Applications, Requests, Submittals, Delegations of Authority, and Notices Required To Be Filed by Statute or Regulation; Fair Housing

FEDERAL DEPOSIT INSURANCE CORPORATION

12 CFR Parts 303 and 338

Applications, Requests, Submittals, Delegations of Authority, and

Notices Required To Be Filed by Statute or Regulation; Fair Housing

AGENCY: Federal Deposit Insurance Corporation (FDIC).

ACTION: Final rule.

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SUMMARY: The FDIC has adopted final amendments concerning delegations

of authority and other technical amendments to its regulations in order

to reflect the name, duties and powers of the FDIC's new Division of

Compliance and Consumer Affairs, which was established under a recent

internal reorganization. The Division of Compliance and Consumer

Affairs was created by abolishing the FDIC's Office of Consumer Affairs

and transferring its functions, as well as those of the FDIC's Division

of Supervision relating to compliance with consumer protection, fair

lending, community reinvestment, civil rights, and other laws not

directly affecting the safety and soundness of depository institutions,

to the new division. The intended effect of these amendments is to

provide officials in the new division with appropriate delegated

authority and to make other technical and conforming amendments.

EFFECTIVE DATE: This regulation becomes effective on October 19, 1994.

FOR FURTHER INFORMATION CONTACT: Claude A. Rollin, Senior Counsel,

Legal Division (202-898-3985), Grovetta N. Gardineer, Senior Attorney,

Legal Division (202-898-3905), or Lori J. Sommerfeld, Law Clerk, Legal

Division (202-898-8515).

SUPPLEMENTARY INFORMATION:

Background

On August 29, 1994, the Acting Chairman of the Board of the FDIC

approved a reorganization of the Corporation resulting in the

establishment of a new Division of Compliance and Consumer Affairs.

This was accomplished by abolishing the Office of Consumer Affairs and

transferring its functions and duties to the new division. The

functions and duties of the Division of Supervision relating to

compliance with consumer protection, fair lending, community

reinvestment, civil rights, and other laws not directly affecting the

safety and soundness of depository institutions were also transferred

to the new division. The Board adopted a resolution on August 30, 1994

approving the restructuring in order to reaffirm and strengthen its

commitment to enforcing consumer protection, fair lending, community

reinvestment, and civil rights laws and to better utilize FDIC

resources.

Discussion

The FDIC has identified portions of its regulations that will be

directly affected by the aforementioned corporate reorganization and

thus require modification. These amendments include delegations of

authority and other technical amendments to part 303 as well as a

technical amendment to part 338.

A. Amendments to Part 303

Part 303 of the FDIC's regulations generally sets forth the

procedures to be followed by both the FDIC and applicants with respect

to applications, requests, or notices required to be filed by statute

or regulation. Part 303 also currently sets forth delegations of

authority from the FDIC's Board of Directors to the Director of the

Division of Supervision, associate directors, regional directors and

deputy regional directors of that division to act on certain

applications and other matters.

These amendments primarily provide delegations of authority, where

appropriate, to the Director and the regional managers of the Division

of Compliance and Consumer Affairs to act on certain matters within the

purview of the new division. The amendments also replace certain

obsolete terminology and legal citations with current nomenclature and

accurate citations where applicable. Specific changes are described

below.

1. Scope and Definitions (Sec. 303.0)

The description of the scope of part 303 has been revised to

reflect the delegations of authority added to part 303 for the new

Division of Compliance and Consumer Affairs as well as to reflect that

part 303 prescribes where applications, requests and notices required

to be filed by statute or regulation should be filed. Definitions of

``Director (DCA)'' and ``regional manager'' have been added to reflect

the management of the new Division of Compliance and Consumer Affairs.

The new term ``DCA'' has been added and defined to mean the Division of

Compliance and Consumer Affairs or any successor thereto. The term

``Director'' has been revised to ``Director (DOS)''. The term

``Associate Director'' has been redefined to include any associate

director of the Division of Supervision or the Division of Compliance

and Consumer Affairs. The revisions clarify that the terms ``associate

director,'' ``regional director,'' ``deputy regional director,''

``Associate General Counsel for Compliance and Enforcement,'' and

``regional counsel'' include officials of equivalent authority. A

definition of ``institution-affiliated party'' has replaced the term

``individual'' throughout, incorporating by reference the meaning

provided in 12 U.S.C. 1813(u). The term ``order of correction''

relating to actions terminating deposit insurance has been replaced

with the term ``notification to primary regulator,'' which is the

nomenclature currently found in 12 U.S.C. 1818(a). The definition of

``notice of assessment of civil penalties'' has been revised to conform

with current law. The term ``final order to pay'' relating to the

assessment of civil money penalties has been deleted as unnecessary,

and the term ``amended order to pay'' added to provide for orders which

change the amount originally assessed in civil money penalty actions.

The definition of ``total assets'' has been revised and a definition of

``Tier 1 capital'' added, incorporating by reference the definitions

found at 12 CFR 325.2(n) and (m), respectively. The term ``protest''

has been revised to reflect the appropriate regional manager's duties

with respect to Community Reinvestment Act protests. Section

303.0(c)(1) has been added to explain that any authority delegated to

the Director of the Division of Supervision or the Director of the

Division of Compliance and Consumer Affairs may be exercised by the

Executive Director, Divisions of Compliance, Resolutions and

Supervision. Similarly, Sec. 303.0(c)(2) explains that any authority

delegated to the regional manager may, where confirmed in writing, be

exercised by his or her principal assistant. Finally, Sec. 303.0(d) is

added to clarify that, if appropriate, any use of the singular includes

the plural and the plural includes the singular and that any use of the

masculine, feminine or neuter gender encompasses all three.

2. Application Procedures (Sec. 303.6)

a. Investigations and examinations (Sec. 303.6(b)). This section

has been amended to provide delegations of authority to the Director

and the regional manager of the Division of Compliance and Consumer

Affairs to authorize investigations and examinations pursuant to this

section as deemed appropriate. Upon receipt of any report of

investigation or examination, authority is delegated to the Director or

regional manager of the new division to take any action determined

necessary or appropriate under the circumstances.

b. Opportunity to petition for reconsideration of a denied

application, petition, or other request (Sec. 303.6(e)). This section

has been amended to indicate that a petition or request relating to

compliance with consumer protection, fair lending, community

reinvestment or civil rights laws should be filed with the appropriate

regional manager. This section has also been amended to include the

Director of the Division of Compliance and Consumer Affairs and, where

confirmed in writing, the associate director or the appropriate

regional manager, in the exercise of authority under this section.

c. Delegation of authority to act on certain enforcement matters

(Sec. 303.9). References throughout the section have been revised to

include the authority of the Director of the Division of Compliance and

Consumer Affairs or designee to act on certain enforcement matters

involving consumer compliance issues. With respect to enforcement

matters involving both safety and soundness and consumer compliance

matters, authority to act is delegated to the Director of the Division

of Supervision and the Director of the Division of Compliance and

Consumer Affairs, or their designees, jointly.

d. Actions pursuant to 12 U.S.C. 1818(a) (Sec. 303.9(a)). This

section continues to allow for the delegation of authority to various

Division of Supervision personnel to initiate termination of insurance

actions pursuant to 12 U.S.C. 1818(a). However, it replaces the

obsolete term, ``order of correction'', with the current term,

``notification to primary regulator'', and provides that the delegates

may act when the insured depository institution's Tier 1 capital is

less than 2% of its total assets, which is essentially the current

delegation updated to reflect changes in the capital regulations.

