TITLE XXXV
BANKS AND BANKING; LOAN ASSOCIATIONS; CREDIT UNIONS

CHAPTER 386
SAVINGS BANKS

Section 386:1

386:1 Charters Perpetual. – Existing charters of savings banks shall be perpetual, although expressly limited to a term of years.

Source. 1883, 102:1. PS 165:1. PL 261:1. RL 309:1.

Section 386:1-a

386:1-a Powers and Inconsistent Charter Provisions. – Each savings bank and each association shall have all the powers conferred upon savings banks by the general statutes and rules adopted thereunder and shall have, in addition, all the powers conferred upon trust and banking companies by the general statutes and rules adopted thereunder, subject to all the duties and restrictions contained in such general statutes and rules. The provisions of such general statutes and rules shall prevail over any inconsistent charter provision of any savings bank or association.

Source. 1967, 7:1. 1983, 369:12. 1985, 55:9, eff. April 23, 1985.

Section 386:1-b

    386:1-b Rulemaking. – The bank commissioner shall adopt rules, under RSA 541-A, relative to:
    I. The construction, reconciliation and integration of laws applicable to savings banks, associations, and trust and banking companies to effectuate the purposes of RSA 386:1-a.
    II. The records and accounts required by RSA 386:2.
    III. The process for conducting verifications under RSA 386:21.
    IV. The sale of negotiable checks and drafts under RSA 386:34.
    V. The eligibility of securities to be pledged in accordance with the powers granted by RSA 386:57, and limitations on the aggregate amount of securities which may be so pledged in accordance with RSA 386:57.

Source. 1985, 55:10, eff. April 23, 1985.

Section 386:2

386:2 Records; Accounts. – The treasurer of every savings bank shall enter upon the books of the bank, at the times of the several transactions, according to forms approved by the commissioner, a true and detailed account of every receipt and payment on account of the bank, and a full and particular description of every note, certificate of stock and other security coming to the possession of the bank, with a statement of the amount paid or advanced thereon and the date of so doing; so that the books of the banks shall contain a full, intelligible and true history of all its dealings.

Source. 1881, 103:2. 1887, 65:1. PS 165:9. PL 261:8. RL 309:6.

Section 386:3

386:3 Report of Stock Ownership. – [Repealed 1998, 139:22, III, eff. Aug. 7, 1998.]

Trustees and Officers

Section 386:4

386:4 Eligibility as Affected by Indebtedness. – [Repealed 1961, 248:7, eff. Aug. 30, 1961.]

Section 386:5

386:5 Eligibility as Affected by Occupation. – [Repealed 1998, 139:22, IV, eff. Aug. 7, 1998.]

Section 386:6

386:6 Compensation. – Savings banks may pay their presidents, trustees, and treasurers reasonable compensation for services rendered.

Source. 1869, 4:4. 1873, 35:1. GL 170:5. 1881, 103:6. PS 165:4. PL 261:6. RL 309:4.

Section 386:7

386:7 Loans to Officers. – [Repealed 1961, 248:7, eff. Aug. 30, 1961.]

Deposits of Funds in Other Banks

Section 386:8

386:8 Restrictions. – A savings bank may deposit its funds in a national bank or trust company subject to the limitations of RSA 387:22 but such deposit shall not, at any time, exceed 100 percent of the capital, surplus and undivided profits of such national bank or trust company except with the approval in writing of the bank commissioner.

Source. 1874, 71:7. GL 170:16. PS 165:15. PL 261:17. 1933, 67:2. RL 309:9. RSA 386:8. 1963, 175:1, eff. Aug. 20, 1963.

Guaranty Funds and Dividends

Section 386:9

386:9 Guaranty Funds. – Every mutual savings bank shall annually pass to the credit of a guaranty fund a sum equal to 10 percent of its net earnings for the year until such guaranty fund shall amount to a sum equal to 5 percent of its deposits. Any savings bank may increase such guaranty fund to such an amount as the trustees may determine to be for the best interests of the depositors, but no part of the guaranty fund shall be used to pay dividends.

