CFR > Title 12 - Banks and Banking > CHAPTER V—OFFICE OF THRIFT SUPERVISION, DEPARTMENT OF THE TREASURY > PART 563b—CONVERSIONS FROM MUTUAL TO STOCK FORM > SUBPART A—Standard Conversions (§563b.100 to §563b.575) > 563b.470—Must I adjust liquidation sub-accounts?

563b.470—Must I adjust liquidation sub-accounts?

(a) (1) You must reduce the balance of an eligible account holder's or supplemental eligible account holder's sub-account if the deposit balance in the account holder's savings account at the close of business on any annual closing date, which for purposes of this section is your fiscal year end, after the relevant eligibility record dates is less than:
(i) The deposit balance in the account holder's savings account at the close of business on any other annual closing date after the relevant eligibility record date; or
(ii) The qualifying deposits in the account holder's savings account on the relevant eligibility record date.
(2) The reduction must be proportionate to the reduction in the deposit balance.
(b) If you reduce the balance of a liquidation sub-account, you may not subsequently increase it if the deposit balance increases.
(c) You are not required to adjust the liquidation account and sub-account balances at each annual closing date if you maintain sufficient records to make the computations if a liquidation subsequently occurs.
(d) You must maintain the liquidation sub-account for each account holder as long as the account holder maintains an account with the same social security number.
(e) If there is a complete liquidation, you must provide each account holder with a liquidation distribution in the amount of the sub-account balance.