OTS Issues Revised Proposed Rule Regarding Mutual Thrifts, Mutual Holding Companies and Mutual-to-Stock Conversions
The OTS issued a revised notice of proposed rulemaking (the "Re-Proposed Rule," OTS 2002-11) regarding mutual thrifts, mutual holding companies ("MHCs") and mutual-to-stock conversions. The Re- Proposed Rule modifies an earlier proposed version of the Re-Proposed Rule described in the July 25, 2000 issue of the Alert. Comments on the Re-Proposed Rule are due to the OTS no later than May 9, 2002. The most significant changes made in the Re-Proposed Rule include: (1) elimination of the requirement that a thrift obtain an OTS "non-objection" letter with respect to its business plan before seeking to convert from a mutual to a stock form; (2) authorization to include stock repurchases as part of a business plan; (3) clarification of the standards that the OTS will use in evaluating a business plan; (4) authorization for subsidiaries of MHCs to adopt post-conversion
