48722

request for confidential treatment should be afforded confidential treatment.

(ix) The amount of time after the consummation of the proposed acquisition for which the information should remain confidential and a justification thereof.

(x) Such additional facts and such legal and other authorities as the requesting person may consider appropriate.

(8) Supervisory ccses. The provisions of paragraphs (d), (e) and (f) of this section may be waived by the Corporation in connection with a transaction approved by the Corporation for supervisory reasons.

(b) Notification of State supervisor. Upon receiving a notice relating to the acquisition of control of a statechartered insured institution, the Corporation shall forward a copy of the notice to the appropriate state savings and loan association supervisory agency, and shall allow 30 days within which the views and recommendations of such State supervisory agency may be submitted. The Corporation shall give due consideration to the views and recommendations of such State agency in determining whether to disapprove any proposed acquisition. Notwithstanding the provisions of this paragraph, if the Corporation determines that it must act immediately upon any notice of a proposed acquisition in order to prevent the probable failure of the institution involved in the proposed acquisition, the Corporation may dispense with the requirement of this paragraph or, if a copy of the notice is forwarded to the State supervisory agency, the Corporation may request that the views and recommendations of such State supervisory agency be submitted immediately in any form or by any means acceptable to the Corporation.

§ 574.7 Determination by the corporation. (a) Acquisition by a company. The Corporation shall approve an application by any company other than a savings and loan holding company to acquire control of one insured institution unless it determines that the criteria set forth in paragraph (c) of this section are not met.

(b) Acquisition by a savings and loan holding company. The Corporation shall not approve an acquisition by a savings and loan holding company to acquire control of an insured institution, or by any other company to acquire control of more than one insured institution. except in accordance with paragraph (c) of this section. Before approving any such acquisition, the Corporation or its

delegate shall request from the Attorney General and consider any report rendered within 30 days of such request on the competitive factors involved. (c) Application criteria. The Corporation may deny an application by a company to acquire an insured institution if the Corporation finds that the financial and manager:al resources and future prospects of the company and institution involved would be detrimental to the institution or the insurance risk of the Corporation, or if the acquiror fails or refuses to furnish information requested by the Corporation or its delegate. In connection with applications filed pursuant to § 574.6(a)(2) and (3) of this Part, the Corporation will also consider the convenience and needs of the community to be served. Moreover, the Corporation shall not approve any proposed acquisition:

(1) Which would result in a monopoly, or which would be in furtherance of any combination or conspiracy to monopolize or to attempt to monopolize the savings and loan business in any part of the United States, or

(2) The effect of which on any section of the country may be substantially to lessen competition, or tend to create a monopoly, or which in any other manner would be in restraint of trade, unless the Corporation finds that the

anticompetitive effects of the proposed acquisition are clearly outweighed in the public interest by the probable effect of the acquisition in meeting the convenience and needs of the community to be served.

(d) Notice criteria. In making its determination whether to disapprove a notice. the Corporation may disapprove any proposed acquisition, if the Corporation determines that:

(1) The proposed acquisition of control would result in a monopoly or would be in furtherance of any combination or conspiracy to monopolize or to attempt to monopolize the savings and loan business in any part of the United States:

(2) The effect of the proposed acquisition of control in any section of the country may be substantially to lessen competition or to tend to create a monopoly or the proposed acquisition of control would in any other manner be in restraint of trade, and the anticompetitive effects of the proposed acquisition of control are not clearly outweighed in the public interest by the probable effect of the transaction in meeting the convenience and needs of the community to be served:

(3) The financial condition of the acquiring person is such as might jeopardize the financial stability of the

institution or prejudice the interests of the depositors of the institution.

(4) The competence, experience, or integrity of the acquiring person or any of the proposed management personnel indicates that it would not be in the interests of the depositors of the institution, the Corporation, or the public to permit such person to control the institution: or

(5) The acquiring person fails or refuses to furnish information requested by the Corporation or its delegate.

