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<section article="gfi" article_name="Financial Institutions" number="3-702" title_number="3" title_name="Banking Institutions -- Commercial Banks" subtitle_number="7" subtitle_name="Consolidations, Mergers, and Transfers of Assets">
  <level label="a">
    <text>Any bank may, as provided in this subtitle:</text>
    <level label="1">
      <text>Consolidate with one or more other banks to form a new consolidated bank;</text>
    </level>
    <level label="2">
      <text>Merge into another bank or have one or more other banks merged into it; or</text>
    </level>
    <level label="3">
      <text>Transfer its assets to another bank.</text>
    </level>
  </level>
  <level label="b">
    <text>If the successor will be a commercial bank:</text>
    <level label="1">
      <text>The consolidation, merger, or transfer of assets shall be made in accordance with the provisions of this subtitle; and</text>
    </level>
    <level label="2">
      <text>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.</text>
    </level>
  </level>
  <level label="c">
    <text>If the successor will be a national banking association or a federally chartered savings bank or savings and loan association:</text>
    <level label="1">
      <text>Federal law governs:</text>
      <level label="i">
        <text>The actions of a constituent bank;</text>
      </level>
      <level label="ii">
        <text>The rights of its stockholders; and</text>
      </level>
      <level label="iii">
        <text>The effect of the consolidation, merger, or transfer of assets on its rights, franchises, interests, and fiduciary duties; and</text>
      </level>
    </level>
    <level label="2">
      <text>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.</text>
    </level>
  </level>
  <level label="d">
    <text>If one of the constituent banks is an other-state bank:</text>
    <level label="1">
      <text>Maryland law governs:</text>
      <level label="i">
        <text>The actions of the banking institution;</text>
      </level>
      <level label="ii">
        <text>The rights of its stockholders; and</text>
      </level>
      <level label="iii">
        <text>The effect of the consolidation, merger, or transfer of assets on its rights, franchises, interests, and fiduciary duties; and</text>
      </level>
    </level>
    <level label="2">
      <text>The law of the other state governs:</text>
      <level label="i">
        <text>The actions of the other-state bank;</text>
      </level>
      <level label="ii">
        <text>The rights of its stockholders; and</text>
      </level>
      <level label="iii">
        <text>The effect of the consolidation, merger, or transfer of assets on its rights, franchises, interests, and fiduciary duties.</text>
      </level>
    </level>
  </level>
</section>
