PART 101—COVERED SAVINGS ASSOCIATIONS Authority: 12 U.S.C. 93a, 1462a, 1463, 1464, 1464a, and 5412(b)(2)(B). Source: 84 FR 24005, May 24, 2019, unless otherwise noted. § 101.1 Authority and purposes. (a) Authority. (b) Purposes. § 101.2 Definitions and computation of time. (a) Definitions. (1) Covered savings association (2) Effective date of the election (3) Nonconforming subsidiary, asset, or activity. (A) Means any subsidiary, asset, or activity that is not permissible for a covered savings association or, if permissible, is being operated, held, or conducted in a manner that exceeds the limit applicable to a covered savings association; and (B) Includes an investment in a subsidiary or other entity that is not permissible for a covered savings association; and (ii) With respect to a Federal savings association that has terminated an election to operate as a covered savings association: (A) Means any subsidiary, asset, or activity that is not permissible for a Federal savings association or, if permissible, is being operated, held, or conducted in a manner that exceeds the limit applicable to a Federal savings association; and (B) Includes an investment in a subsidiary or other entity that is not permissible for a Federal savings association. (4) Similarly located national bank (b) Computation of time. § 101.3 Procedures. (a) Notice Submission. (2) Contents. (i) Be signed by a duly authorized officer of the Federal savings association; and (ii) Identify and describe each nonconforming subsidiary, asset, or activity that the Federal savings association operates, holds, or conducts at the time it submits the notice, each of which must be divested, conformed, or discontinued pursuant to § 101.5. (b) Effective date of the election In general. (2) Earlier notice. § 101.4 Treatment of covered savings associations. (a) In general National bank activities. (2) Treatment as a Federal savings association. (i) Governance (including incorporation, bylaws, boards of directors, shareholders, members, and distribution of dividends); (ii) Consolidation, merger, dissolution, conversion (including conversion to a stock bank or to another charter), conservatorship, and receivership; (iii) Provisions of law applicable only to Federal mutual savings associations; (iv) Offers and sales of securities at an office of a Federal savings association; (v) Savings bank activities authorized by section 5(i)(4) of HOLA; (vi) Issuance of subordinated debt securities and mandatorily redeemable preferred stock; (vii) Increases in permanent capital of a Federal stock savings association; (viii) Rules of practice and procedure in adjudicatory proceedings; (ix) Rules for investigative proceedings and formal examination proceedings; (x) Removals, suspensions, and prohibitions where a crime is charged or proven; (xi) Security procedures; (xii) Maintenance of records and recordkeeping and confirmation requirements for securities transactions; (xiii) Accounting and disclosure standards; (xiv) Nondiscrimination; and (xv) Advertising. (b) Existing branches. (c) Assets greater than $20 billion. § 101.5 Nonconforming subsidiaries, assets, and activities. (a) Divestiture, conformance, or discontinuation. (b) Extension. (1) The covered savings association has made a good faith effort to divest, conform, or discontinue the nonconforming subsidiary, asset, or activity; (2) Divestiture, conformance, or discontinuation would have a material adverse financial effect on the covered savings association; and (3) Retention or continuation of the nonconforming subsidiary, asset, or activity is consistent with the safe and sound operation of the covered savings association. (c) Applicable law. § 101.6 Termination. (a) Termination. (b) Procedures. (1) The provisions of §§ 101.3 and 101.5 shall be applied by substituting “covered savings association” for “Federal savings association” and “Federal savings association” for “covered savings association” each place those terms appear in those sections; (2) Section 101.3(a)(1) shall not apply; and (3) Sections 101.3 and 101.5 shall be applied by substituting “effective date of the termination” for “effective date of the election.” (c) Applicable law. § 101.7 Reelection. (a) Reelection. (b) Procedures and treatment. § 101.8 Evasion. The OCC may disapprove any notice submitted pursuant to this part if the OCC determines that the notice is made for the purpose of evading § 101.5, including as that section applies to a covered savings association terminating an election.