Source. 1874, 71:5. GL 170:13. PS 165:16. 1899, 74:1. PL 261:18. RL 309:10. 1947, 28:1, eff. March 12, 1947.

Section 386:10

    386:10 Dividends; Converting Form. –
    I. After providing for the requirements of the guaranty fund, savings banks and savings departments of trust companies may pay dividends from their net income, but not in excess of 3 1/2 percent per year, unless the total value of the assets of such savings bank or savings department, as determined by the commissioner, shall exceed the amount due the depositors by at least 5 percent. No board of trustees of a savings bank is required to pay dividends on net income as permitted in this paragraph nor shall any such board or any of its trustees be liable to any depositor of the savings bank for not paying such dividends.
    II. (a) Notwithstanding any other provision of law to the contrary, the board of trust company incorporation may adopt rules pursuant to RSA 541-A permitting any mutual savings bank to convert to stock form in the same manner, to the same extent and with comparable limitations as federal savings and loan associations operating within this state are permitted under rules of the Office of Thrift Supervision. However, no conversion under this paragraph shall be permitted which includes as part of the conversion transaction the issuance of securities of any bank or holding company other than securities of the converting savings bank or the securities of a holding company organized by the converting savings bank in order to acquire its capital stock, unless in addition to procedures required by the rules adopted under this paragraph, it is ratified by the depositors of the mutual savings bank seeking to convert. Ratification by depositors shall not be required if:
          (1) The conversion is part of a reorganization into a mutual holding company pursuant to RSA 386-B;
          (2) The conversion is required by federal or state regulatory authorities; or
          (3) The conversion has been commenced by the filing with the board of trust company incorporation of an application to convert prior to the effective date of this paragraph.
       (b) For purposes of effectuating the depositor ratification procedures required by this paragraph, the board of trust company incorporation is directed to adopt depositor voting procedures, applying to the same extent and with comparable limitations as federal savings and loan associations operating within this state are permitted under rules of the Office of Thrift Supervision, or any successor thereto. The rules adopted pursuant to this paragraph shall contain a provision allowing for the inclusion of comments on the conversion by individual corporators and groups of corporators with the voting materials submitted to the depositors. Such inclusion shall be at the expense of the converting bank.
    III. In connection with a proposed bank conversion under the provisions of RSA 386:10, II, RSA 393-A:4, or RSA 394-A:10 or a proposed mutual holding company reorganization under RSA 386-B, no new compensation arrangement shall be provided for trustees, directors, officers, or employees unless the bank commissioner finds that it is fair and reasonable, based upon all of the facts and circumstances of the conversion and the future management and operational needs of the bank or holding company, including, but not limited to, comparable compensation arrangements at similarly situated banks or holding companies. In addition, no conversion or reorganization shall be approved by the bank commissioner unless the bank commissioner finds that the process of corporator decisions and approvals was conducted in a lawful, informed, and independent manner, that the rights of the converting mutual savings bank's depositors are not impaired under the plan of conversion or reorganization, that under the terms of the proposed conversion or reorganization the converting mutual savings bank's depositors are not treated detrimentally or inequitably, and that the plan of conversion or reorganization does not provide the corporators, trustees, directors, officers, or employees with any benefit, privilege, or advantage with respect to the purchase, if any, of the capital stock in the conversion or reorganization which is not generally available to the converting mutual savings bank's depositors.

Source. 1909, 125:1. 1915, 168:1. 1917, 128:1. PL 261:19. 1933, 67:3. RL 309:11. RSA 386:10. 1981, 267:2. 1986, 122:1. 1988, 168:2. 1991, 107:4. 1994, 250:7. 1995, 293:9, eff. June 21, 1995.

Section 386:11

386:11 Assets for Dividend Purposes. – In determining the value of the assets of the savings department of a trust company for dividend purposes, the assets in the general banking department of such company, to the extent that the same shall exceed in value the amount of deposits of whatever character in such department by 5 percent, shall be deemed assets of such savings department.

Source. 1909, 125:1. 1915, 168:1. 1917, 128:1. PL 261:20. 1927, 109:1. RL 309:12.

