---
kind: "section"
citation: "12 U.S.C. § 1831u"
title: "12"
title_heading: "Banks and Banking"
number: "1831u"
heading: "Interstate bank mergers"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/1831u"
units:
  - "Chapter 16 — Federal Deposit Insurance Corporation"
---

# §1831u. Interstate bank mergers

- (a) **Approval of interstate merger transactions authorized—**
  - (1) **In general—** Beginning on June 1, 1997, the responsible agency may approve a merger transaction under [section 1828(c) of this title](/usc/12/1828.md?p=c) between [insured banks](/usc/12/1813.md?p=h) with different home [States](/usc/12/1813.md?p=a-3), without regard to whether such transaction is prohibited under the law of any [State](/usc/12/1813.md?p=a-3).
  - (2) **State election to prohibit interstate merger transactions—**
    - (A) **In general—** Notwithstanding [paragraph (1)](#a-1), a merger transaction may not be approved pursuant to [paragraph (1)](#a-1) if the transaction involves a [bank](/usc/12/1813.md?p=a-1) the home [State](/usc/12/1813.md?p=a-3) of which has enacted a law after September 29, 1994, and before June 1, 1997, that—
      - (i) applies equally to all out-of-[State banks](/usc/12/1813.md?p=a-2); and
      - (ii) expressly prohibits merger transactions involving out-of-[State banks](/usc/12/1813.md?p=a-2).
    - (B) **No effect on prior approvals of merger transactions—** A law enacted by a [State](/usc/12/1813.md?p=a-3) pursuant to [subparagraph (A)](#a-2-A) shall have no effect on merger transactions that were approved before the effective date of such law.
  - (3) **State election to permit early interstate merger transactions—**
    - (A) **In general—** A merger transaction may be approved pursuant to [paragraph (1)](#a-1) before June 1, 1997, if the home [State](/usc/12/1813.md?p=a-3) of each [bank](/usc/12/1813.md?p=a-1) involved in the transaction has in effect, as of the date of the approval of such transaction, a law that—
      - (i) applies equally to all out-of-[State banks](/usc/12/1813.md?p=a-2); and
      - (ii) expressly permits interstate merger transactions with all out-of-[State banks](/usc/12/1813.md?p=a-2).
    - (B) **Certain conditions allowed—** A host [State](/usc/12/1813.md?p=a-3) may impose conditions on a branch within such [State](/usc/12/1813.md?p=a-3) of a [bank](/usc/12/1813.md?p=a-1) resulting from an interstate merger transaction if—
      - (i) the conditions do not have the effect of discriminating against out-of-[State banks](/usc/12/1813.md?p=a-2), out-of-[State bank](/usc/12/1813.md?p=a-2) holding [companies](/usc/12/1813.md?p=w-7), or any [subsidiary](/usc/12/1813.md?p=w-4) of such [bank](/usc/12/1813.md?p=a-1) or [company](/usc/12/1813.md?p=w-7) (other than on the basis of a nationwide reciprocal treatment requirement);
      - (ii) the imposition of the conditions is not preempted by Federal law; and
      - (iii) the conditions do not apply or require performance after May 31, 1997.
  - (4) **Interstate merger transactions involving acquisitions of branches—**
    - (A) **In general—** An interstate merger transaction may involve the acquisition of a branch of an [insured bank](/usc/12/1813.md?p=h) without the acquisition of the [bank](/usc/12/1813.md?p=a-1) only if the law of the [State](/usc/12/1813.md?p=a-3) in which the branch is located permits out-of-[State banks](/usc/12/1813.md?p=a-2) to acquire a branch of a [bank](/usc/12/1813.md?p=a-1) in such [State](/usc/12/1813.md?p=a-3) without acquiring the [bank](/usc/12/1813.md?p=a-1).
    - (B) **Treatment of branch for purposes of this section—** In the case of an interstate merger transaction which involves the acquisition of a branch of an [insured bank](/usc/12/1813.md?p=h) without the acquisition of the [bank](/usc/12/1813.md?p=a-1), the branch shall be treated, for purposes of this section, as an [insured bank](/usc/12/1813.md?p=h) the home [State](/usc/12/1813.md?p=a-3) of which is the [State](/usc/12/1813.md?p=a-3) in which the branch is located.
  - (5) **Preservation of State age laws—**
    - (A) **In general—** The responsible agency may not approve an application pursuant to [paragraph (1)](#a-1) that would have the effect of permitting an out-of-[State bank](/usc/12/1813.md?p=a-2) or out-of-[State bank](/usc/12/1813.md?p=a-2) holding [company](/usc/12/1813.md?p=w-7) to acquire a [bank](/usc/12/1813.md?p=a-1) in a host [State](/usc/12/1813.md?p=a-3) that has not been in existence for the minimum period of time, if any, specified in the statutory law of the host [State](/usc/12/1813.md?p=a-3).
