§ 1841. Definitions

Footnotes

1. 1 See References in Text note below.

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1956

   May 9, 1956, ch. 240, § 2, 70 Stat. 133 · 70 Stat. 133

   Enacted · 12 U.S.C. § 1841

   May 9, 1956, ch. 240, § 2, 70 Stat. 133

   Source evidence

   Code source credit
   May 9, 1956, ch. 240, § 2, 70 Stat. 133

2. 1966

   Pub. L. 89–485 § 1 · 80 Stat. 236

   1. Struck · 12 U.S.C. § 1841(a)

      Pub. L. 89–485, § 1, struck out provision placing within the classification of bank holding company any company for the benefit of whose shareholders or members 25 per centum or more of the voting shares of each of two or more banks or a bank holding company is held by trustees

   2. Struck · 12 U.S.C. § 1841(a)

      Pub. L. 89–485, § 1, struck out provision exempting from classification as bank holding companies any companies that are registered under the Investment Company Act of 1940, and were so registered prior to May 15, 1955 (or which is affiliated with any such company in such manner as to constitute an affiliated company within the meaning of that Act), unless that company (or affiliated company), as the case may be, directly owns 25 per centum or more of the voting shares of each of two or more banks

   3. Struck · 12 U.S.C. § 1841(a)

      Pub. L. 89–485, § 1, struck out provision exempting from classification as bank holding companies any companies having 80 per centum or more of their total assets composed of holdings in the field of agriculture

   4. Substituted · 12 U.S.C. § 1841(a)

      Pub. L. 89–485, § 1, substituted voting shares for shares in the description of the securities the ownership or control of which, in a fiduciary capacity, would be exempted from causing the formation of a bank holding company

   5. Added · 12 U.S.C. § 1841(a)

      Pub. L. 89–485, § 1, added “company” to “bank” as the business entities eligible for the fiduciary ownership exemption

   6. Inserted · 12 U.S.C. § 1841(a)

      Pub. L. 89–485, § 1, inserted reference in the fiduciary ownership exemption to pars. (2) and (3) of subsec. (g) of this section

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 89–485, § 1, struck out provision placing within the classification of bank holding company any company for the benefit of whose shareholders or members 25 per centum or more of the voting shares of each of two or more banks or a bank holding company is held by trustees, struck out provision exempting from classification as bank holding companies any companies that are registered under the Investment Company Act of 1940, and were so registered prior to May 15, 1955 (or which is affiliated with any such company in such manner as to constitute an affiliated company within the meaning of that Act), unless that company (or affiliated company), as the case may be, directly owns 25 per centum or more of the voting shares of each of two or more banks, struck out provision exempting from classification as bank holding companies any companies having 80 per centum or more of their total assets composed of holdings in the field of agriculture, substituted voting shares for shares in the description of the securities the ownership or control of which, in a fiduciary capacity, would be exempted from causing the formation of a bank holding company, added “company” to “bank” as the business entities eligible for the fiduciary ownership exemption, and inserted reference in the fiduciary ownership exemption to pars. (2) and (3) of subsec. (g) of this section.

3. 1966

   Pub. L. 89–485 § 2 · 80 Stat. 236

   Struck · 12 U.S.C. § 1841(b)

   Pub. L. 89–485, § 2, exempted from definition of “company” any trust which by its terms must terminate within twenty-five years or not later than twenty-one years and ten months after the death of individuals living on the effective date of the trust, and struck out the exemption formerly granted to nonprofit religious, charitable, and educational organizations

   Source evidence

   Code amendment note
   Subsec. (b). Pub. L. 89–485, § 2, exempted from definition of “company” any trust which by its terms must terminate within twenty-five years or not later than twenty-one years and ten months after the death of individuals living on the effective date of the trust, and struck out the exemption formerly granted to nonprofit religious, charitable, and educational organizations.

   Enacted provision · exact public law section
   Sec. 2. Subsection (b) of section 2 of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(b)) is amended to read as follows: “(b) ‘Company’ means any corporation, business trust, association, or similar organization, or any other trust unless by its terms it must terminate within twenty-five years or not later than twenty-one years and ten months after the death of individuals living on the effective date of the trust, but shall not include (1) any corporation the majority of the shares of which are owned by the United States or by any State, or (2) any partnership.”

4. 1966

   Pub. L. 89–485 § 3 · 80 Stat. 236

   Substituted · 12 U.S.C. § 1841(c)

   Pub. L. 89–485, § 3, substituted “any institution that accepts deposits that the depositor has a legal right to withdraw on demand” for “any national banking institution or any state bank, savings bank, or trust company” in the definition of “bank” and extended the exemption for foreign banking corporations to include “agreement” foreign banking corporations under section 25 of the Federal Reserve Act

   Source evidence

   Code amendment note
   Subsec. (c). Pub. L. 89–485, § 3, substituted “any institution that accepts deposits that the depositor has a legal right to withdraw on demand” for “any national banking institution or any state bank, savings bank, or trust company” in the definition of “bank” and extended the exemption for foreign banking corporations to include “agreement” foreign banking corporations under section 25 of the Federal Reserve Act.

   Enacted provision · exact public law section
   Sec. 3. Subsection (c) of section 2 of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(c)) is amended to read as follows: “(c) ‘Bank’ means any institution that accepts deposits that the depositor has a legal right to withdraw on demand, but shall not include any organization operating under section 25 or section 25(a) 39 Stat. 755; 41 Stat. 378; Post, p. 241. 12 USC 601–631. “District bank.” of the Federal Reserve Act, or any organization that does not do business within the United States. ‘District bank’ means any bank organized or operating under the Code of Law for the District of Columbia.”

5. 1966

   Pub. L. 89–485 § 4 · 80 Stat. 236

   1. Inserted · 12 U.S.C. § 1841(d)

      Pub. L. 89–485, § 4, inserted provision relating to indirect ownership or control and the holding of power to vote to direct ownership or control as the methods by which the holding of 25 per centum or more of voting shares in a company will qualify that company as a subsidiary

   2. Struck · 12 U.S.C. § 1841(d)

      Pub. L. 89–485, § 4, struck out provisions under which any company 25 per centum or more of whose voting shares are held by trustees for the benefit of the shareholders or members of a bank holding company qualifies as a subsidiary

   Source evidence

   Code amendment note
   Subsec. (d). Pub. L. 89–485, § 4, inserted provision relating to indirect ownership or control and the holding of power to vote to direct ownership or control as the methods by which the holding of 25 per centum or more of voting shares in a company will qualify that company as a subsidiary, and struck out provisions under which any company 25 per centum or more of whose voting shares are held by trustees for the benefit of the shareholders or members of a bank holding company qualifies as a subsidiary.

   Enacted provision · exact public law section
   Sec. 4. Subsection (d) of section 2 of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(d)) is amended to read as follows: “(d) ‘Subsidiary’, with respect to a specified bank holding company, means (1) any company 25 per centum or more of whose voting shares (excluding shares owned by the United States or by any company wholly owned by the United States) is directly or indirectly owned or controlled by such bank holding company, or is held by it with power to vote; or (2) any company the election of a majority of whose directors is controlled in any manner by such bank holding company.”

6. 1966

   Pub. L. 89–485 · 80 Stat. 236

   Substituted · 12 U.S.C. § 1841(g)

   Pub. L. 89–485, §§ 5, 6, substituted provisions setting out treatment to be accorded shares owned or controlled by subsidiaries of bank holding companies, shares held or controlled by trustees for the benefit of companies, shareholders or members of companies, and employees of companies, and shares transferred after January 1, 1966, by bank holding companies to transferees that are indebted to the transferor or have one or more officers, directors, trustees, or beneficiaries in common with the transferor for provisions defining “agriculture”

   Source evidence

   Code amendment note
   Subsec. (g). Pub. L. 89–485, §§ 5, 6, substituted provisions setting out treatment to be accorded shares owned or controlled by subsidiaries of bank holding companies, shares held or controlled by trustees for the benefit of companies, shareholders or members of companies, and employees of companies, and shares transferred after January 1, 1966, by bank holding companies to transferees that are indebted to the transferor or have one or more officers, directors, trustees, or beneficiaries in common with the transferor for provisions defining “agriculture”.

7. 1966

   Pub. L. 89–485 § 6 · 80 Stat. 236

   Added · 12 U.S.C. § 1841(h)

   Pub. L. 89–485, § 6, added subsec. (h)

   Source evidence

   Code amendment note
   Subsec. (h). Pub. L. 89–485, § 6, added subsec. (h).

