12 C.F.R. § 239.54 – Plan of conversion.

(a) Adoption by the board of directors. Prior to filing an application for conversion, the board of directors of the mutual holding company must adopt a plan of conversion that conforms to §§ 239.59 through 239.62 and 239.63(b). The board of directors must adopt the plan by at least a two-thirds vote. The plan of conversion is required, under § 239.55(b), to be included in the conversion application.
(b) Contents of the plan of conversion. The mutual holding company must include the information included in §§ 239.59 through 239.62 and 239.63(b) in the plan of conversion. The Board may require the mutual holding company to delete or revise any provision in the plan of conversion if the Board determines the provision is inequitable; is detrimental to the mutual holding company, the account holders, other mutual holding companies, or other savings associations; or is contrary to public interest.
(c) Notice of board of directors' approval of the plan of conversion—(1) Notice. The mutual holding company must promptly notify its members that the board of directors adopted a plan of conversion and that a copy of the plan is available for the members' inspection in the mutual holding company's home office and in each of the subsidiary savings association's branch offices. The mutual holding company must mail a letter to each member or publish a notice in the local newspaper in every local community where the savings association has an office. The mutual holding company may also issue a press release. The Board may require broader publication, if necessary, to ensure adequate notice to the members.
(2) Contents of notice. The mutual holding company may include any of the following statements and descriptions in the letter, notice, or press release.
1. (i) The board of directors adopted a proposed plan to convert from mutual to stock form.
2. (ii) The mutual holding company will send its members a proxy statement with detailed information on the proposed conversion before the mutual holding company convenes a members' meeting to vote on the conversion.
3. (iii) The members will have an opportunity to approve or disapprove the proposed conversion at a meeting. At least a majority of the eligible votes must approve the conversion.
4. (iv) The mutual holding company will not vote existing proxies to approve or disapprove the conversion. The mutual holding company will solicit new proxies for voting on the proposed conversion.
5. (v) The Board must approve the conversion before the conversion will be effective. The members will have an opportunity to file written comments, including objections and materials supporting the objections, with the Board.
6. (vi) The IRS must issue a favorable tax ruling, or a tax expert must issue an appropriate tax opinion, on the tax consequences of the conversion before the Board will approve the conversion. The ruling or opinion must indicate the conversion will be a tax-free reorganization.
7. (vii) The Board might not approve the conversion, and the IRS or a tax expert might not issue a favorable tax ruling or tax opinion.
8. (viii) Savings account holders will continue to hold accounts in the savings association with the same dollar amounts, rates of return, and general terms as existing deposits. The FDIC will continue to insure the accounts.
9. (ix) The mutual holding company's conversion will not affect borrowers' loans, including the amount, rate, maturity, security, and other contractual terms.
10. (x) The savings association's business of accepting deposits and making loans will continue without interruption.
11. (xi) The current management and staff will continue to conduct current services for depositors and borrowers under current policies and in existing offices.
12. (xii) The subsidiary savings association may continue to be a member of the Federal Home Loan Bank System.
13. (xiii) The mutual holding company may substantively amend the proposed plan of conversion before the members' meeting.
14. (xiv) The mutual holding company may terminate the proposed conversion.
15. (xv) After the Board approves the proposed conversion, the mutual holding company will send proxy materials providing additional information. After the mutual holding company sends proxy materials, members may telephone or write to the mutual holding company with additional questions.
16. (xvi) The proposed record date for determining the eligible account holders who are entitled to receive subscription rights to purchase the shares.
17. (xvii) A brief description of the circumstances under which supplemental eligible account holders will receive subscription rights to purchase the shares.
18. (xviii) A brief description of how voting members may participate in the conversion.
19. (xix) A brief description of how directors, officers, and employees will participate in the conversion.
20. (xx) A brief description of the proposed plan of conversion.
21. (xxi) The par value (if any) and approximate number of shares that will be issued and sold in the conversion.
(3) Other requirements.
1. (i) The mutual holding company may not solicit proxies, provide financial statements, describe the benefits of conversion, or estimate the value of the shares upon conversion in the letter, notice, or press release.
2. (ii) If the mutual holding company responds to inquiries about the conversion, it may address only the matters listed in paragraph (c)(2) of this section.
3. (d) Amending a plan of conversion. The mutual holding company may amend its plan of conversion before it solicits proxies. After the mutual holding company solicits proxies, it may amend the plan of conversion only if the Board concurs.