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CHAPTER III-FEDERAL DEPOSIT INSURANCE

CORPORATION

SUBCHAPTER A-PROCEDURE AND RULES OF PRACTICE

Part 300 301 302 303 304 305 306 307 308 309

[Reserved]
Introductory.
Formulation and promulgation of rules and regulations.
Applications, requests, and submittals.
Forms, instructions, and reports.
Payment of insured deposits.
Receiverships and liquidations.
Voluntary termination of insured status.
Rules of practice and procedures.
Published and unpublished records and information.

SUBCHAPTER B-REGULATIONS AND STATEMENTS OF GENERAL POLICY

325 326 327 328 329 330 331 332 333 334 335 336

Introductory.
Minimum security devices and procedures for insured nonmember banks.
Assessments.
Advertisement of membership.
Interest on deposits.
Clarification and definition of deposit insurance coverage.
Insurance of trust funds.
Powers inconsistent with purposes of Federal deposit insurance law.
Extension of corporate powers.
Bank service arrangements.
Securities of insured State nonmember banks.
Employee responsibilities and conduct.

SUBCHAPTER A-PROCEDURE AND RULES OF PRACTICE

PART 301—INTRODUCTORY 8 301.1 Scope.

The rules contained in this subchapter are promulgated pursuant to the provisions of the Administrative Procedure Act (5 U.S.C. 551-559), the Federal Deposit Insurance Act (12 U.S.C. 18111831), and other applicable laws. In accordance with the provisions of section 3(a) of the Administrative Procedure Act they state (1) the established places at which, the officers from whom, and the methods whereby, the public may secure information, make submittals or requests, or obtain decisions, (2) the general course and method by which the Corporation's functions are channeled and determined, including the nature and requirements of all formal and informal procedures available, and (3) rules of procedure, descriptions of forms available, or the places at which forms may be obtained, and instructions as to the scope and contents of all papers, reports, or examinations, except to the extent exempted by law. This subchapter also includes appropriate provisions with respect to rule making, adjudications, and hearings, as prescribed by law. A current description of the Corporation's central and field organization is separately published in the FEDERAL REGISTER. 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 and informal hearings and adjudications. (Sec. 9, 64 Stat. 881; 12 U.S.C. 1819) [32' F.R. 9638, July 4, 1967]

SOURCE: The provisions of this part 302 appear at 15 F.R. 8628, Dec. 6, 1950, unless otherwise noted. 8 302.1 Notice.

General notice or proposed rule making, including amendments thereto or repeal thereof, will be published in the FEDERAL REGISTER, except as specified in § 302.6, or otherwise excepted by law. Such notice will include either the terms or substance of the proposed rule or a description of the subjects and issues involved, reference to the authority under which the rule is proposed, and a statement of the time, place, and nature of the public proceedings for making the rule. & 302.2 Public participation.

Interested persons will be afforded an opportunity to participate in the making of any rule, except as specified in § 302.6, or otherwise 'excepted by law, through the submission of written data, views, or arguments, unless the board of directors shall specifically provide an opportunity for the oral presentation therof. § 302.3 Formulation of rules.

After consideration of all relevant 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) § 302.4 Petitions.

Any interested person may petition the Corporation for the issuance, amendment, or repeal of any rule by submitting such petition in writing together with a complete and concise statement of the petitioner's interest in the subject matter and the reasons why the petition should be granted. Such petition should be submitted to the Secretary. $ 302.5 Effective date.

Any rule issued by the Corporation will be published or served not less than thirty (30) days prior to the effective

PART 302_FORMULATION AND

PROMULGATION OF RULES AND

REGULATIONS Sec. 302.1 Notice. 302.2 Public participation. 302.3 Formulation of rules. 302.4 Petitions. 302.5 Effective date. 302.6 Exceptions. 302.7 Amendment and repeal.

AUTHORITY: The provisions of this Part 302 issued under sec. 9, 64 Stat. 881; 12 U.S.C. 1819.

date thereof except as specified in § 302.6 or otherwise excepted by law. § 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.

