Sec. 2. (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.
‹ Prev All Indiana sections Next ›
Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.