(2) After approval by the board of directors of the parent bank holding
company,
the merger agreement shall be submitted to the Commissioner for approval.
(3) After receipt by the Commissioner of the papers specified in item
(2), he shall approve or disapprove the merger agreement. The Commissioner
shall not approve the agreement unless he shall be of the opinion and finds
that the same matters exist in respect of the continuing bank which would have
been required under Section 10 of this Act for the organization of a new bank,
that the mid-tier bank holding company has no known liabilities that will
become liabilities of the continuing bank, and that the parent bank holding
company will indemnify the continuing bank for any known and unknown contingent
liabilities
for which the continuing bank may become liable as a result of the merger.
Nothing in this Section shall authorize a resulting State bank to acquire,
hold, or invest any asset or to assume or incur any liability that does not
conform to the legal requirements for assets acquired, held, or invested or
liabilities assumed or incurred by State banks, or to engage in any activity in
which a State bank is not authorized to engage as part of a general banking
business. If the Commissioner disapproves the merger agreement, he shall state
his objections in writing and give an opportunity to the merging bank and
mid-tier
bank holding company to obviate the objections.
(4) To be effective, if approved by the Commissioner, a copy of the merger
agreement executed by the duly authorized president of the mid-tier bank
holding company and president of the merging State bank, together with copies
of the resolution of the board of directors of the parent bank holding company,
approving the merger agreement, certified by the parent bank holding company's
president
or vice-president and attested by the secretary, must be filed with the
Commissioner. The merger shall, unless a later date is specified in the
agreement, become effective when the Commissioner has approved the agreement
and issued a certificate of merger to the continuing bank, which shall specify
the name of the mid-tier bank holding company, the name of the continuing bank,
and the amendments to the charter of the continuing bank provided for by the
merger agreement. The charter of the mid-tier bank holding company shall
thereupon automatically terminate. Such certificate shall be conclusive
evidence of the merger and of the correctness of all proceedings therefor in
all courts and places including the office of the Secretary of State, and the
certificate shall be recorded.
(Source: P.A. 92-483, eff. 8-23-01.)
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