---
kind: "range"
citation: "12 U.S.C. §§ 3101–3111"
title: "12"
from: "3101"
to: "3111"
count: 12
release: "119-102"
url: "https://uscodex.org/usc/12/3101..3111"
---

# §3101. Definitions


For the purposes of this chapter—

- (1) “agency” means any [office](#16) or any place of business of a [foreign bank](#7) located in any [State](#10) of the United States at which [credit](/usc/12/5481.md?p=7) balances are maintained incidental to or arising out of the exercise of banking powers, checks are paid, or money is lent but at which [deposits](/usc/12/5301.md?p=18-A) may not be accepted from citizens or residents of the United States;
- (2) “Board” means the Board of Governors of the Federal Reserve System;
- (3) “branch” means any [office](#16) or any place of business of a [foreign bank](#7) located in any [State](#10) of the United States at which [deposits](/usc/12/5301.md?p=18-A) are received;
- (4) “Comptroller” means the Comptroller of the Currency;
- (5) “Federal agency” means an [agency](#1) of a [foreign bank](#7) established and operating under [section 3102 of this title](/usc/12/3102.md);
- (6) “Federal branch” means a [branch](#3) of a [foreign bank](#7) established and operating under [section 3102 of this title](/usc/12/3102.md);
- (7) “foreign bank” means any [company](#13) organized under the laws of a [foreign country](#8), a territory of the United States, Puerto Rico, Guam, American Samoa, or the Virgin Islands, which engages in the business of banking, or any [subsidiary](#13) or [affiliate](#13), organized under such laws, of any such [company](#13). For the purposes of this chapter the term “foreign bank” [includes](/usc/12/25b.md?p=a-3), without limitation, foreign commercial [banks](/usc/12/221a.md?p=a), foreign merchant [banks](/usc/12/221a.md?p=a) and other foreign institutions that engage in banking activities usual in connection with the business of banking in the countries where such foreign institutions are organized or operating;
- (8) “foreign country” means any country other than the United States, and [includes](/usc/12/25b.md?p=a-3) any colony, dependency, or possession of any such country;
- (9) “commercial lending company” means any institution, other than a [bank](/usc/12/1426a.md?p=g-1) or an organization operating under section 25 of the Federal Reserve Act [[12 U.S.C. 601](/usc/12/601.md) et seq.], organized under the laws of any [State](#10) of the United States, or the District of Columbia which maintains [credit](/usc/12/5481.md?p=7) balances incidental to or arising out of the exercise of banking powers and engages in the business of making commercial loans;
- (10) “State” means any State of the United States or the District of Columbia;
- (11) “State agency” means an [agency](#1) of a [foreign bank](#7) established and operating under the laws of any [State](#10);
- (12) “State branch” means a [branch](#3) of a [foreign bank](#7) established and operating under the laws of any [State](#10);
- (13) the terms “affiliate,”[^1] “[bank](/usc/12/1426a.md?p=g-1)”, “bank holding company”, “company”, “control”, and “subsidiary” have the same meanings assigned to those terms in the Bank Holding Company Act of 1956 [[12 U.S.C. 1841](/usc/12/1841.md) et seq.], and the terms “controlled” and “controlling” shall be construed consistently with the term “control” as defined in section 2 of the Bank Holding Company Act of 1956 [[12 U.S.C. 1841](/usc/12/1841.md)];
- (14) “consolidated” means consolidated in accordance with generally accepted accounting principles in the United States consistently applied;
- (15) the term “representative office” means any [office](#16) of a [foreign bank](#7) which is located in any [State](#10) and is not a [Federal branch](#6), [Federal agency](#5), [State branch](#12), or [State agency](#11);
- (16) the term “office” means any [branch](#3), [agency](#1), or [representative office](#15); and
- (17) the term “State bank supervisor” has the meaning given to such term in [section 1813 of this title](/usc/12/1813.md).

