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W. P. G. HARDING, GOVERNOR
PAUL M. WARBURG. VICE GOVERHOf.:(
EX-OFFICIO M&MBERS
FREDERIC A. DE,LANO
WILLIAM G. MCADOO
SECRETARY OF THF. TREASURY
CHAIRMAN
JOHN SKELTON WILLIAMS
COMPTROLLER Of lHE CURRENCY
FEDERAL RESERVE BOARD
~1. PARKER Wit LIS, SECRETARY
SHERMAN P. ALLEN, ASST. SECRETARY
AND FISCAL. AGENT
ADDRESS REPLY TO
WASHINGTON
FEDERAL RESERVE BOARD
August 19, 1918.
X-1139
The suggestion has been rrade that the Federal Reserve Board
should prepare and publish an analysis of State laws affecting the operations of foreign banking corporations.
Und~r authorUy of the Federal Reserve Act., sorr~e of the national
banks have established branches in foreign countries, while others have
subscribed to stock in banking corporations organized under State laws
which engage in a foreign or in an international banking business.
As our foreign trade continues to develop., it rray reasonably be
expected that the foreign activities of banks organized in the United States
will continue to increase and that banks organized in foreign countries
will de•ire to enlarge the scope of their operations in the United States.
In seeking to bring about a standardization of State and national
banking laws, it is 1 therefore, very ~~ortant that this ~bject be given
careful consideration.
I have had prepared in this office a tentative analysis of those
provisions of the several State statutes which relate to foreign banking
corporations. Having only lind.ted !acUities at rr.y disposal, this analysis
1• probably incorrplete. I a~, therefore, inclosing two copies and will
a~preciata it very rr~ch if you will indicate what additions or changes
should be uade in the analysis of the laws of the Statss included in
your District.
I have assurr,ed that the language "Foreign banking corporation~n
would be held by the State courts to include corporations organized under
the laws of other countries as well as corporations organized under the
laws of other States.
I will be glad to have your views on this question, together
with any suggestions ycu rray be kind enough to n-.ake.
Sincerely yours,
Counsel.
Inclosure.
CJ
ADOLPH C. MILLER
'·
CHARLES S. HAMLIN
6.
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~:-ll39a
STATE LAWS AF.ft'BCTIHG THB OPBEA'.r!OUS OF
~,OR.L:IGN
B.l:..lltCIHG CORPO:BNiliONS.
Examination:"The superintenddnt of ban..ts shall also have the
poner to examine or cause to be examined every agency located in
this State, or any foreign bank for the purpose of ascertaining
VY'hether it has violated any lail of the State and fo:r such other
purposes and to such other matters as the superintendent m~
prescribe.•·
(Banking LaMs or Alabama, 1911. sec. 7.)
Limi tat ions on :Banking. Povmr s :-
I.
Foreign banlring corporations are denied the
right to accept deposits. of money. (;~ exception is rnade as to
banks exercising the privilege r1hen the law vas enacted.)
II.
':Chey
are allo;·;ed to trru1sact "only" the
business of:
~
1.
:Buying and selling, paying and collecting bills of exchange.
2.
Issuing letters of credit.
3.
Rocciving
transmitting the same.
4.
mon~
for transmission or
Making loans.
{California Ba.nk.Act, as amended 1911, sec •. 7.)
Conditions precedent to
~ransacting :Business~
No foreign corporation may transact a ba.J.lking
business in the State 'I.Ti thout first complying iJi th all the requiremellts of the State la11s relative to barurs, nor until it has as!:li~ned
to its business in the State the &~ount of paid-up capital and surplus required by the balil::ing la~.r for the transaction of such business
Within the .State. and has received a. cer-tificate f1·om the superLltendent of ban:cs.. (CalifOlllia Bank .Act, as ar.1e~1ded 1917 1 sec. 7.)
!i;.
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X-1139a
CALiiORNIA CONT'D
Must lteep Separate Accounts. etc.~he capital of any foreign banking corporation
to its business in the State and all funds, deposits,
and acco-ants incident to its business in the State must be kept
separate and apart from its general business, assets and accounts,
in th~ same rnannor a:; if the bus inoss conducted -,11 thin the State
was of a SCl}aratc and independent corporation organized under the
St.1te J.a,ts .. (Califo:-..nia Bank .Act, as a.;.:ae;,.Jdcd Eil7, sec. 7.)
aH-i_~;ned
88
X-1139D.
'
'·.
Qalifornia Cont'd.
