Section .0100 ‑ Scope

Link to law: http://reports.oah.state.nc.us/ncac/title 04 - commerce/chapter 16 - savings institutions division, savings institutions commission/subchapter i/subchapter i rules.html
Published: 2015

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SUBCHAPTER 16I ‑ ACQUISITION OF CONTROL

 

SECTION .0100 ‑ SCOPE

 

 

04 NCAC 16I .0101            GENERAL

04 NCAC 16I .0102            DEFINITIONS AND OTHER TERMS

 

History Note:        Authority G.S. 54B‑55; 54B‑261;

54B‑262;

Eff. December 1, 1981;

Amended Eff. February 1, 1983;

Repealed Eff. July 1, 1983.

 

 

 

 

SECTION .0200 ‑ ACQUISITIONS

 

04 NCAC 16I .0201            PRIOR WRITTEN APPROVAL REQUIRED FOR

ACQUISITIONS

04 NCAC 16I .0202            APPLICATION FEES

04 NCAC 16I .0203            REQUIRED ACQUISITION APPLICATIONS

AND AMENDMENTS

04 NCAC 16I .0204            STANDARDS FOR APPROVAL OF

ACQUISITION

04 NCAC 16I .0205            LIMITATIONS ON APPROVAL OF

ACQUISITIONS

04 NCAC 16I .0206            LIMITATIONS ON OWNERSHIP OF CAPITAL

STOCK

04 NCAC 16I .0207            CONFIDENTIAL INFORMATION

 

History Note:        Authority G.S. 54B‑55; 54B‑63;

54B‑261; 54B‑262;

Eff. December 1, 1981;

Amended Eff. October 1, 1982; July 1, 1982;

Repealed Eff. July 1, 1983.

 

 

 

 

 

SECTION .0300 ‑ NOTICE OF FILING: HEARINGS AND REVIEW

 

04 NCAC 16I .0301            NOTICE OF FILING: HEARINGS

04 NCAC 16I .0302            REVIEW BY COMMISSION

04 NCAC 16I .0303            JUDICIAL REVIEW

 

History Note:        Authority G.S. 54B‑55; 54B‑261;

54B‑262;

Eff. December 1, 1981;

Amended Eff. October 1, 1983;

Repealed Eff. July 1, 1983.

 

 

 

 

 

SECTION .0400 ‑ SUPERVISION: INVESTMENTS

 

04 NCAC 16I .0401            SUPERVISION: EXAMINATION AND

REGULATION BY ADMINISTRATOR

04 NCAC 16I .0402            ACTIVITIES AND INVESTMENTS OF

HOLDING COMPANIES

 

History Note:        Authority G.S. 54B‑55; 54B‑261;

54B‑262;

Eff. December 1, 1981;

Amended Eff. July 1, 1982;

Repealed Eff. July 1, 1983.

 

 

 

 

 

SECTION .0500 ‑ REGISTRATION: REPORTS: FILINGS: BOOKS

AND RECORDS

 

04 NCAC 16I .0501            REGISTRATION

04 NCAC 16I .0502            ANNUAL REPORTS

04 NCAC 16I .0503            FILING AND APPROVAL: AMENDMENTS TO

ARTICLES AND BYLAWS

04 NCAC 16I .0504            REPORTS

04 NCAC 16I .0505            BOOKS AND RECORDS

04 NCAC 16I .0506            APPOINTMENT OF AGENT

04 NCAC 16I .0507            PLACE OF FILING: RECEIPT

 

History Note:        Authority G.S. 54B‑55; 54B‑261;

54B‑262;

Eff. December 1, 1981;

Repealed Eff. July 1, 1983.

 

 

 

 

 

SECTION .0600 ‑ APPLICATIONS AND OTHER FILINGS

 

04 NCAC 16I .0601            REGISTRATION STATEMENT AND

APPLICATIONS

04 NCAC 16I .0602            OTHER FILINGS

 

History Note:        Authority G.S. 54B‑55; 54B‑261;

54B‑262;

Eff. December 1, 1981;

Repealed Eff. July 1, 1983.