# §3102. Establishment of Federal branches and agencies by foreign bank

- (a) **Establishment and operation of Federal branches and agencies—**
  - (1) **Initial Federal branch or agency—** Except as provided in [section 3103 of this title](/usc/12/3103.md), a [foreign bank](/usc/12/3101.md?p=7) which engages directly in a banking business outside the United States may, with the approval of the [Comptroller](/usc/12/3101.md?p=4), establish one or more [Federal branches](/usc/12/3101.md?p=6) or [agencies](/usc/12/3101.md?p=1) in any [State](/usc/12/3101.md?p=10) in which (1) it is not operating a [branch](/usc/12/3101.md?p=3) or [agency](/usc/12/3101.md?p=1) pursuant to [State](/usc/12/3101.md?p=10) law and (2) the establishment of a [branch](/usc/12/3101.md?p=3) or [agency](/usc/12/3101.md?p=1), as the case may be, by a [foreign bank](/usc/12/3101.md?p=7) is not prohibited by [State](/usc/12/3101.md?p=10) law.
  - (2) **Board conditions required to be included—** In considering any application for approval under this subsection, the [Comptroller](/usc/12/3101.md?p=4) of the Currency shall include any condition imposed by the [Board](/usc/12/3101.md?p=2) under [section 3105(d)(5) of this title](/usc/12/3105.md?p=d-5) as a condition for the approval of such application by the [agency](/usc/12/3101.md?p=1).
- (b) **Rules and regulations; rights and privileges; duties and liabilities; exceptions; coordination of examinations—** In establishing and operating a [Federal branch](/usc/12/3101.md?p=6) or [agency](/usc/12/3101.md?p=1), a [foreign bank](/usc/12/3101.md?p=7) shall be subject to such rules, regulations, and orders as the [Comptroller](/usc/12/3101.md?p=4) considers appropriate to carry out this section, which shall include provisions for service of process and maintenance of [branch](/usc/12/3101.md?p=3) and [agency](/usc/12/3101.md?p=1) accounts separate from those of the parent [bank](/usc/12/1426a.md?p=g-1). Except as otherwise specifically provided in this chapter or in rules, regulations, or orders adopted by the [Comptroller](/usc/12/3101.md?p=4) under this section, operations of a [foreign bank](/usc/12/3101.md?p=7) at a [Federal branch](/usc/12/3101.md?p=6) or [agency](/usc/12/3101.md?p=1) shall be conducted with the same rights and privileges as a [national bank](/usc/12/221a.md?p=a) at the same location and shall be subject to all the same duties, restrictions, penalties, liabilities, conditions, and limitations that would apply under the National Bank Act to a [national bank](/usc/12/221a.md?p=a) doing business at the same location, except that (1) any limitation or restriction based on the [capital stock](/usc/12/51c.md) and surplus of a [national bank](/usc/12/221a.md?p=a) shall be deemed to refer, as applied to a [Federal branch](/usc/12/3101.md?p=6) or [agency](/usc/12/3101.md?p=1), to the dollar equivalent of the [capital stock](/usc/12/51c.md) and surplus of the [foreign bank](/usc/12/3101.md?p=7), and if the [foreign bank](/usc/12/3101.md?p=7) has more than one [Federal branch](/usc/12/3101.md?p=6) or [agency](/usc/12/3101.md?p=1) the business transacted by all such [branches](/usc/12/3101.md?p=3) and [agencies](/usc/12/3101.md?p=1) shall be aggregated in determining compliance with the limitation; (2) a [Federal branch](/usc/12/3101.md?p=6) or [agency](/usc/12/3101.md?p=1) shall not be required to become a [member bank](/usc/12/221a.md?p=a), as that term is defined in [section 221 of this title](/usc/12/221.md); and (3) a [Federal agency](/usc/12/3101.md?p=5) shall not be required to become an [insured bank](/usc/12/24a.md?p=g-2) as that term is defined in [section 1813(h) of this title](/usc/12/1813.md?p=h). The [Comptroller](/usc/12/3101.md?p=4) of the Currency shall coordinate examinations of [Federal branches](/usc/12/3101.md?p=6) and [agencies](/usc/12/3101.md?p=1) of [foreign banks](/usc/12/3101.md?p=7) with examinations conducted by the [Board](/usc/12/3101.md?p=2) under [section 3105(c)(1) of this title](/usc/12/3105.md?p=c-1) and, to the extent possible, shall [participate](/usc/12/2206a.md?p=a-1) in any simultaneous examinations of the United States operations of a [foreign bank](/usc/12/3101.md?p=7) requested by the [Board](/usc/12/3101.md?p=2) under such section.
- (c) **Application to establish Federal branch or agency; matters considered—** In acting on any application to establish a [Federal branch](/usc/12/3101.md?p=6) or [agency](/usc/12/3101.md?p=1), the [Comptroller](/usc/12/3101.md?p=4) shall take into account the effects of the proposal on competition in the domestic and foreign commerce of the United States, the financial and managerial resources and future prospects of the applicant [foreign bank](/usc/12/3101.md?p=7) and the [branch](/usc/12/3101.md?p=3) or [agency](/usc/12/3101.md?p=1), and the convenience and needs of the community to be served.
- (d) **Receipt of deposits and exercising of fiduciary powers at Federal agency prohibited—** Notwithstanding any other provision of this section, a [foreign bank](/usc/12/3101.md?p=7) shall not receive [deposits](/usc/12/5301.md?p=18-A) or exercise fiduciary powers at any [Federal agency](/usc/12/3101.md?p=5). A [foreign bank](/usc/12/3101.md?p=7) may, however, maintain at a [Federal agency](/usc/12/3101.md?p=5) for the account of others [credit](/usc/12/5481.md?p=7) balances incidental to, or arising out of, the exercise of its lawful powers.
- (e) **Maintenance of Federal branch and Federal agency in same State prohibited—** No [foreign bank](/usc/12/3101.md?p=7) may maintain both a [Federal branch](/usc/12/3101.md?p=6) and a [Federal agency](/usc/12/3101.md?p=5) in the same [State](/usc/12/3101.md?p=10).
- (f) **Conversion of foreign bank branch, agency or commercial lending company into Federal branch or agency; approval of Comptroller—** Any [branch](/usc/12/3101.md?p=3) or [agency](/usc/12/3101.md?p=1) operated by a [foreign bank](/usc/12/3101.md?p=7) in a [State](/usc/12/3101.md?p=10) pursuant to [State](/usc/12/3101.md?p=10) law and any [commercial lending company](/usc/12/3101.md?p=9) [controlled](/usc/12/3101.md?p=13) by a [foreign bank](/usc/12/3101.md?p=7) may be converted into a [Federal branch](/usc/12/3101.md?p=6) or [agency](/usc/12/3101.md?p=1) with the approval of the [Comptroller](/usc/12/3101.md?p=4). In the event of any conversion pursuant to this subsection, all of the liabilities of such [foreign bank](/usc/12/3101.md?p=7) previously payable at the [State branch](/usc/12/3101.md?p=12) or [agency](/usc/12/3101.md?p=1), or all of the liabilities of the [commercial lending company](/usc/12/3101.md?p=9), shall thereafter be payable by such [foreign bank](/usc/12/3101.md?p=7) at the [branch](/usc/12/3101.md?p=3) or [agency](/usc/12/3101.md?p=1) established under this subsection.
- (g) **Deposit requirements; asset requirements—**
  - (1) Upon the opening of a [Federal branch](/usc/12/3101.md?p=6) or [agency](/usc/12/3101.md?p=1) in any [State](/usc/12/3101.md?p=10) and thereafter, a [foreign bank](/usc/12/3101.md?p=7), in addition to any [deposit](/usc/12/5301.md?p=18-A) requirements imposed under [section 3104 of this title](/usc/12/3104.md), shall keep on [deposit](/usc/12/5301.md?p=18-A), in accordance with such rules and regulations as the [Comptroller](/usc/12/3101.md?p=4) may prescribe, with a [member bank](/usc/12/221a.md?p=a) designated by such [foreign bank](/usc/12/3101.md?p=7), dollar [deposits](/usc/12/5301.md?p=18-A) or investment securities of the type that may be held by [national banks](/usc/12/221a.md?p=a) for their own accounts pursuant to paragraph “Seventh” of [section 24 of this title](/usc/12/24.md), in an amount as hereinafter set forth. Such depository [bank](/usc/12/1426a.md?p=g-1) shall be located in the [State](/usc/12/3101.md?p=10) where such [branch](/usc/12/3101.md?p=3) or [agency](/usc/12/3101.md?p=1) is located and shall be approved by the [Comptroller](/usc/12/3101.md?p=4) if it is a [national bank](/usc/12/221a.md?p=a) and by the [Board](/usc/12/3101.md?p=2) of Governors of the Federal Reserve System if it is a [State Bank](/usc/12/1835a.md?p=e-1).
  - (2) The aggregate amount of deposited investment securities (calculated on the basis of principal amount or market value, whichever is lower) and dollar [deposits](/usc/12/5301.md?p=18-A) for each [branch](/usc/12/3101.md?p=3) or [agency](/usc/12/3101.md?p=1) established and operating under this section shall be not less than the greater of (1) that amount of [capital](/usc/12/51c.md) (but not surplus) which would be required of a [national bank](/usc/12/221a.md?p=a) being organized at this location, or (2) 5 per centum of the total liabilities of such [branch](/usc/12/3101.md?p=3) or [agency](/usc/12/3101.md?p=1), [including](/usc/12/25b.md?p=a-3) acceptances, but excluding (A) accrued expenses, and (B) amounts due and other liabilities to [offices](/usc/12/3101.md?p=16), [branches](/usc/12/3101.md?p=3), [agencies](/usc/12/3101.md?p=1), and [subsidiaries](/usc/12/3101.md?p=13) of such [foreign bank](/usc/12/3101.md?p=7). The [Comptroller](/usc/12/3101.md?p=4) may require that the assets deposited pursuant to this subsection shall be maintained in such amounts as he may from time to time deem necessary or desirable, for the maintenance of a sound financial condition, the protection of depositors, and the public interest, but such additional amount shall in no event be greater than would be required to conform to generally accepted banking practices as manifested by [banks](/usc/12/221a.md?p=a) in the area in which the [branch](/usc/12/3101.md?p=3) or [agency](/usc/12/3101.md?p=1) is located.
  - (3) The [deposit](/usc/12/5301.md?p=18-A) shall be maintained with any such [member bank](/usc/12/221a.md?p=a) pursuant to a [deposit](/usc/12/5301.md?p=18-A) agreement in such form and containing such limitations and conditions as the [Comptroller](/usc/12/3101.md?p=4) may prescribe. So long as it continues business in the ordinary course such [foreign bank](/usc/12/3101.md?p=7) shall, however, be permitted to collect income on the securities and [funds](/usc/12/4702.md?p=10) so deposited and from time to time examine and exchange such securities.
  - (4) Subject to such conditions and requirements as may be prescribed by the [Comptroller](/usc/12/3101.md?p=4), each [foreign bank](/usc/12/3101.md?p=7) shall hold in each [State](/usc/12/3101.md?p=10) in which it has a [Federal branch](/usc/12/3101.md?p=6) or [agency](/usc/12/3101.md?p=1), assets of such types and in such amount as the [Comptroller](/usc/12/3101.md?p=4) may prescribe by general or specific regulation or ruling as necessary or desirable for the maintenance of a sound financial condition, the protection of depositors, creditors and the public interest. In determining compliance with any such prescribed asset requirements, the [Comptroller](/usc/12/3101.md?p=4) shall give [credit](/usc/12/5481.md?p=7) to (A) assets required to be maintained pursuant to paragraphs (1) and (2) of this subsection, (B) reserves required to be maintained pursuant to [section 3105(a) of this title](/usc/12/3105.md?p=a), and (C) assets pledged, and surety bonds payable, to the Federal [Deposit](/usc/12/5301.md?p=18-A) Insurance [Corporation](/usc/12/2277a.md?p=2) to secure the payment of domestic [deposits](/usc/12/5301.md?p=18-A). The [Comptroller](/usc/12/3101.md?p=4) may prescribe different asset requirements for [branches](/usc/12/3101.md?p=3) or [agencies](/usc/12/3101.md?p=1) in different [States](/usc/12/3101.md?p=10), in order to ensure competitive equality of [Federal branches](/usc/12/3101.md?p=6) and [agencies](/usc/12/3101.md?p=1) with [State branches](/usc/12/3101.md?p=12) and [agencies](/usc/12/3101.md?p=1) and domestic [banks](/usc/12/221a.md?p=a) in those [States](/usc/12/3101.md?p=10).
- (h) **Additional branches or agencies—**
  - (1) **Approval of agency required—** A [foreign bank](/usc/12/3101.md?p=7) with a [Federal branch](/usc/12/3101.md?p=6) or [agency](/usc/12/3101.md?p=1) operating in any [State](/usc/12/3101.md?p=10) may (A) with the prior approval of the [Comptroller](/usc/12/3101.md?p=4) establish and operate additional [branches](/usc/12/3101.md?p=3) or [agencies](/usc/12/3101.md?p=1) in the [State](/usc/12/3101.md?p=10) in which such [branch](/usc/12/3101.md?p=3) or [agency](/usc/12/3101.md?p=1) is located on the same terms and conditions and subject to the same limitations and restrictions as are applicable to the establishment of [branches](/usc/12/3101.md?p=3) by a [national bank](/usc/12/221a.md?p=a) if the principal [office](/usc/12/3101.md?p=16) of such [national bank](/usc/12/221a.md?p=a) were located at the same place as the initial [branch](/usc/12/3101.md?p=3) or [agency](/usc/12/3101.md?p=1) in such [State](/usc/12/3101.md?p=10) of such [foreign bank](/usc/12/3101.md?p=7) and (B) change the designation of its initial [branch](/usc/12/3101.md?p=3) or [agency](/usc/12/3101.md?p=1) to any other [branch](/usc/12/3101.md?p=3) or [agency](/usc/12/3101.md?p=1) subject to the same limitations and restrictions as are applicable to a change in the designation of the principal [office](/usc/12/3101.md?p=16) of a [national bank](/usc/12/221a.md?p=a) if such principal [office](/usc/12/3101.md?p=16) were located at the same place as such initial [branch](/usc/12/3101.md?p=3) or [agency](/usc/12/3101.md?p=1).
  - (2) **Notice to and comment by Board—** The [Comptroller](/usc/12/3101.md?p=4) of the Currency shall provide the [Board](/usc/12/3101.md?p=2) with notice and an opportunity for comment on any application to establish an additional [Federal branch](/usc/12/3101.md?p=6) or [Federal agency](/usc/12/3101.md?p=5) under this subsection.
- (i) **Termination of authority to operate Federal branch or agency—** Authority to operate a [Federal branch](/usc/12/3101.md?p=6) or [agency](/usc/12/3101.md?p=1) shall terminate when the parent [foreign bank](/usc/12/3101.md?p=7) voluntarily relinquishes it or when such parent [foreign bank](/usc/12/3101.md?p=7) is dissolved or its authority or existence is otherwise terminated or canceled in the country of its organization. If (1) at any time the [Comptroller](/usc/12/3101.md?p=4) is of the opinion or has reasonable cause to believe that such [foreign bank](/usc/12/3101.md?p=7) has violated or failed to comply with any of the provisions of this section or any of the rules, regulations, or orders of the [Comptroller](/usc/12/3101.md?p=4) made pursuant to this section, or (2) a conservator is appointed for such [foreign bank](/usc/12/3101.md?p=7) or a similar proceeding is initiated in the [foreign bank](/usc/12/3101.md?p=7)’s country of organization, the [Comptroller](/usc/12/3101.md?p=4) shall have the power, after opportunity for hearing, to revoke the [foreign bank](/usc/12/3101.md?p=7)’s authority to operate a [Federal branch](/usc/12/3101.md?p=6) or [agency](/usc/12/3101.md?p=1). The [Comptroller](/usc/12/3101.md?p=4) may, in his discretion, deny such opportunity for hearing if he determines such denial to be in the public interest. The [Comptroller](/usc/12/3101.md?p=4) may restore any such authority upon due proof of compliance with the provisions of this section and the rules, regulations, or orders of the [Comptroller](/usc/12/3101.md?p=4) made pursuant to this section.
- (j) **Receivership over assets of foreign bank in United States—**
  - (1) Whenever the [Comptroller](/usc/12/3101.md?p=4) revokes a [foreign bank](/usc/12/3101.md?p=7)’s authority to operate a [Federal branch](/usc/12/3101.md?p=6) or [agency](/usc/12/3101.md?p=1) or whenever any creditor of any such [foreign bank](/usc/12/3101.md?p=7) shall have obtained a judgment against it arising out of a transaction with a [Federal branch](/usc/12/3101.md?p=6) or [agency](/usc/12/3101.md?p=1) in any court of record of the United States or any [State](/usc/12/3101.md?p=10) of the United States and made application, accompanied by a certificate from the clerk of the court stating that such judgment has been rendered and has remained unpaid for the space of thirty days, or whenever the [Comptroller](/usc/12/3101.md?p=4) shall become satisfied that such [foreign bank](/usc/12/3101.md?p=7) is insolvent, he may, after due consideration of its affairs, in any such case, appoint a receiver who shall take possession of all the property and assets of such [foreign bank](/usc/12/3101.md?p=7) in the United States and exercise the same rights, privileges, powers, and authority with respect thereto as are now exercised by receivers of [national banks](/usc/12/221a.md?p=a) appointed by the [Comptroller](/usc/12/3101.md?p=4).
  - (2) In any receivership proceeding ordered pursuant to this [subsection (j)](#j), whenever there has been paid to each and every depositor and creditor of such [foreign bank](/usc/12/3101.md?p=7) whose claim or claims shall have been proved or allowed, the full amount of such claims arising out of transactions had by them with any [branch](/usc/12/3101.md?p=3) or [agency](/usc/12/3101.md?p=1) of such [foreign bank](/usc/12/3101.md?p=7) located in any [State](/usc/12/3101.md?p=10) of the United States, except (A) claims that would not represent an enforceable legal obligation against such [branch](/usc/12/3101.md?p=3) or [agency](/usc/12/3101.md?p=1) if such [branch](/usc/12/3101.md?p=3) or [agency](/usc/12/3101.md?p=1) were a separate legal entity, and (B) amounts due and other liabilities to other [offices](/usc/12/3101.md?p=16) or [branches](/usc/12/3101.md?p=3) or [agencies](/usc/12/3101.md?p=1) of, and wholly owned (except for a nominal number of [directors](/usc/12/2279bb.md?p=3)’ shares) [subsidiaries](/usc/12/3101.md?p=13) of, such [foreign bank](/usc/12/3101.md?p=7), and all expenses of the receivership, the [Comptroller](/usc/12/3101.md?p=4) or the Federal [Deposit](/usc/12/5301.md?p=18-A) Insurance [Corporation](/usc/12/2277a.md?p=2), where that [Corporation](/usc/12/2277a.md?p=2) has been appointed receiver of the [foreign bank](/usc/12/3101.md?p=7), shall turn over the remainder, if any, of the assets and proceeds of such [foreign bank](/usc/12/3101.md?p=7) to the head [office](/usc/12/3101.md?p=16) of such [foreign bank](/usc/12/3101.md?p=7), or to the duly appointed domiciliary liquidator or receiver of such [foreign bank](/usc/12/3101.md?p=7).

