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COMMITTEE PRINT" !107th Congress1st Session COMMITTEEPRINT
107C
COMPILATION OF BASIC BANKING LAWS
WITHIN THE JURISDICTION OF THE
COMMITTEE ON FINANCIAL SERVICES
PREPARED FOR THE USE OF THE
COMMITTEE ON FINANCIAL SERVICESU.S. HOUSE OF REPRESENTATIVES
MAY 2001
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U.S. GOVERNMENT PRINTING OFFICEWASHINGTON :
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71726
COMMITTEE PRINT" !107th Congress1st Session COMMITTEE
2001
PRINT 107C
COMPILATION OF BASIC BANKING LAWS
WITHIN THE JURISDICTION OF THE
COMMITTEE ON FINANCIAL SERVICES
PREPARED FOR THE USE OF THE
COMMITTEE ON FINANCIAL SERVICESU.S. HOUSE OF REPRESENTATIVES
MAY 2001
For sale by the Superintendent of Documents, U.S. Government
Printing OfficeInternet: bookstore.gpo.gov Phone: (202) 5121800
Fax: (202) 5122250
Mail: Stop SSOP, Washington, DC 204020001
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HOUSE COMMITTEE ON FINANCIAL SERVICES
MICHAEL G. OXLEY, Ohio, Chairman
JAMES A. LEACH, IowaMARGE ROUKEMA, New Jersey, Vice ChairDOUG
BEREUTER, NebraskaRICHARD H. BAKER, LouisianaSPENCER BACHUS,
AlabamaMICHAEL N. CASTLE, DelawarePETER T. KING, New YorkEDWARD R.
ROYCE, CaliforniaFRANK D. LUCAS, OklahomaROBERT W. NEY, OhioBOB
BARR, GeorgiaSUE W. KELLY, New YorkRON PAUL, TexasPAUL E. GILLMOR,
OhioCHRISTOPHER COX, CaliforniaDAVE WELDON, FloridaJIM RYUN,
KansasBOB RILEY, AlabamaSTEVEN C. LATOURETTE, OhioDONALD A.
MANZULLO, IllinoisWALTER B. JONES, North CarolinaDOUG OSE,
CaliforniaJUDY BIGGERT, IllinoisMARK GREEN, WisconsinPATRICK J.
TOOMEY, PennsylvaniaCHRISTOPHER SHAYS, ConnecticutJOHN B. SHADEGG,
ArizonaVITO FOSSELLA, New YorkGARY G. MILLER, CaliforniaERIC
CANTOR, VirginiaFELIX J. GRUCCI, JR., New YorkMELISSA A. HART,
PennsylvaniaSHELLEY MOORE CAPITO, West VirginiaMIKE FERGUSON, New
JerseyMIKE ROGERS, MichiganPATRICK J. TIBERI, Ohio
JOHN J. LAFALCE, New YorkBARNEY FRANK, MassachusettsPAUL E.
KANJORSKI, PennsylvaniaMAXINE WATERS, CaliforniaCAROLYN B. MALONEY,
New YorkLUIS V. GUTIERREZ, IllinoisNYDIA M. VELAZQUEZ, New
YorkMELVIN L. WATT, North CarolinaGARY L. ACKERMAN, New YorkKEN
BENTSEN, TexasJAMES H. MALONEY, ConnecticutDARLENE HOOLEY,
OregonJULIA CARSON, IndianaBRAD SHERMAN, CaliforniaMAX SANDLIN,
TexasGREGORY W. MEEKS, New YorkBARBARA LEE, CaliforniaFRANK
MASCARA, PennsylvaniaJAY INSLEE, WashingtonJANICE D. SCHAKOWSKY,
IllinoisDENNIS MOORE, KansasCHARLES A. GONZALEZ, TexasSTEPHANIE
TUBBS JONES, OhioMICHAEL E. CAPUANO, MassachusettsHAROLD E. FORD
JR., TennesseeRUBEN HINOJOSA, TexasKEN LUCAS, KentuckyRONNIE SHOWS,
MississippiJOSEPH CROWLEY, New YorkWILLIAM LACY CLAY, MissouriSTEVE
ISRAEL, New YorkMIKE ROSS, Arizona
BERNARD SANDERS, Vermont
TERRY HAINES, Chief Counsel and Staff Director
(II)
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Notes to the Reader
1. Any material contained within brackets is not part of thetext
of the law but is inserted as an aid to the reader.
2. Citations have been included to enable the reader to locate
thesame material in the United States Code (U.S.C.). These
citationsare not a part of the text of the law in which they
appear. Forchanges after the closing date of this publication
(December 31,2000) to provisions of law in this publication that
have citations tothe U.S. Code, see the United States Code
Classification Tablespublished by the Office of the Law Revision
Counsel of the Houseof Representatives at
http://uscode.house.gov/uscct.htm.
REVISED THROUGH DECEMBER 31, 2000
(III)
http://uscode.house.gov/uscct.htm
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C O N T E N T S
Page
Act of May 1, 1886
...................................................................................................
1Act of September 28, 1962
......................................................................................
5Act of October 26, 1970
...........................................................................................
11Act of October 28, 1974
...........................................................................................
17Alternative Mortgage Transaction Parity Act of 1982
.......................................... 21Bank Conservation Act
...........................................................................................
27Bank Enterprise Act of 1991
..................................................................................
35Bank Holding Company Act of 1956
......................................................................
49Bank Holding Company Act Amendments of 1970
............................................... 109Bank Protection
Act of 1968
...................................................................................
119Bank Service Company Act
.....................................................................................
123Banking Act of 1933
................................................................................................
129Community Development Credit Union Revolving Loan Fund Transfer
Act ..... 135Community Reinvestment Act of 1977
..................................................................
139Competitive Equality Banking Act of 1987
...........................................................
149Consumer Credit Protection Act
.............................................................................
153
including the following Acts:Truth In Lending Act
................................................................................
155Restriction on Garnishment (title III)
..................................................... 222Credit
Repair Organizations Act
..............................................................
225Fair Credit Reporting Act
.........................................................................
233Equal Credit Opportunity Act
..................................................................
272Fair Debt Collection Practices Act
...........................................................
282Electronic Fund Transfer Act
...................................................................
293
Depository Institution Management Interlocks Act
............................................. 311Economic Growth
and Regulatory Paperwork Reduction Act of 1996 ................
319Expedited Funds Availability Act
..........................................................................
335Federal Credit Union Act
........................................................................................
355Federal Deposit Insurance Act
...............................................................................
471Federal Deposit Insurance Corporation Improvement Act of 1991
..................... 749Federal Financial Institutions Examination
Council Act of 1978 ....................... 763Federal Home Loan
Bank Act
................................................................................
769Federal Reserve Act
.................................................................................................
905Financial Institutions Reform, Recovery, and Enforcement Act of
1989 ............ 1009Gramm-Leach-Bliley Act
.........................................................................................
1043Home Mortgage Disclosure Act of 1975
.................................................................
1085Home Owners Loan Act
..........................................................................................
1099International Banking Act of 1978
.........................................................................
1181International Lending Supervision Act of 1983
.................................................... 1209Legal
Certainty for Bank Products Act of 2000
.................................................... 1219National
Bank Consolidation and Merger Act
...................................................... 1227National
Bank Receivership Act
.............................................................................
1237Real Estate Settlement Procedures Act of 1974
.................................................... 1243Resolution
Trust Corporation Funding Act of 1991
.............................................. 1263Resolution Trust
Corporation Refinancing, Restructuring, and Improvement
Act of 1991
............................................................................................................
1267Revised Statutes of the United States, Title LXII
................................................ 1273Riegle
Community Development and Regulatory Improvement Act of 1994 .....
1327Riegle-Neal Interstate Banking and Branching Efficiency Act of
1994 .............. 1391Right To Financial Privacy Act of 1978
.................................................................
1401Title 31, United States Code, Subtitle IV
..............................................................
1423Truth In Savings Act
...............................................................................................
1485Reporting Requirements
.........................................................................................
1499
(IV)
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1
ACT OF MAY 1, 1886
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3
ACT OF MAY 1, 1886
CHAP. 73.An Act to enable national banking associations to
increase their capitalstock and to change their names or
locations.
Be it enacted by the Senate and House of Representatives of
theUnited States of America in Congress assembled,
Section 1 was repealed by section 6 of Public Law 86230,73 Stat.
457.
SEC. 2. 12 U.S.C. 30 (a) Any national banking association,upon
written notice to the Comptroller of the Currency, maychange its
name, except that such new name shall include the wordNational.
(b) Any national banking association, upon written notice tothe
Comptroller of the Currency, may change the location of itsmain
office to any authorized branch location within the limits ofthe
city, town, or village in which it is situated, or, with a vote
ofshareholders owning two-thirds of the stock of such association
fora relocation outside such limits and upon receipt of a
certificate ofapproval from the Comptroller of the Currency, to any
other loca-tion within or outside the limits of the city, town, or
village inwhich it is located, but not more than thirty miles
beyond such lim-its.
(c) COORDINATION WITH REVISED STATUTES.In the case of anational
bank which relocates the main office of such bank from 1State to
another State after May 31, 1997, the bank may retainand operate
branches within the State from which the bank relo-cated such
office only to the extent authorized in section 5155(e)(2)of the
Revised Statutes.
(d) RETENTION OF FEDERAL IN NAME OF CONVERTED FEDERALSAVINGS
ASSOCIATION.
(1) IN GENERAL.Notwithstanding subsection (a) or anyother
provision of law, any depository institution, the charterof which
is converted from that of a Federal savings associa-tion to a
national bank or a State bank after the date of theenactment of the
Gramm-Leach-Bliley Act may retain the termFederal in the name of
such institution if such institution re-mains an insured depository
institution.
