ASSEMBLY FINANCIAL INSTITUTIONS COMMITTEE

STATEMENT TO

ASSEMBLY, No. 604

STATE OF NEW JERSEY

DATED: MARCH 3, 1997

      The Assembly Financial Institutions Committee reports favorably Assembly Bill No. 604.

      Members of a mutual savings and loan association are entitled to vote at any meeting of a mutual association. This bill would increase to 1,000 the maximum number of votes a member of a State chartered mutual savings and loan association may cast at a mutual association meeting if the mutual association has chosen in its bylaws to permit its members to have more than one vote. Under this bill, if a mutual association permits its members to cast more than one vote, a member may cast one vote for each $100 on deposit up to a maximum of 1,000 votes.

      Currently, if the mutual association has chosen in its bylaws to permit its members to have more than one vote, the maximum number of votes a member may cast is 50. This bill would make the maximum number of votes a member of a State chartered mutual savings and loan association may cast consistent with the voting rights of members of federally chartered mutual savings and loan associations.

      This bill was pre-filed for introduction in the 1996-1997 legislative session pending technical review. As reported by the committee, the bill contains the changes required by technical review, which has been performed.