tion mentioned in, and comply with the requirements of, § 311.1 (b).

§311.3 Steps to be taken and records to be furnished the Corporation where deposits are assumed by another insured bank.10 (a) Whenever the deposit liabilities of an insured bank are assumed by another insured bank, the bank whose deposits are assumed, or the assuming bank as its agent, shall give notice to its depositors of such assumption. Such notice shall be (1) mailed to each depositor at his last address of record as shown upon the books of the bank, (2) published in not less than two issues of a local newspaper of general circulation, and (3) in form substantially as follows:

*Section 12B (1) (4) of the Federal Reserve Act, as amended, provides, in part, as follows: "Whenever the liabilities of an insured bank for deposits shall have been assumed by another insured bank or banks, the insured status of the bank whose liabilities are so assumed shall terminate on the date of receipt by the Corporation of satisfactory evidence of such assumption with like effect as if its insured status had been terminated on said date by the board of directors after proceedings under paragraph (1) of this subsection: Provided, That if the bank whose Liabilities are so assumed gives to its depositors notice of such assumption within 30 days after such assumption takes effect by publication or by any reasonable means, in accordance with regulations to be prescribed by the board of directors, the insurance of its deposits shall terminate at the end of 6 months from the date such assumption takes effect, and such bank shall thereupon be relieved of all future obligations to the Corporation, including the obligation to pay future assessments."

poration in the manner and to the extent provided in said Act.

11

(Name of bank)

(Address)

There may be included in such notice any additional information or advice the bank may deem desirable.

The bank shall furnish to the Corporation an affidavit of mailing and an affidavit of publication of the notice to depositors. The affidavit of mailing should be in the form prescribed in § 311.1 (b) (1).

(b) The liquidating bank shall continue to file certified statements and pay assessments thereon for the period its deposits are insured, as provided by the Federal Reserve Act, as amended: Provided, That if the liquidating bank, or the assuming bank as its agent, has given the requisite notice to the depositors of the assumption of the deposit liabilities within thirty days after such assumption takes effect, then the liquidating bank shall file a final certified statement, which statement shall be executed to reflect its average daily deposit liabilities for the semiannual period in which its deposit liabilities are assumed and shall pay to the Corporation the normal assessment thereon.12

(c) The Corporation will consider receipt of the following as satisfactory evidence of such assumption:

(1) A certified copy of the resolution (i) duly authorizing the bank's officers to enter into a contract for the sale of the bank's assets to another insured bank upon the consideration of the assumption by it of the deposit liabilities, and (ii) duly placing the bank in liquidation; and

(2) A certified copy of the assumption agreement, provided it contains an express undertaking by an insured bank to pay the deposit liabilities of the bank going into liquidation.

(d) The bank shall furnish to the Corporation the information called for in § 311.1(b) (6).

11 If this notice is given by the assuming bank as agent for the liquidating bank, it may add its own name designating itself as agent.

12 See § 327.3 of this chapter.

312.18 Formal requirements as to papers filled.

AUTHORITY: §§ 312.1 to 312.18, inclusive, issued under 48 Stat. 168, as amended; 12 U.S.C. and Sup., 264.

SOURCE: §§ 312.1 to 312.18, inclusive, contained in Resolution, Federal Deposit Insurance Corporation, Aug. 30, 1946, effective Sept. 11, 1946, 11 F.R. 177A-442.

§ 312.1 Termination of insured status by the Corporation. Under the authority of subsection (i) of section 12B of the Federal Reserve Act, as amended (48 Stat. 168, as amended; 12 U.S.C. and Sup., 264), the board of directors of the Corporation may terminate the insured status of an insured bank. The procedure for terminating the insured status of a bank as therein prescribed will be followed and the hearing required thereunder will be conducted in accordance with the rules and practice set forth in this part.

