Removal of Transferred OTS Regulations Regarding Application Processing Procedures of State Savings Associations, 65270-65282 [2020-21000]

Agencies

• FEDERAL DEPOSIT INSURANCE CORPORATION

[Federal Register Volume 85, Number 200 (Thursday, October 15, 2020)]
[Proposed Rules]
[Pages 65270-65282]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-21000]


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FEDERAL DEPOSIT INSURANCE CORPORATION

12 CFR Parts 303 and 390

RIN 3064-AF36


Removal of Transferred OTS Regulations Regarding Application 
Processing Procedures of State Savings Associations

AGENCY: Federal Deposit Insurance Corporation (FDIC).

ACTION: Notice of proposed rulemaking.

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SUMMARY: In this notice of proposed rulemaking (NPR), the Federal 
Deposit Insurance Corporation (FDIC) proposes to rescind and remove 
certain regulations transferred to the FDIC from the Office of Thrift 
Supervision (OTS) in 2011 pursuant to the Dodd-Frank Wall Street Reform 
and Consumer Protection Act (Dodd-Frank Act). These regulations 
generally concern the supervision and governance of State savings 
associations, including the application processing procedures for 
certain applications, notices and filings by State savings 
associations. In addition to the removal of our regulations, the FDIC 
proposes to make technical changes to our regulations that do not 
currently apply to State savings associations. Following the 
rescission, the filing

[[Page 65271]]

regulations pertaining to State savings associations and all other 
FDIC-supervised institutions will be substantially the same. The FDIC 
invites comments on all aspects of this proposed rulemaking.

DATES: Comments must be received on or before November 16, 2020.

ADDRESSES: You may submit comments, identified by RIN 3064-AF36, by any 
of the following methods:
     Agency website: https://www.fdic.gov/regulations/laws/federal/. Follow instructions for submitting comments on the agency 
website.
     Email: [email protected]. Include RIN 3064-AF36 on the 
subject line of the message.
     Mail: Robert E. Feldman, Executive Secretary, Attention: 
Comments, Federal Deposit Insurance Corporation, 550 17th Street NW, 
Washington, DC 20429.
     Hand Delivery/Courier: Comments may be hand-delivered to 
the guard station at the rear of the 550 17th Street NW, building 
(located on F Street) on business days between 7 a.m. and 5 p.m.
     Federal eRulemaking Portal: https://www.regulations.gov. Follow the instructions for submitting comments.
    Public Inspection: All comments received will be posted without 
change to https://www.fdic.gov/regulations/laws/federal/, including any 
personal information provided.
    Please include your name, affiliation, address, email address, and 
telephone number(s) in your comment. All statements received, including 
attachments and other supporting materials, are part of the public 
record and are subject to public disclosure.
    Please note: All comments received will be posted generally without 
change to https://www.fdic.gov/regulations/laws/federal/, including any 
personal information provided.

FOR FURTHER INFORMATION CONTACT: Donald Hamm, Special Advisor, (202) 
898-3528, [email protected]; or Shelli Coffey, Review Examiner, (312) 382-
7539, [email protected], Risk Management Supervision; Andrew B. Williams 
II, Counsel, (202) 898-3591, [email protected], Legal Division.

SUPPLEMENTARY INFORMATION:

I. Policy Objective

    The policy objective of the proposed rule is to remove unnecessary 
and duplicative regulations in order to simplify and improve the 
public's understanding of the rule, and to promote parity between State 
savings associations and State nonmember banks by applying the same 
filing requirements to both classes of institutions. Thus, as further 
detailed in this section, the FDIC is proposing to rescind and remove, 
from the Code of Federal Regulations (CFR), 12 CFR part 390, subpart F 
(subpart F).
    As discussed below, the FDIC proposes to make technical changes to 
certain sections of part 303. The rescission of subpart F, with the 
accompanying revisions to 12 CFR 303, would simplify and streamline the 
FDIC's regulations by removing unnecessary provisions that are 
adequately provided for in other existing statutes and regulations.

II. Background

A. The Dodd-Frank Act

    The Dodd-Frank Act, signed into law on July 21, 2010, provided for 
a substantial reorganization of the regulation of State and Federal 
savings associations and their holding companies.\1\ Beginning July 21, 
2011, the transfer date established by section 311 of the Dodd-Frank 
Act,\2\ the powers, duties, and functions formerly performed by the OTS 
were divided among the FDIC, as to State savings associations, the 
Office of the Comptroller of the Currency (OCC), as to Federal savings 
associations, and the Board of Governors of the Federal Reserve System 
(FRB), as to savings and loan holding companies. Section 316(b) of the 
Dodd-Frank Act \3\ provides the manner of treatment of all orders, 
resolutions, determinations, regulations, and advisory materials that 
had been issued, made, prescribed, or allowed to become effective by 
the OTS. The section provides that if such materials were in effect on 
the day before the transfer date, they continue in effect and are 
enforceable by or against the appropriate successor agency until they 
are modified, terminated, set aside, or superseded in accordance with 
applicable law by such successor agency, by any court of competent 
jurisdiction, or by operation of law.
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    \1\ Pub. L. 111-203, 124 Stat. 1376 (2010).
    \2\ Codified at 12 U.S.C. 5411.
    \3\ Codified at 12 U.S.C. 5414(b).
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    Pursuant to section 316(c) of the Dodd-Frank Act,\4\ on June 14, 
2011, the FDIC's Board of Directors approved a ``List of OTS 
Regulations to be Enforced by the OCC and the FDIC Pursuant to the 
Dodd-Frank Wall Street Reform and Consumer Protection Act.'' This list 
was published by the FDIC and the OCC as a Joint Notice in the Federal 
Register on July 6, 2011.\5\
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    \4\ Codified at 12 U.S.C. 5414(c).
    \5\ 76 FR 39247 (July 6, 2011).
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    Although section 312(b)(2)(B)(i)(II) of the Dodd-Frank Act \6\ 
granted the OCC rulemaking authority relating to both State and Federal 
savings associations, nothing in the Dodd-Frank Act affected the FDIC's 
existing authority to issue regulations under the Federal Deposit 
Insurance Act (FDI Act) \7\ and other laws as the ``appropriate Federal 
banking agency'' or under similar statutory terminology. Section 312(c) 
of the Dodd-Frank Act \8\ revised the definition of ``appropriate 
Federal banking agency'' contained in section 3(q) of the FDI Act \9\ 
to add State savings associations to the list of entities for which the 
FDIC is designated as the ``appropriate Federal banking agency.'' As a 
result, when the FDIC acts as the designated ``appropriate Federal 
banking agency'' (or similar terminology) for State savings 
associations, as it does here, the FDIC is authorized to issue, modify, 
and rescind regulations involving such associations, as well as for 
State nonmember banks and insured State-licensed branches of foreign 
banks.
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    \6\ Codified at 12 U.S.C. 5412(b)(2)(B)(i)(II).
    \7\ 12 U.S.C. 1811 et seq.
    \8\ Codified at 12 U.S.C. 5412(c)(1).
    \9\ 12 U.S.C. 1813(q).
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    As noted, on July 14, 2011, operating pursuant to this authority, 
the FDIC's Board of Directors issued a list of regulations of the 
former OTS that the FDIC would enforce with respect to State savings 
associations. On that same date, the FDIC Board reissued and re-
designated certain transferring regulations of the former OTS. These 
transferred OTS regulations were published as new FDIC regulations in 
the Federal Register on August 5, 2011.\10\ When it republished the 
transferred OTS regulations as new FDIC regulations, the FDIC 
specifically noted that its staff would evaluate the transferred OTS 
regulations and might later recommend incorporating the transferred OTS 
regulations into other FDIC regulations, amending them, or rescinding 
them, as appropriate.\11\
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    \10\ 76 FR 47652 (Aug. 5, 2011).
    \11\ See 76 FR 47653.
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B. 12 CFR part 516--Application Processing Procedures

    A subset of the regulations transferred to the FDIC from the OTS 
concern application processing procedures. The OTS regulations, 
formerly found at 12 CFR part 516, 516.1 through 516.290, were 
transferred to the FDIC with only nomenclature changes and now comprise 
part 390, subpart F. Each provision of part 390, subpart F is discussed 
in Part III of this Supplementary Information section, below.

[[Page 65272]]

C. Part 390, Subpart F--Application Processing Procedures

    The FDIC has conducted a careful review and comparison of subpart F 
and other Federal regulations and statutes concerning Application 
Processing Procedures of State savings associations. As discussed in 
Part III of the Proposal section, the FDIC proposes to rescind subpart 
F because the FDIC considers the provisions contained in subpart F to 
be unnecessary in light of the applicability of other provisions of 
Federal statutes and regulations, specifically part 303.

D. Part 303, Filing Procedures

    The FDIC also proposes to make technical changes in certain 
sections of part 303, subparts A, K, and M. The proposed revisions 
would make those sections applicable on their terms to State savings 
associations.

III. The Proposal

    Section 316(b)(3) of the Dodd-Frank Act in pertinent part, provides 
that the regulations of the former OTS, as they apply to State savings 
associations, will be enforceable by the FDIC until they are modified, 
terminated, set aside, or superseded in accordance with applicable 
law.\12\ Consistent with the FDIC's stated intention to evaluate 
transferred OTS regulations before taking action on them, the FDIC 
conducted a careful review of subpart F and related Federal statutes, 
regulations, and statements of policy relevant to subordinate 
organizations of State savings associations. As discussed in this 
Proposal section, the FDIC proposes to rescind and remove subpart F in 
its entirety, because the provisions contained there are duplicative of 
substantially similar FDIC statutory or regulatory provisions, or 
guidance that produce substantially the same supervisory results.
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    \12\ 12 U.S.C. 5414(b)(3).
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    Part 303 of the FDIC Rules and Regulations (12 CFR 303) provides a 
framework for filing requirements for various applications, notices, 
and requests (collectively, ``filings'' as defined in Sec.  303.2(s)) 
(12 CFR 303.2(s)). Subpart A of part 303, Rules of General 
Applicability, prescribes the general procedures for submitting filings 
to the FDIC that are required by statute or regulation. This subpart 
also prescribes the procedures to be followed by the FDIC, applicants, 
and interested parties during the process of considering a filing, 
including public notices and comment when required. This subpart 
explains the availability of expedited processing for eligible 
depository institutions (defined in Sec.  303.2(r)) for matters subject 
to expedited processing. Specific filings are detailed in subpart B 
through subpart M of part 303.

