concise statement of the action requested and the reasons and facts relied upon as the basis for such requested action, and (4) be addressed to the Executive Secretary of the Corporation 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 title should be used, the instructions issued with respect thereto should be followed, and submission should be made as therein provided.

[32 FR 10556, July 19, 1967, as amended at 38 FR 14263, May 31, 1973; 44 FR 25193, Apr. 30, 1979]

§ 303.10 Procedure on applications.

(a) Applications for deposit insurance. With respect to applications for deposit insurance under § 303.1, the Division of Bank Supervision of the Corporation will cause an investigation to be conducted and an examination to be made of the bank or proposed bank. Thereafter, the Board of Directors, in accordance with applicable provisions of law, will act upon such application after considering the report of such investigation and examination, the recommendations thereon of the examiner and Regional Director of the region in which the bank is or will be located, the recommendations of the Division of Bank Supervision, the recommendations of the duly constituted committees with respect to matters referred to them, and the legal opinion of counsel for the Corporation. The applicant bank will be duly advised of the Board's decision upon such application.

(b) Other applications. 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. Where the application is one authorized to be approved by the Director of the Division of Bank Supervision or by a Regional Director, under § 303.11, he shall cause such an investigation or examination, or both, to be made by his examining staff, as he shall deem appropriate. Upon the report of such

investigation and examination, and the recommendations thereon, the Board of Directors or the Director of the Division of Bank Supervision, or the Regional Director, as the case may be, shall take such action as shall be deemed necessary or appropriate in the premises.

(c) Opportunity to present views. With respect to any application, the Board of Directors will afford the applicant or other properly interested persons, including Government agencies, an opportunity to present views orally before its designated representative or representatives, either at informal conference discussions or at informal presentations of evidence.

(d) Notice of disposition of applications. Prompt notice will be given of the grant or denial, in whole or in part, of any written application, petition, or other request of any interested person made in connection with any agency proceeding. In the case of denial, except in affirming a prior denial, or where the same is self-explanatory, such notice will be accompanied by a simple statement of the reasons therefor.

(e) Opportunity to petition for reconsideration of a denied application, petition, or request. Within 15 days of its receipt of notice that its application, petition, or other request has been denied, any applicant may petition the Board of Directors for reconsideration of such application, petition, or request (except an application, petition, or request already previously denied upon reconsideration) and, in connection therewith, may request an opportunity to amend its application, petition, or request or to submit information in rebuttal of the denial, either in writing or in the form of an oral presentation before one or more representatives of the Corporation designated for that purpose. Upon the filing of such petition for reconsideration, the applicant shall be given 60 days in which to amend its application, petition, or request or to make its presentation to the Corporation. If the applicant requests an opportunity to make an oral presentation, it shall be advised of the date, time, place, and person or persons before whom such presentation shall be made.

[35 FR 1947, Dec. 30, 1970, as amended at 38 FR 14263, May 31, 1973; 41 FR 35157, Aug. 20, 1976]

§ 303.11 Delegation of authority to act on certain applications and on notices of acquisition of control.

(a) General. Except as provided in § 303.12, and subject to the provisions of paragraphs (b) and (c) of this section, the Board of Directors of the Federal Deposit Insurance Corporation has delegated to the Director of the Division of Bank Supervision, or, where confirmed in writing by the Director of the Division of Bank Supervision, to the Regional Director of the Region in which the applicant bank, an insured branch of a foreign bank, or the bank in which the stock is being acquired is located, the authority on behalf of the Board of Directors to act on the following applications and requests from any insured nonmember bank and on notices of acquisition of control of any insured State nonmember bank from any person who acquires or proposes to acquire such control:

(1) Applications for the prior written consent of the Corporation to establish and operate any new teller's window, drive-in facility, or any like office, as an adjunct to a main office or a branch office (including offices not considered branches under State law), or to move its main office or any branch from one location to another;

(2) Applications for the prior written consent of the Corporation to operate temporary banking facilities as a public service during conventions, State and local fairs, college registration periods, and similar occasions, as well as during emergencies, so long as such service does not exceed a period of 1 month;

