Section 136-C. Effect of merger or conversion of national banking association into state bank

1. At the time when a merger or  conversion  under  sections  one  hundred thirty-six and one hundred thirty-six-b of
  this chapter becomes effective.
    (a) the resulting state bank shall be considered the same business and
  corporate entity as the national banking  association,  although  as  to
  rights, powers and duties, the resulting bank is a state bank;
    (b) all of the property, rights, powers and franchises of the national
  banking  association  shall  vest  in  the  resulting state bank and the
  resulting state bank shall be subject to and be deemed to  have  assumed
  all  of  the  debts, liabilities, obligations and duties of the national
  banking association and to have succeeded to all of  its  relationships,
  fiduciary  or  otherwise,  as  fully  and  to the same extent as if such
  property, rights, powers, franchises, debts,  liabilities,  obligations,
  duties  and  relationships  had  been  originally  acquired, incurred or
  entered into by the resulting state bank; provided,  however,  that  the
  resulting  state  bank  shall  not,  through  such conversion or merger,
  acquire power to engage in  any  business  or  to  exercise  any  right,
  privilege  or franchise which is not conferred by the provisions of this
  chapter upon such resulting state bank;
    (c) any reference to the national banking association in any contract,
  will or document, whether executed or taking effect before or after  the
  conversion  or  merger, shall be considered a reference to the resulting
  state bank  if  not  inconsistent  with  the  other  provisions  of  the
  contract, will or document;
    (d)  a  pending  action  or  other  judicial  proceeding  to which the
  national banking association is a party, shall not  be  deemed  to  have
  abated  or  to  have discontinued by reason of the conversion or merger,
  but may be prosecuted to final judgment, order or  decree  in  the  same
  manner  as  if  the  conversion  or  merger  had  not  been made; or the
  resulting state bank may be substituted as a party  to  such  action  or
  proceeding,  and  any  judgment,  order or decree may be rendered for or
  against it that might have been rendered for  or  against  the  national
  banking association if the conversion or merger had not occurred.
    2.  As  used  in  this  section, the term "state bank" means a bank or
  trust company.