(ii) Significantly frustrate implementation of a proposed Corporation action, except that this paragraph (b)(9)(ii) shall not apply in any instance where the Corporation has already disclosed to the public the content or nature of its proposed action, or where the Corporation is required by law to make such disclosure on its own initiative prior to taking final action on such proposal; or

(10) Specifically concern the Corporation's issuance of a subpoena, or the Corporation's participation in a civil action or proceeding, an action in a foreign court or international tribunal, or an arbitration, or the initiation, conduct, or disposition by the Corporation of a particular case of formal agency ajudication pursuant to the procedures in 5 U.S.C. 554 or otherwise involving a determination on the record after opportunity for a hearing.

§ 311.4 Procedures for announcing meetings.

(a) Scope. Except to the extent that such announcements are exempt from disclosure under § 311.3(b), announcements relating to open meetings, and meetings closed under the regular closing procedures of § 311.5, will be made in the manner set forth in this section.

(b) Time and content of announcement. The Corporation will make public announcement at least seven days before the meeting of the time, place, and subject matter of the meeting, whether it is to be open or closed to the public, and the name and telephone number of the official designated by the Corporation to respond to requests for information about the meeting. This announcement will be made unless a majority of the Board determines by a recorded vote that Corporation business requires that a meeting be called on lesser notice. In such cases, the Corporation will make public announcement of the time, place, and subject matter of the meeting, and whether it is open or closed to the public, at the earliest practicable time, which may be later than the commencement of the meeting.

(c) Changing time or place of meeting. The time or place of a meeting

may be changed following the public announcement required by paragraph (b) of this section only if the Corporation publicly announces the change at the earliest practicable time, which may be later than the commencement of the meeting.

(d) Changing subject matter or nature of meeting. The subject matter of a meeting, or the determination to open or close a meeting or a portion of a meeting, may be changed following the public announcement only if:

(1) A majority of the entire Board determines by recorded vote that agency business so requires and that no earlier announcement of the change was possible; and,

(2) The Corporation publicly announces the change and the vote of each member upon such change at the earliest practicable time, which may be later than the commencement of the meeting.

(e) Publication of announcements in Federal Register. Immediately following each public announcement under this section, such announcement will be submitted for publication in the FEDERAL REGISTER by the Office of the Executive Secretary.

§ 311.5 Regular procedure for closing meetings.

(a) Scope. Unless § 311.6 is applicable, the procedures for closing meetings will be those set forth in this section.

(b) Procedure. (1) A decision to close a meeting or portion of a meeting will be taken only when a majority of the entire Board votes to take such action. In deciding whether to close a meeting or portion of a meeting, the Board will consider whether the public interest requires an open meeting. A separate vote of the Board will be taken with respect to each meeting which is proposed to be closed in whole or in part to the public. A single vote may be taken with respect to a series of meetings which are proposed to be closed in whole or in part to the public, or with respect to any information concerning such series of meetings, so long as each meeting in the series involves the same particular matters and is scheduled to be held no more than thirty

days after the initial meeting in the series. The vote of each Board member will be recorded and no proxies will be allowed.

(2) Any individual whose interests may be directly affected may request that the Corporation close any portion of a meeting for any of the reasons referred to in paragraphs (5), (6), or (7) of § 311.3(b). Requests should be directed to the Office of the Executive Secretary, Federal Deposit Insurance Corporation, 550 17th Street, N.W., Washington, D.C. 20429. After receiving notice that an individual desires a portion of a meeting to be closed, the Board, upon request of any one of its members, will vote by recorded vote whether to close the relevant portion of the meeting. This procedure will apply even if the individual's request is made subsequent to the announcement of a decision to hold an open meeting.

(3) The Corporation's General Counsel will make the public certification required by § 311.7.

(4) Within one day after any vote taken pursuant to paragraphs (b)(1) or (2) of this section, the Corporation will make publicly available a written copy of the vote, reflecting the vote of each Board member. Except to the extent that such information is exempt from disclosure, if a meeting or portion of a meeting is to be closed to the public, the Corporation will make publicly available within one day after the required vote a full written explanation of its action, together with a list of all persons expected to attend the meeting and their affiliation.

(5) The Corporation will publicly announce the time, place, and subject matter of the meeting, with determinations as to open and closed portions, in the manner and within the time limits prescribed in § 311.4.

