§ 192.575 Other requirements for charitable organizations.

(a) Charter and gift instrument requirements. The charitable organization's charter (or trust agreement) and the gift instrument for the contribution must provide that: (1) The appropriate Federal banking agency may examine the charitable organization at the charitable organization's expense; (2) The charitable organization must comply with all supervisory directives that the appropriate Federal banking agency imposes; (3) The charitable organization must operate according to written policies adopted by its board of directors (or board of trustees), including a conflict of interest policy; (4) The charitable organization must not engage in self-dealing; and (5) The charitable organization must comply with all laws necessary to maintain its tax-exempt status under the Internal Revenue Code. (b) Stock certificate requirement. The savings association must include the following legend in the stock certificates of shares that the savings association contributes to the charitable organization or that the charitable organization otherwise acquires: “The board of directors must consider the shares that this stock certificate represents as voted in the same ratio as all other shares voted on each proposal considered by the shareholders, as long as the shares are controlled by the charitable organization.” (c) Voting ratio. As long as the charitable organization controls shares, the savings association must consider those shares as voted in the same ratio as all of the shares voted on each proposal considered by the savings association's shareholders. (d) Filing requirement. After the savings association completes its stock offering, it must submit copies of the following documents to the appropriate OCC licensing office if it is a Federal savings association or with the appropriate FDIC region if it is a State savings association: (1) The charitable organization's charter and bylaws (or trust agreement); (2) The charitable organization's operating plan (within six months after the savings association's stock offering); (3) The charitable organization's conflict of interest policy; and (4) The gift instrument for the contributions of either stock or cash to the charitable organization.