Laws: Cases and Codes : U.S. Code : Title 12 : Section 1813


   
U.S. Code as of: 01/19/04
Section 1813. Definitions

      As used in this chapter - 
      (a) Definitions of Bank and Related Terms. - 
        (1) Bank. - The term "bank" - 
          (A) means any national bank, State bank, and District bank,
        and any Federal branch and insured branch;
          (B) includes any former savings association that - 
            (i) has converted from a savings association charter; and
            (ii) is a Savings Association Insurance Fund member.

        (2) State bank. - The term "State bank" means any bank, banking
      association, trust company, savings bank, industrial bank (or
      similar depository institution which the Board of Directors finds
      to be operating substantially in the same manner as an industrial
      bank), or other banking institution which - 
          (A) is engaged in the business of receiving deposits, other
        than trust funds (as defined in this section); and
          (B) is incorporated under the laws of any State or which is
        operating under the Code of Law for the District of Columbia
        (except a national bank),

      including any cooperative bank or other unincorporated bank the
      deposits of which were insured by the Corporation on the day
      before August 9, 1989.
        (3) State. - The term "State" means any State of the United
      States, the District of Columbia, any territory of the United
      States, Puerto Rico, Guam, American Samoa, the Trust Territory of
      the Pacific Islands, the Virgin Islands, and the Northern Mariana
      Islands.
        (4) District bank. - The term "District bank" means any State
      bank operating under the Code of Law of the District of Columbia.

      (b) Definition of Savings Associations and Related Terms. - 
        (1) Savings association. - The term "savings association" means
      - 
          (A) any Federal savings association;
          (B) any State savings association; and
          (C) any corporation (other than a bank) that the Board of
        Directors and the Director of the Office of Thrift Supervision
        jointly determine to be operating in substantially the same
        manner as a savings association.

        (2) Federal savings association. - The term "Federal savings
      association" means any Federal savings association or Federal
      savings bank which is chartered under section 1464 of this title.
        (3) State savings association. - The term "State savings
      association" means - 
          (A) any building and loan association, savings and loan
        association, or homestead association; or
          (B) any cooperative bank (other than a cooperative bank which
        is a State bank as defined in subsection (a)(2) of this
        section),

      which is organized and operating according to the laws of the
      State (as defined in subsection (a)(3) of this section) in which
      it is chartered or organized.

      (c) Definitions Relating to Depository Institutions. - 
        (1) Depository institution. - The term "depository institution"
      means any bank or savings association.
        (2) Insured depository institution. - The term "insured
      depository institution" means any bank or savings association the
      deposits of which are insured by the Corporation pursuant to this
      chapter.
        (3) Institutions included for certain purposes. - The term
      "insured depository institution" includes any uninsured branch or
      agency of a foreign bank or a commercial lending company owned or
      controlled by a foreign bank for purposes of section 1818 of this
      title.
        (4) Federal depository institution. - The term "Federal
      depository institution" means any national bank, any Federal
      savings association, and any Federal branch.
        (5) State depository institution. - The term "State depository
      institution" means any State bank, any State savings association,
      and any insured branch which is not a Federal branch.

      (d) Definitions Relating to Member Banks. - 
        (1) National member bank. - The term "national member bank"
      means any national bank which is a member of the Federal Reserve
      System.
        (2) State member bank. - The term "State member bank" means any
      State bank which is a member of the Federal Reserve System.

      (e) Definitions Relating to Nonmember Banks. - 
        (1) National nonmember bank. - The term "national nonmember
      bank" means any national bank which - 
          (A) is located in any territory of the United States, Puerto
        Rico, Guam, American Samoa, the Virgin Islands, or the Northern
        Mariana Islands; and
          (B) is not a member of the Federal Reserve System.

        (2) State nonmember bank. - The term "State nonmember bank"
      means any State bank which is not a member of the Federal Reserve
      System.

      (f) The term "mutual savings bank" means a bank without capital
    stock transacting a savings bank business, the net earnings of
    which inure wholly to the benefit of its depositors after payment
    of obligations for any advances by its organizers.
      (g) Savings Bank. - The term "savings bank" means a bank
    (including a mutual savings bank) which transacts its ordinary
    banking business strictly as a savings bank under State laws
    imposing special requirements on such banks governing the manner of
    investing their funds and of conducting their business.
      (h) The term "insured bank" means any bank (including a foreign
    bank having an insured branch) the deposits of which are insured in
    accordance with the provisions of this chapter; and the term
    "noninsured bank" means any bank the deposits of which are not so
    insured.
      (i) New Bank and Bridge Bank Defined. - 
        (1) New bank. - The term "new bank" means a new national bank,
      other than a bridge bank, organized by the Corporation in
      accordance with section 1821(m) of this title.
        (2) Bridge bank. - The term "bridge bank" means a new national
      bank organized by the Corporation in accordance with section
      1821(n) of this title.

