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2000 - Rules and Regulations
Subpart CEstablishment and Relocation of Domestic
Branches and Offices
§ 303.40 Scope.
(a) General. This subpart sets forth the application
requirements and procedures for insured state nonmember banks to
establish a branch, relocate a branch or main office, and retain
existing branches after the interstate relocation of the main office
subject to the approval by the FDIC pursuant to
sections 13(f),
13(k),
18(d) and
44 of the FDI Act.
(b) Merger transaction. Applications for approval of the
acquisition and establishment of branches in connection with a merger
transaction under section 18(c) of the FDI Act
(12 U.S.C. 1828(c)), are
processed in accordance with subpart D (Merger Transactions) of this
part.
(c) Insured branches of foreign banks and foreign branches of
domestic banks. Applications regarding insured branches of foreign
banks and foreign branches of domestic banks are processed in
accordance with subpart J (International Banking) of this part.
(d) Interstate acquisition of individual branch.
Applications requesting approval of the interstate acquisition of
an individual branch or branches located in a state other than the
applicant's home state without the acquisition of the whole bank are
treated as interstate bank merger transactions under section 44 of the
FDI Act (12 U.S.C. 1831a(u)),
and are processed in accordance with subpart D (Merger Transactions) of
this part.
[Codified to 12 C.F.R. § 303.40]
§ 303.41 Definitions.
For purposes of this subpart:
(a) Branch, except as provided in this paragraph,
includes any branch bank, branch office, additional office, or any
branch place of business located in any State of the United States or
in any territory of the United States, Puerto Rico, Guam, American
Samoa, the Trust Territory of the Pacific Islands, the Virgin Islands,
and the Northern Mariana Islands at which deposits are received or
checks paid or money lent. A branch does not include an automated
teller machine, an automated loan machine, or a remote service unit, or
a facility described in section 303.46. The term branch also includes
the following:
(1) A messenger service that is operated by a bank or
its affiliate that picks up and delivers items relating to transactions
in which deposits are received or checks paid or money lent. A
messenger service established and operated by a non-affiliated third
party generally does not constitute a branch for purposes of this
subpart. Banks contracting with third parties to provide messenger
services should consult with the FDIC to determine if the messenger
service constitutes a branch.
{{10-31-08 p.2056.01}}
(2) A mobile branch, other than a messenger service,
that does not have a single, permanent site and uses a vehicle that
travels to various locations to enable the public to conduct banking
business. A mobile branch may serve defined locations on a regular
schedule or may serve a defined area at varying times and locations.
(3) A temporary branch that operates for a limited
period of time not to exceed one year as a public service, such as
during an emergency or disaster situation.
(4) A seasonal branch that operates at various
periodically recurring intervals, such as during state and local fairs,
college registration periods, and other similar occasions.
(b) Branch relocation means a move within the same
immediate neighborhood of the existing branch that does not
substantially affect the nature of the business of the branch or the
customers of the branch. Moving a branch to a location outside its
immediate neighborhood is considered the closing of an existing branch
and the establishment of a new branch. Closing of a branch is covered
in the FDIC
Statement
of Policy Concerning Branch Closing Notices and Policies. 1
FDIC Law, Regulations, Related Acts 5391; see
§ 309.4 (a) and (b) of
this chapter for availability.
(c) De novo branch means a branch of a bank which is
established by the bank as a branch and does not become a branch of
such bank as a result of:
(1) The acquisition by the bank of an insured depository
institution or a branch of an insured depository institution; or
(2) The conversion, merger, or consolidation of any such
institution or branch.
(d) Home state means the state by which the bank is
chartered.
(e) Host state means the state, other than the home
state of the bank, in which the bank maintains, or seeks to establish
and maintain, a branch.
[Codified to 12 C.F.R. § 303.41]
[Section 303.41 amended at 73 Fed. Reg. 35338, June 23, 2008; 73
Fed. Reg. 55432, September 25, 2008]
§ 303.42 Filing procedures.
(a) General. An applicant shall submit an application to
the appropriate FDIC office on the date the notice required by
§ 303.44 is published, or within 5 days after the date of the last
required publication.
(b) Content of filing. A complete letter application
shall include the following information:
(1) A statement of intent to establish a branch, or to relocate
the main office or a branch;
(2) The exact location of the proposed site including the street
address. With regard to messenger services, specify the geographic area
in which the services will be available. With regard to a mobile branch
specify the community or communities in which the vehicle will operate
and the manner in which it will be used;
(3) Details concerning any involvement in the proposal by an
insider of the bank as defined in § 303.2(u), including any financial
arrangements relating to fees, the acquisition of property, leasing of
property and construction contracts;
(4) A statement on the impact of the proposal on the human
environment, including, information on compliance with local zoning
laws and regulations and the effect on traffic patterns for purposes of
complying with the applicable provisions of the NEPA and the FDIC
Statement
of Policy on NEPA (1 FDIC Law, Regulations, Related Acts 5185;
see § 309.4 (a) and (b)
of this chapter for availability);
(5) A statement as to whether or not the site is eligible for
inclusion in the National Register of Historic Places for purposes of
complying with applicable provisions of the NHPA and the FDIC
Statement
of Policy on NHPA (1 FDIC Law, Regulations, Related Acts 5175;
see § 309.4 (a) and (b) of this chapter for availability)
including documentation of consultation with the State Historic
Preservation Officer, as appropriate;
(6) Comments on any changes in services to be offered, the
community to be served, or any other effect the proposal may have on
the applicant's compliance with the CRA;
{{6-30-08 p.2057}}
(7) A copy of each newspaper publication required by § 303.44
of this subpart, the name and address of the newspaper, and date of the
publication;
(8) When an application is submitted to relocate the main office
of the applicant from one state to another, a statement of the
applicant's intent regarding retention of branches in the state where
the main office exists prior to relocation.
