TITLE 12 - BANKS AND BANKING

CHAPTER VII - NATIONAL CREDIT UNION ADMINISTRATION

SUBCHAPTER A - REGULATIONS AFFECTING CREDIT UNIONS

PART 711 - MANAGEMENT OFFICIAL INTERLOCKS

711.6 - General exemption.

  (a) Exemption. NCUA may, by agency order issued following receipt of an application, exempt an interlock from the prohibitions in 711.3, if NCUA finds that the interlock would not result in a monopoly or substantial lessening of competition, and would not present other safety and soundness concerns.

  (b) Presumptions. In reviewing applications for an exemption under this section, NCUA will apply a rebuttable presumption that an interlock will not result in a monopoly or substantial lessening of competition if the depository organization seeking to add a management official: (1) Primarily serves, low- and moderate-income areas; (2) Is controlled or managed by persons who are members of a minority group or women; (3) Is a depository institution that has been chartered for less than two years; or (4) Is deemed to be in troubled condition as defined in 701.14(b)(3) of this chapter.

  (c) Duration. Unless a shorter expiration period is provided in the NCUA approval, an exemption permitted by paragraph (a) of this section may continue so long as it would not result in a monopoly or substantial lessening of competition, or be unsafe or unsound. If the NCUA grants an interlock exemption in reliance upon a presumption under paragraph (b) of this section, the interlock may continue for three years, unless otherwise provided in the approval.

[64 FR 66360, Nov. 26, 1999]