Bill > S723

This bill aims to streamline the process for banks and credit unions to combine or dissolve by modifying existing state laws. Specifically, the legislation allows for expedited liquidation procedures when a mutual bank or stock bank is being dissolved through a business combination with another financial institution, such as a credit union. Under the new provisions, if a bank is selling its assets and transferring its deposit liabilities to another institution, the commissioner can establish a faster dissolution process where the original bank is dissolved immediately after the combination, provided all liabilities are transferred. The bill also stipulates that when a credit union purchases a bank's assets and assumes its deposit liabilities, the bank's main office and branches can automatically become branches of the acquiring credit union without additional approvals. Additionally, the depositors of the dissolved bank will become members of the credit union within two years of the transaction (or longer if approved by the commissioner). These changes are intended to provide more flexibility and efficiency for state financial institutions seeking to merge or restructure their operations.

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https://malegislature.gov/Bills/194/S723