Mutual Association

Savings and Loan Association organized as a cooperative owned by its members. Members' deposits represent shares; shareholders vote on association affairs and receive income in the form of dividends. Unlike state-chartered corporate S&Ls, which account for a minority of the industry, mutual associations are not permitted to issue stock, and they are usually chartered by the Office of Thrift Supervision (OTS) and belong to the Savings Association Insurance Fund (SAIF). Deposits are technically subject to a waiting period before withdrawal, although in practice withdrawals are usually allowed on demand. See also Demutalization.