Prohibition on Approval of Certain Applications for Conversion

Section 1075 Section 1075.1820  Prohibition on Approval of Certain Applications for Conversion No application for conversion may be approved by the Director if: a)         The plan of conversion adopted by the applicant's board of directors is not in accordance with this Subpart; b)         The conversion reasonably could be expected to result in a reduction of the applicant's capital below requirements established by the Director and by Federal law; c)         The conversion may result in a taxable reorganization of the applicant 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 the converting savings bank; d)         The converted savings bank does not secure insurance of its deposit accounts backed by the full faith and credit of the United States government before commencing business; or e)         Where a holding company is contemplated, the holding company will not be either a bank holding company registered with the Federal Reserve Board under the Bank Holding Company Act (12 USC 1841 et seq.) or a savings and loan holding company registered with the Office of Thrift Supervision under the Home Owners' Loan Act (12 USC 1461 et seq.).