§ 9-603. Proposed plan of conversion

   A proposed plan of conversion to a capital stock association shall provide:

   (1) That each savings account holder will receive a withdrawable savings account in the converted association that is equal in amount to the withdrawable savings account in the mutual association;

   (2) That all savings accounts will remain insured;

   (3) That each savings account holder shall receive, without payment, nontransferable subscription rights to capital stock in the converted association;

   (4) The number of shares of stock that will be sold;

   (5) That subscription rights shall be on a basis pro rata to the member's interest in the mutual association, however, fractional shares need not be issued;

   (6) That the conversion to a capital stock association does not result in any reduction of the converting association's reserves and net worth;

   (7) An independent evaluation of the converting association's pro forma market value as converted to support the offering of stock to the converting association's members;

   (8) The business purposes to be accomplished by the conversion;

   (9) The manner in which capital stock in the converted association will be sold and distributed;

   (10) A statement that capital stock is not insured; and

   (11) That all earned surplus shall be distributed to members on a basis pro rata to the member's interest in the mutual association. However, prior to such a distribution, there shall be set aside sufficient earned surplus in order to insure satisfying the requirements of § 9-218, 9-220, 9-221 and 9-324 of this title.

HISTORY: CA § 6-217; 1980, ch. 856; 1986, ch. 282; 2010, ch. 72, § 5.