§ 28-6.2-3-2 — Proposed price of stock

Indiana § 28-6.2-3-2

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

Text

Each application for approval of a proposed
stock issuance plan must state and explain the proposed sales price or
the price range if an exact price cannot be determined. The application
must do the following:
(1) Support the reasonableness of the proposed price or price
range by independent persons who are experienced in corporate
valuations.
(2) Indicate the basis for determination of the income to be
derived from the proceeds of the stock sale, demonstrate the
appropriateness of the earnings multiple used, and include all
assumptions regarding future earnings growth, if the proposed
price or price range is based upon a capitalization of the projected
income of the savings bank after the issuance of the stock. If the
proposed price or price range is based upon a comparison of the
stock of the savings bank with the issued and outstanding stock of
other stock savings banks or similar institutions, those institutions
must be reasonably comparable to the savings bank in terms of
size, asset composition, market area, competitive conditions,
profit history, expected future earnings, and other stated relevant
factors.
(3) State the amount of the discount and explain how that
discount was determined, if the proposed price or price range
includes any discount due to the minority status of the stock to be
offered.
(4) State any additional information about the pricing that the
department may request.

Legislative History

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