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Can you summarize IC 28-1-7.5?
DEPARTMENT OF FINANCIAL INSTITUTIONS > Formation of Certain Bank Holding Companies
Short Summary
This legal document, governed by the Indiana Code, specifically under the section related to the formation of certain bank holding companies, outlines the requirements and procedures for the acquisition of bank, trust company, corporate fiduciary, or stock savings bank by a holding company under a plan of exchange. The document covers various aspects such as the approval process, filing requirements, public hearing, dissenting shareholders’ rights, and the preparation of articles of exchange. It specifies that the plan of exchange must be approved by the board of directors and shareholders of each corporation involved, and subsequently by the Department of Financial Institutions. Shareholders must be provided with a copy of the plan of exchange and have the right to vote on its approval. The document also outlines the filing requirements for the plan of exchange and statement disclosing required information with the Department of Financial Institutions. It further provides procedures for holding a public hearing to determine the fairness of the terms and provisions of the plan of exchange. The document states that the holding company shall redeem all outstanding shares of common stock after the plan of exchange becomes effective. It also clarifies that the bank, trust company, corporate fiduciary, or stock savings bank and the holding company are separate and distinct corporations, with no liability to each other’s creditors, depositors, or shareholders. The document mentions exemptions for acquisitions made under this chapter and does not prohibit other authorized procedures for acquiring shares of stock. Overall, this legal document governs the formation of certain bank holding companies and provides guidelines and procedures for the acquisition and exchange of shares between financial institutions and holding companies.
Whom does it apply to?
Corporations attempting to acquire or that have acquired outstanding shares of a bank, trust company, corporate fiduciary, or stock savings bank
What does it govern?
Formation of certain bank holding companies
What are exemptions?
No specific exemptions are mentioned in this document.
What are the Penalties?
No specific penalties are mentioned in this document.
Jurisdiction
Indiana