IV. Section-by-Section Analysis--Rescission of Subpart F

    There are existing statutes and regulations that describe the 
application processing procedures of State savings associations, 
obviating the need for a new regulation, but requiring amendment of 
existing regulations upon rescission of subpart F. Accordingly, the 
FDIC proposes that Sec.  390.100 through Sec.  390.135, subpart F, be 
rescinded as unnecessary, redundant of, or otherwise duplicative of the 
provisions of law delineated in part 303, each discussed individually 
below.

A. Section 390.100--What does this subpart do?

    Section 390.100 states that subpart F explains the FDIC's 
procedures for processing applications, notices, or filings for State 
savings associations under parts 390 and 391, and identifies several 
requests or applications that were not intended to be covered by 
subpart F. In addition, the section states that, where an FDIC 
regulation provides some of the application processing procedures or 
timeframes, the FDIC will apply the regulations in subpart F to the 
extent necessary to process the application.
    Existing statutes and regulations that are applicable to insured 
State institutions, of which State savings associations are a subset, 
already ``prescribe the general procedures for submitting filings to 
the FDIC and the procedures to be followed by the FDIC, applicants and 
interested parties during the process of considering a filing.'' \13\ 
Moreover, subpart F only applies to filings under parts 391 and 390 of 
the FDIC regulations. Part 391 and several subparts of part 390 have 
been rescinded, and the FDIC is in the process of rescinding the 
remainder of part 390. Therefore, the FDIC considers Sec.  390.100 
unnecessary and proposes that it be rescinded.
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    \13\ 12 CFR 303.1.
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B. Section 390.101--Do the same procedures apply to all applications 
under this subpart?

    Section 390.101 specifies the criteria for determining which 
filings receive expedited treatment and which receive standard 
treatment. Part 303, Sec. Sec.  303.2(r) and 303.11(c), as well as the 
substantive subparts of part 303, when applicable, specify the criteria 
and conditions for expedited and standard processing, the removal of 
filings from expedited processing, and extension of time periods. Part 
303 does not address expedited and standard processing in precisely the 
same way as subpart F, but generally addresses substantially similar 
concepts as to the type of treatment afforded to a matter type and 
under what circumstances, and the procedures to be followed. Therefore, 
the FDIC considers Sec.  390.101 unnecessary and duplicative, and 
proposes that it be rescinded.

C. Section 390.102--How does the FDIC compute time periods under this 
subpart?

    Section 390.102 addresses computation of time periods for State 
savings associations. Computation of time under part 303 is contained 
in Sec.  303.4 and, though not worded in the same way, computes time 
periods in a substantially similar manner. Therefore, the FDIC 
considers Sec.  390.102 unnecessary and proposes that it be rescinded.

D. Section 390.103--Must I meet with the FDIC before I file my 
application?

    Section 390.103 addresses pre-filing meetings for filings to 
acquire control of State savings associations. Pre-filing meetings are 
not addressed in FDIC regulations, but are addressed, as appropriate, 
in the Applications Procedures Manual (APM) under Notice of Acquisition 
of Control (refer to pages 5.5-6 of the APM), which can be referenced 
at https://www.fdic.gov/regulations/applications/resources/apps-proc-manual/section-05-changeincontrol.pdf. As a result, the FDIC considers 
Sec.  390.103 unnecessary and proposes that it be rescinded.

E. Section 390.104--What information must I include in my draft 
business plan?

    Section 390.104 addresses business plan requirements. Part 303 does 
not require a specific format for a business plan submitted with 
applications; nor do the FDIC's regulations address specific business 
plan content requirements. Business plans, when required or requested, 
are generally addressed through pre-filing communications with the 
applicant. Information regarding business plan content is available in 
the interagency charter and federal deposit insurance application form, 
a valuable resource for determining business plan requirements, found 
at www.fdic.gov/formsdocuments/interagencycharter-insuranceapplication.pdf. The Handbook for Organizers--Applying for 
Deposit Insurance includes sections on

[[Page 65273]]

developing a business plan and business plan content, and can be 
referenced at www.fdic.gov/resources/supervision-and-examinations/bank-applications/depositinsurance/. As a result, the FDIC considers Sec.  
390.104 unnecessary and proposes that it be rescinded.

F. Section 390.105--What type of application must I file?

    Section 390.105 addresses the scope and form for expedited and 
standard processing, directs the applicant to sources for required 
information, including the substantive matter provisions of parts 390 
and 391, and permits requests to waive information requirements. The 
FDIC's part 303 operates in a similar manner in many respects. Section 
303.3 addresses the form for filings, generally, and is supplemented by 
the appropriate subparts of part 303 and specific filing requirements, 
as appropriate. The subparts are based on the type of filing, and 
address the form of filing. The part 303 regulations also provide for 
expedited and standard processing, as appropriate. The subparts specify 
whether a matter receives expedited processing.\14\
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    \14\ See e.g. 12 CFR 303.122 and 12 CFR 362.4(b)(5).
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    In addition, Sec.  390.105 addresses waiver requests for State 
savings associations. Under Sec.  303.12, The FDIC Board may waive the 
applicability of any regulation in Title 12, Chapter III, including 
part 303. In addition, various sections within part 303 applicable to 
savings associations also address waiver requests, including: 
Sec. Sec.  303.85(a)(2), 303.102(c)(1), and 303.102(c)(2).
    In light of part 303's treatment of the same substantive areas, the 
FDIC considers Sec.  390.105 unnecessary and proposes that it be 
rescinded.

G. Section 390.106--What information must I provide with my 
application?

    Section 390.106 addresses content of filings for State savings 
associations, and advises applicants that they may obtain relevant 
information from the appropriate FDIC region. The section also requires 
the applicant to conform to specific form conventions for the filing 
and specifies inclusion of all exhibits and other pertinent documents 
with the original and copies.
    As indicated earlier, unlike Sec.  390.106, the FDIC has several 
regulations that specify information a filing should contain. 
Additionally, rather than requiring that filings be submitted in a 
certain way, Sec.  303.3 of the FDIC's regulations provides that 
instructions for submitting filings may be obtained from any FDIC 
regional director.
    The FDIC considers the part 303 processes to provide the applicant 
with the appropriate requirements for a filing while permitting 
flexibility as to form. Accordingly, the FDIC considers Sec.  390.105 
unnecessary and proposes that it be rescinded.

H. Section 390.107--May I keep portions of my application confidential?

    Section 390.107 addresses application confidentiality for State 
savings associations and identifies certain information that will not 
be considered confidential. Section 303.8(b) identifies certain 
information that will generally be treated as confidential, and 
provides that the applicant may request that information be treated as 
confidential.\15\ The section provides that the FDIC may determine on 
its own initiative that information should be treated as confidential. 
Therefore, the FDIC considers Sec.  390.107 unnecessary and proposes 
that it be rescinded.
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    \15\ See also, generally, 12 CFR part 309.
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I. Section 390.108--Where do I file my application?

    Section 390.108 provides locations to use in filing applications, 
specifically providing regional office addresses. Section 303.3 directs 
applicants to transmit filings to the appropriate regional office 
unless specifically stated otherwise. Section 303.2 defines the 
appropriate office, while the specific addresses are maintained on the 
FDIC's public website.\16\ Therefore, the FDIC considers Sec.  390.108 
unnecessary and proposes that it be rescinded.
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    \16\ Part 303 does not require that certain filings be made or 
provided by the applicant to FDIC headquarters.
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J. Section 390.109--What is the filing date of my application?

    Section 390.109 explains the means to determine an application's 
filing date, the date from which time periods for action by the FDIC 
and applicant begin. Under Sec.  303.4, processing time periods are 
computed, unless otherwise provided, from the date on which ``a 
substantially complete filing is received by the FDIC or the day after 
publication begins.'' Because part 303 provides an appropriate and 
consistent method for determining the date on which the filing 
processing period begin, the FDIC considers Sec.  390.109 unnecessary 
and proposes that it be rescinded.

K. Section 390.110--How do I amend or supplement my application?

    Section 390.110 discusses amending or supplementing an application. 
It requires the filing of amendments or supplemental information at the 
appropriate FDIC regional office, along with the number of copies 
required by Sec.  390.108. It also requires that the amendment or 
supplemental information meet the requirements contained in Sec.  
390.106(b).
    The FDIC has no similar rule under part 303, but believes that the 
rule is unnecessary because, as noted in the APM, the FDIC's practice 
has been to allow supplemental filings to be submitted to the 
appropriate FDIC regional office. This approach allows appropriate 
flexibility based on the application. Accordingly, the FDIC proposes 
that Sec.  390.110 be rescinded.

L. Section 390.111--Who must publish a public notice of an application; 
Section 390.112--What information must I include in my public notice; 
Section 390.113--When must I publish the public notice; Section 
390.114--Where must I publish the public notice; Section 390.115--What 
language must I use in my publication?

