§ 28-6.1-15-5 — Terms and conditions of conversions; rights of depositors

Indiana § 28-6.1-15-5

• Jurisdiction: Indiana
• Art. 6.1: SAVINGS BANKS
• Ch. 15: Conversion of a Savings Bank to a Bank or Trust

Text

The terms and conditions of conversion and
the rights of the depositors under the conversion are as follows:
(1) A depositor may subscribe to the capital stock of the bank or
trust company:
(A) in an amount equal to part or all of the depositor's pro rata
interest in the surplus of the savings bank;
(B) in an additional amount equal to part or all of the
depositor's savings deposits in the savings bank; and
(C) in other additional amounts desired by the depositor.
(2) If the aggregate subscriptions received from depositors under
subdivision (1) exceed the proposed capital of the bank or trust
company:
(A) the proposed capital may be increased to the extent
required to eliminate the oversubscription by amending the
resolution of conversion and the proposed articles of
incorporation of the bank or trust company; or
(B) the subscriptions of the depositors may be ratably reduced
to the extent required to eliminate the oversubscription.
(3) If the aggregate subscriptions do not amount to a full
subscription to the capital stock of the bank or trust company, the
trustees may open the subscription list to the general public in
order to eliminate the undersubscription.
(4) Upon conversion, all savings deposits in the savings bank,
except those allocated to subscriptions by depositors under
subdivision (1)(C):
(A) become savings deposits in the bank or trust company; and
(B) are subject to the withdrawal restrictions applicable to
savings deposits in banks or trust companies organized under
IC 28-1.
(5) The rights of depositors with respect to their pro rata interests
in the surplus of the savings bank are as follows:
(A) Upon conversion, the amount of the depositors' pro rata
interests in the surplus of the savings bank that have not been
allocated to subscriptions by the depositors under subdivision
(1)(A) shall, at the election of those depositors, be paid to the
depositors in cash or credited to their savings deposits in the
bank or trust company. The pro rata interests of depositors who
fail to make an election with respect to the distribution of the
interests before the effective date of conversion shall be
credited to the savings deposits of the depositors in the bank or
trust company.
(B) The value of each depositor's pro rata interest in the surplus
of the savings bank shall be computed by multiplying the
amount in the surplus, as of the date of the resolution of
conversion, by a percentage determined by dividing the total
amount of savings deposits on the date of the resolution of
conversion into the amount of each depositor's savings deposits
on that date. Each interest shall be increased or decreased by
applying the same percentage multiple to the amount of any
increase or decrease in the surplus occurring within the period
of time between the date of the resolution of conversion and the
effective date of conversion. For purposes of this section, each
depositor of the savings bank shall be considered a depositor as
of the date of the resolution of conversion. Depositors of the
savings bank who withdrew all of their deposits before the date
of the resolution of conversion have no right or claim to any of
the savings bank's surplus.
(C) Subscriptions, payments in cash, or savings deposit credits
made under this section constitute satisfaction in full of each
depositor's pro rata interest in the surplus of the savings bank.

Legislative History

As added by P.L.42-1993, SEC.72.