Paragraphs (a)(2) and (a)(3) modify the certification requirements to

conform with the terminology currently found in 12 U.S.C. 1818(a).

e. Actions pursuant to 12 U.S.C. 1818(b) and 12 U.S.C. 1818(c)

(Secs. 303.9 (b) and (c)). These sections have been changed to provide

delegations of authority to both the Director of the Division of

Supervision and the Director of the Division of Compliance and Consumer

Affairs to initiate actions pursuant to sections 8 (b) and (c) of the

Act as appropriate. The amendment also provides for the joint issuance

of notices and orders by the Division of Supervision and the Division

of Compliance and Consumer Affairs when both safety and soundness and

consumer compliance matters will be addressed in the action.

f. Actions pursuant to 12 U.S.C. 1818(e) (Sec. 303.9(d)). In this

section, the term ``individual'' is replaced with the current

terminology, ``institution-affiliated party.'' The section has also

been revised to provide delegations of authority to both the Director

of the Division of Supervision and the Director of the Division of

Compliance and Consumer Affairs and, where confirmed in writing, to an

associate director to issue notices of intent to remove from office

pursuant to 12 U.S.C. 1818(e). The amendment also provides for the

joint issuance of notices and orders by the Division of Supervision and

the Division of Compliance and Consumer Affairs when both safety and

soundness and consumer compliance matters will be addressed in the

action.

g. Actions pursuant to 12 U.S.C. 1818(g) (Sec. 303.9(e)). The

delegations have been revised to provide delegated authority to the

Director of the Division of Supervision and the Director of the

Division of Compliance and Consumer Affairs to issue orders of

suspension or prohibition pursuant to section 8(g) of the Federal

Deposit Insurance Act (FDI Act). The amendment also provides for the

joint issuance of such orders by the Division of Supervision and the

Division of Compliance and Consumer Affairs when both safety and

soundness and consumer compliance matters will be addressed in the

action. The language has also been revised to conform with the statute

as it currently reads. Hence, the reference to ``indicted director,

officer or person participating in the conduct of the affairs'' has

been replaced with ``institution-affiliated party who is charged in any

information, indictment, or complaint as set forth in section 8(g) of

the Act.''

h. Civil money penalty actions (Sec. 303.9(g)). Current Sec. 303.9

delegates to the Director of the Division of Supervision and, where

confirmed in writing, an associate director the authority to issue

notices of assessment of civil money penalties. The amendment provides

an additional delegation of authority to the Director of the Division

of Compliance and Consumer Affairs and, where confirmed in writing, to

an associate director of that division. The amendment also provides for

the issuance of joint notices of assessment of civil money penalties by

the Division of Supervision and the Division of Compliance and Consumer

Affairs when both safety and soundness and consumer compliance matters

will be addressed in the action.

i. Investigations and examinations pursuant to 12 U.S.C. 1820(c)

(Sec. 303.9(i)). Current Sec. 303.9 provides a delegation to the

Director of the Division of Supervision or the Director of the Division

of Liquidation and, where confirmed in writing, to an associate

director or the appropriate regional director or deputy regional

director and the General Counsel or his designee to issue an order of

investigation pursuant to section 10(c) of the Act. This section has

been amended to include a delegation of authority to the Director of

the Division of Compliance and Consumer Affairs and, where confirmed in

writing, to the appropriate regional manager of that division. The

amendment also provides for the joint issuance of an order of

investigation by the Director of the Division of Supervision and the

Director of the Division of Compliance and Consumer Affairs when both

safety and soundness and consumer compliance matters will be a subject

of the investigation. The reference to ``Division of Liquidation'' has

been changed to ``Division of Depositor and Asset Services'' to reflect

an earlier title change for that division. The reference to the

relevant FDIC regulation is updated to specify the current citation,

which is subpart K of part 308.

j. Actions pursuant to the Truth in Lending Act (Sec. 303.9(j)).

This section has been amended to provide delegations of authority to

the Director of the Division of Compliance and Consumer Affairs and the

appropriate regional manager in that division and to eliminate existing

delegations to the Director and other personnel of the Division of

Supervision. The scope of the delegation to regional managers has been

broadened to allow regional managers to deny any request for relief

from the requirements for reimbursement under the Truth in Lending Act

up to $25,000 instead of $10,000.

k. Unilateral settlement offers (Sec. 303.9(k)) and acceptance of

written agreements (Sec. 303.9(l)). These sections have been amended to

include delegations of authority to the Director and an associate

director of the Division of Compliance and Consumer Affairs. Section

303.9(k) has also been amended to provide that, in cases where a

proceeding was issued jointly by DOS and DCA, both Directors, or their

designees, must agree to accept, deny or enter into any negotiations

for unilateral settlement offers. Section 303.9(l) has also been

amended to provide that in cases where both safety and soundness and

consumer compliance matters are addressed, joint written agreements may

be entered into. Section 303.9(l)(2) has further been amended to

broaden the scope of authority delegated to both directors, and where

confirmed in writing by either director, to an associate director, to

accept or enter into written agreements pertaining to any safety and

soundness or consumer compliance matter which may be addressed by

section 8(b) of the FDI Act or any other provision of the FDI Act which

addresses safety and soundness or consumer compliance matters.

l. Modifications and terminations of enforcement actions

(Sec. 303.9(m)). Section 303.9(m) has been amended to provide a

delegation of authority to the Director of the Division of Compliance

and Consumer Affairs and, where confirmed in writing, the appropriate

associate director and regional manager to terminate actions initiated

and orders issued under 12 U.S.C. 1818 (b) or (c) when the depository

institution has failed or merged. The delegated authority to modify or

terminate other actions not specifically addressed remains unchanged,

but language is added to clarify that notifications and notices are

included in the types of actions that may be acted upon under this

section. The concurrent certification requirement for terminations and

modifications remains substantially unchanged.

m. Enforcement of outstanding orders (Sec. 303.9(n)). This section

has been amended to include consultation by the General Counsel or

designee with the Director, an associate director or regional manager

of the Division of Compliance and Consumer Affairs prior to the

initiation of any action to enforce certain outstanding orders.

3. Applications and Enforcement Matters Where Authority Is Not

Delegated (Sec. 303.10)

Authority not specifically delegated is retained by the Board of

Directors (Sec. 303.10(a)(2)). This section has been amended to include

references to the Director, associate director and regional manager in

the Division of Compliance and Consumer Affairs.

4. Confirmation, Limitations, Rescissions, and Special Cases

(Sec. 303.11)

Action under delegated authority not mandated (Sec. 303.11(b)).

This section has been amended to include references to the Director,

associate director and regional manager in the Division of Compliance

and Consumer Affairs.

B. Amendment to Part 338

Part 338 is amended by changing the address on the Equal Housing

Lender Poster contained in Sec. 338.4(b) of the FDIC's regulations, 12

CFR 338.4(b), to reflect the name of the new Division of Compliance and

Consumer Affairs.

Exemption From Public Comment

Rules of agency organization, procedure or practice are exempt from

public comment requirements of section 553 of the Administrative

Procedure Act (5 U.S.C. 553(b)(A)). The FDIC believes that it is

unnecessary to seek public comment in this case because these

amendments concern rules of agency organization, procedure or practice

which fall within this exemption. Therefore, the amendments are being

issued as a final, rather than proposed, rule.

Effective Date of Amendments

Section 553 of the Administrative Procedure Act (5 U.S.C. 553)

generally requires that a final rule be published 30 days prior to its

effective date, subject to certain exceptions. One such exception is

that if an agency finds good cause for making a rule immediately

effective and publishes the basis for such finding, then the rule need

not be published 30 days prior to its effective date. 5 U.S.C.

553(d)(3). These amendments merely concern internal delegations of

authority and do not affect any substantive rights. Therefore, the FDIC

Board of Directors finds good cause to waive the 30-day delayed

effective date in order to quickly effectuate the corporate

reorganization and to provide the new Division of Compliance and

Consumer Affairs with appropriate legal authority to carry out its

functions and duties.

