17110 Federal Register / Vol. 62, No. 68 / Wednesday, April 9, 1997 / Proposed Rules

alternatives from which the Banks might

choose. Should the following activities

be considered ways in which the Banks

achieve their mission: (1) Providing

products that are targeted to meet

multiple policy objectives, such as lowincome housing and mixed-income

community revitalization; (2) pricing

Bank products to encourage member

institutions to be active in affordable

housing and community revitalization;

(3) developing strategies to encourage

partnerships among and between

members, nonmembers, housing and

community development organizations,

and government agencies; (4) providing

technical and educational assistance to

members and affordable housing and

community development organizations?

The Finance Board also requests

comment on how the Banks could use

their cooperative structure to assist

members in acquiring, developing, and

implementing emerging technologies.

B. Measurement of Mission

Achievement

The Finance Board requests comment

on ways in which the Banks’ mission

achievement can or should be

measured. One option would be for the

Finance Board to establish, or require

the Banks to establish, quantitative

targets for specific mission-related

activities undertaken by the Banks.

However, the Finance Board

understands that the efficacy of some

mission-related activities, such as

promoting public-private partnerships,

may be difficult to measure

quantitatively. Therefore, comments are

requested on what other methods of

measurement, such as qualitative

measurements, may be appropriate for

these kinds of activities. Comments also

are requested on whether and through

what medium the results of a Bank’s

performance in achieving its mission

should be communicated to the public.

C. Role of Advisory Councils

Comments are requested on what role

the Banks’ Advisory Councils should

play in achievement of the Banks’

mission. Under statute, it is the role of

the Advisory Council to provide

guidance to a Bank on the low- and

moderate-income housing programs and

needs in the Bank’s district and on the

utilization of advances to meet these

needs. See id. section 1430(j)(11). If the

Banks were required to establish

mission achievement plans, as

discussed above, one option would be to

require each Bank to provide its

Advisory Council a reasonable period of

time to review the mission achievement

plan and provide its recommendations

to the Bank’s board of directors.

Comments received in response to

this ANPRM will be reviewed and

considered by the Finance Board in

preparation of further action in

connection with the issues discussed in

this ANPRM. In addition, the Finance

Board expects to hold a public hearing

on these issues in the near future.

Dated: April 2, 1997.

By the Board of Directors of the Federal

Housing Finance Board.

Bruce A. Morrison,

Chairman.

[FR Doc. 97–9049 Filed 4–8–97; 8:45 am]

BILLING CODE 6725–01–U

DEPARTMENT OF THE TREASURY

Office of Thrift Supervision

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

563

[No. 97–30]

RIN 1550–AA83

Application Processing

AGENCY: Office of Thrift Supervision,

Treasury.

ACTION: Notice of proposed rulemaking.

SUMMARY: As a part of its ongoing effort

to review and streamline its regulations,

the Office of Thrift Supervision (OTS) is

proposing to revise its regulations

governing the comment procedures for

certain specified applications and

notices (collectively ‘‘applications’’). In

addition to reorganizing the regulations,

the OTS proposes to amend the existing

procedures to expand the comment

period on these applications, prescribe

the information that comments must

contain in order to be considered by the

OTS in its evaluation of applications,

and remove existing provisions that

require the OTS to conduct an oral

argument on applications under certain

circumstances and replace these

provisions with discretionary

conference procedures.

DATES: Comments must be received on

or before June 9, 1997.

ADDRESSES: Send comments to Manager,

Dissemination Branch, Records

Management and Information Policy,

Office of Thrift Supervision, 1700 G

Street, NW., Washington, D.C. 20552,

Attention Docket No. 97–30. These

submissions may be hand-delivered to

1700 G Street, NW., from 9:00 a.m. to

5:00 p.m. on business days; they may be

sent by facsimile transmission to FAX

Number (202) 906–7755; or they may be

sent by e-mail:

public.info@ots.treas.gov. Those

commenting by e-mail should include

their name and telephone number.

Comments will be available for

inspection at 1700 G Street, NW., from

9:00 a.m. until 4:00 p.m. on business

days.

FOR FURTHER INFORMATION CONTACT:

Catherine Shepard, Senior Attorney,

Regulations and Legislation Division,

(202) 906–7275, Kevin Corcoran,

Assistant Chief Counsel, Business

Transactions Division, (202) 906–6962,

Office of Chief Counsel; or Diana L.