(e) Failure to disapprove a notice. E. upon expiration of the 60-day review period of any notice deemed to be sufficient filed pursuant to § 574.6(c), or extension thereof, the Corporation has failed to disapprove a proposed acquisition may take place: Provided that it is consummated within one year and in accordance with the term and representations in the notice and that there is no material change in circumstances prior to the acquisition (Disapproval of a notice. Within three business days after its decision to disapprove a notice, the Corporation or its delegate shall notify the acquiror in writing of the disapproval. Such notification shall include a statement of the grounds therefor and a statement that the acquiror within 20 days of the receipt of such notice of disapproval may, if the disapproval was issued by the Principal Supervisory Agent pursuant to delegated authority, request review of such disapproval by the Corporation pursuant to § 574.8(a){4), or. if such review is denied, or the disapproval issued by the Corporation. may within 10 days of receipt of the notice of disapproval, or notice of the Corporation's decision not to review the denial, request an administrative hearing under paragraph (4) of the Control Act.

(8) Presumptive disqualifiers.-1) Integrity factors. The following factors shall give rise to a rebuttable presumption that an acquiror may fail to satisfy the managerial resources and future prospects tests of paragraph (c) of this section or the integrity test of paragraph (d)(4) of this section: (i) During the 10-year period immediately preceding filing of the application or notice, criminal, civil or administrative judgments, consents or orders, and any indictments, formal investigations, examinations, or civil or administrative proceedings (excluding routine or customary audits, inspections and investigations) that terminated in any agreements, undertakings, consents or orders, issued against, entered into by, or involving the acquiror or affiliates of the acquiror by any federal or state

court, any department, agency, or

commission of the U.S. Government, any state or municipality, any Federal Home Loan Bank, any self-regulatory trade or professional organization, or any foreign government or governmental entity. which involve:

(A) Fraud, moral turpitude. dishonesty, breach of trust or fiduciary duties, organized crime or racketeering. (B) Violation of securities or commodities laws or regulations;

(C) Violation of depository institution laws or regulations:

(D) Violation of housing authority laws or regulations:

(E) Violation of the rules, regulations. codes of conduct or ethics of a selfregulatory trade or professional organization;

(ii) Denial, or withdrawal after receipt of formal or informal notice of an intent to deny, be the acquiror or affiliates of the acquiror, of

(A) Any application relating to the organization of a financial institution. (B) an application to acquire any financial institution or holding company thereof under the Savings and Loan Holding Company Act or the Bank Holding Company Act or otherwise. (C) a notice relating to a change in control of any of the foregoing under the Change in Savings and Loan Control Act or the Change in Bank Control Act; or (D) an application or notice under a state holding company or change in control

statute.

(iii) The acquiror or affiliates of the acquiror were placed in receivership or conservatorship during the preceding 10 years or any management official of the acquiror was a management official or director of a company or insured institution which entered receivership or conservatorship, was placed in a management consigment program, or was liquidated during his tenure or within two years thereafter.

(iv) Felony conviction of the acquiror. an affiliate of the acquiror or a management official of the acquiror or an affiliate of the acquiror:

(v) Knowingly making any written or oral statement to the Corporation (or its delegate) in connection with an application. notice or other filing under this Part that is false or misleading with respect to a material fact or omits to state material fact with respect to information furnished or requested in connection with such an application. notice or other filing:

(vi) Acquisition and retention at the time of submission of an application or notice. of stock in the insured institution by the acquiror in violation of § 574.3 or its predecessor sections.

(2) Financial factors. The following shall give rise to a rebuttable presumption that an acquiror may fail to satisfy the financial-resources and future-prospects tests of paragraph (c) of this section, or the financial condition test of paragraph (d)(3) of this section:

(i) Liability for amounts of debt which, in the opinion of the Corporation, create excessive risks of default and pressure on the insured institution to be acquired: (ii) Failure to furnish a business plan or furnishing a business plan projecting activities which are inconsistent with economical home financing.

