La. Admin. Code tit. 10 § VII-517

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

Section VII-517 - Activities of Mutual Holding Companies

A. Permitted Activities. A mutual holding company may, with the approval of its board of directors and/or members or shareholders as required by its articles and bylaws, and by state law:

1. invest in or acquire control of a stock savings bank, a savings association or their holding companies;

2. acquire a mutual savings bank or mutual savings and loan association by merger of such mutual into an interim or existing subsidiary savings bank of the mutual holding company from which the mutual holding company draws members in accordance with the Louisiana Savings Bank Act of 1990, R.S. 6:1131, et seq.;

3. with the consent of the commissioner and subject to such conditions as the commissioner may prescribe, acquire control of another mutual holding company by merging with or into it or a subsidiary interim holding company;

4. acquire control of a savings bank holding company, savings and loan holding company, or a bank holding company in the stock form with the written approval of the commissioner. An acquired holding company may be held as a subsidiary or merged into the mutual holding company;

5. invest in or acquire control of any corporation, other than a mutual holding company, which is engaged exclusively in activities approved by the commissioner;

6. invest in securities a savings bank may invest in under the Louisiana Savings Bank Act of 1990;

7. engage in activities a savings bank may engage in under the Louisiana Savings Bank Act of 1990;

8. furnish or perform management services for a subsidiary;

9. hold, manage, or liquidate assets owned by or acquired from a subsidiary;

10. hold or manage property which it or a subsidiary uses;

11. unless limited or prohibited by the commissioner, engage in any activity that the Federal Reserve Board permits a bank holding company to engage in under 12 CFR 225 (Regulation Y), Subpart C.

B. Prohibitions on Stock Repurchases

1. A subsidiary savings bank of a mutual holding company shall, pursuant to R.S. 6:1341, be subject to the provisions of R.S. 6:416, which prohibit 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.

2. A mutual holding company may, at any time, and without prior approval of the commissioner, acquire additional shares of the stock of a subsidiary savings bank.

C. Dispositions. With the prior written approval of the commissioner, a mutual holding company may directly or indirectly, transfer any interest in stock which it holds in any subsidiary savings bank, savings association, holding company or other corporation; or cause or permit the transfer of all or a substantial portion of the assets or liabilities of any such subsidiary entity.

D. Restrictions on Waiver of Dividends. Unless authorized by the commissioner, no mutual holding company may waive its right to receive any dividend declared by a subsidiary.

E. Restrictions on Indemnification. R.S. 6:1190(c)(6) shall apply to mutual holding companies in the same manner as if they were mutual savings banks.

La. Admin. Code tit. 10, § VII-517

Promulgated by the Department of Economic Development, Office of Financial Institutions, LR 21:1077 (October 1995).

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