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§ 506a.8 Servicing book-entry Federal

home loan bank securities; payment of interest; payment at maturity or upon call.

Interest becoming due on book-entry Federal home loan bank securities shall be charged in the Federal Home Loan Bank Board's symbol account with the Treasurer of the United States on the interest due date and remitted or credited in accordance with the depositor's instructions. Such securities shall be redeemed and charged in the same account on the date of maturity, call or advance refunding, and the redemption proceeds, principal and interest, shall be disposed of in accordance with the depositor's instructions.

§ 506a.9 Obligation of United States with respect to Federal home loan bank securities.

Federal home loan bank securities are not obligations of the United States and are not guaranteed by the United States.

PART 507-HEARINGS

Sec. 507.10 Hearings on regulations for Federal Home Loan Banks.

507.11 Recommendations and representations at hearings by persons other than those requesting hearing. AUTHORITY: The provisions of this Part 507 issued under secs. 6, 17, 47 Stat. 727, as amended, 736, as amended; 12 U.S.C. 1426, 1437.

SOURCE: The provisions of this Part 507 appear at 23 FR. 9880, Dec. 23, 1958, unless otherwise noted.

§ 507.10 Hearings on regulations for Federal Home Loan Banks. After receipt of written requests therefor to the Secretary to the Board of at least seven members of the Federal Savings and Loan Advisory Council, or of at least four of the Federal Home Loan Banks (accompanied by certified resolutions of the boards of directors thereof), or of at least 25 members of the Federal Home Loan Bank System (accompanied by certified resolutions of the boards of directors thereof), the Board will fix a time and place for a hearing on a proposed amendment or upon an existing regulation relating to Federal Home Loan Banks to which petitioners object. The Secretary to the Board will give written notice of the time and place of such hearing to all the members of the Federal Savings and Loan Advisory Council, to the

president of each of the Banks, and to each of the members of the Federal Home Loan Bank System which requested such hearing. The filing of a request for a hearing upon an existing regulation to which petitioners object shall not suspend the operation of such regulation. Any interested person, institution or association may appear in person at such hearing before the Board or may be represented at such hearing by any of its directors, officers, employees, agents, or attorneys-at-law; and may offer evidence and examine witnesses.

§ 507.11 Recommendations and representations at hearings by persons other than those requesting hearing. No hearing upon a proposed amendment, rule, or existing regulation relating to Federal Home Loan Banks to which the petitioners object will be confined to persons requesting such hearing; but each such hearing will be open to any interested persons or to representatives of any Federal Home Loan Bank or member of the Federal Home Loan Bank System. Recommendations of other persons or institutions that may be affected, or from an organized trade association, may be filed with the Secretary to the Board either prior to or during any hearing, and such persons, institutions or associations may appear in person at such hearing before the Board, or may be represented at such hearing by any of their directors, officers, employees, agents, or attorneys-at-law, and be entitled to be heard.

PART 508-PROMULGATION OF REGULATIONS AND AMENDMENTS

Sec. 508.10 508.10-1

508.11

508.12

508.13

508.14

508.15 508.16

Reservation of right to amend. Waiver or relaxation of regulatory provisions with respect to disaster areas.

Amendments of regulations without notice.

Notice of proposed amendments or
regulations not within § 508.11.
Participation of interested persons
in a proposed amendment or rule.
Effective dates of amendments and
rules.

Repeal of rules and regulations.
Coordination of subchapters.

AUTHORITY: The provisions of this Part 508 issued under sec. 17, 47 Stat. 736, as amended; 12 U.S.C. 1437, Reorg. Plan No. 3 of 1947; 8 CFR, 1943-1948 Comp., unless otherwise noted.

§ 508.10 Reservation of right to amend.

The Board expressly reserves the right to amend (including the right to alter or repeal) the regulations set forth in Subchapters A, B, C and D of this chapter.

[23 F.R. 9880, Dec. 23, 1958]

§ 508.10-1 Waiver or relaxation of regulatory provisions with respect to disaster areas.

Whenever the President of the United States determines that a major disaster exists, or declares an area a major disaster area, the Board may, to the extent not inconsistent with law, by resolution waive or relax any limitations pertaining to the operations of Federal savings and loan associations, institutions insured by the Federal Savings and Loan Insurance Corporation and member institutions of the Federal Home Loan Bank System in any area or areas affected by such disaster or so declared. (Secs. 5, 402, 403, 48 Stat. 132, 1256, 1257, as amended; 12 U.S.C. 1464, 1725, 1726) [34 F.R. 6575, Apr. 17, 1969]

§ 503.11 Amendments of regulations

without notice.

