2016 Kentucky Revised Statutes CHAPTER 286 - KENTUCKY FINANCIAL SERVICES CODE Subtitle 3 - Banks and Trust Companies 286.3-173 Conversion of state bank to or merger with national banking association.
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286.3-173 Conversion of state bank to or merger with national banking association.
(1)
(2)
(3)
A state bank may convert into, or merge or consolidate with, a national banking
association under the charter of a national banking association in the manner
provided by federal law and without approval of any state authority.
The franchise of a state bank as a state bank shall automatically terminate when its
conversion into or its merger or consolidation with a national banking association
under a federal charter is consummated and the resulting national banking
association shall be considered the same business and corporate entity as the state
bank, although as to rights, powers and duties the resulting bank is a national
banking association.
At the time when such conversion, merger or consolidation becomes effective:
(a) All of the property, rights, powers and franchises of the state bank shall vest in
the national banking association and the national banking association shall be
subject to and be deemed to have assumed all of the debts, liabilities,
obligations and duties of the state bank and to have succeeded to all of its
relationships, fiduciary or otherwise, as fully and to the same extent as if such
property, rights, powers, franchises, debts, liabilities, obligations, duties and
relationships had been originally acquired, incurred or entered into by the
national banking association;
(b) Any reference to the state bank in any contract, will or document, whether
executed or taking effect before or after the conversion, merger or
consolidation, shall be considered a reference to the national banking
association if not inconsistent with the other provisions of the contract, will or
document;
(c) A pending action or other judicial proceeding to which the state bank is a
party, shall not be deemed to have abated or to have discontinued by reason of
the conversion, merger or consolidation, but may be prosecuted to final
judgment, order or decree in the same manner as if the conversion, merger or
consolidation had not been made; or the national banking association may be
substituted as a party to such action or proceeding, and any judgment, order or
decree may be rendered for or against it that might have been rendered for or
against the state bank if the conversion, merger or consolidation had not
occurred.
Effective: March 21, 1952
History: Created 1952 Ky. Acts ch. 222, sec. 3, effective March 21, 1952.
Formerly codified as KRS 287.173.
Legislative Research Commission Note (7/12/2006). In accordance with 2006 Ky. Acts
ch. 247, secs. 38 and 39, this statute has been renumbered as a section of the
Kentucky Financial Services Code, KRS Chapter 286.
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