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TITLE 12 - BANKS AND BANKING
CHAPTER V - OFFICE OF THRIFT SUPERVISION, DEPARTMENT OF THE TREASURY
PART 563B - CONVERSIONS FROM MUTUAL TO STOCK FORM
subpart a - STANDARD CONVERSIONS
563b.510 - May I repurchase shares after conversion?
(a) You may not repurchase your shares in the first year after the conversion except: (1) In extraordinary circumstances, you may make open market repurchases of up to five percent of your outstanding stock in the first year after the conversion if you file a notice under 563b.515(a) and OTS does not disapprove your repurchase. OTS will not approve such repurchases unless the repurchase meets the standards in 563b.515(c), and the repurchase is consistent with paragraph (c) of this section.
(2) You may repurchase qualifying shares of a director or conduct an OTS approved repurchase pursuant to an offer made to all shareholders of your association.
(3) Repurchases to fund management recognition plans that have been ratified by shareholders do not count toward the repurchase limitations in this section. Repurchases in the first year to fund such plans require prior written notification to OTS.
(4) Purchases to fund tax qualified employee stock benefit plans do not count toward the repurchase limitations in this section.
(b) After the first year, you may repurchase your shares, subject to all other applicable regulatory and supervisory restrictions and paragraph (c) of this section.
(c) All stock repurchases are subject to the following restrictions.
(1) You may not repurchase your shares if the repurchase will reduce your regulatory capital below the amount required for your liquidation account under 563b.450. You must comply with the capital distribution requirements at part 563, subpart E of this chapter.
(2) The restrictions on share repurchases apply to a charitable organization under 563b.550. You must aggregate purchases of shares by the charitable organization with your repurchases.
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