§ 28-6.2-3-1 — Written approval before issuance; criteria for approval

Indiana § 28-6.2-3-1

• Jurisdiction: Indiana
• Art. 6.2: MUTUAL SAVINGS BANK HOLDING
• Ch. 3: Issuance of Stock

Text

(a) A savings bank subsidiary of a mutual
holding company, including a resulting or an acquiree savings bank,
may not, directly or indirectly, issue stock to persons other than its
mutual holding company parent without the prior written approval of
the department.
(b) The department shall approve a proposed stock issuance plan
upon determining that all of the following criteria are met:
(1) The plan:
(A) would provide the savings bank, its mutual holding
company, and any other savings bank subsidiaries of the mutual
holding company with sufficient capital; and
(B) would not be detrimental to the savings bank, its mutual
holding company, members of the mutual holding company, or
the interest of depositors of the savings bank.
(2) The proposed price or price range, the classification, and any
terms or conditions of the stock to be issued are reasonable.
(3) The plan is approved by the members of the mutual holding
company or, if the plan is part of a reorganization plan, by
members of the reorganizing savings bank, at a meeting of the
members of the mutual holding company or the reorganizing
savings bank.
(c) In determining whether the criteria set forth in subsection (b) are
met, the department may consider the following factors:
(1) The size, capital position, and quality of management of the
savings bank.
(2) The business objective of the savings bank.
(3) The dollar amount and number of shares to be issued under
the plan.
(4) The market conditions that may affect the plan.
(5) The existence of a trading market in, or methods of later resale
or repurchase of, the stock to be issued under the plan.
(6) Any benefits provided to the savings bank through employee
or director incentives.

Legislative History

As added by P.L.122-1994, SEC.101.