   Enacted provision · exact public law section
   Sec. 6. Section 2 of the Bank Holding Company Act of 1956 (12 U.S.C. 1841), as amended by this Act, is further amended by adding 70 Stat. 133. at the end thereof the following new subsections: “(g) For the purposes of this Act— “(1) shares owned or controlled by any subsidiary of a bank holding company shall be deemed to be indirectly owned or controlled by such bank holding company; “(2) shares held or controlled directly or indirectly by trustees for the benefit of (A) a company, (B) the shareholders or members of a company, or (C) the employees (whether exclusively or not) of a company, shall be deemed to be controlled by such company; and “(3) shares transferred after January 1, 1966, by any bank holding company (or by any company which, but for such transfer, would be a bank holding company) directly or indirectly to any transferee that is indebted to the transferor, or has one or more officers, directors, trustees, or beneficiaries in common with or subject to control by the transferor, shall be deemed to be indirectly owned or controlled by the transferor unless the Board, after opportunity for hearing, determines that the transferor is not in fact capable of controlling the transferee. “(h) The application of this Act and of section 23A of the Federal Reserve Act (12 U.S.C. 371), as amended, shall not be affected by the 48 Stat. 183; Post, pp. 241, 243. 12 USC 371c. fact that a transaction takes place wholly or partly outside the United States or that a company is organized or operates outside the United States: Provided, however, That the prohibitions of section 4 of this Act shall not apply to shares of any company organized under the laws Post, pp. 238–240. 12 USC 1843. of a foreign country that does not do any business within the United States, if such shares are held or acquired by a bank holding company that is principally engaged in the banking business outside the United States.”

8. 1970

   Bank Holding Company Act Amendments of 1970

   Pub. L. 91–607 § 101(a) · 84 Stat. 1760

   1. Added · 12 U.S.C. § 1841(a)

      Pub. L. 91–607, § 101(a), in revising the provisions, added par. (1) definition of bank holding company; incorporated provisions of former cl. (1) in provisions designated as par. (2)(A)

   2. Inserted · 12 U.S.C. § 1841(a)

      Pub. L. 91–607, § 101(a), in revising the provisions, inserting text respecting company acting through one or more other persons

   3. Substituted · 12 U.S.C. § 1841(a)

      Pub. L. 91–607, § 101(a), in revising the provisions, substituting “power to vote” for “holds with power to vote” and provision for voting of any class of voting securities of the bank or company for prior provision for voting of voting shares of each of two or more banks; incorporated former provisions of former cl. (2) in provisions designated as par. (2)(B), providing for election of trustees

   4. Substituted · 12 U.S.C. § 1841(a)

      Pub. L. 91–607, § 101(a), in revising the provisions, substituting bank or company for directors of each of two or more banks designated cl. (A) as par. (5)(A)

   5. Inserted · 12 U.S.C. § 1841(a)

      Pub. L. 91–607, § 101(a), in revising the provisions, inserting provision that acquisition of shares shall not be deemed acquisition of shares in a fiduciary capacity if the banks or company has sole discretionary authority to exercise voting rights with respect thereto, and making such limitation applicable to bank or company acquiring the shares prior to Dec. 31, 1970, where there is right of divestiture of voting rights and there is a failure to exercise that right within reasonable time not exceeding one year after Dec. 31, 1970; incorporated former cls. (B) and (C) in provisions designated as pars. (5)(B) and (C); added par. (5)(D) to (F);

   6. Amended · 12 U.S.C. § 1841(a)

      Pub. L. 91–607, § 101(a), in revising the provisions, designated concluding part of first sentence as par. (6)

   7. Substituted · 12 U.S.C. § 1841(a)

      Pub. L. 91–607, § 101(a), in revising the provisions, substituting “from the date on which” for “from the date as of which”

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 91–607, § 101(a), in revising the provisions, added par. (1) definition of bank holding company; incorporated provisions of former cl. (1) in provisions designated as par. (2)(A), inserting text respecting company acting through one or more other persons, substituting “power to vote” for “holds with power to vote” and provision for voting of any class of voting securities of the bank or company for prior provision for voting of voting shares of each of two or more banks; incorporated former provisions of former cl. (2) in provisions designated as par. (2)(B), providing for election of trustees and substituting bank or company for directors of each of two or more banks designated cl. (A) as par. (5)(A), inserting provision that acquisition of shares shall not be deemed acquisition of shares in a fiduciary capacity if the banks or company has sole discretionary authority to exercise voting rights with respect thereto, and making such limitation applicable to bank or company acquiring the shares prior to Dec. 31, 1970, where there is right of divestiture of voting rights and there is a failure to exercise that right within reasonable time not exceeding one year after Dec. 31, 1970; incorporated former cls. (B) and (C) in provisions designated as pars. (5)(B) and (C); added par. (5)(D) to (F); and designated concluding part of first sentence as par. (6), substituting “from the date on which” for “from the date as of which”.

   Enacted provision · exact public law section
   (a) Section 2(a) of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(a)) is amended to read as follows: “Sec. 2. (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 Act. “(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 Act, 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 holding company by virtue of its ownership or control of shares in a fiduciary capacity, except as provided in paragraphs (2) and (3) of subsection (g) of this section. For the purpose of the preceding sentence, bank shares shall not be deemed to have been acquired in a fiduciary capacity if the acquiring bank or company has sole discretionary authority to exercise voting rights with respect thereto; except that this limitation is applicable in the case of a bank or company acquiring such shares prior to the date of enactment of the Bank Holding Company Act Amendments of 1970 only if the bank or company has the right consistent with its obligations under the instrument, agreement, or other arrangement establishing the fiduciary relationship to divest itself of such voting rights and fails to exercise that right to divest within a reasonable period not to exceed one year after the date of enactment of the Bank Holding Company Act Amendments of 1970. “(B) No company is a bank holding company by virtue of its ownership or control of shares acquired by it in connection with its underwriting of securities if such shares are held only for such period of time as will permit the sale thereof on a reasonable basis. “(C) No company formed for the sole purpose of participating in a proxy solicitation is a bank holding company by virtue of its control of voting rights of shares acquired in the course of such solicitation. “(D) No company is a bank holding company by virtue of its ownership or control of shares acquired in securing or collecting a debt previously contracted in good faith, until two years after the date of acquisition. “(E) No company is a bank holding company by virtue of its ownership or control of any State chartered bank or trust company which is wholly owned by thrift institutions and which restricts itself to the acceptance of deposits from thrift institutions, deposits arising out of the corporate business of its owners, and deposits of public moneys. “(F) No trust company or mutual savings bank which is an 64 Stat. 873. 12 USC 1811 note. insured bank under the Federal Deposit Insurance Act is a bank holding company by virtue of its direct or indirect ownership or control of one bank located in the same State, if (i) such ownership or control existed on the date of enactment of the Bank Holding Company Act Amendments of 1970 and is specifically authorized by applicable State law, and (ii) the trust company or mutual savings bank does not after that date acquire an interest in any company that, together with any other interest it holds in that company, will exceed 5 per centum of any class of the voting shares of that company, except that this limitation shall not be applicable to investments of the trust company or mutual savings bank, direct and indirect, which are otherwise in accordance with the limitations applicable to national banks under section 5136 of the Revised Statutes (12 U.S.C. 24). “(6) For the purposes of this Act, any successor to a bank holding company shall be deemed to be a bank holding company from the date on which the predecessor company became a bank holding company.”

9. 1970

   Bank Holding Company Act Amendments of 1970

   Pub. L. 91–607 § 101(b) · 84 Stat. 1760

   Inserted · 12 U.S.C. § 1841(b)

   Pub. L. 91–607, § 101(b), redefined term “company” to include “partnership”, which has been expressly excluded, and inserted definition of “company covered in 1970”

   Source evidence

   Code amendment note
   Subsec. (b). Pub. L. 91–607, § 101(b), redefined term “company” to include “partnership”, which has been expressly excluded, and inserted definition of “company covered in 1970”.

   Enacted provision · exact public law section
   (b) Section 2(b) of such Act is amended— (1) by inserting “partnership” after “corporation”; (2) by striking out “(1)”; (3) by striking out “, or (2) any partnership”; and (4) by adding after the period a new sentence as follows: “Company covered in 1970.” “‘Company covered in 1970’ means a company which becomes a bank holding company as a result of the enactment of the Bank Holding Company Act Amendments of 1970 and which would have been a bank holding company on June 30, 1968, if those amendments had been enacted on that date.”

10. 1970

    Bank Holding Company Act Amendments of 1970

    Pub. L. 91–607 § 101(c) · 84 Stat. 1760

    1. Amended · 12 U.S.C. § 1841(c)

       Pub. L. 91–607, § 101(c), redefined term “bank” to mean any institution organized under Federal, State, District of Columbia, etc., laws, designated existing provisions as cl. (1)

    2. Added · 12 U.S.C. § 1841(c)

       Pub. L. 91–607, § 101(c), redefined term “bank” to mean any institution organized under Federal, State, District of Columbia, etc., laws, added cl. (2), and excepted from exclusion from such term an organization which does business within the United States as an incident to its activities outside the United States

    Source evidence

    Code amendment note
    Subsec. (c). Pub. L. 91–607, § 101(c), redefined term “bank” to mean any institution organized under Federal, State, District of Columbia, etc., laws, designated existing provisions as cl. (1), added cl. (2), and excepted from exclusion from such term an organization which does business within the United States as an incident to its activities outside the United States.

