FR LL-12
Application for Exemption from Prohibited Service at Savings and Loan Holding Companies


The FR LL-12 allows covered institutions to apply for an exemption from the prohibitions of section 19 of the Federal Deposit Insurance (FDI) Act and subpart I of Regulation LL. The FR LL-12 is required to obtain or retain a benefit. An exemption request to the Board may be filed in a letter, or by using the Federal Deposit Insurance Corporation (FDIC) form*. Requests should be filed with the appropriate Federal Reserve Bank through FedEZFile.

*While the Board will accept submissions of the FDIC’s form, the Board has not adopted the FDIC’s interpretative statements on the form and these should not be relied on by applicants. Information specific to the FDIC, such as the FDIC’s Privacy Act statement or the FDIC’s regional offices are also inapplicable to applicants to the Board.

OMB Control Number:



Individuals who have been convicted of certain criminal offenses or who have agreed to enter into a pretrial diversion or similar program in connection with a prosecution for such criminal offenses are prohibited from participating in the affairs of a savings and loan holding company (SLHC) or any of its subsidiaries without the written consent of the Board. The FR LL-12 includes two requirements for SLHCs: 1) use the exemption at 12 CFR 238.86 to maintain a list of all policymaking positions and review this list annually and 2) a person who is not subject to the requirement to seek an exemption from the Board because their criminal offenses are de minimis must disclose the conviction or pretrial diversion or similar program to all insured depository institutions and other banking organizations the affairs of which he or she participates.


Pursuant to section 19 of the FDI Act (12 U.S.C. § 1829) and subpart I of Regulation LL (12 CFR 238.81 et seq.), any person who has been convicted of any criminal offense involving dishonesty or a breach of trust or money laundering, or has agreed to enter into a pretrial diversion or similar program in connection with a prosecution for such an offense (prohibited person), is prohibited from (1) becoming or continuing as an institution-affiliated party with respect to any SLHC, (2) owning or controlling directly or indirectly any SLHC, or (3) otherwise participating directly or indirectly in the conduct of the affairs of any SLHC. An SLHC may not permit a prohibited person to engage in any conduct or continue any relationship prohibited by section 19 of the FDI Act.

Pursuant to section 19 of the FDI Act, the Board may provide an exemption to a prohibited person if such exemption is consistent with the purposes of section 19. In order for a prohibited person to participate in the conduct of the affairs of any SLHC in a manner described above, the SLHC or the individual must file with the Board, and the Board must approve an application seeking an exemption from the prohibitions of section 19 of the FDI Act and subpart I of Regulation LL. The Board will use information provided by the applicant when considering an exemption request concerning a prohibited person. Such considerations will include, but are not limited to, whether the prohibited person would participate in the major policymaking functions of the SLHC or would threaten the safety and soundness of any subsidiary insured depository institution of the SLHC or the public confidence in the insured depository institution.


Public reporting burden associated with the FR LL-12 is estimated to average 16 hours per response including time to gather and maintain data in the required form and to review instructions and complete the information collection. A federal agency may not conduct or sponsor, and an organization (or a person) is not required to respond to a collection of information, unless it displays a currently valid OMB control number. Comments regarding this burden estimate or any other aspect of this information collection, including suggestions for reducing the burden, may be sent to Secretary, Board of Governors of the Federal Reserve System, 20th and C Streets, NW, Washington, DC 20551, and to the Office of Management and Budget Paperwork Reduction Project (7100-0339), Washington, DC 20503.

Respondent Panel:

The FR LL-12 respondent panel comprises SLHCs and prohibited persons that seek to participate in the affairs of an SLHC.


The FR LL-12 is event generated.

Public Release:


Last Update: January 23, 2024