 

 

 

 

 

SECTION .0700 ‑ GENERAL

 

04 NCAC 16I .0701            GENERAL

 

History Note:        Authority G.S. 54B‑55; 54B‑261;

54B‑262;

Eff. July 1, 1983;

Amended Eff. November 1, 1985;

Repealed Eff. July 1, 1990.

 

 

 

04 NCAC 16I .0702            DEFINITIONS AND OTHER TERMS

As used in this Subchapter, unless the context otherwise

requires, the term:

(1)           "Acquisition" means a transaction in

which a person or holding company acquires control of a stock savings

institution by means of an exchange of its capital stock for the capital stock

of the stock savings institution, or by means of a purchase of the capital

stock of the stock savings institution.

(2)           "Applicant" means a person or holding

company which has filed with the Administrator any application under this

Subchapter.

(3)           "Control" means the power, directly or

indirectly, to direct the management or policies of a savings institution or to

vote 25 percent or more of any class of voting securities for a savings

institution.

(4)           "Person" includes an individual or group

acting in concert, a corporation, a partnership, an association, a joint stock

company, a trust, an unincorporated organization similar company, or a

syndicate.

(5)           "Plan of Conversion" means a plan duly

adopted in accordance with the requirements of G.S. 54B‑261 or G.S. 54C‑195

and this Subchapter that, to the satisfaction of the Administrator, sets out

all relevant terms and conditions pertaining to a mutual savings institution's

conversion to ownership by a holding company.

(6)           "Plan of Reorganization" means a plan

duly adopted in accordance with the requirements of G.S. 54B‑261 or 54C‑195

and this Subchapter that, to the satisfaction of the Administrator, sets out

all relevant terms and conditions pertaining to a stock savings institution's

reorganization of its ownership to provide for a holding company.

(7)           "Registrant" means any holding company

which has filed a registration statement with the Administrator under this

Subchapter.

(8)           "Holding Company" means any company which

directly or indirectly controls a savings institution or controls any other

company which is a holding company of a savings institution.

(9)           "Tax Free Exchange" means an exchange of

stock which would result in no tax consequences to the holding company, the

stock savings institution and its stockholders under state or federal law.

 

History Note:        Filed as a Temporary Amendment Eff.

October 2, 1991 for a period of 180 days to expire on

March 31, 1992;

Statutory Authority G.S. 54B‑55; 54B‑261; 54B‑262;

54C‑53; 54C‑195; 54C‑196;

Eff. July 1, 1983;

Amended Eff. February 15, 1992; July 1, 1990; November 1,

1985.

 

 

 

04 NCAC 16I .0703            STANDARDS FOR APPROVAL OF

ACQUISITION: DUTIES AND CONDUCT

(a)  A savings institution may be controlled by a person or

a holding company.  The Administrator shall determine that the person or

savings and loan holding company is qualified by character, experience, and

financial responsibility to control the savings institution in a legal and

responsible manner.  The Administrator shall consider the applicant's financial

and managerial resources, and the organizational structure and future prospects

and plans of both the applicant and the savings institution.  The Administrator

will consider whether the business and activities of the applicant, or its

officers and directors; or any other person controlling, controlled by, or

associated with the applicant by having a common controller, would create a

material deterioration of confidence in the safety, soundness, and financial

integrity of the proposed to be controlled.  When reference is made to the word

"control" in this Rule, the word "control" has the meaning

given in G.S. 54B‑4 or G.S. 54C‑4, and additionally shall have the

meaning given by any other law or regulation under which the applicant is

required to report and register as a holding company,  parent corporation, or

other similar entity.

(b)  An applicant shall be solvent, and shall have a debt‑to‑equity

ratio which meets or exceeds the average of the ratios of other persons in the

same line of business.

(c)  The approval of an application to acquire control of a

savings institution shall in no way diminish the authority of the Administrator

to regulate the activities of the controlled savings institution.

(d)  A controlled savings institution shall obtain the prior

written approval of the administrator to lend to, or invest in, its holding

company or its affiliates.

