6.2-1139 - (Effective October 1, 2010) Conversion from mutual savings institution to stock institution.
§ 6.2-1139. (Effective October 1, 2010) Conversion from mutual savingsinstitution to stock institution.
A. With the approval of the Commission, and in accordance with provisions ofthis section and regulations adopted hereunder, a state mutual savingsinstitution may convert to a stock institution. The conversion shall beconducted in a manner equitable to all parties thereto as follows:
1. The board of directors of the mutual savings institution shall first adoptby two-thirds vote a conversion plan. The provisions of the plan shall complywith regulations adopted by the Commission;
2. The plan shall provide that holders of savings accounts in the mutualsavings institution will be afforded the opportunity to preserve theirinterest in the institution's net worth by subscribing to stock; and
3. The Commission shall approve any such plan of conversion if the Commissionascertains that such conversion will not have an adverse effect on thestability of the institution and that all other regulations of the Commissionrelating to the conversion of a mutual savings institution to a stockinstitution have been complied with.
B. The Commission shall adopt regulations governing the procedures to befollowed in completing the conversion after a satisfactory plan has beenadopted. The regulations shall ensure that any institution in convertingshall continue to have its accounts insured by the Federal Deposit InsuranceCorporation or other federal insurance agency.
(1972, c. 796, § 6.1-195.57; 1975, c. 130; 1978, c. 683; 1985, c. 425, §6.1-194.32; 1990, c. 3; 1994, c. 331, § 6.1-194.123:1; 2010, c. 794.)