      (j) The term "receiver" includes a receiver, liquidating agent,
    conservator, commission, person, or other agency charged by law
    with the duty of winding up the affairs of a bank or savings
    association or of a branch of a foreign bank.
      (k) The term "Board of Directors" means the Board of Directors of
    the Corporation.
      (l) The term "deposit" means - 
        (1) the unpaid balance of money or its equivalent received or
      held by a bank or savings association in the usual course of
      business and for which it has given or is obligated to give
      credit, either conditionally or unconditionally, to a commercial,
      checking, savings, time, or thrift account, or which is evidenced
      by its certificate of deposit, thrift certificate, investment
      certificate, certificate of indebtedness, or other similar name,
      or a check or draft drawn against a deposit account and certified
      by the bank or savings association, or a letter of credit or a
      traveler's check on which the bank or savings association is
      primarily liable: Provided, That, without limiting the generality
      of the term "money or its equivalent", any such account or
      instrument must be regarded as evidencing the receipt of the
      equivalent of money when credited or issued in exchange for
      checks or drafts or for a promissory note upon which the person
      obtaining any such credit or instrument is primarily or
      secondarily liable, or for a charge against a deposit account, or
      in settlement of checks, drafts, or other instruments forwarded
      to such bank or savings association for collection.
        (2) trust funds as defined in this chapter received or held by
      such bank or savings association, whether held in the trust
      department or held or deposited in any other department of such
      bank or savings association.
        (3) money received or held by a bank or savings association, or
      the credit given for money or its equivalent received or held by
      a bank or savings association, in the usual course of business
      for a special or specific purpose, regardless of the legal
      relationship thereby established, including without being limited
      to, escrow funds, funds held as security for an obligation due to
      the bank or savings association or others (including funds held
      as dealers reserves) or for securities loaned by the bank or
      savings association, funds deposited by a debtor to meet maturing
      obligations, funds deposited as advance payment on subscriptions
      to United States Government securities, funds held for
      distribution or purchase of securities, funds held to meet its
      acceptances or letters of credit, and withheld taxes: Provided,
      That there shall not be included funds which are received by the
      bank or savings association for immediate application to the
      reduction of an indebtedness to the receiving bank or savings
      association, or under condition that the receipt thereof
      immediately reduces or extinguishes such an indebtedness.
        (4) outstanding draft (including advice or authorization to
      charge a bank's or a savings association's balance in another
      bank or savings association), cashier's check, money order, or
      other officer's check issued in the usual course of business for
      any purpose, including without being limited to those issued in
      payment for services, dividends, or purchases, and
        (5) such other obligations of a bank or savings association as
      the Board of Directors, after consultation with the Comptroller
      of the Currency, Director of the Office of Thrift Supervision,
      and the Board of Governors of the Federal Reserve System, shall
      find and prescribe by regulation to be deposit liabilities by
      general usage, except that the following shall not be a deposit
      for any of the purposes of this chapter or be included as part of
      the total deposits or of an insured deposit:
          (A) any obligation of a depository institution which is
        carried on the books and records of an office of such bank or
        savings association located outside of any State, unless - 
            (i) such obligation would be a deposit if it were carried
          on the books and records of the depository institution, and
          would be payable at, an office located in any State; and
            (ii) the contract evidencing the obligation provides by
          express terms, and not by implication, for payment at an
          office of the depository institution located in any State;

          (B) any international banking facility deposit, including an
        international banking facility time deposit, as such term is
        from time to time defined by the Board of Governors of the
        Federal Reserve System in regulation D or any successor
        regulation issued by the Board of Governors of the Federal
        Reserve System; and
          (C) any liability of an insured depository institution that
        arises under an annuity contract, the income of which is tax
        deferred under section 72 of title 26.

