant may determine whether an application should 
be filed with the Region and Headquarters. OTS would also add a new 
proposed provision permitting an applicant to designate portions of an 
application as confidential to reflect current policy.
    In addition, OTS proposes to remove some technical requirements 
from the existing regulations and incorporate this information into 
individual application forms. OTS is currently revising its forms and 
application-processing handbook to reflect these changes. This 
regulation will not be issued in its final form until those forms and 
handbooks are in place.
    OTS proposes only a few substantive changes to the existing rules. 
These include new provisions: addressing pre-filing procedures for 
complex applications in order to expedite processing of these 
applications, permitting OTS to extend certain processing time frames, 
and allowing OTS to deem certain long-pending applications to have been 
withdrawn. OTS believes that these changes will provide greater 
efficiency and flexibility in the processing of applications. The 
section-by-section analysis below specifically discusses all of the 
proposed changes.

II. Section-by-Section Analysis

    Today's proposal would replace existing Secs. 516.1, 516.2, and 
516.3 with two new subparts to part 516. Revised subpart A would 
prescribe pre-filing and filing procedures. New subpart E

[[Page 66119]]

would describe OTS review procedures. Today's proposal would make minor 
revisions to existing subparts B, C, and D, which govern publication 
requirements, public comment procedures, and meeting procedures.
    In addition, this proposed rule includes conforming amendments 
revising and updating numerous cross-references to part 516 contained 
in other OTS regulations. These changes are not separately discussed in 
this preamble.

Section 516.1  What Does This Part Do?

    Proposed Sec. 516.1 sets out the purpose of part 516. Proposed 
Sec. 516.1(a) states that the pre-filing and filing procedures and OTS 
review process in subparts A and E would apply whenever an OTS 
regulation requires any person to file an application with OTS. The 
publication, public comment, and meeting procedures at subparts B, C, 
and D, however, would apply only when an OTS regulation incorporates 
those procedures or when otherwise required by OTS.
    Like current rule Sec. 516.2, proposed Sec. 516.1(b) would state 
that part 516 does not apply to: (1) An application related to a 
transaction under section 13(c) or (k) of the Federal Deposit Insurance 
Act, 12 U.S.C. 1823(c) (assistance to insured depository institutions) 
or 1823(k) (emergency acquisitions); (2) a request for reconsideration, 
modification, or appeal of a final OTS action; (3) a request related to 
litigation, an enforcement proceeding, a supervisory directive, or 
supervisory agreement; or (4) an application filed under an OTS 
regulation that prescribes other application processing procedures and 
time frames for the approval of applications, such as applications 
under part 563b which refers to mutual to stock conversions.\2\ Where 
an OTS regulation provides some application processing procedures, or 
time frames, OTS will apply part 516 to the extent necessary to process 
the application. Thus, the general rule is if a regulation governing a 
specific type of application provides conflicting procedures, the 
underlying regulation will govern.
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    \2\ On July 12, 2000, OTS published in the Federal Register the 
notice of proposed rulemaking and accompanying Interim Final Rule 
revising part 563b, which governs application procedures for 
conversions of mutual savings associations to stock associations.
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Section 516.5  Do the Same Procedures Apply to All Applications Under 
This Part?

    OTS currently processes applications under part 516 using two 
procedures--expedited treatment and standard treatment. Generally, 
expedited treatment allows an applicant to file a notice with OTS 
before engaging in an activity, while standard treatment requires an 
applicant to file an application and obtain formal OTS approval before 
engaging in an activity. Proposed Sec. 516.5 would provide a simplified 
chart for determining which treatment applies to a filing. This chart 
incorporates existing criteria, except as discussed below. The chart 
would also update terminology to reflect current OTS usage.
    Under the current rule, the decision to process an application 
under expedited treatment is based, in part, on the association's 
condition, as reflected in the composite Uniform Financial Institutions 
Rating System (UFIRS) rating, the Community Reinvestment Act (CRA) 
performance rating, and the compliance rating received during its most 
recent examination. The proposed rule would continue to use these 
rating systems, but would revise the current rule to utilize ratings 
that are assigned by any federal banking regulator. The proposed rule 
also clarifies that an applicant without any prior composite, CRA, or 
compliance ratings would receive standard treatment. Thus, an 
application received from a start-up institution before its first 
examination would receive standard treatment.
    OTS assesses an association's condition using other rating systems, 
including the Uniform Rating System for Data Processing Operations and 
the Uniform Interagency Trust Rating System. OTS does not currently 
consider these ratings when determining whether expedited or standard 
treatment is appropriate. OTS believes that ratings under these systems 
may be germane to certain types of institutions and certain types of 
applications. OTS requests comment on whether it should revise the 
proposed rule to incorporate these ratings in the decision to process 
applications under the expedited treatment.

Section 516.10  How Does OTS Compute Time Periods Under This Part?

    OTS proposes to add a new provision explaining how OTS computes 
time periods under part 516. To conform to current practices, proposed 
Sec. 516.10 would state that OTS would not include the day of the act 
or event that commences the time period. Separately, the proposed rule 
would state when the last day of a time period is a Saturday, Sunday, 
or Federal holiday, the period would run until the end of the next day 
that is not a Saturday, Sunday, or Federal holiday. This provision 
would modify current OTS practice.

Subpart A--Pre-Filing and Filing Procedures

    Subpart A would describe pre-filing and filing procedures for 
applications under the standard and expedited treatment.

Pre-Filing Procedures

Section 516.15  Must I Meet With OTS Before I File My Application?

    Proposed Sec. 516.15 is new. This section would require certain 
applicants to meet with OTS at least 30 calendar days before filing an 
application. These pre-filing meetings would permit OTS and the 
applicant to identify any legal or policy issues at the pre-filing 
stage, and would enable the applicant to address these issues early in 
the process. By identifying and addressing issues early in the 
application process, OTS believes that pre-filing meetings should 
expedite the processing of complex applications.
    Based on OTS's experience, certain intricate applications 
containing novel or complex issues would benefit from the additional 
review a pre-filing meeting would provide. OTS proposes to require a 
pre-filing meeting for the following types of applications:
    <bullet> An application for permission to organize a de novo 
federal savings association.
    <bullet> An application to convert an existing financial 
institution or credit union to a federal savings association. OTS 
generally would not, however, require a pre-filing meeting where a 
state-chartered savings association regulated by OTS or a state-
chartered savings bank regulated by the Federal Deposit Insurance 
Corporation (FDIC) seeks to convert to a federal association. The range 
of activities that commercial banks and credit unions may conduct can 
differ significantly from savings associations' activities. In 
contrast, state-chartered savings banks engage in activities that 
federal thrifts may conduct (with some exceptions). As a result, these 
applications are typically less complex, which alleviates the need to 
require a pre-filing meeting. As with any application, however, OTS or 
an applicant may always request a pre-filing meeting to expedite the 
review.
    <bullet> An application to acquire control of a savings association 
filed by an insurance company, an investment company, a securities 
firm, a commodities firm, or a pension fund.
    OTS may require, or any applicant may request, a pre-filing meeting 
for other types of applications or applicants if a meeting will help 
resolve issues or expedite the process. OTS specifically requests 
comment on whether other

[[Page 66120]]

specific types of applications or applicants should also be subject to 
the pre-filing meeting requirement.
    The proposed rule does not prescribe a format for the pre-filing 
meeting. Rather, OTS expects the Regional Office to select a format 
that addresses the needs of the particular applicant and the issues 
presented by the proposed application. Depending on the circumstances, 
OTS may conduct a pre-filing meeting by telephone, through video 
conferencing, in person, or through any other reasonable means. 
Similarly, the proposed rule does not indicate who must attend the pre-
filing meeting. Key personnel should attend the meeting. OTS will issue 
additional guidance in its handbooks regarding pre-filing meetings.

Section 516.20  What Information Must I Provide to OTS Before the Pre-
Filing Meeting?

    This new proposed section, Sec. 516.20(a), requires applicants to 
provide OTS with a draft business plan for the savings association at 
least seven calendar days before a required pre-filing meeting. This 
submission should assist OTS in identifying potential issues and other 
concerns in preparation for the pre-filing meeting. At this stage, OTS 
will review, but will not approve, the draft business plan.
    Under Sec. 516.20(b), the proposed rule would set out the 
requirements for the draft business plan. At a minimum, the draft 
business plan must:
    <bullet> Clearly and completely describe the projected operations 
and activities of the savings association, including financial 
projections for a minimum of three years.
    <bullet> Describe the risks associated with the transaction and the 
impact of the transaction on any existing activities and operations of 
the savings association.
    <bullet> Identify all proposed directors and senior executive 
officers of the savings association,\3\ and demonstrate that these 
individuals have the expertise to prudently manage the operations and 
activities described in the plan.
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    \3\ See 12 CFR 563.555 for definitions of director and senior 
executive officer.
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    <bullet> Demonstrate how applicable requirements regarding serving 
the credit and lending needs of the savings association's market areas 
will be met.
    Finally, proposed paragraph (c) would state that OTS may require an 
applicant to provide additional relevant information before the pre-
filing meeting.

Filing Procedures

    Under the Government Paperwork Elimination Act (GPEA),\4\ Federal 
agencies are required, by October 21, 2003, to permit individuals to 
file information electronically as a substitute for paper, and to use 
electronic authentication to validate the identity of the sender and 
the integrity of the electronic content when practicable.
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    \4\ Title XVII of Pub. L. 105-277.
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    OTS is reviewing the issues related to the electronic filing of 
applications, with the goal of permitting some electronic filing before 
the GPEA target date. OTS seeks comment on all issues affecting your 
ability or desire to send electronic filings. Specifically, what do you 
see as the advantages and disadvantages of filing applications 
electronically rather than by paper? How can OTS make electronic filing 
of applications of most value and easy to use? What constraints should 
OTS keep in mind when implementing electronic procedures?
    Although OTS would permit, not require, electronic filing, OTS also 
seeks input on whether filing electronically would disadvantage certain 
applicants.
    Finally, OTS anticipates that it will be able to implement 
electronic filing only on a graduated basis. Commenters should identify 
which types of applications OTS should accept for electronic filing 
initially.

Section 516.25  What Type of Application Must I File?

    Proposed Sec. 516.25(a), like current Sec. 516.3(a)(2), would 
permit applicants eligible for expedited treatment to file in the form 
of a notice that includes all information required under the applicable 
substantive regulation. The notice would be an application for purposes 
of all statutory and regulatory references to applications.
    Proposed Sec. 516.25(b) would require applicants subject to 
standard treatment to file an application following all applicable 
substantive regulations and guidelines governing the filing of 
applications.
    Proposed Sec. 516.25(c) would also clarify OTS current practices 
regarding the contents of a waiver request. If an applicant requests 
that OTS waive required information under the rules, the applicant must 
submit a written statement describing the waiver request and explain 
why the information is not needed for OTS to evaluate the filing under 
applicable standards.

Section 516.30  What Information Must I Provide With My Application?

    Proposed rule 516.30(a) advises applicants that they may obtain 
information about required certifications, other regulations and 
guidelines affecting particular notices and applications, appropriate 
forms, and instructions from any OTS Regional Office or OTS's web page 
at www.ots.treas.gov. The reference to the web page is new. OTS is 
currently reviewing and revising its applications forms and handbooks. 
The new versions will be available before these rules become final.
    Proposed rule 516.30(b) clarifies current Sec. 516.1(c), and would 
require the applicant to caption the original application and all 
copies with the type of filing. In addition, the applicant must include 
all exhibits and other pertinent documents with the original and the 
copies. This proposed rule does not require the applicant to provide 
original signatures on copies if the copy indicates that the original 
was signed.
    The current regulation requires an applicant filing certain types 
of applications to include copies labeled for submission to certain 
other federal government agencies and to state supervisors.\5\ See 
current Sec. 516.1(c). OTS proposes to remove the labeling requirement 
for all filings.
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    \5\ Electronic filing issues are addressed below in the preamble 
discussion of Sec. 516.40.
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Section 516.35  May I Keep Portions of My Application Confidential?

