[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 371 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                 S. 371

            To provide for interstate banking and branching.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

             February 16 (legislative day, January 5), 1993

   Mr. Dodd (for himself, Mr. D'Amato, and Mr. Kerry) introduced the 
 following bill; which was read twice and referred to the Committee on 
                   Banking, Housing and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
            To provide for interstate banking and branching.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Interstate Banking and Branching Act 
of 1993''.

SEC. 2. INTERSTATE BANKING.

    (a) In General.--Section 3(d) of the Bank Holding Company Act of 
1956 (12 U.S.C. 1842(d)) is amended--
            (1) by striking ``(d) Notwithstanding any other provision 
        of this section, no'' and inserting the following:
    ``(d) State Boundaries.--
            ``(1) In General.--Except as provided in paragraph (2), 
        no''; and
            (2) by adding at the end the following:
            ``(2) Approvals authorized.--
                    ``(A) Acquisition of existing banks.--Beginning 1 
                year after the date of enactment of the Interstate 
                Banking and Branching Act of 1993, the Board may 
                approve an application under this section which will 
                permit a bank holding company that is adequately 
                capitalized and adequately managed, or a subsidiary 
                thereof, to acquire, directly or indirectly, any voting 
                shares of, interest in, or all or substantially all of 
                the assets of a bank located outside the State in which 
                the operations of such bank holding company's banking 
                subsidiaries were principally conducted on July 1, 
                1966, or the date on which such company became a bank 
                holding company, whichever is later.
                    ``(B) Establishment of new banks.--Beginning 2 
                years after the date of enactment of the Interstate 
                Banking and Branching Act of 1993, the Board may 
                approve an application under this section which will 
                permit a bank holding company that is adequately 
                capitalized and adequately managed, or a subsidiary 
                thereof, to charter and acquire any voting shares of, 
                interest in, or all or substantially all of the assets 
                of any new bank to be located outside the State in 
                which the operations of such bank holding company's 
                banking subsidiaries were principally conducted on July 
                1, 1966, or the date on which such company became a 
                bank holding company, whichever is later.
                    ``(C) `New bank' exception.--For purposes of this 
                paragraph, a bank that does not open for business and 
                has been chartered solely for the purpose of acquiring 
                all or substantially all of the assets of an existing 
                bank shall not be deemed to be a new bank.
            ``(3) Concentration limits.--The Board may not approve an 
        application under paragraph (2)(A) if--
                    ``(A) the applicant controls, or upon completion of 
                the acquisition would control, more than 10 percent of 
                the insured depository institution assets of the United 
                States, as determined under regulations of the Board; 
                or
                    ``(B) the applicant controls, or upon completion of 
                the acquisition would control, 30 percent or more of 
                the insured depository institution deposits in the 
                State in which the bank to be acquired is located, as 
                determined under regulations of the Board, except that 
                such a State may waive the applicability of this 
                subparagraph.
        Nothing in this paragraph affects the applicability of Federal 
        antitrust laws or of State antitrust laws that do not 
        discriminate against out-of-State bank holding companies.
            ``(4) Definitions.--For purposes of this subsection--
                    ``(A) the term `adequately capitalized' has the 
                same meaning as in section 38(b) of the Federal Deposit 
                Insurance Act; and
                    ``(B) the term `insured depository institution' has 
                the same meaning as in section 3 of that Act.''.
    (b) Conversion of Banks to Branches.--Section 3 of the Bank Holding 
Company Act of 1956 (12 U.S.C. 1842) is amended by adding at the end 
the following new subsection:
    ``(h) Interstate Combination.--
            ``(1) In general.--Beginning 18 months after the date of 
        enactment of the Interstate Banking and Branching Act of 1993, 
        a bank holding company having subsidiary banks located in more 
        than 1 State may combine 2 or more of such banks into a single 
        bank by means of merger, consolidation, or other transaction, 
        except that a bank may not be so combined or remain so combined 
        if it is located in a State that has elected to prohibit out-
        of-State banks from establishing and acquiring branches in that 
        State. Notwithstanding the exception in the preceding sentence, 
        a bank holding company may engage in such a combination on or 
        after the date of enactment of this subsection if the holding 
        company is undercapitalized and the transaction is approved as 
        part of a capital restoration plan described in paragraph 
        (2)(B).
            ``(2) Applicability.--Paragraph (1) applies only in the 
        case of a merger, consolidation, or other transaction that is 
        undertaken--
                    ``(A) by a bank holding company that is adequately 
                capitalized, as defined in section 38 of the Federal 
                Deposit Insurance Act; or
                    ``(B) in connection with a comprehensive capital 
                restoration plan under section 38 of the Federal 
                Deposit Insurance Act that contains at least 1 element 
                in addition to the merger, consolidation, or other 
                transaction described in paragraph (1).
            ``(3) Intrastate branching.--Nothing in paragraph (1) shall 
        be deemed to authorize--
                    ``(A) a national bank to operate branches at 
                locations in a State unless a national bank having 
                offices only in such State could operate its main 
                office or branches at such locations; or
                    ``(B) a State bank to operate branches at locations 
                in a State unless a State bank having branches only in 
                such State could operate its main office or branches at 
                such locations.''.