      (m) Insured Deposit. - 
        (1) In general. - Subject to paragraph (2), the term "insured
      deposit" means the net amount due to any depositor for deposits
      in an insured depository institution as determined under sections
      1817(i) and 1821(a) of this title.
        (2) In the case of any deposit in a branch of a foreign bank,
      the term "insured deposit" means an insured deposit as defined in
      paragraph (1) of this subsection which - 
          (A) is payable in the United States to - 
            (i) an individual who is a citizen or resident of the
          United States,
            (ii) a partnership, corporation, trust, or other legally
          cognizable entity created under the laws of the United States
          or any State and having its principal place of business
          within the United States or any State, or
            (iii) an individual, partnership, corporation, trust, or
          other legally cognizable entity which is determined by the
          Board of Directors in accordance with its regulations to have
          such business or financial relationships in the United States
          as to make the insurance of such deposit consistent with the
          purposes of this chapter;

        and
          (B) meets any other criteria prescribed by the Board of
        Directors by regulation as necessary or appropriate in its
        judgment to carry out the purposes of this chapter or to
        facilitate the administration thereof.

        (3) Uninsured deposits. - The term "uninsured deposit" means
      the amount of any deposit of any depositor at any insured
      depository institution in excess of the amount of the insured
      deposits of such depositor (if any) at such depository
      institution.
        (4) Preferred deposits. - The term "preferred deposits" means
      deposits of any public unit (as defined in paragraph (1)) at any
      insured depository institution which are secured or
      collateralized as required under State law.

      (n) The term "transferred deposit" means a deposit in a new bank
    or other insured depository institution made available to a
    depositor by the Corporation as payment of the insured deposit of
    such depositor in a closed bank, and assumed by such new bank or
    other insured depository institution.
      (o) The term "domestic branch" includes any branch bank, branch
    office, branch agency, additional office, or any branch place of
    business located in any State of the United States or in any
    Territory of the United States, Puerto Rico, Guam, American Samoa,
    the Trust Territory of the Pacific Islands, or the Virgin Islands
    at which deposits are received or checks paid or money lent. The
    term "domestic branch" does not include an automated teller machine
    or a remote service unit. The term "foreign branch" means any
    office or place of business located outside the United States, its
    territories, Puerto Rico, Guam, American Samoa, the Trust Territory
    of the Pacific Islands, or the Virgin Islands, at which banking
    operations are conducted.
      (p) The term "trust funds" means funds held by an insured
    depository institution in a fiduciary capacity and includes,
    without being limited to, funds held as trustee, executor,
    administrator, guardian, or agent.
      (q) Appropriate Federal Banking Agency. - The term "appropriate
    Federal banking agency" means - 
        (1) the Comptroller of the Currency, in the case of any
      national banking association, any District bank, or any Federal
      branch or agency of a foreign bank;
        (2) the Board of Governors of the Federal Reserve System, in
      the case of - 
          (A) any State member insured bank (except a District bank),
          (B) any branch or agency of a foreign bank with respect to
        any provision of the Federal Reserve Act [12 U.S.C. 221 et
        seq.] which is made applicable under the International Banking
        Act of 1978 [12 U.S.C. 3101 et seq.],
          (C) any foreign bank which does not operate an insured
        branch,
          (D) any agency or commercial lending company other than a
        Federal agency,
          (E) supervisory or regulatory proceedings arising from the
        authority given to the Board of Governors under section 7(c)(1)
        of the International Banking Act of 1978 [12 U.S.C.
        3105(c)(1)], including such proceedings under the Financial
        Institutions Supervisory Act of 1966, and
          (F) any bank holding company and any subsidiary of a bank
        holding company (other than a bank);

        (3) the Federal Deposit Insurance Corporation in the case of a
      State nonmember insured bank (except a District bank), or a
      foreign bank having an insured branch; and
        (4) the Director of the Office of Thrift Supervision in the
      case of any savings association or any savings and loan holding
      company.

    Under the rule set forth in this subsection, more than one agency
    may be an appropriate Federal banking agency with respect to any
    given institution.
      (r) State Bank Supervisor. - 
        (1) In general. - The term "State bank supervisor" means any
      officer, agency, or other entity of any State which has primary
      regulatory authority over State banks or State savings
      associations in such State.
        (2) Interstate application. - The State bank supervisors of
      more than 1 State may be the appropriate State bank supervisor
      for any insured depository institution.

      (s) Definitions Relating to Foreign Banks and Branches. - 
        (1) Foreign bank. - The term "foreign bank" has the meaning
      given to such term by section 1(b)(7) of the International
      Banking Act of 1978 [12 U.S.C. 3101(b)(7)].
        (2) Federal branch. - The term "Federal branch" has the meaning
      given to such term by section 1(b)(6) of the International
      Banking Act of 1978 [12 U.S.C. 3101(b)(6)].
        (3) Insured branch. - The term "insured branch" means any
      branch (as defined in section 1(b)(3) of the International
      Banking Act of 1978 [12 U.S.C. 3101(b)(3)]) of a foreign bank any
      deposits in which are insured pursuant to this chapter.

