[Federal Register Volume 62, Number 68 (Wednesday, April 9, 1997)]
[Proposed Rules]
[Pages 17110-17115]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-8815]


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DEPARTMENT OF THE TREASURY

Office of Thrift Supervision

12 CFR Parts 516, 543, 545, 552, 556, 563

[No. 97-30]
RIN 1550-AA83


Application Processing

AGENCY: Office of Thrift Supervision, Treasury.

ACTION: Notice of proposed rulemaking.

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SUMMARY: As a part of its ongoing effort to review and streamline its 
regulations, the Office of Thrift Supervision (OTS) is proposing to 
revise its regulations governing the comment procedures for certain 
specified applications and notices (collectively ``applications''). In 
addition to reorganizing the regulations, the OTS proposes to amend the 
existing procedures to expand the comment period on these applications, 
prescribe the information that comments must contain in order to be 
considered by the OTS in its evaluation of applications, and remove 
existing provisions that require the OTS to conduct an oral argument on 
applications under certain circumstances and replace these provisions 
with discretionary conference procedures.

DATES: Comments must be received on or before June 9, 1997.

ADDRESSES: Send comments to Manager, Dissemination Branch, Records 
Management and Information Policy, Office of Thrift Supervision, 1700 G 
Street, NW., Washington, D.C. 20552, Attention Docket No. 97-30. These 
submissions may be hand-delivered to 1700 G Street, NW., from 9:00 a.m. 
to 5:00 p.m. on business days; they may be sent by facsimile 
transmission to FAX Number (202) 906-7755; or they may be sent by e-
mail: <a href="/cdn-cgi/l/email-protection#bbcbced9d7d2d895d2d5ddd4fbd4cfc895cfc9dedac895dcd4cd"><span class="__cf_email__" data-cfemail="235356414f4a400d4a4d454c634c57500d57514642500d444c55">[email protected]</span></a>. Those commenting by e-mail should 
include their name and telephone number. Comments will be available for 
inspection at 1700 G Street, NW., from 9:00 a.m. until 4:00 p.m. on 
business days.

FOR FURTHER INFORMATION CONTACT: Catherine Shepard, Senior Attorney, 
Regulations and Legislation Division, (202) 906-7275, Kevin Corcoran, 
Assistant Chief Counsel, Business Transactions Division, (202) 906-
6962, Office of Chief Counsel; or Diana L. Garmus, Director, Corporate 
Activities Division, (202) 906-5683, Office of Thrift Supervision, 1700 
G Street NW., Washington, D.C. 20552.

SUPPLEMENTARY INFORMATION:

I. Background

    OTS regulations governing applications for permission to organize a 
federal stock or mutual savings association, to establish or relocate a 
branch office of a federal savings association, and to engage in a 
transaction that is subject to the Bank Merger Act require applicants 
to follow the public comment and review procedures at 12 CFR 543.2 (e) 
and (f).
    Currently, Sec. 543.2 provides an opportunity for the public to 
submit communications in favor or in protest of applications, and 
permits the applicant to respond to any protest. Where a protest is 
timely submitted, meets specified criteria, and includes a request for 
oral argument, or if an applicant requests an oral argument, the 
regulation requires the OTS to conduct an oral argument on the merits 
of the application. The OTS may also hold an oral argument in the 
absence of any specific request, if it determines that additional 
proceedings are desirable.
    Today, the OTS is proposing to revise these procedures. The 
proposed revisions, discussed more fully below, would consolidate the 
public comment procedures for the cited applications. The proposal 
would also expand existing public comment periods, prescribe the 
information that a comment must contain to be considered in the 
evaluation of applications, and delete existing provisions requiring 
the OTS to conduct an oral argument on applications under certain 
circumstances and replace these provisions with discretionary 
conference procedures. The OTS believes that these changes will make 
the application processing procedures easier to understand and apply. 
Additionally, the proposed discretionary conference procedures will 
conform OTS regulations more closely to those of the other federal 
banking agencies, in accordance with

[[Page 17111]]

section 303 of the Riegle Community Development and Regulatory 
Improvement Act of 1994.

II. Description of the Proposed Rule

    The OTS proposes to relocate and revise the public comment and 
related procedures for the applications described above. Currently, 
these procedures may be found in 12 CFR 543.2, which governs 
applications to organize federal mutual associations. The proposed rule 
would relocate these provisions to 12 CFR Part 516, which prescribes 
application processing guidelines and procedures. This relocation 
should make it easier for applicants and others to find relevant 
regulations and to determine what procedures must be followed. The 
provisions of the revised section are discussed more fully below.

