Opinion ID: 547464
Heading Depth: 2
Heading Rank: 3

Heading: Role of the Bank Board

Text: 21 The Bank Board is the overseer of the entire Federal Home Loan Bank System, 47 and as such plays an important role in the conversion process. Congress has explicitly stated that no conversion, whether standard, voluntary or modified, may occur unless the converting association complies with the rules and regulations of the Bank Board. 48 No mutual association may convert to the stock form without the Bank Board's consent. 49 22 In its role as watchdog the Bank Board has promulgated numerous regulations which reflect an extended effort on the part of the [Bank] Board to develop a conversion procedure that is equitable to account holders and [FSLIC] insured institutions and which functions effectively as a capital-raising tool. 50 Compliance with the Bank Board's substantive and procedural conversion application requirements, however, does not always lead to an equitable result. Therefore, the Bank Board regulations repeatedly refer to the role of the Bank Board's discretion in the conversion process. 51 The Bank Board has the power to deny a conversion application even if it complies with all substantive and procedural requirements, and will do so if the proposed conversion would not be in the best interests of the association, its members, or the general public. 52 23 The power of the Bank Board to approve or disapprove a conversion application is not absolute. Congress has provided mutual associations and their members with a procedure to appeal a final decision of the Bank Board. 53 The Bank Board has promulgated regulations describing this appellate process in detail. 54 24 Once the Bank Board has decided not to approve a mutual association's plan of conversion, a party aggrieved by this decision may file a petition requesting relief in a court of appeals of the United States. 55 The petition must be filed in the court of appeals for the circuit in which the mutual association has its principal place of business or the circuit in which the aggrieved party resides, and must be filed within 30 days of the Bank Board's decision. 56 The clerk of the court receiving the aggrieved party's petition sends a copy to the Bank Board. 57 The Bank Board then returns to the clerk the record of its administrative proceeding. 58 Upon the filing of the administrative record, 59 the court of appeals obtains exclusive jurisdiction over the matter, and has the power to affirm, modify, terminate, or set aside in whole or in part the Bank Board's final decision not to authorize the conversion. 60 The judgment entered by the court of appeals is final, unless subject to review by the Supreme Court upon grant of a writ of certiorari. 61