Guam § 160307 - Requirements of Reorganization Plan.

§ 160307. Requirements of Reorganization Plan.

(a) A plan or reorganization shall not be prescribed under this Act,

unless:

(1) the plan is feasible and fair to all classes of trustors,

creditors and stockholders;

(2) the face amount of the interest accorded to any trustors,

creditors or stockholders under the Plan does not exceed the value

of the assets upon liquidation, less that 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 all assets held in trust

by the Trust Company;

(4) 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; and

(5) any merger or consolidation provided by the Plan conforms

to the requirements of this Act.

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(b) Whenever in the course or 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 of the U.S. District Court of Guam upon

appropriate notice.