Oklahoma § 6-1203 - Reorganization

§ 6-1203. Reorganization

A. Standards of plan of reorganization. A plan of

reorganization shall not be prescribed under this Code unless:

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

creditors and stockholders.

(2) the aggregate 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 capital stock and, if

necessary, debentures 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 Code.

B. Modification or elimination of plan of reorganization Notice to Board. 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 of the Board

upon appropriate notice.

Added by Laws 1965, c. 161, § 1203.