A bill to permit national banking associations to establish and operate branches in States other than the States in which their main offices are located, subject to applicable State statutory law.

Amends the McFadden Act to authorize a national banking association (subject to the approval of the Comptroller of the Currency) to establish and operate interstate branches if the laws of the relevant States explicitly permit such branches within their borders.

 
S 1092 IS
102d CONGRESS
1st Session
S. 1092
To permit national banking associations to establish and operate branches
in States other than the States in which their main offices are located,
subject to applicable State statutory law.
IN THE SENATE OF THE UNITED STATES
May 16 (legislative day, APRIL 25), 1991
Mrs. KASSEBAUM introduced the following bill; which was read twice and
referred to the Committee on Banking, Housing and Urban Affairs
A BILL
To permit national banking associations to establish and operate branches
in States other than the States in which their main offices are located,
subject to applicable State statutory law.
  Be it enacted by the Senate and House of Representatives of the United
  States of America in Congress assembled,
SECTION 1. AMENDMENT TO THE MCFADDEN ACT.
  Section 5155 of the Revised Statutes (12 U.S.C. 36) is amended--
  (1) by redesignating subsections (d) through (h) as subsections (e) through
  (i), respectively; and
  (2) by inserting after subsection (c) the following new subsection:
  `(i)(1) Notwithstanding any other provision of this section, a national
  banking association may, with the approval of the Comptroller of the
  Currency, establish and operate a branch outside of the State in which
  such association maintains its main office, if such establishment and
  operation are at the time of the establishment specifically authorized,
  by language to that effect, and not merely by implication, by the statutory
  law of the State in which such branch is to be located.
  `(2) The establishment and operation of a branch under the authority
  provided in paragraph (1) shall be subject to any requirements, conditions,
  and limitations contained in the applicable statutory law of the State in
  which such branch is to be established and operated, such as--
  `(1) limitations on the geographic location of the main office of the
  national banking association;
  `(2) conditions requiring that the State in which the main office of the
  association is located must provide reciprocal branching privileges to
  national or State banks whose main offices are located in the State in
  which the branch is to be established and operated;
  `(3) limitations on the permissible activities of the branch;
  `(4) limitations on the geographic location of the branch, or the manner
  in which the branch may be established by such association, including a
  requirement that such a branch may be established only by means of a merger
  or consolidation with, or an acquisition of the voting shares or assets of,
  an existing national or State bank;
  `(5) requirements that the association obtain a branch license or permit
  from the appropriate supervisory authority of the State in which the branch
  is to be established and operated;
  `(6) conditions subjecting the branch to examination and reporting
  requirements and other visitorial powers of the appropriate supervisory
  authority of the State in which it is to be established and operated;
  `(7) conditions requiring the branch to comply with State laws applicable to
  banks which maintain their main offices in the State in which the branch is
  to be established and operated, including State laws relating to consumer
  protection, fair lending practices, taxation, capital requirements, and
  the prevention of unsafe or unsound banking practices;
  `(8) conditions requiring the branch to contribute to the economic
  development of the State or the local community in which such branch is
  to be established and operated; and