Notice2023-18808
Agency Information Collection Activities: Revision of an Approved Information Collection; Submission for OMB Review; Conversions From Mutual to Stock Form
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
August 31, 2023
Issuing agencies
Treasury DepartmentComptroller of the Currency
Abstract
The OCC, as part of its continuing effort to reduce paperwork and respondent burden, invites comment on a continuing information collection, as required by the Paperwork Reduction Act of 1995 (PRA). In accordance with the requirements of the PRA, the OCC may not conduct or sponsor, and the respondent is not required to respond to, an information collection unless it displays a currently valid Office of Management and Budget (OMB) control number. The OCC is soliciting comment concerning a revision to a currently approved information collection titled, "Conversions from Mutual to Stock Form." The OCC also is giving notice that it has sent the collection to OMB for review.
Full Text
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<title>Federal Register, Volume 88 Issue 168 (Thursday, August 31, 2023)</title>
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[Federal Register Volume 88, Number 168 (Thursday, August 31, 2023)]
[Notices]
[Pages 60262-60266]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-18808]
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DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency
Agency Information Collection Activities: Revision of an Approved
Information Collection; Submission for OMB Review; Conversions From
Mutual to Stock Form
AGENCY: Office of the Comptroller of the Currency (OCC), Treasury.
ACTION: ACTION: Notice and request for comment.
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SUMMARY: The OCC, as part of its continuing effort to reduce paperwork
and respondent burden, invites comment on a continuing information
collection, as required by the Paperwork Reduction Act of 1995 (PRA).
In accordance with the requirements of the PRA, the OCC may not conduct
or sponsor, and the respondent is not required to respond to, an
information collection unless it displays a currently valid Office of
Management and Budget (OMB) control number. The OCC is soliciting
comment concerning a revision to a currently approved information
collection titled, ``Conversions from Mutual to Stock Form.'' The OCC
also is giving notice that it has sent the collection to OMB for
review.
DATES: Comments must be received by October 2, 2023.
ADDRESSES: Commenters are encouraged to submit comments by email, if
possible. You may submit comments by any of the following methods:
<bullet> Email: <a href="/cdn-cgi/l/email-protection#b9c9cbd8d0d7dfd6f9d6dada97cdcbdcd8ca97ded6cf"><span class="__cf_email__" data-cfemail="48383a2921262e2708272b2b663c3a2d293b662f273e">[email protected]</span></a>.
<bullet> Mail: Chief Counsel's Office, Attention: Comment
Processing, Office of the Comptroller of the Currency, Attention: 1557-
0347, 400 7th Street SW, Suite 3E-218, Washington, DC 20219.
<bullet> Hand Delivery/Courier: 400 7th Street SW, Suite 3E-218,
Washington, DC 20219.
<bullet> Fax: (571) 293-4835.
Instructions: You must include ``OCC'' as the agency name and
``1557-0347'' in your comment. In general, the OCC will publish
comments on <a href="http://www.reginfo.gov">www.reginfo.gov</a> without change, including any business or
personal information provided, such as name and address information,
email addresses, or phone numbers. Comments received, including
attachments and other supporting materials, are part of the public
record and subject to public disclosure. Do not include any information
in your comment or supporting materials that you consider confidential
or inappropriate for public disclosure.
Written comments and recommendations for the proposed information
collection should also be sent within 30 days of publication of this
notice to <a href="http://www.reginfo.gov/public/do/PRAMain">www.reginfo.gov/public/do/PRAMain</a>. You can find this
information collection by selecting ``Currently under 30-day Review--
Open for Public Comments'' or by using the search function.
You may review comments and other related materials that pertain to
this information collection following the close of the 30-day comment
period for this notice by the method set forth in the next bullet.
<bullet> Viewing Comments Electronically: Go to <a href="http://www.reginfo.gov">www.reginfo.gov</a>.
Hover over the ``Information Collection Review'' tab and click on
``Information Collection Review'' from the drop-down menu. From the
``Currently under Review'' drop-down menu, select ``Department of
Treasury'' and then click ``submit.'' This information collection can
be located by searching OMB control number ``1557-0347'' or
``Conversions from Mutual to Stock Form.'' Upon finding the appropriate
information collection, click on the related ``ICR Reference Number.''
