§221a — Title 12 Banks and Banking | U.S. Code

Summary

Defines key banking words and explains when a company counts as an "affiliate" of a member bank. Words like banks, national bank, national banking association, member bank, board, district, and reserve bank use the meanings given in section 221 of this title. An "affiliate" is any company tied to a member bank by ownership or control. That includes a company the bank owns or controls by holding a majority of voting stock or more than 50 percent of the shares voted for directors at the preceding election, or that controls the election of a majority of directors. It also includes a company controlled by the bank’s shareholders (who own a majority or more than 50 percent of the voted shares) or held in trust for them, a company whose board is mostly the same as a member bank’s board, or a company that owns or controls most of a member bank’s stock or for whose benefit all or substantially all of a member bank’s stock is held by trustees.

Title 12, §221a

Banks and Banking — Source: USLM XML via OLRC

As used in this chapter—

(a)The terms “banks”, “national bank”, “national banking association”, “member bank”, “board”, “district”, and “reserve bank” shall have the meanings assigned to them in section 221 of this title.

(b)Except where otherwise specifically provided, the term “affiliate” shall include any corporation, business trust, association, or other similar organization—

(1)Of which a member bank, directly or indirectly, owns or controls either a majority of the voting shares or more than 50 per centum of the number of shares voted for the election of its directors, trustees, or other persons exercising similar functions at the preceding election, or controls in any manner the election of a majority of its directors, trustees, or other persons exercising similar functions; or

(2)Of which control is held, directly or indirectly, through stock ownership or in any other manner, by the shareholders of a member bank who own or control either a majority of the shares of such bank or more than 50 per centum of the number of shares voted for the election of directors of such bank at the preceding election, or by trustees for the benefit of the shareholders of any such bank; or

(3)Of which a majority of its directors, trustees, or other persons exercising similar functions are directors of any one member bank; or

(4)Which owns or controls, directly or indirectly, either a majority of the shares of capital stock of a member bank or more than 50 per centum of the number of shares voted for the election of directors of a member bank at the preceding election, or controls in any manner the election of a majority of the directors of a member bank, or for the benefit of whose shareholders or members all or substantially all the capital stock of a member bank is held by trustees.

Notes & Related Subsidiaries

Editorial Notes

References in Text

As used in this chapter, referred to in text, was in the original “As used in this Act and in any provision of law amended by this Act”, meaning act June 16, 1933, ch. 89, 48 Stat. 162, known as the Banking Act of 1933. For complete classification of this Act to the Code, see

References in Text

note set out under section 227 of this title and Tables.

Amendments

1966—Subsec. (b)(4). Pub. L. 89–485, § 13(a), added par. (4) which incorporates definitions of “holding company affiliate” contained in cls. (1) and (2) of former subsec. (c) of this section, and substituted “a member bank” for “any one bank” in first two places. Subsec. (c). Pub. L. 89–485, § 13(b), repealed definition of “holding company affiliate”, cls. (1) and (2) thereof now being incorporated in the subsec. (b)(4) definition of “affiliate”, substituting “a member bank” for “any one bank” in first two places and the par. excluding therefrom any corporations stock of which is fully owned by the United States and any organization determined by the Board of Governors of the Federal Reserve System not to be engaged, directly or indirectly, as a business in holding the stock of, or managing or controlling, banks, banking associations, savings banks, or trust companies. 1935—Subsec. (c). Act Aug. 23, 1935, added last par.

§221a Additional Definitions

Summary

Title 12, §221a

Notes & Related Subsidiaries

Editorial Notes

References in Text

References in Text

Amendments

Citations & Metadata