Funds in the State Security for
Deposits:~
"Stlch funds and invost.:.1ents or loans thereof shall
be appropriated solely to the security and payment of such deposits,
and shall not bo mingl Gd with thtJ invcst;nents of tho capital stock
Ol" othor money or proporty bolon;;ing to such corporation or bo liable for the debts or obligations thereof • 11 (California Bank Act,
as amended 1917, sec. 7.)
Disposition of Income from Funds in the State:
"All income rucoived from the investment of said
funds over and above such nu1ds as may be paid to depositors a$
interest or shall be carried to the surplus £und,***sl1all accrue
as profits to tho corporation and may be transferred to its
general f'unds. 11 (California Bank Act, as amended 1917, soc, 7.)
Subject to State
Supe1~ision
and Regulation:-
Foreign banlting corporations transacting business
in the State arc subject to tho supervision of the State superintendent of banl{s, and must conduct all their business in accordance
With the State banking laws. (California Bank Act, as amended 1917,
sec,. 7.}
Sub,iect to State Limitations on Loans, Investments, etc.:·All Of the provisions of' tho State law affecting
inyostmcnts, loans, deposits and conducting business in ~ respect
apply to such assigned capital, investments, loans, deposits. assets,
fUnds and business in the same manner as if they constituted tho
business of a separate and independent corporation. (California
Bank .~.~ct., as amended 1917, sec. 7.)
Same-Exceptions:But, if' a foreign corporation has assi6lled to its
in the State a paid-up capital and surplus equal to 20Cfo
of its deposit liability to xesidents of the State, it may make
loans based on its entire paid-up capital and. sur)lus.. {California
B.; rue Act • as a:nended 1917 • see. 7.)
busi::~ess
''lTothing in this a.et sll.Bll limit or affect the right
of any forcign eorpor,ltion doing a banl::ing busL1ess in this State, ~
l~:n.d. '·Tithin tl1is State, aoneys of such cor:>orntion ·;;rhich do :not for,a
a. ~12:..t of t~.H~ ·~1o:noys, d.t:.posi ts or ;.1ssots of "-•ClJ. corporation asf>i~3d.
89
90
X-ll39a
-3-
California Cont'd.
or belonging to its business in this Stato. 11
asamandod 1917, sec. 7.)
(California Bank: Act.
Loans by Corporations having no Offices in the State:"This section shall not be construed to prohibit
foreign banking corporations, which do not maintain an office in
this State for the transaction of business, from making loans in
this State secured by mortgages on real property, nor from accepting assignments of mortgages covering real property situated in
this State, nor from Inaking loans through correspondents which
are engaged in the business of banking in this State under the
laws of this State." (California Bank Act, as amended 1917, sec.
7.)
Authorizing Superintendent to Receive Service of Process:No foreign corporation may transact any banking
business in tho State until it has appointed the superintendent
of banks its attorney, upon whom all process issued in the State
may be served, "with the same effect as if such corporation was
formed under the laws of this State and had been lawfully served
with process therein. Such service upon such attorney shall be
deemed personal service on such co:cporation." (California Bank
Act, as amended 1917, sec.7.)
Examination:The superintendent of banks bas power to examine
any foreign banking corporation. (California Bank Act, as amended
1917, sec. 124.)
Reports:Every foreign corporation transacting the business
of banking in the State must make the same reports of condition, so
far as its business in the State is concerned, as is required of do-:mestic banks. (California Bank Aot, as amonded 1917, sec. 130.)
Representatives of Foreign Banking Corporations:Representatives of foreign banking corporations may
maintain offices in the State vthich do not purport to be tho places
of business of banks or trust companies; but they must obtain licenses
from the superintendent of ba.ru;:o~ which he may re:fuse or revoke at
his discretion. (Cz.lifornia Ba.nk Let, ab a~onded 1917, soc.l2-c.)
);.
!,.;.
COLORADO
... _
Authority to Bngage in Baru<ing:There is no provision specifically affecting foreign
banks; but the following ~novidon might be construed to prohibit
them from engaging in business in the State;
I:f' the State :Oank Commissioner shall bo
satisfied that a bank has been legally organized in full
conformity with the provisions of this n.ct. and the capital
thereof paid in cash, he shall issue***to such bank a certificate authorizinJ it to conduct the business proposed,
and no bank shall advertise or hold itself out as engaged
in banking nor shall it transact any business until so authorized." (Colorado Sessions .I8.ws 1913, Chap. 44, sec. 9.)