Paperwork Reduction Act

This rulemaking does not require any collections of information

pursuant to section 3504(h) of the Paperwork Reduction Act, 44 U.S.C.

3501 et seq. Accordingly, no information has been submitted to the

Office of Management and Budget for review.

Authority

These amendments are promulgated under the FDIC's general authority

to prescribe, through its Board of Directors, such rules and

regulations as it may deem necessary to carry out the provisions of the

Federal Deposit Insurance Act or any other law which the FDIC has the

responsibility of administering or enforcing (except to the extent that

authority to issue such rules and regulations has been expressly and

exclusively granted to any other regulatory agency). 12 U.S.C. 1819(a)

(Tenth).

List of Subjects

12 CFR Part 303

Administrative practice and procedure, Authority delegations

(Government agencies), Bank deposit insurance, Banks, banking, Insured

depository institutions, Reporting and recordkeeping requirements,

Savings associations.

12 CFR Part 338

Advertising, Banks, banking, Civil rights, Credit, Fair housing,

Mortgages, Reporting and recordkeeping requirements, Signs and symbols.

The Board of Directors of the Federal Deposit Insurance Corporation

hereby amends parts 303 and 338 of title 12 of the Code of Federal

Regulations as follows:

PART 303--APPLICATIONS, REQUESTS, SUBMITTALS, DELEGATIONS OF

AUTHORITY, AND NOTICES REQUIRED TO BE FILED BY STATUTE OR

REGULATION

1. The authority citation for part 303 continues to read as

follows:

Authority: 12 U.S.C. 378, 1813, 1815, 1816, 1817(a)(2)(b),

1817(j), 1818, 1819 (``Seventh,'' ``Eighth'' and ``Tenth''), 1828,

1831e, 1831o, 1831p-1(a); 15 U.S.C. 1607.

2. Section 303.0 is revised to read as follows:

Sec. 303.0 Scope and definitions.

(a) Scope. This part prescribes:

(1) Where applications, requests, and notices required to be filed

by statute or regulation (hereinafter, collectively, applications)

should be filed;

(2) The contents of the application when the application is to be

made by letter;

(3) The location where forms and instructions may be obtained when

the application is to be made on a form. This part also prescribes

procedures to be followed by both the FDIC and applicants during the

process of consideration of an application; and

(4) Finally, this part sets forth delegations of authority by the

FDIC's Board of Directors to the Director of the Division of

Supervision and the Director of the Division of Compliance and Consumer

Affairs, to their associate directors, to the regional directors and

deputy regional directors of the Division of Supervision, and to the

regional managers of the Division of Compliance and Consumer Affairs to

act on certain applications and other matters pursuant to the

conditions, where applicable, that limit such delegations.

(b) Definitions. For purposes of this part:

(1) Corporation or FDIC. The terms Corporation or FDIC shall mean

the Federal Deposit Insurance Corporation.

(2) Division or DOS. The terms division or DOS shall mean the

Division of Supervision, or in the event the Division of Supervision is

reorganized, such successor division.

(3) DCA. The term DCA shall mean the Division of Compliance and

Consumer Affairs, or in the event the Division of Compliance and

Consumer Affairs is reorganized, such successor division.

(4) Director (DOS). The term Director (DOS) shall mean the Director

of the Division of Supervision, or in the event the title of Director

of the Division of Supervision becomes obsolete, any official of

equivalent or higher authority.

(5) Director (DCA). The term Director (DCA) shall mean the Director

of the Division of Compliance and Consumer Affairs, or in the event the

title of Director of the Division of Compliance and Consumer Affairs

becomes obsolete, any official of equivalent or higher authority.

(6) Associate director. The term associate director shall mean any

associate director of the Division of Supervision or the Division of

Compliance and Consumer Affairs, as appropriate, or in the event the

title of associate director becomes obsolete, any official of

equivalent authority within the respective divisions.

(7) Regional director. The term regional director shall mean any

regional director of the Division of Supervision, or in the event the

title of regional director becomes obsolete, any official of equivalent

authority within the Division of Supervision.

(8) Deputy regional director. The term deputy regional director

shall mean any deputy regional director of the Division of Supervision,

or in those FDIC regions where there is no deputy regional director, an

assistant regional director. In the event the title of deputy regional

director or assistant regional director becomes obsolete, the term

deputy regional director shall mean any official of equivalent

authority within the same FDIC region of the Division of Supervision.

(9) Regional manager. The term regional manager shall mean any

regional manager in the Division of Compliance and Consumer Affairs, or

in the event the title of regional manager becomes obsolete, any

official of equivalent authority within the Division of Compliance and

Consumer Affairs.

(10) Associate General Counsel for Compliance and Enforcement. The

term Associate General Counsel for Compliance and Enforcement shall

mean the head of the Compliance and Enforcement Section of the Legal

Division of the FDIC, or in the event the title of Associate General

Counsel for Compliance and Enforcement becomes obsolete, any official

of equivalent authority within the Legal Division. The authority

delegated to the Associate General Counsel for Compliance and

Enforcement may be exercised by the Deputy General Counsel for

Supervision and Legislation or a counsel in the Compliance and

Enforcement Section in the Washington, D.C. office.

(11) Regional counsel. The term regional counsel shall mean a

regional counsel of the Legal Division, or in the event the title of

regional counsel becomes obsolete, any official of equivalent authority

within the Legal Division. The authority delegated to a regional

counsel may be exercised by a deputy regional counsel, a counsel, or

any official of equivalent or higher authority in the Compliance and

Enforcement Section of the Legal Division.

(12) Appropriate FDIC region, appropriate FDIC regional office,

appropriate regional director, appropriate deputy regional director,

appropriate regional manager, appropriate regional counsel. The terms

appropriate FDIC region, appropriate FDIC regional office, appropriate

regional director, appropriate deputy regional director, appropriate

regional manager, and appropriate regional counsel shall refer to the

FDIC region, the regional director, the deputy regional director, the

regional manager, and the regional counsel, respectively, of the FDIC

region in which:

(i) The applicant depository institution, the proposed or newly

organized nonmember bank or savings association, the insured branch of

a foreign bank, the resulting or assuming depository institution, or

the bank in which stock is being acquired, as appropriate, is or will

be located; or

(ii) A depository institution--

(A) Which is the subject of an administrative action; or

(B) With which an individual who is the subject of an

administrative action is associated, is located.

(13) Act. The term the Act shall mean the Federal Deposit Insurance

Act (12 U.S.C. 1811 et seq.).

(14) Institution-affiliated party. The term institution-affiliated

party shall have the same meaning as provided in section 3(u) of the

Act (12 U.S.C. 1813(u)).

(15) Notification to primary regulator. The term notification to

primary regulator shall mean a notice required under section 8(a)(2)(A)

of the Act (12 U.S.C. 1818(a)(2)(A)).

(16) Section 8(a) order. The term section 8(a) order shall mean an

order terminating the insured status of a depository institution under

section 8(a) of the Act (12 U.S.C. 1818(a)).

(17) Notice of charges. The term notice of charges shall mean a

notice of charges and of hearing setting forth the allegations of

unsafe or unsound practices and/or violations and fixing the time and

place of the hearing issued under section 8(b) of the Act (12 U.S.C.

1818(b)).

(18) Section 8(b) order and cease-and-desist order. The terms

section 8(b) order and cease-and-desist order shall mean a final order

to cease and desist issued under section 8(b) of the Act (12 U.S.C.

1818(b)).

(19) Section 8(c) order and temporary cease-and-desist order. The

terms section 8(c) order and temporary cease-and-desist order shall

mean a temporary order to cease and desist issued under section 8(c) of

the Act (12 U.S.C. 1818(c)).

