Title 12 — Banks and BankingRelease 119-73
§3107 Representative offices
Title 12 › Chapter CHAPTER 32— - FOREIGN BANK PARTICIPATION IN DOMESTIC MARKETS › § 3107
Summary
A foreign bank must get the Board's approval before opening a representative office. The Board will review the application using the standards in section 3105(d)(2) and can add extra conditions. The Board can also order a representative office to close under the rules in section 3105(e). A representative office cannot be opened in a State if State law forbids it. The Board can examine each representative office and charge the foreign bank for the exam. The Board may also examine any affiliate doing business in a State when needed to enforce this chapter, the Bank Holding Company Act of 1956, or other federal banking laws.
Full Legal Text
Title 12, §3107
Banks and Banking — Source: USLM XML via OLRC
(a)(1)No foreign bank may establish a representative office without the prior approval of the Board.
(2)In acting on any application under this paragraph to establish a representative office, the Board shall take into account the standards contained in section 3105(d)(2) of this title and may impose any additional requirements that the Board determines to be necessary to carry out the purposes of this chapter.
(b)The Board may order the termination of the activities of a representative office of a foreign bank on the basis of the standards, procedures, and requirements applicable under section 3105(e) of this title with respect to branches and agencies.
(c)The Board may make examinations of each representative office of a foreign bank, the cost of which shall be assessed against and paid by such foreign bank. The Board may also make examinations of any affiliate of a foreign bank conducting business in any State if the Board deems it necessary to determine and enforce compliance with this chapter, the Bank Holding Company Act of 1956 [12 U.S.C. 1841 et seq.], or other applicable Federal banking law.
(d)This chapter does not authorize the establishment of a representative office in any State in contravention of State law.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
References in Text
For definition of “this chapter”, referred to in subsecs. (a)(2), (c), and (d), see
References in Text
note set out under section 3101 of this title. The Bank Holding Company Act of 1956, referred to in subsec. (c), is act May 9, 1956, ch. 240, 70 Stat. 133, which is classified principally to chapter 17 (§ 1841 et seq.) of this title. For complete classification of this Act to the Code, see
Short Title
note set out under section 1841 of this title and Tables.
Amendments
1999—Subsec. (c). Pub. L. 106–102 inserted at end “The Board may also make examinations of any affiliate of a foreign bank conducting business in any State if the Board deems it necessary to determine and enforce compliance with this chapter, the Bank Holding Company Act of 1956, or other applicable Federal banking law.” 1992—Subsec. (b). Pub. L. 102–550 substituted “section 3105(e) of this title” for “paragraphs (1), (2), and (3) of section 3105(d) of this title”. 1991—Pub. L. 102–242 amended section generally. Prior to amendment, section read as follows: “(a) Any foreign bank that maintains an office other than a branch or agency in any State shall register with the Secretary of the Treasury in accordance with rules prescribed by him, within one hundred and eighty days after September 17, 1978, or the date on which the office is established, whichever is later. “(b) This chapter does not authorize the establishment of any such office in any State in contravention of State law.”
Statutory Notes and Related Subsidiaries
Effective Date
of 1999 AmendmentAmendment by Pub. L. 106–102 effective 120 days after Nov. 12, 1999, see section 161 of Pub. L. 106–102, set out as a note under section 24 of this title.
Effective Date
of 1992 AmendmentAmendment by Pub. L. 102–550 effective as if included in the Federal Deposit Insurance Corporation Improvement Act of 1991, Pub. L. 102–242, as of Dec. 19, 1991, see section 1609(a) of Pub. L. 102–550, set out as a note under section 191 of this title. Moratorium on Examination Fees Under This Chapter Pub. L. 103–328, title I, § 115(b), Sept. 29, 1994, 108 Stat. 2368, provided that: “The provision of section 10(c) of the International Banking Act of 1978 [12 U.S.C. 3107(c)] relating to the cost of examinations under such section shall not apply with respect to any examination under such section which begins before or during the 3-year period beginning on July 25, 1994.”
Reference
Citations & Metadata
Citation
12 U.S.C. § 3107
Title 12 — Banks and Banking
Last Updated
Apr 6, 2026
Release point: 119-73