§ 23-38-306 - Loans from federal agencies -- Court approval. - Arkansas Statutes

23-38-306. Loans from federal agencies -- Court approval.

(a) The right of the receiver to procure and consummate any loans as provided in 23-38-305 shall be subject to the approval of the chancery court having jurisdiction over the administration of the affairs of the insolvent building and loan association on behalf of which the loan is sought.

(b) (1) When, in any instance, the receiver desires to apply for a loan on behalf of an insolvent building and loan association in his custody, he shall forthwith cause a notice to be published for one (1) insertion in some newspaper published and having a general circulation in the county in which the building and loan association is located or, if no such newspaper is published in the county, in a newspaper published in Little Rock, Arkansas, and having a statewide circulation. This notice shall be upon the following form:

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(2) The date of hearing specified in the notice shall be at least ten (10) days subsequent to the publication of the notice.

(c) (1) The receiver's petition for authority to procure the loan must be filed in the office of the clerk of the court at least three (3) days before the date set for the presentation of the petition. If, on the date designated in the notice, the petition has not been on file with the clerk of the court for a full three (3) days, the court shall order an adjournment or adjournments which will ensure that the petition lies in the office of the clerk of the court for three (3) days before its presentation.

(2) The petition to be filed and presented by the receiver as aforesaid shall set forth the terms of the proposed loan and contain the receiver's recommendations.

(d) (1) If any exceptions to the proposed loan, or the terms of the loan, shall be filed by authorized exceptors at or before the hearing of the petition, the chancery court shall dispose of them as promptly as possible, making any orders in respect thereto which it deems proper.

(2) If no written exceptions are filed on or before the hearing, the court shall pass upon the petition without delay and shall approve it if, in the opinion of the court, approval is deemed proper.

(e) An order of approval shall be subject to appeal, which must be taken in twenty (20) days, by any persons who may have filed written exceptions on or prior to the hearing, but the order shall not be subject to appeal or review on the prayer of any person who did not file written exceptions to the petition on or before the hearing.

(f) In exercising its jurisdiction, the chancery court may hear petitions and make orders in vacation as well as in term time.

(g) All presumptions usually indulged in favor of the judgments of courts of superior jurisdiction shall be indulged in favor of the validity of a judgment approving a loan application under this section.

(h) All appeals under this section will be advanced as a matter of public interest.