§ 508.11

Amendments of regulations without notice.

Any proposed amendment or rule may be adopted by the Board without compliance with the requirements of §§ 507.10 and 507.11, of this subchapter, and §§ 508.12 and 508.13, which involves any matter relating to Board management or personnel or to public property, loans, grants, benefits, or contracts, or which is deemed to apply to interpretative rules, general statements of policy, rules of Board organization, procedure, or practice, or unless all persons subject to any such proposed amendment or rule are named and either personally or otherwise have actual notice thereof in accordance with law, or in any situation in which the Board for good cause finds (and incorporates the findings and a brief statement of the reasons therefor in the amendments or rules issued) that notice and public procedure thereon are impracticable, unnecessary or contrary to the public interest.

[23 F.R. 9880, Dec. 23, 1958]

REGISTER, and such notice will include (a) a statement of the time, place, and nature of public rule making proceedings, (b) reference to the authority under which the amendment or rule is proposed, and (c) either the terms or substance of the proposed amendment or rule or a description of the subjects and issues involved. Notice of such proposed amendment or rule shall also be mailed to each member of the Federal Savings and Loan Advisory Council and to the president of each Federal Home Loan Bank.

(Secs. 5, 402, 403, 48 Stat. 132, as amended, 1256, 1257, as amended; 12 U.S.C. 1464, 1725, 1726) [29 F.R. 7417, June 9, 1964]

§ 508.13 Participation of interested persons in a proposed amendment or rule.

After publication in the FEDERAL REGISTER of general notice of a proposed amendment or rule as prescribed in § 508.12, interested persons may participate in the making of such a proposed amendment or rule through the submission of written data, views, or arguments thereon delivered within the time prescribed in such general notice to the Secretary to the Federal Home Loan Bank Board, 101 Indiana Avenue NW., Washington, D.C. 20552, and the time prescribed shall not be less than 15 days. Interested persons may also petition for the issuance, amendment, or repeal of an amendment or rule and deliver any such petition to the Secretary to the Board at the address given in this section.

(Secs. 5, 402, 403, 48 Stat. 132, as amended 1256, 1257, as amended; 12 U.S.C. 1464, 1725, 1726) [29 F.R. 7417, June 9, 1964]

§ 508.14 Effective dates of amendments and rules.

No substantive amendment or rule shall be effective less than 30 days after publication in the FEDERAL REGISTER except that this requirement shall not apply to (a) any substantive amendment or rule granting or recognizing exemption or relieving restriction, (b) interpretative rules and statements of policy, and (c) any substantive amendment or rule which the Board makes effective at an earlier date upon good cause found and published with such amendment or rule.

(Secs. 5, 402, 403, 48 Stat. 132, as amended, 1256, 1257, as amended; 12 U.S.C. 1464, 1725, 1726) [29 F.R. 7417, June 9, 1964]

AUTHORITY: The provisions of this Part 509 issued under secs. 6, 17, 47 Stat. 727, as amended, 736, as amended, secs. 5, 407, 48 Stat. 132, as amended; 12 U.S.C. 1426, 1437, 1464, 1730, Reorg. Plan No. 3 of 1947, 12 F.R. 4981, 3 CFR, 1943-1948 Comp., unless otherwise noted.

SOURCE: The provisions of this Part 509 appear at 23 F.R. 9880, Dec. 23, 1958, unless otherwise noted.

§ 509.1 Scope of regulations.

The provisions of this part shall govern hearings to determine whether cause exists, under the provisions of section 6(i) of the Federal Home Loan Bank Act, as amended (12 U.S.C. 1426(i)), for the removal of any member of a Federal Home Loan Bank from membership or for depriving any nonmember borrower of the privilege of obtaining advances from a Federal Home Loan Bank; hearings under the provisions of section 5(d) of the Home Owners' Loan Act of 1933, as amended (12 U.S.C. 1464(d)), involving alleged violations of law or regulation by a Federal savings and loan association and upon the existence of grounds for the appointment of a conservator or receiver for a Federal savings and loan association; and hearings to determine whether cause exists for the termination of the insured status of any institution insured by the Federal Savings and Loan Insurance Corporation, as provided in section 407 of the National Housing Act, as amended (12 U.S.C. 1730). The provisions of this part shall also govern hearings for either or both of the following purposes: (a) The affording of the opportunity for hearing referred to in paragraph (3) of subsection (a) of section 408 of the National Housing Act, as amended (12 U.S.C. 1730a (a) (3) as to whether a company directly or indirectly

