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#121779 - 10/10/03 01:56 PM Purchasing branches - OTS regulations

I can't figure out which section of the OTS Applications Handbook would apply (230 or 240) when a sav institution wants to buy all 3 branches of another sav institution. Can someone help me?

If both institutions meet expedited processing requirements, would expedited processing apply in this case or does branch purchases between 2 sav institutions have to be done under standard treatment? Someone please help me. This is not my area, but I've been required to find out!

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#121780 - 10/10/03 06:17 PM Re: Purchasing branches - OTS regulations
Michelle D Offline
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Michelle D
Joined: Oct 2001
Posts: 313
Terminator Country
The difference between 230 and 240 is not the expedited processing, but rather the actual transaction.

If you are buying the entire institution (there will not be a surviving regulated entity) then you apply under the requirements of 230.

If you are just buy 3 branches and the entity will still survive (regardless of whether they have any branches left or not), you would apply under 240.

If both insitutions qualify for expedited processing, that would apply under both 230 and 240.

Hope this helps.
The opinions are mine and do not necessarily reflect those of my employer.

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#121781 - 10/10/03 06:21 PM Re: Purchasing branches - OTS regulations
SJB Offline
Diamond Poster
Joined: Jun 2002
Posts: 1,210
Ditto what Michelle said.
My opinions are not legal advice and are worth what you paid for them.

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