---
kind: "section"
citation: "12 C.F.R. § 192.450"
title: "12"
number: "192.450"
heading: "Liquidation accounts."
url: "https://uscodex.org/cfr/12/192.450"
---

# §192.450. Liquidation accounts.

- (a) **In general.** A liquidation account represents the potential interest of eligible account holders and supplemental eligible account holders in the savings association's net worth at the time of conversion. A savings association must maintain a sub-account to reflect the interest of each account holder.
- (b) **Distribution of liquidation.** Before a savings association may provide a liquidation distribution to common stockholders, it must give a liquidation distribution to those eligible account holders and supplemental eligible account holders who hold savings accounts from the time of conversion until liquidation.
- (c) **Recording of liquidation account in financial statements.** A savings association may not record the liquidation account in its financial statements. The savings association must disclose the liquidation account in the footnotes to the savings association's financial statements.

## Notes

### Authority

Authority: 12 U.S.C. 1462a, 1463, 1464, 1467a, 2901 et seq., 5412(b)(2)(B); 15 U.S.C. 78c, 78 l , 78m, 78n, 78w.

### Source

Source: 85 FR 42643, July 14, 2020, unless otherwise noted.