Fla. Admin. Code Ann. R. 69U-140.008 - Permissible Activities for an Agency
(1) Generally, permissible activities shall
include those activities permissible for corporations engaged in international
banking or financial operations under the Edge Act, 12 U.S.C. sections 611-631,
except such of those activities that are contrary to or inconsistent with any
of the provisions of Chapter 663, F.S., or these rules. An international bank
agency may engage in any activity permissible for an international
administrative office or international representative office.
(2) An international bank agency may maintain
for the account of others credit balances necessarily incidental to, or arising
out of, the exercise of its lawful powers. Provided that such credit balances
are disbursed in accordance with subsection (3) of this rule, they shall not be
considered to be functionally equivalent to demand deposits for purposes of
Section
663.061(2),
F.S. Credit balances may include proceeds of loans to customers where such
proceeds are not immediately disbursed; proceeds of incoming remittances;
proceeds of collections made for customers' accounts; funds delivered by
customers to settle letters of credit accounts with the banking agency prior to
settlement date; proceeds of export bills negotiated (i.e., drafts drawn under
letters of credit issued by and received from other financial institutions);
cash collateral resulting from any permissible activity with a customer ;
undisbursed proceeds of a loan retained by the banking agency in the nature of
a compensating balance from the borrowing customer ; funds delivered prior to
execution of money transfers undertaken on behalf of customers; funds delivered
or received on account of the purchase or sale of securities for the account of
customers; and funds received from customers to cover currency transactions or
as the result of currency transactions on behalf of customers.
(3) A credit balance may be fully or
partially disbursed either to the customers for whose accounts it is maintained
or to third parties designated by the customer . Such disbursements may be made
by check, draft, pre-authorized transfer, or otherwise. Disbursements by the
customer to third parties, however made, shall not exceed an average of twenty
per day per calendar month. Disbursements to the customer maintaining the
credit balance and disbursements by the international bank agency on behalf of
the customer to third parties may be made without limitation.
(4) To insure compliance with subsection (3)
of this rule, an international bank agency which maintains credit balances for
the account of customers shall adopt procedures to monitor credit balance
disbursements to third parties and promptly notify customers who exceed the
limitations established in subsection (3) of this rule. Customers who are
notified as provided in this subsection and who subsequently exceed the
limitations established in subsection (3) of this rule shall be prohibited by
the international bank agency at which their accounts are maintained from
making further credit balance disbursements to third parties.
(5) An agency may provide financing and
banking services to foreign businesses and foreign individuals in their foreign
operations, and also in their operations in the United States or elsewhere,
where such operations are in the stream of international business and commerce.
An agency may also provide financing and banking services to United States
businesses and customers in their foreign operations and in their operations in
Florida and elsewhere that are clearly related to international commerce, such
as operations directly connected with the production, storage, transportation
and sale of goods for export or import if the importation or exportation of the
goods is financed by the banking agency.
(6) Deposits.
(a) An international bank agency licensed by
this state may accept, pursuant to Section 663.061, F.S., only the following
deposits:
1. Deposits from non-resident
entities whose principal places of business are outside the United States. For
purposes of this subsection, the phrase "non-resident entities whose principal
places of business are outside the United States" shall mean entities which
conduct a majority of their business activities in a foreign county, a
territory of the United States, Puerto Rico, Guam, American Samoa or the Virgin
Islands. The term shall include foreign governments and their sub-divisions,
agencies and instrumentalities. An entity which conducts business in the United
States shall be deemed to have its principal place of business outside the
United States if any one of the following requirements are satisfied for the
last fiscal year of such entity:
a. The assets
of such entity located outside the United States exceed its assets located
within the United States,
b. The
gross revenues of such entity generated outside the United States exceed its
gross revenues generated within the United States, or
c. The payroll expenses of such entity
incurred outside the United States exceed its payroll expenses incurred within
the United States.
2.
Deposits from non-resident persons whose principal places of domicile are
outside the United States. For purposes of this subsection, the phrase
"non-resident persons whose principal places of domicile are outside the United
States" shall mean individuals, including United States citizens, who reside
within the United States for less than 183 days during a calendar
year.
