A. A plan may be proposed by the deputy director or by an association subject to the approval of the deputy director. If proposed by an association, the proposal shall be through its board of directors, or by the holders of accounts equal in amount to not less than fifty percent of the total accounts of the association, or by the holders of not less than a majority of the outstanding shares of guaranty capital of the association, if any.

Ask a legal question, get an answer ASAP!
Click here to chat with a lawyer about your rights.

B. The plan shall be presented by the proponents to the superior court of the county in which the principal place of business of the association is located, with a petition that the court determine the fairness of the plan and the conditions requisite to the plan becoming operative. The petition shall set forth the plan and the fact that it has been proposed or approved by the deputy director and any other facts that are deemed material to a consideration of the fairness of the plan.

C. On filing the petition, the court shall fix the time and place for hearing it, and shall direct the association to deliver to the proponents, or, in the discretion of the court, to the deputy director, a list of the names and addresses of the holders of accounts, holders of shares of guaranty capital, if any, creditors of the association, and of all other persons affected by the plan, and the association shall comply with the direction.

D. Thereafter the proponents of the plan, not less than twenty days before the date fixed for the hearing, shall mail or cause to be mailed to each of the persons shown on the list furnished pursuant to direction of the court and to all other persons affected by the plan notice of the time and place fixed by the court for the hearing and either a copy of the plan or a summary thereof. Any summary shall be prepared or approved by the deputy director. The notices shall be mailed, postage prepaid, to the respective addresses as shown on the list, or if no address is there shown, to the last known available address. The proponents of the plan shall also post notice of the time and place fixed for the hearing in three public places in the county not less than twenty days before the day fixed for the hearing and shall publish the notice at least once in a newspaper of general circulation published in the county not less than twenty nor more than thirty days prior to the day fixed for the hearing.

E. A copy of the plan shall be kept by the deputy director available for public inspection, and the deputy director shall take other steps as the deputy director deems necessary for making the plan and all notices and facts in connection therewith available to the interested parties.