§ 28-6.2-7-2 — Liquidation of mutual holding company; filing federal bankruptcy court petition

Indiana § 28-6.2-7-2

• Jurisdiction: Indiana
• Art. 6.2: MUTUAL SAVINGS BANK HOLDING
• Ch. 7: Mutual Holding Company Conversion and Liquidation

Text

(a) The department may file a petition with the
federal bankruptcy court requesting the liquidation of a mutual holding
company under 12 U.S.C. 1467(a)(o)(9) and Title 11, United States
Code, upon:
(1) the default of the resulting savings bank, any acquiree savings
bank, or any subsidiary savings bank of the mutual holding
company that was in the mutual form when acquired;
(2) the default of the mutual holding company; or
(3) foreclosure on any pledge by the mutual holding company of
subsidiary savings bank stock.
(b) Except as provided in subsection (a), the net proceeds of any
liquidation of a mutual holding company shall be transferred to the
members of the mutual holding company under the articles of
reorganization of the mutual holding company.
(c) If:
(1) the FDIC incurs a loss from a default of any savings bank
subsidiary of a mutual holding company; and
(2) that mutual holding company is liquidated under subsection
(a);
the FDIC shall succeed to the membership interests of the depositors
of the savings bank, to the extent of the FDIC's loss.

Legislative History

As added by P.L.122-1994, SEC.101.