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Can you summarize 9-B MERS Part 10, Chapter 105?
OTHER FINANCIAL ENTITIES > MUTUAL HOLDING COMPANY
Short Summary
This legal document pertains to the corporate existence and powers of mutual holding companies, the reorganization of mutual financial institutions, and the formation of subsidiary universal banks. It specifies that upon the reorganization of a mutual financial institution, the legal existence of the institution continues as a mutual holding company. The mutual holding company must be governed by a board of corporators, who elect a board of directors. The document outlines the powers of a mutual holding company, including the ability to invest in the stock of a financial institution, acquire other financial institutions through merger, and exercise powers granted to mutual financial institutions under state laws. The document also references specific sections and amendments in the Maine Revised Statutes related to mutual holding companies. The reorganization process involves chartering a subsidiary universal bank and transferring a substantial part of the assets and liabilities to the subsidiary universal bank. The subsidiary universal bank must meet minimum capital requirements. Mutual financial institutions seeking to establish a mutual holding company or convert to a stock financial institution holding company must follow the specified approval process. The subsidiary universal bank has the power to issue common stock and securities convertible into common stock, subject to certain limitations. Reporting requirements are imposed on the subsidiary universal bank for issuing common stock or securities to persons other than the mutual holding company. The subsidiary universal bank retains its powers, rights, and privileges, subject to applicable limitations. This chapter of the Maine Revised Statutes governs mutual financial institutions, mutual holding companies, and subsidiary universal banks, providing the definitions for these entities and establishing their legal framework within the state of Maine.
Whom does it apply to?
Mutual financial institutions, mutual holding companies, subsidiary universal banks
What does it govern?
Corporate existence and powers of mutual holding companies, reorganization of mutual financial institutions, formation of subsidiary universal banks
What are exemptions?
No specific exemptions are mentioned.
What are the Penalties?
No specific penalties are mentioned.
Jurisdiction
Maine