AUTHORITY: Sec. 17, 47 Stat. 736, as amended; 12 U.S.C. 1437, Reorg. Plan No. 3 of 1947, 12 FR 4981, 3 CFR, 1943-48 Comp., p. 1071.

SOURCE: 38 FR 19017, July 17, 1973, unless otherwise noted.

NOMENCLATURE CHANGE: 39 FR 31624, Aug. 30, 1974.

Subpart A-Functions and Responsibilities of the Board

§ 500.1 General statement and statutory authority.

The Federal Home Loan Bank Board (referred to in this subchapter as "Board") is responsible for the administration and enforcement of the Federal Home Loan Bank Act, the Home Owners' Loan Act of 1933, Title IV of the National Housing Act, and with respect to institutions subject to provisions of the

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foregoing acts and title, the Bank Protection Act of 1968, the Truth in Lending Act, and the Fair Credit Reporting Act. The members of the Board constitute the Board of Directors of the Federal Home Loan Mortgage Corporation, which was created by Title III of the Emergency Home Finance Act of 1970.

§ 500.2 The Federal Home Loan Bank System.

The Board supervises the Federal Home Loan Banks created by the Federal Home Loan Bank Act and issues regulations and orders for carrying out the purposes of the provisions of that Act. Savings and loan associations and other institutions specified in section 4 of the Federal Home Loan Bank Act that make long-term home mortgage loans are eligible to become members of a Federal Home Loan Bank. The functions of the Board with respect to the Banks and their members include, but are not limited to, the following: prescribing the conditions upon which a Federal Home Loan Bank is authorized to make advances to its members and to nonmembers borrowers; prescribing rules governing the payment and advertisement of interest or dividends on deposits, shares, or withdrawable accounts that may be paid by Bank members, other than those members the deposits of which are insured in accordance with the provisions of the Federal Deposit Insurance Act; prescribing rules and conditions upon which a Federal Home Loan Bank shall be authorized to borrow, to pay interest upon its borrowings, and to issue obligations; issuing upon such conditions as the Board may prescribe consolidated Federal Home Loan Bank bonds, notes, or debentures which are the joint and several obligations of all Federal Home Loan Bank; requiring examination of each Federal Home Loan Bank at least annually; appointing four directors to the board of directors of each Bank and conducting the election of the remaining directors by the members; approving dividends paid by each Federal Home Loan Bank; and acting on applications for Bank membership.

[39 FR 45257, Dec. 31, 1974]

§ 500.3 The Federal savings and loan system.

The Board is authorized under such rules and regulations as it may prescribe

to provide for the organization, incorporation, examination, operation, and regulation of Federal savings and loan associations. Under this authority, the Board's functions include, but are not limited to, regulation of the corporate structure of such associations, regulation of the distribution of their earnings, regulation of their lending and other investment powers, acting upon their applications for branch offices, mobile facilities, and satellite offices, the regulation of mergers, conversions, and dissolutions involving such associations, the appointment of conservators and receivers for such associations, and the enforcement of laws, regulations, or conditions against such associations or the officers or directors thereof by proceedings under section 5 of the Home Owners' Loan Act of 1933, as amended.

§ 500.4 The Federal Savings and Loan Insurance Corporation.

The Federal Savings and Loan Insurance Corporation is under the direction of the Federal Home Loan Bank Board. The Corporation insures the accounts of all Federal savings and loan associations and of other building and loan, savings and loan, and homestead associations and cooperative banks that are eligible for insurance and the applications of which have been approved by the Corporation. The Corporation regulates and examines insured institutions within the authority conferred by Title IV of the National Housing Act and is authorized to enforce applicable laws, regulations, or conditions against insured institutions or the officers or directors thereof by proceedings under section 407 of the National Housing Act, as amended. The Corporation also regulates and supervises savings and loan holding companies pursuant to the provisions of section 408 of the National Housing Act, as amended. § 500.5 District of Columbia savings and loan associations.

