I

103D CONGRESS

1ST SESSION H. R. 3129

To allow interstate banking through acquisitions of existing banks, and for

other purposes.

IN THE HOUSE OF REPRESENTATIVES

SEPTEMBER 23, 1993

Mrs. MALONEY introduced the following bill; which was referred to the

Committee on Banking, Finance and Urban Affairs

A BILL

To allow interstate banking through acquisitions of existing

banks, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Interstate Bank Con5 solidation Act of 1993’’.

6 SEC. 2. CONVERSION OF BANKS TO BRANCHES.

7 (a) IN GENERAL.—Section 3 of the Bank Holding

8 Company Act of 1956 (12 U.S.C. 1842) is amended by

9 adding at the end the following new subsection:

10 ‘‘(h) INTERSTATE COMBINATIONS.—
2

•HR 3129 IH

1 ‘‘(1) IN GENERAL.—

2 ‘‘(A) COMBINATIONS AUTHORIZED.—Sub3 ject to paragraphs (6) and (7), on or after June

4 1, 1995, a bank holding company having sub5 sidiary banks located in more than 1 State may

6 combine 2 or more of such banks into a single,

7 resulting bank by means of a merger, consolida8 tion, or other transaction.

9 ‘‘(B) SURRENDER OF CHARTER AFTER

10 COMBINATION.—On the date on which a com11 bination authorized by this paragraph becomes

12 effective, the charters of the banks (other than

13 that of the resulting bank) that have been com14 bined in accordance with subparagraph (A) into

15 the resulting bank shall be surrendered to the

16 regulatory authority that issued the charters.

17 ‘‘(C) EFFECT OF STATE PROHIBITION OF

18 COMBINATIONS.—If, during the period begin19 ning on June 1, 1995, and ending on the expi20 ration of 3 years after the date of enactment of

21 the Interstate Bank Consolidation Act of 1993,

22 a combination authorized by subparagraph (A)

23 is completed in a host State that elects to pro24 hibit interstate combinations under paragraph

25 (6), the host State may require such branch to
3

•HR 3129 IH

1 be promptly converted back into a bank as the

2 bank existed prior to such combination.

3 ‘‘(D) NO COMBINATIONS WITHIN STATE IN

4 CONTRAVENTION OF STATE LAW.—This para5 graph shall not be construed as authorizing the

6 merger, consolidation, or other combination of 2

7 or more banks which are located within a State

8 if the law of such State prohibits such combina9 tion of banks located within such State.

10 ‘‘(2) APPLICABILITY.—A combination under

11 paragraph (1) may only be carried out through a

12 merger, consolidation, or other transaction that is

13 undertaken—

14 ‘‘(A) by a bank holding company that is

15 adequately capitalized; or

16 ‘‘(B) subject to all other provisions of this

17 subsection, by a bank holding company that is

18 critically undercapitalized if—

19 ‘‘(i) the transaction is approved as

20 part of a capital restoration plan required

21 under section 38 of the Federal Deposit

22 Insurance Act;

23 ‘‘(ii) such plan contains not less than

24 1 element in addition to the transaction;

25 and
4

•HR 3129 IH

1 ‘‘(iii) the transaction will result in a

2 demonstrable and material improvement in

3 the financial condition of the bank holding

4 company.

5 ‘‘(3) ACTIVITIES OF THE RESULTING BANK.—

6 ‘‘(A) ADDITIONAL BRANCHES.—Following

7 any combination under paragraph (1), the re8 sulting bank may establish, acquire, and oper9 ate additional branches at any location where

10 the resulting bank or a combined bank could

11 have established or acquired and operated a

12 branch under the applicable Federal or State

13 law if the bank had not been a party to such

14 combination.

