Voluntary supervisory conversions.

CFR · 2024-01-01 · US · Title 12

(a) (2) Sections 239.50 through 239.64 also apply to a voluntary supervisory conversion, unless a requirement is clearly inapplicable. (b) (1) Sell its shares to the public; (2) Convert into stock form by merging into a state-chartered corporation; or (3) Sell its shares directly to an acquiror, who may be an individual, company, depository institution, or depository institution holding company. (c) (d) (1) Either the mutual holding company or its subsidiary savings association is significantly undercapitalized under applicable regulatory capital requirements (or the mutual holding company or its subsidiary savings association is undercapitalized under applicable regulatory capital requirements and a standard conversion that would make it adequately capitalized is not feasible) and will be a viable entity following the conversion; (2) Severe financial conditions threaten stability of the mutual holding company, and a conversion is likely to improve its financial condition. (e) A mutual holding company or its subsidiary savings association will be a viable entity following the conversion if it satisfies all of the following: (1) It will be adequately capitalized as a result of the conversion; (2) It, the proposed conversion, and its acquiror(s) comply with applicable supervisory policies; (3) The transaction is in the best interest of the mutual holding company and its subsidiary savings associations, and the best interest of the Deposit Insurance Fund and the public; and (4)

official document · source cfr-2024 · id 12:§ 239.65