§3201 — Title 12 Banks and Banking | U.S. Code

Summary

Defines key terms used in the chapter. It explains what certain words mean when the law talks about banks, holding companies, officials, offices, and the federal agency that oversees them. "Depository institution" means various kinds of banks and credit unions, such as commercial banks, savings banks, trust companies, savings and loan associations, building and loan associations, homestead associations, cooperative banks, industrial banks, and credit unions. "Depository holding company" means a bank holding company as defined in the federal banking laws, a company that would be a bank holding company except for the exemption in subsection (a)(5)(F), or a savings and loan holding company as defined in the federal law. "Affiliate" or "affiliated" describes corporations that are related because one is a holding company and the other a subsidiary, both are subsidiaries of the same holding company, more than 25 percent of the voting stock of each is owned by the same person(s), a trust company’s stock (except directors’ qualifying shares) was owned by mutual savings banks on November 10, 1978 and the other is a mutual savings bank, one is a state-chartered FDIC‑insured bankers’ bank, or one is a state-chartered FDIC‑insured bank whose voting stock is held only by bank officers and mainly serves other banks (with those officers’ holdings not exceeding 6 percent of paid-in capital and 6 percent of surplus). "Management official" means an employee or officer with management duties, a director (including advisory or honorary directors except for depository institutions with total assets of less than $100,000,000), a trustee of a business run by trustees, or anyone who has a representative or nominee serving in those roles; special state-law exceptions apply where a person is allowed to serve in overlapping roles between certain state-chartered savings banks, cooperative banks, and trust companies that do not make real estate mortgage loans and do not accept savings deposits from individuals. "Office" means a principal office or a branch. "Appropriate Federal depository institutions regulatory agency" means the federal agency named in section 3207 for that institution or holding company.

Title 12, §3201

Banks and Banking — Source: USLM XML via OLRC

As used in this chapter—

(1)the term “depository institution” means a commercial bank, a savings bank, a trust company, a savings and loan association, a building and loan association, a homestead association, a cooperative bank, an industrial bank, or a credit union;

(2)the term “depository holding company” means a bank holding company as defined in section 1841(a) of this title, a company which would be a bank holding company as defined in section 1841(a) of this title but for the exemption contained in subsection (a)(5)(F) thereof, or a savings and loan holding company as defined in section 1730a(a)(1)(D) 11 See References in Text note below. of this title;

(3)the characterization of any corporation (including depository institutions and depository holding companies), as an “affiliate of,” or as “affiliated” with any other corporation means that—

(A)one of the corporations is a depository holding company and the other is a subsidiary thereof, or both corporations are subsidiaries of the same depository holding company, as the term “subsidiary” is defined in either section 1841(d) of this title in the case of a bank holding company or section 1730a(a)(1)(H) 1 of this title in the case of a savings and loan holding company; or

(B)more than 25 percent of the voting stock of one corporation is beneficially owned in the aggregate by one or more persons who also beneficially own in the aggregate more than 25 percent of the voting stock of the other corporation; or

(C)one of the corporations is a trust company all of the stock of which, except for directors qualifying shares, was owned by one or more mutual savings banks on November 10, 1978, and the other corporation is a mutual savings bank; or

(D)one of the corporations is a bank, insured by the Federal Deposit Insurance Corporation and chartered under State law, and is a bankers’ bank, described in Paragraph Seventh of section 24 of this title; or

(E)one of the corporations is a bank, chartered under State law and insured by the Federal Deposit Insurance Corporation, the voting securities of which are held only by persons who are officers of other banks, as permitted by State law, and which bank is primarily engaged in providing banking services for other banks and not the public: Provided, however, That in no case shall the voting securities of such corporation be held by such officers of other banks in excess of 6 per centum of the paid-in capital and 6 per centum of the surplus of such a bank.22 So in original. The period probably should be a semicolon.

(4)the term “management official” means an employee or officer with management functions, a director (including an advisory or honorary director, except in the case of a depository institution with total assets of less than $100,000,000), a trustee of a business organization under the control of trustees, or any person who has a representative or nominee serving in any such capacity: Provided, That if a corporator, trustee, director, or other officer of a State-chartered savings bank or cooperative bank is specifically authorized under the laws of the State in which said institution is located to serve as a trustee, director, or other officer of a State-chartered trust company which does not make real estate mortgage loans and does not accept savings deposits from natural persons, then, for the purposes of this chapter, such corporator, trustee, director, or other officer shall not be deemed to be a management official of such trust company: And provided further, That if a management official of a State-chartered trust company which does not make real estate mortgage loans and does not accept savings deposits from natural persons is specifically authorized under the laws of the State in which said institution is located to serve as a corporator, trustee, director, or other officer of a State-chartered savings bank or cooperative bank, then, for the purposes of this chapter, such management official shall not be deemed to be a management official of any such savings bank or cooperative bank;

(5)the term “office” used with reference to a depository institution means either a principal office or a branch; and

(6)the term “appropriate Federal depository institutions regulatory agency” means, with respect to any depository institution or depository holding company, the agency referred to in section 3207 of this title in connection with such institution or company.

Notes & Related Subsidiaries

Editorial Notes

References in Text

This chapter, referred to in text, was in the original “this title”, meaning title II of Pub. L. 95–630, Nov. 10, 1978, 92 Stat. 3672, known as the Depository Institution Management Interlocks Act, which enacted this chapter, amended section 1464, 1730, and 1818 of this title, and enacted provisions set out as a note below. For complete classification of this Act to the Code, see

Short Title

note set out below and Tables. section 1730a of this title, referred to in pars. (2) and (3)(A), was repealed by Pub. L. 101–73, title IV, § 407, Aug. 9, 1989, 103 Stat. 363.

Amendments

1994—Par. (3)(D). Pub. L. 103–325 substituted “and is a bankers’ bank, described in Paragraph Seventh of section 24 of this title; or” for “the voting securities of which are held by other banks, as permitted by State law, and which bank is primarily engaged in providing banking services for other banks and not the public: Provided, however, That in no case shall the voting securities of such corporation be held by any such other bank in excess of 5 per centum of the paid-in capital and 5 per centum of the surplus of such other bank; or”. 1988—Par. (3)(B). Pub. L. 100–650, § 2, substituted “25 percent” for “50 per centum” in two places. Par. (4). Pub. L. 100–650, § 3, substituted “(including an advisory or honorary director, except in the case of a depository institution with total assets of less than $100,000,000)” for “(including an advisory or honorary director)”. Par. (6). Pub. L. 100–650, § 5(b)(1), added par. (6).

Statutory Notes and Related Subsidiaries

Effective Date

Section effective upon the expiration of 120 days after Nov. 10, 1978, see section 2101 of Pub. L. 95–630, set out as a note under section 375b of this title.

Short Title

of 1988 Amendment Pub. L. 100–650, § 1, Nov. 10, 1988, 102 Stat. 3819, provided that: “This Act [amending section 3201, 3204, and 3205 of this title] may be referred to as the ‘Management Interlocks Revision Act of 1988’.”

Short Title

Pub. L. 95–630, title II, § 201, Nov. 10, 1978, 92 Stat. 3672, provided that: “This title [enacting this chapter and amending section 1464, 1730, and 1818 of this title] may be cited as the ‘Depository Institution Management Interlocks Act’.”

§3201 Definitions

Summary

Title 12, §3201

Notes & Related Subsidiaries

Editorial Notes

References in Text

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Amendments

Statutory Notes and Related Subsidiaries

Effective Date

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