exercises a controlling influence over the managemnt and policies of an institution or other organization and (b) the affording of the opportunity for hearing referred to in paragraph (2) of subsection (b) of said section 408 (12 U.S.C. 1730a(b) (2)) as to whether, at the time of the approval of an application of an institution for insurance as therein set forth, such institution was controlled by a company which also controlled another insured institution, or another applicant for insurance if the application of such other applicant was approved. For the purposes of the hearings referred to in the sentence next preceding, the term "institution", as used in this part exclusive of this section, shall include a company referred to in said sentence. (Interpret or apply sec. 408, 48 Stat. 1261, as added by 73 Stat. 691, as amended; 12 U.S.C. 1730a) [26 F.R. 3605, Apr. 27, 1961]

§ 509.2 Service, filing of papers, etc.

(a) Proof of service. All documents or papers required to be served by the Board on the institution involved shall be served by the Secretary unless some other person shall be designated for such purpose by the Board. Such service, shall be made by personal service or by registered mail addressed to the last known address as shown on the records of the Board, on the attorney or representative of record of the institution involved, provided that if there is no attorney or representative of record, such service shall be made upon the institution involved at the last known address, as shown on the records of the Board. The term Secretary as used in this part shall mean the Secretary and any Assistant Secretary to the Board.

(b) Filing of papers. All material required to be filed with the Board or the Secretary to the Federal Home Loan Bank Board in any proceedings shall be filed with the Secretary, Federal Home Loan Bank Board, Washington 25, D.C. Any such papers may be sent to the Secretary by mail or express but must be received by the Secretary in the office of the Board in Washington, D.C., or be postmarked, within the time limited for the particular filing.

(c) Form. All papers filed under this part must include at the head thereof or on the title page, the name of the Board, the name of the institution against which such action is being brought, the number of the resolution

giving notice of the hearing, and the subject matter of the particular paper. All such papers shall be typewritten, mimeographed, or printed, and must be signed in the case of the Board by Counsel for the Board or, in the case of the institution involved, by such institution, its duly authorized agent or attorney, and must show the address of the signer. (d) Copies. Unless otherwise specifically provided in the notice of hearing, an original and 7 copies of all documents and papers required or permitted to be filed or served under this part, except the transcript of testimony and exhibits, shall be furnished to the Secretary.

(e) Computing time. In computing any period of time prescribed or allowed by this part, the date of the act, event or default from which the designated period of time begins to run is not to be included. The last day so computed is to be included, unless it is a Staturday, Sunday or legal holiday in the District of Columbia, in which event the period shall run until the end of the next day which is neither a Saturday, Sunday nor legal holiday. Intermediate Saturdays, Sundays and legal holidays shall be included in the computation unless the time within which the act is to be performed is 10 days or less in which event Saturdays, Sundays, and legal holidays shall not be included. Half holidays shall be considered as other days and not as holidays.

Whenever a hearing is ordered by the Board in any proceedings a notice of hearing shall be given by the Secretary to the Board to the institution involved. Such notice shall designate the time and place of the hearing and the nature thereof, shall specify the charges, and shall be served by delivering the same personally or by registered mail to the home office of the institution involved, at its last known address as shown on the records of the Board. No hearing shall be held upon less than 30 days' notice except that hearings held pursuant to section 5(d) of the Home Owners' Loan Act of 1933, as amended, may be held upon not less than 20 days' notice.

§ 509.4 Attendance at hearings.

All hearings shall be private and shall be attended only by the institution involved and its representatitve or counsel,

representatives and counsel of the Board, witnesses, and other persons having an official interest in the proceedings: Provided, however, That on the written request of the institution, or counsel for the Board, or on its own motion, the Board may permit other persons to attend any such hearing or may order the hearing to be public.

§ 509.5 Conduct of hearings.