(3) Applications for the prior written consent of the Corporation to issue subordinated capital debt pursuant to the provisions to § 329.10(b)(3) of this chapter, or to reduce the amount or retire any part of its common or preferred capital stock, or retire any part of its capital notes or debentures;

(4) Application for the prior written consent of the Corporation to exercise any trust powers;

(5) Requests for extension of time, not to exceed one year on any one request relating to the same application, within which to perform acts or conditions required by prior Corporation action on bank applications, except in those circumstances where unjustified delay is due to actions of management or there is interim change of an adverse nature;

(6) Requests for approval of minor or nominal (10 percent or less of dollar requirements where applicable) deviations from requirements prescribed by prior Corporation action.

(7) Applications for the prior written consent of the Corporation to establish and operate any new branch: Provided, however, That this authority shall extend to the approval but not to the denial of such applications.

(8) Applications for deposit insurance filed by State members banks upon withdrawal from membership in the Federal Reserve System; Provided, however, That this authority shall extend to the approval but not to the denial of such applications.

(9) Applications for "phantom" bank mergers and other mergers which are corporate reorganizations, that is, transactions involving banks controlled by the same holding company or transactions involving banks and their subsidiaries which would have no effect on competition or otherwise have significance under relevant statutory standards as set forth in 12 U.S.C. 1828(c). This authority shall extend to the approval but not to the denial of such applications;

(10) Applications for deposit insurance filed by proposed State nonmember banks which are formed in connection with a "phantom" bank merger; Provided, however, That this authority shall extend to the approval

2a As used in paragraphs (a)(9) and (10) of this section, the term "phantom' bank merger" applies to any merger or other transaction involving an existing operating bank and a newly chartered bank or corporation which is for the purpose of corporate reorganization and which would have no effect on competition or otherwise have significance under the relevant statutory standards as set forth in 12 U.S.C. 1828(c).

but not to the denial of such applications.

(11) (Reserved)

(12) Notices of acquisition of control of insured State nonmember banks: Provided, however, That this authority shall extend to the power to issue a written notice of the Corporation's intent not to disapprove an acquisition of control, but not to the power to disapprove an acquisition of control; And provided, further, That this authority shall extend to the power to act in situations where information is submitted on acquisitions arising out of testate or intestate succession, bona fide gifts or foreclosure; to the power to extend notice periods; to the power to determine the informational adequacy of a notice and to the power to determine whether a notice should be filed under the Act by a person acquiring less than 25 per centum of any class of voting securities of an insured State nonmember bank.

(13) Applications for the acquisition and holding of stock or other evidences of ownership in a foreign bank or other financial entity that result in less than 25 percent ownership interest in such bank or entity.

(14) Requests for prior approval to establish a management official interlock pursuant to § 348.4(b)(3) of FDIC's regulations. This authority shall extend to the approval but not the denial of such requests.

(15) Requests pursuant to § 215.6(b) of Federal Reserve Board Regulation O (12 C.F.R. Part 215) for extensions of time in which to bring outstanding loans to executive officers and principal shareholders into compliance with § 215.6(a) of Regulation O. This authority extends to approval and denial of such requests but will terminate on March 10, 1982.

(b) Confirmation, limitations, and rescission. The authority delegated in paragraph (a) of this section by the Board of Directors to the Regional Director of the Region in which the applicant bank, the insured branch of a foreign bank, or the bank in which stock is being acquired is located is subject, as to each Regional Director in each Region, to written confirmation, limitations, or subsequent rescission of any confirmation, by the Direc

tor of the Division of Bank Supervision. Such written confirmation, limitations, or rescission shall be filed with the Executive Secretary of the Corporation at its offices in Washington, D.C. and at the office of the Regional Director concerned, and shall be available for public inspection by interested parties.