3. Interbank deposits,
interbank borrowing, or similar interbank obligations. For purposes of this
subsection, the phrase "interbank deposits, interbank borrowing, or similar
interbank obligations" shall mean activities represented by a certificate of
deposit, promissory note, acknowledgement of advance, or other similar
instrument, between the international bank agency and any financial
institution , as defined in Section
655.50,
F.S., which institution is located in the United States.
4. International banking facility deposits,
as defined by Rule
69U-100.003,
F.A.C.
(b) An
international bank agency shall be entitled to presume that an entity or person
meets the requirements of subparagraphs (a)1. or 2., respectively, if such
entity or person furnishes to the international bank agency a written statement
which:
1. Sets forth the specific facts which
indicate that the requirements of the applicable subparagraph have been met;
and,
2. Acknowledges an affirmative
duty on the part of the entity or person furnishing the written statement to
advise management of the agency in the event that such entity or person ceases
to meet the applicable requirements.
(7) Pursuant to the authority contained in
Section
663.061,
F.S., notwithstanding the limitations set forth above, the operations of an
international banking corporation at its international bank agency licensed in
Florida by OFR:
(a) May be conducted with the
same rights and privileges as a state bank including, but not limited to,
maintaining credit balances incidental to or arising out of the exercise of its
banking powers, paying checks and lending money, except that it shall not
exercise fiduciary powers or accept deposits other than the deposits defined in
this rule; provided, however, that if at any time any of the same or
substantially similar rights and privileges herein granted are, with respect to
their exercise by a federal agency, denied or limited by federal law or
regulation, or by judicial action, the exercise thereof by an international
bank agency licensed by OFR shall to the same extent be limited or denied
unless expressly permitted by provisions of Chapter 663, F.S., other than the
parts thereof initially cited in this paragraph; and,
(b) Shall be subject to all the same duties,
restrictions, penalties, liabilities, conditions, and limitations that would
apply under the Financial Institutions Codes to a state bank doing business in
Florida.
Notes
Rulemaking Authority 655.012(2), 663.061 (3), 663.13 FS. Law Implemented 663.061, 663.06(5) FS.
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
(1) Generally, permissible activities shall include those activities permissible for corporations engaged in international banking or financial operations under the Edge Act, 12 U.S.C. sections 611-631, except such of those activities that are contrary to or inconsistent with any of the provisions of Chapter 663, F.S., or these rules. An international bank agency may engage in any activity permissible for an international administrative office or international representative office.
(2) An international bank agency may maintain for the account of others credit balances necessarily incidental to, or arising out of, the exercise of its lawful powers. Provided that such credit balances are disbursed in accordance with subsection (3) of this rule, they shall not be considered to be functionally equivalent to demand deposits for purposes of Section 663.061(2), F.S. Credit balances may include proceeds of loans to customers where such proceeds are not immediately disbursed; proceeds of incoming remittances; proceeds of collections made for customers' accounts; funds delivered by customers to settle letters of credit accounts with the banking agency prior to settlement date; proceeds of export bills negotiated (i.e., drafts drawn under letters of credit issued by and received from other financial institutions); cash collateral resulting from any permissible activity with a customer; undisbursed proceeds of a loan retained by the banking agency in the nature of a compensating balance from the borrowing customer; funds delivered prior to execution of money transfers undertaken on behalf of customers; funds delivered or received on account of the purchase or sale of securities for the account of customers; and funds received from customers to cover currency transactions or as the result of currency transactions on behalf of customers.
(3) A credit balance may be fully or partially disbursed either to the customers for whose accounts it is maintained or to third parties designated by the customer. Such disbursements may be made by check, draft, pre-authorized transfer, or otherwise. Disbursements by the customer to third parties, however made, shall not exceed an average of twenty per day per calendar month. Disbursements to the customer maintaining the credit balance and disbursements by the international bank agency on behalf of the customer to third parties may be made without limitation.
