12 C.F.R. Subpart H—Change in Bank Control
Title 12 - Banks and Banking
(a) Section 7(j) of the FDIA (12 U.S.C. 1817(j)) provides that no person may acquire control of an insured depository institution unless the appropriate Federal bank regulatory agency has been given prior written notice of the proposed acquisition. If, after investigating and soliciting comment on the proposed acquisition, the agency decides that the acquisition should be disapproved, the agency shall mail a written notification to the proposed acquiring person in writing within three days of the decision. The party can then request an agency hearing on the proposed acquisition. The OCC's procedures for reviewing notices of proposed acquisitions in change-in-control proceedings are set forth in §5.50 of this chapter. (b) Unless otherwise provided in this subpart, the rules in subpart A of this part set forth the procedures applicable to requests for OCC hearings. [56 FR 38028, Aug. 9, 1991, as amended at 61 FR 20337, May 6, 1996] (a) Notice of disapproval. The OCC's written disapproval of a proposed acquisition of control of a national bank must: (1) Contain a statement of the basis for the disapproval; and (2) Indicate that the filer may request a hearing. (b) Hearing request. Following receipt of a notice of disapproval, a filer may request a hearing on the proposed acquisition. A hearing request must: (1) Be in writing; and (2) Be filed with the Hearing Clerk of the OCC within ten days after service on the filer of the notice of disapproval. If a filer fails to request a hearing with a timely written request, the notice of disapproval constitutes a final and unappealable order. (c) Hearing order. Following receipt of a hearing request, the Comptroller shall issue, within 20 days, an order that sets forth: (1) The legal authority for the proceeding and for the OCC's jurisdiction over the proceeding; (2) The matters of fact or law upon which the disapproval is based; and (3) The requirement for filing an answer to the hearing order with OFIA within 20 days after service of the hearing order. (d) Answer. An answer to a hearing order must specifically deny those portions of the order that are disputed. Those portions of the order that the filer does not specifically deny are deemed admitted by the filer. Any hearing under this subpart is limited to those portions of the order that are specifically denied. (e) Effect of failure to answer. Failure of a filer to file an answer within 20 days after service of the hearing order constitutes a waiver of the filer's right to appear and contest the allegations in the hearing order. If a filer does not file a timely answer, enforcement counsel may file a motion for entry of an order of default. Upon a finding that no good cause has been shown for the failure to file a timely answer, the administrative law judge shall file with the Comptroller a recommended decision containing the findings and the relief sought in the hearing order. Any final order issued by the Comptroller based upon a filer's failure to answer is deemed to be an order issued upon consent and is a final and unappealable order. [61 FR 20337, May 6, 1996]
Title 12: Banks and Banking
PART 19—RULES OF PRACTICE AND PROCEDURE
Subpart H—Change in Bank Control
§ 19.160 Scope.
§ 19.161 Notice of disapproval and hearing initiation.