11
CONN.EOTICW:
Foreign ba.nl:~s may transact business only as "private
bankers;" and must doposi t vvi th the treasurer of the State surety
bonds or securities in the amount of ~~20,000.00. if located in a
city of town having a population of 20,000 or less, or in the amount
of ~40,000.00, if located ~n a city or tov~n having a population of
over 20,000. {Public Acts 1915, Chap. 328; Public Acts 1917, Chap.
397.)
Banking Powers Denied:-
....
"No foreig'll corporation as aforesaid shall, within
the limits of this State, by any implication or construction, be
de3lled to possess the power of discounting bills, notes, or other
evidences of debt, of receiving deposits. of buying gold or silver
bullion or foreign coin. of buying and selling bills of exchange,
or of issuin3 bills. notes or other evidences of ~lebt upon loan
for circulation as money, anything in its cl:;14.rtcr or articles of
incorpontion to the contrary thereof uotwiths:tanding • .; (.Vela.ware
Code, Soc. 2101-g.)
:t!~LO.dlDA
May not Bngage in Banlt:ing:"l~o person, firm or com,_;-1.ny shall be allowed to
conduct a bankiug business in this ::.>tate witl1out boing incorporated
under th0 banking laws Of this State, or being authorized to do
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X-1139.-.
business under the National Banking Laws, except as otherwise
prdvidod in this Act."
The sole exception provided irl ~~e act is that
pefsorls- firms, or companies engaged in a private banking DUsiness
at tho time of the passage of the act may bd permitted by the
Comptroller to continuo to conduct such business. ~hey must have
a capital of not less than :,,;15,000, and are subject to the banking
laws of the State. (Laws of Florida, 1915, Chap. 6812-No.6.)
IDAHO
Power to Engage in Banking:It shall be unlawful for any individual, firm or
corporation to receive money upon deposit or transact any other
form of banking business except as authorized by this Act.***"
(Idaho Banking Law, soc.62.)
Tho only authoization to engage in the business
Of banking provided for in the Act refers only to banks incorporated
under the Act itself. (See Idaho Banking Law, sec.2B.)
Power to Engage in Banking:"No corporation shall engage in the banking business,
receive deposits, and transact tho business generally done by banks
unless it is subject to and organized under the provisions of this
~it.lc, or of the bal'llcing laws of tho State heretofore cxisting.;t**"
(Code of Iowa, Title IX, chap. 12, sec. 1889.)
( SJ::}.::;
lL:~::~T
Pf_G.;::.; FOR
··~GlJ'.2UC_IT 11 )
LOUIS.I.AlJA
VVho lJay .t.'ngage in Banking in the State: "The business of banking shall be carried on only
by such incorporated associations as shall have been organized under
the laws of this State, and of the United States, by individual
citizens of tho State and by films domiciled in the State whose active
members shall be citizens of this State, provided. that no private
1:5anker or other person or pcrsoui:i not inco.rporated und.or this Act
shall bu pormi tted to use the ti tlo Bank, B.J,ni:L•g ..:~G~ociation or
Saving Bank in connection with its na.<:1c. 11 (i..ct 179 of 1902, sec.l,
as amended by Act 140 of 1906.)
93
X-11391
1.
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I
"No corporation shall engage in business other
than that expressly authorized by its articles of incorporation
or amendments thereto; nor shall any corporation, directly or
indirectly, engage in· or carry on in any way the business of
banking or insurance of any kind, unless i t has bocomo organized
under the laws relating to banking and insurance;***) Kentucky
Statutes, sec. 567.
..
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X-1139-a
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Tax on Foreign Banks:
I
l,
"All banks, banking associations, banking cor_porations or banking co~panies doing business in this State but
domiciled in other States of the Union or in foreign countries, who
rray in their own name or in the name of their agents or representatives., engage in this State in the business of lending rr.oney or
dealing in bills of exchange exclusively, shall pay a yearly license
tax of two hundred and fifty dollars to the State and lite tax to
the Nrunicipal or Parochial corporation; and in addition to said
license tax shall pay to the State an annual tax of 2-l/2 per cent.
on the gross interest earned on all rr.oney loaned., and to the 111.\nicipal or Parochial corporation a like tax of 2-l/2 per cent., and
shall be subject to no other or further taxation either by the State
or by any political subdivision thereof. "(hendment to Constitution
of Louisiana., proposed by Act 31 of 1914, and ~tified in November 1914.)
MAINE
Must pay Tax:
"Every banking association or corporation,
not incorporated under the laws of this state or of the United
States, that rr.aintains a branch or agency in this State for the
transaction of a. banking business, shall pay to the treasurer of
State a tax of three-quarters of one per cent a year on the aROunt
of such business done in this State. ***" {Revised Statutes of
Maine_, Chap. 52, sec. 67).
