Opinion ID: 2195589
Heading Depth: 1
Heading Rank: 4

Heading: Financial Institution

Text: DL & F also contends that MSDW is not a financial institution by definition. We must disagree. Financial Institution is defined differently within our Pennsylvania statutes, depending upon the section to which the term relates. Pursuant to Chapter 51C of the Banking Code, financial institution is defined narrowly to include: [A]ny national banking association, State-chartered bank, bank and trust company, savings bank, or private bank, Federal savings and loan association, State-chartered building and loan association or credit union, or any stock insurance company, including any stock life or limited life, stock fire, stock marine, stock fire and marine, or stock casualty company, any mutual insurance company, including any mutual life or limited life company or any surety company, title insurance company, Lloyds association, or inter-insurance exchange, which is authorized by law to transact the business of insurance in Pennsylvania. 7 P.S. § 6040-2. See also Section 2201-A of the Second Class Township Code, 16 P.S. § 5201-A. However, pursuant to the Insurance Code, an organization means [a]ny bank, savings and loan association, credit union, mutual fund, money market fund, stock broker or other similar financial institution  which is regulated by Federal or state law.... 40 P.S. § 46 (emphasis added). Hence, there is no single definition of financial institution contained within Pennsylvania statutes and, while the term financial institution may not be inherently ambiguous, within the context of its description as any organization authorized to do business under State or Federal laws related to financial institutions, a certain ambiguity may be implied. The definition of financial institution in the Sixth Edition of Black's Law Dictionary defines financial institution as, inter alia, [a]n insured bank ... a thrift institution... a broker or dealer registered with the Securities and Exchange Commission... an investment banker or investment company.... Black's Law Dictionary 630 (6th Ed.). In the instant matter, the General Assembly has defined financial institution broadly and the distinguishing characteristic of a financial institution within the MPAA is the state or federal law definition of financial institution. As previously indicated, one or more state statutes define financial institution broadly enough to include an investment firm such as MSDW. Some federal statutes do likewise. See e.g., 11 U.S.C. § 101; see also Geertson v. McCrea, 37 Pa. D. & C.3d 583 (1983). Accordingly, we believe that the term financial institution sweeps broadly enough pursuant to the MPAA to include MSDW.