Sec. 9. (a) Subject to the prior written approval of the department, a savings bank may purchase, hold, and convey real property that is:
(1) improved or to be improved by a single, freestanding building; and
(2) to be used, in part, as a branch of the savings bank and, in part, as rental property for one (1) lessee.
(b) If real estate described in subsection (a) is held by a savings bank for at least one (1) year without being used as described in subsection (a), the board of directors of the savings bank shall state, by resolution, definite plans for the use of the real estate. A resolution adopted under this subsection shall be made available for inspection by the department.
(c) Unless a written extension of time is given by the department under this subsection, the savings bank shall open the branch not later than three (3) years after the acquisition date of the real estate. The department may grant an extension of time for the savings bank to open the branch if:
(1) the board of directors of the savings bank, by resolution:
(A) reaffirms annually that the savings bank expects to use the real estate as described in subsection (a) in the future; and
(B) explains the reason why the real estate has not yet been used as described in subsection (a); and
(2) the director determines that:
(A) the continued holding of the real estate by the savings bank does not endanger the safety and soundness of the savings bank; and
(B) the savings bank is holding the real estate to use the real estate in the future for one (1) of the purposes set forth in subsection (a).
(d) If the savings bank:
(1) does not open a branch on the real estate within the period specified in subsection (c); or
(2) removes its branch from the real estate;
the savings bank shall divest itself of all interest in the real estate not more than ten (10) years after the acquisition date of the real estate, if a branch was not opened, or ten (10) years after the removal date of the branch office.
(e) Except with the written approval of the department, the sum invested in real property and buildings used for the convenient transaction of the savings bank's business as provided in this section may not exceed fifty percent (50%) of the surplus and retained earnings of the savings bank.
As added by P.L.42-1993, SEC.72. Amended by P.L.213-2007, SEC.63; P.L.217-2007, SEC.61.
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