Source: http://topics.law.cornell.edu/uscode/text/12/371c
Timestamp: 2013-12-11 11:10:35
Document Index: 311431539

Matched Legal Cases: ['§ 371', '§ 371', '§ 371', '§ 23', '§ 13', '§ 327', '§ 1', '§ 1', '§ 12', '§ 410', '§ 22', '§ 121', '§ 608', '§ 609', '§ 608', '§ 121', '§ 121', '§ 121', '§ 22', '§ 22', '§ 608', '§ 609']

12 USC § 371c - Banking affiliates | Title 12 - Banks and Banking | U.S. Code | LII / Legal Information Institute
USC › Title 12 › Chapter 3 › Subchapter X › § 371c › prevnext
12 USC § 371c - Banking affiliates
a derivative transaction, as defined in paragraph (3) of section 84
(b) of this title, with an affiliate, to the extent that the transaction causes a member bank or a subsidiary to have credit exposure to the affiliate;
Rebuttable presumption of control of portfolio companies.— In addition to paragraph (3), a company or shareholder shall be presumed to control any other company if the company or shareholder, directly or indirectly, or acting through 1 or more other persons, owns or controls 15 percent or more of the equity capital of the other company pursuant to subparagraph (H) or (I) of section 1843
(k)(4) of this title or rules adopted under section 122 of the Gramm-Leach-Bliley Act, if any, unless the company or shareholder provides information acceptable to the Board to rebut this presumption of control.
Collateral for certain transactions with affiliates (1)
Exemptions The provisions of this section, except subsection (a)(4) of this section, shall not be applicable to—
any transaction, subject to the prohibition contained in subsection (a)(3) of this section, with a bank—
purchasing securities issued by any company of the kinds described in section 1843
purchasing assets having a readily identifiable and publicly available market quotation and purchased at that market quotation or, subject to the prohibition contained in subsection (a)(3) of this section, purchasing loans on a nonrecourse basis from affiliated banks; and
Rules relating to banks with financial subsidiaries (1)
Financial subsidiary defined For purposes of this section and section 371c–1 of this title, the term “financial subsidiary” means any company that is a subsidiary of a bank that would be a financial subsidiary of a national bank under section 24a of this title.
Financial subsidiary treated as an affiliate For purposes of applying this section and section 371c–1 of this title, and notwithstanding subsection (b)(2) of this section or section 371c–1
(d)(1) of this title, a financial subsidiary of a bank—
Anti-evasion provision For purposes of this section and section 371c–1 of this title—
Rulemaking and additional exemptions (1)
In general.— The Board may, at its discretion, by regulation exempt transactions or relationships from the requirements of this section if—
Additional exemptions.— (i)
National banks.— The Comptroller of the Currency may, by order, exempt a transaction of a national bank from the requirements of this section if—
State banks.— The Federal Deposit Insurance Corporation may, by order, exempt a transaction of a State nonmember bank, and the Board may, by order, exempt a transaction of a State member bank, from the requirements of this section if—
Rulemaking required concerning derivative transactions and intraday credit.— (A)
In general.— Not later than 18 months after November 12, 1999, the Board shall adopt final rules under this section to address as covered transactions credit exposure arising out of derivative transactions between member banks and their affiliates and intraday extensions of credit by member banks to their affiliates.
Effective date.— The effective date of any final rule adopted by the Board pursuant to subparagraph (A) shall be delayed for such period as the Board deems necessary or appropriate to permit banks to conform their activities to the requirements of the final rule without undue hardship.
Amounts of covered transactions.— The Board may issue such regulations or interpretations as the Board determines are necessary or appropriate with respect to the manner in which a netting agreement may be taken into account in determining the amount of a covered transaction between a member bank or a subsidiary and an affiliate, including the extent to which netting agreements between a member bank or a subsidiary and an affiliate may be taken into account in determining whether a covered transaction is fully secured for purposes of subsection (d)(4). An interpretation under this paragraph with respect to a specific member bank, subsidiary, or affiliate shall be issued jointly with the appropriate Federal banking agency for such member bank, subsidiary, or affiliate.
(Dec. 23, 1913, ch. 6, § 23A, as added June 16, 1933, ch. 89, § 13,48 Stat. 183; amended Aug. 23, 1935, ch. 614, title III, § 327,49 Stat. 717; June 30, 1954, ch. 434, § 1,68 Stat. 358; Pub. L. 86–230, § 1(b),Sept. 8, 1959, 73 Stat. 457; Pub. L. 89–485, §§ 12(a), 13
(h),July 1, 1966, 80 Stat. 241, 243; Pub. L. 97–320, title IV, § 410(b),Oct. 15, 1982, 96 Stat. 1515; Pub. L. 97–457, § 22,Jan. 12, 1983, 96 Stat. 2509; Pub. L. 106–102, title I, § 121(b),Nov. 12, 1999, 113 Stat. 1378; Pub. L. 111–203, title VI, §§ 608(a), 609(a),July 21, 2010, 124 Stat. 1608, 1611.)
Pub. L. 111–203, title VI, § 609,July 21, 2010, 124 Stat. 1611, provided that, applicable with respect to any covered transaction between a bank and a subsidiary of the bank, as those terms are defined in this section, that is entered into on or after July 21, 2010, and effective 1 year after the transfer date, subsection (e) of this section is amended by striking paragraph (3) and redesignating paragraph (4) as (3). See Effective Date of 2010 Amendment note below.
