bank reorganization

bank reorganization
Broadly, a change in the corporate structure of a bank. In a narrower but usual sense of the term, the rehabilitation of a failing or financially embarrassed bank by freezing the assets through the suspension of payment to depositors and creditors, followed by the adoption of a plan of reorganization affecting the rights of depositors, creditors, and stockholders whereunder the bank reopens for business as a bank. 10 Am J2d Banks 8 821

Ballentine's law dictionary. . 1998.

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