The definitions contained in sections 211.1
and 211.2 apply to this subpart except as a term is otherwise defined
in this section.
(a) Affiliate of a foreign bank or
of a parent of a foreign bank means any company that controls, is
controlled by, or is under common control with, the foreign bank or
the parent of the foreign bank.
(b) Agency means any
place of business of a foreign bank, located in any state, at which
credit balances are maintained, checks are paid, money is lent, or,
to the extent not prohibited by state or federal law, deposits are
accepted from a person or entity that is not a citizen or resident
of the United States. Obligations shall not be considered credit balances
unless they are—
(1) incidental
to, or arise out of the exercise of, other lawful banking powers;
(2) to serve a specific purpose;
(3) not solicited from the general
public;
(4) not used to pay routine
operating expenses in the United States such as salaries, rent, or
taxes;
(5) withdrawn within a reasonable
period of time after the specific purpose for which they were placed
has been accomplished; and
(6) drawn
upon in a manner reasonable in relation to the size and nature of
the account.
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(c) (1) Appropriate Federal Reserve Bank means, unless the Board designates
a different Federal Reserve Bank—
(i) for a foreign banking organization,
the Reserve Bank assigned to the foreign banking organization in section
225.3(b)(2) of Regulation Y (12 CFR 225.3(b)(2));
(ii) for a foreign bank that is not
a foreign banking organization and proposes to establish an office,
an Edge corporation, or an agreement corporation, the Reserve Bank
of the Federal Reserve District in which the foreign bank proposes
to establish such office or corporation; and
(iii) in all other cases, the Reserve
Bank designated by the Board.
(2) The appropriate Federal Reserve Bank
need not be the Reserve Bank of the Federal Reserve District in which
the foreign bank’s home state is located.
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(d) Banking
subsidiary, with respect to a specified foreign bank, means a
bank that is a subsidiary as the terms bank and subsidiary are defined in section 2 of the BHC Act (12 U.S.C. 1841).
(e) Branch means any place of business of a foreign bank,
located in any state, at which deposits are received, and that is
not an agency, as that term is defined in paragraph (b) of this section.
(f) Change the status of an office means convert a representative
office into a branch or agency, or an agency or limited branch into
a branch, but does not include renewal of the license of an existing
office.
(g) Commercial lending company means any organization,
other than a bank or an organization operating under section 25 of
the Federal Reserve Act (FRA) (12 U.S.C. 601-604a), organized under
the laws of any state, that maintains credit balances permissible
for an agency and engages in the business of making commercial loans. Commercial lending company includes any company chartered under
article XII of the banking law of the state of New York.
(h) Comptroller means the Office of the Comptroller of the Currency.
(i) Control has the same meaning as in section 2(a) of
the BHC Act (12 U.S.C. 1841(a)), and the terms controlled and controlling shall be construed consistently with the term control.
(j) Domestic branch means any place of
business of a foreign bank, located in any state, that may accept
domestic deposits and deposits that are incidental to or for the purpose
of carrying out transactions in foreign countries.
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(k) A foreign
bank engages directly in the business of banking outside the United
States if the foreign bank engages directly in banking activities
usual in connection with the business of banking in the countries
where it is organized or operating.
(l) To establish means to—
(1) to open
and conduct business through an office;
(2) to acquire directly, through merger,
consolidation, or similar transaction with another foreign bank, the
operations of an office that is open and conducting business;
(3) to acquire an office through the acquisition
of a foreign bank subsidiary that will cease to operate in the same
corporate form following the acquisition;
(4) to change the status of an office;
or
(5) to relocate an office from
one state to another.
(m) Federal agency, federal
branch, state agency, and state branch have the same meanings
as in section 1 of the IBA (12 U.S.C. 3101).
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(n) Foreign bank means
an organization that is organized under the laws of a foreign country
and that engages directly in the business of banking outside the United
States. The term foreign bank does not include a central bank
of a foreign country that does not engage or seek to engage in a commercial
banking business in the United States through an office.
(o) Foreign banking organization means—
(1) a foreign bank, as defined in section
1(b)(7) of the IBA (12 U.S.C. 3101(7)), that—
(i) operates a branch, agency, or commercial
lending company subsidiary in the United States;
(ii) controls a bank in the United States;
or
(iii) controls an Edge corporation
acquired after March 5, 1987; and
(2) any company of which the foreign bank
is a subsidiary.
(p) Home country, with respect
to a foreign bank, means the country in which the foreign bank is
chartered or incorporated.
(q) Home-country supervisor, with respect to a foreign bank, means the governmental entity or
entities in the foreign bank’s home country with responsibility for
the supervision and regulation of the foreign bank.
(r) Licensing authority means—
(1) the relevant state supervisor, with
respect to an application to establish a state branch, state agency,
commercial lending company, or representative office of a foreign
bank; or
(2) the Comptroller, with
respect to an application to establish a federal branch or federal
agency.
(s) Limited branch means a branch
of a foreign bank that receives only such deposits as would be permitted
for a corporation organized under section 25A of the Federal Reserve
Act.
(t) Office or office of a foreign bank means
any branch, agency, representative office, or commercial lending company
subsidiary of a foreign bank in the United States.
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(u) A parent of a foreign bank means a company of which the foreign bank is a
subsidiary. An immediate parent of a foreign bank is a company
of which the foreign bank is a direct subsidiary. An ultimate parent of a foreign bank is a parent of the foreign bank that is not the
subsidiary of any other company.
(v) Regional administrative
office means a representative office that—
(1) is established by a foreign bank that
operates two or more branches, agencies, commercial lending companies,
or banks in the United States;
(2)
is located in the same city as one or more of the foreign bank’s branches,
agencies, commercial lending companies, or banks in the United States;
(3) manages, supervises,
or coordinates the operations of the foreign bank or its affiliates,
if any, in a particular geographic area that includes the United States
or a region thereof, including by exercising credit-approval authority
in that area pursuant to written standards, credit policies, and procedures
established by the foreign bank; and
(4) does not solicit business from actual or potential customers
of the foreign bank or its affiliates.
(w) Relevant
state supervisor means the state entity that is authorized to
supervise and regulate a state branch, state agency, commercial lending
company, or representative office.
(x) Representative office means any office of a foreign bank which is located in any state
and is not a federal branch, federal agency, state branch, state agency,
or commercial lending company subsidiary.
(y) State means
any state of the United States or the District of Columbia.
(z) Subsidiary means any organization that—
(1) has 25 percent or more of its voting
shares directly or indirectly owned, controlled, or held with the
power to vote by a company, including a foreign bank or foreign banking
organization; or
(2) is otherwise
controlled, or capable of being controlled, by a foreign bank or foreign
banking organization.