Pub. L. 111–203, title VI, § 608(a), (d),July 21, 2010, 124 Stat. 1608, 1611, provided that, effective 1 year after the transfer date, this section is amended:
(i) in subparagraph (A), by inserting before the semicolon at the end the following: “, including a purchase of assets subject to an agreement to repurchase”;
(ii) in subparagraph (C), by striking out “, including assets subject to an agreement to repurchase,”;
“(G) a derivative transaction, as defined in paragraph (3) of section 84
(b) of this title, with an affiliate, to the extent that the transaction causes a member bank or a subsidiary to have credit exposure to the affiliate;”;
(C) in paragraph (2), as so redesignated, by inserting before the period at the end “, or credit exposure to an affiliate resulting from a securities borrowing or lending transaction, or derivative transaction”; and
The effective date of this Act, referred to in subsec. (b)(2)(E), probably means the effective date as provided by Pub. L. 97–320, which completely revised this section. Section 410(c) ofPub. L. 97–320set out as an Effective Date of 1982 Amendment note below, provided that this section shall apply to any transaction entered into after Oct. 15, 1982 with certain exceptions.
1999—Subsec. (b)(11). Pub. L. 106–102, § 121(b)(2), added par. (11).
Subsec. (e). Pub. L. 106–102, § 121(b)(1)(B), added subsec. (e). Former subsec. (e) redesignated (f).
Subsec. (f). Pub. L. 106–102, § 121(b)(1)(A), (3), redesignatedsubsec. (e) as (f) and added par. (3).
1983—Subsec. (d)(1). Pub. L. 97–457, § 22(1), substituted “subject to the prohibition contained in subsection (a)(3) of this section” for “except for the purchase of a low-quality asset which is prohibited”.
Subsec. (d)(6). Pub. L. 97–457, § 22(2), inserted “, subject to the prohibition contained in subsection (a)(3) of this section,” after “market quotation or”.
1982—Pub. L. 97–320amended section generally by substituting provisions in lettered subsections relating to restrictions on transactions with affiliates, collateral for such transactions, exemptions for certain transactions and rulemaking and additional exemptions, for prior undesignated paragraphs which read as follows:
“The provisions of this section shall not apply to (1) stock, bonds, debentures, or other obligations of any company of the kinds described in section 4(c)(1) of the Bank Holding Company Act of 1956, as amended [12 U.S.C. 1843
(c)(1)]; (2) stock, bonds, debentures, or other obligations accepted as security for debts previously contracted, provided that such collateral shall not be held for a period of over two years; (3) shares which are of the kinds and amounts eligible for investment by national banks under the provisions of section 24 of this title; (4) any extension of credit by a member bank to a bank holding company of which such bank is a subsidiary or to another subsidiary of such bank holding company, if made within one year after July 1, 1966, and pursuant to a contract lawfully entered into prior to January 1, 1966; or (5) any transaction by a member bank with another bank the deposits of which are insured by the Federal Deposit Insurance Corporation, if more than 50 per centum of the voting stock of such other bank is owned by the member bank or held by trustees for the benefit of the shareholders of the member bank.”
1966—Pub. L. 89–485added last three pars. and struck out from third par. introductory statement that term “affiliate” shall include holding company affiliates as well as other affiliates, respectively. Such added pars. make “extension of credit” cover all purchases under repurchase agreements and the discount of promissory notes, bills of exchange, conditional sales contracts, or similar paper, whether with or without recourse, excluding therefrom such discounts by one bank for another, if without recourse, exclude from being deemed a loan, advance, or extension of credit noninterest bearing deposits to the credit of a bank or the giving of immediate credit to a bank for uncollected items received in the ordinary course of business, define term “affiliate” (superseding one stricken from par. three), and exempt stocks, bonds, debentures, or other obligations of companies described in section 4(c)(1) of the Bank Holding Company Act of 1956, as amended; or accepted as security for debts previously contracted, shares of the kind and amounts eligible for investment by national banks under section 24 of this title, loans by a bank to its holding company or a fellow subsidiary if made within one year after July 1, 1966 and pursuant to a contract lawfully entered before Jan. 1, 1966, and transactions between a member bank and a majority-owned insured bank.
1959—Pub. L. 86–230struck out from second and third pars. references to Home Owners’ Loan Corporation after Federal Home Loan Banks.
Pub. L. 111–203, title VI, § 608(d),July 21, 2010, 124 Stat. 1611, provided that: “The amendments made by this section [amending this section and sections 371c–1 and 1468 of this title] shall take effect 1 year after the transfer date.”
[For definition of “transfer date” as used in section 608(d) ofPub. L. 111–203, set out above, see section 5301 of this title.]
Pub. L. 111–203, title VI, § 609(b), (c),July 21, 2010, 124 Stat. 1611, provided that:
[For definition of “transfer date” as used in section 609(b), (c) ofPub. L. 111–203, set out above, see section 5301 of this title.]
Section 410(c) ofPub. L. 97–320provided that: “Section 23A of the Federal Reserve Act, as amended by this section [this section], shall apply to any transaction entered into after the date of enactment of this Act [Oct. 15, 1982], except for transactions which are the subject of a binding written contract or commitment entered into on or before July 28, 1982, and except that any renewal of a participation in a loan outstanding on July 28, 1982, to a company that becomes an affiliate as a result of the enactment of this Act [see section 1 ofPub. L. 97–320, set out as a Short Title of 1982 Amendments note under section 226 of this title], or any participation in a loan to such an affiliate emanating from the renewal of a binding written contract or commitment outstanding on July 28, 1982, shall not be subject to the collateral requirements of this Act.”