I
103D CONGRESS
1ST SESSION
H. R. 2235
To amend the Bank Holding Company Act of 1956, the Revised Statutes
of the United States, and the Federal Deposit Insurance Act to provide
for interstate banking and branching.
IN THE HOUSE OF REPRESENTATIVES
MAY 20, 1993
Mr. VENTO (for himself, Mr. NEAL of North Carolina, and Mr. MCCOLLUM)
introduced the following bill; which was referred to the Committee on
Banking, Finance and Urban Affairs
A BILL
To amend the Bank Holding Company Act of 1956, the
Revised Statutes of the United States, and the Federal
Deposit Insurance Act to provide for interstate 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 ‘‘Interstate Banking Ef-
ficiency Act of 1993’’.
TITLE I—INTERSTATE BANKING
AND BRANCHING
SEC. 101. 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 AND BRANCHING.—
‘‘(1) IN GENERAL.—Subject to paragraphs (4),
(5), (6), and (7), the Board may approve an applica-
tion under this section by a bank holding company
or foreign bank to acquire, directly or indirectly, any
voting shares of, interest in, or all or substantially
all of the assets of any additional insured depository
institution or bank holding company located in any
State.
‘‘(2) STATE LAW.—Subject to paragraphs (3),
(5), and (6), 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.
‘‘(3) STATE
TAXATION
AUTHORITY
NOT
AF-
FECTED.—No provision of this subsection shall be
construed as affecting the authority of any State or
political subdivision of any State to apply any tax or
method of taxation to any national bank, or a bank
holding company which controls a national bank,
when such tax or tax method is otherwise permis-
sible by or under the Constitution of the United
States or other Federal law.
‘‘(4) CONCENTRATION
LIMITS.—The Board
may not approve an application under paragraph (1)
if—
‘‘(A) the applicant 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; or
‘‘(B) the applicant controls, or upon com-
pletion of the acquisition would control, 30 per-
cent or more of the total amount of insured de-
pository institution deposits in the State in
which the bank to be acquired is located, as de-
termined under regulations of the Board, except
that a State may waive the applicability of this
subparagraph.
‘‘(5) 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.
‘‘(6) LIMITATIONS ON CONSOLIDATIONS.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), any insured depository insti-
tution acquired after the date of the enactment
of the Interstate Banking Efficiency Act of
1993 pursuant to paragraph (1) may not be a
party to any transaction under subsection (h)
before the end of the 3-year period beginning
on such date of enactment.
‘‘(B) PROVISION APPLICABLE TO CERTAIN
INSTITUTIONS.—Subparagraph (A) shall not
apply with respect to any insured depository in-
stitution the acquisition of which occurs after
the date of the enactment of the Interstate
Banking Efficiency Act of 1993 pursuant to an
application or notice filed before such date with
any appropriate Federal banking agency or
State bank supervisor.
‘‘(7) 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 or
bank holding company to establish a bank
in the host State only by acquiring an ex-
isting bank in the host State,
shall apply with respect to the establishment or
acquisition of a bank in the host State under
this subsection.
‘‘(B) INAPPLICABILITY OF CERTAIN PROVI-
SION OF STATE LAW.—In the case of any State
law referred to in subparagraph (A) which is
enacted after the date of the enactment of the
Interstate Banking Efficiency Act of 1993, such
subparagraph shall not apply with respect to
any provision of such law which allows the es-
tablishment of a bank through an acquisition
referred to in such subparagraph only if the
bank to be acquired has been in existence for
more than 5 years as of the date of the trans-
action.’’.
(b) EFFECTIVE DATE.—The amendment made by
this section shall take effect on July 1, 1994.
SEC. 102. 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 3 years after the date of the enactment of
the Interstate Banking Efficiency Act of 1993,
the Comptroller of the Currency may approve
an application under this section to allow a na-
tional bank that is adequately capitalized (as
defined under section 38 of the Federal Deposit
Insurance Act) and adequately managed to es-
tablish or acquire, and operate, a branch lo-
cated outside the State in which the main office
of such bank is located, subject to paragraphs
(3), (4), (7), and (8).
‘‘(B) CONDITIONS.—In determining wheth-
er to grant approval under subparagraph (A),
the Comptroller of the Currency shall consider
the views of the appropriate State bank officials
regarding the bank’s compliance with applicable
State community reinvestment laws.
