**(a) Bank reserves**
(1)
(A) Except as provided in paragraph (2) of this subsection, sections 371a,11 See References in Text note below. 371b, 371b–1,1 374, 374a, 461, 464, and 465 of this title shall apply to every Federal branch and Federal agency of a foreign bank in the same manner and to the same extent as if the Federal branch or Federal agency were a member bank as that term is defined in [section 221 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section221&num=0&edition=prelim); but the Board either by general or specific regulation or ruling may waive the minimum and maximum reserve ratios prescribed under sections 461, 463, 464, 465, and 466 of this title and may prescribe any ratio, not more than 22 per centum, for any obligation of any such Federal branch or Federal agency that the Board may deem reasonable and appropriate, taking into consideration the character of business conducted by such institutions and the need to maintain vigorous and fair competition between and among such institutions and member banks. The Board may impose reserve requirements on Federal branches and Federal agencies in such graduated manner as it deems reasonable and appropriate.
(B) After consultation and in cooperation with the State bank supervisory authorities, the Board may make applicable to any State branch or State agency any requirement made applicable to, or which the Board has authority to impose upon, any Federal branch or agency under subparagraph (A) of this paragraph.
(2) A branch or agency shall be subject to this subsection only if (A) its parent foreign bank has total worldwide consolidated bank assets in excess of $1,000,000,000; (B) its parent foreign bank is controlled by a foreign company which owns or controls f
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Stable record: federal_law:legal_authorities:record_usc_4cce3ebdc4d2663ac0333459 Source file: Laws/federal/codes/united-states-code/title-12/section-3105-authority-of-federal-reserve-system--91a21917b5.md Pages: Not recorded – Not recorded Passage SHA-256: abe626947c1dae66d7329f7cb5a718ea653a03a66ac1a6ac50c3ae9d8e11a40f Retained source evidence SHA-256: bc689a77918083406feb27f15406136873b924588dbbac7a153fac67d8f06c56
Source location: Title 12, Chapter 32, § 3105; chapter-032-foreign-bank-participation-in-domestic-markets.md
Stored source content
**(a) Bank reserves**
(1)
(A) Except as provided in paragraph (2) of this subsection, sections 371a,11 See References in Text note below. 371b, 371b–1,1 374, 374a, 461, 464, and 465 of this title shall apply to every Federal branch and Federal agency of a foreign bank in the same manner and to the same extent as if the Federal branch or Federal agency were a member bank as that term is defined in [section 221 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section221&num=0&edition=prelim); but the Board either by general or specific regulation or ruling may waive the minimum and maximum reserve ratios prescribed under sections 461, 463, 464, 465, and 466 of this title and may prescribe any ratio, not more than 22 per centum, for any obligation of any such Federal branch or Federal agency that the Board may deem reasonable and appropriate, taking into consideration the character of business conducted by such institutions and the need to maintain vigorous and fair competition between and among such institutions and member banks. The Board may impose reserve requirements on Federal branches and Federal agencies in such graduated manner as it deems reasonable and appropriate.
(B) After consultation and in cooperation with the State bank supervisory authorities, the Board may make applicable to any State branch or State agency any requirement made applicable to, or which the Board has authority to impose upon, any Federal branch or agency under subparagraph (A) of this paragraph.
(2) A branch or agency shall be subject to this subsection only if (A) its parent foreign bank has total worldwide consolidated bank assets in excess of $1,000,000,000; (B) its parent foreign bank is controlled by a foreign company which owns or controls foreign banks that in the aggregate have total worldwide consolidated bank assets in excess of $1,000,000,000; or (C) its parent foreign bank is controlled by a group of foreign companies that own or control foreign banks that in the aggregate have total worldwide consolidated bank assets in excess of $1,000,000,000.
**(b) Omitted**
**(c) Foreign bank examinations and reporting**
(1) **Examination of branches, agencies, and affiliates**
(A) *In general* — The Board may examine each branch or agency of a foreign bank, each commercial lending company or bank controlled by 1 or more foreign banks or 1 or more foreign companies that control a foreign bank, and other office or affiliate of a foreign bank conducting business in any State.
