Sec. 712.
(1) With the approval of the commissioner, and upon the affirmative vote of 2/3 of the votes cast, a mutual state savings and loan association or other member-owned state chartered financial institution may be converted into a mutual savings bank. In such case, the articles of incorporation may be executed by a majority of the directors of the savings and loan association, or other member-owned state chartered financial institution. A majority of the directors, after executing the articles of incorporation, may execute all other papers and do whatever may be required to complete its organization as a savings bank.
(2) The shares or membership interests of the savings bank may continue to be for the same amount each as they were before the conversion, and the directors may continue to be directors of the savings bank until others have been elected or appointed under the laws of this state.
(3) The approval of the commissioner shall be based on an examination of the savings and loan association, or other member-owned state chartered financial institution and of the proceedings had by its directors and members with respect to the conversion.
(4) A conversion shall not be made to defeat or defraud any of the creditors of the savings and loan association or other member-owned state chartered financial institution.
(5) Subject to conditions as he or she may prescribe, the commissioner may permit the converted savings bank to retain and carry, at a value determined by the commissioner, assets of the converting savings and loan association or other member-owned state chartered financial institution which do not conform to the legal requirements relative to assets acquired and held by savings banks.
History: 1996, Act 354, Imd. Eff. July 1, 1996 ;-- Am. 2000, Act 482, Imd. Eff. Jan. 11, 2001
Structure Michigan Compiled Laws
Chapter 487 - Financial Institutions
Act 354 of 1996 - Savings Bank Act (487.3101 - 487.3804)
354-1996-7 - Chapter 7 Consolidations, Mergers, and Conversions (487.3701...487.3715)
Section 487.3701 - Consolidated Savings Bank.
Section 487.3702 - Consolidated Organization.
Section 487.3704 - Consolidated Organization; Service of Process; Prosecution.
Section 487.3705 - Operation of Branches of Consolidated or Acquired Savings Bank.
Section 487.3706 - Definitions; Consolidation.
Section 487.3707 - Definitions; Terms and Conditions of Conversion or Exchange.
Section 487.3713 - Rights, Obligations, and Relations of Converted and Converting Organization.
Section 487.3714 - Liability Not Impaired by Sale of Assets, Consolidation, or Conversion.
Section 487.3715 - Conversion of Mutual Savings Bank to Stock Savings Bank.