    Sections 390.111 through 390.115 address public notice 
requirements, and apply when FDIC regulations require an applicant to 
follow the public notice procedures.\17\ Public notice requirements are 
encompassed in part 303 of the FDIC regulations, including in Sec.  
303.7 and throughout various subparts and sections of part 303 such as 
those for deposit insurance in Sec.  303.23, branches (domestic and 
foreign) in Sec. Sec.  303.44 and 303.184(c), mergers in Sec.  303.65, 
and change in bank control in Sec.  303.87. Section 303.7 lists the 
filings that require public notices.
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    \17\ 12 CFR 390.111.
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    Section 390.112 addresses the information that is required to be 
contained in public notices. A comparison of Sec. Sec.  390.112 and 
303.7(c) demonstrates that the two provisions are virtually identical. 
Section 390.113 requires that a public notice be published no earlier 
than seven days before and no later than the date of filing of the 
application. Unlike Sec.  390.113, Sec.  303.7(a) provides that public 
notices will be given pursuant to the appropriate subpart for the type 
of application involved. In addition, unlike Sec.  390.113, time 
intervals at which public notice must be given for an application vary 
with the specific subparts of part 303. The FDIC prefers the degree of 
specificity contained in the public notice provisions in part 303 over 
the general public notice requirement contained in Sec.  390.113.
    Both Sec.  390.114 of subpart F and part 303 require providing the 
public notice

[[Page 65274]]

in a newspaper of general circulation in the communities indicated in 
the particular rule. Section 390.115 requires that public notices be 
published in a newspaper printed in the English language and, upon FDIC 
determination, simultaneous publication in other languages. The FDIC 
does not have a similar procedural rule, however, the FDIC's practice 
is consistent with Sec.  390.115. The FDIC believes, however, that this 
subject is better addressed on a case-by-case basis between the 
applicant and the appropriate FDIC regional office.
    Based on the above analysis, the FDIC considers Sec. Sec.  390.11, 
390.112, 390.114 and 390.115 unnecessary and proposes that they be 
rescinded.

M. Section 390.116--Comment procedures; Section 390.117--Who may submit 
a written comment; Section 390.118--What information should a comment 
include; Section 390.119--Where are comments filed; Section 390.120--
How long is the comment period?

    Sections 390.116 through 390.120 address the procedures to submit 
public comments. Under part 303, public notice procedures are found at 
Sec.  303.9 and throughout various subparts and sections of part 303, 
specifically for deposit insurance in Sec.  303.23, branches (domestic 
and foreign) in Sec. Sec.  303.44 and 303.184(c), mergers in Sec.  
303.65, and for change in bank control in Sec.  303.87.
    Section 390.117 permits any person to submit a written comment 
supporting or opposing an application. Section 303.9(a) is 
substantially the same.
    Section 390.118(a) specifies the type of information that should be 
contained in a comment. Section 390.118(b) allows a commenter to 
include in its comment a request for a meeting under Sec.  390.122 and, 
as part of the request, requires a description of the nature of the 
issues or facts to be discussed and why written submissions are 
insufficient. The FDIC has no provision in part 303 similar to Sec.  
390.118; however, the FDIC believes the benefit, if any, is minimal and 
that the potential burden on commenters of such a detailed rule may 
outweigh any benefit. The FDIC is also concerned that such a rule may 
discourage the filing of comments.
    The regulations in subpart F and part 303 regarding where comments 
should be filed are virtually identical.
    Section 390.120 generally requires that comments be filed within 30 
calendar days after the publication of the initial public notice and 
provides the FDIC may consider late-filed comments if it determines 
that the comment will assist in the disposition of the application. The 
FDIC's part 303 regulations place deadlines for public comments in the 
relevant subpart for the particular type of filing at issue. Based on 
the type of filing involved, public comments are generally solicited 
for 15-30 days.\18\ The FDIC believes that the public comment period 
required by Sec.  390.120 is duplicative, in substance, of the 
regulations contained in part 303. In addition, the FDIC believes the 
comment periods provided in part 303 are preferable to the single 
comment period contained in Sec.  390.120 because they are better 
calibrated to the types of filings that are at issue.
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    \18\ See e.g. 12 CFR 303.23(a) (30 days following date of 
publication); 12 CFR 303.44(b) (within 15 days after the date of the 
last publication required by the section); and 12 CFR 303.65(d) (30 
days after the first publication of the notice).
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    Based on the above, the FDIC considers Sec. Sec.  390.116, 390.117, 
390.118, 390.119, and 390.120 to be unnecessary and proposes that they 
be rescinded.

N. Section 390.121--Meeting procedures; Section 390.122--When will the 
FDIC conduct a meeting on an application; Section 390.123--What 
procedures govern the conduct of the meeting; Section 390.124--Will 
FDIC approve or disapprove an application at a meeting; Section 
390.125--Will a meeting affect application processing time frames?

    Sections 390.121 through 390.125 contain meeting procedures for 
filings. Section 390.122, addresses the FDIC authority to call a 
meeting, limitation of the issues to be discussed, and notice of the 
meeting to the commentators and applicants. Section 390.123 allows the 
FDIC to conduct a meeting in any format and states the Administrative 
Procedure Act, the Federal Rules of Evidence, the Federal Rules of 
Civil Procedure and the FDIC's Rules of Practice and Procedure do not 
apply to meetings under the section. Section 390.124 indicates that the 
FDIC will not approve or deny an application at a meeting under 
Sec. Sec.  390.121 through 390.125. Section 390.125 provides that, if a 
meeting is held, the FDIC may suspend all time frames for determining 
that the application is substantially complete and the application 
approval time frames in Sec. Sec.  390.126 through 390.135. Time 
periods resume when the FDIC determines that a record has been 
developed that sufficiently supports a determination on the issues 
considered during the meeting.
    Meetings are addressed generally in FDIC regulations found at 
Sec. Sec.  303.6 and 303.10. The FDIC may examine or investigate and 
evaluate facts related to any filing to the extent necessary to reach 
an informed decision and take any action necessary or appropriate under 
the circumstances. Section 303.10(l) is less detailed than Sec.  
390.122 in certain respects; however, the FDIC prefers the level of 
flexibility it provides to the FDIC, applicants, and other interested 
parties. Section 303.10 distinguishes between hearings and informal 
proceedings. Generally, a hearing is a more formal proceeding and is 
usually only granted if the FDIC determines that written submissions 
would be insufficient or that a hearing otherwise would be in the 
public interest. An informal proceeding, under the rule, is a less 
formal proceeding, and Sec.  303.10(l) provides that it may take any 
form. Like Sec.  390.123(b), Sec.  303.10(h)(3) provides that the 
Administrative Procedure Act, the Federal Rules of Evidence, the 
Federal Rules of Civil Procedure and the FDIC's Rules of Practice and 
Procedure do not apply to hearings. Section 303.10(l) does not provide 
authority to approve or disapprove a filing at an informal proceeding 
(similar to Sec.  390.124).
    The FDIC has no similar rule in its part 303 regulations to Sec.  
390.125 and does not believe one is necessary because under part 303, 
unlike the former OTS regulations, processing time frames run from the 
date a substantially complete application is received, not from the 
date an application is filed. Because the processing time frames under 
the part 303 regulation run from the date that the FDIC determines the 
application is substantially complete, there is no need to stop and 
restart the processing time in connection with a meeting.
    Based on the analysis above, the FDIC considers Sec. Sec.  390.121, 
390.122, 390.123, 390.124, and 390.125 to be unnecessary and proposes 
that they be rescinded.

O. Section 390.126--If I file a notice under expedited treatment, when 
may I engage in the proposed activities?

    Section 390.126 addresses expedited treatment, including removal of 
the filing to standard processing, additional information requests, 
suspension of the processing period, and when the applicant can proceed 
with the activity if the FDIC has not acted. Expedited processing and 
related matters are encompassed in FDIC regulations found at Sec.  
303.11(c) and, as applicable, the substantive subparts of Sec.  303, 
such as Sec. Sec.  303.122 and 303.142. Sections 303.3 and 303.11(e), 
as well as substantive subparts of part 303, provide the FDIC authority 
to require submission of additional information. The FDIC considers 
Sec.  390.126 duplicative and

[[Page 65275]]

unnecessary, and proposes that it be rescinded.

P. Section 390.127--What will the FDIC do after I file my application 
and Section 390.128--If the FDIC requests additional information to 
complete my applications, how will it process my application?

    Sections 390.127 and 390.128 address application completeness, 
including a sequence of filing, FDIC response, requests for additional 
information, waiver and extension requests, and the consequences of 
various responses by the applicant and the FDIC. The procedures for 
processing a filing under part 303, while essentially addressing the 
same issues, are simpler and easier to navigate than those of Sec.  
390.127. That is due, in large part, to the use of the substantially 
complete filing procedure of part 303, which eliminates the necessity 
for the complex sequence of actions in subpart F. Sections 303.3 and 
303.11(e), as well as substantive subparts of part 303, provide the 
FDIC authority to require submission of additional information. The 
FDIC considers Sec. Sec.  390.127 and 390.128 unnecessary and proposes 
that they be rescinded.

Q. Section 390.129--Will the FDIC conduct an eligibility examination?

    Section 390.129 addresses eligibility examinations, as well as the 
authority of the FDIC to require such examinations and to request 
additional information. The FDIC does not believe that a specific 
eligibility examination provision is needed. Under Sec.  303.6, the 
FDIC may examine or investigate and evaluate facts related to any 
filing to the extent necessary to reach an informed decision and take 
any action necessary or appropriate under the circumstances. The FDIC 
utilizes field investigations when processing deposit insurance 
applications, and may conduct eligibility examinations when processing 
certain federal to state conversion applications that are filed 
pursuant to 12 U.S.C. 1464(i)(5). Sections 303.3 and 303.11(e), as well 
as substantive subparts of part 303, provide the FDIC authority to 
require submission of additional information. Therefore, the FDIC 
considers Sec.  390.129 unnecessary and proposes that it be rescinded.