Must Keep Accounts and
t~ke.Reports:
Foreign banks must keep accounts and rr.ake semi.
annual reports showing the &nt:unt of rr.oney e~ployed and the business
done in the State at all t~ss. (Id., sac. 68, 69).
Power !o Engage In
Banking:
"Except as hereinbefore provided, no banking
association, unless incorporated under the laws of this State or of
the United States, shall traintain any branch or agency in this State
for the transaction of banking business. ***n (Id., sec. 70).
MASSACHUSETTS,
Power To Engage In Banking:
No foreign banking association or corporation rray
94
X-1139-a.
enga~
in banking in the State until it has obtained a certificate
authorizing it to do such business from a board composed of the
bank comn~.ssioner, the treasurer, the receiver general, and the
com:oissioner of corporations. (Massachusetts Acts, 1~6, Chap. 347,
sec. 1.).
S\lpervision and Exarninnticn:
Foreign banks doing business in the State are subject to supervisio!l. and !lxaml.nation by the State Bank Con:n:issioner,
and are subject to the equity jurisdiction of :the State Supl'en:e
Court. (lfassachusetts A.c·~s 1906, Chap. 347, sees. 1-4).
Power to do Savings Bank
~u§.iness~
No foreign banks rray engage in the business of
savings banks; except those which were doing. such business at the
tirra the statute was passed, and they rr.uet conduct such business
as a separate department and must confo~ to all the State laws
and regulations applicable to savings banks. (Massachusetts Acts
1906, chap. 377; Mass. Acts 1907, chap. 533.)
~
,
MICHIGAN
.>-._
fp;r to Engage In Bankin.&:
·.
In connection with the incorporation of banks, it ia
provided that "no bank shall transact any business except such as is
incidental and necessarily prelimina17 to ~ts organization until it
has been authorized by the comnissioner of the banking department to
c~nce. the business of banking".
(Compiled Laws of Michigan, sec.
6093) The only authorization by the ba~k commissioner to commence
the business of banking which is expressly provided for in the banking laws applies to banks newly inco•poratod under the state laws.
(See Oorrpiled Laws of Michigan, sec. 60$6.)
~SOURI
Power to Trapsa.ct Bllsiness:
•.
"No foreign banking corporation, other than a bank
OJ:'ganized under the l.aws of the United States, shall transact in this
State the business of buying, selling or collecting bills of exchange,
or of issuing letters of credit or of receiving money for transmission
or trans~~tting the sarrs by draft, check, cable or otherwise, or of
traking sterling or other loans or transacting any part of such business,
or maintaining in this State any agency for carrying on such business,
or any part thereof, unless such ; corporation shall have:
l. Been authorized by its charter to ea.«"ry on such
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x-H.39-a
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business and shall have compiled with the laws of the State or
country under which it is incorporated.
2. Furnish to the corrndssioner such proof as to the
nature and character of its business and as to its financial condition
as he rray require.
3. Designated the bank commissioner by a duly executed
instrument in writing, its true and lawful attorney, upon whom all process
in any action or proceeding by any resident of the State against it may be
served with the sane effect as if it were a domestic corporation and had
been lawfully served with pr~cess within the State.
4. Paid to the bank commissioner a license fee of two
hundred and fifty dollars.
·
5o Received a license duly issued. to it by the comnissioner as provided in se~tion fourteen of this act.
.
This section :1r·shall not be construed to prohibit foreign
banking corportations which do not ttaintain an office in this State for
the transaction of business from making loans in this State secured by
mortgages on real property, nor fron. accepting assignnants of ~ortgages
covering real property situated in this State, nor from rraking loans
through correspondents which are engaged in the business of a bank or
trust company in this State under the laws of the State. (Revised
Statutes of Missouri, Chall 2Art. II, sec. 104.)
;ond~tions
Precgdent to Doing Business:
Before conn~ncing the business of banking a foreign
corporation must be actually worth $250,000 in excess of its liabilities;
it r:rust obtain a license f:rom the bank comnissioner good for one year
and renewable from year to year; and nust comply with all the requirements of the State law. (~d., Art. I, sec. 14; Art II, sec. 103, 105).
Must Make Reports of Condition:
Foreign banks doing business in the State l'llUst
rrake written reports of its condition whenever required by the bank
commissioner. (Id. 1 Art. II, sec. 106.)