(2) DEFINITIONS.For purposes of this subsection, theterms
depository institution, insured depository institution,national
bank, and State bank have the meanings giventhose terms in section
3 of the Federal Deposit Insurance Act.SEC. 3. 12 U.S.C. 31 That
all debts, liabilities, rights, provi-
sions, and powers of the association under its old name shall
de-volve upon and inure to the association under its new name.
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4
SEC. 4. 12 U.S.C. 32 That nothing in this act contained shallbe
so construed as in any manner to release any national
bankingassociation under its old name or at its old location from
any liabil-ity, or affect any action or proceeding in law in which
said associa-tion may be or become a party or interested.
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5
ACT OF SEPTEMBER 28, 1962
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7
ACT OF SEPTEMBER 28, 1962
AN ACT To place authority over the trust powers of national
banks in theComptroller of the Currency.
Be it enacted by the Senate and House of Representatives of
theUnited States of America in Congress assembled, That 12
U.S.C.92a (a) the Comptroller of the Currency shall be authorized
andempowered to grant by special permit to national banks
applyingtherefor, when not in contravention of State or local law,
the rightto act as trustee, executor, administrator, registrar of
stocks andbonds, guardian of estates, assignee, receiver, committee
of estatesof lunatics, or in any other fiduciary capacity in which
State banks,trust companies, or other corporations which come into
competitionwith national banks are permitted to act under the laws
of theState in which the national bank is located.
(b) Whenever the laws of such State authorize or permit
theexercise of any or all of the foregoing powers by State banks,
trustcompanies, or other corporations which compete with
nationalbanks, the granting to and the exercise of such powers by
nationalbanks shall not be deemed to be in contravention of State
or locallaw within the meaning of this Act.
(c) National banks exercising any or all of the powers
enumer-ating in this section shall segregate all assets held in any
fiduciarycapacity from the general assets of the bank and shall
keep a sepa-rate set of books and records showing in proper detail
all trans-actions engaged in under authority of this section. The
State bank-ing authorities may have access to reports of
examination made bythe Comptroller of the Currency insofar as such
reports relate tothe trust department of such bank, but nothing in
this Act shallbe construed as authorizing the State banking
authorities to exam-ine the books, records, and assets of such
bank.
(d) No national bank shall receive in its trust department
de-posits of current funds subject to check or the deposit of
checks,drafts, bills of exchange, or other items for collection or
exchangepurposes. Funds deposited or held in trust by the bank
awaitinginvestment shall be carried in a separate account and shall
not beused by the bank in the conduct of its business unless it
shall firstset aside in the trust department United States bonds or
othersecurities approved by the Comptroller of the Currency.
(e) In the event of the failure of such bank the owners of
thefunds held in trust for investment shall have a lien on the
bondsor other securities so set apart in addition to their claim
againstthe estate of the bank.
(f) Whenever the laws of a State require corporations acting ina
fiduciary capacity to deposit securities with the State
authoritiesfor the protection of private or court trusts, national
banks so act-ing shall be required to make similar deposits and
securities so
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8Sec. 1 ACT OF SEPTEMBER 28, 1962
deposited shall be held for the protection of private or court
trusts,as provided by the State law. National banks in such cases
shallnot be required to execute the bond usually required of
individualsif State corporations under similar circumstances are
exempt fromthis requirement. National banks shall have power to
execute suchbond when so required by the laws of the State.
(g) In any case in which the laws of a State require that a
cor-poration acting as trustee, executor, administrator, or in any
capac-ity specified in this section, shall take an oath or make an
affidavit,the president, vice president, cashier, or trust officer
of such na-tional bank may take the necessary oath or execute the
necessaryaffidavit.
(h) It shall be unlawful for any national banking association
tolend any officer, director, or employee any funds held in
trustunder the powers conferred by this section. Any officer,
director, oremployee making such loan, or to whom such loan is
made, maybe fined not more than $5,000, or imprisoned not more than
fiveyears, or may be both fined and imprisoned, in the discretion
of thecourt.
(i) In passing upon applications for permission to exercise
thepowers enumerated in this section, the Comptroller of the
Currencymay take into consideration the amount of capital and
surplus ofthe applying bank, whether or not such capital and
surplus is suffi-cient under the circumstances of the case, the
needs of the commu-nity to be served, and any other facts and
circumstances that seemto him proper, and may grant or refuse the
application accordingly:Provided, That no permit shall be issued to
any national bankingassociation having a capital and surplus less
than the capital andsurplus required by State law of State banks,
trust companies, andcorporations exercising such powers.
(j) Any national banking association desiring to surrender
itsright to exercise the powers granted under this section, in
order torelieve itself of the necessity of complying with the
requirements ofthis section, or to have returned to it any
securities which it mayhave deposited with the State authorities
for the protection of pri-vate or court trusts, or for any other
purpose, may file with theComptroller of the Currency a certified
copy of a resolution of itsboard of directors signifying such
desire. Upon receipt of such reso-lution, the Comptroller of the
Currency, after satisfying himselfthat such bank has been relieved
in accordance with State law ofall duties as trustee, executory,
administrator, registrar of stocksand bonds, guardian of estates,
assignee, receiver, committee of es-tates of lunatics or other
fiduciary, under court, private, or otherappointments previously
accepted under authority of this section,may, in his discretion,
issue to such bank a certificate certifyingthat such bank is no
longer authorized to exercise the powersgranted by this section.
Upon the issuance of such a certificate bythe Comptroller of the
Currency, such bank (1) shall no longer besubject to the provisions
of this section or the regulations of theComptroller of the
Currency made pursuant thereto, (2) shall beentitled to have
returned to it any securities which it may havedeposited with the
State authorities for the protection of private orcourt trusts, and
(3) shall not exercise thereafter any of the powersgranted by this
section without first applying for and obtaining a
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9 Sec. 2ACT OF SEPTEMBER 28, 1962
new permit to exercise such powers pursuant to the provisions
ofthis section. The Comptroller of the Currency is authorized
andempowered to promulgate such regulations as he may deem
nec-essary to enforce compliance with the provisions of this
section andthe proper exercise of the powers granted therein.
(k)(1) In addition to the authority conferred by other law, if,
inthe opinion of the Comptroller of the Currency, a national
bankingassociation is unlawfully or unsoundly exercising, or has
unlawfullyor unsoundly exercised, or has failed for a period of
five consecutiveyears to exercise, the powers granted by this
section or otherwisefails or has failed to comply with the
requirements of this section,the Comptroller may issue and serve
upon the association a noticeof intent to revoke the authority of
the association to exercise thepowers granted by this section. The
notice shall contain a state-ment of the facts constituting the
alleged unlawful or unsoundexercise of powers, or failure to
exercise powers, or failure to com-ply, and shall fix a time and
place at which a hearing will be heldto determine whether an order
revoking authority to exercise suchpowers should issue against the
association.
(2) Such hearing shall be conducted in accordance with the
pro-visions of subsection (h) of section 8 of the Federal Deposit
Insur-ance Act (12 U.S.C. 1818(h)), and subject to judicial review
as pro-vided in such section, and shall be fixed for a date not
earlier thanthirty days nor later than sixty days after service of
such notice un-less an earlier or later date is set by the
Comptroller at the requestof any association so served.
(3) Unless the association so served shall appear at the
hearingby a duly authorized representative, it shall be deemed to
haveconsented to the issuance of the revocation order. In the event
ofsuch consent, or if upon the record made at any such hearing,
theComptroller shall find that any allegation specified in the
notice ofcharges has been established, the Comptroller may issue
and serveupon the association an order prohibiting it from
accepting anynew or additional trust accounts and revoking
authority to exerciseany and all powers granted by this section,
except that such ordershall permit the association to continue to
service all previouslyaccepted trust accounts pending their
expeditious divestiture ortermination.
(4) A revocation order shall become effective not earlier
thanthe expiration of thirty days after service of such order upon
theassociation so served (except in the case of a revocation
orderissued upon consent, which shall become effective at the time
speci-fied therein), and shall remain effective and enforceable,
except tosuch extent as it is stayed, modified, terminated, or set
aside byaction of the Comptroller or a reviewing court.
SEC. 2. 12 U.S.C. 92a note Nothing contained in this Actshall be
deemed to affect or curtail the right of any national bankto act in
fiduciary capacities under a permit granted before thedate of
enactment of this Act by the Board of Governors of the Fed-eral
Reserve System, nor to affect the validity of any
transactionsentered into at any time by any national bank pursuant
to suchpermit. On and after the date of enactment of this Act the
exerciseof fiduciary powers by national banks shall be subject to
the provi-sions of this Act and the requirements of regulations
issued by the
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10Sec. 2 ACT OF SEPTEMBER 28, 1962
Comptroller of the Currency pursuant to the authority granted
bythis Act.
* * * * * * *
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11
ACT OF OCTOBER 26, 1970
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13
1 Chapter 1 amended other laws.
ACT OF OCTOBER 26, 1970
(Public Law 91508)
AN ACT To amend the Federal Deposit Insurance Act to require
insured banks tomaintain certain records, to require that certain
transactions in United Statescurrency be reported to the Department
of the Treasury, and for other purposes.
Be it enacted by the Senate and House of Representatives of
theUnited States of America in Congress assembled,
TITLE IFINANCIAL RECORDKEEPING
Chapter Sec.1. INSURED BANKS AND INSURED INSTITUTIONS
................................................... 1012. OTHER
FINANCIAL INSTITUTIONS
.......................................................................
121
Chapter 1.INSURED BANKS AND INSUREDINSTITUTIONS 1
* * * * * * *
Chapter 2.OTHER FINANCIAL INSTITUTIONS
Sec.121. Congressional findings and purpose.122. Authority of
Secretary with respect to reports on ownership and control.123.
