(a) With the approval of the OCC, any depository institution, as defined in Sec. 152.13 of this chapter, that is in mutual form, may convert into a Federal mutual savings association, provided that:
(1) The depository institution, upon conversion, will have its deposits insured by the Federal Deposit Insurance Corporation;
(2) The depository institution, in accomplishing the conversion, complies with all applicable state and Federal statutes and regulations, and OCC policies, and obtains all necessary regulatory and member approvals; and
(3) The resulting Federal mutual association conforms, within the time prescribed by the OCC, to the requirements of section 5(c) of the Home Owners' Loan Act.
(b) Recommendations regarding applications for issuance of Federal charters are privileged, confidential and subject to part 4, subpart C of this chapter.