(20) Section 8(e) order. The term section 8(e) order shall mean a

final order of removal or prohibition issued under section 8(e) of the

Act (12 U.S.C. 1818(e)).

(21) Section 8(e)(3) order and temporary order of suspension. The

terms section 8(e)(3) order and temporary order of suspension shall

mean a temporary order of suspension or prohibition issued under

section 8(e)(3) of the Act (12 U.S.C. 1818(e)(3)).

(22) Section 8(g) order. The term section 8(g) order shall mean an

order of suspension or prohibition issued under section 8(g) of the Act

(12 U.S.C. 1818(g)).

(23) Remote service facility. The term remote service facility

shall mean an automated teller machine, cash dispensing machine, point-

of-sale terminal, or other remote electronic facility where deposits

are received, checks paid, or money lent.

(24) Notice of assessment of civil money penalties. The term notice

of assessment of civil money penalties shall mean a notice of

assessment of civil penalties, findings of fact and conclusions of law,

and order to pay issued pursuant to sections 7(a)(1), 7(j)(15), 8(i) or

18(j) of the Act (12 U.S.C. 1817(a)(1), 1817(j)(15), 1818(i), or

1828(j)), section 106(b) of the Bank Holding Company Act (12 U.S.C.

1972), section 910(d) of the International Lending Supervision Act of

1983 (12 U.S.C. 3909), or any other provision of law providing for the

assessment of civil money penalties by the FDIC.

(25) Amended order to pay. The term amended order to pay shall mean

an order to forfeit and pay civil money penalties, the amount of which

has been changed from that assessed in the original notice of

assessment of civil money penalties.

(26) Book capital. The term book capital shall mean total equity

capital which is comprised of perpetual preferred stock, common stock,

surplus, undivided profits and capital reserves, as those items are

defined in the instructions of the Federal Financial Institutions

Examination Council (FFIEC) for the preparation of Consolidated Reports

of Condition and Income for insured banks.

(27) Tier 1 capital. The term Tier 1 capital shall have the same

meaning as provided in Sec. 325.2(m) of this chapter (12 CFR 325.2(m)).

(28) Total assets. The term total assets shall have the same

meaning as provided in Sec. 325.2(n) of this chapter (12 CFR 325.2(n)).

(29) Adjusted Part 325 total assets. The term adjusted Part 325

total assets shall mean adjusted 12 CFR part 325 total assets as

calculated and reflected in the FDIC's Reports of Examination.

(30) Protest. The term protest shall include any comment from the

public which raises a negative issue relative to the Community

Reinvestment Act (12 U.S.C. 2901 et seq.), whether or not it is labeled

a protest and whether or not a hearing is requested; however, the term

protest shall not include any such comment which the appropriate

regional manager determines to be frivolous, or to have been filed for

competitive reasons by a financial institution, or to have been filed

primarily as a means of delaying action on the application, or any

comment which raises negative Community Reinvestment Act issues between

the commenter and the applicant that have been resolved.

(31) Standard conditions. The term standard conditions refers to

conditions that any delegate may include as a matter of routine in an

order approving an application, whether or not the applicant has agreed

to their inclusion. The following conditions, or variations thereof,

are standard conditions:

(i) That the applicant has obtained all necessary and final

approvals from the appropriate state authority or other applicable

authority;

(ii) That if the transaction does not take effect within a

specified time limit, or unless, in the meantime, a request for an

extension of time has been approved, the consent granted shall expire

at the end of the said time period;

(iii) That until the conditional commitment of the FDIC becomes

effective, the FDIC retains the right to alter, suspend or withdraw its

commitment should any interim development be deemed to warrant such

action; and

(iv) In the case of a merger transaction (as defined in

Sec. 303.7(b)(1)), including a phantom merger or reorganization, that

the proposed transaction not be consummated before the thirtieth

calendar day after the date of the order approving the merger.

(c) Powers. (1) Authority delegated to Director (DOS) and Director

(DCA). For purposes of this part, any authority delegated to the

Director (DOS) or the Director (DCA) may also be exercised by the

Executive Director, Divisions of Compliance, Resolutions and

Supervision, or in the event the title of Executive Director, Divisions

of Compliance, Resolutions and Supervision becomes obsolete, any

official of equivalent authority.

(2) Authority delegated to regional manager. For purposes of this

part, and where confirmed in writing, any authority delegated to the

regional manager may also be exercised by his or her principal

assistant.

(d) Construction. Any singular term includes the plural, and the

plural includes the singular, if such use would be appropriate. Any use

of the masculine, feminine, or neuter gender shall encompass all three,

if such use would be appropriate.

Sec. 303.4 [Amended]

3. Section 303.4(b)(1) is amended by removing the words ``of the

Division of Supervision'' after the word ``Director'' in the last

sentence and adding in lieu thereof the word ``(DOS)''.

Sec. 303.5 [Amended]

4. Section 303.5(e) introductory text is amended by removing the

words ``Division of Supervision'' before the words ``regional

director'' and adding in lieu thereof the word ``DOS''.

5. In Sec. 303.6, paragraph (b) is revised; by removing the word

``and'' at the end of paragraph (e)(1)(i), removing the period at the

end of paragraph (e)(1)(ii) and adding ``; and'' in its place,

designating the concluding text of paragraph (e)(1) as paragraph

(e)(1)(iii) and revising it, and revising paragraph (e)(2); amending

paragraph (i)(3) by adding the word ``(DOS)'' after the word

``Director''; and amending footnote 7 in paragraph (k)(2) by adding the

word ``(DOS)'' after the word ``Director'', to read as follows:

Sec. 303.6 Application procedures.

* * * * *

(b) Investigations and examinations. With respect to all

applications, requests, or submittals, the Board of Directors, or the

Director (DOS) or the Director (DCA), or their associate directors, or

the appropriate regional director, or the appropriate deputy regional

director, or the appropriate regional manager acting under delegated

authority may require any investigation or examination, or both, to be

performed as deemed appropriate. Upon receipt of the report of any

investigation or examination and any recommendations based on the

report, the Board of Directors, or either director, or their associate

directors, or the regional director, or the deputy regional director,

or the regional manager acting within the scope of delegated authority

will take any action determined necessary or appropriate under the

circumstances.

* * * * *

(e) * * *

(1) * * *

(iii) A petition or request relating to a safety and soundness

matter should be filed with the appropriate regional director. A

petition or request relating to compliance with consumer protection,

fair lending, community reinvestment or civil rights laws should be

filed with the appropriate regional manager. If a particular insured

depository institution or insured branch of a foreign bank was not the

subject of the application, petition, or request on which

reconsideration is sought, the petition should be filed with the

Executive Secretary of the FDIC at the FDIC's Washington, DC office.

(2) (i) The Director (DOS) or the Director (DCA) or, where

confirmed in writing by the appropriate Director, an associate

director, or the appropriate regional director or deputy regional

director, or the appropriate regional manager, or, in the case of a

petition for reconsideration filed with the Executive Secretary, the

General Counsel or his or her designee, shall determine whether the

petition for reconsideration satisfies paragraphs (e)(1)(i) and (ii) of

this section and shall promptly notify the petitioner of such

determination.

(ii) If, pursuant to paragraph (e)(2)(i) of this section, a

petition for reconsideration is determined not to satisfy paragraphs

(e)(1)(i) and (ii) of this section, an applicant may appeal such

decision to the appropriate Director, and where confirmed in writing by

that Director, to an associate director, or, in the case of a petition

for reconsideration filed with the Executive Secretary, to the

Chairperson of the FDIC or his or her designee. An applicant may not

submit additional information or evidence with the appeal and the

determination by the appropriate Director or associate director, or the

Chairperson of the FDIC or his or her designee whether the petition

satisfies paragraphs (e)(1)(i) and (ii) of this section is final, and

not appealable to the Board of Directors.