    Proposed Sec. 516.35 is new, but restates current OTS policy for 
protecting confidential information. As a general rule, OTS makes all 
submissions under part 516 available to the public. However, under 
proposed Sec. 516.35(b)(1), the applicant may request OTS keep portions 
of the application confidential. The applicant would be required to 
explain in detail how the request is consistent with the standards 
under the Freedom of Information Act \6\ (FOIA) and OTS regulations 
implementing FOIA.\7\ For example, the applicant should explain how it 
will be substantially harmed by public disclosure. An applicant could 
provide a statement of the nature and extent of competitive business 
harm or personal privacy invasion it would experience as a result of 
public disclosure. The applicant must also separately bind and mark the 
portions of the application it considers confidential and the portions 
it considers non-confidential.
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    \6\ 5 U.S.C. 552.
    \7\ 12 CFR part 505.

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[[Page 66121]]

    Proposed Sec. 516.35(b)(2) would state that OTS would not treat as 
confidential the portion of the application describing the applicant's 
plan to meet Community Reinvestment Act (CRA) \8\ objectives since 
public commenters may need this information to address CRA issues. Some 
applicants have attempted to incorporate information contained in 
confidential portions of the application into the CRA submission by 
referencing it. As a result, public commenters cannot review the cross-
referenced CRA materials from the application and are forced to obtain 
this information under FOIA. To insure that this necessary information 
is made available to public commenters in a timely manner, OTS would 
make all information in the applicant's CRA plan, including information 
``incorporated by reference,'' available to the public upon request.
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    \8\ 12 U.S.C. 2901.
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    Under proposed Sec. 516.35(c), OTS would determine whether 
information designated as confidential must be made available to the 
public under FOIA and the implementing regulations at 12 CFR part 505. 
Before OTS discloses any information to the public that an applicant 
designates as confidential, OTS would advise the applicant.
    Under proposed Sec. 516.35(d), if OTS issues a public statement 
with its decision on an application, OTS may comment on confidential 
information in the public statement without notifying the applicant.

Section 516.40  Where Do I File My Application?

    Proposed Sec. 516.40 clarifies where an applicant must file an 
application. Proposed Sec. 516.40(a)(1) directs all applicants to file 
the original application and required copies with, and to the attention 
of, the applications filing division of the appropriate OTS Regional 
Office. The proposed rule would delete all references to the number of 
required copies. Compare existing Sec. 516.1(c). Instead, the proposed 
rule indicates that the applicant must file the number of copies 
required under the applicable form. If the form does not indicate the 
number of copies to be filed, or if OTS has not prescribed a form for a 
type of application, proposed Sec. 516.40(a) would require applicants 
to submit an original and two copies. Proposed Sec. 516.40(a)(2) 
provides the addresses of OTS Regional Offices and the states served by 
each Region in chart form.
    Proposed Sec. 516.40(b)(1) would require an applicant to also file 
additional copies with the applications filing division at OTS 
Headquarters, if the application involves a significant issue of law or 
policy or if the form otherwise directs an applicant to file with OTS 
Headquarters. Again, the applicable form, rather than the proposed 
rule, would specify how many copies must be filed with OTS 
Headquarters. The applicant must submit three copies, if OTS has not 
prescribed a form or a prescribed form does not indicate the number of 
copies to file.
    Proposed Sec. 516.40(b)(2) advises applicants that significant 
issues of law or policy are identified in delegations of authority from 
OTS Headquarters to the Regions. These delegations may currently be 
accessed on the OTS web site at www.ots.treas.gov under Director's 
Orders \9\ or by contacting a Regional Office. The types of 
applications involving significant issues of law or policy currently 
include among others:
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    \9\ The primary delegation of authority to the Regional 
Directors is currently contained in Order No. 95-177, dated 
September 26, 1995, located on the web site under Director's Orders 
for 1995. The OTS is in the process of reviewing and updating both 
its delegations and its web site to make this and other application-
related materials more accessible to applicants.
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    <bullet> Acquisitions by foreign acquirors (that have not 
previously received OTS approval), insurance or investment companies, 
credit unions, securities firms, or pension funds.
    <bullet> Hostile acquisitions.
    <bullet> Qualified stock issuances.
    <bullet> Establishment of a mutual holding company.
    <bullet> De novo charters.
    <bullet> Service corporation activities that have not been 
previously approved by OTS.
    The list is not exhaustive and OTS reserves the right to identify 
significant issues in a particular application, in which case it will 
advise the applicant. If OTS identifies such issues, the Regional 
Office will forward the appropriate number of copies to OTS 
Headquarters. As a result, the 30-day review period under Secs. 516.200 
or 516.210 will restart in its entirety. However, the filing date of 
the application will not change. See proposed Sec. 516.45(c). 
Applicants requiring more information or seeking clarification on these 
issues may also contact the Office of Examination and Supervision at 
OTS Headquarters, which will provide copies of applicable delegations.

Section 516.45  What Is the Filing Date of My Application?

    Proposed Sec. 516.45 is new and identifies the application filing 
date. The identification of the filing date is important because much 
of the timing of the application's processing is based on this date. 
For example, under proposed Sec. 516.200, if an applicant files a 
notice under expedited treatment, the applicant may engage in the 
proposed activity 30 calendar days after the filing date unless advised 
otherwise. For applications filed under standard treatment, OTS must 
take various actions within 30 calendar days after the filing date, 
such as deeming an application complete and beginning the review 
period, requesting additional information, or deeming an application 
deficient.
    Proposed Sec. 516.45(a) would explain that the filing date of an 
application is the date that an applicant completes three requirements. 
First, the applicant must comply with any pre-filing meeting 
requirement at Sec. 516.15.
    Second, the applicant must file the application and all required 
copies with OTS, as described under Sec. 516.40. Because it is the 
applicant's responsibility to properly address its application, an 
application is not filed unless received by the proper office(s). If an 
applicant is required to file with a Regional Office and with OTS 
Headquarters, the applicant has not filed until it files with both 
offices. Similarly, an applicant has not filed with a Regional Office 
or OTS Headquarters until the application and the required number of 
copies is filed with that office. If an applicant files after the close 
of business established by the Regional Office or OTS Headquarters, the 
applicant has filed with that office on the next business day.
    Finally, under proposed Sec. 516.45(a)(3), an application is not 
filed until the applicant pays the applicable fee. An applicant has not 
paid a fee until it submits the fee to the appropriate Regional Office, 
or OTS waives the fee. Applicants may pay by check, money order, 
cashier's check or wire transfer payable to OTS.
    OTS will continue its current practice of notifying an applicant 
promptly, in writing, of the filing date of the application. OTS's 
acknowledgment of receipt of the filing does not imply that the 
application is complete. Once an application is filed, OTS will list 
the application on the Applications Pending report on the web site at 
www.ots.treas.gov. This report lists the name of the depository 
institution, date the application was filed, and the type of 
application.
    Under proposed Sec. 516.45(b), OTS may notify an applicant that the 
agency has adjusted an application filing date if the

[[Page 66122]]

applicant failed to meet any applicable publication requirements.
    Under proposed Sec. 516.45(c), if an applicant properly files an 
application with the Regional Office and OTS later determines that a 
significant issue of law or policy exists under Sec. 516.40(b)(2)(ii), 
the filing date of the application remains the day the applicant filed 
with the Regional Office. However, the 30-day review period under 
Secs. 516.200 or 516.210 of this part will restart in its entirety when 
the Regional Office forwards the appropriate number of copies to OTS 
Headquarters. OTS will notify the applicant when the new 30-day review 
period has begun.

Subparts B, C, and D

    Today's proposal would make minor revisions to existing subparts B, 
C, and D, which govern publication requirements, public comment 
procedures, and meeting procedures. OTS does not believe that it is 
necessary to propose significant revisions to these subparts because 
they were last amended in 1997.\10\
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    \10\ OTS regulations are unclear whether the publication 
requirements, public comment procedures and meeting procedures in 
part 516, subparts B, C, and D apply to applications by depository 
institutions seeking to convert to a Federal thrift charter. These 
procedures, however, clearly apply to applications for a new 
depository institution (see 12 CFR 543.2 and 552.2-1). In light of 
the business changes that may accompany conversions, OTS is 
proposing to clarify the applicable regulations at Secs. 543.9 and 
552.2-6 to apply the publication requirements, comment procedures 
and meeting procedures to these conversions as well. This 
clarification is consistent with current practices.
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    In subpart B, OTS proposes to add a new Sec. 516.55 to govern the 
content of the publication notice. This section would provide guidance 
to applicants preparing publication notices, and is based on FDIC's 
public notice requirements at 12 CFR 303.7. Specifically, proposed 
Sec. 516.55 would require an applicant to include the following 
information in its public notice:
    <bullet> The applicant's name and address.
    <bullet> The type of application.
    <bullet> The name of the depository institution(s) that is the 
subject matter of the application.
    <bullet> A statement indicating that the public may submit comments 
to the appropriate OTS office.
    <bullet> The address of the appropriate OTS office(s) where the 
public may submit comments.
    <bullet> The date that the public comment period closes.
    <bullet> A statement indicating that the nonconfidential portions 
of the application are on file in the Regional Office, and are 
available for public inspection during regular business hours.
    <bullet> Any other information that OTS requires the applicant to 
publish. Applicants may find the format for various publication notices 
in the appendix to the OTS application processing handbook.
    Subpart C contains the procedures governing the submission of 
public comments on applications or notices pending before OTS. OTS 
drafted this subpart in 1997 using the ``plain language'' format, and 
used the word ``you'' to refer to any person submitting a written 
comment supporting or opposing an application. OTS is proposing to use 
the word ``you'' throughout part 516 to refer to any person filing an 
application with OTS. See proposed Sec. 516.1(a). To avoid potential 
confusion, the proposal makes conforming technical changes to 
Secs. 516.120-516.150 by removing the term ``you'' and instead 
referring to ``commenters.'' In addition, OTS would revise the section 
heading of Sec. 516.140, to reflect this change.
    The proposed rule also makes two revisions to existing 
Sec. 516.130, which governs where public comments are filed. First, 
this section currently states that public comments must be filed with 
the appropriate OTS Regional Office. It has been revised to clarify 
that public comments must also be filed with OTS Headquarters if an 
application involves a significant issue of law or policy under 
Sec. 516.40(b).\11\ Second, currently commenters must only provide 
their comments to the applicant if the commenter requests a meeting. 
The proposed rule would require commenters to provide a copy of their 
comments to the applicant.
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    \11\ If OTS identifies a significant issue that is not listed on 
its delegations, the commenter will not be required to file with OTS 
Headquarters. Rather, the Regional Office will forward the public 
comments to OTS Headquarters.
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    Subpart D contains the procedures governing OTS formal and informal 
meeting procedures. OTS proposes to add a new Sec. 516.185 entitled 
``Will OTS approve or disapprove an application at a meeting?'' To 
codify current practices, proposed Sec. 516.185 would clarify that OTS 
will not approve or deny an application at a formal or informal 
meeting. In addition, OTS proposes to revise cross-citations in 
Sec. 516.190 to application processing time frames.
    OTS is not proposing any significant changes to the formal and 
informal meeting procedures in Subpart D. However, it specifically 
solicits comments on how the formal and informal meeting procedures are 
operating in practice.

Subpart E--OTS Review

    Proposed subpart E would describe OTS's application review process. 
Proposed Sec. 516.200 would describe the review under expedited 
treatment.
    Proposed Secs. 516.210 through 516.290 would describe the review 
under standard treatment.

Expedited Treatment

Section 516.200  If I File a Notice Under Expedited Treatment, When May 
I Engage in the Proposed Activities?

    Proposed Sec. 516.200 would describe OTS's review of notices under 
expedited treatment, and uses existing Sec. 516.3(a)(2) and (3) as a 
base. This section would permit an applicant to engage in the proposed 
activities unless OTS takes one of four actions within 30 calendar days 
after filing the notice.
    First, under proposed Sec. 516.200(a), OTS may require the 
applicant to file additional information supplementing the notice. If 
the applicant is required to file additional information, the applicant 
may engage in the proposed activities within 30 calendar days after 
filing the additional information, unless OTS takes one of the three 
actions described below.
    Under proposed Sec. 516.200(b), an applicant may engage in the 
proposed activity unless, within 30 calendar days after the filing 
date, OTS notifies the applicant that the application is subject to 
standard treatment. OTS will subject an application to standard 
treatment if the application raises a supervisory concern, raises a 
significant issue of law or policy, or requires significant additional 
information. OTS would notify the applicant if it must pay an 
additional fee for standard treatment.
    Under proposed Secs. 516.200(c) and (d) respectively, an applicant 
may engage in the proposed activity unless OTS suspends the applicable 
time frames as a result of a formal or informal meeting under existing 
Sec. 516.190, or OTS disapproves the notice.