    Enacted provision · exact public law section
    (c) The first sentence of section 2(c) of such Act is amended to read “Bank.” as follows; “ ‘Bank’ means any institution organized under the laws of the United States, any State of the United States, the District of Columbia, any territory of the United States, Puerto Rico, Guam, American Samoa, or the Virgin Islands which (1) accepts deposits that the depositor has a legal right to withdraw on demand, and (2) engages in the business of making commercial loans. Such term does not include any organization operating under section 25 or section 39 Stat. 755; 41 Stat. 378; 80 Stat. 241. 12 USC 601–631. 25(a) of the Federal Reserve Act, or any organization which does not do business within the United States except as an incident to its activities outside the United States.”

11. 1970

    Bank Holding Company Act Amendments of 1970

    Pub. L. 91–607 § 101(d) · 84 Stat. 1760

    Added · 12 U.S.C. § 1841(d)(3)

    Pub. L. 91–607, § 101(d), added cl. (3)

    Source evidence

    Code amendment note
    Subsec. (d)(3). Pub. L. 91–607, § 101(d), added cl. (3).

    Enacted provision · exact public law section
    (d) Section 2(d) of such Act is amended— Subsidiary. 80 Stat. 236. 12 USC 1841. (1) by striking out “or (2)” and inserting in lieu thereof “(2)”; and (2) by striking out the period and inserting in lieu thereof the following: “; or (3) any company with respect to the management or policies of which such bank holding company has the power, directly or indirectly, to exercise a controlling influence, us determined by the Board, after notice and opportunity for hearing.”

12. 1970

    Bank Holding Company Act Amendments of 1970

    Pub. L. 91–607 § 101(e) · 84 Stat. 1760

    Added · 12 U.S.C. § 1841(i)

    Pub. L. 91–607, § 101(e), added subsec. (i)

    Source evidence

    Code amendment note
    Subsec. (i). Pub. L. 91–607, § 101(e), added subsec. (i).

    Enacted provision · exact public law section
    (e) Section 2 of such Act is further amended by adding at the end “Thrift institution.” thereof a new subsection as follows: “(i) The term ‘thrift institution’ means (1) a domestic building and loan or savings and loan association, (2) a cooperative bunk without capital stock organized and operated for mutual purposes and without profit, or (3) a mutual savings bank not having capital stock represented by shares.”

13. 1977

    Pub. L. 95–188 title III § 301(b) · 91 Stat. 1387

    Changed · 12 U.S.C. § 1841(a)(5)(D)

    Pub. L. 95–188 authorized the Board to extend the time for disposition of acquired shares for not more than one year at a time and three years in the aggregate

    Source evidence

    Code amendment note
    Subsec. (a)(5)(D). Pub. L. 95–188 authorized the Board to extend the time for disposition of acquired shares for not more than one year at a time and three years in the aggregate.

    Enacted provision · exact public law section
    (b) Section 2(a)(5)(D) of such Act (12 U.S.C. 1841(a)(5)(D)) is amended by adding at the end thereof the following new sentence: “The Board is authorized upon application by a company to extend, from time to time for not more than one year at a time, the two-year period referred to herein for disposing of any shares acquired by a company in the regular course of securing or collecting a debt previously contracted in good faith, if, in the Board’s judgment, such an extension would not be detrimental to the public interest, but no such extension shall in the aggregate exceed three years.”.

14. 1978

    International Banking Act of 1978

    Pub. L. 95–369 § 8(e) · 92 Stat. 607

    1. Amended · 12 U.S.C. § 1841(h)

       Pub. L. 95–369 designated existing provisions as par. (1)

    2. Substituted · 12 U.S.C. § 1841(h)

       Pub. L. 95–369 substituted “Except as provided by paragraph (2), the application” for “The application”; struck out a proviso holding the prohibitions of section 1843 not applicable to shares of any company organized under the laws of a foreign country not doing business within the United States, if such shares are held or acquired by a bank holding company principally engaged in banking business outside the United States;

    3. Added · 12 U.S.C. § 1841(h)

       Pub. L. 95–369 added par. (2)

    Source evidence

    Code amendment note
    Subsec. (h). Pub. L. 95–369 designated existing provisions as par. (1), substituted “Except as provided by paragraph (2), the application” for “The application”; struck out a proviso holding the prohibitions of section 1843 not applicable to shares of any company organized under the laws of a foreign country not doing business within the United States, if such shares are held or acquired by a bank holding company principally engaged in banking business outside the United States; and added par. (2).

    Enacted provision · exact public law section
    (e) Section 2(h) of the Bank Holding Company Act of 1956 is 12 USC 1841. amended (1) by striking out “(h) The” and inserting in lieu thereof “(h)(1) Except as provided by paragraph (2), the”, (2) by striking out the proviso, and (3) by inserting at the end thereof the following: “(2) The prohibitions of section 4 of this Act shall not apply to 12 USC 1843. shares of any company organized under the laws of a foreign country (or to shares held by such company in any company engaged in the same general line of business as the investor company or in a business related to the business of the investor company) that is principally engaged in business outside the United States if such shares are held or acquired by a bank holding company organized under the laws of a foreign country that is principally engaged in the banking business outside the United States, except that (1) such exempt foreign company (A) may engage in or hold shares of a company engaged in the business of underwriting, selling or distributing securities in the United States only to the extent that a bank holding company may do so under this Act and under regulations or orders issued by the Board under this Act, and (B) may engage in the United States in any banking or financial operations or types of activities permitted under section 4(c)(8) or in any order or regulation issued by the Board under such section only with the Board’s prior approval under that section, and (2) no domestic office or subsidiary of a bank holding company or subsidiary thereof holding shares of such company may extend credit to a domestic office or subsidiary of such exempt company on terms more favorable than those afforded similar borrowers in the United States.”.

15. 1982

    Garn-St Germain Depository Institutions Act of 1982

    Pub. L. 97–320 § 404(d)(1) · 96 Stat. 1469

    Inserted · 12 U.S.C. § 1841(c)

    Pub. L. 97–320, § 404(d)(1), inserted references to State chartered banks and national banking associations as being included in definition of “bank”

    Source evidence

    Code amendment note
    Subsec. (c). Pub. L. 97–320, § 404(d)(1), inserted references to State chartered banks and national banking associations as being included in definition of “bank”.

    Enacted provision · exact public law section
    (1) Section 2(c) of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(c)) is amended by adding at the end thereof the following: “The term ‘bank’ also includes a State chartered bank or a national banking association which is owned exclusively (except to the extent directors’ qualifying shares are required by law) by other depository institutions or by a bank holding company which is owned exclusively by other depository institutions and is organized to engage exclusively in providing services for other depository institutions and their officers, directors, and employees.”.

16. 1982

    Thrift Institutions Restructuring Act

    Pub. L. 97–320 § 333 · 96 Stat. 1469

    Changed · 12 U.S.C. § 1841(c)

    Pub. L. 97–320, § 333, excepted from term “bank” an institution the accounts of which are insured by the Federal Savings and Loan Insurance Corporation or an institution chartered by the Federal Home Loan Bank Board

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 97–320, § 333, excepted from term “bank” an institution the accounts of which are insured by the Federal Savings and Loan Insurance Corporation or an institution chartered by the Federal Home Loan Bank Board.

    Enacted provision · exact public law section
    Sec. 333. regulatory jurisdiction Section 2(c) of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(c)) is amended by inserting after “Islands” the following: “, except an institution the accounts of which are insured by the Federal Savings and Loan Insurance Corporation or an institution chartered by the Federal Home Loan Bank Board,”.

17. 1982

    Garn-St Germain Depository Institutions Act of 1982

    Pub. L. 97–320 § 118(b) · 96 Stat. 1469

    Added · 12 U.S.C. § 1841(i)(4)

    Pub. L. 97–320, § 118(b), added cl. (4)

    Source evidence

    Code amendment note
    Subsec. (i)(4). Pub. L. 97–320, § 118(b), added cl. (4).

    Enacted provision · exact public law section
    (b) Section 2(i) of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(i)l is amended by— (1) striking out “or” before “(3)”; and (2) by inserting before the period at the end thereof the following: “or (4) a Federal savings bank”.

18. 1987

    Competitive Equality Amendments of 1987

    Pub. L. 100–86 § 101(e) · 101 Stat. 552

    Amended · 12 U.S.C. § 1841(a)(5)(E)

    Pub. L. 100–86, § 101(e), amended subpar. (E) generally. Prior to amendment, subpar. (E) read as follows: “No company is a bank holding company by virtue of its ownership or control of any State chartered bank or trust company which is wholly owned by thrift institutions and which restricts itself to the acceptance of deposits from thrift institutions, deposits arising out of the corporate business of its owners, and deposits of public moneys.”

