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SUBCHAPTER A-PROCEDURE AND RULES OF PRACTICE

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§ 303.0 Scope and definitions.

(a) Scope. This part prescribes:

(1) Where applications, requests, and
notices of acquisition of control (here-
inafter, collectively, applications)
should be filed;

(2) The contents of the application
when the application is to be made by
letter; and

(3) The location where forms and in-
structions may be obtained when the
application is to be made on a form.

Part 303 also prescribes procedures to
be followed by both the FDIC and ap-

plicants during the process of consid-

eration of an application. Finally, this
part sets forth delegations of author-

ity by the FDIC's Board of Directors

to the Director of the Division of Su-

pervision, and to the associate direc-

tors of the Division of Supervision and

to the regional directors and deputy

regional directors to act on certain ap-

plications and other matters and the

conditions, where applicable, that

limit such delegations.

(b) Definitions. For purposes of this

part 303:

(1) The terms Corporation, or FDIC

shall mean the Federal Deposit Insur-

ance Corporation.

(2) The term division shall mean

the Division of Supervision.

(3) The term Director shall mean

the Director of the Division of Super-

vision, or in the event the title of Di-

rector becomes obsolete, any official of

comparable authority within the divi-

sion.

(4) The term associate director shall

mean any associate director of the Di-

vision of Supervision, or in the event

the title of associate director becomes

obsolete, any official of comparable

authority within the division.

(5) The term regional director shall

mean any regional director of the Di-

vision of Supervision, or in the event

the title regional director becomes ob-

solete, any official of comparable au-

thority within the division.

(6) The term regional counsel shall

mean a regional counsel (Supervision),

or in the event the title of regional

counsel becomes obsolete, any official

of comparable authority within the

Office of the General Counsel. The

duties and responsibilities of a region-
al counsel may be performed by the
associate general counsel or a counsel
in the Compliance and Enforcement
Section of the Office of the General
Counsel in the FDIC's Washington,
DC office.

(7) The term deputy regional direc-
tor shall mean a deputy regional direc-
tor (Supervision), or in those FDIC re-
gions where there is no deputy region-

al director, an assistant regional director (Supervision). In the event the title of deputy regional director or assistant regional director becomes obsolete, the term deputy regional director shall then mean any official of comparable authority within the same FDIC region of the division.

(8) The terms appropriate FDIC region, appropriate FDIC regional office, appropriate regional director, appropriate deputy regional director and appropriate regional counsel shall refer to the FDIC region, the regional director (Supervision), the deputy regional director (Supervision), and the regional counsel (Supervision), respectively, of the FDIC region in which:

(i) The applicant depository institution, the proposed or newly organized nonmember bank or savings association, the insured branch of a foreign bank, the resulting or assuming depository institution, or the bank in which stock is being acquired, as appropriate, is or will be located, or

(ii) A depository institution.

(A) Which is the subject of an administrative action; or

(B) With which an individual who is the subject of an administrative action is associated, is located.

(9) The term the Act shall mean the Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.).

(10) The term order of correction shall mean findings of unsafe or unsound practices or condition and an order of correction issued under section 8(a) of the Act (12 U.S.C. 1818(a)).

(11) The term section 8(a) order shall mean an order terminating insured status under section 8(a) of the Act (12 U.S.C. 1818(a)).

(12) The term notice of charges shall mean a notice of charges and of hearing setting forth the allegations of unsafe or unsound practices and/or violations and fixing the time and place of the hearing issued under section 8(b) of the Act (12 U.S.C. 1818(b)).

(13) The terms section 8(b) order and cease-and-desist order shall mean a final order to cease and desist issued under section 8(b) of the Act (12 U.S.C. 1818(b)).

(14) The terms section 8(c) order and temporary cease-and-desist order shall

mean a temporary order to cease and desist issued under section 8(c) of the Act (12 U.S.C. 1818(c)).

(15) The term section 8(e) order shall mean a final order of removal or prohibition issued under section 8(e) of the Act (12 U.S.C. 1818(e)).

(16) The term section 8(e)(3) order and temporary section 8(e) order shall mean a temporary order of suspension or prohibition issued under section 8(e)(3) of the Act (12 U.S.C. 1818(e)(3)).

(17) The term section 8(g) order shall mean an order of suspension or prohibition issued under section 8(g) of the Act (12 U.S.C. 1818(g)).