Standard Treatment

Section 516.210  What Will OTS Do After I File My Application?

    Proposed Sec. 516.210(a) describes the actions that OTS will take 
within 30 calendar days after the filing of an application under 
standard treatment. Proposed Sec. 516.210(a) would clarify existing 
Sec. 516.2(c) and (d) by outlining the possible OTS actions in chart 
form.
    Under the proposed rule, OTS will take one of four actions. First, 
OTS may notify the applicant that the application

[[Page 66123]]

is complete. If OTS takes this action, the review period for the 
application would begin on the date that OTS deems the application 
complete.
    Second, OTS may notify the applicant that it must submit additional 
information to complete the application. Proposed Sec. 516.220, which 
is discussed below, would prescribe the procedures that govern the 
submission of additional information.
    Third, OTS may notify the applicant that the application is 
materially deficient and OTS would not process the application further. 
An application may be materially deficient if, for example, the 
application fails to include required information regarding the manner 
in which a savings association will meet its CRA responsibilities, the 
application fails to include significant parties, or the applicant 
fails to provide key information required by an application form.
    Finally, if OTS fails to act, the application would be deemed 
complete. The applicable review period would commence 30 calendar days 
after the application is submitted.
    Proposed Sec. 516.210(b) would address requests for a waiver of an 
information requirement. Under this proposed rule, if an applicant 
requests a waiver and OTS has not notified the applicant that it must 
submit additional information under proposed Sec. 516.210(a)(2), the 
request for a waiver is granted. This provision of the proposed rule is 
consistent with the current rule at Sec. 516.2(c)(1).

Section 516.220  If OTS Requests Additional Information To Complete My 
Application, How Will It Process My Application?

    Proposed Sec. 516.220(a) would chart the procedures governing the 
applicant's submission of additional information. Proposed 
Sec. 516.220(a) would require the applicant to respond within 30 
calendar days after OTS's request for additional information. OTS would 
take different actions depending on whether the applicant responds to 
the request, requests additional time, or fails to file a complete 
response.
    Under Sec. 516.220(a)(1), if the applicant responds to all 
information requests by OTS, OTS may take one of four actions within 15 
calendar days after the filing date of the applicant's response. These 
actions parallel the four actions described under proposed 
Sec. 516.210(a), except that OTS may request further additional 
information regarding matters derived from, or prompted by, information 
already furnished or additional information otherwise necessary to 
resolve the issues presented in the application. OTS intends to utilize 
the ``necessary to resolve issues'' provision infrequently and 
generally not to address issues that OTS could have addressed 
previously.
    Under proposed Sec. 516.220(a)(2), applicants may request an 
extension of time to respond to an information request. If OTS grants 
an extension, the applicant would be required to respond fully within 
the extended time period specified by OTS. If OTS denies the extension 
request, OTS would not process the application further.
    Proposed Sec. 516.220(a)(3) would address an applicant's failure to 
respond to an information request. If an applicant fails to respond 
completely, OTS could notify the applicant that the application is 
withdrawn and OTS would not process it further. Alternatively, OTS 
could notify the applicant that the response is incomplete and extend 
the period to respond.
    As noted above, OTS has 15 calendar days to respond to additional 
information submitted under paragraph (a)(1). Proposed Sec. 516.220(b) 
is a new provision, which would permit OTS to extend this 15-day period 
by an additional 15 calendar days, if OTS requires more time to review 
the response. OTS would be required to notify the applicant of the 
extension before the initial 15-day period expires. Under the proposed 
rule, OTS could extend this time frame for any application. OTS does 
not, however, intend to extend this time period routinely, but only in 
those circumstances where additional time is necessary to evaluate the 
responses to the information OTS has requested.
    Proposed Sec. 516.220(c) would govern requests for waiver of an 
information requirement. An applicant's request for a waiver of an 
information requirement would be granted if OTS fails to act within 15 
calendar days after the filing of the applicant's response, or until 
the end of the review period, if OTS has extended the review period 
under Sec. 516.220(b).

Section 516.230  Will OTS Conduct an Eligibility Examination?

    Section 516.230 clarifies existing practices governing eligibility 
examinations. Under proposed Sec. 516.230(a), OTS may notify the 
applicant at any time before it deems the application complete that it 
will conduct an eligibility examination. If OTS decides to conduct an 
eligibility examination, it would not deem the application complete 
until it concludes the examination.
    Proposed Sec. 516.230(b) would permit OTS to request additional 
information as a result of the eligibility examination. The applicant 
would have to respond to the additional information request within the 
time period required by OTS. OTS would review the response under the 
procedures described in Sec. 516.220.

Section 516.240  What May OTS Require Me To Do After My Application Is 
Deemed Complete?

    Under current Sec. 516.2(c)(5), OTS may request an applicant to 
supplement an application after it is deemed complete only under 
certain specific circumstances. OTS, for example, may request 
additional information of a material nature that was not reasonably 
available from the applicant, that was concealed at the time the 
application was deemed to be complete, or that pertained to 
developments subsequent to the time the application was deemed to be 
complete. Under proposed Sec. 516.240(a), OTS could request any 
additional information that is necessary to resolve or clarify the 
issues presented by the application.
    Under proposed Sec. 516.240(b), if OTS determines that a major 
issue of law or a change in circumstance arose after the application 
was filed, and the issue or changed circumstances substantially affects 
the application, OTS may notify the applicant that the application is 
now incomplete and require the applicant to submit additional 
information to complete the application under the procedures at 
Sec. 516.220. A major issue of law or a change in circumstance may 
arise after the application is deemed complete if, for example, 
significant litigation is initiated, major legislation is enacted, a 
new person or company acquires the applicant, or there is a major 
change in the business plan. OTS may also require the applicant to 
publish a new notice under Sec. 516.250.

Section 516.250  Will OTS Require Me To Publish a New Public Notice?

    Proposed Sec. 516.250 is new. This section would ensure that the 
public has adequate notice and opportunity to comment on any 
application that changes substantially after the initial public comment 
period. Under this proposed section, if an applicant was subject to 
publication requirements, OTS may require an applicant to publish a new 
public notice if: (1) The applicant submitted a revision to the 
application, the applicant submitted new or additional information, or 
a major issue of law or a change in circumstances arose after the 
filing of the application; and (2) OTS determines that additional 
public comment on these

[[Page 66124]]

matters is appropriate because of the significance of the new 
information or circumstances.
    Under proposed Sec. 516.250(b), OTS would notify the applicant if a 
new public notice of a revised application must be published. Under 
proposed Sec. 516.250(c), if the applicant must publish a new public 
notice of the revised application, the applicant must notify OTS after 
publishing the new public notice.

Section 516.260  May OTS Suspend Processing of My Application?

    Proposed Sec. 516.260 would permit OTS to suspend processing of an 
application indefinitely under certain circumstances. This provision 
uses existing Sec. 516.2(c)(7) as a base. It would permit OTS to 
suspend processing if OTS, another governmental entity, or a self-
regulatory trade or professional organization has initiated an 
investigation, examination, or administrative proceeding that is 
relevant to OTS's evaluation of the application. OTS may also suspend 
processing if the applicant requests the suspension or there are other 
extraordinary circumstances that have a significant impact on 
processing of the application. Such extraordinary circumstances may 
include pending legislation, material litigation, assessment of fees 
under 12 CFR 502.60(d), or other matters. OTS would promptly notify the 
applicant in writing of the suspension.

Section 516.270  How Long Is the OTS Review Period?

    Proposed Sec. 516.270(a) uses existing Secs. 516.2(d)(1) and (2) as 
a base. It specifies the length of time OTS may review the application. 
Under this proposed rule, the applicable review period is 60 calendar 
days after the date the application is deemed complete, unless an 
applicable OTS regulation specifies a different review period.\12\
---------------------------------------------------------------------------

    \12\ OTS rules outlining the substantive requirements for 
various applications occasionally impose unique review periods. In 
these instances, OTS will apply the review period in the substantive 
regulation. See, e.g., 12 CFR 563.22(f).
---------------------------------------------------------------------------

    Proposed Sec. 516.270(b) would set out the applicable review period 
for related applications. Under proposed Sec. 516.270(b), if an 
applicant submits more than one application in connection with a 
proposed action, or if two or more applicants submit related 
applications, the review period for all applications would be the time 
frame for the application with the longest review period. Compare 
existing Sec. 516 (2)(d)(2).
    Proposed Sec. 516.270(c) would govern extensions of the OTS review 
period. Under the proposed rule, OTS could extend the review period for 
up to 30 calendar days for any reason. To do so, OTS would be required 
to notify the applicant in writing of the extension before the end of 
the initial review period. This proposal differs from the current rule 
that requires OTS to notify the applicant at least 10 days before the 
end of the review period. Compare existing Sec. 516.2(e).
    Proposed Sec. 516.270(c)(2) would permit OTS to extend the review 
period of any application that presents a significant issue of law or 
policy until such time as OTS acts on the application. Under proposed 
Sec. 516.270(c)(2), OTS must notify an applicant in writing of this 
extension and the general reasons for the extension. OTS must issue 
this written extension before the review period expires, including any 
extension granted under proposed Sec. 560.260(c)(1).

Section 516.280  How Will I Know if My Application Has Been Approved?

    Proposed Sec. 516.280(a) would require OTS to approve or deny an 
application before the expiration of the applicable review period, 
including any extensions. Under proposed Sec. 516.280(b), an 
application would be approved if OTS fails to act within this period. 
See existing Sec. 516.2(d)(1).
    The proposed rule does not describe the standards that OTS will 
apply when it reviews applications. Rather, OTS's approval or 
disapproval would be based on the standards in the underlying 
regulation for the particular application. The current rule includes 
one standard governing the review of applications. In existing 
Sec. 516.3(b)(2), OTS must deny applications that are subject to 
standard treatment unless the association affirmatively demonstrates 
how the application will clearly improve its financial or managerial 
condition or improve its compliance with the CRA or other consumer-
related statutes without affecting its financial or managerial 
resources. The proposed rule would delete this section because the 
review standards in the applicable substantive regulations sufficiently 
address these matters.

Section 516.290  What Will Happen if OTS Does Not Approve or Disapprove 
My Application Within Two Calendar Years?

    Proposed Sec. 516.290 is new. Proposed Sec. 516.290(a) would permit 
OTS to address those applications that have been pending for a lengthy 
period and that are not making significant progress to a final approval 
or disapproval. Under this provision, if OTS has not approved or denied 
an applicant's pending application within two calendar years after the 
filing date, OTS will notify the applicant in writing that the 
application is withdrawn, unless the agency determines that the 
applicant is actively pursuing a final OTS determination. An applicant 
would not be actively pursuing a final OTS determination if the 
applicant fails to timely take an action required under the proposed 
part, including filing required additional information, or OTS suspends 
processing the application under Sec. 516.260 based on circumstances 
that are, in whole or in part, within the applicant's control and the 
applicant fails to take reasonable steps to resolve these 
circumstances.
    Proposed Sec. 516.290(b) would give applicants with pending 
applications a reasonable opportunity to avoid the withdrawal of their 
application. This section would not become effective until 90 days 
after the effective date of the final rule.

