§412:2-410  Supervised reorganization.  (a) The commissioner and, with the commissioner's written approval, any conservatorappointed pursuant to this part, may reorganize a Hawaii financial institutionin conservatorship, provided that:

(1)  The reorganization will be accomplished under aplan which the commissioner finds is fair and equitable to all depositors,beneficiaries, creditors, and shareholders or members, and is in the publicinterest;

(2)  The commissioner has approved of the plan inwriting, subject to such conditions, restrictions, and limitations as thecommissioner may deem appropriate;

(3)  Notice of the plan has been given to alldepositors (except depositors whose deposits have been paid in full by afederal deposit insurer or assumed by a federally insured financialinstitution), creditors, and shareholders or members in a form and mannersatisfactory to the commissioner; and

(4)  After such notice, the reorganization plan shallhave been consented to in writing by:

(A)  Depositors representing at leastseventy-five per cent of the amount of the financial institution's totaldeposits which will not be satisfied in full under the plan of reorganization;

(B)  Creditors representing at leastseventy-five per cent of the total amount of the claims of general creditors ofthe financial institution which will not be satisfied in full under the plan ofreorganization;

(C)  Subordinated creditors representing atleast seventy-five per cent of the total amount of the claims of each class ofdebt subordinated by law or by contract to the claims of general creditorswhich will not be satisfied in full under the plan of reorganization; and

(D)  Shareholders holding at least two-thirdsof each class of the capital stock of the financial institution.

(b)  If the foregoing requirements have beenmet, the commissioner shall issue a certificate to the Hawaii financialinstitution indicating that the reorganization plan, a copy of which shall beattached to the certificate, has been properly approved, and setting forth anyconditions that the commissioner deems appropriate, as well as the effectivedate of the reorganization.

(c)  Once any reorganization has becomeeffective as provided herein, it shall be binding upon all depositors,creditors, and shareholders or members of the Hawaii financial institution,whether or not they have consented to the plan of reorganization, and allclaims of such persons shall be treated as if they had consented to the plan ofreorganization.

(d)  When the reorganization becomes effective,all books, records, and assets of the Hawaii financial institution shall bedisposed of in accordance with the plan and the affairs of the financialinstitution shall be conducted by its board of directors in the manner providedby the plan and under any conditions, restrictions, and limitations prescribedby the commissioner. [L 1993, c 350, pt of §1]