CONSTITUTIONAL LAW - BANK REORGANIZATION LEGISLATION - COMPOSITION WITH DEPOSITORS AND OTHER CREDITORS

Authors

Maurice S. Culp, University of Michigan Law School

Abstract

Twenty States and the federal government now have laws permitting the reorganization and reopening of insolvent or failing banks. The usual statute provides for the reorganization of a bank upon some plan approved by a large majority of the general creditors of the institution; the plan must also have the approval of state banking officials and of a court of general jurisdiction, although the last is by no means a universal requirement. The reorganization, when approved, becomes binding upon all depositors and general creditors of the bank regardless of consent. By the terms of a few statutes, non-assenting creditors are entitled to have a proportionate share of the assets set aside for liquidation under the ordinary procedure.

Recommended Citation

Maurice S. Culp, CONSTITUTIONAL LAW - BANK REORGANIZATION LEGISLATION - COMPOSITION WITH DEPOSITORS AND OTHER CREDITORS, 32 Mich. L. Rev. 221 (1933).
Available at: https://repository.law.umich.edu/mlr/vol32/iss2/4