On the next screen, select ``View Supporting Statement and Other
Documents'' and then click on the link to any comment listed at the
bottom of the screen.
<bullet> For assistance in navigating <a href="http://www.reginfo.gov">www.reginfo.gov</a>, please
contact the Regulatory Information Service Center at (202) 482-7340.
FOR FURTHER INFORMATION CONTACT: Shaquita Merritt, Clearance Officer,
(202) 649-5490, Chief Counsel's Office, Office of the Comptroller of
the Currency, 400 7th Street SW, Washington, DC 20219. If you are deaf,
hard of hearing, or have a speech disability, please dial 7-1-1 to
access telecommunications relay services.
SUPPLEMENTARY INFORMATION: Under the PRA (44 U.S.C. 3501 et seq.),
Federal agencies must obtain approval from the
[[Page 60263]]
OMB for each collection of information that they conduct or sponsor.
``Collection of information'' is defined in 44 U.S.C. 3502(3) and 5 CFR
1320.3(c) to include agency requests or requirements that members of
the public submit reports, keep records, or provide information to a
third party. The OCC asks OMB to approve this revised collection.
Title: Conversions from Mutual to Stock Form.
OMB Control No.: 1557-0347.
Abstract: Part 192 governs the process through which a savings
association may convert from the mutual to the stock form of ownership
and sets forth the procedures and submissions required in connection
with that process.
Twelve CFR 192.5(c) provides that the appropriate Federal banking
agency may waive any requirement of part 192 or any provision of a
prescribed form. To obtain such a waiver, a savings association must
file a written request with the agency that (1) specifies the
requirement(s) or provision(s) for which the waiver is sought; (2)
demonstrates that the waiver is equitable; is not detrimental to the
savings association, its account holders, or other savings
associations; and is not contrary to the public interest; and (3)
includes a legal opinion demonstrating that the waiver sought does not
conflict with applicable law.
Twelve CFR 192.105(a) sets forth the minimum requirements for the
business plan a savings association must adopt prior to filing an
application for conversion. The plan must include projections and
activities for three years following the conversion; the plan for
deploying conversion proceeds to meet credit and lending needs in
proposed market areas; the risks associated with the plan for
deployment of conversion proceeds and the effect of the plan on
management resources, staffing, and facilities; the expertise of the
savings association's management and board of directors; and plans for
adequate staffing and controls to prudently manage the growth,
expansion, new investment, and other operations and activities proposed
in the business plan.
Twelve CFR 192.110(b) provides that upon review and approval of the
savings association's business plan, the chief executive officer and at
least two-thirds of the board must certify that the plan accurately
reflects the intended plans for deployment of conversion proceeds and
that any new initiatives reflected in the business plan are reasonably
achievable. The savings association must submit these certifications
with its business plan as part of its application for conversion under
Sec. 192.150.
Twelve CFR 192.130 provides that a savings association must include
information included in Sec. Sec. 192.320 (order of priority to
purchase conversion shares) through 192.485 (liquidation account
provision) and Sec. 192.505 (restrictions on trading of shares) in its
conversion plan.
Twelve CFR 192.135(a) provides that a savings association must
notify its members that its board of directors has adopted a plan of
conversion. This notification may be accomplished by mail or email, the
posting of notices in local newspapers, or the posting of a notice on
the savings association's website. Twelve CFR 192.135(b) sets forth the
minimum requirements for the required notice, including information
about the rights of account holders in connection with the conversion
and the processes available to exercise those rights.
Twelve CFR 192.150 sets forth the information to be required in a
savings association's application for conversion. The application must
include: (1) the plan for conversion; (2) pricing materials meeting the
requirements of Sec. 192.200(b); (3) proxy materials under Sec.
192.270; (4) an offering circular described in Sec. 192.300; (5)
documents and information required by Form AC; (6) any necessary
written consents; (7) the savings association's business plan,
submitted as a separately bound, confidential exhibit; and (8) any
other information requested by the appropriate Federal banking agency.