Garmus, Director, Corporate Activities

Division, (202) 906–5683, Office of

Thrift Supervision, 1700 G Street NW.,

Washington, D.C. 20552.

SUPPLEMENTARY INFORMATION:

I. Background

OTS regulations governing

applications for permission to organize

a federal stock or mutual savings

association, to establish or relocate a

branch office of a federal savings

association, and to engage in a

transaction that is subject to the Bank

Merger Act require applicants to follow

the public comment and review

procedures at 12 CFR 543.2 (e) and (f).

Currently, § 543.2 provides an

opportunity for the public to submit

communications in favor or in protest of

applications, and permits the applicant

to respond to any protest. Where a

protest is timely submitted, meets

specified criteria, and includes a request

for oral argument, or if an applicant

requests an oral argument, the

regulation requires the OTS to conduct

an oral argument on the merits of the

application. The OTS may also hold an

oral argument in the absence of any

specific request, if it determines that

additional proceedings are desirable.

Today, the OTS is proposing to revise

these procedures. The proposed

revisions, discussed more fully below,

would consolidate the public comment

procedures for the cited applications.

The proposal would also expand

existing public comment periods,

prescribe the information that a

comment must contain to be considered

in the evaluation of applications, and

delete existing provisions requiring the

OTS to conduct an oral argument on

applications under certain

circumstances and replace these

provisions with discretionary

conference procedures. The OTS

believes that these changes will make

the application processing procedures

easier to understand and apply.

Additionally, the proposed

discretionary conference procedures

will conform OTS regulations more

closely to those of the other federal

banking agencies, in accordance with
Federal Register / Vol. 62, No. 68 / Wednesday, April 9, 1997 / Proposed Rules 17111

1Currently, the OCC will generally grant a

hearing request ‘‘only if the OCC determines that

written submissions would be inadequate or that a

hearing would otherwise benefit the

decisionmaking process. * * * [or] concludes that

the hearing would be in the public interest.’’ 61 FR

60342, 60365 (Nov. 27, 1996) (to be codified at 12

CFR 5.11). The FDIC arranges informal and formal

hearings at its own discretion. 12 CFR 303.6(h)

(1996). The FRB may hold a private or public

meeting when ‘‘appropriate.’’ 12 CFR 262.25 (c) and

(d) (1996).

section 303 of the Riegle Community

Development and Regulatory

Improvement Act of 1994.

II. Description of the Proposed Rule

The OTS proposes to relocate and

revise the public comment and related

procedures for the applications

described above. Currently, these

procedures may be found in 12 CFR

543.2, which governs applications to

organize federal mutual associations.

The proposed rule would relocate these

provisions to 12 CFR Part 516, which

prescribes application processing

guidelines and procedures. This

relocation should make it easier for

applicants and others to find relevant

regulations and to determine what

procedures must be followed. The

provisions of the revised section are

discussed more fully below.

Comment Procedure—Proposed

§ 516.5(a)(1)

Under this proposed paragraph,

where a regulation incorporates the

procedures set forth in § 516.5, public

comments may be submitted only as

provided by § 516.5(a), or as otherwise

requested by the OTS. The proposed

rule would further provide that the term

‘‘comment’’ includes any written

submission that favors or opposes the

application.

Comment Period—Proposed

§ 516.5(a)(2)

Under current § 543.2(e), anyone may

submit a communication in favor or

protest of an application to the OTS

within 10 days of publication of a

public notice of the filing of an

application. This time period may be

extended to 17 days after publication, if

a request for extension is filed within

the 10-day period. Applicants are

permitted to file an answer to any

protest until 10 days after the date for

filing of such public comments.

The OTS believes that a longer

comment period, without an automatic

extension, would be less confusing and

more workable. Accordingly, the

proposed rule would extend the

comment period to 25 days and would

delete the automatic 7-day extension

period. The OTS may still grant

extensions on a case-by-case basis,

where a comment addresses a

significant regulatory concern and the

commenter shows good cause why it

was unable to submit the comment

within the 25-day comment period. The

length of any extension will also be

determined on a case-by-case basis.

The proposed rule eliminates

provisions permitting the applicant to

file an answer to public comments

within ten days of the close of the

public comment period. The OTS will

generally provide an appropriate

opportunity for an applicant to respond

to relevant comments by forwarding

these comments to the applicant and

requesting a response.

Comment Content Requirements—

Proposed § 516.5(a)(3)

Under the existing rules, a protest is

considered substantial if it is submitted

in writing within the comment period,

and states a reason for the protest that

is consistent with one of the regulatory

bases for denying an application.