The Board exercises supervisory and regulatory authority over all building and loan or savings and loan associations and similar institutions of or doing business in or maintaining offices in the District of Columbia.

Subpart B-General Organization

with the advice and consent of the Senate for four year terms. The Chairman is designated by the President and is the chief executive officer of the Board. Executive and administrative functions of the Board were transferred to the Chairman by Reorganization Plan No. 6 of 1963. The Board is assisted by a staff that includes ten Offices.

[39 FR 45257, Dec. 31, 1974]

§ 500.11 Secretary to the Board.

The Secretary to the Board is responsible for the secretarial functions of the Federal Home Loan Bank Board and the Federal Savings and Loan Insurance Corporation and has custody of the records of the Board of the Corporation. The Secretary to the Board is responsible for the preparation and maintenance of the Minute Record of all official actions of the Board, for the authentication of documents and for certifications. The Office of the Secretary provides general record services for the Board through the Files and Docket Section, which is under the direction and supervision of the Secretary to the Board. The Secretary to the Board is liaison Officer to the Federal Register. The same person may be the Secretary to the Board and the Director of an Office at the same time.

[39 FR 45257, Dec. 31, 1974] § 500.12

Congressional Liaison Officer.

The Congressional Liaison Officer is responsible to the Chairman for ensuring appropriate co-ordination and communication with Congress.

§ 500.13 Director of the Office of Management Systems and Administration. The Director of the Office of Management Systems and Administration is the Executive Assistant to the Chairman. The Director is responsible for the supervision and administration of the Office, which is divided into five divisions: The Financial Management Division, the Administration and Methods Division, the Personnel Management Division, the Information Systems Division, and the Management Systems Division.

(a) The Financial Management Division is responsible for the administration and management of the internal financial operations of the Board and the Federal Savings and Loan Insurance Corporation, including budgeting, accounting, the receipt and disbursement of funds, the control, processing, and

payment of expenses, and the maintenance of pay and leave records. This Division is also responsible for the preparation of the Board's annual budget submissions to the Office of Management and Budget and to the Congress.

(b) The Administration and Methods Division is responsible for internal management reports and studies, records and forms control, and the maintenance of a manual of procedures. The Board's emergency planning program for the continuity of operations and relocation of the agency in the event of an emergency is also a function of this Division. The Division is responsible for conducting purchase and supply operations, sorting, receiving, and distributing mail, maintenance, transportation, acquiring and allocating space, contract administration and other housekeeping functions for the Board. A printing and re-‹ production plant is operated by this Division, as authorized by the Congressional Joint Committee on Printing.

(c) The Personnel Management Division is responsible for the development and execution of the personnel management program of the Board. The program includes recruitment, placement and staffing; position classification and wage administration; employee development and training; employee-management relations; health insurance, life insurance, and retirement benefits; and incentive awards. The Director of the Personnel Management Division is also responsible for carrying out the purposes of Executive Order No. 10450, amended, as Personnel Security Officer of the Board.

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(d) The Information Systems Division compiles and distributes information essential in measuring the operations of the members of the Federal Home Loan Bank System, as well as that information necessary to the internal operations of the Board itself. The Division is responsible for the planning, design, programming, operation, and maintenance of Electronic Data Processing systems for the Board and for furnishing technical advice and assistance to other Offices and Divisions in connection with Electronic Data Processing operations.

(e) The Management Systems Division is responsible for financial, operational and management audits, and for other organizational and management development systems as directed by the Chairman. This Division includes the former Office of Audits which was responsible,

inter alia, for the continuing audit of the operations of the Federal Home Loan Bank Board and the Federal Savings and Loan Insurance Corporation.

[38 FR 19017, July 17, 1973, as amended at 39 FR 45258, Dec. 31, 1974]

§ 500.14

Director of the Office of Economic Research.

