6.1-194.123:1 - (Repealed effective October 1, 2010) Conversion from mutual savings institution to stock state savi... - Virginia Statutes

§ 6.1-194.123:1. (Repealed effective October 1, 2010) Conversion from mutualsavings institution to stock state savings bank.

With the approval of the Commissioner, and in accordance with provisions ofthis section and regulations promulgated hereunder, a state savings bankwhich is a mutual savings institution may convert to a stock institution.Such conversion shall be conducted in a manner equitable to all partiesthereto in the following manner: the board of directors of such savings bankshall first adopt by two-thirds vote a conversion plan the provisions ofwhich shall comply with requirements set forth in regulations promulgated bythe Commission. Such plan shall provide that holders of savings accounts inthe savings bank will be afforded the opportunity to preserve their interestin the savings bank's net worth by subscribing to stock. The Commissionershall approve any such plan of conversion if the Commissioner ascertains thatsuch conversion will not have an adverse effect on the stability of thesavings bank and that all other rules and regulations of the Commissionrelating to the conversion of a mutual savings institution to a stockinstitution have been complied with. The Commission shall adopt regulationsgoverning the procedures to be followed in completing the conversion once asatisfactory plan has been adopted. Such regulations shall ensure that anysavings bank in so converting shall continue to have its accounts insured bythe Federal Deposit Insurance Corporation or other federal insurance agency.

(1994, c. 331.)