Comment Procedure--Proposed Sec. 516.5(a)(1)

    Under this proposed paragraph, where a regulation incorporates the 
procedures set forth in Sec. 516.5, public comments may be submitted 
only as provided by Sec. 516.5(a), or as otherwise requested by the 
OTS. The proposed rule would further provide that the term ``comment'' 
includes any written submission that favors or opposes the application.

Comment Period--Proposed Sec. 516.5(a)(2)

    Under current Sec. 543.2(e), anyone may submit a communication in 
favor or protest of an application to the OTS within 10 days of 
publication of a public notice of the filing of an application. This 
time period may be extended to 17 days after publication, if a request 
for extension is filed within the 10-day period. Applicants are 
permitted to file an answer to any protest until 10 days after the date 
for filing of such public comments.
    The OTS believes that a longer comment period, without an automatic 
extension, would be less confusing and more workable. Accordingly, the 
proposed rule would extend the comment period to 25 days and would 
delete the automatic 7-day extension period. The OTS may still grant 
extensions on a case-by-case basis, where a comment addresses a 
significant regulatory concern and the commenter shows good cause why 
it was unable to submit the comment within the 25-day comment period. 
The length of any extension will also be determined on a case-by-case 
basis.
    The proposed rule eliminates provisions permitting the applicant to 
file an answer to public comments within ten days of the close of the 
public comment period. The OTS will generally provide an appropriate 
opportunity for an applicant to respond to relevant comments by 
forwarding these comments to the applicant and requesting a response.

Comment Content Requirements--Proposed Sec. 516.5(a)(3)

    Under the existing rules, a protest is considered substantial if it 
is submitted in writing within the comment period, and states a reason 
for the protest that is consistent with one of the regulatory bases for 
denying an application. Additionally, a substantial protest must 
include: (i) A summary of the reasons for the protest; (ii) the 
specific matters in the application to which the protestant objects and 
the reasons for each objection; (iii) facts supporting the protest, 
including relevant economic or financial data; and (iv) any adverse 
effects on the protestant that may result from approval of the 
application. 12 CFR 543.2(e) (2) and (4).
    Under the current rules, the term ``substantial'' serves a 
ministerial purpose. It simply serves as a means of separating comments 
that contain the required information (and, thus, may serve as the 
basis for a request for an oral argument) from those that do not. 
Unfortunately, some have misconstrued OTS findings that a comment is 
substantial as an indication that the OTS has evaluated the substance 
of the comment and has concluded that the comment is meritorious.
    The proposed rule would remove the concept of a substantial 
protest. Instead, the rule merely describes what a comment must include 
to be considered by the OTS in the review of an application. Under the 
proposed rule, a comment must recite all relevant facts, including any 
economic or financial data, supporting the commenter's position. 
Comments in opposition must address at least one of the regulatory 
bases for denial, as set forth in the applicable regulations, recite 
relevant facts and supporting data addressing these bases, and address 
any adverse effects on the commenter or the community that may result 
from the approval of the application. This approach should make the 
drafting and review of comments more straightforward and less 
burdensome.

Conferences--Proposed Sec. 516.5(b)(1)

