(a) Termination. A management official shall terminate his or her
service or apply for an exemption if a change in circumstances causes
the service to become prohibited. A change in circumstances may include
an increase in asset size of an organization, a change in the delineation
of the RMSA or community, the establishment of an office, an increase
in the aggregate deposits of the depository organization, or an acquisition,
merger, consolidation, or reorganization of the ownership structure
of a depository organization that causes a previously permissible
interlock to become prohibited.
(b) Transition period. A management official
described in paragraph (a) of this section may continue to serve the
state member bank or bank holding company involved in the interlock
for 15 months following the date of the change in circumstances. The
Board may shorten this period under appropriate circumstances.
