Section 5-611 - Plan of reorganization - Proposal. - Maryland Statutes

§ 5-611. Plan of reorganization - Proposal.
 

(a)  Authority to propose plan.- The board of directors or the depositors representing not less than 25 percent of the deposit liability of any banking institution that is in the possession of a receiver may: 

(1) Propose a plan of reorganization for the reorganization and reopening of the banking institution or for the establishment of a new State banking institution, national banking association, or other corporation that they consider necessary; and 

(2) Choose a committee to represent them to carry out the plan. 

(b)  Substance of plan.-  

(1) The plan for reorganization of a commercial bank may provide for: 

(i) The voluntary surrender or exchange of all or part of the outstanding capital stock of the commercial bank and the resale of that stock; 

(ii) The sale of additional authorized stock; 

(iii) The voluntary subscription or contribution by depositors and creditors to a guaranty fund; and 

(iv) Any other protection for the depositors and creditors. 

(2) The plan for reorganization of a savings bank may provide only for the voluntary subscription or contribution by depositors and creditors to a guaranty fund. 
 

[An. Code 1957, art. 11, §§ 14, 16; 1980, ch. 33, § 2.]