(a) Exemption. NCUA may, by agency order issued following receipt of an application, exempt an interlock from the prohibitions in Sec. 711.3, if NCUA finds that the interlock would not result in a monopoly or substantial lessening of competition, and would not present other safety and soundness concerns.
(b) Presumptions. In reviewing applications for an exemption under this section, NCUA 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 Sec. 701.14(b)(3) of this chapter.
(c) Duration. Unless a shorter expiration period is provided in the NCUA approval, an exemption permitted by paragraph (a) of this section may continue so long as it would not result in a monopoly or substantial lessening of competition, or be unsafe or unsound. If the NCUA grants an interlock exemption in reliance upon a presumption under paragraph (b) of this section, the interlock may continue for three years, unless otherwise provided in the approval. [64 FR 66360, Nov. 26, 1999]