Page:United States Statutes at Large Volume 56 Part 1.djvu/820

 PUBLIC LAWS-CH. 610 -OCT. 16, 1942 Requisite findings. Designated assents. Ante, p. 788. Acceptance of plan. Otherrequirements. Ante, p. 788. Proviso. Scrutiny of facts. 41 Stat. 494. 49U.S.C. 20a. Necessary corporate action. Petitioner not barred from discharge as bankrupt. Full disclosure of expenses. Other conditions. Ante, p. 791; post, p. 794. "ARTICLE V-PROCEEDINGS SUBSEQUENT TO APPROVAL OF PETITION "SEC. 725. If the special court shall find- "(1) that, at the time of the filing of said petition as provided in article III hereof, the proposed plan of adjustment had been assented to by not less than two-thirds of the aggregate amount of all claims of the petitioner affected by such plan, including at least a majority of the aggregate amount of claims of each such class; "(2) that the plan of adjustment as submitted or as modified by the court has been accepted as submitted or, if modified, then as modified by or on behalf of creditors affected by such plan hold- ing more than three-fourths of the aggregate amount of the claims affected by said plan, including at least three-fifths of the aggre- gate amount of the claims of each affected class; "(3) that the plan meets the requirements of clause (c), and the petitioner meets the requirements of clauses (a) and (b) of subparagraph (2) of the first sentence of section 710, and that the plan is fair and equitable as an adjustment and as such will: (a) afford due recognition to the rights of each class of creditors and stockholders and fair consideration to each class adversely affected and (b) will conform to the law of the land regarding the participation of the various classes of creditors and stock- holders: Provided,That in making the findings required by this clause (3), the court shall scrutinize the facts independently of the extent of acceptances of such plan, and of any lack of oppo- sition thereto, and of the fact that the Commission, under sec- tion 20a of the Interstate Commerce Act, has authorized the issuance or modification of securities as proposed by such plan, and of the fact that the Commission has made such or similar findings; "(4) that all corporate action required to authorize the issu- ance or modification of securities pursuant to such plan shall have been duly taken either before or since the enactment of this chapter; "(5) that the petitioner has not, in connection with said plan or the effectuation thereof, done any act or failed to perform any duty which act or failure would be a bar to the discharge of a bankrupt, and that the plan and the acceptance thereof are in good faith and have not been nade or procured by any means, pronises, or acts forbidden by this Act; "(6) that, after hearings for the purpose, all amounts or con- siderations, directly or indirectly paid or to be paid by or for the petitioner for expenses, fees, reimbursement, or compensa- tion of any character whatsoever incurred in connection with the proceeding and plan, or preliminary thereto or in aid thereof, together with all the facts and circumstances relating to the incurring thereof, have been fully disclosed to the court so far as such amounts or considerations can be ascertained at the time of such hearings, that all such amounts or considerations are fair and reasonable, and to the extent that any such amounts or con- siderations are not then ascertainable, the same are to be so dis- closed to the court when ascertained, and are to be subject to approval by the special court as fair and reasonable, and except with such approval no amounts or considerations covered by this clause (6) shall be paid; and- "(7) that the provisions of section 722, 736, and 737 of this chapter have been complied with. [56 STAT.

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