15 ‘‘(B) INTRASTATE BRANCHING.—Except as

16 expressly provided in this subsection, no provi17 sion of this subsection shall be construed as

18 amending, repealing, or superseding, either ex19 pressly or by implication, any Federal or State

20 law relating to the establishment, acquisition, or

21 operation of intrastate branches by national or

22 State banks.

23 ‘‘(C) CONDITIONS.—Before granting ap24 proval to an application for a combination

25 under paragraph (1), the appropriate Federal
5

•HR 3129 IH

1 banking agency shall consider each bank’s rat2 ing under the Community Reinvestment Act of

3 1977 and the views of the appropriate State

4 bank regulatory authorities regarding each

5 bank’s compliance with applicable State com6 munity reinvestment laws.

7 ‘‘(D) IMPOSITION OF SHARES TAX BY

8 HOST STATES.—In order to assure that an out9 of-State bank contributes a fair share to a host

10 State’s revenues, if any branch of an out-of11 State bank established pursuant to paragraph

12 (1) or subparagraph (A) of this paragraph con13 tinues in operation, a proportionate amount of

14 the value of the shares of the out-of-State bank

15 may be subject to any bank shares tax levied or

16 imposed by any host State or any political sub17 division of such State based upon an allocation

18 of net income, capital or net worth, and other

19 factors employed in computing such value pur20 suant to an allocation method adopted by the

21 host State’s taxing authorities, if such method

22 does not unconstitutionally discriminate against

23 out-of-State banks or bank holding companies.

24 ‘‘(4) ACTIVITIES OF BRANCHES.—A State bank

25 that establishes any branch in a host State in ac-
6

•HR 3129 IH

1 cordance with paragraph (1) or (3)(A) may not con2 duct any activity at such branch that is not per3 mitted for banks chartered by the host State.

4 ‘‘(5) APPLICABLE LAW.—

5 ‘‘(A) IN GENERAL.—

6 ‘‘(i) NATIONAL BANK BRANCHES.—

7 Any branch of a national bank that is es8 tablished as the result of a combination in

9 accordance with paragraph (1) or para10 graph (3)(A) shall be subject to the laws of

11 the host State with respect to intrastate

12 branching, consumer protection, fair lend13 ing, and community reinvestment as if the

14 branch were a branch of a national bank

15 the main office of which is in that State.

16 ‘‘(ii) STATE BANK BRANCHES.—Any

17 branch of a State bank that is established

18 as the result of a combination in accord19 ance with paragraph (1) or paragraph

20 (3)(A) shall be subject to the laws of the

21 host State with respect to intrastate

22 branching, consumer protection, fair lend23 ing, and community reinvestment as if the

24 branch were a branch of a bank which is
7

•HR 3129 IH

1 chartered under the laws of such State and

2 has offices only in such State.

3 ‘‘(B) FILING REQUIREMENT.—

4 ‘‘(i) IN GENERAL.—A host State may

5 require any out-of-State bank that wishes

6 to establish a branch within the host State

7 as a result of a combination authorized by

8 paragraph (1) to comply with filing re9 quirements that—

10 ‘‘(I) are not discriminatory in na11 ture; and

12 ‘‘(II) are similar in their effect to

13 those that are imposed on an out-of14 State corporation which is not en15 gaged in the business of banking and

16 seeks to engage in business in the

17 host State.

18 ‘‘(ii) FAILURE TO COMPLY.—The host

19 State may preclude any bank referred to in

20 clause (i) from establishing or operating a

21 branch within the host State as the result

22 of a combination authorized by paragraph

23 (1) if that bank or its branch materially

24 fails to comply with the filing requirements

25 established by the host State.
8

•HR 3129 IH

1 ‘‘(6) STATE ELECTION TO PROHIBIT INTER2 STATE COMBINATIONS.—Paragraph (1) shall not

3 apply to a bank which is located in a State that has

4 enacted, during the period beginning on January 1,

5 1990, and ending 3 years after the date of enact6 ment of the Interstate Bank Consolidation Act of

7 1993, a law that—

8 ‘‘(A) applies equally to all national banks

9 and State banks; and

10 ‘‘(B) expressly prohibits interstate branch11 ing or the interstate combinations otherwise au12 thorized under paragraph (1) with respect to

13 banks located in such State.