MONTMA ·
Pgwer to Engage in Bankins:
nEvery person, fir.m, company, copartnershi~, or
corporation, domestic or foreign", doing or holding itself out as doing
a banking business in the State "rr.ust have the proper capital stock paid in
X-1139-a
9 -
and set aside for the purpose of transacting such business, and
nust have received frorr. the Superintendent of Banks. as provided
for in this Act, a certificate to do a banking business."
(Montana Session Laws 1915, Chap. 89, sec. 25.) The only corporations to which the Superintendent of Banks is specifically authorized to issue certificates of authority to engage in banking
are corporations organized or to be organized under the State laws.
(See Montana Ses,~ion Laws 1915.: Chap. 89, sec. 8 1 67.)
Examination and Regulation:
"Every person, firm, co~pan~ copartnership, or
eorporation doing any of the things or transacting any of the
business defined in this section, nust transact such business
according to the provisions of the bank act, and the Superintendent
of B~nks 1 or his deputy or examiners, shall have authority to
examine the accounts, books, papers, cash and credits of every such
person, fir.m, company, copartnership, or corporation, domestic or
foreign, in order to ascertain whether such person, firm, company,
copartnership; or corporat~on ~s violated or is violating any
provisions of this section"~ (Id., sec. 25)
.
May
Foreim COrporations ...;.:. Lend Monei:
"Any corporation organized under the laws of any
country or State other than this State, which has corr.plied with
all of the laws of this State pert~1n1~g to foreign corporations,
and is not engaged in the business of banking or receiving money
on deposit in this State, may lend money in this State and, for · that
purpose rray rraintain offices in this State, and sue and be sued in
this State under its proper corporate nane, notwithstanding any
prohibitions contained in this act as to the use of any word in
the name, signs, or advertising rratter of corporations not under
the supervisionsof the Superintendent of B~ks". (Id., see. 26).
NEBRASKA
Power to Engage in Banking:
11 It shall be unlawful for any corporation, partnership, finn or individual to engage in or transact a banking business
within this State, except by means of a corporation duly organized
for such purpose under the laws of this State 11 • (Revised Statutes
of Nebraska, 1913, as a~ended 1915, sec. 281).
98
X-ll39a.
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NEVADA
Must Obtain License:
"No individual, bank, banking firm, trust company,
corporation, company,or other corporation, incorporated under the
laws ~f this State, or of any other State or territory or foreign
country, do~,ng a bankl.ng business in this St~te, except banks doing
business under the hl.ws of the United States, shall engage in the
banking business in this State without first obtaining from the bank
examiner a license in the for.m presented by him, authorizing such
individual, flr:m, corpo~tion, company, or trust company, to use
the name and trannact the business of a bank. *** 11 (Nevada B~nting
Law (as amended) Sec~io~ 47.),
NEtN HAMPSHIRE
May not do
Savin~s
Bank Business:
No person, copartnership, incorporation, or association, except savings banks incorporated in this State, and trust
companies, loan and trust corr;panies, loan and banking companies
thereto ampowered by their charters granted in this State, shall
hereafter" engage in the business of a savings bank. (New Hampshire
Laws of 1907, chap. 112.).
11
NEW YORK
Applications for Licenoe:
"Every foreign banking corporation before being licensed
by the superintendent of banks to transact in this State the business
of buying, selling, paying or collecting bills of exchinge, or of
issuing letters of credit or of receiving money for trans~ission or
transmitting the same by draft, check, cable or otherwise) or of
rr.aking sterling or other loans, or ~ny p~rt of such business, or
before rraintaining in this State any agency for carrying on such
business or any part thereof 1 shall subscribe and acknowledge and
submit to the superintendant of' . banks at his office, a separate
application certificate in duplic~te for each agency which such foreign corpor~tion proposes to establish in this State 1 which shall
specifically state:
1. The n~~ of such foreign bank corporation.
2. The place where its business is to be transacted
in this State; :lnd the naxr.e of the agent or agents through whom such
business is to be transacted.
3. The amount of its capital actu~lly p~id in cash and
the ;;~.rr:ount subscribed for and unpaid.
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4. The actual value of the assets of such corporation,
which uust be at le~st two hundred and fifty thousand dollars in
excess of its liabilitiesj and a complete and detailed statement
of its financial condition ~s of a d~te within sixty days prior
to the d~te of such a.pplic.::.tion.
At the time such application certificate is eubmitted
to the superintendent~ such corporation sh~ll also submit a duly
exemplified copy of its charter and ~ verified copy of its by-laws,
or the equivalent thereof." (New York Banking Law, sec. 144.)
