§ 7316. Conversion of savings banks life insurance into a mutual life
insurance company. (a) (1) Upon compliance with the requirements of this
section, the life insurance business conducted by all savings and
insurance banks as defined in article six-A of the banking law may be
converted into and transferred to a corporation formed as set forth in
subsection (b) of this section and licensed as a mutual life insurance
company to do the kinds of insurance business specified in paragraphs
one, two and three of subsection (a) of section one thousand one hundred
thirteen of this chapter. Such conversion and transfer shall be effected
pursuant to a plan approved by the superintendent and the superintendent
of banks. Such plan shall be submitted by the trustees of savings banks
life insurance fund to the superintendent and the superintendent of
banking in writing and shall set forth in full the terms and conditions
thereof.

(2) Prior to the submission thereof to the superintendent and the
superintendent of banks, such plan shall be approved by the vote of at
least three-fourths of the trustees of savings banks life insurance fund
and then by the vote of at least three-fourths of all the savings and
insurance banks at a meeting of all such banks called for the purpose of
submitting such plan to such banks for approval. Written notice of such
meeting shall be given to each such bank by first class mail addressed
to the chairman or president of the bank at the bank's principal office
not less than thirty days prior to the date of such meeting. Such notice
shall state the purpose for which the meeting is called and shall be
accompanied by a true and complete copy of such plan. At such meeting
the vote of each such bank shall be cast by the chairman or president
thereof or by an officer thereof designated by the chairman or president
in a writing addressed to and received by the secretary of savings banks
life insurance fund prior to the date of such meeting. The results of
the vote and the minutes of the meeting shall be submitted to the
superintendent and the superintendent of banks.

(3) The superintendent and the superintendent of banks each may
approve the plan if he finds that it conforms to the requirements of law
and is fair and equitable to the holders of insurance policies issued by
the life insurance departments of the savings and insurance banks. The
plan submitted shall include a filing in accordance with section
thirteen hundred twenty-two of this chapter which shows that the
proposed mutual insurer's risk based capital level is in excess of the
company action level and there is no company action level event. Upon
the approval by the superintendent and the superintendent of banks of
the plan, the trustees of savings banks life insurance fund shall form a
corporation as set forth in subsection (b) of this section to which the
life insurance business conducted by all the savings and insurance banks
shall be transferred.

(b)(1) To form the corporation described in subsection (a) of this
section, the trustees of savings banks life insurance fund shall submit
to the superintendent, in writing, a proposed declaration, charter and
by-laws for such corporation. Such submission to establish a licensed
corporation shall conform to the requirements of section one thousand
two hundred one of this chapter.

(2) If the superintendent finds that the submission complies with the
requirements of section one thousand two hundred one of this chapter, he
shall file the declaration, charter and by-laws in his office.
Coincident with such filing, the corporation that is the subject of such
declaration, charter and by-laws shall be licensed as a mutual life
insurance company to do the kinds of insurance business specified in
paragraphs one, two and three of subsection (a) of section one thousand
one hundred thirteen of this chapter and shall have all the powers of
such a corporation under this chapter. If requested by the corporation,
the superintendent shall issue a certified copy of the declaration and
charter and a certificate of incorporation executed by him in the name
or the people of the state.

(3) The corporation formed pursuant to the provisions of this
subsection shall be liable for, and shall hold savings banks life
insurance fund, its trustees, officers and employees harmless from, all
obligations of and claims against savings banks life insurance fund, its
trustees, officers or employees related to or arising out of the powers
or duties of savings banks life insurance fund under article six-A of
the banking law. Such corporation shall be liable for, and shall hold
each savings and life insurance bank, its directors, officers and
employees harmless from, all obligations of and claims against such
savings and life insurance bank, its directors, officers and employees
related to or arising out of each and every insurance policy and each
and every annuity contract issued by the life insurance department of
such bank.