(B) *Coordination of examinations*
(i) *In general* — The Board shall coordinate examinations under this paragraph with the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and appropriate State bank supervisors to the extent such coordination is possible.
(ii) *Simultaneous examinations* — The Board may request simultaneous examinations of each office of a foreign bank and each affiliate of such bank operating in the United States.
(iii) *Avoidance of duplication* — In exercising its authority under this paragraph, the Board shall take all reasonable measures to reduce burden and avoid unnecessary duplication of examinations.
(C) *On-site examination* — Each Federal branch or agency, and each State branch or agency, of a foreign bank shall be subject to on-site examination by an appropriate Federal banking agency or State bank supervisor as frequently as would a national bank or a State bank, respectively, by the appropriate Federal banking agency.
(D) *Cost of examinations* — The cost of any examination under subparagraph (A) shall be assessed against and collected from the foreign bank or the foreign company that controls the foreign bank, as the case may be, only to the same extent that fees are collected by the Board for examination of any State member bank.
(2) **Reporting requirements** — Each branch or agency of a foreign bank, other than a Federal branch or agency, shall be subject to [section 335 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section335&num=0&edition=prelim) and the provision requiring the reports of condition contained in [section 324 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section324&num=0&edition=prelim) to the same extent and in the same manner as if the branch or agency were a State member bank. In addition to any requirements imposed under [section 3102 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section3102&num=0&edition=prelim), each Federal branch and agency shall be subject to [section 248(a) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section248/a&num=0&edition=prelim) and to [section 483 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section483&num=0&edition=prelim) to the same extent and in the same manner as if it were a member bank.
**(d) Establishment of foreign bank offices in United States**
(1) **Prior approval required** — No foreign bank may establish a branch or an agency, or acquire ownership or control of a commercial lending company, without the prior approval of the Board.
(2) **Required standards for approval** — Except as provided in paragraph (6), the Board may not approve an application under paragraph (1) unless it determines that—
(A) the foreign bank engages directly in the business of banking outside of the United States and is subject to comprehensive supervision or regulation on a consolidated basis by the appropriate authorities in its home country; and
(B) the foreign bank has furnished to the Board the information it needs to adequately assess the application.
(3) **Standards for approval** — In acting on any application under paragraph (1), the Board may take into account—
(A) whether the appropriate authorities in the home country of the foreign bank have consented to the proposed establishment of a branch, agency or commercial lending company in the United States by the foreign bank;
(B) the financial and managerial resources of the foreign bank, including the bank’s experience and capacity to engage in international banking;
(C) whether the foreign bank has provided the Board with adequate assurances that the bank will make available to the Board such information on the operations or activities of the foreign bank and any affiliate of the bank that the Board deems necessary to determine and enforce compliance with this chapter, the Bank Holding Company Act of 1956 [[12 U.S.C. 1841](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1841&num=0&edition=prelim) et seq.], and other applicable Federal law;
(D) whether the foreign bank and the United States affiliates of the bank are in compliance with applicable United States law; and
(E) for a foreign bank that presents a risk to the stability of United States financial system, whether the home country of the foreign bank has adopted, or is making demonstrable progress toward adopting, an appropriate system of financial regulation for the financial system of such home country to mitigate such risk.
(4) **Factor** — In acting on an application under paragraph (1), the Board shall not make the size of the foreign bank the sole determinant factor, and may take into account the needs of the community as well as the length of operation of the foreign bank and its relative size in its home country. Nothing in this paragraph shall affect the ability of the Board to order a State branch, agency, or commercial lending company subsidiary to terminate its activities in the United States pursuant to any standard set forth in this chapter.
(5) **Establishment of conditions** — The Board may impose such conditions on its approval under this subsection as it deems necessary.
