6.1-100.1 - (Repealed effective October 1, 2010) Merger or transfer of assets of insolvent bank.
§ 6.1-100.1. (Repealed effective October 1, 2010) Merger or transfer ofassets of insolvent bank.
A. If the Commission shall find that any bank is insolvent, that its mergerinto another bank is desirable for the protection of its depositors and thatan emergency exists, and, if the board of directors of such insolvent bankshall approve a plan of merger of such bank into another bank, compliancewith the requirements of § 13.1-718 shall be dispensed with as to suchinsolvent bank and the approval by the Commission of such plan of mergershall be the equivalent of approval by the holders of more than two-thirds ofthe outstanding shares of such insolvent bank for all purposes of Article 12(§ 13.1-715.1 et seq.) of Chapter 9 of Title 13.1.
B. If the Commission finds that a bank is insolvent, that the acquisition ofits assets by another bank is in the best interests of its depositors andthat an emergency exists, it may, with the consent of the boards of directorsof both banks as to the terms and conditions of such transfer, including theassumption of all or certain liabilities, enter an order transferring some orall of the assets of such insolvent bank to such other bank and no compliancewith the provisions of §§ 13.1-723 and 13.1-724 shall be required, nor shall§§ 13.1-730 through 13.1-741 be applicable to such transfer.
C. In the case either of such a merger or of such a sale of assets, theCommission shall provide that prompt notice of its finding of insolvency andof the merger or sale of assets be sent to the stockholders of record of theinsolvent bank for the purpose of providing such shareholders an opportunityto challenge the finding that the bank is insolvent. The relevant books andrecords of such insolvent bank shall remain intact and be made available tosuch shareholders for a period of 30 days after such notice is sent. TheCommission's finding of insolvency shall become final if a hearing before theCommission is not requested by any such shareholder within such 30-day period.
D. If, after such hearing provided in subsection C, the Commission finds thatsuch bank was solvent, it shall rescind its order entered pursuant tosubsection A or subsection B and the merger or transfer of assets shall berescinded. But if, after such hearing, the Commission finds that such bankwas insolvent, its order shall be final.
E. [Repealed.]
(1975, c. 44; 1983, c. 507; 2005, c. 765.)