Guaranty Savings Banks

Section 386:12

386:12 Capital Stock. – Until the general deposits of a guaranty savings bank or a bank conducted as a guaranty savings bank shall exceed $1,000,000, its capital stock shall at all times be equal to 10 percent of its general deposits. After the general deposits exceed $1,000,000, said banks shall carry each year to a guaranty fund so much of their net earnings as shall maintain an unimpaired guaranty fund of 5 percent for all deposits in excess of $1,000,000.

Source. 1921, 71:1. PL 261:21. RL 309:13. RSA 386:12. 1975, 86:1, eff. June 14, 1975.

Section 386:13

386:13 Guaranty Fund. – Any excess of the capital stock over $100,000 shall be considered as part of the guaranty fund and not be subject to any laws relating to capital stock of guaranty savings banks but shall be subject to the laws governing the guaranty fund of mutual savings banks. The guaranty fund shall not be used to pay dividends but may be transferred at any time to the capital stock.

Source. 1921, 71:1. PL 261:22. RL 309:14. RSA 386:13. 1975, 86:1, eff. June 14, 1975.

Section 386:14

386:14 Increase. – The stockholders in any savings bank incorporated and doing business under the guaranty system may vote to increase the capital stock at a meeting of the stockholders called for that purpose.

Source. 1895, 92:1. PL 261:23. RL 309:15. RSA 386:14. 1975, 86:1, eff. June 14, 1975.

Section 386:15

386:15 Distribution. – The amount of the increase or addition to the capital stock may be subscribed for and taken by the stockholders in proportion to their shares, or by other parties in case of the failure of said stockholders to take and pay for such increase or addition within 90 days.

Source. 1895, 92:1. PL 261:24. RL 309:16. RSA 386:15. 1975, 86:1, eff. June 14, 1975.

Section 386:16

386:16 Preferences. – Said increase or addition to capital stock may be on such terms of preference over the original issue, as to dividends and in the distribution of assets, as shall be determined by vote of the stockholders at the meeting when such increase or addition is voted.

Source. 1895, 92:1. PL 261:25. RL 309:17. RSA 386:16. 1975, 86:1, eff. June 14, 1975.

Section 386:17

386:17 Interest Rates. – All savings banks incorporated and doing business upon the guaranty system shall, subject to the provisions of RSA 386:10, pay such rate of interest on general deposits as the trustees or directors thereof may vote from time to time.

Source. 1941, 24:1. RL 309:18.

Deposits and Withdrawals

Section 386:18

386:18 Minors. – Savings banks and other institutions for savings may pay to minors the deposits to their credit as if they were of age, and their receipts shall be sufficient discharges for the same. A minor shall have the power of a person of lawful age to pledge any type of savings account maintained in a savings bank or other institution for savings, of which account such minor is owner or co-owner, in order to secure a collateral obligation not exceeding the amount of such account.

Source. 1857, 1961:1. GS 153:22. GL 170:22. PS 165:19. PL 261:27. RL 309:19. RSA 386:18. 1965, 114:3, eff. July 27, 1965.

Section 386:19

386:19 Joint Deposits. – When a deposit has been made in any savings bank in the names of 2 persons, payable to either, or payable to either or the survivor, such deposit or any part thereof, or any interest or dividend thereon, may be paid to either of said persons, whether the other be living or not; and the receipt or acquittance of the person so paid shall discharge the bank for any payment so made.

Source. 1909, 92:1. PL 261:28. RL 309:20. RSA 386:19. 1957, 22:4. 1973, 544:10. 1975, 439:26. 2002, 232:9, eff. Jan. 1, 2003.

Section 386:20

386:20 Inapplicability of Deposit Limits. – No limitation of the amount of deposits contained in the charter of any savings bank or trust company shall apply to trust funds, deposits for the creation of sinking funds, or deposits of the state, counties, towns, or village districts.

Source. 1907, 123:1. PL 261:29. RL 309:21.

Verification of Deposit Books

Section 386:21

386:21 Verification. – Every trust company, savings bank, cooperative bank and building and loan association shall, at its own expense, to such extent and in such manner as the commissioner shall prescribe, cause to be conducted a verification of individual savings deposit accounts or due books of shareholders with the books of the company, bank or association.

