Sec. 8. (a) The department may approve or disapprove the plan of charter conversion filed under section 7 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 28-1-31-8

  • charter conversion: means the conversion of an out-of-state financial institution to a commercial bank. See Indiana Code 28-1-31-1
  • commercial bank: means a bank or trust company (as defined by IC 28-1-1-3(2)). See Indiana Code 28-1-31-2
  • department: means the department of financial institutions and, if applicable, the department's authorized delegate. See Indiana Code 28-1-31-3
  • out-of-state financial institution: means a bank or savings bank organized under the laws of any other state or the United States that has a branch or branches in Indiana that were established under IC 28-2-17 or IC 28-2-18. See Indiana Code 28-1-31-5
     (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) The resulting commercial bank will operate in a safe, sound, and prudent manner.

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

(3) The management or other principals of the out-of-state financial institution 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) 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.1-2006, SEC.490.

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