    Source evidence

    Code amendment note
    Subsec. (a)(5)(E). Pub. L. 100–86, § 101(e), amended subpar. (E) generally. Prior to amendment, subpar. (E) read as follows: “No company is a bank holding company by virtue of its ownership or control of any State chartered bank or trust company which is wholly owned by thrift institutions and which restricts itself to the acceptance of deposits from thrift institutions, deposits arising out of the corporate business of its owners, and deposits of public moneys.”

    Enacted provision · exact public law section
    (e) Thrift Institutions’ Bank.— Section 2(a)(5)(E) of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(a)(5)(E)) is amended to read as follows: “(E) No company is a bank holding company by virtue of its ownership or control of any State-chartered bank or trust company which— “(i) is wholly owned by thrift institutions or savings 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 bank or trust company; or “(III) deposits of public moneys.”.

19. 1987

    Competitive Equality Amendments of 1987

    Pub. L. 100–86 § 101(a)(1) · 101 Stat. 552

    Amended · 12 U.S.C. § 1841(c)

    Pub. L. 100–86, § 101(a)(1), amended subsec. (c) generally. Prior to amendment, subsec. (c) read as follows: “ ‘Bank’ means any institution organized under the laws of the United States, any State of the United States, the District of Columbia, any territory of the United States, Puerto Rico, Guam, American Samoa, or the Virgin Islands, except an institution the accounts of which are insured by the Federal Savings and Loan Insurance Corporation or an institution chartered by the Federal Home Loan Bank Board, which (1) accepts deposits that the depositor has a legal right to withdraw on demand, and (2) engages in the business of making commercial loans. Such term does not include any organization operating under section 25 or section 25 (a) of the Federal Reserve Act, or any organization which does not do business within the United States except as an incident to its activities outside the United States. ‘District bank’ means any bank organized or operating under the Code of Law for the District of Columbia. The term ‘bank’ also includes a State chartered bank or a national banking association which is owned exclusively (except to the extent directors’ qualifying shares are required by law) by other depository institutions or by a bank holding company which is owned exclusively by other depository institutions and is organized to engage exclusively in providing services for other depository institutions and their officers, directors, and employees.”

    Source evidence

    Code amendment note
    Subsec. (c). Pub. L. 100–86, § 101(a)(1), amended subsec. (c) generally. Prior to amendment, subsec. (c) read as follows: “ ‘Bank’ means any institution organized under the laws of the United States, any State of the United States, the District of Columbia, any territory of the United States, Puerto Rico, Guam, American Samoa, or the Virgin Islands, except an institution the accounts of which are insured by the Federal Savings and Loan Insurance Corporation or an institution chartered by the Federal Home Loan Bank Board, which (1) accepts deposits that the depositor has a legal right to withdraw on demand, and (2) engages in the business of making commercial loans. Such term does not include any organization operating under section 25 or section 25 (a) of the Federal Reserve Act, or any organization which does not do business within the United States except as an incident to its activities outside the United States. ‘District bank’ means any bank organized or operating under the Code of Law for the District of Columbia. The term ‘bank’ also includes a State chartered bank or a national banking association which is owned exclusively (except to the extent directors’ qualifying shares are required by law) by other depository institutions or by a bank holding company which is owned exclusively by other depository institutions and is organized to engage exclusively in providing services for other depository institutions and their officers, directors, and employees.”

    Enacted provision · exact public law section
    (1) Amendment to definition of bank.— Section 2(c) of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(c)) is amended to read as follows: “(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 12 USC 1813. Federal Deposit Insurance Act. “(B) An institution organized under the laws of the United States, any State of the United States, the District of Columbia, any territory of the United States, Puerto Rico, Guam, American Samoa, or the Virgin Islands which both— “(i) accepts demand deposits or deposits that the depositor may withdraw by check or similar means for payment to third parties or others; and “(ii) is engaged in the business of making commercial loans. “(2) Exceptions.— The term ‘bank’ does not include any of the following: “(A) A foreign bank which would be a bank within the meaning of paragraph (1) solely because such bank has an insured 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 the United States except as an incident to its activities outside the United States. “(D) An institution that functions solely in a trust or fiduciary capacity, if— “(i) all or substantially all of the deposits of such institution are in trust funds and are received in a bona fide fiduciary capacity; “(ii) no deposits of such institution which are insured by the Federal Deposit Insurance Corporation are offered or marketed by or through an affiliate of such institution; “(iii) such institution does not accept demand deposits or deposits that the depositor may withdraw by check or similar means for payment to third parties or others or make commercial loans; and “(iv) such institution does not— “(I) obtain payment or payment related services from any Federal Reserve bank, including any service referred to in section 11A of the Federal Reserve Act; or 12 USC 248a. “(II) exercise discount or borrowing privileges pursuant to section 19(b)(7) of the Federal Reserve Act. 12 USC 461. “(E) A credit union (as described in section 19(b)(1)(A)(iv) of the Federal Reserve Act). “(F) An institution which— “(i) engages only in credit card operations; “(ii) does not accept demand deposits or deposits that the depositor may withdraw by check or similar means for payment to third parties or others; “(iii) does not accept any savings or time deposit of less than $100,000; “(iv) maintains only one office that accepts deposits; and “(v) does not engage in the business of making commercial loans. “(G) An organization operating under section 25 or section 25(a) of the Federal Reserve Act. 12 USC 601–604a, 611–631 “(H) An industrial loan company, industrial bank, or other similar institution which is— “(i) an institution organized under the laws of a State which, on March 5, 1987, had in effect or had under consideration in such State’s legislature a statute which required or would require such institution to obtain insurance under the Federal Deposit Insurance Act— 12 USC 1811 note. “(I) which does not accept demand deposits that the depositor may withdraw by check or similar means for payment to third parties; “(II) which has total assets of less than $100,000,000; or “(III) the control of which is not acquired by any company after the date of the enactment of the Competitive Equality Amendments of 1987; or “(ii) an institution which does not, directly, indirectly, or through an affiliate, engage in any activity in which it was not lawfully engaged as of March 5, 1987, except that this subparagraph shall cease to apply to any institution which permits any overdraft (including any intraday overdraft), or which incurs any such overdraft in such institution’s account at a Federal Reserve bank, on behalf of an affiliate if such overdraft is not the result of an inadvertent computer or accounting error that is beyond the control of both the institution and the affiliate. “(I) The Investors Fiduciary Trust Company, located in Kansas City, Missouri, so long as such institution— “(i) engages only in trust, fiduciary, and agency activities in which it was lawfully engaged on March 5, 1987; “(ii) engages in such activities only at the same number of locations at which such activities were conducted on such date; “(iii) does not accept demand deposits other than demand deposits which are maintained by such institution in— “(I) a trust or fiduciary capacity; “(II) the institution’s capacity as a custodian or as a paying, transfer, shareholder servicing, securities clearing, escrow, or dividend disbursing agent; or “(III) any capacity which is incidental to the trust or fiduciary activities of the institution; “(iv) does not engage in the business of making commercial loans; “(v) does not exercise discount or borrowing privileges pursuant to section 19(b)(7) of the Federal Reserve 12 USC 461. Act; and “(vi) is not directly or indirectly controlled by any company other than a company which directly or indirectly controlled such institution on March 5, 1987. “(J) A savings bank (as defined in section 3(g) of the Post, p. 563. Federal Deposit Insurance Act) which— “(i) is an insured bank (as defined in section 3(h) of such Act); “(ii) is a subsidiary of the Great Western Financial Corporation as a result of an approval in writing by the State bank supervisor of the State of New York before June 30, 1987; “(iii) meets or exceeds the investment requirements which an insured institution must meet in order to be a qualified thrift lender under section 408(o) of the Post, p. 571. National Housing Act; and “(iv) does not, directly, or through insurance products such savings bank receives from or provides to the Great Western Financial Corporation, engage in the sale or underwriting of insurance, except that this subparagraph shall cease to apply with respect to such savings bank or any successor institution if any deposits of any other subsidiary or affiliate of the Great Western Financial Corporation which are subject to an assessment of an insurance premium under subsection (b) Post, p. 601. or (c) of section 404 of the National Housing Act are, directly or indirectly by any device whatsoever, transferred to or acquired by such savings bank or any successor institution which would have the effect of materially reducing such premium assessments. The exemption provided by this subparagraph shall cease to apply if Great Western Financial Corporation uses such savings bank or any successor institution as a vehicle to move such Corporation from Federal Savings and Loan Insurance Corporation insurance to Federal Deposit Insurance Corporation insurance. “(3) District bank.— The term ‘District bank’ means any bank operating under the Code of Law for the District of Columbia.”.

