(a) Hearings.
(1) Procedure to request hearing. Any request
for a hearing on a notice under this subpart shall comply with the
provisions of 12 CFR 262.3(e).
(2) Determination to hold hearing. The Board
may order a formal or informal hearing or other proceeding on a notice
as provided in 12 CFR 262.3(i)(2). The Board shall order a hearing
only if there are disputed issues of material fact that cannot be
resolved in some other manner.
(3) Extension of period for hearing. The Board
may extend the time for action on any notice for such time as is reasonably
necessary to conduct a hearing and evaluate the hearing record. Such
extension shall not exceed 91 calendar days after the date of submission
to the Board of the complete record on the notice. The procedures
for computation of the 91-day rule as set forth in section 225.16(f)
apply to notices under this subpart that involve hearings.
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(b) Approval through failure to act.
(1) Except as provided in paragraph
(a) of this section or section 225.24(d)(5), a notice under this subpart
shall be deemed to be approved at the conclusion of the period that
begins on the date the complete notice is received by the Reserve
Bank or the Board and that ends 60 calendar days plus any applicable
extension and tolling period thereafter.
(2) Complete
notice. For purposes of paragraph (b)(1) of this section, a notice
shall be deemed to be complete at such time as it contains all information
required by this subpart and all other information requested by the
Board or the Reserve Bank.
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(c) Notice to expand or alter nonbanking activities.
(1) De novo
expansion. A notice under this subpart is required to open a
new office or to form a subsidiary to engage in, or to relocate an
existing office engaged in, a nonbanking activity that the Board has
previously approved for the bank holding company under this regulation,
only if—
(i) the
Board’s prior approval was limited geographically;
(ii) the activity is to be conducted
in a country outside of the United States and the bank holding company
has not previously received prior Board approval under this regulation
to engage in the activity in that country; or
(iii) the Board or appropriate Reserve
Bank has notified the company that a notice under this subpart is
required.
(2) Activities outside United States. With
respect to activities to be engaged in outside the United States that
require approval under this subpart, the procedures of this section
apply only to activities to be engaged in directly by a bank holding
company that is not a qualifying foreign banking organization, or
by a nonbank subsidiary of a bank holding company approved under this
subpart. Regulation K (12 CFR 211) governs other international operations
of bank holding companies.
(3) Alteration of nonbanking activity. Unless
otherwise permitted by the Board, a notice under this subpart is required
to alter a nonbanking activity in any material respect from that considered
by the Board in acting on the application or notice to engage in the
activity.
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(d) Emergency savings
association acquisitions. In the case of a notice to acquire
a savings association, the Board may modify or dispense with the public-notice
and hearing requirements of this section if the Board finds that an
emergency exists that requires the Board to act immediately and the
primary federal regulator of the institution concurs.
