C.M.R. 02, 029, ch. 132 - MUTUAL HOLDING COMPANIES (REG. 32)

SUMMARY: P.L. 257, enacted June 4, 1993, amended statutes relating to the formation of mutual holding companies. The amendments permit the subsidiary savings institution to issue a minority amount of stock to shareholders other than its parent mutual holding company and provide for minority representation on the subsidiary savings institution's board of directors. Although the statute initially authorizing the formation of a mutual holding company was enacted in 1985, the Bureau did not promulgate regulations nor have there been any mutual holding companies formed in Maine. This regulation is being promulgated to establish rules for the formation of mutual holding companies and for the issuance of minority stock by subsidiary stock institutions. It closely follows rules, issued by the Office of Thrift Supervision ("OTS"), which became effective in September, 1993, and were amended effective May, 1994.