R. Section 390.130--What may the FDIC require me to do after my 
application is deemed complete?

    Section 390.130(a) addresses FDIC requests for additional 
information from State savings associations in order to resolve or 
clarify issues presented by the filing. Section 390.130(b) provides 
that if the FDIC determines that a major issue of law or a change in 
circumstances arose after the application was filed, and the issue or 
change in circumstances substantially affects the application, the FDIC 
may notify the applicant that the application is deemed incomplete, and 
require the applicant to submit additional information under the 
procedures contained in Sec.  390.128. The FDIC also may, to the extent 
necessary, require the applicant to publish a new notice under Sec.  
390.131.
    The FDIC's part 303 regulations authorize the FDIC to request 
additional information from an applicant until the time it makes a 
decision on an application, and delays the beginning of the processing 
period until receipt of a substantially complete filing, and the FDIC 
has not found it necessary to incorporate the Sec.  390.130 concept 
into a regulation. The FDIC believes that the possibility of a major 
change in law or circumstances following the acceptance of a filing as 
substantially complete does not warrant coverage by a special 
regulation and that those issues may be addressed under part 303 in its 
current form.
    The FDIC considers Sec.  390.130 unnecessary and proposes that it 
be rescinded.

S. Section 390.131--Will the FDIC require me to publish a new public 
notice?

    Section 390.131 sets forth the circumstances under which the FDIC 
may require a State savings association applicant subject to the 
publication requirements to publish new public notices. Section 
303.7(f) states the FDIC may determine on a case-by-case basis that 
unusual circumstances surrounding a particular filing warrant 
modification of the publication requirements. Accordingly, the FDIC 
considers Sec.  390.131 unnecessary and proposes that it be rescinded.

T. Section 390.132--May the FDIC suspend processing of my application?

    Section 390.132 authorizes the FDIC to suspend an application by a 
State savings association for the reasons stated therein. Part 303 has 
no similar provision. However, the FDIC believes that situations 
envisioned by Sec.  390.132 can either be effectively addressed on a 
case-by-case basis without need of a regulation, or that a regulation 
is not needed because the processing period under part 303 does not 
begin until the FDIC receives a substantially complete filing and, 
thus, no suspension is necessary. Accordingly, the FDIC considers Sec.  
390.132 unnecessary and proposes that it be rescinded.

U. Section 390.133--How long is the FDIC review period

    Under Sec.  390.33(a), the applicable FDIC review period is 60 days 
after the date the application is deemed complete. Section 390.133(b) 
provides that, if an applicant submits more than one application in 
connection with a proposed action, or if two or more applicants submit 
related applications, the review period for all applications would be 
the time frame for the application with the longest review period. 
Section 390.133(c) addresses extensions of the review period. Section 
390.133(c)(1) allows the FDIC to extend the review period for up to 30 
calendar days for any reason. To do so, the FDIC must notify the 
applicant in writing of the extension before the end of the applicable 
review period. Also, under Sec.  390.133(c)(2), the FDIC can extend the 
review period of any application if the application presents a 
significant issue of law or policy that requires additional time to 
resolve and must notify the applicant in writing. The FDIC must issue 
its written extension before the review period expires, including any 
extension granted under paragraph (c)(1) of the section.
    The FDIC's part 303 regulations contain provisions that bear on the 
same issues and are similar in substantive effect as the Sec.  390.133 
provisions. The processing time period for notices and applications, 
which varies by type of filing, may be extended for most matters under 
part 303 processing. Section 303.11(d) states that, when the FDIC is 
considering related transactions, one or more of which have expedited 
processing, the longest processing time will govern all related 
transactions. The FDIC prefers the review time frames specified in the 
appropriate subparts of part 303 for each particular filing, rather 
than a single time frame for all filings, given the varying 
significance and complexity of the various types of filings. Therefore, 
the FDIC considers Sec.  390.133 unnecessary and proposes that it be 
rescinded.

V. Section 390.134--How will I know if my application has been 
approved?

    Section 390.134 requires the FDIC to approve or deny an application 
before the expiration of the applicable review period, including any 
extensions, and notify the applicant, in writing, of its decision. If 
the FDIC does not act under paragraph (a)(1) of the section, the 
application is approved. However, for this section to be applicable, 
the FDIC

[[Page 65276]]

must fail to extend the review period as allowed under Sec.  
390.133(c).
    In comparison to Sec.  390.134, Sec.  303.11 provides that the FDIC 
may approve, conditionally approve, deny, or not object to a filing 
after appropriate review and consideration of the record. The FDIC will 
promptly notify the applicant and any person who makes a written 
request of the final disposition of a filing. If the FDIC denies a 
filing, the FDIC will immediately notify the applicant in writing of 
the reasons for the denial. Contrary to Sec.  390.134, Sec.  303.11 
does not include an automatic approval for an application if the FDIC 
fails to approve or deny it. However, the substantial ability of the 
FDIC to extend the processing period under subpart F, to a great 
extent, renders any difference with part 303 immaterial. In addition, 
the FDIC does not consider ``automatic'' or ``default'' approvals 
(other than as already specified in the part 303 regulations) to be an 
appropriate method for making decisions on applications.
    Based on the analysis above, the FDIC considers Sec.  390.134 
unnecessary and proposes that it be rescinded.

W. Section 390.135--What will happen if the FDIC does not approve or 
disapprove my application within two calendar years after the filing 
date?

    Section 390.135 addresses withdrawal if an application is not 
approved or denied within two calendar years. The FDIC will notify the 
applicant in writing that the application is withdrawn under those 
circumstances, unless the FDIC determines that the applicant is 
actively pursuing a final FDIC determination.
    FDIC regulations do not address withdrawal if an application is not 
acted on within two calendar years.\19\ The Applications Overview 
section of the APM (refer to pages 1.1-3), referenced at https://www.fdic.gov/regulations/applications/resources/apps-proc-manual/section-01-01-overview.pdf, states that the FDIC's goal is to act on 
filings as promptly as practical, while allowing appropriate time for 
review and evaluation. It is also, generally, the FDIC's practice to 
provide an applicant with an opportunity to withdraw its application if 
FDIC staff propose an unfavorable recommendation. For all filings, 
whether for banks or savings associations, the FDIC has established 
timeframes for processing applications that are consistent with 
statutes, regulations, or internal business rules for expedited and 
standard processing. These timeframes have been issued publicly through 
Financial Institution Letter 81-2018, posted to the FDIC's public 
website and incorporated into the APM under the Applications Overview 
(refer to pages 1.1-3), which is referenced at https://www.fdic.gov/regulations/applications/resources/apps-proc-manual/section-01-01-overview.pdf.
---------------------------------------------------------------------------

    \19\ Section 343(a) of the Riegle Community Development and 
Regulatory Improvement Act of 1994 (Riegle Act) requires the federal 
banking agencies to take final action on applications before the end 
of the one-year period beginning the day after a substantially 
complete filing is received. Section 343(b) of the Riegle Act 
provides that the applicant may grant a waiver of this one-year 
limitation. Since the Riegle Act is not prescribed in FDIC 
Regulations, it is not material for purposes of part 390, subpart F.
---------------------------------------------------------------------------

    The FDIC considers Sec.  390.135 to be unnecessary and proposes 
that it be rescinded.

V. Revision of Certain Sections of Part 303

A. Section 303.7--Public notice requirements

    Section 5 of the FDI Act,\20\ generally and in part, provides that 
any depository institution engaged in the business of receiving 
deposits other than trust funds, upon application to and examination by 
the FDIC and approval by its Board of Directors, may become an insured 
depository institution. The term ``depository institution'' means any 
bank or savings association pursuant to section 3(c)(1) of the FDI 
Act.\21\ Subpart B--Deposit insurance, of part 303 of the FDIC 
regulations, sets forth the procedures for applying for deposit 
insurance by certain applicants, including for a proposed depository 
institution under section 5 of the FDI Act, and applies to savings 
associations.\22\ Section 303.23(a) of subpart B states that, in 
addition to other requirements, the applicant ``shall publish a notice 
as prescribed in Sec.  303.7 in a newspaper of general circulation in 
the community in which the main office of the depository institution is 
or will be located.''
---------------------------------------------------------------------------

    \20\ 12 U.S.C. 1815.
    \21\ 12 U.S.C. 1813(c)(1).
    \22\ 12 CFR 303.20.
---------------------------------------------------------------------------

    Subpart F of part 390 of the FDIC regulations addresses public 
notice requirements, stating that Sec. Sec.  390.111 through 390.115 
apply whenever a FDIC regulation requires an applicant to follow the 
public notice procedures.\23\ The FDIC proposes to rescind Sec. Sec.  
390.111 through 390.115 because part 303 substantively addresses the 
same requirements, including, for deposit insurance applications, 
Sec. Sec.  303.7, subpart A, and 303.23, subpart B.
---------------------------------------------------------------------------

    \23\ 12 CFR 390.111.
---------------------------------------------------------------------------

    Section 303.7 of the FDIC regulations, a part of subpart A--Rules 
of General Applicability, addresses public notice requirements for 
filings with respect to mergers, changes in control, and requests for 
deposit insurance. With one exception, Sec.  303.7 makes no distinction 
between banks and savings associations. However, Sec.  303.7(c)(1)(i) 
states, in part: ``[i]n the case of an application for deposit 
insurance for a de novo bank (emphasis added), include the names of all 
organizers or incorporators.'' In order to clarify that the provision 
is applicable to savings associations, consistent with section 5 of the 
FDI Act and part 303, including subpart B--Deposit Insurance, and to 
make the requirement consistent for both types of depository 
institutions, the FDIC proposes to revise the provision to replace 
``bank'' with ``depository institution,'' a term used elsewhere in the 
section.

