Notes on 12 U.S.C. § 1841 : US Code - Notes

Search Notes on 12 U.S.C. § 1841 : US Code - Notes

(May 9, 1956, ch. 240, Sec. 2, 70 Stat. 133; Pub. L. 89-485, Secs.
1-6, July 1, 1966, 80 Stat. 236, 237; Pub. L. 91-607, title I, Sec.
101, Dec. 31, 1970, 84 Stat. 1760; Pub. L. 95-188, title III, Sec.
301(b), Nov. 16, 1977, 91 Stat. 1389; Pub. L. 95-369, Sec. 8(e),
Sept. 17, 1978, 92 Stat. 623; Pub. L. 97-320, title I, Sec. 118(b),
title III, Sec. 333, title IV, Sec. 404(d)(1), Oct. 15, 1982, 96
Stat. 1479, 1504, 1512; Pub. L. 100-86, title I, Sec. 101(a), (e),
title II, Sec. 205(a), Aug. 10, 1987, 101 Stat. 554, 562, 584; Pub.
L. 101-73, title VI, Sec. 602(a), Aug. 9, 1989, 103 Stat. 409; Pub.
L. 103-328, title I, Sec. 101(c), Sept. 29, 1994, 108 Stat. 2341;
Pub. L. 104-208, div. A, title II, Secs. 2207, 2208(b), 2304(b),
2610, 2704(d)(17), Sept. 30, 1996, 110 Stat. 3009-406, 3009-408,
3009-425, 3009-475, 3009-495; Pub. L. 106-102, title I, Secs.
103(c)(1), 107(c), 119, title VII, Sec. 724, Nov. 12, 1999, 113
Stat. 1351, 1359, 1373, 1471; Pub. L. 108-386, Sec. 8(c)(1), Oct.
30, 2004, 118 Stat. 2231; Pub. L. 109-171, title II, Sec. 2102(b),
Feb. 8, 2006, 120 Stat. 9; Pub. L. 109-173, Sec. 9(h)(1), Feb. 15,
2006, 119 Stat. 3618; Pub. L. 109-351, title VII, Secs. 706,
727(a), Oct. 13, 2006, 120 Stat. 1987, 2003.)
REFERENCES IN TEXT
This chapter, referred to in subsecs. (a)(1), (4), (c), and (g)
to (p), was in the original "this Act", meaning act May 9, 1956,
ch. 240, 70 Stat. 133, as amended, known as the Bank Holding
Company Act of 1956, which enacted this chapter and sections 1101
to 1103 of Title 26, Internal Revenue Code, and enacted provisions
set out as notes under this section. For complete classification of
this Act to the Code, see Short Title note set out below and
Tables.
The Federal Deposit Insurance Act, referred to in subsecs.
(a)(5)(F) and (c)(2)(H)(i), 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.
Enactment of the Bank Holding Company Act Amendments of 1970,
referred to in subsec. (b), means enactment of Pub. L. 91-607, on
Dec. 31, 1970. For classification of Pub. L. 91-607, see Short
Title of 1970 Amendment note below.
Section 25 of the Federal Reserve Act, referred to in subsec.
(c)(2)(G), is classified to subchapter I (Sec. 601 et seq.) of
chapter 6 of this title. Section 25(a) of the Federal Reserve Act,
which is classified to subchapter II (Sec. 611 et seq.) of chapter
6 of this title, was renumbered section 25A of that act by Pub. L.
102-242, title I, Sec. 142(e)(2), Dec. 19, 1991, 105 Stat. 2281.
Sections 1727 and 1730a of this title, referred to in subsec.
(i)(4), were repealed by Pub. L. 101-73, title IV, Sec. 407, Aug.
9, 1989, 103 Stat. 363.
A section 2(h)(2) company, referred to in subsec. (h)(3) to (5),
is defined in subsec. (h)(2) of this section.