Any proposed amendment or rule may be adopted by the Board without compliance with the requirements of §§ 507.10 and 507.11, of this subchapter, and §§ 508.12 and 508.13, which involves any matter relating to Board management or personnel or to public property, loans, grants, benefits, or contracts, or which is deemed to apply to interpretative rules, general statements of policy, rules of Board organization, procedure, or practice, or unless all persons subject to any such proposed amendment or rule are named and either personally or otherwise have actual notice thereof in accordance with law, or in any situation in which the Board for good cause finds (and incorporates the findings and a brief statement of the reasons therefor in the amendments or rules issued) that notice and public procedure thereon are impracticable, unnecessary or contrary to the public interest.

[23 F.R. 9880, Dec. 23, 1958]

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REGISTER, and such notice will include (a) a statement of the time, place, and nature of public rule making proceedings, (b) reference to the authority under which the amendment or rule is proposed, and (c) either the terms or substance of the proposed amendment or rule or a description of the subjects and issues involved. Notice of such proposed amendment or rule shall also be mailed to each member of the Federal Savings and Loan Advisory Council and to the president of each Federal Home Loan Bank.

(Secs. 5, 402, 403, 48 Stat. 132, as amended, 1256, 1257, as amended; 12 U.S.C. 1464, 1725, 1726) [29 F.R. 7417, June 9, 1964]

§ 508.13

Participation of interested persons in a proposed amendment or rule.

After publication in the FEDERAL REGISTER of general notice of a proposed amendment or rule as prescribed in § 508.12, interested persons may participate in the making of such a proposed amendment or rule through the submission of written data, views, or arguments thereon delivered within the time prescribed in such general notice to the Secretary to the Federal Home Loan Bank Board, 320 First Street NW., Washington, D.C. 20552, and the time prescribed shall not be less than 15 days. Interested persons may also petition for the issuance, amendment, or repeal of an amendment or rule and deliver any such petition to the Secretary to the Board at the address given in this section.

(Secs. 5, 402, 403, 48 Stat. 132, as amended, 1256, 1257, as amended; 12 U.S.C. 1464, 1725. 1726) [29 F.R. 7417, June 9, 1964]

§ 508.14 Effective dates of amendments and rules.

No substantive amendment or rule shall be effective less than 30 days after publication in the FEDERAL REGISTER except that this requirement shall not apply to (a) any substantive amendment or rule granting or recognizing exemption or relieving restriction, (b) interpretative rules and statements of policy, and (c) any substantive amendment or rule which the Board makes effective at an earlier date upon good cause found and published with such amendment or rule.

(Secs. 5, 402, 403, 48 Stat. 132, as amended, 1256, 1257, as amended; 12 U.S.C. 1464, 1725, 1726) [29 F.R. 7417, June 9, 1964]

§ 508.15 Repeal of rules and regulations.

This subchapter together with Subchapter B of this chapter repeals all prior rules and regulations, resolutions, orders and instructions of the Board inconsistent herewith.

(Secs. 5, 402, 403, 48 Stat. 132, as amended, 1256, 1257, as amended; 12 U.S.C. 1464, 1725, 1726) [29 FR. 7417, June 9, 1964]

§ 508.16 Coordination of subchapters.

This subchapter shall be applied in conjunction with any related provisions of Subchapters B, C, and D of this chapter together with such other material not inconsistent therewith as may be filed now or hereafter by the Board or Federal Savings and Loan Insurance Corporation pursuant to section 5, 49 Stat. 501, 44 U.S.C. 305, and sections 3 and 4, 60 Stat. 238, 5 U.S.C. 1002, 1003. (Secs. 5, 402, 403, 48 Stat. 182, as amended, 1256, 1257, as amended; 12 U.S.C. 1464, 1725, 1726) [29 F.R. 7417, June 9, 1964]

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509.19 Copies.

509.20 Computing time.

509.21 Documents in proceedings confidential.

509.22 Formal requirements as to papers filed.

AUTHORITY: The provisions of this Part 509 issued under sec. 17, 47 Stat. 736, as amended, Becs. 5, 402, 403, 407, 48 Stat. 132, as amended, 1256, 1257, 1260, as amended; 12 U.S.C. 1437, 1464, 1725, 1726, 1730, Reorg. Plan No. 3 of 1947; 3 CFR, 1943-1948 Comp., unless otherwise noted.

