AI-assisted research summary: A qualifying majority may submit a reorganization plan to the commissioner, and the plan must be in writing and signed. If the plan reduces or defers payments to depositors or other creditors, written assent from owners of at least two-thirds of the affected deposits and liabilities is required.
A majority of the stock or shareholders of any institution under the supervision of the commissioner by stock or share vote, or a majority of the corporation members of a mutual savings bank, may submit to the commissioner at any time a plan for reorganization of such institution or bank. Such plan shall be in writing and shall be signed by the applicants. If such plan does not provide for the reduction or deferring of payment of the amount standing to the credit of any depositor or for the reduction of the amount or deferring of payment due any other creditor, said plan shall become effective upon approval of the commissioner. If such plan does provide for such reduction or deferment, it must be accompanied by the written assent of the owners of at least 2/3 in amount of the total deposits and other liabilities so affected. The commissioner, if he approves the plan, shall file it with the superior court in the county in which is located the office and principal place of business of the institution affected together with a petition for its allowance. The commissioner shall also file with said petition a statement of the condition of such institution including his valuation of its assets. He shall file with said plan the written assent of depositors, other creditors and stock or shareholders or members of a mutual savings bank corporation who have agreed to its provisions. The court after such notice to depositors, creditors, and stock or shareholders or corporation members whose assent is not so filed, as may be ordered, shall upon hearing make such orders thereon as the facts warrant and shall approve such plan with such changes therein as are approved by the commissioner as justice and equity shall require. No appeal shall lie to such orders and approval unless taken within 30 days from the date thereof. If no appeal is so taken, or upon the dismissal of such appeal if taken, such approval shall become final and the reorganization plan thereunder effective forthwith, and all parties in interest shall forever be bound by the provisions thereof. Such reorganization plan shall provide for the issue to each depositor of a negotiable non-interest bearing certificate showing the amount of deficit charged to his account. The issuing institution with the approval of the commissioner, by majority stock or share vote or by majority vote of corporation members if a mutual savings bank, may redeem such certificates in whole or proportionately in part after all preferred stock or shares, issued under the provisions of this chapter, has or have been retired, or provision for such retirement approved by the superior court or assented to in writing by the owners of such stock or shares has been made; but such certificates shall not otherwise be deemed to be a liability of such institution. No dividend shall be declared or paid and no distribution in liquidation shall be made on any stock or shares of the issuing institution, except on preferred stock or shares issued under the provisions of this chapter, until such certificates have been redeemed in full, or provision for such redemption, approved by the commissioner, has been made. Source: Source. 1933, 114:1. RL 317:11.