§ 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.

HISTORY: 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.