66118 Federal Register / Vol. 65, No. 213 / Thursday, November 2, 2000 / Proposed Rules

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.

language of the model or optional

bylaws in OTS’s Application Processing

Handbook, if adopted without change,

and filed with OTS within 30 days after

adoption, are effective upon adoption.

* * * * *

PART 552—INCORPORATION,

ORGANIZATION, AND CONVERSION

OF FEDERAL STOCK ASSOCIATIONS

3. The authority citation for part 552

continues to read as follows:

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

1464, 1467a.

4. Section 552.5 is amended by

revising paragraph (b)(1)(iii) to read as

follows:

§ 552.5 Bylaws.

* * * * *

(b) * * *

(1) * * *

(iii) Bylaw provisions that adopt the

language of the model or optional

bylaws in OTS’s Application Processing

Handbook, if adopted without change,

and filed with OTS within 30 days after

adoption, are effective upon adoption.

* * * * *

Dated: October 25, 2000.

By the Office of Thrift Supervision.

Ellen Seidman,

Director.

[FR Doc. 00–27841 Filed 11–1–00; 8:45 am]

BILLING CODE 6720–01–P

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.

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

‘‘public.info@ots.treas.gov’’, 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

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 prefiling 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 §§ 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

Federal Register / Vol. 65, No. 213 / Thursday, November 2, 2000 / Proposed Rules 66119

2On 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.

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 crossreferences 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 § 516.1 sets out the purpose

of part 516. Proposed § 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 § 516.2, proposed

§ 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.

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 § 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 § 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 § 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:

• An application for permission to

organize a de novo federal savings

association.

• 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 prefiling meeting to expedite the review.

• 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

66120 Federal Register / Vol. 65, No. 213 / Thursday, November 2, 2000 / Proposed Rules

3See 12 CFR 563.555 for definitions of director

and senior executive officer. 4Title XVII of Pub. L. 105–277.

5Electronic filing issues are addressed below in

the preamble discussion of § 516.40.

6 5 U.S.C. 552.

7 12 CFR part 505.

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 prefiling 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,

§ 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 prefiling 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 § 516.20(b), the proposed rule

would set out the requirements for the

draft business plan. At a minimum, the

draft business plan must:

• Clearly and completely describe the

projected operations and activities of

the savings association, including

financial projections for a minimum of

three years.

• Describe the risks associated with

the transaction and the impact of the

transaction on any existing activities

and operations of the savings

association.

• 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.

• 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.

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 § 516.25(a), like current

§ 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 § 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 § 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 § 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 § 516.1(c).

OTS proposes to remove the labeling

requirement for all filings.

Section 516.35 May I Keep Portions of

My Application Confidential?

Proposed § 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

§ 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.

Federal Register / Vol. 65, No. 213 / Thursday, November 2, 2000 / Proposed Rules 66121

8 12 U.S.C. 2901.

9The 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.

Proposed § 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.

Under proposed § 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 § 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 § 516.40 clarifies where an

applicant must file an application.

Proposed § 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 § 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 § 516.40(a) would

require applicants to submit an original

and two copies. Proposed § 516.40(a)(2)

provides the addresses of OTS Regional

Offices and the states served by each

Region in chart form.

Proposed § 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 § 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:

• Acquisitions by foreign acquirors

(that have not previously received OTS

approval), insurance or investment

companies, credit unions, securities

firms, or pension funds.

• Hostile acquisitions.

• Qualified stock issuances.

• Establishment of a mutual holding

company.

• De novo charters.

• 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 §§ 516.200 or

516.210 will restart in its entirety.

However, the filing date of the

application will not change. See

proposed § 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 § 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

§ 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 § 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 § 516.15.

Second, the applicant must file the

application and all required copies with

OTS, as described under § 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

§ 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 § 516.45(b), OTS may

notify an applicant that the agency has

adjusted an application filing date if the

66122 Federal Register / Vol. 65, No. 213 / Thursday, November 2, 2000 / Proposed Rules

10OTS 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 §§ 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.

