The comptroller of banks of the State of Mississippi is authorized to reopen any closed bank, with the approval of the chancery court of the county in which the bank is situated, or of the chancellor thereof in vacation, when at least three-fourths of the general depositors and creditors therein holding unsecured deposits, or any number of the general depositors and creditors therein, provided they own at least three-fourths of the unsecured deposits in or claims against such bank, agree to the reopening thereof and sign what is commonly termed a “freezing-of-deposits” agreement, under which they agree to accept repayment of their deposits and claims in deferred installments, for the full amount thereof or in reduced amounts, with or without interest, the period over which the deposits and claims are to be repaid and the rate of payment, together with the interest rate, if any, to be determined by the comptroller of banks, if the comptroller is convinced that such bank as reopened will be in a solvent condition and can repay the depositors and creditors the amounts of their deposits and claims in accordance with the terms of the agreement for the repayment of same.

Before any such bank shall be reopened, the entire plan for the reopening of the same, and all material facts in connection there with, shall be submitted by the comptroller to the chancery court of the county in which the bank is situated, or the chancellor in vacation, by proper petition, duly verified, such petition to contain a statement of the assets and liabilities of the bank and such other information as may be necessary to convey to the court or chancellor the true facts with reference to the condition of such bank, and a decree of the court or chancellor in vacation obtained approving the plan agreed upon and submitted by the comptroller for the reopening of such bank and authorizing the same to be reopened. The hearing of such petition shall be had at such time and place as shall be fixed by the court or chancellor, after ten days’ notice is given of such hearing by publication in some newspaper having a general circulation in the county in which the closed bank is located. The filing of a petition by any closed bank submitted to the jurisdiction of the chancery court of the county of its domicile and publishing of notice to creditors as otherwise provided by law shall vest in said court jurisdiction over all of the assets of said bank and of its creditors and empower it to so act hereunder.

When any closed bank has been reopened as herein provided, the general depositors and creditors thereof who have not expressly agreed to accept repayment of their deposits and claims in accordance with the freezing-of-deposits plan shall be bound to accept repayment of their deposits and claims according to the terms of the decree of the court or chancellor in vacation and on the same basis and at the same rate as those general depositors and creditors who have signed the freezing-of-deposits agreement, except that this paragraph shall not apply to deposits of public moneys or to depositors and creditors holding preferred claims, or secured claims, nor to correspondent banks holding bills payable of the closed bank to the extent that same are adequately secured by the collateral held therefor.

Proper provision shall be made in the plan for the reopening of such bank to pay public depositors, depositors, and creditors holding preferred and secured claims and correspondent banks holding bills payable to the extent which they are adequately secured by collateral held, on terms acceptable to them, but any arrangement so made shall not operate prejudicially to the rights of the general depositors and creditors of the bank.

This section shall not be construed to give the comptroller the right to diminish the assets of a closed bank to the prejudice of the depositors and creditors thereof, and any assets that may be charged out as doubtful or as losses and not carried into the reopened bank as an asset, shall be held by the reopened bank in trust for payment pro rata of such parts of the claims of the depositors and creditors as under the decree authorizing the reopening of the bank are provided shall not be a charge against the assets of the reopened bank. The reopened bank shall be accountable to the said chancery court for the proper handling of such assets not taken into the reopened bank and the payment of the proceeds thereof to the creditors entitled thereto; but without restriction upon the public in dealing with the reopened bank relative thereto nor obligation upon the public so dealing to see that such bank properly accounts therefor.

This section is to be liberally construed as an exercise of the police power of the state as a sovereign to legislate with reference to banks as public utilities to promote the public welfare, and shall apply to all closed banks whether heretofore, now or hereafter closed.