§ 28-1-7.1-5 — Voluntary supervisory conversion; eligibility; conditions

Indiana § 28-1-7.1-5

• Jurisdiction: Indiana
• Art. 1: DEPARTMENT OF FINANCIAL INSTITUTIONS
• Ch. 7.1: Voluntary Supervisory Conversion

Text

A depository financial institution with mutual
ownership is eligible for a voluntary supervisory conversion under this
chapter if, in the judgment of the director, the voluntary supervisory
conversion satisfies at least one (1) of the following conditions:
(1) Both of the following apply:
(A) The depository financial institution is significantly
undercapitalized, or is undercapitalized and a standard
conversion to stock form is not feasible.
(B) After the voluntary supervisory conversion, the converted
depository financial institution will likely be a viable entity, or
the one (1) or more entities resulting from the voluntary
supervisory conversion will likely be viable entities.
(2) Severe financial conditions threaten the stability of the
depository financial institution and a voluntary supervisory
conversion to stock form is likely to:
(A) improve the financial condition of the depository financial
institution; or
(B) result in one (1) or more entities with an improved financial
condition.
(3) The depository financial institution is in receivership or
conservatorship, or in imminent danger of receivership or
conservatorship, and the voluntary supervisory conversion will
enable the depository financial institution to:
(A) terminate the receivership or conservatorship; or
(B) avoid the institution of a receivership or conservatorship.

Legislative History

As added by P.L.89-2011, SEC.33.