Operating subsidiaries of a Federal savings association.

CFR · 2024-01-01 · US · Title 12

(a) (b) (c) (d) [Reserved] (e) (ii) In addition to OCC authorization, before it begins business an operating subsidiary also must comply with other laws applicable to it and its proposed business, including applicable licensing or registration requirements, if any, such as registration requirements under securities laws. (2) (A) The savings association has the ability to control the management and operations of the subsidiary, and no other person or entity has the ability to exercise effective control or influence over the management or operations of the subsidiary to an extent equal to or greater than that of the savings association or an operating subsidiary thereof; (B) The parent savings association owns and controls more than 50 percent of the voting (or similar type of controlling) interest of the operating subsidiary, or the parent savings association otherwise controls the operating subsidiary and no other party controls a percentage of the voting (or similar type of controlling) interest of the operating subsidiary greater than the savings association's interest; and (C) The operating subsidiary is consolidated with the savings association under GAAP. (ii) Subject to the requirements in this section, a Federal savings association may hold another insured depository institution as an operating subsidiary. (iii) However, the following entities are not operating subsidiaries subject to this section: (A) A subsidiary in which the savings association's investment is made

official document · source cfr-2024 · id 12:§ 5.38