(2) Less than 12 months have expired from the date of publication of the notice of application for the association's most recently approved mobile facility, if not yet opened;

(3) The association does not submit in support of its application evidence giving reasonable assurance that the proposed mobile facility, if approved, will be opened within 15 months after the date on which the application is filed;

(4) The association has on file any other application for permission to establish a mobile facility with respect to which action by the Board is pending, except that the association may have on file more than one mobile facility application to the extent that the appropriate State authority of the State in which the applicant's home office is located permits to be on file at the same time (i) more than one mobile facility application of the same savings and loan association, savings bank or similar institution or commercial bank of such State, (ii) more than one application of the same savings and loan or bank holding company to acquire de novo charters of savings and loan associations or similar institutions or commercial banks, respectively, which will have their home offices in such State, or (iii) more than one application of savings and loan subsidiaries or bank subsidiaries controlled by the same savings and loan or bank holding company, respectively, to establish de novo branch offices or limited facilities branch offices in such State.

(c) Action by the Board. Each application by a Federal association which is an eligible association under the provisions of paragraph (b) of this section will be considered or processed pursuant to the provisions of this section. The Board's approval of any such application will be subject to the following provisions and any other conditions, requirements, and limitations the Board may specify in a particular case:

(1) Such facility shall be operated only at locations approved by the Board, each of which shall at all times be appropriately identified at the site;

(2) The mobile facility shall be established and operated at two or more locations, each of which, at the time of filing of the application for permission to establish and operate the mobile facility, shall be more than 10 miles from the locations of any home or branch office or agency of any other institution the accounts of which are insured by the

Federal Savings and Loan Insurance Corporation;

(3) Any such facility shall be open for business at the same location on the same day or days (not to exceed 3 days) of each week, during such hours, aggregating a total of not less than 4 hours a day, as the association's board of directors may from time to time determine;

(4) Any business of the association, as authorized by its board of directors, may be transacted at such facility, and a detailed record of the transactions of each such facility shall be maintained as provided by § 545.20;

(5) The mobile equipment used in the establishment and operation of such facility shall not remain at any location while such facility is not open for business, except that such equipment may be at any approved location on the night before and the night following a day on which such facility is open for business; and

(6) Without prior approval by the Board, operation of such facility shall not be continued at any location after the expiration of such period of time as the Board may prescribe with respect to operation of the facility at such location.

(d) Application form; supporting information. An application for permission to establish and operate a mobile facility shall be in form prescribed by the Board and shall be supported in accordance with the prescribed "Outline of Information To Be Submitted in Support of an Application for Permission to Establish and Operate a Mobile Facility." Such application shall show that there is a need for such facility at each proposed location and that it is not feasible to establish a full-time office at any such location. An application shall be deemed to be complete when the foregoing requirements of this paragraph (d) have been met.

(e) Filing of application. An application for permission to establish and operate a mobile facility shall be filed with the Board by delivering four copies thereof, together with four copies of all supporting information, to the Supervisory Agent.

(f) Amendment of application; filing of additional information. After an application for permission to establish and operate a mobile facility has been filed with the Board, and prior to the date of advice by the Supervisory Agent to

the applicant to publish notice of the filing of the application pursuant to paragraph (h) of this section, the applicant may file additional information in support of the application and may amend the application; after the date of such advice, the applicant may not amend the application or file any additional supporting information unless requested to do so by the Supervisory Agent or otherwise by or on behalf of the Board.

(g) Supervisory objection. No application for permission to establish and operate a mobile facility shall be approved if, in the opinion of the Board, the policies, condition, or operation of the applicant association afford a basis for supervisory objection to the application.

