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2000 - Rules and Regulations
Subpart M—Other Filings
§ 303.240 General.
This subpart sets forth the filing procedures to be followed when
seeking the FDIC's consent to engage in certain activities or
accomplish other matters as specified in the individual sections
contained herein. For those matters covered by this subpart that also
have substantive FDIC regulations or related statements of policy,
references to the relevant regulations or statements of policy are
contained in the specific sections.
[Codified to 12 C.F.R.
§ 303.240]
§ 303.241 Reduce or retire capital stock or capital debt
instruments.
(a) Scope. This section contains the procedures to be
followed by an insured state nonmember bank to seek the prior approval
of the FDIC to reduce the amount or retire any part of its common or
preferred stock, or to retire any part of its capital notes or
debentures pursuant to section 18(i)(1) of the Act
(12 U.S.C. 1828(i)(1)).
(b) Where to file. Applicants shall submit a letter
application to the appropriate FDIC office.
(c) Content of filing. The application shall contain the
following:
(1) The type and amount of the proposed change to the capital
structure and the reason for the change;
(2) A schedule detailing the present and proposed capital
structure;
(3) The time period that the proposal will encompass;
(4) If the proposal involves a series of transactions affecting
Tier 1 capital components which will be consummated over a period of
time which shall not exceed twelve months, the application shall
certify that the insured depository institution will maintain itself as
a well-capitalized institution as defined in part 325 of this chapter,
both before and after each of the proposed transactions;
(5) If the proposal involves the repurchase of capital
instruments, the amount of the repurchase price and the basis for
establishing the fair market value of the repurchase price;
(6) A statement that the proposal will be available to all
holders of a particular class of outstanding capital instruments on an
equal basis, and if not, the details of any restrictions; and
(7) The date that the applicant's board of directors approved
the proposal.
(d) Additional information. The FDIC may request
additional information at any time during processing of the
application.
(e) Undercapitalized institutions. Procedures regarding
applications by an undercapitalized insured depository institution to
retire capital stock or capital debt instruments pursuant to section 38
of the FDI Act (12 U.S.C.
1831o) are set forth in subpart K (Prompt Corrective
Action), § 303.203.
Applications pursuant to sections 38 and 18(i) may be filed
concurrently, or as a single application.
(f) Expedited processing for eligible depository
institutions. An application filed under this section by an
eligible depository institution as defined in § 303.2(r) will be
acknowledged in writing by the FDIC and will receive expedited
processing, unless the applicant is notified in writing to the contrary
and provided with the basis for that decision. The FDIC may remove an
application from expedited processing for any of the reasons set forth
in § 303.11(c)(2). Absent
such removal, an application processed under expedited processing will
be deemed approved 20 days after the FDIC's receipt of a substantially
complete application.
(g) Standard processing. For those applications that are
not processed pursuant to expedited procedures, the FDIC will provide
the applicant with written notification of the final action as soon as
the decision is rendered.
[Codified to 12 C.F.R. § 303.241]
{{12-31-02 p.2068.13}}
§ 303.242 Exercise of trust powers.
(a) Scope. This section contains the procedures to be
followed by a state nonmember bank to seek the FDIC's prior consent to
exercise trust powers. The FDIC's prior consent to exercise trust
powers is not required in the following circumstances:
(1) Where a state nonmember bank received authority to exercise
trust powers from its chartering authority prior to December 1, 1950;
or
(2) Where an insured depository institution continues to conduct
trust activities pursuant to authority granted by its chartering
authority subsequent to a charter conversion or withdrawal from
membership in the Federal Reserve System.
(b) Where to file. Applicants shall submit to the
appropriate FDIC office a completed form, "Application for Consent
To Exercise Trust Powers". This form may be obtained from any
FDIC
regional director.
(c) Content of filing. The filing shall consist of the
completed trust application form.
(d) Additional information. The FDIC may request
additional information at any time during processing of the filing.
(e) Expedited processing for eligible depository
institutions. An application filed under this section by an
eligible depository institution as defined in § 303.2(r) will be
acknowledged in writing by the FDIC and will receive expedited
processing, unless the applicant is notified in writing to the contrary
and provided with the basis for that decision. The FDIC may remove an
application from expedited processing for any of the reasons set forth
in § 303.11(c)(2). Absent such removal, an application processed
under expedited procedures will be deemed approved 30 days after the
FDIC's receipt of a substantially complete application.
(f) Standard processing. For those applications that are
not processed pursuant to the expedited procedures, the FDIC will
provide the applicant with written notification of the final action
when the decision is rendered.
[Codified to 12 C.F.R.
§ 303.242]
§ 303.243 Brokered deposit waivers.
