INTERSTATE BRANCHES AND AGENCIES OF FOREIGN BANKS.

SEC. 732. INTERSTATE BRANCHES AND AGENCIES OF FOREIGN BANKS. Section 5(a)(7) of the International Banking Act of 1978 (12 U.S.C. 3103(a)(7)) is amended to read as follows: “(7) Additional authority for interstate branches and agencies of foreign banks, upgrades of certain foreign bank agencies and branches.—Notwithstanding paragraphs (1) and (2), a foreign bank may— “(A) with the approval of the Board and the Comptroller of the Currency, establish and operate a Federal branch or Federal agency or, with the approval of the Board and the appropriate State bank supervisor, a State branch or State agency in any State outside the foreign bank’s home State if— “(i) the establishment and operation of such branch or agency is permitted by the State in which the branch or agency is to be established; and “(ii) in the case of a Federal or State branch, the branch receives only such deposits as would be permitted for a corporation organized under section 25A of the Federal Reserve Act; or “(B) with the approval of the Board and the relevant licensing authority (the Comptroller in the case of a Federal branch or the appropriate State supervisor in the case of a State branch), upgrade an agency, or a branch of the type referred to in subparagraph (A)(ii), located in a State outside the foreign bank’s home State, into a Federal or State branch if— “(i) the establishment and operation of such branch is permitted by such State; and “(ii) such agency or branch— “(I) was in operation in such State on the day before September 29, 1994; or “(II) has been in operation in such State for a period of time that meets the State’s minimum age requirement permitted under section 44(a)(5) of the Federal Deposit Insurance Act.”.