Chapter 32, Section 3104, Subsection (c) · 12 U.S.C. Chapter 32 — FOREIGN BANK PARTICIPATION IN DOMESTIC MARKETS

Contents

(c)

(1)After September 17, 1978, no foreign bank may establish a branch, and after one year following such date no foreign bank may operate a branch, in any State in which the deposits of a bank organized and existing under the laws of that State would be required to be insured, unless the branch is an insured branch as defined in section 3(s) of the Federal Deposit Insurance Act [12 U.S.C. 1813(s)], or unless the branch will not thereafter accept deposits of less than an amount equal to the standard maximum deposit insurance amount, or unless the Federal Deposit Insurance Corporation determines by order or regulation that the branch is not engaged in domestic retail deposit activities requiring deposit insurance protection, taking account of the size and nature of depositors and deposit accounts.

(2)Notwithstanding the previous paragraph, a branch of a foreign bank in operation on September 17, 1978, which has applied for Federal deposit insurance pursuant to section 5 of the Federal Deposit Insurance Act [12 U.S.C. 1815] by September 17, 1979, and has not had such application denied, may continue to accept domestic retail deposits until January 31, 1980.

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Defined terms · 25

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affiliate
shall mean any company more than 5 per centum of whose voting shares is directly or indirectly owned or controlled or held with power to vote by the specified foreign bank or company, and the term “domestically-controlled affiliate covered in 1978” shall mean an affiliate organized under the laws of the United States or any State thereof if (i) no foreign bank or group of foreign banks acting in concert owns or controls, directly or indirectly, 45 per centum or more of its voting shares, and (ii) no more than 20 per centum of the number of directors as established from time to time to constitute the whole board of directors and 20 per centum of the executive officers of such affiliate are persons affiliated with any such foreign bank.
agency
means any office or any place of business of a foreign bank located in any State of the United States at which credit balances are maintained incidental to or arising out of the exercise of banking powers, checks are paid, or money is lent but at which deposits may not be accepted from citizens or residents of the United States;
Board
means the Board of Governors of the Federal Reserve System;
branch
means any office or any place of business of a foreign bank located in any State of the United States at which deposits are received;
commercial lending company
means any institution, other than a bank or an organization operating under section 25 of the Federal Reserve Act [12 U.S.C. 601 et seq.], organized under the laws of any State of the United States, or the District of Columbia which maintains credit balances incidental to or arising out of the exercise of banking powers and engages in the business of making commercial loans;
Comptroller
means the Comptroller of the Currency;
consolidated
means consolidated in accordance with generally accepted accounting principles in the United States consistently applied;
domestically-controlled affiliate covered in 1978
shall mean an affiliate organized under the laws of the United States or any State thereof if (i) no foreign bank or group of foreign banks acting in concert owns or controls, directly or indirectly, 45 per centum or more of its voting shares, and (ii) no more than 20 per centum of the number of directors as established from time to time to constitute the whole board of directors and 20 per centum of the executive officers of such affiliate are persons affiliated with any such foreign bank.
Federal agency
means an agency of a foreign bank established and operating under section 3102 of this title;
Federal banking agency
means the Board, the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the Director of the Office of Thrift Supervision.
Federal branch
means a branch of a foreign bank established and operating under section 3102 of this title;
foreign bank
means any company organized under the laws of a foreign country, a territory of the United States, Puerto Rico, Guam, American Samoa, or the Virgin Islands, which engages in the business of banking, or any subsidiary or affiliate, organized under such laws, of any such company.
foreign country
means any country other than the United States, and includes any colony, dependency, or possession of any such country;
home State
means—
insured branch
has the meaning given such term in section 3(s) of the Federal Deposit Insurance Act [12 U.S.C. 1813(s)].
money laundering offense
means any criminal offense under section 1956 or 1957 of title 18 or under section 5322 of title 31.
office
means any branch, agency, or representative office;
persons affiliated with any such foreign bank
shall mean (A) any person who is or was an employee, officer, agent, or director of such foreign bank or who otherwise has or had such a relationship with such foreign bank that would lead such person to represent the interests of such foreign bank, and (B) in the case of any director of such domestically controlled affiliate covered in 1978, any person in favor of whose election as a director votes were cast by less than two-thirds of all shares voting in connection with such election other than shares owned or controlled, directly or indirectly, by any such foreign bank.
representative office
means any office of a foreign bank which is located in any State and is not a Federal branch, Federal agency, State branch, or State agency;
standard maximum deposit insurance amount
means the amount of the maximum amount of deposit insurance as determined under section 11(a)(1) of the Federal Deposit Insurance Act [12 U.S.C. 1821(a)(1)].
State
means any State of the United States or the District of Columbia;
State agency
means an agency of a foreign bank established and operating under the laws of any State;
State bank supervisor
has the meaning given to such term in section 1813 of this title.
State branch
means a branch of a foreign bank established and operating under the laws of any State;
violate
includes taking any action (alone or with others) for or toward causing, bringing about, participating in, counseling, or aiding or abetting a violation.