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DEPARTMENT OF FINANCIAL INSTITUTIONS > Conversion of an Out-of-State Financial Institution Charter Into a Commercial Bank
Short Summary
This legal document, governed by the Indiana Code, specifically the Department of Financial Institutions, outlines the procedures for charter conversions of out-of-state financial institutions into commercial banks. The document states that the out-of-state financial institution must prepare and submit a plan of charter conversion to the department, which must include the terms and conditions required by the department. The plan must be adopted by a majority of the board of directors and approved by the department. Additionally, the plan must be conditioned upon the approval of a majority of the total number of votes cast by the shareholders. The out-of-state financial institution is also required to provide any additional relevant information requested by the department. This document, added by P.L.1-2006, SEC.490, provides the necessary guidelines for the conversion process. The Department of Financial Institutions has the authority to approve or disapprove the plan of charter conversion. The department may solicit the votes of voting parties before receiving approval. The plan of charter conversion can only be approved if certain requirements are fulfilled, including the safe and sound operation of the resulting commercial bank, adequate capital, satisfactory management, and the qualification of the management or other principals of the out-of-state financial institution. The approval must also ensure that the interests of depositors, creditors, and the public will not be jeopardized by the proposed charter conversion. Upon conversion, the resulting commercial bank possesses all the rights, privileges, immunities, and powers of a commercial bank. It is subject to all the duties, restrictions, obligations, and liabilities of a commercial bank, and succeeds by operation of law to all rights and property of the converting out-of-state financial institution. The department may authorize the resulting commercial bank to wind up certain activities and retain certain assets for a transitional period not exceeding ten years after the effective time of the charter conversion. The converted commercial bank retains all branches lawfully established. The converting out-of-state financial institution must file articles of charter conversion with the secretary of state and the county recorder. Upon the effective time of charter conversion, the converted commercial bank becomes subject to all statutes and rules applicable to commercial banks.
Whom does it apply to?
Out-of-state financial institutions seeking to convert their charter into a commercial bank
What does it govern?
Charter conversions of out-of-state financial institutions into commercial banks
What are exemptions?
No specific exemptions are mentioned.
What are the Penalties?
No specific penalties are mentioned.
Jurisdiction
Indiana