(18) The term remote service facility shall mean an automated teller machine, cash dispensing machine, pointof-sale terminal, or other remote electronic facility where deposits are received, checks paid, or money lent.

(19) The term notice of assessment of civil money penalties shall mean a notice of assessment of civil penalties issued pursuant to section 7(j)(15), 8(i) or 18(j) of the Act (12 U.S.C. 1817(j)(15), 1818(i), or 1828(j)), section 106(b) of the Bank Holding Company Act (12 U.S.C. 1972), or section 910(d) of the International Lending Supervision Act of 1983 (12 U.S.C. 3909).

(20) The term final order to pay shall mean an order to forfeit and pay civil money penalties which has become final and which has been issued pursuant to section 7(j)(15), 8(i), or 18(j) of the Act (12 U.S.C. 1817(j)(15), 1818(i), or 1828(j)), section 106(b) of the Bank Holding Company Act (12 U.S.C. 1972), or section 910(d) of the International Lending Supervision Act of 1983 (12 U.S.C. 3909).

(21) The term book capital shall mean total equity capital which is comprised of perpetual preferred stock, common stock, surplus, undivided profits and capital reserves, as those items are defined in the instructions of the Federal Financial Institutions Examination Council (FFIEC) for the preparation of Consolidated Reports of Condition and Income for insured banks.

(22) The term adjusted Tier 1 capital shall mean adjusted Tier 1 capital as calculated and reflected in the FDIC's Reports of Examination.

(23) The term total assets shall mean total assets as defined in the instructions of the FFIEC for the preparation of Consolidated Reports of Condition and Income for insured banks.

(24) The term adjusted part 325 total assets shall mean adjusted part 325 total assets as calculated as reflected in the FDIC's Reports of Examination.

(25) The term protest shall include any comment from the public which raises a negative issue relative to the Community Reinvestment Act, whether or not it is labeled a protest and whether or not a hearing is requested; however, the term protest shall not include any such comment which the regional director determines to be frivolous, or to have been filed for competitive reasons by a financial institution, or to have been filed primarily as a means of delaying action on the application, or any comment which raises negative Community Reinvestment Act issues that have been resolved as between the commenter and the applicant.

(26) The term standard conditions refers to conditions that any delegate may include as a matter of routine in an order approving an application, whether or not the applicant has agreed to their inclusion. The following conditions, or variations thereof, are standard conditions:

(i) That the applicant has obtained all necessary and final approvals from the appropriate state authority or other applicable authority;

(ii) That if the transaction does not take effect within a specified time limit, or unless, in the meantime, a request for an extension of time has been approved, the consent granted shall expire at the end of the said time period;

(iii) That until the conditional commitment of the FDIC becomes effective, the FDIC retains the right to alter, suspend or withdraw its commitment should any interim development be deemed to warrant such action; and (iv) In the case of a merger transaction (as defined in § 303.7(b)(1)), including a phantom merger or reorganization, that the proposed transaction not be consummated before the thirti

eth calendar day after the date of the order approving the merger.

(27) Any use of the masculine, feminine, or neuter gender shall be read as encompassing all three, if such use would be appropriate.

[54 FR 53555, Dec. 29, 1989, as amended at 56 FR 23011, May 20, 1991]

§ 303.1 Application by nonmember bank, state savings association, and Federal savings association for deposit insur

ance.

Application for deposit insurance by an existing or proposed nonmember bank,1 state savings association or Federal savings association should be filed with the appropriate regional director. The relevant application forms and instructions may be obtained from the appropriate FDIC regional office. [54 FR 53556, Dec. 29, 1989]

§ 303.2 Application by insured state nonmember bank to establish a branch or move its main office or branch.

(a) Application by an insured state nonmember bank (except a District bank) to establish and operate a new branch 2 (including a remote service facility) or to move its main office or branch should be filed with the appropriate regional director. The application shall be mailed or delivered to the regional director on the date on which the notice required in § 303.6(f)(1) is published or not more than 30 days subsequent to the first required publication of notice. The application shall be in letter form and shall contain the following information:

(1) The exact location of the proposed site, including street address (unless one has not been assigned to the location);

(2) Details concerning any involvement in the proposal by an insider (a director, an officer, or a shareholder who directly or indirectly controls 5 or more percent of any class of the appli

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

2 The term branch includes any domestic branch or foreign branch as those terms are defined in section 3(o) of the Act, as amended (12 U.S.C. 1813(o)).

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