Interstate Merger Transaction Law and Legal Definition

An interstate merger transaction generally involves the acquisition of a branch of an nsured bank without the acquisition of the bank only if the law of the State in which the branch is located permits out-of-State banks to acquire a branch of a bank in such State without acquiring the bank.

Following is an example of a state statute defining the term:

"Interstate merger transaction" means:

(1)The merger or consolidation of banks with different home states, and the conversion of branches of any bank involved in the merger or consolidation into branches of the resulting bank; or

(2)The purchase of all or substantially all of the assets, including all or substantially all of the branches, of a bank whose home state is different from the home state of the acquiring bank. [Code of Ala. § 5-13B-21.]