Additionally, a substantial protest must

include: (i) A summary of the reasons

for the protest; (ii) the specific matters

in the application to which the

protestant objects and the reasons for

each objection; (iii) facts supporting the

protest, including relevant economic or

financial data; and (iv) any adverse

effects on the protestant that may result

from approval of the application. 12

CFR 543.2(e) (2) and (4).

Under the current rules, the term

‘‘substantial’’ serves a ministerial

purpose. It simply serves as a means of

separating comments that contain the

required information (and, thus, may

serve as the basis for a request for an

oral argument) from those that do not.

Unfortunately, some have misconstrued

OTS findings that a comment is

substantial as an indication that the

OTS has evaluated the substance of the

comment and has concluded that the

comment is meritorious.

The proposed rule would remove the

concept of a substantial protest. Instead,

the rule merely describes what a

comment must include to be considered

by the OTS in the review of an

application. Under the proposed rule, a

comment must recite all relevant facts,

including any economic or financial

data, supporting the commenter’s

position. Comments in opposition must

address at least one of the regulatory

bases for denial, as set forth in the

applicable regulations, recite relevant

facts and supporting data addressing

these bases, and address any adverse

effects on the commenter or the

community that may result from the

approval of the application. This

approach should make the drafting and

review of comments more

straightforward and less burdensome.

Conferences—Proposed § 516.5(b)(1)

Under existing rules, the OTS must

conduct an oral argument if the

applicant or anyone filing a substantial

protest makes a timely request for the

argument. At the oral argument, the

parties may participate in person or

through a designated representative. A

transcript of the argument is made and

included in the application file. See 12

CFR 543.2(f).

Oral arguments may assist in the

disposition of issues raised by an

application. These additional

proceedings, however, are not necessary

in every case, and can delay the

application process without

substantially enhancing the quality of

the information available to evaluate the

application.

Under the current rules, where a

substantial protest is filed with a request

for an oral argument, the OTS must, by

regulation, hold an oral argument.

Comparable regulations of the other

federal banking agencies provide these

regulators with greater flexibility.

Instead of mandating additional

proceedings at the request of the parties,

these rules provide the agencies with

discretion to conduct additional

proceedings if the agency concludes that

the proceedings would assist the

decisionmaking process.1

Consistent with the rules of the other

federal banking agencies, OTS’s

proposed rule would provide for

additional proceedings only where the

OTS determines that such proceedings

would assist in the disposition of the

application or would assist in the

resolution of any issues raised by the

application.

Instead of mandating specific

procedures in the form of an oral

argument, the proposed rule permits the

OTS to arrange a conference between

the applicant, commenters, and others.

The rule does not prescribe procedures

for the conference. Rather, it permits the

OTS to select the procedure appropriate

to the application on a case-by-case

basis. For example, the OTS may

determine, based on the facts or issues

raised with regard to a particular

application, that it should conduct a

transcribed conference consisting of oral

argument. For other applications, the

OTS may decide to use very informal

procedures, such as a conference

telephone call. The proposed rule

requires the OTS to provide an

applicant and commenters with at least

10 days advance notice of the time,
17112 Federal Register / Vol. 62, No. 68 / Wednesday, April 9, 1997 / Proposed Rules

2 This requirement is currently found at 12 CFR

516.2(c)(6). Since the proposed rule would include

this provision at § 516.5(b)(2), § 516.2(c)(6) would

be deleted. We note that the OTS also may extend

the time for review under 12 CFR 516.2 (e) and (f).

location and procedures to be followed

at any conference.

The OTS believes that these changes

will improve the public comment

process and will align its regulation

more closely with the regulations of the

other federal banking agencies.

In the past, participants in the

application comment process have

suggested that OTS should be required

to distribute a document addressing the

issues raised in the comments or at the

oral argument. The OTS does not

distribute such documents. The only

document that the OTS routinely issues

that may refer to the comments is the

order or decision letter on the

application.

Application Time Frames—Proposed

§ 516.5(b)(2)

The proposed rule would provide that

applicable time periods for automatic

approval of the application will be

suspended if the OTS has notified the

applicant that it intends to hold a

conference.2 Applicants are encouraged

to arrange meetings with commenters at

any time, independent of OTS

involvement. Such meetings will not,

however, suspend the time period for

automatic approval.

Conforming Revisions

The proposed rule would include

conforming revisions to various other

regulations. These changes are

summarized below.

