Prohibition against use of interstate branches primarily for deposit production.

CFR · 2024-01-01 · US · Title 12

(a) (2) (ii) This section describes the requirements imposed under 12 U.S.C. 1835a, which requires the appropriate Federal banking agencies (the Board, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation) to prescribe uniform rules that prohibit a bank from using any authority to engage in interstate branching pursuant to the Interstate Act, or any amendment made by the Interstate Act to any other provision of law, primarily for the purpose of deposit production. (b) (1) (i) A State member bank as that term is defined in 12 U.S.C. 1813(d)(2); and (ii) A foreign bank as that term is defined in 12 U.S.C. 3101(7) and 12 CFR 211.21. (2) (i) Any branch of a State member bank, and any uninsured branch of a foreign bank licensed by a State, that: (A) Is established or acquired outside the bank's home State pursuant to the interstate branching authority granted by the Interstate Act or by any amendment made by the Interstate Act to any other provision of law; or (B) Could not have been established or acquired outside of the bank's home State but for the establishment or acquisition of a branch described in paragraph (b)(2)(i) of this section; and (ii) Any bank or branch of a bank controlled by an out-of-State bank holding company. (3) (i) With respect to a State bank, the State that chartered the bank; (ii) With respect to a national bank, the State in which the main office of the bank is located; (iii) With respect to a bank holding company,

official document · source cfr-2024 · id 12:§ 208.7