6.1-194.32 - (Repealed effective October 1, 2010) Conversion from mutual to stock association. - Virginia Statutes

§ 6.1-194.32. (Repealed effective October 1, 2010) Conversion from mutual tostock association.

With the approval of the Commissioner, and in accordance with provisions ofthis section and regulations promulgated hereunder, a state association whichis a mutual association may convert to a stock association. Such conversionshall be conducted in a manner equitable to all parties thereto in thefollowing manner: the board of directors of such mutual association shallfirst adopt by two-thirds vote a conversion plan the provisions of whichshall comply with requirements set forth in regulations promulgated by theCommission. Such plan shall provide that holders of savings accounts in themutual association will be afforded the opportunity to preserve theirinterest in the association's net worth by subscribing to stock. TheCommissioner shall approve any such plan of conversion if the Commissionerascertains that such conversion will not have an adverse effect on thestability of the association and that all other rules and regulations of theCommission relating to the conversion of a mutual association to a stockassociation 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 anyassociation in so converting shall continue to have its accounts insured bythe 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.)