§ 574.8 Delegations of authority. (a) Actions by the Principal Supervisory Agent.-(1) Approval. The Principal Supervisory Agent is authorized to grant approval of any application filed under § 574.3(a) of this Part or issue a statement of intent not to disapprove a notice filed under

574.3(b) of this Part: Provided, that the following conditions are met:

(i) Neither the acquiror nor the insured institution to be acquired, or any affiliate of either. is required under the Securities Exchange Act of 1934. 15 U.S.C. 78a-78jj, and Part 563d of this Chapter, to make a filing with the Board under any of the following regulations in connection with the transaction in which the acquisition would occur.

(A) Rule 13e-3, 17 CFR 240.13e-3 (for "going private" transactions);

(B) Rule 13e-4. 17 CFR 240.13e-4 (for tender offers by an issuer for its own stock):

(C) Regulation 14A, 17 CFR 240.14a-1 through 240.14a-101 (for solicitation of proxies):

(D) Regulation 14C, 17 CFR 240.14c-1 through 240.14c-101 (for distribution of information statements in lieu of solicitation of proxies): or

(E) Regulations 14D or 14E, 17 CFR 240.14d-1 through 240.14f-1 (for tender offers):

(ii) The acquisition is not opposed by the institution to be acquired or contested by another prospective acquiror:

(iii) The application or notice does not raise a significant issue of law or policy: and

(iv) Where the acquiror is a company. the company is willing to agree in writing that:

(A) It will ensure that its subsidiary insured institution shall have, at the end of each calendar quarter, net worth at least equal to the amount that may be required pursuant to § 563.13 of this Chapter, and that where necessary, the company will infuse additional equity capital in a form satisfactory to the Supervisory Agent and sufficient to

effect compliance with such undertaking: Provided, that where a company proposes to acquire less than 50 per cent of the voting stock of an insured institution. such company agrees to the foregoing net worth maintenance undertaking on a pro rata basis according to its percentage ownership of the insured institution's voting stock: and

(B) The company will service its deb: without receiving dividends from the acquired insured institution subsidiary in excess of 50 percent of the subsidiary's net income per year on a cumulative basis, and will not receive dividends from the insured institution in excess of that amount. unless waived by the Supervisory Agent (1) on supervisory grounds; (2) in cases where the assets of the institution to be acquired will constitute less than five percent of the assets of the insured subsidiary institution(s) of the acquinng company for acquisitions by savings and loan holding companies that have not agreed to restrict the dividends received from, or guarantee the net worth of its subsidiary insured institution(s).

(2) Denial. The Principal Supervisory Agent is authorized to disapprove any application or notice that he is authorized to approve or for which he is authorized to issue a statement of intent not to disapprove under paragraph (a){1) of this section. Such disapproval sha!! be in writing, shall set forth with specificity the basis for the denial or disapproval and shall be furnished promptly to the acquiror.

(3) Other actions. For notices filed pursuant to § 574.3(b) of this Part, and applications filed pursuant to § 574.3(a) of this Part, which may be approved under paragraph (a) of this section, the Principal Supervisory Agent may take the following actions:

(i) Any action regarding publication provided for in § 574.6(d) of this Part: (ii) A determination that an application or notice is sufficient or requiring additional information under 574.6(c)(1) of this Part:

(iii) Extensions of the review period under § 574.6(c)(3)(i) of this Part for up to 30 days:

(iv) A grant or denial of a request for waiver of certified financial statements for an acquiror's proprietary interests required in connection with notice filed under § 574.3(b) of this Part: Provided, that the acquiror providers the following substitute information: (A) A statement supporting the acquiror's contention that production of such certified financial statements is unduly burdensome: (B) tables setting forth (1) the acquiror's percent of interest in the insured

institution to be acquired, the amount of investment in the insured institution and the investment as a percentage of the acquiror's net worth and (2) the amount of each entry as a percentage of the acquiror's total assets, net worth and gross income; (3) available unaudited financial statements for each entity for which a waiver has been requested which include at least three years of statements for each entity of operations and interim statements within 90 days of the most recently filed amendment, and 2 years of statements of condition and interim statements within 90 days of the most recently filed amendments: (4) a letter from an independent accountant indicating changes that would be required to reconcile the financial statements with ones prepared on a basis that would be consistent with generally accepted accounting principles; and (5) the lastest available Federal income tax returns for each entity for the immediately preceding two taxable years.