 

History Note:        Filed as a Temporary Amendment Eff.

October 2, 1991 for a period of 180 days to expire on

March 31, 1992;

Statutory Authority G.S. 54B‑43; 54B‑55; 54B‑261;

54B‑262; 54C‑53; 54C‑195; 54C‑196;

Eff. July 1, 1983;

Amended Eff. February 15, 1992; July 1, 1990; November 1,

1985.

 

 

 

04 NCAC 16I .0704            INVESTMENT ACTIVITIES OF HOLDING

COMPANIES

A holding company may invest only in the stock of one or

more stock savings institutions, deposits in financial institutions the

principal offices of which are located in North Carolina, investments permitted

by G.S. 54B‑181 through ‑184, and ‑187 through ‑190 and

Article 7 of Chapter 54C of the General Statutes, and such other investments

approved in advance in writing by the Administrator.  In no event shall a

savings institution holding company make any investment not specified by this

Section or not permitted for a savings institution under the supervision of the

Administrator.

 

History Note:        Filed as a Temporary Amendment Eff.

October 2, 1991 for a period of 180 days to expire on

March 31, 1992;

Statutory Authority G.S. 54B‑55; 54B‑261; 54B‑262;

54C‑53; 54C‑195; 54C‑196;

Eff. July 1, 1990;

Amended Eff. February 15, 1992.

 

 

 

 

 

SECTION .0800 ‑ ACQUISITIONS

 

04 NCAC 16I .0801            PRIOR WRITTEN APPROVAL REQUIRED FOR

ACQUISITIONS

(a)  A person or holding company shall not acquire control

of any savings institution without having filed with the Administrator an

Acquisition Application as prescribed by the Administrator, and without the

written approval of the Administrator after consideration of the application

and any amendments thereto.

(b)  In addition to the filing of the Acquisition

Application, the applicant shall file any other information requested by the

Administrator, including copies of any filings, documents or reports mentioned

in Rule .1105 of this Subchapter.

 

History Note:        Filed as a Temporary Amendment Eff.

October 2, 1991 for a period of 180 days to expire on

March 31, 1992;

Statutory Authority G.S. 54B‑55; 54B‑261; 54B‑262;

54C‑53; 54C‑195; 54C‑196;

Eff. July 1, 1983;

Amended Eff. February 15, 1992; July 1, 1990.

 

 

 

04 NCAC 16I .0802            APPLICATION FEES: FILINGS

An Acquisition Application may be obtained from the Division

at its mailing address.  Applications shall be accompanied by an application

fee in the amount prescribed by the fee schedule.  Such fee will be paid by

check and is non‑refundable.

 

History Note:        Authority G.S. 54B‑55; 54B‑57;

54B‑261; 54B‑262; 54C‑53; 54C‑195; 54C‑196;

Eff. July 1, 1983;

Amended Eff. July 1, 1990; August 1, 1984.

 

 

 

04 NCAC 16I .0803            CONFIDENTIAL INFORMATION

Should an applicant desire to submit any information it

deems to be of a confidential nature regarding the answer to any item or a part

of an exhibit included in any application for filing under this Subchapter, such

information pertaining to such item or exhibit shall be separately bound and

labeled "confidential", and a statement shall be submitted therewith

briefly setting forth the grounds on which such information should be treated

as confidential.  Only general reference thereto need be made in that portion

of the application which the applicant deems not to be confidential. 

Applications for filings under this Subchapter shall be made available for

inspection by the public, except for portions which are bound and labeled

"confidential" and which the Administrator determines to withhold

from public availability because of their confidential nature under the

provisions of G.S. 54B‑63 or 54C‑60 unless the Administrator is

compelled to release the information pursuant to G.S. 54B‑63 or 54C‑60.

 

History Note:        Filed as a Temporary Amendment Eff.

October 2, 1991 for a period of 180 days to expire on

March 31, 1992;

Statutory Authority G.S. 54B‑55; 54B‑63; 54B‑261;

54B‑262; 54C‑53; 54C‑60; 54C‑195;

54C‑196;

Eff. July 1, 1983;

Amended Eff. February 15, 1992; July 1, 1990.

