12 U.S.C. § 3201 — Definitions

Page 1511 TITLE 12—BANKS AND BANKING § 3201 1 See References in Text note below. 2 So in original. The period probably should be a semicolon. Sec. 3205. Management official in position prior to No- vember 10, 1978. 3206. Administration and enforcement. 3207. Rules and regulations. 3208. Powers available to Attorney General for en- forcement. § 3201. Definitions 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 as- sociation, 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 ex- emption contained in subsection (a)(5)(F) thereof, or a savings and loan holding com- pany as defined in section 1730a(a)(1)(D) 1 of this title; (3) the characterization of any corporation (including depository institutions and deposi- tory 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 sub- sidiary thereof, or both corporations are sub- sidiaries of the same depository holding company, as the term ‘‘subsidiary’’ is de- fined in either section 1841(d) of this title in the case of a bank holding company or sec- tion 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 per- sons who also beneficially own in the aggre- gate more than 25 percent of the voting stock of the other corporation; or (C) one of the corporations is a trust com- pany all of the stock of which, except for di- rectors qualifying shares, was owned by one or more mutual savings banks on November 10, 1978, and the other corporation is a mu- tual savings bank; or (D) one of the corporations is a bank, in- sured by the Federal Deposit Insurance Cor- poration 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, char- tered 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.2 (4) the term ‘‘management official’’ means an employee or officer with management func- tions, a director (including an advisory or hon- orary director, except in the case of a deposi- tory institution with total assets of less than $100,000,000), a trustee of a business organiza- tion under the control of trustees, or any per- son who has a representative or nominee serv- ing in any such capacity: Provided, That if a corporator, trustee, director, or other officer of a State-chartered savings bank or coopera- tive 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, direc- tor, or other officer shall not be deemed to be a management official of such trust company: And provided further, That if a management of- ficial 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 insti- tution 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 prin- cipal office or a branch; and (6) the term ‘‘appropriate Federal depository institutions regulatory agency’’ means, with respect to any depository institution or depos- itory holding company, the agency referred to in section 3207 of this title in connection with such institution or company. (Pub. L. 95–630, title II, § 202, Nov. 10, 1978, 92 Stat. 3672; Pub. L. 100–650, §§ 2, 3, 5(b)(1), Nov. 10, 1988, 102 Stat. 3819, 3820; Pub. L. 103–325, title III, § 322(c)(2), Sept. 23, 1994, 108 Stat. 2227.) 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 chap- ter, amended sections 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 sec- tion 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 se- curities 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’’. Page 1512 TITLE 12—BANKS AND BANKING § 3202 1 See References in Text note below. 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, pro- vided that: ‘‘This Act [amending sections 3201, 3204, and 3205 of this title] may be referred to as the ‘Manage- ment 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 sections 1464, 1730, and 1818 of this title] may be cited as the ‘Depository Institution Management Interlocks Act’.’’ § 3202. Dual service of management official as management official of unaffiliated institu- tion or holding company in same area, town, or village prohibited A management official of a depository institu- tion or a depository holding company may not serve as a management official of any other de- pository institution or depository holding com- pany not affiliated therewith if an office of one of the institutions or any depository institution that is an affiliate of such institutions is located within either— (1) the same primary metropolitan statis- tical area, the same metropolitan statistical area, or the same consolidated metropolitan statistical area that is not comprised of des- ignated primary metropolitan statistical areas as defined by the Office of Management and Budget, except in the case of depository insti- tutions with less than $50,000,000 in assets in which case the provision of paragraph (2) shall apply, as that in which an office of the other institution or any depository institution that is an affiliate of such other institution is lo- cated, or (2) the same city, town, or village as that in which an office of the other institution or any depository institution that is an affiliate of such other institution is located, or in any city, town, or village contiguous or adjacent thereto. (Pub. L. 95–630, title II, § 203, Nov. 10, 1978, 92 Stat. 3673; Pub. L. 98–181, title I [title VII, § 701(c)], Nov. 30, 1983, 97 Stat. 1267; Pub. L. 109–351, title VI, § 610, Oct. 13, 2006, 120 Stat. 1984.) Editorial Notes AMENDMENTS 2006—Par. (1). Pub. L. 109–351 substituted ‘‘$50,000,000’’ for ‘‘$20,000,000’’. 1983—Par. (1). Pub. L. 98–181 substituted ‘‘primary metropolitan statistical area, the same metropolitan statistical area, or the same consolidated metropolitan statistical area that is not comprised of designated pri- mary metropolitan statistical areas’’ for ‘‘standard metropolitan statistical area’’. 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. § 3203. Dual service of management official of $2,500,000,000 institution or holding company as management official of unaffiliated $1,500,000,000 institution or holding company prohibited If a depository institution or a depository holding company has total assets exceeding $2,500,000,000, a management official of such in- stitution or any affiliate thereof may not serve as a management official of any other non- affiliated depository institution or depository holding company having total assets exceeding $1,500,000,000 or as a management official of any affiliate of such other institution. In order to allow for inflation or market changes, the ap- propriate Federal depository institutions regu- latory agencies may, by regulation, adjust, as necessary, the amount of total assets required for depository institutions or depository holding companies under this section. (Pub. L. 95–630, title II, § 204, Nov. 10, 1978, 92 Stat. 3673; Pub. L. 104–208, div. A, title II, § 2210(a), Sept. 30, 1996, 110 Stat. 3009–409.) Editorial Notes AMENDMENTS 1996—Pub. L. 104–208 substituted ‘‘$2,500,000,000’’ for ‘‘$1,000,000,000’’ and ‘‘$1,500,000,000’’ for ‘‘$500,000,000’’ and inserted at end ‘‘In order to allow for inflation or market changes, the appropriate Federal depository in- stitutions regulatory agencies may, by regulation, ad- just, as necessary, the amount of total assets required for depository institutions or depository holding com- panies under this section.’’ 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. § 3204. Exceptions The prohibitions contained in sections 3202 and 3203 of this title shall not apply in the case of any one or more of the following or subsidiary thereof: (1) A depository institution or depository holding company which has been placed for- mally in liquidation, or which is in the hands of a receiver, conservator, or other official ex- ercising a similar function. (2) A corporation operating under section 25 or 25(a) 1 of the Federal Reserve Act [12 U.S.C. 601 et seq., 611 et seq.]. (3) A credit union being served by a manage- ment official of another credit union.