B. Section 303.15--Certain limited liability companies deemed 
incorporated under State law

    Pursuant to section 5 of the FDI Act, the FDIC may approve deposit 
insurance for certain depository institutions. One of the statutory 
requirements for a State bank to be eligible for Federal deposit 
insurance is that it must be ``incorporated under the laws of any 
State.'' \24\ That requirement effectively limited the approval of 
deposit insurance to State banks chartered under the traditional 
corporate form, despite the creation and increased use of limited 
liability entities other than corporations, such as limited liability 
companies (LLCs). Section 303.15(a) of the FDIC regulations was 
promulgated to provide that a bank chartered as an LLC under State law 
would be deemed ``incorporated'' if it met four requirements, thus 
permitting the entity to be eligible to apply and be approved for 
deposit insurance.\25\ To be deemed incorporated, the LLC must 
possesses the four traditional corporate characteristics of perpetual 
succession, centralized management, limited liability, and free 
transferability of interests.\26\
---------------------------------------------------------------------------

    \24\ 12 U.S.C. 1813(a)(2).
    \25\ See 68 FR 7308, February 13, 2003.
    \26\ 12 CFR 303.15(a)(1) through (4). See also, 68 FR 7308.
---------------------------------------------------------------------------

    Section 303.15(b) further provides that, for purposes of the FDI 
Act and the FDIC regulations, the terms ``stockholder,'' 
``shareholder,'' ``director,'' ``officer,'' ``voting stock,'' ``voting 
shares,'' and ``voting securities,'' for banks chartered as LLCs, shall 
encompass or have substantially the same meaning as those terms have 
for banks chartered as corporations. The definition of State savings 
association

[[Page 65277]]

under the FDI Act, which uses the phrase ``organized and operating 
according to the laws of the State'' instead of ``incorporated,'' does 
not limit State savings associations to the corporate charter form 
(absent a state requirement).\27\ However, in order to clarify that the 
terms in Sec.  303.15(b) apply to savings association chartered as LLCs 
as they do for banks so chartered, the FDIC proposes to revise 
references to ``bank'' in Sec.  303.15(b) to ``depository 
institution.'' The impact of the revisions would be to make the terms 
``stockholder,'' ``shareholder,'' ``director,'' ``officer,'' ``voting 
stock,'' ``voting shares,'' and ``voting securities,'' with respect to 
savings associations chartered as LLCs, encompass or have substantially 
the same meaning with respect to savings associations chartered as LLCs 
as for those chartered as corporations.
---------------------------------------------------------------------------

    \27\ 12 U.S.C. 1813(b)(3).
---------------------------------------------------------------------------

C. Subpart K--Prompt Corrective Action: Section 303.204--Applications 
for acquisitions, branching, and new lines of business; Section 
303.205--Applications for bonuses and increased compensation for senior 
executive officers

    Part 303 of the FDIC's regulations includes procedures to implement 
the filing requirements for certain activities or transactions relative 
to undercapitalized or weaker depository institutions, and implements 
certain elements of section 38 of the FDI Act.\28\ Section 38 applies 
to all insured depository institutions. Among other things, section 38 
generally prohibits an insured depository institution, without 
application and approval, from engaging in acquisitions, branching, or 
new lines of business, if the institution is undercapitalized or 
weaker, significantly undercapitalized, or critically 
undercapitalized.\29\ It also prohibits an insured depository 
institution, without application and approval, from payment of bonuses 
or increased compensation to senior executive officers, if the 
institution is significantly or critically undercapitalized, or is 
undercapitalized and has failed to submit or implement an acceptable 
capital restoration plan.\30\
---------------------------------------------------------------------------

    \28\ 12 U.S.C. 1831o.
    \29\ See 12 U.S.C. 1831o(e)(4).
    \30\ See 12 U.S.C. 1831o(f)(4). 12 U.S.C. 1831o(f) contains 
additional, discretionary restrictions that may be imposed by a 
financial regulator.
---------------------------------------------------------------------------

    Sections 303.204 and 303.205 of the FDIC regulations implement the 
above provisions of section 38. Section 303.204 requires any insured 
State nonmember bank and any insured branch of a foreign bank that is 
undercapitalized or significantly undercapitalized, and any critically 
undercapitalized insured depository institution, to submit an 
application to engage in acquisitions, branching, or new lines of 
business. This section clarifies that new lines of business include 
``any new activity exercised which, although it may be permissible, has 
not been exercised by the institution.'' It also specifies the content 
of the filing, including information regarding whether the 
institution's primary federal regulator has accepted the institution's 
capital restoration plan, and whether the institution has implemented 
that plan.
    Section 303.205 requires any insured State nonmember bank or 
insured branch of a foreign bank that is (i) significantly 
undercapitalized or critically undercapitalized, or (ii) is 
undercapitalized and has failed to submit or implement an acceptable 
capital restoration plan, to submit an application to pay a bonus or 
increase compensation to any senior executive officer. The section 
specifies the content of the filing, including information regarding 
the acceptance and implementation of the institution's capital 
restoration plan.
    Although section 38 and other sections of subpart K of part 303 by 
their terms apply to all insured depository institutions, Sec.  
303.204, in part, and Sec.  303.205 apply by their terms only to 
insured State nonmember banks and insured branches of foreign banks. 
The FDIC proposes to revise Sec. Sec.  303.204 and 303.205 to make 
those sections expressly apply to State savings associations to the 
same extent as they do to insured State nonmember banks. Those sections 
would be revised to add ``insured State savings associations.''

D. Section 303.249--Management official interlocks

    Part 348 \31\ of the FDIC regulations implements the Deposit 
Insurance Management Interlocks Act (Interlocks Act).\32\ The purpose 
of the Interlocks Act and part 348 are to foster competition by 
generally prohibiting a management official from serving two 
nonaffiliated depository organizations when the management interlock 
likely would have an anti-competitive effect.\33\ The Interlocks Act is 
applicable to both insured State nonmember banks and State savings 
associations, and part 348 applies to management officials of FDIC-
supervised institutions and their affiliates. With regard to insured 
State nonmember banks and State savings associations, the Interlocks 
Act provides the FDIC with administrative and enforcement authority 
under section 3206, as well as authority to prescribe regulations to 
carry out the Interlocks Act.\34\
---------------------------------------------------------------------------

    \31\ 12 CFR 349.
    \32\ 12 U.S.C. 3201-3208.
    \33\ 12 CFR 349.1(b).
    \34\ 12 U.S.C. 3206, 3207.
---------------------------------------------------------------------------

    Under section 13(k) of the FDI Act, and notwithstanding any 
provision of State law, the FDIC may authorize dual service that would 
otherwise be prohibited by the Interlocks Act upon determining that 
severe financial conditions threaten the stability of a significant 
number of savings associations, or of savings associations possessing 
significant financial resources, and that such authorization would 
lessen the risk to the FDIC.\35\ Subpart F of part 390 does not apply 
to a transaction under section 13(k) of the FDI Act.\36\
---------------------------------------------------------------------------

    \35\ 12 U.S.C. 1823(k)(1)(A)(v).
    \36\ 12 CFR 390.100(b)(1).
---------------------------------------------------------------------------

    As discussed above, the FDIC transferred various OTS regulations 
into FDIC regulations. One of the transferred OTS regulations governed 
OTS oversight of management official interlocks in the context of State 
savings associations. The OTS regulation, formerly found at 12 CFR part 
563f, was transferred to the FDIC with only minor, nonsubstantive 
changes, and was found in the FDIC's regulations at 12 CFR part 390, 
subpart V (part 390, subpart V), entitled ``Management Official 
Interlocks.'' Before the transfer of the OTS regulations and continuing 
today as noted above, the FDIC's regulations contained part 348. After 
review and comparison of part 390, subpart V, and part 348, effective 
January 20, 2016, the FDIC rescinded part 390, subpart V, because the 
FDIC found it to be substantially redundant to existing part 348, 
considering technical conforming edits to part 348.\37\
---------------------------------------------------------------------------

    \37\ 80 FR 79252 (Dec. 21, 2015).
---------------------------------------------------------------------------

    However, Sec.  303.249 of the FDIC regulations addresses the 
``procedures to be followed by an insured State nonmember bank 
(emphasis added) to seek the approval of the FDIC to establish an 
interlock pursuant to'' the Interlocks Act, section 13(k) of the FDI 
Act, and part 348 of the FDIC regulations.\38\ The FDIC proposes to 
revise Sec.  303.249(a) to insert, following ``bank'' in the language 
quoted immediately above, ``or an insured State savings association.'' 
The revision would clarify that State savings associations may use the 
procedures contained in Sec.  303.249 to apply for

[[Page 65278]]

approval to establish interlocks as provided therein.
---------------------------------------------------------------------------

    \38\ 12 CFR 303.249(a).
---------------------------------------------------------------------------

VI. Expected Effects

    As of March 31, 2020, the FDIC supervised 3,309 depository 
institutions, of which 35 (1.1 percent) were State savings 
associations.\39\ The proposed rule would primarily affect regulations 
that govern State savings associations. As previously discussed, the 
proposed rule would, if adopted, rescind part 390, subpart F, because 
most of its elements are duplicative of substantively similar 
provisions of FDIC regulations, principally part 303. Additionally, the 
proposed rule would amend certain elements of part 303 so that the 
provisions are applicable to State savings associations. In doing so, 
the proposed rule would make elements of part 390, subpart F, 
substantively duplicative of the amended elements of part 303, and, 
therefore, unnecessary. As such, the FDIC does not believe the proposed 
rule will have substantive effects on State savings associations.
---------------------------------------------------------------------------

    \39\ Call Report data, March 2020.
---------------------------------------------------------------------------

    Section 390.100 sets forth application processing procedures for 
State savings associations. However, existing statutes \40\ and 
regulations already ``prescribe the general procedures for submitting 
filings to the FDIC and the procedures to be followed by the FDIC, 
applicants and interested parties during the process of considering a 
filing'' \41\ for FDIC-supervised institutions, including State savings 
associations. Therefore, rescinding Sec.  390.100 is not expected to 
have any substantive effects on State savings associations.
---------------------------------------------------------------------------