 

 

 

 

 

SECTION .0900 ‑ REORGANIZING STOCK ASSOCIATION INTO

HOLDING COMPANY

 

04 NCAC 16I .0901            REQUIRED ACQUISITION APPLICATION

A stock savings institution may be controlled by a holding

company by means of a plan of reorganization.  This may be accomplished by filing

with the Administrator one manually signed copy of an Acquisition Application. 

For the purposes of filing the application, the applicant shall be considered a

holding company, even though it may not yet control a stock savings

institution.

 

History Note:        Filed as a Temporary Amendment Eff.

October 2, 1991 for a period of 180 days to expire on

March 31, 1992;

Statutory Authority G.S. 54B‑55; 54B‑261; 54B‑262;

54C‑53; 54C‑195; 54C‑196;

Eff. July 1, 1983;

Amended Eff. February 15, 1992; July 1, 1990.

 

 

 

04 NCAC 16I .0902            ACQUISITION PROCEDURE

(a)  Upon determining that an Acquisition Application is

properly executed and is not materially incomplete, the Administrator shall

consider the application filed.  If the Plan of Reorganization is not approved,

the Administrator shall notify the applicant of such, and state the reasons for

its disapproval.  The Administrator may include advice to the applicant as to

what may be required by way of amendment or other requirement to cause approval

of the Plan of Reorganization.

(b)  If the Administrator approves the Plan of

Reorganization, the applicant shall be notified.  Thereafter, a regular or

special meeting of the stockholders of the subject savings institution shall be

called after advance written notice to the stockholders of not less than 20

days specifying the time, place, and purpose for calling of the meeting. Notice

shall be published in at least one newspaper of general circulation in each

county where the savings institution has an office.  The applicant shall file

publisher's affidavits with the Administrator to confirm the publication of

notice.

(c)  The results of the stockholder's meeting shall be

confirmed to the Administrator by filing attested minutes of the meeting.  If

the stockholders approve reorganization of ownership of the savings institution

to provide for ownership by a holding company, the Administrator shall enter

his final order approving the reorganization.

(d)  The Administrator may waive or alter any requirements

set forth in this Rule upon a finding that compliance would work an undue

financial hardship on the applicant, would adversely affect the safe and sound

operation of the applicant, or would have an unintended negative impact upon

the public or the applicant.

 

History Note:        Filed as a Temporary Amendment Eff.

October 2, 1991 for a period of 180 days to expire on

March 31, 1992;

Statutory Authority G.S. 54B‑55; 54B‑261; 54B‑262;

54C‑53; 54C‑195; 54C‑196;

Eff. July 1, 1983;

Amended Eff. February 15, 1992; July 1, 1990.

 

 

 

04 NCAC 16I .0903            INVESTMENT ACTIVITIES

04 NCAC 16I .0904            NOTICE OF FILING: HEARINGS

 

History Note:        Authority G.S. 54B‑54; 54B‑55;

54B‑261; 54B‑262;

Eff. July 1, 1983;

Amended Eff. June 1, 1988; November 1, 1985; September 1,

1983;

Repealed Eff. July 1, 1990.

 

 

 

 

 

SECTION .1000 ‑ ACQUISITIONS OF STOCK ASSOCIATIONS

 

04 NCAC 16I .1001            REQUIRED ACQUISITION APPLICATIONS

A person seeking to acquire control of any stock savings

institution shall file with the Administrator one manually signed copy of an

Acquisition Application.

 

History Note:        Filed as a Temporary Amendment Eff.

October 2, 1991 for a period of 180 days to expire on

March 31, 1992;

Statutory Authority G.S. 54B‑55; 54B‑261; 54B‑262;

54C‑53; 54C‑195; 54C‑196;

Eff. July 1, 1983;

Amended Eff. February 15, 1992; July 1, 1990.