AMENDMENTS
2006 - Subsec. (c)(2)(I), (J). Pub. L. 109-351, Sec. 727(a)(1),
struck out subpars. (I) and (J), which related to the Investors
Fiduciary Trust Company, located in Kansas City, Missouri, and
certain savings banks as defined by section 1831(g) of this title,
respectively.
Subsec. (g)(2). Pub. L. 109-351, Sec. 706, inserted before period
at end ", unless the Board determines that such treatment is not
appropriate in light of the facts and circumstances of the case and
the purposes of this chapter".
Subsec. (j)(2). Pub. L. 109-173 substituted "Deposit Insurance
Fund" for "Savings Association Insurance Fund".
Pub. L. 109-171 repealed Pub. L. 104-208, Sec. 2704(d)(17). See
1996 Amendment note below.
Subsec. (m). Pub. L. 109-351, Sec. 727(a)(2), substituted "(m)
[Repealed]" for subsec. (m), which defined "qualified savings
bank".
2004 - Subsec. (c)(3). Pub. L. 108-386 struck out heading and
text of par. (3). Text read as follows: "The term 'District bank'
means any bank operating under the Code of Law for the District of
Columbia".
1999 - Subsec. (a)(5)(E)(i). Pub. L. 106-102, Sec. 724, inserted
"1 or more" before "thrift institutions".
Subsec. (c)(2)(H). Pub. L. 106-102, Sec. 107(c), inserted ", or
that is otherwise permissible for a bank controlled by a company
described in section 1843(f)(1) of this title" before period at end
of concluding provisions.
Subsec. (n). Pub. L. 106-102, Sec. 103(c)(1)(A), inserted "
'depository institution'," after "the terms".
Subsec. (o)(1)(A). Pub. L. 106-102, Sec. 119, substituted
"section 38" for "section 38(b)".
Subsecs. (p), (q). Pub. L. 106-102, Sec. 103(c)(1)(B), added
subsecs. (p) and (q).
1996 - Subsec. (b). Pub. L. 104-208, Sec. 2610(1), inserted ",
and shall not include a qualified family partnership" after "by any
State".
Subsec. (c)(2)(F). Pub. L. 104-208, Sec. 2304(b), inserted ",
including an institution that accepts collateral for extensions of
credit by holding deposits under $100,000, and by other means"
after "An institution" in introductory provisions.
Subsec. (g)(3). Pub. L. 104-208, Sec. 2207, struck out par. (3)
which read as follows: "shares transferred after January 1, 1966,
by any bank holding company (or by any company which, but for such
transfer, would be a bank holding company) directly or indirectly
to any transferee that is indebted to the transferor, or has one or
more officers, directors, trustees, or beneficiaries in common with
or subject to control by the transferor, shall be deemed to be
indirectly owned or controlled by the transferor unless the Board,
after opportunity for hearing, determines that the transferor is
not in fact capable of controlling the transferee."
Subsec. (j)(2). Pub. L. 104-208, Sec. 2704(d)(17), which directed
substitution of "Deposit Insurance Fund" for "Savings Association
Insurance Fund", was repealed by Pub. L. 109-171. See Effective
Date of 1996 Amendment note below and 2006 Amendment note above.
Subsec. (o)(1). Pub. L. 104-208, Sec. 2208(b)(1), added heading
and text of par. (1) and struck out heading and text of former par.
(1). Text read as follows: "The term 'adequately capitalized' means
a level of capitalization which meets or exceeds all applicable
Federal regulatory capital standards."
Subsec. (o)(8), (9). Pub. L. 104-208, Sec. 2208(b)(2), added
pars. (8) and (9).
Subsec. (o)(10). Pub. L. 104-208, Sec. 2610(2), added par. (10).
1994 - Subsecs. (n), (o). Pub. L. 103-328 added subsecs. (n) and
(o).
1989 - Subsec. (j). Pub. L. 101-73 amended subsec. (j) generally,
substituting provisions defining "saving association" or "insured
institution" for provisions defining "insured institution".
