1350

Sec.

PART 581-DEFINITIONS

§ 582.1 Branch offices.

(a) General provisions. (1) An association shall not establish a branch office in the District of Columbia without prior written approval by the Board and an association which is incorporated or organized under the laws of the District of Columbia shall not establish a branch office elsewhere without prior written approval by the Board. Determination by an association to make an application for permission to establish a branch office shall be evidenced by a certification from such association's President and Secretary to the effect that

such association's board of directors has duly authorized by resolution the making and filing of such application. The making, filing, and processing of, and action on, an application for permission to establish a branch office shall be in accordance with this section. Decisions on all such applications will be made by the Board. In the event of approval of such an application, the Board may require as a condition of approval that the branch office be opened within such period, not less than 6 months, as may be fixed by the Board.

[Subparagraph (1) revised eff. 8-2-71]

(2) All requests by an association for advice or instruction with respect to any matter arising under this section shall be addressed to the Board's Supervisory Agent. All recommendations by Supervisory Agents and by officers and employees of the Board in connection with branch office applications shall be deemed to be privileged and confidential and subject to the provisions of § 505.6 of this chapter.

(b) Eligibility. (1) Except as provided in subparagraph (2) of this paragraph, an association shall be eligible to have an application for permission to establish a branch office (including an application for a limited facility branch office) considered and processed only if, at the date on which such application is filed with the Board:

(i) The association does not have on file with the Board any other such application, excluding any application as to which more than 4 months have elapsed since the date of publication of notice thereof; except that the limitations of this subdivision (i) shall not prohibit the consideration and processing at the same time of both an application in which the applicant proposes, under the provisions of subparagraph (1) of paragraph (j) of this section, that the office applied for be a limited facility branch office and an application in which it does not so propose;

(ii) More than 12 months have elapsed since the date of disapproval by the Board of an application to serve any substantial part of the same savings service area, as determined by the Supervisory Agent, but this requirement shall be applicable only if the association has filed two applications to serve any substantial part of such savings service area within the 12 months preceding such date of disapproval and both such applications have been disapproved by the Board;

(iii) The association submits in support of its application evidence giving reasonable assurance, in the judgment of the Supervisory Agent, that the proposed branch office, if approved, will be opened within the following

§ 582.1

applicable time period after the date of approval by the Board:

(a) 12 months, except as otherwise provided in (b) and (c) of this subdivision;

(b) 24 months, if the proposed branch office is to be redesignated as the association's home office; or

(c) 36 months, if the proposed branch office is to be located in a shopping center having not less than 400,000 square feet of shopping space.

(2) The Board may, with respect to particular applications or classes of applications, determine to consider and process such applications without regard to the eligibility requirement contained in subdivision (i) of subparagraph (1) of this paragraph.

[Paragraph (b) revised 6–2–71; 6-30-72; 12-22-72]

(c) Application form; supporting information. An application for permission to establish a branch office shall be in form prescribed by the Board. Such application and prescribed "Outline of Information To Be Submitted in Support of an Application for Permission to Establish a Branch Office" may be obtained from the Supervisory Agent. Information shall be furnished in support of the application in accordance with such Outline designed to show: (1) There will be at the time the branch is opened a necessity for the proposed branch office in the community to be served by it; (2) there is a reasonable probability of usefulness and success of the proposed branch office; and (3) the proposed branch office can be established without undue injury to properly conducted existing local thrift and home-financing institutions. An application shall be deemed to be complete when the foregoing requirements of this paragraph (c) have been met.

[Paragraph (c) revised 8-23-71; 6-30-72]

(d) Filing of application; proposed budget. An application for permission to establish a branch office shall be filed with the Board by delivering four copies thereof, together with four copies of all supporting information, to the Supervisory Agent.

[Paragraph (d) revised eff. 8–23-71]

(e) Amendment of application; filing of additional information. After a complete application for permission to establish a branch office has been filed with the Board, and prior to the date of advice by the Supervisory Agent to the applicant to publish notice of the filing of the application pursuant to paragraph (g) of this section, the applicant may file additional information in support of the application and may amend the application; after the date of such advice, the applicant may not amend the ap

plication or file any additional supporting information unless requested to do so by the Supervisory Agent or otherwise by or on behalf of the Board.

