New Jersey § 17:9a-16

§ 17:9a-16.

A. As used in this section: (1) “successor bank” means a bank organized to transact business at one or more of

the locations occupied by a predecessor bank; (2) “predecessor bank” means a bank in liquidation or in contemplation of liquidation; (3) “successor savings bank” means a savings bank organized to transact business at

one or more of the locations occupied by a predecessor savings bank; (4) “predecessor savings bank” means a savings bank in liquidation or in contemplation

of liquidation. B. When the application for charter discloses that it is proposed to organize a successor

bank or a successor savings bank, the commissioner may act immediately thereon, and

if he shall be satisfied that the establishment of the successor bank or successor

savings bank will tend to continue an established banking business, and that it is

in the public interest that such established banking business be so continued, he

may approve the application, without the prior notice, publication, and hearing required

by sections 10 and 11. 1 C. Subject to the approval of the commissioner, a predecessor bank may be an incorporator

of, and may subscribe for and purchase shares of the capital stock of its successor

bank, and may pay for such stock in money or in assets owned by it other than money;

in which event, the certificate of incorporation of the successor bank, and the affidavit

filed pursuant to section 14, 2 shall state the amount of the entire consideration received by the successor bank

upon issuance of its shares, and what part thereof consists of money, and what part

thereof consists of consideration other than money. D. When a predecessor bank is an incorporator of its successor bank, any affidavit

or oath required by the provisions of this act to be made by incorporators shall be

made on behalf of the predecessor bank by any two of its officers designated by its

board of directors. E. A successor bank may contract with its predecessor bank to liquidate the assets

of the predecessor bank upon such terms and conditions as the commissioner shall approve;

but this subsection shall not limit the power of the predecessor bank to dissolve

voluntarily as by law provided, nor shall it limit or restrict the power of the commissioner

to liquidate banks as provided by law. F. A successor bank may, on its organization, issue preferred stock in such amounts,

and subject to such terms and conditions, not inconsistent with the provisions of

this act, as the commissioner shall approve. G. A successor savings bank may, with the approval of the commissioner, purchase and

pay for the assets of its predecessor savings bank, and may borrow money for that

purpose. H. This section shall not exempt a successor bank or successor savings bank from any

provisions of this act, except to the extent that such provisions are modified or

are made inapplicable to successor banks or successor savings banks by the express

provisions hereof. I. A successor bank may be organized only to succeed a predecessor bank, and a successor

savings bank may be organized only to succeed a predecessor savings bank. 1

N.J.S.A. §§ 17:9A-10, 17:9A-11. 2

N.J.S.A. § 17:9A-14.