Maryland § 9-603

§ 9-603.

    A proposed plan of conversion to a capital stock association shall provide:

        (1)    That each savings account holder will receive a withdrawable savings account in the converted association that is equal in amount to the withdrawable savings account in the mutual association;

        (2)    That all savings accounts will remain insured;

        (3)    That each savings account holder shall receive, without payment, nontransferable subscription rights to capital stock in the converted association;

        (4)    The number of shares of stock that will be sold;

        (5)    That subscription rights shall be on a basis pro rata to the member’s interest in the mutual association, however, fractional shares need not be issued;

        (6)    That the conversion to a capital stock association does not result in any reduction of the converting association’s reserves and net worth;

        (7)    An independent evaluation of the converting association’s pro forma market value as converted to support the offering of stock to the converting association’s members;

        (8)    The business purposes to be accomplished by the conversion;

        (9)    The manner in which capital stock in the converted association will be sold and distributed;

        (10)    A statement that capital stock is not insured; and

        (11)    That all earned surplus shall be distributed to members on a basis pro rata to the member’s interest in the mutual association. However, prior to such a distribution, there shall be set aside sufficient earned surplus in order to insure satisfying the requirements of §§ 9–218, 9–220, 9–221 and 9–324 of this title.