H.R. 5031 (108th): Community Credit Card Bank Act of 2004

108th Congress, 2003–2004. Text as of Sep 08, 2004 (Introduced).

Status & Summary | PDF | Source: GPO

HR 5031 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.’.