New Mexico § 58-1-74 - Requirements of reorganization plan

§ 58-1-74. Requirements of reorganization plan

A. A plan of reorganization shall not be proposed under the Banking Act 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 claim 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; and (6) any merger or consolidation provided by the plan conforms to the requirements

of the Banking Act. B. Whenever in the course of reorganization supervening conditions render the plan

unfair, or its execution impractical, the commissioner [director of the financial

institutions division of the regulation and licensing department] may modify the plan

or liquidate the institution. Any such action shall be taken by order upon appropriate notice.