---
kind: "section"
citation: "12 C.F.R. § 192.625"
title: "12"
number: "192.625"
heading: "Eligibility for a voluntary supervisory conversion."
url: "https://uscodex.org/cfr/12/192.625"
---

# §192.625. Eligibility for a voluntary supervisory conversion.

- (a) **Eligibility.** An insured savings association may be eligible to convert under this subpart B if:
  - (1) The savings association is significantly undercapitalized (or undercapitalized and a standard conversion that would make the savings association adequately capitalized is not feasible) and the savings association will be a viable entity following the conversion;
  - (2) Severe financial conditions threaten the savings association's stability and a conversion is likely to improve its financial condition;
  - (3) The FDIC will assist the savings association under section 13 of the Federal Deposit Insurance Act, [12 U.S.C. 1823](/usc/12/1823.md); or
  - (4) The savings association is in receivership and a conversion will assist the savings association.
- (b) **Requirements for viability after conversion.** The savings association will be a viable entity following the conversion if it satisfies all of the following:
  - (1) The savings association will be adequately capitalized as a result of the conversion;
  - (2) The savings association, its proposed conversion, and its acquiror(s) comply with applicable supervisory policies;
  - (3) The transaction is in the savings association's best interest, and the best interest of the Deposit Insurance Fund and the public; and
  - (4) The transaction will not injure or be detrimental to the savings association, the Deposit Insurance Fund, or the public interest.

## Notes

### Authority

Authority: 12 U.S.C. 1462a, 1463, 1464, 1467a, 2901 et seq., 5412(b)(2)(B); 15 U.S.C. 78c, 78 l , 78m, 78n, 78w.

### Source

Source: 85 FR 42643, July 14, 2020, unless otherwise noted.