Section 543.2 would be revised to

reflect the relocation of the public

comment procedures to Part 516. In

addition, the public notice procedures

at paragraph (d)(1) would be revised to

require an applicant to publish the

notice of the filing of an application for

permission to organize no earlier than

three days before and no later than the

date of filing of the application.

Paragraphs (c) and (d)(4) would be

revised to reflect the fact that

applications will no longer be filed

before the publication of the public

notice. Paragraph (d)(3) would be

revised to delete the requirement that

OTS must provide a notice of the filing

of an application to persons who have

filed a request for such notice. This

section is duplicative of the requirement

set forth at § 563e.6. Currently,

543.2(d)(3) also requires OTS to notify

the state official who supervises savings

associations in the state where the new

association will be located. This

notification requirement would be

retained.

Paragraph (h)(1) would be revised to

clarify that public notice and comment

procedures, conference procedures, and

approval conditions otherwise

applicable to applications to organize

federal associations would not apply to

applications to organize interim federal

associations. Applications that

accompany the organization of the

federal interim association, for example,

merger applications or holding company

applications, would continue to be

subject to the requirements set forth

under the applicable merger or holding

company regulations. A similar revision

would be made to section 552.2–2(a),

which governs applications to organize

interim federal stock savings

associations.

Section 545.92 governs the

establishment of branch offices by

federal associations. This section

currently incorporates the comment and

oral argument procedures at § 543.2 (e)

and (f). It also cross-references

additional procedures from § 543.2 (c)

and (d) that address the amendment of

applications, the publication of public

notices, and public inspection

procedures. Rather than require the

reader to refer to two different

regulations to determine the procedures

that apply to branch office applications,

proposed § 545.92 would refer to the

new comment procedures at § 516.5,

and would restate in full appropriate

additional procedures contained in

existing § 543.2 (c) and (d).

The current procedures for branch

applications that are subject to standard

treatment under § 545.92 require the

publication of a public notice within 10

days after OTS notifies the association

that the application is complete. These

procedures also state that such

applications may, under certain

circumstances, be deemed to be

approved within 30 days of this OTS

notification. Because these procedures

would not accommodate the proposed

25-day public comment period, the OTS

proposes to require the savings

association to publish the public notice

of all branch applications or notices no

earlier than three days before and no

later than the date of the filing of the

application.

Section 545.95 addresses changes of

permanent locations and redesignations

of home and branch offices of federal

associations. The current rule requires

an applicant to post a notice of the

application for 17 days from the date of

publication of the newspaper notice—a

period that is equal to the extended

comment period under current 12 CFR

543.2(e)(1). The proposed rule would

expand the time period for posting to 25

days to more closely track the revised

comment period. The proposed rule

would also update existing crossreferences to § 545.92 procedures.

Section 552.2–1 governs procedures

for the organization of federal stock

associations. Currently, this regulation

incorporates § 543.2(a) through (f) by

reference. Rather than refer the reader to

two regulations to determine the proper

procedures for these applications,

proposed § 552.2–1 would refer to the

new comment procedures at § 516.5,

and would restate in full any

appropriate additional procedures

contained at existing § 543.2(a) through

(d). As in § 543.2, the public notice

procedures contained in this section

would be revised to require an applicant

to publish notice of the filing of the

application to organize no earlier than

three days before, and no later than the

date of filing of the application.

Sections 556.5 (policy statement on

branching by federal savings

associations) and 563.22 (merger

consolidation, purchase or sale of assets,

or assumption of liabilities) would be

revised to include appropriate citations

to the new comment procedures at

§ 516.5, rather than the existing

procedures at § 543.2.

The OTS invites comment on all

aspects of the proposal.

III. Executive Order 12866

The Director of the OTS has

determined that this proposed rule does

not constitute a ‘‘significant regulatory

action’’ for the purposes of Executive

Order 12866.

IV. Regulatory Flexibility Act Analysis

Pursuant to section 605(b) of the

Regulatory Flexibility Act, the OTS

certifies that this proposed rule will not

have a significant impact on a

substantial number of small entities.

The proposed rule should enable the

OTS to process applications received

from all applicants, including small

savings associations, and other small

businesses, more expeditiously. It also

allows all entities, including small

entities, a longer period in which to

submit comments on applications filed

by savings associations.

