2013 Indiana Code TITLE 28. FINANCIAL INSTITUTIONS ARTICLE 6.2. MUTUAL SAVINGS BANK HOLDING COMPANIES CHAPTER 5. POWERS OF A MUTUAL HOLDING COMPANY
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IC 28-6.2-5
Chapter 5. Powers of a Mutual Holding Company
IC 28-6.2-5-1
Investment and acquisition powers; other powers
Sec. 1. A mutual holding company may do the following:
(1) Invest in or acquire control of:
(A) a bank, savings bank, or savings association; or
(B) the holding company of a bank, savings bank, or savings
association.
(2) Acquire a mutual savings bank or mutual savings
association by merger with an interim or existing subsidiary
savings bank of the mutual holding company from which the
mutual holding company has members.
(3) Acquire control of another mutual holding company by:
(A) merging with or into it; or
(B) merging it with or into a subsidiary interim holding
company;
with the consent of the department and subject to conditions the
department may prescribe, upon an affirmative vote of at least
two-thirds (2/3) of the board of each entity.
(4) Acquire control of a savings bank holding company or
savings association holding company in the stock form with the
written approval of the department. An acquired holding
company may be held as a subsidiary or merged into the mutual
holding company.
(5) Invest in or acquire control of any corporation that is
engaged exclusively in activities approved by the department.
(6) Invest in securities in which a savings bank may invest in
under IC 28-6.1.
(7) Engage in activities in which a savings bank may engage in
under IC 28-6.1.
(8) Furnish or perform management services for a subsidiary.
(9) Hold, manage, or liquidate assets owned or acquired from
a subsidiary.
(10) Hold or manage property that the mutual holding company
or a subsidiary uses.
(11) Engage in any activity that the federal reserve board
permits a bank holding company to engage in under 12 CFR
225, subpart C, unless limited or prohibited by the department.
(12) Convert itself and any savings bank subsidiary into a
mutual savings bank under a plan that:
(A) is approved by the department;
(B) provides that the converting mutual holding company
ceases to engage in activities in which the converted savings
bank may not engage; and
(C) provides that stock in a subsidiary savings bank that is
not held by the converting mutual holding company is
redeemed.
As added by P.L.122-1994, SEC.101. Amended by P.L.79-1998,
SEC.79.
IC 28-6.2-5-2
Pledging stock
Sec. 2. (a) A mutual holding company, to collateralize an
obligation of its own or of any of its subsidiaries or affiliates, may
pledge any stock that comprises a minority interest in any subsidiary
or any stock that the mutual holding company holds in the following:
(1) A subsidiary savings bank, if the proceeds or other benefit
of the obligation collateralized are received by the savings bank
whose stock is pledged.
(2) A subsidiary savings bank that was in the stock form when
acquired.
(3) Any nondepository subsidiary.
(b) A pledge of stock that is not described in subsection (a) may
not be made without the prior written approval of the director.
As added by P.L.122-1994, SEC.101.
IC 28-6.2-5-3
Pledging stock; notification; certification of transfer of proceeds
Sec. 3. Within ten (10) days after any pledge of stock, a mutual
holding company shall:
(1) notify the director in writing regarding the terms of the
transaction, including the amount of principal and interest, the
repayment terms, the maturity date, the nature and amount of
collateral, and the terms governing seizure of the collateral; and
(2) include in the notice a certification that the proceeds of the
loan have been transferred to the subsidiary savings bank whose
stock has been pledged under section 2(a) of this chapter.
As added by P.L.122-1994, SEC.101.
IC 28-6.2-5-4
Notice of nonpayment
Sec. 4. A mutual holding company that fails to make any payment
on a loan secured by the pledge of stock by the date on which the
payment is due shall, on the first day after the payment is due and not
made, provide written notice of nonpayment to the director.
As added by P.L.122-1994, SEC.101.
IC 28-6.2-5-5
Repurchase of stock; written approval
Sec. 5. A subsidiary savings bank of a mutual holding company
that has any stockholders other than the savings bank's mutual
holding company may not repurchase any share of stock within three
(3) years of the stock's date of issuance without the prior written
approval of the director unless the repurchase:
(1) is part of a general repurchase made on a pro rata basis
under an offer approved in writing by the director and made to
all stockholders of the savings bank, except that the savings
bank's mutual holding company may be excluded from the
repurchase with the department's approval; and
(2) is accomplished in the open market by a stock benefit plan
of the savings bank in an amount reasonable and appropriate to
fund the plan.
As added by P.L.122-1994, SEC.101.
IC 28-6.2-5-6
Acquisition of additional shares of stock
Sec. 6. A mutual holding company may, at any time, and without
prior approval of the department, acquire additional shares of the
stock of a subsidiary savings bank.
As added by P.L.122-1994, SEC.101.
IC 28-6.2-5-7
Permissive transfer of stock, assets, or liabilities
Sec. 7. With the written approval of the department, a mutual
holding company may do the following:
(1) Directly or indirectly transfer any interest in stock that it
holds in any subsidiary savings bank.
(2) Cause or permit the transfer of all or a substantial portion of
the assets or liabilities of any subsidiary savings bank.
As added by P.L.122-1994, SEC.101.
IC 28-6.2-5-8
Waiver of right to receive dividend; authorization
Sec. 8. Unless authorized by the director, a mutual holding
company may not waive its right to receive any dividend declared by
a subsidiary.
As added by P.L.122-1994, SEC.101.
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