II 

111TH CONGRESS 

1ST SESSION S. 1316 

To amend the Federal Deposit Insurance Act to modify requirements relating 

to the location of bank branches on Indian reservations, and for other 

purposes. 

IN THE SENATE OF THE UNITED STATES 

JUNE 22, 2009 

Mr. INOUYE (for himself, Mr. JOHNSON, Mr. DODD, and Mr. LIEBERMAN) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs 

A BILL 

To amend the Federal Deposit Insurance Act to modify 

requirements relating to the location of bank branches 

on Indian reservations, 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 ‘‘Indian Reservation 

5 Bank Branch Act of 2009’’. 


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1 SEC. 2. REGULATIONS GOVERNING INSURED DEPOSITORY 

2 INSTITUTIONS. 

3 Section 18(d) of the Federal Deposit Insurance Act 

4 (12 U.S.C. 1828(d)) is amended by adding at the end the 

5 following: 

6 ‘‘(5) ELECTION BY INDIAN TRIBES TO PERMIT

7 BRANCHING OF BANKS ON INDIAN RESERVATIONS.— 

8 ‘‘(A) DEFINITIONS.—In this paragraph, 

9 the following definitions shall apply: 

10 ‘‘(i) DE NOVO BRANCH.—The term 

11 ‘de novo branch’ means a branch of a 

12 State bank that— 

13 ‘‘(I) is originally established by 

14 the State bank as a branch; and 

15 ‘‘(II) does not become a branch 

16 of the State bank as a result of— 

17 ‘‘(aa) the acquisition by the 

18 State bank of an insured deposi19 tory institution (or a branch of 

20 an insured depository institu21 tion); or 

22 ‘‘(bb) the conversion, merg23 er, or consolidation of any such 

24 institution or branch. 

25 ‘‘(ii) HOME STATE.— 


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1 ‘‘(I) IN GENERAL.—The term 

2 ‘home State’ means the State in 

3 which the main office of a State bank 

4 is located. 

5 ‘‘(II) BRANCHES ON INDIAN RES6 ERVATIONS.—The term ‘home State’ 

7 with respect to a State bank, the main 

8 office of which is located within the 

9 boundaries of an Indian reservation 

10 (in a case in which State law permits 

11 the chartering of such a main office 

12 on an Indian reservation), means— 

13 ‘‘(aa) the State in which the 

14 Indian reservation is located; or 

15 ‘‘(bb) for an Indian reserva16 tion that is located in more than 

17 1 State, the State in which the 

18 portion of the Indian reservation 

19 containing the main office of the 

20 State bank is located. 

21 ‘‘(iii) HOST RESERVATION.—The term 

22 ‘host reservation’, with respect to a bank, 

23 means an Indian reservation located in a 

24 State other than the home State of the 


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1 bank in which the bank maintains, or 

2 seeks to establish and maintain, a branch. 

3 ‘‘(iv) INDIAN RESERVATION.— 

4 ‘‘(I) IN GENERAL.—The term 

5 ‘Indian reservation’ means land sub6 ject to the jurisdiction of an Indian 

7 tribe. 

8 ‘‘(II) INCLUSIONS.—The term 

9 ‘Indian reservation’ includes— 

10 ‘‘(aa) any public domain In11 dian allotment; 

12 ‘‘(bb) any land area located 

13 within the outer geographic 

14 boundaries recognized as an In15 dian reservation by a Federal 

16 treaty, Federal regulation, deci17 sion or order of the Bureau of 

18 Indian Affairs or any successor 

19 agency thereto, or statute in 

20 force with respect to a federally 

21 recognized tribal nation; 

22 ‘‘(cc) any former Indian res23 ervation in the State of Okla24 homa; and 


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1 ‘‘(dd) any land held by a 

2 Native village, Native group, Re3 gional Corporation, or Village 

4 Corporation under the Alaska 

5 Native Claims Settlement Act 

6 (43 U.S.C. 1601 et seq.). 

7 ‘‘(v) INDIAN TRIBE.—The term ‘In8 dian tribe’ has the same meaning as in sec9 tion 4 of the Indian Self-Determination 

10 and Education Assistance Act (25 U.S.C. 

11 450b). 

12 ‘‘(vi) TRIBAL GOVERNMENT.— 

13 ‘‘(I) IN GENERAL.—The term 

14 ‘tribal government’ means the busi15 ness council, tribal council, or similar 

16 legislative or governing body of an In17 dian tribe— 

18 ‘‘(aa) the members of which 

19 are representatives elected by the 

20 members of the Indian tribe; and 

21 ‘‘(bb) that is empowered to 

22 enact laws applicable within the 

23 Indian reservation of the Indian 

24 tribe. 