V. Paperwork Reduction Act of 1995

The information collection

requirements contained in this rule are

found at 12 CFR 516.5, 543.2, 545.92,

545.95, 552.2–1, and 563.22. All of the

collections of information, except those

found in § 516.5, have been previously

approved by the Office of Management

and Budget and the burden under them

remains unchanged under this rule
Federal Register / Vol. 62, No. 68 / Wednesday, April 9, 1997 / Proposed Rules 17113

(OMB Control Nos. 1550–0005, 1550–

0006, and 1550–0016). The

requirements in new § 516.5 were

previously found in several of the

sections mentioned above. New § 516.5

does not add any additional burden and

will be added to the approved packages

under OMB Control Nos. 1550–0005,

1550–0006, 1550–0015 and 1550–0032

by inventory correction worksheet at the

final rule stage.

Comments on all aspects of the

information collections should be sent

to the Office of Management and

Budget, Paperwork Reduction Project

(1550), Washington, D.C. 20503 with

copies to the OTS, 1700 G Street, NW.,

Washington, D.C. 20552.

The OTS invites comments on:

(1) Whether the collections of

information are necessary for the proper

performance of the agency’s functions,

including whether the information has

practical utility;

(2) The accuracy of the agency’s

estimate of the burden of the

information collections;

(3) Ways to enhance the quality,

utility, and clarity of the information to

be collected; and

(4) Ways to minimize the burden of

the information collection including the

use of automated collection techniques

or other forms of information

technology.

Respondents/recordkeepers are not

required to respond to the collections of

information unless they display a

currently valid OMB control number.

VI. Unfunded Mandates Act of 1995

Section 202 of the Unfunded

Mandates Reform Act of 1995, Pub. L.

104–4 (Unfunded Mandates Act),

requires that an agency prepare a

budgetary impact statement before

promulgating a rule that includes a

federal mandate that may result in

expenditure by state, local, and tribal

governments, in the aggregate, or by the

private sector, of $100 million or more

in any one year. If a budgetary impact

statement is required, section 205 of the

Unfunded Mandates Act also requires

an agency to identify and consider a

reasonable number of regulatory

alternatives before promulgating a rule.

As discussed in the preamble, this

proposed rule simplifies existing

procedures and should reduce

regulatory burden. The OTS has

determined that the proposed rule will

not result in expenditures by state, local

or tribal governments or by the private

sector of $100 million or more.

Accordingly, this rulemaking is not

subject to section 202 of the Unfunded

Mandates Act.

List of Subjects

12 CFR Part 516

Administrative practice and

procedure, Reporting and recordkeeping

requirements, Savings associations.

12 CFR Part 543

Reporting and recordkeeping

requirements, Savings associations.

12 CFR Part 545

Accounting, Consumer protection,

Credit, Electronic funds transfers,

Investments, Reporting and

recordkeeping requirements, Savings

associations.

12 CFR Part 552

Reporting and recordkeeping

requirements, Savings associations,

Securities.

12 CFR Part 556

Savings associations.

12 CFR Part 563

Accounting, Advertising, Crime,

Currency, Investments, Reporting and

recordkeeping requirements, Savings

associations, Securities, Surety bonds.

Accordingly, the Office of Thrift

Supervision proposes to amend title 12,

chapter V, of the Code of Federal

Regulations as set forth below.

PART 516—APPLICATIONS

PROCESSING GUIDELINES AND

PROCEDURES

1. The authority citation for part 516

is revised to read as follows:

Authority: 5 U.S.C. 552, 559; 12 U.S.C.

1462a, 1463, 1464, 2901 et seq.

§ 516.2 [Amended]

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

reserved.

3. Section 516.5 is added to read as

follows:

§ 516.5 Comment procedures.

(a) Comments—(1) General. If a

regulation incorporates the procedures

set forth in this section, public

comments in connection with an

application or notice (collectively

referred to as applications) shall be

submitted only as provided in this

paragraph (a), or as otherwise requested

by the OTS. A comment includes any

written submission in favor of, or in

opposition to, the application.

(2) Submission. Any person may file

a written comment with the OTS within

25 days after an application is published

for public comment. The OTS will not

consider any comment received after the

25-day comment period, unless the

commenter demonstrates good cause

why it was unable to submit a timely

comment, and the OTS concludes that

the comment addresses a significant

regulatory concern and will assist the

agency in the disposition of the

application.