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.

applicant failed to meet any applicable

publication requirements.

Under proposed § 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

§ 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 §§ 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

In subpart B, OTS proposes to add a

new § 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 § 516.55 would

require an applicant to include the

following information in its public

notice:

• The applicant’s name and address.

• The type of application.

• The name of the depository

institution(s) that is the subject matter of

the application.

• A statement indicating that the

public may submit comments to the

appropriate OTS office.

• The address of the appropriate OTS

office(s) where the public may submit

comments.

• The date that the public comment

period closes.

• 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.

• 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 § 516.1(a). To avoid

potential confusion, the proposal makes

conforming technical changes to

§§ 516.120–516.150 by removing the

term ‘‘you’’ and instead referring to

‘‘commenters.’’ In addition, OTS would

revise the section heading of § 516.140,

to reflect this change.

The proposed rule also makes two

revisions to existing § 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 § 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.

Subpart D contains the procedures

governing OTS formal and informal

meeting procedures. OTS proposes to

add a new § 516.185 entitled ‘‘Will OTS

approve or disapprove an application at

a meeting?’’ To codify current practices,

proposed § 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 § 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 § 516.200 would describe the

review under expedited treatment.

Proposed §§ 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 § 516.200 would describe

OTS’s review of notices under

expedited treatment, and uses existing

§ 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 § 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 § 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 §§ 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 § 516.190, or OTS

disapproves the notice.

Standard Treatment

Section 516.210 What Will OTS Do

After I File My Application?

Proposed § 516.210(a) describes the

actions that OTS will take within 30

calendar days after the filing of an

application under standard treatment.

Proposed § 516.210(a) would clarify

existing § 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

Federal Register / Vol. 65, No. 213 / Thursday, November 2, 2000 / Proposed Rules 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 § 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 § 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 § 516.210(a)(2), the

request for a waiver is granted. This

provision of the proposed rule is

consistent with the current rule at

§ 516.2(c)(1).

Section 516.220 If OTS Requests

Additional Information To Complete My

Application, How Will It Process My

Application?

Proposed § 516.220(a) would chart the

procedures governing the applicant’s

submission of additional information.

Proposed § 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 § 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 § 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 § 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 § 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 § 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 § 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

§ 516.220(b).

Section 516.230 Will OTS Conduct an

Eligibility Examination?

Section 516.230 clarifies existing

practices governing eligibility

examinations. Under proposed

§ 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 § 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 § 516.220.

Section 516.240 What May OTS

Require Me To Do After My Application

Is Deemed Complete?

Under current § 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

§ 516.240(a), OTS could request any

additional information that is necessary

to resolve or clarify the issues presented

by the application.

Under proposed § 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 § 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 § 516.250.

Section 516.250 Will OTS Require Me

To Publish a New Public Notice?

Proposed § 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

66124 Federal Register / Vol. 65, No. 213 / Thursday, November 2, 2000 / Proposed Rules

12OTS 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).

matters is appropriate because of the

significance of the new information or

circumstances.

Under proposed § 516.250(b), OTS

would notify the applicant if a new

public notice of a revised application

must be published. Under proposed

§ 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 § 516.260 would permit

OTS to suspend processing of an

application indefinitely under certain

circumstances. This provision uses

existing § 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 § 516.270(a) uses existing

§§ 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

Proposed § 516.270(b) would set out

the applicable review period for related

applications. Under proposed

§ 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 § 516

(2)(d)(2).

Proposed § 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 § 516.2(e).

Proposed § 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

§ 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 § 560.260(c)(1).

Section 516.280 How Will I Know if My

Application Has Been Approved?

Proposed § 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

§ 516.280(b), an application would be

approved if OTS fails to act within this

period. See existing § 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 § 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 § 516.290 is new. Proposed

§ 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 § 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 § 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

§ 516.1(a) Added.