(h) Processing of application by Supervisory Agent; public notice; inspection. (1) Upon determination by the Supervisory Agent that an application for permission to establish and operate a mobile facility is complete, that the association is eligible, and if it has been preliminarily determined that there is no basis for supervisory objection to the application, the Supervisory Agent shall advise the applicant, in writing, to publish within 15 days from the date of such advice, in a newspaper printed in the English language and having general circulation in the community to be served by the proposed mobile facility, a notice of the filing of the application in the following form:

NOTICE OF FILING OF APPLICATION FOR PERMISSION TO ESTABLISH AND OPERATE A MOBILE FACILITY

Notice is hereby given that, pursuant to the provisions of § 545.14-4 of the rules and regulations for the Federal Savings and Loan System, the

Savings and Loan Association

(State)

Federal

(City)

has filled application with the

Federal Home Loan Bank Board for permission to establish and operate a mobile facility at the following locations:

39-057-75-24

is filed within the first 10 days stating that more time is needed to furnish additional information) after the date of this publication. Four copies of any communication should be filed. The application and all communications in favor or in protest thereof are available for inspection by any person at the aforesaid office of the Supervisory Agent. Federal Savings

and Loan Association-----

(2) Promptly after publication of the notice, the applicant shall transmit two copies thereof to the Supervisory Agent accompanied by two copies of a publisher's affidavit of publication.

(3) Within 10 days (or within 30 days if advice is filed within the first 10 days stating that more time is needed to furnish additional information) after the date of publication of said notice, any person may file, at the office of the Supervisory Agent designated in the notice, communications, including briefs, in favor or in protest of the application. In the event any communication is filed in protest of the application, the applicant may file information relevant to such protest within 15 days after the last date for filing communications pursuant to the preceding sentence or waive the right to file such information. Information may be submitted in connection with an application only as provided in this section, unless additional information is requested by the Supervisory Agent or otherwise by or on behalf of the Board. Four copies shall be furnished of any communication or information filled pursuant to this subparagraph.

(4) The application, together with all communications in favor or in protest thereof, shall be available at the office of the Supervisory Agent during regular working hours for inspection by any person after the issuance to the applicant of advice to publish a notice. Prior thereto, the application and the fact that it has been filed shall be held as confidential.

(i) Oral argument—(1) General provisions. Oral argument on the merits of any application filed pursuant to this section shall be heard upon the written request of an applicant or of any person who has filed a communication in protest of an application within the time specified in subparagraph (3) of paragraph (h) of this section, if such request is received by the Supervisory Agent within 10 days after the expiration of the time specified in said subparagraph

for filing communications in protest of an application. Such oral argument shall also be heard if the Supervisory Agent, after review of the application and other pertinent information, considers it desirable. When oral argument is to be held, the Supervisory Agent shall mail a notice, fixing the time and place thereof, to the applicant and to all persons who have filed a communication in favor or in protest of the application. Such oral argument shall be scheduled not less than 10 days after the mailing of such notice.

(2) Procedure. The Supervisory Agent, or any other person designated by the Board, shall have authority to hear oral argument and determine all matters relating to the conduct of such oral argument The oral argument with respect to any such application may be made in person or by authorized representatives, but the oral argument should be based on written information which has been filed in connection with the application. A reasonable time shall be allowed for oral argument, but, unless waived, not less than 1 hour shall be allowed for all oral argument against an application and not less than 1 hour shall be allowed for all oral argument in favor of an application. A transcript shall be made of any oral argument and shall be included in the application file.

(j) Maintenance of mobile facility after conversion, consolidation, purchase of bulk assets, or merger. A Federal association into which an existing institution is converted shall not thereafter maintain any mobile facility of the predecessor institution as a mobile facility of such Federal association, and a Federal association shall not maintain any mobile facility of another institution which is acquired through consolidation, purchase of bulk assets, or merger, without written approval by the Board to maintain such mobile facility.

[35 F.R. 2512, Feb. 4, 1970, as amended at 36 F.R. 13680, July 23, 1971; 36 F.R. 15427, Aug. 14, 1971; 36 F.R. 25403, Dec. 31, 1971; 37 FR 12932, June 30, 1972; 38 FR 18461, July 11, 1973; 39 FR 34647, Sept. 27, 1974]

§ 545.14-5 Satellite office.