§ 312.2 Appearance and practice before the Corporation—(a) Power of attorney and notice of appearance. The Corporation maintains no register of attorneys or agents who may practice before it nor is an application for admission to practice required. Any person desiring to appear before or transact business with the Corporation in a representative capacity may be required to file with the Secretary of the Corporation a power of attorney showing his authority to act in such capacity, and he may be required to show

to the satisfaction of the board of directors that he has the requisite qualifications. Attorneys and representatives of parties to proceedings shall file a written notice of appearance with the Secretary or with the trial examiner.

Any

(b) Suspension and disbarment. person appearing before the board of directors or before a trial examiner in a representative capacity, or desiring so to act, may for cause, sufficient in the judgment of the board of directors, be suspended or disbarred from so doing, provided that charges shall be preferred by the board of directors against such representative and he shall be afforded an opportunity to be heard thereon.

(c) Summary suspension. Contemptuous conduct at an argument before the board of directors or at a hearing before a trial examiner shall be ground for exclusion therefrom and suspension for the duration of the argument or hearing.

§ 312.3 Notice of hearing. Whenever a hearing is ordered by the board of directors in any proceedings a Notice of Hearing shall be given by the Secretary or other designated officer of the Corporation to the bank involved and the appropriate supervisory authority. Such notice shall designate the time and place of the hearing, the nature thereof, the trial examiner and shall specify the charges against the bank and shall be delivered by personal service, by registered mail to last known address, or other appropriate means, at least 30 days in advance of the hearing.

§ 312.4 Conduct of hearings. Any hearing shall be held before a person designated by the board of directors as the trial examiner and, unless otherwise provided in the notice of hearing, shall be conducted as hereinafter provided.

(a) Authority of trial examiner. The trial examiner at the hearing shall have authority to administer oaths and affirmations, take or cause depositions to be taken, examine witnesses and receive evidence and rule upon the admissibility of evidence and other matters that normally and properly arise in the course of the hearing, but shall have no power to decide any motion to dismiss the proceedings or other motion which results in a final determination of the merits of the proceedings. Except as authorized by law, the trial examiner shall not consult any person or party on any fact in issue unless upon notice and opportunity

for all parties to participate, nor be responsible to or subject to the supervision or direction of any officer, employee, or agent engaged in the performance of investigative or supervisory functions. The trial examiner may hold conferences before or during the hearing for the settlement or simplification of issues by consent of the bank and counsel for the Corporation.

(b) Attendance at hearings. A hearing shall be private and shall be attended only by the bank and its representatives or counsel, representatives of the Corporation, witnesses, and other persons having an official interest in the proceedings; provided, however, that on the written request of the bank or counsel for the Corporation, or on its own motion, the board of directors when not prohibited by law, may permit other persons to attend or may order the hearing to be public.

(c) Transcript of testimony. Hearings shall be reported and transcripts will be available at cost to the bank and, if the board of directors has ordered the hearing to be public, to the public. At the close of the hearing a complete transcript of the testimony taken, together with any exhibits and any briefs or memoranda of law filed theretofore on behalf of the bank or counsel for the Corporation, shall be filed with the Secretary. Requested corrections to a transcript of record shall be considered only if offered within 10 days after the date the transcript is filed with the Secretary (or within 10 days after the bank's receipt of a copy of such transcript, if ordered by the bank before conclusion of the hearing). Requested corrections shall be filed with the Secretary and shall be served upon the other party to the proceedings as provided in 312.14. The trial examiner shall have authority to act upon motions to correct the record.

(d) Order of procedure. The counsel for the Corporation shall open and close.

(e) Continuances and changes or extensions of time and changes of place of hearing. Except as otherwise expressly provided by law, the board of directors may by the notice of hearing, or subsequent order, provide time limits different from those specified in these rules, may on its own motion or for cause shown xtend any time limits prescribed by these les or the notice of hearing, and may continue or adjourn any hearing. The trial examiner may continue or adjourn

723338 47-SUPP. IX-BK. 2 -33

a hearing to such time and place as may be ordered by him.

