To All Depository Institutions and Others Concerned in the Second Federal Reserve District:
The Federal Reserve Bank of New York ("FRBNY") has implemented new procedures for depository institutions in the Second District to appeal adverse material supervisory determinations. These procedures are contained in the enclosed new Operating Circular No. 22 , effective July 8, 1996. They were developed in accordance with Section 309 of the Riegle Community Development and Improvement Act of 1994, and guidelines issued by the Board of Governors.
The procedures permit institutions to request an appeal of "material supervisory determinations," which include but are not limited to determinations relating to examination or inspection composite ratings, the adequacy of loan loss reserves, and significant loan classifications.
An institution may initiate an appeal by sending a "notice of appeal" to Chester B. Feldberg, the FRBNY officer-in-charge of Bank Supervision, within 30 calendar days of written receipt of the material supervisory determination. If the appeal is informationally complete, the FRBNY will convene a Review Panel to hear the appeal. The Procedures set forth guidelines for selecting a review panel and for conducting the hearing.
Questions on this matter may be directed to Martin Grant, Counsel
*Please note OC #22 no longer exists.