1983; 50 FR 19332, May 8, 1985; 50 FR 53274, Dec. 31, 1985; 52 FR 7124, Mar. 9, 1987; 52 FR 49383, Dec. 31, 1987]

§ 584.7 Payment of dividends to a diversified savings and loan holding company. (a) Prohibitions. Except as provided in paragraph (b) of this section, no diversified savings and loan holding company or any subsidiary thereof may accept, use, or receive the benefit of any dividend on stock from a subsidiary insured institution, and such insured institution may not declare or pay any dividend on its stock to such holding company or subsidiary if the Corporation, within the 30-day notice period specified in § 584.5, objects to such dividend as being injurious to the insured institution in the light of its financial condition and prospects.

(b) Nonapplicability. The prohibition of paragraph (a) of this section does not apply to a diversified savings and loan holding company or any subsidiary thereof if the Corporation finds that, excluding such Company's subsidiary insured institution, such company's consolidated net income available for interest for its preceding fiscal year was twice its consolidated debt service requirements for the 12month period next succeeding such fiscal year.

[33 FR 3323, Feb. 22, 1968]

§ 584.8 Claim of diversified savings and loan holding company status.

(a) Claim of diversified status. Any savings and loan holding company desiring to claim status as a diversified savings and loan holding company shall file with the Corporation a statement asserting such claim, supported by completed schedules in the form set forth below. Such claim shall be filed with the Corporation by transmitting the original and one copy of such statement together with the supporting schedules, to the Director or Deputy Director, Office of Examination and Supervision, Federal Home Loan Bank Board, Washington, D.C. 20552, and one copy thereof to the Supervisory Agent.

A. Net Worth Requirement

1. The portion of consolidate net worth at the close of its last preceding fiscal year (or as of any date subsequent thereto and prior

Instructions. 1. If the books and records of the registrant and its subsidiaries do not permit a definitive segregation of consolidated net worth for the foregoing purposes, the registrant shall furnish a statement to that effect and shall make reasonable estimates thereof, setting forth in an exhibit in reasonable detail the basis for the estimates.

2. In separate exhibits, designate and state separately the amounts of net worth or net earnings attributable to each category of services and activities specified in § 583.13 of Part 583 of this subchapter, including the names of subsidiaries and the registrant, where applicable.

3. The data required by schedules A and B above and supporting exhibits are to be prepared in accordance with generally accepted accounting principles, except as otherwise required by the Corporation. All subsidiaries, however, shall be consolidated, and consolidating statements shall be furnished as exhibits.

(b) Determination by the Corpora tion. Any savings and loan holding company which files a bona fide state

ment of claim, supported by the required schedules, containing reasonable supporting information, pursuant to paragraph (a) of this section, will be presumed to have status as a diversified savings and loan holding company until such time as notice of a determination to the contrary is given by the Corporation. Any savings and loan holding company which does not file such a claim will be presumed not to have status as a diversified savings and loan holding company.

[33 FR 3323, Feb. 22, 1968, as amended at 38 FR 3040, Feb. 1, 1973; 41 FR 48729, Nov. 5, 1976]

(a) Control of mutual insured institution. No savings and loan holding company or any subsidiary thereof, or any director, officer, or employee of a savings and loan holding company or subsidiary thereof, or person owning, controlling, or holding with power to vote, or holding proxies representing, more than 25 percent of the voting shares of such holding company or subsidiary, may hold, solicit, or exercise any proxies in respect of any voting rights in a mutual insured institution.

(b) Management interlocks. No director or officer of a savings and loan holding company, or any person owning, controlling, or holding with power to vote, or holding proxies representing more than 25 percent of the voting shares of such holding company may:

(1) Serve at the same time as a director, officer, or employee of an insured institution or of another savings and loan holding company, not a subsidiary of such holding company, except with the prior written approval of the Corporation. Such approval may be granted upon a showing that the service of such officer; director or person would be consistent with the public interest, taking into account, among other factors: The degree of involvement of the officer, director or person in the affairs of each insured institution and of other financial institutions, the degree of business relationship existing between or among the insured institutions involved, the physical proximity of the insured institu

tions involved, and the percentage of consolidated net income and assets of any applicant holding company represented by its subsidiary insured institutions.

(2) Acquire control, or retain control for more than 2 years after February 14, 1968, of any insured institution not a subsidiary of such holding company.