III. Derivation Chart for Revised Part 516

------------------------------------------------------------------------
   Revised  provision       Former  provision            Comments
------------------------------------------------------------------------
Sec.  516.1(a)                                    Added.
Sec.  516.1(b)           Sec.  516.2(a)(1)        Modified.
Sec.  516.1(c)           Sec.  516.2(a) (2)       Modified.
Sec.  516.5(a)                                    Added.
Sec.  516.5(b)                                    Added.
Sec.  516.5(c)           Sec.  516.3(b) (1)(i)    Modified.
Sec.  516.5(d)           Sec.  516.3(b) (1)(ii)   Modified.
Sec.  516.5(e)           Sec.  516.3(b) (1)(iii)  Modified.
Sec.  516.5(f)           Sec.  516.3(b) (1)(iv)   Modified.
Sec.  516.5(g)           Sec.  516.3(b) (1)(v)    Modified.
Sec.  516.5(h)                                    Added.
Sec.  516.5(i)                                    Added.
Sec.  516.10                                      Added.
Sec.  516.15                                      Added.
Sec.  516.20                                      Added.
Sec.  516.25(a)          Sec.  516.3(a)(2)        Modified.
Sec.  516.25(b)          Secs.  516.2(b)          Modified and Added.
Sec.  516.30(a)          Sec.  516.1.(c)          Modified and Added.
Sec.  516.30(b)          Sec.  516.1.(c)          Modified.
Sec.  516.35                                      Added.
Sec.  516.40(a)(1)       Sec.  516.1(c)           Modified and Added.
Sec.  516.40(a)(2)       Sec.  516.1(b)           Modified.
Sec.  516.40(b)          Sec.  516.1(a)&(c)       Modified.
Sec.  516.45(a)                                   Added.
Sec.  516.45(b)                                   Added.
Sec.  516.55                                      Added.
Sec.  516.120            Sec.  516.120            Modified.
Sec.  516.130            Sec.  516.130            Modified.
Sec.  516.140            Sec.  516.140            Modified.
Sec.  516.150            Sec.  516.150            Modified.

[[Page 66125]]

 
Sec.  516.185                                     Added.
Sec.  516.190            Sec.  516.190            Modified.
Sec.  516.200(a)         Sec.  516.3(a)(2)        Modified and Added.
Sec.  516.200(b)         Sec.  516.3(a)(3)        Modified.
Sec.  516.200(c)                                  Added.
Sec.  516.200(d)                                  Added.
Sec.  516.210(a)         Sec.  516.2(c)(1)        Modified and Added.
Sec.  516.210(b)         Sec.  516.2(c)(1)        Modified.
Sec.  516.220(a)         Sec.  516.2(c)(2)-(5)    Modified and Added.
Sec.  516.220(b)         Sec.  516.2(e)           Modified.
Sec.  516.220(c)         516.2(c)(4)              Modified.
Sec.  516.230                                     Added.
Sec.  516.240(a)         Sec.  516.2(c)(4)-(5)    Modified.
Sec.  516.240(b)         Sec.  516.2(c)(5)        Modified and Added.
Sec.  516.250                                     Added.
Sec.  516.260            Sec.  516.2(c)(7)        Modified and Added.
Sec.  516.270(a)         Sec.  516.2(d)(1)        Modified.
Sec.  561.270(b)         Sec.  516.2(d)(2)        Modified.
Sec.  516.270(c) (1)     Sec.  516.2(e)           Modified.
Sec.  516.270(c) (2)     Sec.  516.2(f)           Modified.
Sec.  516.280(a)                                  Added.
Sec.  516.280(b)         Sec.  516.2(d) (1)       Modified.
Sec.  516.290                                     Added.
------------------------------------------------------------------------

IV. Plain Language Requirement

    Section 722 of the GLB Act (12 U.S.C.A. 4809) requires federal 
banking agencies to use ``plain language'' in all proposed and final 
rules published after January 1, 2000. We invite your comments on how 
to make this proposed rule easier to understand. For example:
    (1) Have we organized the material to suit your needs?
    (2) Are the requirements in the rule clearly stated?
    (3) Does the rule contain technical language or jargon that isn't 
clear?
    (4) Would a different format (grouping and order of sections, use 
of headings, paragraphing) make the rule easier to understand?
    (5) Would more (but shorter) sections be better?
    (6) What else could we do to make the rule easier to understand?

V. Executive Order 12866

    The Director of OTS has determined that this proposed regulation 
does not constitute a ``significant regulatory action'' for purposes of 
Executive Order 12866.

VI. Regulatory Flexibility Act

    Pursuant to section 605(b) of the Regulatory Flexibility Act, OTS 
certifies that this proposed regulation will not have a significant 
economic impact on a substantial number of small entities. The proposed 
rule generally restates the existing rule in plain language and 
clarifies existing procedures. These changes should make it easier for 
all applicants to file applications and for OTS to expeditiously review 
applications. These changes should, therefore, assist all potential 
applications, including small businesses. While the proposed rule would 
make several minor changes, only two of these changes would impose 
additional burden on applicants. Under the proposed rule, certain 
applicants would be subject to a pre-filing meeting requirement and 
would be required to provide a draft business plan before the meeting. 
OTS believes that the pre-filing meeting is generally consistent with 
existing procedures and imposes only a minimal burden. Moreover, most 
applicants should already have drafted business plans to provide to the 
agency.

VII. Paperwork Reduction Act of 1995

    The information collection requirements in this proposal have 
previously been approved by OMB under the substantive regulations or 
under the application forms; or involve technical changes that do not 
affect the overall burden of compliance. To the extent that this 
regulation imposes new burden, OTS has filed applications to update the 
information collection requirements in the underlying forms. These have 
been submitted under 1550-0005, 1550-00015, and 1550-0037.

VIII. 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. The proposed rule generally 
restates the existing application processing procedures in plain 
language and clarifies existing procedures. These changes should make 
it easier for all applicants to file applications and for OTS to review 
applications. While the proposed rule would make several minor changes, 
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 proposed 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 517

    Government contracts, Individuals with disabilities, Minority 
businesses, Women.

12 CFR Part 543

    Reporting and recordkeeping requirements, Savings associations.

12 CFR Part 544

    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 550

    Savings associations, Trusts and trustees.

12 CFR Part 552

    Reporting and recordkeeping requirements, Savings associations, 
Securities.

12 CFR Part 555

    Accounting, Consumer protection, Credit, Electronic funds 
transfers, Investments, Reporting and recordkeeping requirements, 
Savings associations.

12 CFR Part 559

    Reporting and recordkeeping requirements, Savings associations, 
Subsidiaries.

12 CFR Part 560

    Consumer protection, Investments, Manufactured homes, Mortgages, 
Reporting and recordkeeping requirements, Savings associations, 
Securities.

12 CFR Part 562

    Accounting, Reporting and recordkeeping requirements, Savings 
associations.

12 CFR Part 563

    Accounting, Advertising, Crime, Currency, Investments, Reporting 
and recordkeeping requirements, Savings associations, Securities, 
Surety bonds.

[[Page 66126]]

12 CFR Part 563b

    Reporting and recordkeeping requirements, Savings associations, 
Securities.

12 CFR Part 563f

    Antitrust, Holding companies, Reporting and recordkeeping 
requirements, Savings associations.

12 CFR Part 565

    Administrative practice and procedure, Capital, Savings 
associations.

12 CFR Part 567

    Capital, Savings associations.

12 CFR Part 574

    Administrative practice and procedure, Holding companies, Reporting 
and recordkeeping requirements, Savings associations, Securities.

12 CFR Part 575

    Administrative practice and procedure, Capital, Holding companies 
Reporting and recordkeeping requirements, Savings associations, 
Securities.

12 CFR Part 584

    Administrative practice and procedure, Holding companies, Reporting 
and recordkeeping requirements, Savings associations, Securities.

    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--APPLICATION PROCESSING GUIDELINES AND PROCEDURES

    1. The authority citation for part 516 continues to read as 
follows:

    Authority: 5 U.S.C. 552, 559; 12 U.S.C. 1462a, 1463, 1464, 2901 
et seq.


Secs. 516.1, 516.2, 516.3  [Removed]

    2. Subpart A of part 516 (Secs. 516.1, 516.2, 516.3) is removed.


Secs. 516.1, 516.5, 516.10  [Added]

Subpart A [Added]

    3. Sections 516.1, 516.5, and 516.10, and subpart A, consisting of 
Secs. 516.15 through 516.40, are added to read as follows:

Sec.
516.1   What does this part do?
516.5   Do the same procedures apply to all applications under this 
part?
516.10  How does OTS compute time periods under this part?
Subpart A--Pre-Filing and Filing Procedures

Pre-Filing Procedures

516.15   Must I meet with OTS before I file my application?
516.20  What information must I provide to OTS before the pre-filing 
meeting?

Filing Procedures

516.25  What type of application must I file?
516.30  What information must I provide with my application?
516.35   May I keep portions of my application confidential?
516.40   Where do I file my application?
516.45  What is the filing date of my application?


516.1  What does this part do?

    (a) This part explains OTS procedures for processing applications, 
notices, or filings (applications). Except as provided in paragraph (b) 
of this section, subparts A and E of this part apply whenever an OTS 
regulation requires any person (you) to file an application with OTS. 
Subparts B, C, and D, however, only apply when an OTS regulation 
incorporates the procedures in the subpart or where otherwise required 
by OTS.
    (b) This part does not apply to any of the following:
    (1) An application related to a transaction under section 13(c) or 
(k) of the Federal Deposit Insurance Act, 12 U.S.C. 1823(c) or (k).
    (2) A request for reconsideration, modification, or appeal of a 
final OTS action.
    (3) A request related to litigation, an enforcement proceeding, a 
supervisory directive or supervisory agreement. Such requests include a 
request seeking approval under, modification of, or termination of an 
order issued under part 508 or 509 of this chapter, a supervisory 
agreement, a supervisory directive, a consent merger agreement or a 
document negotiated in settlement of an enforcement matter or other 
litigation, unless an applicable OTS regulation specifically requires 
an application under this part.
    (4) An application filed under an OTS regulation that prescribes 
other application processing procedures and time frames for the 
approval of applications.
    (c) If an OTS regulation prescribes some application processing 
procedures, or time frames, OTS will apply this part to the extent 
necessary to process the application. For example, if an OTS regulation 
does not specify time periods for the processing of an application, the 
time periods in this part apply.


Sec. 516.5  Do the same procedures apply to all applications under this 
part?

    OTS processes applications under this part using two procedures, 
expedited treatment and standard treatment. To determine which 
treatment applies, you may use the following chart:

------------------------------------------------------------------------
                                                   Then OTS will process
                      If--                           your application
                                                          under--
------------------------------------------------------------------------
(a) The applicable regulation does not            Standard treatment.
 specifically state that expedited treatment is
 available.
------------------------------------------------------------------------
(b) You are not a savings association...........  Standard treatment.
------------------------------------------------------------------------
(c) OTS or another federal banking regulator      Standard treatment.
 assigned you a composite rating of 3, 4, or 5.
 The composite rating is the composite numeric
 rating that OTS or the other federal banking
 regulator assigned to you under the Uniform
 Financial Institutions Rating System \1\ or
 under a comparable rating system. The composite
 rating refers to the rating assigned and
 provided to you, in writing, as a result of the
 most recent examination.
------------------------------------------------------------------------
(d) OTS or another federal banking regulator      Standard treatment.
 assigned you a Community Reinvestment Act (CRA)
 rating of Needs to Improve or Substantial
 Noncompliance. The CRA rating is the Community
 Reinvestment Act performance rating that OTS or
 the other federal banking regulator assigned
 and provided to you, in writing, as a result of
 the most recent compliance examination. See,
 for example, Sec.  563e.28 of this chapter.
------------------------------------------------------------------------

[[Page 66127]]

 
(e) OTS or another federal banking regulator      Standard treatment.
 assigned you a compliance rating of 3, 4, or 5.
 The compliance rating is the numeric rating
 that OTS or the other federal banking regulator
 assigned to you under OTS compliance rating
 system, or a comparable rating system used by
 the other federal banking regulator. The
 compliance rating refers to the rating assigned
 and provided to you, in writing, as a result of
 the most recent compliance examination.
------------------------------------------------------------------------
(f) You fail any one of your capital              Standard treatment.
 requirements under part 567 of this chapter.
------------------------------------------------------------------------
(g) OTS has notified you that you are an          Standard treatment.
 association in troubled condition.
------------------------------------------------------------------------
(h) Neither OTS nor any other federal banking     Standard treatment.
 regulator has assigned you a composite rating,
 a CRA rating or a compliance rating.
------------------------------------------------------------------------
(i) You do not meet any of the criteria listed    Expedited treatment.
 in paragraphs (a) through (h) of this section.
------------------------------------------------------------------------
\1\ A savings association may obtain a copy of its composite rating from
  the appropriate Regional Office.

Sec. 516.10  How does OTS compute time periods under this part?

    In computing time periods under this part, OTS does not include the 
day of the act or event that commences the time period. When the last 
day of a time period is a Saturday, Sunday, or Federal holiday, the 
time period runs until the end of the next day that is not a Saturday, 
Sunday, or Federal holiday.

Subpart A--Pre-Filing and Filing Procedures

Pre-Filing Procedures


Sec. 516.15  Must I meet with OTS before I file my application?

