The bill, introduced by Senator Boudreaux, enacts R.S. 6:356, which provides guidelines for the use of bank names in the context of mergers and consolidations. It allows the surviving or new bank to use the name of the nonsurviving state bank for a reasonable period following the merger or consolidation when appropriate. Additionally, it stipulates that the surviving or new federally insured bank may continue to use the name of the nonsurviving state bank as a division, provided that this usage complies with federal and chartering authority requirements.

To prevent confusion among depositors regarding the identity of the bank and the extent of FDIC insurance coverage, the bill mandates that banks using a division name must take reasonable steps, including clear signage and advertising, using the legal name in official documents, training staff on deposit insurance issues, and obtaining acknowledgment from depositors that their deposits across divisions are not separately insured. The bill will take effect upon the governor's signature or after the lapse of time for gubernatorial action.