Supervisory Stock Conversions

(1) A supervisory stock conversion is the sale of all of the converting bank's newly-issued capital stock to a third party or parties in a transaction in which the account holders of a savings bank have no subscription rights, the account holders of a co-operative bank have no voting or subscription rights and no liquidation account is established for the benefit of any account holders of a savings or co-operative bank. (2) The corporate existence of the converted bank shall be a continuation of the converting bank.