    Under existing rules, the OTS must conduct an oral argument if the 
applicant or anyone filing a substantial protest makes a timely request 
for the argument. At the oral argument, the parties may participate in 
person or through a designated representative. A transcript of the 
argument is made and included in the application file. See 12 CFR 
543.2(f).
    Oral arguments may assist in the disposition of issues raised by an 
application. These additional proceedings, however, are not necessary 
in every case, and can delay the application process without 
substantially enhancing the quality of the information available to 
evaluate the application.
    Under the current rules, where a substantial protest is filed with 
a request for an oral argument, the OTS must, by regulation, hold an 
oral argument. Comparable regulations of the other federal banking 
agencies provide these regulators with greater flexibility. Instead of 
mandating additional proceedings at the request of the parties, these 
rules provide the agencies with discretion to conduct additional 
proceedings if the agency concludes that the proceedings would assist 
the decisionmaking process.<SUP>1
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    \1\ Currently, the OCC will generally grant a hearing request 
``only if the OCC determines that written submissions would be 
inadequate or that a hearing would otherwise benefit the 
decisionmaking process. * * * [or] concludes that the hearing would 
be in the public interest.'' 61 FR 60342, 60365 (Nov. 27, 1996) (to 
be codified at 12 CFR 5.11). The FDIC arranges informal and formal 
hearings at its own discretion. 12 CFR 303.6(h) (1996). The FRB may 
hold a private or public meeting when ``appropriate.'' 12 CFR 262.25 
(c) and (d) (1996).
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    Consistent with the rules of the other federal banking agencies, 
OTS's proposed rule would provide for additional proceedings only where 
the OTS determines that such proceedings would assist in the 
disposition of the application or would assist in the resolution of any 
issues raised by the application.
    Instead of mandating specific procedures in the form of an oral 
argument, the proposed rule permits the OTS to arrange a conference 
between the applicant, commenters, and others. The rule does not 
prescribe procedures for the conference. Rather, it permits the OTS to 
select the procedure appropriate to the application on a case-by-case 
basis. For example, the OTS may determine, based on the facts or issues 
raised with regard to a particular application, that it should conduct 
a transcribed conference consisting of oral argument. For other 
applications, the OTS may decide to use very informal procedures, such 
as a conference telephone call. The proposed rule requires the OTS to 
provide an applicant and commenters with at least 10 days advance 
notice of the time,

[[Page 17112]]

location and procedures to be followed at any conference.
    The OTS believes that these changes will improve the public comment 
process and will align its regulation more closely with the regulations 
of the other federal banking agencies.
    In the past, participants in the application comment process have 
suggested that OTS should be required to distribute a document 
addressing the issues raised in the comments or at the oral argument. 
The OTS does not distribute such documents. The only document that the 
OTS routinely issues that may refer to the comments is the order or 
decision letter on the application.

Application Time Frames--Proposed Sec. 516.5(b)(2)

    The proposed rule would provide that applicable time periods for 
automatic approval of the application will be suspended if the OTS has 
notified the applicant that it intends to hold a conference.<SUP>2 
Applicants are encouraged to arrange meetings with commenters at any 
time, independent of OTS involvement. Such meetings will not, however, 
suspend the time period for automatic approval.
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    \2\  This requirement is currently found at 12 CFR 516.2(c)(6). 
Since the proposed rule would include this provision at 
Sec. 516.5(b)(2), Sec. 516.2(c)(6) would be deleted. We note that 
the OTS also may extend the time for review under 12 CFR 516.2 (e) 
and (f).
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Conforming Revisions