§ 516.1(b) § 516.2(a)(1) Modified.

§ 516.1(c) § 516.2(a) (2) Modified.

§ 516.5(a) Added.

§ 516.5(b) Added.

§ 516.5(c) § 516.3(b)

(1)(i)

Modified.

§ 516.5(d) § 516.3(b)

(1)(ii)

Modified.

§ 516.5(e) § 516.3(b)

(1)(iii)

Modified.

§ 516.5(f) § 516.3(b)

(1)(iv)

Modified.

§ 516.5(g) § 516.3(b)

(1)(v)

Modified.

§ 516.5(h) Added.

§ 516.5(i) Added.

§ 516.10 Added.

§ 516.15 Added.

§ 516.20 Added.

§ 516.25(a) § 516.3(a)(2) Modified.

§ 516.25(b) §§ 516.2(b) Modified and

Added.

§ 516.30(a) § 516.1.(c) Modified and

Added.

§ 516.30(b) § 516.1.(c) Modified.

§ 516.35 Added.

§ 516.40(a)(1) § 516.1(c) Modified and

Added.

§ 516.40(a)(2) § 516.1(b) Modified.

§ 516.40(b) § 516.1(a)&(c) Modified.

§ 516.45(a) Added.

§ 516.45(b) Added.

§ 516.55 Added.

§ 516.120 § 516.120 Modified.

§ 516.130 § 516.130 Modified.

§ 516.140 § 516.140 Modified.

§ 516.150 § 516.150 Modified.

Federal Register / Vol. 65, No. 213 / Thursday, November 2, 2000 / Proposed Rules 66125

Revised

provision

Former

provision Comments

§ 516.185 Added.

§ 516.190 § 516.190 Modified.

§ 516.200(a) § 516.3(a)(2) Modified and

Added.

§ 516.200(b) § 516.3(a)(3) Modified.

§ 516.200(c) Added.

§ 516.200(d) Added.

§ 516.210(a) § 516.2(c)(1) Modified and

Added.

§ 516.210(b) § 516.2(c)(1) Modified.

§ 516.220(a) § 516.2(c)(2)–

(5)

Modified and

Added.

§ 516.220(b) § 516.2(e) Modified.

§ 516.220(c) 516.2(c)(4) Modified.

§ 516.230 Added.

§ 516.240(a) § 516.2(c)(4)–

(5)

Modified.

§ 516.240(b) § 516.2(c)(5) Modified and

Added.

§ 516.250 Added.

§ 516.260 § 516.2(c)(7) Modified and

Added.

§ 516.270(a) § 516.2(d)(1) Modified.

§ 561.270(b) § 516.2(d)(2) Modified.

§ 516.270(c)

(1)

§ 516.2(e) Modified.

§ 516.270(c)

(2)

§ 516.2(f) Modified.

§ 516.280(a) Added.

§ 516.280(b) § 516.2(d) (1) Modified.

§ 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.

66126 Federal Register / Vol. 65, No. 213 / Thursday, November 2, 2000 / Proposed Rules

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.

§§ 516.1, 516.2, 516.3 [Removed]

2. Subpart A of part 516 (§§ 516.1,

516.2, 516.3) is removed.

§§ 516.1, 516.5, 516.10 [Added]

Subpart A [Added]

3. Sections 516.1, 516.5, and 516.10,

and subpart A, consisting of §§ 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.

§ 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:

If— Then OTS will process your application under—

(a) The applicable regulation does not specifically state that expedited treatment is available .................. Standard treatment.

(b) You are not a savings association .......................................................................................................... Standard treatment.

(c) OTS or another federal banking regulator 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.

Standard treatment.

(d) OTS or another federal banking regulator 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, § 563e.28

of this chapter.

Standard treatment.

Federal Register / Vol. 65, No. 213 / Thursday, November 2, 2000 / Proposed Rules 66127

If— Then OTS will process your application under—

(e) OTS or another federal banking regulator 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.

Standard treatment.

