La. Admin. Code tit. 10 § VII-507

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

Section VII-507 - Grounds for Disapproval of Reorganizations

A. Basic Standards. The commissioner may disapprove an application for a mutual holding company reorganization on one or more of the following grounds.

1. Disapproval is necessary to prevent unsafe or unsound practices, or to otherwise maintain a sound financial system.

2. The reorganization plan is not fair to members of the reorganizing savings bank.

3. The reorganization plan does not protect the interests of deposit account holders of the reorganizing savings bank.

4. The financial or managerial resources of the reorganizing savings bank or any acquires savings bank warrant disapproval.

5. After the proposed capitalization of the mutual holding company, any savings bank subsidiary would fail to meet the requirements of R.S. 6:1201 and 1206.

6. A stock issuance is proposed in connection with the reorganization that fails to meet the standards established by §513

7. The reorganizing savings bank or any acquires savings bank fails to furnish the information required to be included in the reorganization plan or any other information requested by the commissioner regarding the proposed reorganization.

8. The proposed reorganization would violate any applicable federal or state law, rule, or policy of OFI.

9. The resulting or acquires savings banks would not have their accounts insured by the FDIC.

B. Capitalization

1. The commissioner shall disapprove a proposal by a reorganizing savings bank or any acquires savings bank to capitalize a mutual holding company if, immediately following the reorganization, the resulting or acquires savings bank will fail to meet the capital requirements of R.S. 6:1201 and 1206. If the net worth of the reorganizing savings bank will, under the reorganization plan, meet the minimum net worth requirements of R.S. 6:1201 and 1206, a reorganization plan may permit a mutual holding company to retain assets of the reorganizing mutual savings bank.

2. Proposals by reorganizing and acquires savings banks to capitalize mutual holding companies shall also comply with any statutes and rules governing capital distributions by savings banks.

C. Convenience and Needs. The commissioner will also examine the extent to which the reorganization will affect the convenience and needs of the communities to be served, and the impact on operating efficiency of the affected savings banks.

La. Admin. Code tit. 10, § VII-507

Promulgated by the Department of Economic Development, Office of Financial Institutions, LR 21:1072 (October 1995).

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