Review, approval, or denial of application for conversion.

CFR · 2024-01-01 · US · Title 12

(a) (1) The conversion complies with this part; (2) The savings association will meet its regulatory capital requirements under 12 CFR part 3 or part 324, as applicable, after the conversion; and (3) The conversion will not result in a taxable reorganization under the Internal Revenue Code of 1986, as amended. (b) (1) Independent persons experienced and expert in corporate appraisal, and acceptable to the appropriate Federal banking agency, must prepare the appraisal report. (2) An affiliate of the appraiser may serve as an underwriter or selling agent, if the savings association ensures that the appraiser is separate from the underwriter or selling agent affiliate and the underwriter or selling agent affiliate does not make recommendations or affect the appraisal. (3) The appraiser may not receive any fee in connection with the conversion other than for appraisal services. (4) The appraisal report must include a complete and detailed description of the elements of the appraisal, a justification for the appraisal methodology, and sufficient support for the conclusions. (5) If the appraisal is based on a capitalization of the savings association's pro forma income, it must indicate the basis for determining the income to be derived from the sale of shares, and demonstrate that the earnings multiple used is appropriate, including future earnings growth assumptions. (6) If the appraisal is based on a comparison of the savings association's shares with outstanding shares of exist

official document · source cfr-2024 · id 12:§ 192.200