# §3103. Interstate banking by foreign banks

- (a) **Interstate branching and agency operations—**
  - (1) **Federal branch or agency—** Subject to the provisions of this chapter and with the prior written approval by the [Board](/usc/12/3101.md?p=2) and the [Comptroller](/usc/12/3101.md?p=4) of the Currency of an application, a [foreign bank](/usc/12/3101.md?p=7) may establish and operate a [Federal branch](/usc/12/3101.md?p=6) or [agency](/usc/12/3101.md?p=1) in any [State](/usc/12/3101.md?p=10) outside the [home State](#a-9) of such [foreign bank](/usc/12/3101.md?p=7) to the extent that the establishment and operation of such [branch](/usc/12/3101.md?p=3) would be permitted under [section 36(g) of this title](/usc/12/36.md?p=g) or [section 1831u of this title](/usc/12/1831u.md) if the [foreign bank](/usc/12/3101.md?p=7) were a [national bank](/usc/12/221a.md?p=a) whose [home State](#a-9) is the same [State](/usc/12/3101.md?p=10) as the [home State](#a-9) of the [foreign bank](/usc/12/3101.md?p=7).
  - (2) **State branch or agency—** Subject to the provisions of this chapter and with the prior written approval by the [Board](/usc/12/3101.md?p=2) and the appropriate [State bank supervisor](/usc/12/3101.md?p=17) of an application, a [foreign bank](/usc/12/3101.md?p=7) may establish and operate a [State branch](/usc/12/3101.md?p=12) or [agency](/usc/12/3101.md?p=1) in any [State](/usc/12/3101.md?p=10) outside the [home State](#a-9) of such [foreign bank](/usc/12/3101.md?p=7) to the extent that such establishment and operation would be permitted under section [1828(d)(4)](/usc/12/1828.md?p=d-4) or [1831u](/usc/12/1831u.md) of this title if the [foreign bank](/usc/12/3101.md?p=7) were a [State bank](/usc/12/1835a.md?p=e-1) whose [home State](#a-9) is the same [State](/usc/12/3101.md?p=10) as the [home State](#a-9) of the [foreign bank](/usc/12/3101.md?p=7).
  - (3) **Criteria for determination—** In approving an application under paragraph [(1)](#a-1) or [(2)](#a-2), the [Board](/usc/12/3101.md?p=2) and (in the case of an application under [paragraph (1)](#a-1)) the [Comptroller](/usc/12/3101.md?p=4) of the Currency—
    - (A) shall apply the standards applicable to the establishment of a [foreign bank](/usc/12/3101.md?p=7) [office](/usc/12/3101.md?p=16) in the United States under [section 3105(d) of this title](/usc/12/3105.md?p=d);
    - (B) may not approve an application unless the [Board](/usc/12/3101.md?p=2) and (in the case of an application under [paragraph (1)](#a-1)) the [Comptroller](/usc/12/3101.md?p=4) of the Currency—
      - (i) determine that the [foreign bank](/usc/12/3101.md?p=7)’s financial resources, [including](/usc/12/25b.md?p=a-3) the [capital](/usc/12/51c.md) level of the [bank](/usc/12/1426a.md?p=g-1), are equivalent to those required for a domestic [bank](/usc/12/1426a.md?p=g-1) to be approved for branching under [section 36 of this title](/usc/12/36.md) and [section 1831u of this title](/usc/12/1831u.md); and
      - (ii) consult with the Secretary of the Treasury regarding [capital](/usc/12/51c.md) equivalency; and
    - (C) shall apply the same requirements and conditions to which an application for an interstate [merger transaction](/usc/12/1831u.md?p=g-7) is subject under paragraphs (1), (3), and (4) of [section 1831u(b) of this title](/usc/12/1831u.md?p=b).
  - (4) **Operation—** Subsections (c) and (d)(2) of [section 1831u of this title](/usc/12/1831u.md) shall apply with respect to each [branch](/usc/12/3101.md?p=3) and [agency](/usc/12/3101.md?p=1) of a [foreign bank](/usc/12/3101.md?p=7) which is established and operated pursuant to an application approved under this subsection in the same manner and to the same extent such provisions of such section apply to a domestic [branch](/usc/12/3101.md?p=3) of a national or [State bank](/usc/12/1835a.md?p=e-1) (as such terms are defined in [section 1813 of this title](/usc/12/1813.md)) which resulted from a [merger transaction](/usc/12/1831u.md?p=g-7) under such [section 1831u of this title](/usc/12/1831u.md).
  - (5) **Exclusive authority for additional branches—** Except as provided in this section, a [foreign bank](/usc/12/3101.md?p=7) may not, directly or indirectly, [acquire](/usc/12/1467a.md?p=a-1-J), establish, or operate a [branch](/usc/12/3101.md?p=3) or [agency](/usc/12/3101.md?p=1) in any [State](/usc/12/3101.md?p=10) other than the [home State](#a-9) of such [bank](/usc/12/1426a.md?p=g-1).
  - (6) **Requirement for a separate subsidiary—** If the [Board](/usc/12/3101.md?p=2) or the [Comptroller](/usc/12/3101.md?p=4) of the Currency, taking into account differing regulatory or accounting standards, finds that adherence by a [foreign bank](/usc/12/3101.md?p=7) to [capital](/usc/12/51c.md) requirements equivalent to those imposed under [section 36 of this title](/usc/12/36.md) and [section 1831u of this title](/usc/12/1831u.md) could be verified only if the banking activities of such [bank](/usc/12/1426a.md?p=g-1) in the United States are carried out in a domestic banking [subsidiary](/usc/12/3101.md?p=13) within the United States, the [Board](/usc/12/3101.md?p=2) and (in the case of an application under [paragraph (1)](#a-1)) the [Comptroller](/usc/12/3101.md?p=4) of the Currency may approve an application under paragraph [(1)](#a-1) or [(2)](#a-2) subject to a requirement that the [foreign bank](/usc/12/3101.md?p=7) or [company](/usc/12/3101.md?p=13) [controlling](/usc/12/3101.md?p=13) the [foreign bank](/usc/12/3101.md?p=7) establish a domestic banking [subsidiary](/usc/12/3101.md?p=13) in the United States.
  - (7) **Additional authority for interstate branches and agencies of foreign banks, upgrades of certain foreign bank agencies and branches—** Notwithstanding paragraphs [(1)](#a-1) and [(2)](#a-2), a [foreign bank](/usc/12/3101.md?p=7) may—
    - (A) with the approval of the [Board](/usc/12/3101.md?p=2) and the [Comptroller](/usc/12/3101.md?p=4) of the Currency, establish and operate a [Federal branch](/usc/12/3101.md?p=6) or [Federal agency](/usc/12/3101.md?p=5) or, with the approval of the [Board](/usc/12/3101.md?p=2) and the appropriate [State bank supervisor](/usc/12/3101.md?p=17), a [State branch](/usc/12/3101.md?p=12) or [State agency](/usc/12/3101.md?p=11) in any [State](/usc/12/3101.md?p=10) outside the [foreign bank](/usc/12/3101.md?p=7)’s [home State](#a-9) if—
      - (i) the establishment and operation of such [branch](/usc/12/3101.md?p=3) or [agency](/usc/12/3101.md?p=1) is permitted by the [State](/usc/12/3101.md?p=10) in which the [branch](/usc/12/3101.md?p=3) or [agency](/usc/12/3101.md?p=1) is to be established; and
      - (ii) in the case of a Federal or [State branch](/usc/12/3101.md?p=12), the [branch](/usc/12/3101.md?p=3) receives only such [deposits](/usc/12/5301.md?p=18-A) as would be permitted for a [corporation](/usc/12/2277a.md?p=2) organized under section 25A of the Federal Reserve Act [[12 U.S.C. 611](/usc/12/611.md) et seq.]; or
    - (B) with the approval of the [Board](/usc/12/3101.md?p=2) and the relevant licensing authority (the [Comptroller](/usc/12/3101.md?p=4) in the case of a [Federal branch](/usc/12/3101.md?p=6) or the appropriate [State](/usc/12/3101.md?p=10) supervisor in the case of a [State branch](/usc/12/3101.md?p=12)), upgrade an [agency](/usc/12/3101.md?p=1), or a [branch](/usc/12/3101.md?p=3) of the type referred to in [subparagraph (A)(ii)](#a-7-A-ii), located in a [State](/usc/12/3101.md?p=10) outside the [foreign bank](/usc/12/3101.md?p=7)’s [home State](#a-9), into a Federal or [State branch](/usc/12/3101.md?p=12) if—
      - (i) the establishment and operation of such [branch](/usc/12/3101.md?p=3) is permitted by such [State](/usc/12/3101.md?p=10); and
      - (ii) such [agency](/usc/12/3101.md?p=1) or [branch](/usc/12/3101.md?p=3)—
        - (I) was in operation in such [State](/usc/12/3101.md?p=10) on the day before September 29, 1994; or
        - (II) has been in operation in such [State](/usc/12/3101.md?p=10) for a period of time that meets the [State](/usc/12/3101.md?p=10)’s minimum age requirement permitted under [section 1831u(a)(5) of this title](/usc/12/1831u.md?p=a-5).
  - (8) **Continuing requirement for meeting community credit needs after initial interstate entry by acquisition—**
    - (A) **In general—** If a [foreign bank](/usc/12/3101.md?p=7) [acquires](/usc/12/1467a.md?p=a-1-J) a [bank](/usc/12/1426a.md?p=g-1) or a [branch](/usc/12/3101.md?p=3) of a [bank](/usc/12/1426a.md?p=g-1), in a [State](/usc/12/3101.md?p=10) in which the [foreign bank](/usc/12/3101.md?p=7) does not maintain a [branch](/usc/12/3101.md?p=3), and such acquired [bank](/usc/12/1426a.md?p=g-1) is, or is part of, a [regulated financial institution](/usc/12/2902.md?p=2) (as defined in section 803 of the Community Reinvestment Act of 1977 [[12 U.S.C. 2902](/usc/12/2902.md)]), the Community Reinvestment Act of 1977 [[12 U.S.C. 2901](/usc/12/2901.md) et seq.] shall continue to apply to each [branch](/usc/12/3101.md?p=3) of the [foreign bank](/usc/12/3101.md?p=7) which results from the acquisition as if such [branch](/usc/12/3101.md?p=3) were a [regulated financial institution](/usc/12/2902.md?p=2).
    - (B) **Exception for branch that receives only deposits permissible for an Edge Act corporation—** [Paragraph (1)](#a-1) shall not apply to any [branch](/usc/12/3101.md?p=3) that receives only such [deposits](/usc/12/5301.md?p=18-A) as are permissible for a [corporation](/usc/12/2277a.md?p=2) organized under section 25A of the Federal Reserve Act [[12 U.S.C. 611](/usc/12/611.md) et seq.] to receive.
  - (9) **Home State of domestic bank defined—** For purposes of this subsection, the term “home State” means—
    - (A) with respect to a [national bank](/usc/12/221a.md?p=a), the [State](/usc/12/3101.md?p=10) in which the main [office](/usc/12/3101.md?p=16) of the [bank](/usc/12/1426a.md?p=g-1) is located; and
    - (B) with respect to a [State bank](/usc/12/1835a.md?p=e-1), the [State](/usc/12/3101.md?p=10) by which the [bank](/usc/12/1426a.md?p=g-1) is chartered.
- (b) **Continuance of lawful interstate banking operations previously commenced—** Unless its authority to do so is lawfully revoked otherwise than pursuant to this section, a [foreign bank](/usc/12/3101.md?p=7), notwithstanding any restriction or limitation imposed under [subsection (a)](#a) of this section, may establish and operate, outside its [home State](/usc/12/215a–1.md?p=c), any [State branch](/usc/12/3101.md?p=12), [State agency](/usc/12/3101.md?p=11), or [bank](/usc/12/1426a.md?p=g-1) or [commercial lending company](/usc/12/3101.md?p=9) [subsidiary](/usc/12/3101.md?p=13) which commenced lawful operation or for which an application to commence business had been lawfully filed with the appropriate [State](/usc/12/3101.md?p=10) or Federal authority, as the case may be, on or before July 27, 1978. Notwithstanding [subsection (a)](#a), a [foreign bank](/usc/12/3101.md?p=7) may continue to operate, after September 29, 1994, any [Federal branch](/usc/12/3101.md?p=6), [State branch](/usc/12/3101.md?p=12), [Federal agency](/usc/12/3101.md?p=5), [State agency](/usc/12/3101.md?p=11), or [commercial lending company](/usc/12/3101.md?p=9) [subsidiary](/usc/12/3101.md?p=13) which such [bank](/usc/12/1426a.md?p=g-1) was operating on the day before September 29, 1994, to the extent the [branch](/usc/12/3101.md?p=3), [agency](/usc/12/3101.md?p=1), or [subsidiary](/usc/12/3101.md?p=13) continues, after September 29, 1994, to engage in operations which were lawful under the laws in effect on the day before September 29, 1994.
- (c) **Determination of home State of foreign bank—** For the purposes of this section—
  - (1) in the case of a [foreign bank](/usc/12/3101.md?p=7) that has any [branch](/usc/12/3101.md?p=3), [agency](/usc/12/3101.md?p=1), [subsidiary](/usc/12/3101.md?p=13) [commercial lending company](/usc/12/3101.md?p=9), or [subsidiary](/usc/12/3101.md?p=13) [bank](/usc/12/1426a.md?p=g-1) in more than 1 [State](/usc/12/3101.md?p=10), the [home State](/usc/12/215a–1.md?p=c) of the [foreign bank](/usc/12/3101.md?p=7) is the 1 [State](/usc/12/3101.md?p=10) of such [States](/usc/12/3101.md?p=10) which is selected to be the [home State](/usc/12/215a–1.md?p=c) by the [foreign bank](/usc/12/3101.md?p=7) or, in [default](/usc/12/1467a.md?p=e-7-A) of any such selection, by the [Board](/usc/12/3101.md?p=2); and
  - (2) in the case of a [foreign bank](/usc/12/3101.md?p=7) that does not have a [branch](/usc/12/3101.md?p=3), [agency](/usc/12/3101.md?p=1), [subsidiary](/usc/12/3101.md?p=13) [commercial lending company](/usc/12/3101.md?p=9), or [subsidiary](/usc/12/3101.md?p=13) [bank](/usc/12/1426a.md?p=g-1) in more than 1 [State](/usc/12/3101.md?p=10), the [home State](/usc/12/215a–1.md?p=c) of the [foreign bank](/usc/12/3101.md?p=7) is the [State](/usc/12/3101.md?p=10) in which the [foreign bank](/usc/12/3101.md?p=7) has a [branch](/usc/12/3101.md?p=3), [agency](/usc/12/3101.md?p=1), [subsidiary](/usc/12/3101.md?p=13) [commercial lending company](/usc/12/3101.md?p=9), or [subsidiary](/usc/12/3101.md?p=13) [bank](/usc/12/1426a.md?p=g-1).
- (d) **Clarification of branching rules in case of foreign bank with domestic bank subsidiary—** In the case of a [foreign bank](/usc/12/3101.md?p=7) that has a domestic [bank](/usc/12/1426a.md?p=g-1) [subsidiary](/usc/12/3101.md?p=13) within the United States—
  - (1) the fact that such [bank](/usc/12/1426a.md?p=g-1) [controls](/usc/12/3101.md?p=13) a domestic [bank](/usc/12/1426a.md?p=g-1) shall not affect the authority of the [foreign bank](/usc/12/3101.md?p=7) to establish Federal and [State branches](/usc/12/3101.md?p=12) or [agencies](/usc/12/3101.md?p=1) to the extent permitted under [subsection (a)](#a); and
  - (2) the fact that the domestic [bank](/usc/12/1426a.md?p=g-1) is [controlled](/usc/12/3101.md?p=13) by a [foreign bank](/usc/12/3101.md?p=7) which has Federal or [State branches](/usc/12/3101.md?p=12) or [agencies](/usc/12/3101.md?p=1) in [States](/usc/12/3101.md?p=10) other than the [home State](/usc/12/215a–1.md?p=c) of such domestic [bank](/usc/12/1426a.md?p=g-1) shall not affect the authority of the domestic [bank](/usc/12/1426a.md?p=g-1) to establish [branches](/usc/12/3101.md?p=3) outside the [home State](/usc/12/215a–1.md?p=c) of the domestic [bank](/usc/12/1426a.md?p=g-1) to the extent permitted under [section 36(g) of this title](/usc/12/36.md?p=g) or section [1828(d)(4)](/usc/12/1828.md?p=d-4) or [1831u](/usc/12/1831u.md) of this title, as the case may be.