    - (B) **Special rule for State age laws specifying a period of more than 5 years—** Notwithstanding [subparagraph (A)](#a-5-A), the responsible agency may approve a merger transaction pursuant to [paragraph (1)](#a-1) involving the acquisition of a [bank](/usc/12/1813.md?p=a-1) that has been in existence at least 5 years without regard to any longer minimum period of time specified in a statutory law of the host [State](/usc/12/1813.md?p=a-3).
  - (6) **Shell banks—** For purposes of this subsection, a [bank](/usc/12/1813.md?p=a-1) that has been chartered solely for the purpose of, and does not open for business prior to, acquiring [control](/usc/12/1813.md?p=w-5) of, or acquiring all or substantially all of the assets of, an existing [bank](/usc/12/1813.md?p=a-1) or branch shall be deemed to have been in existence for the same period of time as the [bank](/usc/12/1813.md?p=a-1) or branch to be acquired.
- (b) **Provisions relating to application and approval process—**
  - (1) **Compliance with State filing requirements—**
    - (A) **In general—** Any [bank](/usc/12/1813.md?p=a-1) which files an application for an interstate merger transaction shall—
      - (i) comply with the filing requirements of any host [State](/usc/12/1813.md?p=a-3) of the [bank](/usc/12/1813.md?p=a-1) 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](/usc/12/1813.md?p=a-2) or out-of-[State bank](/usc/12/1813.md?p=a-2) holding [companies](/usc/12/1813.md?p=w-7) or [subsidiaries](/usc/12/1813.md?p=w-4) of such [banks](/usc/12/1813.md?p=a-1) or [bank holding companies](/usc/12/1813.md?p=w-2); and
        - (II) is similar in effect to any requirement imposed by the host [State](/usc/12/1813.md?p=a-3) on a nonbanking corporation incorporated in another [State](/usc/12/1813.md?p=a-3) that engages in business in the host [State](/usc/12/1813.md?p=a-3); and
      - (ii) submit a copy of the application to the [State bank supervisor](/usc/12/1813.md?p=r-1) of the host [State](/usc/12/1813.md?p=a-3).
    - (B) **Penalty for failure to comply—** The responsible agency may not approve an application for an interstate merger transaction if the applicant materially fails to comply with [subparagraph (A)](#b-1-A).
  - (2) **Concentration limits—**
    - (A) **Nationwide concentration limits—** The responsible agency may not approve an application for an interstate merger transaction if the resulting [bank](/usc/12/1813.md?p=a-1) ([including](/usc/12/1813.md?p=t-1) all [insured depository institutions](/usc/12/1813.md?p=c-2) which are [affiliates](/usc/12/1813.md?p=w-6) of the resulting [bank](/usc/12/1813.md?p=a-1)), upon consummation of the transaction, would [control](/usc/12/1813.md?p=w-5) more than 10 percent of the total amount of [deposits](/usc/12/1813.md?p=l) of [insured depository institutions](/usc/12/1813.md?p=c-2) in the United States.
    - (B) **Statewide concentration limits other than with respect to initial entries—** The responsible agency may not approve an application for an interstate merger transaction if—
      - (i) any [bank](/usc/12/1813.md?p=a-1) involved in the transaction ([including](/usc/12/1813.md?p=t-1) all [insured depository institutions](/usc/12/1813.md?p=c-2) which are [affiliates](/usc/12/1813.md?p=w-6) of any such [bank](/usc/12/1813.md?p=a-1)) has a branch in any [State](/usc/12/1813.md?p=a-3) in which any other [bank](/usc/12/1813.md?p=a-1) involved in the transaction has a branch; and
      - (ii) the resulting [bank](/usc/12/1813.md?p=a-1) ([including](/usc/12/1813.md?p=t-1) all [insured depository institutions](/usc/12/1813.md?p=c-2) which would be [affiliates](/usc/12/1813.md?p=w-6) of the resulting [bank](/usc/12/1813.md?p=a-1)), upon consummation of the transaction, would [control](/usc/12/1813.md?p=w-5) 30 percent or more of the total amount of [deposits](/usc/12/1813.md?p=l) of [insured depository institutions](/usc/12/1813.md?p=c-2) in any such [State](/usc/12/1813.md?p=a-3).
