Section 3-702 - Scope of subtitle. - Maryland Statutes

§ 3-702. Scope of subtitle.
 

(a)  General rule.- 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)  Successor commercial bank.- 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)  Successor national banking association.- 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)  Other-state bank as constituent bank.- 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. 
 

[An. Code 1957, art. 11, §§ 109, 110; 1980, ch. 33, § 2; ch. 807, § 1; 1985, 2nd Sp. Sess., ch. 3; 1994, ch. 72; 1995, ch. 213, § 2; 1996, ch. 10, § 1.]