§ 4889 Merger Trust Business Succession

Key Takeaways

•If two banks merge, any old papers or agreements mentioning the old bank now refer to the new bank.
•If the old bank was handling trusts or other special accounts, the new bank automatically takes over those duties without needing extra paperwork.
•The new bank can step into any roles (like being an executor of a will) that the old bank was supposed to do.

Example

You have a savings account at Bank A, and Bank A merges with Bank B to become Bank B only.

After the merger, any old checks, contracts, or agreements you had with Bank A now apply to Bank B. If Bank A was managing a trust for your family, Bank B will now handle it without you having to sign new papers.

(a) When a merger becomes effective: (1) Any reference to the disappearing depository corporation in any writing, whether executed or taking effect before or after the merger, shall be deemed a reference to the surviving corporation, if not inconsistent with the other provisions of the writing. (2) In case the disappearing depository corporation was transacting trust business, the surviving depository corporation shall succeed, without further transfer, to the rights, obligations, properties, assets, investments, deposits, demands, agreements, and trusts of the disappearing depository corporation under all trusts, executorships, administrations, guardianships, agencies, and all their fiduciary or representative capacities to the same extent as if the surviving depository corporation had originally assumed such fiduciary or representative capacities, and the surviving depository corporation shall be entitled to take and execute the appointment to all executorships, trusteeships, guardianships, and other fiduciary or representative capacities to which the disappearing depository corporation is or may be named in wills, whenever probated, or to which the disappearing depository corporation is or may be named or appointed by any other instrument. (b) Subdivision (a) shall be construed as clarifying and amplifying, not as limiting or restricting, the provisions of Section 1107 of the Corporations Code. (Added by Stats. 1982, Ch. 1411, Sec. 3.)

Key Takeaways

•If two banks merge, any old papers or agreements mentioning the old bank now refer to the new bank.
•If the old bank was handling trusts or other special accounts, the new bank automatically takes over those duties without needing extra paperwork.
•The new bank can step into any roles (like being an executor of a will) that the old bank was supposed to do.

Example

You have a savings account at Bank A, and Bank A merges with Bank B to become Bank B only.

Key Takeaways

Example

Key Terms

References

§ 4889 Merger Trust Business Succession

Key Takeaways

Example

Key Terms

References

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References