Twelve CFR 192.180(a) requires a savings association to publish a
public notice of its application for conversion by simultaneously
posting the notice prominently in its home and branch offices. Twelve
CFR 192.180(b) provides that a savings association must publish and
post a new notice and allow an additional 30 days for comment if the
savings association must refile an application.
Twelve CFR 192.225(a) requires that after the appropriate Federal
banking agency approves the plan of conversion, the savings association
must submit the plan to its members for approval and obtain approval at
a special or annual meeting of its members. Twelve CFR 192.225(d)
provides that a savings association may notify eligible account holders
or supplemental eligible account holders who are not voting members of
its proposed conversion and include only the information in Sec.
192.135 in its notice.
Twelve CFR 192.235(a) provides that a savings association must
notify its members of the meeting to consider its conversion by sending
the members a proxy statement cleared by the appropriate Federal
banking agency. Twelve CFR 192.235(c) requires the savings association
to also notify each beneficial holder of an account held in a fiduciary
capacity if the savings association is a Federal savings association
and the name of the beneficial holder is disclosed on the savings
association's records or if the savings association is a State-
chartered savings association and the beneficial holder possesses
voting rights under State law.
Twelve CFR 192.240(a) requires that, after the members meeting, the
savings association file with the appropriate OCC licensing office
(Federally-chartered) or FDIC region (State-chartered) the following
information: (1) a certified copy of each adopted resolution on the
conversion; (2) the total votes eligible to be cast; (3) the total
votes represented in person or by proxy; (4) the total votes cast in
favor of and against each matter; (5) the percentage of votes necessary
to approve each matter; and (6) an opinion of counsel that the meeting
was conducted in compliance with all applicable State or Federal laws
and regulations. Twelve CFR 192.240(b) requires that, upon completion
of the conversion, the savings association promptly submit an opinion
of counsel that it complied with all applicable laws.
Twelve CFR 192.250(b)(2) requires that if, in complying with proxy
solicitation provisions, the savings association solicits proxies
through newspaper advertisements, the advertisements may include only
(i) the name of the savings association; (ii) the reason for the
advertisement; (iii) the proposal or proposals to be voted upon; (iv)
where a member may obtain a copy of the proxy solicitation material;
and (v) a request for the savings association's members to vote at the
meeting.
Twelve CFR 192.255 sets forth the form of proxy requirements. The
form of proxy must include the following: (a) a statement in bold face
type stating that management is soliciting the proxy; (b) blank spaces
where the member must date and sign the proxy; (c) clear and impartial
identification of each matter or group of related matters that members
will vote upon; (d) the phrase ``Revocable Proxy'' in bold face type
(at least 18 point); (e) a description of any charter or State law
requirement that restricts or conditions votes by proxy; (f) an
acknowledgment that the member received a proxy statement before he or
she signed the form of proxy; (g) the date, time, and the place of the
meeting, when available; (h) a way for the
[[Page 60264]]
member to specify by ballot whether he or she approves or disapproves
of each matter that members will vote upon; (i) a statement that
management will vote the proxy in accordance with the member's
specifications; and (j) a statement in bold face type indicating how
management will vote the proxy if the member does not specify a choice
for a matter.
Twelve CFR 192.270 requires that a savings association prepare its
proxy statement in compliance with part 192 and Form PS and to mail
proxy solicitation material to its members.
Twelve CFR 192.275(a) provides that a savings association must file
revised proxy solicitation materials as an amendment to its application
for conversion. The proxy solicitation materials must be in the form in
which it furnished the materials to its members. Twelve CFR 192.275(b)
provides that to revise its proxy a savings association must file (1)
revised proxy materials as required by Form PS; (2) a revised form of
proxy, if applicable; (3) any additional proxy solicitation material
subject to Sec. 192.270; and (4) a copy of the revised proxy
solicitation materials marked to clearly indicate changes from the
prior filing.
