§ 26–1204. Conditions for regional acquisitions and regional branches.

(a) When not inconsistent with federal law, the Superintendent [Commissioner] shall require each association or savings and loan holding company seeking to make an acquisition under § 26-1202 or seeking to branch under § 26-1203 to file information applicable to the nature of the application, a general plan of business, a proposed plan for capital investment in the District, and a community development program. In determining whether and to what extent the submissions are appropriate, the Superintendent [Commissioner] shall consider the overall purposes and resources of the savings and loan industry. The community development program shall set forth the applicant’s plan to:

(1) Assist in the development of economically-disadvantaged and underserved neighborhoods in the District;

(2) Assist in meeting the credit and deposit service needs of low- and moderate-income and minority District residents;

(3) Assist in expanding support for small, minority, or women-owned businesses; and

(4) Market the community development program and publicize the community development program to the applicant’s employees and to individuals and businesses located in areas which the applicant will serve.

(b) To the extent considered appropriate by the Superintendent [Commissioner], the Superintendent [Commissioner] shall require that an applicant seeking to make an acquisition under § 26-1202 or seeking to branch under § 26-1203 provide the following:

(1) A description of the local community, including low- and moderate-income neighborhoods where the applicant intends to provide credit and services and from which the applicant intends to draw deposits or customers;

(2) A description of the business services which the applicant will offer to low- and moderate-income persons, and a description of the services which the applicant will offer, at a minimum cost, to these persons;

(3) The applicant’s agreement to cash checks issued by the District and the United States governments at branch offices within target development areas upon verification, according to normal and prudent industry practices, that an individual who presents the check at the branch office is legally entitled to payment, even though the bearer of the check does not maintain an account at the branch office;

(4) A description of the applicant’s intended dividend policies;

(5) A description of the applicant’s intended underwriting policies;

(6) A description of the applicant’s loan policy, including the loan rates and the percentage of the total loans which will be made in low- and moderate-income areas. For purposes of determining compliance with the requirements of this subsection, loans may include permanent mortgage financing for the purchase and rehabilitation of 1 to 4 unit owner-occupied buildings or multi-family residential buildings, home improvement loans for single-family homes, or interim loans for construction, rehabilitation, or projects qualifying for permanent financing;

(7) A description of any technical assistance that the applicant will offer to individuals and businesses in low- and moderate-income areas;

(8) A description of the applicant’s plans to use District-based minority firms to meet the applicant’s procurement needs, including goods and professional services;

(9) A description of the applicant’s plans to cooperate with the District’s Department of Employment Services (“DOES”) to identify District residents as potential employees for the applicant’s District offices;

(10) A description of the applicant’s plan to assure the retention of existing jobs held by District residents;

(11) A description of the applicant’s plans to designate a senior lending officer to review specifically the needs of small, minority, or women-owned businesses and community development organizations;

(12) A description of the applicant’s plans to use its best efforts to increase the number of minority and female representatives on the applicant’s board of directors and, if applicable, on the board of any of the applicant’s District-based association subsidiaries;

(13) A description of the applicant’s plans to establish a training program for employees at all levels of the association’s, and, if applicable, the savings and loan holding company’s operations;

(14) A description of the applicant’s plans for branching or operating new offices, and, where appropriate, a description of how those plans will aid the applicant in achieving the objectives of the community development program;

(15) A description of the applicant’s plans to sell food coupons, pursuant to 7 U.S.C. § 2011 et seq. (“Food Stamp Act”), in branch offices located in the District;

(16) The applicant’s agreement to submit an annual report to the Superintendent [Commissioner] updating any information submitted to the Superintendent [Commissioner] with regard to the community development program; and

(17) Any other information that the Superintendent [Commissioner] considers appropriate.

