Section 28-6.2-7-2 - Liquidation of mutual holding company; filing federal bankruptcy court petition(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.
As added by P.L. 122-1994, SEC.101.