§ 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 Corporation District in which the bank or proposed bank is or will be located. Any such application 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. Any such application 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 title for list of forms and instructions.) § 303.2 Application by insured State

nonmember bank establish

branch. Application by an insured State nonmember bank (except a District bank) to establish and operate a new branch should be filed with the Supervising Examiner of the Federal Deposit Insurance Corporation 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 title for list of forms and instructions.) § 303.3 Application by insured State

to

a

PART 303—APPLICATIONS, RE

QUESTS, AND SUBMITTALS Sec. 303.1 Application by nonmember bank for

deposit insurance. 303.2

Application by insured State non

member bank to establish

branch. 303.3 Application by insured State non

member bank to move main office

or branch. 303.4 Application by insured State non

member bank to reduce or retire

capital. 303.5 Application for conversion, merger,

consolidation, assumption, and

sale of asset transactions. 303.6 Application by insured State non

member bank to extend its cor

porate or charter powers. 303.7 Application to continue or resume

insured status. 303.8 Application for exemption from or

exception to advertising require

ments. 303.9 Other applications. 303.10 Procedure on applications. 303.11 Delegation of authority to act on

certain applications. 303.12 Applications where authority to act

is not delegated. 303.13 Other delegations of authority.

AUTHORITY: The provisions of this part 303 issued under secs. 5, 6, 8, 9, 18, 19, 64 Stat. 876, 879, 881, 891, 893; 12 U.S.C. 1815, 1816, 1818, 1819, 1828, 1829.

SOURCE: The provisions of this part 303 appear at 32 F.R. 10556, July 19, 1967, unless otherwise noted.

a

nonmember bank to move main

office or branch. Application for the consent of the Corporation to move the main office or branch of an insured State nonmember bank (except a District bank) should be filed with the Supervising Examiner of

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

3 "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, or the Virgin Islands at which deposits are received or checks paid or money lent.” (Sec. 3(0) of the Federal Deposit Insurance Act, as amended (12 U.S.C. 1813(0)).

the Federal Deposit Insurance Corporation 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 title 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 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 Corporation 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 title for list of forms and instructions.) 8 303.5 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 Habilities 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 Corporation 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 upon request from the office of said Supervising Examiner.

(b) Conversion with diminution of capital or surplus. Application for the

appropriate form of application and into an insured State nonmember bank (except a District bank)—when the conversion will result in the converted bank's having less capital stock or surplus than the converted bank at the time of the shareholders' meeting approving such conversion-together with copies of the charter and/or articles of association of the converted bank, should be filed with the Supervising Examiner of the Federal Deposit Insurance Corporation 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 ühe 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 relating 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 Corporation 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. § 303.6 Application by insured State

nonmember bank to extend its cor

porate or charter powers. Application for the consent of the Corporation to the extension of the corporate or charter powers of an insured State nonmember bank (except a District bank) should be filed with the Supervising Examiner of the Federal Deposit Insurance Corporation 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 title for list of forms and instructions.)

§ 303.7 Application to continue or re

sume insured status. Application under $ 327.3(c) of this title by a bank whose insured status has been terminated for permission to continue or to resume its status as an insured bank should be filed with the Supervising Examiner of the Federal Deposit Insurance Corporation District in which the bank is located. Such application should (a) be in writing, (b) be signed by the president, or cashier, or other managing officer of the bank, (c) be accompanied by a certified copy of the resolution of its board of directors authorizing the submission of such application, (d) contain a statement that the bank's insured status has been terminated (including 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) state the reasons why the continuance or resumption of such status should be permitted by the Corporation. $ 303.8 Application for exemption from

or exception to advertising require

ments. Any application made by an insured bank under any of the provisions of Part 328 of this title 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. $ 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 (a) be in writing, (b) be signed by the applicant or his duly authorized agent, (c) 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 (d) 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 title should be used, the instructions issued with respect thereto should be followed, and submission should be made as therein provided. § 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 Board of Review or 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, in

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