Section 1075.1115  Prohibition Against Approval of Certain Applications for Reorganization

No application for reorganization may be approved by the Director if:

a)         The plan of reorganization adopted by the applicant's board of directors is not in accordance with this Subpart;

b)         The reorganization reasonably could be expected to result in a resulting or acquiree savings bank or pre-existing depository institution with capital below requirements established by the Director and by Federal law;

c)         The reorganization results in a taxable reorganization 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 a resulting or acquiree or pre-existing savings bank; or

d)         A resulting savings bank does not secure insurance of its deposit accounts backed by the full faith and credit of the United States government before reorganization.

(Source:  Amended at 30 Ill. Reg. 19068, effective December 1, 2006)