Laws: Cases and Codes : U.S. Code : Title 12 : Section 3104


   
U.S. Code as of: 01/19/04
Section 3104. Insurance of deposits

    (a) Objective
      In implementing this section, the Comptroller and the Federal
    Deposit Insurance Corporation 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 $100,000
      No foreign bank may establish or operate a Federal branch which
    receives deposits of less than $100,000 unless the branch is an
    insured branch as defined in section 3(s) of the Federal Deposit
    Insurance Act [12 U.S.C. 1813(s)], or unless the Comptroller
    determines by order or regulation that the branch is not engaged in
    domestic retail deposit activities requiring deposit insurance
    protection, taking account of the size and nature of depositors and
    deposit accounts.
    (c) Deposits required to be insured under State law
      (1) After September 17, 1978, no foreign bank may establish a
    branch, and after one year following such date no foreign bank may
    operate a branch, in any State in which the deposits of a bank
    organized and existing under the laws of that State would be
    required to be insured, unless the branch is an insured branch as
    defined in section 3(s) of the Federal Deposit Insurance Act [12
    U.S.C. 1813(s)], or unless the branch will not thereafter accept
    deposits of less than $100,000, or unless the Federal Deposit
    Insurance Corporation determines by order or regulation that the
    branch is not engaged in domestic retail deposit activities
    requiring deposit insurance protection, taking account of the size
    and nature of depositors and deposit accounts.
      (2) Notwithstanding the previous paragraph, a branch of a foreign
    bank in operation on September 17, 1978, which has applied for
    Federal deposit insurance pursuant to section 5 of the Federal
    Deposit Insurance Act [12 U.S.C. 1815] by September 17, 1979, and
    has not had such application denied, may continue to accept
    domestic retail deposits 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 Insurance
      Act [12 U.S.C. 1811 et seq.], in order to accept or maintain
      domestic retail deposit accounts having balances of less than
      $100,000, and requiring deposit insurance protection, a foreign
      bank shall - 
          (A) establish 1 or more banking subsidies in the United
        States for that purpose; and
          (B) obtain Federal deposit insurance for any such subsidiary
        in accordance with the Federal Deposit Insurance Act.
      (2) Exception
        Domestic retail deposit accounts with balances of less than
      $100,000 that require deposit insurance protection may be
      accepted or maintained in a branch of a foreign bank only if such
      branch was an insured branch 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 organized under the laws of any territory of
      the United States, Puerto Rico, Guam, American Samoa, or the
      Virgin Islands the deposits of which are insured by the Federal
      Deposit Insurance Corporation pursuant to the Federal Deposit
      Insurance Act [12 U.S.C. 1811 et seq.].



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