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Can you summarize 10 VAAC Agency 5, Chapter 20?
State Corporation Commission > Banking and Savings Institutions
Short Summary
This legal document governs the conversion of a state mutual savings and loan association to a stock association. It is authorized by 6.2-1139 of the Code of Virginia and requires compliance with the Virginia Non-Stock Corporation Act and regulations from the federal Office of Thrift Supervision (OTS) regarding mutual-to-stock conversions. The document outlines the process for conversion, including the application for conversion, which requires a filing fee and specific accompanying documents. A plan of conversion must also be filed, which includes a statement of the business purposes, the removal of the word ‘mutual’ from the association’s name, and the assurance that no reduction in reserves or net worth will result from the conversion. The Commissioner of Financial Institutions reviews the application and issues preliminary approval if all requirements are met. A special meeting of association members is then called to consider and vote on the conversion. Upon receiving evidence of member approval, continued FDIC insurance, and the approved amended articles of incorporation, the commissioner issues formal approval, and the conversion becomes effective upon the issuance of a certificate of amendment by the Clerk of the State Corporation Commission. The actions performed by the commissioner under this document are subject to review according to the State Corporation Commission Rules of Practice and Procedure.
Whom does it apply to?
State mutual savings and loan associations
What does it govern?
Conversion of a state mutual savings and loan association to a stock association
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Virginia