SEC. 3. INTERSTATE BRANCHING BY NATIONAL BANKS.

    Section 5155 of the Revised Statutes (12 U.S.C. 36) is amended--
            (1) by redesignating subsections (d) through (h) as 
        subsections (e) through (i), respectively; and
            (2) by inserting after subsection (c) the following:
    ``(d) Interstate Branching by National Banks.--
            ``(1) In general.--
                    ``(A) Approvals authorized.--Beginning 3 years 
                after the date of enactment of the Interstate Banking 
                and Branching Act of 1993, the Comptroller of the 
                Currency may approve an application under this section 
                which will permit a national bank that is adequately 
                capitalized and adequately managed to establish or 
                acquire and operate a branch located outside the State 
                in which the main office of such bank is located.
                    ``(B) Conditions.--In determining whether to grant 
                approval under subparagraph (A), the Comptroller of the 
                Currency shall consider the bank's rating under the 
                Community Reinvestment Act of 1977 and the views of the 
                appropriate State bank officials regarding the bank's 
                compliance with applicable State community reinvestment 
                laws.
                    ``(C) Applicable law.--
                            ``(i) In general.--Any branch of a national 
                        bank that is established in accordance with 
                        this subsection shall be subject to the laws of 
                        the host State with respect to intrastate 
                        branching, consumer protection, fair lending, 
                        and community reinvestment as if it were a 
                        branch of a national bank having its main 
                        office in that State. Nothing contained in this 
                        subsection in any way affects, limits, impairs, 
                        or precludes the right of any State or 
                        political subdivision of a State to impose a 
                        nondiscriminatory franchise tax or other 
                        nonproperty tax instead of a franchise tax as 
                        provided by section 3124 of title 31, United 
                        States Code.
                            ``(ii) Filing requirement.--A host State 
                        may require any national bank that has its main 
                        office in another State that wishes to 
                        establish a branch within the host State to 
                        comply with filing requirements that are not 
                        discriminatory in nature and that are similar 
                        in their effect to those that are imposed on a 
                        corporation from another State that is not 
                        engaged in the business of banking and that 
                        seeks to engage in business in the host State. 
                        The host State may preclude any national bank, 
                        the main office of which is located in another 
                        State, from establishing or operating a branch 
                        within the host State if that national bank or 
                        its branch materially fails to comply with the 
                        filing requirements.
            ``(2) State election to prohibit interstate branching.--
                    ``(A) In general.--The provisions of paragraph (1) 
                shall not apply to branches to be located in a State 
                which has enacted, during the period beginning on 
                January 1, 1990, and ending on the expiration of 3 
                years after the date of enactment of the Interstate 
                Banking and Branching Act of 1993, a law that applies 
                equally to national and State banks and that expressly 
                prohibits all out-of-State banks from establishing or 
                acquiring branches located in that State.
                    ``(B) Effect of prohibition.--A national bank that 
                has its main office in a State that has in effect a 
                prohibition described in subparagraph (A) may not 
                acquire or establish a branch located in any other 
                State under the provisions of this subsection.
            ``(3) State election to permit interstate branching.--
                    ``(A) During the three-year period following 
                enactment.--The Comptroller of the Currency may approve 
                an application under paragraph (1)(A) before the 
                expiration of the 3-year period described in paragraph 
                (1)(A), if the State in which the branch will be 
                located enacts a law during that period expressly 
                permitting interstate branching by all out-of-State 
                national and State banks before the expiration of that 
                period. A State that enacts a law described in the 
                preceding sentence--
                            ``(i) may prohibit interstate de novo 
                        branching during the 5-year period beginning on 
                        the date of enactment of the Interstate Banking 
                        and Branching Act of 1993;
                            ``(ii) may require a copy of an application 
                        submitted under this section to be filed with 
                        the host State banking authority in a timely 
                        manner (and the Comptroller of the Currency 
                        shall consider any timely comments of the host 
                        State prior to approving that application); and
                            ``(iii) may impose other conditions on an 
                        incoming branch if--
                                    ``(I) the conditions do not 
                                discriminate against out of State banks 
                                or bank holding companies; and
                                    ``(II) the imposition of the 
                                conditions is not preempted by Federal 
                                law regarding the same subject.
                    ``(B) After the three-year period following 
                enactment.--A State that originally elects, pursuant to 
                paragraph (2), to prohibit interstate branching may 
                nonetheless elect at any later time to permit 
                interstate branching if such State enacts a law 
                expressly permitting interstate branching by all out-
                of-State national and State banks.
            ``(4) Concentration limits.--
                    ``(A) In general.--The Comptroller of the Currency 
                may not approve an acquisition under paragraph (1)(A) 
                by a bank of a branch located in another State if--
                            ``(i) the bank controls, or upon completion 
                        of the acquisition would control, more than 10 
                        percent of the insured depository institution 
                        assets of the United States, as determined 
                        under regulations of the Board of Governors of 
                        the Federal Reserve System; or
                            ``(ii) the bank controls, or upon 
                        completion of the acquisition would control, 30 
                        percent or more of the insured depository 
                        institution deposits in the State in which the 
                        branch to be acquired is located, as determined 
                        under regulations of the Board of Governors of 
                        the Federal Reserve System, except that a State 
                        may waive the applicability of this clause.
                    ``(B) Limitations.--Nothing in subparagraph (A)--
                            ``(i) affects the applicability of Federal 
                        antitrust laws or of State antitrust laws that 
                        do not discriminate against out-of-State banks 
                        or bank holding companies; or
                            ``(ii) applies to the establishment of new 
                        branches located outside the State where the 
                        main office of the bank is located.
            ``(5) Definitions.--For purposes of this subsection--
                    ``(A) the term `adequately capitalized' has the 
                same meaning as in section 38 of the Federal Deposit 
                Insurance Act;
                    ``(B) the term `host State' means the State in 
                which a national bank establishes or maintains a 
                branch, other than the State in which the bank has its 
                main office and is engaging in the business of banking; 
                and
                    ``(C) the term `insured depository institution' has 
                the same meaning as in section 3 of the Federal Deposit 
                Insurance Act.''.

