(a) A depositor at a mutual bank shall have an undivided inchoate interest in the net worth of the mutual bank in proportion to the amount of the person‘s funds in the account or accounts divided by the aggregate amount of all funds of persons on deposit in time, savings, and demand accounts at the mutual bank at the time the interest ripens into a vested estate. The inchoate interest shall terminate upon the withdrawal of a depositor’s funds in a time, savings, or demand account or accounts from the mutual bank. The inchoate interest shall be of no force or effect unless and until a dividend is declared or liquidation proceedings are commenced under N.H. Rev. Stat. § 383-B:6-607. If a bank is owned by a mutual holding company, the depositors of the bank shall have the same inchoate interest in the net worth of the mutual holding company.
(b) In the event that a mutual bank or mutual holding company converts from mutual to stock form, the proprietary interest of depositors shall be transferred to the liquidation account of the converted bank in the same manner as prescribed for a federal savings bank or federal mutual holding company under federal law.

Ask a legal question, get an answer ASAP!
Click here to chat with a lawyer about your rights.

Terms Used In New Hampshire Revised Statutes 383-B:6-606


(c) Depositors of a mutual savings bank or association members of a savings association shall have the right to vote to give approval to a conversion of a mutual bank or mutual holding company from mutual to stock form in a transaction involving the issuance of securities of any bank or bank holding company other than the securities of the converting mutual bank or the securities of a mutual holding company organized by the converting mutual bank in order to acquire its capital stock, as required in N.H. Rev. Stat. § 383-B:6-608. Except as otherwise provided in the organizational documents of the mutual savings bank or savings association, each depositor or association member shall be entitled to cast one vote and may vote in person or by proxy.