N.Y. Comp. Codes R. & Regs. Tit. 3 § 86.12 - Supervisory stock conversions

Notwithstanding any other provision of this Part, where the superintendent has determined that grounds exist for him to take possession of the business and property of a mutual thrift institution, in that such institution:

(a) is or will in the immediate future be unable to meet its obligations;

(b) is or otherwise would be in an unsafe and unsound condition;

(c) cannot with safety and expediency continue business;

he may authorize the institution to convert to stock-form and to effect a sale or other transfer of its capital stock to a third party or parties in a transaction in which the converting institution's depositors or shareholders have no right of approval or right to subscribe for shares to be issued by the converting institution. In determining whether to authorize such a transaction, the superintendent shall take into consideration the declarations of policy contained in section 10 of the Banking Law and section 1 of chapter 1 of the Laws of 1984. Upon approval of such a transaction, the superintendent shall file the converted institution's amended organization certificate with the same force and effect as provided in section 86.4(c) of this Part.

Notes

N.Y. Comp. Codes R. & Regs. Tit. 3 § 86.12