SEC. 4. INTERSTATE BRANCHING BY STATE BANKS.

    Section 18(d) of the Federal Deposit Insurance Act (12 U.S.C. 
1828(d)) is amended by adding at the end the following:
            ``(3) Interstate branching by state banks.--Beginning 3 
        years after the date of enactment of the Interstate Banking and 
        Branching Act of 1993, an insured State bank that is adequately 
        capitalized and adequately managed may establish or acquire and 
        operate a branch located outside the State in which the bank is 
        chartered if such action--
                    ``(A) is authorized by the law of the State in 
                which the bank is chartered; and
                    ``(B) is not prohibited under paragraph (5) or is 
                permitted under paragraph (6), by the host State.
            ``(4) Applicable law.--
                    ``(A) In general.--Any branch of a State-chartered 
                bank, that is established in accordance with this 
                subsection shall be subject to the laws of the host 
                State with respect to intrastate branching, consumer 
                protection, fair lending, and community reinvestment as 
                if it were a branch of a bank chartered under the laws 
                of that State and having offices only in such State. 
                Nothing contained in this subsection in any way 
                affects, limits, impairs, or precludes the right of any 
                State or political subdivision of a State to impose a 
                nondiscriminatory franchise tax or other nonproperty 
                tax instead of a franchise tax as provided by section 
                3124 of title 31, United States Code.
                    ``(B) Activities of branches.--An insured State 
                bank that establishes a branch or branches in 
                accordance with paragraph (3) may not conduct any 
                activity at such branch that is not permissible for a 
                bank chartered by the host State.
                    ``(C) Filing requirement.--A host State may require 
                any bank chartered by another State that wishes to 
                establish a branch within the host State to comply with 
                filing requirements that are not discriminatory in 
                nature and that are similar in their effect to those 
                that are imposed on a corporation from another State 
                that is not engaged in the business of banking and that 
                seeks to engage in business in the host State. The host 
                State may preclude any State bank chartered by another 
                State from establishing or operating a branch within 
                the host State if that State bank or its branch 
                materially fails to comply with the filing 
                requirements.
                    ``(D) Reservation of certain rights to states.--
                Nothing in this subsection limits in any way the right 
                of a State to--
                            ``(i) determine the authority of State 
                        banks chartered in that State to establish and 
                        maintain branches; or
                            ``(ii) supervise, regulate, and examine 
                        State banks chartered by that State.
            ``(5) State election to prohibit interstate branching.--
                    ``(A) In general.--The provisions of paragraph (3) 
                shall not apply to branches to be located in a State 
                which has enacted, during the period beginning on 
                January 1, 1990, and ending on the expiration of 3 
                years after the date of enactment of the Interstate 
                Banking and Branching Act of 1993, a law that applies 
                equally to national and State banks and that expressly 
                prohibits all out-of-State banks from establishing or 
                acquiring branches located in that State.
                    ``(B) Effect of prohibition.--A State bank that is 
                chartered by a State that has in effect a prohibition 
                described in subparagraph (A) may not acquire or 
                establish a branch located in any other State.
            ``(6) State election to permit interstate branching.--
                    ``(A) During the three-year period following 
                enactment.--A State bank may establish or acquire, and 
                operate, a branch outside the State in which the main 
                office of the bank is located, subject to the 
                provisions of this subsection, before the expiration of 
                the 3-year period described in paragraph (3), if the 
                State in which the branch will be located enacts a law 
                during that period expressly permitting interstate 
                branching by all national and State banks before the 
                expiration of that period. A State that enacts such a 
                law--
                            ``(i) may prohibit interstate de novo 
                        branching during the 5-year period beginning on 
                        the date of enactment of the Interstate Banking 
                        and Branching Act of 1993;
                            ``(ii) may require a copy of an application 
                        submitted under this section to be filed with 
                        the host State banking authority in a timely 
                        manner (and the home State banking authority 
                        and the appropriate Federal banking agency 
                        shall consider any timely comments of the host 
                        State prior to approving that application); and
                            ``(iii) may impose other conditions on an 