Conditions Precedent to Transacting Business:
"No foreign banking corporation; other: than a bank
organized under the laws of the United States, shail transact in
this State ~he business of buying, selling or collecting bills of
exchange; or of issuing 1etters of credit or of reeei~ing moneys
for transmission or transrrJ.tting the san:e by draft, check, cable
br otherwise, or of naking sterling or other loans or transacting
any ~art of such business, or rraintaining in this State any agency
for · co.rrying on such business, or any Frt thereof, unless such
oorportation ·shall have:
l. Been authorized by its charter to carry on such
business and shall have complied with the laws of the State or country
under which it is incorporated;
2. FUrnish to the superintendent such proof as to the
nature and character of its business and as to its financial condition
as he rray require;
3. Designated the superintendent of banks by a duly
executed instrument in writing, its true and lawful attorney, upon
whom all process in any action or proceeding by any resident of the
State against it n:ay be served with the same effect as if . it were a
domestic corporation and had been lawfully served with process within the State;
4. Paid to the superintendent of banks a license fee
of tvvo hundred and fifty dollars;
5. Received a license duly issued te it by the superintendent as provided in section twenty-seven -of this chapter.
This section shall not be construed to .prohibit foreign
banking corporations which do not rr.aintain an office in this State for
the transaction of business f rorr; making loans in this State secured by
lt.ortgages on real property, nor f ron; accepting assigntrents of mortgages
covering real property situated in this State, nor from. rr.aking loans
through correspondents which are engaged in the business of banking in
this State under the laws of the State .. 11 (New York Banking La.w, sec. 145)
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X-1139-a
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nights and Privileges-Renewal and Revocation of License:
~v~en the superintendent shall have issued a license
to any such banking corporation~ it nay engage in the business specified in the inrr~diately preceding section of this article at the
location specified in such license for a period of one year from the
date of such license; and such license uay, in the discretion of the
superintendent, be re-issued from year to year upon the payrr,ent by
such foreign banking corporation of the sum of two hurldrad and fifty
dollars upon each date that such license is re-issued. No such license
shall be transferable or assignable and shall be at all times conspi~ously displayed in the place of business specified therein.
In the event that such license shall have been revoked by the superintendent~ as provided in section twenty-nine of this chapter, it
shall be surrendered to the superintendent within twenty-four hours
after such eorporati~n has received written notice of such revocation.
Whenever the superintendent shall have revoked any
such license an~ shlll have taken the action to rr~ke ~eh revocation
effective specified in section twenty~nine of this chapter, all the
rights and privileges of such foreign corporation~ to transact business
in this State shall forthwith cease and deterrrine." (New York Banking
taw, sec. 146.)
·
Reports of Condition:
"Every foreig11 banking corporation licensed by the
superintendent to engage in business in this State, shall at such
times and in such form as the superintendent shall prescribe, make
written reports to the superintendent under the oath of one of its
officers, rranagers, or agents transacting business in this State,
showing the amount of its assets and liabilities and containing such
other ~atters as the superintendent shall prescribe. ***" (New York
Banking Law, sec. 147).
·
May Not Do Savings <+nd Loan Business:
"No foreign corporation shall transact the business of
a savings and loan association within this State or rraintain an office
in the State for the purpose of transacting such business .. ~·~~(New York Banking Law, sec. 420.)
NORIJ'H
. Ban k J.ng:
.
P. r~we r t 0 En gage :m
. DAKOTA
"No person except national banking corporations shall
transact a banking business nor use the words bank, banking company
101.
X-1139-a
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or banker in any sign, advertisanent, latter head or envelope or
in any corporate or fj~m nane, without complying with and organizing
under the provisions of this chapter." (Complied Laws cf North Dakota,
1913, Chap. 28, sac. 5177.)
Power to Engage in Bankiug:
"No bank or 'banking institution incorporated under
the laws of any other State, shall be permitted to receive deposits,
or transact banking b~niness of any kind in this State, except to
lend money, II (General Code of Ohio, sec. 9796.)
OKLAHOMA
Power to
Eng~ge
in Banking:
.out
"It sha.li be tinlawful for any individualJ firm;
tion, or corporation to receiV$ money upon deposit or transact
banking business except as authorized by the laws of the State
Oklahorra, or of the United States. ***" {Oklahoma Session Laws
as so cia•
a
of
1915,
p. 98.).
The only banks expressly authorized to engage in
banking by the Oklahona laws are those organized under such laws.
(See Harris-Day Code of Oklahorra, sec. 258.)
OREGON
Conditions Preced@nt to Doing Business:
Before transacting businees in the State, every
foreign corporation rr.ust file certain dealarations and statements,
pay an entrance fee, appoint sons resident of the State its attorney
to receive service of process and must obtain from the Secretary of
State a certificate of authority tQ do business in the State. (Lord's
Oregon Laws, sec. 5726, 6727, 2728.)
