The commissioner may designate a purchase of additional offices and/or assets by an association from another association to be a supervisory purchase when:

1. (1) the commissioner has placed the selling association under voluntary supervisory control or under conservatorship pursuant to Chapter 66 of the Finance Code;
2. (2) the commissioner has determined that the selling association is in an unsafe condition; or
3. (3) the primary federal regulator of the institution has determined, and notified the commissioner, that one or more of the grounds specified in the Home Owner's Loan Act of 1933, for appointment of a conservator or receiver, exist with respect to the selling association, or the proposed transaction is necessary to prevent the failure or possible failure of the selling association. For purposes of this section, the term "unsafe condition" shall mean that the selling association is insolvent; is in imminent danger of insolvency; that the association has experienced a substantial dissipation of its assets or earnings due to any violation or violations of applicable law, rules, or regulations, or due to any unsafe or unsound condition to transact business in that there has been a substantial reduction of its net worth; that the association and its directors and officers have violated any material condition of its charter or bylaws, the terms of any order issued by the commissioner or any agreement between the association and the commissioner; that the association, its directors, or officers have concealed or refused to permit examination of the books, papers, accounts, records, and affairs of the association by the commissioner or other duly authorized personnel of the Department of Savings and Mortgage Lending; or that the association is affected by any other conditions which the commissioner and the board of directors of the association agree place the association in an unsafe condition.

Source Note:The provisions of this §53.10 adopted to be effective September 12, 1979, 4 TexReg 3106; amended to be effective November 25, 1986, 11 TexReg 4622; amended to be effective January 18, 1989, 14 TexReg 52; amended to be effective March 8, 2012, 37 TexReg 1500; amended to be effective May 5, 2016, 41 TexReg 3102.