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Can you summarize IC 28-3-1?
LIQUIDATION, REORGANIZATION, AND MERGER > Liquidation of Banks
Short Summary
The provided legal document content pertains to the liquidation of banks in the state of Indiana. According to the Indiana Code, when the directors of a bank wish to liquidate the bank, they must file a petition with the department of financial institutions for authorization. If two-thirds of the capital stock owners vote in favor of the liquidation, the department will enter an order directing the liquidation of the bank. The officers of the bank are then required to proceed with the liquidation, starting with the payment of all depositors in full. Once all depositors have been paid, a committee appointed by the capital stock holders is responsible for liquidating and paying all other liabilities. The remaining assets of the bank are distributed to the owners of its capital stock in proportion to their ownership. However, stockholders who did not approve of the liquidation have the right to demand the full par value of their shares within six months from the time of the filing of the petition. In such cases, their shares are cancelled, and they are not entitled to any further share in the distribution of the bank’s assets. Once the affairs of the bank have been completely liquidated, its officers must surrender its certificate of incorporation to the secretary of state, who will cancel it. The chapter in the Indiana Code governing the liquidation of banks is an alternative method for the liquidation of banks and does not repeal any other law providing for the liquidation of banks.
Whom does it apply to?
Directors of banks organized under the laws of Indiana, stockholders of banks organized under the laws of Indiana
What does it govern?
Liquidation of banks
What are exemptions?
None mentioned
What are the Penalties?
None mentioned
Jurisdiction
Indiana