69U-105.707. Termination of Nonconformance

(1) If, as a result of a merger, consolidation, conversion, or acquisition (hereinafter transaction) pursuant to Chapter 655, F.S., the resulting state financial entity violates any lending, investment, or other limitations imposed by law or rule or engages in any unauthorized activity, it shall immediately refrain from beginning any new acts which are unauthorized and prior acts shall be brought into conformance with all applicable laws, rules, or other limitations within the specific time stated in this rule; when no time is specified, then such conformance shall be achieved within the time OFR deems prudent and reasonable under the circumstances.

(2) Assets which do not conform to the type permitted for the resulting state financial entity by law or rule shall be brought into conformance or divested within 5 years after the effective date of the transaction. Upon request and with a showing of good cause by the resulting state financial entity, OFR shall extend the time for conformance or divestiture of nonconforming assets to a period of time that OFR deems prudent and reasonable under the circumstances.

(3) Where OFR determines that a nonconforming activity, asset, or liability will have an adverse impact upon the safety and soundness of the resulting financial entity, OFR shall require that such nonconforming activity, asset, or liability be corrected prior to the conversion, merger or consolidation, or acquisition of assets.

Specific Authority 655.012(3) FS. Law Implemented 655.414(1)(b), 655.418(3), (4) FS. History–New 11-23-83, Formerly 3C-18.07, 3C-18.007, Amended 8-14-94, 4-15-98, Formerly 3C-105.707.