12 U.S.C. § 214b — Continuation of business and corporate entity

submitted 76 years ago by ch. 729 to r/title-12-BANKS-AND-BANKING · 104 words · no verdicts yet

in plain englishAI-generated · not legal advice

When a national bank converts into, merges with, or consolidates into a state bank, its national charter ends automatically. But the new state bank is treated as the same business and legal entity as before, just with a state bank's rights and duties.

As soon as a national banking association's conversion into — or merger or consolidation with — a state bank is completed, its national bank charter ends automatically. Even so, the resulting state bank counts as the very same business and corporate entity that the national bank was; it's just that its rights, powers, and duties are now those of a state bank. Any contract, will, or document that refers to the old national banking association is treated as referring to the new state bank instead, as long as that doesn't conflict with the terms of that contract, will, or document, or with the law that applies.

the actual law source: uscode.house.gov ↗public domain

The franchise of a national banking association as a national banking association shall automatically terminate when its conversion into or its merger or consolidation with a State bank under a State charter is consummated and the resulting State bank shall be considered the same business and corporate entity as the national banking association, although as to rights, powers, and duties the resulting bank is a State bank. Any reference to such national banking association in any contract, will, or document shall be considered a reference to the State bank if not inconsistent with the provisions of the contract, will, or document or applicable law.

Source credit: (Aug. 17, 1950, ch. 729, § 3, 64 Stat. 456.)

history & why it existsrecord from the source credit

1950Enacted · Act of Aug. 17, 1950, ch. 729 · 64 Stat. 456

A history note hasn’t been published yet. The record shows enactment by ch. 729 on 1950-08-17.

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