State law referred to in subparagraph (A)
which is enacted after the date of the enact-
ment of the Interstate Banking Efficiency Act
of 1993, such subparagraph shall not apply
with respect to any provision of such law which
allows the establishment of a branch through an
acquisition referred to in such subparagraph
only if the bank to be acquired has been in ex-
istence for more than 5 years as of the date of
the transaction.
‘‘(C) STATE LAWS ON BANKS APPLY TO
BRANCHES.—For purposes of this paragraph,
any law of a host State which—
‘‘(i) is in existence on the date of the
enactment of the Interstate Banking Effi-
ciency Act of 1993; and
‘‘(ii) allows an out-of-State bank to
establish a bank in the host State only by
acquiring an existing bank in the host
State,
shall be deemed to apply to the establishment
of a branch in the host State by an out-of-State
bank.
‘‘(9) DEFINITIONS.—For purposes of this sub-
section—
‘‘(A) HOST STATE.—The term ‘host State’
means the State in which a national bank es-
tablishes 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 meaning given to such term in sec-
tion 3(c)(2) of the Federal Deposit Insurance
Act.
‘‘(C) OUT-OF-STATE
BANK.—The term
‘out-of-State bank’ means, with respect to any
State, a bank the main office of which is lo-
cated outside the State.’’.
SEC. 103. 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 3 years after the date of enact-
ment of the Interstate Banking Efficiency Act of
1993, an insured State bank that is adequately cap-
italized (as defined under section 38 of the Federal
Deposit Insurance Act) and adequately managed
may establish or acquire, and operate, a branch lo-
cated outside the State in which the bank is char-
tered if authorized by the law of the State in which
the bank is chartered, subject to paragraphs (5),
(6), (9), and (10).
‘‘(4) APPLICABLE LAW.—
‘‘(A) IN GENERAL.—Subject to paragraph
(10), any branch of an out-of-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.—No provision of this subsection
shall be construed as limiting 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 to be
located in a State which has enacted, during
the period beginning on January 1, 1990, and
ending 3 years after the date of enactment of
this subsection, a law that applies equally to na-
tional and State banks and that expressly pro-
hibits 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 this
subsection.
‘‘(6) STATE ELECTION TO PERMIT INTERSTATE
BRANCHING.—
‘‘(A) DURING
THE
3-YEAR
PERIOD
FOL-
LOWING ENACTMENT.—A State bank may es-
tablish or acquire, and operate, a branch out-
side the State in which the main office of the
bank is located, subject to the provisions of this
subsection, before the expiration of the 3-year
period described in paragraph (3), if the State
in which the branch will be located enacts a law
during that period expressly permitting inter-
state branching by all national and State banks
before the expiration of the time period de-
scribed in paragraph (3).
‘‘(B) AFTER THE 3-YEAR PERIOD FOLLOW-
ING ENACTMENT.—A State that originally elect-
ed, pursuant to paragraph (5), to prohibit
‘‘(8) CONCENTRATION LIMITS.—
‘‘(A) IN GENERAL.—The home State bank-
ing authority and the appropriate Federal
banking agency may not approve an acquisition
under paragraph (1)(A) by a bank of a branch
located in another State if—
‘‘(i) the bank controls, or upon com-
pletion of the acquisition would control,
more than 10 percent of the total amount
of insured depository institution deposits in
the United States, as determined under
regulations of the Board of Governors of
the Federal Reserve System; or
‘‘(ii) the bank controls, or upon com-
pletion of the acquisition would control, 30
percent or more of the total amount of in-
sured depository institution deposits in the
State in which the branch to be acquired
is located, as determined under regulations
of the Board of Governors of the Federal
Reserve System,
except that a State may waive the applicability
of this subparagraph.
‘‘(B) NOT APPLICABLE TO OUT-OF-STATE
BRANCHING.—Subparagraph 
(A) 
shall 
not
apply to the establishment of new branches lo-
cated outside the State where the main office of
the bank is located.
‘‘(9) APPLICABILITY
OF
DEPOSIT
CAPS
AND
ANTITRUST LAWS.—No provision of this subsection
shall be construed as affecting—
‘‘(A) the authority of any State to limit the
percentage of the total amount of insured de-
pository institution deposits in the State which
may be held or controlled by any bank to the
extent the application of such limitation does
not discriminate against out-of-State banks or
bank holding companies; or
‘‘(B) the applicability of any Federal anti-
trust law or any State antitrust law that does
not discriminate against out-of-State banks or
bank holding companies.
‘‘(10) APPLICABILITY OF STATE LAW ON THE
FORM OF ACQUISITION.—
‘‘(A) IN
GENERAL.—Notwithstanding the
preceding paragraphs of this subsection and
subject to subparagraph (B), any law of a host
State which—
‘‘(i) is in existence on the date of the
enactment of the Interstate Banking Effi-
ciency Act of 1993 or is enacted after such
date; and
‘‘(ii) allows an out-of-State bank to
establish a branch in the host State only
by acquiring an existing bank or branch in
the host State,
shall apply with respect to the establishment or
acquisition of a branch in the host State in ac-
cordance with this subsection.
‘‘(B) INAPPLICABILITY OF CERTAIN PROVI-
SIONS
OF
STATE
LAW.—In the case of any
State law referred to in subparagraph (A)
which is enacted after the date of the enact-
ment of the Interstate Banking Efficiency Act
of 1993, such subparagraph shall not apply
with respect to any provision of such law which
allows the establishment of a branch through an
acquisition referred to in such subparagraph
only if the bank has been in existence for more
than 5 years as of the date of the transaction.
‘‘(C) STATE LAWS ON BANKS APPLY TO
BRANCHES.—For purposes of this paragraph,
any law of a host State which—
‘‘(i) is in existence on the date of the
enactment of the Interstate Banking Effi-
ciency Act of 1993; and
‘‘(ii) allows an out-of-State bank to
establish a bank in the host State only by
acquiring an existing bank in the host
State,
shall be deemed to apply to the establishment
of a branch in the host State by an out-of-State
bank.
‘‘(11) COORDINATION
OF
EXAMINATION
AU-
THORITY.—
‘‘(A) IN GENERAL.—A host State bank su-
pervisory or regulatory authority may examine
a branch established in the host State by banks
chartered by another State for the purpose of
determining compliance with host State laws re-
garding banking, taxation, community reinvest-
ment, fair lending, consumer protection, and
permissible activities and to ensure that the ac-
tivities of the branch are conducted in a man-
ner consistent with sound banking principles
and do not constitute a serious risk to the safe-
ty 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 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 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 to 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.—No provision of
this subsection shall be construed as limit-
ing in any way the authority of the appro-