 

 

 

04 NCAC 16I .1002            FOREIGN APPLICANTS

(a)  If the applicant is a corporation for profit or having

a capital stock, but not created under any general or special act of the State

of North Carolina, then that corporation shall procure a Certificate of Authority

from the Secretary of State under the provisions of Article 15 of Chapter 55 of

the North Carolina General Statutes, before it shall be approved by the

Administrator to obtain control of a stock savings institution.  The applicant

shall file a copy of the Certificate of Authority from the Secretary of State

to evidence this.  If the applicant foreign corporation has been certified to

conduct business in this State under some provision of law of this State other

than Chapter 55 of the General Statutes, then evidence of that certification

shall be filed with the Administrator for his review and approval to meet the

requirements of this Rule.

(b)  If the applicant is a person other than a corporation,

and not a resident of this State, then the applicant shall by a duly executed

instrument filed with the Administrator, constitute as its true and lawful

attorney the Secretary of State and his successors in office, or some other

competent resident of this State, upon whom all original process in any action

or legal proceedings against it may be served, and therein shall agree that any

original process against it which may be served upon the Secretary of State or

other competent person, shall be of the same force and validity as if served on

the person, and the authority thereof shall continue in force irrevocable so

long as the person continues to control a state savings institution.

 

History Note:        Filed as a Temporary Amendment Eff.

October 2, 1991 for a period of 180 days to expire on

March 31, 1992;

Statutory Authority G.S. 54B‑55; 54C‑53;

Eff. July 1, 1983;

Amended Eff. February 15, 1992; September 1, 1983.

 

 

 

04 NCAC 16I .1003            ACQUISITION PROCEDURE

(a)  Upon determining that an Acquisition Application is

properly executed and is not materially incomplete, the Administrator shall

consider its approval.  If the application is not approved, the Administrator

will notify the applicant of such, and state the reasons for its disapproval. 

The Administrator may include advice to the applicant as to what may be

required by way of amendment or other requirement, to cause approval of the

application.

(b)  If the Administrator approves the application, the

applicant shall be notified.  Such notice shall include any requirements or

stipulations the Administrator may make as conditions of approval.

 

History Note:        Filed as a Temporary Amendment Eff.

October 2, 1991 for a period of 180 days to expire on

March 31, 1992;

Statutory Authority G.S. 54B‑55; 54B‑261; 54B‑262;

54C‑53; 54C‑195; 54C‑196;

Eff. July 1, 1983;

Amended Eff. February 15, 1992; July 1, 1990; June 1,

1988.

 

 

 

 

 

SECTION .1100 ‑ REGISTRATION: SUPERVISION: REPORTS:

FILINGS: BOOKS AND       RECORDS

 

04 NCAC 16I .1101            REGISTRATION

(a)  Not later than ten business days after becoming a

holding company, each holding company shall register with the Administrator by

filing a Registration Statement.

(b)  The Administrator may at any time, upon his own motion

or otherwise, release a holding company from registration, if the Administrator

determines that such company or person no longer controls a stock savings

institution.

 

History Note:        Filed as a Temporary Amendment Eff.

October 2, 1991 for a period of 180 days to expire on

March 31, 1992;

Authority G.S. 54B‑55: 54B‑261; 54B‑262;

54C‑53; 54C‑195; 54C‑196;

Eff. July 1, 1983;

Amended Eff. February 15, 1992; July 1, 1990; November 1,

1985.

 

 

 

04 NCAC 16I .1102            SUPERVISION

(a)  Officers, directors, and employees of holding companies

have the same duties and responsibilities, express or implied, as officers,

directors, and employees of savings institutions.

(b)  Each registrant shall be subject to such examinations

as the Administrator may prescribe.  The cost of such examinations shall be

assessed against and paid by such registrant.

 

History Note:        Filed as a Temporary Amendment Eff.

October 2, 1991 for a period of 180 days to expire on

March 31, 1992;

Statutory Authority G.S. 54B‑55; 54B‑57; 54B‑261;

54B‑262; 54C‑53; 54C‑195; 54C‑196;

Eff. July 1, 1983;

Amended Eff. February 15, 1992; July 1, 1990; November 1,

1985.

