N.Y. Comp. Codes R. & Regs. tit. 3 § 111.1

Current through Register Vol. 46, No. 53, December 31, 2024

Section 111.1 - General information

(a) A savings and loan association which seeks to convert itself into a savings bank pursuant to Banking Law, section 411 shall comply with the instructions set forth in this Supervisory Procedure SL 111.

(b) Six copies of a letter of application and each document referred to in section 111.2, including two executed copies of the documents referred to in subdivisions (a), (b), (c) and (f) of section 111.2, shall be filed with the superintendent, at the address set forth in section 1.1 of Supervisory Policy G 1 of this Title, and shall be accompanied by payment of the fees specified in section 1.2 of Supervisory Policy G 1 of this Title; provided, however, that the organization certificate required by subdivision (b) of section 111.2 shall be filed only after receipt of the superintendent's written approval of the proposed conversion. Inquiries concerning the preparation thereof should be addressed to the superintendent. The letter of application shall set forth the name and address of the officer to whom all communications from the Banking Department should be addressed and the date or proposed date of filing of any required applications or other documents with the Federal Deposit Insurance Corporation.

(c) Before an application for conversion is submitted, the plan of conversion shall be approved by the vote, in person or by proxy, of the holders of at least 662/3 percent in amount of book value of all outstanding shares of the association represented at a meeting held upon not less than 20 days' written notice to each shareholder. Notice of the shareholders' meeting, together with any proxy material, shall be served personally upon or mailed to each shareholder at his last known address and shall contain a statement of the time and place of the meeting, a full and clear statement of the purpose thereof and the effect of the proposed conversion upon the shareholder's right to vote on matters affecting the management of the resulting savings bank.

(d) Approval by the superintendent will be conditioned in all cases upon the insurance by the Federal Deposit Insurance Corporation of deposit accounts of the resulting bank to the extent permitted by Federal law.

(e) After the conversion, the powers of the resulting savings bank, including its powers to receive new deposits, make new loans and undertake new borrowings will be subject to the laws governing savings banks, except to the extent it has as a result of the conversion succeeded to certain deposits, loans and borrowings which are legal for an association but not legal for a savings bank. While the resulting bank will ordinarily be required to dispose of such deposits, loans and borrowings within two years after the date of the conversion, it may discharge any legal obligations which it had previously undertaken, as an association, in connection with such nonconforming deposits, loans and borrowings. The plan of conversion must specifically describe, by type and amount, such nonconforming deposits, loans and borrowings, and indicate the manner in which they are to be disposed of by the resulting savings bank.

(f) The superintendent reserves the right to require additional information in connection with the application. The applicant may, of course, submit any information in addition to that required by this procedure which it deems pertinent to the application.

N.Y. Comp. Codes R. & Regs. Tit. 3 § 111.1