(c) Special cases. In special cases the Director of the Division of Bank Supervision may, in writing, rescind the authority of a Regional Director to act on an application or request or notice of acquisition of control, and may himself or herself act on the same. In special cases a Regional Director may, in writing, recommend that the authority to act on an application or request or notice of acquisition of control not be exercised by him or her; in such cases the authority to act on such application or request or notice of acquisition of control may be exercised by the Director of the Division of Bank Supervision. In special cases the Director of the Division of Bank Supervision may, in writing, recommend that the authority to act on an application or request or notice of acquisition of control not be exercised by him or her; in such cases the Board of Directors will act on the application or request or notice of acquisition of control.

(d) Deputy Director (OperationsBranch). In the absence of the Director of Bank Supervision, all powers granted to him under the provisions of this part may be exercised instead by the Deputy Director of the Division of Bank Supervision (Operations Branch).

(e) Applications filed pursuant to section 19 of the Federal Deposit Insurance Act. (1) The Board of Directors of the Federal Deposit Insurance Corporation has delegated to the Corporation's Board of Review the authority on behalf of the Board of Directors to approve applications filed by insured banks with the Corporation pursuant to section 19 of the Federal Deposit Insurance Act seeking the consent of the Corporation for the employment of any director, officer, or employee who has been convicted or is hereafter convicted of any criminal offense involving dishonesty or a breach of trust. Such authority to approve in

cludes any director, and any officer or employee who has authority to participate or may hereafter participate in policymaking functions of such insured bank, or has direct or indirect control of 5 percent or more of the voting rights of any class of voting stock of such insured bank: Provided, That the insured bank's primary supervisory authority interposes no objection to such application. This authority shall extend to the approval but not to the denial of such applications. The delegation of authority to the Board of Review to approve applications under this paragraph and § 303.11(e)(2) does not preclude the Board of Directors from acting on any application upon which the Board of Review may not wish to act. Any voting member of the Board of Review attending the meeting at which an application is considered may request that the application be referred to the Board of Directors for its consideration and upon receipt of such request the Board of Review shall forward the application to the Board of Directors together with its recommendation as to the disposition of such application.

(2) The Board of Directors has delegated to the Director of the Corporation's Division of Bank Supervision, and where confirmed in writing by the Director of the Division of Bank Supervision, to the Regional Director of the Region in which the applicant bank is located, the authority on behalf of the Board of Directors to approve requests for employment filed by insured banks pursuant to section 19 of the Federal Deposit Insurance Act for all other employees and nonpolicymaking officers: Provided, That the applicant bank's primary supervisory authority offers no objection to such application. This authority shall extend to the approval but not to the denial of such applications. The delegation of authority to the Regional Director to approve applications under this paragraph does not preclude the Director of the Division of Bank Supervision or the Board of Review from acting on any application which the Regional Director may not wish to approve, or upon which the Regional Director may not wish to act.

(Sec. 7(j)(13), Pub. L. 797 (12 U.S.C. 1817(j)(13)), as amended by Pub. L. 95-630, sec. 602, 92 Stat. 3683, and sec. 9, 12 U.S.C. 1819); (Sec. 209, Pub. L. 95-630, 92 Stat. 3675 (12 U.S.C. 3207; Sec. 2(9), Pub. L. 797, 64 Stat. 881 (12 U.S.C. 1819)))

[35 FR 19747, Dec. 30, 1970, as amended at 38 FR 4572, Feb. 16, 1973; 38 FR 14263, May 31, 1973; 39 FR 16230, May 8, 1974; 39 FR 21044, June 18, 1974; 43 FR 9788, 9789, Mar. 10, 1978; 43 FR 48622, Oct. 19, 1978; 44 FR 7123, Feb. 6, 1979; 44 FR 25194, Apr. 30, 1979; 44 FR 30076, May 24, 1979; 44 FR 75624, Dec. 21, 1979; 45 FR 30617, May 19, 1980; 45 FR 54327, July 15, 1980]

§ 303.12 Applications where authority is not delegated.