# §3104. Insurance of deposits

- (a) **Objective—** In implementing this section, the [Comptroller](/usc/12/3101.md?p=4) and the Federal [Deposit](/usc/12/5301.md?p=18-A) Insurance [Corporation](/usc/12/2277a.md?p=2) shall each, by affording equal competitive opportunities to foreign and United States banking organizations in their United States operations, ensure that foreign banking organizations do not receive an unfair competitive advantage over United States banking organizations.
- (b) **Deposits of less than amount equal to the standard maximum deposit insurance amount—** No [foreign bank](/usc/12/3101.md?p=7) may establish or operate a [Federal branch](/usc/12/3101.md?p=6) which receives [deposits](/usc/12/5301.md?p=18-A) of less than an amount equal to the [standard maximum deposit insurance amount](#e) unless the [branch](/usc/12/3101.md?p=3) is an [insured branch](/usc/12/5301.md?p=18-A) as defined in section 3(s) of the Federal [Deposit](/usc/12/5301.md?p=18-A) Insurance Act [[12 U.S.C. 1813(s)](/usc/12/1813.md?p=s)], or unless the [Comptroller](/usc/12/3101.md?p=4) determines by order or regulation that the [branch](/usc/12/3101.md?p=3) is not engaged in domestic retail [deposit](/usc/12/5301.md?p=18-A) activities requiring [deposit](/usc/12/5301.md?p=18-A) insurance protection, taking account of the size and nature of depositors and [deposit](/usc/12/5301.md?p=18-A) accounts.
- (c) **Deposits required to be insured under State law—**
  - (1) After September 17, 1978, no [foreign bank](/usc/12/3101.md?p=7) may establish a [branch](/usc/12/3101.md?p=3), and after one year following such date no [foreign bank](/usc/12/3101.md?p=7) may operate a [branch](/usc/12/3101.md?p=3), in any [State](/usc/12/3101.md?p=10) in which the [deposits](/usc/12/5301.md?p=18-A) of a [bank](/usc/12/1426a.md?p=g-1) organized and existing under the laws of that [State](/usc/12/3101.md?p=10) would be required to be insured, unless the [branch](/usc/12/3101.md?p=3) is an [insured branch](/usc/12/5301.md?p=18-A) as defined in section 3(s) of the Federal [Deposit](/usc/12/5301.md?p=18-A) Insurance Act [[12 U.S.C. 1813(s)](/usc/12/1813.md?p=s)], or unless the [branch](/usc/12/3101.md?p=3) will not thereafter accept [deposits](/usc/12/5301.md?p=18-A) of less than an amount equal to the [standard maximum deposit insurance amount](#e), or unless the Federal [Deposit](/usc/12/5301.md?p=18-A) Insurance [Corporation](/usc/12/2277a.md?p=2) determines by order or regulation that the [branch](/usc/12/3101.md?p=3) is not engaged in domestic retail [deposit](/usc/12/5301.md?p=18-A) activities requiring [deposit](/usc/12/5301.md?p=18-A) insurance protection, taking account of the size and nature of depositors and [deposit](/usc/12/5301.md?p=18-A) accounts.
  - (2) Notwithstanding the previous paragraph, a [branch](/usc/12/3101.md?p=3) of a [foreign bank](/usc/12/3101.md?p=7) in operation on September 17, 1978, which has applied for Federal [deposit](/usc/12/5301.md?p=18-A) insurance pursuant to section 5 of the Federal [Deposit](/usc/12/5301.md?p=18-A) Insurance Act [[12 U.S.C. 1815](/usc/12/1815.md)] by September 17, 1979, and has not had such application denied, may continue to accept domestic retail [deposits](/usc/12/5301.md?p=18-A) until January 31, 1980.
- (d) **Retail deposit-taking by foreign banks—**
  - (1) **In general—** After December 19, 1991, notwithstanding any other provision of this chapter or any provision of the Federal [Deposit](/usc/12/5301.md?p=18-A) Insurance Act [[12 U.S.C. 1811](/usc/12/1811.md) et seq.], in order to accept or maintain domestic retail [deposit](/usc/12/5301.md?p=18-A) accounts having balances of less than an amount equal to the [standard maximum deposit insurance amount](#e), and requiring [deposit](/usc/12/5301.md?p=18-A) insurance protection, a [foreign bank](#d-3) shall—
    - (A) establish 1 or more banking [subsidiaries](/usc/12/3101.md?p=13) in the United States for that purpose; and
    - (B) obtain Federal [deposit](/usc/12/5301.md?p=18-A) insurance for any such [subsidiary](/usc/12/3101.md?p=13) in accordance with the Federal [Deposit](/usc/12/5301.md?p=18-A) Insurance Act.
  - (2) **Exception—** Domestic retail [deposit](/usc/12/5301.md?p=18-A) accounts with balances of less than an amount equal to the [standard maximum deposit insurance amount](#e) that require [deposit](/usc/12/5301.md?p=18-A) insurance protection may be accepted or maintained in a [branch](/usc/12/3101.md?p=3) of a [foreign bank](#d-3) only if such [branch](/usc/12/3101.md?p=3) was an [insured branch](/usc/12/5301.md?p=18-A) on December 19, 1991.
  - (3) **Insured banks in U.S. territories—** For purposes of this subsection, the term “foreign bank” does not include any [bank](/usc/12/1426a.md?p=g-1) organized under the laws of any territory of the United States, Puerto Rico, Guam, American Samoa, or the Virgin Islands the [deposits](/usc/12/5301.md?p=18-A) of which are insured by the Federal [Deposit](/usc/12/5301.md?p=18-A) Insurance [Corporation](/usc/12/2277a.md?p=2) pursuant to the Federal [Deposit](/usc/12/5301.md?p=18-A) Insurance Act [[12 U.S.C. 1811](/usc/12/1811.md) et seq.].
- (e) **Standard maximum deposit insurance amount defined—** For purposes of this section, the term “standard maximum deposit insurance amount” means the amount of the maximum amount of [deposit](/usc/12/5301.md?p=18-A) insurance as determined under section 11(a)(1) of the Federal [Deposit](/usc/12/5301.md?p=18-A) Insurance Act [[12 U.S.C. 1821(a)(1)](/usc/12/1821.md?p=a-1)].