                        incoming branch if--
                                    ``(I) the conditions do not 
                                discriminate against out of State banks 
                                or bank holding companies; and
                                    ``(II) the imposition of the 
                                conditions is not preempted by Federal 
                                law regarding the same subject.
                    ``(B)  After the three-year period following 
                enactment.--A State that originally elects, pursuant to 
                paragraph (5), to prohibit interstate branching may 
                elect at any later time to permit interstate branching 
                if such State enacts a law expressly permitting 
                interstate branching by all national and State banks.
            ``(7) Concentration limits.--
                    ``(A) In general.--Notwithstanding the provisions 
                of this subsection, a State bank may not acquire an 
                existing branch located in another State if--
                            ``(i) the bank controls, or upon completion 
                        of the acquisition would control, more than 10 
                        percent of the insured depository institution 
                        assets of the United States, as determined 
                        under regulations of the Board of Governors of 
                        the Federal Reserve System; or
                            ``(ii) the bank controls, or upon 
                        completion of the acquisition would control, 30 
                        percent or more of the insured depository 
                        institution deposits in the State in which the 
                        branch to be acquired is located, as determined 
                        under regulations of the Board of Governors of 
                        the Federal Reserve System, except that a State 
                        may waive the applicability of this clause.
                    ``(B) Limitations.--Nothing in subparagraph (A)--
                            ``(i) affects the applicability of Federal 
                        antitrust laws or of State antitrust laws that 
                        do not discriminate against out-of-State bank 
                        holding companies, or
                            ``(ii) applies to the establishment of new 
                        branches located outside the State in which the 
                        main office of the bank is located.
            ``(8) Coordination of examination authority.--
                    ``(A) In general.--A host State bank supervisory or 
                regulatory authority may examine a branch established 
                in the host State by banks chartered by another State 
                for the purpose of determining compliance with host 
                State laws regarding banking, taxation, community 
                reinvestment, fair lending, consumer protection, and 
                permissible activities and to ensure that the 
                activities of the branch are conducted in a manner 
                consistent with sound banking principles and do not 
                constitute a serious risk to the safety and sound 
                operation of the branch.
                    ``(B) Enforcement.--In the event that a host State 
                bank authority as described in subparagraph (A) 
                determines that there is a violation of host State law 
                concerning the activities being conducted by the branch 
                or that the branch is being operated in a manner not 
                consistent with sound banking principles or in an 
                unsafe and unsound manner, such host State bank 
                authority may undertake such enforcement actions or 
                proceedings as would be permitted under host State law 
                if the branch were a bank chartered by the host State.
                    ``(C) Cooperative agreement.--The State bank 
                authorities from 1 or more States may enter into 
                cooperative agreements to facilitate State regulatory 
                supervision of State banks, including cooperative 
                agreements relating to the coordination of examinations 
                and joint participation in examinations.
                    ``(D) Federal regulatory authority.--
                            ``(i) In general.--Nothing in this 
                        subsection limits in any way the authority of 
                        the appropriate Federal banking agency to 
                        examine any bank or branch of a bank for which 
                        the agency is the appropriate Federal banking 
                        agency.
                            ``(ii) Review of interstate agreements.--If 
                        the appropriate Federal banking agency 
                        determines that the States have failed to reach 
                        an agreement under subparagraph (C), or that 
                        such an agreement fails to adequately protect 
                        the Federal Deposit Insurance Fund, the 
                        appropriate Federal banking agency shall not 
                        defer to State examinations of the out-of-State 
                        branches.
            ``(9) Definitions.--For purposes of this subsection--
                    ``(A) the term `host State' means the State in 
                which a bank establishes or maintains a branch other 
                than the State in which the bank is chartered and is 
                engaging in the business of banking; and
                    ``(B) the term `adequately capitalized' has the 
                same meaning as in section 38 of the Federal Deposit 
                Insurance Act.''.