[42 FR 14675, Mar. 16, 1977; 42 FR 16616, Mar. 29, 1977, as amended at 42 FR 59494, Nov. 18, 1977]

§ 311.6 Expedited procedure for announcing and closing certain meetings. (a) Scope. Since a majority of its meetings may properly be closed pursuant to paragraph (4), (8), (9)(i), or

(10) of § 311.3(b), subsection (d)(4) of the Government in the Sunshine Act (5 U.S.C. 552b) allows the Corporation to use expedited procedures in closing meetings under these four subparagraphs. Absent a compelling public interest to the contrary, meetings or portions of meetings that can be expected to be closed using these procedures include, but are not limited to: Administrative enforcement proceedings under Section 8 of the Federal Deposit Insurance Act (12 U.S.C. 1818); appointment of the Corporation as receiver, liquidator or liquidating agent of a closed bank or a bank in danger of closing: and certain liquidation activities pursuant to such appointment; possible financial assistance by the Corporation under Section 13 of the Federal Deposit Insurance Act (12 U.S.C. 1823); changes pursuant to Section 18(g) of the Federal Deposit Insurance Act (12 U.S.C. 1828(g)) in the rates of interest insured state nonmember banks may pay on deposits; certain bank applications including applications to establish or move branches, applications to merge, and applications for insurance; and investigatory activity under Section 10(c) of the Federal Deposit Insurance Act (12 U.S.C. 1820(c)). In announcing and closing meetings or portions of meetings under this section, the following procedures will be observed.

(b) Announcement. Except to the extent that such information is extent that such information is exempt from disclosure under the provisions of § 311.3(b) the Corporation will make public announcement of the time, place and subject matter of the meeting and of each portion thereof at the earliest practicable time. This announcement will be published in the FEDERAL REGISTER if publication can be effected at least one day prior to the scheduled date of the meeting.

(c) Procedure for closing. (1) The Corporation's General Counsel will make the public certification required by § 311.7.

(2) At the beginning of a meeting or portion of a meeting to be closed under this section, a recorded vote of the Board will be taken. The Board will determine by its vote whether to

proceed with the closing. If a majority of the entire Board votes to close, the meeting will be closed to public observation. Even though a meeting or portion thereof could properly be closed under this section, a majority of the entire Board may find that the public interest requires an open session and vote, reflecting the vote of each Board member, will be made available to the public.

[42 FR 14675, Mar. 16, 1977; 42 FR 16616, Mar. 29, 1977]

§ 311.7 General Counsel Certification.

For every meeting or portion thereof closed under § 311.5 or § 311.6, the Corporation's General Counsel will publicly certify that, in the opinion of such General Counsel, the meeting may be closed to the public and will state each relevant exemptive provision. In the absence of the General Counsel, the Deputy General Counsel may perform the certification. If the General Counsel and Deputy General Counsel are both absent, the Special Counsel to the General Counsel or an Assistant General Counsel may provide the required certification. A copy of this certification, together with a statement from the presiding officer of the meeting setting forth the time and place of the meeting, and the persons present, will be retained in the Board's permanent files.

§ 311.8 Transcript, minutes of closed meetings.

(a) When required. The Corporation will maintain a complete transcript, identifying each speaker, to record fully the proceedings of each meeting or portion of a meeting closed to the public, except that in the case of a meeting or portions of a meeting closed to the public pursuant to paragraphs (8), (9)(i), or (10) of § 311.3(b), the Corporation may, in lieu of a transcript, maintain a set of minutes.

(b) Content of minutes. If minutes are maintained, they will fully and clearly describe all matters discussed and will provide a full and accurate summary of any actions taken, and the reasons for taking such action.

Minutes will also include a description of each of the views expressed by each person in attendance on any item and the record of any roll call vote, reflecting the vote of each member. All documents considered in connection with any action will be identified in the minutes.

(c) Available material. The Corporation will maintain a complete verbatim copy of the transcript or minutes of each meeting or portion of a meeting closed to the public for a period of at least two years after the meeting, or until one year after the conclusion of any proceeding with respect to which the meeting or portion was held, whichever occurs later. The Corporation will make promptly available to the public the transcript, identifying each speaker, or minutes of items on the agenda or testimony of any witness received at the closed meeting except that in cases where the Privacy Act of 1974 (5 U.S.C. 552a) does not apply, the Corporation may withhold information exempt from disclosure under § 311.3(b). For the convenience of members of the public who may be unable to attend open meetings of the Board, the Corporation will maintain for at least two years a set of minutes of each meeting of the Board or portion thereof open to public observation.

(d) Procedures for inspecting or copying available material. (1) An individual may inspect materials made available under this Section at the Office of the Executive Secretary, Federal Deposit Insurance Corporation, 550 17th Street, N.W., Washington, D.C. 20429, during normal business hours. If the individual desires a copy of such material, the Corporation will furnish copies at a cost of 10 cents per page. Whenever the Corporation determines that in the public interest a reduction or waiver is warranted, it may reduce or waive any fees imposed under this section.

