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6.24 Treatment of Dividends by Certain Mutual Holding Companies

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6.24 Treatment of Dividends by Certain Mutual Holding Companies

 

 


6.24.    Treatment of Dividends by Certain Mutual Holding Companies.  This set of provisions grandfathers those mutual holding companies ("MHCs") that waived dividends prior to December 31, 2009, and does not require those waived dividends to be included in the exchange ratio in the event of a second stage conversion.  The provisions generally continue the OTS requirements on dividend waivers for those institutions covered by the grandfathering although it is unclear how they will be administered by the Fed going forward.  The provisions do not permit MHCs that had not waived dividends prior to December 1, 2009, to waive any dividends going forward. [§ 625]  

The provisions regarding mutual holding company dividends are effective 1 year after the enactment of the Act.