(a) Scope. Pursuant to section 29 of the FDI Act
(12 U.S.C. 1831f) and
part 337 of this chapter, an
adequately capitalized insured depository institution may not accept,
renew or roll over any brokered deposits unless it has obtained a
waiver from the FDIC. A well-capitalized insured depository institution
may accept brokered deposits without a waiver, and an undercapitalized
insured depository institution may not accept, renew or roll over any
brokered deposits under any circumstances. This section contains the
procedures to be followed to file with the FDIC for a brokered deposit
waiver. The FDIC will provide notice to the depository institution's
appropriate federal banking agency and any state regulatory agency, as
appropriate, that a request for a waiver has been filed and will
consult with such agency or agencies, prior to taking action on the
institution's request for a waiver. Prior notice and/or consultation
shall not be required in any particular case if the FDIC determines
that the circumstances require it to take action without giving such
notice and opportunity for consultation.
(b) Where to file. Applicants shall submit a letter
application to the appropriate FDIC office.
(c) Content of filing. The application shall contain the
following:
(1) The time period for which the waiver is requested;
(2) A statement of the policy governing the use of brokered
deposits in the institution's overall funding and liquidity management
program;
(3) The volume, rates and maturities of the brokered deposits
held currently and anticipated during the waiver period sought,
including any internal limits placed on the terms, solicitation and use
of brokered deposits;
(4) How brokered deposits are costed and compared to other
funding alternatives and how they are used in the institution's
lending and investment activities, including a detailed discussion of
asset growth plans;
{{12-31-02 p.2068.14}}
(5) Procedures and practices used to solicit brokered deposits,
including an identification of the principal sources of such deposits;
(6) Management systems overseeing the solicitation, acceptance
and use of brokered deposits;
(7) A recent consolidated financial statement with balance sheet
and income statements; and
(8) The reasons the institution believes its acceptance, renewal
or rollover of brokered deposits would pose no undue risk.
(d) Additional information. The FDIC may request
additional information at any time during processing of the
application.
(e) Expedited processing for eligible depository
institutions. An application filed under this section by an
eligible depository institution as defined in this paragraph will be
acknowledged in writing by the FDIC and will receive expedited
processing, unless the applicant is notified in writing to the contrary
and provided with the basis for that decision. For the purpose of this
section, an applicant will be deemed an eligible depository institution
if it satisfies all of the criteria contained in § 303.2(r) except
that the applicant may be adequately capitalized rather than
well-capitalized. The FDIC may remove an application from expedited
processing for any of the reasons set forth in § 303.11(c)(2). Absent
such removal, an application processed under expedited procedures will
be deemed approved 21 days after the FDIC's receipt of a substantially
complete application.
(f) Standard processing. For those filings which are not
processed pursuant to the expedited procedures, the FDIC will provide
the applicant with written notification of the final action as soon as
the decision is rendered.
(g) Conditions for approval. A waiver issued pursuant to
this section shall:
(1) Be for a fixed period, generally no longer than two years,
but may be extended upon refiling; and
(2) May be revoked by the FDIC at any time by written notice to
the institution.
[Codified to 12 C.F.R.
§ 303.243]
§ 303.244 Golden parachute and severance plan payments.
(a) Scope. Pursuant to section 18(k) of the FDI Act
(12 U.S.C. 1828(k)) and
part 359 of this chapter, an
insured depository institution or depository institution holding
company may not make golden parachute payments or excess
nondiscriminatory severance plan payments unless the depository
institution or holding company obtains permission to make such payments
in accordance with the rules contained in part 359 of this chapter.
This section contains the procedures to file for the FDIC's consent
when such consent is necessary under part 359 of this chapter.
(1) Golden parachute payments. A troubled insured
depository institution or a troubled depository institution holding
company is prohibited from making golden parachute payments (as defined
in § 359.1(f)(1) of this chapter) unless it obtains the consent of
the appropriate federal banking agency and the written concurrence of
the FDIC. Therefore, in the case of golden parachute payments, the
procedures in this section apply to all troubled insured depository
institutions and troubled depository institution holding companies.
(2) Excess nondiscriminatory severance plan payments.
In the case of excess nondiscriminatory severance plan payments as
provided by § 359.1(f)(2)(v) of this chapter, the FDIC's consent is
necessary for state nonmember banks that meet the criteria set forth in
§ 359.1(f)(1)(ii) of this chapter. In addition, the FDIC's consent
is required for all insured depository institutions or depository
institution holding companies that meet the same criteria and seek to
make payments in excess of the 12-month amount specified in
§ 359.1(f)(2)(v).
(b) Where to file. Applicants shall submit a letter
application to the appropriate FDIC regional director.
(c) Content of filing. The application shall contain the
following:
(1) The reasons why the applicant seeks to make the payment;
(2) An identification of the institution-affiliated party who
will receive the payment;
{{4-28-06 p.2068.15}}
(3) A copy of any contract or agreement regarding the subject
matter of the filing;
(4) The cost of the proposed payment and its impact on the
institution's capital and earnings;
(5) The reasons why the consent to the payment should be granted;
and
(6) Certification and documentation as to each of the points
cited in § 359.4(a)(4).