(c) Undercapitalized institutions. Applications to
establish a branch by applicants subject to section 38 of the FDI Act
(12 U.S.C. 1831o) also should
provide the information required by
§ 303.204. Applications
pursuant to sections 38 and 18(d) of the FDI Act (12 U.S.C.
1831o and 1828(d))
may be filed concurrently or as a single application.
(d) Additional information. The FDIC may request
additional information to complete processing.
[Codified to 12 C.F.R. § 303.42]
§ 303.43 Processing.
(a) Expedited processing for eligible depository
institutions. An application filed under this subpart 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 on the latest of the following:
(1) The 21st day after receipt by the FDIC of a substantially
complete filing;
(2) The 5th day after expiration of the comment period described
in § 303.44; or
(3) In the case of an application to establish and operate a de
novo branch in a state that is not the applicants home state and in
which the applicant does not maintain a branch, the 5th day after the
FDIC receives confirmation from the host state that the applicant has
both complied with the filing requirements of the host state and
submitted a copy of the application with the FDIC to the host state
bank supervisor.
(b) Standard processing. For those applications which
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. § 303.43]
§ 303.44 Public notice requirements.
(a) Newspaper publications. For applications to
establish or relocate a branch, a notice as described in
§ 303.7(c) shall be
published once in a newspaper of general circulation. For applications
to relocate a main office, notice shall be published at least once each
week on the same day for two consecutive weeks. The required
publication shall be made in the following communities:
(1) To establish a branch. In the community in which
the main office is located and in the communities to be served by the
branch (including messenger services and mobile branches).
(2) To relocate a main office. In the community in
which the main office is currently located and in the community to
which it is proposed the main office will relocate.
(3) To relocate a branch. In the community in which
the branch is located.
(b) Public comments. Comments by interested parties must
be received by the appropriate regional director within 15 days after
the date of the last newspaper publication required by paragraph (a) of
this section, unless the comment period has been extended or reopened
in accordance with
§ 303.9(b)(2).
(c) Lobby notices. In the case of applications to
relocate a main office or a branch, a copy of the required newspaper
publication shall be posted in the public lobby of the office to be
relocated for at least 15 days beginning on the date of the last
published notice required by paragraph (a) of this section.
[Codified to 12 C.F.R. § 303.44]
§ 303.45 Special provisions.
(a) Emergency or disaster events. (1) In the case of an
emergency or disaster at a main office or a branch which requires that
an office be immediately relocated to a temporary
{{6-30-08 p.2058}}location, applicants shall
notify the appropriate FDIC office within 3 days of such temporary
relocation.
(2) Within 10 days of the temporary relocation resulting from an
emergency or disaster, the bank shall submit a written application to
the appropriate FDIC office, that identifies the nature of the
emergency or disaster, specifies the location of the temporary branch,
and provides an estimate of the duration the bank plans to operate the
temporary branch.
(3) As part of the review process, the FDIC will determine on a
case by case basis whether additional information is necessary and may
waive public notice requirements.
(b) Redesignation of main office and existing branch. In
cases where an applicant desires to redesignate its main office as a
branch and redesignate an existing branch as the main office, a single
application shall be submitted. The FDIC may waive the public notice
requirements in instances where an application presents no significant
or novel policy, supervisory, CRA, compliance or legal concerns. A
waiver will be granted only to a redesignation within the applicant's
home state.
(c) Expiration of approval. Approval of an application
expires if within 18 months after the approval date a branch has not
commenced business or a relocation has not been completed.
[Codified to 12 C.F.R. § 303.45]
§ 303.46 Financial education programs that include the
provision of bank products and services.
No branch application or prior approval is required in order for a
state nonmember bank to participate in one or more financial education
programs that involve receiving deposits, paying withdrawals, or
lending money if:
(a) Such service or services are provided on school premises, or a
facility used by the school;
(b) Such service or services are provided at the discretion of the
school;
(c) The principal purpose of each program is financial education.
For example, the principal purpose of a program would be considered to
be financial education if the program is designed to teach students the
principles of personal financial management, banking operations, or the
benefits of saving for the future, and is not designed for the purpose
of profit-making; and
(d) Each program is conducted in a manner that is consistent with
safe and sound banking practices and complies with applicable law.
[Codified to 12 C.F.R. § 303.46]
[Section 303.46 added at 73 Fed. Reg. June 23,
2008]
§§ 303.47 303.59 [Reserved]
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