Source. PS 165:23. 1895, 105:7. 1899, 72:1. PL 261:30. 1931, 96:4. RL 309:22. RSA 386:21. 1957, 258:2. 1959, 245:1. 1965, 113:1. 1967, 8:1, eff. April 21, 1967.

Section 386:22,-23

386:22, 386:23 Repealed. – [Repealed 1967, 8:2, eff. April 21, 1967.]

Inactive Accounts

Section 386:24-26

386:24 to 386:26 Repealed. – [Repealed 1965, 214:2, eff. Jan. 1, 1966.]

Section 386:27

386:27 Relief on Voluntary Petition. – Upon voluntary petition by any financial organization, as defined in RSA 471-C, desiring, for any reason, to pay one or more deposits and unable to locate the owners thereof, the superior court may, upon notice to the bank commissioner and the attorney general, and upon the filing of one or more affidavits that diligent effort has been made to locate the owners, decree that such deposits have been presumably abandoned. Such financial organization shall forthwith report such deposits to the state treasurer following the procedure provided in RSA 471-C:19 but on an annual basis (rather than less frequently); and such deposits shall thereafter become subject to those provisions of RSA 471-C which apply to property reported to the state treasurer as presumably abandoned.

Source. 1941, 17:1. RL 309:28. RSA 386:27. 1965, 214:6. 1988, 256:6, eff. June 29, 1988.

Section 386:28-30

386:28 to 386:30 Repealed. – [Repealed 1965, 214:2, eff. Jan. 1, 1966.]

Lost Deposit Books

Section 386:31-33

386:31 to 386:33 Repealed. – [Repealed 1961, 136:3, eff. July 21, 1961.]

Sale of Checks or Drafts

Section 386:34

386:34 Sale of Checks. – Savings banks, building and loan associations or cooperative banks may, under regulations made by the commissioner, sell negotiable checks and drafts issued by it or drawn by or on it and payable by or through a trust company or a national banking association.

Source. 1953, 146:1, eff. May 8, 1953.

Examination of Banks

Section 386:35-38

386:35 to 386:38 Repealed. – [Repealed 1981, 173:2, eff. Aug. 1, 1981.]

Custody of Depositors' Books

Section 386:39

386:39 Retention by Treasurer. – It shall be unlawful for the treasurer of any institution receiving savings deposits or transacting the business of a savings bank to retain in his custody for more than 10 days at a time any savings bank book belonging to a depositor therein, except when held by the bank as collateral security.

Source. 1905, 56:1. PL 261:60. RL 309:39.

Banks Operating as Guaranty Savings Banks; and Savings
Departments of Trust Companies

Section 386:40

386:40 Power to Cancel Capital Stock. – Any bank operating as a guaranty savings bank may at any time by a 2/3 vote of the stockholders cancel its capital stock and distribute pro rata among the stockholders all or any part of the funds of the bank to which they are entitled, if any; provided, however, (1) that no distribution shall be made that will reduce the total value of the net assets of the bank as found by the commissioner, including any funds to which the stockholders are entitled, to an amount less than 105 percent of the amount due the general depositors, and (2) that no such vote to cancel where no distribution is to be made to the stockholders shall become effective and no such distribution shall be made (a) except with the written approval of the bank commissioner, and (b) until all general depositors shall have consented to such proposed action or the commissioner shall have given them 30 days' notice thereof at the expense of the bank by depositing a written notice thereof in the mail, first class postage prepaid, addressed to each general depositor at his address as shown on the records of the bank or as otherwise known to the commissioner.

Source. 1939, 170:7. RL 309:40. RSA 386:40. 1975, 86:2, eff. June 14, 1975.

Section 386:41

386:41 Special Guaranty Fund Established. – When the net assets of the bank at the time of such vote are less than, or have been reduced by distribution among the stockholders under the provisions of RSA 386:40 to 105 percent of the amount due the general depositors, the amount by which the net assets of the bank exceed the amount due the general depositors shall be set aside as a special guaranty fund which shall be increased each year by adding thereto the proportion of the bank's net annual earnings properly attributable to such guaranty fund, including annual additions thereto theretofore made and shall be maintained as a special guaranty fund for the general deposits, until such time as the commissioner shall find that the bank has built up a new guaranty fund equal to 5 percent of the amount due general depositors. Said special guaranty fund including the annual additions above provided for shall thereupon be distributed among the stockholders.