(v) Notification of the state supervisory agent pursuant to § 574.6(h) of this Part.

(4) Appeal. Denial of an application or notice by a Principal Supervisory Agent pursuant to paragraph (a) of this section may be appealed to the Corporation under the following procedures: Within 20 days after notification of the Principal Supervisory Agent's decision as provided herein, the acquiror must notify the Office of the Secretariat of the acquiror's desire to appeal the Principal Supervisory agent's decision. Two copies of such request for review must be submitted to the Office of the Secretariat. Federal Home Loan Bank Board, Washington. D.C. 20552, with one copy indicated "Attention: Director. Office of Examinations and Supervision" and a second copy indicated "Attention: Office of General Counsel, Enforcement Division," with one copy to the appropriate Principal Supervisory Agent. The request for review must identify the party seeking review and describe with specificity the action taken for which review is sought and the reasons why the Principal Supervisory Agent's denial or notice of disapproval is contended to be erroneous. If an applicant does not file an appeal within the time permitted under this section. any objection to the initial determination by the applicant is waived. A timely appeal filed with the Secretariat in accordance with the provisions of this section shall be mandatory for securing judicial review of an initial determination.

(b) Joint actions by the Director of the Office of Examinations and Supervision

and the General Counsel. The Director of the Office of Examinations and Supervision with the concurrence of the General Counsel or their respective designees are authorized to take the following actions:

(1) Approve any application or issue notice of intent not to disapprove any notice (i) which does not raise a significant issue of law or policy. including approval or issuance of notice of intent not to disapprove applications or notices that are opposed by the insured institution to be acquired or contested by another prospective acquiror, and

(ii) which does not involve net worth maintenance or dividend conditions that fail to conform to paragraph (a)(1)(iv) of this section:

(2) Decide whether a determination of control under § 574.4(b) of this Part or a presumption of acting in concert under

574.4(d) of this Part has been rebutted; (3) With regard to notices filed under § 574.3(b) of this Part, to acquire control of insured institutions which cannot be approved under paragraph (a) of this

section:

(i) All actions regarding publication required or permitted by § 574.6(d) of this Part:

(ii) Any other action which would otherwise be delegated to the Principal Supervisory Agent pursuant to paragraphs (a) (1) and (3) of this section: (4) Grant waivers of certified financial statements for an acquiror's proprietary interests in connection with notices filed under § 574.3(b) of this Part which cannot be approved under paragraph (a) of this section.

(5) Notify the state supervisory agent pursuant to § 574.6(b) of this Part.

(c) Sole authority in the Corporation. The Corporation alone may:

(1) Approve or deny any applications or determine whether to disapprove notices which are not delegated:

(2) In addition to any other remedies available to the Corporation, assess a civil penalty under paragraph (16) of the Control Act for any person who willfully violates any provision of the Control Act, or any regulation or order issued by the Corporation pursuant thereto, of not more than $10.000 per day for each day during which the violation continues:

(i) By giving written notice of the basis for the violation, the amount of the proposed civil penalty, and an opportunity for the person to submit data, views, and arguments within 20 days; and

(ii) By giving due consideration to the appropriateness of the penalty with respect to each of the factors specified in paragraph (16) of the Control Act. 12 U.S.C. 1730(q)(16), and issuing to the

person. within 30 days of the expiration of the period provided to make a submission, a written notice of the Corporation's order of assessment which must be paid within 10 days. unless otherwise agreed to, or the Corporation may bring an action to collect the assessed penalty.