    (a) Meeting requirement. (1) You must meet with OTS at least 30 
calendar days before you may file:
    (i) An application for permission to organize a de novo federal 
savings association;
    (ii) An application to convert an existing financial institution 
(other than a state-chartered savings association regulated by OTS or a 
state-chartered savings bank that is regulated by the FDIC) or a credit 
union to a federal savings association; or
    (iii) An application to acquire control of a savings association, 
if you are an insurance company, an investment company, a securities 
firm, a commodities firm, or a pension fund.
    (2) OTS may require, or the applicant may request, a pre-filing 
meeting for other types of applications or applicants, if doing so will 
help resolve issues or expedite the process.
    (3) Applications for mutual to stock conversions are subject to the 
pre-filing meeting requirements under 12 CFR part 563b.
    (b) Scheduling the pre-filing meeting. If you are required to meet 
with OTS under paragraph (a) of this section, you must contact the 
appropriate Regional Office to request the pre-filing meeting.


Sec. 516.20  What information must I provide to OTS before the pre-
filing meeting?

    (a) Draft business plan. If you are required to meet with OTS under 
Sec. 516.15, you must provide a draft business plan for the savings 
association to OTS at least seven calendar days before the pre-filing 
meeting.
    (b) Contents of plan. At a minimum, your draft business plan 
should:
    (1) Clearly and completely describe the savings association's 
projected operations and activities;
    (2) Describe the risks associated with the transaction and the 
impact of this transaction on any existing activities and operations of 
the savings association, including financial projections for a minimum 
of three years;
    (3) Identify all proposed directors and senior executive officers 
(as defined in Sec. 563.555 of this chapter) of the savings association 
and demonstrate that these individuals have the expertise to prudently 
manage the activities and operations described in the savings 
association's draft business plan; and
    (4) Demonstrate how applicable requirements regarding serving the 
credit and lending needs in the market areas served by the savings 
association will be met.
    (c) Additional information. OTS may require you to provide 
additional relevant information before the pre-filing meeting.

Filing Procedures


Sec. 516.25  What type of application must I file?

    (a) Expedited treatment. If you are eligible for expedited 
treatment under Sec. 516.5, you may file your application in the form 
of a notice that includes all information required by the applicable 
substantive regulation. If OTS has designated a form for your notice, 
you must file that form. Your notice is an application for the purposes 
of all statutory and regulatory references to ``applications.''
    (a) Standard treatment. If you are subject to standard treatment 
under Sec. 516.5, you must file your application following all 
applicable substantive regulations and guidelines governing the filing 
of applications. If OTS has a designated form for your application, you 
must file that form.
    (b) Waiver requests. If you want OTS to waive a requirement that 
you provide certain information with the notice or application, you 
must include a written waiver request:
    (1) Describing the requirement to be waived; and
    (2) Explaining why the information is not needed to enable OTS to 
evaluate your notice or application under applicable standards.


Sec. 516.30  What information must I provide with my application?

    (a) Required information. You may obtain information about required 
certifications, other regulations and guidelines affecting particular 
notices and applications, appropriate forms, and instructions from any 
OTS Regional Office. You may also obtain forms and instructions on 
OTS's web page at www.ots.treas.gov.
    (b) Captions and exhibits. You must caption the original 
application and required copies with the type of filing, and must 
include all exhibits and other pertinent documents with the original 
application and all required copies. You are not required to include 
original signatures on copies if you include a copy of the signed 
signature page or the copy otherwise indicates that the original was 
signed.


Sec. 516.35  May I keep portions of my application confidential?

    (a) Confidentiality. OTS makes submissions under this part 
available to the public, but may keep portions of

[[Page 66128]]

your application confidential based on the rules in this section.
    (b) Confidentiality request. (1) You may request OTS to keep 
portions of your application confidential. You must submit your request 
in writing with your application and must explain in detail how your 
request is consistent with the standards under the Freedom of 
Information Act (5 U.S.C. 552) and part 505 of this chapter. For 
example, you should explain how you will be substantially harmed by 
pubic disclosure of the information. You must separately bind and mark 
the portions of the application you consider confidential and the 
portions you consider non-confidential.
    (2) OTS will not treat as confidential the portion of your 
application describing how you plan to meet your Community Reinvestment 
Act (CRA) objectives. OTS will make information in your CRA plan, 
including any information incorporated by reference from other parts of 
your application, available to the public upon request.
    (c) OTS determination on confidentiality. OTS will determine 
whether information that you designate as confidential must be made 
available to the public under the Freedom of Information Act (5 U.S.C. 
552) and part 505 of this chapter. OTS will advise you before it makes 
information you designate as confidential available to the public.
    (d) OTS public statement. If OTS issues a public statement with its 
decision on an application, it may comment on confidential submissions 
in the public statement without notifying you.


Sec. 516.40  Where do I file my application?

    (a) Regional Office. (1) You must file the original application and 
the number of copies indicated on the applicable form with, and to the 
attention of, the applications filing division of the appropriate OTS 
Regional Office. If the form does not indicate the number of copies you 
must file or if OTS has not prescribed a form for your application, you 
must file the original application and two copies.
    (2) The address and the states served for each Regional Office are:

----------------------------------------------------------------------------------------------------------------
                Region                             Office address                       States served
----------------------------------------------------------------------------------------------------------------
Northeast.............................  Office of Thrift Supervision, 10     Connecticut, Delaware, Maine,
                                         Exchange Place, 18th Floor, Jersey   Massachusetts, New Hampshire, New
                                         City, New Jersey 07303.              Jersey, New York, Pennsylvania,
                                                                              Rhode Island, Vermont, West
                                                                              Virginia.
Southeast.............................  Office of Thrift Supervision, 1475   Alabama, Florida, Georgia,
                                         Peachtree Street, N.E., Atlanta,     Maryland, North Carolina, South
                                         Georgia 30309.                       Carolina, Virginia, District of
                                                                              Columbia, Puerto Rico, Virgin
                                                                              Islands.
Central...............................  Office of Thrift Supervision, 200    Illinois, Indiana, Kentucky,
                                         West Madison Street, Suite 1300,     Michigan, Ohio, Tennessee,
                                         Chicago, Illinois 60606.             Wisconsin.
Midwest...............................  Office of Thrift Supervision, 122    Arkansas, Colorado, Iowa, Kansas,
                                         W. John Carpenter Freeway, Suite     Louisiana, Minnesota, Missouri,
                                         600, Irving, Texas 75261-9027.       Mississippi, North Dakota,
                                                                              Nebraska, New Mexico, Oklahoma,
                                                                              South Dakota, Texas.
West..................................  Office of Thrift Supervision,        Alaska, Arizona, California,
                                         Pacific Telesis Tower, 1             Hawaii, Idaho, Montana, Nevada,
                                         Montgomery Street, San Francisco,    Oregon, Utah, Washington, Wyoming,
                                         California 94104-4533.               Guam, Northern Mariana Islands.
                                        Mail to: P.O. Box 7165, San
                                         Francisco, California 94120-7165.
----------------------------------------------------------------------------------------------------------------

    (b) Additional filings with OTS Headquarters. (1) In addition to 
filing in the Regional Office, if your application involves a 
significant issue of law or policy or if an applicable regulation or 
form directs you to file with OTS Headquarters, you must also file 
copies of your application with the Applications Filing Room at OTS 
headquarters, 1700 G Street NW, Washington, DC 20552. You must file the 
number of copies indicated on the applicable form. If the form does not 
indicate the number of copies you must file or if OTS has not 
prescribed a form for your application, you must file three copies.
    (2) (i) Significant issues of law or policy are described in 
delegations of authority from OTS Headquarters to the Regional Offices. 
You may obtain these delegations on the OTS website at 
www.ots.treas.gov or by contacting a Regional Office.
    (ii) OTS reserves the right to identify significant issues of law 
or policy in a particular application. OTS will advise you, in writing, 
if it makes this determination.


Sec. 516.45  What is the filing date of my application?

    (a) Your application's filing date is the date that you complete 
all of the following requirements.
    (1) You comply with the pre-filing meeting requirement at 
Sec. 516.15, including the submission of a business plan.
    (2) You file your application and all required copies with OTS, as 
described under Sec. 516.40.
    (i) If you are required to file with a Regional Office and with OTS 
Headquarters, you have not filed with OTS until you file with both 
offices.
    (ii) You have not filed with a Regional Office or OTS Headquarters 
until you file the application and the required number of copies with 
that office.
    (iii) If you file after the close of business established by a 
Regional Office or OTS Headquarters, you have filed with that office on 
the next business day.
    (3) You pay the applicable fee. You have not paid the fee until you 
submit the fee to the appropriate Regional Office, or OTS waives the 
fee. You may pay by check, money order, cashier's check or wire 
transfer payable to OTS.
    (b) OTS may notify you that it has adjusted your application filing 
date if you fail to meet any applicable publication requirements.
    (c) If, after you properly file your application with the Regional 
Office, OTS determines that a significant issue of law or policy exists 
under Sec. 516.40(b)(2)(ii), the filing date of your application is the 
day you filed with the Regional Office. The 30-day review period under 
Secs. 516.200 or 516.210 of this part will restart in its entirety when 
the Regional Office forwards the appropriate number of copies of your 
application to OTS Headquarters.
    4. Section 516.55 is added to read as follows:


Sec. 516.55  What information must I include in my public notice?

    Your public notice must include the following:

[[Page 66129]]

    (a) Your name and address.
    (b) The type of application.
    (c) The name of the depository institution(s) that is the subject 
matter of the application.
    (d) A statement indicating that the public may submit comments to 
the appropriate OTS office(s).
    (e) The address of the appropriate OTS offices where the public may 
submit comments.
    (f) The date that the public comment period closes.
    (g) A statement indicating that the nonconfidential portions of the 
application are on file in the Regional Office, and are available for 
public inspection during regular business hours.
    (h) Any other information that OTS requires you to publish. You may 
find the format for various publication notices in the appendix to OTS 
application processing handbook.
    5. Section 516.110 is amended by removing the phrase ``(you)''.
    6. Section 516.120 is revised to read as follows:


Sec. 516.120  What information should a comment include?

    (a) A comment should recite relevant facts, including any 
demographic, economic, or financial data, supporting the commenter's 
position. A comment opposing an application should also:
    (1) Address at least one of the reasons why OTS may deny the 
application under the relevant regulations;
    (2) Recite any relevant facts and supporting data addressing these 
reasons; and;
    (3) Address how the approval of the application could harm the 
commenter or any community.
    (b) If a commenter wishes to request an informal meeting under 
Sec. 516.170, the commenter must file a request with the comment. The 
commenter 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.
    7. Section 516.130 is revised to read as follows:


Sec. 516.130  Where are comments filed?

    A commenter must file with the appropriate OTS Regional Office and, 
where an application involves a significant issue of law or policy 
under Sec. 516.40(b), with OTS headquarters. The commenter must 
simultaneously send a copy of the comment to the applicant.
    8. Section 516.140 is revised to read as follows:


Sec. 516.140  How long is the comment period?

    (a) General. Except as provided in paragraph (b) of this section, a 
commenter must file a written comment with OTS within 25 calendar days 
after the application is filed with OTS.
    (b) Late-filed comments. OTS will consider a late-filed comment if:
    (1) Within the comment period, the commenter demonstrates to OTS 
good cause why the commenter could not submit a timely comment; and
    (2) OTS concludes that the comment addresses a significant 
regulatory concern and will assist in the disposition of the 
application.
    9. Section 516.150 is revised to read as follows:


Sec. 516.150  Will there be additional opportunities to discuss the 
application?

    OTS may provide the commenter with additional opportunities to 
discuss the application in informal or formal meetings under subpart D 
of this part.
    10. Section 515.185 is added to read as follows:


Sec. 516.185  Will OTS approve or disapprove an application at a 
meeting?

    OTS will not approve or deny an application at a formal or informal 
meeting under this subpart.
    11. Section 516.190 is revised to read as follows:


Sec. 516.190  Will a meeting affect application processing time frames?

    If 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 subpart E of this part. The time period will resume when 
OTS determines that a record has been developed that sufficiently 
supports a determination on the issues raised in the comments.
    12. Subpart E, consisting of Secs. 516.200 through 516.280, is 
added to read as follows:

Subpart E--OTS Review

Expedited Treatment

Sec.
516.200   If I file a notice under expedited treatment, when may I 
engage in the proposed activities?

