                                 CODE OF VIRGINIA

CONVERSION FROM MUTUAL SAVINGS INSTITUTION TO STOCK INSTITUTION (§ 6.2-1139)

A. With the approval of the Commission, and in accordance with provisions of
this section and regulations adopted hereunder, a state mutual savings
institution may convert to a stock institution. The conversion shall be
conducted in a manner equitable to all parties thereto as follows:

   1. The board of directors of the mutual savings institution shall first adopt
   by two-thirds vote a conversion plan. The provisions of the plan shall comply
   with regulations adopted by the Commission;

   2. The plan shall provide that holders of savings accounts in the mutual
   savings institution will be afforded the opportunity to preserve their
   interest in the institution&#8217;s net worth by subscribing to stock; and

   3. The Commission shall approve any such plan of conversion if the Commission
   ascertains that such conversion will not have an adverse effect on the
   stability of the institution and that all other regulations of the Commission
   relating to the conversion of a mutual savings institution to a stock
   institution have been complied with.

B. The Commission shall adopt regulations governing the procedures to be
followed in completing the conversion after a satisfactory plan has been
adopted. The regulations shall ensure that any institution in converting shall
continue to have its accounts insured by the Federal Deposit Insurance
Corporation or other federal insurance agency.

HISTORY: 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.