Rule 4:56-2.Order to show cause to approve plan; service

Last amended September 1, 1994 · Current through June 18, 2026 · Last verified July 7, 2026

In one sentenceRule 4:56-2 has the court order depositors, creditors, and stockholders of a bank to show cause why a reorganization plan shouldn't be approved, served by mail and, for a represented class, by newspaper publication as well, with the resulting judgment binding on everyone so represented.

Full Text of Rule 4:56-2

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Upon the filing of the complaint, the court shall make an order returnable in not less than 14 days after its service, directing the depositors, other creditors and stockholders of the bank, and the Commissioner, if not the plaintiff, to show cause why the proposed plan or such modified plan as may be prepared under the direction of the court, should not be approved. Within one week after the entry of the order a copy thereof, together with a copy of the proposed plan, shall be mailed to each depositor, other creditor, and stockholder at the address appearing in the bank’s records and to the Commissioner, if not the plaintiff. If, however, the class of stockholders or other class appears in the action by representation pursuant to R. 4:32, in addition to such service on the representatives, the order or a summary thereof approved by the court shall be printed once at least 10 days before the return day in a newspaper generally circulated in the municipality in which the bank has its principal office. The judgment of the court shall then be binding upon the persons so represented.

End

Amendment History

New Jersey publishes each rule’s amendment record in a “History” note beneath the rule. It is reproduced verbatim below; the “R.R.” citations refer to the former Revised Rules numbering the current rules replaced.

Source-R.R. 4:71-2, 4:71-3; amended July 13, 1994 to be effective September 1, 1994.

Plain-English Summary

Once a bank reorganization complaint is filed, the court sets a return date at least 14 days after service and directs the bank's depositors, other creditors, and stockholders — and the Commissioner, if not already the plaintiff — to show cause why the plan shouldn't be approved. Within a week, a copy of the order and the proposed plan go out by mail to each of them at the address in the bank's own records.

Where stockholders or another class appear only through a class representative under Rule 4:32, the order also has to run, at least 10 days before the return date, in a newspaper serving the bank's home municipality — and once that happens, the court's judgment binds everyone in that represented class.

Frequently Asked Questions

How are depositors and stockholders notified of a bank reorganization plan?

By mail, within one week of the order's entry, to the address in the bank's own records.

Is a class of stockholders bound by a reorganization judgment even without individual notice?

Yes, if the class appears through a representative under Rule 4:32 and the order runs in a newspaper serving the bank's home municipality at least 10 days before the return date.

Source & verification. The rule text and amendment history are reproduced verbatim from the official New Jersey Rules of Court (N.J. Ct. R. 4:56-2). Prescribed by the Supreme Court of New Jersey (N.J. Const. art. VI, § 2, ¶ 3). The plain-English summary is original and written by us. Last verified July 7, 2026. · Official source

Also known as: bank reorganization order to show causenotice to depositors and stockholders