§ 9-603
246 words·~1 min read·
/md/financial-institutions/9-603A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§9–603.
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.