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1 ‘‘(II) MULTITRIBAL RESERVA2 TIONS.—The term ‘tribal govern3 ment’, with respect to an Indian res4 ervation within the boundaries of 

5 which are located more than 1 Indian 

6 tribe, each of which has a separate 

7 council, means a joint business council 

8 or similar intertribal governing council 

9 that includes representatives of each 

10 applicable Indian tribe. 

11 ‘‘(III) INCLUSION.—The term 

12 ‘tribal government’ includes a gov13 erning body of any Regional Corpora14 tion or Village Corporation (as defined 

15 in section 3 of the Alaska Native 

16 Claims Settlement Act (43 U.S.C. 

17 1602)). 

18 ‘‘(B) APPROVAL BY CORPORATION.—Sub19 ject to subparagraph (C), in addition to any 

20 other authority under this section to approve an 

21 application to establish a branch within the 

22 boundaries of an Indian reservation, the Cor23 poration may approve an application of a State 

24 bank to establish and operate a de novo branch 

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1 ervations (regardless of whether the Indian res2 ervations are located within the home State of 

3 the State bank), if there is in effect within the 

4 host reservation a law enacted by the tribal gov5 ernment of the host reservation that— 

6 ‘‘(i) applies with equal effect to all 

7 banks located within the host reservation; 

8 and 

9 ‘‘(ii) specifically permits any in-State 

10 or out-of-State bank to establish within the 

11 host reservation a de novo branch. 

12 ‘‘(C) CONDITIONS.— 

13 ‘‘(i) ESTABLISHMENT.—An applica14 tion by a State bank to establish and oper15 ate a de novo branch within a host reserva16 tion shall not be subject to the require17 ments and conditions applicable to an ap18 plication for an interstate merger trans19 action under paragraphs (1), (3), and (4) 

20 of section 44(b). 

21 ‘‘(ii) OPERATION.—Subsections (c) 

22 and (d)(2) of section 44 shall not apply 

23 with respect to a branch of a State bank 

24 that is established and operated pursuant 


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1 to an application approved under this 

2 paragraph. 

3 ‘‘(iii) PROHIBITION.— 

4 ‘‘(I) IN GENERAL.—Except as 

5 provided in subclause (II), no State 

6 nonmember bank that establishes or 

7 operates a branch on 1 or more In8 dian reservations solely pursuant to 

9 paragraph (5) may establish any addi10 tional branch outside of such Indian 

11 reservation in any State in which the 

12 Indian reservation is located. 

13 ‘‘(II) EXCEPTION.—Subclause (I) 

14 shall not apply if a State nonmember 

15 bank described in that subclause 

16 would be permitted to establish and 

17 operate an additional branch under 

18 any other provision of this section, 

19 without regard to the establishment or 

20 operation by the State nonmember 

21 bank of a branch on the subject In22 dian reservation.’’. 


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1 SEC. 3. BRANCH BANKS. 

2 Section 5155 of the Revised Statutes of the United 

3 States (12 U.S.C. 36) is amended by inserting after sub4 section (g) the following: 

5 ‘‘(h) ELECTION BY INDIAN TRIBES TO PERMIT

6 BRANCHING OF NATIONAL BANKS ON INDIAN RESERVA7 TIONS.— 

8 ‘‘(1) DEFINITIONS.—In this subsection, the fol9 lowing definitions shall apply: 

10 ‘‘(A) DE NOVO BRANCH.—The term ‘de 

11 novo branch’ means a branch of a national 

12 bank that— 

13 ‘‘(i) is originally established by the na14 tional bank as a branch; and 

15 ‘‘(ii) does not become a branch of the 

16 national bank as a result of— 

17 ‘‘(I) the acquisition by the na18 tional bank of an insured depository 

19 institution (or a branch of an insured 

20 depository institution); or 

21 ‘‘(II) the conversion, merger, or 

22 consolidation of any such institution 

23 or branch. 

24 ‘‘(B) HOME STATE.— 


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1 ‘‘(i) IN GENERAL.—The term ‘home 

2 State’ means the State in which the main 

3 office of a national bank is located. 

4 ‘‘(ii) BRANCHES ON INDIAN RESERVA5 TIONS.—The term ‘home State’, with re6 spect to a national bank, the main office of 

7 which is located within the boundaries of 

8 an Indian reservation, means— 

9 ‘‘(I) the State in which the In10 dian reservation is located; or 

11 ‘‘(II) for an Indian reservation 

12 that is located in more than 1 State, 

13 the State in which the portion of the 

14 Indian reservation containing the 

15 main office of the national bank is lo16 cated. 

17 ‘‘(C) HOST RESERVATION.—The term 

18 ‘host reservation’, with respect to a national 

19 bank, means an Indian reservation located in a 

20 State other than the home State of the bank in 

21 which the bank maintains, or seeks to establish 

22 and maintain, a branch. 