(3) Content. To be considered by the

OTS, a comment must recite all relevant

facts, including any economic or

financial data, supporting the

commenter’s position. Comments in

opposition must address at least one of

the regulatory bases for denial, as set

forth in the applicable regulations,

recite relevant facts and supporting data

addressing these relevant bases, and

address any adverse effects on the

commenter or the community that may

result from the approval of the

application.

(b) Conference. (1) The OTS may

arrange a conference between the

applicant commenter(s), and other

persons, if the OTS concludes that a

conference will assist in the disposition

of the application or in the resolution of

any issues raised by the application.

The OTS must provide the applicant

and commenter(s) with at least 10 days

notice of the time, location, and

procedures to be followed at the

conference.

(2) Application time frames. If the

OTS has timely notified the applicant

that it intends to hold a conference

under paragraph (b) of this section, the

time period for automatic approval of

the application under § 516.2 shall be

temporarily suspended until a record is

developed sufficient to support a

determination on the issues raised in

the comments.

PART 543—INCORPORATION,

ORGANIZATION, AND CONVERSION

OF FEDERAL MUTUAL

ASSOCIATIONS

4. The authority citation for part 543

continues to read as follows:

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

1464, 1467a, 2901 et seq.

5. In § 543.2, paragraph (c) is removed

and reserved and paragraphs (d)(1),

(d)(3), (d)(4), (e), (f) and (h)(1) are

revised to read as follows:

§ 543.2 Application for permission to

organize.

* * * * *

(d) * * * (1) The applicant shall

publish a public notice of the

application to organize no earlier than

three days before and no later than the

date of filing of the application. The

applicant shall publish the notice in a

newspaper printed in the English

language and having a general

circulation in the community in which
17114 Federal Register / Vol. 62, No. 68 / Wednesday, April 9, 1997 / Proposed Rules

the home office of the new association

is to be located. If the OTS determines

that the primary language of a

significant number of adult residents of

the community is a language other than

English, the OTS may require that

notice also be given simultaneously in

the appropriate language(s).

* * * * *

(3) The OTS shall give notice of the

application to the State official who

supervises savings associations in the

State in which the new association is to

be located.

(4) The application and all related

communications may be inspected by

any person at the Regional Office during

regular business hours, unless such

information is exempt from public

disclosure.

(e) Submission of comments.

Comments on the application shall be

submitted in accordance with the

procedures specified in § 516.5(a) of this

chapter.

(f) Conference procedures. The OTS

may arrange a conference in accordance

with § 516.5(b) of this chapter.

* * * * *

(h) * * * (1) Applications for

permission to organize an interim

Federal savings association are not

subject to public notice and comment

procedures, and conference procedures,

and are not subject to paragraph (g)(3)

of this section.

* * * * *

PART 545—OPERATIONS

6. The authority citation for part 545

continues to read as follows:

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

1828.

7. In § 545.92, paragraphs (d), (e)

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

paragraphs (i) and (j) are removed to

read as follows:

§ 545.92 Branch offices.

* * * * *

(d) Processing of applications/notices.

Processing of applications and notices

shall be subject to the following

procedures:

(1) Publication. (i) A Federal savings

association shall publish a public notice

of the branch application or notice no

earlier than three days before and no

later than the date of the filing of the

application or notice. The applicant

shall publish the notice in a newspaper

printed in the English language and

having a general circulation in the

community in which the home office of

the association is located and in the

community to be served by the branch

office. If the OTS determines that the

primary language of a significant

number of adult residents of either

community is a language other than

English, the OTS may require that

notice also be given simultaneously in

the appropriate language.

(ii) The public notice shall be in

substantially the following form:

NOTICE OF ESTABLISHMENT OF A

BRANCH OFFICE OR CHANGE OF

LOCATION OF AN OFFICE

This is to inform you that [Association

Corporate Title, City, Town, State and Zip

Code] is filing [an] [application/notice] with

the Office of Thrift Supervision (‘‘OTS’’) for

permission to establish a branch office to be

located [address of branch office]. This

[application/notice] is filed under OTS

regulations at 12 CFR 545.92 or 12 CFR

545.95.

Anyone may comment in favor of, or in

opposition to, the [application/notice] within

25 days of the publication of this notice. To

be considered by the OTS, your comments

must be filed in writing within this time

period. Your comment must recite all

relevant facts, including any economic or

financial data, supporting your position. If

you submit a comment in opposition, you

must address at least one of the regulatory

bases for denial, as set forth in the applicable

regulations, recite relevant facts and

supporting data addressing these bases, and

address any adverse effects on you or the

community that may result from the approval

of the [application/notice].

