Exempts from such prohibition activities of a bank holding company (or any affiliate) that directly relate to managing any real property owned by national banks or their affiliates.
States that activities that were authorized for financial holding companies and national banks on December 6, 2001, are not affected by the prohibitions of this Act.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 98 Introduced in Senate (IS)]
109th CONGRESS
1st Session
S. 98
To amend the Bank Holding Company Act of 1956 and the Revised Statutes
of the United States to prohibit financial holding companies and
national banks from engaging, directly or indirectly, in real estate
brokerage or real estate management activities, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
January 24, 2005
Mr. Allard (for himself, Mrs. Clinton, Mr. Shelby, Mr. Feingold, Mr.
Burns, Mr. Isakson, and Mr. Lautenberg) introduced the following bill;
which was read twice and referred to the Committee on Banking, Housing,
and Urban Affairs
_______________________________________________________________________
A BILL
To amend the Bank Holding Company Act of 1956 and the Revised Statutes
of the United States to prohibit financial holding companies and
national banks from engaging, directly or indirectly, in real estate
brokerage or real estate management activities, 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 Choice in Real Estate
Act''.
SEC. 2. CLARIFICATION THAT REAL ESTATE BROKERAGE AND MANAGEMENT
ACTIVITIES ARE NOT BANKING OR FINANCIAL ACTIVITIES.
(a) Bank Holding Company Act of 1956.--Section 4(k) of the Bank
Holding Company Act of 1956 (12 U.S.C. 1843(k)) is amended by adding at
the end the following new paragraph:
``(8) Real estate brokerage and real estate management
activities.--
``(A) In general.--The Board may not determine that
real estate brokerage activity or real estate
management activity is an activity that is financial in
nature, is incidental to any financial activity, or is
complementary to a financial activity.
``(B) Real estate brokerage activity defined.--For
purposes of this paragraph, the term `real estate
brokerage activity' means any activity that involves
offering or providing real estate brokerage services to
the public, including--
``(i) acting as an agent for a buyer,
seller, lessor, or lessee of real property;
``(ii) listing or advertising real property
for sale, purchase, lease, rental, or exchange;
``(iii) providing advice in connection with
sale, purchase, lease, rental, or exchange of
real property;
``(iv) bringing together parties interested
in the sale, purchase, lease, rental, or
exchange of real property;
``(v) negotiating, on behalf of any party,
any portion of a contract relating to the sale,
purchase, lease, rental, or exchange of real
property (other than in connection with
providing financing with respect to any such
transaction);
``(vi) engaging in any activity for which a
person engaged in the activity is required to
be registered or licensed as a real estate
agent or broker under any applicable law; and
``(vii) offering to engage in any activity,
or act in any capacity, described in clause
(i), (ii), (iii), (iv), (v), or (vi).
``(C) Real estate management activity defined.--For
purposes of this paragraph, the term `real estate
management activity' means any activity that involves
offering or providing real estate management services
to the public, including--
``(i) procuring any tenant or lessee for
any real property;
``(ii) negotiating leases of real property;
``(iii) maintaining security deposits on
behalf of any tenant or lessor of real property
(other than as a depository institution for any
person providing real estate management
services for any tenant or lessor of real
property);
``(iv) billing and collecting rental
payments with respect to real property or
providing periodic accounting for such
payments;
``(v) making principal, interest,
insurance, tax, or utility payments with
respect to real property (other than as a
depository institution or other financial
institution on behalf of, and at the direction
of, an account holder at the institution);
``(vi) overseeing the inspection,
maintenance, and upkeep of real property,
generally; and
``(vii) offering to engage in any activity,
or act in any capacity, described in clause
(i), (ii), (iii), (iv), (v), or (vi).
``(D) Exception for company property.--This
paragraph shall not apply to an activity of a bank
holding company or any affiliate of such company that
directly relates to managing any real property owned by
such company or affiliate, or the purchase, sale, or
lease of property owned, or to be used or occupied, by
such company or affiliate.
``(E) Current activities not affected.--No
provision of this paragraph, or any determination made
pursuant to any such provision, may be construed as
prohibiting, restricting, altering, or otherwise
affecting, the right, power, or ability of any
financial holding company to engage in any activity, or
acquire or retain the shares of any company engaged in
an activity, if engaging in such activity, or acquiring
or retaining such shares, was authorized for financial
holding companies on December 6, 2001.''.
(b) Revised Statutes of the United States.--Section 5136A(b) of the
Revised Statutes of the United States (12 U.S.C. 24a(b)) is amended by
adding at the end the following new paragraph:
``(4) Real estate brokerage and real estate management
activities.--
``(A) In general.--The Secretary may not determine
that real estate brokerage activity or real estate
management activity is an activity that is financial in
nature, is incidental to any financial activity, or is
complementary to a financial activity.
``(B) Definitions.--For purposes of this paragraph,
the terms `real estate brokerage activity' and `real
estate management activity' have the same meanings as
in section 4(k)(8) of the Bank Holding Company Act of
1956.
``(C) Exception for company property.--This
paragraph shall not apply to an activity of a national
bank, or a subsidiary of a national bank, that directly
relates to managing any real property owned by such
bank or subsidiary, or the purchase, sale, or lease of
property owned, or to be owned, by such bank or
subsidiary.
``(D) Current activities not affected.--No
provision of this paragraph, or any determination made
pursuant to any such provision, may be construed as
prohibiting, restricting, altering, or otherwise
affecting, the right, power, or ability of any national
bank, or a subsidiary of a national bank, to engage in
any activity, or acquire or retain the shares of any
company engaged in an activity, if engaging in such
activity, or acquiring or retaining such shares, was
authorized for national banks, or subsidiaries of
national banks, on December 6, 2001.''.
<all>
Introduced in Senate
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
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