(1) Permanent mortgage financing for the purchase and rehabilitation of 1 to 4 unit owner-occupied buildings or multi-family residential buildings;

(2) Home improvement loans for single-family homes, or interim loans for construction, rehabilitation, or projects qualifying for permanent financing;

(3) Federal Housing Administration (“FHA”) insured and Veterans Administration (“VA”) guaranteed mortgage financing, including FHA title 1 home improvement loans;

(4) Blanket and share loans for the purchase and rehabilitation of cooperatively-owned residential properties;

(5) Loans made pursuant to programs established pursuant to § 47-848, or a similar homesteading program established by the District;

(6) Participation with nonprofit developers of housing;

(7) Term loans for small, minority, or women-owned businesses for building construction, building improvement, inventory or fixed asset financing; or

(8) Working capital.

(d)(1) If an applicant filing an application pursuant to § 26-1202 or § 26-1203 has made in connection with that application any express written commitments to the Superintendent [Commissioner] with respect to subjects set forth in subsections (a), (b), or (c) of this section, the Superintendent [Commissioner] may, at any time, review the activities of the applicant to determine whether the applicant has fulfilled the express written commitments. The Superintendent [Commissioner] may require an applicant to supply information and to submit any report the Superintendent [Commissioner] considers necessary to make a determination under this paragraph.

(2) Upon the determination of the Superintendent [Commissioner] that an applicant filing an application pursuant to § 26-1202 or § 26-1203 has failed to fulfill express written commitments that the applicant made with respect to subjects set forth in subsections (a), (b), or (c) of this section, the Superintendent [Commissioner] may order the applicant to take steps to comply with all the commitments within a reasonable period of time.

(3) If the Superintendent [Commissioner] believes, at any time, that an applicant, subject to an order issued under paragraph (2) of this subsection, has failed to comply with the order within the period specified in the order, the Superintendent [Commissioner] may conduct a hearing in accordance with § 2-509, on the issue of whether the applicant has fulfilled any express written commitments that the applicant made with respect to subjects set forth in subsections (a), (b), or (c) of this section.

(4) If, after a hearing as specified in paragraph (3) of this subsection, the Superintendent [Commissioner] determines that an applicant has failed to fulfill express written commitments made with respect to subjects set forth in subsections (a), (b), or (c) of this section, the Superintendent [Commissioner] may:

(A) Order the applicant to divest itself of control of all District associations and District savings and loan holding companies and of all District branches of any other subsidiary association within a reasonable period of time if the applicant has acquired a District association or District savings and loan holding company pursuant to § 26-1202. If the Superintendent [Commissioner] orders divestiture pursuant to this subparagraph, the divestiture shall be completed within 1 year after the date on which the Superintendent’s [Commissioner’s] order becomes final; or

(B) Order the revocation of the certificate of authority and a cessation of operations under the certificate within a reasonable period of time if the applicant is branching pursuant to § 26-1203; if the Superintendent [Commissioner] orders the cessation of business being conducted under the certificate, the cessation of business shall be completed within 1 year after the date on which the Superintendent’s [Commissioner’s] order becomes final.

(5) The Superintendent’s [Commissioner’s] decision in a case initiated under paragraph (3) of this subsection shall be subject to judicial review by the District of Columbia Court of Appeals in accordance with § 2-510.

(6) The Superintendent [Commissioner] shall initiate any case under paragraph (3) of this subsection of the issue of whether an association or savings and loan holding company has failed to fulfill express written commitments that the association or savings and loan holding company made with respect to subjects set forth in subsections (a), (b), or (c) of this section within 4 years of the date of the acquisition of the District association or District savings and loan holding company subject to the express written commitments.

(e) The Superintendent [Commissioner] shall rule on any application submitted under §§ 26-1202 and 26-1203 no later than 90 days following the date of submission of a complete application, but the ruling may be conditioned upon approval by federal regulatory authorities or contain other appropriate conditions. The Superintendent [Commissioner] may extend the 90-day period for up to 30 days. If the Superintendent [Commissioner] fails to rule on the application within the 90-day period, or any extension, the application shall be deemed approved.

(f) For purposes of § 26-1202(a)(1) through (3) and § 26-1202(c)(1) and (2), a District association shall be treated as if it were a District savings and loan holding company if the laws of the state where the acquiring association or savings and loan holding company has its principal place of business would permit the regional association or a regional savings and loan holding company to be acquired by a District savings and loan holding company, but not by a District association.