Current through Register Vol. 49, No. 6, March 15, 2024
PURPOSE: This regulation creates a uniform procedure
to be followed by a savings and loan association in establishing either a
branch office, mobile facility or tandem branch as defined by the regulation.
An association must have the written approval of the director of the Division
of Finance before establishing a branch, tandem branch or mobile facility. The
regulation requires that a uniform application be used when applying for a
branch, tandem branch or mobile facility. Requirements are stated as to when
the director of the Division of Finance may approve a branch, tandem branch or
mobile facility. The director of the Division of Finance must conditionally
determine whether an application for a branch, tandem branch or mobile facility
should be granted. If a conditional approval is granted, all associations
within that county or adjoining county must be notified of the conditional
approval. An association upon notice of conditional approval shall have thirty
days to file a written protest in the form prescribed by the regulation. A
hearing on the application may be held if requested. After a hearing, upon
rendition of a decision by the director, either the applicant or protestant may
appeal to the Savings and Loan Commission. If there is no hearing upon an
application, or if no appeal is filed, the facility must be opened within
twelve months or an extension of time to open is obtained from the director of
the Division of Finance. If an association moves an office more than a mile
from its present location, the written approval of the director of the Division
of Finance must be obtained. An association may invest in real estate for an
office or related facility provided this investment does not exceed twenty-five
percent of the net worth of an association.
(1) Definitions. As used in this rule the
following terms shall have the following meanings respectively:
(A) Association and federal association shall
have the meaning specified in section
369.014,
RSMo;
(B) Office means any
permanent place of business, except the home office (where an association or
federal association regularly transacts business) or an agency
office;
(C) Home office means a
place where an association or federal association has its headquarters as
specified in its charter and where loans are approved and the principal affairs
and business are conducted;
(D)
Mobile facility means a movable place of business using mobile equipment and
operated at two (2) or more locations;
(E) Commission shall mean the State Savings
and Loan Commission; and
(F)
Protestant means any state association or federal association filing a protest
with the director or with the commission.
(2) Branch Office, Mobile Facilities and
Tandem Branch.
(A) No association shall
establish a branch office, mobile facility or tandem branch without the prior
written approval of the director. An applicant for a branch office, mobile
facility or tandem branch shall submit its application in duplicate on the form
prescribed by the director as "Outline of information to be submitted in
support of an application to establish a branch office or mobile facility."
This form may be obtained from the Division of Finance.
(B) Branch Office and Tandem Branch.
Information shall be furnished the director on the prescribed form including
the information required by section
369.329,
RSMo and no application to establish a branch office or tandem branch shall be
approved unless the director shall affirmatively find from the evidence before
him/her that-
1. All requirements of section
369.329,
RSMo are satisfied;
2. The
policies, condition or operation of the applicant do not afford a basis for
supervisory objection to the application; and
3. A separately enclosed office area will be
provided for a branch office, within which no activity or business shall be
conducted, except that related to the affairs of the association or of a
service corporation, meeting all the requirements of these regulations relating
to a service corporation, will be conducted, provided that the enclosure may be
counters or railings of less than ceiling height.
(C) Mobile Facility. In order to provide
savings and loan services in areas which are not otherwise provided with these
services locally, an association may establish and operate a mobile facility,
subject to the following requirements and limitations:
1. This facility shall be operated only at
locations approved by the director, each of which shall at all times be
appropriately identified at the site;
2. The mobile facility shall be established
and operated at two (2) or more locations, each of which at the time of filing
of the application for permission to establish and operate the mobile facility
shall be more than ten (10) miles from the locations of any home or branch
office or agency of any other association or federal association;
3. Any facility shall be open for business at
the same location on the same day (not to exceed three (3) days) of each week,
during these hours, aggregating a total of not less than four (4) hours a day,
as the association's board of directors may from time-to-time
determine;
4. Any business of the
association, as authorized by its board of directors, may be transacted at the
facility except the approval of loans, and a detailed record of the
transactions of each facility shall be maintained as provided by law or
regulation with reference to other association offices;
5. The mobile equipment used in the
establishment and operation of such facility shall not remain at any location
while the facility is not open for business, except that the equipment may be
at any approved location on the night before and the night following a day on
which the facility is open for business; and
6. Without prior approval by the director,
operation of the facility shall not be continued at any location after the
expiration of a period of time as the director may prescribe with respect to
operation of the facility at such location.
(3) Determination by the Director.
(A) Within forty (40) days from the date of
filing the application for a branch office, mobile facility or tandem branch,
and after preliminary examination, the director shall conditionally determine
whether an application should be granted. If the director determines that the
application should be denied without hearing, s/he shall issue the denial in
writing.
(B) If the director
conditionally determines that approval of the application should be granted,
s/he shall give written notice to the applicant and to each association and
federal association located or having an office in the county, which term for
the purpose hereof shall include the City of Saint Louis, or in any county
adjoining the county in which the proposed branch office, mobile facility or
tandem branch is to be located and, if there is an insured association located
in such area, to the appropriate federal regulatory agency.
(4) Protest and Request for
Hearing Before the Director.
(A) Any state
association or federal association, located or having an office in the count y,
which term for the purpose hereof shall include the City of Saint Louis, or in
any county adjoining the county in which the proposed branch office, mobile
facility or tandem branch is to be located, shall have thirty (30) days from
the date of mailing of the notice of conditional approval within which to file
written protest of that application and a request for hearing with the
director. If within the thirty (30)-day period a protest is filed, the director
may in his/her discretion designate a place, day and hour, not earlier than ten
(10) nor more than thirty (30) days from the expiration of that thirty (30)-day
period for oral argument on the application.
