SECTION
229.40—Effect of 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 section 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 (section 229.31(c)).
2.
where
the depositary bank must accept returned checks (section 229.33(b)
and (c)).
3.
where the depositary bank must accept notice of nonpayment (section
229.33(b) and (c)).
4.
where
a paying bank must accept presentment of paper checks (section 229.36(b)).