(4) To insure compliance with subsection (3) of this rule, an international bank agency which maintains credit balances for the account of customers shall adopt procedures to monitor credit balance disbursements to third parties and promptly notify customers who exceed the limitations established in subsection (3) of this rule. Customers who are notified as provided in this subsection and who subsequently exceed the limitations established in subsection (3) of this rule shall be prohibited by the international bank agency at which their accounts are maintained from making further credit balance disbursements to third parties.
(5) An agency may provide financing and banking services to foreign businesses and foreign individuals in their foreign operations, and also in their operations in the United States or elsewhere, where such operations are in the stream of international business and commerce. An agency may also provide financing and banking services to United States businesses and customers in their foreign operations and in their operations in Florida and elsewhere that are clearly related to international commerce, such as operations directly connected with the production, storage, transportation and sale of goods for export or import if the importation or exportation of the goods is financed by the banking agency.
(6) Deposits.
(a) An international bank agency licensed by this state may accept, pursuant to Section 663.061, F.S., only the following deposits:
1. Deposits from non-resident entities whose principal places of business are outside the United States. For purposes of this subsection, the phrase "non-resident entities whose principal places of business are outside the United States" shall mean entities which conduct a majority of their business activities in a foreign county, a territory of the United States, Puerto Rico, Guam, American Samoa or the Virgin Islands. The term shall include foreign governments and their sub-divisions, agencies and instrumentalities. An entity which conducts business in the United States shall be deemed to have its principal place of business outside the United States if any one of the following requirements are satisfied for the last fiscal year of such entity:
a. The assets of such entity located outside the United States exceed its assets located within the United States,
b. The gross revenues of such entity generated outside the United States exceed its gross revenues generated within the United States, or
c. The payroll expenses of such entity incurred outside the United States exceed its payroll expenses incurred within the United States.
2. Deposits from non-resident persons whose principal places of domicile are outside the United States. For purposes of this subsection, the phrase "non-resident persons whose principal places of domicile are outside the United States" shall mean individuals, including United States citizens, who reside within the United States for less than 183 days during a calendar year.
3. Interbank deposits, interbank borrowing, or similar interbank obligations. For purposes of this subsection, the phrase "interbank deposits, interbank borrowing, or similar interbank obligations" shall mean activities represented by a certificate of deposit, promissory note, acknowledgement of advance, or other similar instrument, between the international bank agency and any financial institution, as defined in Section 655.50, F.S., which institution is located in the United States.
4. International banking facility deposits, as defined by Rule 69U-100.003, F.A.C.
(b) An international bank agency shall be entitled to presume that an entity or person meets the requirements of subparagraphs (a)1. or 2., respectively, if such entity or person furnishes to the international bank agency a written statement which:
1. Sets forth the specific facts which indicate that the requirements of the applicable subparagraph have been met; and,
2. Acknowledges an affirmative duty on the part of the entity or person furnishing the written statement to advise management of the agency in the event that such entity or person ceases to meet the applicable requirements.
(7) Pursuant to the authority contained in Section 663.061, F.S., notwithstanding the limitations set forth above, the operations of an international banking corporation at its international bank agency licensed in Florida by OFR:
(a) May be conducted with the same rights and privileges as a state bank including, but not limited to, maintaining credit balances incidental to or arising out of the exercise of its banking powers, paying checks and lending money, except that it shall not exercise fiduciary powers or accept deposits other than the deposits defined in this rule; provided, however, that if at any time any of the same or substantially similar rights and privileges herein granted are, with respect to their exercise by a federal agency, denied or limited by federal law or regulation, or by judicial action, the exercise thereof by an international bank agency licensed by OFR shall to the same extent be limited or denied unless expressly permitted by provisions of Chapter 663, F.S., other than the parts thereof initially cited in this paragraph; and,
(b) Shall be subject to all the same duties, restrictions, penalties, liabilities, conditions, and limitations that would apply under the Financial Institutions Codes to a state bank doing business in Florida.
Notes
Rulemaking Authority 655.012(2), 663.061 (3), 663.13 FS. Law Implemented 663.061, 663.06(5) FS.