(3) In addition to any other remedies available to the Corporation, assess a civil penalty of up to $1.000 per day for each day during which the violation continues under section 408(j) of the Holding Company Act. 12 U.S.C. 1730a(j). for any company that violates or any person who participates in a violation of the Holding Compeny Act or any regulation or order issued pursuant thereto. As used in this paragraph, the term "violates" includes, without limitation, any action (alone or with another or others) for or toward causing. bringing about. participating in. counseling, or aiding and abetting a violation:

(4) Cause the review period to commence again after a determination of sufficiency has been made under 574.6(c)(2) of this Part, or extend the review period pursuant to

574.6(c)(3)(ii) of this Part.

(5) Grant waivers under § 574.6(c}{5}. SUBCHAPTER F-SAVINGS AND LOAN HOLDING COMPANIES

PART 584-REGULATED ACTIVITIES
5. The authority citation for Part 584
continues to read as follows:
Authority: Sec. 408, 82 Stat. 5 (12 U.S.C.
1730a) unless otherwise noted.

6. Revise § 584.4 as follows:

§ 584.4 Prohibited acquisitions. No savings and loan holding company, directly or indirectly, or through one or more transactions, shall:

(a) Acquire by purchase or otherwise any of the voting stock or shares of an insured institution not a subsidiary, or of a savings and loan holding company not a subsidiary, and in addition, in the case of a multiple savings and loan holding company, acquire or retain more than five percent of the voting shares of any company becoming a savings and loan holding company for more than one year after that and which is not a subsidiary but is engaged in any business activity other than those specified in of

§ 584.2(b) or § 584.2-1(b); or

(b) Acquire control of an uninsured institution or retain, for more than one year after other than an insured institution or holding company thereof. the date any insured institution subsidiary becomes uninsured, control of such institution.

SUMMARY: The Federal Home Loan Bank Board ("Board") is amending its regulations which delineate the authority of its Principal Supervisory Agents ("PSAs") to approve applications involving mergers, consolidations, bulk transfers and other transfers of assets and liabilities, of thrift institutions whose deposits are insured by the Federal Savings and Loan Insurance Corporation ("Corporation") and federally-chartered savings banks whose deposits are insured by the Federal Deposit Insurance Corporation ("FDIC"). The amendments are designed to facilitate expeditious disposition of such applications by significantly expanding the authority delegated to the Principal Supervisory Agents to approve, as well as to deny.

applications. A new delegation to the Board's Washington staff of the transactions which fall outside of the authority delegated to the PSAs will also improve the ameliness of the Board's application procedures. In addition, the Bound has issued a final rule delegating to the PSAs the authority to charter certain interim institutions which are used solely to facilitate other transactions in order to further expedite applications processing. Finally, the Board is amending and simplifying its rules regarding the rights of shareholders to an appraisal of their

shares in connection with certain types of mergers and consolidations. EFFECTIVE DATE: December 23, 1985. FOR FURTHER INFORMATION CONTACT:

R. Penfield Starke. Attorney (202-3776453); Laura Patriarca, Deputy Director (202-377-6411): Julie L. Williams. Associate General Counsel, Director (202-377-8459): Corporate and Securities Division, Office of General Counsel. Federal Home Loan Bank Board, 1700 C Street, NW., Washington, D.C. 20552 SUPPLEMENTARY INFORMATION: By Board Resolution No. 85-288b, dated April 17. 1985, 50 FR (April 25, 1985), the Board proposed to amend its regulations delegating authority to its Principal Supervisory Agents to approve certain mergers, consolidations and bulk purchases or transfers of assets (collectively referred to as "mergers"). as well as other transfers of assets and liabilities, of insured institutions. Mergers involving federally-chartered savings and loan associations and savings banks ("federal associations"} are subject to approval by the Board. 12 CFR 546.2. 552.13 (1985). Transactions that result in an increase in the insurable accounts of an institution whose deposits are insured by the Corporation ("tasured institutions") are also subject to approval by the Board, as operating head of the Corporation. 12 CFR 583.22 (1985).