(6) **Exception**
(A) *In general* — If the Board is unable to find, under paragraph (2), that a foreign bank is subject to comprehensive supervision or regulation on a consolidated basis by the appropriate authorities in its home country, the Board may nevertheless approve an application by such foreign bank under paragraph (1) if—
(i) the appropriate authorities in the home country of the foreign bank are actively working to establish arrangements for the consolidated supervision of such bank; and
(ii) all other factors are consistent with approval.
(B) *Other considerations* — In deciding whether to use its discretion under subparagraph (A), the Board shall also consider whether the foreign bank has adopted and implements procedures to combat money laundering. The Board may also take into account whether the home country of the foreign bank is developing a legal regime to address money laundering or is participating in multilateral efforts to combat money laundering.
(C) *Additional conditions* — In approving an application under this paragraph, the Board, after requesting and taking into consideration the views of the appropriate State bank supervisor or the Comptroller of the Currency, as the case may be, may impose such conditions or restrictions relating to the activities or business operations of the proposed branch, agency, or commercial lending company subsidiary, including restrictions on sources of funding, as are considered appropriate. The Board shall coordinate with the appropriate State bank supervisor or the Comptroller of the Currency, as appropriate, in the implementation of such conditions or restrictions.
(D) *Modification of conditions* — Any condition or restriction imposed by the Board in connection with the approval of an application under authority of this paragraph may be modified or withdrawn.
(7) **Time period for Board action**
(A) *Final action* — The Board shall take final action on any application under paragraph (1) not later than 180 days after receipt of the application, except that the Board may extend for an additional 180 days the period within which to take final action on such application after providing notice of, and the reasons for, the extension to the applicant foreign bank and any appropriate State bank supervisor or the Comptroller of the Currency, as appropriate.
(B) *Failure to submit information* — The Board may deny any application if it does not receive information requested from the applicant foreign bank or appropriate authorities in the home country of the foreign bank in sufficient time to permit the Board to evaluate such information adequately within the time periods for final action set forth in subparagraph (A).
(C) *Waiver* — A foreign bank may waive the applicability of this paragraph with respect to any application under paragraph (1).
**(e) Termination of foreign bank offices in United States**
(1) **Standards for termination** — The Board, after notice and opportunity for hearing and notice to any appropriate State bank supervisor, may order a foreign bank that operates a State branch or agency or commercial lending company subsidiary in the United States to terminate the activities of such branch, agency, or subsidiary if the Board finds that—
(A)
(i) the foreign bank is not subject to comprehensive supervision or regulation on a consolidated basis by the appropriate authorities in its home country; and
(ii) the appropriate authorities in the home country of the foreign bank are not making demonstrable progress in establishing arrangements for the comprehensive supervision or regulation of such foreign bank on a consolidated basis;
(B)
(i) there is reasonable cause to believe that such foreign bank, or any affiliate of such foreign bank, has committed a violation of law or engaged in an unsafe or unsound banking practice in the United States; and
(ii) as a result of such violation or practice, the continued operation of the foreign bank’s branch, agency or commercial lending company subsidiary in the United States would not be consistent with the public interest or with the purposes of this chapter, the Bank Holding Company Act of 1956 [[12 U.S.C. 1841](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1841&num=0&edition=prelim) et seq.], or the Federal Deposit Insurance Act [[12 U.S.C. 1811](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1811&num=0&edition=prelim) et seq.]; or
(C) for a foreign bank that presents a risk to the stability of the United States financial system, the home country of the foreign bank has not adopted, or made demonstrable progress toward adopting, an appropriate system of financial regulation to mitigate such risk.
However, in making findings under this paragraph, the Board shall not make size the sole determinant factor, and may take into account the needs of the community as well as the length of operation of the foreign bank and its relative size in its home country. Nothing in this paragraph shall affect the ability of the Board to order a State branch, agency, or commercial lending company subsidiary to terminate its activities in the United States pursuant to any standard set forth in this chapter.
(2) **Discretion to deny hearing** — The Board may issue an order under paragraph (1) without providing for an opportunity for a hearing if the Board determines that expeditious action is necessary in order to protect the public interest.
(3) **Effective date of termination order** — An order issued under paragraph (1) shall take effect before the end of the 120-day period beginning on the date such order is issued unless the Board extends such period.