    \40\ 12 U.S.C. 1831a.
    \41\ 12 CFR 303.1.
---------------------------------------------------------------------------

    Section 390.101 specifies the criteria for determining which 
filings receive expedited treatment and which receive standard 
treatment. State savings associations are already subject to 
substantively similar requirements in Sec. Sec.  303.2(r) and 
303.11(c), as well as the substantive subparts of part 303 of the FDIC 
regulations. Therefore, rescinding Sec.  390.101 is not expected to 
have any substantive effects on State savings associations.
    Section 390.102 addresses the computation of time periods for State 
savings associations. State savings associations are subject to 
regulations that address the computation of relevant time periods at 
Sec.  303.4 of the FDIC regulations. Therefore, rescinding Sec.  
390.101 is not expected to have any substantive effects on State 
savings associations.
    Section 390.103 addresses pre-filing meetings and FDIC contacts for 
filings to acquire control of State savings associations. Pre-filing 
meetings are not addressed in FDIC regulations, but are addressed in 
the Applications Procedures Manual (APM), in which a substantively 
similar description of pre-filing meetings is given. Additionally, the 
APM states that a Case Manager will be assigned by the FDIC to the 
application in order to facilitate communication and engagement with 
the applicant. Therefore, the FDIC believes that rescinding Sec.  
390.103 is unlikely to have any substantive effects on State savings 
associations or change in control applicants.
    Section 390.104 addresses certain requirements for business plans 
submitted by State savings associations under subpart F, which permits 
the FDIC to require additional business plan information during 
processing of the filing. Under part 303, business plans are required 
for certain filings, though the FDIC may request additional information 
for any filing. In this regard, the FDIC's review processes include, as 
appropriate, pre-filing and other activities to ensure institutions' 
understanding of the FDIC's filing requirements and information needs. 
In certain cases, the content for business plans is addressed in filing 
forms or other FDIC resources. For example, the Inter-agency Charter 
and Deposit Insurance Application Form contains detailed instructions 
for the development of the business plan; and those instructions may 
assist institutions when submitting business plans as part of other 
filings. The FDIC has also provided a Handbook for Organizers--Applying 
for Deposit Insurance, which aids all applicants for deposit insurance 
and includes sections on developing a business plan and business plan 
content. Generally, the FDIC believes it is appropriate to provide an 
institution with flexibility to tailor the content of the business plan 
to reflect its unique circumstances, strategies, and challenges. 
Therefore, in light of the discussion above, the FDIC believes that 
rescinding Sec.  390.104 is unlikely to have any substantive effects on 
State savings associations or change in control applicants.
    Section 390.105 addresses expedited and standard processing, as 
well as waiver requests for State savings associations. Expedited and 
standard processing, as well as waiver requirements, are encompassed in 
FDIC regulations applicable to State savings associations found 
throughout various subparts and sections of part 303. Therefore, the 
FDIC believes that rescinding Sec.  390.105 is unlikely to have any 
substantive effects on State savings associations or future applicants.
    Section 390.106 addresses the content of filings for State savings 
associations. It directs State savings associations to the applicable 
forms and the content requirements. The required content of filings is 
encompassed in FDIC regulations applicable to State savings 
associations throughout various subparts and sections of part 303. 
Therefore, the FDIC believes that rescinding Sec.  390.106 is unlikely 
to have any substantive effects on State savings associations or future 
applicants.
    Section 390.107 addresses application confidentiality for State 
savings associations. FDIC regulations found at Sec.  303.8 of the FDIC 
regulations and applicable to FDIC-supervised institutions, including 
State savings associations, includes confidential treatment regulations 
that are substantively similar to those in Sec.  390.107. Therefore, 
the FDIC believes that rescinding Sec.  390.107 is unlikely to have any 
substantive effects on State savings associations or future applicants.
    Section 390.108 addresses where to file applications, specifically 
providing regional office addresses. General application filing 
procedures for all FDIC-supervised institutions, including State 
savings associations, are encompassed in regulations found at Sec.  
303.3 of the FDIC regulations. Further, although specific regional 
office addresses are not included in the regulation, they are available 
on the FDIC's public website. Therefore, the FDIC believes that 
rescinding Sec.  390.108 is unlikely to have any substantive effects on 
State savings associations or future applicants.
    Section 390.109 explains the application filing date. The FDIC does 
not have substantively similar regulations governing the filing date of 
an application. However, FDIC regulations operate on the basis of the 
date on which a substantially complete filing is submitted. Further, 
the FDIC's APM, which is accessible to all FDIC-supervised 
institutions, including State savings associations, addresses the date 
on which an application is considered to be substantively complete. 
Therefore, the FDIC believes that rescinding Sec.  390.109 is unlikely 
to have any substantive effects on State savings associations or future 
applicants.
    Section 390.110 discusses amending or supplementing an application. 
The FDIC does not have substantively similar regulations governing 
amending or supplementing an application. However, the FDIC relies on 
determinations as to when an

[[Page 65279]]

application is substantially complete. In addition, the FDIC's APM, 
which is applicable to all FDIC-supervised institutions, including 
State savings associations, addresses both substantially complete 
filings and those not substantially complete, as well as how to 
supplement information. Further, the APM states that an applicant may 
modify and update an application throughout the review process until 
final disposition, and that applicants often supplement their 
applications throughout the review process. Therefore, the FDIC 
believes that rescinding Sec.  390.110 is unlikely to have any 
substantive effects on State savings associations or future applicants.
    Sections 390.111 through 390.115 address public notice 
requirements. FDIC-supervised institutions, including State savings 
associations, are subject to substantively similar public notice 
requirements in Sec.  303.7 of the FDIC regulations and throughout 
various subparts and sections of part 303. Therefore, the FDIC believes 
that rescinding Sec. Sec.  390.111 through 390.115 is unlikely to have 
any substantive effects on State savings associations or future 
applicants.
    Sections 390.116 through 390.120 address procedures for submission 
of public comments. FDIC-supervised institutions, including State 
savings associations, are subject to substantively similar requirements 
regarding procedures for submission of public comments in Sec.  303.9 
of the FDIC regulations and throughout various subparts and sections of 
part 303. Therefore, the FDIC believes that rescinding Sec. Sec.  
390.116 through 390.120 is unlikely to have any substantive effects on 
State savings associations or future applicants.
    Sections 390.121 through 390.125 contain meeting procedures. 
Meetings are addressed generally in FDIC regulations found at 12 CFR 
303.6 and 12 CFR 303.10 for FDIC-supervised institutions, including 
State savings associations. Although Sec. Sec.  303.6 and 303.10 of the 
FDIC regulations are generally less specific than Sec. Sec.  390.121 
through 390.125, the FDIC believes the language in Sec.  303.6 is 
generally inclusive of the substance of Sec. Sec.  390.121 through 
390.125, by stating that ``[t]he FDIC may examine or investigate and 
evaluate facts related to any filing under this chapter to the extent 
necessary to reach an informed decision and take any action necessary 
or appropriate under the circumstances.'' Therefore, the FDIC believes 
that rescinding Sec. Sec.  390.121 through 390.125 is unlikely to have 
any substantive effects on State savings associations or future 
applicants.
    Section 390.126 addresses expedited treatment, including removal of 
the filing to standard processing, additional information requests, 
suspension of the processing period, and when the applicant can proceed 
with the activity if the FDIC has not acted. FDIC-supervised 
institutions, including State savings associations, are subject to 
substantively similar requirements regarding expedited treatment in 
Sec.  303.11(c) of the FDIC regulations, as well as Sec. Sec.  303.122 
and 303.142. Sections 303.3 and 303.11(e), as well as substantive 
subparts of part 303, provide the FDIC authority to require submission 
of additional information. Therefore, the FDIC believes that rescinding 
Sec.  390.126 is unlikely to have any substantive effects on State 
savings associations or future applicants.
    Sections 390.127 and 390.128 addresses application completeness. 
The FDIC does not have corresponding regulations addressing application 
completeness. Instead, the application processing time periods under 
part 303 are triggered by the FDIC's receipt of a substantially 
complete filing.\42\ The FDIC believes that the substantially complete 
filing step of part 303 enables the procedures for processing a filing 
under part 303, while essentially addressing the same issues, to be 
simpler and easier to navigate than those of Sec. Sec.  390.127 and 
390.128. Sections 303.3 and 303.11(e) of the FDIC regulations, as well 
as substantive subparts of part 303, provide the FDIC authority to 
require submission of additional information. The FDIC's APM, which 
aids all FDIC-supervised institutions, including State savings 
associations, addresses both substantially complete filings and those 
not substantially complete. Therefore, the FDIC believes that 
rescinding Sec. Sec.  390.127 and 390.128 is unlikely to have any 
substantive effects on State savings associations or future applicants.
---------------------------------------------------------------------------