SOURCE: The provisions of this Part 509 appear at 32 F.R. 6764, May 3, 1967; 82 FR. 8889, June 22, 1967, unless otherwise noted. § 509.1 Scope of regulations.

This part prescribes rules of practice and procedure applicable to adjudicative proceedings as to which hearings are provided by the following statutory provisions:

(a) Hearings under subsection (1) of section 6 of the Federal Home Loan Bank Act, as amended (12 U.S.C. 1426(1)), to determine whether cause exists for the removal of any member of a Federal Home Loan Bank from membership or for depriving any nonmember borrower of the privilege of obtaining advances from a Federal Home Loan Bank;

(b) Hearings in cease and desist proceedings under paragraph (2) of subsection (d) of section 5 of the Home Owners' Loan Act of 1933, as amended (12 U.S.C. 1464(d)(2)), and subsection (e) of section 407 of the National Housing Act, as amended (12 U.S.C. 1730 (e));

(c) Hearings under paragraph (4) of subsection (d) of section 5 of the Home Owners' Loan Act of 1933, as amended (12 U.S.C. 1464(d)(4)), and subsection (g) of section 407 of the National Housing Act, as amended (12 U.S.C. 1730(g)), to determine whether a director, officer, or other person should be removed from office and/or prohibited from further participation in the conduct of the affairs of an institution;

(d) Hearings under subsection (b) of section 407 of the National Housing Act, as amended (12 U.S.C. 1730 (b)), to determine whether cause exists for the termination of the insured status of any institution the accounts of which are insured by the Federal Savings and Loan Insurance Corporation; and

(e) Hearings under paragraph (2) (D) of subsection (a) of section 408 of the National Housing Act, as amended (12 U.S.C. 1730(a)(2) (D)), to determine whether any person directly or indirectly exercises a controlling influence over the management or policies of an insured Institution or any other company.

(12 U.S.C. 1730a) [32 F.R. 6764, May 3, 1967, as amended at 34 F.R. 319, Jan. 9, 1969; 34 F.R. 1113, Jan. 24, 1969]

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appropriate, the Federal Savings and Loan Insurance Corporation;

(b) The term "Secretary" means the Secretary to the Federal Home Loan Bank Board and any Assistant Secretary to the Board; and

(c) The term "presiding officer" includes the Board, one or more members thereof, or a hearing examiner appointed under section 3105 or detailed pursuant to section 3344 of title 5 of the United States Code, and as used in this part the term shall be construed to refer to whichever of the three shall preside at a hearing hereunder, except as otherwise specified in the text.

§ 509.3 Appearance and practice before the Board.

(a) Before the Board or the presiding officer. Any person who is a member in good standing of the bar of the highest court of any State, possession, territory, Commonwealth, or the District of Columbia, may represent others before the Board upon filing with the Secretary a written declaration that he is currently qualified as provided by this paragraph, and is authorized to represent the particular party on whose behalf he acts. Any other person desiring to represent others before the Board may be required to file with the Secretary a power of attorney showing his authority to act in such capacity, and he may be required to show to the satisfaction of the Board that he has the requisite qualifications. Attorneys or other representatives of parties to any proceeding provided for in this part shall file a written notice of appearance with the Secretary, or with the presiding officer.

(b) Summary suspension. Contemptuous conduct at any hearing before the Board or a presiding officer shall be ground for exclusion therefrom and suspension for the duration of the hearing. § 509.4 Notice of hearing.

Whenever a hearing is ordered by the Board in any proceeding provided for in this part, a notice of such hearing shall be served by the Secretary, or other person designated for such purpose by the Board, upon the party or parties afforded the hearing. Such notice shall state the time, place, and nature of the hearing, the legal authority and jurisdiction under which the hearing is to be held, and, if a presiding officer has been designated to preside at the hearing, the name and address of the presiding officer. Such

notice shall also contain a statement of the matters of fact and law constituting the grounds for the hearing. § 509.5 Answer.

(a) When required. In any notice of hearing issued by the Board, the Board may direct the party or parties afforded the hearing to file an answer to the allegations contained in the notice, and any party to any proceeding may file an answer. Except where a different period of not less than 10 days after service of a notice of hearing is specified by the Board, a party directed to file an answer, or a party who elects to file an answer, shall file the same with the Secretary within 20 days after service upon him of the notice of hearing.