14 ‘‘(7) STATE ELECTION TO PERMIT INTERSTATE

15 COMBINATIONS.—

16 ‘‘(A) COMBINATIONS PRIOR TO JUNE 1,

17 1995.—

18 ‘‘(i) IN GENERAL.—A combination

19 under paragraph (1) may be undertaken

20 before June 1, 1995, if each of the States

21 in which the banks that are to be combined

22 into a single, resulting bank are located ei23 ther has in effect on the date of enactment

24 of this subsection or enacts prior to June

25 1, 1995, a law expressly permitting inter-
9

•HR 3129 IH

1 state combinations by national and State

2 banks.

3 ‘‘(ii) ADDITIONAL CONDITIONS.—Sub4 ject to clause (iii), a State described in

5 clause (i) may impose other conditions on

6 a branch of a resulting bank located in

7 that State if—

8 ‘‘(I) the conditions do not dis9 criminate or have the effect of dis10 criminating against out-of-State banks

11 or bank holding companies; and

12 ‘‘(II) the imposition of the condi13 tions is not preempted by Federal law

14 regarding the same subject.

15 ‘‘(iii) CONDITIONS NOT APPLICABLE

16 TO COMBINATIONS AFTER MAY 31, 1995.—

17 No condition otherwise permitted under

18 clause (ii) may be imposed by any State on

19 a branch of a bank resulting from a merg20 er, consolidation, or other transaction au21 thorized under paragraph (1) which is con22 summated after May 31, 1995.

23 ‘‘(B) COMBINATIONS AFTER JUNE 1,

24 1993.—A State that originally elected to pro25 hibit interstate combinations as described in
10

•HR 3129 IH

1 paragraph (6) may elect at any later time to

2 permit interstate combinations authorized

3 under paragraph (1) if such State enacts a law

4 expressly permitting interstate combinations by

5 all national and State banks.

6 ‘‘(8) LIMITATIONS.—No provision of paragraph

7 (1) shall be construed as affecting the applicability

8 of any Federal or State antitrust law that does not

9 discriminate against, and does not have the effect of

10 discriminating against, out-of-State banks or bank

11 holding companies.

12 ‘‘(9) RESERVATION OF CERTAIN RIGHTS TO

13 STATES.—No provision of this subsection shall be

14 construed as limiting in any way the right of a State

15 to—

16 ‘‘(A) determine the authority of State

17 banks chartered by that State to establish and

18 maintain branches; or

19 ‘‘(B) supervise, regulate, and examine

20 State banks chartered by that State.

21 ‘‘(10) DEFINITIONS.—For purposes of this sub22 section—

23 ‘‘(A) ADEQUATELY CAPITALIZED.—The

24 term ‘adequately capitalized’ has the meaning
11

•HR 3129 IH

1 given to such term by section 38 of the Federal

2 Deposit Insurance Act.

3 ‘‘(B) APPROPRIATE FEDERAL BANKING

4 AGENCY.—The term ‘appropriate Federal bank5 ing agency’ has the meaning given to such term

6 in section 3 of the Federal Deposit Insurance

7 Act.

8 ‘‘(C) COMBINED BANK.—The term ‘com9 bined bank’ means any bank participating in a

10 combination under paragraph (1), other than a

11 resulting bank.

12 ‘‘(D) CRITICALLY UNDERCAPITALIZED.—

13 The term ‘critically undercapitalized’ has the

14 meaning given to such term in section 38 of the

15 Federal Deposit Insurance Act.

16 ‘‘(E) HOST STATE.—The term ‘host State’

17 means the State in which a bank establishes or

18 maintains a branch other than—

19 ‘‘(i) in the case of a State bank, the

20 State under the laws of which the bank is

21 chartered; and

22 ‘‘(ii) in the case of a national bank,

23 the State in which the bank has its main

24 office and is engaging in the business of

25 banking.
12

•HR 3129 IH

1 ‘‘(F) INSURED DEPOSITORY INSTITU2 TION.—The term ‘insured depository institu3 tion’ has the meaning given to such term in sec4 tion 3 of the Federal Deposit Insurance Act.

