Savings and Loan Holding Company - Exemption from Prohibited Service

Section 19 of the Federal Deposit Insurance Act and 12 C.F.R. Section 238

Who must file?

The Federal Deposit Insurance Act (FDI Act) and the Board’s Regulation LL - Savings and Loan Holding Companies (12 CFR Part 238) prohibit individuals who have been convicted of certain criminal offenses or who have agreed to enter into a pretrial diversion or similar program in connection with a prosecution for such criminal offenses from participating in the affairs of a savings and loan holding company (SLHC) or any of its subsidiaries without the written consent of the Board. Such an individual, or the SLHC with which the individual seeks to participate, may apply for an exemption from this prohibition. There is no regulatory requirement to file an exemption request.

Publication requirements--newspaper/Federal Register

There is no publication requirement associated with this filing type.

Required information

An exemption request to the Board may be filed in a letter, or by using the Federal Deposit Insurance Corporation (FDIC) form at https://www.fdic.gov/formsdocuments/f6710-07.pdf. A link to this form is also available at https://www.federalreserve.gov/apps/reportingforms/Report/Index/FR_LL-12.

Processing time frames

There are no regulatory processing time frames, but the Federal Reserve generally acts within 60 days unless the Federal Reserve notifies the applicant that the processing period is being extended.

Factors reviewed

Pursuant to section 19 of the FDI Act, the Board may provide an exemption to a prohibited person if such exemption is consistent with the purposes of section 19. In order for a prohibited person to participate in the conduct of the affairs of any SLHC in a manner described above, the SLHC or the individual must file with the Board, and the Board must approve an application seeking an exemption from the prohibitions of section 19 of the FDI Act and Subpart I of Regulation LL. The Board will use information provided by the applicant when considering an exemption request concerning a prohibited person. Such considerations will include, but are not limited to, whether the prohibited person would participate in the major policymaking functions of the SLHC or would threaten the safety and soundness of any subsidiary insured depository institution of the SLHC or the public confidence in the insured depository institution.

Consummation period

Not applicable.

Privacy Act Statement

Purposes

The FR LL-12 is used by persons who seek to become or remain institution-affiliated parties, including certain shareholders, directors, executive officers, employees, and agents of a covered company.

Authority

The solicitation and collection of this information, including a Social Security Number, is authorized by Section 19 of the Federal Deposit Insurance Act, which prohibits a covered person from holding certain relationships with a covered company without the consent of the Board. The Social Security Number provided may be used to conduct a background check on a covered person in order to evaluate whether the individual merits an exemption from section 19.

Effects of Nondisclosure

Provision of the requested information, including a Social Security Number, is voluntary. However, the failure to provide any requested information may result in the denial, disapproval, or delay in the processing of this application.

Routine Uses

The information you provide will be stored by the Board in the System of Records entitled BGFRS-37, “FRB–Electronic Applications.” All or part of the information may be disclosed outside of the Board as follows:

1. To the appropriate federal, state, local, foreign, or self-regulatory organization or agency responsible for investigating, prosecuting, enforcing, implementing, issuing, or carrying out a statute, rule, regulation, order, policy, or license if the information may be relevant to a potential violation of civil or criminal law, rule, regulation, order, policy, or license;

2. To a federal agency in the executive, legislative, or judicial branch of government, or to a Federal Reserve Bank, in connection with the hiring, retaining, or assigning of an employee, the issuance of a security clearance, the conducting of a security or suitability investigation of an individual, the classifying of jobs, the letting of a contract, the issuance of a license, grant, or other benefits by the receiving entity, or the lawful statutory, administrative, or investigative purpose of the receiving entity to the extent that the information is relevant and necessary to the receiving entity’s decision on the matter;

3. To a congressional office in response to an inquiry from the congressional office made at the request of the individual to whom the records pertain;

4. To the Department of Justice, a court, an adjudicative body or administrative tribunal, a party in litigation, or a witness if the Board (or in the case of an Office of Inspector General system, the Office of Inspector General) determines, in its sole discretion, that the information is relevant and necessary to the matter;

5. To contractors, agents, or others performing work on a contract, service, cooperative agreement, job, or other activity for the Board, and who have a need to access the information in the performance of their duties or activities for the Board;

6. To appropriate agencies, entities, and persons when: (i) the Board suspects or has confirmed that there has been a breach of the system of records; (ii) the Board has determined that as a result of the suspected or confirmed breach there is a risk of harm to individuals or the Board (including its information systems, programs, and operations), the federal government, or national security; and (iii) the disclosure made to such agencies, entities, and persons is reasonably necessary to assist in connection with the Board’s efforts to respond to the suspected or confirmed breach or to prevent, minimize, or remedy such harm;

7. To another federal agency or federal entity, when the Board determines that the information from the system of records is reasonably necessary to assist the recipient agency or entity in (i) responding to a suspected or confirmed breach, or (ii) preventing, minimizing, or remedying the risk of harm to individuals, the recipient agency or entity (including its information systems, programs, and operations), the federal government, or national security, resulting from a suspected or confirmed breach; and

8. To disclose certain information to other financial institution regulatory agencies pursuant to explicit information sharing agreements.