(ii) Two such applications, whereby such association proposes to serve any substantial part of the same savings service area (as determined by the Supervisory Agent) have not been disapproved by the Board during the 24 months preceding such date unless at least 12 months have elapsed since the most recent disapproval. However, if two such applications by such association have been disapproved during the 24 months preceding such date, either of such disapproved applications will be considered and processed upon refiling if any other savings and loan association, savings bank, or similar institution files such an application whereby it proposes to serve any substantial part of the same savings service area (as determined by the Supervisory Agent) within 12 months since the most recent disapproval.

(iii) The association submits in support of its application evidence giving reasonable assurance, in the judgment of the Supervisory Agent, that the proposed branch office, if approved, will be opened within the following applicable time period after the date of approval by the Board:

(a) 12 months, except as otherwise provided in (b) and (c) of this subdivision;

(b) 24 months, if the proposed branch office is to be redesignated as the association's home office; or

(c) 36 months, if the proposed branch office is to be located in a shopping center having not less than 400,000 square feet of shopping space.

(2) The Board may, with respect to particular applications or classes of applications, determine to consider and process such applications without regard to the eligibility requirement contained in subdivision (1) of subparagraph (1) of this paragraph.

(c) Application form; supporting information. An application for permission to establish a branch office shall be in form prescribed by the Board. Such application and prescribed "Outline of Information To Be Submitted in Support of an Application for Permission to Establish a Branch Office" may be obtained from the Supervisory Agent. Information shall be furnished in support of the application in accordance with such Outline designed to show: (1) There will be at the time the branch is opened a necessity for the proposed branch office in the community to be served by it; (2) there is a reasonable probability of usefulness and success of the proposed branch of

fice; and (3) the proposed branch office can be established without undue injury to properly conducted existing local thrift and home-financing institutions. An application shall be deemed to be complete when the foregoing requirements of this paragraph (c) have been met.

(d) Filing of application; proposed budget. An application for permission to establish a branch office shall be filed with the Board by delivering four copies thereof, together with four copies of all supporting information, to the Supervisory Agent.

(e) Amendment of application; filing of additional information. After a complete application for permission to establish a branch office 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 (g) 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.

(f) Supervisory objection. No application for permission to establish a branch 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.

(g) Processing of application by Supervisory Agent; public notice; inspection. (1) Upon determination by the Supervisory Agent that an application for permission to establish a branch office is complete, that the association is eligible, 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 proposed branch office, a notice of the filing of the application in the following form:

NOTICE OF FILING OF BRANCH OFFICE
APPLICATION

Notice is hereby given that, pursuant to the provisions of § 582.1 of Chapter V (E).

(Street address)

(City)

Any person may file communications, including briefs, in favor or in protest of said application at the aforesaid office of the Supervisory Agent within 10 days (or within 30 days if advice is filled 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 filled. The application, together with all communications in favor or in protest thereof, are available for inspection by any person at the aforesaid office of the Supervisory Agent.

(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. Within 10 days after the date a communication (or additional information, if any) in protest of an application is timely filed in accordance with the provisions of the first sentence of this subparagraph, the Principal Supervisory Agent shall advise the applicant and the protestant, in writing, whether the protestant's communication is considered to be "substantial” in accordance with the provisions of subparagraph (4) of this paragraph. 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 (or additional information, if any) pursuant to the first sentence of this subparagraph or waive the right to file such information. Information may be sub- .

mitted 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) (i) For the purposes of subparagraph (3) of this paragraph and paragraphs (h) and (k) of this section, a communication in protest of an application shall be considered "substantial" only when such communication consists of, or is supported by, a memorandum, brief or affidavit, or any combination thereof, setting forth at least the following:

(a) A statement summarizing the reasons for the protest;

(b) A list of specific matters in the application to which the protestant objects, together with the reasons for each such objection;

(c) A statement of the facts supporting the protest, including relevant economic or financial data; and

(d) A statement of any adverse effects on the protestant which may result from approval of the application.

(ii) In the event of any controversy as to whether a particular communication in protest should be, considered "substantial", the final determination shall be made by the Principal Supervisory Agent.

(5) 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.

(h) Oral argument-(1) General provisions. In any case in which a communication in protest of an application has been filed within the time specified in subparagraph (3) of paragraph (g) of this section, oral argument on the merits of such application shall be heard upon the written request of the applicant or any person who has timely filed a substantial communication in protest of such application, if such request of the applicant is received by the Supervisory Agent within 10 days after the Principal Supervisory Agent has mailed or delivered to the applicant the last written advice specified in the second sentence of

subparagraph (3) of this paragraph or if such request of a person who has timely filed a substantial communication in protest of such application is received by the Supervisory Agent within 10 days after the Principal Supervisory Agent has mailed or delivered to such person the written advice specified in the second sentence of subparagraph (3) of this paragraph. In any case in which no communication in protest of an application has been filed within the time specified in subparagraph (3) of paragraph (g) of this section, oral argument on the merits of such application shall be heard upon the written request of the applicant, 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 such application. 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 argument in favor of an application. A transcript shall be made of any oral argument and shall be included in the application file.