5 ‘‘(G) OUT-OF-STATE BANK.—The term

6 ‘out-of State bank’, when used in connection

7 with a reference to a State, means—

8 ‘‘(i) in the case of a State bank, a

9 bank that is not chartered under the laws

10 of such State; and

11 ‘‘(ii) in the case of a national bank, a

12 bank which does not have its main office in

13 such State.

14 ‘‘(H) RESULTING BANK.—The term ‘re15 sulting bank’ means a banking subsidiary of a

16 bank holding company that has resulted from a

17 transaction under paragraph (1) involving the

18 combination of 2 or more subsidiary banks of

19 the bank holding company located in 2 or more

20 States.

21 ‘‘(I) STATE BANK.—The term ‘State bank’

22 has the meaning given to such term in section

23 3(a) of the Federal Deposit Insurance Act.
13

•HR 3129 IH

1 ‘‘(11) RULE FOR DETERMINING DOMICILE OF A

2 BANK.—For purposes of this subsection, a bank

3 shall be deemed to be located—

4 ‘‘(A) in the case of a State bank, in the

5 State in which the bank is chartered; and

6 ‘‘(B) in the case of a national bank, the

7 State in which the bank’s main office is lo8 cated.’’.

9 (b) TAXATION.—

10 (1) STATE FRANCHISE OR OTHER NON11 PROPERTY TAXES.—The amendments made by this

12 section shall not be construed as, in any way, affect13 ing, limiting, impairing, or precluding the right of

14 any State or political subdivision of a State to im15 pose a nondiscriminatory franchise tax or other non16 property tax instead of a franchise tax as provided

17 by section 3124 of title 31, United States Code.

18 (2) STATE METHODS OF TAXATION.—No provi19 sion of this section shall be construed as—

20 (A) prohibiting or restricting any State or

21 political subdivision of a State from applying

22 any tax or method of taxation to a State bank

23 or a national bank or any branch of any such

24 bank when such tax or tax method is otherwise

25 permitted by or permissible under either the
14

•HR 3129 IH

1 Constitution of the United States or any other

2 Federal law; or

3 (B) allowing any State or political subdivi4 sion of a State to apply any tax or method of

5 taxation to a State bank or national bank or

6 branch thereof when such tax or tax method is

7 otherwise prohibited or restricted by either the

8 Constitution of the United States or any other

9 Federal law.

10 (c) CONFORMING AMENDMENT TO THE NATIONAL

11 BANK ACT.—Section 5155(c) of the Revised Statutes (12

12 U.S.C. 36(c)) is amended in the first sentence by striking

13 ‘‘A national banking association’’ and inserting ‘‘Except

14 as provided in section 3(h) of the Bank Holding Company

15 Act of 1956, a national banking association’’.

16 SEC. 3. AMENDMENTS TO FEDERAL DEPOSIT INSURANCE

17 ACT AND THE ACT ENTITLED ‘‘AN ACT TO

18 PROVIDE FOR THE CONSOLIDATION OF NA19 TIONAL BANKING ASSOCIATIONS’’.

20 (a) FEDERAL DEPOSIT INSURANCE ACT AMEND21 MENTS.—Section 18(d) of the Federal Deposit Insurance

22 Act (12 U.S.C. 1828(d)) is amended—

23 (1) in the first sentence of paragraph (1), by

24 striking ‘‘No State’’ and inserting ‘‘Except as pro-
15

•HR 3129 IH

1 vided in section 3(h) of the Bank Holding Company

2 Act of 1956, no State’’;

3 (2) by adding at the end the following new

4 paragraphs:

5 ‘‘(3) COORDINATION OF EXAMINATION AUTHOR6 ITY.—

7 ‘‘(A) IN GENERAL.—The State bank super8 visor of a host State may examine a branch of

9 an out-of-State State bank that resulted from a

10 combination under section 3(h) of the Bank

11 Holding Company Act of 1956 of such bank

12 with a bank in the host State for the purpose

13 of determining compliance with host State laws

14 regarding banking, taxation, community rein15 vestment, fair lending, consumer protection,

16 and permissible activities and to ensure that the

17 activities of the branch—

18 ‘‘(i) are conducted in a manner that is

19 consistent with sound banking principles;

20 and

21 ‘‘(ii) do not constitute a serious risk

22 to the safety and sound operation of the

23 branch.