Authority of Secretary with respect to recordkeeping and
procedures.124. Injunctions.125. Civil penalties.126. Criminal
penalty.127. Additional criminal penalty in certain cases.128.
Compliance.129. Administrative procedure.
121. 12 U.S.C. 1951 Congressional findings and purposes(a) The
Congress finds that certain records maintained by busi-
nesses engaged in the functions described in section 123(b) of
thisAct have a high degree of usefulness in criminal, tax, and
regu-latory investigations and proceedings. The Congress further
findsthat the power to require reports of changes in the ownership,
con-trol, and managements of types of financial institutions
referred toin section 122 of this Act may be necessary for the same
purpose.
(b) It is the purpose of this chapter to require the
maintenanceof appropriate types of records and the making of
appropriate re-ports by such businesses in the United States where
such recordsor reports have a high degree of usefulness in
criminal, tax, or reg-ulatory investigations or proceedings.
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14 122 ACT OF OCTOBER 26, 1970
122. 12 U.S.C. 1952 Authority of Secretary with respect
toreports on ownership and control
Where the Secretary determines that the making of appro-priate
reports by uninsured banks or uninsured institutions of anytype
with respect to their ownership, control, and managementsand any
changes therein has a high degree of usefulness in crimi-nal, tax,
or regulatory investigations or proceedings, he may by reg-ulation
require such banks or institutions to make such reports ashe
determines in respect of such ownership, control, and manage-ments
and changes therein.
123. 12 U.S.C. 1953 Authority of Secretary with respect
torecordkeeping and procedures
(a) Where the Secretary determines that the maintenance
ofappropriate records and procedures by any uninsured bank or
un-insured institution, or any person engaging in the business of
car-rying on in the United States any of the functions referred to
insubsection (b) of this section, has a high degree of usefulness
incriminal, tax, or regulatory investigations or proceedings, he
mayby regulation require such bank, institution, or person
(1) to require, retain, or maintain, with respect to its
func-tions as an uninsured bank or uninsured institution or
itsfunctions referred to in subsection (b), any records or
evidenceof any type which the Secretary is authorized under section
21of the Federal Deposit Insurance Act to require insured banksto
require, retain, or maintain; and
(2) to maintain procedures to assure compliance withrequirements
imposed under this chapter. For the purposes ofany civil or
criminal penalty, a separate violation of anyrequirement under this
paragraph occurs with respect to eachday and each separate office,
branch, or place of business inwhich the violation occurs or
continues.(b) INSTITUTIONS SUBJECT TO RECORDKEEPING REQUIRE-
MENTS.The authority of the Secretary of the Treasury under
sub-section (a) extends to any financial institution (as defined in
section5312(a)(2) of title 31, United States Code), other than any
insuredbank (as defined in section 3(h) of the Federal Deposit
InsuranceAct) and any insured institution (as defined in section
401(a) of theNational Housing Act), and any partner, officer,
director, or em-ployee of any such financial institution.
(c) ACCEPTANCE OF AUTOMATED RECORDS.The Secretary shallpermit an
uninsured bank or financial institution to retain ormaintain
records referred to in subsection (a) in electronic or auto-mated
form, subject to terms and conditions established by the
Sec-retary.
124. 12 U.S.C. 1954 InjunctionsWhenever it appears to the
Secretary that any person has en-
gaged, is engaged, or is about to engage in any acts or
practicesconstituting a violation of any regulation under this
chapter, hemay in his discretion bring an action, in the proper
district courtof the United States or the proper United States
court of any terri-tory or other place subject to the jurisdiction
of the United States,
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15 128ACT OF OCTOBER 26, 1970
to enjoin such acts or practices, and upon a proper showing a
per-manent or temporary injunction or restraining order shall
begranted without bond. Upon application of the Secretary, any
suchcourt may also issue mandatory injunctions commanding any
per-son to comply with any regulation of the Secretary under this
chap-ter.
125. 12 U.S.C. 1955 Civil penalties(a) For each willful or
grossly negligent violation of any regula-
tion under this chapter, the Secretary may assess upon any
personto which the regulation applies, or any person willfully
causing aviolation of the regulation, and, if such person is a
partnership, cor-poration, or other entity, upon any partner,
director, officer, or em-ployee thereof who willfully or through
gross negligence partici-pates in the violation, a civil penalty
not exceeding $10,000.
(b) In the event of the failure of any person to pay any
penaltyassessed under this section, a civil action for the recovery
thereofmay, in the discretion of the Secretary, be brought in the
name ofthe United States.
126. 12 U.S.C. 1956 Criminal penaltyWhoever willfully violates
any regulation under this chapter
shall be fined not more than $1,000 or imprisoned not more
thanone year, or both.
127. 12 U.S.C. 1957 Additional criminal penalty in
certaincases
Whoever willfully violates, or willfully causes a violation of
anyregulation under this chapter, section 21 of the Federal
DepositInsurance Act, or section 411 of the National Housing Act,
wherethe violation is committed in furtherance of the commission of
anyviolation of Federal law punishable by imprisonment for more
thanone year, shall be fined not more than $10,000 or imprisoned
notmore than five years, or both.
128. 12 U.S.C. 1958 ComplianceThe Secretary shall have the
responsibility to assure compli-
ance with the requirements of this title and may delegate
suchresponsibility to the appropriate bank supervisory agency, or
othersupervisory agency.
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16 129 ACT OF OCTOBER 26, 1970
1 Title II of this Act was repealed by section 5(b) of Public
Law 97258 but the substance ofsuch title was incorporated into
subchapter II of chapter 53 of title 31, United States Code.
129. 12 U.S.C. 1959 Administrative procedureThe administrative
procedure and judicial review provisions of
subchapter II of chapter 5 and chapter 7 of title 5, United
StatesCode, shall apply to all proceedings under this chapter,
section 21of the Federal Deposit Insurance Act, and section 411 of
the Na-tional Housing Act.
TITLE IIREPORTS OF CURRENCY AND FOREIGNTRANSACTIONS 1
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17
ACT OF OCTOBER 28, 1974
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19
1 Section 744(j) of the Financial Institutions Reform, Recovery,
and Enforcement Act of 1989(P.L. 10173) amended section 3 of title
I of Public Law 93495 by striking Federal Home LoanBank Board and
inserting Director of the Office of Thrift Supervision. There is no
section 3in such Public Law. The amendment probably should have
been made to section 111 of suchlaw.
ACT OF OCTOBER 28, 1974
AN ACT To increase deposit insurance from $20,000 to $40,000, to
provide full in-surance for public unit deposits of $100,000 per
account, to establish a NationalCommission on Electronic Fund
Transfers, and for other purposes.
Be it enacted by the Senate and House of Representatives of
theUnited States of America in Congress assembled,
TITLE IAMENDMENTS TO AND EXTENSIONS OF PROVI-SIONS OF LAW
RELATING TO FEDERAL REGULATION OFDEPOSITORY INSTITUTIONS
* * * * * * *
INDEPENDENCE OF FINANCIAL REGULATORY AGENCIES
SEC. 111.1 12 U.S.C. 250 No officer or agency of the
UnitedStates shall have any authority to require the Securities and
Ex-change Commission, the Board of Governors of the Federal
ReserveSystem, the Federal Deposit Insurance Corporation, the
Comp-troller of the Currency, the Director of the Office of Thrift
Super-vision, the Federal Housing Finance Board, or the National
CreditUnion Administration to submit legislative recommendations,
ortestimony, or comments on legislation, to any officer or agency
ofthe United States for approval, comments, or review, prior to
thesubmission of such recommendations, testimony, or comments tothe
Congress if such recommendations, testimony, or comments tothe
Congress include a statement indicating that the views ex-pressed
therein are those of the agency submitting them and do
notnecessarily represent the views of the President.
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21
ALTERNATIVE MORTGAGE TRANSACTION PARITY ACTOF 1982
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23
1 The Alternative Mortgage Transaction Parity Act of 1982 was
enacted as title VIII of theGarn-St Germain Depository Institutions
Act of 1982.
ALTERNATIVE MORTGAGE TRANSACTION PARITY ACTOF 1982
TITLE VIIIALTERNATIVE MORTGAGE TRANSACTIONS 1
SHORT TITLE
SEC. 801. 12 U.S.C. 3801 note This title may be cited as
theAlternative Mortgage Transaction Parity Act of 1982.
FINDINGS AND PURPOSE.
SEC. 802. 12 U.S.C. 3801 (a) The Congress hereby findsthat
(1) increasingly volatile and dynamic changes in interestrates
have seriously impaired the ability of housing creditorsto provide
consumers with fixed-term, fixed-rate credit securedby interests in
real property, cooperative housing, manufac-tured homes, and other
dwellings;
(2) alternative mortgage transactions are essential to
theprovision of an adequate supply of credit secured by
residentialproperty necessary to meet the demand expected during
the1980s; and
(3) the Comptroller of the Currency, the National CreditUnion
Administration, and the Director of the Office of ThriftSupervision
have recognized the importance of alternativemortgage transactions
and have adopted regulations author-izing federally chartered
depository institutions to engage inalternative mortgage
financing.(b) It is the purpose of this title to eliminate the
discriminatory
impact that those regulations have upon nonfederally
charteredhousing creditors and provide them with parity with
federally char-tered institutions by authorizing all housing
creditors to make, pur-chase, and enforce alternative mortgage
transactions so long as thetransactions are in conformity with the
regulations issued by theFederal agencies.