(a) Nature of a satellite office. An office of a Federal association which is not its home office or a branch office approved pursuant to § 545.14 shall be deemed to be a satellite office if it meets the requirements of a satellite office as described in this section and if it is a

satellite of the association's home office or a branch office in that it is located in the primary service area, as determined by the Board or Supervisory Agent, of such home office or branch office. Any business of a Federal association, as authorized by the association's board of directors, may be transacted at a satellite office.

(b) General provisions. A Federal association shall not establish a satellite office without prior approval by the Board or its Supervisory Agent, as provided in this section. All requests by a Federal association for advice or instructions with respect to any matter arising under this section shall be addressed to the Board's Supervisory Agent. As used in this section, the term "Supervisory Agent" means the President of the Federal Home Loan Bank of the district in which the applicant association is located or any other officer or employee of such bank designated by the Board as agent as provided in § 501.10 or § 501.11 of this chapter. All recommendations by Supervisory Agents and by officers and employees of the Board in connection with applications for permission to establish a satellite office shall be deemed to be privileged and confidential and subject to the provisions of § 505.6 of this chapter.

(c) Specific provisions. Each application for permission to establish a satellite office will be considered or processed pursuant to the provisions of this section. Approval of such an application pursuant to this section will be subject to the following provisions and any other conditions, requirements, and limitations the Board may specify in a particular case:

(1) A satellite office may be, but is not required to be, located within premises principally occupied by a retail sales establishment or any other business organization. A satellite office shall be operated in conformity with the following physical requirements:

(i) The satellite office shall not occupy more than 500 square feet of floor space; and

(ii) Provision shall not be made for more than 4 teller stations.

(iii) A satellite office shall not occupy more than one-third of the total floor space of the premises in which it is located; and

(iv) Any outside sign or other display or window display on behalf of the

satellite office shall be subordinate to other signs and displays.

(v) A fully automated satellite office is one which is to be operated wholly by machines and without tellers or other personnel to handle transactions with the public. Such a satellite office is not required to be located within premises principally occupied by a retail sales establishment but, in addition, may be located in a shopping center, office building, or transportation terminal. A fully automated satellite office not located within a retail sales establishment is not subject to the requirements of subdivisions (i) through (iv) of this subparagraph except the requirement relating to the equivalent of four teller stations.

(2) The operating Federal association may terminate the operation of a satellite office in its discretion and, if so terminated, such satellite office may not be reopened except upon a new application pursuant to this section.

(3) The operation of a satellite office may not be changed to a new location (other than a change of location within the same premises) except upon a new application pursuant to this section.

(4) The operation of a satellite office shall not be continued for a period of longer than 5 years (or such shorter period as may be specified by the Board in its approval) from its initial opening except upon approval of a new application pursuant to this section. Paragraph (f) of this section, however, shall not be applicable to a renewal. The Board reserves the right to disapprove any such renewal application if in its opinion the continued operation of the satellite office is not in the public interest. A renewal application may be approved by the Board without a time limit on the future operation of the satellite office or with such time limit as the Board may determine.

(5) A Federal association may not operate more than 5 satellite offices at any one time, and may not file applications for more than 2 such offices in any 12month period, except that a Federal association may file in the same 12-month period more than two satellite office applications to the extent that the appropriate State authority of the State in which the applicant's home office is located permits to be on file at the same time (i) more than 2 satellite office applications of the same savings and loan association, savings bank or similar institution or commercial bank of such

State, (ii) more than 2 applications of the same savings and loan or bank holding company to acquire de novo charters of savings and loan associations or similar institutions or commercial banks, respectively, which will have their home offices in such State, or (iii) more than 2 applications of savings and loan subsidiaries or bank subsidiaries controlled by the same savings and loan or bank holding company, respectively, to establish de novo branch offices, limited facilities branch offices, or satellite offices in such State.