24 ‘‘(B) ENFORCEMENT.—If the State bank

25 supervisor of a host State determines that there
16

•HR 3129 IH

1 has been a violation of the law of the host State

2 concerning the activities being conducted by the

3 branch of a State bank or that such branch is

4 being operated in a manner not consistent with

5 sound banking principles or in an unsafe and

6 unsound manner, the State bank supervisor

7 may undertake such enforcement actions and

8 proceedings as would be permitted under the

9 law of the host State if the branch in question

10 were a State bank chartered by such State.

11 ‘‘(C) COOPERATIVE AGREEMENT.—The

12 State bank supervisors of 2 or more States may

13 enter into cooperative agreements to facilitate

14 State regulatory supervision of State banks, in15 cluding cooperative agreements relating to the

16 coordination of examinations and joint partici17 pation in examinations.

18 ‘‘(D) FEDERAL REGULATORY AUTHOR19 ITY.—

20 ‘‘(i) INTERSTATE AGREEMENTS.—No

21 provision of this subsection shall be con22 strued as limiting in any way the authority

23 of the appropriate Federal banking agency

24 to examine any bank or branch of a bank
17

•HR 3129 IH

1 for which the agency is the appropriate

2 Federal banking agency.

3 ‘‘(ii) REVIEW OF INTERSTATE AGREE4 MENTS.—If the appropriate Federal bank5 ing agency determines that the States have

6 failed to reach an agreement under sub7 paragraph (C), or that such an agreement

8 fails to adequately protect the Federal De9 posit Insurance Fund, the appropriate

10 Federal banking agency shall not defer to

11 State examinations of the out-of-State

12 branches.

13 ‘‘(4) DEFINITIONS.—For purposes of this sub14 section—

15 ‘‘(A) HOST STATE.—The term ‘host State’

16 means the State in which a State bank estab17 lishes or maintains a branch other than the

18 State under the laws of which the bank is char19 tered.

20 ‘‘(B) OUT-OF-STATE BANK.—The term

21 ‘out-of State bank’, when used in connection

22 with a reference to a State, means—

23 ‘‘(i) in the case of a State bank, a

24 bank that is not chartered under the laws

25 of such State; and
18

•HR 3129 IH

1 ‘‘(ii) in the case of a national bank, a

2 bank which does not have its main office in

3 such State.’’.

4 (b) NATIONAL BANKING ASSOCIATIONS.—The Act

5 entitled ‘‘An Act To provide for the consolidation of na6 tional banking associations’’ and approved November 7,

7 1918 (12 U.S.C. 215 et seq.) is amended—

8 (1) in the 1st sentence of subsection (a) of the

9 1st section, by inserting ‘‘, or in any State in which

10 a bank involved in an interstate acquisition or inter11 state combination authorized by section 3(h) of the

12 Bank Holding Company Act of 1956 is located,’’

13 after ‘‘located in the same State’’;

14 (2) by inserting before the period at the end of

15 subsection (d) of the 1st section ‘‘, except that the

16 applicability of State law to an interstate acquisition

17 or interstate combination undertaken in accordance

18 with section 3(h) of the Bank Holding Company Act

19 of 1956 shall be determined in accordance with the

20 provisions of such sections’’;

21 (3) in the 1st sentence of section 2(a), by in22 serting ‘‘or in any State in which a bank involved in

23 an interstate combination authorized by section 3(h)

24 of the Bank Holding Company Act of 1956 is lo25 cated,’’ after ‘‘located within the same State,’’;
19

•HR 3129 IH

1 (4) in the 6th sentence of section 2(d), by in2 serting before the period ‘‘, except that the applica3 bility of State law to the transaction undertaken

4 pursuant to section 3(h) of the Bank Holding Com5 pany Act of 1956 shall be determined in accordance

6 with the provisions of such section 3(h)’’; and

7 (5) in paragraph (4) of section 3, by inserting

8 ‘‘or within any State in which a bank involved in an

9 interstate combination authorized by section 3(h) of

10 the Bank Holding Company Act of 1956 is located,’’

11 after ‘‘within the same State,’’.

