INTERSTATE BANKING.

SEC. 101. INTERSTATE BANKING. (a) In General.—Section 3(d) of the Bank Holding Company Act of 1956 (12 U.S.C. 1842(d)) is amended to read as follows: “(d) Interstate Banking.— “(1) Approvals authorized.— “(A) Acquisition of banks.—The Board may approve an application under this section by a bank holding company that is adequately capitalized and adequately managed to acquire control of, or acquire all or substantially all of the assets of, a bank located in a State other than the home State of such bank holding company, without regard to whether such transaction 1s prohibited under the law of any State. “(B) Preservation of state age laws.— “(i) In general.—Notwithstanding subparagraph (A), the Board may not approve an application pursuant to such subparagraph that would have the effect of permitting an out-of-State bank holding company to acquire a bank in a host State that has not been in existence for the minimum period of time, if any, specified in the statutory law of the host State. “(ii) Special rule for state age laws specifying a period of more than 5 years.—Notwithstanding clause (i), the Board may approve, pursuant to subparagraph (A), the acquisition of a bank that has been in existence for at least 5 years without regard to any longer minimum period of time specified in a statutory law of the host State. “(C) Shell banks.—For purposes of this subsection, a bank that has been chartered solely for the purpose of, and does not open for business prior to, acquiring control of, or acquiring all or substantially all of the assets of, an existing b shall be deemed to have been in existence for the same period of time as the bank to be acquired. “(D) Effect on state contingency laws.—No provision of this subsection shall be construed as affecting the applicability of a State law that makes an acquisition of a bank contingent upon a requirement to hold a portion of such bank’s assets available for call by a State-sponsored housing entity established pursuant to State law, if— “(i) the State law does not have the effect of discriminating against out-of-State banks, out-of-State bank holding companies, or subsidiaries of such banks or bank holding companies; “(ii) that Stat law was in effect as of the date of enactment of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994; “(iii) the Federal Deposit Insurance Corporation has not determined that compliance with such State law would result in an unacceptable risk to the appropriate deposit insurance fund; and “(iv) the appropriate Federal banking agency for such bank has not found that compliance with such108 STAT. 2340 State law would place the bank in an unsafe or unsound condition. “(2) Concentration limits.— “(A) Nationwide concentration limits.—The Board may not approve an application pursuant to paragraph (1)(A) if the applicant (including all insured depository institutions which are affiliates of the applicant) controls, or upon consummation of the acquisition for which such application is filed would control, more than 10 percent of the total amount of deposits of insured depository institutions in the United States. “(B) Statewide concentration limits other than with respect to initial entries.—The Board may not approve an application pursuant to paragraph (1)(A) if— “(i) immediately before the consummation of the acquisition for which such application is filed, the applicant (including any insured depository institution affiliate of the applicant) controls any insured depository institution or any branch of an insured depository institution in the home State of any bank to be acquired or in any host State in which any such bank maintains a branch; and “(ii) the applicant (including all insured depository institutions which are affiliates of the applicant), upon consummation of the acquisition, would control 30 percent or more of the total amount of deposits of insured depository institutions in any such State. “(C) Effectiveness of state deposit caps.—No provision of this subsection shall be construed as affecting the authority of any State to limit, by statute, regulation, or order, the percentage of the total amount of deposits of insured depository institutions in the State which may be held or controlled by any bank or bank holding company (including all insured depository institutions which are affiliates of the bank or bank holding company) to the extent the application of such limitation does not discriminate against out-of-State banks, out-of-State bank holding companies, or subsidiaries of such banks or holding companies. “(D) Exceptions to subparagraph (b).—The Board may approve an application pursuant to paragraph (1)(A) without regard to the applicability of subparagraph (B) with respect to any State if— “(i) there is a limitation described in subparagraph (C) in a State statute, regulation, or order which has the effect of permitting a bank or bank holding company (including all insured depository institutions which are affiliates of the bank or bank holding company) to control a greater percentage of total deposits of all insured depository institutions in the State than the percentage permitted under subparagraph (B); or “(ii) the acquisition is approved by the appropriate State bank supervisor of such State and the standard on which such approval is based does not have the effect of discriminating against out-of-State banks, out-of-State bank holding companies, or subsidiaries of such banks or holding companies. 108 STAT. 2341 “(E) Deposit defined.—For purposes of this paragraph, the term ‘deposit’ has the same meaning as in section 30) of the Federal Deposit Insurance Act. “(3) Community reinvestment compliance.—In determining whether to approve an application under paragraph (1)(A), the Board shall— “(A) comply with the responsibilities of the Board regarding such application under section 804 of the Community Reinvestment Act of 1977; and “(B) take into account the applicant’s record of compliance with applicable State community reinvestment laws. “(4) Applicability of antitrust laws.—No provision of this subsection shall be construed as affecting— “(A) the applicability of the antitrust laws; or “(B) the applicability, if any, of any State law which is similar to the antitrust laws. “(5) Exception for banks in default or in danger of default.