You must send three copies of your

comment to the Regional Director, [insert

name and address of the OTS Regional Office

where the application/notice is filed]. You

may view the [application/notice] and all

comments filed at the OTS Regional Office,

except to the extent that these materials may

be exempt by law from disclosure. If you

have any questions concerning these

procedures, contact the OTS Regional Office.

(iii) Promptly after publication of the

public notice, the savings association

shall transmit copies of the public

notice and publisher’s affidavit of

publication to the OTS.

(iv) The application or notice and all

related communications may be

inspected by any person at the Regional

Office during regular business hours,

unless such information is exempt from

public disclosure.

(2) Submission of application or

notice. A Federal savings association

must comply with § 556.5 of this

chapter and shall file the application

required under § 516.3(b)(2) of this

chapter or the notice required under

§ 516.3(a) of this chapter within three

days of the publication of the public

notice under paragraph (d)(1) of this

section.

(3) Submission of comments.

Comments on the application or notice

shall be submitted in accordance with

the procedures specified in § 516.5(a) of

this chapter.

(4) Conference procedures. The OTS

may arrange a conference in accordance

with § 516.5(b) of this chapter.

(e) Approval of branch application.

* * *

(2) An application shall be deemed to

be approved 30 days after notification

that the application is complete, unless

the OTS notifies the savings association

that it intends to hold a conference

under the procedures described in

§ 516.5(b) of this chapter, or that the

OTS objects to the application on the

grounds set forth under paragraph (e)(1)

of this section.

(f) Approval of branch notice. A

notice filed by a Federal savings

association that qualifies for expedited

treatment shall be deemed to be

approved 30 days after its filing with the

OTS, unless the OTS notifies the

savings association that it intends to

hold a conference under the procedures

described in § 516.5(b) of this chapter;

the OTS objects to the application on

the grounds set forth in paragraph (e)(1)

of this section; or the OTS determines

to process the filing as an application

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

OTS notifies the savings association that

it intends to hold a conference, the

savings association may not open a

branch until the OTS provides a

notification of its approval.

* * * * *

8. In § 545.95, paragraphs (a) and

(b)(1)(ii) are revised to read as follows:

§ 545.95 Change of office location and

redesignation of offices.

(a) Eligibility. A Federal savings

association may change the permanent

location of its home office or any

approved branch office, or redesignate a

home or branch office subject to the

appropriate expedited or standard

treatment procedures for establishing a

branch office set forth in § 545.92 of this

part.

(b) * * *

(1) * * *

(ii) The applicant shall post notice of

the application for 25 days from the date

of first publication in a prominent

location in the office to be closed or

redesignated.

* * * * *

PART 552—INCORPORATION,

ORGANIZATION, AND CONVERSION

OF FEDERAL STOCK ASSOCIATIONS

9. The authority citation for part 552

continues to read as follows:

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

1467a.

10. Section 552.2–1 is amended by

revising paragraph (a) to read as follows:
Federal Register / Vol. 62, No. 68 / Wednesday, April 9, 1997 / Proposed Rules 17115

1Section 2(5) of the Home Owners’ Loan Act

defines ‘‘federal savings associations’’ to include

Continued

§ 552.2–1 Procedure for organization of

Federal stock association.

(a) Application for permission to

organize. Applicants may file an

application for permission to organize a

Federal stock association in accordance

with this section. Recommendations by

employees of the OTS regarding

applications for permission to organize

are privileged, confidential, and subject

to § 510.5 (b) and (c) of this chapter. The

processing of an application under this

section shall be subject to the following

procedures:

(1) Publication. (i) The applicant shall

publish a public notice of the

application no earlier than three days

before and no later than the date of

filing of the application. The applicant

shall publish the notice in a newspaper

printed in the English language and

having a general circulation in the

community in which the home office of

the new association is to be located. If

the OTS determines that the primary

language of a significant number of

adult residents of either community is a

language other than English, the OTS

may require that notice also be given

simultaneously in the appropriate

language(s).

(ii) Promptly after publication of the

public notice, the applicant shall

transmit copies of the public notice and

publisher’s affidavit of publication to

the OTS in the same manner as the

original filing.

(iii) The application and all related

communications may be inspected by

any person at the Regional Office during

regular business hours, unless such

information is exempt from public

disclosure.

(2) Notification to interested parties.

The OTS shall give notice of the

application to the State official who

supervises savings associations in the

State in which the new association is to

be located.

(3) Submission of comments.

