§ 28-6.1-15-7 — Notice to depositors; objections; judicial review

Indiana § 28-6.1-15-7

• Jurisdiction: Indiana
• Art. 6.1: SAVINGS BANKS
• Ch. 15: Conversion of a Savings Bank to a Bank or Trust

Text

(a) After the department has given approval
to the resolution of conversion and has returned the resolution of
conversion to the savings bank, the savings bank shall give notice of
the proposed conversion, by mail, to each depositor of record as of the
date of the resolution of conversion. Notice to a depositor shall be sent
to the address of the depositor as shown by the records of the savings
bank. Notice shall also be given by at least ten (10) consecutive days
of publication in a newspaper of general circulation published in the
county in which the savings bank is located.
(b) After notice has been given under this section, a copy of the
resolution of conversion shall be submitted to the circuit court, superior
court, or probate court with jurisdiction in the county in which the
savings bank is located.
(c) A depositor of the savings bank aggrieved by the proposed
conversion may, not more than twenty (20) days after submission of the
resolution of conversion with the court file in the court a verified
statement of objection to the proposed conversion. The matter shall be
docketed upon the books of the court, and entitled "In the Matter of the
Conversion of ___________ Savings Bank to __________" (inserting
the names of the savings bank and the successor bank or trust
company). The nature of an objection to the conversion is limited to the
unfairness of the proposed conversion relative to the rights and
interests of the objecting depositor. Without filing pleadings, the
savings bank shall be considered to deny the objections.
(d) After the twenty (20) day period for filing objections has
expired, the court shall proceed as soon as possible to hear the evidence
and determine the fairness of the proposed conversion relative to the
individual rights and interests of all objecting depositors. The objecting
depositors have the burden of proof.
(e) If the court finds that the proposed conversion is fair with respect
to the rights and interests of the objecting depositors, the court shall
enter an order:
(1) approving the conversion, subject only to the approval by the
secretary of state of the articles of incorporation of the proposed
bank or trust company; and
(2) assessing the costs of the proceeding against the objectors.
(f) If the court finds that the proposed conversion is not fair with
respect to the rights and interests of the objecting depositors, the court
shall enter an order:
(1) enjoining the conversion; and
(2) assessing the costs of the proceeding against the savings bank.

Legislative History

As added by P.L.42-1993, SEC.72. Amended by P.L.84-2016, SEC.126.