Sec. 10. (a) The department may approve or disapprove the plan of charter conversion filed under section 9 of this chapter.

     (b) Solicitation of the votes of voting parties may occur before receipt of the approval of the department.

Terms Used In Indiana Code 28-1-21.6-10

  • charter conversion: means the conversion of a savings association to a commercial bank. See Indiana Code 28-1-21.6-1
  • commercial bank: means a stock bank or trust company (as defined by IC 28-1-1-3(2)). See Indiana Code 28-1-21.6-2
  • department: means the Indiana department of financial institutions and, if applicable, the department's authorized delegate. See Indiana Code 28-1-21.6-3
  • savings association: means an institution (as defined in 12 U. See Indiana Code 28-1-21.6-6
  • voting parties: means in the case of a mutual savings association the mutual savings association's depositors or members, and in the case of a stock savings association the stock savings association's stockholders. See Indiana Code 28-1-21.6-7
     (c) The department may not approve the plan of charter conversion unless the department finds, after appropriate investigation or examination, and without the requirement of a public hearing, that the following requirements have been fulfilled:

(1) That the resulting commercial bank will operate in a safe, sound, and prudent manner.

(2) That the proposed charter conversion will not result in a commercial bank that has inadequate capital, unsatisfactory management, or poor earnings prospects.

(3) That the management or other principals of the savings association are qualified by character and financial responsibility to control and operate in a legal and proper manner the commercial bank proposed to be formed as a result of the charter conversion.

(4) That the interests of the depositors, the creditors, and the public generally will not be jeopardized by the proposed charter conversion.

As added by P.L.147-1990, SEC.2.

  Previous section
Next section  
 Chapter 21.6 Contents