    - (C) **Effectiveness of State deposit caps—** No provision of this subsection shall be construed as affecting the authority of any [State](/usc/12/1813.md?p=a-3) to limit, by statute, regulation, or order, the percentage of the total amount of [deposits](/usc/12/1813.md?p=l) of [insured depository institutions](/usc/12/1813.md?p=c-2) in the [State](/usc/12/1813.md?p=a-3) which may be held or controlled by any [bank](/usc/12/1813.md?p=a-1) or [bank holding company](/usc/12/1813.md?p=w-2) ([including](/usc/12/1813.md?p=t-1) all [insured depository institutions](/usc/12/1813.md?p=c-2) which are [affiliates](/usc/12/1813.md?p=w-6) of the [bank](/usc/12/1813.md?p=a-1) or [bank holding company](/usc/12/1813.md?p=w-2)) to the extent the application of such limitation does not discriminate against out-of-[State banks](/usc/12/1813.md?p=a-2), out-of-[State bank](/usc/12/1813.md?p=a-2) holding [companies](/usc/12/1813.md?p=w-7), or [subsidiaries](/usc/12/1813.md?p=w-4) of such [banks](/usc/12/1813.md?p=a-1) or holding [companies](/usc/12/1813.md?p=w-7).
    - (D) **Exceptions to subparagraph (B)—** The responsible agency may approve an application for an interstate merger transaction pursuant to [subsection (a)](#a) without regard to the applicability of [subparagraph (B)](#b-2-B) with respect to any [State](/usc/12/1813.md?p=a-3) if—
      - (i) there is a limitation described in [subparagraph (C)](#b-2-C) in a [State](/usc/12/1813.md?p=a-3) statute, regulation, or order which has the effect of permitting a [bank](/usc/12/1813.md?p=a-1) or [bank holding company](/usc/12/1813.md?p=w-2) ([including](/usc/12/1813.md?p=t-1) all [insured depository institutions](/usc/12/1813.md?p=c-2) which are [affiliates](/usc/12/1813.md?p=w-6) of the [bank](/usc/12/1813.md?p=a-1) or [bank holding company](/usc/12/1813.md?p=w-2)) to [control](/usc/12/1813.md?p=w-5) a greater percentage of total [deposits](/usc/12/1813.md?p=l) of all [insured depository institutions](/usc/12/1813.md?p=c-2) in the [State](/usc/12/1813.md?p=a-3) than the percentage permitted under [subparagraph (B)](#b-2-B); or
      - (ii) the transaction is approved by the appropriate [State bank supervisor](/usc/12/1813.md?p=r-1) of such [State](/usc/12/1813.md?p=a-3) and the standard on which such approval is based does not have the effect of discriminating against out-of-[State banks](/usc/12/1813.md?p=a-2), out-of-[State bank](/usc/12/1813.md?p=a-2) holding [companies](/usc/12/1813.md?p=w-7), or [subsidiaries](/usc/12/1813.md?p=w-4) of such [banks](/usc/12/1813.md?p=a-1) or holding [companies](/usc/12/1813.md?p=w-7).
    - (E) **Exception for certain banks—** This paragraph shall not apply with respect to any interstate merger transaction involving only affiliated [banks](/usc/12/1813.md?p=a-1).
  - (3) **Community reinvestment compliance—** In determining whether to approve an application for an interstate merger transaction in which the resulting [bank](/usc/12/1813.md?p=a-1) would have a branch or [bank](/usc/12/1813.md?p=a-1) [affiliate](/usc/12/1813.md?p=w-6) immediately following the transaction in any [State](/usc/12/1813.md?p=a-3) in which the [bank](/usc/12/1813.md?p=a-1) submitting the application (as the acquiring [bank](/usc/12/1813.md?p=a-1)) had no branch or [bank](/usc/12/1813.md?p=a-1) [affiliate](/usc/12/1813.md?p=w-6) immediately before the transaction, the responsible agency shall—
    - (A) comply with the responsibilities of the agency regarding such application under [section 2903 of this title](/usc/12/2903.md);
    - (B) take into account the most recent written evaluation under [section 2903 of this title](/usc/12/2903.md) of any [bank](/usc/12/1813.md?p=a-1) which would be an [affiliate](/usc/12/1813.md?p=w-6) of the resulting [bank](/usc/12/1813.md?p=a-1); and
    - (C) take into account the record of compliance of any applicant [bank](/usc/12/1813.md?p=a-1) with applicable [State](/usc/12/1813.md?p=a-3) community reinvestment laws.
  - (4) **Adequacy of capital and management skills—** The responsible agency may approve an application for an interstate merger transaction pursuant to [subsection (a)](#a) only if—
    - (A) each [bank](/usc/12/1813.md?p=a-1) involved in the transaction is adequately capitalized as of the date the application is filed; and
    - (B) the responsible agency determines that the resulting [bank](/usc/12/1813.md?p=a-1) will be well capitalized and well managed upon the consummation of the transaction.