(4) **Compliance with State and Federal law** — Any foreign bank required to terminate activities conducted at offices or subsidiaries in the United States pursuant to this subsection shall comply with the requirements of applicable Federal and State law with respect to procedures for the closure or dissolution of such offices or subsidiaries.
(5) **Recommendation to agency for termination of a Federal branch or agency** — The Board may transmit to the Comptroller of the Currency a recommendation that the license of any Federal branch or Federal agency of a foreign bank be terminated in accordance with [section 3102(i) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section3102/i&num=0&edition=prelim) if the Board has reasonable cause to believe that such foreign bank or any affiliate of such foreign bank has engaged in conduct for which the activities of any State branch or agency may be terminated under paragraph (1).
(6) **Enforcement of orders**
(A) *In general* — In the case of contumacy of any office or subsidiary of the foreign bank against which—
(i) the Board has issued an order under paragraph (1); or
(ii) the Comptroller of the Currency has issued an order under [section 3102(i) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section3102/i&num=0&edition=prelim),
or a refusal by such office or subsidiary to comply with such order, the Board or the Comptroller of the Currency may invoke the aid of the district court of the United States within the jurisdiction of which the office or subsidiary is located.
(B) *Court order* — Any court referred to in subparagraph (A) may issue an order requiring compliance with an order referred to in subparagraph (A).
(7) **Criteria relating to foreign supervision** — Not later than 1 year after December 19, 1991, the Board, in consultation with the Secretary of the Treasury, shall develop and publish criteria to be used in evaluating the operation of any foreign bank in the United States that the Board has determined is not subject to comprehensive supervision or regulation on a consolidated basis. In developing such criteria, the Board shall allow reasonable opportunity for public review and comment.
**(f) Judicial review**
(1) **Jurisdiction of United States courts of appeals** — Any foreign bank—
(A) whose application under subsection (d) or [section 3107(a) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section3107/a&num=0&edition=prelim) has been disapproved by the Board;
(B) against which the Board has issued an order under subsection (e) or [section 3107(b) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section3107/b&num=0&edition=prelim); or
(C) against which the Comptroller of the Currency has issued an order under [section 3102(i) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section3102/i&num=0&edition=prelim),
may obtain a review of such order in the United States court of appeals for any circuit in which such foreign bank operates a branch, agency, or commercial lending company that has been required by such order to terminate its activities, or in the United States Court of Appeals for the District of Columbia Circuit, by filing a petition for review in the court before the end of the 30-day period beginning on the date the order was issued.
(2) **Scope of judicial review** — [Section 706 of title 5](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title5-section706&num=0&edition=prelim) (other than paragraph (2)(F) of such section) shall apply with respect to any review under paragraph (1).
**(g) Consultation with State bank supervisor** The Board shall request and consider any views of the appropriate State bank supervisor with respect to any application or action under subsection (d) or (e).
**(h) Limitations on powers of State branches and agencies**
(1) **In general** — After the end of the 1-year period beginning on December 19, 1991, a State branch or State agency may not engage in any type of activity that is not permissible for a Federal branch unless—
(A) the Board has determined that such activity is consistent with sound banking practice; and
(B) in the case of an insured branch, the Federal Deposit Insurance Corporation has determined that the activity would pose no significant risk to the deposit insurance fund.
(2) **Single borrower lending limit** — A State branch or State agency shall be subject to the same limitations with respect to loans made to a single borrower as are applicable to a Federal branch or Federal agency under [section 3102(b) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section3102/b&num=0&edition=prelim).
(3) **Other authority not affected** — This section does not limit the authority of the Board or any State supervisory authority to impose more stringent restrictions.
**(i) Proceedings related to conviction for money laundering offenses**
(1) **Notice of intention to issue order** — If the Board finds or receives written notice from the Attorney General that—
(A) any foreign bank which operates a State agency, a State branch which is not an insured branch, or a State commercial lending company subsidiary;
(B) any State agency;
(C) any State branch which is not an insured branch; or
(D) any State commercial lending subsidiary,
has been found guilty of any money laundering offense, the Board shall issue a notice to the agency, branch, or subsidiary of the Board’s intention to commence a termination proceeding under subsection (e).
