Source: https://www.fdic.gov/regulations/laws/rules/2000-5600.html
Timestamp: 2019-04-24 12:22:09+00:00

Document:
333.1 Classification of general character of business.
333.2 Change in general character of business.
333.3 Consent required for exercise of trust powers.
333.4 Conversions from mutual to stock form.
333.101 Prior consent not required.
AUTHORITY: 12 U.S.C. 1816; 1817(i); 1818; 1819(a) ("Seventh", "Eighth", and "Tenth"), 1828, 1828(m), 1831p--1(c), 5414 and 5415.
SOURCE: The provisions of this Part 333 appear at 15 Fed. Reg. 8644, December 6, 1950, except as otherwise noted.
§ 333.1 Classification of general character of business.
State nonmember insured banks are divided into five categories for the purpose of classifying their general character or type of business,2 viz: commercial banks, banks and trust companies, savings banks (including mutual and stock), industrial banks, and cash depositories.
§ 333.2 Change in general character of business.
No state nonmember insured bank (except a District bank) or branch thereof shall hereafter cause or permit any change to be made in the general character or type of business exercised by it after the effective date of this part without the prior written consent of the Corporation.
§ 333.3 Consent required for exercise of trust powers.
Except as provided in 12 CFR 303.242(a), a State nonmember bank or State savings association seeking to exercise trust powers must obtain prior written consent from the FDIC. Procedures for obtaining the FDIC's prior written consent are set forth in 12 CFR 303.242.
§ 333.4 Conversions from mutual to stock form.
(a) Scope. This section applies to the conversion of insured mutual state savings banks to the stock form of ownership. It supplements the procedural and other requirements for such conversions in subpart I of part 303 of this chapter. This section also applies, to the extent appropriate, to the reorganization of insured mutual state savings banks to the mutual holding company form of ownership. As determined by the Board of Directors of the FDIC on a case-by-case basis, the requirements of paragraphs (d), (e), and (f) of this section do not apply to mutual-to-stock conversions of insured mutual state savings banks whose capital category under § 324.403 of this chapter is "undercapitalized", "significantly undercapitalized" or "critically undercapitalized". As provided in § 303.162 of this chapter, the Board of Directors of the FDIC may grant a waiver in writing from any requirement of this section for good cause shown.
(b) Definition of Eligible Depositor. For purposes of this section, eligible depositors are depositors holding qualifying deposits at the bank as of a date designated in the bank's plan of conversion that is not less than one year prior to the date of adoption of the plan of conversion by the converting bank's board of directors/trustees.
(3) Management shall not use proxies executed outside the context of the proposed conversion to satisfy the voting requirement imposed in the previous paragraph.
(d) Restriction on repurchase of stock. An insured mutual state savings bank that has converted from the mutual to stock form of ownership may not repurchase its capital stock within one year following the date of its conversion to stock form, except that stock repurchases of no greater than 5% of the bank's outstanding capital stock may be repurchased during this one-year period where compelling and valid business reasons are established, to the satisfaction of the FDIC. Any stock repurchases shall be subject to the requirements of section 18(i)(1) of the Federal Deposit Insurance Act (12 U.S.C. 1828(i)(1)).
(5) For management or employee stock benefit plans, no conversion stock is used to fund the plans.
§ 333.101 Prior consent not required.
(a) The extension by any State nonmember insured bank of its business to include personal, character or installment loans, or the extension by an industrial bank of its business to include the business of a commercial bank or State savings association, is not a change in the general character or type of business requiring the prior written consent of the Corporation.
(3) The bank's or savings association's acceptance of such accounts without trust powers is not contrary to applicable State law.
Editor's Note: There is no footnote 1.

References: § 333

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 § 324
 § 303

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