§ 28-6.1-7-9 — Purchasing, holding, and conveying real property to be used as branch savings bank and rental property; resolution

Indiana § 28-6.1-7-9

• Jurisdiction: Indiana
• Art. 6.1: SAVINGS BANKS
• Ch. 7: Powers of a Savings Bank Subject to the Rules of the

Text

(a) Subject to the prior written approval of the
department, a savings bank may purchase, hold, and convey real
property that is:
(1) improved or to be improved by a single, freestanding building;
and
(2) to be used, in part, as a branch of the savings bank and, in
part, as rental property for one (1) lessee.
(b) If real estate described in subsection (a) is held by a savings
bank for at least one (1) year without being used as described in
subsection (a), the board of directors of the savings bank shall state, by
resolution, definite plans for the use of the real estate. A resolution
adopted under this subsection shall be made available for inspection by
the department.
(c) Unless a written extension of time is given by the department
under this subsection, the savings bank shall open the branch not later
than three (3) years after the acquisition date of the real estate. The
department may grant an extension of time for the savings bank to open
the branch if:
(1) the board of directors of the savings bank, by resolution:
(A) reaffirms annually that the savings bank expects to use the
real estate as described in subsection (a) in the future; and
(B) explains the reason why the real estate has not yet been
used as described in subsection (a); and
(2) the director determines that:
(A) the continued holding of the real estate by the savings bank
does not endanger the safety and soundness of the savings
bank; and
(B) the savings bank is holding the real estate to use the real
estate in the future for one (1) of the purposes set forth in
subsection (a).
(d) If the savings bank:
(1) does not open a branch on the real estate within the period
specified in subsection (c); or
(2) removes its branch from the real estate;
the savings bank shall divest itself of all interest in the real estate not
more than ten (10) years after the acquisition date of the real estate, if
a branch was not opened, or ten (10) years after the removal date of the
branch office.
(e) Except with the written approval of the department, the sum
invested in real property and buildings used for the convenient
transaction of the savings bank's business as provided in this section
may not exceed fifty percent (50%) of the surplus and retained earnings
of the savings bank.

Legislative History

As added by P.L.42-1993, SEC.72. Amended by P.L.213-2007, SEC.63; P.L.217-2007, SEC.61.