Sec. 5. Protections under Federal law

859 words·~4 min read·/bill/118/s/2860/is/section-5

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

With respect to providing a financial service to a State-sanctioned marijuana business (where such State-sanctioned marijuana business operates within a State, an Indian Tribe, or a political subdivision of a State that allows the cultivation, production, manufacture, sale, transportation, display, dispensing, distribution, or purchase of marijuana pursuant to a law or regulation of such State, Indian Tribe, or political subdivision, as applicable) or a service provider (wherever located), a depository institution, an entity performing a financial service for or in association with a depository institution, a community development financial institution, or an insurer that provides a financial service to a State-sanctioned marijuana business or service provider, and the officers, directors, employees, and agents of that depository institution, entity, community development financial institution, or insurer may not be held liable pursuant to any Federal law or regulation— solely for providing such a financial service; or for further investing any income derived from such a financial service.

With respect to providing a service to a depository institution that provides a financial service to a State-sanctioned marijuana business (where such State-sanctioned marijuana business operates within a State, an Indian Tribe, or a political subdivision of a State that allows the cultivation, production, manufacture, sale, transportation, display, dispensing, distribution, or purchase of marijuana pursuant to a law or regulation of such State, Indian Tribe, or political subdivision, as applicable) or service provider (wherever located), a Federal reserve bank or Federal Home Loan Bank, and the officers, directors, and employees of the Federal reserve bank or Federal Home Loan Bank, may not be held liable pursuant to any Federal law or regulation— solely for providing such a service; or for further investing any income derived from such a service.

With respect to engaging in the business of insurance within a State, an Indian Tribe, or a political subdivision of a State that allows the cultivation, production, manufacture, sale, transportation, display, dispensing, distribution, or purchase of marijuana pursuant to a law or regulation of such State, Indian Tribe, or political subdivision, as applicable, an insurer that engages in the business of insurance with a State-sanctioned marijuana business or service provider or that otherwise engages with a person in a transaction permissible pursuant to a law (including regulations) of such State, Indian Tribe, or political subdivision related to marijuana, and the officers, directors, and employees of that insurer, may not be held liable pursuant to any Federal law or regulation— solely for engaging in the business of insurance; or for further investing any income derived from the business of insurance.

A depository institution or community development financial institution that has a legal interest in the collateral for a loan or another financial service provided to an owner, employee, or operator of a State-sanctioned marijuana business or service provider, or to an owner or operator of real estate or equipment that is leased or sold to a State-sanctioned marijuana business or service provider, shall not be subject to criminal, civil, or administrative forfeiture of that legal interest pursuant to any Federal law solely for providing such loan or other financial service.

A Federal reserve bank or Federal Home Loan Bank that has a legal interest in the collateral for a loan or another financial service provided to a depository institution that provides a financial service to a State-sanctioned marijuana business or service provider, or to an owner or operator of real estate or equipment that is leased or sold to a State-sanctioned marijuana business or service provider, shall not be subject to criminal, civil, or administrative forfeiture of that legal interest pursuant to any Federal law for providing such loan or other financial service.

The Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, and any Federal agency that has a legal interest in the collateral for a residential mortgage loan, including individual units of condominiums and cooperatives, provided that the collateral is a property designed principally for the occupancy of 1 to 4 families and underwritten, in whole or in part, based on income from a State-sanctioned marijuana business or service provider, shall not be subject to criminal, civil, or administrative forfeiture of that legal interest pursuant to any Federal law for providing, insuring, guaranteeing, purchasing, securitizing, or guaranteeing payments from a security based on such loan.

A nondepository lender that makes a covered mortgage loan, as defined in section 9(a), and any person who otherwise has a legal interest in such a loan or in the collateral of the loan, including individual units of condominiums and cooperatives, provided that the collateral is a property designed principally for the occupancy of 1 to 4 families and underwritten, in whole or in part, based on income from a State-sanctioned marijuana business or service provider, shall not be subject to criminal, civil, or administrative forfeiture of that legal interest pursuant to any Federal law for providing, purchasing, securitizing, accepting, and making payments related to such covered mortgage loan solely because loan payments or underwriting are based on income that is in whole or in part from a State-sanctioned marijuana business or service provider.

In this subsection, the term collateral does not include marijuana or a marijuana product.