[Code of Federal Regulations]
[Title 12, Volume 3]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 12CFR262.25]

[Page 730-732]
 
                       TITLE 12--BANKS AND BANKING
 
                   CHAPTER II--FEDERAL RESERVE SYSTEM
 
PART 262--RULES OF PROCEDURE--Table of Contents
 
Sec. 262.25  Policy statement regarding notice of applications; timeliness of comments; informal meetings.

    (a) Notice of applications. A bank or company applying to the Board 
for a deposit-taking facility must first publish notice of its 
application in local newspapers. This requirement, found in 
Sec. 262.3(b)(1) of the Board's Rules of Procedure covers applications 
under the Bank Holding Company Act and Bank Merger Act, as well as 
applications for membership in the Federal Reserve System and for new 
branches of State member banks. Notices of these applications are 
published in newspapers of general circulation in the communities where 
the applicant intends to do business as well as in the community where 
the applicant's head office is located. These notices are important in 
calling the public's attention to an applicant's plans and giving the 
public a chance to comment on these plans. To improve the effectiveness 
of the notices, the Board has supplemented its notice procedures as 
follows.
    (1) The Board has adopted standard forms of notice for use by 
applicants that will specify the exact date on which the comment period 
on the application ends, which may not be less than thirty calendar days 
from the date of publication of the notice. The newspaper forms also 
provide the name and telephone number of the Community Affairs Officer 
of the appropriate Reserve Bank as the person to call to obtain more 
information about submitting comments on an application. In general, the 
Community Affairs Officer will be available to answer questions of a 
general nature concerning the submission of comments and the processing 
of applications.
    (2) The Board also publishes notice of bank holding company 
applications for bank acquisitions (but not for bank mergers or 
branches) in the Federal Register after the application is received and 
the Community Affairs Officer can provide the exact date on which this 
comment period ends. (The Federal Register comment period will generally 
end after the date specified in the newspaper notice.)
    (3) In addition to the formal newspaper and Federal Register notices 
discussed above, each Reserve Bank publishes a weekly list of 
applications submitted to the Reserve Bank for which newspaper notices 
have been published. Any person or organization may arrange to have the 
list mailed to

[[Page 731]]

them regularly, or may request particular lists, by contacting the 
Reserve Bank's Community Affairs Officer. Each Reserve Bank's list 
includes only applications submitted to that particular Reserve Bank, 
and persons or groups should request lists from each Reserve Bank having 
jurisdiction over applications in which they may be interested. Since 
the lists are prepared as a courtesy by the Reserve Bank, and are not 
intended to replace any formal notice required by statute or regulation, 
the Reserve Banks and the Board do not assume responsibility for errors 
or omissions. In addition, the weekly lists prepared by Reserve Banks 
include certain applications by bank holding companies for nonbank 
acquisitions filed with the Reserve Bank.
    (4) With respect to applications by bank holding companies to engage 
de novo in nonbank activities or make acquisitions of nonbank firms, the 
Board publishes notice of most of these applications in the Federal 
Register when the applications are filed. Notice of certain small 
acquisitions may be published in a newspaper of general circulation in 
the area(s) to be served. While applications for nonbanking activities 
are not covered by the provisions of the Community Reinvestment Act or 
the notice provisions of Sec. 262.3 of the Board's Rules of Procedure, 
the provisions of this Statement apply to such applications.
    (b) Timeliness of comments. (1) All comments must be actually 
received by the Board or the Reserve Bank on or before the last date of 
the comment period specified in the notice. Where more than one notice 
is published with respect to an application, comments must be received 
on or before the last date of the latest comment period. The Board's 
Rules allow it to disregard comments received after the comment period 
expires. In particular, Sec. 262.3(e) of the Board's Rules of Procedure 
states that the Board will not consider comments on an application that 
are not received on or before the expiration of the comment period. 
Thus, a commenter who fails to comment on an application within the 
specified comment period (or any extension) may be precluded from 
participating in the consideration of the application.
    (2) In cases where a commenter for good cause is unable to send its 
comment within the specified comment period, Sec. 265.2(a)(10) of the 
Board's Rules Regarding Delegation of Authority (12 CFR 265.2(a)(10)) 
allows the Secretary of the Board to grant requests for an extension of 
the period. Under this provision, upon receipt of a request received on 
or before the expiration of the comment period, the Secretary may grant 
a brief extension upon clear demonstration of hardship or other 
meritorious reason for seeking additional time.
    (c) Private meetings. When a timely protest to approval of an 
application is received, the Reserve Bank may arrange a meeting between 
the applicant and the protestant to clarify and narrow the issues, and 
to provide a forum for the resolution of differences between the 
protestant and the applicant. If the Reserve Bank decides that a private 
meeting would be appropriate, the Reserve Bank will arrange a private 
meeting soon after the receipt of a protest and the applicant's 
response, if any, to the protest. In scheduling the meeting, the Reserve 
Bank will consider convenience to the parties with respect to the time 
and place of the meeting. A decision to hold a private meeting will not 
preclude the Reserve Bank or the Board from holding a public meeting or 
other proceeding if it is deemed appropriate.
    (d) Public meetings. The Board's General Counsel (in consultation 
with the Reserve Bank and the directors of other interested divisions of 
the Board) may order that a public meeting or other proceeding be held 
if requested by the applicant or a protestant who files a timely 
protest, or if such a proceeding appears appropriate. In most instances, 
the determination to order a public meeting will be made after a private 
meeting has been held; however, where appropriate a public meeting may 
be convened immediately after receipt of the protest and the applicant's 
response, if any. Additional information may be requested prior to 
making a determination to convene a public meeting. In these cases, a 
determination will be made within ten days from the date all relevant 
information is received. The public meeting will be

