Cuttyhunk Bank Letter

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  • Topic: Federal Deposit Insurance Corporation, Deposit insurance, Bank run
  • Pages : 2 (367 words )
  • Download(s) : 614
  • Published : September 4, 2010
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April 25, 1986
Dear Member,
This in regards to the Special Meeting called for the Members of the Cuttyhunk Bank. One of the agenda of the meeting is to seek approval of the conversion of Cuttyhunk Bank from a federal saving bank to a state-chartered saving s bank regulated by the Massachusetts Commissioner of Banks. Please note that this does not mean conversion to a stock form of organization. Cuttyhunk Bank will still remain a mutual savings bank. The conversion to a state charter savings bank will enhance Cuttyhunk Bank’s ability to serve its customers and remain a viable, competitive financial institution.

In spite of the conversion, Cuttyhunk Bank will continue to be insured by the Federal Deposit Insurance Corporation (FDIC). In addition, once the conversion has taken place, deposits in excess of FDIC limit of $100,000 will now be insured by the Deposit Insurance of Massachussetts, thereby improving our already strong deposit insurance protection.

The second item on the meeting agenda is regarding our merger with Harbor State Bank, a small saving bank located at 1234 Main Street in Roslindale. This merger will have no effect on the customers of Cuttyhunk Bank.

As per the federal law, we are required to notify all members of the bank when such a meeting is scheduled and you as a member of the Cuttyhunk Bank are entitled to attend this meeting. If you are unable to attend this meeting, you can still provide us with your proxy vote by either signing an account signature card or by returning special proxy forms sent early in 1981, which are still in force. At the Special Meeting the proxies will be in favour of the conversion to state charter and the merger with Harbor State Bank. If you wish to attend the Special Meeting you may vote in person, even if you have previously signed a proxy form.

Once again, I would like to reassure you that both the conversion from federal to state charter and the merger with Harbor State Bank, will strengthen...
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