12 U.S.C. § 3106a: Compliance with State and…

Summary

Foreign bank branches, agencies, and commercial lenders run by foreign banks or companies must follow U.S. and state laws when they do business in the United States. They must obey laws that protect consumers in financial deals, and they must not discriminate based on race, color, religion, sex, marital status, age, or national origin. That rule covers the person involved and people connected to them, like officers, directors, employees, creditors, or owners. A branch or agency cannot be approved to open unless it agrees to follow those same consumer-protection and anti-discrimination laws that apply to national or state banks in the state where it will do business.

Title 12, §3106a

Banks and Banking, Source: USLM XML via OLRC

(1)Every branch or agency of a foreign bank and every commercial lending company controlled by one or more foreign banks or by one or more foreign companies that control a foreign bank shall conduct its operations in the United States in full compliance with provisions of any law of the United States or any State thereof which—

(A)impose requirements that protect the rights of consumers in financial transactions, to the extent that the branch, agency, or commercial lending company engages in activities that are subject to such laws;

(B)prohibit discrimination against any individual or other person on the basis of the race, color, religion, sex, marital status, age, or national origin of (i) such individual or other person or (ii) any officer, director, employee, or creditor of, or any owner of any interest in, such individual or other person; and

(C)apply to national banks or State-chartered banks doing business in the State in which such branch or agency or commercial lending company, as the case may be, is doing business.

(2)No application for a branch or agency shall be approved by the Comptroller or by a State bank supervisory authority, as the case may be, unless the entity making the application has agreed to conduct all of its operations in the United States in full compliance with provisions of any law of the United States or any State thereof which—

(B)prohibit discrimination against individuals or other persons on the basis of the race, color, religion, sex, marital status, age, or national origin of (i) such individual or other person or (ii) any officer, director, employee, or creditor of, or any owner of any interest in, such individual or other person; and

(C)apply to national banks or State-chartered banks doing business in the State in which the entity to be established is to do business.

Notes & Related Subsidiaries

Editorial Notes

Amendments

1994—Par. (1). Pub. L. 103–328, § 107(c)(1), added subpar. (A) and redesignated former subpars. (A) and (B) as (B) and (C), respectively. Par. (2). Pub. L. 103–328, § 107(c)(2), added subpar. (A) and redesignated former subpars. (A) and (B) as (B) and (C), respectively.

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.

§3106a Compliance with State and Federal Laws