1987 - Subsec. (a)(5)(E). Pub. L. 100-86, Sec. 101(e), amended
subpar. (E) generally. Prior to amendment, subpar. (E) read as
follows: "No company is a bank holding company by virtue of its
ownership or control of any State chartered bank or trust company
which is wholly owned by thrift institutions and which restricts
itself to the acceptance of deposits from thrift institutions,
deposits arising out of the corporate business of its owners, and
deposits of public moneys."
Subsec. (c). Pub. L. 100-86, Sec. 101(a)(1), amended subsec. (c)
generally. Prior to amendment, subsec. (c) read as follows: "
'Bank' means any institution organized under the laws of the United
States, any State of the United States, the District of Columbia,
any territory of the United States, Puerto Rico, Guam, American
Samoa, or the Virgin Islands, except an institution the accounts of
which are insured by the Federal Savings and Loan Insurance
Corporation or an institution chartered by the Federal Home Loan
Bank Board, which (1) accepts deposits that the depositor has a
legal right to withdraw on demand, and (2) engages in the business
of making commercial loans. Such term does not include any
organization operating under section 25 or section 25 (a) of the
Federal Reserve Act, or any organization which does not do business
within the United States except as an incident to its activities
outside the United States. 'District bank' means any bank organized
or operating under the Code of Law for the District of Columbia.
The term 'bank' also includes a State chartered bank or a national
banking association which is owned exclusively (except to the
extent directors' qualifying shares are required by law) by other
depository institutions or by a bank holding company which is owned
exclusively by other depository institutions and is organized to
engage exclusively in providing services for other depository
institutions and their officers, directors, and employees."
Subsec. (h)(2). Pub. L. 100-86, Sec. 205(a), added par. (2) and
struck out former par. (2) which read as follows: "The prohibitions
of section 1843 of this title shall not apply to shares of any
company organized under the laws of a foreign country (or to shares
held by such company in any company engaged in the same general
line of business as the investor company or in a business related
to the business of the investor company) that is principally
engaged in business outside the United States if such shares are
held or acquired by a bank holding company organized under the laws
of a foreign country that is principally engaged in the banking
business outside the United States, except that (1) such exempt
foreign company (A) may engage in or hold shares of a company
engaged in the business of underwriting, selling or distributing
securities in the United States only to the extent that a bank
holding company may do so under this chapter and under regulations
or orders issued by the Board under this chapter, and (B) may
engage in the United States in any banking or financial operations
or types of activities permitted under section 1843(c)(8) of this
title or in any order or regulation issued by the Board under such
section only with the Board's prior approval under that section,
and (2) no domestic office or subsidiary of a bank holding company
or subsidiary thereof holding shares of such company may extend
credit to a domestic office or subsidiary of such exempt company on
terms more favorable than those afforded similar borrowers in the
United States."
Subsec. (h)(3) to (5). Pub. L. 100-86, Sec. 205(a), added pars.
(3) to (5).
Subsec. (i). Pub. L. 100-86, Sec. 101(a)(2), amended subsec. (i)
generally. Prior to amendment, subsec. (i) read as follows: "The
term 'thrift institution' means (1) a domestic building and loan or
savings and loan association, (2) a cooperative bank without
capital stock organized and operated for mutual purposes and
without profit, (3) a mutual savings bank not having capital stock
represented by shares or (4) a Federal savings bank."
Subsecs. (j) to (m). Pub. L. 100-86, Sec. 101(a)(3), added
subsecs. (j) to (m).
1982 - Subsec. (c). Pub. L. 97-320, Sec. 404(d)(1), inserted
references to State chartered banks and national banking
associations as being included in definition of "bank".
Pub. L. 97-320, Sec. 333, excepted from term "bank" an
institution the accounts of which are insured by the Federal
Savings and Loan Insurance Corporation or an institution chartered
by the Federal Home Loan Bank Board.
Subsec. (i)(4). Pub. L. 97-320, Sec. 118(b), added cl. (4).