(2) An individual may also submit a written request for tranacripts or minutes, reasonably identifying the records sought, to the Office of the Executive Secretary, Federal Deposit Insurance Corporation, 550 17th Street, N.W., Washington, D.C. 20429.

PART 325-INTRODUCTORY

§ 325.0 Scope.

The regulations and statements of general policy contained in this subchapter are promulgated pursuant to the provisions of the Federal Deposit Insurance Act and are published pursuant to subchapter II of chapter 5 of title 5, United States Code, and other applicable laws, and, in accordance with the provisions of section 552(a)(1)(D) of title 5, United States Code, contain rules adopted as authorized by law and statements of general policy or interpretations formulated and adopted by the Corporation for the guidance of the public.

(Sec. 9, 64 Stat. 881; 12 U.S.C. 1819)

[15 FR 8638, Dec. 6, 1950, as amended at 32 FR 10561, July 19, 1967]

For the purposes of this part

(a) The term "insured State nonmember bank" means any bank (including any mutual savings bank), incorporated under the laws of any State of the United States, any territory of the United States, Puerto Rico, Guam, American Samoa, or the Virgin Islands, that is not a member of the Federal Reserve System but the deposits of which are insured in accordance with the provisions of the Federal Deposit Insurance Act, as amended (12 U.S.C. 1811-1832), but the term does not include any bank located in the District of Columbia.

(b) The term "banking hours" means the time during which a banking office is open for the normal transaction of business with the banking public.

(c) The term "banking office" includes the main office or any insured State nonmember bank and any branch thereof.

(d) The term "branch" includes any branch bank, branch office, branch agency, additional office, or any branch place of business located in any State of the United States or in any territory of the United States, Puerto Rico, Guam, American Samoa,

40-028 0-79-6

or the Virgin Islands at which deposits are received or checks paid or money lent.

(e) The term "Board of Directors" means the Board of Directors of the Federal Deposit Insurance Corporation.

(f) The term "teller's station or window" means a location in a banking office at which bank customers routinely conduct transactions with the bank which involve the exchange of funds, including a walkup or drivein teller's station or window.

[34 FR 618, Jan. 16, 1969, as amended at 36 FR 3112, Feb. 18, 1971]

§ 326.2 Designation of security officer.

On or before February 15, 1969, or within 30 days after the bank becomes a member of the Federal Deposit Insurance Corporation, the board of directors of each insured State nonmember bank shall designate an officer or other employee of the bank who shall be charged, subject to supervision by the bank's board of directors, with responsibility for the installation, maintenance, and operation of security devices and for the development and administration of a security program which equal or exceed the standards prescribed by this part.

§ 326.3 Security devices.

(a) Installation, maintenance, and operation of appropriate security devices. Before January 1, 1970, or within 30 days after the bank becomes a member of the Federal Deposit Insurance Corporation, the security officer of each insured State nonmember bank, under such directions as shall be given him by the bank's board of directors, shall survey the need for security devices in each of the bank's banking offices and shall provide for the installation, maintenance, and operation, in each such office, of—

(1) A lighting system for illuminating, during the hours of darkness, the area around the vault, if the vault is visible office;

from outside the banking

(2) Tamper-resistant locks on exterior doors and exterior windows designed to be opened;

(3) An alarm system or other appro priate device for promptly notifying the nearest responsible law enforce ment officers of an attempted or per petrated robbery or burglary; and

(4) Such other devices as the secu rity officer, after seeking the advice of law enforcement officers, shall determine to be appropriate for discouraging robberies, burglaries, and larcenies and for assisting in the identification and apprehension of persons who commit such acts.

(b) Considerations relevant to determining appropriateness. For the purposes of paragraph (a)(4) of this section, considerations relevant to determining appropriateness include, but are not limited to

(1) The incidence of crimes against the particular banking office and/or against financial institutions in the area in which the banking office is or will be located;

(2) The amount of currency or other valuables exposed to robbery, burglary, or larceny;

(3) The distance of the banking office from the nearest responsible law enforcement officers and the time required for such law enforcement officers ordinarily to arrive at the banking office;

(4) The cost of the security devices; (5) Other security measures in effect at the banking office; and

(6) The physical characteristics of the banking office structure and its surroundings.

(c) Implementation. It is appropriate for banking offices in areas with a high incidence of crime to install many devices which would not be practicable because of costs for small banking offices in areas substantially free of crimes against financial institutions. Each insured State nonmember bank shall consider the appropriateness of installing, maintaining, and operating security devices which are expected to give a general level of bank protection at least equivalent to the standards described in Appendix A of this part. In any case in which (on the basis of the factors listed in paragraph (b) of this section or similar ones, the use of other measures, or the decision that technological change allows the