Requirements for Supervisory Stock Conversions

Upon the filing of an application by a bank pursuant to 209 CMR 33.15, the commissioner may in his discretion authorize the supervisory stock conversion of a savings bank or a co-operative bank if all of the following requirements are met: (a) in the judgment of the commissioner the converted bank would be a viable entity under 209 CMR 33.17, (b) the commissioner has possession of or certified the bank, under the provisions of Massachusetts General Laws, and (c) upon liquidation of the bank, the commissioner finds there would be no equity value realizable by the mutual account holders. No application for conversion shall be approved by the commissioner unless he has received such evidence as he may require that the converted bank will have deposit insurance.