(1) Maintenance of branch office after consolidation, purchase of bulk assets, or merger. No association shall maintain in the District of Columbia any office of another institution which is hereafter acquired, and no association which is incorporated or organized under the laws of the District of Columbia shall maintain any office of another institution

which is hereafter acquired through consolidation, purchase of bulk assets, or merger, without written approval by the Board for permission to maintain such office.

(j) Limited facility branch office(1) General. In connection with any application for permission to establish a branch office by a District of Columbia association which the Board has determined does not satisfy in full the requirements of paragraph (c) of this section as to necessity and reasonable probability of usefulness and success, but such tests, in the opinion of the Board, are met to a degree which would support a limited operation of a branch office, the Board may approve the application as a limited facility branch office. Such an office, if approved by the Board, will be subject to limitations imposed by the Board as to one or more of the following:

(i) Number and type (supervisory, clerical, teller) of personnel to be utilized;

(ii) Physical size and characteristics; (iii) Amount of capital investment by the applicant; and

(iv) Extent of activities.

In addition, a District of Columbia association which applies for permission to establish a branch office under this section may propose that the office be a limited facility branch office in a case where the applicant believes that the tests in paragraph (c) of this section can be met only to a degree which would support a limited operation of a branch office, and the applicant may propose one or more of the limitations to be imposed by the Board. A limited facility branch office may be advertised to the public as a branch office.

(2) Removal or modification of limitations. The Supervisory Agent is authorized, on behalf of the Board, to remove or modify, in whole or in part, any limitations imposed on a limited facility branch office, upon application by the operating association. If the Supervisory Agent determines that an application for removal or modification of limitations should not be approved, the Supervisory Agent shall forward such application to the Board for decision together with his recommendation as to disapproval. If and when all limitations have been removed, the limited facility branch office will become a branch office to be operated by an association in the same manner, and subject to the same management discretion,

as a branch office approved pursuant to this section.

(k) Approval by Principal Supervisory Agent. The Principal Supervisory Agent is authorized to approve, on behalf of the Board, an application for permission to establish a branch office, including a limited facility branch office, in any case in which no substantial communication in protest of such application has been filed pursuant to, and within the time specified in, subparagraph (3) of paragraph (g) of this section. With respect to approval of a limited facility branch office by the Principal Supervisory Agent, any such approval shall be subject only to such limitations as have been proposed, or concurred in, by the applicant association. In all other cases, the decision on an application for permission to establish a branch office shall be made by the Board.

(Sec. 8, 48 Stat. 132, as added by sec. 913, 84 Stat. 1815 (12 U.S.C. 1466a)) [35 FR 2515, Feb. 4, 1970, as amended at 36 FR 13683, July 23, 1971; 37 FR 12933, June 30, 1972; 37 FR 16535, Aug. 16, 1972; 37 FR 28276, Dec. 22, 1972; 38 FR 28816, Oct. 17, 1973; 39 FR 791, Jan. 3, 1974; 39 FR 43708, Dec. 18, 1974]

§ 582.1-1 Satellite office.

(a) Nature of a satellite office. An office of a District of Columbia association which is not its home office or a branch office approved pursuant to § 582.1 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. 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. Any business of a District of Columbia association, as authorized by the association's board of directors, may be transacted at a satellite office.

(b) General provisions. A District of Columbia 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 District of Columbia 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, other than a fully automated 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 or, in the case of a fully or partly automated satellite office, the equivalent of 4 teller stations, as determined by the Board or Supervisory Agent at time of approval.

(2) The operating District of Columbia 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 re

.

serves 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 District of Columbia association may not operate more than five satellite offices at any one time, and may not file applications for more than two such offices in any 12-month period. An application which has been disapproved shall be disregarded in determining compliance with the preceding sentence.

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

(7) A drive-in or pedestrian facility established or approved pursuant to § 582.1-1 shall not be considered as a satellite office.

(8) A District of Columbia 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 District of Columbia 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 local thrift and home-financing institutions.

(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

(City)

(Street Address)

Any

person may file communications, including briefs, in favor or in protest of said application at the aforesaid office of the Supervisory Agent 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 this publication. Four copies of any communications should be filled. 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.

Association.

(2) Promptly after publication of the notice, the applicant shall transmit two copies thereof to the Supervisory Agent