    \42\ 12 CFR 303.304.
---------------------------------------------------------------------------

    Section 390.129 addresses eligibility examinations, as well as the 
authority of the FDIC to require such examinations and to request 
additional information. Under Sec.  303.6 of the FDIC regulations, the 
FDIC may examine or investigate and evaluate facts related to any 
filing to the extent necessary to reach an informed decision and take 
any action necessary or appropriate under the circumstances. Sections 
303.3 and 303.11(e), as well as substantive subparts of part 303, 
provide the FDIC authority to require submission of additional 
information. Therefore, the FDIC believes that a separate eligibility 
determination provision is unneeded, and rescinding Sec.  390.129 is 
unlikely to have any substantive effects on State savings associations 
or future applicants.
    Section 390.130 addresses potential FDIC requests for additional 
information or actions from applicants. FDIC-supervised institutions, 
including State savings associations, are subject to substantively 
similar requirements regarding potential FDIC requests for additional 
information or actions from applicants through various subparts and 
sections of part 303. Therefore, the FDIC believes that rescinding 
Sec.  390.130 is unlikely to have any substantive effects on State 
savings associations or future applicants.
    Section 390.131 explains requirements to publish new public 
notices. FDIC-supervised institutions, including State savings 
associations, are subject to substantively similar requirements 
regarding publishing new public notices in Sec.  303.7(f) of the FDIC 
regulations. Therefore, the FDIC believes that rescinding Sec.  390.131 
is unlikely to have any substantive effects on State savings 
associations or future applicants.
    Section 390.132 addresses suspension of an application. Part 303 
has no such provision. However, the FDIC believes that situations 
envisioned by Sec.  390.132 can either be effectively addressed on a 
case-by-case basis without need of a regulation, or that a regulation 
is not needed because the processing period under part 303 does not 
begin until the FDIC receives a substantially complete filing and, 
thus, no suspension is necessary. Therefore, the FDIC believes that 
rescinding Sec.  390.132 is unlikely to have any substantive effects on 
State savings associations or future applicants.
    Section 390.133 addresses the applicable review period for an 
application. The FDIC's part 303 regulations contain provisions that 
bear on the same issues and are similar in substantive effect as the 
Sec.  390.133 provisions. Thus, while part 303 addresses review periods 
in a different manner than subpart F, the FDIC believes that the 
substantive effect is similar and that rescinding Sec.  390.133 is 
unlikely to have any substantive effects on State savings associations 
or future applicants.
    Section 390.134 requires the FDIC to approve or deny an application 
before the expiration of the applicable review period, including any 
extensions, and notify the applicant, in writing, of its decision. If 
the FDIC does not act under

[[Page 65280]]

paragraph (a)(1) of the section, the application is deemed approved. 
The FDIC's part 303 procedures do not contain such a requirement for 
applications (as opposed to some notice filings). However, when read in 
conjunction with Sec.  390.133, the FDIC has significant, though not 
complete, discretion under subpart F to extend the review period or 
applications until a determination is issued. The substantial ability 
of the FDIC to extend the processing period under subpart F, to a great 
extent, renders any difference with part 303 immaterial. As such, the 
application review periods and notification procedures for State 
savings associations are subject to substantively similar requirements 
under both subpart F and part 303. Therefore, the FDIC believes that 
rescinding Sec.  390.134 is unlikely to have any substantive effects on 
State savings associations or future applicants.
    Section 390.135 addresses withdrawal if an application is not acted 
on within two calendar years. The FDIC does not have substantively 
similar regulations addressing withdrawal if an application is not 
acted on. However, the FDIC's APM, which aids all FDIC-supervised 
institutions, including State savings associations, states that the 
FDIC's goal is to act on filings as promptly as practical, while 
allowing appropriate time for review and evaluation. Additionally, the 
FDIC has established timeframes for processing each type of filing, 
which have been published in Financial Institution Letter 81-2018.\43\ 
It is also, generally, the FDIC's practice to provide an applicant with 
an opportunity to withdraw its application if FDIC staff propose an 
unfavorable recommendation. Therefore, the FDIC believes that 
rescinding Sec.  390.135 is unlikely to have any substantive effects on 
State savings associations or future applicants.
---------------------------------------------------------------------------

    \43\ www.fdic.gov/news/financial-institution-letters/2018/fil18081.html.
---------------------------------------------------------------------------

    The proposed rule would amend certain elements of part 303, 
specifically Sec. Sec.  303.7(c)(1)(i) and 303.15(b)(1)-(4), so that 
the provisions are applicable to State savings associations. In so 
doing, the proposed rule would make elements of part 390, subpart F, 
substantively duplicative of the amended elements of part 303, and, 
therefore, unnecessary.
    The proposed rule would amend Sec. Sec.  303.204 and 303.205 of 
part 303's subpart K (Prompt Corrective Action). Section 303.204 
requires any insured State nonmember bank and any insured branch of a 
foreign bank that is undercapitalized or significantly 
undercapitalized, and any critically undercapitalized insured 
depository institution, to submit an application to engage in 
acquisitions, branching, or new lines of business. Section 303.205 
requires any insured State nonmember bank or insured branch of a 
foreign bank that is (i) significantly undercapitalized or critically 
undercapitalized, or (ii) is undercapitalized and has failed to submit 
or implement an acceptable capital restoration plan, to submit an 
application to pay a bonus or increase compensation to any senior 
executive officer. The proposed rule would make these sections 
applicable to State savings associations. The provisions of section 38 
of the FDI Act,\44\ which establishes the statutory authority for 
Sec. Sec.  303.204 and 303.205, contain the restrictions at issue and 
are applicable to all insured depository institutions. Thus, the 
proposed rule should not have a material impact on State savings 
associations.
---------------------------------------------------------------------------

    \44\ 12 U.S.C. 1831o.
---------------------------------------------------------------------------

    Section 303.249 of the FDIC regulations addresses the ``procedures 
to be followed by an insured State nonmember bank to seek the approval 
of the FDIC to establish an interlock pursuant to'' the Interlocks Act, 
section 13(k) of the FDI Act, and part 348 of the FDIC regulations. The 
proposed rule would amend Sec.  303.249(a) to apply to State savings 
associations. Although the proposed amendment would set forth more 
explicit requirements for State savings associations seeking approval 
for establishing an interlock, State savings associations would not 
realize any effects because they are already subject to the Interlocks 
Act, and part 348. Therefore, State savings associations would 
currently need to undertake similar procedures, and provide 
substantively similar information, to those outlined in Sec.  303.249.
    By removing duplicative or unnecessary regulations, the FDIC 
believes that the proposed rule will benefit State savings associations 
by clarifying regulations and improving the ease of references.

VII. Alternatives

    The FDIC has considered alternatives to the rule, but believes the 
amendments represent the most appropriate option for covered 
institutions. As discussed previously, the Dodd-Frank Act transferred 
to the FDIC certain powers, duties, and functions formerly performed by 
the OTS. The FDIC's Board reissued and redesignated certain transferred 
regulations from the OTS, but noted that it would evaluate and might 
later, as appropriate, rescind, amend, or incorporate the regulations 
into other FDIC regulations.
    The FDIC has evaluated the existing regulations related to 
Application Processing Procedures. The FDIC considered the status quo 
alternative of retaining the current regulations, but believes it would 
be procedurally complex and unnecessary for FDIC-supervised 
institutions to continue to refer to the separate sets of regulations. 
Therefore, the FDIC is proposing to amend and rescind the regulations.

VIII. Request for Comments

    The FDIC invites comments on all aspects of this proposed 
rulemaking, and specifically requests comments on the following 
question:
    Question 1: What impact, if any, do you foresee in the FDIC's 
proposal to rescind subpart F and amend certain sections of part 303? 
Please substantiate your response.
    Written comments must be received by the FDIC no later than 
November 16, 2020.

IX. Regulatory Analysis and Procedure

A. The Paperwork Reduction Act

    In accordance with the requirements of the Paperwork Reduction Act 
of 1995 (PRA), the FDIC may not conduct or sponsor, and the respondent 
is not required to respond to, an information collection unless it 
displays a currently valid Office of Management and Budget (OMB) 
control number. The proposed rule would rescind and remove from FDIC 
regulations subpart F and make technical revisions to certain sections 
of part 303. The proposed rule will not create any new or revise any 
existing collections of information under the PRA. Therefore, no 
information collection request will be submitted to the OMB for review.

B. The Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA), requires that, in connection 
with a notice of proposed rulemaking, an agency prepare and make 
available for public comment an initial regulatory flexibility analysis 
that describes the impact of the proposed rule on small entities.\45\ 
However, a regulatory flexibility analysis is not required if the 
agency certifies that the rule will not have a significant economic 
impact on a substantial number of small entities, and publishes its 
certification and a short explanatory statement in the Federal Register 
together with the rule. The Small Business Administration (SBA) has 
defined ``small entities'' to include banking organizations with total

[[Page 65281]]

assets of less than or equal to $600 million.\46\ Generally, the FDIC 
considers a significant effect to be a quantified effect in excess of 5 
percent of total annual salaries and benefits per institution, or 2.5 
percent of total non-interest expenses. The FDIC believes that effects 
in excess of these thresholds typically represent significant effects 
for FDIC-supervised institutions. For the reasons provided below, the 
FDIC certifies that the proposed rule, if adopted in final form, would 
not have a significant economic impact on a substantial number of small 
banking organizations. Accordingly, a regulatory flexibility analysis 
is not required.
---------------------------------------------------------------------------

    \45\ 5 U.S.C. 601, et seq.
    \46\ The SBA defines a small banking organization as having $600 
million or less in assets, where an organization's ``assets are 
determined by averaging the assets reported on its four quarterly 
financial statements for the preceding year.'' See 13 CFR 121.201 
(as amended, by 84 FR 34261, effective August 19, 2019). ``SBA 
counts the receipts, employees, or other measure of size of the 
concern whose size is at issue and all of its domestic and foreign 
affiliates.'' See 13 CFR 121.103. Following these regulations, the 
FDIC uses a covered entity's affiliated and acquired assets, 
averaged over the preceding four quarters, to determine whether the 
covered entity is ``small'' for the purposes of RFA.
---------------------------------------------------------------------------

    As of March 31, 2020, the FDIC supervised 3,309 insured depository 
institutions, of which 2,548 are considered small banking organizations 
for the purposes of RFA. The proposed rule primarily affects 
regulations that govern State savings associations.\47\ There are 33 
State savings associations considered to be small banking organizations 
for the purposes of the RFA.\48\
---------------------------------------------------------------------------

    \47\ FDIC Call Report, March 31, 2020.
    \48\ Id.
---------------------------------------------------------------------------

    As previously discussed, the proposed rule would, if adopted, 
rescind part 390, subpart F, because most of its elements are 
duplicative of substantively similar provisions of FDIC regulations, 
specifically part 303. Additionally, the prosed rule would amend 
Sec. Sec.  303.7(c)(1)(i) and 303.15(b)(1)-(4) of part 303 so that the 
provisions are applicable to State savings associations. In doing so, 
the proposed rule would make elements of part 390, subpart F, 
substantively duplicative of the amended elements of part 303, and, 
therefore, unnecessary.
    The proposed rule would amend Sec. Sec.  303.204 and 303.205 to 
make the provisions applicable to all insured depository institutions, 
including small, State savings associations. The revisions to 
Sec. Sec.  303.204 and 303.205 provide a procedure for State savings 
associations to apply to the FDIC for relief from the restrictions of 
section 38 of the FDI Act.\49\
---------------------------------------------------------------------------

    \49\ 12 U.S.C. 1831o.
---------------------------------------------------------------------------

    Finally, the proposed rule would amend Sec.  303.249(a) to make the 
provisions applicable to all insured depository institutions, including 
small, State savings associations. The FDIC believes that this proposed 
amendment will not have any substantive effects on small, State savings 
associations because it will not result in any substantive change in 
the procedures for, or content associated with seeking approval for 
establishing an interlock. Thus, the FDIC does not believe the proposed 
rule will substantially impact small, FDIC-supervised institutions or 
future applicants.
    Based on the information above, the FDIC certifies that the 
proposed rule would not have a significant economic impact on a 
substantial number of small entities.
    Question 2: The FDIC invites comments on all aspects of the 
supporting information provided in this RFA section. In particular, 
would this rule have any significant effects on small entities that the 
FDIC has not identified?