(2) **Definitions** — For purposes of this subsection—
(A) *Insured branch* — The term “insured branch” has the meaning given such term in section 3(s) of the Federal Deposit Insurance Act [[12 U.S.C. 1813(s)](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1813/s&num=0&edition=prelim)].
(B) *Money laundering offense defined* — The term “money laundering offense” means any criminal offense under section 1956 or 1957 of title 18 or under [section 5322 of title 31](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section5322&num=0&edition=prelim).
**(j) Study on equivalence of foreign bank capital** Not later than 180 days after December 19, 1991, the Board and the Secretary of the Treasury shall jointly submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Banking, Finance and Urban Affairs of the House of Representatives a report—
(1) analyzing the capital standards contained in the framework for measurement of capital adequacy established by the Supervisory Committee of the Bank for International Settlements, foreign regulatory capital standards that apply to foreign banks conducting banking operations in the United States, and the relationship of the Basle and foreign standards to risk-based capital and leverage requirements for United States banks; and
(2) establishing guidelines for the adjustments to be used by the Board in converting data on the capital of such foreign banks to the equivalent risk-based capital and leverage requirements for United States banks for purposes of determining whether a foreign bank’s capital level is equivalent to that imposed on United States banks for purposes of determinations under this section and sections 3 and 4 of the Bank Holding Company Act of 1956 [[12 U.S.C. 1842](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1842&num=0&edition=prelim), 1843].
An update shall be prepared annually explaining any changes in the analysis under paragraph (1) and resulting changes in the guidelines pursuant to paragraph (2).
**(k) Management of shell branches**
(1) **Transactions prohibited** — A branch or agency of a foreign bank shall not manage, through an office of the foreign bank which is located outside the United States and is managed or controlled by such branch or agency, any type of activity that a bank organized under the laws of the United States, any State, or the District of Columbia is not permitted to manage at any branch or subsidiary of such bank which is located outside the United States.
(2) **Regulations** — Any regulations promulgated to carry out this section—
(A) shall be promulgated in accordance with [section 3108 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section3108&num=0&edition=prelim); and
(B) shall be uniform, to the extent practicable.
Cross-references
Connections may be documented source relationships, shared citations or nearby passages. Each explains its basis; a connection alone does not establish applicability to your situation.
Federal law — U.S. Code and appendices · legal_authorities
**(a) Establishment of Corporation** There is hereby established a Federal Deposit Insurance Corporation (hereinafter referred to as the “Corporation”) which shall insure, as hereinafter provided, the deposits of all banks and savings associations which are entitled to the benefits of insurance under this chapter, and which shall have the powers hereinafter granted.
**(b) Asset disposition division**
(1) **Establishment** — The Corporation shall have a separate division of asset disposition.
(2) **Management** — The division of asset disposition shall have an administrator who shall be appointed by the Board of Directors.
(3) **Responsibilities of division** — The division of asset disposition shall carry out all of the responsibilities of the Corporation under this chapter relating to the liquidation of insured depository institutions and the disposition of assets of such institutions.
Stored review status: release_metadata_unconfirmed. The source passage cites 12 U.S.C. § 1811. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
§ 1811. Federal Deposit Insurance Corporation
(a) Establishment of Corporation
There is hereby established a Federal Deposit
Insurance Corporation (hereinafter referred to
as the ‘‘Corporation’’) which shall insure, as
hereinafter provided, the deposits of all banks
and savings associations which are entitled to
the benefits of insurance under this chapter, and
which shall have the powers hereinafter granted.
(b) Asset disposition division
(1) Establishment
The Corporation shall have a separate divi-
sion of asset disposition.
(2) Management
The division of asset disposition shall have
an administrator who shall be appointed by
the Board of Directors.