1978 - Subsec. (h). Pub. L. 95-369 designated existing provisions
as par. (1), substituted "Except as provided by paragraph (2), the
application" for "The application"; struck out a proviso holding
the prohibitions of section 1843 not applicable to shares of any
company organized under the laws of a foreign country not doing
business within the United States, if such shares are held or
acquired by a bank holding company principally engaged in banking
business outside the United States; and added par. (2).
1977 - Subsec. (a)(5)(D). Pub. L. 95-188 authorized the Board to
extend the time for disposition of acquired shares for not more
than one year at a time and three years in the aggregate.
1970 - Subsec. (a). Pub. L. 91-607, Sec. 101(a), in revising the
provisions, added par. (1) definition of bank holding company;
incorporated provisions of former cl. (1) in provisions designated
as par. (2)(A), inserting text respecting company acting through
one or more other persons, substituting "power to vote" for "holds
with power to vote" and provision for voting of any class of voting
securities of the bank or company for prior provision for voting of
voting shares of each of two or more banks; incorporated former
provisions of former cl. (2) in provisions designated as par.
(2)(B), providing for election of trustees and substituting bank or
company for directors of each of two or more banks designated cl.
(A) as par. (5)(A), inserting provision that acquisition of shares
shall not be deemed acquisition of shares in a fiduciary capacity
if the banks or company has sole discretionary authority to
exercise voting rights with respect thereto, and making such
limitation applicable to bank or company acquiring the shares prior
to Dec. 31, 1970, where there is right of divestiture of voting
rights and there is a failure to exercise that right within
reasonable time not exceeding one year after Dec. 31, 1970;
incorporated former cls. (B) and (C) in provisions designated as
pars. (5)(B) and (C); added par. (5)(D) to (F); and designated
concluding part of first sentence as par. (6), substituting "from
the date on which" for "from the date as of which".
Subsec. (b). Pub. L. 91-607, Sec. 101(b), redefined term
"company" to include "partnership", which has been expressly
excluded, and inserted definition of "company covered in 1970".
Subsec. (c). Pub. L. 91-607, Sec. 101(c), redefined term "bank"
to mean any institution organized under Federal, State, District of
Columbia, etc., laws, designated existing provisions as cl. (1),
added cl. (2), and excepted from exclusion from such term an
organization which does business within the United States as an
incident to its activities outside the United States.
Subsec. (d)(3). Pub. L. 91-607, Sec. 101(d), added cl. (3).
Subsec. (i). Pub. L. 91-607, Sec. 101(e), added subsec. (i).
1966 - Subsec. (a). Pub. L. 89-485, Sec. 1, struck out provision
placing within the classification of bank holding company any
company for the benefit of whose shareholders or members 25 per
centum or more of the voting shares of each of two or more banks or
a bank holding company is held by trustees, struck out provision
exempting from classification as bank holding companies any
companies that are registered under the Investment Company Act of
1940, and were so registered prior to May 15, 1955 (or which is
affiliated with any such company in such manner as to constitute an
affiliated company within the meaning of that Act), unless that
company (or affiliated company), as the case may be, directly owns
25 per centum or more of the voting shares of each of two or more
banks, struck out provision exempting from classification as bank
holding companies any companies having 80 per centum or more of
their total assets composed of holdings in the field of
agriculture, substituted voting shares for shares in the
description of the securities the ownership or control of which, in
a fiduciary capacity, would be exempted from causing the formation
of a bank holding company, added "company" to "bank" as the
business entities eligible for the fiduciary ownership exemption,
and inserted reference in the fiduciary ownership exemption to
pars. (2) and (3) of subsec. (g) of this section.
Subsec. (b). Pub. L. 89-485, Sec. 2, exempted from definition of
"company" any trust which by its terms must terminate within twenty-
five years or not later than twenty-one years and ten months after
the death of individuals living on the effective date of the trust,
and struck out the exemption formerly granted to nonprofit
religious, charitable, and educational organizations.
