6-1107

6-1107. Denial of application; grounds

A. The superintendent may deny an application if the superintendent finds any of
the following:

1. The financial condition of the financial institution holding company that would
acquire control will jeopardize the financial stability of the financial institution or
controlling person or prejudice the interests of the depositors, beneficiaries, creditors
and shareholders of the financial institution or controlling person.

2. A plan or proposal to liquidate or consolidate the financial institution or
controlling person or to make any other major change in the business, corporate structure
or management of the financial institution or controlling person is not fair and
reasonable to the depositors, beneficiaries, creditors and shareholders of the financial
institution or controlling person.

3. The overall moral character or integrity of any person who would acquire control
indicates that it would not be in the interest of the depositors, beneficiaries,
creditors and shareholders of the financial institution or controlling person, and in the
interest of the public, to permit the person to control the financial institution or
controlling person.

4. The applicant has neglected, failed or refused to furnish to the superintendent
any required information.

5. It is contrary to law.

6. The acquisition would result in a monopoly or would be in furtherance of any
combination or any conspiracy to monopolize or to attempt to monopolize the business of
financial institutions and financial institution holding companies.

7. The effect of the proposed acquisition will be to substantially lessen
competition, tend to create a monopoly or in any other manner be a restraint of trade,
unless the superintendent finds that the effects of the proposed acquisition are clearly
outweighed by its probable effect in meeting the convenience and needs of the community
to be served and by the public interest.

8. The applicant has made a material false statement on the application.

B. The superintendent shall give the applicant written notification of the granting
or denial of an application together with a statement in support of the decision. If the
superintendent, based on the information available at the time, plans to deny the
application and no hearing has been held in accordance with title 41, chapter 6, article
10, the superintendent shall send the applicant a written statement which shall specify
the reasons for such tentative denial. The applicant shall have fifteen days following
the date of this statement within which to file a written request to amend its
application. Upon the filing of such request the applicant shall be given thirty days in
which to amend its application.

C. The superintendent may approve an application subject to conditions he considers
necessary and appropriate to protect the public interest and carry out the purposes of
this title. The superintendent shall give the applicant written notification of the
approval of an application which is subject to conditions together with a statement in
support of the decision.