I
103D CONGRESS
1ST SESSION
H. R. 459
To provide for nationwide banking and branching.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 6, 1993
Mr. HOAGLAND (for himself and Mr. MCCOLLUM) introduced the following
bill; which was referred to the Committee on Banking, Finance and
Urban Affairs
A BILL
To provide for nationwide banking and branching.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Nationwide Banking
and Branching Act of 1993’’.
SEC. 2. NATIONWIDE BANKING.
(a) INTERSTATE ACQUISITIONS.—Section 3(d) of the
Bank Holding Company Act of 1956 (12 U.S.C. 1842(d))
is amended to read as follows:
‘‘(d) INTERSTATE ACQUISITIONS.—
‘‘(1) IN GENERAL.—The Board may approve an
application under this section by a bank holding
company or foreign bank to acquire, directly or indi-
rectly, any voting shares of, interest in or all or sub-
stantially all of the assets of any additional insured
depository institution (as defined in section 3 of the
Federal Deposit Insurance Act) or bank holding
company located in any State.
‘‘(2) STATE LAW.—Any acquisition described in
paragraph (1) that has been approved under this
section may be consummated notwithstanding any
State law that would prohibit or otherwise limit such
acquisition on the basis of—
‘‘(A) the location or size of the acquiring
company, foreign bank, or subsidiary of such
company or foreign bank;
‘‘(B) the number of insured depository in-
stitution subsidiaries of such company or for-
eign bank; or
‘‘(C) any other factor that, directly or indi-
rectly has the effect of prohibiting or limiting
the acquisition of shares or control of an in-
sured depository institution or bank holding
company located in that State by an out-of-
State bank holding company or foreign bank if
such factor is not applied with similar effect in
the case of acquisitions of insured depository in-
stitutions or bank holding companies located in
such State by bank holding companies located
in the State.’’.
(b) EFFECTIVE DATE.—The amendment made by
this section shall take effect on the date of the enactment
of this Act.
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 follow-
ing:
‘‘(d) 
INTERSTATE
BRANCHING
BY
NATIONAL
BANKS.—
‘‘(1) IN GENERAL.—
‘‘(A) APPROVALS
AUTHORIZED.—Begin-
ning 2 years after the date of the enactment of
the Nationwide Banking and Branching Act of
1993, the Comptroller of the Currency may ap-
prove an application under this subsection
which will permit a national bank to establish
or acquire, and operate, branches located out-
side the State in which the main office of such
bank is located, subject to paragraphs (2), (3),
and (5).
‘‘(B) CONDITIONS.—In determining wheth-
er to grant approval under subparagraph (A),
the Comptroller of the Currency shall consider
the bank’s rating under the Community Rein-
vestment Act of 1977.
‘‘(C) APPLICABLE LAW.—
‘‘(i) IN
GENERAL.—Except with re-
gard to State tax laws, any branch estab-
lished or acquired under subparagraph (A)
shall be subject to the laws of the host
State as if it were a branch of a national
bank with its main office in that State.
‘‘(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 require-
ments that are not discriminatory in na-
ture 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 an-
other State from establishing or operating
a branch within the host State if that na-
tional bank materially fails to comply with
the filing requirements.
‘‘(2) STATE
ELECTION
TO
PROHIBIT
INTER-
STATE BRANCHING.—
‘‘(A) IN
GENERAL.—The provisions of
paragraph (1) shall not apply to branches lo-
cated or to be located in a State which has en-
acted, during the period beginning on the date
of the enactment of this Act, and ending 2
years after the date of the enactment of this
Act, a law that applies equally to national and
State banks and that expressly prohibits all
out-of-State banks from establishing or acquir-
ing branches located in that State.
‘‘(B) EFFECT
OF
PROHIBITION.—A na-
tional bank that has its main office in a State
that has in effect a prohibition under subpara-
graph (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
2-YEAR
PERIOD
FOL-
LOWING ENACTMENT.—The Comptroller of the
Currency may approve an application under
paragraph (1)(A) before the expiration of the 2-
year period described in paragraph (1)(A), if
the State in which the branch is or will be lo-
cated enacts a law during that period (in which
case paragraph (2)(A) shall not apply to such
State) expressly permitting the establishment
and acquisition of interstate branches in that
State by all national and State banks before the
expiration of the time period described in para-
graph (1)(A).
