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PAVE WAY TO REOPEN BANK AT CALEDONIA GRAND RAPIDS, Mich., May 21 (AP).—Receivership of the State bank of Caledonia, which closed its doors several months ago, was terminated today by order of Circuit Judge William B. Brown. Directors of the bank are to meet May 23 to affirm directors, opening the way for re-opening of the institution under a reorganization program which has been approved by 96.3 per cent of the depositors.
CLOSED BANKS BEING OPENED 11 in State Are Aided by New Statute Nearly half of the closed state anks of Michigan are attempting under legislation encted in the recent special session, was revealed Wednesday by Rudolph E. Reichert. state bank commissioner, while in Detroit. Forty-one of the 93 insolvent intitutions are signing up depositors o moratorium agreements, limitng the amount of withdrawals in the next five years Two banks have been reopened and five others have applications to end their reeiverships pending in the courts. Three others are on the verge of such applications. Hearings Are Scheduled The Bridgewater Bank, first to Peopen, had begun reorganization plans prior to the special session and completed them under the new act. The State Bank of Caledonia opened Tuesday under the new 85 cent moratorium agreement. Hearings have been set in the case the Fenton Bank for May 28, the Roscommon Bank for May 31 Caro Bank for June Coloma Bank for June 9 and Milford Bank for June 10. Bank examiners this week are checking the condition of banks in Flat Rock and Monroe, and if satisfactory showing is made, reorganization applications will folOn Saturday similar check will be begun with a closed Bay City bank. The legislation, it was explained by Commissioner Reichert and sistant Attorney General Sid A. Erwin, who is helping in reorganization plans, has made possible for wavering institutions to re-establish Court Actions Avoided One of its provisions is for a partial or often of one of the bank's own executives. About dozen of these institutions whose involvement was minor took advantage of the law at the outset in submitting to such receiverships. This cleared the atmosphere of impending problems and the involved will be among the first to resume. In only one case so far has a bank receiver made use of the new authorization to pledge assets for Reconstruction Fund loans. The application in that case-a Benton Harbor institution-wa approved, opening up the possibility of speeding up dividend disbursements.