§ 28-1-8-6 — Purchase of assets; submission of resolution and application to department; factors for department's approval; exceptions to approval requirement

Indiana § 28-1-8-6

• Jurisdiction: Indiana
• Art. 1: DEPARTMENT OF FINANCIAL INSTITUTIONS
• Ch. 8: Sale of Banks, Trust Companies, and Building and Loan

Text

(a) Subject to the approval of the department, a
corporation may purchase all or substantially all of the assets of one (1)
or more other corporations that are organized or reorganized under the
laws of any state (as defined in IC 28-2-17-19) or the United States.
(b) After the board of directors of a corporation agrees to purchase
all or substantially all of the assets of one (1) or more corporations, the
board resolution approving the purchase and an application in the form
prescribed by the director of the department must be submitted for
approval by the department.
(c) Subject to any approvals required under federal law, the
department, in its discretion, may approve or disapprove an application
and a board resolution submitted under subsection (b). In deciding
whether to approve or disapprove the board resolution and application,
the department shall consider the following factors:
(1) Whether the institutions subject to the proposed transaction
are operated in a safe, sound, and prudent manner.
(2) Whether the financial condition of any institution subject to
the proposed transaction will jeopardize the financial stability of
any other institutions subject to the proposed transaction.
(3) Whether the proposed transaction under this chapter will
result in an institution that has inadequate capital, unsatisfactory
management, or poor earnings prospects.
(4) Whether the management or other principals of the institution
that will result from the proposed transaction under this chapter
are qualified by character and financial responsibility to control
and operate in a legal and proper manner the resulting institution.
(5) Whether the public convenience and advantage will be served
by the resulting institution after the proposed transaction.
(6) Whether the institutions subject to the proposed transaction
under this chapter furnish all of the information the department
requires in reaching the department's decision.
(7) If deposits are to be transferred as part of the proposed
transaction, whether the resulting institution will maintain
adequate federal deposit insurance or such other deposit
insurance as approved by the director.
(d) The approval of the department of the purchase of all or
substantially all of the assets of one (1) or more corporations is not
required under this section if the resulting corporation is a corporation
organized or reorganized under the laws of:
(1) a state (as defined in IC 28-2-17-19) other than Indiana; or
(2) the United States.

Legislative History

As added by P.L.171-1996, SEC.7. Amended by P.L.79-1998, SEC.41; P.L.27-2012, SEC.48.