(3) Responsibilities of division
The division of asset disposition shall carry
out all of the responsibilities of the Corpora-
tion under this chapter relating to the liquida-
tion of insured depository institutions and the
disposition of assets of such institutions.
(Sept. 21, 1950, ch. 967, § 2[1], 64 Stat. 873; Pub. L.
101–73, title II, § 202, Aug. 9, 1989, 103 Stat. 188;
Pub. L. 103–204, § 22(a), Dec. 17, 1993, 107 Stat.
2407.)
Editorial Notes
CODIFICATION
The Federal Deposit Insurance Corporation was origi-
nally created as a part of the Federal Reserve Act by
act June 16, 1933, ch. 89, § 8, 48 Stat. 168, which added
section 12B to the Federal Reserve Act, act Dec. 23,
1913, ch. 6, 38 Stat. 103, and was classified to section 264
of this title. Act Dec. 23, 1913, ch. 6, § 12B, as added June
16, 1933, ch. 89, § 8, 48 Stat. 168 has been amended by acts
June 16, 1934, ch. 546, § 1(1)–(10), 48 Stat. 969, 970; June 28,
1935, ch. 335, 49 Stat. 435; Aug. 23, 1935, ch. 614, § 101, 49
Stat. 684; Apr. 21, 1936, ch. 244, 49 Stat. 1237; May 25,
1938, ch. 276, 52 Stat. 442; June 16, 1938, ch. 489,
Stored review status: historical_2024_not_currentness_verified. The source passage cites 12 U.S.C. § 1811. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
As used in this chapter—
**(a) Definitions of bank and related terms**
(1) **Bank** — The term “bank”—
(A) means any national bank and State bank, and any Federal branch and insured branch;
(B) includes any former savings association.
(2) **State bank** — The term “State bank” means any bank, banking association, trust company, savings bank, industrial bank (or similar depository institution which the Board of Directors finds to be operating substantially in the same manner as an industrial bank), or other banking institution which—
(A) is engaged in the business of receiving deposits, other than trust funds (as defined in this section); and
(B) is incorporated under the laws of any State or which is operating under the Code of Law for the District of Columbia,
including any cooperative bank or other unincorporated bank the deposits of which were insured by the Corporation on the day before August 9, 1989.
(3) **State** — The term “State” means any State of the United States, the District of Columbia, any territory of the United States, Puerto Rico, Guam, American Samoa, the Trust Territory of the Pacific Islands, the Virgin Islands, and the Northern Mariana Islands.
**(b) Definition of savings associations and related terms**
(1) **Savings association** — The term “savings association” means—
(A) any Federal savings association;
(B) any State savings association; and
(C) any corporation (other than a bank) that the Board of Directors and the Comptroller of the Currency jointly determine to be operating in substantially the same manner as a savings association.
(2) **Federal savings association** — The term “Federal savings association” means any Federal savings association or Federal savings bank which is chartered under [section 1464 of t
Stored review status: release_metadata_unconfirmed. The source passage cites 12 U.S.C. § 1813. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
§ 1813. Definitions
As used in this chapter—
(a) Definitions of bank and related terms
(1) Bank
The term ‘‘bank’’—
(A) means any national bank and State
bank, and any Federal branch and insured
branch;
(B) includes any former savings associa-
tion.
(2) State bank
The term ‘‘State bank’’ means any bank,
banking association, trust company, savings
bank, industrial bank (or similar depository
institution which the Board of Directors
finds to be operating substantially in the
same manner as an industrial bank), or
other banking institution which—
(A) is engaged in the business of receiv-
ing deposits, other than trust funds (as de-
fined in this section); and
(B) is incorporated under the laws of any
State or which is operating under the Code
of Law for the District of Columbia,
including any cooperative bank or other un-
incorporated bank the deposits of which
were insured by the Corporation on the day
before August 9, 1989.
(3) State
The term ‘‘State’’ means any State of the
United States, the District of Columbia, any
territory of the United States, Puerto Rico,
Guam, American Samoa, the Trust Territory
of the Pacific Islands, the Virgin Islands,
and the Northern Mariana Islands.
