Section 1278.3 - Merger agreementA merger of Banks under the authority of § 1278.2 shall require a written merger agreement that:
(a) Has been authorized by the affirmative vote of a majority of a quorum of the board of directors of each Constituent Bank at a meeting on the record and has been executed by authorized signing officers of each Constituent Bank; and(b) Sets forth all material terms and conditions of the merger, including, without limitation, provisions addressing each of the following matters-(1) The proposed Effective Date and the proposed acquisition date for purposes of accounting for the transaction under GAAP, if that date is to be different from the Effective Date;(2) The proposed organization certificate and bylaws of the Continuing Bank;(3) The proposed capital structure plan for the Continuing Bank;(4) The proposed size and structure of the board of directors for the Continuing Bank;(5) The formula to be used to exchange the stock of the Constituent Banks for the stock of the Continuing Bank, and a provision prohibiting the issuance of fractional shares of stock;(6) Any conditions that must be satisfied prior to the Effective Date, which must include approval by the Director and ratification by the members of the Constituent Banks;(7) A statement of the representations or warranties, if any, made or to be made by any Constituent Bank;(8) A description of the legal or accounting opinions or rulings, if any, that are required to be obtained or furnished by any party in connection with the proposed merger; and(9) A statement that the board of directors of a Constituent Bank may terminate the merger agreement before the Effective Date upon a determination that:(i) The information disclosed to members contained material errors or omissions;(ii) Material misrepresentations were made to members regarding the impact of the merger;(iii) Fraudulent activities were used to obtain members' approval; or(iv) An event occurred subsequent to the members' vote that would have a significant adverse impact on the future viability of the Continuing Bank.