Sec. 36a-138. Conversion of a capital stock institution into a mutual institution.
Sec. 36a-138. Conversion of a capital stock institution into a mutual institution. (a) With the approval of the commissioner, any capital stock bank may convert
into a mutual bank, in accordance with the provisions of this section and any regulations
that the commissioner may adopt hereunder, provided this section does not apply to the
conversion of a capital stock federal bank into a mutual federal bank.
(b) A conversion under this section involving a federal bank shall be authorized only
if permitted by federal law and is subject to all requirements prescribed by federal law.
(c) The commissioner shall approve a conversion under this section if the commissioner determines that: (1) The converting institution has complied with all applicable
provisions of law; (2) the proposed conversion will serve public necessity and convenience; (3) in the case of a conversion to a mutual savings bank or mutual savings
and loan association, the converting institution has equity capital at least equal to the
minimum equity capital required for the organization of a Connecticut bank; and (4) the
programs, policies and procedures of the converting institution relating to anti-money-laundering activity are adequate, and the converting institution has a record of compliance with anti-money-laundering laws and regulations. The converted institution shall
not commence business unless its insurable accounts and deposits are insured by the
Federal Deposit Insurance Corporation or its successor agency.
(P.A. 94-122, S. 66, 340; P.A. 98-260, S. 6; P.A. 03-259, S. 14.)
History: P.A. 94-122 effective January 1, 1995; P.A. 98-260 amended Subsec. (c) by deleting requirement re approvals
needed for deposit insurance from Subdiv. (1) and adding requirement for FDIC insurance prior to commencing business;
P.A. 03-259 added Subsec. (c)(4) re anti-money-laundering activity and compliance.