(b) Definition of savings associations and re-
lated terms
(1) Savings association
The term ‘‘savings association’’ means—
(A) any Federal savings association;
(B) any State savings association; and
Page 967
TITLE 12—BANKS AND BANKING
§ 1813
(C) any corporation (other than a bank)
that the Board of Directors and the Comp-
troller of the Currency jointly determine
to be operating in substantially the same
manner as a savings association.
(2) Federal savings association
The term ‘‘Federal savings association’’
means any Federal savings association or
Federal
Stored review status: historical_2024_not_currentness_verified. The source passage cites 12 U.S.C. § 1813. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
**(a)**
(1) Except as provided in paragraph (5) of this subsection, “bank holding company” means any company which has control over any bank or over any company that is or becomes a bank holding company by virtue of this chapter.
(2) Any company has control over a bank or over any company if—
(A) the company directly or indirectly or acting through one or more other persons owns, controls, or has power to vote 25 per centum or more of any class of voting securities of the bank or company;
(B) the company controls in any manner the election of a majority of the directors or trustees of the bank or company; or
(C) the Board determines, after notice and opportunity for hearing, that the company directly or indirectly exercises a controlling influence over the management or policies of the bank or company.
(3) For the purposes of any proceeding under paragraph (2)(C) of this subsection, there is a presumption that any company which directly or indirectly owns, controls, or has power to vote less than 5 per centum of any class of voting securities of a given bank or company does not have control over that bank or company.
(4) In any administrative or judicial proceeding under this chapter, other than a proceeding under paragraph (2)(C) of this subsection, a company may not be held to have had control over any given bank or company at any given time unless that company, at the time in question, directly or indirectly owned, controlled, or had power to vote 5 per centum or more of any class of voting securities of the bank or company, or had already been found to have control in 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 hold
Stored review status: release_metadata_unconfirmed. The source passage cites 12 U.S.C. § 1841. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
§ 1841. Definitions
(a)(1) Except as provided in paragraph (5) of
this subsection, ‘‘bank holding company’’ means
any company which has control over any bank
or over any company that is or becomes a bank
holding company by virtue of this chapter.
(2) Any company has control over a bank or
over any company if—
(A) the company directly or indirectly or
acting through one or more other persons
owns, controls, or has power to vote 25 per
centum or more of any class of voting securi-
ties of the bank or company;
(B) the company controls in any manner the
election of a majority of the directors or
trustees of the bank or company; or
(C) the Board determines, after notice and
opportunity for hearing, that the company di-
rectly or indirectly exercises a controlling in-
fluence over the management or policies of the
bank or company.
(3) For the purposes of any proceeding under
paragraph (2)(C) of this subsection, there is a
presumption that any company which directly
or indirectly owns, controls, or has power to
vote less than 5 per centum of any class of vot-
ing securities of a given bank or company does
not have control over that bank or company.
(4) In any administrative or judicial pro-
ceeding under this chapter, other than a pro-
ceeding under paragraph (2)(C) of this sub-
section, a company may not be held to have had
control over any given bank or company at any
given time unless that company, at the time in
question, directly or indirectly owned, con-
trolled, or had power to vote 5 per centum or
more of any class of voting securities of the
bank or company, or had already been found to
have control in a proceeding under paragraph
(2)(C).
