Washington Administrative Code › Title 208 - Financial Institutions, Department of (See also Titles 50, 419, and 460) › Chapter 208-514 - Mutual savings banks › Section 208-514-110 - Liquidation account

Current through Register Vol. 24-14, July 15, 2024
(1) The entire
					unconsolidated net worth of a MHC shall constitute a liquidation account for
					the benefit of the depositors of its subsidiary stock savings banks who
					continuously have been depositors since the reorganization or were depositors
					of any savings association subsequently acquired by a MHC at a time when the
					association was in mutual form and remained depositors of the stock savings
					bank ("eligible depositors"). The liquidation account shall not be a fixed
					amount but may increase (as to the entire account but not as to any individual
					eligible depositor) or decrease (as provided in
					RCW
					   32.32.190 through
					32.32.205, except as application
					of those sections is inconsistent with these rules) over time. The function of
					the liquidation account is to establish that upon the complete liquidation of
					the mutual holding company, the entire net worth of the mutual holding company
					will be distributed among those persons who are the eligible depositors of its
					subsidiary savings bank(s) as of the date of the liquidation. The designation
					of the mutual holding company's net worth as a liquidation account shall not
					operate to restrict the use or application of the mutual holding company's net
					worth accounts.
(2) In the event of
					a complete liquidation of a mutual holding company, the remaining liquidation
					account of the mutual holding company shall be distributed ratably among all
					the eligible depositors of its subsidiary savings bank(s) as of the date of the
					liquidation.
(3) Upon the
					conversion to stock form of a mutual holding company, the liquidation account
					of the holding company shall no longer be maintained. Instead, each subsidiary
					savings bank shall at that time establish a liquidation account, which
					liquidation accounts shall in the aggregate equal the mutual holding company's
					liquidation account as of its last periodic report of condition immediately
					preceding its conversion into a stock-form holding company. The liquidation
					account established by each subsidiary savings bank shall be in the same
					proportion to the mutual holding company's liquidation account as the total of
					the subaccount balances of the then eligible depositors of the subsidiary
					savings bank bears to the total subaccount balances of the eligible depositors
					of all subsidiary savings banks of the mutual holding company. The liquidation
					account established by a subsidiary savings bank shall comply with the rules
					contained in
					RCW
					   32.32.185 through
					32.32.205, to the extent not
					inconsistent with these rules.
Statutory Authority: RCW 30.04.030 and
							43.320.040. 00-17-141, recodified
							as §
										208-514-110, filed 8/22/00,
							effective 9/22/00. Statutory Authority:
							RCW
							   32.34.040 - [32.34].050 and
							chapters
							32.08 and
							34.05 RCW. 93-13-142, §
							50-14-110, filed 6/23/93, effective 7/24/93. Statutory Authority:
							RCW
							   32.34.040 - [32.34.]050. 92-06-041, §
							50-14-110, filed 2/28/92, effective
							3/30/92.