(f) Supervisory objection. No application for permission to establish a branch office shall be approved if, in the opinion of the Board, the policies, condition, or operation of the applicant association afford a basis for supervisory objection to the application.

(g) Processing of application by Supervisory Agent; public notice; inspection. (1) Upon determination by the Supervisory Agent that an application for permission to establish a branch office is complete, that the association is eligible, and if it has been preliminarily determined that there is no basis for supervisory objection to approval of the application, the Supervisory Agent shall advise the applicant, in writing, to publish, within 15 days from the date of such advice, in a newspaper printed in the English language and having general circulation in the community to be served by the proposed branch office, a notice of the filing of the application in the following form:

NOTICE OF FILING OF BRANCH OFFICE
APPLICATION

Notice is hereby given that, pursuant to the provisions of § 582.1 of Chapter V (E), Title 12 (Banks and Banking) of the Code of Federal Regulations, the Association

has filed an application with the Federal Home Loan Bank Board for permission to establish a branch office at, or in the immediate vicinity of (Street address) (City) The application has been (State) delivered to the office of the Supervisory Agent of the said Board, located at the Federal Home Loan Bank of

(City)

(City)

(Street address) Any person may file communica

tions, including briefs, in favor or in protest of said application at the aforesaid office of the Supervisory Agent within 10 days (or within 30 days if advice is filed within the first 10 days stating that more time is needed to furnish additional information) after the date of this publication. Four copies of any communication should be filed. The application, together with all communications in favor or in protest thereof, are available for inspection by any person at the aforesaid office of the Supervisory Agent.

(Association)

(2) Within 10 days (or within 30 days if advice is filed within the first 10 days stating that more time is needed to furnish additional information) after the date of publication of said notice, any person may file, at the office of the Supervisory Agent designated in the notice, communications, including briefs, in favor or in protest of the application. In the event any communication is filed in protest of the application, the applicant may file infor

mation relevant to such protest within 15 days after the last date for filing communications pursuant to the preceding sentence or waive the right to file such information. Information may be submitted in connection with an application only as provided in this section, unless additional information is requested by the Supervisory Agent or otherwise by or on behalf of the Board. Four copies shall be furnished of any communications or information filed pursuant to this subparagraph.

(3) Promptly after publication of the notice, the applicant shall transmit two copies thereof to the Superviory Agent accompanied by two copies of a publisher's affidavit of publication.

(4) The application, together with all communications in favor or in protest thereof, shall be available at the office of the Supervisory Agent during regular working hours for inspection by any person after the issuance to the applicant of advice to publish a notice. Prior thereto, the application and the fact that it has been filed shall be held as confidential.

(h) Oral argument.

(1) General provisions. Oral argument on the merits of any application filed pursuant to this section shall be heard upon the written request of an applicant or of any person who has filed a communication in protest of an application within the time specified in subparagraph (2) of paragraph (g) of this section, if such request is received by the Supervisory Agent within 10 days after the expiration. of the time specified in said subparagraph for filing communications in protest of an application. Such oral argument shall also be heard if the Supervisory Agent, after review of the application and other pertinent information, considers it desirable. When oral argument is to be held, the Supervisory Agent shall mail a notice, fixing the time and place thereof, to the applicant and to all persons who have filed a communication in favor or in protest of the application. Such oral argument shall be scheduled not less than 10 days after the mailing of such notice.

(2) Procedure. The Supervisory Agent, or any other person designated by the Board, shall have authority to hear oral argument and determine all matters relating to the conduct of such oral argument. The oral argument with respect to any such application may be made in person or by authorized representatives, but the oral argument should be based on written information which has been filed in connection with the application. A reasonable time shall be allowed for oral argument, but, unless waived, not less than 1 hour shall be allowed for all oral argument against an application and not less than 1 hour shall be allowed for all argument in favor of an application. A tran

script shall be made of any oral argument and shall be included in the application file.