SEC. 5. COMMUNITY REINVESTMENT ACT EVALUATION OF BANKS WITH INTERSTATE 
              BRANCHES.

    (a) In General.--Section 807 of the Community Reinvestment Act of 
1977 (12 U.S.C. 2906) is amended by adding at the end the following new 
subsections:
    ``(d) Institutions With Interstate Branches.--
            ``(1) State-by-state evaluation.--In the case of a 
        regulated financial institution that maintains domestic 
        branches in 2 or more States, the appropriate Federal financial 
        supervisory agency shall prepare--
                    ``(A) a written evaluation of the entire 
                institution's record of performance under this Act, as 
                required by subsections (a), (b), and (c); and
                    ``(B) for each State in which the institution 
                maintains 1 or more domestic branches, a separate 
                written evaluation of the institution's record of 
                performance within such State under this Act, as 
                required by subsections (a), (b), and (c).
            ``(2) Multistate metropolitan areas.--In the case of a 
        regulated financial institution that maintains domestic 
        branches in 2 or more States within a multistate metropolitan 
        area, the appropriate Federal financial supervisory agency may 
        prepare a separate written evaluation of the institution's 
        record of performance within such metropolitan area under this 
        Act, as required by subsections (a), (b), and (c). If the 
        agency prepares a written evaluation pursuant to this 
        paragraph, the scope of the written evaluation required under 
        paragraph (1)(B) shall be adjusted accordingly.
            ``(3) State level evaluation.--A written evaluation 
        prepared pursuant to paragraph (1)(B) shall--
                    ``(A) include the information required by 
                subparagraphs (A) and (B) of subsection (b)(1) 
                separately for each metropolitan area in which the 
                institution maintains 1 or more domestic branch offices 
                and separately for the remainder of the nonmetropolitan 
                area of the State if the institution maintains 1 or 
                more domestic branch offices in such area; and
                    ``(B) describe how the Federal financial 
                supervisory agency has performed the examination of the 
                institution, including a list of the individual 
                branches examined.
            ``(4) Definitions.--For purposes of this section--
                    ``(A) the term `domestic branch' means any branch 
                office or other facility of a regulated financial 
                institution with the ability to accept deposits located 
                in any State;
                    ``(B) the term `metropolitan area' means any 
                primary metropolitan statistical area, metropolitan 
                statistical area, or consolidated metropolitan 
                statistical area, as defined by the Director of the 
                Office of Management and Budget, with a population of 
                250,000 or more, and any other area identified by the 
                appropriate Federal financial supervisory agency; and
                    ``(C) the term `State' has the same meaning as in 
                section 3 of the Federal Deposit Insurance Act.''.
    (b) Separate Presentation.--Section 807(b)(1) of the Community 
Reinvestment Act of 1977 (12 U.S.C. 2906(b)(1)) is amended by adding at 
the end the following sentence: ``A written evaluation shall contain 
the information required by subparagraphs (A) and (B) presented 
separately for each metropolitan area in which an insured depository 
institution maintains 1 or more domestic branch offices.''.

