La. Admin. Code tit. 10 § V-1505

Current through Register Vol. 50, No. 11, November 20, 2024

Section V-1505 - Application

A. In order to obtain such approval, the applying association shall file with the commissioner documentation from which the commissioner shall determine that:

1. there are no serious supervisory problems which would affect its ability to properly supervise and operate such subsidiary corporation;

2. there are adequate income and reserves to support the proposed investment;

3. operations of the subsidiary corporation will be clearly distinguishable from those of the parent association;

4. the subsidiary corporation is or will be profitably operating within a reasonable period of time;

5. an audited financial statement in the event of acquisition of an existing subsidiary corporation;

6. a certified resolution of the board of directors of the applying association approving the investment in the subsidiary;

7. a certified copy of the Articles of Incorporation, Certificate of Incorporation and bylaws of the subsidiary shall be filed with the commissioner.

B. The commissioner may require submission of other pertinent information:

1. acquisition terms, cost or investment requirements of the association;

2. projected operating statements of the proposed subsidiary for its first three years of operation;

3. attorney's opinion letter as to direct, indirect and/or contingent association and subsidiary liability;

4. outline of plans for operation of the subsidiary;

5. evidence that the subsidiary corporation will have adequate management and operating personnel with proper supervision by association management;

6. plans for the safeguarding of subsidiary assets;

7. affidavits from all directors of an association and subsidiary corporation fully disclosing any interest they may directly or indirectly have in the proposed or existing subsidiary.

C. Records of the subsidiary corporation will be made available at all times to state and federal supervisory authority for examination and review.

D. The subsidiary corporation will keep complete and adequate books and records in accordance with generally accepted accounting principles where there are no specific accounting guidelines set forth by Louisiana rules and the regulations of the Federal Savings and Loan Insurance Corporation.

La. Admin. Code tit. 10, § V-1505

Promulgated by the Department of Commerce, Office of Financial Institutions, LR 6:541 (September 1980).

AUTHORITY NOTE: Promulgated in accordance with R.S. 6:902(B).