Md. Code, Financial Institutions § 3-702
This is the official text of Md. Code, Financial Institutions § 3-702, part of Maryland’s Code, Financial Institutions — regulates banks and lenders.
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§3–702.
Official statutory text
(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.
(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.
Status: in_force · Read it on the official government site
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