PRINTER'S NO. 2119
No. 1498 Session of 1998
INTRODUCED BY HOLL, SALVATORE, WHITE, TOMLINSON, EARLL, BELL,
AFFLERBACH, O'PAKE, GREENLEAF AND LEMMOND, AUGUST 11, 1998
REFERRED TO BANKING AND INSURANCE, AUGUST 11, 1998
AN ACT
1 Amending the act of November 30, 1965 (P.L.847, No.356),
2 entitled "An act relating to and regulating the business of
3 banking and the exercise by corporations of fiduciary powers;
4 affecting persons engaged in the business of banking and
5 corporations exercising fiduciary powers and affiliates of
6 such persons; affecting the shareholders of such persons and
7 the directors, trustees, officers, attorneys and employes of
8 such persons and of the affiliates of such persons; affecting
9 national banks located in the Commonwealth; affecting persons
10 dealing with persons engaged in the business of banking,
11 corporations exercising fiduciary powers and national banks;
12 conferring powers and imposing duties on the Banking Board,
13 on certain departments and officers of the Commonwealth and
14 on courts, prothonotaries, clerks and recorders of deeds;
15 providing penalties; and repealing certain acts and parts of
16 acts," further providing for the requirements for a merger or
17 consolidation.
18 The General Assembly of the Commonwealth of Pennsylvania
19 hereby enacts as follows:
20 Section 1. Section 1603 of the act of November 30, 1965
21 (P.L.847, No.356), known as the Banking Code of 1965, is amended
22 by adding a subsection to read:
23 Section 1603. Requirements for a Merger or Consolidation
24 The requirements for a merger or consolidation which must be
25 satisfied by the parties thereto are as follows:
1 * * *
2 (h) Selling of customers' accounts and notice.--
3 (1) If a proposed merger or consolidation may result in
4 the customers' accounts being sold to another institution,
5 the following shall apply:
6 (i) the institution desiring to sell the accounts shall
7 notify the customers in writing that their accounts may be
8 sold and shall provide the customers with a reply form that
9 offers the customers the option of either consenting to the
10 sale of their accounts to another institution or of keeping
11 their accounts at the institution that is being merged or
12 acquired,
13 (ii) the customers shall have thirty days to respond to
14 the institution's notice, and
15 (iii) if a customer fails to respond on the reply form
16 within the thirty-day period, it shall be presumed that the
17 customer consents to the proposed sale of the account.
18 (2) Nothing in this subsection shall be interpreted as
19 preempting, usurping or replacing the jurisdiction or
20 activities of the Federal Government in connection with
21 federally chartered institutions that engage in the business
22 of banking.
23 Section 2. This act shall take effect in 60 days.
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