  - (5) **Surrender of charter after merger transaction—** The charters of all [banks](/usc/12/1813.md?p=a-1) involved in an interstate merger transaction, other than the charter of the resulting [bank](/usc/12/1813.md?p=a-1), shall be surrendered, upon request, to the [Federal banking agency](/usc/12/1813.md?p=z) or [State bank supervisor](/usc/12/1813.md?p=r-1) which issued the charter.
- (c) **Applicability of certain laws to interstate banking operations—**
  - (1) **State taxation authority not affected—**
    - (A) **In general—** No provision of this section shall be construed as affecting the authority of any [State](/usc/12/1813.md?p=a-3) or political subdivision of any [State](/usc/12/1813.md?p=a-3) to adopt, apply, or administer any tax or method of taxation to any [bank](/usc/12/1813.md?p=a-1), [bank holding company](/usc/12/1813.md?p=w-2), or [foreign bank](/usc/12/1813.md?p=s-1), or any [affiliate](/usc/12/1813.md?p=w-6) of any [bank](/usc/12/1813.md?p=a-1), [bank holding company](/usc/12/1813.md?p=w-2), or [foreign bank](/usc/12/1813.md?p=s-1), to the extent such tax or tax method is otherwise permissible by or under the Constitution of the United States or other Federal law.
    - (B) **Imposition of shares tax by host States—** In the case of a branch of an out-of-[State bank](/usc/12/1813.md?p=a-2) which results from an interstate merger transaction, a proportionate amount of the value of the shares of the out-of-[State bank](/usc/12/1813.md?p=a-2) may be subject to any [bank](/usc/12/1813.md?p=a-1) shares tax levied or imposed by the host [State](/usc/12/1813.md?p=a-3), or any political subdivision of such host [State](/usc/12/1813.md?p=a-3) that imposes such tax based upon a method adopted by the host [State](/usc/12/1813.md?p=a-3), which may include allocation and apportionment.
  - (2) **Applicability of antitrust laws—** No provision of this section shall be construed as affecting—
    - (A) the applicability of the antitrust laws; or
    - (B) the applicability, if any, of any [State](/usc/12/1813.md?p=a-3) law which is similar to the antitrust laws.
  - (3) **Reservation of certain rights to States—** No provision of this section shall be construed as limiting in any way the right of a [State](/usc/12/1813.md?p=a-3) to—
    - (A) determine the authority of [State banks](/usc/12/1813.md?p=a-2) chartered by that [State](/usc/12/1813.md?p=a-3) to establish and maintain branches; or
    - (B) supervise, regulate, and examine [State banks](/usc/12/1813.md?p=a-2) chartered by that [State](/usc/12/1813.md?p=a-3).
  - (4) **State-imposed notice requirements—** A host [State](/usc/12/1813.md?p=a-3) may impose any notification or reporting requirement on a branch of an out-of-[State bank](/usc/12/1813.md?p=a-2) if the requirement—
    - (A) does not discriminate against out-of-[State banks](/usc/12/1813.md?p=a-2) or [bank holding companies](/usc/12/1813.md?p=w-2); and
    - (B) is not preempted by any Federal law regarding the same subject.
- (d) **Operations of the resulting bank—**
  - (1) **Continued operations—** A resulting [bank](/usc/12/1813.md?p=a-1) may, subject to the approval of the [appropriate Federal banking agency](/usc/12/1813.md?p=q), retain and operate, as a main office or a branch, any office that any [bank](/usc/12/1813.md?p=a-1) involved in an interstate merger transaction was operating as a main office or a branch immediately before the merger transaction.
  - (2) **Additional branches—** Following the consummation of any interstate merger transaction, the resulting [bank](/usc/12/1813.md?p=a-1) may establish, acquire, or operate additional branches at any location where any [bank](/usc/12/1813.md?p=a-1) involved in the transaction could have established, acquired, or operated a branch under applicable Federal or [State](/usc/12/1813.md?p=a-3) law if such [bank](/usc/12/1813.md?p=a-1) had not been a party to the merger transaction.
  - (3) **Certain conditions and commitments continued—** If, as a condition for the acquisition of a [bank](/usc/12/1813.md?p=a-1) by an out-of-[State bank](/usc/12/1813.md?p=a-2) holding [company](/usc/12/1813.md?p=w-7) before September 29, 1994—
    - (A) the home [State](/usc/12/1813.md?p=a-3) of the acquired [bank](/usc/12/1813.md?p=a-1) imposed conditions on such acquisition by such out-of-[State bank](/usc/12/1813.md?p=a-2) holding [company](/usc/12/1813.md?p=w-7); or
    - (B) the [bank holding company](/usc/12/1813.md?p=w-2) made commitments to such [State](/usc/12/1813.md?p=a-3) in connection with the acquisition,

