Section 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.