‘‘(C) APPLICABLE LAW.—
‘‘(i) IN GENERAL.—Subject to para-
graphs (2), (7), and (8), any branch estab-
lished or acquired under subparagraph (A)
shall be subject to the laws of the host
State with respect to intrastate branching,
consumer protection, fair lending, and
community reinvestment as if it were a
branch of a bank chartered by that State,
unless such State law, is preempted by
Federal law regarding the same subject.
There shall be no discriminatory effect in
the application of such laws between a
branch of a bank chartered by the host
State and in-State branches of out-of-State
national banks. Such State laws shall be
enforced, with respect to branches of na-
tional banks by the Comptroller of the
Currency. All other laws of the host State
shall apply as if the branch was a national
bank situated 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 or its branch materially fails to
comply with the filing requirements.
‘‘(2) STATE
TAXATION
AUTHORITY
NOT
AF-
FECTED.—No provision of this subsection shall be
construed as affecting the authority of any State or
political subdivision of any State to apply any tax or
method of taxation to any national bank, including
any branch of a national bank, or any bank holding
company which controls a national bank to the ex-
tent such tax or tax method is otherwise permissible
by or under the Constitution of the United States of
America or other Federal law.
‘‘(3) STATE
ELECTION
TO
PROHIBIT
INTER-
STATE BRANCHING.—
‘‘(A) IN
GENERAL.—The provisions of
paragraph (1) 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 the enactment
of this subsection, a law that applies equally to
national and State banks and that expressly
prohibits all out-of-State banks from establish-
ing or acquiring 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.
‘‘(4) STATE ELECTION TO PERMIT INTERSTATE
BRANCHING.—
‘‘(A) DURING
THE
3-YEAR
PERIOD
FOL-
LOWING ENACTMENT.—The Comptroller of the
Currency may approve an application under
paragraph (1)(A) before the expiration of the 3-
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 expressly
permitting interstate branching by all national
and State banks before the expiration of the
time period described in paragraph (1)(A).
‘‘(B) AFTER THE 3-YEAR PERIOD FOLLOW-
ING ENACTMENT.—A State that originally elect-
ed, pursuant to paragraph (3), to prohibit
interstate branching may nonetheless elect at
any later time to permit interstate branching if
such State enacts a law expressly permitting
interstate branching by all national and State
banks.
‘‘(5) STATE IMPOSED CONDITIONS ON INTER-
STATE BRANCHING.—
‘‘(A) FILING WITH STATE BANK AUTHOR-
ITY.—A State may require a copy of an applica-
tion submitted under this section to be filed
with the host State banking authority in a time-
ly manner (and the Comptroller of the Currency
shall consider any timely comments of the host
State prior to approving that application).
‘‘(B) OTHER NONDISCRIMINATORY CONDI-
TIONS.—Subject to paragraph (7) a State may
impose other conditions on a branch established
or acquired under paragraph (1)(A) if—
‘‘(i) the conditions do not discriminate
against out-of-State banks or bank holding
companies; and
‘‘(ii) the imposition of the conditions
is not preempted by Federal law regarding
the same subject.
‘‘(6) CONCENTRATION LIMITS.—
‘‘(A) IN GENERAL.—The Comptroller 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.
‘‘(7) 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.
‘‘(8) 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 under
this subsection.
‘‘(B) INAPPLICABILITY OF CERTAIN PROVI-
SIONS
OF
STATE
LAW.—In the case of any
chartered by the host State and in-State branches of
out-of-State national banks. Such State laws shall be
enforced, with respect to branches of national banks
by the Comptroller of the Currency. All other laws
of the host State shall apply as if the branch was
a national bank situated in that State.
‘‘(5) 
PLAN
ON
MEETING
LOCAL
CREDIT
NEEDS.—The Board may not approve any applica-
tion for any consolidation or other transaction under
this subsection unless the Board has considered a
plan submitted by the applicant bank holding com-
pany for meeting local credit needs in the commu-
nities served by any bank or savings association sub-
sidiary of the company which is involved in the pro-
posed consolidation or transaction, including the ex-
tent to which the amount of the anticipated savings
attributable to the proposed consolidation or other
transaction will be available to meet such local credit
needs.’’.
SEC. 106. MINIMUM CAPITAL REQUIREMENT FOR NEW
INTERSTATE 
BANKING 
AND 
BRANCHING
POWERS.
(a) IN GENERAL.—Except as provided in subsection
(b), the amendments made by sections 101, 102, 103, 104,
and 105 shall not apply with respect to any insured depos-