DEFINITIONS
SEC. 803. 12 U.S.C. 3802 As used in this title(1) the term
alternative mortgage transaction means a
loan or credit sale secured by an interest in residential
realproperty, a dwelling, all stock allocated to a dwelling unit
ina residential cooperative housing corporation, or a
residentialmanufactured home (as that term is defined in section
603(6)of the National Manufactured Home Construction and
SafetyStandards Act of 1974)
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24Sec. 804 ALTERNATIVE MORTGAGE TRANSACTION PARITY ACT
(A) in which the interest rate or finance charge maybe adjusted
or renegotiated;
(B) involving a fixed-rate, but which implicitly permitsrate
adjustments by having the debt mature at the end ofan interval
shorter than the term of the amortizationschedule; or
(C) involving any similar type of rate, method of deter-mining
return, term, repayment, or other variation notcommon to
traditional fixed-rate, fixed-term transactions,including without
limitation, transactions that involve thesharing of equity or
appreciation;
described and defined by applicable regulation; and(2) the term
housing creditor means
(A) a depository institution, as defined in section501(a)(2) of
the Depository Institutions Deregulation andMonetary Control Act of
1980;
(B) a lender approved by the Secretary of Housing andUrban
Development for participation in any mortgageinsurance program
under the National Housing Act;
(C) any person who regularly makes loans, creditsales, or
advances secured by interests in properties re-ferred to in
paragraph (1); or
(D) any transferee of any of them.A person is not a housing
creditor with respect to a specificalternative mortgage transaction
if, except for this title, inorder to enter into that transaction,
the person would be re-quired to comply with licensing requirements
imposed underState law, unless such person is licensed under
applicableState law and such person remains, or becomes, subject to
theapplicable regulatory requirements and enforcement mecha-nisms
provided by State law.
ALTERNATIVE MORTGAGE AUTHORITY.
SEC. 804. 12 U.S.C. 3803 (a) In order to prevent discrimina-tion
against State-chartered depository institutions, and other
non-federally chartered housing creditors, with respect to making,
pur-chasing, and enforcing alternative mortgage transactions,
housingcreditors may make, purchase, and enforce alternative
mortgagetransactions, except that this section shall apply
(1) with respect to banks, only to transactions made
inaccordance with regulations governing alternative
mortgagetransactions as issued by the Comptroller of the Currency
fornational banks, to the extent that such regulations are
author-ized by rulemaking authority granted to the Comptroller of
theCurrency with regard to national banks under laws other thanthis
section;
(2) with respect to credit unions, only to transactions madein
accordance with regulations governing alternative
mortgagetransactions as issued by the National Credit Union
Adminis-tration Board for Federal credit unions, to the extent that
suchregulations are authorized by rulemaking authority granted
tothe National Credit Union Administration with regard to Fed-eral
credit unions under laws other than this section; and
-
25 Sec. 805ALTERNATIVE MORTGAGE TRANSACTION PARITY ACT
(3) with respect to all other housing creditors,
includingwithout limitation, savings and loan associations, mutual
sav-ings banks, and savings banks, only to transactions made
inaccordance with regulations governing alternative
mortgagetransactions as issued by the Director of the Office of
ThriftSupervision for federally charter savings and loan
associations,to the extent that such regulations are authorized by
rule-making authority granted to the Director of the Office of
ThriftSupervision with regard to federally chartered savings
andloan associations under laws other than this section.(b) For the
purpose of determining the applicability of this sec-
tion, an alternative mortgage transaction shall be deemed to
bemade in accordance with the applicable regulation
notwithstandingthe housing creditors failure to comply with the
regulations, if
(1) the transaction is in substantial compliance with
theregulation; and
(2) within 60 days of discovering any error, the housingcredit
correct such error, including making appropriate adjust-ments, if
any, to the account.(c) An alternative mortgage transaction, may be
made by a
housing creditor in accordance with this section,
notwithstandingany State constitution, law, or regulation.
APPLICABILITY
SEC. 805. 12 U.S.C. 3804 (a) The provisions of section 804shall
not apply to any alternative mortgage transaction in anyState made
on or after the effective date (if such effective date oc-curs on
or after the effective date of this title and prior to a date3
years after the effective date of this title) of a State law or a
cer-tification that the voters of such State have voted in favor of
anyprovision, constitutional or otherwise, which states explicitly
andby its terms that such State does not want the preemption
providedin section 804 to apply with respect to alternative
mortgage trans-actions subject to the laws of such State, except
that section 804shall continue to apply to
(1) any alternative mortgage transaction undertaken on orafter
such date pursuant to an agreement to undertake suchalternative
mortgage transaction which was entered into on orafter the
effective date of this title and prior to such later date(the
preemption period); and
(2) any renewal, extension, refinancing, or other modifica-tion
of an alternative mortgage transaction that was enteredinto during
the preemption period.(b) An alternative mortgage transaction shall
be deemed to
have been undertaken during the preemption period to which
thissection applied if it
(1) is funded or extended in whole or in part during
thepreemption period, regardless of whether pursuant to a
com-mitment or other agreement therefor made prior to that
period;or
(2) is a renewal, extension, refinancing, or other modifica-tion
of an alternative mortgage transaction entered into beforethe
preemption period and such renewal, extension, or other
-
26Sec. 806 ALTERNATIVE MORTGAGE TRANSACTION PARITY ACT
modification is made during such period with the written
con-sent of any person obligated to repay such credit.
RELATION TO OTHER LAW
SEC. 806. 12 U.S.C. 3805 Section 501(c)(1) of the
DepositoryInstitutions Deregulation and Monetary Control Act of
1980 shallnot apply to transactions which are subject to this
title.
EFFECTIVE DATE
SEC. 807. 12 U.S.C. 3801 note (a) This title shall be
effectiveupon enactment.
(b) Within 60 days of the enactment of this title, the
Comp-troller of the Currency, the National Credit Union
Administration,and the Federal Home Loan Bank Board shall identify,
describe,publish those portions or provisions of their respective
regulationsthat are inappropriate for (and thus inapplicable to),
or that needto be conformed for the use of, the nonfederally
chartered housingcreditors to which their respective regulations
apply, includingwithout limitation, making necessary changes in
terminology toconform the regulatory and disclosure provisions to
those moretypically associated with various types of transactions
includingcredit sales.
-
27
BANK CONSERVATION ACT
-
29
1 So in law. Probably should be take.
BANK CONSERVATION ACT
SEC. 201. 12 U.S.C. 201 This title may be cited as the
BankConservation Act.
SEC. 202. 12 U.S.C. 202 As used in this title, the termbank
means (1) any national banking association or any otherfinancial
institution chartered or licensed under Federal law andsubject to
the supervision of the Comptroller of the Currency, and(2) any bank
or trust company located in the District of Columbiaand operating
under the supervision of the Comptroller of the Cur-rency; the term
voluntary dissolution and liquidation means atransaction pursuant
to section 5220 of the Revised Statutes thatinvolves the assumption
of the banks insured deposit liabilitiesand the sale of the bank,
or of control of the bank, as a going con-cern; and the term State
means any State, Territory, or posses-sion of the United States,
and the Canal Zone.SEC. 203. 12 U.S.C. 203 APPOINTMENT OF
CONSERVATOR.
(a) APPOINTMENT.The Comptroller of the Currency may,without
prior notice or hearings, appoint a conservator (which maybe the
Federal Deposit Insurance Corporation) to the 1 possessionand
control of a bank whenever the Comptroller of the
Currencydetermines that 1 or more of the grounds specified in
section11(c)(5) of the Federal Deposit Insurance Act exist.
(b) JUDICIAL REVIEW.(1) IN GENERAL.Not later than 20 days after
the initial
appointment of a conservator pursuant to this section, thebank
may bring an action in the United States district courtfor the
judicial district in which the home office of such bankis located,
or in the United States District Court for the Dis-trict of
Columbia, for an order requiring the Comptroller to ter-minate the
appointment of the conservator, and the court,upon the merits,
shall dismiss such action or shall direct theComptroller to
terminate the appointment of such conservator.The Comptrollers
decision to appoint a conservator pursuantto this section shall be
set aside only if the court finds thatsuch decision was arbitrary,
capricious, an abuse of discretion,or otherwise not in accordance
with law.
(2) STAY.The conservator may request that any judicialaction or
proceeding to which the conservator or the bank is ormay become a
party be stayed for a period of up to 45 daysafter the appointment
of the conservator. Upon petition, thecourt shall grant such stay
as to all parties.
(3) ACTIONS AND ORDERS.Except as otherwise provided inthis
subsection, no court may take any action regarding the re-moval of
a conservator, or restrain, or affect the exercise ofpowers or
functions of a conservator. A court, upon application
-
30Sec. 204 BANK CONSERVATION ACT
by the Comptroller, shall have jurisdiction to enforce an
orderof the Comptroller relating to
(A) the conservatorship and the bank in conservator-ship, or
(B) restraining or affecting the exercise of powers orfunctions
of a conservator.
(c) ADDITIONAL GROUNDS FOR APPOINTMENT.In addition tothe
foregoing provisions, the Comptroller may appoint a conser-vator
for a bank if
(1) the bank, by an affirmative vote of a majority of itsboard
of directors or by an affirmative vote of a majority of
itsshareholders, consents to such appointment, or
(2) the Federal Deposit Insurance Corporation terminatesthe
banks status as an insured bank.
The appointment of a conservator pursuant to this subsection
shallnot be subject to review.
(d) EXCLUSIVE AUTHORITY.The Comptroller shall have exclu-sive
power and jurisdiction to appoint a conservator for a bank.Whenever
the Comptroller appoints a conservator for any bank, theComptroller
may appoint the Federal Deposit Insurance Corpora-tion conservator
for such bank. The Federal Deposit Insurance Cor-poration, as such
conservator, shall have all the powers grantedunder the Federal
Deposit Insurance Act, and (when not incon-sistent therewith) any
other rights, powers, and privileges pos-sessed by conservators of
banks under this Act and any other pro-vision of law. The
Comptroller may also appoint another person asconservator, who
shall be subject to the provisions of this Act.
(e) REPLACEMENT OF CONSERVATOR.The Comptroller may,without
notice or hearing, replace a conservator with another con-servator.