(f) You fail any one of your capital requirements under part 567 of this chapter ........................................ Standard treatment.

(g) OTS has notified you that you are an association in troubled condition ................................................ Standard treatment.

(h) Neither OTS nor any other federal banking regulator has assigned you a composite rating, a CRA

rating or a compliance rating.

Standard treatment.

(i) You do not meet any of the criteria listed in paragraphs (a) through (h) of this section ........................ Expedited treatment.

1A savings association may obtain a copy of its composite rating from the appropriate Regional Office.

§ 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

§ 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.

§ 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

§ 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

§ 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 prefiling meeting.

Filing Procedures

§ 516.25 What type of application must I

file?

(a) Expedited treatment. If you are

eligible for expedited treatment under

§ 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

§ 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.

§ 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.

§ 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

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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.

§ 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 Exchange Place, 18th

Floor, Jersey City, New Jersey 07303.

Connecticut, Delaware, Maine, Massachusetts, New

Hampshire, New Jersey, New York, Pennsylvania,

Rhode Island, Vermont, West Virginia.

Southeast .................................... Office of Thrift Supervision, 1475 Peachtree Street,

N.E., Atlanta, Georgia 30309.

Alabama, Florida, Georgia, Maryland, North Carolina,

South Carolina, Virginia, District of Columbia, Puerto Rico, Virgin Islands.

Central ........................................ Office of Thrift Supervision, 200 West Madison

Street, Suite 1300, Chicago, Illinois 60606.

Illinois, Indiana, Kentucky, Michigan, Ohio, Tennessee, Wisconsin.

Midwest ....................................... Office of Thrift Supervision, 122 W. John Carpenter

Freeway, Suite 600, Irving, Texas 75261–9027.

Arkansas, Colorado, Iowa, Kansas, Louisiana, Minnesota, Missouri, Mississippi, North Dakota, Nebraska, New Mexico, Oklahoma, South Dakota,

Texas.

West ............................................ Office of Thrift Supervision, Pacific Telesis Tower, 1

Montgomery Street, San Francisco, California

94104–4533.

Mail to: P.O. Box 7165, San Francisco, California

94120–7165.

Alaska, Arizona, California, Hawaii, Idaho, Montana,

Nevada, Oregon, Utah, Washington, Wyoming,

Guam, Northern Mariana Islands.

(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.

§ 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 § 516.15,

including the submission of a business

plan.

(2) You file your application and all

required copies with OTS, as described

under § 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

§ 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 §§ 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:

§ 516.55 What information must I include

in my public notice?

Your public notice must include the

following:

Federal Register / Vol. 65, No. 213 / Thursday, November 2, 2000 / Proposed Rules 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:

§ 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 § 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:

§ 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

§ 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:

§ 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:

§ 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:

§ 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:

§ 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

§§ 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

§ 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 § 516.190; or

(d) OTS notifies you that it

disapproves your notice.

Standard Treatment

§ 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:

66130 Federal Register / Vol. 65, No. 213 / Thursday, November 2, 2000 / Proposed Rules

If OTS— Then—

(1) Notifies you, in writing, that your application is complete ................... The applicable review period will begin on the date that OTS you, in

deems your application complete.

(2) Notifies you, in writing, that you must submit additional information

to complete your application.

You must submit the required additional information under § 516.220.

(3) Notifies you, in writing, that your application is materially deficient ... OTS will not process your application.

(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 § 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.

§ 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 § 516.210(a)(1):

If, within 30 calendar days

after the date of OTS

request for additional

information—

Then, OTS may— And—

(1) File a response to all information requests.(i) Notify you in writing within 15 calendar days after the

filing of your response that your application is complete.

The applicable review period will begin on the date that

OTS deems your application complete.

(ii) Notify you in writing within 15 calendar days after

the filing date of your response that you must submit

additional information regarding matters derived from

or prompted by already furnished or any additional information necessary to resolve the issues presented

in your application.

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 this section.