SEC. 6. BRANCHING BY FOREIGN BANKS.

    (a) In General.--Section 5(a) of the International Banking Act of 
1978 (12 U.S.C. 3103(a)) is amended to read as follows:
    ``(a) Interstate Banking Operations.--
            ``(1) In general.--A foreign bank may establish and 
        operate--
                    ``(A) a Federal branch or agency, with the approval 
                of the Board and the Comptroller of the Currency, in 
                any State outside its home State to the extent that 
                such establishment and operation would be permitted 
                under section 5155 of the Revised Statutes for a 
                national bank, as if the foreign bank were a national 
                bank having its main office in the home State of the 
                foreign bank; or
                    ``(B) a State branch or agency, with the approval 
                of the Board and the appropriate regulatory authority 
                of the State, in any State outside its home State to 
                the extent that such establishment and operation would 
                be permitted under section 18(d) of the Federal Deposit 
                Insurance Act for a State bank, as if the foreign bank 
                were a State bank chartered in the home State of the 
                foreign bank.
            ``(2) Criteria for determination.--In approving an 
        application under paragraph (1), the Board and the Comptroller 
        of the Currency--
                    ``(A) shall apply the standards for establishment 
                of a foreign bank office in the United States under 
                section 7; and
                    ``(B) may not approve an application unless it 
                determines that the foreign bank's financial resources, 
                including the capital level, are equivalent to those 
                required for a domestic bank to be approved for 
                branching under section 5155 of the Revised Statutes 
                and section 18(d) of the Federal Deposit Insurance Act 
                and, in the case of the first branching application by 
                such foreign bank, after consultation with the 
                Secretary of the Treasury regarding capital 
                equivalency.''.
    (b) Treatment of United States Banking Subsidiaries.--Section 5 of 
the International Banking Act of 1978 (12 U.S.C. 3103) is amended by 
adding at the end the following:
    ``(d) Treatment of United States Subsidiary of a Foreign Bank.--A 
foreign bank that has a domestic subsidiary within the United States 
may establish Federal and State branches and agencies outside its home 
State to the extent permitted under section 5155(d) of the Revised 
Statutes and section 18(d) of the Federal Deposit Insurance Act.''.
    (c) Home State.--
            (1) Method of determining.--Section 4(h) of the 
        International Banking Act of 1978 (12 U.S.C. 3102(h)) is 
        amended--
                    (A) in paragraph (1)(A), by striking ``in the State 
                in which such branch or agency is located''; and
                    (B) by adding at the end the following:
            ``(3) Home state.--For purposes of section 5155(c) of the 
        Revised Statutes, the home State of a foreign bank shall be its 
        home State as determined under section 5(c).''.
            (2) Single state determinations.--Section 5(c) of the 
        International Banking Act of 1978 (12 U.S.C. 3103(c)) is 
        amended to read as follows:
    ``(c) Determination of Home State of Foreign Bank.--For purposes of 
this section--
            ``(1) the home State of a foreign bank that has branches, 
        agencies, subsidiary commercial lending companies, or 
        subsidiary banks, or any combination thereof, in more than 1 
        State, is the 1 of those States elected by the foreign bank, 
        or, in default of such election, by the Board; and
            ``(2) the home State of a foreign bank that has branches, 
        agencies, subsidiary commercial lending companies, or 
        subsidiary banks, or any combination thereof, in only one 
        State, is that State.''.

SEC. 7. USE OF NAMES IN HOST STATE.

