Specifically, any declaration of future cash dividends will depend upon a number of factors, including the Bank's future earnings, financial condition, cash needs, general business conditions and dividend limitations
imposed by law.
Customary covenants apply to the term loan, including maximum total leverage, interest coverage, capital expenditure limits, stock repurchase and dividend limitations
and standard restrictions on investments and mergers and acquisitions.
Somewhat constraining the parent company's financial flexibility are operating company dividend limitations
in Wisconsin, which are more restrictive than in other states.
Fitch believes that maintaining assets at the holding company is prudent given the restrictive dividend limitations
for insurance companies.
With respect to such dividend limitations
, the capital plan contemplates payment of cash dividends on the new preferred stock that would be issued in the proposed recapitalization.
Fitch believes that maintaining assets at the holding company is prudent given the more restrictive dividend limitations
for New York-domiciled companies.
OTS said that Hutcherson and Lang acquired ownership in Mississippi Savings in 1985, subject to net worth maintenance conditions and dividend limitations
imposed by the Federal Home Loan Bank Board, the predecessor regulator to OTS.
Accordingly, the group has agreed to adhere to certain additional reporting requirements and to dividend limitations
and has filed a plan with the Texas Department of Insurance.
The amendment liberalized restrictive covenants relating to cash flow coverages and dividend limitations