Summer Regulatory Summit eBook

Home/Host Overview

12 U.S.C. § 1828(d)(4)

Unique to Banking: Marriott hotels in California are not subject to Maryland regulation.

(D) “Home state” defined. The term “home State” means the State by which a State bank is chartered. (E) “Host state” defined. 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.

Riegle-Neal: Branching 12 U.S.C. 1828(d)(4): the Corporation may approve an application by an insured State nonmember bank to establish and operate a de novo branch in a State (other than the bank’s home State) in which the bank does not maintain a branch if— (i) the law of the State in which the branch is located, or is to be located, would permit establishment of the branch, if the bank were a State bank chartered by such State; and * * * 12 U.S.C. 1831u(b):(i) [the bank complies] with the filing requirements of any host State of the bank which will result from such transaction to the extent that the requirement— (I) does not have the effect of discriminating against out-of State banks or out-of-State bank holding companies or subsidiaries of such banks or bank holding companies; and (II) is similar in effect to any requirement imposed by the host State on a nonbanking corporation incorporated in another State that engages in business in the host State; and (ii) [the bank] submit[s] a copy of the application to the State bank supervisor of the host State.

Take Away: • Host state has no authority in decision for a branch to be opened