Such replacement shall not affect the banks right undersubsection
(b) to obtain judicial review of the Comptrollers originaldecision
to appoint a conservator.SEC. 204. 12 U.S.C. 204 EXAMINATIONS.
The Comptroller of the Currency (in consultation with theBoard
of Directors of the Federal Deposit Insurance Corporationwhen the
Corporation is appointed conservator) is authorized to ex-amine and
supervise the bank in conservatorship as long as thebank continues
to operate as a going concern. The Comptroller mayuse reports and
other information provided by the Federal DepositInsurance
Corporation for this purpose.SEC. 205. 12 U.S.C. 205 TERMINATION OF
CONSERVATORSHIP.
(a) GENERAL RULE.At any time the Comptroller becomes sat-isfied
that it may safely be done and that it would be in the
publicinterest, the Comptroller (with the agreement of the Board
ofDirectors of the Federal Deposit Insurance Corporation when
theCorporation has been appointed conservator) may
(1) terminate the conservatorship and permit the involvedbank to
resume the transaction of its business subject to suchterms,
conditions, and limitations as the Comptroller may pre-scribe;
or
(2) terminate the conservatorship upon a sale, merger,
con-solidation, purchase and assumption, change in control, or
vol-untary dissolution and liquidation of the involved bank.
-
31 Sec. 206BANK CONSERVATION ACT
1 Indentation so in law
(b) OTHER GROUNDS FOR TERMINATION.The Comptroller alsomay
terminate the conservatorship upon the appointment of a re-ceiver
pursuant to the first section of the Act of June 30, 1876 (12U.S.C.
191).
(c) ENFORCEMENT UNDER FEDERAL DEPOSIT INSURANCE ACT.Such terms,
conditions, and limitations as may be prescribed undersubsection
(a)(1) shall be enforceable under the provisions of sec-tion 8(i)
of the Federal Deposit Insurance Act, to the same extentas an order
issued pursuant to section 8(b) of the Federal DepositInsurance Act
which has become final. The bank may bring an ac-tion in the United
States district court for the judicial district inwhich the home
office of such bank is located or in the UnitedStates District
Court for the District of Columbia for an order re-quiring the
Comptroller to terminate the order. An action for judi-cial review
of the terms, conditions, and limitations may not becommenced later
than 20 days from the date of the termination ofthe conservatorship
or the imposition of the order, whichever islater.
(d) ACTION UPON TERMINATION.(1) IN GENERAL.Upon termination of
the conservatorship
under subsection (a)(2), the Federal Deposit Insurance
Cor-poration, as conservator, or when another person is
appointedconservator, such other person, shall conclude the affairs
of theconservatorship in accordance with paragraph (2).(2) 1
DEPOSIT AND DISTRIBUTION OF PROCEEDS.(A) Within 180
days of the sale, merger, consolidation, purchase and
assumption,change in control, or voluntary dissolution and
liquidation, the con-servator shall deposit all net proceeds
received from the trans-action, less any outstanding expenses of
the conservatorship, withthe United States district court for the
judicial district in which thehome office of such bank is located
and shall cause notice to bepublished for three consecutive months
and notify by mail allknown and remaining creditors and
shareholders. Within 60 daysthereafter, any depositor, creditor, or
other claimant of the bank,or any shareholder of the bank may bring
an action in interpleaderin that court for distribution of the
proceeds. The district courtshall distribute such funds equitably.
If no such action is institutedwithin one year after the date the
funds are deposited with the dis-trict court, title to such net
proceeds shall revert to the UnitedStates and the district court
shall remit the funds to the Treasuryof the United States.
(B) The conservator shall be deemed to have discharged
allresponsibility of the conservatorship upon the deposit of the
pro-ceeds with the district court and giving the required
notifications.SEC. 206. 12 U.S.C. 206 CONSERVATOR; POWERS AND
DUTIES.
(a) GENERAL POWERS.A conservator shall have all the powersof the
shareholders, directors, and officers of the bank and may op-erate
the bank in its own name unless the Comptroller in the orderof
appointment limits the conservators authority.
(b) SUBJECT TO RULES OF COMPTROLLER.The conservatorshall be
subject to such rules, regulations, and orders as the Comp-troller
from time to time deems appropriate; and, except as other-
-
32Sec. 209 BANK CONSERVATION ACT
1 Since the date of the enactment of the Banking Act of 1935,
the Federal Reserve Board hasbeen known as the Board of Governors
of the Federal Reserve System (see section 203(a) of suchAct, 49
Stat. 704).
wise specifically provided in such rules, regulations, or orders
or insection 209 of this Act, shall have the same rights and
privilegesand be subject to the same duties, restrictions,
penalties, condi-tions, and limitations as apply to directors,
officers, or employeesof a national bank.
(c) PAYMENT OF DEPOSITORS AND CREDITORS.The Comptrollermay
require the conservator to set aside and make available
forwithdrawal by depositors and payment to other creditors
suchamounts as in the opinion of the Comptroller may safely be
usedfor that purpose. All depositors and creditors who are
similarly sit-uated shall be treated in the same manner.
(d) COMPENSATION OF CONSERVATOR AND EMPLOYEES.Theconservator and
professional employees appointed to represent orassist the
conservator shall not be paid amounts greater than arepayable to
employees of the Federal Government for similar serv-ices, except
that the Comptroller of the Currency may authorizepayment at higher
rates (but not in excess of rates prevailing inthe private sector),
if the Comptroller determines that paying suchhigher rates is
necessary in order to recruit and retain competentpersonnel.
(e) EXPENSES.All expenses of any such conservatorship shallbe
paid by the bank and shall be a lien upon the bank which shallbe
prior to any other lien.
207 and 208 repealed by section 808 of P.L. 10173 (103Stat.
446).SEC. 209. 12 U.S.C. 209 LIABILITY PROTECTION.
(a) FEDERAL AGENCY AND EMPLOYEES.In any case in whichthe
conservator is a Federal agency or an employee of the Govern-ment,
the provisions of chapters 161 and 171 of title 28, UnitedStates
Code, shall apply with respect to such conservators liabilityfor
acts or omissions performed pursuant to and in the course ofthe
duties and responsibilities of the conservatorship.
(b) OTHER CONSERVATORS.In any case where the conservatoris not a
conservator described in subsection (a), the conservatorshall not
be liable for damages in tort or otherwise for acts or omis-sions
performed pursuant to and in the course of the duties
andresponsibilities of the conservatorship, unless such acts or
omis-sions constitute gross negligence, including any similar
conduct orany form of intentional tortious conduct, as determined
by a court.
(c) INDEMNIFICATION.The Comptroller shall have authority
toindemnify the conservator on such terms as the Comptroller
deemsproper.
SEC. 210. 12 U.S.C. 210 Nothing in this title shall be
con-strued to impair in any manner any powers of the President,
theSecretary of the Treasury, the Comptroller of the Currency, or
theFederal Reserve Board 1.
-
33 Sec. 211BANK CONSERVATION ACT
SEC. 211. 12 U.S.C. 211 RULES AND REGULATIONS.(a) IN GENERAL.The
Comptroller of the Currency may pre-
scribe such rules and regulations as the Comptroller may
deemnecessary to carry out the provisions of this Act.
(b) F.D.I.C. AS CONSERVATOR.In any case in which the Fed-eral
Deposit Insurance Corporation is the conservator, any rules
orregulations prescribed by the Comptroller shall be consistent
withany rules and regulations prescribed by the Federal Deposit
Insur-ance Corporation pursuant to the Federal Deposit Insurance
Act.
-
35
BANK ENTERPRISE ACT OF 1991
-
37
1 This Act was enacted as subtitle C of title II of the Federal
Deposit Insurance CorporationImprovement Act of 1991.
Subtitle CBank Enterprise Act 1
SEC. 231. 12 U.S.C. 1811 nt. SHORT TITLE.This subtitle may be
cited as the Bank Enterprise Act of
1991.SEC. 232. 12 U.S.C. 1834 REDUCED ASSESSMENT RATE FOR
DEPOS-
ITS ATTRIBUTABLE TO LIFELINE ACCOUNTS.(a) QUALIFICATION OF
LIFELINE ACCOUNTS BY FEDERAL RE-
SERVE BOARD.(1) IN GENERAL.The Board of Governors of the
Federal
Reserve System, and the Federal Deposit Insurance Corpora-tion
shall establish minimum requirements for accounts pro-viding basic
transaction services for consumers at insureddepository
institutions in order for such accounts to qualify aslifeline
accounts for purposes of this section and section7(b)(2)(H) of the
Federal Deposit Insurance Act.
(2) FACTORS TO BE CONSIDERED.In determining the min-imum
requirements under paragraph (1) for lifeline accountsat insured
depository institutions, the Board and the Corpora-tion shall
consider the following factors:
(A) Whether the account is available to provide basictransaction
services for individuals who maintain a bal-ance of less than
$1,000 or such other amount which theBoard may determine to be
appropriate.
(B) Whether any service charges or fees to which theaccount is
subject, if any, for routine transactions do notexceed a minimal
amount.
(C) Whether any minimum balance or minimum open-ing requirement
to which the account is subject, if any, isnot more than a minimal
amount.
(D) Whether checks, negotiable orders of withdrawal,or similar
instruments for making payments or othertransfers to third parties
may be drawn on the account.
(E) Whether the depositor is permitted to make morethan a
minimal number of withdrawals from the accounteach month by any
means described in subparagraph (D)or any other means.
(F) Whether a monthly statement itemizing all trans-actions for
the monthly reporting period is made availableto the depositor with
respect to such account or a passbookis provided in which all
transactions with respect to suchaccount are recorded.
-
38Sec. 233 BANK ENTERPRISE ACT OF 1991
1 Probably should strike for. See section 114(c)(1)(A) of P.L.
103325.