Under the Board's current regulations, certain mergers and increases in insurable accounts are deemed approved if no objection has been raised by the Principal Supervisory Agent (ie, the president of the Federal Home Loan Bank of which both the institutions are members) within 30 days after filing a completed merger application. An application qualifies for automatic approval unless any of the following circumstances is present:

(1) The resulting association requests the granting of supervisory forbearances:

(2) The principal Supervisory Agent recommends the imposition of nonstandard conditions prior to approving the merger.

(3) The application has been substantially protested:

(4) The Principal Supervisory Agent raises objections to the merger,

(5) The resulting association would be one of the 3 largest depository institutions competing in the relevant geographic area, where before the merger there were 5 or fewer depository institutions, the resulting association would have 25 percent or more of the total deposits held by depository institutions in the relevant geographic area, and the share of total deposits

48725

would have increased by 5 percent or

more:

(6) The resulting association would be one of the 2 largest depository institutions competing in the relevant geographic area where before the merger there were 8 to 11 depository institutions, the resulting association would have 30 percent or more of the total deposits held by depository institutions in the relevant geographic area, and the share of total deposits would have increased by 10 percent or

more:

(7) The resulting association would be One of the 2 largest depository institutions competing in the relevant geographic area where before the merger there were 12 or more depository institutions, the resulting association would have 35 percent or more of the total deposits held by depository institutions in the relevant geographic area, and the share of total deposits would have increased by 15 percent or

more:

(8) The Herfindahl-Hirschman Index ("HHI") in the relevant geographic area is more than 1800 before the merger, and the increase in the HHI caused by the merger would be 50 or more:

(9) In a merger involving potential competition, the Principal Supervisory Agent determines that the acquiring association is one of 3 or fewer potential entrants into the relevant geographic

area;

(10) Both the acquiring and an acquired association have assets of $1 billion or more:

(11) The association that will be the resulting association (other than an association that is meither insured by the Corporation nor chartered by the Board) in the merger has a composite Community Reinvestment Act rating of less than satisfactory, or is otherwise seriously deficient with respect to the Board's nondiscrimination regulations and the deficiencies have not been resolved to the satisfaction of the Principal Supervisory Agent,

(12) The resulting association's (other than an association that is neither insured by the Federal Savings and Loan Insurance Corporation nor chartered by the Board) net worth would not at least equal the Board's regulatory net-worth requirements. Where goodwill has been included in the resulting association's assets, the applicant must submit an opinion of a certified public accountant. satisfactory to the Principal Supervisory Agent, that its use and value are appropriate under, and accounted for, by generally accepted accounting principles. For purposes of this provision. in calculating whether the net

6316

P.O. Box 56527. Peachtree Center
Station, Atlanta. Georgia 30343.

By the Federal Home Loan Bank Board. Nadine Y. Penn.

Acting Secretary.

[FR Doc. 86-3815 Filed 2-20-86. 8:45 am)

BILLING CODE 6720-01-M

[No. 86-90]

Privacy Act of 1974; New System of Records

Dated. February 3. 1986

AGENCY: Federal Home Loan Bank
Board.

ACTION: Notice of proposed new system of records.

SUMMARY: Pursuant to the requirements of the Privacy Act of 1974 (5 U.S.C. 552a). the Federal Home Loan Bank Board ("Board") is notifying the public of its proposal to establish a new system of records in order to collect information on known or suspected criminal violations and enforcement actions taken against persons in connection with the operation of financial institutions, their holding companies or service corporations, as well as changeof-control applications filed by, and other significant business transactions with. individuals concerning institutions the accounts of which are insured by the Federal Savings and Loan Insurance Corporation (Corporation" or "FSLIC"). DATE: Comments must be received by March 24. 1986.

ADDRESS: Send comments to Director, Information Services Section. Office of the Secretariat. Federal Home Loan Bank Board. 1700 G Street. NW.. Washington, DC 20552. Comments will be available for public inspection at this address.

