PRIA, Government Policy, Made Personal

Summary

A national bank may become a subsidiary of a bank holding company, or of a company that will become one, if the Comptroller approves under rules the Comptroller makes and shareholders holding at least two-thirds of the bank’s capital stock vote yes. The bank must have a written plan that the whole board’s majority approves. The plan must say how the change will happen, what cash, stock, or other payment shareholders will get, the date for who can take part, and how the exchange will be done. The plan must be shown to shareholders at a meeting held the same way a national bank merger meeting is held. Any shareholder who voted against the plan or gave written notice of dissent at or before that meeting can get the fair value of their shares under the merger rules. The bank’s corporate existence is not changed by the reorganization. The Bank Holding Company Act still applies to the transaction.

Title 12, §215a–2

Banks and Banking, Source: USLM XML via OLRC

(a)In general

A national bank may, with the approval of the Comptroller, pursuant to rules and regulations promulgated by the Comptroller, and upon the affirmative vote of the shareholders of such bank owning at least two-thirds of its capital stock outstanding, reorganize so as to become a subsidiary of a bank holding company or of a company that will, upon consummation of such reorganization, become a bank holding company.

(b)Reorganization plan

A reorganization authorized under subsection (a) shall be carried out in accordance with a reorganization plan that—

(1)specifies the manner in which the reorganization shall be carried out;

(2)is approved by a majority of the entire board of directors of the national bank;

(3)specifies—

(A)the amount of cash or securities of the bank holding company, or both, or other consideration to be paid to the shareholders of the reorganizing bank in exchange for their shares of stock of the bank;

(B)the date as of which the rights of each shareholder to participate in such exchange will be determined; and

(C)the manner in which the exchange will be carried out; and

(4)is submitted to the shareholders of the reorganizing bank at a meeting to be held on the call of the directors in accordance with the procedures prescribed in connection with a merger of a national bank under section 215a of this title.

(c)Rights of dissenting shareholders

If, pursuant to this section, a reorganization plan has been approved by the shareholders and the Comptroller, any shareholder of the bank who has voted against the reorganization at the meeting referred to in subsection (b)(4), or has given notice in writing at or prior to that meeting to the presiding officer that the shareholder dissents from the reorganization plan, shall be entitled to receive the value of his or her shares, as provided by section 215a of this title for the merger of a national bank.

(d)Effect of reorganization

The corporate existence of a national bank that reorganizes in accordance with this section shall not be deemed to have been affected in any way by reason of such reorganization.

(e)Approval under the Bank Holding Company Act

This section does not affect in any way the applicability of the Bank Holding Company Act of 1956 [12 U.S.C. 1841 et seq.] to a transaction described in subsection (a).

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Bank Holding Company Act of 1956, referred to in subsec. (e), is act May 9, 1956, ch. 240, 70 Stat. 133, which is classified principally to chapter 17 (§ 1841 et seq.) of this title. For complete classification of this Act to the Code, see

Short Title

note set out under section 1841 of this title and Tables.

§215a–2 Expedited Procedures for Certain Reorganizations