(iii) If a petition for reconsideration is determined to satisfy

paragraphs (e)(1)(i) and (ii) of this section, then the previously

denied application, petition, or request will be reconsidered:

(A) By the Board of Directors if originally denied by the Board of

Directors; or

(B) By the appropriate director, or where confirmed in writing by

the director, by an associate director, if originally denied by the

director, associate director, regional director, deputy regional

director, or regional manager.

(iv) Decisions by either director or their associate directors on

petitions for reconsideration are final and not appealable to the Board

of Directors.

* * * * *

Sec. 303.7 [Amended]

6. Section 303.7 is amended by:

a. Amending the section heading by removing the words ``of the

Division of Supervision'' after the word ``Director'' and adding in

lieu thereof the word ``(DOS)'';

b. Adding the word ``(DOS)'' after the word ``Director'' the first

time it appears in the following places:

(1) 303.7(a)(1)(i), (a)(1)(ii), (a)(2)(i) and (a)(2)(ii)

(2) 303.7(b)(1), (b)(2) and (b)(9)

(3) 303.7(c)(1) and (c)(3)

(4) 303.7(d)(1)(i), (d)(2)(i) and (d)(3)

(5) 303.7(e)(1) and (e)(2)(i)

(6) 303.7(f)(1), (f)(2), (f)(3)(i), (f)(3)(ii), (f)(3)(iii),

(f)(4)(i) and (f)(5)

c. Removing the word ``Director'' and inserting in lieu thereof the

word ``director'' the second time it appears in the following places:

(1) 303.7(a)(1)(i), (a)(1)(ii), (a)(2)(i) and (a)(2)(ii)

(2) 303.7(b)(1), (b)(2) and (b)(9)

(3) 303.7(c)(1) and (c)(3)

(4) 303.7(d)(1)(i), (d)(2)(i) and (d)(3)

(5) 303.7(e)(1) and (e)(2)(i)

(6) 303.7(f)(1), (f)(3)(i), (f)(3)(ii), (f)(3)(iii), (f)(4)(i) and

(f)(5)

d. Removing the citation ``303.0(b)(26)'' and adding in lieu

thereof the citation ``303.0(b)(31)'' in the following places:

(1) 303.7(a)(1)(i), (a)(2)(i) and (a)(2)(ii)(B)

(2) 303.7(b)(8)

(3) 303.7(d)(4)(xii)

(4) 303.7(f)(6)

e. Removing the citation ``303.0(b)(25)'' and adding in lieu

thereof the citation ``303.0(b)(30)'' in the following places:

(1) 303.7(a)(1)(iii)(D)

(2) 303.7(b)(5)

(3) 303.7(d)(1)(iii)(A)

Sec. 303.8 [Amended]

7. Section 303.8 is amended by:

a. Adding the word ``(DOS)'' after the word ``Director'' the first

time it appears in the following places:

(1) 303.8(a)(1)

(2) 303.8(b)(1)

(3) 303.8(c)

(4) 303.8(e)

(5) 303.8(f)(1)

(6) 303.8(g)(1) and (g)(2)

(7) 303.8(h)

(8) 303.8(i)(1) and (i)(2)

b. Removing the word ``Director'' and adding in lieu thereof the

word ``director'' the second time it appears in the following places:

(1) 303.8(a)(1)

(2) 303.8(b)(1)

(3) 303.8(c)

(4) 303.8(e)

(5) 303.8(f)(1)

(6) 303.8(g)(1)

(7) 303.8(h)

(8) 303.8(i)(1) and (i)(2)

8. Section 303.9 is revised to read as follows:

Sec. 303.9 Delegation of authority to act on certain enforcement

matters.

(a) Actions pursuant to section 8(a) of the Act (12 U.S.C.

1818(a)). (1) Authority is delegated to the Director (DOS), and where

confirmed in writing by the director, to an associate director, or to

the appropriate regional director or deputy regional director, to issue

notifications to primary regulator when the respondent bank's book

capital is less than 2% of total assets; Provided however, That

authority may not be delegated to the regional director or deputy

regional director whenever the respondent bank has issued any mandatory

convertible debt or any form of Tier 2 capital (such as limited life

preferred stock/subordinated notes and debentures).

(2) Authority is delegated to the Director (DOS), and where

confirmed in writing by the director, to an associate director, to

issue notifications to primary regulator when the respondent bank's

adjusted Tier 1 capital is less than 2% of adjusted part 325 total

assets.

(3) The authority delegated under paragraphs (a)(1) and (2) of this

section shall be exercised only upon concurrent certification by the

Associate General Counsel for Compliance and Enforcement, or, in cases

where a regional director or deputy regional director issues

notifications to primary regulator, by the appropriate regional

counsel, that the allegations contained in the findings of unsafe or

unsound practices or conditions, if proven, constitute a basis for the

issuance of a notification to primary regulator pursuant to section

8(a) of the Act (12 U.S.C. 1818(a)).

(b) Actions pursuant to section 8(b) of the Act (12 U.S.C.

1818(b)). (1) Authority is delegated to the Director (DOS), to the

Director (DCA), and where confirmed in writing by either director, to

an associate director, or to the appropriate regional director, deputy

regional director or regional manager to issue:

(i) Notices of charges; and

(ii) Cease-and-desist orders (with or without a prior notice of

charges) where the respondent bank or individual respondent consents to

the issuance of the cease-and-desist order prior to the filing by an

administrative law judge of proposed findings of fact, conclusions of

law and recommended decision with the Executive Secretary of the FDIC.

(2) The Director (DOS) and the Director (DCA) may issue a joint

notice of charges or cease-and-desist order under paragraph (b)(1) of

this section, where such notice or order addresses both safety and

soundness and consumer compliance matters. A joint notice or order will

require the signatures of both directors or, alternatively, the

signatures of the appropriate regional director or deputy regional

director and regional manager.

(3) The authority delegated under paragraphs (b)(1) and (2) of this

section shall be exercised only upon concurrent certification by the

Associate General Counsel for Compliance and Enforcement or, in cases

where a regional director, deputy regional director or regional manager

issues the notice of charges or the stipulated cease-and-desist order,

by the appropriate regional counsel, that the allegations contained in

the notice of charges, if proven, constitute a basis for the issuance

of a section 8(b) order, or that the stipulated cease-and-desist order

is authorized under section 8(b) of the Act, and, upon its effective

date, shall be a cease-and-desist order which has become final for

purposes of enforcement pursuant to the Act.

(c) Actions pursuant to section 8(c) of the Act (12 U.S.C.

1818(c)). (1) Authority is delegated to the Director (DOS), to the

Director (DCA), and where confirmed in writing by either director, to

an associate director, to issue temporary cease-and-desist orders.

(2) The Director (DOS) and the Director (DCA) may issue a joint

temporary cease-and-desist order where such order addresses both safety

and soundness and consumer compliance matters. A joint notice or order

will require the signatures of both directors or, alternatively, the

signatures of the appropriate regional director or deputy regional

director and regional manager.

(3) The authority delegated under paragraphs (c)(1) and (2) of this

section shall be exercised only upon concurrent certification by the

Associate General Counsel for Compliance and Enforcement that the

action is not inconsistent with section 8(c) of the Act (12 U.S.C.

1818(c)) and the temporary cease-and-desist order is enforceable in a

United States District Court.

(d) Actions pursuant to section 8(e) of the Act (12 U.S.C.

1818(e)). (1) Authority is delegated to the Director (DOS) or the

Director (DCA), and where confirmed in writing by the director, to an

associate director, to issue:

(i) Notices of intention to remove an institution-affiliated party

from office or to prohibit an institution-affiliated party from further

participation in the conduct of the affairs of an insured depository

institution pursuant to sections 8(e)(1) and (2) of the Act (12 U.S.C.