23 ‘‘(D) INDIAN RESERVATION.— 


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1 ‘‘(i) IN GENERAL.—The term ‘Indian 

2 reservation’ means land subject to the ju3 risdiction of an Indian tribe. 

4 ‘‘(ii) INCLUSIONS.—The term ‘Indian 

5 reservation’ includes— 

6 ‘‘(I) any public domain Indian al7 lotment; 

8 ‘‘(II) any land area located with9 in the outer geographic boundaries 

10 recognized as an Indian reservation by 

11 a Federal treaty, Federal regulation, 

12 decision or order of the Bureau of In13 dian Affairs or any successor agency 

14 thereto, or statute in force with re15 spect to a federally recognized tribal 

16 nation; 

17 ‘‘(III) any former Indian reserva18 tion in the State of Oklahoma; and 

19 ‘‘(IV) any land held by a Native 

20 village, Native group, Regional Cor21 poration, or Village Corporation under 

22 the Alaska Native Claims Settlement 

23 Act (43 U.S.C. 1601 et seq.). 

24 ‘‘(E) INDIAN TRIBE.—The term ‘Indian 

25 tribe’ has the same meaning as in section 4 of 


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1 the Indian Self-Determination and Education 

2 Assistance Act (25 U.S.C. 450b). 

3 ‘‘(F) TRIBAL GOVERNMENT.— 

4 ‘‘(i) IN GENERAL.—The term ‘tribal 

5 government’ means the business council, 

6 tribal council, or similar legislative or gov7 erning body of an Indian tribe— 

8 ‘‘(I) the members of which are 

9 representatives elected by the mem10 bers of the Indian tribe; and 

11 ‘‘(II) that is empowered to enact 

12 laws applicable within the Indian res13 ervation of the Indian tribe. 

14 ‘‘(ii) MULTITRIBAL RESERVATIONS.— 

15 The term ‘tribal government’, with respect 

16 to an Indian reservation within the bound17 aries of which are located more than 1 In18 dian tribe, each of which has a separate 

19 council, means a joint business council or 

20 similar intertribal governing council that 

21 includes representatives of each applicable 

22 Indian tribe. 

23 ‘‘(iii) INCLUSION.—The term ‘tribal 

24 government’ includes a governing body of 

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1 poration (as defined in section 3 of the 

2 Alaska Native Claims Settlement Act (43 

3 U.S.C. 1602)). 

4 ‘‘(2) APPROVAL BY COMPTROLLER.—Subject to 

5 paragraph (3), in addition to any other authority 

6 under this section to approve an application to es7 tablish a national bank branch within the boundaries 

8 of an Indian reservation, the Comptroller may ap9 prove an application of a national bank to establish 

10 and operate a de novo branch within the boundaries 

11 of an Indian reservation (regardless of whether the 

12 Indian reservation is located within the home State 

13 of the national bank), if there is in effect within the 

14 host reservation a law enacted by the tribal govern15 ment of the host reservation that— 

16 ‘‘(A) applies with equal effect to all banks 

17 located within the host reservation; and 

18 ‘‘(B) specifically permits any in-State or 

19 out-of-State bank to establish within the host 

20 reservation a de novo branch. 

21 ‘‘(3) CONDITIONS.— 

22 ‘‘(A) ESTABLISHMENT.—An application by 

23 a national bank to establish and operate a de 

24 novo branch within a host reservation shall not 

25 be subject to the requirements and conditions 


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1 applicable to an application for an interstate 

2 merger transaction under paragraphs (1), (3), 

3 and (4) of section 44(b) of the Federal Deposit 

4 Insurance Act (12 U.S.C. 1831u(b)). 

5 ‘‘(B) OPERATION.—Subsections (c) and 

6 (d)(2) of section 44 of that Act (12 U.S.C. 

7 1831u) shall not apply with respect to a branch 

8 of a national bank that is established and oper9 ated pursuant to an application approved under 

10 this subsection. 

11 ‘‘(C) PROHIBITION.— 

12 ‘‘(i) IN GENERAL.—Except as pro13 vided in clause (ii), no national bank that 

14 establishes or operates a branch on 1 or 

15 more Indian reservations solely pursuant 

16 to subsection (h) may establish any addi17 tional branch outside of such Indian res18 ervation in the State in which the Indian 

19 reservation is located. 

20 ‘‘(ii) EXCEPTION.—Clause (i) shall 

21 not apply if a national bank described in 

22 that clause would be permitted to establish 

23 and operate an additional branch under 

24 any other provision of this section or other 

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1 lishment or operation by the national bank 

2 of a branch on the subject Indian reserva3 tion.’’. 

Æ 


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