(iii) Notify you in writing within 15 calendar days after

the filing date of your response that your application

is materially deficient.

OTS will not process your application.

(iv) Take no action within 15 calendar days after the filing date of your response.Your application is deemed complete. The applicable

review period will begin on the day that the 15-day

time period expires.

(2) Request an extension of

time to file additional information.

(i) Grant an extension, in writing, specifying the number

of days for the extension.

You must fully respond within the extended time period

specified by OTS. OTS will review your response

under the procedures described under this section.

(ii) Notify you in writing that your extension request is

disapproved.

OTS will not process your 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 application is withdrawn.OTS will not process your application further. You may

resubmit the application for processing as a new filing

under the applicable regulation.

(ii) Notify you, in writing, that your response is incomplete and extend the response period, specifying the

number of days for the extension.

You must fully respond within the extended time period

specified by OTS. OTS will review your response

under the procedures described 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.

§ 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 § 516.220.

§ 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

Federal Register / Vol. 65, No. 213 / Thursday, November 2, 2000 / Proposed Rules 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

§ 516.220; and

(2) Require you to publish a new

public notice of your application under

§ 516.250.

§ 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.

§ 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.

§ 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

§ 575.3(b) and part 574 of this chapter.

§ 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.

§ 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 § 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 § 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:

§ 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 § 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:

§ 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 § 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 § 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:

§ 544.2 Charter amendments.

* * * * *

66132 Federal Register / Vol. 65, No. 213 / Thursday, November 2, 2000 / Proposed Rules

(c) * * * Such request for reissuance

should be filed with the Corporate

Secretary at the Washington

Headquarters Office at the address listed

at § 516.40(b) of this chapter and

contain signatures required under

§ 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:

* * * * *

§ 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:

§ 545.92 Branch offices.

* * * * *

(b) Eligibility. Federal savings

associations eligible for expedited

treatment under § 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

§ 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 § 556.5 of this

chapter and must file the application

required under § 516.25(b) of this

chapter or the notice required under

§ 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 § 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 § 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:

§ 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:

§ 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 § 516.40(a) of this chapter.

***

* * * * *

25. Section 550.530 is amended by

revising the last sentence to read as

follows:

§ 550.530 How do I surrender fiduciary

powers?

* * * You must file the resolution

with the appropriate Regional Office at

the address listed in § 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:

§ 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 § 552.2–1.

28. Section 552.4 is amended by

revising the last sentence of paragraph

(d) to read as follows:

§ 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

§ 516.40(b) of this chapter, and contain

signatures required under § 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:

§ 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 § 555.310, the first sentence of

the introductory text of paragraph (a) is

revised to read as follows:

§ 555.310 How do I notify OTS?

(a) Notice requirement. You must file

a written notice with the appropriate

Regional Office listed at § 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.

§ 559.3 [Amended]

33. Section 559.3 is amended by:

a. Removing, in paragraph (e)(2)(i),

the phrases ‘‘§ 516.3(a) of this chapter’’

and ‘‘§ 516.1 of this chapter’’, and by

adding in lieu thereof the phrases

‘‘§ 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 ‘‘§ 516.3(b) of this chapter’’

Federal Register / Vol. 65, No. 213 / Thursday, November 2, 2000 / Proposed Rules 66133

and ‘‘§ 516.1 of this chapter’’, and by

adding in lieu thereof the phrases

‘‘§ 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:

§ 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

§ 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:

§ 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:

§ 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.

§ 560.30 [Amended]

38. Section 560.30, footnote 3 is

amended by removing the phrase

‘‘§ 516.1(a) of this chapter’’, and by

adding in lieu thereof the phrase

‘‘§ 516.40(b) of this chapter’’.

39. Section 560.32 is amended by

revising the second sentence of

paragraph (c) to read as follows:

§ 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:

§ 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:

§ 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 § 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 § 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:

§ 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 § 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:

§ 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 § 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:

§ 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 § 516.5 of this chapter,

66134 Federal Register / Vol. 65, No. 213 / Thursday, November 2, 2000 / Proposed Rules

convert, directly or indirectly, to a

national or state bank.

