§6713 — Title 15 Commerce and Trade | U.S. Code

Summary

National banks may not underwrite (act as the insurer for) or sell title insurance. If a State allows banks chartered by that State to sell title insurance as an agent, a national bank may also sell title insurance as an agent in that State, but only in the same way and under the same limits as those State banks — even if other federal law (including section 6701) says otherwise. A national bank or its subsidiary that was lawfully doing title insurance work before November 12, 1999 may keep doing it, with limits depending on whether an affiliate or a subsidiary sells insurance as a principal. The words “affiliate” and “subsidiary” mean what section 1841 of title 12 says. Any State law in effect before November 12, 1999 that bans title insurance in that State remains in force.

Title 15, §6713

Commerce and Trade — Source: USLM XML via OLRC

(a)No national bank may engage in any activity involving the underwriting or sale of title insurance.

(b)(1)Notwithstanding any other provision of law (including section 6701 of this title), in the case of any State in which banks organized under the laws of such State are authorized to sell title insurance as agent, a national bank may sell title insurance as agent in such State, but only in the same manner, to the same extent, and under the same restrictions as such State banks are authorized to sell title insurance as agent in such State.

(2)A State law which authorizes State banks to engage in any activities in such State in which a national bank may engage shall not be treated as a statute which authorizes State banks to sell title insurance as agent, for purposes of paragraph (1).

(c)(1)Except as provided in paragraphs (2) and (3) and notwithstanding subsections (a) and (b), a national bank, and a subsidiary of a national bank, may conduct title insurance activities which such national bank or subsidiary was actively and lawfully conducting before November 12, 1999.

(2)In the case of a national bank which has an affiliate which provides insurance as principal and is not a subsidiary of the bank, the national bank and any subsidiary of the national bank may not engage in the underwriting of title insurance pursuant to paragraph (1).

(3)In the case of a national bank which has a subsidiary which provides insurance as principal and has no affiliate other than a subsidiary which provides insurance as principal, the national bank may not directly engage in any activity involving the underwriting of title insurance.

(d)For purposes of this section, the terms “affiliate” and “subsidiary” have the same meanings as in section 1841 of title 12.

(e)No provision of this Act or any other Federal law shall be construed as superseding or affecting a State law which was in effect before November 12, 1999, and which prohibits title insurance from being offered, provided, or sold in such State, or from being underwritten with respect to real property in such State, by any person whatsoever.

Notes & Related Subsidiaries

Editorial Notes

References in Text

This Act, referred to in subsec. (e), is Pub. L. 106–102, Nov. 12, 1999, 113 Stat. 1338, known as the Gramm-Leach-Bliley Act. For complete classification of this Act to the Code, see

Short Title

of 1999 Amendment note set out under section 1811 of Title 12, Banks and Banking, and Tables.

§6713 Title Insurance Activities of National Banks and Their Affiliates