(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
depository organization involved in the interlock for 15 months following
the date of the change in circumstances. The Board may shorten this
period under appropriate circumstances.