(5) Notwithstanding any other provision of
this subsection—
(A) No bank and no company owning or co
Stored review status: historical_2024_not_currentness_verified. The source passage cites 12 U.S.C. § 1841. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
**(a) Prior approval of Board as necessary; exceptions; disposition, time extension; subsequent approval or disposition upon disapproval** It shall be unlawful, except with the prior approval of the Board, (1) for any action to be taken that causes any company to become a bank holding company; (2) for any action to be taken that causes a bank to become a subsidiary of a bank holding company; (3) for any bank holding company to acquire direct or indirect ownership or control of any voting shares of any bank if, after such acquisition, such company will directly or indirectly own or control more than 5 per centum of the voting shares of such bank; (4) for any bank holding company or subsidiary thereof, other than a bank, to acquire all or substantially all of the assets of a bank; or (5) for any bank holding company to merge or consolidate with any other bank holding company. Notwithstanding the foregoing this prohibition shall not apply to (A) shares acquired by a bank, (i) in good faith in a fiduciary capacity, except where such shares are held under a trust that constitutes a company as defined in [section 1841(b) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1841/b&num=0&edition=prelim) and except as provided in paragraphs (2) and (3) of [section 1841(g) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1841/g&num=0&edition=prelim), or (ii) in the regular course of securing or collecting a debt previously contracted in good faith, but any shares acquired after May 9, 1956, in securing or collecting any such previously contracted debt shall be disposed of within a period of two years from the date on which they were acquired; (B) additional shares acquired by a bank holding company in
Stored review status: release_metadata_unconfirmed. The source passage cites 12 U.S.C. § 1842. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
§ 1842. Acquisition of bank shares or assets
(a) Prior approval of Board as necessary; excep-
tions; disposition, time extension; subsequent
approval or disposition upon disapproval
It shall be unlawful, except with the prior ap-
proval of the Board, (1) for any action to be
taken that causes any company to become a
bank holding company; (2) for any action to be
taken that causes a bank to become a subsidiary
of a bank holding company; (3) for any bank
holding company to acquire direct or indirect
ownership or control of any voting shares of any
bank if, after such acquisition, such company
will directly or indirectly own or control more
than 5 per centum of the voting shares of such
bank; (4) for any bank holding company or sub-
sidiary thereof, other than a bank, to acquire all
or substantially all of the assets of a bank; or (5)
for any bank holding company to merge or con-
solidate with any other bank holding company.
Notwithstanding the foregoing this prohibition
shall not apply to (A) shares acquired by a bank,
(i) in good faith in a fiduciary capacity, except
where such shares are held under a trust that
constitutes a company as defined in section
1841(b) of this title and except as provided in
paragraphs (2) and (3) of section 1841(g) of this
title, or (ii) in the regular course of securing or
collecting a debt previously contracted in good
faith, but any shares acquired after May 9, 1956,
in securing or collecting any such previously
contracted debt shall be disposed of within a pe-
riod of two years from the date on which they
were acquired; (B) additional shares acquired by
a bank holding company in a bank in which such
bank holding company owned or controlled a
majority of the voting shares prior to such ac-
quisition; or (C)
Stored review status: historical_2024_not_currentness_verified. The source passage cites 12 U.S.C. § 1842. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
§ 3105. Authority of Federal Reserve System
(a) Bank reserves
(1)(A) Except as provided in paragraph (2) of
this subsection, sections 371a,1 371b, 371b–1,1 374,
374a, 461, 464, and 465 of this title shall apply to
every Federal branch and Federal agency of a
foreign bank in the same manner and to the
same extent as if the Federal branch or Federal
agency were a member bank as that term is de-
fined in section 221 of this title; but the Board
either by general or specific regulation or ruling
may waive the minimum and maximum reserve
ratios prescribed under sections 461, 463, 464, 465,
and 466 of this title and may prescribe any ratio,
not more than 22 per centum, for any obligation
of any such Federal branch or Federal agency
that the Board may deem reasonable and appro-
priate, taking into consideration the character
of business conducted by such institutions and
the need to maintain vigorous and fair competi-
tion between and among such institutions and
member banks. The Board may impose reserve
requirements on Federal branches and Federal
agencies in such graduated manner as it deems
reasonable and appropriate.
(B) After consultation and in cooperation with
the State bank supervisory authorities, the
Board may make applicable to any State branch
or State agency any requirement made applica-
ble to, or which the Board has authority to im-
pose upon, any Federal branch or agency under
subparagraph (A) of this paragraph.
(2) A branch or agency shall be subject to this
subsection only if (A) its parent foreign bank
has total worldwide consolidated bank assets in
excess of $1,000,000,000; (B) its parent foreign
bank is controlled by a foreign company which
owns or controls foreign banks that in the ag-
gregate have total worldwide consolid