(a) Circumstances precluding delegation. Authority to act on applications listed in § 303.11 is not delegated by the Board of Directors in the following circumstances:

(1) Where a condition other than one agreed to in writing by the bank, or other than a time limitation, is to be prescribed in approving an application;

(2) Where all necessary final approvals have not been obtained from the appropriate State authority.3

(3) Notwithstanding the limitations in paragraphs (a) (1) and (2) of this section, the authority delegated in § 303.11(a)(7) may be exercised during the period of September 22, 1976 to December 31, 1976, inclusive, with respect to branch applications of insured State nonmember banks in Florida, on the basis of notices of intent to approve branches issued by the Commissioner of Banking of the State of Florida in lieu of final approval as required by paragraph (a)(2) of this section, and in addition to those conditions referred to in paragraph (a)(1) of this section, there may be imposed a condition providing that the approving Order will not become effective until the bank has received final approval from the Commissioner of Banking of the State of Florida to establish the branch and conduct banking business at that location.

"Where the State authority has given its approval subject only to the approval of the Federal Deposit Insurance Corporation, such approval is to be considered as final.

(b) Approving authority. In all cases where authority to act on applications or requests listed in this part is not delegated to the Director of the Division of Bank Supervision (or, in his absence, the Deputy Director (Operations Branch)), or to a Regional Director, the authority to act on such applications or requests remains vested in the Board of Directors of the Corporation.

(c) Conditions precedent to delegation to approve branch applications. (Important: The requirements set forth in this paragraph (c) are procedural in nature only and should not be construed as standards or criteria which will be used in determining whether a specific application will be approved or denied.) Authority to approve remote service facility branch applications, including additional sites or relocations thereof; pursuant to § 303.11(a)(7) is delegated only where each of the six factors set forth in section 6 of the Federal Deposit Insurance Act has been considered and favorably resolved. Authority to approve branch applications, other than remote service facility branch applications, pursuant to § 303.11(a)(7) is delegated only where each of the six factors set forth in section 6 of the Federal Deposit Insurance Act has been considered and favorably resolved and, in addition, all the following requisites have been satisfied:

(1) The applicant is in substantial compliance with the rules and regulations of the Corporation.

(2) The applicant has adequate fidelity coverage.

5

(3) Legal fees and other expenses incurred in connection with the proposed branch are determined to be

4The six factors are: (1) The financial history and condition of the applicant, (2) the adequacy of its capital structure, (3) its future earnings prospects, (4) the general character of its management, (5) the convenience and needs of the community to be served by the applicant, and (6) whether or not its corporate powers are consistent with the purposes of the Federal Deposit Insurance Act (12 U.S.C. 1816).

"Including a $1 million excess bond if primary blanket bond coverage is less than $1 million.

(4) Establishment of the proposed branch will not have a significantly adverse effect on competition in any relevant area or lead to destructive competition.

(5) In the case of a mutual or guaranty savings bank, the applicant's adjusted' capital and reserves, including written commitments for additional capital funds, constitute at least 5 percent of its adjusted' gross assets; Provided, however, That the authority to make such a determination is not delegated to any Regional Director where the applicant's adjusted capital and reserves, including written commitments for additional capital funds, constitute less than 6 percent of its adjusted gross assets.

(5a) In the case of a commercial bank, the applicant's adjusted' capital and reserves, including written commitments for additional capital funds, are determined to be adequate relative to its adjusted' gross assets; Provided, however, That the authority to make such a determination is not delegated to any Regional Director where the applicant's adjusted' capital and reserves, including written commitments for additional capital funds, constitute less than 7.5 percent of its adjusted' gross assets.

(6) The applicant's aggregate direct and indirect fixed asset investment, including its direct and indirect investment in the proposed branch, is determined to be reasonable relative to its earnings capacity and other pertinent bases of consideration.

(7) The estimated income of the proposed branch is equal to or in excess of its expenses during the third year of its operation, or, alternatively, the applicant's earnings are adequate to support limited operating losses in

"A copy of FDIC's Statement of Policy on Legal Fees and Other Expenses Incident to Applications for Insurance and Consent to Establish Branches is provided with all application forms for the consent of the FDIC to establish branches.

'Based on classifications made at the last examination of the applicant.

"On a consolidated basis. [Reserved]