plication may be processed as provided therein.

(iii) In addition to permitting special treatment under subparagraph (2) of paragraph (b) of § 545.14 of this chapter for applications for branches to serve certain low-income, innercity areas, the Board may permit the consideration and processing of branch office applications for all Federal associations servicing particular geographical areas, e.g., State, county, or city, upon recommendation by the Supervisory Agent that the eligibility requirement of subdivision (i) of subparagraph (1) of § 545.14 (b) of this chapter could cause a competitive hardship to such associations. Following approval by the Board of such a recommendation by a Supervisory Agent, branch office applications from such Federal associations may be considered and processed with such frequency as the Board may determine to be appropriate for the particular geographical area.

[Subparagraph (4) amended 6-2-71; 6-22-71; 6-30-72]

(c) Satellite offices. The provisions of paragraphs (a), (b)(1), and (d) of this section relating to branch offices and to applications for permission to establish branch offices shall be applicable also to satellite offices and to applications for permission to establish satellite offices.

[7-26-72; 9-21-72.]

(d) Name of branch office or mobile facility. In order to minimize public confusion and prevent unfair competition, the Board may condition its approval of an application to establish or maintain a branch office or mobile facility, to be located within the market area of another Federal association having a name similar to the name of the parent association of such branch office or mobile facility, by prescribing the name to be used for such branch office or mobile facility and the manner in which the presence of such branch office or mobile facility in such area may be advertised or made known to the public. In the case of a merger or other acquisition, the Board will generally permit the resulting association to use as a name for any branch office or mobile facility a name (without the word "Association") that will preserve the identity of the merging association, such name to be followed by the words "a Division of [the name of the resulting association]".

[Paragraph (d) added eff. 9-21-72.]

[9-26-70; 2-1-71; 3-17-71; 6-2-71; 6-22-71; 8-23-71; 10-20-71; 2-25-72; 6-30-72; 7-26-72; 9-21-72.]

.1 See also ¶854.

2 [Ed. Note] [There follows a Statement of Policy regarding applications for permission to establish branch

offices and mobile facilities in Illinois, set forth in FHLBB Resolution No. 73-178, dated February 7, 1973.]

The Federal Home Loan Bank Board, in considering its policy regarding applications by Federal savings and loan associations for permission to establish de novo branch offices, mobile facilities, and satellite offices in Illinois, has determined that commercial banks in Illinois are conducting affiliate operations. Accordingly, under the Board's statement of policy set out in paragraph (b)(1) of § 556.5 of the Rules and Regulations for the Federal Savings and Loan System (12 CFR 556.5(b)(1)), de novo branch offices, mobile facilities, and satellite offices of Federal associations in Illinois are now, for the first time, permitted by the Board. However, in order to effect an orderly transition, the Board hereby imposes the following limitations with respect to applications by Federal associations for permission to establish de novo branch offices, mobile facilities, and satellite offices in Illinois:

1. The Board will process and consider only such applications as are filed on or after February 1, 1973.

2. During 1973, the Board will process and consider only one such application by each association; this limitation will apply with respect to any such application filed on or before December 31, 1973. If more than one such application is filed during 1973, all but the earliest application will be returned to the applicant.

3. In connection with the approval of any such application, the Board will provide, as a condition of such approval, that the branch office, mobile facility, or satellite office applied for shall not be opened prior to July 1, 1973.

.3-.50 [Reserved].

Digests of opinions concerning prior forms of the regulation .51 An association that has received approval of an inner-city branch would be eligible to file a conventional branch application prior to the expiration of the waiting period specified in § 545.14 (b) (2) (12 months from publication of the notice of application) if the Board elected to waive such period. The intention of the statement of policy is to encourage inner-city branching by allowing waiver of the usual eligibility criteria in § 545.14(b)(2) and (4) for such branch applications. This "special treatment" applies both to inner-city applications and to applications that would normally be ineligible under the waiting requirements of § 545.14(b) (2) and (4) by virtue of a pending or recently approved inner-city branch application. Op. G.C., 7/20/70.

¶ 986

§ 556.6 Establishment of agencies.