 

 

 

04 NCAC 16I .1103            ANNUAL REPORTS

Each registrant will file an annual report with the

Administrator in the specified form.  In addition to these, each registrant

will file such interim reports as may be prescribed by the Administrator.

 

History Note:        Authority G.S. 54B‑55; 43B‑261;

54B‑262; 54C‑53; 54C‑195; 54C‑196;

Eff. July 1, 1983.

 

 

 

04 NCAC 16I .1104            FILING AND APPROVAL: AMENDMENTS TO

ARTICLES AND BYLAWS

(a)  Prior to any filing with the Secretary of State of the

State of North Carolina, a holding company will file with the Administrator

copies of any proposed amendment to its articles of incorporation.  The

Administrator must give his approval to the content and form of such proposed

amendments.

(b)  Before any amendments to the bylaws of a holding

company can become effective, a certified copy of such amendments shall be

filed with and approved by the Administrator.  In the event of the failure of

the Administrator to act upon the amendment within 25 days of receipt, the

bylaws shall be deemed approved.

 

History Note:        Filed as a Temporary Amendment Eff.

October 2, 1991 for a period of 180 days to expire on

March 31, 1992;

Statutory Authority G.S. 54B‑55; 54B‑261; 54B‑262;

54C‑53; 54C‑195; 54C‑196;

Eff. July 1, 1983;

Amended Eff. February 15, 1992; July 1, 1990.

 

 

 

04 NCAC 16I .1105            REPORTS

(a)  Each registrant shall file simultaneously with the

Administrator copies of any filings, documents, statements or reports required

to be filed with the appropriate federal regulatory authority.

(b)  Each registrant shall file with the Administrator such

reports or other filings as the Administrator may prescribe, to be made under

oath or otherwise, and to be in such form and for such periods as the

Administrator may prescribe.  Each such report or filing shall contain such information

concerning the operations of the holding company, and any related persons, as

the Administrator may require.

 

History Note:        Filed as a Temporary Amendment Eff.

October 2, 1991 for a period of 180 days to expire on

March 31, 1992;

Statutory Authority G.S. 54B‑55; 54B‑261; 54B‑262;

54C‑53; 54C‑195; 54C‑196;

Eff. July 1, 1983;

Amended Eff. February 15, 1992; July 1, 1990.

 

 

 

04 NCAC 16I .1106            BOOKS AND RECORDS

In addition to general corporate records maintained in the

ordinary course of business as required by Sections 16D .0300 and 16K .0300 of

this Chapter, each registrant shall maintain such books and records in such

form as may be prescribed by the Administrator.  The books and records of a

controlled savings institution or its holding company shall not be removed from

this State without the prior written approval of the Administrator.

 

History Note:        Filed as a Temporary Amendment Eff.

October 2, 1991 for a period of 180 days to expire on

March 31, 1992;

Statutory Authority G.S. 54B‑55; 54B‑261; 54B‑262;

54C‑53; 54C‑195; 54C‑196;

Eff. July 1, 1983;

Amended Eff. February 15, 1992; July 1, 1990.

 

 

 

 

 

SECTION .1200 ‑ CONVERSION OF MUTUAL ASSOCIATION INTO

HOLDING COMPANY

 

04 NCAC 16I .1201            REQUIRED ACQUISITION APPLICATION

When it is proposed that a mutual savings institution shall

convert to a holding company by means of a plan of conversion, the mutual

savings institution shall file with the Administrator one manually signed copy

of an Acquisition Application.

 

History Note:        Filed as a Temporary Amendment Eff.

October 2, 1991 for a period of 180 days to expire on

March 31, 1992;

Statutory Authority G.S. 54B‑55; 54B‑261; 54B‑262;

54C‑53; 54C‑195; 54C‑196;

Eff. July 1, 1990;

Amended Eff. February 15, 1992.

