La. Admin. Code tit. 10 § VII-319

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

Section VII-319 - Prohibition on Repurchases of Stock and Restrictions on Payment of Dividends

A. Stock Repurchases Prohibited. A converted savings bank shall, pursuant to R.S. 6:1341, be subject to the provisions of R.S. 6:416, which prohibits the savings bank from purchasing or owning directly or indirectly any of its own stock or the stock of its parent company unless the stock has been subsequently taken for a debt previously contracted, in which case the stock shall not be held for more than one year.

B. Dividend Payment Restrictions. No converted savings bank shall declare or pay a dividend on any of its capital stock, if the effect would cause the regulatory capital of the savings bank to be reduced below the amount required for its liquidation account. Any dividend declared or paid on a converted savings bank's capital stock shall be in compliance with R.S. 6:1207.

La. Admin. Code tit. 10, § VII-319

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.