Subsec. (c). Pub. L. 89-485, Sec. 3, substituted "any institution
that accepts deposits that the depositor has a legal right to
withdraw on demand" for "any national banking institution or any
state bank, savings bank, or trust company" in the definition of
"bank" and extended the exemption for foreign banking corporations
to include "agreement" foreign banking corporations under section
25 of the Federal Reserve Act.
Subsec. (d). Pub. L. 89-485, Sec. 4, inserted provision relating
to indirect ownership or control and the holding of power to vote
to direct ownership or control as the methods by which the holding
of 25 per centum or more of voting shares in a company will qualify
that company as a subsidiary, and struck out provisions under which
any company 25 per centum or more of whose voting shares are held
by trustees for the benefit of the shareholders or members of a
bank holding company qualifies as a subsidiary.
Subsec. (g). Pub. L. 89-485, Secs. 5, 6, substituted provisions
setting out treatment to be accorded shares owned or controlled by
subsidiaries of bank holding companies, shares held or controlled
by trustees for the benefit of companies, shareholders or members
of companies, and employees of companies, and shares transferred
after January 1, 1966, by bank holding companies to transferees
that are indebted to the transferor or have one or more officers,
directors, trustees, or beneficiaries in common with the transferor
for provisions defining "agriculture".
Subsec. (h). Pub. L. 89-485, Sec. 6, added subsec. (h).
EFFECTIVE DATE OF 2006 AMENDMENT
Amendment by Pub. L. 109-173 effective Mar. 31, 2006, see section
9(j) of Pub. L. 109-173, set out as a note under section 24 of this
title.
Amendment by Pub. L. 109-171 effective no later than the first
day of the first calendar quarter that begins after the end of the
90-day period beginning Feb. 8, 2006, see section 2102(c) of Pub.
L. 109-171, set out as a Merger of BIF and SAIF note under section
1821 of this title.
EFFECTIVE DATE OF 2004 AMENDMENT
Amendment by Pub. L. 108-386 effective Oct. 30, 2004, and, except
as otherwise provided, applicable with respect to fiscal year 2005
and each succeeding fiscal year, see sections 8(i) and 9 of Pub. L.
108-386, set out as notes under section 321 of this title.
EFFECTIVE DATE OF 1999 AMENDMENT
Amendment by sections 103(c)(1), 107(c), and 119 of Pub. L. 106-
102 effective 120 days after Nov. 12, 1999, see section 161 of
Pub. L. 106-102, set out as a note under section 24 of this title.
EFFECTIVE DATE OF 1996 AMENDMENT
Amendment by section 2704(d)(17) of Pub. L. 104-208 effective
Jan. 1, 1999, if no insured depository institution is a savings
association on that date, see section 2704(c) of Pub. L. 104-208,
formerly set out as a note under section 1821 of this title.
EFFECTIVE DATE OF 1994 AMENDMENT
Amendment by Pub. L. 103-328 effective at end of 1-year period
beginning on Sept. 29, 1994, see section 101(e) of Pub. L. 103-328,
set out as a note under section 1828 of this title.
SHORT TITLE OF 1988 AMENDMENT
Pub. L. 100-418, title III, Sec. 3401, Aug. 23, 1988, 102 Stat.
1384, provided that: "This subtitle [subtitle E (Secs. 3401, 3402)
of title III of Pub. L. 100-418, amending section 1843 of this
title] may be cited as the 'Export Trading Company Act Amendments
of 1988'."
SHORT TITLE OF 1982 AMENDMENT
Pub. L. 97-290, title II, Sec. 201, Oct. 8, 1982, 96 Stat. 1235,
provided that: "This title [enacting section 635a-4 of this title,
amending sections 372 and 1843 of this title, and enacting
provisions set out as notes under section 1843 of this title] may
be cited as the 'Bank Export Services Act'."
