§ 5-612. Plan of reorganization -- Filing for approval; notice to creditors; objections to plan; withdrawal

   (a) Filing with Commissioner. -- The plan of reorganization shall be filed with the Commissioner.

(b) Consideration by Commissioner. --

   (1) The Commissioner may approve or disapprove the plan without a hearing.

   (2) If the Commissioner is satisfied that the proposed plan is in the best interests of the depositors and creditors of the banking institution, the Commissioner shall:

      (i) Approve the plan; and

      (ii) Publish a notice of the approval in the Maryland Register as provided in the State Documents Law.

   (3) The provisions of § 3-209, 3-211, and 3-301 of this article, to the extent that they require the capital stock and surplus of a commercial bank to be paid in full and in money, do not apply to the reorganization and reopening of a banking institution or the establishment of a new banking institution under this section.

(c) Notice from proponents. --

   (1) Within 5 days after approval by the Commissioner, the banking institution or the proponents of the plan shall send a notice to each depositor or other creditor at the address shown on the books of the institution.

   (2) The notice shall:

      (i) State that the plan has been filed with and is open to inspection at the office of the Commissioner; and

      (ii) Include a summary of the important provisions of the plan.

   (3) Failure to notify any party in interest does not affect the validity of the plan or its implementation.

   (4) A certificate of the banking institution's president or of the proponents of the plan that the notice has been given is prima facie proof of compliance with this subsection.

(d) Judicial determination of interests. --

   (1) Within 30 days after the first publication of the Commissioner's notice, any party in interest who did not approve the plan may apply to the court for the value of that party's interest.

   (2) Unless depositors and other unsecured creditors holding one third or more of the dollar amount of all claims apply for the value of their interests, the court may pass an order approving the plan and setting the terms and conditions for termination of receivership.

   (3) If sufficient creditors apply, the court shall:

      (i) Determine the present cash value of the nonapproving party's interest on the basis of a judicial liquidation of the banking institution and order payment to the party of that amount, in money or in kind; or

      (ii) Apportion to the nonapproving party a distributive share in the assets of the banking institution.

   (4) If the court apportions the assets of the banking institution:

      (i) Assets divisible in kind shall be apportioned between the institution and the nonapproving parties; and

      (ii) Assets not divisible in kind shall be apportioned by allotting to the nonapproving parties shares of stock, securities, or certificates of interest that are issued by a corporation or trustee and that represent the nonapproving parties' interests in the indivisible assets, and the entire amount allotted to the nonapproving parties shall be delivered and paid to the receiver for liquidation for their benefit.

(e) Withdrawal of plan. -- Within 10 days after the final decision of the court, the proponents of the plan of reorganization may abandon it.

HISTORY: An. Code 1957, art. 11, § 14, 16; 1980, ch. 33, § 2; 1981, ch. 617; 1996, ch. 326, § 2.