Wis. Admin. Code Department of Financial Institutions DFI-SB 22.12 - Conversion or liquidation of mutual holding companies

(1) CONVERSION. A mutual holding company may convert from mutual to stock form in accordance with a plan of conversion approved by the division under procedures the same as for the organizational conversion of a mutual savings bank under s. 214.685, Stats.

(2) INVOLUNTARY LIQUIDATION.

(a) The division may file a petition with the federal bankruptcy court requesting the liquidation of a mutual holding company pursuant to 12 USC 1467(a) (o) (9) and title 11, United States Code, upon:

1. The default of the resulting savings bank, any acquiree savings bank, or any subsidiary savings bank of the mutual holding company;

2. The default of the mutual holding company; or

3. Foreclosure on any pledge by the mutual holding company of subsidiary savings bank stock under s. DFI-SB 22.10(3).

(b) Except as provided by par. (c), the net proceeds of any liquidation of mutual holding company shall be transferred to the members of the mutual holding company under the articles of incorporation of the mutual holding company.

(c) If the FDIC incurs a loss from a default of any savings bank subsidiary of a mutual holding company and that mutual holding company is liquidated under par. (a), the FDIC shall succeed to the membership interests of the depositors of the savings bank, to the extent of the FDIC's loss.

(3) VOLUNTARY LIQUIDATION. Sections 214.82 to 214.855, Stats., shall apply to a mutual holding company in the same manner as they apply to a savings bank.

Notes

Wis. Admin. Code Department of Financial Institutions DFI-SB 22.12

CR Register, February, 1994, No. 458, eff. 3-1-94.