The term receiving association refers to a national banking association that results from the merger of one or more national banks or state banks located within the same state. This definition is established under federal law, specifically 12 USCS § 215b (4), which outlines the legal framework for such mergers in the banking sector.
The concept of a receiving association is primarily used in banking law, particularly concerning mergers and acquisitions involving national and state banks. This term is relevant in legal practices related to corporate law, financial regulation, and banking compliance. Users may encounter this term when dealing with the legal processes of merging banks, which can involve various forms and procedures that can be managed using templates available through platforms like US Legal Forms.
Here are a couple of examples of abatement:
Example 1: A national bank in California merges with a state bank also located in California. The resulting entity is designated as the receiving association under federal law.
Example 2: (hypothetical example) If Bank A, a national bank, merges with Bank B, a state bank, both situated in Texas, Bank A becomes the receiving association after the merger is finalized.
The primary statute governing the definition and operation of receiving associations is 12 USCS § 215b (4). This law outlines the conditions under which banks can merge and the legal implications of such mergers.
| Term | Definition | Key Differences |
|---|---|---|
| National Bank | A bank chartered under the federal government. | Can exist independently or as part of a merger. |
| State Bank | A bank chartered by a state government. | Subject to state regulations, may merge with national banks. |
| Merger | The combination of two or more banks into one entity. | Receiving association is the result of a specific type of merger. |
If you are involved in a merger between banks, it is essential to understand the implications of becoming a receiving association. You may want to consult with a legal professional to ensure compliance with all regulations. Additionally, consider using US Legal Forms to access templates that can help streamline the process of merging banks.
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A receiving association is a national banking association formed when one or more banks merge.