12 U.S.C. § 1831v — Authority of State insurance regulator

Page 1193 TITLE 12—BANKS AND BANKING § 1831v 1 See References in Text note below. (5) Host State The term ‘‘host State’’ means, with respect to a bank, a State, other than the home State of the bank, in which the bank maintains, or seeks to establish and maintain, a branch. (6) Interstate merger transaction The term ‘‘interstate merger transaction’’ means any merger transaction approved pur- suant to subsection (a)(1). (7) Merger transaction The term ‘‘merger transaction’’ has the meaning determined under section 1828(c)(3) of this title. (8) Out-of-State bank The term ‘‘out-of-State bank’’ means, with respect to any State, a bank whose home State is another State. (9) Out-of-State bank holding company The term ‘‘out-of-State bank holding com- pany’’ means, with respect to any State, a bank holding company whose home State is another State. (10) Responsible agency The term ‘‘responsible agency’’ means the agency determined in accordance with section 1828(c)(2) of this title with respect to a merger transaction. (11) Resulting bank The term ‘‘resulting bank’’ means a bank that has resulted from an interstate merger transaction under this section. (Sept. 21, 1950, ch. 967, § 2[44], as added Pub. L. 103–328, title I, § 102(a), Sept. 29, 1994, 108 Stat. 2343; amended Pub. L. 106–102, title VII, § 731, Nov. 12, 1999, 113 Stat. 1477; Pub. L. 111–32, title V, § 504(a), June 24, 2009, 123 Stat. 1880; Pub. L. 111–83, title V, § 563(a), (b), Oct. 28, 2009, 123 Stat. 2183; Pub. L. 111–203, title VI, § 607(b), July 21, 2010, 124 Stat. 1608.) Editorial Notes REFERENCES IN TEXT The American Recovery and Reinvestment Act of 2009, referred to in subsec. (f)(1)(B)(i)(IV), is Pub. L. 111–5, Feb. 17, 2009, 123 Stat. 115. For complete classi- fication of this Act to the Code, see Short Title of 2009 Amendment note set out under section 1 of Title 26, In- ternal Revenue Code, and Tables. AMENDMENTS 2010—Subsec. (b)(4)(B). Pub. L. 111–203 substituted ‘‘will be well capitalized and well managed’’ for ‘‘will continue to be adequately capitalized and adequately managed’’. 2009—Subsec. (f)(1). Pub. L. 111–83, § 563(a)(1), inserted ‘‘(or in the case of a governmental entity located in such State, paid)’’ after ‘‘received, or reserved’’ in in- troductory provisions. Pub. L. 111–32 substituted ‘‘evidence of debt by—’’ for ‘‘evidence of debt by’’, inserted subpar. (A) designation, redesignated former subpars. (A) and (B) as cls. (i) and (ii), respectively, realigned margins, and added subpar. (B). Subsec. (f)(1)(B). Pub. L. 111–83, § 563(a)(2)(A), sub- stituted ‘‘governmental entity located in such State or any person that is not a depository institution de- scribed in subparagraph (A) doing business in such State’’ for ‘‘nondepository institution operating in such State’’ in introductory provisions. Subsec. (f)(1)(B)(i)(III)(aa). Pub. L. 111–83, § 563(a)(2)(C)(i)(I), inserted ‘‘and’’ at end. Subsec. (f)(1)(B)(i)(III)(bb). Pub. L. 111–83, § 563(a)(2)(C)(i)(II), struck out ‘‘, to facilitate the uni- form accessibility of provisions of the American Recov- ery and Reinvestment Act of 2009’’ after ‘‘section 42 of such title’’. Subsec. (f)(1)(B)(i)(III)(cc). Pub. L. 111–83, § 563(a)(2)(C)(i)(III), struck out item (cc), which read as follows: ‘‘the issuance of bonds and obligations issued under that Act, to facilitate economic development, higher education, and improvements to infrastructure, and the issuance of bonds and obligations issued under any provision of law to further the same; and’’. Subsec. (f)(1)(B)(i)(IV). Pub. L. 111–83, § 563(a)(2)(C)(ii), added subcl. (IV). Subsec. (f)(1)(B)(ii), (iii). Pub. L. 111–83, § 563(a)(2)(B), (D), added cl. (ii) and redesignated former cl. (ii) as (iii). Subsec. (f)(2). Pub. L. 111–83, § 563(b), designated exist- ing provisions as subpar. (A), inserted heading, redesig- nated former subpars. (A) and (B) as cls. (i) and (ii), re- spectively, of subpar. (A), realigned margins, and added subpar. (B). 1999—Subsecs. (f), (g). Pub. L. 106–102 added subsec. (f) and redesignated former subsec. (f) as (g). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2010 AMENDMENT Pub. L. 111–203, title VI, § 607(c), July 21, 2010, 124 Stat. 1608, provided that: ‘‘The amendments made by this section [amending this section and section 1842 of this title] shall take effect on the transfer date.’’ [For definition of ‘‘transfer date’’ as used in section 607(c) of Pub. L. 111–203, set out above, see section 5301 of this title.] EFFECTIVE DATE OF 2009 AMENDMENT Pub. L. 111–83, title V, § 563(c), Oct. 28, 2009, 123 Stat. 2184, provided that: ‘‘The amendments made by this section [amending this section] shall apply with re- spect to contracts consummated during the period be- ginning on the date of enactment of this Act [Oct. 28, 2009] and ending on December 31, 2010.’’ Pub. L. 111–32, title V, § 504(b), June 24, 2009, 123 Stat. 1880, provided that: ‘‘The amendments made by sub- section (a) [amending this section] shall apply with re- spect to contracts consummated during the period be- ginning on the date of enactment of this Act [June 24, 2009] and ending on December 31, 2010.’’ § 1831v. Authority of State insurance regulator and Securities and Exchange Commission (a) In general Notwithstanding any other provision of law, the provisions of— (1) section 1844(c) of this title that limit the authority of the Board of Governors of the Federal Reserve System to require reports from, to make examinations of, or to impose capital requirements on holding companies and their functionally regulated subsidiaries or that require deference to other regulators; (2) section 1844(g) of this title that limit the authority of the Board to require a function- ally regulated subsidiary of a holding com- pany to provide capital or other funds or as- sets to a depository institution subsidiary of the holding company and to take certain ac- tions including requiring divestiture of the de- pository institution; and (3) section 1848a 1 of this title that limit whatever authority the Board might otherwise Page 1194 TITLE 12—BANKS AND BANKING § 1831w have to take direct or indirect action with re- spect to holding companies and their function- ally regulated subsidiaries; shall also limit whatever authority that a Fed- eral banking agency might otherwise have under any statute or regulation to require reports, make examinations, impose capital require- ments, or take any other direct or indirect ac- tion with respect to any functionally regulated affiliate of a depository institution, subject to the same standards and requirements as are ap- plicable to the Board under those provisions. (b) Certain exemption authorized No provision of this section shall be construed as preventing the Corporation, if the Corpora- tion finds it necessary to determine the condi- tion of a depository institution for insurance purposes, from examining an affiliate of any de- pository institution, pursuant to section 1820(b)(4) of this title, as may be necessary to disclose fully the relationship between the de- pository institution and the affiliate, and the ef- fect of such relationship on the depository insti- tution. (c) Definitions For purposes of this section, the following definitions shall apply: (1) Functionally regulated subsidiary The term ‘‘functionally regulated sub- sidiary’’ has the meaning given the term in section 1844(c)(5) of this title. (2) Functionally regulated affiliate The term ‘‘functionally regulated affiliate’’ means, with respect to any depository institu- tion, any affiliate of such depository institu- tion that is— (A) not a depository institution holding company; and (B) a company described in any clause of section 1844(c)(5)(B) of this title. (Sept. 21, 1950, ch. 967, § 2[45], as added Pub. L. 106–102, title I, § 112(b), Nov. 12, 1999, 113 Stat. 1367.) Editorial Notes REFERENCES IN TEXT Section 1848a of this title, referred to in subsec. (a)(3), was repealed by Pub. L. 111–203, title VI, § 604(c)(2), July 21, 2010, 124 Stat. 1601. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective 120 days after Nov. 12, 1999, see sec- tion 161 of Pub. L. 106–102, set out as an Effective Date of 1999 Amendment note under section 24 of this title. § 1831w. Safety and soundness firewalls applica- ble to financial subsidiaries of banks (a) In general An insured State bank may control or hold an interest in a subsidiary that engages in activi- ties as principal that would only be permissible for a national bank to conduct through a finan- cial subsidiary if— (1) the State bank and each insured deposi- tory institution affiliate of the State bank are well capitalized (after the capital deduction required by paragraph (2)); (2) the State bank complies with the capital deduction and financial statement disclosure requirements in section 24a(c) of this title; (3) the State bank complies with the finan- cial and operational safeguards required by section 24a(d) of this title; and (4) the State bank complies with the amend- ments to sections 23A and 23B of the Federal Reserve Act [12 U.S.C. 371c and 371c–1] made by section 121(b) of the Gramm-Leach-Bliley Act. (b) Preservation of existing subsidiaries Notwithstanding subsection (a), an insured State bank may retain control of a subsidiary, or retain an interest in a subsidiary, that the State bank lawfully controlled or acquired be- fore November 12, 1999, and conduct through such subsidiary any activities lawfully con- ducted in such subsidiary as of such date. (c) Definitions For purposes of this section, the following definitions shall apply: (1) Subsidiary The term ‘‘subsidiary’’ means any company that is a subsidiary (as defined in section 1813(w)(4) of this title) of 1 or more insured banks. (2) Financial subsidiary The term ‘‘financial subsidiary’’ has the meaning given the term in section 24a(g) of this title. (d) Preservation of authority (1) This chapter No provision of this section shall be con- strued as superseding the authority of the Federal Deposit Insurance Corporation to re- view subsidiary activities under section 1831a of this title. (2) Federal Reserve Act No provision of this section shall be con- strued as affecting the applicability of the 20th undesignated paragraph of section 9 of the Federal Reserve Act [12 U.S.C. 335]. (Sept. 21, 1950, ch. 967, § 2[46], as added Pub. L. 106–102, title I, § 121(d)(1), Nov. 12, 1999, 113 Stat. 1380.) Editorial Notes REFERENCES IN TEXT Section 121(b) of the Gramm-Leach-Bliley Act, re- ferred to in subsec. (a)(4), is section 121(b) of Pub. L. 106–102, title I, Nov. 12, 1999, 113 Stat. 1378, which amended section 371c of this title. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective 120 days after Nov. 12, 1999, see sec- tion 161 of Pub. L. 106–102, set out as an Effective Date of 1999 Amendment note under section 24 of this title. § 1831x. Insurance customer protections (a) Regulations required (1) In general The Federal banking agencies shall prescribe and publish in final form, before the end of the