§ 5-611
175 words·~1 min read·
/md/financial-institutions/5-611A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§5–611.
(a)The board of directors or the depositors representing not less than 25 percent of the deposit liability of any banking institution that is in the possession of a receiver may:
(1)Propose a plan of reorganization for the reorganization and reopening of the banking institution or for the establishment of a new State banking institution, national banking association, or other corporation that they consider necessary; and
(2)Choose a committee to represent them to carry out the plan.
(1)The plan for reorganization of a commercial bank may provide for:
(i)The voluntary surrender or exchange of all or part of the outstanding capital stock of the commercial bank and the resale of that stock;
(ii)The sale of additional authorized stock;
(iii)The voluntary subscription or contribution by depositors and creditors to a guaranty fund; and
(iv)Any other protection for the depositors and creditors.
(2)The plan for reorganization of a savings bank may provide only for the voluntary subscription or contribution by depositors and creditors to a guaranty fund.