‘‘(B) STATE
PERMITTED
TO
AUTHORIZE
INTERSTATE
BRANCHING
AFTER
PROHIBITING
INTERSTATE BRANCHING.—A State that origi-
nally elected, pursuant to paragraph (2), to pro-
hibit interstate branching may nonetheless elect
at any later time to permit interstate branching
if such State enacts a law expressly permitting
the establishment and acquisition of interstate
branches in that State by all national and State
banks.
‘‘(4) STATE IMPOSED CONDITIONS ON INTER-
STATE BRANCHING.—A State may require a bank
submitting an application under this subsection to
file a copy of the application with the host State
banking authority in a timely manner (and the
Comptroller of the Currency shall consider any time-
ly comments of the host State prior to approving
that application).
‘‘(5) DEFINITIONS.—For purposes of this sub-
section—
‘‘(A) HOST STATE.—The term ‘host State’
means the State in which a national bank es-
tablishes, acquires, or maintains a branch other
than the State in which the bank has its main
office and is engaging in banking business.
‘‘(B) 
INSURED
DEPOSITORY
INSTITU-
TION.—The term ‘insured depository institu-
tion’ has the same meaning as in section 3 of
the Federal Deposit Insurance Act.
‘‘(6) STATE
TAXATION
AUTHORITY
NOT
AF-
FECTED.—No provision of this subsection shall be
construed to affect the authority of any State or po-
litical subdivision of any State to apply any tax or
method of taxation to a national, State, or foreign
bank, or a bank holding company, when such tax or
tax method is otherwise permissible by or under the
Constitution of the United States or other Federal
law.’’.
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 2 years after the date of the en-
actment of the Nationwide Banking and Branching
Act of 1993, an insured State bank may establish or
acquire, and operate, branches located outside the
State in which the bank is chartered if authorized by
the law of the State in which the bank is chartered.
‘‘(4) APPLICABLE LAW.—
‘‘(A) IN GENERAL.—Except with regard to
State tax laws, any branch of an out-of-State
State bank shall be subject to the laws of the
host State as if such branch were a branch of
a bank chartered by that State.
‘‘(B) ACTIVITIES OF BRANCHES.—An in-
sured State bank that establishes a branch or
branches pursuant to 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 insured bank chartered by an-
other State that wishes to establish a branch
within the host State to comply with filing re-
quirements that are not discriminatory in na-
ture 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 re-
quirements.
‘‘(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
INTER-
STATE BRANCHING.—
‘‘(A) IN
GENERAL.—The provisions of
paragraph (3) shall not apply to branches lo-
cated or to be located in a State which has en-
acted, during the period beginning on the date
of the enactment of the Nationwide Banking
and Branching Act of 1993, and ending 2 years
after the date of the enactment of such Act, 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 under subparagraph (A)
may not acquire or establish a branch located
in any other State under the provisions of para-
graph (3) or paragraph (6) of this subsection.
‘‘(6) STATE ELECTION TO PERMIT INTERSTATE
BRANCHING.—
‘‘(A) DURING
THE
2-YEAR
PERIOD
FOL-
LOWING ENACTMENT.—A State bank may es-
tablish or acquire and operate a branch outside
the State in which the main office of the bank
is located, before the expiration of the 2-year
period described in paragraph (3), if the State
in which the branch is or will be located enacts
a law during that period (in which case para-
graph (5)(A) shall not apply to such State) ex-
pressly permitting the establishment and acqui-
sition of interstate branches in that State by all
national and State banks before the expiration
of the time period described in paragraph (3).
‘‘(B) STATE
PERMITTED
TO
AUTHORIZE
INTERSTATE
BRANCHING
AFTER
PROHIBITING
INTERSTATE BRANCHING.—A State that origi-
nally elected, pursuant to paragraph (5), to pro-
hibit interstate branching may nonetheless elect
at any later time to permit interstate branching
if such State enacts a law expressly permitting
the establishment and acquisition of interstate
branches in that State by all national and State
banks.
‘‘(7) STATE IMPOSED CONDITIONS ON INTER-
STATE BRANCHING.—
‘‘(A) A State may require a bank submit-
ting an application under the authority of para-
graph (3) or paragraph (6) of this subsection to
file a copy of the application with the host
State banking authority in a timely manner
(and the home State banking authority and the
appropriate Federal banking agency shall con-
sider any timely comments of the host State
prior to approving that application).
‘‘(B) A State may impose other conditions
on a branch established or acquired under para-
graph (3) or paragraph (6) if—
‘‘(i) the conditions do not discriminate
against out-of-State State banks or bank
holding companies; and
‘‘(ii) the imposition of the conditions
is not preempted by Federal law.
