32-2-255. Conversion of capital stock to mutual association -- mandatory plan requirements. The following requirements are mandatory in any plan of conversion from the capital stock form to a mutual form of association:

(1) Each savings account holder must receive a withdrawable account of the same general class in the converted association equal in amount and time tenure to the holder's withdrawable account in the converting association. A payment may not be required from the account holder for this change of accounts.

(2) The conversion plan must specify how and in what amount the return of capital to each class of stockholder in the form of an exchange of stock for savings accounts will be effectuated.

(3) The plan must provide for the allocation of voting rights to the holders of savings accounts and the manner in which the rights may be exercised.

(4) The plan must make specific provision with respect to the surplus, reserves, undivided profits, and capital stock of the converted association, specifying types of accounts, amounts, priorities, any voting rights, and how the accounts will be disposed of or retained.

(5) The plan must contain other information and be in the form that is required by the department to enable it to make a determination of whether:

(a) the plan is fair and equitable;

(b) the interests of the applicant, members or stockholders, savings account holders, and the public are adequately protected; and

(c) the converting applicant has complied with the requirements of 32-2-251 through 32-2-257.

History: En. Sec. 39, Ch. 5, L. 1983; amd. Sec. 1037, Ch. 56, L. 2009.