Source. 1939, 170:7. RL 309:41. RSA 386:41. 1983, 369:2, eff. Aug. 20, 1983.

Section 386:42

386:42 Operation as Mutual Savings Bank. – Upon and after the effective date of a vote to cancel the capital stock if no distribution is to be made to the stockholders or when the net assets of the bank at the time of such vote are less than, or have been reduced by distribution among the stockholders under the provisions of RSA 386:40 to 105 percent of the amount due general depositors, the bank shall no longer be entitled to the benefits of or subject to the provisions of any law general or special applicable to guaranty savings banks alone but shall be and operate as a mutual savings bank only with all powers, benefits, and privileges and subject to all the restrictions, regulations, and provisions of all general laws governing the operation of or applicable to mutual savings banks. Upon and after the effective date of a vote to cancel the capital stock where no distribution is to be made, or upon and after the final distribution of all the funds to which the stockholders are entitled, under the provisions of RSA 386:41 the officers and trustees or directors of the bank then in office shall be and become the members of the corporation. The number of members shall within 30 days thereafter be increased to not less than 20 at a meeting of the members duly called by the secretary or clerk for the purpose and may at any time be increased to not more than 40. Pending such meeting the trustees or directors shall prepare and adopt such new or amended bylaws for regulating the affairs of the bank as they deem necessary by reason of the cancellation or distribution of the capital stock.

Source. 1939, 170:7. RL 309:42. RSA 386:42. 1975, 86:3, eff. June 14, 1975.

Section 386:43

386:43 Savings Department of Trust Company. – Under RSA 386:40-42 a trust company may take all actions with respect to its savings department and with like effect as though such savings department were a separately incorporated guaranty savings bank and the net assets of such savings department in excess of the amount due to depositors therein were special deposits of a guaranty savings bank owned by such trust company, and such savings department shall become a separate corporation and shall be and operate as a mutual savings bank as provided by RSA 386:42 under such name as shall have been provided in the vote passed under RSA 386:40.

Source. 1939, 170:7. RL 309:43.

Special Notice Account Deposits

Section 386:44-47

386:44 to 386:47 Repealed. – [Repealed 1969, 413:3, eff. Aug. 31, 1969.]

Bonus Account Deposits

Section 386:48-50

386:48 to 386:50 Repealed. – [Repealed 1969, 413:3, eff. Aug. 31, 1969.]

Dividends on Such Special Accounts

Section 386:51-53

386:51 to 386:53 Repealed. – [Repealed 1969, 413:3, eff. Aug. 31, 1969.]

Section 386:54

386:54 Savings Accounts Without Passbooks. – It shall be lawful for all savings banks and savings departments subject to this chapter to accept deposit accounts which are to be appropriately evidenced by a document other than a passbook or bank book. The provisions of RSA 386:21 and RSA 386:39 shall apply to such other evidence of deposit account.

Source. 1961, 248:10, eff. Aug. 30, 1961.

Self-Employed Retirement Plans

Section 386:55

386:55 Trustee Powers. – A savings bank shall have the power to act as trustee under a retirement plan established pursuant to the provisions of the act of Congress entitled ""Self-Employed Individuals Tax Retirement Act of 1962'', provided that the provisions of such retirement plan permit, although they need not limit, the investment of the funds of such trust in deposits in savings banks. In the event that any such retirement plan which, in the judgment of the savings bank, constituted a qualified plan under the provisions of said Self-Employed Individuals Tax Retirement Act of 1962 and the regulations promulgated thereunder at the time the trust was established and accepted by the savings bank, is subsequently determined not to be such a qualified plan, in whole or in part, the savings bank may, nevertheless, continue to act as trustee of any funds theretofore delivered to it under such plan and to dispose of the same in accordance with the directions of the grantor and the beneficiaries thereof. No savings bank, in respect of funds of which it is trustee under this section, shall be required to segregate such funds for purposes of investment, unless the trust instrument so provides; but a savings bank shall keep appropriate records for each trust showing in proper detail all transactions engaged in under the authority of this section.