(d) Additional information. The FDIC may request
additional information at any time during processing of the filing.
(e) Processing. The FDIC will provide the applicant with
a subsequent written notification of the final action taken as soon as
the decision is rendered.
[Codified to 12 C.F.R. § 303.244]
[Section 303.244 amended at 68 Fed. Reg. 50461, August 21, 2003,
effective September 22, 2003]
§ 303.245 Waiver of liability for commonly controlled
depository institutions.
(a) Scope. Section 5(e) of the FDI Act
(12 U.S.C. 1815(e)) creates
liability for commonly controlled insured depository institutions for
losses incurred or anticipated to be incurred by the FDIC in connection
with the default of a commonly controlled insured depository
institution or any assistance provided by the FDIC to any commonly
controlled insured depository institution in danger of default. In
addition to certain statutory exceptions and exclusions contained in
sections 5(e)(6), (7) and (8), the FDI Act also permits the FDIC, in
its discretion, to exempt any insured depository institution from this
liability if it determines that such exemption is in the best interests
of the Deposit Insurance Fund. This section describes procedures to
request a conditional waiver of liability pursuant to section 5 of the
FDI Act (12 U.S.C. 1815(e)(5)(A)).
(b) Definitions. Conditional waiver of liability means
an exemption from liability pursuant to section 5(e) of the FDI Act (12
U.S.C. 1815(e)) subject to terms and conditions.
(c) Where to file. Applicants shall submit a letter
application to the appropriate FDIC office.
(d) Content of filing. The application shall contain the
following information:
(1) The basis for requesting a waiver;
(2) The existence of any significant events (e.g., change in
control, capital injection, etc.) that may have an impact upon the
applicant and/or any potentially liable institution;
(3) Current, and if applicable, pro forma financial information
regarding the applicant and potentially liable institution(s); and
(4) The benefits to the appropriate FDIC insurance fund resulting
from the waiver and any related events.
(e) Additional information. The FDIC may request
additional information at any time during the processing of the filing.
(f) Processing. The FDIC will provide the applicant with
written notification of the final action as soon as the decision is
rendered.
(g) Failure to comply with terms of conditional waiver.
In the event a conditional waiver of liability is issued, failure
to comply with the terms specified therein may result in the
termination of the conditional waiver of liability. The FDIC reserves
the right to revoke the conditional waiver of liability after giving
the applicant written notice of such revocation and a reasonable
opportunity to be heard on the matter pursuant to § 303.10.
[Codified to 12 C.F.R. § 303.245]
[Section 303.245 amended at 20526, April 21,
2006]
§ 303.246 Conversion with diminution of capital.
(a) Scope. This section contains the procedures to be
followed by an insured federal depository institution seeking the prior
written consent of the FDIC pursuant to section 18(i)(2) of the FDI Act
(12 U.S.C. 1828(i)(2)) to
convert from an insured federal depository institution to an insured
state nonmember bank (except a District bank) where the
capital
{{4-28-06 p.2068.16}}stock or surplus of the
resulting bank will be less than the capital stock or surplus,
respectively, of the converting institution at the time of the
shareholders' meeting approving such conversion.
(b) Where to file. Applicants shall submit a letter
application to the appropriate FDIC office.
(c) Content of filing. The application shall contain the
following information:
(1) A description of the proposed transaction;
(2) A schedule detailing the present and proposed capital
structure; and
(3) A copy of any documents submitted to the state chartering
authority with respect to the charter conversion.
(d) Additional information. The FDIC may request
additional information at any time during the processing.
(e) Processing. The FDIC will provide the applicant with
written notification of the final action when the decision is rendered.
[Codified to 12 C.F.R. § 303.247]
[Section 303.247 redesignated as section 303.246 at 71 Fed. Reg.
20526, April 21, 2006]
§ 303.247 Continue or resume status as an insured institution
following termination under section 8 of the FDI Act.
(a) Scope. This section relates to an application by a
depository institution whose insured status has been terminated under
section 8 of the FDI Act (12 U.S.C.
1818) for permission to continue or resume its status as an
insured depository institution. This section covers institutions whose
deposit insurance continues in effect for any purpose or for any length
of time under the terms of an FDIC order terminating deposit insurance,
but does not cover operating non-insured depository institutions which
were previously insured by the FDIC, or any non-insured, non-operating
depository institution whose charter has not been surrendered or
revoked.
(b) Where to file. Applicants shall submit a letter
application to the
appropriate
FDIC office.
(c) Content of filing. The filing shall contain the
following information:
(1) A complete statement of the action requested, all relevant
facts, and the reason for such requested action; and
(2) A certified copy of the resolution of the depository
institution's board of directors authorizing submission of the filing.
