CHAPTER 35
FORMERLY
HOUSE BILL NO. 156
AN ACT TO AMEND TITLE 5 OF THE DELAWARE CODE RELATING TO BANKS AND OTHER FINANCIAL INSTITUTIONS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE (Three-fifths of all members elected to each house thereof concurring therein):
Section 1. This act may be referred to as the “Foreign Banking Amendments Act of 1999”.
Section 2. Amend §101(4)e. of Title 5 of the Delaware Code by inserting the phrase “foreign bank branch,” between the word “A” and the phrase “foreign bank limited” as they appear therein.
Section 3. Amend §101(11) of Title 5 of the Delaware Code by striking the citation “§1404(a)” as it appears therein and by substituting in lieu thereof the citation “§1404(b)”.
Section 4. Amend §101(12) of Title 5 of the Delaware Code by striking the citation “§1404(b)” as it appears therein and by substituting in lieu thereof the citation “§1404(c)”.
Section 5. Amend §101 of Title 5 of the Delaware Code by redesignating subsections (12)-(20) as they appear therein as subsections (13)-(21) respectively, and by adding thereto a new subsection (12) to read:
“(12) ‘Foreign bank branch’ means an office in this State of a foreign bank that is exercising the powers authorized by §1404(a) of this title.”.
Section 6. Amend §1101(a) of Title 5 of the Delaware Code by striking the last undesignated paragraph in subsection (a) in its entirety and by substituting in lieu thereof the following:
“For purposes of this subsection, a resulting branch in this State of an out-of-state bank or foreign bank, or a foreign bank branch, foreign bank limited purpose branch, foreign bank agency or a federal branch or agency (all as defined in §101 of this title) shall be treated as if it were a corporation. The Commissioner shall prescribe such rules and regulations as may be deemed necessary in order that the tax liability of any resulting branch in this State of an out-of-state bank or foreign bank, or any foreign bank branch, foreign bank limited purpose branch, foreign bank agency or federal branch or agency under this subsection may be returned, determined, computed, assessed, collected and adjusted, in such manner as to clearly reflect the tax liability and the various factors necessary for the determination of such liability, and in order to prevent avoidance of such tax liability.”.
Section 7. Amend the descriptive heading of Subchapter I of Chapter 14 of Title 5 of the Delaware Code by striking the text of the descriptive heading in its entirety as it appears therein and by substituting in lieu thereof the following:
“Foreign Bank Branches, Foreign Bank Limited Purpose Branches, and Foreign Bank Agencies”.
Section 8. Amend §1403(a) of Title 5 of the Delaware Code by inserting in the first sentence therein the phrase “foreign bank branch,” between the phrases “maintain a” and “foreign bank limited” as they appear therein.
Section 9. Amend §1403(a)(7) of Title 5 of the Delaware Code by inserting the phrase “foreign bank branch,” between the phrases “the proposed” and “foreign bank limited” as they appear therein.
Section 10. Amend §1403(d)(4) of Title 5 of the Delaware Code by inserting the phrase “foreign bank branch,” between the phrases “the proposed” and “foreign bank limited” as they appear therein.
Section 11. Amend §1404 of Title 5 of the Delaware Code by striking from the second sentence of subsection (a)(3) therein the phrase “subsection (a) of this section” and by substituting in lieu thereof the phrase “paragraph (1) of this subsection”; by striking from subsection (b) the phrase “subsection (a)” and by substituting in lieu thereof the phrase “subsection (b)”; by redesignating subsections (a), (b), and (c) thereof as subsections (b), (c), and (d) respectively; and by inserting therein a new subsection (a) to read:
“(a) A foreign bank holding a certificate of authority pursuant to this subchapter that has elected this State as its home state under the International Banking Act of 1978, 12 U.S.C. §3101 et seq., as amended, may establish and maintain a foreign bank branch in this State at the location stated therein and may engage in a general banking business thereat.”.
Section 12. Amend §1405(a) of Title 5 of the Delaware Code by inserting the phrase “foreign bank branch,” immediately before the words “foreign bank limited purpose branch or foreign bank agency” at all places where those words appear in subsection (a) therein.
Section 13. Amend §1406(b) of Title 5 of the Delaware Code by inserting the phrase “foreign bank branch,” immediately before the words “foreign bank limited purpose branch or foreign bank agency” at all places where those words appear in subsection (b) therein.
Section 14. Amend §1407(2) of Title 5 of the Delaware Code by striking the phrase “foreign bank limited purpose branch or foreign bank agencies pursuant to §1404(a)(3) and (b)” and by substituting in lieu thereof the phrase “foreign bank branches, foreign bank limited purpose branches or foreign bank agencies pursuant to §1404”.
Section 15. Amend §1410(b) of Title 5 of the Delaware Code by inserting in the second sentence thereof the phrase “foreign bank branch,” immediately before the words “foreign bank limited purpose branch or foreign bank agency”.
Section 16. Amend §1416(a) of Title 5 of the Delaware Code by inserting in the first sentence thereof the phrase “foreign bank branch,” immediately before the words “foreign bank limited purpose branch or foreign bank agency”.
Section 17. Amend §1416(b) of Title 5 of the Delaware Code by inserting in the first sentence thereof the phrase “foreign bank branch,” immediately before the words “foreign bank limited purpose branch or foreign bank agency”, and by inserting in the third sentence thereof the phrase “foreign bank branches,” immediately before the words “foreign bank limited purpose branches or foreign bank agencies”.
Section 18. Amend §1426 of Title 5 of the Delaware Code by inserting the phrase “foreign bank branches,” immediately before the words “foreign bank limited purpose branches and foreign bank agencies”.
Section 19. Amend §1436 of Title 5 of the Delaware Code by inserting the phrase “foreign bank branches,” immediately before the words “foreign bank limited purpose branches and foreign bank agencies”.
Section 20. If any provision of this Act or the application of any section or part thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Act that can be given effect without the invalid provision or application.