1818(e)(1) and (2)), and temporary orders of suspension pursuant to

section 8(e)(3) of the Act (12 U.S.C. 1818(e)(3)); and

(ii) Orders of removal, suspension or prohibition from

participation in the conduct of the affairs of an insured depository

institution where the institution-affiliated party consents to the

issuance of such orders prior to the filing by an administrative law

judge of proposed findings of fact, conclusions of law and a

recommended decision with the Executive Secretary of the FDIC.

(2) The Director (DOS) and the Director (DCA) may issue joint

notices and orders pursuant to paragraph (d)(1) of this section where

such notice or order addresses both safety and soundness and consumer

compliance matters. A joint notice or order will require the signatures

of both directors or their associate directors.

(3) The authority delegated under paragraphs (d)(1) and (2) of this

section shall be exercised only upon concurrent certification by the

Associate General Counsel for Compliance and Enforcement that the

allegations contained in the notice of intent, if proven, constitute a

basis for the issuance of a notice of intent pursuant to section 8(e)

of the Act, or that the stipulated section 8(e) order is not

inconsistent with section 8(e) of the Act, and, upon issuance, shall be

an order which has become final for purposes of enforcement pursuant to

the Act.

(e) Actions pursuant to section 8(g) of the Act (12 U.S.C.

1818(g)). (1) Authority is delegated to the Director (DOS), to the

Director (DCA), and where confirmed in writing by either director, to

an associate director, to issue orders of suspension or prohibition to

an institution-affiliated party who is charged in any information,

indictment, or complaint as set forth in section 8(g) of the Act when

such institution-affiliated party consents to the suspension or

prohibition.

(2) The Director (DOS) and the Director (DCA) may issue joint

orders pursuant to paragraph (e)(1) of this section where such order

addresses both safety and soundness and consumer compliance matters. A

joint order will require the signatures of both directors or their

associate directors.

(3) The authority delegated under paragraphs (e)(1) and (2) of this

section shall be exercised only upon concurrent certification by the

Associate General Counsel for Compliance and Enforcement that the

action taken is not inconsistent with section 8(g) of the Act (12

U.S.C. 1818(g)) and the order is enforceable in a United States

District Court pursuant to sections 8(i) and 8(j) of the Act (12 U.S.C.

1818 (i) and (j)).

(f) Actions pursuant to section 8(p) of the Act (12 U.S.C.

1818(p)). (1) Authority is delegated to the Executive Secretary to

issue consent orders terminating the insured status of insured

depository institutions that have ceased to engage in the business of

receiving deposits other than trust funds pursuant to section 8(p) of

the Act (12 U.S.C. 1818(p)).

(2) The authority delegated under paragraph (f)(1) of this section

shall be exercised only upon the recommendation and concurrence of the

Director (DOS) or associate director and the Associate General Counsel

for Compliance and Enforcement that the action taken is not

inconsistent with section 8(p) of the Act.

(g) Civil money penalties. (1)(i) Except as provided for in

paragraph (g)(3) of this section, authority is delegated to the

Director (DOS), to the Director (DCA), and where confirmed in writing

by either director, to an associate director, to issue notices of

assessment of civil money penalties.

(ii) The authority delegated under paragraph (g)(1)((i) of this

section shall be exercised only upon concurrent certification by the

Associate General Counsel for Compliance and Enforcement that the

allegations contained in the notice of assessment, if proven,

constitute a basis for assessment of civil money penalties.

(2) The Director (DOS) and the Director (DCA) may issue joint

notices pursuant to paragraph (g)(1) of this section where such notice

addresses both safety and soundness and consumer compliance matters. A

joint notice will require the signatures of both directors or their

associate directors.

(3) Authority is delegated to the General Counsel or designee for

the levying and enforcement of civil money penalties under section

7(a)(1) of the Act (12 U.S.C. 1817(a)(1)) for the late, inaccurate,

false or misleading filing of Reports of Condition and Report of

Income, and such other reports as the Board of Directors may require

under the authority of that section. In the exercise of the delegated

authority, the General Counsel or designee shall consult with the

appropriate Director or associate director before imposing any penalty.

(h) Directives and capital plans under section 38 of the Act

(prompt corrective action) and part 325 of this chapter. (1) Authority

is delegated to the Director (DOS), and where confirmed in writing by

the director, to an associate director, or to the appropriate regional

director or deputy regional director, to accept, to reject, to require

new or revised capital restoration plans or to make any other

determinations with respect to the implementation of capital

restoration plans and, in accordance with subpart Q of part 308 of this

chapter, to issue:

(i) Notices of intent to issue capital directives;

(ii) Directives to insured state nonmember banks that fail to

maintain capital in accordance with the requirements contained in part

325 of this chapter;

(iii) Notices of intent to issue prompt corrective action

directives, except directives issued pursuant to section

38(f)(2)(F)(ii) of the Act (12 U.S.C. 1831o(f)(2)(F)(ii));

(iv) Directives to insured depository institutions pursuant to

section 38 of the Act (12 U.S.C. 1831o), with or without the consent of

the respondent bank to the issuance of the directive, except directives

issued pursuant to section 38(f)(2)(F)(ii) of the Act (12 U.S.C.

1831o(f)(2)(F)(ii));

(v) Directives to insured depository institutions requiring

immediate action or imposing proscriptions pursuant to section 38 of

the Act (12 U.S.C. 1831o) and part 325 of this chapter, and in

accordance with the requirements contained in Sec. 308.201(a)(2) of

this chapter;

(vi) Notices of intent to reclassify insured banks pursuant to

Secs. 325.103(d) and 308.202 of this chapter;

(vii) Directives to reclassify insured banks pursuant to

Secs. 325.103(d) and 308.202 of this chapter with the consent of the

respondent bank to the issuance of the directive; and

(viii) Orders on request for informal hearings to reconsider

reclassifications and designate the presiding officer at the hearing

pursuant to Sec. 308.202 of this chapter.

(2) Authority is delegated to the Director (DOS), and where

confirmed in writing by the director, to an Associate Director, to:

(i) Issue notices of intent to issue a prompt corrective action

directive ordering the dismissal from office of a director or senior

executive officer pursuant to section 38(f)(2)(F)(ii) of the Act, (12

U.S.C. 1831o(f)(2)(F)(ii)), and in accordance with the requirements

contained in Sec. 308.203 of this chapter;

(ii) Issue directives ordering the dismissal from office of a

director or senior executive officer pursuant to section

38(f)(2)(F)(ii) of the Act, (12 U.S.C. 1831o(f)(2)(F)(ii));

(iii) Issue orders of dismissal from office of a director or senior

executive officer pursuant to section 38(f)(2)(F)(ii) of the Act, 12

U.S.C. 1831o(f)(2)(F)(ii) where the individual consents to the issuance

of such order prior to the filing of a recommendation by the presiding

officer with the FDIC;

(iv) Act on recommended decisions of presiding officers pursuant to

a request for reconsideration of a reclassification in accordance with

the requirements contained in Sec. 308.202 of this chapter;

(v) Act on requests for rescission of a reclassification; and

(vi) Act on appeals from immediately effective directives issued

pursuant to section 38 of the Act, (12 U.S.C. 1831o) and Sec. 308.201

of this chapter.

(3) Authority is delegated to the Executive Secretary of the FDIC

to issue orders for informal hearings and designate presiding officers

on directives issued pursuant to section 38(f)(2)(F)(ii) of the Act, 12

U.S.C. 1831o(f)(2)(F)(ii).

