Board review of the voluntary supervisory conversion application.

CFR · 2024-01-01 · US · Title 12

(a) (1) The mutual holding company does not meet the eligibility requirements for a voluntary supervisory conversion under §§ 239.65(d) or because the proceeds from the sale of the conversion stock, less the expenses of the conversion, would be insufficient to satisfy any applicable viability requirement; (2) The transaction is detrimental to or would cause potential injury to the mutual holding company, its subsidiary savings association, or the Deposit Insurance Fund or is contrary to the public interest; (3) The mutual holding company or the acquiror, or the controlling parties or directors and officers of the mutual (4) The mutual holding company fails to justify an employment contract incidental to the conversion, or the employment contract will be an unsafe or unsound practice or represent a sale of control. In a voluntary supervisory conversion, the Board generally will not approve employment contracts of more than one year for the existing management. (b) (i) The conversion stock sale must be complete within three months after the Board approves the application. The Board may grant an extension for good cause. (ii) The mutual holding company and the resulting stock holding company must comply with all filing requirements of subpart E of this part. (iii) The mutual holding company must submit an opinion of independent legal counsel indicating that the sale of the shares complies with all applicable state securities law requirements. (iv) The mutual holding company and

official document · source cfr-2024 · id 12:§ 239.66