81-14-109 - Conversion of stock savings bank to mutual savings bank.
§ 81-14-109. Conversion of stock savings bank to mutual savings bank.
Any stock savings bank organized and operating under the provisions of this chapter may, subject to the approval of the commissioner, convert to a mutual savings bank under the provisions of this section. The commissioner may promulgate rules and regulations governing the conversion of stock savings banks to mutual savings banks. Such rules and regulations shall include, but shall not be limited to requirements that:
(a) The conversion neither impair the capital of the converting savings bank nor adversely affect its operations;
(b) The conversion shall be fair and equitable to all stockholders of the converting savings bank;
(c) The public shall not be adversely affected by the conversion;
(d) Conversion of a savings bank shall be accomplished only pursuant to a plan approved by the commissioner. Such plan must have been approved by an affirmative vote of two-thirds (2/3) of the members of the board of directors of the converting savings bank, after a full and fair disclosure to the stockholders, and by an affirmative vote of a majority of the votes which stockholders of the savings bank are entitled to cast;
(e) The plan of conversion provides that:
(i) Deposit accounts will be issued in connection with the conversion to the stockholders of the converting savings bank;
(ii) A uniform date will be fixed for the determination of the stockholders to whom, and the amount to each stockholder of which, deposit accounts shall be made available;
(iii) Deposit accounts made available to stockholders will be based upon a fair and equitable formula approved by the commissioner and fully and fairly disclosed to the stockholders of the converting savings bank.
Sources: Laws, 1992, ch. 489, § 30; reenacted without change, Laws, 1997, ch. 364, § 30; reenacted without change, Laws, 2001, ch. 457, § 30, eff from and after July 1, 2001.