R!ghts apd Powftrs:
Upon compl~nce with the State laws, foreign corporations
have the sarra rights, powers, and privileges as corporations incorporated
under the State laws. (Lord's Oregon Laws, sac. 5736.)
AnnuN. Sta.terr.ents and License Fees:
Foreign corporations nust file annual statements of
their condition and pay annual license fees to the State authorities.
102
X-1139-a
- 14 -
(Lord•s Oregon Laws~ sec. 6707; Oregon Laws
Oregon Laws 1913J chap~ 381.)
M..tst Maintain Certain capital in the
1911~
chap. 50;
S~
"Every foreign bank heretofore having established
or hereafter rraintaining one or rr.ore offices in this S1;ate shall
have~and at alJ. t:i.rr.es rr.aintain at every such office a capital of
not less than the arnou:>1t req-:.1ired bj!l this Act for the 6organizaticn
of other banks; and no for.eigr.~ bank or bankers shaJ.l set forth on
the sta!ionery of such bank, or in any rranner advertise, in the place
where such office or offices are located,. a greate1.· ce.pital 1 surplus
or undivided profits than are actually rra~tained at any office or
offices within this State.: and such foreign bank or ba1Jker shall at
all times rraintain a capital and surplus which n:ust equal at least
ten per cent of the deposit liabilities of such foreign bank or banker."
(Lordls Oregon Laws, sec. 4591.}
Subjes;t to State Lans:
"Every foreign bank doing business.in this State
shall be subject to. all the provisions of this Act to the same extent
as banks or bankers organized or doing business under or by virture
of the laws of this State. ***" (Lordts Oregon Laws, sec. 4592.)
Oa.ths of Of Ecers:
The officers, nanagers and·agents of foreign
banks doing business in the State must subscribe to the same
oath of office as is required of the directors of domestic banks.
(Lord 1 s Oregon Laws, as arr.ended.l915, sec. 4572 (a).)
Examinations!
"The na.nagers, officers or agents of foreign banks
doing business in the State nust nake the same semi annual examinations as is required of State banks and rr.ust file reports thereof
with
the State superintendent of banks." (Lordrs Oregon Laws, as
amended 1915, sec. 4572 (d).2
EHODE ISLAND
Power to Engage In Banking:
"No corporation, either domestic or foreign, and no
person, partnership or association, except banksJ savings banks 1
or trust companies incorporated under the laws of this State" shall
transact or hold itself out as tran~cting the business of a bank,
savings bank or trust company. (General Laws of Rhode Island, title
XXII, chap 237, sec. 23.)
X-l139ai03
-15~
SOUTH .DAKOTA
Power to Engage in
Banki~g:-
' 1 It shall be unlawful for any individual., firm
or OOI?Ora. tion to advertise, publish or otilerwiso represent that
they are engaged in tl1e ban."l:;:ing busi.i.1e~s; ;;i thout first having
obtained 8.ut~1o:rity from t:·w public cxa.;.1L1e1· ~s herein provided.
***'i
(·';outh Dakota Bank Gua1-:nty l.-J..w, £.1·t.II, scc .. 51.)
':£:i1e only baruc:;, which the :)ublic examiner is specific:llly ;:n~t:1orizod to gr2nt authority to o~1.:;age in the banking
business are tho~e newly inCo:i:'Porated uncler t.w State law. (See
l:>o~J.th Dakota Bank Guar·ant;:r kl.vv, Jl.rt. II, ;:;ec .. 9.)
.Lxamin":"..tion:-
!
.' 1 Tho Superintendent of Banks shall also have the
power to examine f or cause to be e~~a.nined, every agency located
in this State of any foreign ba1.ik or banking corporation, in the
sa.ne manner and :for the same purpose as he shall examine domestic
banks .. " (General Banking Act of r:I!ennesseoj soc. 7.)
Power to J::::ngage in Banking:t~No foreign corporation other than the national
banln:. of the United States shall be permitted to do a busi11oss
of banking nnd discount in this 8tate. 11 (Texas Acts 1905, i.i .. S.
p. 511., sec. 79.}
Must Comply with State Laws:11 No foreign corporation shall transact a banking
business in this. state without first complying with all tho requirements of the laws of this state relating to banks, as defined
in this a.ct, and without having the capital p.<tid up in this state,
as required by this act, and wi tl1out having complied with t:13
other laws of this state rel:l.ting to foreign corporations.''
