The State UNA will be able to own property in the name of the State UNA. However, to carry out a significant portion of the plans devised by the State UNA, SCFndn and the State UNA may need to form a separate legal entity, owned by the State UNA, that would function as a “holding company”, i.e., an entity whose primary business is holding a controlling interest in various properties, including other companies. This state holding company (SHC) would be owned by the State UNA or optionally may be co-owned by the State UNA and SCFndn  and managed on a day to day basis by the State UNA.

A standard holding company can own any type of subsidiary except for a bank. A corporate entity that owns a bank is usually defined as a “bank holding company” (BHC) and has special rules that govern it (primarily under the Federal Reserve – “FED”). Bank holding companies may only own banks.

There is a special category of bank holding companies called (“financial holding company” (FHC) that may own banks and other types of financial institutions (insurance, securities, investment advisory services, etc.), but no other kind of company. Thus, the inclusion of a BHC, if required by the FED to separate banks owned by this state ecosystem from the other types of organizations. 

A standard holding company can own a bank holding company that owns one or more banks, but not a bank directly. 

Thus, if formed, the assets of the State Holding Company will be in two categories – a BHC for one or more banks in one category and all other assets in a second category.