12 C.F.R. Subpart C—Special Rules
Title 12 - Banks and Banking
Source: 70 FR 10023, Mar. 2, 2005, unless otherwise noted.
The rules and procedures in subpart C of this part and those rules and procedures in subparts A and B of this part that are identified in subpart C of this part shall apply to any proceedings under section 10(a)(2)(D) of the HOLA (12 U.S.C. 1467a(a)(2)(D)) to determine for purposes of section 10 of the HOLA, other than subsections (c), (d), (f), (h)(2), (m), (n), (q) and (s), whether any company that owns at least one percent but no more than 10 percent of the outstanding shares of a savings association or savings and loan holding company directly or indirectly exercises a controlling influence over the management or policies of such savings association or savings and loan holding company. The definitions contained in §509.3 of this part shall apply to this subpart. (a) Commencement of proceedings. The Director commences a proceeding by issuing a notice and having it served on the respondent in the manner provided for service by the Director in §509.11 of this part; (b) Contents of notice. The notice must set forth: (1) The legal authority for the proceeding and for the Office's jurisdiction over the proceeding; (2) A statement of the matters of fact or law showing the Office is entitled to issue an Order finding, for purposes of section 10 of the HOLA, other than subsections (c), (d), (f), (h)(2), (m), (n), (q) and (s), the respondent to be directly or indirectly exercising a controlling influence over the management or policies of a savings association or savings and loan holding company; (3) A proposed Order; (4) A statement that the respondent must file an answer and, if it so desires, request a hearing within 20 days of service of the notice; and (5) The time and place of the hearing if one is properly requested by the respondent. (a) Content of answer. (1) An answer must specifically respond to each paragraph or allegation of fact contained in the notice and must admit, deny, or state that the party lacks sufficient information to admit or deny each allegation of fact. A statement of lack of information has the effect of a denial. Denials must fairly meet the substance of each allegation of fact denied; general denials are not permitted. When a respondent denies part of an allegation, that part must be denied and the remainder specifically admitted. Any allegation of fact in the notice which is not denied in the answer must be deemed admitted for purposes of the proceeding. A respondent is not required to respond to the portion of a notice that constitutes a prayer for relief or proposed Order. (2) If a respondent does not contest the allegations in a notice, the respondent may file an answer that contains only a statement that the respondent consents to the entry of the proposed Order. At any time thereafter, the proposed Order may be issued as a final Order. (b) Default. Failure of a respondent to file an answer within the time provided constitutes a waiver of its right to appear and contest the allegations in the notice. If a timely answer is not filed, a default Order may be entered. A respondent that believes that there was good cause for it to not file an answer within the time allowed may request that the Office exercise its discretion to vacate such a default Order. A default Order based upon a respondent's failure to answer is deemed to be a final Order issued upon consent. (a) (1) The Director shall preside at the hearing and enter the final decision of the agency, provided that no party seeks discovery or proffers any oral testimony; (2) Respondents shall provide two copies of any pleadings and other filings to the Office of the Chief Counsel, Business Transactions Division. The Office of the Chief Counsel, Business Transactions Division shall serve in the manner provided in §509.11 of this part, each respondent separately represented with a copy of any pleading or other filing made by the Office. (b) If any party seeks discovery or proffers any oral testimony, the procedures in subparts A and B of this part shall apply from that time until the conclusion of the proceeding.
Title 12: Banks and Banking
PART 509—RULES OF PRACTICE AND PROCEDURE IN ADJUDICATORY PROCEEDINGS
Subpart C—Special Rules
§ 509.200 Scope.
§ 509.201 Definitions.
§ 509.202 Commencement of proceedings and contents of notice.
§ 509.203 Answer, consequences of failure to answer, and consent.
§ 509.204 Hearing Procedure.
