STATE “OPT-IN” ELECTION TO PERMIT INTERSTATE BRANCHING THROUGH DE NOVO BRANCHES.

SEC. 103. STATE “OPT-IN” ELECTION TO PERMIT INTERSTATE BRANCHING THROUGH DE NOVO BRANCHES. (a) National Banks.—Section 5155 of the Revised Statutes (12 U.S.C. 36) is amended by inserting after subsection (0 (as added by section 102(b)) the following new subsection: “(g) State ‘opt-In’ Election to Permit Interstate Branching Through De Novo Branches.— “(1) In general.—Subject to paragraph (2), the Comptroller of the Currency may approve an application by a national bank to establish and operate a de novo branch in a State (other than the bank’s home State) in which the bank does not maintain a branch if— “(A) there is in effect in the host State a law that— “(i) applies equally to all banks; and “(ii) expressly permits all out-of-State banks to establish de novo branches in such State; and “(B) the conditions established in, or made applicable to this paragraph by, paragraph (2) are met. “(2) Conditions on establishment and operation of interstate branch.— “(A) Establishment.—An application by a national bank to establish and operate a de novo branch in a host State shall be subject to the same requirements and conditions to which an application for an interstate merger transaction is subject under paragraphs (1), (3), and (4) of section 44(b) of the Federal Deposit Insurance Act. “(B) Operation.—Subsections (c) and (d)(2) of section 44 of the Federal Deposit Insurance Act shall apply with108 STAT. 2353 respect to each branch of a national bank 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 44 apply to a branch of a national bank which resulted from an interstate merger transaction approved pursuant to such section 44. “(3) Definitions.—The following definitions shall apply for purposes of this section: “(A) De novo branch.—The term ‘de novo branch’ means a branch of a national bank which— “(i) is originally established by the national bank as a branch; and “(ii) does not become a branch of such bank as a result of— “(I) the acquisition by the bank of an insured depository institution or a branch of an insured depository institution; or “(II) the conversion, merger, or consolidation of any such institution or branch. “(B) Home state.—The term ‘home State’ means the State in which the main office of a national bank is located. “(C) Host state.—The term ‘host State’ means, 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.”. (b) State Banks.—Section 18(d) of the Federal Deposit Insurance Act (12 U.S.C. 1828(d)) is amended by inserting after paragraph (3) (as added by section 102(b)(3) of this title) the following new paragraph: “(4) State ‘opt-in’ election to permit interstate branching through de novo branches.— “(A) In general.—Subject to subparagraph (B), the Corporation may approve an application by an insured State nonmember bank to establish and operate a de novo branch in a State (other than the bank’s home State) in which the bank does not maintain a branch if— “(i) there is in effect in the host State a law that— “(I) applies equally to all banks; and “(II) expressly permits all out-Of-State banks to establish de novo branches in such State; and “(ii) the conditions established in, or made applicable to this paragraph by, subparagraph (B) are met. “(B) Conditions on establishment and operation of interstate branch.— “(i) Establishment.—An application by an insured State nonmember bank to establish and operate a de novo branch in a host State shall be subject to the same requirements and conditions to which an application for a merger transaction is subject under paragraphs (1),(3), and (4) of section 44(b). “(ii) Operation.—Subsections (c) and (d)(2) of section 44 shall apply with respect to each branch of an insured State nonmember bank which is established and operated pursuant to an application approved under this paragraph in the same manner and to the108 STAT. 2354 same extent such provisions of such section apply to a branch of a State bank which resulted from a merger transaction under such section 44. “(C) De novo branch defined.—For purposes of this paragraph, the term ‘de novo branch’ means a branch of a State bank which— “(i) is originally established by the State bank as a branch; and “(ii) does not become a branch of such bank as a result of— “(I) the acquisition by the bank of an insured depository institution or a branch of an insured depository institution; or “(II) the conversion, merger, or consolidation of any such institution or branch. “(D) Home state defined.—The term ‘home State’ means the State by which a State bank is chartered. “(E) Host state defined.—The term ‘host State’ means, 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.”.