La. Admin. Code tit. 10 § VII-317

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

Section VII-317 - Grounds for Denial of Application for Conversion

A. The commissioner may disapprove an application for conversion if:

1. the plan of conversion adopted by the applicant's board of directors is not in compliance with this rule or policies of OFI, or would violate another law or regulation;

2. the conversion would cause the applicant to fail to meet the regulatory capital requirements of R.S. 6:1206;

3. the conversion may result in a taxable reorganization of the applicant under the Internal Revenue Code of 1986, as amended;

4. the converted savings bank would not have its accounts insured by the Federal Deposit Insurance Corporation (FDIC);

5. the commissioner determines that the application for conversion is manipulative, deceptive, or subverts the fairness of the conversion; or

6. the commissioner determines that the conversion is likely to result in injury to the savings bank;

7. the conversion will not meet the convenience and needs of the communities to be served by the converted savings bank.

La. Admin. Code tit. 10, § VII-317

Promulgated by the Department of Economic Development, Office of Financial Institutions, LR 21:1069 (October 1995).

AUTHORITY NOTE: Promulgated in accordance with R.S. 6:1141.