Source. 1969, 411:4, eff. Aug. 31, 1969.

Individual Retirement Accounts

Section 386:56

386:56 Individual Retirement Accounts. – A savings bank shall have the power to act as trustee of an individual retirement account established pursuant to the provisions of the act of Congress entitled ""Employee Retirement Income Security Act of 1974'', and as said act may be further amended from time to time provided that the provisions of the written governing instrument creating such account permit, although they need not limit, the investment of the funds of such account in deposits in savings banks. In the event any individual retirement account of which a savings bank is serving as trustee ceases to be an exempt individual retirement account, in whole or in part, under the provisions of said ""Employee Retirement Income Security Act of 1974'', and as said act may be further amended from time to time, and regulations promulgated thereunder, the savings bank may, nevertheless, continue to act as trustee of any funds theretofore delivered to it under said trust and to hold, manage and dispose of the same in accordance with the applicable provisions of said governing instrument.

Source. 1975, 91:1, eff. June 21, 1975.

Deposits

Section 386:57

    386:57 Security for Certain Deposits of Public Funds. –
    I. Any bank or association chartered by this state to engage in a banking business shall have the power to pledge securities to secure deposits of public funds by the state or any of its officers, agencies or instrumentalities, or by any of the political subdivisions of the state or their officers, agencies or instrumentalities. In lieu of such collateralization, such banks and associations are authorized to secure such public deposits by surety bonds and to pledge securities to the surety in connection therewith. Any such deposit of public funds in any such bank or association may be evidenced by an agreement in such form and upon such terms and conditions as may be agreed upon by the depositing public authority and such bank or association. The bank commissioner may by rule limit the aggregate amount of securities which may be pledged by such banks and associations consistent with safe and sound banking, based upon the adequacy of the surplus of such bank or association and other criteria deemed pertinent by the bank commissioner.
    II. The bank commissioner shall by rules adopted under RSA 541-A define and classify by risk the nature of securities appropriate for collateral. There is created an advisory committee on collateralization of public funds to assist the bank commissioner in the development of such rules. The committee shall consist of the following: the state treasurer; 2 members of the New Hampshire Bankers Association, appointed by the president of the association; 2 members of the New Hampshire Government Finance Officers Association, appointed by the president of the association; and one public member recommended by both associations and appointed by the bank commissioner.

Source. 1979, 165:1. 1985, 55:11. 1991, 383:8. 2001, 54:7, eff. Jan. 1, 2002.

Section 386:58

386:58 Demand Deposits. – Notwithstanding any other provision of the law to the contrary, there shall be no limitation upon the acceptance of demand deposits by savings banks or associations.

Source. 1983, 369:14, eff. Jan. 1, 1984.

Mutual Savings Banks

Section 386:59

386:59 Duties of Trustees of Mutual Savings Banks. – The governance of a mutual savings bank shall be vested solely in its board of trustees. The trustees shall have all powers and authorities granted under the charter and bylaws of the bank and applicable federal and state laws, rules, and regulations. The trustees shall elect officers and shall supervise management of the bank. The trustees shall be required to review and approve by majority vote, or by higher vote if required by applicable state laws or rules or by the charter or bylaws, any matter expressly reserved for the approval of corporators under RSA 386:60 prior to submitting the matter to the corporators for their approval. In exercising their duties as trustees, the trustees shall consider the interests of the depositors, borrowers, and other customers of the bank, the general benefit and economic well-being of the communities served by the bank and the safety, soundness, and general business needs of the bank. The trustees shall be accountable to the corporators for the proper discharge of their duties.

Source. 1995, 293:2, eff. June 21, 1995.