Twelve CFR 192.280 sets out the rules for mailing proxy
solicitation materials. Twelve CFR 192.280(a) provides that a savings
association must mail the member's cleared proxy solicitation material
if a member requests in writing that the savings association mail the
proxy solicitation material, if the savings association's board of
directors has adopted a plan of conversion, the appropriate Federal
banking agency has cleared the member's proxy solicitation, and the
member agrees to defray the savings association's reasonable expenses.
Twelve CFR 192.280(b) provides that upon receipt of such a request, the
savings association must promptly furnish to the member the approximate
number of members that the savings association solicited or will
solicit (or the approximate number of members of any group of account
holders that the member designates) and the estimated cost of mailing
the proxy solicitation material.
Twelve CFR 192.295 provides that if a savings association amends
its application for conversion, the appropriate Federal banking agency
may require the savings association to re-solicit proxies for its
members' meeting as a condition of approval of the amendment.
Twelve CFR 192.300 sets forth the requirements governing offering
circulars. Twelve CFR 192.300(a) provides that a Federal savings
association must file its offering circular with the appropriate OCC
licensing office and a State savings association must file its offering
circular with the appropriate FDIC region. Twelve CFR 192.300(b)
provides that a savings association must condition its stock offering
upon member approval of its plan of conversion.
Twelve CFR 192.305 sets forth rules governing the distribution of
the offering circular. Twelve CFR 192.305(a) provides that a savings
association may distribute a preliminary offering circular at the same
time as or after it mails the proxy statement to its members. Twelve
CFR 192.305(c) provides that a savings association must distribute a
final offering circular for stock issued in the transaction to persons
listed in its plan of conversion within ten calendar days after the
appropriate Federal banking agency declares the offering circular
effective or the Securities and Exchange Commission declares the
registration statement for the offering circular effective.
Twelve CFR 192.310 sets forth the rules governing post-effective
amendments to an offering circular. Twelve CFR 192.310(b) provides that
after the appropriate Federal banking agency or the Securities and
Exchange Commission declares the post-effective amendment effective,
the savings association must immediately have the amendment to the
offering circular delivered to each person who subscribed for or
ordered shares in the offering. Twelve CFR 192.310(c) provides that the
post-effective amendment must indicate that each person may increase,
decrease, or rescind their subscription or order.
Twelve CFR 192.320 provides that a savings association must offer
to sell its shares in the following order: (a) eligible account
holders; (b) tax-qualified employee stock ownership plans; (c)
supplemental eligible account holders; (d) other voting members who
have subscription rights; and (e) the savings association's community
or the general public.
Twelve CFR 192.335 sets forth the procedures for the sale of
conversion shares. Twelve CFR 192.335(a) provides that savings
association must distribute order forms to all eligible account
holders, supplemental eligible account holders, and other voting
members to enable them to subscribe for the conversion shares they are
permitted under the plan of conversion. The savings association may
either send the order forms with its offering circular or after the
savings association distributes its offering circular.
Twelve CFR 192.405 sets forth the rules governing extensions of the
offering period. Twelve CFR 192.405(b) provides that if the appropriate
Federal banking agency grants a savings association's request for an
extension of the offering period, the savings association must provide
a post-effective amendment to the offering circular under Sec. 192.310
to each person who subscribed for or ordered stock. The amendment must
indicate that the appropriate Federal banking agency extended the
offering period and that each person who subscribed for or ordered
stock may increase, decrease, or rescind their subscription or order
within the time remaining in the extension period.
Twelve CFR 192.430 sets forth the rules governing charter
amendments. Twelve CFR 192.430(a) provides that if the savings
association is a Federally-chartered mutual savings association or
savings bank and it converts to a Federally-chartered stock savings
association or savings bank, it must apply to the OCC to amend its
charter and bylaws consistent with 12 CFR 5.22 as part of the savings
association's application for conversion.
Twelve CFR 192.450(a) provides that a liquidation account
represents the potential interest of eligible account holders and
supplemental eligible account holders in the savings association's net
worth at the time of conversion. A savings association must maintain a
sub-account to reflect the interest of each account holder.