(b) Requirements of answer; effect of failure to deny. An answer filed under this section shall specifically admit or deny each allegation in the notice of hearing, unless the party is without knowledge or information, in which case his answer shall so state and the statement shall have the effect of a denial. Any allegation not denied shall be deemed to be admitted. When a party intends in good faith to deny only a part or a qualification of an allegation, he shall specify so much of it as is true and shall deny only the remainder.

(c) Admitted allegations. If a party filing an answer under this section elects not to contest any of the allegations of fact set forth in the notice of hearing, his answer shall consist of a statement that he admits all of the allegations to be true. Such answer shall constitute a waiver of hearing as to the facts alleged in the notice, and together with the notice will provide a record basis on which the presiding officer shall file with the Secretary his recommended decision in accordance with section 557 of title 5 of the United States Code. Any such party may, however, upon service of the recommended decision of the presiding officer, file exceptions thereto within the time provided in § 509.12 (a).

(d) Effect of failure to answer. Failure of a party to file an answer required by this section within the time provided shall be deemed to constitute a waiver of his right to appear and contest the allegations of the notice of hearing and to authorize the presiding officer, without further notice to the party, to find the facts to be as alleged in the notice and to file with the Secretary a recom

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Any interested party may at any time submit to the Secretary, for consideration by the Board, written offers or proposals for settlement of a proceeding, without prejudice to the rights of the parties. No offer or proposal shall be admissible in evidence over the objection of any party in any hearing in connection with such proceeding. The foregoing provisions of this section shall not preclude settlement of any proceeding through the regular adjudicatory process by the filing of an answer as provided in 509.5(c), or by submission of the case to the presiding officer on a stipulation of facts and an agreed order. § 509.6 Conduct of hearings.

(a) Authority of presiding officer. All hearings governed by this part shall be conducted in accordance with the provisions of chapter 5 of title 5 of the United States Code. The presiding officer designated by the Board to preside at any such hearing shall have complete charge of the hearing, and he shall have the duty to conduct it in a fair and impartial manner and to take all necessary action to avoid delay in the disposition of proceeding. Such officer shall have all powers necessary to that end, including the following:

(1) To administer oaths and affirmations;

(2) To issue subpenas and subpenas duces tecum, as authorized by law, and to revoke, quash, or modify any such subpena;

(3) To receive relevant evidence and to rule upon the admission of evidence and offers of proof;

(4) To take or cause depositions to be taken;

(5) To regulate the course of the hearing and the conduct of the parties and their counsel;

(6) To hold conferences for the settlement or simplification of issues or for any proper purpose; and

(7) To consider and rule upon, as justice may require, all procedural and other motions appropriate in an adversary proceeding, except that a presiding officer other than the Board shall

not have power to decide any motion to dismiss the proceeding or other motion which results in final detemination of the merits of the proceeding.

Without limitation on the foregoing, the presiding officer shall, subject to the provisions of this part, have all the authority of section 556 (c) of title 5 of the United States Code.

(b) Prehearing conference. The presiding officer may, on his own initiative or at the request of any party, direct counsel for all parties to meet with him at a specified time and place prior to the hearing, or to submit suggestions to him in writing, for the purpose of considering any or all of the following:

(1) Simplification and clarification of the issues;

(2) Stipulations, admissions of fact and of the contents and authenticity of documents;

(3) Matters of which official notice will be taken; and

(4) Such other matters as may aid in the orderly disposition of the proceeding, including disclosure of the names of witnesses and of documents or other physical exhibits which will be introduced in evidence in the course of the proceeding. Such conferences shall, at the request of any party, be recorded and at the conclusion thereof the presiding officer shall enter in the record an order which recites the results of the conference. Such order shall include the officer's rulings upon matters considered at the conference, together with appropriate directions, if any, to the parties; and such order shall control the subsequent course of the proceeding, unless modified at the hearing to prevent manifest injustice.

(c) Attendance at hearings. All hearings shall be private and shall be attended only by the parties, their representatives or counsel, witnesses while testifying, and other persons having an official interest in the proceeding: Provided, however, That where the Board, in its discretion, after fully considering the views of the party afforded the hearing, determines that a public hearing is necessary to protect the public interest, the Board may order that the hearing be public.

(d) Transcript of testimony. Hearings shall be recorded and transcripts will be made available to any party upon payment of the cost thereof and, in the event the hearing is public, shall be furnished on similar payment to other in

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