    (a) Bank Holding Company Act of 1956.--Section 3 of the Bank 
Holding Company Act of 1956 (12 U.S.C. 1842), as amended by section 2, 
is amended by adding at the end the following:
    ``(h) Use of Names in Host State.--
            ``(1) In general.--A bank holding company that seeks, 
        directly or indirectly, to acquire or establish a bank in a 
        host State shall provide the Board with the name or names under 
        which the bank will operate in the host State.
            ``(2) Prohibition against same or similar names.--A bank 
        holding company may not operate a bank in a host State if the 
        proposed name of the bank is--
                    ``(A) identical or deceptively similar to a name 
                being used by an existing bank or bank holding company 
                in the host State; or
                    ``(B) is likely to cause the public to be confused, 
                deceived, or mistaken, due to a similarity or identity 
                of names.
            ``(3) Subsequent use of same or similar name.--Upon 
        application by any person or institution that is adversely 
        affected, the Board shall revoke permission of a bank holding 
        company to operate a bank in a host State if the bank holding 
        company uses or changes the name of, or uses an additional name 
        for any of its banks in the host State, and the new or 
        additional name is described in subparagraph (A) or (B) of 
        paragraph (2). The preceding sentence does not preclude any 
        adversely affected person from pursuing any available legal or 
        administrative remedies.
            ``(4) Definition.--For purposes of this subsection, the 
        term `host State' means the State in which a bank holding 
        company establishes or acquires a bank other than the State in 
        which the operations of the bank holding company's banking 
        subsidiaries were principally conducted on July 1, 1996, or the 
        date on which the company became a bank holding company, 
        whichever is later.''.
    (b) National Banks.--Section 5155(d) of the Revised Statutes (12 
U.S.C. 36(d)), as added by section 3, is amended by adding at the end 
the following:
            ``(6) Use of names in host state.--
                    ``(A) In general.--A bank that seeks, directly or 
                indirectly, to acquire or establish a branch in a host 
                State shall provide the Comptroller of the Currency 
                with the name or names under which the branch will 
                operate in the host State.
                    ``(B) Prohibition against same or similar names.--A 
                bank may not operate a branch in a host State if the 
                proposed name of the branch is--
                            ``(i) identical or deceptively similar to a 
                        name being used by an existing bank or bank 
                        holding company in the host State; or
                            ``(ii) is likely to cause the public to be 
                        confused, deceived, or mistaken, due to a 
                        similarity or identity of names.
                    ``(C) Subsequent use of same or similar name.--Upon 
                application by any person or institution that is 
                adversely affected, the Comptroller of the Currency 
                shall revoke permission of a bank to operate a branch 
                in a host State if the bank uses or changes the name 
                of, or uses an additional name for any such branch in 
                the host State, and the new or additional name is 
                described in clause (i) or (ii) of subparagraph (B). 
                The preceding sentence does not preclude any adversely 
                affected person from pursuing any available legal or 
                administrative remedies.
                    ``(D) Definition.--For purposes of this paragraph, 
                the term `host State' means the State in which a bank 
                establishes or acquires a branch other than the State 
                in which the bank has its main office and is engaging 
                in the business of banking.''.
    (c) Federal Deposit Insurance Act.--Section 18(d) of the Federal 
Deposit Insurance Act (12 U.S.C. 1828(d)), as amended by section 4, is 
amended by adding at the end the following:
            ``(10) Use of names in host state.--
                    ``(A) In general.--A bank that seeks, directly or 
                indirectly, to acquire or establish a branch in a host 
                State shall provide the appropriate State regulatory 
                authority with the name or names under which the branch 
                will operate in the host State.
                    ``(B) Prohibition against same or similar names.--A 
                bank may not operate a branch in a host State if the 
                proposed name of the branch is--
                            ``(i) identical or deceptively similar to a 
                        name being used by an existing bank or bank 
                        holding company in the host State; or
                            ``(ii) is likely to cause the public to be 
                        confused, deceived, or mistaken, due to a 
                        similarity or identity of names.
                    ``(C) Subsequent use of same or similar name.--Upon 
                application by any person or institution that is 
                adversely affected, the appropriate State regulatory 
                authority may revoke permission of a bank to operate a 
                branch in a host State if the bank uses or changes the 
                name of, or uses an additional name for any such branch 
                in the host State, and the new or additional name is 
                described in clause (i) or (ii) of subparagraph (B). 
                The preceding sentence does not preclude any adversely 
                affected person from pursuing any available legal or 
                administrative remedies.
                    ``(D) Definition.--For purposes of this paragraph, 
                the term `host State' means the State in which a bank 
                establishes or acquires a branch other than the State 
                in which the bank has its main office and is engaging 
                in the business of banking.''.

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S 371 IS----3