§ 6.1-194.32. Conversion from mutual to stock association
With the approval of the Commissioner, and in accordance with provisions of this section and regulations promulgated hereunder, a state association which is a mutual association may convert to a stock association. Such conversion shall be conducted in a manner equitable to all parties thereto in the following manner: the board of directors of such mutual association shall first adopt by two-thirds vote a conversion plan the provisions of which shall comply with requirements set forth in regulations promulgated by the Commission. Such plan shall provide that holders of savings accounts in the mutual association will be afforded the opportunity to preserve their interest in the association's net worth by subscribing to stock. The Commissioner shall approve any such plan of conversion if the Commissioner ascertains that such conversion will not have an adverse effect on the stability of the association and that all other rules and regulations of the Commission relating to the conversion of a mutual association to a stock association have been complied with. The Commission shall adopt regulations governing the procedures to be followed in completing the conversion once a satisfactory plan has been adopted. Such regulations shall ensure that any association in so converting shall continue to have its accounts insured by the Federal Deposit Insurance Corporation or other federal insurance agency.
(Code 1950, § 6.1-195.57; 1972, c. 796; 1975, c. 130; 1978, c. 683; 1985, c. 425; 1990, c. 3.)
Sections: Previous 6.1-194.25 6.1-194.26 6.1-194.27 6.1-194.28 6.1-194.29 6.1-194.30 6.1-194.31 6.1-194.32 6.1-194.32:1 6.1-194.33 6.1-194.34 6.1-194.35 6.1-194.36 6.1-194.37 6.1-194.38 NextLast modified: April 2, 2009