2007 California Financial Code Article 5. Reorganization

CA Codes (fin:3200-3204)

3200.  Any bank, including a bank of which the commissioner has
taken possession pursuant to Article 1 hereof or a bank for which a
conservator has been appointed pursuant to Article 4 hereof may be
reorganized under a plan which requires the consent:
   (a) Of depositors and other creditors of such bank representing at
least 75 percent in amount of its total deposits and other
liabilities as shown by the books of the bank, excluding deposits and
other liabilities which are to be satisfied in full under the
provisions of the plan; or
   (b) Of stockholders owning at least two-thirds of the outstanding
capital stock as shown by the books of the bank; or
   (c) Of depositors and other creditors of such bank representing at
least 75 percent in amount of its total deposits and other
liabilities as shown by the books of the bank, excluding deposits and
other liabilities which are to be satisfied in full under the
provisions of the plan, and of stockholders owning at least
two-thirds of its outstanding capital stock as shown by the books of
the bank.



3201.  All depositors, creditors, stockholders, and other interested
persons shall be given notice of any proposed plan of reorganization
in such manner and at such times as the commissioner directs.



3202.  No plan of reorganization shall become effective until the
commissioner finds that the plan is fair and equitable to all
depositors, creditors, and stockholders and is in the public interest
and until the commissioner approves the same in writing, subject to
such conditions, restrictions, and limitations as he or she may
prescribe.



3203.  No creditor having security for the payment of his claim
shall be affected in his right to enforce such security by the
provisions of any plan for the reorganization of any such bank.  Any
plan of reorganization involving the reduction of claims of
creditors, as to secured creditors, shall apply to the amounts of
their claims against any such bank after the security has been
realized upon.



3204.  When any plan of reorganization becomes effective all books,
records, and assets of such bank shall be disposed of in accordance
with the provisions of the plan and the affairs of the bank shall be
conducted by its board in the manner provided by the plan and under
the conditions, restrictions, and limitations which may have been
prescribed by the commissioner.  When any plan of reorganization
adopted and approved as herein provided becomes effective all
depositors and other creditors and stockholders of the bank, whether
or not they have consented to the 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 the plan of reorganization.