Each hearing shall be held before a Trial Examiner, one or more Members of the Board, or the Board (referred to in this part as Presiding Officer, which term shall be construed to include whichever of the three shall preside at a hearing hereunder, except as otherwise specified in the text), as determined by the Board. The Presiding Officer who shall be designated to conduct any hearing shall have complete charge of such hearing; have authority to permit the examination of witnesses, to receive evidence, rule upon the admission of evidence, allow and deny motions, except that in the case of any hearing which is held before a Presiding Officer other than the Board, such Presiding Officer shall not have power to decide any motion to dismiss the proceedings or other motion which results in final determination of the merits of the proceedings; and to adjourn such hearing from time to time and, as permitted by law or agreed to by the parties. from place to place. The Presiding Officer shall have power to administer oaths and affirmations and to issue subpenas and subpenas duces tecum, as authorized by law, and shall issue such at the request of any interested party. The Presiding Officer may hold conferences before or during the hearing for the settlement or simplification of issues by consent of the parties. Without limitation on the foregoing the Presiding Officer shall, subject to the provisions of this part have all the authority of section 7 (B) of the Administrative Procedure Act. § 509.6

Rules of evidence.

Any party to the hearing shall have the right to present his case or defense by oral and documentary evidence, to submit rebuttal evidence and conduct such cross-examination as may be required for a clear and true disclosure of the facts. Immaterial, irrelevant or unduly repetitious evidence shall be excluded.

Objections to the admission or

exclusion of evidence shall state the grounds of objection relied upon but no argument thereon shall be permitted, except as may be ordered or requested by the Presiding Officer. Rulings on such objections and all other matters shall be part of the transcript. Failure timely to object to the admission or exclusion of evidence or to any ruling shall be considered a waiver of such objection. § 509.7 Transcript of testimony.

Hearings shall be recorded and transcripts will be made available to the institution involved upon payment therefor at the reasonable cost thereof and, in the event the hearing is public, or the Board shall so authorize, shall be furnished on similar payment to other persons. A copy of the transcript of the testimony taken at any hearing, duly certified by the Reporter, together with all exhibits and any briefs or memoranda of law theretofore filed in the cause shall be filed with the Secretary to the Board. The Secretary shall by registered mail notify the institution of such filing. The Presiding Officer shall have authority to rule upon motions to correct the record. § 509.8 Proposed findings and conclusions and recommended decisions. (a) Proposed findings and conclusions by parties. Each party to a hearing shall have a period of 15 days or such further time as the Presiding Officer for good cause shall determine, running from the date of the notice of the filing of the transcript to file with the Secretary, for submission to the Presiding Officer of proposed findings and conclusions, which may be accompanied by a brief or memorandum in support thereof. A copy of all such material shall be delivered by the Secretary to the Presiding Officer and to the other party to the proceedings, and all such proposals, briefs and memoranda shall become a part of the record.

(b) Recommended decision and filing of record. The Presiding Officer, unless such Presiding Officer shall be the Board, shall, within 15 days after the expiration

of the time allowed for the filing of proposed findings and conclusions or within such further time as the Board for good cause shall determine, file with the Secretary and certify to the Board for decision the entire record of the hearing, which shall include his findings and conclusions and his recommended decision, the transcript, exhibits (including on request of the parties concerned any exhibits excluded from evidence or tenders of proof), exceptions, rulings, and all briefs and memoranda filed in connection with the hearing.

§ 509.9 Exceptions; filing of briefs.

Promptly upon the filing of the record the Secretary shall serve on the institution involved a notice of such filing together with a copy of the Presiding Officer's findings, conclusions and recommended decision. Each party shall have a period of 15 days from the date of such notice, or such further time as the Board for good cause shall determine, to file with the Secretary exceptions to the findings, conclusions, and recommended decision or any part thereof, or to the failure to make any finding, conclusion, or recommendation, or to the admission or exclusion of evidence, or other ruling of the Presiding Officer, supported by such brief as may appear advisable. A copy of any exceptions filed by counsel for the Board and of any brief filed by such counsel shall promptly be served upon the institution. A reply brief may

be filed with the Secretary by counsel for the Board within ten days after the filing of the institution's brief, and a reply brief may be filed with the Secretary by the institution within ten days after the date of service by the Secretary upon the institution of a copy of the brief of counsel for the Board. Further briefs may be filed only with permission of the Board. § 509.10 Decision of the Board.

A copy of the decision of the Board shall be furnished by the Secretary to the institution involved and if directed by the Board to any appropriate governmental supervisory authority.