1157.24 Rehabilitation or reorganization by order of superintendent.

In lieu of taking possession of the business and property of a domestic building and loan association or ordering such association to liquidate its business and property, the superintendent of building and loan associations may, for any of the causes specified in section 1157.01 of the Revised Code if he finds that the affairs of such association may be put in sound and safe condition by adjusting or sustaining the capital structure of the association, order such association to rehabilitate or reorganize as provided in this section and in sections 1157.25 and 1151.61 of the Revised Code. The issuance of such an order shall suspend the power of the association to receive deposits, except as provided in this section; to pay withdrawals of stock or of stock credits; to declare or pay dividends; and to make loans. The superintendent may impose such conditions and restrictions upon the powers of such association to receive stock subscriptions, to issue or sell stock, and to receive stock credits as he may prescribe in such order or by additional orders issued during the period of rehabilitation or reorganization. If the association elects to receive deposits after such order is issued, the superintendent shall appoint a trustee to receive, account for, and preserve such deposits for the benefit of such depositors in such manner as may be approved by the superintendent.

The board of directors of such association shall, within ninety days after receipt of such order, submit to the superintendent for his approval a plan for the rehabilitation of its capital and reserve, or a plan of reorganization in the manner provided for in section 1151.61 of the Revised Code. Such plan shall be so devised as reasonably to insure equality of interest between prior shareholders of each class and those who may subsequently become shareholders. The basis of such rehabilitation or reorganization may be either the findings of the superintendent’s examination, or an appraisal of any assets of the association which is made at the expense of the association by competent persons approved by the superintendent and made under rules prescribed by the superintendent, as the board may elect, unless the superintendent, in the order of rehabilitation or reorganization, or by order issued during the period of rehabilitation or reorganization, specifies which of said two bases shall be employed.

Effective Date: 10-01-1953