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3.2 Transfer of OTS Duties

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3.2        Transfer of OTS Duties. The transfers of duties described below will take effect on the Transfer Date. [§312]

3.2.1    Federal Savings Associations Supervision to the OCC. The powers, authorities, and duties of the OTS related to Federal savings associations are transferred to the OCC. The transfer will include all functions relating to the Federal savings associations and all rulemaking authority of the OTS related to Federal savings associations. It also includes authority for the OCC to issue rules regarding State savings associations that will be supervised by the FDIC. [§312]

             All orders, resolutions, determinations, agreements, interpretations, guidelines, procedures and advisory material issued by the OTS relating to Federal savings associations will remain in effect and shall be enforceable by or against the OCC, until modified, terminated, or superseded by the OCC, a court, or by operation of law.  The OCC will publish a list of existing OTS regulations in the Federal Register that will be enforced by the OCC.. Any proposed OTS regulation relating to Federal savings institutions that has not been published as a final regulation before the Transfer Date will be deemed to be a proposed regulation of the OCC. Any interim or final regulation regarding Federal savings institutions published before the Transfer Date but that has not become effective before that date shall become effective as a regulation of the OCC unless modified, terminated, set aside or superseded by the OCC, by a court or by operation of law. The OCC will succeed to the OTS in all legal and enforcement actions related to Federal savings associations or any other function transferred to the OCC. [§316] The OTS staff associated with the supervision and chartering of Federal savings associations will be transferred to the OCC, afforded salary and job protection, and protected from discrimination based on origin of employment. [§322]

3.2.1.1 Comptroller required to Name Deputy Comptroller Responsible for Federal Thrifts.  A new Deputy Comptroller position will be created on the Transfer Date. The new Deputy Comptroller will be appointed by, and report to, the Comptroller of the Currency, and will be responsible for the supervision and examination of Federal savings associations. [§314]

3.2.2     State Savings Associations Supervision to the FDIC. The powers, authorities, and duties of the OTS related to State savings associations are transferred to the FDIC. The transfer will include all functions of the OTS related to State savings associations, but will not include rulemaking authority. [§312] Existing OTS regulations and other actions and pending litigation relating to State savings associations will be treated in the same manner with respect to the FDIC as described above in regard to the OCC, except that rulemaking authority would be vested with the OCC. [§312]

3.2.3     SLHCs Supervision to the Fed. The powers, rulemaking authorities, and duties of the OTS related to SLHCs and their non-depository institutions subsidiaries are transferred to the Fed. Existing OTS regulations and other actions, pending litigation and proposed and not yet effective interim or final regulations relating to SLHCs and their non-depository institution subsidiaries will be treated in the same manner as described above in regard to the OCC. [§314]

3.2.4. Rulemaking Authority For Tying Arrangements and For Transactions With Affiliates and Insiders to the Fed. OTS rulemaking authority relating to transactions with affiliates and extensions of credit to insiders and relating to tying arrangements, is transferred to the Fed. [§312]

3.2.5. Staff Transfer. The OTS staff will be split between the OCC, the FDIC and the Bureau in proportion to functions transferred to these agencies. Most staff will transfer to the OCC because most savings association charters will be under OCC supervision.