# §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](/usc/12/3101.md?p=6) and [Federal agency](/usc/12/3101.md?p=5) of a [foreign bank](/usc/12/3101.md?p=7) in the same manner and to the same extent as if the [Federal branch](/usc/12/3101.md?p=6) or [Federal agency](/usc/12/3101.md?p=5) were a [member bank](/usc/12/221a.md?p=a) as that term is defined in [section 221 of this title](/usc/12/221.md); but the [Board](/usc/12/3101.md?p=2) either by general or specific regulation or ruling may waive the minimum and maximum [reserve ratios](/usc/12/1813.md?p=y-3) prescribed under sections [461](/usc/12/461.md), [463](/usc/12/463.md), [464](/usc/12/464.md), [465](/usc/12/465.md), and [466](/usc/12/466.md) of this title and may prescribe any ratio, not more than 22 per centum, for any obligation of any such [Federal branch](/usc/12/3101.md?p=6) or [Federal agency](/usc/12/3101.md?p=5) that the [Board](/usc/12/3101.md?p=2) 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](/usc/12/221a.md?p=a). The [Board](/usc/12/3101.md?p=2) may impose reserve requirements on [Federal branches](/usc/12/3101.md?p=6) and [Federal agencies](/usc/12/3101.md?p=5) in such graduated manner as it deems reasonable and appropriate.
    - (B) After consultation and in cooperation with the State bank supervisory authorities, the [Board](/usc/12/3101.md?p=2) may make applicable to any [State branch](/usc/12/3101.md?p=12) or [State agency](/usc/12/3101.md?p=11) any requirement made applicable to, or which the [Board](/usc/12/3101.md?p=2) has authority to impose upon, any [Federal branch](/usc/12/3101.md?p=6) or [agency](/usc/12/3101.md?p=1) under subparagraph (A) of this paragraph.
  - (2) A [branch](/usc/12/3101.md?p=3) or [agency](/usc/12/3101.md?p=1) shall be subject to this subsection only if (A) its parent [foreign bank](/usc/12/3101.md?p=7) has total worldwide [consolidated](/usc/12/3101.md?p=14) [bank](/usc/12/1426a.md?p=g-1) assets in excess of $1,000,000,000; (B) its parent [foreign bank](/usc/12/3101.md?p=7) is [controlled](/usc/12/3101.md?p=13) by a foreign [company](/usc/12/3101.md?p=13) which owns or [controls](/usc/12/3101.md?p=13) [foreign banks](/usc/12/3101.md?p=7) that in the aggregate have total worldwide [consolidated](/usc/12/3101.md?p=14) [bank](/usc/12/1426a.md?p=g-1) assets in excess of $1,000,000,000; or (C) its parent [foreign bank](/usc/12/3101.md?p=7) is [controlled](/usc/12/3101.md?p=13) by a group of foreign [companies](/usc/12/3101.md?p=13) that own or [control](/usc/12/3101.md?p=13) [foreign banks](/usc/12/3101.md?p=7) that in the aggregate have total worldwide [consolidated](/usc/12/3101.md?p=14) [bank](/usc/12/1426a.md?p=g-1) 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](/usc/12/3101.md?p=2) may examine each [branch](/usc/12/3101.md?p=3) or [agency](/usc/12/3101.md?p=1) of a [foreign bank](/usc/12/3101.md?p=7), each [commercial lending company](/usc/12/3101.md?p=9) or [bank](/usc/12/1426a.md?p=g-1) [controlled](/usc/12/3101.md?p=13) by 1 or more [foreign banks](/usc/12/3101.md?p=7) or 1 or more foreign [companies](/usc/12/3101.md?p=13) that [control](/usc/12/3101.md?p=13) a [foreign bank](/usc/12/3101.md?p=7), and other [office](/usc/12/3101.md?p=16) or [affiliate](/usc/12/3101.md?p=13) of a [foreign bank](/usc/12/3101.md?p=7) conducting business in any [State](/usc/12/3101.md?p=10).
    - (B) **Coordination of examinations—**
      - (i) **In general—** The [Board](/usc/12/3101.md?p=2) shall coordinate examinations under this paragraph with the [Comptroller](/usc/12/3101.md?p=4) of the Currency, the Federal [Deposit](/usc/12/5301.md?p=18-A) Insurance [Corporation](/usc/12/2277a.md?p=2), and appropriate [State bank supervisors](/usc/12/3101.md?p=17) to the extent such coordination is possible.
      - (ii) **Simultaneous examinations—** The [Board](/usc/12/3101.md?p=2) may request simultaneous examinations of each [office](/usc/12/3101.md?p=16) of a [foreign bank](/usc/12/3101.md?p=7) and each [affiliate](/usc/12/3101.md?p=13) of such [bank](/usc/12/1426a.md?p=g-1) operating in the United States.
      - (iii) **Avoidance of duplication—** In exercising its authority under this paragraph, the [Board](/usc/12/3101.md?p=2) shall take all reasonable measures to reduce burden and avoid unnecessary duplication of examinations.
    - (C) **On-site examination—** Each [Federal branch](/usc/12/3101.md?p=6) or [agency](/usc/12/3101.md?p=1), and each [State branch](/usc/12/3101.md?p=12) or [agency](/usc/12/3101.md?p=1), of a [foreign bank](/usc/12/3101.md?p=7) shall be subject to on-site examination by an [appropriate Federal banking agency](/usc/12/24a.md?p=g-2) or [State bank supervisor](/usc/12/3101.md?p=17) as frequently as would a [national bank](/usc/12/221a.md?p=a) or a [State bank](/usc/12/1835a.md?p=e-1), respectively, by the [appropriate Federal banking agency](/usc/12/24a.md?p=g-2).
    - (D) **Cost of examinations—** The cost of any examination under [subparagraph (A)](#c-1-A) shall be assessed against and collected from the [foreign bank](/usc/12/3101.md?p=7) or the foreign [company](/usc/12/3101.md?p=13) that [controls](/usc/12/3101.md?p=13) the [foreign bank](/usc/12/3101.md?p=7), as the case may be, only to the same extent that fees are collected by the [Board](/usc/12/3101.md?p=2) for examination of any [State member bank](/usc/12/5301.md?p=18-A).
  - (2) **Reporting requirements—** Each [branch](/usc/12/3101.md?p=3) or [agency](/usc/12/3101.md?p=1) of a [foreign bank](/usc/12/3101.md?p=7), other than a [Federal branch](/usc/12/3101.md?p=6) or [agency](/usc/12/3101.md?p=1), shall be subject to [section 335 of this title](/usc/12/335.md) and the provision requiring the reports of condition contained in [section 324 of this title](/usc/12/324.md) to the same extent and in the same manner as if the [branch](/usc/12/3101.md?p=3) or [agency](/usc/12/3101.md?p=1) were a [State member bank](/usc/12/5301.md?p=18-A). In addition to any requirements imposed under [section 3102 of this title](/usc/12/3102.md), each [Federal branch](/usc/12/3101.md?p=6) and [agency](/usc/12/3101.md?p=1) shall be subject to [section 248(a) of this title](/usc/12/248.md?p=a) and to [section 483 of this title](/usc/12/483.md) to the same extent and in the same manner as if it were a [member bank](/usc/12/221a.md?p=a).
- (d) **Establishment of foreign bank offices in United States—**
  - (1) **Prior approval required—** No [foreign bank](/usc/12/3101.md?p=7) may establish a [branch](/usc/12/3101.md?p=3) or an [agency](/usc/12/3101.md?p=1), or [acquire](/usc/12/1467a.md?p=a-1-J) ownership or [control](/usc/12/3101.md?p=13) of a [commercial lending company](/usc/12/3101.md?p=9), without the prior approval of the [Board](/usc/12/3101.md?p=2).
  - (2) **Required standards for approval—** Except as provided in [paragraph (6)](#d-6), the [Board](/usc/12/3101.md?p=2) may not approve an application under [paragraph (1)](#d-1) unless it determines that—
    - (A) the [foreign bank](/usc/12/3101.md?p=7) engages directly in the business of banking outside of the United States and is subject to comprehensive supervision or regulation on a [consolidated](/usc/12/3101.md?p=14) basis by the appropriate authorities in its home country; and
    - (B) the [foreign bank](/usc/12/3101.md?p=7) has furnished to the [Board](/usc/12/3101.md?p=2) the information it needs to adequately assess the application.
  - (3) **Standards for approval—** In acting on any application under [paragraph (1)](#d-1), the [Board](/usc/12/3101.md?p=2) may take into account—
    - (A) whether the appropriate authorities in the home country of the [foreign bank](/usc/12/3101.md?p=7) have consented to the proposed establishment of a [branch](/usc/12/3101.md?p=3), [agency](/usc/12/3101.md?p=1) or [commercial lending company](/usc/12/3101.md?p=9) in the United States by the [foreign bank](/usc/12/3101.md?p=7);
    - (B) the financial and managerial resources of the [foreign bank](/usc/12/3101.md?p=7), [including](/usc/12/25b.md?p=a-3) the [bank](/usc/12/1426a.md?p=g-1)’s experience and capacity to engage in international banking;
    - (C) whether the [foreign bank](/usc/12/3101.md?p=7) has provided the [Board](/usc/12/3101.md?p=2) with adequate assurances that the [bank](/usc/12/1426a.md?p=g-1) will make available to the [Board](/usc/12/3101.md?p=2) such information on the operations or activities of the [foreign bank](/usc/12/3101.md?p=7) and any [affiliate](/usc/12/3101.md?p=13) of the [bank](/usc/12/1426a.md?p=g-1) that the [Board](/usc/12/3101.md?p=2) deems necessary to determine and enforce compliance with this chapter, the Bank Holding Company Act of 1956 [[12 U.S.C. 1841](/usc/12/1841.md) et seq.], and other applicable Federal law;
    - (D) whether the [foreign bank](/usc/12/3101.md?p=7) and the United States [affiliates](/usc/12/3101.md?p=13) of the [bank](/usc/12/1426a.md?p=g-1) are in compliance with applicable United States law; and
    - (E) for a [foreign bank](/usc/12/3101.md?p=7) that presents a risk to the stability of United States financial system, whether the home country of the [foreign bank](/usc/12/3101.md?p=7) 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)](#d-1), the [Board](/usc/12/3101.md?p=2) shall not make the size of the [foreign bank](/usc/12/3101.md?p=7) 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](/usc/12/3101.md?p=7) and its relative size in its home country. Nothing in this paragraph shall affect the ability of the [Board](/usc/12/3101.md?p=2) to order a [State branch](/usc/12/3101.md?p=12), [agency](/usc/12/3101.md?p=1), or [commercial lending company](/usc/12/3101.md?p=9) [subsidiary](/usc/12/3101.md?p=13) to terminate its activities in the United States pursuant to any standard set forth in this chapter.
  - (5) **Establishment of conditions—** The [Board](/usc/12/3101.md?p=2) may impose such conditions on its approval under this subsection as it deems necessary.
  - (6) **Exception—**
    - (A) **In general—** If the [Board](/usc/12/3101.md?p=2) is unable to find, under [paragraph (2)](#d-2), that a [foreign bank](/usc/12/3101.md?p=7) is subject to comprehensive supervision or regulation on a [consolidated](/usc/12/3101.md?p=14) basis by the appropriate authorities in its home country, the [Board](/usc/12/3101.md?p=2) may nevertheless approve an application by such [foreign bank](/usc/12/3101.md?p=7) under [paragraph (1)](#d-1) if—
      - (i) the appropriate authorities in the home country of the [foreign bank](/usc/12/3101.md?p=7) are actively working to establish arrangements for the [consolidated](/usc/12/3101.md?p=14) supervision of such [bank](/usc/12/1426a.md?p=g-1); and
      - (ii) all other factors are consistent with approval.
    - (B) **Other considerations—** In deciding whether to use its discretion under [subparagraph (A)](#d-6-A), the [Board](/usc/12/3101.md?p=2) shall also consider whether the [foreign bank](/usc/12/3101.md?p=7) has adopted and implements procedures to combat money laundering. The [Board](/usc/12/3101.md?p=2) may also take into account whether the home country of the [foreign bank](/usc/12/3101.md?p=7) 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](/usc/12/3101.md?p=2), after requesting and taking into consideration the views of the appropriate [State bank supervisor](/usc/12/3101.md?p=17) or the [Comptroller](/usc/12/3101.md?p=4) 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](/usc/12/3101.md?p=3), [agency](/usc/12/3101.md?p=1), or [commercial lending company](/usc/12/3101.md?p=9) [subsidiary](/usc/12/3101.md?p=13), [including](/usc/12/25b.md?p=a-3) restrictions on sources of funding, as are considered appropriate. The [Board](/usc/12/3101.md?p=2) shall coordinate with the appropriate [State bank supervisor](/usc/12/3101.md?p=17) or the [Comptroller](/usc/12/3101.md?p=4) 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](/usc/12/3101.md?p=2) 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](/usc/12/3101.md?p=2) shall take final action on any application under [paragraph (1)](#d-1) not later than 180 days after receipt of the application, except that the [Board](/usc/12/3101.md?p=2) 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](/usc/12/3101.md?p=7) and any appropriate [State bank supervisor](/usc/12/3101.md?p=17) or the [Comptroller](/usc/12/3101.md?p=4) of the Currency, as appropriate.
    - (B) **Failure to submit information—** The [Board](/usc/12/3101.md?p=2) may deny any application if it does not receive information requested from the applicant [foreign bank](/usc/12/3101.md?p=7) or appropriate authorities in the home country of the [foreign bank](/usc/12/3101.md?p=7) in sufficient time to permit the [Board](/usc/12/3101.md?p=2) to evaluate such information adequately within the time periods for final action set forth in [subparagraph (A)](#d-7-A).
    - (C) **Waiver—** A [foreign bank](/usc/12/3101.md?p=7) may waive the applicability of this paragraph with respect to any application under [paragraph (1)](#d-1).
- (e) **Termination of foreign bank offices in United States—**
  - (1) **Standards for termination—** The [Board](/usc/12/3101.md?p=2), after notice and opportunity for hearing and notice to any appropriate [State bank supervisor](/usc/12/3101.md?p=17), may order a [foreign bank](/usc/12/3101.md?p=7) that operates a [State branch](/usc/12/3101.md?p=12) or [agency](/usc/12/3101.md?p=1) or [commercial lending company](/usc/12/3101.md?p=9) [subsidiary](/usc/12/3101.md?p=13) in the United States to terminate the activities of such [branch](/usc/12/3101.md?p=3), [agency](/usc/12/3101.md?p=1), or [subsidiary](/usc/12/3101.md?p=13) if the [Board](/usc/12/3101.md?p=2) finds that—
    - (A)
      - (i) the [foreign bank](/usc/12/3101.md?p=7) is not subject to comprehensive supervision or regulation on a [consolidated](/usc/12/3101.md?p=14) basis by the appropriate authorities in its home country; and
      - (ii) the appropriate authorities in the home country of the [foreign bank](/usc/12/3101.md?p=7) are not making demonstrable progress in establishing arrangements for the comprehensive supervision or regulation of such [foreign bank](/usc/12/3101.md?p=7) on a [consolidated](/usc/12/3101.md?p=14) basis;
    - (B)
      - (i) there is reasonable cause to believe that such [foreign bank](/usc/12/3101.md?p=7), or any [affiliate](/usc/12/3101.md?p=13) of such [foreign bank](/usc/12/3101.md?p=7), 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](/usc/12/3101.md?p=7)’s [branch](/usc/12/3101.md?p=3), [agency](/usc/12/3101.md?p=1) or [commercial lending company](/usc/12/3101.md?p=9) [subsidiary](/usc/12/3101.md?p=13) 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](/usc/12/1841.md) et seq.], or the Federal [Deposit](/usc/12/5301.md?p=18-A) Insurance Act [[12 U.S.C. 1811](/usc/12/1811.md) et seq.]; or
    - (C) for a [foreign bank](/usc/12/3101.md?p=7) that presents a risk to the stability of the United States financial system, the home country of the [foreign bank](/usc/12/3101.md?p=7) 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](/usc/12/3101.md?p=2) 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](/usc/12/3101.md?p=7) and its relative size in its home country. Nothing in this paragraph shall affect the ability of the [Board](/usc/12/3101.md?p=2) to order a [State branch](/usc/12/3101.md?p=12), [agency](/usc/12/3101.md?p=1), or [commercial lending company](/usc/12/3101.md?p=9) [subsidiary](/usc/12/3101.md?p=13) to terminate its activities in the United States pursuant to any standard set forth in this chapter.

  - (2) **Discretion to deny hearing—** The [Board](/usc/12/3101.md?p=2) may issue an order under [paragraph (1)](#e-1) without providing for an opportunity for a hearing if the [Board](/usc/12/3101.md?p=2) 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)](#e-1) shall take effect before the end of the 120-day period beginning on the date such order is issued unless the [Board](/usc/12/3101.md?p=2) extends such period.
  - (4) **Compliance with State and Federal law—** Any [foreign bank](/usc/12/3101.md?p=7) required to terminate activities conducted at [offices](/usc/12/3101.md?p=16) or [subsidiaries](/usc/12/3101.md?p=13) in the United States pursuant to this subsection shall comply with the requirements of applicable Federal and [State](/usc/12/3101.md?p=10) law with respect to procedures for the closure or dissolution of such [offices](/usc/12/3101.md?p=16) or [subsidiaries](/usc/12/3101.md?p=13).
  - (5) **Recommendation to agency for termination of a Federal branch or agency—** The [Board](/usc/12/3101.md?p=2) may transmit to the [Comptroller](/usc/12/3101.md?p=4) of the Currency a recommendation that the license of any [Federal branch](/usc/12/3101.md?p=6) or [Federal agency](/usc/12/3101.md?p=5) of a [foreign bank](/usc/12/3101.md?p=7) be terminated in accordance with [section 3102(i) of this title](/usc/12/3102.md?p=i) if the [Board](/usc/12/3101.md?p=2) has reasonable cause to believe that such [foreign bank](/usc/12/3101.md?p=7) or any [affiliate](/usc/12/3101.md?p=13) of such [foreign bank](/usc/12/3101.md?p=7) has engaged in conduct for which the activities of any [State branch](/usc/12/3101.md?p=12) or [agency](/usc/12/3101.md?p=1) may be terminated under [paragraph (1)](#e-1).
  - (6) **Enforcement of orders—**
    - (A) **In general—** In the case of contumacy of any [office](/usc/12/3101.md?p=16) or [subsidiary](/usc/12/3101.md?p=13) of the [foreign bank](/usc/12/3101.md?p=7) against which—
      - (i) the [Board](/usc/12/3101.md?p=2) has issued an order under [paragraph (1)](#e-1); or
      - (ii) the [Comptroller](/usc/12/3101.md?p=4) of the Currency has issued an order under [section 3102(i) of this title](/usc/12/3102.md?p=i),

      or a refusal by such [office](/usc/12/3101.md?p=16) or [subsidiary](/usc/12/3101.md?p=13) to comply with such order, the [Board](/usc/12/3101.md?p=2) or the [Comptroller](/usc/12/3101.md?p=4) of the Currency may invoke the aid of the [district](/usc/12/221a.md?p=a) court of the United States within the jurisdiction of which the [office](/usc/12/3101.md?p=16) or [subsidiary](/usc/12/3101.md?p=13) is located.

