N.Y. Banking Law § 610: Resumption of business in accordance with plan of reorganization

§ 610. Resumption of business in accordance with plan of

reorganization. The superintendent, in his discretion, may permit a

corporation of which he has taken possession or which is operating on a

restricted basis pursuant to regulations promulgated by duly constituted

authority, to resume business in accordance with a plan of

reorganization under which depositors and other creditors will receive

less than the full amount of their claims and/or in partial payment

thereof will receive certificates of beneficial interest in certain

segregated assets and/or stock of such corporation, and under which

stockholders will contribute their shares of capital stock and/or money

in lieu of assessments upon such stock. In any such case in which the

superintendent permits resumption of business pursuant to such a plan of

reorganization, all depositors and creditors and stockholders of any

such corporation, whether or not they shall have consented to such plan

of reorganization, shall be fully and in all respects subject to and

bound by its provisions, and claims of all depositors and other

creditors shall be treated as if they had consented to such plan;

provided, however, that the superintendent shall not permit a

corporation to resume business in accordance with such a plan of

reorganization unless it has been shown to his satisfaction that (1)

such plan is fair and equitable to all depositors and other creditors

and stockholders and is in the public interest and (2) that depositors

and other creditors, representing at least eighty per centum in amount

of its total deposits and other liabilities, exclusive of the claims of

depositors and other creditors which will be satisfied in full under the

plan of reorganization, and stockholders owning at least two-thirds of

its outstanding capital stock, as shown by the books of the corporation,

have consented in writing to such plan; provided further, that

permission to resume business under any such plan of reorganization

shall be granted by the superintendent only upon an order of the supreme

court in and for the county in which the principal office of such

corporation is located. The application for an order of the supreme

court pursuant to this section shall be made upon an order to show cause

which shall provide that notice thereof, of a kind which the court deems

to be adequate and proper, be given to depositors, creditors and

stockholders of such corporation.