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Md. Code Ann., Fin. Inst. § 9-603

A proposed plan of conversion to a capital stock association shall provide:

(1) That each savings account holder will receive a withdrawable savings account in the converted association that is equal in amount to the withdrawable savings account in the mutual association;

(2) That all savings accounts will remain insured;

(3) That each savings account holder shall receive, without payment, nontransferable subscription rights to capital stock in the converted association;

(4) The number of shares of stock that will be sold;

(5) That subscription rights shall be on a basis pro rata to the member’s interest in the mutual association, however, fractional shares need not be issued;

(6) That the conversion to a capital stock association does not result in any reduction of the converting association’s reserves and net worth;

(7) An independent evaluation of the converting association’s pro forma market value as converted to support the offering of stock to the converting association’s members;

(8) The business purposes to be accomplished by the conversion;

(9) The manner in which capital stock in the converted association will be sold and distributed;

(10) A statement that capital stock is not insured; and

(11) That all earned surplus shall be distributed to members on a basis pro rata to the member’s interest in the mutual association. However, prior to such a distribution, there shall be set aside sufficient earned surplus in order to insure satisfying the requirements of §§ 9–218, 9–220, 9–221 and 9–324 of this title.

Official source: Maryland General Assembly. Reproduced from public-domain Maryland statutes; confirm against the official source for the current text. Not legal advice.