    - (B) **Court order—** Any court referred to in [subparagraph (A)](#e-6-A) may issue an order requiring compliance with an order referred to in [subparagraph (A)](#e-6-A).
  - (7) **Criteria relating to foreign supervision—** Not later than 1 year after December 19, 1991, the [Board](/usc/12/3101.md?p=2), in consultation with the Secretary of the Treasury, shall develop and publish criteria to be used in evaluating the operation of any [foreign bank](/usc/12/3101.md?p=7) in the United States that the [Board](/usc/12/3101.md?p=2) has determined is not subject to comprehensive supervision or regulation on a [consolidated](/usc/12/3101.md?p=14) basis. In developing such criteria, the [Board](/usc/12/3101.md?p=2) shall allow reasonable opportunity for public review and comment.
- (f) **Judicial review—**
  - (1) **Jurisdiction of United States courts of appeals—** Any [foreign bank](/usc/12/3101.md?p=7)—
    - (A) whose application under [subsection (d)](#d) or [section 3107(a) of this title](/usc/12/3107.md?p=a) has been disapproved by the [Board](/usc/12/3101.md?p=2);
    - (B) against which the [Board](/usc/12/3101.md?p=2) has issued an order under [subsection (e)](#e) or [section 3107(b) of this title](/usc/12/3107.md?p=b); or
    - (C) against which the [Comptroller](/usc/12/3101.md?p=4) of the Currency has issued an order under [section 3102(i) of this title](/usc/12/3102.md?p=i),

    may obtain a review of such order in the United States court of appeals for any circuit in which such [foreign bank](/usc/12/3101.md?p=7) operates a [branch](/usc/12/3101.md?p=3), [agency](/usc/12/3101.md?p=1), or [commercial lending company](/usc/12/3101.md?p=9) 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](/usc/5/706.md) (other than [paragraph (2)(F)](/usc/5/706.md?p=2-F) of such section) shall apply with respect to any review under [paragraph (1)](#f-1).
- (g) **Consultation with State bank supervisor—** The [Board](/usc/12/3101.md?p=2) shall request and consider any views of the appropriate [State bank supervisor](/usc/12/3101.md?p=17) with respect to any application or action under subsection [(d)](#d) or [(e)](#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](/usc/12/3101.md?p=12) or [State agency](/usc/12/3101.md?p=11) may not engage in any type of activity that is not permissible for a [Federal branch](/usc/12/3101.md?p=6) unless—
    - (A) the [Board](/usc/12/3101.md?p=2) has determined that such activity is consistent with sound banking practice; and
    - (B) in the case of an [insured branch](/usc/12/5301.md?p=18-A), the Federal [Deposit](/usc/12/5301.md?p=18-A) Insurance [Corporation](/usc/12/2277a.md?p=2) has determined that the activity would pose no significant risk to the [deposit insurance fund](/usc/12/1813.md?p=y-1).
  - (2) **Single borrower lending limit—** A [State branch](/usc/12/3101.md?p=12) or [State agency](/usc/12/3101.md?p=11) shall be subject to the same limitations with respect to loans made to a single borrower as are applicable to a [Federal branch](/usc/12/3101.md?p=6) or [Federal agency](/usc/12/3101.md?p=5) under [section 3102(b) of this title](/usc/12/3102.md?p=b).
  - (3) **Other authority not affected—** This section does not limit the authority of the [Board](/usc/12/3101.md?p=2) or any [State](/usc/12/3101.md?p=10) 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](/usc/12/3101.md?p=2) finds or receives written notice from the Attorney General that—
    - (A) any [foreign bank](/usc/12/3101.md?p=7) which operates a [State agency](/usc/12/3101.md?p=11), a [State branch](/usc/12/3101.md?p=12) which is not an [insured branch](#i-2-A), or a [State](/usc/12/3101.md?p=10) [commercial lending company](/usc/12/3101.md?p=9) [subsidiary](/usc/12/3101.md?p=13);
    - (B) any [State agency](/usc/12/3101.md?p=11);
    - (C) any [State branch](/usc/12/3101.md?p=12) which is not an [insured branch](#i-2-A); or
    - (D) any [State](/usc/12/3101.md?p=10) commercial lending [subsidiary](/usc/12/3101.md?p=13),

    has been found guilty of any [money laundering offense](#i-2-B), the [Board](/usc/12/3101.md?p=2) shall issue a notice to the [agency](/usc/12/3101.md?p=1), [branch](/usc/12/3101.md?p=3), or [subsidiary](/usc/12/3101.md?p=13) of the [Board](/usc/12/3101.md?p=2)’s intention to commence a termination proceeding under [subsection (e)](#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](/usc/12/5301.md?p=18-A) Insurance Act [[12 U.S.C. 1813(s)](/usc/12/1813.md?p=s)].
    - (B) **Money laundering offense defined—** The term “money laundering offense” means any criminal offense under section [1956](/usc/18/1956.md) or [1957](/usc/18/1957.md) of title 18 or under [section 5322 of title 31](/usc/31/5322.md).
- (j) **Study on equivalence of foreign bank capital—** Not later than 180 days after December 19, 1991, the [Board](/usc/12/3101.md?p=2) 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](/usc/12/1835.md?p=i-3) contained in the framework for measurement of [capital](/usc/12/51c.md) adequacy established by the Supervisory Committee of the [Bank](/usc/12/1426a.md?p=g-1) for International Settlements, foreign regulatory [capital standards](/usc/12/1835.md?p=i-3) that apply to [foreign banks](/usc/12/3101.md?p=7) conducting banking operations in the United States, and the relationship of the Basle and foreign standards to risk-based [capital](/usc/12/51c.md) and leverage requirements for United States [banks](/usc/12/221a.md?p=a); and
  - (2) establishing guidelines for the adjustments to be used by the [Board](/usc/12/3101.md?p=2) in converting data on the [capital](/usc/12/51c.md) of such [foreign banks](/usc/12/3101.md?p=7) to the equivalent risk-based [capital](/usc/12/51c.md) and leverage requirements for United States [banks](/usc/12/221a.md?p=a) for purposes of determining whether a [foreign bank](/usc/12/3101.md?p=7)’s [capital](/usc/12/51c.md) level is equivalent to that imposed on United States [banks](/usc/12/221a.md?p=a) 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](/usc/12/1842.md), 1843].

  An update shall be prepared annually explaining any changes in the analysis under [paragraph (1)](#j-1) and resulting changes in the guidelines pursuant to [paragraph (2)](#j-2).

- (k) **Management of shell branches—**
  - (1) **Transactions prohibited—** A [branch](/usc/12/3101.md?p=3) or [agency](/usc/12/3101.md?p=1) of a [foreign bank](/usc/12/3101.md?p=7) shall not manage, through an [office](/usc/12/3101.md?p=16) of the [foreign bank](/usc/12/3101.md?p=7) which is located outside the United States and is managed or [controlled](/usc/12/3101.md?p=13) by such [branch](/usc/12/3101.md?p=3) or [agency](/usc/12/3101.md?p=1), any type of activity that a [bank](/usc/12/1426a.md?p=g-1) organized under the laws of the United States, any [State](/usc/12/3101.md?p=10), or the District of Columbia is not permitted to manage at any [branch](/usc/12/3101.md?p=3) or [subsidiary](/usc/12/3101.md?p=13) of such [bank](/usc/12/1426a.md?p=g-1) 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](/usc/12/3108.md); and
    - (B) shall be uniform, to the extent practicable.

# §3106. Nonbanking activities of foreign banks

- (a) **Applicability of Bank Holding Company Acts—** Except as otherwise provided in this section (1) any [foreign bank](/usc/12/3101.md?p=7) that maintains a [branch](/usc/12/3101.md?p=3) or [agency](/usc/12/3101.md?p=1) in a [State](/usc/12/3101.md?p=10), (2) any [foreign bank](/usc/12/3101.md?p=7) or foreign [company](/usc/12/3101.md?p=13) [controlling](/usc/12/3101.md?p=13) a [foreign bank](/usc/12/3101.md?p=7) that [controls](/usc/12/3101.md?p=13) a [commercial lending company](/usc/12/3101.md?p=9) organized under [State](/usc/12/3101.md?p=10) law, and (3) any [company](/usc/12/3101.md?p=13) of which any [foreign bank](/usc/12/3101.md?p=7) or [company](/usc/12/3101.md?p=13) referred to in (1) and (2) is a [subsidiary](/usc/12/3101.md?p=13) shall be subject to the provisions of the Bank Holding Company Act of 1956 [[12 U.S.C. 1841](/usc/12/1841.md) et seq.], and to [section 1850 of this title](/usc/12/1850.md) and [chapter 22](/usc/12/ch22.md) of this title in the same manner and to the same extent that [bank holding companies](/usc/12/3101.md?p=13) are subject to such provisions.
- (b) **Ownership or control of shares of nonbanking companies for certain period—** Until December 31, 1985, a [foreign bank](/usc/12/3101.md?p=7) or other [company](/usc/12/3101.md?p=13) to which [subsection (a)](#a) applies on September 17, 1978, may retain direct or indirect ownership or [control](/usc/12/3101.md?p=13) of any voting shares of any nonbanking [company](/usc/12/3101.md?p=13) in the United States that it owned, [controlled](/usc/12/3101.md?p=13), or held with power to vote on September 17, 1978, or engage in any nonbanking activities in the United States in which it was engaged on such date.
- (c) **Engagement in nonbanking activities after certain period—**
  - (1) After December 31, 1985, a [foreign bank](/usc/12/3101.md?p=7) or other [company](/usc/12/3101.md?p=13) to which [subsection (a)](#a) applies on September 17, 1978, or on the date of the establishment of a [branch](/usc/12/3101.md?p=3) in a [State](/usc/12/3101.md?p=10) an application for which was filed on or before July 26, 1978, may continue to engage in nonbanking activities in the United States in which directly or through an affiliate it was lawfully engaged on July 26, 1978 (or on a date subsequent to July 26, 1978, in the case of activities carried on as the result of the direct or indirect acquisition, pursuant to a binding written contract entered into on or before July 26, 1978, of another [company](/usc/12/3101.md?p=13) engaged in such activities at the time of acquisition), and may engage directly or through an affiliate in nonbanking activities in the United States which are covered by an application to engage in such activities which was filed on or before July 26, 1978; except that the [Board](/usc/12/3101.md?p=2) by order, after opportunity for hearing, may terminate the authority conferred by this subsection on any such [foreign bank](/usc/12/3101.md?p=7) or [company](/usc/12/3101.md?p=13) to engage directly or through an affiliate in any activity otherwise permitted by this subsection if it determines having due regard to the purposes of this chapter and the Bank Holding Company Act of 1956 [[12 U.S.C. 1841](/usc/12/1841.md) et seq.], that such action is necessary to prevent undue concentration of resources, decreased or unfair competition, conflicts of interest, or unsound banking practices in the United States. Notwithstanding [subsection (a)](#a) of this section, a [foreign bank](/usc/12/3101.md?p=7) or [company](/usc/12/3101.md?p=13) referred to in this subsection may retain ownership or [control](/usc/12/3101.md?p=13) of any voting shares (or, where necessary to prevent dilution of its voting interest, [acquire](/usc/12/1467a.md?p=a-1-J) additional voting shares) of any domestically-controlled affiliate covered in 1978 which since July 26, 1978, has engaged in the business of underwriting, distributing, or otherwise buying or selling stocks, bonds, and other securities in the United States, notwithstanding that such affiliate acquired after July 26, 1978, an interest in, or any or all of the assets of, a going concern, or commences to engage in any new activity or activities. Except in the case of affiliates described in the preceding sentence, nothing in this subsection shall be construed to authorize any [foreign bank](/usc/12/3101.md?p=7) or [company](/usc/12/3101.md?p=13) referred to in this subsection, or any affiliate thereof, to engage in activities authorized by this subsection through the acquisition, pursuant to a contract entered into after July 26, 1978, of any interest in or the assets of a going concern engaged in such activities. Any [foreign bank](/usc/12/3101.md?p=7) or [company](/usc/12/3101.md?p=13) that is authorized to engage in any activity pursuant to this subsection but, as a result of action of the [Board](/usc/12/3101.md?p=2), is required to terminate such activity may retain the ownership of [control](/usc/12/3101.md?p=13) of shares in any [company](/usc/12/3101.md?p=13) carrying on such activity for a period of two years from the date on which its authority was so terminated by the [Board](/usc/12/3101.md?p=2). As used in this subsection, the term “affiliate” shall mean any [company](/usc/12/3101.md?p=13) more than 5 per centum of whose voting shares is directly or indirectly owned or [controlled](/usc/12/3101.md?p=13) or held with power to vote by the specified [foreign bank](/usc/12/3101.md?p=7) or [company](/usc/12/3101.md?p=13), and the term “domestically-controlled affiliate covered in 1978” shall mean an affiliate organized under the laws of the United States or any [State](/usc/12/3101.md?p=10) thereof if (i) no [foreign bank](/usc/12/3101.md?p=7) or group of [foreign banks](/usc/12/3101.md?p=7) acting in concert owns or [controls](/usc/12/3101.md?p=13), directly or indirectly, 45 per centum or more of its voting shares, and (ii) no more than 20 per centum of the number of [directors](/usc/12/2279bb.md?p=3) as established from time to time to constitute the whole [board](/usc/12/3101.md?p=2) of [directors](/usc/12/2279bb.md?p=3) and 20 per centum of the [executive officers](/usc/12/1831o.md?p=b-2-H) of such affiliate are persons affiliated with any such foreign bank. For the purpose of the preceding sentence, the term “persons affiliated with any such foreign bank” shall mean (A) [any person](/usc/12/1715z–4a.md?p=a-2) who is or was an employee, officer, agent, or [director](/usc/12/2279bb.md?p=3) of such [foreign bank](/usc/12/3101.md?p=7) or who otherwise has or had such a relationship with such [foreign bank](/usc/12/3101.md?p=7) that would lead such [person](/usc/12/5481.md?p=19) to represent the interests of such [foreign bank](/usc/12/3101.md?p=7), and (B) in the case of any [director](/usc/12/2279bb.md?p=3) of such domestically [controlled](/usc/12/3101.md?p=13) affiliate covered in 1978, [any person](/usc/12/1715z–4a.md?p=a-2) in favor of whose election as a [director](/usc/12/2279bb.md?p=3) votes were cast by less than two-thirds of all shares voting in connection with such election other than shares owned or [controlled](/usc/12/3101.md?p=13), directly or indirectly, by any such [foreign bank](/usc/12/3101.md?p=7).
  - (2) The authority conferred by this subsection on a [foreign bank](/usc/12/3101.md?p=7) or other [company](/usc/12/3101.md?p=13) shall terminate 2 years after the date on which such [foreign bank](/usc/12/3101.md?p=7) or other [company](/usc/12/3101.md?p=13) becomes a “[bank holding company](/usc/12/3101.md?p=13)” as defined in section 2(a) of the Bank Holding Company Act of 1956 ([12 U.S.C. 1841(a)](/usc/12/1841.md?p=a)); except that the [Board](/usc/12/3101.md?p=2) may, upon application of such [foreign bank](/usc/12/3101.md?p=7) or other [company](/usc/12/3101.md?p=13), extend the 2-year period for not more than one year at a time, if, in its judgment, such an extension would not be detrimental to the public interest, but no such extensions shall exceed 3 years in the aggregate.
  - (3) **Termination of grandfathered rights.—**
    - (A) **In general.—** If any [foreign bank](/usc/12/3101.md?p=7) or foreign [company](/usc/12/3101.md?p=13) files a declaration under [section 4(l)(1)(C)](/usc/12/4.md)[^1] of the Bank Holding Company Act of 1956 [[12 U.S.C. 1843(l)(1)(C)](/usc/12/1843.md?p=l-1-C)], any authority conferred by this subsection on any [foreign bank](/usc/12/3101.md?p=7) or [company](/usc/12/3101.md?p=13) to engage in any activity that the [Board](/usc/12/3101.md?p=2) has determined to be permissible for [financial holding companies](/usc/12/2903.md?p=c-3-A) under [section 4(k)](/usc/12/4.md) of such Act [[12 U.S.C. 1843(k)](/usc/12/1843.md?p=k)] shall terminate immediately.
    - (B) **Restrictions and requirements authorized.—** If a [foreign bank](/usc/12/3101.md?p=7) or [company](/usc/12/3101.md?p=13) that engages, directly or through an [affiliate](#c-1) pursuant to [paragraph (1)](#c-1), in an activity that the [Board](/usc/12/3101.md?p=2) has determined to be permissible for [financial holding companies](/usc/12/2903.md?p=c-3-A) under section 4(k) of the Bank Holding Company Act of 1956 [[12 U.S.C. 1843(k)](/usc/12/1843.md?p=k)] has not filed a declaration with the [Board](/usc/12/3101.md?p=2) of its status as a [financial holding company](/usc/12/2903.md?p=c-3-A) under such section by the end of the 2-year period beginning on November 12, 1999, the [Board](/usc/12/3101.md?p=2), giving due regard to the principle of national treatment and equality of competitive opportunity, may impose such restrictions and requirements on the conduct of such activities by such [foreign bank](/usc/12/3101.md?p=7) or [company](/usc/12/3101.md?p=13) as are comparable to those imposed on a [financial holding company](/usc/12/2903.md?p=c-3-A) organized under the laws of the United States, [including](/usc/12/25b.md?p=a-3) a requirement to conduct such activities in compliance with any prudential safeguards established under [section 1828a of this title](/usc/12/1828a.md).
- (d) **Construction of terms—** Nothing in this section shall be construed to define a [branch](/usc/12/3101.md?p=3) or [agency](/usc/12/3101.md?p=1) of a [foreign bank](/usc/12/3101.md?p=7) or a [commercial lending company](/usc/12/3101.md?p=9) [controlled](/usc/12/3101.md?p=13) by a [foreign bank](/usc/12/3101.md?p=7) or foreign [company](/usc/12/3101.md?p=13) that [controls](/usc/12/3101.md?p=13) a [foreign bank](/usc/12/3101.md?p=7) as a “[bank](/usc/12/1426a.md?p=g-1)” for the purposes of any provisions of the Bank Holding Company Act of 1956 [[12 U.S.C. 1841](/usc/12/1841.md) et seq.], or [section 1850 of this title](/usc/12/1850.md), except that any such [branch](/usc/12/3101.md?p=3), [agency](/usc/12/3101.md?p=1) or [commercial lending company](/usc/12/3101.md?p=9) [subsidiary](/usc/12/3101.md?p=13) shall be deemed a “[bank](/usc/12/1426a.md?p=g-1)” or “banking [subsidiary](/usc/12/3101.md?p=13)”, as the case may be, for the purposes of applying the prohibitions of [chapter 22](/usc/12/ch22.md) of this title and the exemptions provided in sections 4(c)(1), 4(c)(2), 4(c)(3), and 4(c)(4) of the Bank Holding Company Act of 1956 ([12 U.S.C. 1843(c)(1)](/usc/12/1843.md?p=c-1), (2), (3), and (4)) to any [foreign bank](/usc/12/3101.md?p=7) or other [company](/usc/12/3101.md?p=13) to which [subsection (a)](#a) applies.