C. Plain Language

    Section 722 of the Gramm-Leach-Bliley Act \50\ requires each 
Federal banking agency to use plain language in all of its proposed and 
final regulations published after January 1, 2000. As a federal banking 
agency subject to the provisions of this section, the FDIC has sought 
to present the proposed rule to rescind subpart F and make technical 
revisions to certain sections of part 303 in a simple and 
straightforward manner.
---------------------------------------------------------------------------

    \50\ Public Law 106-102, 113 Stat. 1338, 1471 (codified at 12 
U.S.C. 4809).
---------------------------------------------------------------------------

    Question 3: The FDIC invites comments on whether the proposal is 
clearly stated and effectively organized, and how the FDIC might make 
the proposal easier to understand.

D. The Economic Growth and Regulatory Paperwork Reduction Act

    Under section 2222 of the Economic Growth and Regulatory Paperwork 
Reduction Act of 1996 (EGRPRA), the FDIC is required to review all of 
its regulations, at least once every 10 years, in order to identify any 
outdated or otherwise unnecessary regulations imposed on insured 
institutions.\51\ The FDIC, along with the other federal banking 
agencies, submitted a Joint Report to Congress on March 21, 2017, 
(EGRPRA Report) discussing how the review was conducted, what has been 
done to date to address regulatory burden, and further measures that 
will be taken to address issues that were identified. As noted in the 
EGRPRA Report, the FDIC is continuing to streamline and clarify its 
regulations through the OTS rule integration process. By removing 
outdated or unnecessary regulations, such as subpart f, this proposal 
complements other actions the FDIC has taken, separately and with the 
other federal banking agencies, to further the EGRPRA mandate.
---------------------------------------------------------------------------

    \51\ Public Law 104-208, 110 Stat. 3009 (1996).
---------------------------------------------------------------------------

List of Subjects

12 CFR Part 303

    Administrative practice and procedure, Bank deposit insurance, 
Banks, banking, Reporting and recordkeeping requirements, Savings 
associations.

12 CFR Part 390

    Administrative practice and procedure, Advertising, Aged, Civil 
rights, Conflict of interests, Credit, Crime, Equal employment 
opportunity, Fair housing, Government employees, Individuals with 
disabilities, Reporting and recordkeeping requirements, Savings 
associations.

Authority and Issuance

    For the reasons stated in the preamble, the Federal Deposit 
Insurance Corporation proposes to amend 12 CFR parts 303 and 390 as 
follows:

PART 303--FILING PROCEDURES

0
1. The authority citation for part 303 is revised to read as follows:

    Authority: 12 U.S.C. 378, 1463, 1467a, 1813, 1815, 1817, 1818, 
1819(a) (Seventh and Tenth), 1820, 1823, 1828, 1831i, 1831e, 1831o, 
1831p-1, 1831w, 1831z, 1835a, 1843(l), 3104, 3105, 3108, 3207, 5412; 
15 U.S.C. 1601-1607.

0
2. Revise Sec.  303.7(c)(1) to read as follows:


Sec.  303.7  Public notice requirements.

* * * * *
    (c) * * *
    (1) The public notice referred to in paragraph (a) of this section 
shall consist of the following:
    (i) In the case of an application for deposit insurance for a de 
novo depository institution, include the names of all organizers or 
incorporators. In the case of an application to establish a branch, 
include the location of the proposed branch or, in the case of an 
application to relocate a branch or main office, include the current 
and proposed address of the office. In the case of a merger 
application, include the names of all parties to the transaction. In 
the case of a notice of acquisition of control, include the name(s) of 
the acquiring

[[Page 65282]]

parties. In the case of an application to relocate an insured branch of 
a foreign bank, include the current and proposed address of the branch.
    (ii) Type of filing being made;
    (iii) Name of the depository institution(s) that is the subject 
matter of the filing;
    (iv) That the public may submit comments to the appropriate FDIC 
regional director;
    (v) The address of the appropriate FDIC office where comments may 
be sent (the same location where the filing will be made);
    (vi) The closing date of the public comment period as specified in 
the appropriate subpart; and
    (vii) That the nonconfidential portions of the application are on 
file in the appropriate FDIC office and are available for public 
inspection during regular business hours; photocopies of the 
nonconfidential portion of the application file will be made available 
upon request.
* * * * *
0
3. Revise Sec.  303.15(b) to read as follows:


Sec.  303.15  Certain limited liability companies deemed incorporated 
under State law.

* * * * *
    (b) For purposes of the Federal Deposit Insurance Act and this 
Chapter,
    (1) Each of the terms ``stockholder'' and ``shareholder'' includes 
an owner of any interest in a depository institution chartered as an 
LLC, including a member or participant;
    (2) The term ``director'' includes a manager or director of a 
depository institution chartered as an LLC, or other person who has, 
with respect to such a depository institution, authority substantially 
similar to that of a director of a corporation;
    (3) The term ``officer'' includes an officer of a depository 
institution chartered as an LLC, or other person who has, with respect 
to such a depository institution, authority substantially similar to 
that of an officer of a corporation; and
    (4) Each of the terms ``voting stock,'' ``voting shares,'' and 
``voting securities'' includes ownership interests in a depository 
institution chartered as an LLC, as well as any certificates or other 
evidence of such ownership interests.
0
4. Revise Sec.  303.204 to read as follows:


Sec.  303.204  Applications for acquisitions, branching, and new lines 
of business.

    (a) Scope. (1) Any insured State nonmember bank, any insured State 
savings association, and any insured branch of a foreign bank which is 
undercapitalized or significantly undercapitalized, and any insured 
depository institution which is critically undercapitalized, shall 
submit an application to engage in acquisitions, branching or new lines 
of business.
    (2) A new line of business will include any new activity exercised 
which, although it may be permissible, has not been exercised by the 
institution.
    (b) Content of filing. Applications shall describe the proposal, 
state the date the institution's capital restoration plan was accepted 
by its primary federal regulator, describe the institution's status in 
implementing the plan, and explain how the proposed action is 
consistent with and will further the achievement of the plan or 
otherwise further the purposes of section 38 of the FDI Act. If the 
FDIC is not the applicant's primary federal regulator, the application 
also should state whether approval has been requested from the 
applicant's primary federal regulator, the date of such request and the 
disposition of the request, if any. If the proposed action also 
requires applications pursuant to section 18 (c) or (d) of the FDI Act 
(mergers and branches) (12 U.S.C. 1828 (c) or (d)), such applications 
should be filed concurrently with, or made a part of, the application 
filed pursuant to section 38 of the FDI Act (12 U.S.C. 1831o).
0
5. Revise Sec.  303.205(a) to read as follows:


Sec.  303.205  Applications for bonuses and increased compensation for 
senior executive officers.

    (a) Scope. Any insured State nonmember bank, insured State savings 
association, or insured branch of a foreign bank that is significantly 
or critically undercapitalized, or any insured State nonmember bank, 
any insured State savings association, or any insured branch of a 
foreign bank that is undercapitalized and which has failed to submit or 
implement in any material respect an acceptable capital restoration 
plan, shall submit an application to pay a bonus or increase 
compensation for any senior executive officer.
* * * * *
0
6. Revise Sec.  303.249(a) to read as follows:


Sec.  303.249  Management official interlocks.

    (a) Scope. This section contains the procedures to be followed by 
an insured State nonmember bank or an insured State savings association 
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.
* * * * *

PART 390--REGULATIONS TRANSFERRED FROM THE OFFICE OF THRIFT 
SUPERVISION

0
7. The authority citation for part 390 is revised to read as follows:

    Authority: 12 U.S.C. 1819.

    Subpart G also issued under 12 U.S.C. 2810 et seq., 2901 et 
seq.; 15 U.S.C. 1691; 42 U.S.C. 1981, 1982, 3601-3619.
    Subpart O also issued under 12 U.S.C. 1828.
    Subpart Q also issued under 12 U.S.C. 1462; 1462a; 1463; 1464.
    Subpart W also issued under 12 U.S.C. 1462a; 1463; 1464; 15 
U.S.C. 78c; 78l; 78m; 78n; 78p; 78w.
    Subpart Y also issued under 12 U.S.C. 1831o.

Subpart F--[Removed and Reserved]

0
8. Remove and reserve subpart F, consisting of Sec. Sec.  390.100 
through 390.135.

    Federal Deposit Insurance Corporation.
    By order of the Board of Directors.
    Dated at Washington, DC, on or about September 15, 2020.
James P. Sheesley,
Assistant Executive Secretary.
[FR Doc. 2020-21000 Filed 10-14-20; 8:45 am]
BILLING CODE 6714-01-P