(G) Whether depositors are permitted access to tellersat the
institution for conducting transactions with respectto such
account.
(H) Whether other account relationships with theinstitution are
required in order to open any such account.
(I) Whether individuals are required to meet any pre-requisite
which discriminates against low-income individ-uals in order to
open such account.
(J) Such other factors as the Board may determine tobe
appropriate.(3) DEFINITIONS.For purposes of this subsection
(A) BOARD.The term Board means the Board ofGovernors of the
Federal Reserve System.
(B) INSURED DEPOSITORY INSTITUTION.The term in-sured depository
institution has the meaning given tosuch term in section 3(c)(2) of
the Federal Deposit Insur-ance Act.
(C) LIFELINE ACCOUNT.The term lifeline accountmeans any
transaction account (as defined in section19(b)(1)(C) of the
Federal Reserve Act) which meets theminimum requirements
established by the Board underthis subsection.
Subsection (b) amended other provisions of law.(c) AVAILABILITY
OF FUNDS.The provisions of this section
shall not take effect until appropriations are specifically
providedin advance. There are hereby authorized to be appropriated
suchsums as may be necessary to carry out the provisions of this
sec-tion.SEC. 233. 12 U.S.C. 1834a ASSESSMENT CREDITS FOR
QUALIFYING
ACTIVITIES RELATING TO DISTRESSED COMMUNITIES.(a) DETERMINATION
OF CREDITS FOR INCREASES IN COMMUNITY
ENTERPRISE ACTIVITIES.(1) IN GENERAL.The Community Enterprise
Assessment
Credit Board established under subsection (d) shall
issueguidelines for insured depository institutions eligible
underthis subsection for any community enterprise assessmentcredit
with respect to any semiannual period. Such guidelinesshall
(A) designate the eligibility requirements for any insti-tution
meeting applicable capital standards to receive anassessment credit
under section 7(b)(7) of the Federal De-posit Insurance Act;
and
(B) determine the community enterprise assessmentcredit
available to any eligible institution under paragraph(3).(2)
QUALIFYING ACTIVITIES.An insured depository institu-
tion may apply for 1 for any community enterprise
assessmentcredit for any semiannual period for
(A) the amount, during such period, of new origina-tions of
qualified loans and other assistance provided forlow- and
moderate-income persons in distressed commu-nities, or enterprises
integrally involved with such neigh-
-
39 Sec. 233BANK ENTERPRISE ACT OF 1991
borhoods, which the Board determines are qualified to betaken
into account for purposes of this subsection;
(B) the amount, during such period, of depositsaccepted from
persons domiciled in the distressed commu-nity, at any office of
the institution (including any branch)located in any qualified
distressed community, and neworiginations of any loans and other
financial assistancemade within that community, except that in no
case shallthe credit for deposits at any institution or branch
exceedthe credit for loans and other financial assistance by
thebank or branch in the distressed community; and
(C) any increase during the period in the amount ofnew equity
investments in community development finan-cial institutions.(3)
AMOUNT OF ASSESSMENT CREDIT.The amount of any
community enterprise assessment credit available under sec-tion
7(b)(7) of the Federal Deposit Insurance Act for any in-sured
depository institution, or a qualified portion thereof,shall be the
amount which is equal to 5 percent, in the caseof an institution
which does not meet the community develop-ment organization
requirements under section 234, and 15 per-cent, in the case of an
institution, or a qualified portionthereof, which meets such
requirements (or any percentagedesignated under paragraph (5))
of
(A) for the first full semiannual period in which com-munity
enterprise assessment credits are available, thesum of
(i) the amounts of assets described in paragraph(2)(A); and
(ii) the amounts of deposits, loans, and otherfinancial
assistance described in paragraph (2)(B); and(B) for any subsequent
semiannual period, the sum
of(i) any increase during such period in the amount
of assets described in paragraph (2)(A) that has beendeemed
eligible for credit by the Board; and
(ii) any increase during such period in theamounts of deposits,
loans, and other financial assist-ance described in paragraph
(2)(B) that has beendeemed eligible for credit by the Board.
(4) DETERMINATION OF QUALIFIED LOANS AND OTHER FINAN-CIAL
ASSISTANCE.Except as provided in paragraph (6), thetypes of loans
and other assistance which the Board may deter-mine to be qualified
to be taken into account under paragraph(2)(A) for purposes of the
community enterprise assessmentcredit, may include the
following:
(A) Loans insured or guaranteed by the Secretary ofHousing and
Urban Development, the Secretary of theDepartment of Veterans
Affairs, the Administrator of theSmall Business Administration, and
the Secretary of Agri-culture.
(B) Loans or financing provided in connection withactivities
assisted by the Administrator of the Small Busi-ness Administration
or any small business investment
-
40Sec. 233 BANK ENTERPRISE ACT OF 1991
company and investments in small business
investmentcompanies.
(C) Loans or financing provided in connection with
anyneighborhood housing service program assisted under
theNeighborhood Reinvestment Corporation Act.
(D) Loans or financing provided in connection withany activities
assisted under the community developmentblock grant program under
title I of the Housing and Com-munity Development Act of 1974.
(E) Loans or financing provided in connection withactivities
assisted under title II of the Cranston-GonzalezNational Affordable
Housing Act.
(F) Loans or financing provided in connection with
ahomeownership program assisted under title III of theUnited States
Housing Act of 1937 or subtitle B or C oftitle IV of the
Cranston-Gonzalez National AffordableHousing Act.
(G) Financial assistance provided through communitydevelopment
corporations.
(H) Federal and State programs providing interestrate assistance
for homeowners.
(I) Extensions of credit to nonprofit developers or pur-chasers
of low-income housing and small business develop-ments.
(J) In the case of members of any Federal home loanbank,
participation in the community investment fund pro-gram established
by the Federal home loan banks.
(K) Conventional mortgages targeted to low- or mod-erate-income
persons.
(L) Loans made for the purpose of developing orsupporting
(i) commercial facilities that enhance revitaliza-tion,
community stability, or job creation and retentionefforts;
(ii) business creation and expansion efforts that(I) create or
retain jobs for low-income people;(II) enhance the availability of
products and
services to low-income people; or(III) create or retain
businesses owned by low-
income people or residents of a targeted area;(iii) community
facilities that provide benefits to
low-income people or enhance community stability;(iv) home
ownership opportunities that are afford-
able to low-income households;(v) rental housing that is
principally affordable to
low-income households; and(vi) other activities deemed
appropriate by the
Board.(M) The provision of technical assistance to residents
of qualified distressed communities in managing their per-sonal
finances through consumer education programseither sponsored or
offered by insured depository institu-tions.
-
41 Sec. 233BANK ENTERPRISE ACT OF 1991
(N) The provision of technical assistance and con-sulting
services to newly formed small businesses locatedin qualified
distressed communities.
(O) The provision of technical assistance to, or serv-icing the
loans of low- or moderate-income homeownersand homeowners located
in qualified distressed commu-nities.(5) ADJUSTMENT OF
PERCENTAGE.The Board may in-
crease or decrease the percentage referred to in paragraph(3)(A)
for determining the amount of any community enterpriseassessment
credit pursuant to such paragraph, except that thepercentage
established for insured depository institutionswhich meet the
community development organization require-ments under section 234
shall not be less than 3 times theamount of the percentage
applicable for insured depositoryinstitutions which do not meet
such requirements.
(6) CERTAIN INVESTMENTS NOT ELIGIBLE TO BE TAKEN
INTOACCOUNT.Loans, financial assistance, and equity investmentsmade
by any insured depository institution that are not the re-sult of
originations by the institution shall not be taken intoaccount for
purposes of determining the amount of any creditpursuant to this
subsection.
(7) QUANTITATIVE ANALYSIS OF TECHNICAL ASSISTANCE.The Board may
establish guidelines for analyzing the technicalassistance
described in subparagraphs (M), (N), and (O) ofparagraph (4) for
the purpose of quantifying the results of suchassistance in
determining the amount of any communityassessment credit under this
subsection.(b) QUALIFIED DISTRESSED COMMUNITY DEFINED.
(1) IN GENERAL.For purposes of this section, the termqualified
distressed community means any neighborhood orcommunity which
(A) meets the minimum area requirements underparagraph (3) and
the eligibility requirements of para-graph (4); and
(B) is designated as a distressed community by any in-sured
depository institution in accordance with paragraph(2) and such
designation is not disapproved under suchparagraph.(2) DESIGNATION
REQUIREMENTS.
(A) NOTICE OF DESIGNATION.(i) NOTICE TO AGENCY.Upon designating
an area
as a qualified distressed community, an insureddepository
institution shall notify the appropriate Fed-eral banking agency of
the designation.
(ii) PUBLIC NOTICE.Upon the effective date ofany designation of
an area as a qualified distressedcommunity, an insured depository
institution shallpublish a notice of such designation in major
news-papers and other community publications which servesuch
area.(B) AGENCY DUTIES RELATING TO DESIGNATIONS.
(i) PROVIDING INFORMATION.At the request ofany insured
depository institution, the appropriate
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42Sec. 233 BANK ENTERPRISE ACT OF 1991
Federal banking agency shall provide to the institu-tion
appropriate information to assist the institutionto identify and
designate a qualified distressed com-munity.
(ii) PERIOD FOR DISAPPROVAL.Any notice receivedby the
appropriate Federal banking agency from anyinsured depository
institution under subparagraph(A)(i) shall take effect at the end
of the 90-day periodbeginning on the date such notice is received
unlesswritten notice of the approval or disapproval of the
ap-plication by the agency is provided to the institutionbefore the
end of such period.