‘‘(8) COORDINATION OF EXAMINATION AUTHOR-
ITY.—
‘‘(A) IN GENERAL.—A host State bank su-
pervisory or regulatory authority may examine
branches established or acquired in the host
State by banks chartered by another State for
the purpose of determining compliance with
host State laws regarding 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 sub-
paragraph (A) determines that there is a viola-
tion of host State law concerning the activities
being conducted by the State branch or that the
branch is being operated in a manner not con-
sistent with sound banking principles or in an
unsafe and unsound manner, such host State
bank authority may undertake such enforce-
ment actions or proceedings as would be per-
mitted under host State law as if the branch in
question were a bank chartered by that host
State.
‘‘(C) 
COOPERATIVE
AGREEMENT.—The
State bank authorities from one or more States
are authorized to enter into cooperative agree-
ments of facilitate State regulatory supervision
of State banks, including cooperative agree-
ments relating to the coordination of examina-
tions and joint participation in examinations.
‘‘(D) FEDERAL
REGULATORY
AUTHOR-
ITY.—
‘‘(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 AGREE-
MENTS.—If the appropriate Federal bank-
ing authority determines that the States
have failed to reach an agreement under
subparagraph (C), or that such an agree-
ment fails to adequately protect the Fed-
eral Deposit Insurance Fund, the appro-
priate Federal banking authority shall not
defer to State examinations of the out-of-
State branches.
‘‘(9) HOST STATE DEFINED.—For purposes of
this subsection, 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 engaging in banking business.
‘‘(10) STATE TAXATION AUTHORITY NOT AF-
FECTED.—No provision of paragraphs (3) through
(9) of this subsection shall be construed to affect the
authority of any State or political subdivision of any
State to apply any tax or method of taxation to a
national, State, or foreign bank, or a bank holding
company, when such tax or tax method is otherwise
permissible by or under the Constitution of the Unit-
ed States or other Federal law.’’.
SEC. 5. 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 estab-
lish and operate—
‘‘(A) a Federal branch or agency, with the
approval of the Comptroller of the Currency, in
consultation with the Board, in any State out-
side its home State to the extent that such es-
tablishment 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 reg-
ulatory authority of the State, in any State out-
side its home State to the extent that such es-
tablishment and operation would be permitted
under section 18(d) of the Federal Deposit In-
surance 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 re-
viewing an application under paragraph (1), the
Board, in the cases of State branches and agencies,
and the Comptroller of the Currency, in cases of
Federal branches and agencies—
‘‘(A) shall apply the standards for estab-
lishment of a foreign bank office in the United
States under section 7(d); and
‘‘(B) may not approve an application un-
less it determines that the foreign bank’s finan-
cial resources, including the capital level, are
equivalent to those required for a domestic
bank to be approved for branching under sec-
tion 5155 of the Revised Statutes and section
18(d) of the Federal Deposit Insurance Act
and, in the case of the first branching applica-
tion by such foreign bank, after consultation
with the Secretary of the Treasury regarding
capital equivalency. For purposes of determin-
ing capital equivalency under this paragraph,
the guidelines established and reported to the
Congress pursuant to section 7(j) of this Act
shall be applied.
‘‘(3) ADDITIONAL AUTHORITY FOR INTERSTATE
BRANCHES AND AGENCIES OF FOREIGN BANKS.—
Notwithstanding paragraph (1) of this subsection
and section 4(h) of this Act, a foreign bank may,
with the approval of the Comptroller of the Cur-
rency, establish and operate a Federal branch or
Federal agency or, with the approval of the Board
and the appropriate State bank supervisor, a State
branch or State agency in any State outside of the
foreign bank’s home State if—
‘‘(A) the establishment and operation of a
branch or agency is expressly permitted by the
State in which the branch or agency is to be es-
tablished; and
‘‘(B) in the case of a Federal or State
branch, the branch receives only such deposits
as would be permissible for a corporation orga-
nized under section 25(a) of the Federal Re-
serve Act.’’.
(b) HOME STATE DETERMINATIONS.—
(1) METHOD OF DETERMINING.—Section 4(h)
of the International Banking Act of 1978 (12 U.S.C.
3102(h)) is amended by adding at the end the fol-
lowing sentence: ‘‘For the purposes of section
5155(c) of the Revised Statutes (12 U.S.C. 36(c)),
the home State of a foreign bank shall be its home
State as determined under section 5(c) of this Act.’’.
