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This entry was published on 2014-09-22
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SECTION 260-B
Conversion of a savings bank into a savings and loan association
Banking (BNK) CHAPTER 2, ARTICLE 6
§ 260-b. Conversion of a savings bank into a savings and loan
association. 1. Any savings bank may convert itself into a savings and
loan association upon receiving the approval of the superintendent as
hereinafter provided. A meeting of the board of trustees shall be held
upon not less than thirty days' written notice to each trustee, either
served personally or mailed to him at his last known address and
containing a statement of the time, place and purpose of such meeting.
Proof by affidavit of due service of such notice shall be filed in the
office of the savings bank before or at the time of such meeting.

2. At such meeting the trustees may, by vote of not less than
two-thirds of all the members of such board of trustees, authorize the
conversion of such savings bank into a savings and loan association
subject to the approval of the superintendent as hereinafter provided. A
copy of the minutes of such meeting, verified by the presiding officer
and by the secretary of the meeting, shall be filed in the office of the
superintendent within thirty days after the date of such meeting
together with a copy of the affidavit of due service of the notice of
the meeting, a statement setting forth the reasons why the trustees
believe the conversion would be in the best interests of the savings
bank, its depositors and the public, and such other information as the
superintendent may require. If the superintendent determines that the
proposed conversion would be in the best interests of the savings bank,
its depositors and the public, he shall so advise the board of trustees
of the savings bank and deliver to them his written approval of the
proposed conversion.

3. Upon receiving the superintendent's written approval of the
proposed conversion, there shall be filed with the superintendent, the
organization certificate required by section three hundred seventy-five
of this chapter, executed by a majority of the directors, and proposed
by-laws as required by section three hundred seventy-six of this
chapter.

4. When the superintendent shall have approved the organization
certificate and the proposed by-laws and shall have issued the
authorization certificate, provided in article two of this chapter, the
savings bank shall cease to be a savings bank and shall thereupon be
converted into a savings and loan association, but such savings bank
shall be deemed to be continued for the purpose of prosecuting or
defending suits and of enabling it to wind up its affairs as a savings
bank and to dispose of and convey its property.

At the time when such conversion becomes effective all the property of
the savings bank shall immediately by act of law and without any
conveyance or transfer become the property of the savings and loan
association and the savings and loan association shall succeed to all
the offices, rights, obligations and relations of the savings bank.