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RULE §69.9 Designation as Supervisory Merger

Published: 2015

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(a) The commissioner may designate a merger to be a
supervisory merger when:
  (1) the commissioner has placed one or more of the
associations involved under voluntary supervisory control or under
conservatorship pursuant to the Texas Savings and Loan Act, Subchapter
I, Article 852a; or
  (2) the commissioner has determined that one or more
of the associations subject to this Act or savings banks subject to
the Texas Savings Bank Act is in an unsafe condition; or
  (3) the Office of Thrift Supervision, or the Federal
Deposit Insurance Corporation, or their successor has determined,
and certified to the commissioner, that the merger of a federal association
or savings bank, or a state or national bank having its home office
in the state and an association subject to this Act is necessary to
prevent the failure or possible failure of the said institution.
(b) For purposes of this section, unsafe condition
shall mean that the association (or associations) is insolvent or
is in imminent danger of insolvency, or that there has been a substantial
dissipation of assets or earnings due to any violation or violations
of applicable law, rules, or regulations, or to any unsafe or unsound
practice or practices; or that the association is in an unsafe and
unsound condition to transact business in that there has been a substantial
reduction of its net worth; or that the association and its directors
and officers have violated any material conditions of its charter
or bylaws, the terms of any order issued by the commissioner, or any
agreement between the association and the commissioner; or that the
association, its directors, and officers have concealed or refused
to permit examination of the books, papers, accounts, records, and
affairs, of the association by the commissioner or other duly authorized
personnel of the Texas Department of Savings and Mortgage Lending;
or any other condition affecting the association which the commissioner
and the board of directors of the association agree place the association
in an unsafe condition.

Source Note: The provisions of this §69.9 adopted to be effective July 26, 1978, 3 TexReg 2441; amended to be effective August 14, 1981, 6 TexReg 2842; amended to be effective May 6, 1986, 11 TexReg 1873; amended to be effective March 18, 1994, 19 TexReg 1541; amended to be effective March 8, 2012, 37 TexReg 1502