{"data":{"id":"us-md/md.-code-financial-institutions-9-603","jurisdiction":"us-md","citation":"Md. Code, Financial Institutions § 9–603","heading":"","body":"A proposed plan of conversion to a capital stock association shall provide:\n(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;\n(2) That all savings accounts will remain insured;\n(3) That each savings account holder shall receive, without payment, nontransferable subscription rights to capital stock in the converted association;\n(4) The number of shares of stock that will be sold;\n(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;\n(6) That the conversion to a capital stock association does not result in any reduction of the converting association’s reserves and net worth;\n(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;\n(8) The business purposes to be accomplished by the conversion;\n(9) The manner in which capital stock in the converted association will be sold and distributed;\n(10) A statement that capital stock is not insured; and\n(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.","path":["Article - Financial Institutions"],"source_url":"https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gfi\u0026section=9-603","current_through":"2026-01-01","vintage":"","retrieved_at":"2026-09-14T19:58:27Z","sha256":"ca3db5bc7ba6d6beb95485c9dd9490b00df11a2ead22b8526e4563c183996273","source_id":"us-md","stale":false,"prev":"us-md/md.-code-financial-institutions-9-602","next":"us-md/md.-code-financial-institutions-9-604"},"notice":"GroundRules: Original legal text. Not legal advice."}