    the [State](/usc/12/1813.md?p=a-3) may enforce such conditions and commitments with respect to such [bank holding company](/usc/12/1813.md?p=w-2) or any affiliated successor [company](/usc/12/1813.md?p=w-7) which [controls](/usc/12/1813.md?p=w-5) a [bank](/usc/12/1813.md?p=a-1) or branch in such [State](/usc/12/1813.md?p=a-3) as a result of an interstate merger transaction to the same extent as the [State](/usc/12/1813.md?p=a-3) could enforce such conditions or commitments against the [bank holding company](/usc/12/1813.md?p=w-2) before the consummation of the merger transaction.

- (e) **Exception for banks in default or in danger of default—** If an application under [subsection (a)(1)](#a-1) for approval of a merger transaction which involves 1 or more [banks](/usc/12/1813.md?p=a-1) in [default](/usc/12/1813.md?p=x-1) or [in danger of default](/usc/12/1813.md?p=x-2) or with respect to which the Corporation provides assistance under [section 1823(c) of this title](/usc/12/1823.md?p=c), the responsible agency may approve such application without regard to [subsection (b)](#b), or paragraph [(2)](#a-2), [(4)](#a-4), or [(5)](#a-5) of subsection (a).
- (f) **Applicable rate and other charge limitations—**
  - (1) **In general—** In the case of any [State](/usc/12/1813.md?p=a-3) that has a constitutional provision that sets a maximum lawful annual percentage rate of interest on any contract at not more than 5 percent above the discount rate for 90-day commercial paper in effect at the Federal reserve [bank](/usc/12/1813.md?p=a-1) for the Federal reserve district in which such [State](/usc/12/1813.md?p=a-3) is located, except as provided in [paragraph (2)](#f-2), upon the establishment in such [State](/usc/12/1813.md?p=a-3) of a branch of any out-of-[State](/usc/12/1813.md?p=a-3) [insured depository institution](/usc/12/1813.md?p=c-2) in such [State](/usc/12/1813.md?p=a-3) under this section, the maximum interest rate or amount of interest, discount points, finance charges, or other similar charges that may be charged, taken, received, or reserved (or in the case of a governmental entity located in such [State](/usc/12/1813.md?p=a-3), paid) from time to time in any loan or discount made or upon any note, bill of exchange, financing transaction, or other evidence of debt by—
    - (A) any [insured depository institution](/usc/12/1813.md?p=c-2) whose home [State](/usc/12/1813.md?p=a-3) is such [State](/usc/12/1813.md?p=a-3) shall be equal to not more than the greater of—
      - (i) the maximum interest rate or amount of interest, discount points, finance charges, or other similar charges that may be charged, taken, received, or reserved in a similar transaction under the constitution or any statute or other law of the home [State](/usc/12/1813.md?p=a-3) of the out-of-[State](/usc/12/1813.md?p=a-3) [insured depository institution](/usc/12/1813.md?p=c-2) establishing any such branch, without reference to this section, as such maximum interest rate or amount of interest may change from time to time; or
      - (ii) the maximum rate or amount of interest, discount points, finance charges, or other similar charges that may be charged, taken, received, or reserved in a similar transaction by a [State](/usc/12/1813.md?p=a-3) [insured depository institution](/usc/12/1813.md?p=c-2) chartered under the laws of such [State](/usc/12/1813.md?p=a-3) or a national [bank](/usc/12/1813.md?p=a-1) or [Federal savings association](/usc/12/1813.md?p=b-2) whose main office is located in such [State](/usc/12/1813.md?p=a-3) without reference to this section; and
