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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)

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FHLBB

Legal Department

NOTES RE CHART B

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

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FEDERAL SAVINGS

AND LOAN INSURANCE CORPORATION

6A

Operations

FHLBB

Legal
Department

NOTES RE CHART A

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

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FHLBB

Division of Federal
Savings, and Loan

Operations

FEDERAL SAVINGS

AND LOAN INSURANCE CORPORATION

FHLBB

Legal
Department

NOTES RE CHART B

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

of Division of Federal Savings and Loan Operations pursuant to delegated authority from Board.)

5, 6. Transmittal of notices of final approval of insurance and FHLB membership to district bank, which transmits notices to applicant association.

7. Billing by FSLIC of applicant association for initial premium and admission fee. Insurance effective upon receipt of required payment.

Statement of condition June 30, 1956

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LIABILITIES Accounts payable.

290, 367. 79 Accrued liabilities

1,559. 17 Trust liabilities (see contra): Bond purchases.

$5, 356. 17 Federal withholding tax.

103, 372. 33 State withholding tax.

414.39 Federal insurance contributions.

772. 60 Retirement

14, 899. 06 Life insurance premiums withheld.

1, 730.00 Other..

52. 86

126, 597. 41 Deferred credits: Assessments: Federal home loan banks.

273, 750.00 Working capital (see schedule A)....

361, 451. 61 Total.

1,053, 725. 98 NOTE.-Estimated liability for employees' accumulated annual leave at June 30, 1956, aggregated $485,489.02.

DUTIES AND FUNCTIONS OF THE FEDERAL SAVINGS AND LOAN

INSURANCE CORPORATION

(Supplied by the Bureau of the Budget) With respect to insurance of accounts of savings and loan associations

Shall insure accounts of all Federal savings and loan associations, and may insure accounts of other building and loan or savings and loan institutions.

May reject the application of any association whose capital is impaired or whose financial policies or management are unsafe or inconsistent with economical home financing.

May conduct such examinations as it deems necessary of associations desiring insurance.

May charge such associations reasonable costs for examination.

May require associations to furnish additional information with respect to any examination made by other public authority.

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Created by Title IV of the National Housing Act, 1934, for the purpose of insuring savings in all Federal savings
and loan associations and in all state-chartered savings and loan, building and loan, and homestead associations
and cooperative banks which apply and quality. The insurance coverage for each account is limited to $10,000.

FEDERAL HOME LOAN BANK BOARD

The Board provides a number of staff services for it-
self and the Federal Savings and Loan Insurance Corpora-
tion. They include legal services by the Board's General
Counsel; Personnel Department functions; Auditing; co-
ordination of budget estimates and justifications, infor-
mation office and such housekeeping services as procure-
ment, files and records, mail and messenger services
and the like.

GENERAL MANAGER

Under supervision and authority of the Federal Home Loan Bank Board, plans, organizes and directs the operations of the Corporation.

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