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Can you summarize 5 ALCA Chapter 7A?
BANKS AND FINANCIAL INSTITUTIONS. > BANK MERGER, CONSOLIDATION, OR CONVERSION.
Short Summary
This legal document governs the proceedings required to effect consolidation, merger, or transfer of state banks, including those with branches and branch offices. Before such actions can become effective, the board of directors of each affected bank must pass a resolution stating the desirability of the consolidation, merger, or transfer and order the officers of the bank to call a meeting of the stockholders. A notice of the meeting must be mailed to each stockholder at least 30 days before the meeting, specifying the date, place, and purpose of the meeting. The resolution and a copy of it must also be forwarded to the superintendent for investigation. At the meeting of the stockholders, a resolution may be prepared setting forth the terms and other matters related to the consolidation, merger, or transfer. If a majority of the stock is represented at the meeting and votes in favor of the resolution, and the superintendent approves all the proceedings, the resolution will have the force and effect of consolidating or merging the institution with another institution, provided the other institution’s stockholders also approve. If the proposition is to transfer the place of business, it must be affirmatively voted for by a majority of all the stock, and the superintendent must determine that it is wise to change or transfer the place of business. In such cases, the transfer will be made. This document does not mention any specific exemptions or penalties.
Whom does it apply to?
State banks, including those with branches and branch offices
What does it govern?
Proceedings required to effect consolidation, merger, or transfer of state banks
What are exemptions?
No specific exemptions are mentioned.
What are the Penalties?
No specific penalties are mentioned.
Jurisdiction
Alabama