Appoints the Federal Savings and Loan Insurance Corporation as the conservator or receiver of any Federal association which is found, following a proper hearing, to be insolvent, or which has violated the law or Board regulations, concealed its records or operated unsoundly; and may appoint a supervisory representative in charge in an emergency to operate an association pending the completion of the hearing and/or appointment of a conservator or receiver.

Prescribes rules and regulations for the reorganization, merger, and liquidation of Federal associations and for the conduct of conservatorships and receiverships.

With respect to associations insured by the Federal Savings and Loan Insurance Corporation

Performs all the functions of the Board of Trustees of the Corpora

tion.

Approves any corporation use of its authority to borrow from the Treasury for insurance purposes.

Determines, after due notice and a hearing in accordance with the Administrative Procedure Act, whether an insured association has violated its duty, operated unsafely or conducted its business unsoundly, and may issue an order terminating the insurance status of such an association.

With respect to Federal Savings and Loan Advisory Council

Appoints six members of Council.

Convenes council whenever necessary to discuss general business conditions and special problems of associations.

FEDERAL HOME LOAN BANK BOARD

NEW FEDERAL SAVINGS AND LOAN ASSOCIATIONS

Summary of basic operational procedure in processing applications to organize new Federal associations

CHART A.-STEPS LEADING TO PERMISSION TO ORGANIZE

1. Filing of application and supporting data with district bank. 2. Transmittal of application file with bank recommendation.

3. Transmittal of application and recommendation of Division of Federal Savings and Loan Operations to legal department for preparation of Board resolution in accordance with such recommendation. Returned to Division of Federal Savings and Loan Operations.

4. Transmittal of application, digest, and recommendation to Federal Savings and Loan Insurance Corporation for concurrence. Returned, to Division of Federal Savings and Loan Operations.

5. Transmittal of application, digest, and recommendation to Federal Home Loan Bank Board for formal action.

6. Submission to the Division of Supervision, prior to formal action by Board, for expression of any objection.

7. Provision for hearing if Board acts on application favorably. Applicant group is so advised and given details of hearing.

7a. If Board considers application unfavorably, applicants are advised through district bank that a hearing will be held if they so request.

8. If hearing is held, applicant group is advised of the Board's conclusions. 8a. If hearing is dispensed with because there are no notices of intention to appear, application is referred to Division of Federal Savings and Loan Operations for analysis of written protests, and recommendation as to establishment of conditions. Application is then returned to Board for formal action.

9. Transmittal of Board action (granting conditional approval of application) to district bank which informs applicant group.

CHART B.-STEPS LEADING TO GRANTING OF CHARTER (SOLID LINES); and CHART C.-LATER STEPS INVOLVED IN FINAL QUALIFICATION AS A FEDERAL SAVINGS AND LOAN ASSOCIATION (DOTTED LINES)

1. Filing of petition for charter and of evidence of compliance with established conditions with district bank.

2. Transmittal of petition and supporting material with bank recommendation. 3. Transmittal of application and recommendation of Division of Federal Savings and Loan Operations to legal department for preparation of resolution. Returned to Division of Federal Savings and Loan Operations.

4. Transmittal of application, digest and recommendation to FSLIC for concurrence. Returned to Division of Federal Savings and Loan Operations.

5. Transmittal of application, digest and recommendation to Board for formal action.

6. Communication by Division of Federal Savings and Loan Operations of Board action to district bank and to applicant group, which is given advice regarding submission of applications for membership in the Federal Home Loan Bank System and insurance of accounts.

NOTE RE CHART C

The same procedure is followed as in chart B except that notification of Board action (see 6) is relayed to Federal Savings and Loan Insurance Corporation and district bank, which then advises applicant group. As an additional step, the Federal Savings and Loan Insurance Corporation bills applicant directly for admission fee and initial premium (see 7). Insurance effective upon receipt of payment.

INSURED STATE CHARTERED SAVINGS AND LOAN ASSOCIATIONS

Summary of basic operational procedure in processing applications for insurance by Federal Savings and Loan Insurance Corporation and membership in Federal Home Loan Bank System

CHART A.-STEPS LEADING TO CONDITIONAL APPROVAL

1. Filing of application and supporting data with district bank.

2, 2a. Notification sent to office of chief examiner of district, which conducts eligibility examination and transmits report to district bank.

3. Transmittal of application file, including eligibility examination report and district bank recommendation, to Federal Savings and Loan Insurance Corporation.

4. Transmittal of application file and supporting material to legal department which prepares legal opinion as to eligibility of applicant. Returned to FSLIC. 5. Transmittal of file, with addition of FSLIC analysis of application, proposed action recommended and conditions necessary to meet eligibility standards, to legal department for preparation of formal resolution to the Federal Home Loan Bank Board. Returned to FSLIC.

6. Transmittal of file to Division of Federal Savings and Loan Operations for review as to eligibility for membership in Federal Home Loan Bank System. 6a. Transmittal to the Board of the FSLIC General Manager's recommendation for conditional approval of application for insurance, together with appropriate formal resolution.

7. Transmittal to the Board of the recommendation of the Director of Division of Federal Savings and Loan Operations for conditional approval of application for FHLB membership, together with appropriate formal resolution-to be acted upon concurrently with recommendation from FSLIC (see 6a).

8, 9, 10. Transmittal to the FSLIC of certified resolutions reflecting formal conditional approval by the Board of insurance and FHLB membership. Such resolutions are forwarded, together with detailed explanations, to the district bank for further transmittal to the applicant association.

CHART B.-LATER STEPS INVOLVED IN FINAL QUALIFICATION AS AN INSURED MEMBER, SAVINGS AND LOAN ASSOCIATION

1, 2. Submission of documentary evidence showing compliance with conditions for insurance and FHLB membership to district bank, which forwards such evidence, together with its opinion as to sufficiency of compliance, to FSLIC.

3. Transmittal of file to legal department for opinion as to legal sufficiency of evidence. Returned to FSLIC.

4. Transmittal of file to Division of Federal Savings and Loan Operations, together with notice from FSLIC as to final approval of insurance after independent review of evidence of compliance and previous opinions as to sufficiency thereof. Returned to FSLIC with final approval of FHLB membership. (Respective final approvals are given by General Manager of FSLIC and Director