Banking Regulation 1

Regulation Authority:

R.I.Gen. Laws Sections 19-2-14.1 and 42-14-17

Purpose and Reason:

The purpose of this Regulation is to set forth procedures to carry out the provisions of R.I.Gen. Laws Section 19-2-14.1 entitled "Mutual holding companies" and to protect and preserve the interests and rights of depositors of a reorganizing mutual financial institution or an intermediate subsidiary financial institution of a mutual holding company or a subsidiary holding company. This Regulation establishes procedures, requirements and options for the reorganization of mutual financial institutions into mutual holding companies and the issuance of securities by a resulting subsidiary financial institution or subsidiary holding company of a mutual holding company under the provisions of R.I.Gen. Laws Section 19-2-14.1. The actions and information required by this Regulation are hereby declared to be necessary and appropriate and in the public interest. Nothing contained in this Regulation shall limit the ability of the Director to consider other information in determining whether or not to approve an application of a mutual financial institution to reorganize into a mutual holding company or to issue securities associated therewith.