(f) Call for further evidence, oral argument and briefs, reopening of hearings. The trial examiner may call for the production of further evidence upon any issue, may permit oral arguments and submission of briefs at the hearing, and, upon appropriate notice, may reopen any hearing at any time prior to the certification of his recommended decision to the board of directors, or the board of directors may reopen any hearing at any time prior to its order disposing of the proceeding.

(g) Depositions. The board of directors or trial examiner may order evidence to be taken by deposition in any proceeding at any stage thereof. Such depositions may be taken by the trial examiner or before any person designated by the board of directors or trial examiner and having power to administer oaths. Unless notice be waived, no deposition shall be taken except after at least 5 days' notice to the bank and counsel for the Corporation.

Any party desiring to take the deposition of a witness shall make application in writing, setting out the reasons why such deposition should be taken, stating the time when, the place where, and the name and post-office address of the person before whom, it is desired the deposition be taken, the name and post-office address of the witness, and the subject matter or matters concerning which the witness is expected to testify. If good cause is shown, the board or trial examiner will make and serve upon the bank, or its counsel, and counsel for the Corporation, an order wherein the board of directors or trial examiner shall name the witness whose deposition is to be taken and specify the time when, the place where, and the person before whom, the witness is to testify, but such time and place, and the person before whom the deposition is to be taken so specified in the order, may or may not, be the same as those named in the application. The testimony of the witness shall be reduced to writing by the person before whom the deposition is taken, or under his direction, after which the deposition shall be subscribed by the witness and certified as a true and complete transcript of the testimony by the person before whom the deposition was taken and by him forwarded as specified in the order with three additional copies thereof

Page 1947

made by him or under his direction. A certified copy thereof shall be furnished to the bank, or its counsel, and to counsel for the Corporation. Witnesses whose depositions are taken, and the person taking such depositions, shall severally be entitled to the same fees as are paid for like services in the courts of the United States which shall be paid by the party upon whose application the deposition was taken.

§ 312.5 Rules of evidence-(a) Evidence. Every party shall have the right to present his case or defense by oral and documentary evidence, to submit rebuttal evidence and to conduct such cross examination as may be required for a full and true disclosure of the facts. Irrelevant, immaterial or unduly repetitious evidence shall be excluded.

(b) Objections. Objections to the admission or exclusion of evidence shall be in short form, stating the grounds of objections relied upon, and the transcript shall not include argument thereon except as ordered by the trial examiner. Rulings on such objections and on any other matters shall be a part of the transcript. Failure to object to admission or exclusion of evidence or to any ruling shall be considered a waiver of such objection.

All matters offi

(c) Official notice. cially noticed by the trial examiner shall appear on the record.

§ 312.6 Proposed findings and conclusions and recommended decision(a) Proposed findings and conclusions and supporting briefs. Within 15 days after the filing of the transcript with the Secretary (or within 15 days after the bank's receipt of a copy of such transcript, if ordered by the bank before the conclusion of the hearing) the bank or counsel for the Corporation may file with the Secretary for submission to the trial examiner proposed findings and conclusions, which may be accompanied by a brief or memorandum in support thereof. A copy of such proposals and brief or memorandum in support thereof shall be delivered by the Secretary to the trial examiner and a copy shall be served by the Secretary upon the other party to the proceedings. All such proposed findings and conclusions shall be a part of the record.

(b) Recommended decision. The trial examiner, within 15 days after the expiration of the time allowed for filing proposed findings and conclusions, shall

file with the Secretary his recommended decision in the form prescribed by law.

(c) Service of recommended decision. A copy of the recommended decision shall be forthwith served on the bank and on counsel for the Corporation by the Secretary.

§ 312.7 Exceptions—(a) Filing. Within 15 days after receipt of a copy of the recommended decision of the trial examiner, the bank or counsel for the. Corporation may file with the Secretary exceptions to the recommended decision of the trial examiner or any portion thereof or to his failure to adopt a proposed finding or conclusion, or to the admission or exclusion of evidence or to any other ruling. A copy of such exceptions shall be forthwith delivered by the Secretary to the trial examiner and a copy shall be served on the other party to the proceedings. Exceptions shall be argued only if a hearing is ordered before the board of directors.