12 SEC. 4. COMMUNITY REINVESTMENT ACT EVALUATION OF

13 BANKS WITH INTERSTATE BRANCHES.

14 (a) IN GENERAL.—Section 807 of the Community

15 Reinvestment Act of 1977 (12 U.S.C. 2906) is amended

16 by adding at the end the following subsections:

17 ‘‘(d) INSTITUTIONS WITH INTERSTATE

18 BRANCHES.—

19 ‘‘(1) STATE-BY-STATE EVALUATION.—In the

20 case of a regulated financial institution that main21 tains domestic branches in 2 or more States, the ap22 propriate Federal financial supervisory agency shall

23 prepare—

24 ‘‘(A) a written evaluation of the entire in25 stitution’s record of performance under this
20

•HR 3129 IH

1 title in accordance with the requirements of

2 subsections (a), (b), and (c); and

3 ‘‘(B) for each State in which the institu4 tion maintains 1 or more domestic branches, a

5 separate written evaluation of the institution’s

6 record of performance within such State under

7 this title, in accordance with the requirements

8 of subsections (a), (b), and (c).

9 ‘‘(2) MULTISTATE METROPOLITAN AREAS.—

10 ‘‘(A) IN GENERAL.—In the case of a regu11 lated financial institution that maintains do12 mestic branches in 2 or more States within a

13 multistate metropolitan area, the appropriate

14 Federal financial supervisory agency may pre15 pare a separate written evaluation of the insti16 tution’s record of performance within such met17 ropolitan area under this title, in accordance

18 with the requirements of subsections (a), (b),

19 and (c).

20 ‘‘(B) ADJUSTMENT OF SCOPE OF EVALUA21 TION.—If an appropriate Federal financial in22 stitution supervisory agency prepares a written

23 evaluation pursuant to subparagraph (A), the

24 scope of the written evaluation required under

25 paragraph (1)(B) shall be adjusted accordingly.
21

•HR 3129 IH

1 ‘‘(3) CONTENT OF STATE LEVEL EVALUA2 TION.—A written evaluation prepared pursuant to

3 paragraph (1)(B) of this subsection shall—

4 ‘‘(A) present the information required by

5 subparagraphs (A) and (B) of subsection (b)(1)

6 of this section separately for each metropolitan

7 area in which the institution maintains 1 or

8 more domestic branch offices and separately for

9 the remainder of the nonmetropolitan area of

10 the State if the institution maintains 1 or more

11 domestic branch offices in such area; and

12 ‘‘(B) describe how the Federal financial

13 supervisory agency has performed the examina14 tion of the institution, including a list of the in15 dividual branches examined.

16 ‘‘(4) DEFINITIONS.—For purposes of this sec17 tion:

18 ‘‘(A) DOMESTIC BRANCH.—The term ‘do19 mestic branch’ means any branch office or

20 other facility of a regulated financial institution

21 which accepts deposits in any State.

22 ‘‘(B) METROPOLITAN AREA.—The term

23 ‘metropolitan area’ means—

24 ‘‘(i) any primary metropolitan statis25 tical area, metropolitan statistical area, or
22

•HR 3129 IH

1 consolidated metropolitan statistical area

2 as defined by the Director of the Office of

3 Management and Budget, with a popu4 lation of 250,000 or more; and

5 ‘‘(ii) any other area identified by the

6 appropriate Federal financial supervisory

7 agency.

8 ‘‘(C) STATE.—The term ‘State’ has the

9 meaning given to such term in section 3(a) of

10 the Federal Deposit Insurance Act.’’.

