(a) Notice of intent to
issue order.
(1) In general. The Board shall
provide a bank prior written notice of the Board’s intention to issue
an order requiring the bank to correct a safety-and-soundness deficiency
or to take or refrain from taking other actions pursuant to section
39 of the FDI Act. The bank shall have such time to respond to a proposed
order as provided by the Board under paragraph (c) of this section.
(2) Immediate issuance
of final order. If the Board finds it necessary in order to carry
out the purposes of section 39 of the FDI Act, the Board may, without
providing the notice prescribed in paragraph (a)(1) of this section,
issue an order requiring a bank immediately to take actions to correct
a safety-and-soundness deficiency or take or refrain from taking other
actions pursuant to section 39. A state member bank that is subject
to such an immediately effective order may submit a written appeal
of the order to the Board. Such an appeal must be received by the
Board within 14 calendar days of the issuance of the order, unless
the Board permits a longer period. The Board shall consider any such
appeal, if filed in a timely manner, within 60 days of receiving the
appeal. During such period of review, the order shall remain in effect
unless the Board, in its sole discretion, stays the effectiveness
of the order.
(b) Contents of notice. A notice of intent to issue an order shall include—
(1) a statement of the safety-and-soundness
deficiency or deficiencies that have been identified at the bank;
(2) a description of any
restrictions, prohibitions, or affirmative actions that the Board
proposes to impose or require;
(3) the proposed date when such restrictions
or prohibitions would be effective or the proposed date for completion
of any required action; and
(4) the date by which the bank subject
to the order may file with the Board a written response to the notice.
8-096.26
(c) Response to notice.
(1) Time for response. A bank may
file a written response to a notice of intent to issue an order within
the time period set by the Board. Such a response must be received
by the Board within 14 calendar days from the date of the notice unless
the Board determines that a different period is appropriate in light
of the safety and soundness of the bank or other relevant circumstances.
(2) Contents of response. The response should include—
(i) an explanation why the
action proposed by the Board is not an appropriate exercise of discretion
under section 39;
(ii) any recommended modification of the proposed order; and
(iii) any other relevant
information, mitigating circumstances, documentation, or other evidence
in support of the position of the bank regarding the proposed order.
(d) Agency consideration
of response. After considering the response, the Board may—
(1) issue the order as proposed
or in modified form;
(2) determine not to issue the order and so notify the bank; or
(3) seek additional information
or clarification of the response from the bank, or any other relevant
source.
8-096.27
(e) Failure to file response. Failure by a bank to file with the Board, within the specified time
period, a written response to a proposed order shall constitute a
waiver of the opportunity to respond and shall constitute consent
to the issuance of the order.
(f) Request for modification or rescission of order. Any bank that
is subject to an order under this subpart may, upon a change in circumstances,
request in writing that the Board reconsider the terms of the order,
and may propose that the order be rescinded or modified. Unless otherwise
ordered by the Board, the order shall continue in place while such
request is pending before the Board.
