45-3-1202 - Requirements of reorganization plan.
45-3-1202. Requirements of reorganization plan.
(a) Plan of Reorganization. A plan of reorganization shall not be approved by the commissioner unless:
(1) The plan is feasible and fair to all classes of depositors, other creditors and stockholders, or members;
(2) The plan assures the removal of any director, officer, or employee responsible for any unsound or unlawful action or the existence of an impaired condition; and
(3) Any merger or consolidation provided by the plan conforms to the requirements of this chapter.
(b) Modification of Plan. Whenever, in the course of reorganization, supervening conditions render the plan unfair or its execution impractical, the commissioner may modify the plan or liquidate the association. The action shall be taken by order upon appropriate notice of opportunity to request a hearing as provided in this chapter.
[Acts 1978, ch. 708, § 5.02; T.C.A., § 45-1702.]