Charter - Federal Mutual Association

Office of the Comptroller of the Currency
OMB no. 1557-0014
Expiration date: See www.occ.gov

Federal Mutual Association Charter
Federal mutual savings banks should substitute the term “savings bank” for “association”
throughout. The term “trustee” may be substituted for the term “director.”
Section 1: Corporate title. The full corporate title of the federal savings association is
______________________________________________________.
Section 2: Office. The home office shall be located in ________________________________
__________[city, state].
Section 3: Duration. The duration of the association is perpetual.
Section 4: Purpose and powers. The purpose of the association is to pursue any or all of the
lawful objectives of a federal mutual savings association chartered under section 5 of the Home
Owners’ Loan Act and to exercise all the express, implied, and incidental powers conferred
thereby and by all acts amendatory thereof and supplemental thereto, subject to the Constitution
and laws of the United States as they are now in effect, or as they may hereafter be amended, and
subject to all lawful and applicable rules, regulations, and orders of the Office of the Comptroller
of the Currency (OCC).
Section 5: Capital. The association may raise capital by accepting payments on savings and
demand accounts and by any other means authorized by the OCC.
Section 6: Members. All holders of the association’s savings, demand, or other authorized
accounts are members of the association. In the consideration of all questions requiring action by
the members of the association, each holder of an account shall be permitted to cast one vote for
each $100, or fraction thereof, of the withdrawal value of the member’s account. No member,
however, shall cast more than 1,000 votes. All accounts shall be nonassessable.
Section 7: Directors. The association shall be under the direction of a board of directors. The
authorized number of directors shall not be fewer than five or more than 15, as fixed in the
association's bylaws, except that the number of directors may be decreased to a number less than
five or increased to a number greater than 15 with the prior approval of the OCC.
Section 8: Capital, surplus, and distribution of earnings. The association shall maintain for
the purpose of meeting losses the amount of capital required by section 5 of the Home Owners’
Loan Act and by regulations of the OCC. The association shall distribute net earnings on its
accounts on such basis and in accordance with such terms and conditions as may from time to
time be authorized by the OCC: Provided, that the association may establish minimum-balance
requirements for accounts to be eligible for distribution of earnings.
All holders of accounts of the association shall be entitled to equal distribution of assets, pro
rata to the value of their accounts, in the event of voluntary or involuntary liquidation,
dissolution, or winding up of the association. Moreover, in any such event, or in any other
situation in which the priority of such accounts is in controversy, all such accounts shall, to the
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Office of the Comptroller of the Currency

extent of their withdrawal value, be debts of the association having the same priority as the
claims of general creditors of the association not having priority (other than any priority arising
or resulting from consensual subordination) over other general creditors of the association.
Section 9: Amendment of charter. Adoption of any preapproved charter amendment shall be
effective after such preapproved amendment has been approved by the members at a legal
meeting. Any other amendment, addition, change, or repeal of this charter must be approved by
the OCC before approval by the members at a legal meeting and shall be effective upon filing
with the OCC in accordance with regulatory procedures.

Attest: _______________________________________________________
Secretary of the Association

By:

_______________________________________________________
President or Chief Executive Officer of the Association

Attest: _____________________________________________________
Deputy Comptroller for Licensing, OCC

By:

______________________________________________________
Comptroller of the Currency

Effective date: __________________

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