(a) Board action.
(1) A subsidiary savings association of
a savings and loan holding company may declare a proposed dividend
after the end of a 30-day review period commencing on the date of
submission to the Federal Reserve System of the complete record on
the notice, unless the Board or Reserve Bank disapproves the notice
before the end of the period.
(2) A subsidiary savings association of
a savings and loan holding company may declare a proposed dividend
before the end of the 30-day period if the Board or Reserve Bank notifies
the applicant in writing of the Board’s or Reserve Bank’s intention
not to disapprove the notice.
(b) Criteria. The Board or Reserve Bank may
disapprove a notice, in whole or in part, if the Board or Reserve
Bank makes any of the following determinations.
(1) Following the dividend the subsidiary
savings association will be undercapitalized, significantly undercapitalized,
or critically undercapitalized as set forth in applicable regulations
under 12 U.S.C. 1831o.
(2) The proposed dividend raises safety or soundness concerns.
(3) The proposed dividend
violates a prohibition contained in any statute, regulation, enforcement
action, or agreement between the subsidiary savings association or
any savings and loan holding company of which it is a subsidiary and
an appropriate Federal banking agency, a condition imposed on the
subsidiary savings association or any savings and loan holding company
of which it is a subsidiary in an application or notice approved by
an appropriate Federal banking agency, or any formal or informal enforcement
action involving the subsidiary savings association or any savings
and loan holding company of which it is a subsidiary. If so, the Board
will determine whether it may permit the dividend notwithstanding
the prohibition, condition, or enforcement action.
