51A-15-28. Requirements for adoption of reorganization plan.
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/sd/title-51/chapter-51-15/51a-15-28·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
No plan of reorganization may be prescribed under this chapter unless, in the opinion of the director or receiver:
(1)The plan is feasible and fair to all classes of depositors, creditors and stockholders;
(2)The face amount of the interest accorded to any class of depositors, creditors or stockholders under the plan does not exceed the value of the assets upon the liquidation less the full amount of the claims of all prior classes, subject, however, to any fair adjustment for new capital that any class will pay under the plan;
(3)The plan provides for the issuance of common stock in an amount that will provide an adequate ratio to assets;
(4)Any exchange of new common stock for obligations or stock of the bank will be effected in inverse order to the priorities in liquidation of the classes that will retain an interest in the bank and upon terms that fairly adjust any change in the relative interests of the respective classes that will be produced by the exchange;
(5)The plan assures the removal of any director, officer or employee responsible for any unsound or unlawful action or the existence of any unsound condition;
(6)Any merger or consolidation provided by the plan conforms to the requirement of this title.