Qualified stock issuances by undercapitalized savings associations or holding companies.

CFR · 2024-01-01 · US · Title 12

(a) (b) (1) The shares of stock are issued by— (i) An undercapitalized savings association, which for purposes of this paragraph (b)(1)(i) shall mean any savings association— (A) The assets of which exceed the liabilities of such association; and (B) Which does not comply with one or more of the capital standards in effect under section 5(t) of HOLA; or (ii) A savings and loan holding company which is not a bank holding company but which controls an undercapitalized savings association if, at the time of issuance, the savings and loan holding company is legally obligated to contribute the net proceeds from the issuance of such stock to the capital of an undercapitalized savings association subsidiary of such holding company. (2) All shares of stock issued consist of previously unissued stock or treasury shares. (3) All shares of stock issued are purchased by a savings and loan holding company that is registered, as of the date of purchase, with the Board in accordance with the provisions of section 10(b) of the HOLA and the Board's regulations promulgated thereunder. (4) Subject to paragraph (c) of this section, the Board approves the purchase of the shares of stock by the acquiring savings and loan holding company. (5) The entire consideration for the stock issued is paid in cash by the acquiring savings and loan holding company. (6) At the time of the stock issuance, each savings association subsidiary of the acquiring savings and loan holding company (other than an associa

official document · source cfr-2024 · id 12:§ 238.41