(2) A savings association that does not

meet the conditions for expedited

treatment under § 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 §§ 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 § 516.5 of this chapter;

* * * * *

(h) * * *

(2) Other transfer transactions—(i)

Expedited treatment. A notice in

conformity with § 516.25(a) of this

chapter may be submitted to OTS under

§ 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 § 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

§ 516.25(b) of this chapter and

paragraph (d) of this section must be

submitted to OTS under § 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 § 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

§ 516.25(b) of this chapter and

paragraph (d) of this section must be

submitted to OTS under § 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 § 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:

§ 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 § 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:

§ 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

§ 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 § 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

§ 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:

§ 563.143 Must I file with OTS?

(a) * * *

(1) You are not eligible for expedited

treatment under § 516.5 of this chapter.

***

* * * * *

50. Section 563.171 is amended by

revising paragraph (b)(4) to read as

follows:

§ 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 § 516.5(c) of this

chapter;

* * * * *

51. Section 563.180 is amended by

revising paragraph (d)(11) to read as

follows:

§ 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 § 516.40(a) of this chapter.

* * * * *

52. Section 563.183 is amended by

revising paragraph (c)(1) to read as

follows:

§ 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 § 563.181 of this part

or this § 563.183 must comply with

§ 516.30 and must be submitted to the

appropriate Regional Office listed in

§ 516.40(a) of this chapter.

* * * * *

Federal Register / Vol. 65, No. 213 / Thursday, November 2, 2000 / Proposed Rules 66135

53. Section 563.555 is amended by

revising paragraph (1) of the definition

of ‘‘troubled condition’’ to read as

follows:

§ 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 § 516.5(c) of this

chapter.

* * * * *

54. Section 563.565 is revised to read

as follows:

§ 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 § 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.

§ 563b.27 [Amended]

56. Section 563b.27 is amended in

paragraph (e), footnote 1, by removing

the phrase ‘‘§ 516.1(a) of this chapter’’,

and by adding in lieu thereof

‘‘§ 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:

§ 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.

§ 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 § 516.5(c)’’ and

b. Section 565.4(b)(3)(iii)(B) is

amended by removing the phrase ‘‘as

defined in § 516.3(c)’’ and adding in lieu

thereof ‘‘as composite rating is defined

in § 516.5(c)’’ and

c. Section 565.4(c)(2), footnote 1, is

amended by removing the phrase

‘‘§ 516.1 of this chapter’’, and by adding

in lieu thereof ‘‘§ 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:

§ 567.3 Individual minimum capital

requirements.

* * * * *

(d) * * *

(2) * * * (i) * * * Such response

must be filed in accordance with

§§ 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:

§ 567.4 Capital directives.

(a) * * *

(3) * * * (i) * * * Such responses

must be filed in accordance with

§§ 516.30 and 516.40 of this chapter.

***

* * * * *

64. Section 567.7 is amended by

revising paragraph (f) to read as follows:

§ 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

§ 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:

§ 574.4 Control.

* * * * *

(f) * * *

(2) * * * Certifications provided for

in this paragraph must be filed with

OTS in accordance with §§ 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:

§ 575.3 Mutual holding company

reorganizations.

* * * * *

(b) * * *

(2) Sixty days have passed since OTS

received the Reorganization Notice and

deemed it complete under § 516.210 or

§ 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:

§ 575.13 Procedural requirements.

(a) * * * (1) * * * Proxies and proxy

statements must be filed in accordance

with § 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 § 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

§ 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 § 575.7 of this part must not

be subject to the applications processing

time-frames set forth in §§ 516.210

through 516.290 of this chapter.

* * * * *

66136 Federal Register / Vol. 65, No. 213 / Thursday, November 2, 2000 / Proposed Rules

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:

§ 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