PART 301-INTRODUCTORY

§ 301.1

Scope.

The rules contained in this subchapter are promulgated pursuant to the provisions of the Administrative Procedure Act (60 Stat. 237), the Federal Deposit Insurance Act (12 U.S.C. 1811-1831), and other applicable laws. In accordance with the provisions of section 3(a) (2) of the Administrative Procedure Act (sec. 3(a) (2), 60 Stat. 238) they state the general course and method by which the Corporation's functions with respect to deposit insurance are channeled and determined, including the nature and requirements of formal or informal procedures available as well as forms and instructions as to the scope and contents of papers and reports. This subchapter also includes appropriate provisions with respect to rule making, adjudications, and hearings, as prescribed by law.

Proceedings by the Corporation within the meaning of this subchapter include: (a) The formulation and promulgation of rules and regulations, including amendments thereto or the repeal thereof;

(b) The disposition of applications, requests, and submittals;

(c) Formal hearings and adjudications.

§ 302.3 Formulation of rules.

After consideration of all revelant matter presented, the Special Committee will submit its recommendations to the board of directors and, in collaboration with appropriate Divisions, will prepare drafts of any proposed rules or amendments. The board of directors will take such action thereon as it deems appropriate and in any rule adopted will incorporate therein a concise general statement of its basis and purpose.

[15 F. R. 8628, Dec. 6, 1950, as amended at 19 F. R. 1666, Mar. 27, 1954]

§ 302.6 Exceptions.

Whenever the Corporation finds that notice of, and public participation in, rule making is impracticable, unnecessary, or contrary to the public interest, or there is good cause why the effective date of any rule should not be deferred for thirty (30) days, the provisions of §§ 302.1, 302.2, and 302.5 shall not apply; and any such rule when published will incorporate the finding and a brief statement of the reasons therefor.

§ 302.7 Amendment and repeal.

The right to alter, amend, or repeal the whole or any part of any rule except as otherwise provided by law, is expressly reserved.

PART 303-APPLICATIONS, REQUESTS, AND SUBMITTALS

Sec. 303.1

303.2

303.3

303.4

303.5

303.6

303.7

803.8

Application by nonmember bank for deposit insurance.

Application by State nonmember insured bank to establish a branch. Application by State nonmember insured bank to move main office or branch. Application by insured State nonmember bank to reduce or retire capital. Application for conversion, merger, consolidation, assumption and sale of asset transactions. Application by State nonmember insured bank to extend its corporate or charter powers. Application to continue or resume insured status.

Application for use of other official sign or for exemption from advertising requirements.

303.10

Procedure on applications. 303.11 Notice of disposition of application. AUTHORITY: §§ 303.1 to 303.11 issued under sec. 9, 64 Stat. 881; 12 U. S. C. 1819. Interpret or apply secs. 5, 6, 8, 18, 19, 64 Stat. 876, 879, 891, 893; 12 U. S. C. 1815, 1816, 1818, 1828, 1829.

SOURCE: 303.1 to 303.11 appear at 15 F. R. 8628, Dec. 6, 1950, except as otherwise noted. § 303.1 Application by nonmember bank for deposit insurance. Application for deposit insurance by an existing or proposed State nonmember bank should be filed with the Supervising Examiner of the Federal Deposit Insurance District in which the bank or

1A nonmember bank is a bank which is not a member of the Federal Reserve System.

proposed bank is or will be located. Any such application (a) by an existing bank must be accompanied by separate applications for the consent of the Corporation to the continued operation of each branch which it proposes to continue to operate; (b) by a proposed bank must be accompanied by a separate application for the consent of the Corporation to establish and operate each proposed branch. The appropriate forms of application and instructions for completing the same may be obtained upon request from the Supervising Examiner of the District in which the application originates. (See Part 304 of this subchapter for list of forms and instructions.)

[15 F. R. 8628, Dec. 6, 1950, as amended at 19 F. R. 1666. Mar. 27, 1954)

§ 303.2 Application by State nonmem

ber insured bank to establish a branch.2

Application by a State nonmember insured bank (except a District bank) to establish and operate a new branch should be filed with the Supervising Examiner of the Federal Deposit Insurance District in which the bank is located. The appropriate form of application and instructions for completing the same may be obtained upon request from the Supervising Examiner of the District in which the application originates. (See Part 304 of this subchapter for list of forms and instructions.) [15 F. R. 8628, Dec. 6, 1950, as amended at 19 F. R. 1666, Mar. 27, 1954]

may be obtained upon request from the Supervising Examiner of the District in which the application originates. (See Part 304 of this subchapter for list of forms and instructions.)

§ 303.4 Application by insured State nonmember bank to reduce or retire capital.

Application for the consent of the Corporation to the reduction in the amount, or retirement of any part, of the common or preferred capital stock, or retirement of any part of the capital notes or debentures, of an insured State nonmember bank (except a District bank) should be filed with the Supervising Examiner of the Federal Deposit Insurance District in which the bank is located. The appropriate form of application and instructions for completing the same may be obtained upon request from the Supervising Examiner of the District in which the application originates. (See Part 304 of this subchapter for list of forms and instructions.)

