(a) Prior approval to establish representative offices.
(1) No foreign bank may establish a representative
office without the prior approval of the Board.
(2) In acting on any application under
this paragraph to establish a representative office, the Board shall
take into account the standards contained in section 7(d)(2) and may
impose any additional requirements that the Board determines to be
necessary to carry out the purposes of this Act.
(b) Termination of representative
offices. The Board may order the termination of the activities
of a representative office of a foreign bank on the basis of the standards,
procedures, and requirements applicable under section 7(e) with respect
to branches and agencies.
1-573.3
(c) Examinations. The Board may make examinations
of each representative office of a foreign bank, the cost of which
shall be assessed against and paid by such foreign bank. The Board
may also make examinations of any affiliate of a foreign bank conducting
business in any State if the Board deems it necessary to determine
and enforce compliance with this Act, the Bank Holding Company Act
of 1956, or other applicable Federal banking law.
(d) Compliance with State law. This
Act does not authorize the establishment of a representative office
in any State in contravention of State law.
[12 USC 3107. As amended
by acts of Dec. 19, 1991 (105 Stat. 2292); Oct. 28, 1992 (106 Stat.
4082); and Nov. 12, 1999 (113 Stat. 1384). Section 115(b) of the Riegle-Neal
Interstate Banking and Branching Efficiency Act of 1994 (12 USC 3107
note) provides as follows:
(b) Representative offices. The provision of section
10(c) of the International Banking Act of 1978 relating to the cost
of examinations under such section shall not apply with respect to
any examination under such section which begins before or during the
3-year period beginning on July 25, 1994.]
