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Code · BILL · 116th Congress · H.R. 8721 (Introduced in House) — To provide for the Federal charter of certain public banks, and for other purposes. · Sec. 101

Sec. 101. Federal charter of public lending banks and public payment banks

323 words·~1 min read·/bill/116/hr/8721/ih/section-101

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

The Board of Governors shall charter public lending banks and public payment banks. The term public lending bank means a person that— is wholly owned and controlled by— a State or Tribal government, including a unit of local government, government agency; a State or Tribally chartered corporation; a nonprofit instrumentality designated by a State or Tribal government as acting in the public interest of a community within such State or Tribe, including an unincorporated community; or an association of 1 or more entities described in subparagraphs
(A)through (C); that— is not owned or governed by, operated as a subsidiary of, or otherwise affiliated with any for-profit entity; does not own, govern, or operate as a subsidiary of any for-profit entity; and does not compensate any employee, executive, or board member at a rate to exceed the salary of the President of the United States for that equivalent period; and provides— fiscal agent services; money transmitter services; digital dollar services as a pass-through intermediary for the Federal Government; depository services; postal banking services; securities-related services; or any lending product approved by the Board of Governors. The term public payment bank means a person that— is wholly owned and controlled by an entity described in subsection (b)(1); provides at least one of the services specified in subparagraphs
(A)through
(E)of subsection (b)(2); and does not provide the services specified in subparagraph
(F)or
(G)of subsection (b)(2). A person described in subsection
(b)shall not be considered a bank holding company under the Bank Holding Company Act of 1956 ( 12 U.S.C. 1841 et seq.) or any other law, solely due to the person’s ownership or control of a public lending bank, public payment bank, or non-federally chartered bank. The Board of Governors shall issue guidance to public lending banks and public payment banks to ensure that the services provided by such banks are universal and comprehensively include historically excluded and marginalized groups.
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Sec. 101
Federal charter of public lending banks and public payment banks
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