(a) Hearing requests. Within 20 days of the date of issuance of
a denial of an application filed under this subpart, a savings and
loan holding company or a person whose application the Board has denied
may file a written request demonstrating good cause for a hearing
on the denial.
(b) Board
review of hearing request. The Board will review the hearing
request to determine if the savings and loan holding company or person
has demonstrated good cause for a hearing on the application. Within
30 days after the filing of a timely request for a hearing, the Board
will notify the savings and loan holding company or person in writing
of its decision to grant or deny the hearing request. If the Board
grants the request for a hearing, it will order a hearing to be commenced
within 60 days of the issuance of the notification. Upon the request
of a party, the Board may at its discretion order a later hearing
date.
(c) Hearing procedures. The following procedures apply to hearings under this subpart.
(1) The hearing shall be held
in Washington, DC, or at another designated place, before a presiding
officer designated by the Board.
(2) An applicant may elect in writing to
have the matter determined on the basis of written submissions, rather
than an oral hearing.
(3) The parties to the hearing are Enforcement Counsel and the applicant.
(4) The provisions of
sections 263.2, 263.4, 263.6 through 263.12, and 263.16 of this chapter
apply to the hearing.
(5) Discovery is not permitted.
(6) A party may introduce relevant and
material documents and make oral argument at the hearing.
(7) At the discretion of the
presiding officer, witnesses may be presented within specified time
limits, provided that a list of witnesses is furnished to the presiding
officer and to all other parties prior to the hearing. Witnesses must
be sworn, unless otherwise directed by the presiding officer. The
presiding officer may ask questions of any witness. Each party may
cross-examine any witness presented by the opposing party. The Board
will furnish a transcript of the proceedings upon an applicant’s request
and upon the payment of the costs of the transcript.
(8) The presiding officer has the power
to administer oaths and affirmations, to take or cause to be taken
depositions of unavailable witnesses, and to issue, revoke, quash,
or modify subpoenas and subpoenas duces tecum. If the presentation
of witnesses is permitted, the presiding officer may require the attendance
of witnesses from any state, territory, or other place subject to
the jurisdiction of the United States at any location where the proceeding
is being conducted. Witness fees are paid in accordance with section
263.14 of this chapter.
(9) Upon the request of a party, the record will remain open for
five business days following the hearing for additional submissions
to the record.
(10)
Enforcement Counsel has the burden of proving a prima facie case that a person is prohibited from a position under section 19(e)
of the FDIA. The applicant has the burden of proof on all other matters.
(11) The presiding officer
must make recommendations to the Board, where possible, within 20
days after the last day for the parties to submit additions to the
record.
(12) The presiding
officer must forward his or her recommendation to the Board who shall
promptly certify the entire record, including the presiding officer’s
recommendations. The Board’s certification will close the record.
(d) Decision. After the certification of the record, the Board will notify the
parties of its decision by issuing an order approving or denying the
application.
(1) An approval order will
require fidelity bond coverage for the position to the same extent
as similar positions with the savings and loan holding company. The
approval order may include such other conditions as may be appropriate.
(2) A denial order will
include a summary of the relevant factors under section 238.88(b).