    - (B) any governmental entity located in such [State](/usc/12/1813.md?p=a-3) or any [person](/usc/12/5481.md?p=19) that is not a [depository institution](/usc/12/1813.md?p=c-1) described in [subparagraph (A)](#f-1-A) doing business in such [State](/usc/12/1813.md?p=a-3), shall be equal to not more than the greater of the [State](/usc/12/1813.md?p=a-3)’s maximum lawful annual percentage rate or 17 percent—
      - (i) to facilitate the uniform implementation of federally mandated or federally established programs and financings related thereto, [including](/usc/12/1813.md?p=t-1)—
        - (I) uniform accessibility of student loans, [including](/usc/12/1813.md?p=t-1) the issuance of qualified student loan bonds as set forth in [section 144(b) of title 26](/usc/26/144.md?p=b);
        - (II) the uniform accessibility of [mortgage](/usc/12/1707.md?p=a) loans, [including](/usc/12/1813.md?p=t-1) the issuance of qualified [mortgage](/usc/12/1707.md?p=a) bonds and qualified veterans’ [mortgage](/usc/12/1707.md?p=a) bonds as set forth in [section 143](/usc/12/143.md) of such title;
        - (III) the uniform accessibility of safe and affordable housing programs administered or subject to review by the Department of Housing and Urban Development, [including](/usc/12/1813.md?p=t-1)—
          - (aa) the issuance of exempt facility bonds for qualified residential rental property as set forth in [section 142(d)](/usc/12/142.md) of such title; and
          - (bb) the issuance of low income housing tax [credits](/usc/12/5481.md?p=7) as set forth in [section 42](/usc/12/42.md) of such title; and
        - (IV) the uniform accessibility of bonds and obligations issued under the American Recovery and Reinvestment Act of 2009;
      - (ii) to facilitate interstate commerce through the issuance of bonds and obligations under any provision of [State](/usc/12/1813.md?p=a-3) law, [including](/usc/12/1813.md?p=t-1) bonds and obligations for the purpose of economic development, education, and improvements to infrastructure; and
      - (iii) to facilitate interstate commerce generally, [including](/usc/12/1813.md?p=t-1) [consumer](/usc/12/5481.md?p=4) loans, in the case of any [person](/usc/12/5481.md?p=19) or governmental entity (other than a [depository institution](/usc/12/1813.md?p=c-1) subject to [subparagraph (A)](#f-1-A) and [paragraph (2)](#f-2)).
  - (2) **Rule of construction—**
    - (A) **In general—** No provision of this subsection shall be construed as superseding or affecting—
      - (i) the authority of any [insured depository institution](/usc/12/1813.md?p=c-2) to take, receive, reserve, and charge interest on any loan made in any [State](/usc/12/1813.md?p=a-3) other than the [State](/usc/12/1813.md?p=a-3) referred to in [paragraph (1)](#f-1); or
      - (ii) the applicability of [section 1735f–7a of this title](/usc/12/1735f–7a.md), [section 85 of this title](/usc/12/85.md), or [section 1831d of this title](/usc/12/1831d.md).