(B) Form of Protest. The written
communication of protest shall consist of or be supported by a memorandum,
brief, affidavit or any combination thereof setting forth at least the
following:
1. A statement summarizing the
reasons of the protest;
2. A list
of specific matters in the application to which the protestant objects,
together with the reasons for each objection; and
3. A statement of the facts supporting the
protest, including relevant economic or financial data.
(C) In the event of protest and request for
oral argument, the applicant upon receipt of the written protest forwarded by
the division may file an answer to that protest within a time period set by the
director.
(D) If no hearing is
held, the director shall act upon the application within fifteen (15) days from
the expiration of the thirty (30)-day period and any protestants shall be
notified of the final decision of the director.
(E) Oral Argument. Oral arguments on the
application for a branch office, mobile facility or tandem branch may be held
by the director upon timely receipt of a duly filed protest and a request for a
hearing or if the director, after reviewing the application and other pertinent
information, considers oral argument desirable.
1. The director, or any other person
designated by him/her, may hear and determine all matters relating to the
conduct of oral argument. Arguments may be made in person or by an authorized
representative and unless otherwise permitted by the director shall be based
only on written information previously filed regarding the application. A
reasonable time shall be allowed for each party for oral argument.
2. Two (2) transcripts of the oral argument
shall be made and included in the application file. Parties at the oral
argument shall pay a pro rata share of the cost of the
transcript. On entry of final order in the matter, the losing parties shall
reimburse the successful parties for the cost so advanced.
(5) Appeals of Decision of the
Director.
(A) The applicant or any protestant
may appeal the decision of the director whether or not there has been a hearing
by the director as provided in sections
369.314
and
369.319, RSMo.
(B) Within fifteen (15) days after notice of
the director's decision is mailed, an appeal shall be perfected by filing with
the director a notice of appeal stating the name of the appealing party, the
order or decision appealed from and the reasons for the appeal. Originals of
any and all filings, pleadings, briefs, memoranda, etc., shall be filed in the
office of the Division of Finance with copies sent to each member of the
commission.
(C) The Savings and
Loan Commission shall give at least fifteen (15) days' notice of hearing to all
persons interested in the matter appealed from the director.
(6) Branch Location and Extension
of Time to Open a Branch.
(A) Upon final
approval of a branch, mobile or tandem application by the director and in the
event no appeal is filed with the State Savings and Loan Commission, an
association shall notify the Division of Finance of the location of the branch,
mobile or tandem office including the street address. In the event that the
location changes prior to the opening, the Division of Finance shall be
immediately notified.
(B) Upon
final approval of a branch, mobile facility or tandem office application by the
director and in the event no appeal is filed with the State Savings and Loan
Commission, the office shall be opened within twelve (12) months from the date
of the director's approval. In the event that a branch office, mobile facility
or tandem facility cannot be opened within the original twelve (12)-month
period or any extension thereof, at least thirty (30) days prior to the
expiration of the twelve (12)-month period or any extension thereof, the
association shall request in writing an extension of time within which to open
the office and the request shall contain the reasons for the extension and the
approximate time when the office will open.
(C) In the event an appeal is filed with the
Savings and Loan Commission, the branch, mobile or tandem facility shall not
begin operation, or construction started until final disposition by the Savings
and Loan Commission and the courts of the state of Missouri.
(D) In the event that an association does not
apply for an extension of time, the original approval of any extension shall
terminate and the association's authority to open an office shall cease and be
of no further force and effect.
(7) Permitted Transaction of Business at
Branch Office. Any business of any association may be transacted at a branch
office so established as the board of directors may authorize. Records of or
relating to savings or investment accounts, or both, with the prior approval of
the director, may be kept at the office where the accounts originate or are to
be serviced.
(8) Change of Location
of Office or Home Office. An association may move any office including its home
office which has been operated at its present location at least two (2) years
to another location within one (1) mile without approval of the director. Any
move of location beyond a one (1)mile radius shall require approval of the
director; and each application for approval shall be supported with a statement
showing the need for the change of location and the estimated cost of removal
to and maintenance of the new location.
(9) Real Estate for Office and Related
Facility. An association may invest in real estate (improved or unimproved) to
be used for office and related facilities of the association, or for the office
and related facilities and for rental or sale, if each investment is made and
maintained pursuant to a prudent program property acquisition to meet either
the association's present needs or its reasonable future needs for office and
related facilities. Except with the prior approval of the director, no such
investment may be made before the director has approved an application for the
establishment or maintenance of an office facility at the location of the real
estate or the change of an office facility to the location, if as a result of
the investment, the outstanding aggregate book value of all investments made
before the director's approval would exceed twenty-five percent (25%) of the
association's net worth. Except with the prior approval of the director, no
such investment may be made before or after the director has approved an
application, if any application is required, for the establishment or
maintenance of an office facility at the location of the real estate or the
change of an office facility to that location, if, as a result of the
investment, the outstanding aggregate book value of all investments made before
and after the director's approval would exceed the association's net
worth.
*Original authority: 369.299(2), RSMo 1971, amended 1994
and 369.329(1), RSMo 1971, amended 1983,
1994.