§ 303.5 Application for conversion, merger, consolidation, assumption and sale of asset transactions.

(a) With noninsured bank or institution. Application by an insured bank for the consent of the Corporation to merge or consolidate with a noninsured bank or institution, or to convert into a noninsured institution, or to assume liability to pay any deposits made in, or similar liabilities of, any noninsured bank or institution, or to transfer assets to any noninsured bank or institution in consideration of the assumption of liability for any portion of the deposits made in such insured bank, together with copies of all agreements or proposed agreements relating thereto, should be filed with the Supervising Examiner of the Federal Deposit Insurance District in which the insured bank is located. The appropriate form of application and instructions for completing the form as well as instructions concerning notice to depositors, may be obtained unon request from the office of said Supervising Examiner.

(b) Conversion with diminution of capital or surplus. Application for the consent of the Corporation to convert into an insured State nonmember bank (except a District bank)—when the conversion will result in the converted bank having less capital stock or surplus than

the converted bank at the time of the shareholders' meeting approving such conversion-together with copies cf the charter and/or articles of association of the converted bank, should be filed with the Supervising Examiner of the Federal Deposit Insurance District in which the insured bank is located. The appropriate form of application and instructions for completing the form may be obtained upon request from the office of said Supervising Examiner.

(c) Merger, consolidation, asset acquisition or assumption transaction between insured banks. Application by an insured bank for the consent of the Corporation to merge or consolidate with, acquire the assets of, or assume the liability to pay any deposits made in, another insured bank-when the resulting or assuming bank is to be an insured State nonmember bank (except a District bank)-together with copies of all agreements or proposed agreements realting thereto, including the charter or articles of incorporation of the resulting or assuming bank, should be filed with the Supervising Examiner of the Federal Deposit Insurance District in which the resulting or assuming bank is located. The appropriate form of application and instructions for completing the same may be obtained upon request from the office of said Supervising Examiner. [15 F.R. 8628, Dec. 6, 1950, as amended at 26 F.R. 291, Jan. 14, 1961]

§ 303.6 Application by State nonmember insured bank to extend its corporate or charter powers.

Application for the consent of the Corporation to the extension of the corporate or charter powers of a State nonmember insured bank (except a District bank) should be filed with the Supervising Examiner of the Federal Deposit Insurance District in which the bank is located. The appropriate form of application and instructions for completing the same may be obtained upon request from the Supervising Examiner of the District in which the application originates. (See Part 304 of this subchapter for list of forms and instructions.)

to continue or to resume its status as an insured bank, should be filed with the Supervising Examiner of the Federal Deposit Insurance District in which the bank is located. Such application should be (a) in writing; (b) signed by the president, or cashier, or other managing officer of the bank; (c) accompanied by a certified copy of the resolution of its board of directors authorizing the submission of such application; and should contain (d) a statement that the bank's insured status has been terminated, the date thereof, and the basis therefor, that the insurance of its deposits has not ceased, and that it applies for permission to continue or resume its status as an insured bank; and (e) the reasons why the continuance or resumption of such status should be permitted by the Corporation.

§ 303.8 Application for use of other official sign or for exemption from advertising requirements.

Any application made by an insured bank under any of the provisions of Part 328 of this chapter should be filed with the Division of Examination of the Corporation at its principal office. Such application should (a) be in writing; (b) be signed by the president, or cashier, or other managing officer of the bank; and (c) state, in conformity with the particular provision in respect of which the application is made, the reason for the request in detail and the reason why the application should be granted and in case of an official sign should be accompanied by a sample of the proposed sign. § 303.9

Other applications.

Except as otherwise provided by rule or regulation, all applications, requests, and submittals for which no form of application has been prescribed by the Corporation, should be (a) in writing; (b) signed by the applicant or his duly authorized agent; and (c) should contain a statement of the applicant's interest therein, a complete and concise statement of the action requested and the reasons and facts relied upon as the basis for such requested action; and should be addressed to the Secretary at the principal office of the Corporation. The applicant shall furnish such other pertinent information as may be required by the Corporation.

Whenever applicable the forms specified in Part 304 of this subchapter should

be used and the instructions issued with respect thereto should be followed and submission made as therein provided.

§ 303.10 Procedure on applications.

With respect to applications for deposit insurance under § 303.1, the Division of Examination of the Corporation will cause an investigation to be conducted, and an examination to be made of the bank or proposed bank; and the board of directors will thereafter, in accordance with applicable provisions of law, act upon such application, the report of such investigation and examination, the recommendations thereon of the examiner and Supervising Examiner of the District in which the bank is or will be located, of the Division of Examination and of the Board of Review, and the legal opinion of counsel for the Corporation. The applicant bank will be duly advised of the board's decision upon such application.

With respect to all other applications, requests, or submittals the board of directors will cause such an investigation or examination, or both, to be made by the proper Divisions of the Corporation, as the board shall deem appropriate, and upon the report of such investigation and examination, and the recommendations thereon, will take such action as it shall deem necessary or appropriate in the premises.

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