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- Alaska Statutes.
- Title 6. Banks and Financial Institutions
- Chapter 5. Alaska Banking Code
- Section 471. Reorganization.
previous: Section 470
. Department in Possession.
next: Section 472
AS 06.05.471. Reorganization.
- (a) If the department decides to reorganize a state bank, the department, after according a hearing to all interested
parties, shall enter an order proposing a reorganization plan. The department shall send a copy of the plan to each
depositor and creditor who will not receive payment of a claim in full under the plan, and a notice that, unless within
30 days the plan is disapproved in writing by persons holding one-third or more of the aggregate amount of the claims,
the department will reorganize the bank.
- (b) A plan of reorganization may not be prescribed under this chapter unless, in the opinion of the department,
- (1) the plan is fair to all classes of depositors, creditors, and shareholders;
- (2) subject to a fair adjustment for new capital that a class will pay under the plan, the face amount of the interest
accorded to a class of depositors, creditors, or shareholders under the plan does not exceed the value of the assets at
liquidation less the full amount of the claims of all prior classes;
- (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 made
- (A) in the inverse order of the priorities in liquidation of the classes that will retain an interest in the bank; and
- (B) upon terms that adjust in a fair manner any change in the relative interest of the respective classes that will be
produced by the exchange;
- (5) the plan assures the removal of a director, officer, or employee responsible for a problem identified by the
department under AS 06.05.468(a) - (b), including an
unsafe, unsound, or unlawful action or the existence of an unsafe or unsound condition;
- (6) any merger or consolidation provided by the plan complies with this chapter.
- (c) When in the course of reorganization, supervening conditions render a plan of reorganization unfair or its execution
impractical, the department may modify the plan or liquidate the bank.
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