Standard Treatment

516.210   What will OTS do after I file my application?
516.220   If OTS requests additional information to complete my 
application, how will it process my application?
516.230   Will OTS conduct an eligibility examination?
516.240   What may OTS require me to do after my application is 
deemed complete?
516.250   Will OTS require me to publish a new public notice?
516.260   May OTS suspend processing of my application?
516.270   How long is the OTS review period?
516.280   How will I know if my application has been approved?
516.290   What will happen if OTS does not approve or disapprove my 
application within two calendar years?

Subpart E--OTS Review

Expedited Treatment


Sec. 516.200  If I file a notice under expedited treatment, when may I 
engage in the proposed activities?

    If you are eligible for expedited treatment and you have 
appropriately filed your notice with OTS, you may engage in the 
proposed activities upon the expiration of 30 days after the filing 
date of your notice, unless OTS takes one of the following actions 
before the expiration of that time period:
    (a) OTS notifies you in writing that you must file additional 
information supplementing your notice. If you are required to file 
additional information, you may engage in the proposed activities upon 
the expiration of 30 calendar days after the date you file the 
additional information, unless OTS takes one of the actions described 
in paragraphs (b) through (d) of this section before the expiration of 
that time period;
    (b) OTS notifies you in writing that your notice is subject to the 
standard treatment under this subpart. OTS will subject your notice to 
the standard treatment if it raises a supervisory concern, raises a 
significant issue of law or policy, or requires significant additional 
information;
    (c) OTS notifies you in writing that it is suspending the 
applicable time frames under Sec. 516.190; or
    (d) OTS notifies you that it disapproves your notice.

Standard Treatment


Sec. 516.210  What will OTS do after I file my application?

    (a) OTS action. Within 30 calendar days after the filing date of 
your application, OTS will take one of the following actions:

[[Page 66130]]



------------------------------------------------------------------------
              If OTS--                              Then--
------------------------------------------------------------------------
(1) Notifies you, in writing, that   The applicable review period will
 your application is complete.        begin on the date that OTS you, in
                                      deems your application complete.
 (2) Notifies you, in writing, that  You must submit the required
 you must submit additional           additional information under Sec.
 information to complete your         516.220.
 application.
 (3) Notifies you, in writing, that  OTS will not process your
 your application is materially       application.
 deficient.
 (4) Takes no action...............  Your application is deemed
                                      complete. The applicable review
                                      period will begin on the day the
                                      30-day time period expires.
------------------------------------------------------------------------

    (b) Waiver requests. If your application includes a request for 
waiver of an information requirement under Sec. 516.25(b), and OTS has 
not notified you that you must submit additional information under 
paragraph (a)(2) of this section, your request for waiver is granted.


Sec. 516.220  If OTS requests additional information to complete my 
application, how will it process my application?

    (a) You may use the following chart to determine the procedure that 
applies to your submission of additional information under 
Sec. 516.210(a)(1):

----------------------------------------------------------------------------------------------------------------
 If, within 30 calendar days after
    the date of OTS  request for                Then, OTS may--                             And--
     additional  information--
----------------------------------------------------------------------------------------------------------------
 (1) File a response to all          (i) Notify you in writing within 15    The applicable review period will
 information requests.                calendar days after the filing of      begin on the date that OTS deems
                                      your response that your application    your application complete.
                                      is complete.
                                     (ii) Notify you in writing within 15   You must respond to the additional
                                      calendar days after the filing date    information request within the time
                                      of your response that you must         period required by OTS. OTS will
                                      submit additional information          review your response under the
                                      regarding matters derived from or      procedures described in this
                                      prompted by already furnished or any   section.
                                      additional information necessary to
                                      resolve the issues presented in your
                                      application.
                                     (iii) Notify you in writing within 15  OTS will not process your
                                      calendar days after the filing date    application.
                                      of your response that your
                                      application is materially deficient.
                                      (iv) Take no action within 15         Your application is deemed complete.
                                      calendar days after the filing date    The applicable review period will
                                      of your response.                      begin on the day that the 15-day
                                                                             time period expires.
 (2) Request an extension of time    (i) Grant an extension, in writing,    You must fully respond within the
 to file additional information.      specifying the number of days for      extended time period specified by
                                      the extension.                         OTS. OTS will review your response
                                                                             under the procedures described
                                                                             under this section.
                                      (ii) Notify you in writing that your  OTS will not process your
                                      extension request is disapproved.      application further. You may
                                                                             resubmit the application for
                                                                             processing as a new filing under
                                                                             the applicable regulation.
 (3) Fail to respond completely....  (i) Notify you in writing that your     OTS will not process your
                                      application is withdrawn.              application further. You may
                                                                             resubmit the application for
                                                                             processing as a new filing under
                                                                             the applicable regulation.
                                      (ii) Notify you, in writing, that      You must fully respond within the
                                      your response is incomplete and        extended time period specified by
                                      extend the response period,            OTS. OTS will review your response
                                      specifying the number of days for      under the procedures described
                                      the extension.                         under this section.
----------------------------------------------------------------------------------------------------------------

    (b) OTS may extend the 15-day period referenced in paragraph (a)(1) 
of this section by up to 15 calendar days, if OTS requires the 
additional time to review your response. OTS will notify you that it 
has extended the period before the end of the initial 15-day period.
    (c) If your response filed under paragraph (a)(1) of this section 
includes a request for a waiver of an informational requirement, your 
request for a waiver is granted if OTS fails to act on it within 15 
calendar days after the filing of your response, unless OTS extends the 
review period under paragraph (b). If OTS extends the review period 
under paragraph (b), your request is granted if OTS fails to act on it 
by the end of the extended review period.


Sec. 516.230  Will OTS conduct an eligibility examination?

    (a) Eligibility examination. OTS may notify you at any time 
examination. If OTS decides to conduct an eligibility examination, it 
will not deem your application complete until it concludes the 
examination.
    (b) Additional information. OTS may, as a result of the eligibility 
examination, notify you that you must submit additional information to 
complete your application. If so, you must respond to the additional 
information request within the time period required by OTS. OTS will 
review your response under the procedures described in Sec. 516.220.


Sec. 516.240  What may OTS require me to do after my application is 
deemed complete?

    After your application is deemed complete, but before the end of 
the applicable review period,
    (a) OTS may require you to provide additional information if the 
information is necessary to resolve or clarify the issues presented by 
your application.
    (b) OTS may determine that a major issue of law or a change in 
circumstances arose after you filed your application, and that the 
issue or changed circumstances will substantially effect your 
application. If

[[Page 66131]]

OTS identifies such an issue or changed circumstances, it may:
    (1) Notify you, in writing, that your application is now incomplete 
and require you to submit additional information to complete the 
application under the procedures described at Sec. 516.220; and
    (2) Require you to publish a new public notice of your application 
under Sec. 516.250.


Sec. 516.250  Will OTS require me to publish a new public notice?

    (a) If your application was subject to a publication requirement, 
OTS may require you to publish a new public notice of your application 
if:
    (1)You submitted a revision to the application, you submitted new 
or additional information, or major issue of law or a change in 
circumstances arose after the filing of your application; and
    (2) OTS determines that additional public comment on these matters 
is appropriate because of the significance of the new information or 
circumstances.
    (b) OTS will notify you in writing if you must publish a new public 
notice of your revised application.
    (c) If you are required to publish a new public notice of your 
revised application, you must notify OTS after you publish the new 
public notice.


Sec. 516.260  May OTS suspend processing of my application?

    (a) Suspension. OTS may, at any time, indefinitely suspend 
processing of your application if:
    (1) OTS, another governmental entity, or a self-regulatory trade or 
professional organization initiates an investigation, examination, or 
administrative proceeding that is relevant to OTS's evaluation of your 
application;
    (2) You request the suspension or there are other extraordinary 
circumstances that have a significant impact on the processing of your 
application.
    (b) Notice. OTS will promptly notify you, in writing, if it 
suspends your application.


Sec. 516.270  How long is the OTS review period?

    (a) General. The applicable OTS review period is 60 calendar days 
after the date that your application is deemed complete, unless an 
applicable OTS regulation specifies a different review period.
    (b) Multiple applications. If you submit more than one application 
in connection with a proposed action or if two or more applicants 
submit related applications, the applicable review period for all 
applications is the review period for the application with the longest 
review period, subject to statutory review periods.
    (c) Extensions. (1) OTS may extend the review period for up to 30 
calendar days beyond the period described in paragraph (a) or (b) of 
this section. OTS must notify you in writing of the extension and the 
duration of the extension. OTS must issue the written extension before 
the end of the review period.
    (2) OTS may also extend the review period as needed until it acts 
on the application, if the application presents a significant issue of 
law or policy that requires additional time to resolve. OTS must notify 
you in writing of the extension and the general reasons for the 
extension. OTS must issue the written extension before the end of the 
review period, including any extension of that period under paragraph 
(c)(1) of this section. This section applies to applications and 
notices filed under Sec. 575.3(b) and part 574 of this chapter.


Sec. 516.280  How will I know if my application has been approved?

    (a) OTS approval or denial. (1) OTS will approve or deny your 
application before the expiration of the applicable review period, 
including any extensions of the review period.
    (2) OTS will promptly notify you in writing of its decision to 
approve or deny your application.
    (b) No OTS action. If OTS fails to act under paragraph (a)(1) of 
this section, your application is approved.


Sec. 516.290  What will happen if OTS does not approve or disapprove my 
application within two calendar years?

    (a) Withdrawal. If OTS has not approved or denied your pending 
application within two calendar years after the filing date under 
Sec. 516.45, OTS will notify you, in writing, that your application is 
deemed withdrawn unless OTS determines that you are actively pursuing a 
final OTS determination on your application. You are not actively 
pursuing a final OTS determination if you have failed to timely take an 
action required under this part, including filing required additional 
information, or OTS has suspended processing of your application under 
Sec. 516.260 based on circumstances that are, in whole or in part, 
within your control and you have failed to take reasonable steps to 
resolve these circumstances.
    (b) Effective date. This section is effective 90 days after the 
effective date of the final rule.

PART 517--THE MINORITY, WOMEN, AND INDIVIDUALS WITH DISABILITIES 
OUTREACH PROGRAM: CONTRACTING FOR GOODS AND SERVICES

    13. The authority citation for part 517 continues to read as 
follows:

    Authority: 12 U.S.C. 1833(e); 42 U.S.C. 12101 et seq.

    14. Section 517.6 is amended by revising paragraph (b) to read as 
follows:


Sec. 517.6  Certification.

* * * * *
    (b) Self-certify ownership status by filing with the OTS Outreach 
Program Advocate a completed and signed ABELS Registration/
Certification Form, as prescribed by the U.S. Department of Commerce's 
Minority Business Development Agency and available from the Outreach 
Program Advocate at the headquarters address of the OTS listed in 
Sec. 516.40(b) of this chapter; or
* * * * *

PART 543--INCORPORATION, ORGANIZATION, AND CONVERSION OF FEDERAL 
MUTUAL ASSOCIATIONS

    15. The authority citation for part 543 continues to read as 
follows:

    Authority: 12 U.S.C. 1462, 1462a, 1463, 1464, 1467a, 2901 et 
seq.

    16. Section 543.9 is amended by revising paragraph (a) to read as 
follows:


Sec. 543.9  Application for conversion to Federal mutual charter.

    (a)(1) Filing. Any depository institution that proposes to convert 
to a Federal mutual association as provided in Sec. 543.8 must, after 
approval by its board of directors, file an application on forms 
obtained from OTS. The applicant must submit any financial statements 
or other information OTS may require.
    (2) Procedures. An application for conversion filed under this 
section is subject to the procedures for organization of a federal 
mutual association at Sec. 543.2(d) through (f) of this chapter.
* * * * *

PART 544--CHARTER AND BYLAWS

    17. The authority citation for part 544 continues to read as 
follows:

    Authority: 12 U.S.C. 1462, 1462a, 1463, 1464, 1467a, 2901 et 
seq.

    18. Section 544.2 is amended by revising the last sentence of 
paragraph (c) to read as follows:


Sec. 544.2  Charter amendments.