    - (B) **Applicability—** This subsection shall be construed to apply to any loan or discount made, or note, bill of exchange, financing transaction, or other evidence of debt, originated by an [insured depository institution](/usc/12/1813.md?p=c-2), a governmental entity located in such [State](/usc/12/1813.md?p=a-3), or a [person](/usc/12/5481.md?p=19) that is not a [depository institution](/usc/12/1813.md?p=c-1) described in [subparagraph (A)](#f-2-A) doing business in such [State](/usc/12/1813.md?p=a-3).
- (g) **Definitions—** For purposes of this section, the following definitions shall apply:
  - (1) **Adequately capitalized—** The term “adequately capitalized” has the same meaning as in [section 1831o](/usc/12/1831o.md) of this title.
  - (2) **Antitrust laws—** The term “antitrust laws”—
    - (A) has the same meaning as in subsection (a) of [section 12 of title 15](/usc/15/12.md); and
    - (B) [includes](/usc/12/1813.md?p=t-1) [section 45 of title 15](/usc/15/45.md) to the extent such [section 45](/usc/15/45.md) relates to unfair methods of competition.
  - (3) **Branch—** The term “branch” means any [domestic branch](/usc/12/1813.md?p=o).
  - (4) **Home State—** The term “home [State](/usc/12/1813.md?p=a-3)”—
    - (A) means—
      - (i) with respect to a national [bank](/usc/12/1813.md?p=a-1), the [State](/usc/12/1813.md?p=a-3) in which the main office of the [bank](/usc/12/1813.md?p=a-1) is located; and
      - (ii) with respect to a [State bank](/usc/12/1813.md?p=a-2), the [State](/usc/12/1813.md?p=a-3) by which the [bank](/usc/12/1813.md?p=a-1) is chartered; and
    - (B) with respect to a [bank holding company](/usc/12/1813.md?p=w-2), has the same meaning as in [section 1841(o)(4)](/usc/12/1841.md?p=o-4) of this title.
  - (5) **Host State—** The term “host [State](/usc/12/1813.md?p=a-3)” means, with respect to a [bank](/usc/12/1813.md?p=a-1), a [State](/usc/12/1813.md?p=a-3), other than the home [State](/usc/12/1813.md?p=a-3) of the [bank](/usc/12/1813.md?p=a-1), in which the [bank](/usc/12/1813.md?p=a-1) maintains, or seeks to establish and maintain, a branch.
  - (6) **Interstate merger transaction—** The term “interstate merger transaction” means any merger transaction approved pursuant to [subsection (a)(1)](#a-1).
  - (7) **Merger transaction—** The term “merger transaction” has the meaning determined under [section 1828(c)(3) of this title](/usc/12/1828.md?p=c-3).
  - (8) **Out-of-State bank—** The term “out-of-[State bank](/usc/12/1813.md?p=a-2)” means, with respect to any [State](/usc/12/1813.md?p=a-3), a [bank](/usc/12/1813.md?p=a-1) whose home [State](/usc/12/1813.md?p=a-3) is another [State](/usc/12/1813.md?p=a-3).
  - (9) **Out-of-State bank holding company—** The term “out-of-[State bank](/usc/12/1813.md?p=a-2) holding [company](/usc/12/1813.md?p=w-7)” means, with respect to any [State](/usc/12/1813.md?p=a-3), a [bank holding company](/usc/12/1813.md?p=w-2) whose home [State](/usc/12/1813.md?p=a-3) is another [State](/usc/12/1813.md?p=a-3).
  - (10) **Responsible agency—** The term “responsible agency” means the agency determined in accordance with [section 1828(c)(2) of this title](/usc/12/1828.md?p=c-2) with respect to a merger transaction.
  - (11) **Resulting bank—** The term “resulting [bank](/usc/12/1813.md?p=a-1)” means a [bank](/usc/12/1813.md?p=a-1) that has resulted from an interstate merger transaction under this section.

