SECTION 85:25-3-9. Application for establishing or relocating a branch office or detached facility

(a)   Generally.

(1)   An association desiring to establish or relocate either a branch pursuant to Section 381.24a, or a detached facility pursuant to Section 381.24b, of the Savings and Loan Code, shall submit to the Commissioner the original and two copies of an application for certificate to maintain and operate a branch or detached facility on a form prescribed by the Commissioner.

(2)   The application shall be executed by the applicant's president or vice-president, and attested by the applicant's cashier or secretary.

(3)   An application fee as set forth in these rules shall accompany each application.

(4)   Applicants are urged to submit their applications, as necessary, to the Federal Deposit Insurance Corporation (if an insured association) and/or the Office of Thrift Supervision, if applicable, at the same time the application is submitted to the Commissioner.

(5)   The term "application," as used in this section, shall be understood to refer to an application to establish or relocate a branch or detached facility.

(b)   Notice of application.

(1)   The applicant shall publish a Notice of Application in a newspaper of general circulation in the community in which the applicant proposes to establish or relocate the branch or detached facility.

(2)   The Notice shall state that an application has been mailed or delivered on or before the date of the Notice, and the Notice shall contain the name of the applicant and the subject matter of the application.

(3)   The application shall be mailed or delivered to the Commissioner on or before the day the Notice is published. A statement containing the date of publication and the name and address of the newspaper in which the notice was published shall be furnished with the application.

(c)   Protest period. Within ten (10) days after the notice by publication as described in (b) of this Section, any interested person desiring to protest the approval of the application shall submit to the Commissioner a written protest, which shall include both the specific facts and specific legal authority pursuant to which such protestant requests that the application be disapproved. Failure to include such specifics may result in the protest being returned to the protestant or disregarded for lack of specifics.

(d)   Investigation. The Commissioner may request additional information from the applicant and any protestant, and conduct such investigation as the Commissioner deems appropriate. No special emphasis will be placed on an appraisal of economic and competitive conditions.

(e)   Effect of protest/nonprotest. At the earlier of receipt by the Commissioner of a written protest requesting a hearing before the Commissioner or the expiration of the Protest Period prescribed by this Section, the Commissioner shall:

(1)   Upon receipt of such written protest, notify the Applicant and each protestant of the receipt of the protest and of the date, time and place of the hearing on the Application and protest(s) before the Commissioner; or

(2)   Upon receipt of such written protest and if the Applicant's latest completed examination reflects a Uniform Financial Institutions Composite "CAMELS" rating of "1" or "2" and the Applicant is not subject to supervisory action by the Department such as a Memorandum of Understanding, Cease and Desist Order, or similar action, the Commissioner may proceed without a hearing pursuant to subsection (g) of this Section; or

(3)   If no such written protest is received, proceed pursuant to subsection (g) of this Section.

(f)   Applicant request for hearing. The Applicant may in the application or at any time prior to expiration of the Protest Period prescribed by this Section, request in writing that the Application be submitted to the Commissioner for a hearing for approval/disapproval of the Application. In such event, the Commissioner shall proceed according to subsection (e)(1) of this Section.

(g)   Commissioner approval. In the event an Application is not protested in writing within the protest period prescribed by this section, and unless the Applicant requests a hearing either by having so stated in the Application or by subsequent written request, the Commissioner may consider the Application, grant approval and issue the Certificate of Authority to establish and operate or to relocate a branch or detached facility without a hearing.

(h)   Notice of intent to recommend denial. In the event the Commissioner, based on his investigation prior to a hearing, determines not to approve the application, the Commissioner shall mail to the applicant by overnight mail or telefacsimile (fax) a written notice of intent to recommend denial, including the reasons for such negative recommendation and the date, time and place of the hearing on the Application. Within ten (10) days after receipt of such notice, the applicant shall notify the Commissioner of its intent to withdraw its application or to proceed with a hearing on the application.

(i)   Hearing. In the event a hearing is set by the Commissioner, such hearing shall be conducted as follows:

(1)   Time limit. The applicant shall be limited to 30 minutes to present testimony and arguments at the hearing, and the protestants as a group shall be limited to 30 minutes to present testimony and arguments. Additional time may be granted by the Commissioner upon good cause shown.

(2)   Transcript. A transcript may be made of each hearing of an application. The Commissioner may arrange for a court reporter to be present to record the proceedings. All expenses of the reporter, including the furnishing of the original and two (2) copies of the transcript to the Commissioner, shall be borne by the protestants or if no protest has occurred, by the applicant.

(3)   Procedure. The order of presentation, appearance of witnesses and presentation of evidence for hearings of applications shall be as directed by the Commissioner at the hearing. Three (3) copies of all documentary evidence shall be furnished to the Commissioner prior to the hearing as directed by the Commissioner.

(4)   Decision of the Commissioner. Within twenty (20) days after the conclusion of the hearing of an application, the Commissioner shall issue an order approving or disapproving the application, and shall promptly mail a copy of the order to the applicant and to each protestant.

(5)   Criteria. No special emphasis will be placed by the Commissioner on an appraisal of economic and competitive conditions. The Commissioner, at his discretion, may consider the following factors in arriving at its decision:

(A)   Financial condition and history of the applicant. The current asset condition of the applicant, its compliance with applicable laws and regulations, and its investment in fixed assets are primary areas of consideration. The applicant's aggregate fixed asset investment, including lease obligations, must be reasonable in relation to its projected earnings capacity and capital.

(B)   Adequacy of capital structure. Capital earnings and retention of earning should be sufficient to support the applicant's current level of operations as well as the proposed expansion.

(C)   Future earnings prospect. The applicant's earnings potential will be evaluated in terms of the ability of overall earnings to absorb the anticipated expenses resulting from the establishment and operation of the proposed branch or facility.

(D)   Quality of management. The applicant's management must have demonstrated ability to operate the association in a sound manner, and must display the degree of depth necessary to permit the establishment of the proposed branch or facility.

(E)   Legal limitations. Statutory requirements on the establishment of branches and detached facilities.

(F)   Insiders. Any financial or other business arrangement, direct or indirect, involving the proposed branch or facility and bank insiders which involve terms and conditions more favorable to insiders than would be available in a comparable transaction with unrelated parties.

(j)   Conditions. The Commissioner's approval of an application shall be subject to any condition deemed by the Commissioner to be relevant to the criteria set forth in (i)(5) of this Section.

(k)   Commencement of business. The applicant shall commence business at the branch or facility within eighteen (18) months of Commissioner approval. Extensions of time within which to commence business may be granted by the Commissioner only upon good cause shown.

(l)   Reapplication. In the event an application is disapproved by the Commissioner, the applicant may submit a new application following a change of the circumstances which were the basis for the initial disapproval.

(m)   Judicial review. The decision of the Commissioner approving or disapproving an application may be appealed to the Oklahoma Supreme Court by any party directly affected and showing aggrievement, from other than mere increase in competition, resulting from the Commissioner's decision.

[Source: Amended at 17 Ok Reg 1707, eff 5-25-00; Transferred from 625:10-1-9 (see Editor’s Note at beginning of this Chapter)]