Guam § 106403 - Requirements of Reorganization Plan.

§ 106403. Requirements of Reorganization Plan.

(a) A plan of reorganization shall not be prescribed under this Title unless:

(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 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 in under the plan.

(3) The plan provides for the issuance of common stock in an amount that will provide an

adequate ratio to deposits.

(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 an unsound condition.

(6) Any merger or consolidation provided by the plan conforms to the requirements of this Title.

(b) Whenever in the course of reorganization supervening conditions render the plan unfair or its

execution impractical, the Commissioner may modify the plan or liquidate the institution. Any such action

shall be taken by order upon appropriate notice.