(d) Additional information. The FDIC may request
additional information at any time during processing of the filing.
(e) Processing. The FDIC will provide the applicant with
written notification of the final action as soon as the decision is
rendered.
[Codified to 12 C.F.R. § 303.248]
[Section 303.248 redesignated as section 303.247 at 71 Fed. Reg.
20526, April 21, 2006]
§ 303.248 Truth in Lending Act--Relief from reimbursement.
(a) Scope. This section applies to requests for relief
from reimbursement pursuant to the Truth in Lending Act
(15 U.S.C. 1601 et
seq.) and Regulation Z
(12 CFR part 226).
Related delegations of authority are also set forth.
(b) Procedures to be followed in filing initial requests for
relief. Requests for relief from reimbursement shall be filed with
the appropriate FDIC office or within 60 days after receipt of the
compliance report of examination containing the request to conduct a
file search and make restitution to affected customers. The filing
shall contain a complete and concise statement of the action requested,
all relevant facts, the reasons and analysis relied upon as the basis
for such requested action, and all supporting documentation.
(c) Additional information. The FDIC may request
additional information at any time during processing of any such
requests.
{{10-31-07 p.2068.17}}
(d) Processing. The FDIC will acknowledge receipt of the
request for reconsideration and provide the applicant with written
notification of its determination within 60 days of its receipt of the
request for reconsideration.
(e) Procedures to be followed in filing requests for
reconsideration. Within 15 days of receipt of written notice that
its request for relief has been denied, the requestor may petition the
appropriate FDIC office for reconsideration of such request in
accordance with the procedures set forth in § 303.11(f).
[Codified to 12 C.F.R. § 303.248]
[Section 303.249 redesignated as section 303.248 at 71 Fed. Reg.
20526, April 21, 2006]
§ 303.249 Management official interlocks.
(a) Scope. This section contains the procedures to be
followed by an insured state nonmember bank to seek the approval of
FDIC to establish an interlock pursuant to the Depository Institutions
Management Interlocks Act (12 U.S.C.
3207), section 13 of the FDI Act
(12 U.S.C. 1823(k)) and part
348 of this chapter (12 CFR part
348).
(b) Where to file. Applicants shall submit a letter
application to the appropriate FDIC office.
(c) Content of filing. The application shall contain the
following:
(1) A description of the proposed interlock;
(2) A statement of reason as to why the interlock will not result
in a monopoly or a substantial lessening of competition; and
(3) If the applicant is seeking an exemption set forth in
§ 348.5 or 348.6 of this chapter, a description of the particular
exemption which is being requested and a statement of reasons as to why
the exemption is applicable.
(d) Additional information. The FDIC may request
additional information at any time during processing of the filing.
(e) Processing. The FDIC will provide the applicant with
written notification of the final action when the decision is rendered.
[Codified to 12 C.F.R. § 303.249]
[Section 303.250 redesignated as section 303.249 at 71
Fed. Reg. 20526, April 21, 2006]
§ 303.250 Modification of conditions.
(a) Scope. This section contains the procedures to be
followed by an insured depository institution to seek the prior consent
of the FDIC to modify the requirement of a prior approval of a filing
issued by the FDIC.
(b) Where to file. Applicants should submit a letter
application to the appropriate FDIC regional director.
(c) Content of filing. The application should contain
the following information:
(1) A description of the original approved application;
(2) A description of the modification requested; and
(3) The reason for the request.
(d) Additional information. The FDIC may request
additional information at any time during processing of the filing.
(e) Processing. The FDIC will provide the applicant with
a written notification of the final action as soon as the decision is
rendered.
[Codified to 12 C.F.R. § 303.250]
[Section 303.251 redesignated as section 303.250 at 71 Fed. Reg.
20526, April 21, 2006]
§ 303.251 Extension of time.
(a) Scope. This section contains the procedures to be
followed by an insured depository institution to seek the prior consent
of the FDIC for additional time to fulfill a condition required in an
approval of a filing issued by the FDIC or to consummate a transaction
which was the subject of an approval by the FDIC.
{{10-31-07 p.2068.18}}
(b) Where to file. Applicants shall submit a letter
application to the appropriate FDIC office.
(c) Content of filing. The application shall contain the
following information:
(1) A description of the original approved application;
(2) Identification of the original time limitation;
(3) The additional time period requested; and
(4) The reason for the request.
(d) Additional information. The FDIC may request
additional information at any time during processing of the filing.
(e) Processing. The FDIC will provide the applicant with
written notification of the final action as soon as the decision is
rendered.
[Codified to 12 C.F.R. § 303.251]
[Section 303.252 redesignated as section 303.251 at 71 Fed. Reg.
20526, April 21, 2006]
§§ 303.252--303.259 [Reserved]
[The page following this is 2069.]
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