Texas Administrative Code
Title 7 - BANKING AND SECURITIES
Part 4 - DEPARTMENT OF SAVINGS AND MORTGAGE LENDING
Chapter 60 - SAVINGS ASSOCIATIONS
Subchapter B - APPLICATIONS
Division 9 - SUBSIDIARY APPLICATIONS
Section 60.191 - Subsidiary Application
Universal Citation: 7 TX Admin Code ยง 60.191
Current through Reg. 49, No. 38; September 20, 2024
(a) In order to obtain approval for a subsidiary, the savings association must file with the Commissioner an application accompanied by the following information:
(1) an audited financial statement in the
event of acquisition of an existing company;
(2) a certified board resolution of the board
of the applying savings association approving the investment in the proposed
subsidiary;
(3) a certified copy of
the certificate of formation and bylaws of the proposed subsidiary;
(4) the acquisition terms, cost, or
investment requirements of the savings association;
(5) projected operating statements of the
proposed subsidiary for the first 3 years of operation;
(6) an attorney's opinion letter as to
direct, indirect, and/or contingent liability of the savings association and
the proposed subsidiary;
(7) an
outline of plans for operation of the proposed subsidiary;
(8) evidence that the proposed subsidiary
will have adequate management and operating personnel with proper supervision
by savings association management;
(9) plans for the safeguarding of assets of
the proposed subsidiary;
(10)
affidavits from all directors of a savings association and the proposed
subsidiary fully disclosing any interest they may directly or indirectly have
in the proposed subsidiary; and
(11) such other information or data as the
Commissioner may require.
(b) The Commissioner may approve an investment in a subsidiary if the Commissioner finds that:
(1) the operation and condition of the
savings association affords no basis for supervisory objection;
(2) there are adequate income and reserves to
support the proposed investment;
(3) the operations of the subsidiary will be
clearly distinguishable from those of the parent savings association;
and
(4) the subsidiary is or will
be profitably operating within a reasonable period of time or the investment is
reasonably projected to result in economic benefit to the savings
association.
(c) If the Commissioner finds that a savings association has abused or is abusing the authority to invest in a subsidiary, the Commissioner may exercise discretion in denying such savings association the right to future exercise thereof until such abuse or abuses have been corrected.
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