§ 3-702
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/md/financial-institutions/3-702A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§3–702.
(a)Any bank may, as provided in this subtitle:
(1)Consolidate with one or more other banks to form a new consolidated bank;
(2)Merge into another bank or have one or more other banks merged into it; or
(3)Transfer its assets to another bank.
(b)If the successor will be a commercial bank:
(1)The consolidation, merger, or transfer of assets shall be made in accordance with the provisions of this subtitle; and
(2)If one of the constituent banks is a national banking association or a federally chartered savings bank or savings and loan association, federal law governs its actions and the rights of its stockholders.
(c)If the successor will be a national banking association or a federally chartered savings bank or savings and loan association:
(1)Federal law governs:
(i)The actions of a constituent bank;
(ii)The rights of its stockholders; and
(iii)The effect of the consolidation, merger, or transfer of assets on its rights, franchises, interests, and fiduciary duties; and
(2)Except for this section and § 3-710 of this subtitle, the other provisions of this subtitle do not apply to the consolidation, merger, or transfer of assets.
(d)If one of the constituent banks is an other-state bank:
(1)Maryland law governs:
(i)The actions of the banking institution;
(ii)The rights of its stockholders; and
(iii)The effect of the consolidation, merger, or transfer of assets on its rights, franchises, interests, and fiduciary duties; and
(2)The law of the other state governs:
(i)The actions of the other-state bank;
(ii)The rights of its stockholders; and
(iii)The effect of the consolidation, merger, or transfer of assets on its rights, franchises, interests, and fiduciary duties.