12 U.S.C. § 3104 : US Code - Section 3104: Insurance of deposits

Search 12 U.S.C. § 3104 : US Code - Section 3104: Insurance of deposits

(a) Objective
In implementing this section, the Comptroller and the Federal
Deposit Insurance Corporation shall each, by affording equal
competitive opportunities to foreign and United States banking
organizations in their United States operations, ensure that
foreign banking organizations do not receive an unfair competitive
advantage over United States banking organizations.
(b) Deposits of less than amount equal to the standard maximum
deposit insurance amount
No foreign bank may establish or operate a Federal branch which
receives deposits of less than an amount equal to the standard
maximum deposit insurance amount unless the branch is an insured
branch as defined in section 3(s) of the Federal Deposit Insurance
Act [12 U.S.C. 1813(s)], or unless the Comptroller determines by
order or regulation that the branch is not engaged in domestic
retail deposit activities requiring deposit insurance protection,
taking account of the size and nature of depositors and deposit
accounts.
(c) Deposits required to be insured under State law
(1) After September 17, 1978, no foreign bank may establish a
branch, and after one year following such date no foreign bank may
operate a branch, in any State in which the deposits of a bank
organized and existing under the laws of that State would be
required to be insured, unless the branch is an insured branch as
defined in section 3(s) of the Federal Deposit Insurance Act [12
U.S.C. 1813(s)], or unless the branch will not thereafter accept
deposits of less than an amount equal to the standard maximum
deposit insurance amount, or unless the Federal Deposit Insurance
Corporation determines by order or regulation that the branch is
not engaged in domestic retail deposit activities requiring deposit
insurance protection, taking account of the size and nature of
depositors and deposit accounts.
(2) Notwithstanding the previous paragraph, a branch of a foreign
bank in operation on September 17, 1978, which has applied for
Federal deposit insurance pursuant to section 5 of the Federal
Deposit Insurance Act [12 U.S.C. 1815] by September 17, 1979, and
has not had such application denied, may continue to accept
domestic retail deposits until January 31, 1980.
(d) Retail deposit-taking by foreign banks
(1) In general
After December 19, 1991, notwithstanding any other provision of
this chapter or any provision of the Federal Deposit Insurance
Act [12 U.S.C. 1811 et seq.], in order to accept or maintain
domestic retail deposit accounts having balances of less than an
amount equal to the standard maximum deposit insurance amount,
and requiring deposit insurance protection, a foreign bank shall -

(A) establish 1 or more banking subsidies in the United
States for that purpose; and
(B) obtain Federal deposit insurance for any such subsidiary
in accordance with the Federal Deposit Insurance Act.
(2) Exception
Domestic retail deposit accounts with balances of less than an
amount equal to the standard maximum deposit insurance amount
that require deposit insurance protection may be accepted or
maintained in a branch of a foreign bank only if such branch was
an insured branch on December 19, 1991.
(3) Insured banks in U.S. territories
For purposes of this subsection, the term "foreign bank" does
not include any bank organized under the laws of any territory of
the United States, Puerto Rico, Guam, American Samoa, or the
Virgin Islands the deposits of which are insured by the Federal
Deposit Insurance Corporation pursuant to the Federal Deposit
Insurance Act [12 U.S.C. 1811 et seq.].
(e) Standard maximum deposit insurance amount defined
For purposes of this section, the term "standard maximum deposit
insurance amount" means the amount of the maximum amount of deposit
insurance as determined under section 11(a)(1) of the Federal
Deposit Insurance Act [12 U.S.C. 1821(a)(1)].