Notice of intent to issue order—(1) In general. The Board shall provide a bank prior written notice of the Board's intention to issue an order requiring the bank to correct a safety and soundness deficiency or to take or refrain from taking other actions pursuant to section 39 of the FDI Act. The bank shall have such time to respond to a proposed order as provided by the Board under paragraph (c) of this section.

Immediate issuance of final order. If the Board finds it necessary in order to carry out the purposes of section 39 of the FDI Act, the Board may, without providing the notice prescribed in paragraph (a)(1) of this section, issue an order requiring a bank immediately to take actions to correct a safety and soundness deficiency or take or refrain from taking other actions pursuant to section 39. A State member bank that is subject to such an immediately effective order may submit a written appeal of the order to the Board. Such an appeal must be received by the Board within 14 calendar days of the issuance of the order, unless the Board permits a longer period. The Board shall consider any such appeal, if filed in a timely matter, within 60 days of receiving the appeal. During such period of review, the order shall remain in effect unless the Board, in its sole discretion, stays the effectiveness of the order.

Contents of notice. A notice of intent to issue an order shall include:

A statement of the safety and soundness deficiency or deficiencies that have been identified at the bank;

A description of any restrictions, prohibitions, or affirmative actions that the Board proposes to impose or require;

The proposed date when such restrictions or prohibitions would be effective or the proposed date for completion of any required action; and

The date by which the bank subject to the order may file with the Board a written response to the notice.

Response to notice—(1) Time for response. A bank may file a written response to a notice of intent to issue an order within the time period set by the Board. Such a response must be received by the Board within 14 calendar days from the date of the notice unless the Board determines that a different period is appropriate in light of the safety and soundness of the bank or other relevant circumstances.

Contents of response. The response should include:

An explanation why the action proposed by the Board is not an appropriate exercise of discretion under section 39;

Any recommended modification of the proposed order; and

Any other relevant information, mitigating circumstances, documentation, or other evidence in support of the position of the bank regarding the proposed order.

Agency consideration of response. After considering the response, the Board may:

Issue the order as proposed or in modified form;

Determine not to issue the order and so notify the bank; or

Seek additional information or clarification of the response from the bank, or any other relevant source.

Failure to file response. Failure by a bank to file with the Board, within the specified time period, a written response to a proposed order shall constitute a waiver of the opportunity to respond and shall constitute consent to the issuance of the order.

Request for modification or rescission of order. Any bank that is subject to an order under this subpart may, upon a change in circumstances, request in writing that the Board reconsider the terms of the order, and may propose that the order be rescinded or modified. Unless otherwise ordered by the Board, the order shall continue in place while such request is pending before the Board.