[[Page 732]]

scheduled as soon as possible, but in no event, later than 30 days after 
the decision to hold the proceeding is made. The purpose of the public 
meeting will be to elicit information, to clarify factual issues related 
to the application and to provide an opportunity for interested 
individuals to provide testimony. The Board has adopted the following 
guidelines to be used for convening public meetings, although specific 
provisions may be altered by the General Counsel if circumstances 
warrant.
    (1) Requesting a public meeting. A meeting may be requested by a 
person or an organization objecting to the application during the 
comment period, and by the applicant during the period within which it 
must respond to comments. Such a request must be timely and in writing.
    (i) A protest does not have to be filed in a legal brief or other 
format in order for a public meeting to be granted. The Community 
Affairs Officer at the Reserve Bank will be available to assist any 
member of the public regarding the types of information generally 
included in protests; the format generally used by protestants; and any 
other specific questions about the procedures of the Federal Reserve 
System regarding protested applications.
    (ii) In general, a protest should identify the protestant, state the 
basis for objection to approval of the application, and provide 
available written evidence to support the objection. Objections to 
approval of an application must relate to the factors that the Board is 
authorized to consider in acting on an application. Generally, these 
factors relate to the financial and managerial resources of the 
companies and banks involved, the effects of the proposal on 
competition, and the convenience and needs of the communities to be 
served by the companies and banks involved. If a public meeting is 
requested, the protest should indicate that there are members of the 
public who wish to speak on the issues in a public forum.
    (iii) The protest will be transmitted by the Reserve Bank to the 
applicant, and the applicant will generally be allowed eight business 
days to respond in writing to the protest.
    (2) Arranging the public meeting. Public meetings will be arranged 
and presided over by a representative of the Federal Reserve System 
(``Presiding Officer''). In determining the time and place for the 
public meeting, such factors as convenience to the parties, the number 
of people expected to attend the meeting, access to public 
transportation and possible after-hour security problems will be taken 
into account.
    (3) Conducting the public meeting. Prior to the meeting, all 
necessary steps will be taken to ensure that the meeting is conducted 
appropriately, including scheduling of witnesses, submission of written 
materials and other arrangements. In conducting the public meeting the 
Presiding Officer will have the authority and discretion to ensure that 
the meeting proceeds in a fair and orderly manner. Generally, the public 
meeting will consist of opening and closing remarks by the Presiding 
Officer, a presentation by the protestant and a presentation by the 
applicant. An official transcript will be made of the proceedings and 
entered into the record. The conclusion of the public meeting normally 
marks the close of the public portion of the record on the application.
    (4) Notification of Board decision on the application. After a 
decision is made on the application, and the applicant is notified of 
the decision, staff will notify the protestant by telephone. This 
notification will be confirmed promptly in writing. As set forth in 
Sec. 262.3(k) of the Board's Rules of Procedure (12 CFR 262.3(k)) or 
Sec. 265.3 of the Board's Rules Regarding Delegation of Authority (12 
CFR 265.3), a party to the application may request reconsideration of 
the Board's order, or review of the Reserve Bank's decision.

[49 FR 5603, Feb. 14, 1984, as amended at 57 FR 41642, Sept. 11, 1992]