11 (b) SEPARATE PRESENTATION.—Section 807(b) of

12 the Community Reinvestment Act of 1977 (12 U.S.C.

13 2906(b)(1)) is amended by adding at the end the following

14 new paragraph:

15 ‘‘(3) BREAKDOWN BY METROPOLITAN AREAS.—

16 The information required to be included in the pub17 lic section of the written evaluation pursuant to sub18 paragraphs (A) and (B) of paragraph (1) shall be

19 presented separately for each metropolitan area in

20 which an insured depository institution maintains 1

21 or more domestic branch offices.’’.

22 SEC. 5. STATE TAX COMPLIANCE.

23 Section 5240 of the Revised Statutes is amended by

24 inserting after subparagraph (B) (12 U.S.C. 484) follow-
23

•HR 3129 IH

1 ing the 5th undesignated paragraph the following new

2 subparagraph:

3 ‘‘(C) Notwithstanding subparagraph (A), law4 fully authorized auditors, examiners, and other rep5 resentatives acting on behalf of any State agency

6 charged with the administration and collection of

7 taxes imposed by such State or any political subdivi8 sion of such State, may, to the extent necessary, re9 view the books, records, and accounts of a Federal

10 depository institution (as defined in section 3(c)(4)

11 of the Federal Deposit Insurance Act) which has its

12 main office or any branch located in that State to

13 determine any State or local tax liability and to en14 sure compliance with the tax laws of the State or po15 litical subdivision.’’.

16 SEC. 6. USE OF NAMES IN HOST STATE BY BANK HOLDING

17 COMPANIES.

18 Section 3 of the Bank Holding Company Act of 1956

19 (12 U.S.C. 1842) is amended by inserting after subsection

20 (h) (as added by section 2 of this Act) the following new

21 subsection:

22 ‘‘(i) USE OF NAMES IN HOST STATE.—

23 ‘‘(1) IN GENERAL.—A bank holding company

24 that seeks, directly or indirectly, to consolidate

25 banks under subsection (h) shall provide the Board
24

•HR 3129 IH

1 with the name or names under which the branches

2 of the resulting bank will operate in the host State

3 of each such branch.

4 ‘‘(2) PROHIBITION AGAINST SAME OR SIMILAR

5 NAMES.—A bank holding company may not operate

6 a branch of a bank in a host State if the proposed

7 name of the bank is—

8 ‘‘(A) identical or deceptively similar to a

9 name being used by an existing bank or bank

10 holding company in the host State; or

11 ‘‘(B) is likely to cause the public to be con12 fused, deceived, or mistaken, due to a similarity

13 or identity of names.

14 ‘‘(3) SUBSEQUENT USE OF SAME OR SIMILAR

15 NAME.—

16 ‘‘(A) IN GENERAL.—Upon application by

17 any person adversely affected, the Board shall

18 revoke permission of a bank holding company to

19 operate a branch in a host State if—

20 ‘‘(i) the bank holding company uses or

21 changes the name of, or uses an additional

22 name for, any branch of any bank subsidi23 ary of such company in the host State; and
25

•HR 3129 IH

1 ‘‘(ii) the new or additional name is de2 scribed in subparagraph (A) or (B) of

3 paragraph (2).

4 ‘‘(B) OTHER REMEDIES UNAFFECTED.—

5 Subparagraph (A) shall not be construed as

6 precluding any adversely affected person from

7 pursuing any available legal or administrative

8 remedies.

9 ‘‘(4) HOST STATE DEFINED.—For purposes of

10 this subsection, the term ‘host State’ means any

11 State in which a bank holding company operates a

12 branch of a bank which resulted from a consolida13 tion under subsection (h) other than the State in

14 which the operations of the bank holding company’s

15 banking subsidiaries were principally conducted on

16 the later of July 1, 1996, or the date on which the

17 company became a bank holding company.’’.

Æ

HR 3129 IH——2

HR 3129 IH——3