17:9A-165. Provision for classes of creditors or stockholders not bound by plan

312 words·~1 min read·/nj/title-17/chapter-9a/17-9a-165

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

A. The court, upon such notice and hearing as it shall determine, shall, subject to confirmation of the plan, provide for any class of creditors which is adversely affected by and is not bound by the plan, adequate protection for the realization by the creditors of such class of the value of their claims against the property dealt with by the plan and affected by such claims,

(1)by the transfer or sale, or by the retention by the bank, of such property subject to such claims; or

(2)by a sale of such property free of such claims, at not less than a fair upset price, and the transfer of such claims to the proceeds of such sale; or

(3)by appraisal and payment in cash of the value of such claims; or

(4)by such other method as will, under and consistent with the circumstances of the particular case, equitably and fairly provide such protection.

B. The court, upon such notice and hearing as it shall determine, shall, subject to confirmation of the plan, provide for any class of stockholders which is adversely affected by and is not bound by the plan, adequate protection for the realization by the stockholders of such class of the value of their equity, if any, in the property of the bank dealt with by the plan,

(1)by the sale of such property at not less than a fair upset price; or

(2)by appraisal and payment in cash of the value of their stock; or

(3)by such other method as will, under and consistent with the circumstances of the particular case, equitably and fairly provide such protection; but the protection afforded by this subsection shall not be required if the court shall determine that the liabilities of the bank are in excess of its assets.

L.1948, c. 67, p. 299, s. 165.