    The proposed rule would include conforming revisions to various 
other regulations. These changes are summarized below.
    Section 543.2 would be revised to reflect the relocation of the 
public comment procedures to Part 516. In addition, the public notice 
procedures at paragraph (d)(1) would be revised to require an applicant 
to publish the notice of the filing of an application for permission to 
organize no earlier than three days before and no later than the date 
of filing of the application. Paragraphs (c) and (d)(4) would be 
revised to reflect the fact that applications will no longer be filed 
before the publication of the public notice. Paragraph (d)(3) would be 
revised to delete the requirement that OTS must provide a notice of the 
filing of an application to persons who have filed a request for such 
notice. This section is duplicative of the requirement set forth at 
Sec. 563e.6. Currently, 543.2(d)(3) also requires OTS to notify the 
state official who supervises savings associations in the state where 
the new association will be located. This notification requirement 
would be retained.
    Paragraph (h)(1) would be revised to clarify that public notice and 
comment procedures, conference procedures, and approval conditions 
otherwise applicable to applications to organize federal associations 
would not apply to applications to organize interim federal 
associations. Applications that accompany the organization of the 
federal interim association, for example, merger applications or 
holding company applications, would continue to be subject to the 
requirements set forth under the applicable merger or holding company 
regulations. A similar revision would be made to section 552.2-2(a), 
which governs applications to organize interim federal stock savings 
associations.
    Section 545.92 governs the establishment of branch offices by 
federal associations. This section currently incorporates the comment 
and oral argument procedures at Sec. 543.2 (e) and (f). It also cross-
references additional procedures from Sec. 543.2 (c) and (d) that 
address the amendment of applications, the publication of public 
notices, and public inspection procedures. Rather than require the 
reader to refer to two different regulations to determine the 
procedures that apply to branch office applications, proposed 
Sec. 545.92 would refer to the new comment procedures at Sec. 516.5, 
and would restate in full appropriate additional procedures contained 
in existing Sec. 543.2 (c) and (d).
    The current procedures for branch applications that are subject to 
standard treatment under Sec. 545.92 require the publication of a 
public notice within 10 days after OTS notifies the association that 
the application is complete. These procedures also state that such 
applications may, under certain circumstances, be deemed to be approved 
within 30 days of this OTS notification. Because these procedures would 
not accommodate the proposed 25-day public comment period, the OTS 
proposes to require the savings association to publish the public 
notice of all branch applications or notices no earlier than three days 
before and no later than the date of the filing of the application.
    Section 545.95 addresses changes of permanent locations and 
redesignations of home and branch offices of federal associations. The 
current rule requires an applicant to post a notice of the application 
for 17 days from the date of publication of the newspaper notice--a 
period that is equal to the extended comment period under current 12 
CFR 543.2(e)(1). The proposed rule would expand the time period for 
posting to 25 days to more closely track the revised comment period. 
The proposed rule would also update existing cross-references to 
Sec. 545.92 procedures.
    Section 552.2-1 governs procedures for the organization of federal 
stock associations. Currently, this regulation incorporates 
Sec. 543.2(a) through (f) by reference. Rather than refer the reader to 
two regulations to determine the proper procedures for these 
applications, proposed Sec. 552.2-1 would refer to the new comment 
procedures at Sec. 516.5, and would restate in full any appropriate 
additional procedures contained at existing Sec. 543.2(a) through (d). 
As in Sec. 543.2, the public notice procedures contained in this 
section would be revised to require an applicant to publish notice of 
the filing of the application to organize no earlier than three days 
before, and no later than the date of filing of the application.
    Sections 556.5 (policy statement on branching by federal savings 
associations) and 563.22 (merger consolidation, purchase or sale of 
assets, or assumption of liabilities) would be revised to include 
appropriate citations to the new comment procedures at Sec. 516.5, 
rather than the existing procedures at Sec. 543.2.
    The OTS invites comment on all aspects of the proposal.

III. Executive Order 12866

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

IV. Regulatory Flexibility Act Analysis

    Pursuant to section 605(b) of the Regulatory Flexibility Act, the 
OTS certifies that this proposed rule will not have a significant 
impact on a substantial number of small entities. The proposed rule 
should enable the OTS to process applications received from all 
applicants, including small savings associations, and other small 
businesses, more expeditiously. It also allows all entities, including 
small entities, a longer period in which to submit comments on 
applications filed by savings associations.

V. Paperwork Reduction Act of 1995

    The information collection requirements contained in this rule are 
found at 12 CFR 516.5, 543.2, 545.92, 545.95, 552.2-1, and 563.22. All 
of the collections of information, except those found in Sec. 516.5, 
have been previously approved by the Office of Management and Budget 
and the burden under them remains unchanged under this rule

[[Page 17113]]

(OMB Control Nos. 1550-0005, 1550-0006, and 1550-0016). The 
requirements in new Sec. 516.5 were previously found in several of the 
sections mentioned above. New Sec. 516.5 does not add any additional 
burden and will be added to the approved packages under OMB Control 
Nos. 1550-0005, 1550-0006, 1550-0015 and 1550-0032 by inventory 
correction worksheet at the final rule stage.
    Comments on all aspects of the information collections should be 
sent to the Office of Management and Budget, Paperwork Reduction 
Project (1550), Washington, D.C. 20503 with copies to the OTS, 1700 G 
Street, NW., Washington, D.C. 20552.
    The OTS invites comments on:
    (1) Whether the collections of information are necessary for the 
proper performance of the agency's functions, including whether the 
information has practical utility;
    (2) The accuracy of the agency's estimate of the burden of the 
information collections;
    (3) Ways to enhance the quality, utility, and clarity of the 
information to be collected; and
    (4) Ways to minimize the burden of the information collection 
including the use of automated collection techniques or other forms of 
information technology.
    Respondents/recordkeepers are not required to respond to the 
collections of information unless they display a currently valid OMB 
control number.

