Community Credit Card Bank Act of 2004 - Amends the Bank Holding Company Act of 1956 with respect to exclusion from coverage as a bank of an institution, including one that accepts collateral for extensions of credit by holding deposits under $100,000, and by other means, which: (1) engages only in credit card operations; (2) does not accept demand deposits or deposits that the depositor may withdraw by check or similar means for payment to third parties or others; (3) does not accept any savings or time deposit of less than $100,000; (4) maintains only one office that accepts deposits; and (5) does not engage in the business of making commercial loans.
Declares that an institution shall not be treated as engaging in the business of making commercial loans solely on the basis of issuing or servicing commercial credit card accounts that constitute no more than ten percent of their credit card receivables, if: (1) it has total assets of less than $1 million; (2) it was chartered before June 1, 1998; (3) at least 80 percent of its credit card receivables have either been acquired in portfolio purchases from unaffiliated insured depository institutions, or issued through unaffiliated insured depository institutions as agents of such institutions; and (4) it issues or services commercial credit card loans that constitute, in the aggregate, not more than 10 percent of its credit card receivables. (Thus applies the exclusion from coverage by the Bank Holding Company Act of 1956 to certain limited purpose credit card banks serving community banks.)
[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5031 Introduced in House (IH)]
108th CONGRESS
2d Session
H. R. 5031
To amend the Bank Holding Company Act of 1956 to clarify the
application of the credit card bank exception to certain limited
purpose credit card banks serving community banks, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 8, 2004
Mr. Nethercutt introduced the following bill; which was referred to the
Committee on Financial Services
_______________________________________________________________________
A BILL
To amend the Bank Holding Company Act of 1956 to clarify the
application of the credit card bank exception to certain limited
purpose credit card banks serving community banks, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Community Credit Card Bank Act of
2004''.
SEC. 2. COMMUNITY CREDIT CARD BANK EXCEPTION.
Section 2(c)(2)(F)(v) of the Bank Holding Company Act of 1956 (12
U.S.C. 1841(c)(2)(F)(v)) is amended by inserting, before the period at
the end, the following: ``except that, in the case of an institution--
``(I) which has total assets of
less than $1,000,000,000;
``(II) which was chartered before
June 1, 1998;
``(III) at least 80 percent of the
credit card receivables of which have
either been acquired in portfolio
purchases from unaffiliated insured
depository institutions, or issued
through unaffiliated insured depository
institutions as agents of such
institutions; and
``(IV) which issues or services
commercial credit card loans that
constitute, in the aggregate, not more
than 10 percent of the credit card
receivables of the institution,
the institution shall not be treated as
engaging in the business of making commercial
loans, for purposes of this subparagraph,
solely on the basis of issuing or servicing
such commercial credit card accounts.''.
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Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
Referred to the Subcommittee on Financial Institutions and Consumer Credit.
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