20. 1987

    Competitive Equality Banking Act of 1987

    Pub. L. 100–86 § 205(a) · 101 Stat. 552

    1. Added · 12 U.S.C. § 1841(h)(2)

       Pub. L. 100–86, § 205(a), added par. (2)

    2. Struck · 12 U.S.C. § 1841(h)(2)

       Pub. L. 100–86, § 205(a), struck out former par. (2) which read as follows: “The prohibitions of section 1843 of this title shall not apply to shares of any company organized under the laws of a foreign country (or to shares held by such company in any company engaged in the same general line of business as the investor company or in a business related to the business of the investor company) that is principally engaged in business outside the United States if such shares are held or acquired by a bank holding company organized under the laws of a foreign country that is principally engaged in the banking business outside the United States, except that (1) such exempt foreign company (A) may engage in or hold shares of a company engaged in the business of underwriting, selling or distributing securities in the United States only to the extent that a bank holding company may do so under this chapter and under regulations or orders issued by the Board under this chapter, and (B) may engage in the United States in any banking or financial operations or types of activities permitted under section 1843(c)(8) of this title or in any order or regulation issued by the Board under such section only with the Board’s prior approval under that section, and (2) no domestic office or subsidiary of a bank holding company or subsidiary thereof holding shares of such company may extend credit to a domestic office or subsidiary of such exempt company on terms more favorable than those afforded similar borrowers in the United States.”

    Source evidence

    Code amendment note
    Subsec. (h)(2). Pub. L. 100–86, § 205(a), added par. (2) and struck out former par. (2) which read as follows: “The prohibitions of section 1843 of this title shall not apply to shares of any company organized under the laws of a foreign country (or to shares held by such company in any company engaged in the same general line of business as the investor company or in a business related to the business of the investor company) that is principally engaged in business outside the United States if such shares are held or acquired by a bank holding company organized under the laws of a foreign country that is principally engaged in the banking business outside the United States, except that (1) such exempt foreign company (A) may engage in or hold shares of a company engaged in the business of underwriting, selling or distributing securities in the United States only to the extent that a bank holding company may do so under this chapter and under regulations or orders issued by the Board under this chapter, and (B) may engage in the United States in any banking or financial operations or types of activities permitted under section 1843(c)(8) of this title or in any order or regulation issued by the Board under such section only with the Board’s prior approval under that section, and (2) no domestic office or subsidiary of a bank holding company or subsidiary thereof holding shares of such company may extend credit to a domestic office or subsidiary of such exempt company on terms more favorable than those afforded similar borrowers in the United States.”

    Enacted provision · exact public law section
    (a) Exception to Nonbanking Prohibitions.— Section 2(h) of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(h)) is amended by striking out paragraph (2) and by adding after paragraph (1) the following new paragraphs: “(2) Except as provided in paragraph (3), the prohibitions of section 4 of this Act shall not apply to shares of any company organized under the laws of a foreign country (or to shares held by such company in any company engaged in the same general line of business as the investor company or in a business related to the business of the investor company) that is principally engaged in business outside the United States if such shares are held or acquired by a bank holding company organized under the laws of a foreign country that is principally engaged in the banking business outside the United States. For the purpose of this subsection, the term ‘section 2(h)(2) company’ means any company whose shares are held pursuant to this paragraph. “(3) Nothing in paragraph (2) authorizes a section 2(h)(2) company to engage in (or acquire or hold more than 5 percent of the outstanding shares of any class of voting securities of a company engaged in) any banking, securities, insurance, or other financial activities, as defined by the Board, in the United States. This paragraph does not prohibit a section 2(h)(2) company from holding shares that were lawfully acquired before the date of enactment of the Competitive Equality Banking Act of 1987. “(4) No domestic office or subsidiary of a bank holding company or subsidiary thereof holding shares of a section 2(h)(2) company may extend credit to a domestic office or subsidiary of such section 2(h)(2) company on terms more favorable than those afforded similar borrowers in the United States. “(5) No domestic banking office or bank subsidiary of a bank holding company that controls a section 2(h)(2) company may offer or market products or services of such section 2(h)(2) company, or permit its products or services to be offered or marketed by or through such section 2(h)(2) company, unless such products or services were being so offered or marketed as of March 5, 1987, and then only in the same manner in which they were being offered or marketed as of that date.”.

21. 1987

    Competitive Equality Banking Act of 1987

    Pub. L. 100–86 § 205(a) · 101 Stat. 552

    Added · 12 U.S.C. § 1841(h)(3)(5)

    Pub. L. 100–86, § 205(a), added pars. (3) to (5)

    Source evidence

    Code amendment note
    Subsec. (h)(3) to (5). Pub. L. 100–86, § 205(a), added pars. (3) to (5).

    Enacted provision · exact public law section
    (a) Exception to Nonbanking Prohibitions.— Section 2(h) of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(h)) is amended by striking out paragraph (2) and by adding after paragraph (1) the following new paragraphs: “(2) Except as provided in paragraph (3), the prohibitions of section 4 of this Act shall not apply to shares of any company organized under the laws of a foreign country (or to shares held by such company in any company engaged in the same general line of business as the investor company or in a business related to the business of the investor company) that is principally engaged in business outside the United States if such shares are held or acquired by a bank holding company organized under the laws of a foreign country that is principally engaged in the banking business outside the United States. For the purpose of this subsection, the term ‘section 2(h)(2) company’ means any company whose shares are held pursuant to this paragraph. “(3) Nothing in paragraph (2) authorizes a section 2(h)(2) company to engage in (or acquire or hold more than 5 percent of the outstanding shares of any class of voting securities of a company engaged in) any banking, securities, insurance, or other financial activities, as defined by the Board, in the United States. This paragraph does not prohibit a section 2(h)(2) company from holding shares that were lawfully acquired before the date of enactment of the Competitive Equality Banking Act of 1987. “(4) No domestic office or subsidiary of a bank holding company or subsidiary thereof holding shares of a section 2(h)(2) company may extend credit to a domestic office or subsidiary of such section 2(h)(2) company on terms more favorable than those afforded similar borrowers in the United States. “(5) No domestic banking office or bank subsidiary of a bank holding company that controls a section 2(h)(2) company may offer or market products or services of such section 2(h)(2) company, or permit its products or services to be offered or marketed by or through such section 2(h)(2) company, unless such products or services were being so offered or marketed as of March 5, 1987, and then only in the same manner in which they were being offered or marketed as of that date.”.

22. 1987

    Competitive Equality Amendments of 1987

    Pub. L. 100–86 § 101(a)(2) · 101 Stat. 552

    Amended · 12 U.S.C. § 1841(i)

    Pub. L. 100–86, § 101(a)(2), amended subsec. (i) generally. Prior to amendment, subsec. (i) read as follows: “The term ‘thrift institution’ means (1) a domestic building and loan or savings and loan association, (2) a cooperative bank without capital stock organized and operated for mutual purposes and without profit, (3) a mutual savings bank not having capital stock represented by shares or (4) a Federal savings bank.”

    Source evidence

    Code amendment note
    Subsec. (i). Pub. L. 100–86, § 101(a)(2), amended subsec. (i) generally. Prior to amendment, subsec. (i) read as follows: “The term ‘thrift institution’ means (1) a domestic building and loan or savings and loan association, (2) a cooperative bank without capital stock organized and operated for mutual purposes and without profit, (3) a mutual savings bank not having capital stock represented by shares or (4) a Federal savings bank.”

    Enacted provision · exact public law section
    (2) Amendment to definition of thrift institution.— section 2(i) of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(c)) is amended to read as follows: “(i) Thrift Institution.— For purposes of this Act, the term ‘thrift institution’ means— “(1) any domestic building and loan or savings and loan association; “(2) any cooperative bank without capital stock organized and operated for mutual purposes and without profit; “(3) any Federal savings bank; and “(4) any State-chartered savings bank the holding company of which is registered pursuant to section 408 of the National Housing Act.”. Post, p. 571.

23. 1987

    Competitive Equality Amendments of 1987

    Pub. L. 100–86 § 101(a)(3) · 101 Stat. 552

    Added · 12 U.S.C. § 1841(j)(m)

    Pub. L. 100–86, § 101(a)(3), added subsecs. (j) to (m)

    Source evidence

    Code amendment note
    Subsecs. (j) to (m). Pub. L. 100–86, § 101(a)(3), added subsecs. (j) to (m).