VI. Unfunded Mandates Act of 1995

    Section 202 of the Unfunded Mandates Reform Act of 1995, Pub. L. 
104-4 (Unfunded Mandates Act), requires that an agency prepare a 
budgetary impact statement before promulgating a rule that includes a 
federal mandate that may result in expenditure by state, local, and 
tribal governments, in the aggregate, or by the private sector, of $100 
million or more in any one year. If a budgetary impact statement is 
required, section 205 of the Unfunded Mandates Act also requires an 
agency to identify and consider a reasonable number of regulatory 
alternatives before promulgating a rule. As discussed in the preamble, 
this proposed rule simplifies existing procedures and should reduce 
regulatory burden. The OTS has determined that the proposed rule will 
not result in expenditures by state, local or tribal governments or by 
the private sector of $100 million or more. Accordingly, this 
rulemaking is not subject to section 202 of the Unfunded Mandates Act.

List of Subjects

12 CFR Part 516

    Administrative practice and procedure, Reporting and recordkeeping 
requirements, Savings associations.

12 CFR Part 543

    Reporting and recordkeeping requirements, Savings associations.

12 CFR Part 545

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

12 CFR Part 552

    Reporting and recordkeeping requirements, Savings associations, 
Securities.

12 CFR Part 556

    Savings associations.

12 CFR Part 563

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

    Accordingly, the Office of Thrift Supervision proposes to amend 
title 12, chapter V, of the Code of Federal Regulations as set forth 
below.

PART 516--APPLICATIONS PROCESSING GUIDELINES AND PROCEDURES

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

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


Sec. 516.2  [Amended]

    2. Section 516.2(c)(6) is removed and reserved.
    3. Section 516.5 is added to read as follows:


Sec. 516.5  Comment procedures.

    (a) Comments--(1) General. If a regulation incorporates the 
procedures set forth in this section, public comments in connection 
with an application or notice (collectively referred to as 
applications) shall be submitted only as provided in this paragraph 
(a), or as otherwise requested by the OTS. A comment includes any 
written submission in favor of, or in opposition to, the application.
    (2) Submission. Any person may file a written comment with the OTS 
within 25 days after an application is published for public comment. 
The OTS will not consider any comment received after the 25-day comment 
period, unless the commenter demonstrates good cause why it was unable 
to submit a timely comment, and the OTS concludes that the comment 
addresses a significant regulatory concern and will assist the agency 
in the disposition of the application.
    (3) Content. To be considered by the OTS, a comment must recite all 
relevant facts, including any economic or financial data, supporting 
the commenter's position. Comments in opposition must address at least 
one of the regulatory bases for denial, as set forth in the applicable 
regulations, recite relevant facts and supporting data addressing these 
relevant bases, and address any adverse effects on the commenter or the 
community that may result from the approval of the application.
    (b) Conference. (1) The OTS may arrange a conference between the 
applicant commenter(s), and other persons, if the OTS concludes that a 
conference will assist in the disposition of the application or in the 
resolution of any issues raised by the application. The OTS must 
provide the applicant and commenter(s) with at least 10 days notice of 
the time, location, and procedures to be followed at the conference.
    (2) Application time frames. If the OTS has timely notified the 
applicant that it intends to hold a conference under paragraph (b) of 
this section, the time period for automatic approval of the application 
under Sec. 516.2 shall be temporarily suspended until a record is 
developed sufficient to support a determination on the issues raised in 
the comments.

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

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

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

    5. In Sec. 543.2, paragraph (c) is removed and reserved and 
paragraphs (d)(1), (d)(3), (d)(4), (e), (f) and (h)(1) are revised to 
read as follows:


Sec. 543.2  Application for permission to organize.

* * * * *
    (d) * * * (1) The applicant shall publish a public notice of the 
application to organize no earlier than three days before and no later 
than the date of filing of the application. The applicant shall publish 
the notice in a newspaper printed in the English language and having a 
general circulation in the community in which

[[Page 17114]]

the home office of the new association is to be located. If the OTS 
determines that the primary language of a significant number of adult 
residents of the community is a language other than English, the OTS 
may require that notice also be given simultaneously in the appropriate 
language(s).
* * * * *
    (3) The OTS shall give notice of the application to the State 
official who supervises savings associations in the State in which the 
new association is to be located.
    (4) The application and all related communications may be inspected 
by any person at the Regional Office during regular business hours, 
unless such information is exempt from public disclosure.
    (e) Submission of comments. Comments on the application shall be 
submitted in accordance with the procedures specified in Sec. 516.5(a) 
of this chapter.
    (f) Conference procedures. The OTS may arrange a conference in 
accordance with Sec. 516.5(b) of this chapter.
* * * * *
    (h) * * * (1) Applications for permission to organize an interim 
Federal savings association are not subject to public notice and 
comment procedures, and conference procedures, and are not subject to 
paragraph (g)(3) of this section.
* * * * *

PART 545--OPERATIONS

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

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

    7. In Sec. 545.92, paragraphs (d), (e) heading, (e)(2), and (f) are 
revised, and paragraphs (i) and (j) are removed to read as follows:


Sec. 545.92  Branch offices.