(a) As a general policy, the Board will not. approve the establishment of agencies by Federal associations under Federal Regulation 545.15 unless the business to be transacted at the agency will be limited to the origination of mortgage loans, in addition to the loan servicing functions which § 545.15 expressly authorizes, thereby precluding the transaction of any savings account business at the agency office.

(b) In extremely exceptional cases, however, where community need for such service is established, the Board is willing to permit the additional agency function of receiving payments on existing savings accounts. The Board will consider approval of an agency which may receive such savings payments only in cases where the proposed agency is to be

497-242 - 73 - 2

located in a small town situated in an area that is sparsely settled and considerably distant from existing associations. With rare exceptions, such an agency will not be approved if the community involved is of such size and nature that the establishment of a branch office or the organization of a local association would seem economically feasible or if any savings and loan facilities insured by the Federal Savings and Loan Insurance Corporation are already located in such community.

(c) It is also the Board's policy not to approve the establishment of an agency in a state other than that in which the home office of the association is located.

(d) All agency approvals will be limited to a 5-year period in order to afford the Board an opportunity at the end of such period to reappraise the community situation in all pertinent aspects.

[As published in Federal Register 12-21-67.]

1000

¶ 1001

DEFINITIONS

SEC. 401. As used in this title

(a) The term "insured institution" means an institution whose accounts are insured under this title.

(b) The term "insured member" means an individual, partnership, association, or corporation which holds an insured account. Each officer, employee, or agent of the United States, of any State of the United States, of the District of Columbia, of any Territory of the United States, of Puerto Rico, of the Virgin Islands, of any county, of any municipality, or of any political subdivision thereof, herein called "public unit", having official custody of public funds and lawfully investing the same in an insured institution shall, for the purpose of determining the amount of the insured account, be deemed an insured member in such custodial capacity separate and distinct from any other officer, employee, or agent of the same or any public unit having official custody of public funds and lawfully investing the same in the same insured institution in custodial capacity. Funds held in fiduciary capacity, when invested in an insured institution, shall be insured in an amount not to exceed $20,000 for each trust estate, and notwithstanding any other provisions of this Act, such insurance shall be separate from and additional to that covering other investments by the owners of such trust funds or the beneficiaries of such trust estates. Notwithstanding any other provision of law, two persons who are husband and wife shall have, with respect to accounts in an insured institution which are community property of such husband and wife and to the extent that such accounts are community property, not to exceed $20,000 of insurance with respect to such an account or accounts in the sole name of the husband, not to exceed $20,000 of insurance with respect to such an account or accounts in the sole name of the wife, and not to exceed $20,000 of insurance with respect to such an account or accounts in the sole name

of both: Provided, That in no event shall this sentence increase to an amount which is greater than the total of the amounts hereinbefore set forth in this sentence the aggregate of the insurance which such husband and wife may have under this title with respect to (1) any account or accounts in such institution in the sole name of either of them or in the sole name: of both, and (2) any other account or account in such institution to the extent that such other account or accounts would, in the absence of this sentence, be required to be included in determining the amount of the individual insurance of such husband or of such wife under subsection (a) of section 405.1

(c) The term "insured account" means a share, certificate, or deposit account of a type approved by the Federal Savings and Loan Insurance Corporation which is held by an insured member in an insured institution and which is insured under the provisions of this title.

(d) The term "default" means an adjudication or other official determination of a court of competent jurisdiction or other public authority pursuant to which a conservator, receiver, or other legal custodian is appointed for an insured institution for the purpose of liquidation.

1002

CREATION OF FEDERAL SAVINGS AND LOAN INSURANCE CORPORATION

SEC. 402. (a) There is hereby created a Federal Savings and Loan Insurance Corporation (hereinafter referred to as the "Corporation"), which shall insure the accounts of institutions eligible for insurance as hereinafter

1 Amendments to "$20,000" (from former "$15,000") by Public Law 91-151, 83 Stat. 375, December 23, 1969. The amendments are not applicable to any claim arising out of a default, as defined in section 401(d) of the National Housing Act, where the appointment of a conservator, receiver, or other legal custodian as set forth in that section becomes effective prior to December 23, 1969 (P.L. 91-151, 83 Stat. 376).