* * * * *

[[Page 66132]]

    (c) * * * Such request for reissuance should be filed with the 
Corporate Secretary at the Washington Headquarters Office at the 
address listed at Sec. 516.40(b) of this chapter and contain signatures 
required under Sec. 544.1 of this part, together with such supporting 
documents as may be needed to demonstrate that the amendments were 
properly adopted.
    19. Section 544.5 is amended by revising paragraph (c)(1)(ii) to 
read as follows:
* * * * *


Sec. 544.5  Federal mutual savings association bylaws.

    (c) * * *
    (1) * * *
    (ii) Applications submitted under paragraph (c)(1)(i) of this 
section are subject to standard treatment processing procedures at part 
516, subparts A and E of this chapter.
* * * * *

PART 545--OPERATIONS

    20. The authority citation for part 545 continues to read as 
follows:

    Authority: 12 U.S.C. 1462a, 1463, 1464, 1828.

    21. Section 545.92 is amended by revising paragraphs (b), (d)(2), 
and the first sentence of paragraph (f) to read as follows:


Sec. 545.92  Branch offices.

* * * * *
    (b) Eligibility. Federal savings associations eligible for 
expedited treatment under Sec. 516.5 of this chapter may establish a 
branch office subject to the procedures in paragraph (f) of this 
section. A Federal savings association subject to standard treatment 
under Sec. 516.5 of this chapter must not establish a branch office 
without prior approval subject to the procedures in paragraph (e) of 
this section.
* * * * *
    (d) * * *
    (2) Submission of application or notice. A Federal savings 
association must comply with Sec. 556.5 of this chapter and must file 
the application required under Sec. 516.25(b) of this chapter or the 
notice required under Sec. 516.25(a) of this chapter within three days 
after the publication of the public notice under paragraph (d)(1) of 
this section.
* * * * *
    (f) Approval of branch notice. A notice filed by a Federal savings 
association that qualifies for expedited treatment must be deemed to be 
approved 30 days after its filing with OTS, unless OTS takes one of the 
actions described at Sec. 516.200 of this chapter. OTS will apply the 
review standards set forth in paragraph (e)(1) of this section; or OTS 
determines to process the filing as an application under 
Sec. 516.200(b) of this chapter. * * *
* * * * *

PART 550--FIDUCIARY POWERS OF SAVINGS ASSOCIATIONS

    22. The authority citation for part 550 continues to read as 
follows:

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

    23. Section 550.80 is revised to read as follows:


Sec. 550.80  How do I obtain OTS approval?

    You must file an application under part 516, subparts A and E of 
this chapter.
    24. Section 550.260 is amended by revising the first sentence of 
paragraph (b)(2) to read as follows:


Sec. 550.260  How may I invest funds of a fiduciary account?

* * * * *
    (b) * * *
    (2) If you must file a document with the Comptroller of the 
Currency under 12 CFR 9.18, you must also file that document with the 
appropriate Regional Office at Sec. 516.40(a) of this chapter. * * *
* * * * *
    25. Section 550.530 is amended by revising the last sentence to 
read as follows:


Sec. 550.530  How do I surrender fiduciary powers?

    * * * You must file the resolution with the appropriate Regional 
Office at the address listed in Sec. 516.40(a) of this chapter.

PART 552--INCORPORATION, ORGANIZATION, AND CONVERSION OF FEDERAL 
STOCK ASSOCIATIONS

    26. The authority citation for part 552 continues to read as 
follows:

    Authority: 12 U.S.C. 1462, 1462a, 1463, 1464, 1467a.

    27. Section 552.2-6 is amended by adding the following sentence to 
the end of the section to read as follows:


Sec. 552.2-6  Conversion from stock form depository institution to 
Federal stock association.

    * * * An application for conversion filed under this section is 
subject to the procedures for organization of a federal stock 
organization at Sec. 552.2-1.
    28. Section 552.4 is amended by revising the last sentence of 
paragraph (d) to read as follows:


Sec. 552.4  Charter amendments.

* * * * *
    (d) * * * Such requests for reissuance should be filed with the 
Corporate Secretary at Washington Headquarters Office at the address 
listed in Sec. 516.40(b) of this chapter, and contain signatures 
required under Sec. 552.3 of this part, together with such supporting 
documents as needed to demonstrate that the amendments were properly 
adopted.
    29. Section 552.5 is amended by revising paragraph (b)(1)(ii) to 
read as follows:


Sec. 552.5  Bylaws.

* * * * *
    (b) * * *
    (1) * * *
    (ii) Applications submitted under paragraph (b)(1)(i) of this 
section are subject to standard treatment processing procedures at part 
516, subparts A and E of this chapter.
* * * * *

PART 555--ELECTRONIC OPERATIONS

    30. The authority citation for part 555 continues to read as 
follows:

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

    31. In Sec. 555.310, the first sentence of the introductory text of 
paragraph (a) is revised to read as follows:


Sec. 555.310  How do I notify OTS?

    (a) Notice requirement. You must file a written notice with the 
appropriate Regional Office listed at Sec. 516.40(a) of this chapter at 
least 30 days before you establish a transactional website. * * *
* * * * *

PART 559--SUBORDINATE ORGANIZATIONS

    32. The authority citation for part 559 continues to read as 
follows:

    Authority: 12 U.S.C. 1462, 1462a, 1463, 1464, 1828.


Sec. 559.3  [Amended]

    33. Section 559.3 is amended by:
    a. Removing, in paragraph (e)(2)(i), the phrases ``Sec. 516.3(a) of 
this chapter'' and ``Sec. 516.1 of this chapter'', and by adding in 
lieu thereof the phrases ``Sec. 516.5 of this chapter'' and ``standard 
treatment processing procedures at part 516, subparts A and E of this 
chapter''; and
    b. Removing, in paragraph (e)(2)(ii), the phrases ``Sec. 516.3(b) 
of this chapter''

[[Page 66133]]

and ``Sec. 516.1 of this chapter'', and by adding in lieu thereof the 
phrases ``Sec. 516.5 of this chapter'' and, ``standard treatment 
processing procedures at part 516, subparts A and E of this chapter'' 
respectively.
    34. Section 559.4 is amended by revising the third sentence of the 
introductory text to read as follows:


Sec. 559.4  What activities are preapproved for service corporations?

    * * * You should read these two sections together to determine 
whether you must file a notice with OTS under Sec. 559.11 of this part, 
or whether you must file an application subject to standard treatment 
processing procedures at part 516, subparts A and E of this chapter to 
request prior written OTS approval in order for your service 
corporation to engage in a particular activity. * * *
* * * * *
    35. Section 559.11 is amended by revising the first sentence and 
the last sentence to read as follows:


Sec. 559.11  What notices are required to establish or acquire a new 
subsidiary or engage in new activities through an existing subsidiary?

    When required by section 18(m) of the Federal Deposit Insurance 
Act, a savings association (``you'') must file a notice (``Notice'') 
under part 516, subpart A of this chapter at least 30 days before 
establishing or acquiring a subsidiary or engaging in new activities in 
a subsidiary. * * * If OTS notifies you within 30 days that the Notice 
presents supervisory concerns, or raises significant issues of law or 
policy, you must apply for and receive OTS's prior written approval 
under the standard treatment processing procedures at part 516, subpart 
A and E of this chapter before establishing or acquiring the subsidiary 
or engaging in new activities in the subsidiary.
    36. Section 559.13 is amended by revising paragraph (b) to read as 
follows:


Sec. 559.13  How may a savings association exercise its salvage power 
in connection with a service corporation or lower-tier entities?

* * * * *
    (b) If OTS notifies you within 30 days that the Notice presents 
supervisory concerns, or raises significant issues of law or policy, 
you must apply for and receive OTS's prior written approval under the 
standard treatment processing procedures at part 516, subparts A and E 
of this chapter before making a salvage investment.
* * * * *

PART 560--LENDING AND INVESTMENT

    37. The authority citation for part 560 continues to read as 
follows:

    Authority: 12 U.S.C. 1462, 1462a, 1463, 1464, 1467a, 1701j-3, 
1828, 3803, 3806; 42 U.S.C. 4106.


Sec. 560.30  [Amended]

    38. Section 560.30, footnote 3 is amended by removing the phrase 
``Sec. 516.1(a) of this chapter'', and by adding in lieu thereof the 
phrase ``Sec. 516.40(b) of this chapter''.
    39. Section 560.32 is amended by revising the second sentence of 
paragraph (c) to read as follows:


Sec. 560.32  Pass-through investments.

* * * * *
    (c) * * * If within that 30-day period OTS notifies you that an 
investment presents supervisory, legal, or safety and soundness 
concerns, you must apply for and receive OTS prior written approval 
under the standard treatment processing procedures at part 516, 
subparts A and E of this chapter before making the investment. * * *
    40. Section 560.35 is amended by revising paragraph (d)(3) to read 
as follows:


Sec. 560.35  Adjustments to home loans.

* * * * *
    (d) * * *
    (3) A Federal savings association may use an index not satisfying 
the requirements of paragraph (d)(2) of this section 30 days after 
filing a notice unless, within that 30-day period, OTS has notified the 
association that the notice presents supervisory concerns or raises 
significant issues of law or policy. If OTS notifies the association of 
such concerns or issues, the Federal savings association may not use 
such an index unless it applies for and receives OTS's prior written 
approval under the standard treatment processing procedures at part 
516, subparts A and E of this chapter.
    41. Section 560.93 is amended by revising the second and third 
sentences of paragraph (d)(3)(iii) to read as follows:


Sec. 560.93  Lending limitations.

* * * * *
    (d) * * *
    (3) * * *
    (iii) * * * A savings association that meets the requirements of 
paragraphs (d)(3)(i), (ii), (iv) and (v) of this section and that meets 
the requirements for ``expedited treatment'' under Sec. 516.5 of this 
chapter may use the higher limit set forth under this paragraph (d)(3) 
if the savings association has filed a notice with OTS that it intends 
to use the higher limit at least 30 days prior to the proposed use. A 
savings association that meets the requirements of paragraphs 
(d)(3)(i), (ii), (iv), and (v) of this section and that meets the 
requirements for ``standard treatment'' under Sec. 516.5 of this 
chapter may use the higher limit set forth under this paragraph (d)(3) 
if the savings association has filed an application with OTS and OTS 
has approved the use the higher limit;
* * * * *
    42. Section 560.160 is amended by revising paragraph (a)(1) to read 
as follows:


Sec. 560.160  Asset classification.

    (a)(1) Each savings association must evaluate and classify its 
assets on a regular basis in a manner consistent with, or reconcilable 
to, the asset classification system used by OTS in its Thrift 
Activities Handbook (Available at the address of Washington 
Headquarters Office at Sec. 516.40(b) of this chapter).
* * * * *

PART 562--REGULATORY REPORTING STANDARDS

    43. The authority citation for part 562 continues to read as 
follows:

    Authority: 12 U.S.C. 1463.

    44. Section 562.4 is amended by revising paragraph (b)(1) to read 
as follows:


Sec. 562.4  Audit of savings associations and savings association 
holding companies.

* * * * *
    (b) * * *
    (1) If a savings association has received a composite rating of 3, 
4 or 5, as defined at Sec. 516.5(c) of this chapter; or
* * * * *

PART 563--OPERATIONS

    45. 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.

    46. Section 563.22 is amended by revising paragraphs (b)(1)(ii), 
(b)(2), (d)(4), (f)(1), and (h)(2) to read as follows:


Sec. 563.22  Merger, consolidation, purchase or sale of assets, or 
assumption of liabilities.

