Sub Chapter XV of Title 12 of the US Code deals with the provisions of Conversion of National Banks into State Banks in US.
The term “State bank” means “any bank, banking association, trust company, savings bank, other than a mutual savings bank, or other banking institution which is engaged in the business of receiving deposits and which is incorporated under the laws of any State, any Territory of the United States, Puerto Rico, or the Virgin Islands, or which is operating under the Code of Law for the District of Columbia.”
A national banking association by the vote of the holders of at least two-thirds of each class of the capital stock, may alter into, merge or consolidate with a State bank However, the State bank must be situated in the same state where the national banking association is located. The franchise of a national banking association as a national banking association terminates when the conversion into or its merger or consolidation with a State bank by dint of a State Charter is carried out. The newly formed is considered as the same corporate entity as the national banking association, However, as to rights, powers, and duties, the newly formed bank is a State bank
