association as the Director determines to be necessary to protect the safety and soundness of the savings association. (b) EXTENSIONS OF CREDIT TO EXECUTIVE OFFICERS, DIRECTORS, AND PRINCIPAL SHAREHOLDERS.— (1) IN GENERAL.-Subsections (g) and (h) of section 22 of the Federal Reserve Act shall apply to every savings association in the same manner and to the same extent as if the savings association were a member bank (as defined in such Act). (2) ADDITIONAL RESTRICTIONS AUTHORIZED.-The Director may impose such additional restrictions on loans or extensions of credit to any director or executive officer of any savings association, or any person who directly or indirectly owns, controls, or has the power to vote more than 10 percent of any class of voting securities of a savings association, as the Director determines to be necessary to protect the safety and soundness of the savings association. (c) ADMINISTRATIVE ENFORCEMENT.-The Director may take enforcement action with respect to violations of this section pursuant to section 8 or 18(j) of the Federal Deposit Insurance Act, as appropriate. SEC. 12. [12 U.S.C. 1468a] ADVERTISING. No savings association shall carry on any sale, plan, or practices, or any advertising, in violation of regulations promulgated by the Director. SEC. 13. [12 U.S.C. 1468b] POWERS OF EXAMINERS. For the purposes of this Act, examiners appointed by the Director shall (1) be subject to the same requirements, responsibilities, and penalties as are applicable to examiners under the Federal Reserve Act and title LXII of the Revised Statutes; and (2) have, in the exercise of functions under this Act, the same powers and privileges as are vested in such examiners by law. SEC. 14. [12 U.S.C. 1468c] SEPARABILITY PROVISION. If any provision of this Act, or the application thereof to any person or circumstances, is held invalid, the remainder of the Act, and the application of such provision to other persons or circumstances, shall not be affected thereby. INTERNATIONAL BANKING ACT OF 1978 AN ACT To provide for Federal regulation of participation by foreign banks in domestic financial markets. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SHORT TITLE; DEFINITIONS AND RULES OF CONSTRUCTION SECTION 1. [12 U.S.C. 3101 note] (a) This Act may be cited as the "International Banking Act of 1978”. (b) [12 U.S.C. 3101] For the purposes of this Act (1) "agency" means any office or any place of business of a foreign bank located in any State of the United States at which credit balances are maintained incidental to or arising out of the exercise of banking powers, checks are paid, or money is lent but at which deposits may not be accepted from citizens or residents of the United States; (2) "Board" means the Board of Governors of the Federal Reserve System; (3) "branch" means any office or any place of business of a foreign bank located in any State of the United States at which deposits are received; (4) "Comptroller" means the Comptroller of the Currency; (5) "Federal agency" means an agency of a foreign bank established and operating under section 4 of this Act; (6) "Federal branch" means a branch of a foreign bank established and operating under section 4 of this Act; (7) "foreign bank" means any company organized under the laws of a foreign country, a territory of the United States, Puerto Rico, Guam, American Samoa, or the Virgin Islands, which engages in the business of banking, or any subsidiary or affiliate, organized under such laws, of any such company. For the purposes of this Act the term "foreign bank" includes, without limitation, foreign commercial banks, foreign merchant banks and other foreign institutions that engage in banking activities usual in connection with the business of banking in the countries where such foreign institutions are organized or operating; (8) "foreign country" means any country other than the United States, and includes any colony, dependency, or possession of any such country; (9) "commercial lending company" means any institution, other than a bank or an organization operating under section 25 of the Federal Reserve Act, organized under the laws of any State of the United States, or the District of Columbia which maintains credit balances incidental to or arising out of the exercise of banking powers and engages in the business of making commercial loans; (10) "State" means any State of the United States or the District of Columbia; (11) "State agency" means an agency of a foreign bank established and operating under the laws of any State; (12) "State branch" means a branch of a foreign bank established and operating under the laws of any State; (13) the terms "affiliate", "bank", "bank holding company", "company", "control", and "subsidiary" have the same meanings assigned to those terms in the Bank Holding Company Act of 1956, and the terms "controlled" and "controlling" shall be construed consistently with the term "control" as defined in section 2 of the Bank Holding Company Act of 1956; (14) "consolidated" means consolidated in accordance with generally accepted accounting principles in the United States consistently applied; (15) the term "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, or State agency; (16) the term "office" means any branch, agency, or representative office; and (17) the term "State bank supervisor" has the meaning given to such term in section 3 of the Federal Deposit Insurance Act. [§§ 2 and 3 made amendments to other Acts] FEDERAL BRANCHES AND AGENCIES SEC. 4. [12 U.S.C. 3102] (a) ESTABLISHMENT AND OPERATION OF FEDERAL BRANCHES AND AGENCIES. (1) INITIAL FEDERAL BRANCH OR AGENCY.-Except as provided in section 5, a foreign bank which engages directly in a banking business outside the United States may, with the approval of the Comptroller, establish one or more Federal branches or agencies in any State in which (1) it is not operating a branch or agency pursuant to State law and (2) the establishment of a branch or agency, as the case may be, by a foreign bank is not prohibited by State law. (2) BOARD CONDITIONS REQUIRED TO BE INCLUDED.—In considering any application for approval under this subsection, the Comptroller of the Currency shall include any condition imposed by the Board under section 7(d)(5) as a condition for the approval of such application by the agency. (b) In establishing and operating a Federal branch or agency, a foreign bank shall be subject to such rules, regulations, and orders as the Comptroller considers appropriate to carry out this section, which shall include provisions for service of process and maintenance of branch and agency accounts separate from those of the parent bank. Except as otherwise specifically provided in this Act or in rules, regulations, or orders adopted by the Comptroller under this section, operations of a foreign bank at a Federal branch or agency shall be conducted with the same rights and privileges as a national bank at the same location and shall be subject to all the |