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6 Cards in this Set
- Front
- Back
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When did congress allow Mutual HCs?
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1987 - Association can issue stock for 49.9% ownership
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Who owns MHC?
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In all forms, members hold 100%
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What is mid-tier structure?
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Stock holding company owns 100% of association. MHC owns >50% of SHC, public owns 49.9% or less.
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WHat rights does mutual holding company have?
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Same as financial holding company?
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What is second step conversion?
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Convert MHC to SLHC and allow previous minority shareholders to purchase into new SLHC, reducing outside minority shareholders.
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What is advantage of mid-tier vs. single-tier?
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Mid-tier SHC can pay dividends only to minority shareholders if MHC waive dividends.
Single layer MHC, any dividends paid dilute minority shareholders. |
