Grandfather Exception [Banks & Banking] Law and Legal Definition

According to 12 CFR 327.8 [Title 12 -- Banks and Banking; Chapter III -- Federal Deposit Insurance Corporation; Subchapter B -- Regulations and Statements of General Policy; Part 327 – Assessments; Subpart A -- in General], grandfather exception states that “if a new institution merges into an established institution, and the merger agreement was entered into on or before July 11, 2006, the resulting institution shall be deemed to be an established institution.”