La. Admin. Code tit. 10 § III-501

Current through Register Vol. 50, No. 12, December 20, 2024

Section III-501 - General; Considerations for Approval

A. A state bank or a bank holding company may establish or acquire a subsidiary mortgage corporation upon the prior written approval of the Commissioner of Financial Institutions and subject to the provisions of this rule. The ownership of a subsidiary mortgage corporation shall be deemed to be incidental to the exercise of powers enumerated in R.S. 6:241 and 242. Each location of the subsidiary mortgage corporation must obtain the prior written approval of the commissioner prior to its establishment.

B. To determine whether or not he shall approve the formation or acquisition of a subsidiary mortgage corporation. or the opening of an additional location, the commissioner shall consider the following:

1. the financial condition of the parent state bank or the state bank subsidiary of the parent holding company;

2. the economic impact on the parent of the operation of the proposed subsidiary mortgage corporation;

3. the proposed method of funding the operations of the subsidiary mortgage corporation;

4. the needs of the community to be served by the subsidiary mortgage corporation.

La. Admin. Code tit. 10, § III-501

Promulgated by the Department of Commerce, Office of Financial Institutions, LR 7:484 (October 1981), amended LR 13:739 (December 1987).

AUTHORITY NOTE: Promulgated in accordance with R.S. 6:237 and R.S. 6:322.