(4) The authority delegated under paragraphs (h)(1)(i) and (ii) of

this section shall be exercised only upon the concurrent certification

by the Associate General Counsel for Compliance and Enforcement, or in

cases where a regional director or deputy regional director issues the

notice of intent to issue a capital directive or capital directives, by

the appropriate regional counsel, that the action taken is not

inconsistent with the Act and part 325 of this chapter.

(5) The authority delegated under paragraphs (h)(1) (iii), (iv),

(v), (vi) and (vii) of this section shall be exercised only upon the

concurrent certification by the Associate General Counsel for

Compliance and Enforcement, or in cases where a regional director or

deputy regional director issues the notice of intent to issue a prompt

corrective action directive or prompt corrective action directives, or

the notice of intent to reclassify or reclassification directive, by

the appropriate regional counsel, that the allegations contained in the

notice of intent, if proven, constitute a basis for the issuance of a

final directive pursuant to section 38 of the Act, or that the issuance

of a final directive is not inconsistent with section 38 of the Act.

(6) The authority delegated under paragraph (h)(2) of this section

shall be exercised only upon the concurrent certification by the

Associate General Counsel for Compliance and Enforcement that the

allegations contained in the notice of intent, if proven, constitute a

basis for the issuance of a final directive pursuant to section 38 of

the Act or that the issuance of a final directive is not inconsistent

with section 38 of the Act or that the stipulated section 38 order is

not inconsistent with section 38 and is an order which has become final

for purposes of enforcement pursuant to the Act.

(i) Investigations pursuant to section 10(c) of the Act (12 U.S.C.

1820(c)). (1) Authority is delegated to the Director (DOS), to the

Director (DCA), to the Director of the Division of Depositor and Asset

Services, and where confirmed in writing by the director, to an

associate director, or to the appropriate regional director, deputy

regional director or regional manager, to issue an order of

investigation pursuant to section 10(c) of the Act (12 U.S.C. 1820(c))

and subpart K of Part 308 (12 CFR 308.144 through 308.150).

(2) Authority is delegated to the General Counsel, and where

confirmed in writing by the General Counsel, to his designee, to issue

an order of investigation pursuant to section 10(c) of the Act (12

U.S.C. 1820(c)) and subpart K of Part 308 (12 CFR 308.144 through

308.150).

(3) In issuing an order of investigation that pertains to an open

insured depository institution or an institution making application to

become an insured depository institution, the authority delegated under

paragraphs (i)(1) and (2) of this section shall be exercised only upon

the concurrent execution of the order of investigation by the Director

(DOS) or the Director (DCA), or their associate directors, or the

appropriate regional director, deputy regional director or regional

manager, and the General Counsel or designee. In the case of a joint

order of investigation, such authority shall be exercised only upon the

concurrent execution of the order of investigation by both directors,

or their associate directors, or the appropriate regional director,

deputy regional director and regional manager, and the General Counsel

or designee.

(j) Truth in Lending Act. (1) Authority is delegated to the

Director (DCA), and where confirmed in writing by the director, to the

associate director, or to the appropriate regional manager, to deny

requests for relief from the requirements for reimbursement under

section 608(a)(2) of the Truth in Lending Simplification and Reform Act

(15 U.S.C. 1607(e)(2)); Provided however, that a regional manager is

not authorized to deny any request where the estimated amount of

reimbursement is greater than $25,000.

(2) Authority is delegated to the Director (DCA), and where

confirmed in writing by the director, to an associate director:

(i) To grant request for relief from the requirements for

reimbursement under section 608(a)(2) of the Truth in Lending

Simplification and Reform Act (15 U.S.C. 1670(a)(2)); and

(ii) To act on applications for reconsideration of any action taken

under paragraphs (j) (1) and (2) of this section.

(3) The authority delegated under paragraphs (j) (1) and (2) of

this section shall be exercised only upon concurrent certification by

the Associate General Counsel for Compliance and Enforcement, or, in

cases where a regional manager denies requests for relief, by the

appropriate regional counsel, that the action taken is not inconsistent

with the Truth in Lending Simplification and Reform Act.

(k) Unilateral settlement offers. (1) Authority is delegated to the

Director (DOS), to the Director (DCA), and where confirmed in writing

by either director, to an associate director, to accept, deny or enter

into negotiations for unilateral settlement offers with insured

depository institutions, or with an institution-affiliated party,

pertaining to a proceeding under 12 CFR part 308. In cases where a

proceeding under 12 CFR part 308 was issued jointly by DOS and DCA,

both directors, or their associate directors, must agree to accept,

deny or enter into negotiations for unilateral settlement offers with

insured depository institutions or with an institution-affiliated

party.

(2) The authority delegated under paragraph (k)(1) of this section

shall be exercised only upon concurrent certification by the Associate

General Counsel for Compliance and Enforcement that the action taken is

not inconsistent with the Act.

(l) Acceptance of written agreements. (1) Authority is delegated to

the Director (DOS), and where confirmed in writing by the director, to

an associate director, to accept or enter into any written agreements

with insured depository institutions, or any institution-affiliated

party pertaining to any matter which may be addressed by the FDIC

pursuant to section 8(a) of the Act (12 U.S.C. 1818(a)).

(2) Authority is delegated to the Director (DOS), to the Director

(DCA), and where confirmed in writing by either director, to an

associate director, to accept or enter into any written agreements with

insured depository institutions, or any institution-affiliated party

pertaining to any safety and soundness or consumer compliance matter

which may be addressed by the FDIC pursuant to section 8(b) of the Act

(12 U.S.C. 1818(b)) or any other provision of the Act which addresses

safety and soundness or consumer compliance matters. In cases which

would address both safety and soundness and consumer compliance

matters, the Directors, or their designees, may accept or enter into

joint written agreements with insured depository institutions or

institution-affiliated parties.

(3) The authority delegated under paragraphs (l) (1) and (2) of

this section shall be exercised only upon concurrent certification by

the Associate General Counsel for Compliance and Enforcement that the

action taken is not inconsistent with sections 8 (a) and (b) of the

Act.

(m) Modifications and terminations of enforcement actions. (1)

Sections 8(a), 8(b) and 8(c) (12 U.S.C. 1818 (a), (b) and (c)) actions

upon failure or merger of a depository institution. (i) Authority is

delegated to the Director (DOS), and where confirmed in writing by the

director, to an associate director, or to the appropriate regional

director or deputy regional director, to terminate outstanding section

8(a) orders and agreements and to terminate actions and agreements

which are pending pursuant to section 8(a) of the Act when the

depository institution is closed by a Federal or state authority or

merges into another institution.

(ii) Authority is delegated to the Director (DOS), to the Director

(DCA), and where confirmed in writing by either director, to an

associate director, or to the appropriate regional director, deputy

regional director or regional manager, to terminate outstanding section

8(b) and section 8(c) orders and agreements and to terminate actions

and agreements which are pending pursuant to sections 8(b) and 8(c) of

the Act when the depository institution is closed by a Federal or state

authority or merges into another institution. In cases where a joint

order was issued by DOS and DCA, both directors, or their associate

directors, or the appropriate regional director or deputy regional

director and regional manager, must agree prior to the termination of

outstanding 8(b) and 8(c) orders.

(2) Section 8(a) (12 U.S.C. 1818(a)) actions issued by the Board of

Directors. (i) Authority is delegated to the Director (DOS), and where

confirmed in writing by the director, to an associate director, or to

the appropriate regional director or deputy regional director, to

modify or terminate notifications to primary regulator issued by the

Board of Directors pursuant to section 8(a) of the Act where the

respondent depository institution is in material compliance with such

notification or for good cause shown.

(ii) In cases where the Board of Directors has issued a notice of

intent to terminate insured status pursuant to section 8(a) of the Act,

authority is delegated to the Director (DOS), and where confirmed in

writing by the director, to an associate director, or to the

appropriate regional director or deputy regional director, to terminate

the actions pending pursuant to such notice of intent to terminate

insured status where the respondent depository institution is in

material compliance with the applicable notification to primary

regulator or for good cause shown.

