Issued by FDIC
Sec. 229.40 - Effect of merger transaction.
For purposes of this subpart, two or more banks that have engaged in a merger transaction may be considered to be separate banks for a period of one year following the consummation of the merger transaction.
XXVI. Section 229.40 Effect on Merger Transaction
A. When banks merge, there is normally a period of adjustment before their operations are consolidated. To allow for this adjustment period, the regulation provides that the merged banks may be treated as separate banks for a period of up to one year after the consummation of the transaction. The term merger transaction is defined in §229.2(t). This rule affects the status of the combined entity in a number of areas in this subpart, such as the following:
1. The paying bank's responsibility for notice of nonpayment (§229.31(c)).
2. Where the depositary bank must accept returned checks (§229.33(b) and (c)).
3. Where the depositary bank must accept notice of nonpayment (§229.33(b) and (c)).
4. Where a paying bank must accept presentment of paper checks (§229.36(b)).