    Enacted provision · exact public law section
    (3) Additional definitions.— Section 2 of the Bank Holding Company Act of 1956 (12 U.S.C. 1841) is amended by adding at the end thereof the following new subsections: “(j) Insured Institution.— For purposes of this Act, the term ‘insured institution’ has the meaning given to such term in section 408(a)(1) of the National Housing Act. “(k) Affiliate.— For purposes of this Act, the term ‘affiliate’ means any company that controls, is controlled by, or is under common control with another company. “(l) Savings Bank Holding Company.— For purposes of this Act, the term ‘savings bank holding company’ means any company which controls one or more qualified savings banks if the aggregate total assets of such savings banks constitute, upon formation of the holding company and at all times thereafter, at least 70 percent of the total assets of such company. “(m) Qualified Savings Bank.— For purposes of this Act, the term ‘qualified savings bank’— “(1) means any savings bank (as defined in section 3(g) of the Federal Deposit Insurance Act) which was organized on or Post, p. 563. before March 5, 1987; and “(2) includes any cooperative bank that is an insured bank (as defined in section 3(h) of the Federal Deposit Insurance Act) and any interim savings bank that is established to facilitate a corporate reorganization, or the formation of a holding company, involving a savings bank described in paragraph (1).”.

24. 1989

    Financial Institutions Reform, Recovery, and Enforcement Act of 1989

    Pub. L. 101–73 title VI § 602(a) · 103 Stat. 183

    1. Amended · 12 U.S.C. § 1841(j)

       Pub. L. 101–73 amended subsec. (j) generally

    2. Substituted · 12 U.S.C. § 1841(j)

       Pub. L. 101–73 substituting provisions defining “saving association” or “insured institution” for provisions defining “insured institution”

    Source evidence

    Code amendment note
    Subsec. (j). Pub. L. 101–73 amended subsec. (j) generally, substituting provisions defining “saving association” or “insured institution” for provisions defining “insured institution”.

    Enacted provision · exact public law section
    (a) Definitions.— Section 2(j) of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(j)) is amended to read as follows: “(j) Definition of Savings Associations and Related Term.— The term ‘savings association’ or ‘insured institution’ means— “(1) any Federal savings association or Federal savings bank; “(2) any building and loan association, savings and loan association, homestead association, or cooperative bank if such association or cooperative bank is a member of the Savings Association Insurance Fund; and “(3) any savings bank or cooperative bank which is deemed by the Director of the Office of Thrift Supervision to be a savings association under section 10Q) of the Home Owners’ Loan Act.”.

25. 1994

    Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994

    Pub. L. 103–328 title I § 101(c) · 108 Stat. 2338

    Added · 12 U.S.C. § 1841(n); 12 U.S.C. § 1841(o)

    Pub. L. 103–328 added subsecs. (n) and (o)

    Source evidence

    Code amendment note
    Subsecs. (n), (o). Pub. L. 103–328 added subsecs. (n) and (o).

    Enacted provision · exact public law section
    (c) Definitions.— Section 2 of the Bank Holding Company Act of 1956 (12 U.S.C. 1841) is amended by adding at the end the following new subsections: “(n) Incorporated Definitions.— For purposes of this Act, the terms ‘insured depository institution’, ‘appropriate Federal banking agency’, ‘default’, ‘in danger of default’, and ‘State bank supervisor’ have the same meanings as in section 3 of the Federal Deposit Insurance Act. “(o) Other Definitions.— For purposes of this Act, the following definitions shall apply: “(1) Adequately capitalized.— The term ‘adequately capitalized’ means a level of capitalization which meets or exceeds all applicable Federal regulatory capital standards. “(2) Antitrust laws.— Except as provided in section 11, the term ‘antitrust laws’— “(A) has the same meaning as in subsection (a) of the first section of the Clayton Act; and “(B) includes section 5 of the Federal Trade Commission Act to the extent that such section 5 relates to unfair methods of competition. “(3) Branch.— The term ‘branch’ means a domestic branch (as defined in section 3 of the Federal Deposit Insurance Act). “(4) Home state.— The term ‘home State’ means— “(A) with respect to a national bank, the State in which the main office of the bank is located; “(B) with respect to a State bank, the State by which the bank is chartered; and “(C) with respect to a bank holding company, the State in which the total deposits of all banking subsidiaries of such company are the largest on the later of— “(i) July 1, 1966; or “(ii) the date on which the company becomes a bank holding company under this Act. “(5) Host state.— The term ‘host State’ means— “(A) with respect to a bank, a State, other than the home State of the bank, in which the bank maintains, or seeks to establish and maintain, a branch; and “(B) with respect to a bank holding company, a State, other than the home State of the company, in which the company controls, or seeks to control, a bank subsidiary. “(6) Out-of-state bank.— The term ‘out-of-State bank’ means, with respect to any State, a bank whose home State is another State. “(7) Out-of-state bank holding company.— The term ‘out-of-State bank holding company’ means, with respect to any State, a bank holding company whose home State is another State.”.

26. 1996

    Department of Commerce and Related Agencies Appropriations Act, 1997

    Pub. L. 104–208 § 2610(1) · 110 Stat. 3009

    Inserted · 12 U.S.C. § 1841(b)

    Pub. L. 104–208, § 2610(1), inserted “, and shall not include a qualified family partnership” after “by any State”

    Source evidence

    Code amendment note
    Subsec. (b). Pub. L. 104–208, § 2610(1), inserted “, and shall not include a qualified family partnership” after “by any State”.

    Enacted provision · exact public law section
    (1) in subsection (b), by inserting “, and shall not include a qualified family partnership” after “by any State”; and

27. 1996

    Department of Commerce and Related Agencies Appropriations Act, 1997

    Pub. L. 104–208 § 2304(b) · 110 Stat. 3009

    Inserted · 12 U.S.C. § 1841(c)(2)(F)

    Pub. L. 104–208, § 2304(b), inserted “, including an institution that accepts collateral for extensions of credit by holding deposits under $100,000, and by other means” after “An institution” in introductory provisions

    Source evidence

    Code amendment note
    Subsec. (c)(2)(F). Pub. L. 104–208, § 2304(b), inserted “, including an institution that accepts collateral for extensions of credit by holding deposits under $100,000, and by other means” after “An institution” in introductory provisions.

    Enacted provision · exact public law section
    (b) Limited Purpose Bank Exception.— Section 2(c)(2)(F) of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(c)(2)(F)) is amended by inserting “, including an institution that accepts collateral for extensions of credit by holding deposits under $100,000, and by other means” after “An institution”.

28. 1996

    Department of Commerce and Related Agencies Appropriations Act, 1997

    Pub. L. 104–208 § 2207 · 110 Stat. 3009

    Struck · 12 U.S.C. § 1841(g)(3)

    Pub. L. 104–208, § 2207, struck out par. (3) which read as follows: “shares transferred after January 1, 1966, by any bank holding company (or by any company which, but for such transfer, would be a bank holding company) directly or indirectly to any transferee that is indebted to the transferor, or has one or more officers, directors, trustees, or beneficiaries in common with or subject to control by the transferor, shall be deemed to be indirectly owned or controlled by the transferor unless the Board, after opportunity for hearing, determines that the transferor is not in fact capable of controlling the transferee.”

    Source evidence

    Code amendment note
    Subsec. (g)(3). Pub. L. 104–208, § 2207, struck out par. (3) which read as follows: “shares transferred after January 1, 1966, by any bank holding company (or by any company which, but for such transfer, would be a bank holding company) directly or indirectly to any transferee that is indebted to the transferor, or has one or more officers, directors, trustees, or beneficiaries in common with or subject to control by the transferor, shall be deemed to be indirectly owned or controlled by the transferor unless the Board, after opportunity for hearing, determines that the transferor is not in fact capable of controlling the transferee.”

    Enacted provision · exact public law section
    SEC. 2207. ELIMINATION OF APPROVAL REQUIREMENT FOR DIVESTITURES. Section 2(g) of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(g)) is amended— (1) in paragraph (1), by adding “and” at the end; (2) in paragraph (2), by striking “; and” and inserting a period; and (3) by striking paragraph (3).

29. 1996

    Deposit Insurance Funds Act of 1996

    Pub. L. 104–208 § 2704(d)(17) · 110 Stat. 3009

    Repealed · 12 U.S.C. § 1841(j)(2)

    Pub. L. 104–208, § 2704(d)(17), which directed substitution of “Deposit Insurance Fund” for “Savings Association Insurance Fund”, was repealed by Pub. L. 109–171. See Effective Date of 1996 Amendment note below and 2006 Amendment note above

    Source evidence

    Code amendment note
    Subsec. (j)(2). Pub. L. 104–208, § 2704(d)(17), which directed substitution of “Deposit Insurance Fund” for “Savings Association Insurance Fund”, was repealed by Pub. L. 109–171. See Effective Date of 1996 Amendment note below and 2006 Amendment note above.

    Enacted provision · exact public law section
    (17) Amendment to the bank holding company act of 1956.— Section 2(j)(2) of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(j)(2)) is amended by striking “Savings Association Insurance Fund” and inserting “Deposit Insurance Fund”.

