La. Admin. Code tit. 10 § V-1509

Current through Register Vol. 50, No. 11, November 20, 2024

Section V-1509 - Operations

A. Each subsidiary corporation main office, branch, agency or any other type facility of the subsidiary corporation shall require prior written approval of the commissioner based on his findings of the facts as presented.

B. A verified copy of all contracts, instruments, join ventures and partnership agreements and financing arrangements of the subsidiary investments shall be furnished to the commissioner within 30 days from date of approval.

C. The subsidiary agrees to furnish, at the expense of the subsidiary or association, an independent appraiser's report or other expert opinion as determined to be necessary by the commissioner for the purpose of establishing the value of any investments made by the subsidiary corporation.

D. Each subsidiary shall maintain bond coverage with an acceptable bonding company in an amount to adequately cover each director, officer, employee and agent who has access to cash or securities of the corporation. Such bond amount shall be in an amount equivalent to one percent of total assets but in no event shall be less than $25,000 nor more than $2,000,000. In lieu of a separate surety bond for the subsidiary, the association may obtain an extension rider to the surety bond coverage of the parent association.

E. All joint ventures and partnership agreements shall be reviewed by the attorney for the subsidiary, who shall render his opinion to the commissioner stating the obligation and responsibility of the subsidiary, as well as the parent association.

F. All directors of the association and subsidiary shall furnish affidavits fully disclosing any direct or indirect interest they may have in each investment made by the subsidiary.

G. Each request for approval of an investment by a subsidiary shall include a projected cash flow statement and a projected profit and loss statement setting forth funding requirements of the parent association and/or others.

H. An association's wholly owned subsidiary may operate a loan production office within a 100-mile radius of the main office, subject to the approval of the commissioner.

I. An association may invest in the partial ownership of a service corporation which originates loans and performs other service functions, not only for the investing association, but for other investors as well; also employs and pays its own personnel, and uses its own selected name, then this type service organization could operate statewide, if approved by the commissioner.

La. Admin. Code tit. 10, § V-1509

Promulgated by the Department of Commerce, Office of Financial Institutions, LR 6:541 (September 1980).

AUTHORITY NOTE: Promulgated in accordance with R.S. 6:902(B).