Arizona § 6-489 - Consents required for plan to operate; exceptions

§ 6-489. Consents required for plan to operate; exceptions

A. After completion of the hearing provided by section 6-488, the court shall approve, modify or disapprove the plan. The plan shall not become operative unless and until it has been approved in its original or modified form by the court, nor unless and until the plan has been consented to, either in person or by a duly appointed agent, attorney or committee of the following persons:

1. If the association has shares of guaranty capital outstanding, then by the holders of a majority of the outstanding shares of guaranty capital.

2. By the holders of two-thirds in amount of the total accounts of all classes of the association.

3. If the association has creditors, then by two-thirds of each class of creditors of the association.

4. By two-thirds in amount of each class of other persons, if any, affected by the plan.

B. Consents required by subsection A of this section are not required:

1. In the case of the holder of an account, creditor or other person affected, or of any class of holders of accounts, creditors or other persons affected, if the rights of the person or class are not materially affected by the plan, or if the plan provides for the payment in cash of the amount of the right or interest of such person or class.

2. From holders of shares of guaranty capital of an association if the value of the assets of the association is less than the liabilities thereof, including the total amount of all outstanding accounts but excluding the amount of the outstanding shares of guaranty capital, or if the business property and affairs of the association are then in the possession of the deputy director.