Section 491.807 - Conversion of stock association into bank. - Michigan Statutes

SAVINGS AND LOAN ACT OF 1980 (EXCERPT)
Act 307 of 1980

491.807 Conversion of stock association into bank.

Sec. 807.

(1) A stock association may convert itself into a bank. All conversions under this section shall be subject to approval by the members of the association and by the supervisor, and by all federal supervisory authorities having jurisdiction over the resulting bank. An association seeking approval of the supervisor shall file copies of all documents that evidence preliminary approval of the conversion by federal supervisory authorities having jurisdiction over the conversion, and a verified copy of the minutes of the meeting of the board of the association called for the purpose of acting upon the proposed conversion. The converting association shall also file with the supervisor a copy of the charter issued to the resulting national bank, and certified by the comptroller of the currency, if applicable.

(2) The plan of conversion shall be submitted for consideration by the members of the association at a meeting called for that purpose. The notice given to members of a meeting at which a conversion is to be considered shall state the purposes of the meeting, shall include a full and accurate description of the plan of conversion and all other matters to be brought before the meeting; shall state that any proxy for the meeting solicited by or given to the association's designees is revocable by the member; and shall state the time, date, and place of the meeting. A notice of a meeting of the members to consider and act upon a proposed conversion shall be given as required in this act not less than 20 days before the date of the meeting to each voting member of the converting association and to the supervisor and any federal supervisory authority having jurisdiction over the existing or proposed association or bank. Approval by the members of a stock association shall require the affirmative vote of members holding more than 50% of the issued and outstanding voting stock of the stock association.

(3) Upon approval of the conversion by the supervisor following the granting of a charter for a resulting bank by the appropriate regulatory agency, the converting association shall cease to be subject to this act and to the authority of the supervisor under this act. After approval by the supervisor of the conversion, the resulting bank shall have a certificate attesting to the fact of conversion and its organization recorded in the office of the register of deeds for the county in which the bank's principal office is located.

History: Add. 1987, Act 106, Imd. Eff. July 7, 1987