# §3106a. Compliance with State and Federal laws

- (1) Every [branch](/usc/12/3101.md?p=3) or [agency](/usc/12/3101.md?p=1) of a [foreign bank](/usc/12/3101.md?p=7) and every [commercial lending company](/usc/12/3101.md?p=9) [controlled](/usc/12/3101.md?p=13) by one or more [foreign banks](/usc/12/3101.md?p=7) or by one or more foreign [companies](/usc/12/3101.md?p=13) that [control](/usc/12/3101.md?p=13) a [foreign bank](/usc/12/3101.md?p=7) shall conduct its operations in the United States in full compliance with provisions of any law of the United States or any [State](/usc/12/3101.md?p=10) thereof which—
  - (A) impose requirements that protect the rights of [consumers](/usc/12/5481.md?p=4) in financial transactions, to the extent that the [branch](/usc/12/3101.md?p=3), [agency](/usc/12/3101.md?p=1), or [commercial lending company](/usc/12/3101.md?p=9) engages in activities that are subject to such laws;
  - (B) prohibit discrimination against any individual or other [person](/usc/12/5481.md?p=19) on the basis of the race, color, religion, sex, marital status, age, or national origin of (i) such individual or other [person](/usc/12/5481.md?p=19) or (ii) any officer, [director](/usc/12/2279bb.md?p=3), employee, or creditor of, or any [owner](/usc/12/4146.md?p=2) of any interest in, such individual or other [person](/usc/12/5481.md?p=19); and
  - (C) apply to [national banks](/usc/12/221a.md?p=a) or [State](/usc/12/3101.md?p=10)-chartered [banks](/usc/12/221a.md?p=a) doing business in the [State](/usc/12/3101.md?p=10) in which such [branch](/usc/12/3101.md?p=3) or [agency](/usc/12/3101.md?p=1) or [commercial lending company](/usc/12/3101.md?p=9), as the case may be, is doing business.
- (2) No application for a [branch](/usc/12/3101.md?p=3) or [agency](/usc/12/3101.md?p=1) shall be approved by the [Comptroller](/usc/12/3101.md?p=4) or by a State bank supervisory authority, as the case may be, unless the entity making the application has agreed to conduct all of its operations in the United States in full compliance with provisions of any law of the United States or any [State](/usc/12/3101.md?p=10) thereof which—
  - (A) impose requirements that protect the rights of [consumers](/usc/12/5481.md?p=4) in financial transactions, to the extent that the [branch](/usc/12/3101.md?p=3), [agency](/usc/12/3101.md?p=1), or [commercial lending company](/usc/12/3101.md?p=9) engages in activities that are subject to such laws;
  - (B) prohibit discrimination against individuals or other [persons](/usc/12/5481.md?p=19) on the basis of the race, color, religion, sex, marital status, age, or national origin of (i) such individual or other [person](/usc/12/5481.md?p=19) or (ii) any officer, [director](/usc/12/2279bb.md?p=3), employee, or creditor of, or any [owner](/usc/12/4146.md?p=2) of any interest in, such individual or other [person](/usc/12/5481.md?p=19); and
  - (C) apply to [national banks](/usc/12/221a.md?p=a) or [State](/usc/12/3101.md?p=10)-chartered [banks](/usc/12/221a.md?p=a) doing business in the [State](/usc/12/3101.md?p=10) in which the entity to be established is to do business.

# §3107. Representative offices

- (a) **Prior approval to establish representative offices—**
  - (1) **In general—** No [foreign bank](/usc/12/3101.md?p=7) may establish a [representative office](/usc/12/3101.md?p=15) without the prior approval of the [Board](/usc/12/3101.md?p=2).
  - (2) **Standards for approval—** In acting on any application under this paragraph to establish a [representative office](/usc/12/3101.md?p=15), the [Board](/usc/12/3101.md?p=2) shall take into account the standards contained in [section 3105(d)(2) of this title](/usc/12/3105.md?p=d-2) and may impose any additional requirements that the [Board](/usc/12/3101.md?p=2) determines to be necessary to carry out the purposes of this chapter.
- (b) **Termination of representative offices—** The [Board](/usc/12/3101.md?p=2) may order the termination of the activities of a [representative office](/usc/12/3101.md?p=15) of a [foreign bank](/usc/12/3101.md?p=7) on the basis of the standards, procedures, and requirements applicable under [section 3105(e) of this title](/usc/12/3105.md?p=e) with respect to [branches](/usc/12/3101.md?p=3) and [agencies](/usc/12/3101.md?p=1).
- (c) **Examinations—** The [Board](/usc/12/3101.md?p=2) may make examinations of each [representative office](/usc/12/3101.md?p=15) of a [foreign bank](/usc/12/3101.md?p=7), the cost of which shall be assessed against and paid by such [foreign bank](/usc/12/3101.md?p=7). The [Board](/usc/12/3101.md?p=2) may also make examinations of any [affiliate](/usc/12/3101.md?p=13) of a [foreign bank](/usc/12/3101.md?p=7) conducting business in any [State](/usc/12/3101.md?p=10) if the [Board](/usc/12/3101.md?p=2) deems it necessary to determine and enforce compliance with this chapter, the Bank Holding Company Act of 1956 [[12 U.S.C. 1841](/usc/12/1841.md) et seq.], or other applicable Federal banking law.
- (d) **Compliance with State law—** This chapter does not authorize the establishment of a [representative office](/usc/12/3101.md?p=15) in any [State](/usc/12/3101.md?p=10) in contravention of [State](/usc/12/3101.md?p=10) law.

# §3108. Regulation and enforcement

- (a) **Rules, regulations and orders—** The [Comptroller](/usc/12/3101.md?p=4), the [Board](/usc/12/3101.md?p=2), and the Federal [Deposit](/usc/12/5301.md?p=18-A) Insurance [Corporation](/usc/12/2277a.md?p=2), are authorized and empowered to issue such rules, regulations, and orders as each of them may deem necessary in order to perform their respective duties and functions under this chapter and to administer and carry out the provisions and purposes of this chapter and prevent evasions thereof.
- (b) **Enforcement—**
  - (1) **In general—** In addition to any powers, remedies, or sanctions otherwise provided by law, compliance with the requirements imposed under this chapter or any amendment made by this chapter may be enforced under section 8 of the Federal [Deposit](/usc/12/5301.md?p=18-A) Insurance Act [[12 U.S.C. 1818](/usc/12/1818.md)] by any [appropriate Federal banking agency](/usc/12/24a.md?p=g-2) as defined in that Act [[12 U.S.C. 1811](/usc/12/1811.md) et seq.].
  - (2) **Authority to administer oaths; subpoena power—** In the course of, or in connection with, an application, examination, investigation, or other proceeding under this chapter, the [Board](/usc/12/3101.md?p=2), the [Comptroller](/usc/12/3101.md?p=4) of the Currency, and the Federal [Deposit](/usc/12/5301.md?p=18-A) Insurance [Corporation](/usc/12/2277a.md?p=2), as the case may be, any [member](/usc/12/1426a.md?p=g-1) of the [Board](/usc/12/3101.md?p=2) or of the [Board](/usc/12/3101.md?p=2) of [Directors](/usc/12/2279bb.md?p=3) of the [Corporation](/usc/12/2277a.md?p=2), and any designated representative of the [Board](/usc/12/3101.md?p=2), [Comptroller](/usc/12/3101.md?p=4), or [Corporation](/usc/12/2277a.md?p=2) ([including](/usc/12/25b.md?p=a-3) [any person](/usc/12/1715z–4a.md?p=a-2) designated to conduct any hearing under this chapter) may—
    - (A) administer oaths and affirmations and take or cause to be taken depositions; and
    - (B) issue, revoke, quash, or modify any subpoena, [including](/usc/12/25b.md?p=a-3) any subpoena requiring the attendance and testimony of a witness or any subpoenas duces tecum.
  - (3) **Administrative aspects of subpoenas—**
    - (A) **Attendance and production at designated site—** The attendance of any witness and the production of any document pursuant to a subpoena under [paragraph (2)](#b-2) may be required at the place designated in the subpoena from any place in any [State](/usc/12/3101.md?p=10) (as defined in section 3(a)(3) of the Federal [Deposit](/usc/12/5301.md?p=18-A) Insurance Act [[12 U.S.C. 1813(a)(3)](/usc/12/1813.md?p=a-3)]) or other place subject to the jurisdiction of the United States.
    - (B) **Service of subpoena—** Service of a subpoena issued under this subsection may be made by registered mail, or in such other manner reasonably calculated to give actual notice as the [Board](/usc/12/3101.md?p=2), [Comptroller](/usc/12/3101.md?p=4) of the Currency, or Federal [Deposit](/usc/12/5301.md?p=18-A) Insurance [Corporation](/usc/12/2277a.md?p=2) may by regulation or otherwise provide.
    - (C) **Fees and travel expenses—** Witnesses subpoenaed under this subsection shall be paid the same fees and mileage that are paid witnesses in the [district](/usc/12/221a.md?p=a) courts of the United States.
  - (4) **Contumacy or refusal—**
    - (A) **In general—** In the case of contumacy of [any person](/usc/12/1715z–4a.md?p=a-2) issued a subpoena under this subsection or a refusal by such [person](/usc/12/5481.md?p=19) to comply with such subpoena, the [Board](/usc/12/3101.md?p=2), [Comptroller](/usc/12/3101.md?p=4) of the Currency, or Federal [Deposit](/usc/12/5301.md?p=18-A) Insurance [Corporation](/usc/12/2277a.md?p=2), or any other party to proceedings in connection with which subpoena was issued may invoke the aid of—
      - (i) the United States [District](/usc/12/221a.md?p=a) Court for the District of Columbia, or
      - (ii) any [district](/usc/12/221a.md?p=a) court of the United States within the jurisdiction of which the proceeding is being conducted or the witness resides or carries on business.
    - (B) **Court order—** Any court referred to in [subparagraph (A)](#b-4-A) may issue an order requiring compliance with a subpoena issued under this subsection.
  - (5) **Expenses and fees—** Any court having jurisdiction of any proceeding instituted under this subsection may allow any party to such proceeding such reasonable expenses and attorneys’ fees as the court deems just and proper.
  - (6) **Criminal penalty—** [Any person](/usc/12/1715z–4a.md?p=a-2) who willfully fails or refuses to attend and testify or to answer any lawful inquiry or to produce books, papers, correspondence, memoranda, contracts, agreements, or other records in accordance with any subpoena under this subsection shall be fined under [title 18](/usc/18.md), imprisoned not more than 1 year, or both. Each day during which any such failure or refusal continues shall be treated as a separate offense.
- (c) **Powers of Federal Reserve Board and Federal Deposit Insurance Corporation—** In the case of any provision of the Federal Reserve Act [[12 U.S.C. 221](/usc/12/221.md) et seq.] to which a [foreign bank](/usc/12/3101.md?p=7) or [branch](/usc/12/3101.md?p=3) thereof is subject under this chapter, and which is made applicable to nonmember [insured banks](/usc/12/24a.md?p=g-2) by the Federal [Deposit](/usc/12/5301.md?p=18-A) Insurance Act [[12 U.S.C. 1811](/usc/12/1811.md) et seq.], whether by cross-reference to the Federal Reserve Act or by a provision in substantially the same terms in the Federal [Deposit](/usc/12/5301.md?p=18-A) Insurance Act, the administration, interpretation, and enforcement of such provision, insofar as it relates to any [foreign bank](/usc/12/3101.md?p=7) or [branch](/usc/12/3101.md?p=3) thereof as to which the [Board](/usc/12/3101.md?p=2) is an [appropriate Federal banking agency](/usc/12/24a.md?p=g-2), are vested in the [Board](/usc/12/3101.md?p=2), but where the making of any report to the [Board](/usc/12/3101.md?p=2) or a Federal [Reserve bank](/usc/12/221a.md?p=a) is required under any such provision, the Federal [Deposit](/usc/12/5301.md?p=18-A) Insurance [Corporation](/usc/12/2277a.md?p=2) may require that a duplicate of any such report be sent directly to it. This subsection shall not be construed to impair any power of the Federal [Deposit](/usc/12/5301.md?p=18-A) Insurance [Corporation](/usc/12/2277a.md?p=2) to make regular or special examinations or to require special reports.

