§ 28-6.1-10-10 — Purchase and holding of banker's bank stock

Indiana § 28-6.1-10-10

• Jurisdiction: Indiana
• Art. 6.1: SAVINGS BANKS
• Ch. 10: Savings Banks Dealing in Investment Securities

Text

(a) As used in this section, "bank" has the
meaning set forth in IC 28-2-14-2.
(b) As used in this section, "banker's bank" means a bank that
satisfies both of the following:
(1) The stock of the bank is owned exclusively by:
(A) other banks; or
(B) a bank holding company, the stock of which is owned
exclusively by other banks.
(2) The bank is engaged exclusively in providing services to other
banks and to their officers, directors, and employees.
(c) Notwithstanding any other provision of this article, a savings
bank may purchase for its own account shares of stock of a banker's
bank insured by the Federal Deposit Insurance Corporation or a
holding company that owns or controls a banker's bank insured by the
Federal Deposit Insurance Corporation.
(d) A savings bank's holdings of the stock of an insured banker's
bank or of a holding company that owns or controls an insured banker's
bank may not exceed ten percent (10%) of the capital and surplus of
the savings bank.
(e) A savings bank may not purchase the stock of an insured
banker's bank or of a holding company that owns or controls an insured
banker's bank if, after the purchase, the savings bank would own more
than five percent (5%) of any class of voting securities of the banker's
bank or holding company.

Legislative History

As added by P.L.42-1993, SEC.72.