* * * * *
    (b)(1) * * *
    (ii) In the case of a savings association that meets the conditions 
for expedited treatment under Sec. 516.5 of this chapter,

[[Page 66134]]

convert, directly or indirectly, to a national or state bank.
    (2) A savings association that does not meet the conditions for 
expedited treatment under Sec. 516.5 of this chapter may not, directly 
or indirectly, convert to a national or state bank without prior 
application to and approval of OTS, as provided in paragraph (h)(2)(ii) 
of this section.
* * * * *
    (d) * * *
    (4) Applications filed under section 5(d)(3) of the Federal Deposit 
Insurance Act (12 U.S.C. 1815(d)(3)) and paragraph (a) of this section 
must be processed in accordance with the time frames set forth in 
Secs. 516.220 through 516.290 of this chapter, provided that the period 
for review may be extended only if the Office determines that the 
applicant has failed to furnish all requested information or that the 
information submitted is substantially inaccurate, in which case the 
review period may be extended for up to 30 days.
* * * * *
    (f) * * *
    (1) The acquiring savings association does not meet the criteria 
for expedited treatment under Sec. 516.5 of this chapter;
* * * * *
    (h) * * *
    (2) Other transfer transactions--(i) Expedited treatment. A notice 
in conformity with Sec. 516.25(a) of this chapter may be submitted to 
OTS under Sec. 516.40 of this chapter for any transaction under 
paragraph (c) of this section, provided all constituent savings 
associations meet the conditions for expedited treatment under 
Sec. 516.5 of this chapter. Notices submitted under this paragraph must 
be deemed approved automatically by OTS 30 days after receipt, unless 
OTS advises the applicant in writing prior to the expiration of such 
period that the proposed transaction may not be consummated without 
OTS's approval of an application under paragraphs (h)(2)(ii) or 
(h)(2)(iii) of this section.
    (ii) Standard treatment. An application in conformity with 
Sec. 516.25(b) of this chapter and paragraph (d) of this section must 
be submitted to OTS under Sec. 516.40 by each savings association 
participating in a transaction under paragraph (b)(2) or (c) of this 
section, where any constituent savings association does not meet the 
conditions for expedited treatment under Sec. 516.5 of this chapter, 
except as provided in paragraph (h)(2)(iii) of this section. 
Applications under this paragraph must be processed in accordance with 
the procedures in part 516, subparts A and E of this chapter.
    (iii) Standard treatment for transactions under section 5(d)(3) of 
the Federal Deposit Insurance Act. An application in conformity with 
Sec. 516.25(b) of this chapter and paragraph (d) of this section must 
be submitted to OTS under Sec. 516.40 by each savings association which 
will survive any transaction under both section 5(d)(3) of the Federal 
Deposit Insurance Act (12 U.S.C. 1815(d)(3)) and paragraph (c) of this 
section, where any constituent savings association does not meet the 
conditions for expedited treatment under Sec. 516.5 of this chapter. 
Applications under this paragraph must be processed in accordance with 
the procedures in part 516, subparts A and E of this chapter, provided 
that the period for review may be extended only if OTS determines that 
the applicant has failed to furnish all requested information or that 
the information submitted is substantially inaccurate, in which case 
the review period may be extended for up to 30 days.
    47. Section 563.41 is amended by revising paragraph (e)(2)(ii)(A) 
to read as follows:


Sec. 563.41  Loans and other transactions with affiliates and 
subsidiaries.

* * * * *
    (e) * * *
    (2) * * *
    (ii) * * *
    (A) Has a composite rating of 4 or 5, as defined in Sec. 516.5(c) 
of this chapter;
* * * * *
    48. Section 563.81 is amended by revising the first sentence in 
paragraphs (a)(1), (a)(2), and (c) to read as follows:


Sec. 563.81  Issuance of subordinated debt securities and mandatorily 
redeemable preferred stock.

    (a) General--(1) Savings associations receiving standard treatment. 
No savings association subject to standard treatment of its 
applications under Sec. 516.5 of this chapter may issue subordinated 
debt securities or mandatorily redeemable preferred stock includable in 
regulatory capital pursuant to this section or amend the terms of such 
securities unless it has obtained the written approval of OTS * * *
    (2) Savings associations receiving expedited treatment. No savings 
association eligible for expedited treatment under Sec. 516.5 of this 
chapter may issue subordinated debt securities or mandatorily 
redeemable preferred stock pursuant to this section for inclusion in 
regulatory capital or amend the terms of such securities unless it 
provides notice to OTS, and such notice contains a statement of the 
association's intent to include such securities in regulatory capital. 
* * *
* * * * *
    (c) Form of application or notice; supporting information. 
Applications subject to standard treatment or notices eligible for 
expedited treatment under Sec. 516.5 of this chapter must be in the 
form prescribed by OTS. * * *
* * * * *
    49. Section 563.143 is amended by revising the heading and the 
first sentence of paragraph (a)(1) to read as follows:


Sec. 563.143  Must I file with OTS?

    (a) * * *
    (1) You are not eligible for expedited treatment under Sec. 516.5 
of this chapter. * * *
* * * * *
    50. Section 563.171 is amended by revising paragraph (b)(4) to read 
as follows:


Sec. 563.171  Frequency of safety and soundness examination.

* * * * *
    (b) * * *
    (4) At its most recent examination, OTS determined that the savings 
association was in outstanding or good condition, that is, it received 
a composite rating of 1 or 2, as composite rating defined in 
Sec. 516.5(c) of this chapter;
* * * * *
    51. Section 563.180 is amended by revising paragraph (d)(11) to 
read as follows:


Sec. 563.180  Suspicious Activity Reports and other reports and 
statements.

* * * * *
    (d) * * *
    (11) Obtaining SARs. A savings association or service corporation 
may obtain SARs and the instructions from the appropriate OTS Regional 
Office listed in Sec. 516.40(a) of this chapter.
* * * * *
    52. Section 563.183 is amended by revising paragraph (c)(1) to read 
as follows:


Sec. 563.183  Reports of change in chief executive officer or director; 
other reports; form and filing of such reports.

* * * * *
    (c) Form and filing of reports. (1) Unless otherwise specified by 
OTS, a report required by Sec. 563.181 of this part or this 
Sec. 563.183 must comply with Sec. 516.30 and must be submitted to the 
appropriate Regional Office listed in Sec. 516.40(a) of this chapter.
* * * * *

[[Page 66135]]

    53. Section 563.555 is amended by revising paragraph (1) of the 
definition of ``troubled condition'' to read as follows:


Sec. 563.555  What definitions apply to this subpart?

* * * * *
    Troubled condition means:
    (1) A savings association that has a composite rating of 4 or 5, as 
composite rating is defined in Sec. 516.5(c) of this chapter.
* * * * *
    54. Section 563.565 is revised to read as follows:


Sec. 563.565  What procedures govern the filing of my notice?

    The procedures found in part 516, subpart A of this chapter govern 
the filing of your notice under Sec. 563.560.

PART 563b--CONVERSIONS FROM MUTUAL TO STOCK FORM

    55. The authority citation for part 563b continues to read as 
follows:

    Authority: 12 U.S.C. 1462, 1462a, 1463, 1464, 1467a, 2901; 15 
U.S.C. 78c, 78l, 78m, 78n, 78w.


Sec. 563b.27  [Amended]

    56. Section 563b.27 is amended in paragraph (e), footnote 1, by 
removing the phrase ``Sec. 516.1(a) of this chapter'', and by adding in 
lieu thereof ``Sec. 516.40(b) of this chapter''.

PART 563f--MANAGEMENT OFFICIAL INTERLOCKS

    57. The authority citation for part 563f continues to read as 
follows:

    Authority: 12 U.S.C. 3201-3208.

    58. Section 563f.6 is amended by revising the last sentence of 
paragraph (a) to read as follows:


Sec. 563f.6  General exemption.

    (a) * * * A depository organization may apply to OTS for an 
exemption under part 516, subpart E, of this chapter.

PART 565--PROMPT CORRECTIVE ACTION

    59. The authority citation for part 565 continues to read as 
follows:

    Authority: 12 U.S.C. 1831o.


Sec. 565.4  [Amended]

    60. Section 565.4 is amended as follows:
    a. Section 565.4(b)(2)(iii)(B) is amended by removing the phrase 
``as defined in 516.3(c)'' and adding in lieu theereof ``as composite 
rating is defined in Sec. 516.5(c)'' and
    b. Section 565.4(b)(3)(iii)(B) is amended by removing the phrase 
``as defined in Sec. 516.3(c)'' and adding in lieu thereof ``as 
composite rating is defined in Sec. 516.5(c)'' and
    c. Section 565.4(c)(2), footnote 1, is amended by removing the 
phrase ``Sec. 516.1 of this chapter'', and by adding in lieu thereof 
``Sec. 516.40 of this chapter''.

PART 567--CAPITAL

    61. The authority citation for part 567 continues to read as 
follows:

    Authority: 12 U.S.C. 1462, 1462a, 1463, 1464, 1828 (note).

    62. Section 567.3 is amended by revising the third sentence in 
paragraph (d)(2)(i) introductory text, to read as follows:


Sec. 567.3  Individual minimum capital requirements.

* * * * *
    (d) * * *
    (2) * * * (i) * * * Such response must be filed in accordance with 
Secs. 516.30 and 516.40 of this chapter. * * *
* * * * *
    63. Section 567.4 is amended by revising the fifth sentence of 
paragraph (a)(3)(i) to read as follows:


Sec. 567.4  Capital directives.

    (a) * * *
    (3) * * * (i) * * * Such responses must be filed in accordance with 
Secs. 516.30 and 516.40 of this chapter. * * *
* * * * *
    64. Section 567.7 is amended by revising paragraph (f) to read as 
follows:


Sec. 567.7  Interest-rate risk component.

* * * * *
    (f) OTS will provide, upon request, manuals describing the OTS 
Model and guidance at the address set forth in Sec. 516.40(b) of this 
chapter.

PART 574--ACQUISITION OF CONTROL OF SAVINGS ASSOCIATIONS

    65. The authority citation for part 574 continues to read as 
follows:

    Authority: 12 U.S.C. 1467a, 1817, 1831i.

    66. Section 574.4 is amended by revising the second sentence of 
paragraph (f)(2) to read as follows:


Sec. 574.4  Control.

* * * * *
    (f) * * *
    (2) * * * Certifications provided for in this paragraph must be 
filed with OTS in accordance with Secs. 516.30 and 516.40 of this 
chapter.

PART 575--MUTUAL HOLDING COMPANIES

    67. The authority citation for part 575 continues to read as 
follows:

    Authority: 12 U.S.C. 1462, 1462a, 1463, 1464, 1467a, 1828, 2901.

    68. Section 575.3 is amended by revising paragraph (b)(2) 
introductory text to read as follows:


Sec. 575.3  Mutual holding company reorganizations.

* * * * *
    (b) * * *
    (2) Sixty days have passed since OTS received the Reorganization 
Notice and deemed it complete under Sec. 516.210 or Sec. 516.220 of 
this chapter, and OTS has not:
* * * * *
    69. Section 575.13 is amended by revising the third sentence of 
paragraph (a)(1), paragraph (b), the first sentence of paragraph 
(c)(2), and the first and last sentences of paragraph (e), to read as 
follows:


Sec. 575.13  Procedural requirements.

    (a) * * * (1) * * * Proxies and proxy statements must be filed in 
accordance with Sec. 563b.5(e) of this chapter and must be addressed to 
the Business Transactions Division, Chief Counsel's Office, Office of 
Thrift Supervision, at the address set forth in Sec. 516.40(b) of this 
chapter. * * *
* * * * *
    (b) Applications under this part. Except as provided in paragraph 
(c) of this section, any application, notice or certification required 
to be filed with OTS under this part must be filed in accordance with 
part 516, subpart A of this chapter.
    (c) * * *
    (2) Filing instructions. Any Reorganization Notice submitted under 
Sec. 575.3(b) of this part must be filed in accordance with part 516, 
subpart A of this chapter. * * *
* * * * *
    (e) Time-frames. All Reorganization Notices and applications filed 
pursuant to this part must be processed in accordance with standard 
treatment processing procedures at part 516, subparts A and E. * * * 
The review by OTS of proxy solicitation materials, including forms of 
proxy and proxy statements, and of any other materials used in 
connection with the issuance of stock under Sec. 575.7 of this part 
must not be subject to the applications processing time-frames set 
forth in Secs. 516.210 through 516.290 of this chapter.
* * * * *

[[Page 66136]]

PART 584--REGULATED ACTIVITIES

    70. The authority citation for part 584 continues to read as 
follows:

    Authority: 12 U.S.C. 1462, 1462a, 1463, 1464, 1467a, 1468.
    73. Section 584.2-2 is amended by revising the last sentence of 
paragraph (b) to read as follows:


Sec. 584.2-2  Permissible bank holding company activities of savings 
and loan holding companies.

* * * * *
    (b) * * * OTS must act upon such application under the guidelines 
in part 516, subpart E of this chapter.
* * * * *

    Dated: October 26, 2000.

    By the Office of Thrift Supervision.
Ellen Seidman,
Director.
[FR Doc. 00-27959 Filed 11-1-00; 8:45 am]
BILLING CODE 6720-01-P


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