(3) MINIMUM AREA REQUIREMENTS.For purposes of thissubsection, an
area meets the requirements of this paragraphif
(A) the area is within the jurisdiction of 1 unit of gen-eral
local government;
(B) the boundary of the area is contiguous; and(C) the area
(i) has a population, as determined by the most re-cent census
data available, of not less than
(I) 4,000, if any portion of such area is locatedwithin a
metropolitan statistical area (as des-ignated by the Director of
the Office of Manage-ment and Budget) with a population of 50,000
ormore; or
(II) 1,000, in any other case; or(ii) is entirely within an
Indian reservation (as
determined by the Secretary of the Interior).(4) ELIGIBILITY
REQUIREMENTS.For purposes of this sub-
section, an area meets the requirements of this paragraph ifthe
following criteria are met:
(A) At least 30 percent of the residents residing in thearea
have incomes which are less than the national pov-erty level.
(B) The unemployment rate for the area is 112 timesgreater than
the national average (as determined by theBureau of Labor
Statistics most recent figures).
(C) Such additional eligibility requirements as theBoard may, in
its discretion, deem necessary to carry outthe provisions of this
subtitle.
[Subsection (c) amended other provisions of law.](d) COMMUNITY
ENTERPRISE ASSESSMENT CREDIT BOARD.
(1) ESTABLISHMENT.There is hereby established theCommunity
Enterprise Assessment Credit Board.
(2) NUMBER AND APPOINTMENT.The Board shall be com-posed of 5
members as follows:
(A) The Secretary of the Treasury or a designee of
theSecretary.
(B) The Secretary of Housing and Urban Developmentor a designee
of the Secretary.
(C) The Chairperson of the Federal Deposit InsuranceCorporation
or a designee of the Chairperson.
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43 Sec. 233BANK ENTERPRISE ACT OF 1991
(D) 2 individuals appointed by the President fromamong
individuals who represent community organiza-tions.(3) TERMS.
(A) APPOINTED MEMBERS.Each appointed membershall be appointed
for a term of 5 years.
(B) INTERIM APPOINTMENT.Any member appointed tofill a vacancy
occurring before the expiration of the termto which such members
predecessor was appointed shallbe appointed only for the remainder
of such term.
(C) CONTINUATION OF SERVICE.Each appointed mem-ber may continue
to serve after the expiration of the periodto which such member was
appointed until a successor hasbeen appointed.(4) CHAIRPERSON.The
Secretary of the Treasury shall
serve as the Chairperson of the Board.(5) NO PAY.No members of
the Commission may receive
any pay for service on the Board.(6) TRAVEL EXPENSES.Each member
shall receive travel
expenses, including per diem in lieu of subsistence, in
accord-ance with sections 5702 and 5703 of title 5, United
StatesCode.
(7) MEETINGS.The Board shall meet at the call of theChairperson
or a majority of the Boards members.(e) DUTIES OF THE BOARD.
(1) PROCEDURE FOR DETERMINING COMMUNITY ENTERPRISEASSESSMENT
CREDITS.The Board shall establish proceduresfor accepting and
considering applications by insured deposi-tory institutions under
subsection (a)(1) for community enter-prise assessment credits and
making determinations with re-spect to such applications.
(2) NOTICE TO FDIC.The Board shall notify the applicantand the
Federal Deposit Insurance Corporation of any deter-mination of the
Board with respect to any application referredto in paragraph (1)
in sufficient time for the Corporation to in-clude the amount of
such credit in the computation of the semi-annual assessment to
which such credit is applicable.(f) AVAILABILITY OF FUNDS.The
provisions of this section
shall not take effect until appropriations are specifically
providedin advance. There are hereby authorized to be appropriated
suchsums as may be necessary to carry out the provisions of this
sec-tion.
(g) PROHIBITION ON DOUBLE FUNDING FOR SAME ACTIVITIES.No
community development financial institution may receive acommunity
enterprise assessment credit if such institution, eitherdirectly or
through a community partnership
(1) has received assistance within the preceding 12-monthperiod,
or has an application for assistance pending, under sec-tion 105 of
the Community Development Banking and Finan-cial Institutions Act
of 1994; or
(2) has ever received assistance, under section 108 of
theCommunity Development Banking and Financial InstitutionsAct of
1994, for the same activity during the same semiannual
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44Sec. 233 BANK ENTERPRISE ACT OF 1991
period for which the institution seeks a community
enterpriseassessment credit under this section.(h) PRIORITY OF
AWARDS.
(1) QUALIFYING LOANS AND SERVICES.(A) IN GENERAL.If the amount
of funds appropriated
for purposes of carrying out this section for any fiscal yearare
insufficient to award the amount of assessment creditsfor which
insured depository institutions have applied andare eligible under
this section, the Board shall, in award-ing community enterprise
assessment credits for qualifyingactivities under subparagraphs (A)
and (B) of subsection(a)(2) for any semiannual period for which
such appropria-tion is available, determine which institutions
shall receivean award.
(B) PRIORITY FOR SUPPORT OF EFFORTS OF CDFI.TheBoard shall give
priority to institutions that have sup-ported the efforts of
community development financialinstitutions in the qualified
distressed community.
(C) OTHER FACTORS.The Board may also consider thefollowing
factors:
(i) DEGREE OF DIFFICULTY.The degree of dif-ficulty in carrying
out the activities that form thebasis for the institutions
application.
(ii) COMMUNITY IMPACT.The extent to which theactivities that
form the basis for the institutions ap-plication have benefited the
qualified distressed com-munity.
(iii) INNOVATION.The degree to which the activi-ties that form
the basis for the institutions applicationhave incorporated
innovative methods for meetingcommunity needs.
(iv) LEVERAGE.The leverage ratio between thedollar amount of the
activities that form the basis forthe institutions application and
the amount of theassessment credit calculated in accordance with
thissection for such activities.
(v) SIZE.The amount of total assets of the insti-tution.
(vi) NEW ENTRY.Whether the institution hadprovided financial
services in the designated dis-tressed community before such
semiannual period.
(vii) NEED FOR SUBSIDY.The degree to which thequalified activity
which forms the basis for the appli-cation needs enhancement
through an assessmentcredit.
(viii) EXTENT OF DISTRESS IN COMMUNITY.Thedegree of poverty and
unemployment in the designateddistressed community, the proportion
of the totalpopulation of the community which are
low-incomefamilies and unrelated individuals, and the extent
ofother adverse economic conditions in such community.
(2) QUALIFYING INVESTMENTS.If the amount of fundsappropriated
for purposes of carrying out this section for anyfiscal year are
insufficient to award the amount of assessment
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45 Sec. 234BANK ENTERPRISE ACT OF 1991
credits for which insured depository institutions have
appliedand are eligible under this section, the Board shall, in
award-ing community enterprise assessment credits for
qualifyingactivities under subsection (a)(2)(C) for any semiannual
periodfor which such appropriation is available, determine
whichinstitutions shall receive an award based on the leverage
ratiobetween the dollar amount of the activities that form the
basisfor the institutions application and the amount of the
assess-ment credit calculated in accordance with this section for
suchactivities.(i) DETERMINATION OF AMOUNT OF ASSESSMENT
CREDIT.Not-
withstanding any other provision of this section, the
determinationof the amount of any community enterprise assessment
creditunder subsection (a)(3) for any insured depository
institution forany semiannual period shall be made solely at the
discretion of theBoard. No insured depository institution shall be
awarded commu-nity enterprise assessment credits for any semiannual
period in ex-cess of an amount determined by the Board.
(j) DEFINITIONS.For purposes of this section(1) APPROPRIATE
FEDERAL BANKING AGENCY.The term
appropriate Federal banking agency has the meaning givento such
term in section 3(q) of the Federal Deposit InsuranceAct.
(2) BOARD.The term Board means the CommunityEnterprise
Assessment Credit Board established under theamendment made by
subsection (d).
(3) INSURED DEPOSITORY INSTITUTION.The term insureddepository
institution has the meaning given to such term insection 3(c)(2) of
the Federal Deposit Insurance Act.
(4) COMMUNITY DEVELOPMENT FINANCIAL INSTITUTION.The term
community development financial institution hasthe same meaning as
in section 103(5) of the CommunityDevelopment Banking and Financial
Institutions Act of 1994.
(5) AFFILIATE.The term affiliate has the same meaningas in
section 2 of the Bank Holding Company Act of 1956.
SEC. 234. 12 U.S.C. 1834b COMMUNITY DEVELOPMENT
ORGANIZA-TIONS.
(a) COMMUNITY DEVELOPMENT ORGANIZATIONS DESCRIBED.For purposes
of this subtitle, any insured depository institution, ora qualified
portion thereof, shall be treated as meeting the commu-nity
development organization requirements of this section if
(1) the institution(A) is a community development bank, or
controls any
community development bank, which meets the require-ments of
subsection (b);
(B) controls any community development corporation,or maintains
any community development unit within theinstitution, which meets
the requirements of subsection (c);
(C) invests in accounts in any community developmentcredit union
designated as a low-income credit union, sub-ject to restrictions
established for such credit unions by theNational Credit Union
Administration Board; or
(D) invests in a community development organizationjointly
controlled by two or more institutions;
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46Sec. 234 BANK ENTERPRISE ACT OF 1991
(2) except in the case of an institution which is a commu-nity
development bank, the amount of the capital invested, inthe form of
debt or equity, by the institution in the communitydevelopment
organization referred to in paragraph (1) (or, inthe case of any
community development unit, the amountwhich the institution
irrevocably makes available to such unitfor the purposes described
in paragraph (3)) is not less thanthe greater of
(A) 12 of 1 percent of the capital, as defined by gen-erally
accepted accounting principles, of the institution; or
(B) the sum of the amounts invested in such commu-nity
development organization; and(3) the community development
organization provides
loans for residential mortgages, home improvement, and
com-munity development and other financial services, other than
fi-nancing for the purchase of automobiles or extension of
creditunder any open-end credit plan (as defined in section 103(i)
ofthe Truth in Lending Act), to low- and moderate-income per-sons,
nonprofit organizations, and small businesses located inqualified
distressed communities in a manner consistent withthe intent of
this subtitle.(b) COMMUNITY DEVELOPMENT BANK REQUIREMENTS.A
com-
munity development bank meets the requirements of this
sub-section if
(1) the community development bank has a 15-member ad-visory
board designated as the Community Investment Boardand consisting
entirely of community leaders who
(A) shall be appointed initially by the board of direc-tors of
the community development bank and thereafter bythe Community
Investment Board from nominations re-ceived from the community;
and
(B) are appointed for a single term of 2 years, exceptthat, of
the initial members appointed to the CommunityInvestment Board, 13
shall be appointed for a term of 8months, 13 shall be appointed for
a term of 16 months, and13 shall be appointed for a term of 24
months, as des-ignated by the board of directors of the community
devel-opment bank at the time of the appointment;(2) 13 of the
members of the community development
banks board of directors are appointed from among
individualsnominated by the Community Investment Board; and
(3) the bylaws of the community development bank requirethat the
board of directors of the bank meet with the Commu-nity Investment
Board at least once every 3 months.(c) COMMUNITY DEVELOPMENT
CORPORATION REQUIREMENTS.