The Director of the Office of Economic Research is the principal economic adviser to the Board and is responsible for the analysis of economic data, including but not limited to the conditions and operations of savings and loan institutions, financial intermediaries, mortgage and housing markets, and real estate matters generally. The Director selects and conducts economic studies that he determines to be of need and value of the Board. The Director has joint responsibility with the Director of the Office of Management Systems and Administration for the collection and internal use of savings and loan data and is responsible for the dissemination of such data in statistical form outside the Board. He is responsible for the economic analysis of merger applications with respect to possible impact on competition; and for assisting and co-ordinating the work and programs of Federal Home Loan Bank economists.

§ 500.16 Director of the Office of Communications.

The Director of the Office of Communications is responsible for the communication of Board actions and policy to the public and news media and for the preparation of responses to inquiries of a general nature respecting such actions and policy. The Management Information Center is maintained as a part of this Office.

[39 FR 45258, Dec. 31, 1974]

§ 500.17 The General Counsel.

The General Counsel is the chief legal officer of the Board and has, among other functions, those set forth below. He is responsible for the representation of the Board and the Federal Savings and Loan Insurance Corporation in judicial proceedings in which the Board or the Corporation is involved as a party or as amicus curiae and in administrative proceedings under the Federal Home Loan Bank Act, the Home Owners' Loan Act of 1933, and Title IV of the National Housing Act. He is responsible for advising the Board with respect to interpreta

tions involving questions of law, for the preparation of legislation submitted by the Board to Congress, for the preparation of Board comments to Congress upon pending legislation, and for the preparation of regulations. He is also responsible for dealing with general problems arising under the Administrative Procedure Act and for dealing with legal problems arising under applications to the Board and the Federal Savings and Loan Insurance Corporation. The Office of the General Counsel has two Deputy General Counsels and seven Divisions, as follows: The Compliance Division, the General Division, the Legislation Division, the Litigation Division, the Opinions Division, the Regulations Division and the Securities Division. [39 FR 45258, Dec. 31, 1974]

§ 500.18 Director of the Office of Examinations and Supervision.

The Director of the Office of Examinations and Supervision is responsible for the performance of the responsibilities of the Board and the Federal Savings and Loan Insurance Corporation with respect to the examination and supervision of Federal savings and loan associations under the Home Owners' Loan Act of 1933 and of State-chartered insured institutions, savings and loan holding companies, and subsidiaries of savings and loan holding companies under Title IV of the National Housing Act. The Director is also responsible for advising the Board with respect to matters of policy decision, legislation, and regulation to which his functions of supervision and examination are related. The Director is responsible for the management of the examination process and the development and improvement of examination techniques and for the direction of supervisory and enforcement activities of the staff and agents of the Board and the Federal Savings and Loan Insurance Corporation. This Office supervises the security programs of insured institutions required by the Bank Protection Act of 1968 and the enforcement of the Truth in Lending Act, the Fair Credit Reporting Act and the Currency and Foreign Transactions Reporting Act.

[39 FR 45258, Dec. 31, 1974]

§ 500.19 Director of the Office of Industry Development.

The Director of the Office of Industry Development is responsible for the proc

essing, review, and evaluation of certain applications to the Board and the Federal Savings and Loan Insurance Corporation, except for those instances in which such applications are approved by an agent or officer of the Board pursuant to delegated authority. Applications for which the Director is responsible concern the following matters: permission to organize a Federal savings and loan association; a branch office, limited facility branch office, satellite office, or mobile facility of an existing Federal savings and loan association; insurance of accounts; conversion from Federal to State or from State to Federal charter; membership in the Federal Home Loan Bank System; a merger involving a Federal savings and loan association; voluntary dissolution of a Federal savings and loan association; an increase in accounts of an insurable type through merger, consolidation, or purchase of bulk assets; investment in a service corporation by a Federal savings and loan association; a change in office location; investment in an office building; waiver or modification of a condition for insurance of accounts or issuance of a Federal charter; release of pledged savings accounts or escrowed stock; extension of a lending area; approval of designation of a reserve account as part of the Federal insurance reserve; approval of amendments to charter, bylaws, or security forms; permission to issue subordinated debt securities; remote service unit applications; and other applications for which the Director of this Office may be assigned responsibility. The Director of this Office is also responsible for planning and coordinating new programs to stimulate the development of the savings and loan industry by encouraging financially sound restructuring. [39 FR 45258, Dec. 31, 1974] $ 500.20