* * * * *
    (d) Processing of applications/notices. Processing of applications 
and notices shall be subject to the following procedures:
    (1) Publication. (i) A Federal savings association shall publish a 
public notice of the branch application or notice no earlier than three 
days before and no later than the date of the filing of the application 
or notice. The applicant shall publish the notice in a newspaper 
printed in the English language and having a general circulation in the 
community in which the home office of the association is located and in 
the community to be served by the branch office. If the OTS determines 
that the primary language of a significant number of adult residents of 
either community is a language other than English, the OTS may require 
that notice also be given simultaneously in the appropriate language.
    (ii) The public notice shall be in substantially the following 
form:

NOTICE OF ESTABLISHMENT OF A BRANCH OFFICE OR CHANGE OF LOCATION OF AN 
OFFICE

    This is to inform you that [Association Corporate Title, City, 
Town, State and Zip Code] is filing [an] [application/notice] with 
the Office of Thrift Supervision (``OTS'') for permission to 
establish a branch office to be located [address of branch office]. 
This [application/notice] is filed under OTS regulations at 12 CFR 
545.92 or 12 CFR 545.95.
    Anyone may comment in favor of, or in opposition to, the 
[application/notice] within 25 days of the publication of this 
notice. To be considered by the OTS, your comments must be filed in 
writing within this time period. Your comment must recite all 
relevant facts, including any economic or financial data, supporting 
your position. If you submit a comment in opposition, you must 
address at least one of the regulatory bases for denial, as set 
forth in the applicable regulations, recite relevant facts and 
supporting data addressing these bases, and address any adverse 
effects on you or the community that may result from the approval of 
the [application/notice].
    You must send three copies of your comment to the Regional 
Director, [insert name and address of the OTS Regional Office where 
the application/notice is filed]. You may view the [application/
notice] and all comments filed at the OTS Regional Office, except to 
the extent that these materials may be exempt by law from 
disclosure. If you have any questions concerning these procedures, 
contact the OTS Regional Office.

    (iii) Promptly after publication of the public notice, the savings 
association shall transmit copies of the public notice and publisher's 
affidavit of publication to the OTS.
    (iv) The application or notice and all related communications may 
be inspected by any person at the Regional Office during regular 
business hours, unless such information is exempt from public 
disclosure.
    (2) Submission of application or notice. A Federal savings 
association must comply with Sec. 556.5 of this chapter and shall file 
the application required under Sec. 516.3(b)(2) of this chapter or the 
notice required under Sec. 516.3(a) of this chapter within three days 
of the publication of the public notice under paragraph (d)(1) of this 
section.
    (3) Submission of comments. Comments on the application or notice 
shall be submitted in accordance with the procedures specified in 
Sec. 516.5(a) of this chapter.
    (4) Conference procedures. The OTS may arrange a conference in 
accordance with Sec. 516.5(b) of this chapter.
    (e) Approval of branch application. * * *
    (2) An application shall be deemed to be approved 30 days after 
notification that the application is complete, unless the OTS notifies 
the savings association that it intends to hold a conference under the 
procedures described in Sec. 516.5(b) of this chapter, or that the OTS 
objects to the application on the grounds set forth under paragraph 
(e)(1) of this section.
    (f) Approval of branch notice. A notice filed by a Federal savings 
association that qualifies for expedited treatment shall be deemed to 
be approved 30 days after its filing with the OTS, unless the OTS 
notifies the savings association that it intends to hold a conference 
under the procedures described in Sec. 516.5(b) of this chapter; the 
OTS objects to the application on the grounds set forth in paragraph 
(e)(1) of this section; or the OTS determines to process the filing as 
an application under Sec. 516.3(a)(3) of this chapter. If the OTS 
notifies the savings association that it intends to hold a conference, 
the savings association may not open a branch until the OTS provides a 
notification of its approval.
* * * * *
    8. In Sec. 545.95, paragraphs (a) and (b)(1)(ii) are revised to 
read as follows:


Sec. 545.95  Change of office location and redesignation of offices.