(6) No satellite office may be located either (1) more than 5 miles from, or (ii) outside the primary service area of, the Federal association's home or branch office of which it is a satellite. No satellite office may be located outside of the State in which the Federal association's home office is located, unless such office is to be a satellite of a branch office located outside of such State.

(7) A drive-in or pedestrian facility established or approved pursuant to § 545.14-1 shall not be considered as a satellite office, except as otherwise determined by the Board with respect to a particular geographical area.

(8) A Federal association may not enter into an agreement of any kind for the exclusive right to operate satellite offices in a specified area at all or a majority of all locations of a business organization of any kind, or under which other financial institutions would be excluded from operating satellite offices or other facilities at locations of such a business organization where such Federal association does not have a satellite office.

(9) The board of directors shall have full authority to fix the hours of operation of a satellite office without regard to the provisions of any law governing the hours of operation of savings and loan associations.

(d) Application form; supporting information. An application for permission to establish a satellite office shall be in form prescribed by the Board and may be obtained from the Supervisory Agent. Information shall be furnished in support of the application designed to show: (1) that the proposed satellite office will be located in the primary service area of an existing branch or the home office of the applicant association, and (2) that the operation of the proposed satellite office will not cause undue injury to properly conducted existing

(e) Supervisory objection. No application for permission to establish a satellite office shall be approved if, in the opinion of the Board, the policies, condition, or operation of the applicant association afford a basis for supervisory objection to the application.

(f) Processing of application by Supervisory Agent; public notice; inspection. (1) Upon determination by the Supervisory Agent that an application for permission to establish a satellite office is complete, and if it has been preliminarily determined that there is no basis for supervisory objection to approval of the application, the Supervisory Agent shall advise the applicant, in writing, to publish within 15 days from the date of such advice, in a newspaper printed in the English language and having general circulation in the community to be served by the satellite office at its proposed location, a notice of the filing of the application in the following form:

NOTICE OF FILING APPLICATION FOR PERMISSION TO ESTABLISH A SATELLITE OFFICE Notice is hereby given that, pursuant to the provisions of § 545.14-5 of the Rules and Regulations for the Federal Savings and Loan System, the

Federal Savings and Loan Association,

(2) Promptly after publication of the notice, the applicant shall transmit two copies thereof to the Supervisory Agent accompanied by two copies of a publisher's affidavit of publication.

(3) Within 10 days (or within 30 days if advice is filed within the first 10 days stating that more time is needed to furnish additional information) after the date of publication of said notice, any person may file, at the Office of the Supervisory Agent designated in the notice, communications, including briefs, in protest of the application. In the event any communication is filed in protest of the application, the applicant may file information relevant to such protest within 15 days after the last date for filing communications pursuant to the preceding sentence or may waive the right to file such information. Information may be submitted in connection with an application only as provided in this section, unless additional information is requested by the Supervisory Agent or otherwise by or on behalf of the Board. Four copies shall be furnished of any communication or information filed pursuant to this subparagraph.

(4) The application, together with all communications in favor or in protest thereof, shall be available at the office of the Supervisory Agent during regular working hours for inspection by any person after the issuance to the applicant of advice to publish a notice. Prior thereto, the application and the fact that it has been filed shall be held as confidential.

(g) Approval by Supervisory Agent. The Supervisory Agent is authorized to approve, on behalf of the Board, an application for permission to establish a satellite office if the following conditions have been met:

(1) No protests have been made to the approval of the application:

(2) The Supervisory Agent is of the opinion that the satellite office will be located in the primary service area of existing branch or the home office of the applicant association;

(3) The Supervisory Agent is of the opinion that the operation of the satellite office at its proposed location will not cause undue injury to properly conducted existing local thrift and homefinancing institutions;

(4) In the opinion of the Supervisory Agent, the business of a retail sales establishment or other business organization referred to in paragraph (c)(1) of