SHORT TITLE OF 1970 AMENDMENT
Section 1 of Pub. L. 91-607 provided: "That this Act [enacting
chapter 22 (Sec. 1971 et seq.) and section 1850 of this title and
sections 324b and 324c of former Title 31, Money and Finance,
amending sections 1841 to 1843 and 1849 of this title and sections
324, 391 of former Title 31, repealing sections 316 and 458 of
former Title 31, enacting provisions set out as notes under
sections 317e and 391 of former Title 31, and amending provisions
set out as a note under section 405a-1 of former Title 31] may be
cited as the 'Bank Holding Company Act Amendments of 1970'."
SHORT TITLE
Section 1 of act May 9, 1956, provided: "That this Act [enacting
this chapter and sections 1101 to 1103 of Title 26, Internal
Revenue Code] may be cited as the 'Bank Holding Company Act of
1956'."
SEPARABILITY
Section 12 of act May 9, 1956, provided that: "If any provision
of this Act [enacting this chapter and sections 1101 to 1103 of
Title 26, Internal Revenue Code], or the application of such
provision to any person or circumstance, shall be held invalid, the
remainder of the Act, and the application of such provision to
persons or circumstances other than those to which it is held
invalid, shall not be affected thereby."
TRANSFER OF FUNCTIONS
Federal Savings and Loan Insurance Corporation abolished and
functions transferred, see sections 401 to 406 of Pub. L. 101-73,
set out as a note under section 1437 of this title.
TRANSITIONAL RULE FOR 1987 AMENDMENT
Section 101(h) of Pub. L. 100-86 provided that:
"(1) Delay in application of amendment to certain institutions. -
If -
"(A) on March 5, 1987, an institution was not a bank (as
defined in section 2(c) of the Bank Holding Company Act of 1956
[12 U.S.C. 1841(c)]), as in effect on such date; and
"(B) any person which had a controlling interest in such
institution on March 5, 1987, made a public announcement before
such date that the transfer or other disposition of such person's
controlling interest in such institution was being considered,
the institution shall not become a bank (for purposes of the Bank
Holding Company Act of 1956 [12 U.S.C. 1841 et seq.]) due to the
amendment made to such section 2(c) by this section before the date
on which such institution fails to meet any requirement of
paragraph (2).
"(2) Requirements for application of subsection. - This
subsection shall not apply with respect to any institution
described in paragraph (1) unless -
"(A) the transfer or other disposition of the controlling
interest referred to in such paragraph is completed, or an
agreement to make such transfer or other disposition is in effect
(or is subject only to final approval by the appropriate Federal
and State regulatory agencies), before the end of the 180-day
period beginning on the date of the enactment of this title [Aug.
10, 1987];
"(B) a written notice by the person acquiring a controlling
interest in such institution (pursuant to the transfer or other
disposition described in subparagraph (A)) of such person's
intention to operate such institution as an institution described
in section 2(c)(2)(F) of the Bank Holding Company Act of 1956, as
in effect after the enactment of this title is filed with the
Board before the end of the 7-day period beginning on the later
of the date of such transfer (or other disposition) or the date
of the enactment of this title; and
"(C) the operation of such institution as an institution
described in such section 2(c)(2)(F) begins before the end of the
180-day period beginning on the date the transfer (or other
disposition) described in subparagraph (A) is completed.
"(3) Controlling interest. - For purposes of this subsection, a
person has a controlling interest in any institution if such person
controls -
"(A) such institution; or
"(B) any company which controls such institution,
as determined in accordance with the provisions of subsections (b)
and (g) of section 2 of the Bank Holding Company Act of 1956."
MORATORIUM ON CERTAIN NONBANKING ACTIVITIES
Pub. L. 100-86, title II, Secs. 201-203, Aug. 10, 1987, 101 Stat.
581-584, provided for the period of Mar. 6, 1987, to Mar. 1, 1988,
a moratorium on certain nonbanking activities, including expansion
of activities of foreign banks and authority of Federal banking
agencies to authorize or allow certain security, insurance, or real
estate activities.
(!1) See References in Text note below.
(!2) See References in Text note below.