    (a) Eligibility. A Federal savings association may change the 
permanent location of its home office or any approved branch office, or 
redesignate a home or branch office subject to the appropriate 
expedited or standard treatment procedures for establishing a branch 
office set forth in Sec. 545.92 of this part.
    (b) * * *
    (1) * * *
    (ii) The applicant shall post notice of the application for 25 days 
from the date of first publication in a prominent location in the 
office to be closed or redesignated.
* * * * *

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

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

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

    10. Section 552.2-1 is amended by revising paragraph (a) to read as 
follows:

[[Page 17115]]

Sec. 552.2-1  Procedure for organization of Federal stock association.

    (a) Application for permission to organize. Applicants may file an 
application for permission to organize a Federal stock association in 
accordance with this section. Recommendations by employees of the OTS 
regarding applications for permission to organize are privileged, 
confidential, and subject to Sec. 510.5 (b) and (c) of this chapter. 
The processing of an application under this section shall be subject to 
the following procedures:
    (1) Publication. (i) The applicant shall publish a public notice of 
the application no earlier than three days before and no later than the 
date of filing of the application. The applicant shall publish the 
notice in a newspaper printed in the English language and having a 
general circulation in the community in which the home office of the 
new association is to be located. If the OTS determines that the 
primary language of a significant number of adult residents of either 
community is a language other than English, the OTS may require that 
notice also be given simultaneously in the appropriate language(s).
    (ii) Promptly after publication of the public notice, the applicant 
shall transmit copies of the public notice and publisher's affidavit of 
publication to the OTS in the same manner as the original filing.
    (iii) The application and all related communications may be 
inspected by any person at the Regional Office during regular business 
hours, unless such information is exempt from public disclosure.
    (2) Notification to interested parties. The OTS shall give notice 
of the application to the State official who supervises savings 
associations in the State in which the new association is to be 
located.
    (3) Submission of comments. Comments on the application shall be 
submitted in accordance with the procedures specified in Sec. 516.5(a) 
of this chapter.
    (4) Conference procedures. The OTS may arrange a conference in 
accordance with Sec. 516.5(b) of this chapter.
* * * * *
    11. Section 552.2-2 is amended by revising paragraph (a) to read as 
follows:


Sec. 552.2-2  Procedures for organization of interim Federal stock 
association.

    (a) Applications for permission to organize an interim Federal 
savings association are not subject to public notice and comment 
procedures, and conference procedures, and are not subject to 
Sec. 552.2-1(b)(3) of this part.
* * * * *

PART 556--STATEMENTS OF POLICY

    12. The authority citation for part 556 continues to read as 
follows:

    Authority: 5 U.S.C. 552, 559; 12 U.S.C. 1464, 1701j-3; 15 U.S.C. 
1693-1693r.

    13. Section 556.5 is amended by revising paragraph (c)(4) to read 
as follows:


Sec. 556.5  Branching by Federal savings associations.

* * * * *
    (c) * * *
    (4) Comment procedures. Comments on applications for branches must 
be submitted in writing and factually documented. Comment procedures 
are set forth in Sec. 516.5 of this chapter, part 563e of this chapter, 
the OTS Application Processing Handbook, and other supervisory guidance 
issued by the OTS.
* * * * *

PART 563--OPERATIONS

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

    Authority: 12 U.S.C. 375b, 1462, 1462a, 1463, 1464, 1467a, 1468, 
1817, 1820, 1828, 3806; 42 U.S.C. 4106.

    15. Section 563.22 is amended by revising paragraphs (e)(4) and 
(f)(3) to read as follows:


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

* * * * *
    (e) * * *
    (4) Applications submitted under paragraph (a) of this section 
shall be subject to the comment procedures specified in Sec. 516.5(a) 
of this chapter, except that comments may be submitted at any time 
during the period described in paragraph (e)(2) of this section. The 
OTS may arrange a conference in accordance with Sec. 516.5(b) of this 
chapter.
* * * * *
    (f) * * *
    (3) The OTS has notified the savings association that it intends to 
hold a conference as described in Sec. 516.5(b) of this chapter;
* * * * *
    Dated: March 31, 1997.

    By the Office of Thrift Supervision.
Nicolas P. Retsinas,
Director.
[FR Doc. 97-8815 Filed 4-8-97; 8:45 am]
BILLING CODE 6720-01-P


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