Director of the Office of the Federal Savings and Loan Insurance Corporation.

The Director of the Office of the Federal Savings and Loan Insurance Corporation is responsible for advising the Board with respect to the policies and operations of the Corporation. In coordination with the General Counsel and the Director of the Office of Examinations and Supervision, the Director is responsible for the development and implementation of plans of financial assistance to prevent the default of insured institutions. He is also responsible for the implementation and settle

ment of the Corporation's insurance obligations and for the management and liquidation of assets acquired by the Corporation as receiver or otherwise.

§ 500.21

Director of the Office of the Federal Home Loan Banks.

The Director of the Office of the Federal Home Loan Banks is responsible for reviewing the activities of the Banks and for directing and co-ordinating their operating procedures to ensure conformity with the goals and objectives of the Board. The Director is responsible for establishing standards of accounting, reporting, and financial analysis for the Banks and for providing advice and assistance to the Banks in their operations, including but not limited to, data processing, planning, and community activity. He is also responsible for advising the Board with respect to policy decisions respecting the Banks and making recommendations concerning such matters as budgets, the elections of officers and counsel, salaries, dividends, and bylaw amendments. The Director is also responsible for annual examinations of each Federal Home Loan Bank. [39 FR 45258, Dec. 31, 1974]

$ 500.22 Director of the Office of Housing and Urban Affairs.

The Director of the Office of Housing and Urban Affairs is responsible for advising the Board on the subject of housing, urban problems, and minority affairs and for recommending policies perEtaining thereto. The Office develops and implements programs in low- and moderate-income housing, inner-city housing investment and rehabilitation, preventEing discrimination in lending and employment by the savings and loan industry, and assisting minority groups who apply for Federal charters or insurance of accounts. The Office is also responsible for administrative oversight of the Urban Reinvestment Task Force, an interagency task force established by the Board in conjunction with the Department of Housing and Urban Development.

[39 FR 45259, Dec. 31, 1974]

Subpart C-Procedures

§ 500.30 General statement concerning procedures and forms.

(a) Rules and procedures of the Board and the Federal Savings and Loan Insurance Corporation are published in Chapter V of Title 12 of the Code of Federal

Regulations and in supplementary material published in the Federal Register. The statutes administered by the Board and the rules and regulations promulgated pursuant to such statutes prescribe the course and method of the formal procedures to be followed in proceedings of the Board or the Federal Savings and Loan Insurance Corporation. These are supplemented where practicable by informal procedures designed to aid the public and facilitate the execution of the Board's functions. The informal procedures of the Board consist principally in the rendering of advice and assistance to members of the public dealing with the Board. Opinions expressed by members of the staff do not constitute an official expression of the views of the Board, but do represent views of persons working with the provisions of the statute or regulation involved.

(b) Information with respect to procedures, forms, and instructions of the Board and the Federal Savings and Loan Insurance Corporation is available to the public at the headquarters of the Board or at the offices of the Federal Home Loan Banks. Forms of concern to the public consist principally of periodic financial reports and of applications to the Board or the Federal Savings and Loan Insurance Corporation. The Board and the Federal Savings and Loan Insurance Corporation may from time to time require the completion by individuals or institutions of miscellaneous forms, questionnaires, reports, or other papers. In each instance, the individual or institution is given actual and timely notice of the scope and contents of the papers in question.