Sec. 1075.1115 - Prohibition Against Approval of Certain Applications for Reorganization

ยง 1075.1115. Prohibition Against Approval of Certain Applications for Reorganization

No application for reorganization may be approved by the Director if:

a) The plan of reorganization adopted by the applicant's board of directors is not in accordance with this Subpart;

b) The reorganization reasonably could be expected to result in a resulting or acquiree savings bank or pre-existing depository institution with capital below requirements established by the Director and by Federal law;

c) The reorganization results in a taxable reorganization under the United States Internal Revenue Code of 1986 ( 26 USC 1 et seq.) and the Director upon a written finding determines that the reorganization will endanger the safety and soundness of a resulting or acquiree or pre-existing savings bank; or

d) A resulting savings bank does not secure insurance of its deposit accounts backed by the full faith and credit of the United States government before reorganization.

(

Amended at 30 Ill. Reg. 19068, effective December 1, 2006

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