Any community development corporation, or community develop-ment
unit within any insured depository institution meets
therequirements of this subsection if the corporation or unit
providesthe same or greater, as determined by the appropriate
Federalbanking agency, community participation in the activities of
suchcorporation or unit as would be provided by a Community
Invest-ment Board under subsection (b) if such corporation or unit
werea community development bank.
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47 Sec. 234BANK ENTERPRISE ACT OF 1991
(d) ADEQUATE DISPERSAL REQUIREMENT.The appropriateFederal
banking agency may approve the establishment of a com-munity
development organization under this subtitle only uponfinding that
the distressed community is not adequately served byan existing
community development organization.
(e) DEFINITIONS.For purposes of this section(1) COMMUNITY
DEVELOPMENT BANK.The term commu-
nity development bank means any depository institution
(asdefined in section 3(c)(1) of the Federal Deposit Insurance
Act).
(2) COMMUNITY DEVELOPMENT ORGANIZATION.The termcommunity
development organization means any communitydevelopment bank,
community development corporation, com-munity development unit
within any insured depository insti-tution, or community
development credit union.
(3) LOW- AND MODERATE-INCOME PERSONS.The term low-and
moderate-income persons has the meaning given suchterm in section
102(a)(20) of the Housing and CommunityDevelopment Act of 1974.
(4) NONPROFIT ORGANIZATION; SMALL BUSINESS.Theterms nonprofit
organization and small business have themeanings given to such
terms by regulations which the appro-priate Federal banking agency
shall prescribe for purposes ofthis section.
(5) QUALIFIED DISTRESSED COMMUNITY.The term quali-fied
distressed community has the meaning given to suchterm in section
233(b).
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49
BANK HOLDING COMPANY ACT OF 1956
-
51
BANK HOLDING COMPANY ACT OF 1956
(70 Stat. 133; 12 U.S.C. 1841 et seq.)
AN ACT To define bank holding companies, control their future
expansion, andrequire divestment of their nonbanking interests.
Be is enacted by the Senate and House of Representatives of
theUnited States of America in Congress assembled, That this Act
maybe cited as the Bank Holding Company Act of 1956.
DEFINITIONS
SEC. 2. 12 U.S.C. 1841 (a)(1) Except as provided in para-graph
(5) of this subsection, bank holding company means anycompany which
has control over any bank or over any companythat is or becomes a
bank holding company by virtue of this Act.
(2) Any company has control over a bank or over any
companyif
(A) the company directly or indirectly or acting throughone or
more other persons owns, controls, or has power to vote25 per
centum or more of any class of voting securities of thebank or
company;
(B) the company controls in any manner the election of amajority
of the directors or trustees of the bank or company;or
(C) the Board determines, after notice and opportunity
forhearing, that the company directly or indirectly exercises
acontrolling influence over the management or policies of thebank
or company.(3) For the purposes of any proceeding under paragraph
(2)(C)
of this subsection, there is a presumption that any company
whichdirectly or indirectly owns, controls, or has power to vote
less than5 per centum of any class of voting securities of a given
bank orcompany does not have control over that bank or company.
(4) In any administrative or judicial proceeding under this
Act,other than a proceeding under paragraph (2)(C) of this
subsection,a company may not be held to have had control over any
givenbank or company at any given time unless that company, at
thetime in question, directly or indirectly owned, controlled, or
hadpower to vote 5 per centum or more of any class of voting
securitiesof the bank or company, or had already been found to have
controlin a proceeding under paragraph (2)(C).
(5) Notwithstanding any other provision of this subsection(A) No
bank and no company owning or controlling voting
shares of a bank is a bank holding company by virtue of
itsownership or control of shares in a fiduciary capacity, exceptas
provided in paragraphs (2) and (3) of subsection (g) of
thissection. For the purpose of the preceding sentence, bank
shares
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52Sec. 2 BANK HOLDING COMPANY ACT OF 1956
shall not be deemed to have been acquired in a fiduciary
capac-ity if the acquiring bank or company has sole discretionary
au-thority to exercise voting rights with respect thereto;
exceptthat this limitation is applicable in the case of a bank or
com-pany acquiring such shares prior to the date of enactment ofthe
Bank Holding Company Act Amendments of 1970 only ifthe bank or
company has the right consistent with its obliga-tions under the
instrument, agreement, or other arrangementestablishing the
fidiciary relationship to divest itself of suchvoting rights and
fails to exercise that right to divest withina reasonable period
not to exceed one year after the date ofenactment of the Bank
Holding Company Act Amendments of1970.
(B) No company is a bank holding company by virtue of
itsownership or control of shares acquired by it in connectionwith
its underwriting of securities if such shares are held onlyfor such
period of time as will permit the sale thereof on a rea-sonable
basis.
(C) No company formed for the sole purpose of partici-pating in
a proxy solicitation is a bank holding company by vir-tue of its
control of voting rights of shares acquired in thecourse of such
solicitation.
(D) No company is a bank holding company by virtue of
itsownership or control of shares acquired in securing or
col-lecting a debt previously contracted in good faith, until
twoyears after the date of acquisition. The Board is authorizedupon
application by a company to extend, from time to time fornot more
than one year at a time, the two-year period referredto herein for
disposing of any shares acquired by a company inthe regular course
of securing or collecting a debt previouslycontracted in good
faith, if, in the Boards judgment, such anextension would not be
detrimental to the public interest, butno such extension shall in
the aggregate exceed three years.
(E) No company is a bank holding company by virtue of
itsownership or control of any State-chartered bank or trust
com-pany which
(i) is wholly owned by 1 or more thrift institutions or sav-ings
banks; and
(ii) is restricted to accepting(I) deposits from thrift
institutions or savings banks;(II) deposits arising out of the
corporate business of
the thrift institutions or savings banks that own the bankor
trust company; or
(III) deposits of public moneys.(F) No trust company or mutual
savings bank which is an
insured bank under the Federal Deposit Insurance Act is abank
holding company by virtue of its direct or indirect owner-ship or
control of one bank located in the same State, if (i) suchownership
or control existed on the date of enactment of theBank Holding
Company Act Amendments of 1970 and is spe-cifically authorized by
applicable State law, and (ii) the trustcompany or mutual savings
bank does not after that date ac-quire an interest in any company
that, together with any otherinterest it holds in that company,
will exceed 5 per centum of
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53 Sec. 2BANK HOLDING COMPANY ACT OF 1956
any class of the voting shares of that company, except that
thislimitation shall not be applicable to investments of the
trustcompany or mutual savings bank, direct and indirect, whichare
otherwise in accordance with the limitations applicable tonational
banks under section 5136 of the Revised Statutes. (12U.S.C. 24)(6)
For the purposes of this Act, any successor to a bank hold-
ing company shall be deemed to be a bank holding company fromthe
date on which the predecessor company became a bank
holdingcompany.
(b) Company means any corporation, partnership, businesstrust,
association, or similar organization, or any other trust unlessby
its terms it must terminate within twenty-five years or not
laterthan twenty-one years and ten months after the death of
individ-uals living on the effective date of the trust, but shall
not includeany corporation the majority of the shares of which are
owned bythe United States or by any State, and shall not include a
qualifiedfamily partnership. Company covered in 1970 means a
companywhich becomes a bank holding company as a result of the
enact-ment of the Bank Holding Company Act Amendments of 1970
andwhich would have been a bank holding company on June 30, 1968,if
those amendments had been enacted on that date.
(c) BANK DEFINED.For purposes of this Act(1) IN GENERAL.Except
as provided in paragraph (2), the
term bank means any of the following:(A) An insured bank as
defined in section 3(h) of the
Federal Deposit Insurance Act.(B) An institution organized under
the laws of the
United States, any State of the United States, the Districtof
Columbia, any territory of the United States, PuertoRico, Guam,
American Samoa, or the Virgin Islands whichboth
(i) accepts demand deposits or deposits that thedepositor may
withdraw by check or similar means forpayment to third parties or
others; and
(ii) is engaged in the business of making commer-cial loans.
(2) EXCEPTIONS.The term bank does not include any ofthe
following:
(A) A foreign bank which would be a bank within themeaning of
paragraph (1) solely because such bank has aninsured or uninsured
branch in the United States.
(B) An insured institution (as defined in subsection(j)).
(C) An organization that does not do business in theUnited
States except as an incident to its activities outsidethe United
States.
(D) An institution that functions solely in a trust orfiduciary
capacity, if
(i) all or substantially all of the deposits of suchinstitution
are in trust funds and are received in abona fide fiduciary
capacity;
(ii) no deposits