563.171—Frequency of safety and soundness examination.
(a) General.
The OTS examines savings associations pursuant to authority conferred by 12 U.S.C. 1463 and the requirements of 12 U.S.C. 1820(d). The OTS is required to conduct a full-scope, on-site examination of every savings association at least once during each 12-month period.
(b) 18-month rule for certain small institutions.
The OTS may conduct a full-scope, on-site examination of a savings association at least once during each 18-month period, rather than each 12-month period as provided in paragraph (a) of this section, if the following conditions are satisfied:
(i)
Assigned the savings association a rating of 1 or 2 for management as part of the savings association's composite rating under the Uniform Financial Institutions Rating System (commonly referred to as CAMELS), and
(ii)
Determined that the savings association was in outstanding or good condition, that is, it received a composite rating, as defined in § 516.5(c) of this chapter, of 1 or 2;
(4)
The savings association currently is not subject to a formal enforcement proceeding or order by the OTS or the FDIC; and
(5)
No person acquired control of the savings association during the preceding 12-month period in which a full-scope, on-site examination would have been required but for this section.
(c) Authority to conduct more frequent examinations.
This section does not limit the authority of the OTS to examine any savings association as frequently as the agency deems necessary.