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Can you summarize 34 SCCL Chapter 7?
Banking, Financial Institutions and Money > REORGANIZATION OF INSOLVENT BANKS
Short Summary
The provided legal document pertains to the reorganization and reopening of insolvent banks in South Carolina. It states that any bank placed in the hands of the State Board of Bank Control, except for banks that have been adjudged insolvent in court, may reopen and operate as a going banking institution with the consent of two-thirds of the depositors in number and amount holding deposits in excess of ten dollars. These depositors must agree in writing to an extension of payment of unsecured creditors for a period not exceeding five years. The agreements are binding upon all depositors, including those represented by executors, trustees, administrators, or committees for persons non compos mentis. Before a meeting to determine a plan of reorganization can be authorized, it must be ensured that at least fifty percent of depositors, unsecured creditors, and stockholders are present or duly represented. If two-thirds in number and amount of all depositors, unsecured creditors, and stockholders present at the meeting agree upon a plan of reorganization and recommend it to the resident or presiding judge of the circuit, the court may approve the plan if it is satisfied that it will be in the best interest of all parties. No appeal is allowed from such an order. A notice of the meeting must be given to each depositor, creditor, and stockholder at least ten days prior to the meeting. The court’s order will specify the manner of giving such notice and other provisions for the meeting. All depositors, creditors, and stockholders are deemed parties to the action or proceeding in which the adjudication of insolvency is made, and they are bound by the judgment order. A reorganization plan may authorize the reduction, postponement, or installment payment of claims of depositors and unsecured creditors, treating all claims of the same class alike. When a banking institution has been adjudged insolvent, the court may approve a plan of reorganization for its reopening upon compliance with the specified procedure and requirements. The document does not mention any exemptions or penalties.
Whom does it apply to?
Banks placed in the hands of the State Board of Bank Control, depositors, unsecured creditors, and stockholders
What does it govern?
Reorganization and reopening of insolvent banks
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
South Carolina