(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 the 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 1 State, is that State.’’.
SEC. 6. PERMISSIBLE COMBINATION.
(a) SUBSIDIARY BANKS.—Section 3 of the Bank
Holding Company Act of 1956 (12 U.S.C. 1842) is
amended by adding at the end of the following subsection:
‘‘(h) PERMISSIBLE COMBINATION.—
‘‘(1) IN GENERAL.—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 on or after 2 years from the date
of enactment of the Nationwide Banking and
Branching Act of 1993. Any combination effected in
accordance with this subsection shall be permissible
within a State as of 2 years after the date of enact-
ment of the Nationwide Banking and Branching Act
of 1993, unless such State has enacted a law in ac-
cordance with section 5155(d)(2)(A) of the Revised
Statutes or section 18(d)(5)(A) of the Federal De-
posit Insurance Act 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.
‘‘(2) BRANCHING AUTHORITY.—The combined
bank may, subject to compliance with all applicable
Federal or State laws relating to the retention, es-
tablishment, acquisition, or operation of a branch,
retain, establish, acquire, and operate additional
branches at any location where the combined bank
or any of the parties to the combination could, if
they had not been parties to such combinations, have
retained, established, acquired, or operated a branch.
‘‘(3) APPLICABLE LAW.—
‘‘(A) NATIONAL BANKS.—Except with re-
gard to State tax laws, any branch of a national
bank established or acquired in connection with
a consolidation or other transaction under para-
graph (1) shall be subject to the laws of the
host State as if it were a branch of a national
bank with its main office in that State.
‘‘(B) STATE BANKS.—Except with regard
to State tax laws, any branch of an out-of-State
State bank shall be subject to the laws of the
host State as if such branch were a branch of
a bank chartered by that State.
‘‘(4) 2-YEAR
TRANSITION
PERIOD.—A bank
holding company having subsidiary banks located in
more than 1 State may combine 2 or more such
banks into a single bank by means of merger, con-
solidation, or other transaction before the end of the
2-year period described in paragraph (1), if each
State in which the banks involved in the transaction
are located enacts a law during that period (in which
case section 5155(d)(2)(A) of the Revised Statutes
or section 18(d)(5)(A) of the Federal Deposit Insur-
ance Act shall not apply to such States) expressly
permitting interstate mergers and consolidations by
all national and State banks before the expiration of
the time period described in paragraph (1).
‘‘(5) STATE
TAXATION
AUTHORITY
NOT
AF-
FECTED.—No provision of this subsection shall be
construed to affect the authority of any State or po-
litical subdivision of any State to apply any tax or
method of taxation to a national, State, or foreign
bank, or a bank holding company, when such tax or
tax method is otherwise permissible by or under the
Constitution of the United States or other Federal
law.’’.
(b) NATIONAL BANKING ASSOCIATIONS.—The Act
entitled ‘‘An Act to provide for the consolidation of na-
tional banking associations’’, approved November 7, 1918
(12 U.S.C. 215 et seq.), is amended—
(1) in the first sentence of subsection (a) of the
first section, by inserting ‘‘, or in any State in which
a bank is authorized to engage in an interstate con-
solidation pursuant to section 3(h) of the Bank
Holding Company Act of 1956’’ after ‘‘located in the
same State’’;
(2) by adding at the end of the first section the
following new subsection:
‘‘(h) An interstate consolidation pursuant to this sec-
tion shall be undertaken in accordance with the limitations
and requirements set forth in section 3(h) of the Bank
Holding Company Act of 1956 as if such section 3(h) ap-
plied to such consolidation. The procedures, limitations,
and requirements set forth in this section apply to inter-
state consolidations undertaken pursuant to and in ac-
cordance with such section 3(h) to the extent such proce-
dures, limitations, and requirements of this section are not
inconsistent with such section 3(h).’’;
(3) in the first sentence of section 2(a)—
(A) by striking ‘‘under an agreement not
inconsistent with this subchapter’’; and
(B) by inserting ‘‘or within any State in
which a bank is authorized to engage in an
interstate merger pursuant to section 3(h) of
the Bank Holding Company Act of 1956’’ after
‘‘located within the same State’’;
(4) by adding at the end of section 2 the follow-
ing new subsection:
‘‘(h) An interstate merger pursuant to this section
shall be undertaken in accordance with the limitations and
requirements set forth in section 3(h) of the Bank Holding
Company Act of 1956 as if such section 3(h) applied to
such merger. The procedures, limitations, and require-