496

LAWS OF MARYLAND

Ch. 33

WILL BE GIVEN TO MEMBERS;

(6)   THE PROPOSED PROXY STATEMENT; AND

(7)   THE PROPOSED PLAN OF CONVERSION.

REVISOR'S NOTE: This section presently appears as CA §
6-217(b).

In item (3) of this section, "resolution" is
substituted for "minutes" in light of general
practice.

The only other changes are in style.

"Division Director", "guaranty stock association"
and "mutual association" are defined in § 9—101
of this title.

As to "member", see § 9-301 of this title.

9-603. PROPOSED PLAN OF CONVERSION.

A PROPOSED PLAN OF CONVERSION TO A GUARANTY STOCK
ASSOCIATION SHALL PROVIDE:

(1)       THAT EACH SAVINGS ACCOUNT HOLDER WILL
RECEIVE A WITHDRAWABLE ACCOUNT IN THE CONVERTED ASSOCIATION
THAT IS EQUAL IN AMOUNT TO THE WITHDRAWABLE ACCOUNT IN THE
MUTUAL ASSOCIATION;

(2)       THAT THE SAVINGS ACCOUNTS WILL REMAIN
INSURED;

(3)       THAT:

(I) EACH SAVINGS ACCOUNT HOLDER SHALL
RECEIVE, WITHOUT PAYMENT, NONTRANSFERABLE SUBSCRIPTION

RIGHTS TO GUARANTY STOCK IN THE CONVERTED ASSOCIATION; AND

(II) 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;

(4)       THAT THE CONVERSION TO A GUARANTY STOCK
ASSOCIATION DOES NOT RESULT IN ANY REDUCTION OF THE
CONVERTING ASSOCIATION'S RESERVES AND NET WORTH;

(5)       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;

(6)       THE BUSINESS PURPOSES TO BE ACCOMPLISHED BY
THE CONVERSION;

(7)       THE MANNER IN WHICH GUARANTY STOCK IN THE