      (t) Includes, Including. - 
        (1) In general. - The terms "includes" and "including" shall
      not be construed more restrictively than the ordinary usage of
      such terms so as to exclude any other thing not referred to or
      described.
        (2) Rule of construction. - Paragraph (1) shall not be
      construed as creating any inference that the term "includes" or
      "including" in any other provision of Federal law may be deemed
      to exclude any other thing not referred to or described.

      (u) Institution-Affiliated Party. - The term
    "institution-affiliated party" means - 
        (1) any director, officer, employee, or controlling stockholder
      (other than a bank holding company) of, or agent for, an insured
      depository institution;
        (2) any other person who has filed or is required to file a
      change-in-control notice with the appropriate Federal banking
      agency under section 1817(j) of this title;
        (3) any shareholder (other than a bank holding company),
      consultant, joint venture partner, and any other person as
      determined by the appropriate Federal banking agency (by
      regulation or case-by-case) who participates in the conduct of
      the affairs of an insured depository institution; and
        (4) any independent contractor (including any attorney,
      appraiser, or accountant) who knowingly or recklessly
      participates in - 
          (A) any violation of any law or regulation;
          (B) any breach of fiduciary duty; or
          (C) any unsafe or unsound practice,

      which caused or is likely to cause more than a minimal financial
      loss to, or a significant adverse effect on, the insured
      depository institution.

      (v) Violation. - The term "violation" includes any action (alone
    or with another or others) for or toward causing, bringing about,
    participating in, counseling, or aiding or abetting a violation.
      (w) Definitions Relating to Affiliates of Depository
    Institutions. - 
        (1) Depository institution holding company. - The term
      "depository institution holding company" means a bank holding
      company or a savings and loan holding company.
        (2) Bank holding company. - The term "bank holding company" has
      the meaning given to such term in section 1841 of this title.
        (3) Savings and loan holding company. - The term "savings and
      loan holding company" has the meaning given to such term in
      section 1467a of this title.
        (4) Subsidiary. - The term "subsidiary" - 
          (A) means any company which is owned or controlled directly
        or indirectly by another company; and
          (B) includes any service corporation owned in whole or in
        part by an insured depository institution or any subsidiary of
        such a service corporation.

        (5) Control. - The term "control" has the meaning given to such
      term in section 1841 of this title.
        (6) Affiliate. - The term "affiliate" has the meaning given to
      such term in section 1841(k) of this title.
        (7) Company. - The term "company" has the same meaning as in
      section 1841(b) of this title.

      (x) Definitions Relating to Default. - 
        (1) Default. - The term "default" means, with respect to an
      insured depository institution, any adjudication or other
      official determination by any court of competent jurisdiction,
      the appropriate Federal banking agency, or other public authority
      pursuant to which a conservator, receiver, or other legal
      custodian is appointed for an insured depository institution or,
      in the case of a foreign bank having an insured branch, for such
      branch.
        (2) In danger of default. - The term "in danger of default"
      means an insured depository institution with respect to which (or
      in the case of a foreign bank having an insured branch, with
      respect to such insured branch) the appropriate Federal banking
      agency or State chartering authority has advised the Corporation
      (or, if the appropriate Federal banking agency is the
      Corporation, the Corporation has determined) that - 
          (A) in the opinion of such agency or authority - 
            (i) the depository institution or insured branch is not
          likely to be able to meet the demands of the institution's or
          branch's depositors or pay the institution's or branch's
          obligations in the normal course of business; and
            (ii) there is no reasonable prospect that the depository
          institution or insured branch will be able to meet such
          demands or pay such obligations without Federal assistance;
          or

          (B) in the opinion of such agency or authority - 
            (i) the depository institution or insured branch has
          incurred or is likely to incur losses that will deplete all
          or substantially all of its capital; and
            (ii) there is no reasonable prospect that the capital of
          the depository institution or insured branch will be
          replenished without Federal assistance.

      (y) The term "deposit insurance fund" means the Bank Insurance
    Fund or the Savings Association Insurance Fund, as appropriate.
      (z) Federal Banking Agency. - The term "Federal banking agency"
    means the Comptroller of the Currency, the Director of the Office
    of Thrift Supervision, the Board of Governors of the Federal
    Reserve System, or the Federal Deposit Insurance Corporation.



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