(a) General considerations. The FDIC shall review the notice and other materials submitted by the institution proposing to convert from mutual to stock form, specifically considering the following factors:

1. (1) The proposed use of the proceeds from the sale of stock, as set forth in the business plan;
2. (2) The adequacy of the disclosure materials;
3. (3) The participation of depositors in approving the transaction;
4. (4) The form of the proxy statement required for the vote of the depositors/members on the conversion;
5. (5) Any proposed increased compensation and other remuneration (including stock grants, stock option rights and other similar benefits) to be granted to officers and directors/trustees of the bank in connection with the conversion;
6. (6) The adequacy and independence of the appraisal of the value of the mutual savings bank for purposes of determining the price of the shares of stock to be sold;
7. (7) The process by which the bank's trustees approved the appraisal, the pricing of the stock, and the proposed compensation arrangements for insiders;
8. (8) The nature and apportionment of stock subscription rights; and
9. (9) The bank's plans to fulfill its commitment to serving the convenience and needs of its community.

(b) Additional considerations.

1. (1) In reviewing the notice and other materials submitted under this subpart, the FDIC will take into account the extent to which the proposed conversion transaction conforms with the various provisions of the mutual-to-stock conversion regulations of the Office of Thrift Supervision (OTS) (12 CFR part 563b), as currently in effect at the time the notice is submitted. Any non-conformity with those provisions will be closely reviewed.
2. (2) Conformity with the OTS requirements will not be sufficient for FDIC regulatory purposes if the FDIC determines that the proposed conversion transaction would pose a risk to the bank's safety or soundness, violate any law or regulation, or present a breach of fiduciary duty.

(c) Notice period.

1. (1) The period in which the FDIC may object to the proposed conversion transaction shall be the later of:

   1. (i) 60 days after receipt of a substantially complete notice of proposed conversion; or
   2. (ii) 20 days after the last applicable state or other federal regulator has approved the proposed conversion.
2. (2) The FDIC may, in its discretion, extend the initial 60-day period for up to an additional 60 days by providing written notice to the institution.

(f) Consummation of the conversion.

1. (1) An institution may consummate the proposed conversion upon either:

   1. (i) The receipt of a letter of non-objection; or
   2. (ii) The expiration of the notice period.
2. (2) If a letter of objection is issued, then the institution shall not consummate the proposed conversion until the FDIC rescinds such letter.