30. 1996

    Department of Commerce and Related Agencies Appropriations Act, 1997

    Pub. L. 104–208 § 2208(b)(1) · 110 Stat. 3009

    1. Added · 12 U.S.C. § 1841(o)(1)

       Pub. L. 104–208, § 2208(b)(1), added heading and text of par. (1)

    2. Struck · 12 U.S.C. § 1841(o)(1)

       Pub. L. 104–208, § 2208(b)(1), struck out heading and text of former par. (1). Text read as follows: “The term ‘adequately capitalized’ means a level of capitalization which meets or exceeds all applicable Federal regulatory capital standards.”

    Source evidence

    Code amendment note
    Subsec. (o)(1). Pub. L. 104–208, § 2208(b)(1), added heading and text of par. (1) and struck out heading and text of former par. (1). Text read as follows: “The term ‘adequately capitalized’ means a level of capitalization which meets or exceeds all applicable Federal regulatory capital standards.”

    Enacted provision · exact public law section
    (1) by striking paragraph (1) and inserting the following new paragraph: “(1) Capital terms.— “(A) Insured depository institutions.— With respect to insured depository institutions, the terms ‘well capitalized’, ‘adequately capitalized’, and ‘undercapitalized’ have the same meanings as in section 38(b) of the Federal Deposit Insurance Act. “(B) Bank holding company.— “(i) Adequately capitalized.— With respect to a bank holding company, the term ‘adequately capitalized’ means a level of capitalization which meets or exceeds all applicable Federal regulatory capital standards. “(ii) Well capitalized.— A bank holding company is ‘well capitalized’ if it meets the required capital levels for well capitalized bank holding companies established by the Board. “(C) Other capital terms.— The terms ‘Tier 1’ and ‘risk-weighted assets’ have the meanings given those terms in the capital guidelines or regulations established by the Board for bank holding companies.”; and

31. 1996

    Department of Commerce and Related Agencies Appropriations Act, 1997

    Pub. L. 104–208 § 2208(b)(2) · 110 Stat. 3009

    Added · 12 U.S.C. § 1841(o)(8); 12 U.S.C. § 1841(o)(9)

    Pub. L. 104–208, § 2208(b)(2), added pars. (8) and (9)

    Source evidence

    Code amendment note
    Subsec. (o)(8), (9). Pub. L. 104–208, § 2208(b)(2), added pars. (8) and (9).

    Enacted provision · exact public law section
    (2) by adding at the end the following new paragraphs: “(8) Lead insured depository institutions.— “(A) In general.— The term ‘lead insured depository institution’ means the largest insured depository institution controlled by the subject bank holding company at any time, based on a comparison of the average total risk-weighted assets controlled by each insured depository institution during the previous 12-month period. “(B) Branch or agency.— For purposes of this paragraph and section 4(j)(4), the term ‘insured depository institution’ includes any branch or agency operated in the United States by a foreign bank. “(9) Well managed.— The term ‘well managed’ means— “(A) in the case of any company or depository institution which receives examinations, the achievement of— “(i) a CAMEL composite rating of 1 or 2 (or an equivalent rating under an equivalent rating system) in connection with the most recent examination or subsequent review of such company or institution; and “(ii) at least a satisfactory rating for management, if such rating is given; or “(B) in the case of a company or depository institution that has not received an examination rating, the existence and use of managerial resources which the Board determines are satisfactory.”.

32. 1996

    Department of Commerce and Related Agencies Appropriations Act, 1997

    Pub. L. 104–208 § 2610(2) · 110 Stat. 3009

    Added · 12 U.S.C. § 1841(o)(10)

    Pub. L. 104–208, § 2610(2), added par. (10)

    Source evidence

    Code amendment note
    Subsec. (o)(10). Pub. L. 104–208, § 2610(2), added par. (10).

    Enacted provision · exact public law section
    (2) in subsection (o), by adding at the end the following: “(10) Qualified family partnership.— The term ‘qualified family partnership’ means a general or limited partnership that the Board determines— “(A) does not directly control any bank, except through a registered bank holding company; “(B) does not control more than 1 registered bank holding company; “(C) does not engage in any business activity, except indirectly through ownership of other business entities; “(D) has no investments other than those permitted for a bank holding company pursuant to section 4(c); “(E) is not obligated on any debt, either directly or as a guarantor; “(F) has partners, all of whom are either— “(i) individuals related to each other by blood, marriage (including former marriage), or adoption; or “(ii) trusts for the primary benefit of individuals related as described in clause (i); and “(G) has filed with the Board a statement that includes— “(i) the basis for the eligibility of the partnership under subparagraph (F); “(ii) a list of the existing activities and investments of the partnership; “(iii) a commitment to comply with this paragraph; “(iv) a commitment to comply with section 7 of the Federal Deposit Insurance Act with respect to any acquisition of control of an insured depository institution occurring after date of enactment of this paragraph; and “(v) a commitment to be subject, to the same extent as if the qualified family partnership were a bank holding company— “(I) to examination by the Board to assure compliance with this paragraph; and “(II) to section 8 of the Federal Deposit Insurance Act.”.

33. 1999

    Pub. L. 106–102 § 724 · 113 Stat. 1338

    Inserted · 12 U.S.C. § 1841(a)(5)(E)(i)

    Pub. L. 106–102, § 724, inserted “1 or more” before “thrift institutions”

    Source evidence

    Code amendment note
    Subsec. (a)(5)(E)(i). Pub. L. 106–102, § 724, inserted “1 or more” before “thrift institutions”.

    Enacted provision · exact public law section
    SEC. 724. CONTROL OF BANKERS’ BANKS. Section 2(a)(5)(E)(i) of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(a)(5)(E)(i)) is amended by inserting “1 or more” before “thrift institutions”.

34. 1999

    Pub. L. 106–102 § 107(c) · 113 Stat. 1338

    Inserted · 12 U.S.C. § 1841(c)(2)(H)

    Pub. L. 106–102, § 107(c), inserted “, or that is otherwise permissible for a bank controlled by a company described in section 1843(f)(1) of this title” before period at end of concluding provisions

    Source evidence

    Code amendment note
    Subsec. (c)(2)(H). Pub. L. 106–102, § 107(c), inserted “, or that is otherwise permissible for a bank controlled by a company described in section 1843(f)(1) of this title” before period at end of concluding provisions.

    Enacted provision · exact public law section
    (c) Industrial Loan Companies; Affiliate Overdrafts.— Section 2(c)(2)(H) of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(c)(2)(H)) is amended by inserting “, or that is otherwise permissible for a bank controlled by a company described in section 4(f)(1)” before the period at the end.

35. 1999

    Pub. L. 106–102 § 103(c)(1)(A) · 113 Stat. 1338

    Inserted · 12 U.S.C. § 1841(n)

    Pub. L. 106–102, § 103(c)(1)(A), inserted “ ‘depository institution’,” after “the terms”

    Source evidence

    Code amendment note
    Subsec. (n). Pub. L. 106–102, § 103(c)(1)(A), inserted “ ‘depository institution’,” after “the terms”.

    Enacted provision · exact public law section
    (A) in subsection (n), by inserting “‘depository institution’,” after “the terms”; and

36. 1999

    Pub. L. 106–102 § 119 · 113 Stat. 1338

    Substituted · 12 U.S.C. § 1841(o)(1)(A)

    Pub. L. 106–102, § 119, substituted “section 38” for “section 38(b)”

    Source evidence

    Code amendment note
    Subsec. (o)(1)(A). Pub. L. 106–102, § 119, substituted “section 38” for “section 38(b)”.

    Enacted provision · exact public law section
    SEC. 119. TECHNICAL AMENDMENT. Section 2(o)(1)(A) of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(o)(1)(A)) is amended by striking “section 38(b)” and inserting “section 38”.

37. 1999

    Pub. L. 106–102 § 103(c)(1)(B) · 113 Stat. 1338

    Added · 12 U.S.C. § 1841(p); 12 U.S.C. § 1841(q)

    Pub. L. 106–102, § 103(c)(1)(B), added subsecs. (p) and (q)

    Source evidence

    Code amendment note
    Subsecs. (p), (q). Pub. L. 106–102, § 103(c)(1)(B), added subsecs. (p) and (q).

    Enacted provision · exact public law section
    (B) by adding at the end the following new subsections: “(p) Financial Holding Company.— For purposes of this Act, the term ‘financial holding company’ means a bank holding company that meets the requirements of section 4(1)(1). “(q) Insurance Company.— For purposes of sections 4 and 5, the term ‘insurance company’ includes any person engaged in the business of insurance to the extent of such activities.”.