Twelve CFR 192.470 sets forth the rules governing adjustments to
liquidation sub-accounts. Twelve CFR 192.470(a) provides that a savings
association must reduce the balance of an eligible account holder's or
supplemental eligible account holder's liquidation sub-account if the
deposit balance in the account holder's savings account at the close of
business on any annual closing date, falls below the lesser of: (i) the
deposit balance in the account holder's savings account as of the
relevant eligibility record date; or (ii) the deposit balance in the
account holder's savings account as of its lowest balance as of any
subsequent annual closing date. The reduction in the liquidation sub-
account from its balance at the time of conversion must be
proportionate to the reduction in the account holder's savings account
from its balance at the time of conversion. Twelve CFR 192.470(c)
provides that a savings association is not required to adjust the
liquidation account and sub-account balances at each annual closing
date if the savings association maintains sufficient records to make
the
[[Page 60265]]
computations if a liquidation subsequently occurs. Twelve CFR
192.470(d) provides that a savings association must maintain the
liquidation sub-account for each account holder as long as the account
holder maintains an account with the same social security number.
Twelve CFR 192.485 provides that if a savings association converts
to Federal stock form, it must include a specific provision regarding
the maintenance of a liquidation account in its new charter.
Twelve CFR 192.500(a) provides that during the twelve months after
its conversion, a savings association may implement a stock option plan
(Option Plan), an employee stock ownership plan or other tax-qualified
employee stock benefit plan (collectively, ESOP), and a management
recognition plan (MRP), provided that the savings association meets a
set of requirements, including disclosure requirements and percentage
limitations, and vesting restrictions.
Twelve CFR 192.505 sets forth the rules governing restrictions on
trading. Twelve CFR 192.505(b) provides that the savings association
must include a notice of an applicable restriction on each certificate
of stock that a director or officer purchases during the conversion or
receives in connection with a stock dividend, stock split, or otherwise
with respect to such restricted shares.
Twelve CFR 192.515 details the information that must be filed with
the Federal banking agency prior to the repurchase of shares. Twelve
CFR 192.515(a) provides that in order to repurchase stock in the first
year following conversion, a savings association generally must file a
written notice with the appropriate OCC licensing office if Federally-
chartered and with the appropriate FDIC region if State-chartered. The
savings association must provide the following information: (1) the
proposed repurchase program; (2) the effect of the repurchases on
regulatory capital; and (3) the purpose of the repurchases and, if
applicable, an explanation of the extraordinary circumstances
necessitating the repurchases. Twelve CFR 192.515(b) provides that a
Federal savings association must file its notice with the appropriate
OCC licensing office, and a State savings association must file its
notice with the appropriate regional director of the FDIC, at least 10
calendar days before the savings association begins its repurchase
program. Twelve CFR 192.515(c) provides that a savings association may
not repurchase its shares if the appropriate Federal banking agency
objects to the repurchase program.
Twelve CFR 192.525 sets forth the restrictions on the acquisition
of shares after conversion. Twelve CFR 192.525(c)(5) provides that an
acquiror does not have to file a separate application to obtain the
appropriate Federal banking agency's approval under 12 CFR 192.525(a)
if the acquiror files an application under 12 CFR 5.50 that
specifically addresses the criteria listed under 12 CFR 192.525(d) and
the savings association does not oppose the proposed acquisition.
Twelve CFR 192.525(d) provides conditions under which the appropriate
Federal banking agency may deny an application to acquire shares.
Twelve CFR 192.530 sets forth other post conversion requirements.
Twelve CFR 192.530(a) provides that after a savings association
converts, it must promptly register its shares under the Securities
Exchange Act of 1934 (15 U.S.C. 78a-78jj, as amended). The savings
association may not deregister the shares for three years. Twelve CFR
192.530(c) provides that a savings association must also use its best
efforts to list its shares on a national or regional securities
exchange or on the National Association of Securities Dealers Automated
Quotation system. Finally, 12 CFR 192.530(d) requires the savings
association to file all post-conversion reports required by the
appropriate Federal banking agency.
Twelve CFR 192.550(a) provides that a savings association may
contribute some of its conversion shares or proceeds to a charitable
organization if its plan of conversion provides for the proposed
contribution.