(c) Convicted persons. No individual who has been convicted of any criminal offense involving dishonesty or breach of trust may serve or act as a director, officer, or trustee of, or become a partner in, any savings and loan holding company, except with the prior written approval of the Corporation.

(d) Applications for approval. Applications for Corporation approval required by this section shall contain a full statement of the reasons in support thereof. Such applications shall be filed with the Corporation by transmitting the original and one copy to the Director or Deputy Director, Office of Examinations and Supervision, Federal Home Loan Bank Board, Washington, D.C. 20552, and one copy to the Supervisory Agent.

(e) Approval by the Supervisory Agent. The Supervisory Agent may give prior written approval for any management interlock requiring the Corporation's approval under paragraph (b) of this section if (1) the interlock is not prohibited by Part 563f of this chapter and (2) the Supervisory Agent determines the interlock would not be likely to have an anticompetitive effect and would not be objectionable on supervisory grounds. Applications for the Supervisory Agent's approval shall be filed with the Supervisory Agent.

[33 FR 3323, Feb. 22, 1968, as amended at 38 FR 22769, Aug. 24, 1973; 41 FR 48730, Nov. 5, 1976; 46 FR 57030, Nov. 20, 1981]

§ 584.10 Statements, applications, reports and notices to be filed.

(a) Registration statements and annual reports for savings and loan holding companies under § 584.1-(1) Registration statements-(i) H-(b)10. This statement shall be used for registration by every savings and loan holding company, including subsidiary sav

ings and loan holding companies, except trusts (other than a business trust) and savings and loan holding companies which file H-(b)3, H-(b)4, or H-(b)5 registration statements.

(ii) H-(b)3. Corporation as trustee of a trust. This statement (rather than H-(b)10) shall be used for registration by any Corporation which is a savings and loan holding company by virtue of its control, in a trustee capacity, of an insured institution.

(iii) H-(b)4. Creditor as savings and loan holding company. This statement (rather than H-(b)10) may be used for registration by any company which is a creditor and is a savings and loanholding company only by virtue of the acquisition of control of an insured institution or another savings and loan holding company pursuant to a pledge or hypothecation to secure a loan, or in connection with the liquidation of a loan, made in the ordinary course of business.

(iv) H-(b)5. Voting trust as savings and loan holding company. This statement (rather than H-(b)10) shall be used for registration by any voting trust which is a savings and loan holding company by virtue of its control of an insured institution or another savings and loan holding company.

(2) Annual report. H-(b)11. This report shall be used by every registered savings and loan holding company, including subsidiary savings and loan holding companies, except trusts (other than business trusts) and savings and loan holding companies filing H-(b)3, H-(b)4, and H-(b)5 registration statements.

(3) H-(b)12. This report shall be used by every registered savings and loan holding company which is required to file an H-(b)11.

NOTE: These reporting requirements have been approved by the Office of Management and Budget.

(b) H-(ƒ)—Notice of proposed dividend declaration under § 584.5. This notice shall be filed by a subsidiary insured institution for the purpose of giving the Corporation advance notice of the proposed declaration of any dividend on its guaranty, permanent, or other nonwithdrawable stock.

(c) Applications under § 584.3(a). (1) A letter application shall be used to

describe and justify all applications filed under § 584.3(a)(4) by a subsidiary insured institution of a savings and loan holding company for the Corporation's approval of an extension of credit to a third party on the security of property acquired from a wholly-owned service corporation of such institution.

(2) H-(d)2. This application shall be used for all applications under § 584.3(a)(6) filed by a subsidiary insured institution of a savings and loan holding company for approval of certain transactions with affiliates.

(d) Applications under § 584.6. H-(g). This application shall be used for all applications under § 584.6 filed by a savings and loan holding company and/or its noninsured subsidiaries for approval of the issuance, sale, renewal, or guarantee of any debt security or assumption of any debt by such companies.

[33 FR 3323, Feb. 22, 1968, as amended at 34 FR 3796, Mar. 5, 1969; 34 FR 9209, June 11, 1969; 38 FR 3040, Feb. 1, 1973; 46 FR 57030, Nov. 20, 1981; 50 FR 48725, Nov. 26, 1985]

Sec.

PART 585-AMENDMENT OF

REGULATIONS; HEARINGS

585.1 Amendment of regulations. 585.2 Hearings.

AUTHORITY: Sec. 408, 82 Stat. 5 (12 U.S.C. 1730a).

