---
kind: "section"
citation: "12 C.F.R. § 238.96"
title: "12"
number: "238.96"
heading: "General exemption."
url: "https://uscodex.org/cfr/12/238.96"
---

# §238.96. General exemption.

- (a) **Exemption.** The Board may by agency order exempt an interlock from the prohibitions in [§ 238.93](/cfr/12/238.93.md) if the Board finds that the interlock would not result in a monopoly or substantial lessening of competition and would not present safety and soundness concerns. A depository organization may apply to the Board for an exemption.
- (b) **Presumptions.** In reviewing an application for an exemption under this section, the Board will apply a rebuttable presumption that an interlock will not result in a monopoly or substantial lessening of competition if the depository organization seeking to add a management official:
  - (1) Primarily serves low- and moderate-income areas;
  - (2) Is controlled or managed by persons who are members of a minority group, or women;
  - (3) Is a depository institution that has been chartered for less than two years; or
  - (4) Is deemed to be in “troubled condition” as defined in [§ 238.72](/cfr/12/238.72.md).
- (c) **Duration.** Unless a shorter expiration period is provided in the Board approval, an exemption permitted by [paragraph (a)](#a) of this section may continue so long as it does not result in a monopoly or substantial lessening of competition, or is unsafe or unsound. If the Board grants an interlock exemption in reliance upon a presumption under [paragraph (b)](#b) of this section, the interlock may continue for three years, unless otherwise provided by the Board in writing.

## Notes

### Authority

Authority: 5 U.S.C. 552, 559; 12 U.S.C. 1462, 1462a, 1463, 1464, 1467, 1467a, 1468, 5365; 1813, 1817, 1829e, 1831i, 1972, 15 U.S.C. 78 l.

### Source

Source: Reg. LL, 76 FR 56532, Sept. 13, 2011, unless otherwise noted.