(2) Exceptions .— The term “bank” does not include any of the following: (A) A foreign bank which would be a bank within the meaning of paragraph (1) solely because such bank has an insured or uninsured branch in the United States. (B) An insured institution (as defined in subsection (j)). (C) An organization that does not do business in the United States except as an incident to its activities outside the United States. (D) An institution that functions solely in a trust or fiduciary capacity, if— (i) all or substantially all of the deposits of such institution are in trust funds and are received in a bona fide fiduciary capacity; (ii) no deposits of such institution which are insured by the Federal Deposit Insurance Corporation are offered or marketed by or through an affiliate of such institution; (iii) such institution does not accept demand deposits or deposits that the depositor may withdraw by check or similar means for payment to third parties or others or make commercial loans; and (iv) such institution does not— (I) obtain payment or payment related services from any Federal Reserve bank, including any service referred to in section 11A of the Federal Reserve Act [ 12 U.S.C. 248a ]; or (II) exercise discount or borrowing privileges pursuant to section 19(b)(7) of the Federal Reserve Act [ 12 U.S.C. 461(b)(7) ]. (E) A credit union (as described in section 19(b)(1)(A)(iv) of the Federal Reserve Act [ 12 U.S.C. 461(b)(1)(A)(iv) ]). (F) An institution, including an institution that accepts collateral for extensions of credit by holding deposits under $100,000, and by other means which— (i) engages only in credit card operations; (ii) does not accept demand deposits or deposits that the depositor may withdraw by check or similar means for payment to third parties or others; (iii) does not accept any savings or time deposit of less than $100,000; (iv) maintains only one office that accepts deposits; and (v) does not engage in the business of making commercial loans, other than credit card loans that are made to businesses that meet the criteria for a small business concern to be eligible for business loans under regulations established by the Small Business Administration under part 121 of title 13, Code of Federal Regulations . (G) An organization operating under section 25 or section 25(a) of the Federal Reserve Act. (H) An industrial loan company, industrial bank, or other similar institution which is— (i) an institution organized under the laws of a State which, on March 5, 1987 , had in effect or had under consideration in such State’s legislature a statute which required or would require such institution to obtain insurance under the Federal Deposit Insurance Act [ 12 U.S.C. 1811 et seq.]— (I) which does not accept demand deposits that the depositor may withdraw by check or similar means for payment to third parties; (II) which has total assets of less than $100,000,000; or (III) the control of which is not acquired by any company after August 10, 1987 ; or (ii) an institution which does not, directly, indirectly, or through an affiliate, engage in any activity in which it was not lawfully engaged as of March 5, 1987 , except that this subparagraph shall cease to apply to any institution which permits any overdraft (including any intraday overdraft), or which incurs any such overdraft in such institution’s account at a Federal Reserve bank, on behalf of an affiliate if such overdraft is not the result of an inadvertent computer or accounting error that is beyond the control of both the institution and the affiliate, or that is otherwise permissible for a bank controlled by a company described in section 1843(f)(1) of this title .


12 USC § 1841(c)(2)

Scoping language

For purposes of this chapter
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