§ 585.1 Amendment of regulations.

The regulations in this subchapter, subject to any specific provision contained in this subchapter, may be amended in whole or in part at any time in accordance with the provisions set forth in Subchapter A of this chapter.

[33 FR 3328, Feb. 22, 1968]

§ 585.2 Hearings.

Any person who has made an application or petition to the Board pursuant to any provision of this subchapter may request a hearing thereon: Provided, That such application or petition has been denied or disapproved, in whole or part, by the Board. At any time after the filing of any such appli

cation or petition and before consideration thereof by the Board, any interested person may request a hearing upon such application or petition. The Board may order a hearing in connection with the consideration of any matter arising under any provision of the regulations in this subchapter and under section 408 of the National Housing Act, as amended, whether or not any request therefor has been made by any person. The Board may deny any request for, or dispense with, any hearing for which this section provides when, in its judgment, no need therefor exists.

[33 FR 3328, Feb. 22, 1968]

PART 588-STATEMENTS OF POLICY

AUTHORITY: Sec. 402, 48 Stat. 1256, as amended; sec. 408, 48 Stat. 1261, as added by 73 Stat. 691, as amended (12 U.S.C. 1725, 1730a); Reorg. Plan No. 3 of 1947, 12 FR 4981, 3 CFR, 1943-48 Comp., p. 1071.

§ 588.1 Applications involving gold or gold-related transactions.

Section 584.2-1(b) authorizes multiple holding companies and their subsidiaries, other than subsidiary insured institutions and service corporation subsidiaries of such institutions, to engage in certain prescribed services and activities, subject to certain conditions. Multiple holding companies and their above-described subsidiaries may engage in other services and activities, as approved by the Corporation pursuant to an application under § 584.2(b)(6). The Corporation will not approve an application under § 584.2(b) (6) to engage in any transaction or activity involving gold (including any type of gold coin) or gold-related instruments or securities, including buying, holding, selling or otherwise dealing with gold or gold-related instruments or securities.

[40 FR 17247, Apr. 18, 1975]

§ 590.1 Authority, purpose, and scope.

(a) Authority. This part contains regulations issued under section 501 of the Depository Institutions Deregulation and Monetary Control Act of 1980, Pub. L. 96–221, 94 Stat. 161.

(b) Purpose and scope. The purpose of this permanent preemption of state interest-rate ceilings applicable to Federally-related residential mortgage loans is to ensure that the availability of such loans is not impeded in states having restrictive interest limitations. This part applies to loans, mortgages,

credit sales, and advances, secured by first liens on residential real property, stock in residential cooperative housing corporations, or residential manufactured homes as defined in § 590.2 of this part.

[45 FR 24113, Apr. 9, 1980]

§ 590.2 Definitions.

(3) Made by any lender approved by the Secretary of Housing and Urban Development for participation in any mortgage insurance program under the National Housing Act;

(4) Made in whole or in part by the Secretary of Housing and Urban Development; insured, guaranteed, supplemented, or assisted in any way by the Secretary or any officer or agency of the Federal government, or made under or in connection with a housing or urban development program administered by the Secretary, or a housing or related program administered by any other such officer or agency;

(5) Eligible for purchase by the Federal National Mortgage Association, the Government National Mortgage Association, or the Federal Home Loan Mortgage Corporation, or made by any financial institution from which the loan could be purchased by the Federal Home Loan Mortgage Corporation; or

(6) Made in whole or in part by any entity which:

(i) Regularly extends, or arranges for the extension of, credit payable by agreement in more than four installments or for which the payment of a finance charge is or may be required; and

real property loans, including loans secured by first liens on residential manufactured homes that aggregate more then $1,000,000 per year, except that the latter requirement shall not apply to such an entity selling residential manufactured homes and providing financing for such sales through loans or credit sales secured by first liens on

(ii) Makes or invests in residential

(a) Loans means any loans, mortgages, credit sales, or advances.

(b) Federally-related loans include any loan:

(1) Made by any lender whose deposits or accounts are insured by any agency of the Federal government;

(2) Made by any lender regulated by any agency of the Federal government;

the entity has an arrangement to sell such loans or credit sales in whole or in part, or where such loans or credit sales are sold in whole or in part, to a lender or other institution otherwise included in this section.

(c) “Loans which are secured by first liens on real estate" means loans on the security of any instrument (whether a mortgage, deed of trust, or land contract) which makes the inter