FOR FURTHER INFORMATION CONTACT. John Downing. Attorney. (202) 377-6434 or Rosemary Stewart. Director. (202) 377-6437. Office of Enforcement, at the above address.

Authority: 5 U.S.C. 552a

FHLBB-29

SYSTEM NAME:

Confidential Individual Information System.

SYSTEM LOCATION:

Federal Home Loan Bank Board, 1700 G Street, NW.. Washington, DC 20552.

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:

These records may contain information concerning individuals who have filed notices of intention to acquire

control of an insured institution, controlling persons of companies that have filed applications to acquire control of an insured institution. organizers of institutions seeking FSLIC insurance of accounts or federal charters, individuals who have been the subject of administrative enforcement actions or other civil actions by any agency with authority to supervise or regulate federally insured financial institutions, those who have been named in criminal referrals by such agencies or by federally insured institutions or have been referred to professional societies, licensing authorities or ethics committees for disciplinary purposes, individuals identified as the subjects of criminal investigations by the Department of Justice or state law enforcement authorities in connection with the operation of federally insured financial institutions, and persons engaging in significant business transactions with FSLIC-insured institutions. This system also contains the identity of the custodian of any documents describing the specific event causing entry into the system.

CATEGORIES OF RECORDS IN THE SYSTEM:

The records identify the individual involved and his relationship to the institution, service corporation or holding company; the event causing entry of information into the system (e.g.. a change-of-control filing, an enforcement action, a criminal referral naming an individual or a referral of information to a professional group for disciplinary action, or receipt of information concerning a criminal or civil violation involving an insured institution); any regulatory or judicial action taken as a result; and the location and nature of any additional records concerning the specific event.

AUTHORITY FOR MAINTENANCE OF THE
SYSTEM:

12 U.S.C. 1464 and 1730.

ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING THE CATEGORIES OF USERS AND THE PURPOSES OF SUCH USES:

(a) To provide the Board's Office of Examinations and Supervision ("OES") and Office of Enforcement ("Enforcement") and the Federal Home Loan Banks with information concerning the current status of suspected criminal violations in connection with

institutions the accounts of which are insured by the FSLIC, their holding companies, and service corporations. which have been referred to the Department of Justice or other law enforcement agencies for possible investigation and prosecution.

Exhibit 27

(b) To provide information to government agencies that supervise or regulate any of the operations of financial institutions concerning whether persons connected with these institutions have been the subject of administrative or civil enforcement actions.

(c) To provide information concerning a violation or potential violation of civil or criminal law, rule, order or regulation to the appropriate agency, whether Federal, State, local or foreign, charged with the responsibility of investigating or prosecuting such violation or implementing the statute. rule regulation, or order.

(d) To provide information to third parties during the course of an investigation to the extent necessary to obtain information pertinent to the investigation.

(e) To respond to requests from the Congress.

(f) To provide information to the Office of General Counsel ("OGC). OES and the Federal Home Loan Banks concerning groups or individuals applying for permission to organize a Federal association and/or making de novo applications for FSLIC insurance and the officers and directors of those proposed institutions, and concerning officers and directors of existing financial institutions applying for FSLIC insurance for use in considering those applications.

(8) To provide information to OGC. OES. Enforcement, and the Federal Home Loan Banks concerning persons who have filed notices of intention to acquire control of insured institutions and controlling persons of companies filing applications to acquire control of insured institutions to determine if any agency action is required.

(h) To provide information (1) to OES. Enforcement and the Federal Home Loan Banks examining and supervisory staffs with regard to persons transacting business with or for savings institutions in connection with the Board's examination and supervision of insured institutions, service corporations and savings and loan holding companies. and (2) to persons designated by the Board as representatives of the Corporation to conduct investigations of insured institutions, their service corporations, or their holding companies.

(i) To provide information to receivers or conservators of insured institutions or formerly insured institutions for use in determining the background and reliability of persons with whom they are considering entering into transactions or with whom the