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Can you summarize IC 28-1-7.1?
DEPARTMENT OF FINANCIAL INSTITUTIONS > Voluntary Supervisory Conversion
Short Summary
This legal document, found in the Indiana Code under the Department of Financial Institutions, pertains to the eligibility and conditions for a voluntary supervisory conversion of depository financial institutions with mutual ownership. The director has the authority to determine if the conversion satisfies certain conditions. These conditions include: (1) the institution being significantly undercapitalized or undercapitalized with a standard conversion to stock form not being feasible, and the converted institution or resulting entities being likely to be viable; (2) severe financial conditions threatening the stability of the institution, and a voluntary supervisory conversion to stock form likely improving the financial condition of the institution or resulting in entities with improved financial condition; or (3) the institution being in receivership or conservatorship, or in imminent danger of it, and the voluntary supervisory conversion enabling the termination or avoidance of receivership or conservatorship. This document was added to the Indiana Code by P.L.89-2011, SEC.33.
Whom does it apply to?
Depository financial institutions with mutual ownership
What does it govern?
Voluntary supervisory conversion of depository financial institutions with mutual ownership
What are exemptions?
Depositors of a depository financial institution with mutual ownership do not have the right to approve or participate in a voluntary supervisory conversion, and will not have any legal or beneficial ownership interests in the converted depository financial institution, unless the department allows otherwise.
What are the Penalties?
No specific penalties are mentioned in this document.
Jurisdiction
Indiana