(Laws of Utah, 1911, Chap. 25, soc. 22.)
Reports of Condition:
to
~'oreign banks 2.::.-·o required
nia.ke t:u GCli11e
s.uarterly reports of co"1dition to the State bank co::ui:.:;;,ionor
X-1139:?.
10 1
-16as domestic banks arc required to make.
chap. 25, sec. 36.}
(.Ia.ws of Utah, 1911,
VIRGINIA
Power to Engage in Banking:"No person, copartnership or corporation, oxcupt
corporations duly chartered and alroady conducting tho business
of banldng under authority of tho law of this state or of tho
United States, or v1hich shall hereafter be incorporated under
the provisions of this act. or authorized to do business under
tho banking laws of tho United States, shall engage in tho business
of banking in this State.***" (Virginia Code, soc .. 1170, as amended
lila.rch 13, 1912.)
W'ASHIUGTON
Vfuat
Busincs~
Foroigg BgnKS,
~y
Transact:-
''A foreign corporation; v1hos o name contains tho
words "bank", ''banlmr", 11 bnnldng", or utrust", or whoso al'ticlos
of incorporation ctnpowJr it to do a banldng or trust business and
which dosiros to ongago in tho bus inoss of loaning money on mortgage socuritios or in buying and selling uxcbaugu, coin, bullion,
or securities in this state may do so, but only upon filing with
tho state bank oxaminor and vlith tho secretary of state a cortifiJd copy of a resolution of its governing board to tho effect
t1nt it will not ongago in banl~ing or tl:'U.ct bu~inoss in this st~te,
which co)y shall be duly attested b~ its lJresidm1t and secretary.
Such corporation 3hall also co;-.l)iy with th:J gonc:..·a.l corporation
laws of' this State rol'lting to foreign corpor!ltions doing businoss
heroin. 11 Chshington Bank Lavl.s 1917, uac. 52)
Branches of Foreign. Banl-=s .Already Doing Bushwss:"A branch of any forei :_..11 bank or banker actually
c1nd ,J'-lJlicly ong.~.god in b-:.uJdng in this state in full compliance
-:;rith t:1.; laws l1orcof, w:1ich were in force im,-;1Cdii1toly prior to tho
t L1e \;rhon this law boconos opor2 t i vc and whicll branch lm& a c,:::pi tal
not lGss in amount than t1nt r:..;quire;G. for tho orgc1niz:..ttion of a.
Bt::J.to ban.:c 'lG proviC'.ocl in t~1iL act :ct t~1c tit.1G and placo >vhJn and
whore such oranch was er;t?.,bliGhecl, 1:1ay cm1tinuc its s.:1id. businos:::;,
subj-Jct to all of the re__,ulation::. and supcH'ViGion provided for ban::s. t>
(.iashin:;ton Bnn::c fu\ls, 1Sl7, .::;:;c. 53.)
X
x-1139a
-1?WEST
105
VIRGINIA
Poyor to Epsago in Banking:.
"It shall be unlawful for any individual or association of individuals 4,oing business in this state to usc in
connection with such ba.sinoss tho term "bank, u nba.nkeT. n "banking company, u or *'tru.st company." or receive deposits~ or sell
to:reign exchange, until thoy shall have takcm out a charter a.nd
60Dlpliud with. tho statues 60VGrning banks ~ truot conr_.;>anios. n
(,/est Virginia Banking la\v.:,; as amon.dod, ::.:.c. 78.)
·Power ·to· .§ngago in B-nej.:.:£
. .
"No batlk s.hall tt~act any wsLiass_. oic•pt such
ae is incidontal o1 nooossariit prelimit'lal7 to its organization,
-q.nt11 it has· boon t'ogUJ.a.rly au:thori•ed by tho oomnissionor of
banltillB' to .com:nonec. tlio bu_ainoi3s Of banlting. * . (wisconsin Statutos
df l.915' SO·C• ~24•10j
.
~
~ only ·banks which the coumi.ssi oner of banking
is spaci:tically ompoworod to authorize to ooranenoo the business
of banking arc banks newly incorporated undor ~he laws Qf tho
State. (Sea Wisconsin Statutos of ~915. sec •. 2024-12.) .
WYCUING
••No bod¥ politic or corporate (oxoopt national banks)
shall establish a bank or engage in the businass .of.banklng, of any
kind. or ca~17 on or maintain any loan or tru.st business without
tully complying With the ox.pross proviei ons of this chapt·er. •• ( Oom.pi~ed Statutes of \qoming, 1910. Chap. 269, soo. 40?4.)
l
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@FedFRASER