# §3109. Cooperation with foreign supervisors

- (a) **Disclosure of supervisory information to foreign supervisors—** Notwithstanding any other provision of law, the [Board](/usc/12/3101.md?p=2), [Comptroller](/usc/12/3101.md?p=4) of the Currency, Federal [Deposit](/usc/12/5301.md?p=18-A) Insurance [Corporation](/usc/12/2277a.md?p=2), and [Director](/usc/12/2279bb.md?p=3) of the [Office](/usc/12/3101.md?p=16) of Thrift Supervision may disclose information obtained in the course of exercising supervisory or examination authority to any [foreign bank](/usc/12/3101.md?p=7) regulatory or supervisory authority if the [Board](/usc/12/3101.md?p=2), [Comptroller](/usc/12/3101.md?p=4), [Corporation](/usc/12/2277a.md?p=2), or [Director](/usc/12/2279bb.md?p=3) determines that such disclosure is appropriate and will not prejudice the interests of the United States.
- (b) **Requirement of confidentiality—** Before making any disclosure of any information to a foreign authority, the [Board](/usc/12/3101.md?p=2), [Comptroller](/usc/12/3101.md?p=4) of the Currency, Federal [Deposit](/usc/12/5301.md?p=18-A) Insurance [Corporation](/usc/12/2277a.md?p=2), and [Director](/usc/12/2279bb.md?p=3) of the [Office](/usc/12/3101.md?p=16) of Thrift Supervision shall obtain, to the extent necessary, the agreement of such foreign authority to maintain the confidentiality of such information to the extent possible under applicable law.
- (c) **Confidential information received from foreign supervisors—**
  - (1) **In general—** Except as provided in [paragraph (3)](#c-3), a [Federal banking agency](#c-4) may not be compelled to disclose information received from a foreign regulatory or supervisory authority if—
    - (A) the [Federal banking agency](#c-4) determines that the foreign regulatory or supervisory authority has, in good faith, determined and represented in writing to such [Federal banking agency](#c-4) that public disclosure of the information would violate the laws applicable to that foreign regulatory or supervisory authority; and
    - (B) the relevant [Federal banking agency](#c-4) obtained such information pursuant to—
      - (i) such procedures as the [Federal banking agency](#c-4) may establish for use in connection with the administration and enforcement of Federal banking laws; or
      - (ii) a memorandum of understanding or other similar arrangement between the [Federal banking agency](#c-4) and the foreign regulatory or supervisory authority.
  - (2) **Treatment under title 5—** For purposes of [section 552 of title 5](/usc/5/552.md), this subsection shall be treated as a statute described in [subsection (b)(3)(B)](/usc/5/552.md?p=b-3-B) of such section.
  - (3) **Savings provision—** No provision of this section shall be construed as—
    - (A) authorizing any [Federal banking agency](#c-4) to withhold any information from any duly authorized committee of the House of Representatives or the Senate; or
    - (B) preventing any [Federal banking agency](#c-4) from complying with an order of a court of the United States in an action commenced by the United States or such [agency](/usc/12/3101.md?p=1).
  - (4) **Federal banking agency defined—** For purposes of this subsection, the term “Federal banking agency” means the [Board](/usc/12/3101.md?p=2), the [Comptroller](/usc/12/3101.md?p=4) of the Currency, the Federal [Deposit](/usc/12/5301.md?p=18-A) Insurance [Corporation](/usc/12/2277a.md?p=2), and the [Director](/usc/12/2279bb.md?p=3) of the [Office](/usc/12/3101.md?p=16) of Thrift Supervision.

# §3110. Penalties

- (a) **Civil money penalty—**
  - (1) **In general—** Any [foreign bank](/usc/12/3101.md?p=7), and any [office](/usc/12/3101.md?p=16) or [subsidiary](/usc/12/3101.md?p=13) of a [foreign bank](/usc/12/3101.md?p=7), that [violates](#a-5), and any individual who [participates](/usc/12/2206a.md?p=a-1) in a violation of, any provision of this chapter, or any regulation prescribed or order issued under this chapter, shall forfeit and pay a civil penalty of not more than $25,000 for each day during which such violation continues.
  - (2) **Assessment procedures—** Any penalty imposed under [paragraph (1)](#a-1) may be assessed and collected by the [Board](/usc/12/3101.md?p=2) or the [Comptroller](/usc/12/3101.md?p=4) of the Currency in the manner provided in subparagraphs (E), (F), (G), (H), and (I) of [section 1818(i)(2) of this title](/usc/12/1818.md?p=i-2) for penalties imposed (under such section), and any such assessments shall be subject to the provisions of such section.
  - (3) **Hearing procedure—** [Section 1818(h) of this title](/usc/12/1818.md?p=h) shall apply to any proceeding under this section.
  - (4) **Disbursement—** All penalties collected under authority of this section shall be deposited into the Treasury.
  - (5) **“Violate” defined—** For purposes of this section, the term “violate” [includes](/usc/12/25b.md?p=a-3) taking any action (alone or with others) for or toward causing, bringing about, participating in, counseling, or aiding or abetting a violation.
  - (6) **Regulations—** The [Board](/usc/12/3101.md?p=2) and the [Comptroller](/usc/12/3101.md?p=4) of the Currency shall each prescribe regulations establishing such procedures as may be necessary to carry out this section.
- (b) **Notice under this section after separation from service—** The resignation, termination of employment or [participation](/usc/12/2206a.md?p=a-1), or separation of an institution-affiliated party (within the meaning of [section 1813(u) of this title](/usc/12/1813.md?p=u)) with respect to a [foreign bank](/usc/12/3101.md?p=7), or any [office](/usc/12/3101.md?p=16) or [subsidiary](/usc/12/3101.md?p=13) of a [foreign bank](/usc/12/3101.md?p=7) ([including](/usc/12/25b.md?p=a-3) a separation caused by the termination of a location in the United States), shall not affect the jurisdiction or authority of the [Board](/usc/12/3101.md?p=2) or the [Comptroller](/usc/12/3101.md?p=4) of the Currency to issue any notice or to proceed under this section against any such party, if such notice is served before the end of the 6-year period beginning on the date such party ceased to be an institution-affiliated party with respect to such [foreign bank](/usc/12/3101.md?p=7) or such [office](/usc/12/3101.md?p=16) or [subsidiary](/usc/12/3101.md?p=13) of a [foreign bank](/usc/12/3101.md?p=7) (whether such date occurs on, before, or after December 19, 1991).
- (c) **Penalty for failure to make reports—**
  - (1) **First tier—** Any [foreign bank](/usc/12/3101.md?p=7), or any [office](/usc/12/3101.md?p=16) or [subsidiary](/usc/12/3101.md?p=13) of a [foreign bank](/usc/12/3101.md?p=7), that—
    - (A) maintains procedures reasonably adapted to avoid any inadvertent error and, unintentionally and as a result of such error—
      - (i) fails to make, submit, or publish such reports or information as may be required under this chapter or under regulations prescribed by the [Board](/usc/12/3101.md?p=2) or the [Comptroller](/usc/12/3101.md?p=4) of the Currency under this chapter, within the period of time specified by the [agency](/usc/12/3101.md?p=1); or
      - (ii) submits or publishes any false or misleading report or information; or
    - (B) inadvertently transmits or publishes any report that is minimally late,

    shall be subject to a penalty of not more than $2,000 for each day during which such failure continues or such false or misleading information is not corrected. The [foreign bank](/usc/12/3101.md?p=7), or the [office](/usc/12/3101.md?p=16) or [subsidiary](/usc/12/3101.md?p=13) of a [foreign bank](/usc/12/3101.md?p=7), shall have the burden of proving that an error was inadvertent and that a report was inadvertently transmitted or published late.

  - (2) **Second tier—** Any [foreign bank](/usc/12/3101.md?p=7), or any [office](/usc/12/3101.md?p=16) or [subsidiary](/usc/12/3101.md?p=13) of a [foreign bank](/usc/12/3101.md?p=7), that—
    - (A) fails to make, submit, or publish such reports or information as may be required under this chapter or under regulations prescribed by the [Board](/usc/12/3101.md?p=2) or the [Comptroller](/usc/12/3101.md?p=4) of the Currency pursuant to this chapter, within the time period specified by such [agency](/usc/12/3101.md?p=1); or
    - (B) submits or publishes any false or misleading report or information,

    in a manner not described in [paragraph (1)](#c-1) shall be subject to a penalty of not more than $20,000 for each day during which such failure continues or such false or misleading information is not corrected.

  - (3) **Third tier—** Notwithstanding [paragraph (2)](#c-2), if any [company](/usc/12/3101.md?p=13) knowingly or with reckless disregard for the accuracy of any information or report described in [paragraph (2)](#c-2) submits or publishes any false or misleading report or information, the [Board](/usc/12/3101.md?p=2) or the [Comptroller](/usc/12/3101.md?p=4) of the Currency may, in the [Board](/usc/12/3101.md?p=2)’s or [Comptroller](/usc/12/3101.md?p=4)’s discretion, assess a penalty of not more than $1,000,000 or 1 percent of total assets of such [foreign bank](/usc/12/3101.md?p=7), or such [office](/usc/12/3101.md?p=16) or [subsidiary](/usc/12/3101.md?p=13) of a [foreign bank](/usc/12/3101.md?p=7), whichever is less, per day for each day during which such failure continues or such false or misleading information is not corrected.
  - (4) **Assessment of penalties—** Any penalty imposed under paragraph [(1)](#c-1), [(2)](#c-2), or [(3)](#c-3) shall be assessed and collected by the [Board](/usc/12/3101.md?p=2) or the [Comptroller](/usc/12/3101.md?p=4) of the Currency in the manner provided in [subsection (a)(2)](#a-2) (for penalties imposed under such subsection) and any such assessment ([including](/usc/12/25b.md?p=a-3) the determination of the amount of the penalty) shall be subject to the provisions of such subsection.
  - (5) **Hearing procedure—** [Section 1818(h) of this title](/usc/12/1818.md?p=h) shall apply to any proceeding under this subsection.

# §3111. Criminal penalty


Whoever, with the intent to deceive, to gain financially, or to cause financial gain or loss to [any person](/usc/12/1715z–4a.md?p=a-2), knowingly violates any provision of this chapter or any regulation or order issued by the [appropriate Federal banking agency](/usc/12/24a.md?p=g-2) under this chapter shall be imprisoned not more than 5 years or fined not more than $1,000,000 for each day during which a violation continues, or both.