## Source credit

(Sept. 21, 1950, ch. 967, § 2[44], as added Pub. L. 103–328, title I, § 102(a), Sept. 29, 1994, 108 Stat. 2343; amended Pub. L. 106–102, title VII, § 731, Nov. 12, 1999, 113 Stat. 1477; Pub. L. 111–32, title V, § 504(a), June 24, 2009, 123 Stat. 1880; Pub. L. 111–83, title V, § 563(a), (b), Oct. 28, 2009, 123 Stat. 2183; Pub. L. 111–203, title VI, § 607(b), July 21, 2010, 124 Stat. 1608.)

## Notes

### Editorial Notes

### References in Text

The American Recovery and Reinvestment Act of 2009, referred to in subsec. (f)(1)(B)(i)(IV), is Pub. L. 111–5, Feb. 17, 2009, 123 Stat. 115. For complete classification of this Act to the Code, see Short Title of 2009 Amendment note set out under section 1 of Title 26, Internal Revenue Code, and Tables.

### Amendments

2010—Subsec. (b)(4)(B). Pub. L. 111–203 substituted “will be well capitalized and well managed” for “will continue to be adequately capitalized and adequately managed”.

2009—Subsec. (f)(1). Pub. L. 111–83, § 563(a)(1), inserted “(or in the case of a governmental entity located in such State, paid)” after “received, or reserved” in introductory provisions.

Pub. L. 111–32 substituted “evidence of debt by—” for “evidence of debt by”, inserted subpar. (A) designation, redesignated former subpars. (A) and (B) as cls. (i) and (ii), respectively, realigned margins, and added subpar. (B).

Subsec. (f)(1)(B). Pub. L. 111–83, § 563(a)(2)(A), substituted “governmental entity located in such State or any person that is not a depository institution described in subparagraph (A) doing business in such State” for “nondepository institution operating in such State” in introductory provisions.

Subsec. (f)(1)(B)(i)(III)(aa). Pub. L. 111–83, § 563(a)(2)(C)(i)(I), inserted “and” at end.

Subsec. (f)(1)(B)(i)(III)(bb). Pub. L. 111–83, § 563(a)(2)(C)(i)(II), struck out “, to facilitate the uniform accessibility of provisions of the American Recovery and Reinvestment Act of 2009” after “section 42 of such title”.

Subsec. (f)(1)(B)(i)(III)(cc). Pub. L. 111–83, § 563(a)(2)(C)(i)(III), struck out item (cc), which read as follows: “the issuance of bonds and obligations issued under that Act, to facilitate economic development, higher education, and improvements to infrastructure, and the issuance of bonds and obligations issued under any provision of law to further the same; and”.

Subsec. (f)(1)(B)(i)(IV). Pub. L. 111–83, § 563(a)(2)(C)(ii), added subcl. (IV).

Subsec. (f)(1)(B)(ii), (iii). Pub. L. 111–83, § 563(a)(2)(B), (D), added cl. (ii) and redesignated former cl. (ii) as (iii).

Subsec. (f)(2). Pub. L. 111–83, § 563(b), designated existing provisions as subpar. (A), inserted heading, redesignated former subpars. (A) and (B) as cls. (i) and (ii), respectively, of subpar. (A), realigned margins, and added subpar. (B).

1999—Subsecs. (f), (g). Pub. L. 106–102 added subsec. (f) and redesignated former subsec. (f) as (g).

### Statutory Notes and Related Subsidiaries

### Effective Date of 2010 Amendment

Pub. L. 111–203, title VI, § 607(c), July 21, 2010, 124 Stat. 1608, provided that: “The amendments made by this section [amending this section and section 1842 of this title] shall take effect on the transfer date.”

[For definition of “transfer date” as used in section 607(c) of Pub. L. 111–203, set out above, see section 5301 of this title.]

### Effective Date of 2009 Amendment

Pub. L. 111–83, title V, § 563(c), Oct. 28, 2009, 123 Stat. 2184, provided that: “The amendments made by this section [amending this section] shall apply with respect to contracts consummated during the period beginning on the date of enactment of this Act [Oct. 28, 2009] and ending on December 31, 2010.”

Pub. L. 111–32, title V, § 504(b), June 24, 2009, 123 Stat. 1880, provided that: “The amendments made by subsection (a) [amending this section] shall apply with respect to contracts consummated during the period beginning on the date of enactment of this Act [June 24, 2009] and ending on December 31, 2010.”