§ 619. — Capital stock; by whom held; ownership of capital stock by foreign bank.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC619]
TITLE 12--BANKS AND BANKING
CHAPTER 6--FOREIGN BANKING
SUBCHAPTER II--ORGANIZATION OF CORPORATIONS TO DO FOREIGN BANKING
Sec. 619. Capital stock; by whom held; ownership of capital
stock by foreign bank
Except as otherwise provided in this subchapter, a majority of the
shares of the capital stock of any such corporation shall at all times
be held and owned by citizens of the United States, by corporations the
controlling interest in which is owned by citizens of the United States,
chartered under the laws of the United States or of a State of the
United States, or by firms or companies, the controlling interest in
which is owned by citizens of the United States. Notwithstanding any
other provisions of this subchapter, one or more foreign banks,
institutions organized under the laws of foreign countries which own or
control foreign banks, or banks organized under the laws of the United
States, the States of the United States, or the District of Columbia,
the controlling interests in which are owned by any such foreign banks
or institutions, may, with the prior approval of the Board of Governors
of the Federal Reserve System and upon such terms and conditions and
subject to such rules and regulations as the Board of Governors of the
Federal Reserve System may prescribe, own and hold 50 per centum or more
of the shares of the capital stock of any corporation organized under
this subchapter and any such corporation shall be subject to the same
provisions of law as any other corporation organized under this
subchapter, and the terms ``controls'' and ``controlling interest''
shall be construed consistently with the definition of ``control'' in
section 2 of the Bank Holding Company Act of 1956 [12 U.S.C. 1841]. For
the purposes of the preceding sentence of this paragraph the term
``foreign bank'' shall have the meaning assigned to it in the
International Banking Act of 1978 [12 U.S.C. 3101 et seq.]. Any company,
other than a bank as defined in section 2 of the Bank Holding Company
Act of 1956, that after March 5, 1987, directly or indirectly acquires
control of a corporation organized or operating under the provisions of
this subchapter or subchapter I of this chapter shall be subject to the
provisions of the Bank Holding Company Act of 1956 [12 U.S.C. 1841 et
seq.] in the same manner and to the same extent that bank holding
companies are subject thereto, except that such company shall not by
reason of this paragraph be deemed a bank holding company for the
purpose of section 3 of the Bank Holding Company Act of 1956 [12 U.S.C.
1842].
(Dec. 23, 1913, ch. 6, Sec. 25A (par.), formerly Sec. 25(a), as added
Dec. 24, 1919, ch. 18, 41 Stat. 378; amended Aug. 23, 1935, ch. 614,
title III, Sec. 329, 49 Stat. 717; Pub. L. 95-369, Sec. 3(f), Sept. 17,
1978, 92 Stat. 609; Pub. L. 100-86, title I, Sec. 102(c)(1), Aug. 10,
1987, 101 Stat. 566; renumbered Sec. 25A, Pub. L. 102-242, title I,
Sec. 142(e)(2), Dec. 19, 1991, 105 Stat. 2281.)
References in Text
This subchapter, referred to in text, was in the original ``this
section'', meaning section 25A of act Dec. 23, 1913, which is classified
to this subchapter (Sec. 611 et seq.).
The International Banking Act of 1978, referred to in text, is Pub.
L. 95-369, Sept. 17, 1978, 92 Stat. 607, which enacted sections 347d,
611a, and 3101 to 3111 of this title, amended sections 72, 378, 614,
615, 618, 619, 1813, 1815, 1817, 1818, 1820, 1821, 1822, 1823, 1828,
1829b, 1831b, and 1841 of this title, and enacted provisions set out as
notes under sections 36, 247, 601, 611a, and 3101 of this title. For
complete classification of this Act to the Code, see Short Title note
set out under section 3101 of this title and Tables.
Subchapter I of this chapter, referred to in text, was in the
original ``section 25'', meaning section 25 of the Federal Reserve Act,
which is classified to subchapter I (Sec. 601 et seq.) of this chapter.
The Bank Holding Company Act of 1956, referred to in text, is act
May 9, 1956, ch. 240, 70 Stat. 133, as amended, which is classified
principally to chapter 17 (Sec. 1841 et seq.) of this title. For
complete classification of this Act to the Code, see Short Title note
set out under section 1841 of this title and Tables.
Codification
Section is comprised of a part of section 25A, formerly section
25(a), which was added to act Dec. 23, 1913, ch. 6, by act Dec. 24,
1919.
Amendments
1987--Pub. L. 100-86 inserted provisions which related to any
company, other than bank as defined in section 2 of Bank Holding Company
Act of 1956, that after Mar. 5, 1987, directly or indirectly acquires
control of corporation organized or operating under provisions of this
subchapter or subchapter I of this chapter to be subject to provisions
of Bank Holding Company Act of 1956 in same manner and to same extent
that bank holding companies are subject thereto, except that such
company shall not by reason of this paragraph be deemed bank holding
company for purpose of section 3 of such Act.
1978--Pub. L. 95-369 inserted ``Except as otherwise provided in this
subchapter'' before ``a majority of the shares'', and inserted provision
relating to the ownership of 50 per centum of the shares of capital
stock by a foreign bank with prior approval of the Board of Governors of
the Federal Reserve System.
1935--Act Aug. 23, 1935, struck out provisions relating to
application of section 19 of title 15, to directors, officers or
employees of corporations organized under sections 611-631 of this
title, and excepting certain persons who received approval of Federal
Reserve Board, from application of this section.
Exception for Midland Bank, London, England
Section 102(c)(2) of Pub. L. 100-86 provided that: ``The amendment
made by paragraph (1) [amending this section] does not apply to an
acquisition pursuant to the application by Midland Bank, plc, London,
England, pending before the Board of Governors of the Federal Reserve
System on July 1, 1987, to acquire a corporation organized or operating
under section 25(a) [now 25A] of the Federal Reserve Act [12 U.S.C. 611
et seq.]. If Midland Bank, plc, London, England, is not otherwise
subject to section 4 of the Bank Holding Company Act of 1956 [12 U.S.C.
1843], the financial activities of Midland Bank, plc, London, England,
in the United States shall, upon the determination of the Board of
Governors of the Federal Reserve System made at any time, be subject to
section 4 of the Bank Holding Company Act of 1956.''