Twelve CFR 192.565 provides that the charter of a charitable
organization's charter (or trust agreement) and the gift instrument
itself must provide that: (a) the charitable organization's primary
purpose is to serve and make grants in the savings association's local
community; (b) as long as the charitable organization controls shares,
it must vote those shares in the same ratio as all other shares voted
on each proposal considered by the savings association's shareholders;
(c) for at least five years after its organization, one seat on the
charitable organization's board of directors (or board of trustees) is
reserved for an independent director (or trustee) from the savings
association's local community who is not affiliated with the savings
association and experienced with local community charitable
organizations and grant making; and (d) for at least five years after
its organization, one seat on the charitable organization's board of
directors (or board of trustees) is reserved for a director from the
savings association's board of directors.
Twelve CFR 192.575(a) provides that the charitable organization's
charter (or trust agreement) and the gift instrument for the
contribution must provide that: (1) the appropriate Federal banking
agency may examine the charitable organization at the charitable
organization's expense; (2) the organization must comply with all
supervisory directives that the appropriate Federal banking agency
imposes; (3) the organization must operate according to written
policies adopted by its board of directors (or board of trustees),
including a conflict of interest policy; (4) the organization must not
engage in self-dealing; and (5) the organization must comply with all
laws necessary to maintain its tax-exempt status under the Internal
Revenue Code. Twelve CFR 192.575(b) provides that the savings
association must include a specific legend in the stock certificates of
shares that the savings association contributes to the charitable
organization or that the charitable organization otherwise acquires.
Twelve CFR 192.650 provides that a majority of the board of
directors of the savings association must adopt a plan of voluntary
supervisory conversion. The savings association must include in its
plan of voluntary supervisory conversion: (a) the savings association's
name and address; (b) a description of the proposed voluntary
supervisory conversion transaction that also describes plans for any
liquidation account; and (c) certified copies of all resolutions
relating to the conversion adopted by the board of directors of the
savings association.
Twelve CFR 192.660 provides that a savings association must include
all of the following information and documents in a voluntary
supervisory conversion application to the appropriate OCC licensing
office if it is a Federal savings association and to the appropriate
FDIC region if it is a State savings association under this subpart:
(a) information establishing eligibility; (b) a plan of conversion that
complies with Sec. 192.650; (c) a business plan that complies with
Sec. 192.105, when required by the appropriate Federal banking agency;
(d) financial data, including financial statements and call reports, to
support the transaction; (e) proposed documents for the conversion
(charter, bylaws, stock certificate, securities disclosure materials);
(f) any agreements between the savings association and proposed
purchasers and all existing and proposed employment contracts; (g) all
related filings and applications
[[Page 60266]]
including, filings required under the securities offering rules of 12
CFR parts 16 and 192, Change in Bank Control Act submissions,
subordinated debt applications, applications for permission to organize
a stock association and for approval of a merger, applications for FDIC
insurance of accounts); and (h) other information, including a
statement describing post-conversion roles for officers, directors, and
affiliates and waiver requests.
Type of Review: Revision.
Affected Public: Businesses or other for-profit.
Estimated Number of Respondents: 1.
Estimated Total Annual Burden: 512 hours.
Comments: On June 07, 2023, the OCC published a 60-day notice for
this information collection, (88 FR 37305). No comments were received.
Comments continue to be invited on:
(a) Whether the collection of information is necessary for the
proper performance of the functions of the OCC, including whether the
information has practical utility;
(b) The accuracy of the OCC's estimate of the burden of the
collection of information;
(c) Ways to enhance the quality, utility, and clarity of the
information to be collected;
(d) Ways to minimize the burden of the collection on respondents,
including through the use of automated collection techniques or other
forms of information technology; and
(e) Estimates of capital or start-up costs and costs of operation,
maintenance, and purchase of services to provide information.
Theodore J. Dowd,
Deputy Chief Counsel, Office of the Comptroller of the Currency.
[FR Doc. 2023-18808 Filed 8-30-23; 8:45 am]
BILLING CODE 4810-33-P
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</html>Indexed from Federal Register on August 31, 2023.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.