La. Admin. Code tit. 10 § VII-509

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

Section VII-509 - Membership Rights

A. Depositors of Involved Savings Banks. The articles of incorporation or bylaws of a mutual holding company must:

1. confer upon existing and future depositors of the resulting savings bank the same membership rights in the mutual holding company as were conferred upon depositors by the articles and bylaws of the reorganizing savings bank as in effect immediately prior to the reorganization;

2. confer upon existing and future depositors of any acquires savings bank or any savings bank that is in the mutual form when acquired by the mutual holding company the same membership rights in the mutual holding company as were conferred upon depositors by the articles and bylaws of the acquires savings bank immediately prior to the acquisition, provided that if the acquires savings bank is merged into another savings bank from which the mutual holding company draws members, the depositors of the acquires savings bank shall receive the same membership rights as the depositors of the savings bank into which the acquires savings bank is merged;

3. confer upon the borrowers of the resulting savings bank who are borrowers at the time of reorganization the same membership rights in the mutual holding company as were conferred upon them by the articles and bylaws of the reorganizing savings bank immediately prior to reorganization, but shall not confer any membership rights in connection with any borrowing made after the reorganization; and

4. confer upon the borrowers of any acquires savings bank or any savings bank that is in the mutual form when acquired by the mutual holding company who are borrowers at the time of the acquisition, the same membership rights in the mutual holding company as were conferred upon them by the articles and bylaws of the acquires savings bank immediately prior to acquisition, but shall not confer any membership rights in connection with any borrowing made after the acquisition, provided that if the acquires savings bank is merged into another savings bank from which the mutual holding company draws members, the borrowers of the acquires savings bank shall instead receive the same grandfathered membership rights as the borrowers of the savings bank into which the acquires savings bank is merged received at the time the savings bank became a subsidiary of the mutual holding company;

5. provide that membership in a mutual holding company ends if the member withdraws the full withdrawal value of all deposit accounts in subsidiary mutual savings banks. A member who requests the full withdrawal value of the member's deposit accounts remains a member until the withdrawal value is paid in full.

B. Depositors of Stock Savings Banks. A mutual holding company that acquires a stock savings bank other than a resulting savings bank or an acquires savings bank, shall not confer any membership rights in the mutual holding company upon the depositors of such savings bank unless the savings bank is merged into a mutual savings bank from which the mutual holding company draws members, in which case the depositors of the stock savings bank shall receive the same membership rights as other depositors of the mutual savings bank into which the stock savings bank is merged.

La. Admin. Code tit. 10, § VII-509

Promulgated by the Department of Economic Development, Office of Financial Institutions, LR 21:1073 (October 1995).

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