WASHINGTON — America's Community Bankers has filed a memorandum with the federal district court in Newark, N.J. in support of Spencer Savings Bank, a state-chartered mutual savings association that is opposing the efforts of an activist depositor group to gain control of its board of directors.
The memorandum supports a private right of action for the Elmwood Park, N.J.-based institution to seek judicial relief from the takeover attempt. Spencer has asked the court to enjoin the defendants from furthering their efforts to acquire control, and for damages.
In its memorandum, ACB stresses the importance of preserving the mutual form of ownership and the significant role that mutual associations play in serving their communities.
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"When, as here, a mutual institution discovers a plan that threatens its cooperative nature, the institution must have the ability to defend itself against these practices in order to preserve the intent of the laws and regulations enacted to protect the mutual form of ownership," ACB said.
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