Procedure; approval by association and Commissioner; fee.
1. An association may reorganize, merge or consolidate with another state or federal association, if the reorganization, merger or consolidation is based upon a plan which has been adopted by the board of directors and approved at a regular or special stockholders’ meeting which has been called to consider the action. The approval must rest on a favorable vote of a majority of the voting power of the association as established by its articles.
2. Any such plan for reorganization, merger or consolidation must be approved by the Commissioner, who shall satisfy himself that the plan, if approved, would be equitable for the stockholders of the affected association or associations and would not impair the usefulness or success of other properly conducted associations in the community. In submitting an application for approval of any such plan, each association proposing to reorganize, merge or consolidate must provide a comprehensive review of its present financial statement and a projected view of the financial statement of the reorganized, merged or consolidated association.
3. Unless its action is specifically authorized by or taken in conformity with this chapter, no association may, directly or indirectly:
(a) Reorganize, merge or consolidate.
(b) Assume liability to pay savings accounts or other liabilities of any financial institution or any other organization, person or entity.
(c) Transfer assets to any financial institution or any other organization, person or entity in consideration of the transferee’s assumption of liability for any portion of the transferor’s savings accounts, deposits or other liability.
(d) Acquire the assets of any financial institution or any other organization, person or entity.
4. Each application which is made under this section must be accompanied by a fee payment of $150. The responsibility for payment of the fee must be shared equally by the associations participating in each proposed plan.
Last modified: February 26, 2006