§ 3104. — Insurance of deposits.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC3104]
TITLE 12--BANKS AND BANKING
CHAPTER 32--FOREIGN BANK PARTICIPATION IN DOMESTIC MARKETS
Sec. 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.].
(Pub. L. 95-369, Sec. 6, Sept. 17, 1978, 92 Stat. 614; Pub. L. 96-64,
Sept. 14, 1979, 93 Stat. 412; Pub. L. 102-242, title II, Sec. 214(a),
Dec. 19, 1991, 105 Stat. 2303; Pub. L. 102-550, title XVI,
Sec. 1604(a)(10), (11), Oct. 28, 1992, 106 Stat. 4082, 4083; Pub. L.
102-558, title III, Secs. 302(a), 305, Oct. 28, 1992, 106 Stat. 4224,
4226; Pub. L. 103-328, title I, Sec. 107(a), (d), Sept. 29, 1994, 108
Stat. 2358, 2360.)
References in Text
For definition of ``this chapter'', referred to in subsec. (d)(1),
see References in Text note set out under section 3101 of this title.
The Federal Deposit Insurance Act, referred to in subsec. (d)(1),
(3), is act Sept. 21, 1950, ch. 967, Sec. 2, 64 Stat. 873, as amended,
which is classified generally to chapter 16 (Sec. 1811 et seq.) of this
title. For complete classification of this Act to the Code, see Short
Title note set out under section 1811 of this title and Tables.
Amendments
1994--Subsecs. (a) to (d). Pub. L. 103-328, Sec. 107(a), added
subsec. (a) and redesignated former subsecs. (a) to (c) as (b) to (d),
respectively.
Subsec. (d)(3). Pub. L. 103-328, Sec. 107(d), added par. (3).
1992--Subsec. (c). Pub. L. 102-550, Sec. 1604(a)(10), struck out the
subsec. (c) which was in effect before the subsec. (c) added by Pub. L.
102-242, Sec. 214(a)(3), and which amended various other sections of
this title.
Subsec. (c)(1). Pub. L. 102-558, Sec. 302(a)(1), inserted ``domestic
retail'' before ``deposit accounts'' and ``and requiring deposit
insurance protection,'' after ``$100,000,'' in introductory provisions.
Pub. L. 102-550, Sec. 1604(a)(11)(A), which made an identical amendment,
was repealed, effective Oct. 28, 1992, by Pub. L. 102-558, Sec. 305, set
out as a Repeal of Duplicative Provisions note under section 1815 of
this title.
Subsec. (c)(2). Pub. L. 102-558, Sec. 302(a)(2), substituted
``Domestic retail deposit'' for ``Deposit'' and inserted ``that require
deposit insurance protection'' after ``$100,000''. Pub. L. 102-550,
Sec. 1604(a)(11)(B), which made an identical amendment, was repealed,
effective Oct. 28, 1992, by Pub. L. 102-558, Sec. 305, set out as a
Repeal of Duplicative Provisions note under section 1815 of this title.
1991--Subsec. (b). Pub. L. 102-242, Sec. 214(a)(1), (2),
redesignated subsec. (b) as (b)(1) and designated last undesignated par.
as par. (2).
Subsec. (c). Pub. L. 102-242, Sec. 214(a)(3), added subsec. (c).
1979--Subsec. (b). Pub. L. 96-64 inserted second par. which extended
time for foreign banks to obtain required deposit insurance with respect
to domestic existing branches.
Effective Date of 1992 Amendments
Section 302(b) of Pub. L. 102-558 provided that: ``This section, and
the amendments made by this section [amending this section], shall have
the same effective date as the Federal Deposit Insurance Corporation
Improvement Act of 1991 [Pub. L. 102-242].''
Amendment by Pub. L. 102-550 effective as if included in the Federal
Deposit Insurance Corporation Improvement Act of 1991, Pub. L. 102-242,
as of Dec. 19, 1991, see section 1609(a) of Pub. L. 102-550, set out as
a note under section 191 of this title.
Regulations
Section 107(b) of Pub. L. 103-328 provided that:
``(1) In general.--Each Federal banking agency, after consultation
with the other Federal banking agencies to assure uniformity, shall
revise the regulations adopted by such agency under section 6 of the
International Banking Act of 1978 [12 U.S.C. 3104] to ensure that the
regulations are consistent with the objective set forth in section 6(a)
of the International Banking Act of 1978.
``(2) Specific factors.--In carrying out paragraph (1), each Federal
banking agency shall consider whether to permit an uninsured branch of a
foreign bank to accept initial deposits of less than $100,000 only
from--
``(A) individuals who are not citizens or residents of the
United States at the time of the initial deposit;
``(B) individuals who--
``(i) are not citizens of the United States;
``(ii) are residents of the United States; and
``(iii) are employed by a foreign bank, foreign business,
foreign government, or recognized international organization;
``(C) persons to whom the branch or foreign bank has extended
credit or provided other nondeposit banking services;
``(D) foreign businesses and large United States businesses;
``(E) foreign governmental units and recognized international
organizations; and
``(F) persons who are depositing funds in connection with the
issuance of a financial instrument by the branch for the
transmission of funds.
``(3) Reduction in regulatory de minimis exemption.--In carrying out
paragraph (1), each Federal banking agency shall limit any exemption
which is--
``(A) available under any regulation prescribed pursuant to
section 6(d) of the International Banking Act of 1978 [12 U.S.C.
3104(d)] providing for the acceptance of initial deposits of less
than $100,000 by an uninsured branch of a foreign bank; and
``(B) based on a percentage of the average deposits at such
branch;
to not more than 1 percent of the average deposits at such branch.
``(4) Additional relevant considerations.--In carrying out paragraph
(1), each Federal banking agency shall also consider the importance of
maintaining and improving the availability of credit to all sectors of
the United States economy, including the international trade finance
sector of the United State economy.
``(5) Deadline for prescribing revised regulations.--Each Federal
banking agency--
``(A) shall publish final regulations under paragraph (1) in the
Federal Register not later than 12 months after the date of
enactment of this Act [Sept. 29, 1994]; and
``(B) may establish reasonable transition rules to facilitate
any termination of any deposit-taking activities that were
permissible under regulations that were in effect before the date of
enactment of this Act.
``(6) Definitions.--For purposes of this subsection--
``(A) the term `Federal banking agency' means--
``(i) the Comptroller of the Currency with respect to
Federal branches of foreign banks; and
``(ii) the Federal Deposit Insurance Corporation with
respect to State branches of foreign banks; and
``(B) the term `uninsured branch' means a branch of a foreign
bank that is not an insured branch, as defined in section 3(s)(3) of
the Federal Deposit Insurance Act (12 U.S.C. 1813(s)(3)).''
Section Referred to in Other Sections
This section is referred to in sections 1818, 3102 of this title.