—The Board may approve an application pursuant to paragraph (1)(A) which involves— “(A) an acquisition of 1 or more banks in default or in danger of default; or “(B) an acquisition with respect to which assistance is provided under section 13(c) of the Federal Deposit Insurance Act; without regard to subparagraph (B) or (D) of paragraph (1) or paragraph(2) or (3).”. (b) State Taxation Authority Not Affected.—Section 7 of the Bank Holding Company Act of 1956 (12 U.S.C. 1846) is amended— (1) by striking “No provision” and inserting “(a) In General.—No provision”; and (2) by adding at the end the following new subsection: “(b) State Taxation Authority Not Affected.—No provision of this Act shall be construed as affecting the authority of any State or political subdivision of any State to adopt, apply, or administer any tax or method of taxation to any bank, bank holding company, or foreign bank, or any affiliate of any bank, bank holding company, or foreign bank, to the extent that such tax or tax method is otherwise permissible by or under the Constitution of the United States or other Federal law.”. (c) Definitions.—Section 2 of the Bank Holding Company Act of 1956 (12 U.S.C. 1841) is amended by adding at the end the following new subsections: “(n) Incorporated Definitions.—For purposes of this Act, the terms ‘insured depository institution’, ‘appropriate Federal banking agency’, ‘default’, ‘in danger of default’, and ‘State bank supervisor’ have the same meanings as in section 3 of the Federal Deposit Insurance Act. “(o) Other Definitions.—For purposes of this Act, the following definitions shall apply: “(1) Adequately capitalized.—The term ‘adequately capitalized’ means a level of capitalization which meets or exceeds all applicable Federal regulatory capital standards. “(2) Antitrust laws.—Except as provided in section 11, the term ‘antitrust laws’— “(A) has the same meaning as in subsection (a) of the first section of the Clayton Act; and 108 STAT. 2342 “(B) includes section 5 of the Federal Trade Commission Act to the extent that such section 5 relates to unfair methods of competition. “(3) Branch.—The term ‘branch’ means a domestic branch (as defined in section 3 of the Federal Deposit Insurance Act). “(4) Home state.—The term ‘home State’ means— “(A) with respect to a national bank, the State in which the main office of the bank is located; “(B) with respect to a State bank, the State by which the bank is chartered; and “(C) with respect to a bank holding company, the State in which the total deposits of all banking subsidiaries of such company are the largest on the later of— “(i) July 1, 1966; or “(ii) the date on which the company becomes a bank holding company under this Act. “(5) Host state.—The term ‘host State’ means— “(A) with respect to a bank, a State, other than the home State of the bank, in which the bank maintains, or seeks to establish and maintain, a branch; and “(B) with respect to a bank holding company, a State, other than the home State of the company, in which the company controls, or seeks to control, a bank subsidiary. “(6) Out-of-state bank.—The term ‘out-of-State bank’ means, with respect to any State, a bank whose home State is another State. “(7) Out-of-state bank holding company.—The term ‘out-of-State bank holding company’ means, with respect to any State, a bank holding company whose home State is another State.”. (d) Subsidiary Depository Institutions as Agents.—Section 18 of the Federal Deposit Insurance Act (12 U.S.C. 1828) is amended by adding at the end the following new subsection: “(r) Subsidiary Depository Institutions as Agents for Certain Affiliates.— “(1) In general.—Any bank subsidiary of a bank holding company may receive deposits, renew time deposits, close loans, service loans, and receive payments on loans and other obligations as an agent for a depository institution affiliate. “(2) Bank acting as agent is not a branch.—Notwithstanding any other provision of law, a bank acting as an agent in accordance with paragraph (1) for a depository institution affiliate shall not be considered to be a branch of the affiliate. “(3) Prohibitions on activities.—A depository institution may not— “(A) conduct any activity as an agent under paragraph (1) or (6) which such institution is prohibited from conducting as a principal under any applicable Federal or State law; or “(B) as a principal, have an agent conduct any activity under paragraph (1) or (6) which the institution is prohibited from conducting under any applicable Federal or State law. “(4) Existing authority not affected.—No provision of this subsection shall be construed as affecting— 108 STAT. 2343 “(A) the authority of any depository institution to act as an agent on behalf of any other depository institution under any other provision of law; or “(B) whether a depository institution which conducts any activity as an agent on behalf of any other depository institution under any other provision of law shall be considered to be a branch of such other institution. “(5) Agency relationship required to be consistent with safe and sound banking practices.—An agency relationship between depository institutions under paragraph (1) or (6) shall be on terms that are consistent with safe and sound banking practices and all applicable regulations of any appropriate Federal banking agency. “(6) Affiliated insured savings associations.—An insured savings association which was an affiliate of a bank on July 1, 1994, may conduct activities as an agent on behalf of such bank in the same manner as an insured bank affiliate of such bank may act as agent for such bank under this subsection to the extent such activities are conducted only in— “(A) any State in which— “(i) the bank is not prohibited from operating a branch under any provision of Federal or State law; and “(ii) the savings association maintained an office or branch and conducted business as of July 1, 1994; or “(B) any State in which— “(i) the bank is not expressly prohibited from operating a branch under a State law described in section 44(a)(2); and “(ii) the savings association maintained a main office and conducted business as of July 1, 1994.”. (e) Effective Date.—The amendments made by this section shall take effect at the end of the I-year period beginning on the date of the enactment of this Act.