(i) Maintenance of branch office after consolidation, purchase of bulk assets, or merger. No association shall maintain in the District of Columbia any office of another institution which is hereafter acquired, and no association which is incorporated or organized under the laws of the District of Columbia shall maintain any office of another institution which is hereafter acquired through consolidation, purchase of bulk assets, or merger, without written approval by the Board for permission to maintain such office.

[Paragraph (i) revised eff. 8-23-71]

(j) Limited facility branch office—(1) General. In connection with any application for permission to establish a branch office by a District of Columbia association which the Board has determined does not satisfy in full the requirements of paragraph (c) of this section as to necessity and reasonable probability of usefulness and success, but such tests, in the opinion of the Board, are met to a degree which would support a limited operation of a branch office, the Board may approve the application as a limited facility branch office. Such an office, if approved by the Board, will be subject to limitations imposed by the Board as to one or more of the following:

(i) Number and type (supervisory, clerical, teller) of personnel to be utilized;

(ii) Physical size and characteristics; (iii Amount of capital investment by the applicant; and

(iv) Extent of activities.

In addition, a District of Columbia association which applies for permission to establish a branch office under this section may propose that the office be a limited facility branch office in a case where the applicant believes that the tests in paragraph (c) of this section can be met only to a degree which would support a limited operation of a branch office, and the applicant may propose one or more of the limitations to be imposed by the Board. A limited facility branch office may be advertised to the public as a branch office.

(2) Removal of limitations. Limitations imposed by the Board in the case of a limited facility branch office may be removed by the Board in whole or in part from time to time upon application by the operating association. No application for removal of limitations may be filed until a limited facility branch office has been in operation for 2 years. If and when all limitations have been removed by the Board, the limited facility branch office will become a branch office to be operated by an association

in the same manner, and subject to the same management discretion, as a branch office approved pursuant to this section.

[Paragraph (j) added eff. 8–15–72]

[Amended 3-9-70; revised 6-2-71; 8-23–71; 6-30-72; 8-15-72; 12-22-72]

¶1359a

§ 582.1-1 Satellite office.

(a) Nature of a satellite office. An office of a District of Columbia association which is not its home office or a branch office approved pursuant to § 582.1 shall be deemed to be a satellite office if it meets the requirements of a satellite office as described in this section and if it is a satellite of the association's home office or a branch office in that it is located in the primary service area, as determined by the Board or Supervisory Agent, of such home office or branch office. Any business of a District of Columbia association, as authorized by the association's board of directors, may be transacted at a satellite office.

(b) General provisions. A District of Columbia association shall not establish a satellite office without prior approval by the Board or its Supervisory Agent, as provided in this section. All requests by a District of Columbia association for advice or instructions with respect to any matter arising under this section shall be addressed to the Board's Supervisory Agent. As used in this section, the term "Supervisory Agent" means the President of the Federal Home Loan Bank of the district in which the applicant association is located or any other officer or employee of such bank designated by the Board as agent as provided in § 501.10 or § 501.11 of this chapter. All recommendations by Supervisory Agents and by officers and employees of the Board in connection with applications for permission to establish a satellite office shall be deemed to be privileged and confidential and subject to the provisions of § 505.6 of this chapter.

(c) Specific provisions. Each application for permission to establish a satellite office will be considered or processed pursuant to the provisions of this section. Approval of such an application pursuant to this section will be subject to the following provisions and any other conditions, requirements, and limitations the Board may specify in a particular case:

(1) A satellite office is a convenience facility and, except for a satellite office which meets the requirements of subdivision (v) of this subparagraph, shall be located wholly within premises principally occupied by a retail sales establishment such as a departinent store or supermarket and shall be operated in conformity with the following physical requirements:

(i) The satellite office shall be wholly in the interior of the premises and shall not be accessible by a separate outside entrance;

(ii) A satellite office shall not occupy more than 500 square feet of floor space. Provision

shall not be made for more than 4 teller stations or, in the case of a fully or partly automated satellite office, the equivalent of 4 teller stations, as determined by the Board or Supervisory Agent at time of approval;

U.S. GOVERNMENT PRINTING OFFICE: 1973 O 492-630