La. Admin. Code tit. 10 § V-1511

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

Section V-1511 - Investments and Debt Limitation

A. Investments in subsidiary corporations shall include investment in its capital stock, obligations, both secured and unsecured, or other securities of the service corporation, and shall not, in the aggregate, exceed 10 percent of the association's total assets. The limitation does not apply to subsidiaries organized solely as a holding corporation for business property as outlined in R.S. 6:822(F).

B. The subsidiary corporation engaged solely in the activities specified in §1507. A 1, may incur debt in a ratio of 10:1 of the subsidiary's consolidated net worth.

C. Subsidiary corporations engaged in activities other than that authorized in §1507. A 1, shall not incur debt in the aggregate in excess of the parent association's net worth less the aggregate investment in all subsidiary capital stock, obligations, both secured and unsecured, and other securities of the subsidiary corporation.

La. Admin. Code tit. 10, § V-1511

Promulgated by the Department of Commerce, Office of Financial Institutions, LR 6:541 (September 1980), amended LR 8:471 (September 1982).

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