 

 

 

04 NCAC 16I .1202            CONVERSION PROCEDURE

(a)  Upon determining that an Acquisition Application is

properly executed and is not materially incomplete, the Administrator shall

consider the application filed.  If the Plan of Conversion is not approved, the

Administrator shall notify the applicant of such, and state the reasons for its

disapproval.  The Administrator may include advice to the applicant as to what

may be required by way of amendment or other requirement, to cause approval of

the Plan of Conversion.

(b)  If the Administrator approves the Plan of Conversion,

the applicant shall be notified.  Thereafter, a regular or special meeting of

the members of the subject savings institution shall be called after advance

written notice to the members of not less than 20 days specifying the time,

place and purpose for calling of the meeting.  Notice shall be published in at

least one newspaper of general circulation in each county where the savings

institution has an office.  The applicant shall file publisher's affidavits

with the Administrator to confirm publication of notice.

(c)  The results of the member's meeting shall be confirmed

to the Administrator by filing attested minutes of the meeting.  If the members

approve conversion of the savings institution to a mutual holding company, the

Administrator shall enter his final order approving the conversion.

(d)  The Administrator may waive or alter any requirements

set forth in this Rule upon a finding that compliance would work as undue

financial hardship on the applicant, would adversely affect the safe and sound

operation of the applicant, or would have an unintended negative impact upon

the public or the applicant.

 

History Note:        Filed as a Temporary Amendment Eff.

October 2, 1991 for a period of 180 days to expire on

March 31, 1992;

Statutory Authority G.S. 54B‑55; 54B‑261; 54B‑262;

54C‑53; 54C‑195; 54C‑196;

Eff. July 1, 1990;

Amended Eff. February 15, 1992.

 

 

 

04 NCAC 16I .1203            PLAN OF CONVERSION REQUIREMENTS

(a)  The plan of conversion to a mutual holding company

shall require the chartering of a stock subsidiary.  At least 51 percent of the

stock of this subsidiary shall be owned by the mutual holding company.

(b)  Share of the stock subsidiary may be issued to the

holding company only after sufficient assets to match transferred deposit

liabilities are transferred by the holding company to the stock subsidiary and

only after written confirmation of continuation of insurance of accounts for

the stock subsidiary is received from the federal insurer of accounts.

(c)  Upon completion of the conversion, the mutual savings

institution shall become a mutual holding company and shall cease to be a

savings institution or depository institution of any type.

 

History Note:        Filed as a Temporary Amendment Eff.

October 2, 1991 for a period of 180 days to expire on

March 31, 1992;

Statutory Authority G.S. 54B‑55; 54B‑262; 54C‑53;

54C‑195;

Eff. July 1, 1990;

Amended Eff. February 15, 1992.

 

 

 

 

 

SECTION .1300 ‑ HOLDING COMPANY ACQUISITIONS

 

04 NCAC 16I .1301            REQUIRED ACQUISITION APPLICATION

A person seeking to acquire control of any holding company

shall file with the Administrator one manually signed copy of an Acquisition

Application.

 

History Note:        Filed as a Temporary Amendment Eff.

October 2, 1991 for a period of 180 days to expire on

March 31, 1992;

Statutory Authority G.S. 54B‑55; 54B‑262; 54C‑53;

54C‑195;

Eff. July 1, 1990;

Amended Eff. February 15, 1992.

 

 

 

04 NCAC 16I .1302            ACQUISITION PROCEDURE

(a)  Upon determining that an Acquisition Application is

properly executed and is not materially incomplete, the Administrator shall

consider the application filed.  If the application is not approved, the Administrator

shall notify the applicant of such, and state the reasons for its disapproval. 

The Administrator may include advice to the applicant as to what may be

required by way of amendment or other requirement to cause approval of the

application.

(b)  If the Administrator approves the application, the

applicant shall be notified.  Such notice shall include any requirements or

stipulations the Administrator may make as conditions of approval.

(c)  The Administrator may waive or alter, for good cause, any

requirements set forth in this Rule.

 

History Note:        Authority G.S. 54B‑55; 54B‑262;

54C‑53; 54C‑195;

Eff. July 1, 1990.