Comments on the application shall be

submitted in accordance with the

procedures specified in § 516.5(a) of this

chapter.

(4) Conference procedures. The OTS

may arrange a conference in accordance

with § 516.5(b) of this chapter.

* * * * *

11. Section 552.2–2 is amended by

revising paragraph (a) to read as follows:

§ 552.2–2 Procedures for organization of

interim Federal stock association.

(a) Applications for permission to

organize an interim Federal savings

association are not subject to public

notice and comment procedures, and

conference procedures, and are not

subject to § 552.2–1(b)(3) of this part.

* * * * *

PART 556—STATEMENTS OF POLICY

12. The authority citation for part 556

continues to read as follows:

Authority: 5 U.S.C. 552, 559; 12 U.S.C.

1464, 1701j–3; 15 U.S.C. 1693–1693r.

13. Section 556.5 is amended by

revising paragraph (c)(4) to read as

follows:

§ 556.5 Branching by Federal savings

associations.

* * * * *

(c) * * *

(4) Comment procedures. Comments

on applications for branches must be

submitted in writing and factually

documented. Comment procedures are

set forth in § 516.5 of this chapter, part

563e of this chapter, the OTS

Application Processing Handbook, and

other supervisory guidance issued by

the OTS.

* * * * *

PART 563—OPERATIONS

14. The authority citation for part 563

continues to read as follows:

Authority: 12 U.S.C. 375b, 1462, 1462a,

1463, 1464, 1467a, 1468, 1817, 1820, 1828,

3806; 42 U.S.C. 4106.

15. Section 563.22 is amended by

revising paragraphs (e)(4) and (f)(3) to

read as follows:

§ 563.22 Merger, consolidation, purchase

or sale of assets, or assumption of

liabilities.

* * * * *

(e) * * *

(4) Applications submitted under

paragraph (a) of this section shall be

subject to the comment procedures

specified in § 516.5(a) of this chapter,

except that comments may be submitted

at any time during the period described

in paragraph (e)(2) of this section. The

OTS may arrange a conference in

accordance with § 516.5(b) of this

chapter.

* * * * *

(f) * * *

(3) The OTS has notified the savings

association that it intends to hold a

conference as described in § 516.5(b) of

this chapter;

* * * * *

Dated: March 31, 1997.

By the Office of Thrift Supervision.

Nicolas P. Retsinas,

Director.

[FR Doc. 97–8815 Filed 4–8–97; 8:45 am]

BILLING CODE 6720–01–P

DEPARTMENT OF THE TREASURY

Office of Thrift Supervision

12 CFR Part 543

[No. 97–31]

RIN 1550–AB06

Incorporation, Organization, and

Conversion of Federal Mutual

Associations

AGENCY: Office of Thrift Supervision,

Treasury.

ACTION: Proposed rule with request for

comments.

SUMMARY: The Office of Thrift

Supervision (OTS) proposes to amend

its regulations governing conversions to

federal mutual savings associations to

permit the direct conversion of all types

of mutual depository institutions into

federal mutual savings associations.

This proposal would simplify the

conversion process.

DATES: Comments must be received on

or before June 9, 1997.

ADDRESSES: Send comments to Manager,

Dissemination Branch, Records

Management and Information Policy,

Office of Thrift Supervision, 1700 G

Street, NW., Washington, D.C. 20552,

Attention Docket No, 97–31. These

submissions may be hand-delivered to

1700 G Street, NW., from 9:00 a.m. to

5:00 p.m. on business days; they may be

sent by facsimile transmission to FAX

Number (202) 906–7755; or they may be

sent by e-mail:

public.info@ots.treas.gov. Those

commenting by e-mail should include

their name and telephone number.

Comments will be available for

inspection at 1700 G Street, NW., from

9:00 a.m. until 4:00 p.m. on business

days.

FOR FURTHER INFORMATION CONTACT:

Scott Ciardi, Senior Analyst, Corporate

Activities Division (202/906–6960);

David A. Permut, Counsel (Banking and

Finance) (202/906–7505) or Kevin A.

Corcoran, Assistant Chief Counsel for

Business Transactions (202/906–6962),

Business Transactions Division, Chief

Counsel’s Office, Office of Thrift

Supervision, 1700 G Street, NW.,

Washington, D.C. 20552.

SUPPLEMENTARY INFORMATION:

I. Background

Various types of depository

institutions have expressed interest in

converting to a federal savings

association charter.1 The OTS has