(b) Waiver. Failure to file exceptions to the recommended decision of the trial examiner or any portion thereof, or to his failure to adopt a proposed finding or conclusion, or to the admission or exclusion of evidence, or to any ruling, within the time so required, shall be deemed to be a waiver of the objections thereto.

§ 312.8

(d) Service of briefs. Copies of briefs shall be served by the Secretary on the other party to the proceedings.

(e) Delays. Briefs not filed on or before the time fixed in these rules will be received only upon special permission of the board of directors.

§ 312.9 Certification of record to board of directors. Within 15 days after expiration of the time required for filing exceptions to his recommended decision, the trial examiner shall file with the Secretary of the Corporation and certify to the board of directors for initial decision the entire record, including the transcript of testimony, exhibits (including on request of party concerned any exhibits excluded from evidence) recommended findings and conclusions, exceptions, any briefs or memoranda filed by any party or counsel for the Corporation in connection therewith and his recommended decision.

§ 312.10 Consent to termination of insured status. Unless a bank, which has received notice of intention to terminate its status as an insured bank pursuant to paragraph (1), subsection (1), section 12B of the Federal Reserve Act, as amended, shall appear at the hearing designated in the notice of hearing by a duly authorized representative, it shall be deemed to have consented to the termination of its status as an insured bank. In such event counsel for the Corporation may, but need not, present his case. Within 10 days of the date or close of the hearing the trial examiner shall certify the transcript and exhibits, if any, to the board of directors with his recommended decision.

§ 312.11 Oral argument before board of directors. Upon written request of the bank or counsel for the Corporation, within the time provided for filing the original briefs, the board of directors may order the matter to be set down for oral argument before the board of directors at the time and place specified in such order.

$312.12 Decision of board of directors. Appropriate members of the staff, who are not engaged in the performance of investigative or prosecuting functions, may advise and assist the board of directors in the consideration of the matter and in the preparation of appropriate documents for its disposition. Copies of the decision of the board of directors shall be furnished by the Secretary to

the bank, to counsel for the Corporation and to the appropriate State supervisory authority, in the case of a State bank, to the Board of Governors of the Federal Reserve System, in the case of a State member bank, or to the Comptroller of the Currency, in the case of a national bank.

§ 312.13 Filing papers. Recommended decisions, exceptions, briefs and other papers required to be filed with the board of directors or Secretary in any proceeding shall be filed with the Secretary, Federal Deposit Insurance Corporation, Washington 25, D. C. Any such papers may be sent to the Secretary by mail or express but must be received by the Secretary in the office of the Corporation in Washington, D. C., or post marked by a post office, within the time limit for such filing.

§ 312.14 Service; proof of service. All documents or papers required by this part to be served on the bank, or on counsel for the Corporation, shall be served by the Secretary or other designated officer of the board of directors. Such service, except on counsel for the Corporation, shall be made by personal service on, or by registered mail addressed to the last known address of, the attorney or representative of record of any party. If there is no attorney or representative of record, such service shall be made upon the bank.

§ 312.15 Copies. Unless otherwise specifically provided in the notice of hearing, an original and 7 copies of all documents and papers required or permitted to be filed or served under this part, except the transcript of testimony and exhibits, shall be furnished to the Secretary.

§ 312.16 Computing time. In computing any period of time prescribed or allowed by this part or by order of the board of directors, the day of the act, event, or default after which the designated period of time begins to run is not to be included. The last day of the period so computed is to be included, unless it is a Saturday, Sunday, or a legal holiday in the District of Columbia, in which event the period runs until the end of the next day which is neither a Saturday, Sunday nor a legal holiday. Intermediate Saturdays, Sundays and holidays shall be included in the computation. A half-holiday shall be considered as other days and not as a holiday.