(3) Section 8(b) (12 U.S.C. 1818(b)) orders issued by the Board of

Directors. Authority is delegated to the Director (DOS) or the Director

(DCA), and where confirmed in writing by the director, to an associate

director, or to the appropriate regional director, deputy regional

director or regional manager, to terminate outstanding section 8(b)

orders issued by the Board of Directors where either material

compliance with the section 8(b) order has been achieved by the

respondent depository institution or individual respondent or for good

cause shown. In cases where an order issued by the Board addresses both

safety and soundness and consumer compliance matters, both directors,

or their designees, must agree prior to the termination of outstanding

8(b) orders.

(4) Section 8(g) orders issued by the Board of Directors. Authority

is delegated to the Director (DOS) or the Director (DCA), and where

confirmed in writing by the director, to an associate director, to

approve requests for modifications or terminations of section 8(g)

orders issued by the Board of Directors.

(5) Other matters not specifically addressed. For all other

outstanding orders or pending actions not specifically addressed in

paragraphs (m)(1), (m)(2), (m)(3) and (m)(4) of this section, the

delegations of authority contained in paragraphs (a)(1), (a)(2),

(b)(1), (c)(1), (d)(1), (e)(1), (g)(1), (g)(2), (h)(1), (h)(2), (l)(1),

(l)(2), and (n) of this section shall be construed to include the

authority to modify or terminate any outstanding notice, order,

directive or agreement, as may be appropriate, issued pursuant to

delegated authority and to terminate any pending action initiated

pursuant to delegated authority.

(6) Certification. Any modifications or terminations pursuant to

paragraphs (m)(1), (m)(2), (m)(3), (m)(4), and (m)(5) of this section

shall be exercised only upon concurrent certification by the Associate

General Counsel for Compliance and Enforcement, or in cases where a

regional director, deputy regional director or regional manager acts

under delegated authority, by the appropriate regional counsel, that

the action taken is not consistent with the Act.

(n) Enforcement of outstanding orders. After consultation with the

Director (DOS) or the Director (DCA), or an associate director, or the

appropriate regional director, deputy regional director or regional

manager, as may be appropriate, the General Counsel or designee is

authorized to initiate and prosecute any action to enforce any

effective and outstanding order or temporary order issued under 12

U.S.C. 1817, 1818, 1820, 1828, 1829, 1831l, 1831o, 1972, or 3909, or

any provision thereof, in the appropriate United States District Court.

Sec. 303.10 [Amended]

9. Section 303.10 is amended by:

a. In paragraph (a)(2), by removing the words ``the Director, or to

an associate director or a regional director or deputy regional

director'' and adding in lieu thereof the words ``a Director, or to an

associate director, or to a regional director, deputy regional director

or regional manager'';

b. In paragraph (b)(2)(i), by removing the citation

``303.0(b)(26)'' and adding in lieu thereof the citation

``303.0(b)(31)''; and

c. In paragraph (c)(1)(i), by removing the words ``Orders of

correction'' and adding in lieu thereof the words ``Notifications to

primary regulator''.

10. Section 303.11(b) is revised to read as follows:

Sec. 303.11 Confirmation, limitations, rescissions and special cases.

* * * * *

(b) Action under delegated authority not mandated. (1) The Director

(DOS) or the Director (DCA) may, in writing, rescind the authority of

an associate director, regional director, deputy regional director or

regional manager to act on an application, request, notice of

acquisition of control or enforcement matter, and may himself act on

the same.

(2) (i) An associate director, regional director, deputy regional

director or regional manager may, in writing, recommend that the

authority to act on an application, request, notice of acquisition of

control or enforcement matter not be exercised by him; in such cases,

the authority to act on such application, request, notice of

acquisition of control or enforcement matter may be exercised by the

Director (DOS) or the Director (DCA). The Director may, in writing,

recommend that the authority to act on an application, request, notice

of acquisition of control or enforcement matter may not be exercised by

him; in such cases the Board of Directors will act on the application,

request, notice of acquisition of control or enforcement matter.

(ii) A regional counsel may, in writing, recommend that the

authority to act on an application made by insured depository

institutions pursuant to section 19 of the Act (12 U.S.C. 1829) or an

enforcement matter not be exercised by him; in such cases the authority

to act in such enforcement matters may be exercised by the Associate

General Counsel for Compliance and Enforcement. The Associate General

Counsel for Compliance and Enforcement may, in writing, recommend that

the authority to act on an application pursuant to section 19 of the

Act or enforcement matter not be exercised by him; in such cases, the

Board of Directors will act on the application or enforcement matter.

(iii) Upon determining not to act upon the application, request,

notice of acquisition of control or enforcement matter under delegated

authority, the regional manager, deputy regional director, regional

director, associate director, or the Director (DOS) or the Director

(DCA), and/or the regional counsel, or the Associate General Counsel

for Compliance and Enforcement, as the case may be, shall forward the

application, request, notice of acquisition of control or enforcement

matter, together with his recommendations as to the disposition of such

application, request, notice of acquisition of control or enforcement

matter to the appropriate authority as determined by the rules set

forth in paragraphs (b)(2) (i) and/or (ii) of this section.

* * * * *

11. Section 303.13 is amended by:

a. Removing the words ``for the Division of Supervision'' after the

words ``regional director'' and adding the word ``DOS'' before the

words ``regional director'' in the following places:

(1) 303.13(b)(1)

(2) 303.13 (c)(1)(i) and (c)(2)

(3) 303.13 (d)(1) and (d)(2)(i)

(4) 303.13(e)

(5) 303.13 (f)(1), (f)(3) and (f)(4)

(6) 303.13(g)

b. Revising paragraph (h) to read as follows:

Sec. 303.13 Applications and notices by savings associations.

* * * * *

(h) Delegations. The authority to act on applications and notices

filed pursuant to Sec. 303.13, and to make any and all determinations

called for in regard to the same, is delegated to the Director (DOS),

and where confirmed in writing by the director, to an associate

director, or to the regional director or deputy regional director.

12. Section 303.14 is amended:

a. In paragraph (a)(4)(iv), by removing the words ``(Division of

Supervision)'' after the words ``regional director'' and adding the

word ``DOS'' before the words ``regional director''; and

b. By revising paragraph (e) to read as follows:

Sec. 303.14 Change in senior executive officer or board of directors.

* * * * *

(e) Delegations. The authority to issue notices of disapproval or

notices of intent not to disapprove under this section; to grant

waivers of the prior notice requirement; to determine the informational

adequacy of a notice; to designate an insured nonmember bank as a

troubled institution; and to determine when the 30-day period begins to

run is delegated to the Director (DOS), and where confirmed in writing

by the director, to an associate director, or to the regional director

or deputy regional director.

PART 338--FAIR HOUSING

1. The authority citation for part 338 continues to read as

follows:

Authority: 12 U.S.C. 1817, 1818, 1819, 1820(b); 12 U.S.C. 2801

et seq.; 15 U.S.C. 1691 et seq.; 42 U.S.C. 3605, 3608; 12 CFR part

202; 12 CFR part 203; 24 CFR part 110.

2. The Equal Housing Lender Poster in Sec. 338.4(b) is revised to

read as follows:

BILLING CODE 6714-01-P

TR19OC94.000

BILLING CODE 6714-01-C

* * * * *

By Order of the Board of Directors.

Dated at Washington, D.C. this 27th day of September, 1994.

Federal Deposit Insurance Corporation.

Robert E. Feldman,

Acting Executive Secretary.

[FR Doc. 94-25606 Filed 10-18-94; 8:45 am]

BILLING CODE 6714-01-P