H.B. 1328                                                VETOES

(b)     "Bank" means a commercial bank, a national banking association, AN
OTHER-STATE BANK, or a federally-chartered savings bank or savings and loan
association.                                                       

(c)     "Constituent bank" means a party to a consolidation, merger, or transfer of
assets.

(d)     "Successor" means the bank that carries on the business of the constituent
banks after a consolidation, merger, or transfer of assets.

(e)     "Transfer assets", "transfer its assets", or "transfer of assets" means to sell,
lease, exchange, or otherwise transfer all or substantially all of the property and assets of
a constituent bank.

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;

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