38. 2004

    2004 District of Columbia Omnibus Authorization Act

    Pub. L. 108–386 § 8(c)(1) · 118 Stat. 2228

    Struck · 12 U.S.C. § 1841(c)(3)

    Pub. L. 108–386 struck out heading and text of par. (3). Text read as follows: “The term ‘District bank’ means any bank operating under the Code of Law for the District of Columbia”

    Source evidence

    Code amendment note
    Subsec. (c)(3). Pub. L. 108–386 struck out heading and text of par. (3). Text read as follows: “The term ‘District bank’ means any bank operating under the Code of Law for the District of Columbia”.

    Enacted provision · exact public law section
    (1) in section 2(c) (12 U.S.C. 1841(c)), by striking paragraph (3); and

39. 2006

    Federal Deposit Insurance Reform Act of 2005

    Pub. L. 109–171 title II § 2102(b) · 120 Stat. 4

    Repealed · 12 U.S.C. § 1841(j)(2)

    Pub. L. 109–171 repealed Pub. L. 104–208, § 2704(d)(17). See 1996 Amendment note below

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 109–171 repealed Pub. L. 104–208, § 2704(d)(17). See 1996 Amendment note below.

    Enacted provision · exact public law section
    (b) Repeal of Outdated Merger Provision.— Section 2704 of the Deposit Insurance Funds Act of 1996 (12 U.S.C. 1821 note) is repealed.

40. 2006

    Federal Deposit Insurance Reform Conforming Amendments Act of 2005

    Pub. L. 109–173 § 9(h)(1) · 119 Stat. 3601

    Substituted · 12 U.S.C. § 1841(j)(2)

    Pub. L. 109–173 substituted “Deposit Insurance Fund” for “Savings Association Insurance Fund”

    Source evidence

    Code amendment note
    Subsec. (j)(2). Pub. L. 109–173 substituted “Deposit Insurance Fund” for “Savings Association Insurance Fund”.

    Enacted provision · exact public law section
    (1) in section 2(j)(2) (12 U.S.C. 1841(j)(2)), by striking “Savings Association Insurance Fund” and inserting “Deposit Insurance Fund”; and

41. 2006

    Pub. L. 109–351 § 727(a)(1) · 120 Stat. 1966

    Struck · 12 U.S.C. § 1841(c)(2)(I); 12 U.S.C. § 1841(c)(2)(J)

    Pub. L. 109–351, § 727(a)(1), struck out subpars. (I) and (J), which related to the Investors Fiduciary Trust Company, located in Kansas City, Missouri, and certain savings banks as defined by section 1831(g) of this title, respectively

    Source evidence

    Code amendment note
    Subsec. (c)(2)(I), (J). Pub. L. 109–351, § 727(a)(1), struck out subpars. (I) and (J), which related to the Investors Fiduciary Trust Company, located in Kansas City, Missouri, and certain savings banks as defined by section 1831(g) of this title, respectively.

    Enacted provision · exact public law section
    (1) in subsection (c)(2), by striking subparagraphs (I) and (J); and

42. 2006

    Pub. L. 109–351 § 706 · 120 Stat. 1966

    Inserted · 12 U.S.C. § 1841(g)(2)

    Pub. L. 109–351, § 706, inserted before period at end “, unless the Board determines that such treatment is not appropriate in light of the facts and circumstances of the case and the purposes of this chapter”

    Source evidence

    Code amendment note
    Subsec. (g)(2). Pub. L. 109–351, § 706, inserted before period at end “, unless the Board determines that such treatment is not appropriate in light of the facts and circumstances of the case and the purposes of this chapter”.

    Enacted provision · exact public law section
    SEC. 706. AMENDMENT TO PROVIDE THE FEDERAL RESERVE BOARD WITH DISCRETION CONCERNING THE IMPUTATION OF CONTROL OF SHARES OF A COMPANY BY TRUSTEES.   Section 2(g)(2) of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(g)(2)) is amended by inserting before the period at the end “, unless the Board determines that such treatment is not appropriate in light of the facts and circumstances of the case and the purposes of this Act”.

43. 2006

    Pub. L. 109–351 § 727(a)(2) · 120 Stat. 1966

    Repealed · 12 U.S.C. § 1841(m)

    Pub. L. 109–351, § 727(a)(2), substituted “(m) [Repealed]” for subsec. (m), which defined “qualified savings bank”

    Source evidence

    Code amendment note
    Subsec. (m). Pub. L. 109–351, § 727(a)(2), substituted “(m) [Repealed]” for subsec. (m), which defined “qualified savings bank”.

    Enacted provision · exact public law section
    (2) by striking subsection (m) and inserting the following: “(m) [Repealed]” .

44. 2010

    Bank and Savings Association Holding Company and Depository Institution Regulatory Improvements Act of 2010

    Pub. L. 111–203 § 628 · 124 Stat. 1376

    Inserted · 12 U.S.C. § 1841(c)(2)(F)(v)

    Pub. L. 111–203, § 628, inserted “, other than credit card loans that are made to businesses that meet the criteria for a small business concern to be eligible for business loans under regulations established by the Small Business Administration under part 121 of title 13, Code of Federal Regulations” before the period

    Source evidence

    Code amendment note
    Subsec. (c)(2)(F)(v). Pub. L. 111–203, § 628, inserted “, other than credit card loans that are made to businesses that meet the criteria for a small business concern to be eligible for business loans under regulations established by the Small Business Administration under part 121 of title 13, Code of Federal Regulations” before the period.

    Enacted provision · exact public law section
    SEC. 628. CREDIT CARD BANK SMALL BUSINESS LENDING.   Section 2(c)(2)(F)(v) of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(c)(2)(F)(v)) is amended by inserting before the period the following: “, other than credit card loans that are made to businesses that meet the criteria for a small business concern to be eligible for business loans under regulations established by the Small Business Administration under part 121 of title 13, Code of Federal Regulations”.

    Effective date note
    Amendment by section 354(1) of Pub. L. 111–203 effective on the transfer date, see section 351 of Pub. L. 111–203, set out as a note under section 906 of Title 2, The Congress. Amendment by sections 623(b)(2) and 628 of Pub. L. 111–203 effective 1 day after July 21, 2010, except as otherwise provided, see section 4 of Pub. L. 111–203, set out as an Effective Date note under section 5301 of this title.

45. 2010

    Enhancing Financial Institution Safety and Soundness Act of 2010

    Pub. L. 111–203 § 354(1) · 124 Stat. 1376

    Substituted · 12 U.S.C. § 1841(j)(3)

    Pub. L. 111–203, § 354(1), substituted “appropriate Federal banking agency” for “Director of the Office of Thrift Supervision”

    Source evidence

    Code amendment note
    Subsec. (j)(3). Pub. L. 111–203, § 354(1), substituted “appropriate Federal banking agency” for “Director of the Office of Thrift Supervision”.

    Enacted provision · exact public law section
    (1) in section 2(j)(3) (12 U.S.C. 1841(j)(3)), strike “Director of the Office of Thrift Supervision” and inserting “appropriate Federal banking agency”;

    Effective date note
    Amendment by section 354(1) of Pub. L. 111–203 effective on the transfer date, see section 351 of Pub. L. 111–203, set out as a note under section 906 of Title 2, The Congress. Amendment by sections 623(b)(2) and 628 of Pub. L. 111–203 effective 1 day after July 21, 2010, except as otherwise provided, see section 4 of Pub. L. 111–203, set out as an Effective Date note under section 5301 of this title.

46. 2010

    Bank and Savings Association Holding Company and Depository Institution Regulatory Improvements Act of 2010

    Pub. L. 111–203 § 623(b)(2) · 124 Stat. 1376

    Added · 12 U.S.C. § 1841(o)(4)(D); 12 U.S.C. § 1841(o)(4)(E)

    Pub. L. 111–203, § 623(b)(2), added subpars. (D) and (E)

    Source evidence

    Code amendment note
    Subsec. (o)(4)(D), (E). Pub. L. 111–203, § 623(b)(2), added subpars. (D) and (E).

    Enacted provision · exact public law section
    (2) Definitions.— Section 2(o)(4) of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(o)(4)) is amended— (A) in subparagraph (B), by striking “and” at the end; (B) in subparagraph (C)(ii), by striking the period at the end and inserting a semicolon; and (C) by adding at the end the following: “(D) with respect to a State savings association, the State by which the savings association is chartered; and “(E) with respect to a Federal savings association, the State in which the home office (as defined by the regulations of the Director of the Office of Thrift Supervision, or, on and after the transfer date, the Comptroller of the Currency) of the Federal savings association is located.” .

    Effective date note
    Amendment by section 354(1) of Pub. L. 111–203 effective on the transfer date, see section 351 of Pub. L. 111–203, set out as a note under section 906 of Title 2, The Congress. Amendment by sections 623(b)(2) and 628 of Pub. L. 111–203 effective 1 day after July 21, 2010, except as otherwise provided, see section 4 of Pub. L. 111–203, set out as an Effective Date note under section 5301 of this title.

56 of 64 references resolved to an enrolled provision · 8 partial