Section 386:60

386:60 Duties of Corporators of Mutual Savings Banks. – Except as expressly provided in RSA 386:59, the corporate powers of a mutual savings bank shall be vested solely in the corporators, who shall be deemed to be exclusively representative of, and shall exclusively represent, the various interests and communities served by the bank. Each corporator shall be entitled to cast one vote and may vote in person or by proxy. The corporators shall elect persons to serve as corporators and trustees, and may remove any corporator or trustee who has failed to properly discharge his or her duties, in the manner prescribed by the charter and bylaws. The corporators shall have authority to approve by majority vote, or by higher vote if required by applicable state laws or rules or by the charter or bylaws, the amendment of the charter and bylaws, the conversion of the bank from mutual to stock form, the formation of a mutual bank holding company, the merger or consolidation of the bank with any other banking organization, the voluntary liquidation of the bank, and any other matter expressly reserved for the approval of corporators under applicable state laws or rules or the charter or bylaws of the bank. The corporators shall consider the interests of the depositors, the borrowers and other customers of the bank, the general benefit and economic well-being of the communities served by the bank, and the safety, soundness, and general business needs of the bank in exercising their duties as corporators.

Source. 1995, 293:2, eff. June 21, 1995.

Section 386:61

    386:61 Rights of Depositors of Mutual Savings Banks. –
    I. Any person having funds on deposit in a time, savings, or demand account or accounts at a mutual savings bank shall have an undivided inchoate interest in the net worth of the bank in proportion to the amount of such person's funds in such account or accounts divided by the aggregate amount of all funds of persons on deposit in time, savings, and demand accounts at the bank at the time the interest ripens into a vested estate. Such inchoate interest shall terminate upon the withdrawal of a depositor's funds in a time, savings, or demand account or accounts from the bank. Such inchoate interest shall be of no force or effect unless and until a dividend is declared or liquidation proceedings are commenced pursuant to RSA 386:62.
    II. In the event that a mutual savings bank converts from mutual to stock form, the inchoate interest of depositors shall be transferred to the liquidation account of the converted bank in the manner prescribed by applicable state laws and rules.
    III. Depositors shall have the right to vote to give approval to a conversion of a bank 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 bank or the securities of a holding company organized by the converting bank in order to acquire its capital stock, as required in RSA 386:10, II. Each depositor shall be entitled to cast one vote and may vote in person or by proxy.

Source. 1995, 293:2, eff. June 21, 1995.

Section 386:62

386:62 Dividends to Depositors of Mutual Savings Banks. – Except as may be limited or otherwise required by applicable federal or state laws, rules, and regulations, and subject to their management duties as provided in RSA 386:59, the trustees of a mutual savings bank may declare a dividend and distribute the capital, surplus, net income, and profits to the depositors of the bank, in proportion to the average amount of their respective funds on deposit in time, savings, or demand accounts during the 30-day period immediately preceding the time at which a dividend is declared, in such amounts, at such times, and under such conditions as are determined by the trustees in the exercise of their reasonable discretion. In the event of liquidation of a mutual savings bank, the assets, if any, of the bank remaining after payment of all liabilities and the costs and expenses of the liquidation shall be distributed as a dividend to the depositors of the bank, in proportion to the average amount of their respective funds on deposit in time, savings, or demand accounts, during the 30-day period immediately preceding the time at which the liquidation proceedings are commenced.

Source. 1995, 293:2, eff. June 21, 1995.

Section 386:63

386:63 Authority to Invest in Other Mutual Savings Banks. – Notwithstanding any other law to the contrary, a mutual savings bank may invest an amount not to exceed 25 percent of its capital and surplus in the capital debentures, bonds, special deposits, or other debt securities of any other mutual savings bank located in this state or in any other state, whether such other bank is in organization or in existence. For purposes of this section, if the investment constitutes more than 50 percent of the capital and surplus of the bank issuing the capital debentures, bonds, special deposits or other debt securities, the banks involved in such an investment transaction shall be deemed affiliates and may receive deposits, renew time deposits, close loans, service loans, and receive payments on loans and other obligations as an agent for each other in the same manner as bank subsidiaries of a bank holding company may do so under subsection (r) of section 18 of the Federal Deposit Insurance Act (12 U.S.C. section 1828). Such banks shall not be considered branches of each other nor shall the bank making the investment be considered a bank holding company.

Source. 1995, 293:2, eff. Sept. 29, 1995.