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§ 1803. Election for voluntary dissolution after commencement of business

Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 7 P.S. Banks and Banking

Purdon's Pennsylvania Statutes and Consolidated Statutes
Title 7 P.S. Banks and Banking (Refs & Annos)
Banking Code of 1965 (Refs & Annos)
Chapter 18. Voluntary and Involuntary Dissolution; Distribution of Assets upon Insolvency (Refs & Annos)
7 P.S. § 1803
§ 1803. Election for voluntary dissolution after commencement of business
(a) Adoption and approval--An institution which has commenced business may elect to dissolve voluntarily upon:
(i) adoption by the vote required of its shareholders under subsection (b) of this section of:
(A) a plan of dissolution involving both a provision for assumption of its liabilities by another institution or national bank and a provision for continuance of its business if such assumption of its liabilities is not effected, or
(B) any other plan of dissolution providing for full payment of its liabilities, and
(ii) approval by the department of the plan of dissolution after application for approval thereof in a manner prescribed by the department.
(b) Required vote--Adoption of the plan by the shareholders of the institution shall require the affirmative vote of the shareholders entitled to cast at least two-thirds of the votes which all shareholders are entitled to cast on the plan and, if any class of shareholders is entitled to vote on the plan as a class, of the holders of at least two-thirds of the outstanding shares of such class, at a meeting held upon not less than ten days’ notice to all shareholders.
(c) Approval by department--Upon receipt of an application for approval of a plan of dissolution, the department shall conduct such investigation as it may deem necessary to determine whether:
(i) the plan satisfies the requirements of this act,
(ii) the plan adequately protects the interests of depositors, other creditors and shareholders, and
(iii) if the plan involves an assumption of liabilities by another institution, such assumption would be consistent with adequate and sound banking and in the public interest on the basis of factors substantially similar to those set forth in subsection 1604(a)(iv).1 Within sixty days after receipt of the application, the department shall approve or disapprove the application on the basis of its investigation and shall immediately give to the institution written notice of its decision, and in the event of disapproval, a statement in detail of the reasons for its decision.

Credits

1965, Nov. 30, P.L. 847, No. 356, § 1803. Affected 1971, June 3, P.L. 145, No. 6, § 1 (§ 509(a)(172)).

Footnotes

7 P.S. § 1604.
7 P.S. § 1803, PA ST 7 P.S. § 1803
Current through 2022 Regular Session Act 121. Some statute sections may be more current, see credits for details.
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