HR 111 IHCommentsClose CommentsPermalink

To amend the Bank Holding Company Act of 1956 and the Revised Statutes of the United States to prohibit financial holding companies and national banks from engaging, directly or indirectly, in real estate brokerage or real estate management activities, and for other purposes.CommentsClose CommentsPermalink

January 6, 2009CommentsClose CommentsPermalink

Mr. KANJORSKI (for himself, Mr. CALVERT, Mr. BERMAN, Mr. HIGGINS, Mr. DEFAZIO, Mr. OLVER, Mr. HOLDEN, Ms. BORDALLO, Mr. WU, Mr. HINOJOSA, Mr. ROSKAM, Mr. CLEAVER, Mr. HOLT, Ms. EDDIE BERNICE JOHNSON of Texas, Ms. SCHWARTZ, Mr. ROTHMAN of New Jersey, Mr. BROWN of South Carolina, Mr. PAUL, Mr. ENGEL, Mr. DOGGETT, Mr. LEWIS of Georgia, Mr. MCCOTTER, Mr. LEVIN, Mr. TIERNEY, Mr. POE of Texas, Mr. EDWARDS of Texas, Mr. MCHUGH, Ms. WOOLSEY, Mr. AL GREEN of Texas, Ms. SCHAKOWSKY, Mr. DINGELL, Mr. CARNAHAN, Mr. LIPINSKI, Mr. CULBERSON, Mr. KAGEN, Mr. MATHESON, Mr. PALLONE, Mr. MICHAUD, Mr. BISHOP of New York, Mr. MEEKS of New York, Mr. PASCRELL, Mr. LAMBORN, and Mr. GRIJALVA) introduced the following bill; which was referred to the Committee on Financial ServicesCommentsClose CommentsPermalink

To amend the Bank Holding Company Act of 1956 and the Revised Statutes of the United States to prohibit financial holding companies and national banks from engaging, directly or indirectly, in real estate brokerage or real estate management activities, and for other purposes.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘Community Choice in Real Estate Act’.CommentsClose CommentsPermalink

SEC. 2. CLARIFICATION THAT REAL ESTATE BROKERAGE AND MANAGEMENT ACTIVITIES ARE NOT BANKING OR FINANCIAL ACTIVITIES.

(a) Bank Holding Company Act of 1956- Section 4(k) of the Bank Holding Company Act of 1956 (12 U.S.C. 1843(k)) is amended by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(8) REAL ESTATE BROKERAGE AND REAL ESTATE MANAGEMENT ACTIVITIES-CommentsClose CommentsPermalink





‘(A) IN GENERAL- The Board may not determine that real estate brokerage activity or real estate management activity is an activity that is financial in nature, is incidental to any financial activity, or is complementary to a financial activity.CommentsClose CommentsPermalink





‘(B) REAL ESTATE BROKERAGE ACTIVITY DEFINED- For purposes of this paragraph, the term ‘real estate brokerage activity’ means any activity that involves offering or providing real estate brokerage services to the public, including--CommentsClose CommentsPermalink





‘(i) acting as an agent for a buyer, seller, lessor, or lessee of real property;CommentsClose CommentsPermalink





‘(ii) listing or advertising real property for sale, purchase, lease, rental, or exchange;CommentsClose CommentsPermalink





‘(iii) providing advice in connection with sale, purchase, lease, rental, or exchange of real property;CommentsClose CommentsPermalink





‘(iv) bringing together parties interested in the sale, purchase, lease, rental, or exchange of real property;CommentsClose CommentsPermalink





‘(v) negotiating, on behalf of any party, any portion of a contract relating to the sale, purchase, lease, rental, or exchange of real property (other than in connection with providing financing with respect to any such transaction);CommentsClose CommentsPermalink





‘(vi) engaging in any activity for which a person engaged in the activity is required to be registered or licensed as a real estate agent or broker under any applicable law; andCommentsClose CommentsPermalink





‘(vii) offering to engage in any activity, or act in any capacity, described in clause (i), (ii), (iii), (iv), (v), or (vi).CommentsClose CommentsPermalink





‘(C) REAL ESTATE MANAGEMENT ACTIVITY DEFINED- For purposes of this paragraph, the term ‘real estate management activity’ means any activity that involves offering or providing real estate management services to the public, including--CommentsClose CommentsPermalink





‘(i) procuring any tenant or lessee for any real property;CommentsClose CommentsPermalink





‘(ii) negotiating leases of real property;CommentsClose CommentsPermalink





‘(iii) maintaining security deposits on behalf of any tenant or lessor of real property (other than as a depository institution for any person providing real estate management services for any tenant or lessor of real property);CommentsClose CommentsPermalink





‘(iv) billing and collecting rental payments with respect to real property or providing periodic accounting for such payments;CommentsClose CommentsPermalink





‘(v) making principal, interest, insurance, tax, or utility payments with respect to real property (other than as a depository institution or other financial institution on behalf of, and at the direction of, an account holder at the institution);CommentsClose CommentsPermalink





‘(vi) overseeing the inspection, maintenance, and upkeep of real property, generally; andCommentsClose CommentsPermalink





‘(vii) offering to engage in any activity, or act in any capacity, described in clause (i), (ii), (iii), (iv), (v), or (vi).CommentsClose CommentsPermalink





‘(D) EXCEPTION FOR COMPANY PROPERTY- This paragraph shall not apply to an activity of a bank holding company or any affiliate of such company that directly relates to managing any real property owned by such company or affiliate, or the purchase, sale, or lease of property owned, or to be used or occupied, by such company or affiliate.CommentsClose CommentsPermalink





‘(E) CURRENT ACTIVITIES NOT AFFECTED- No provision of this paragraph, or any determination made pursuant to any such provision, may be construed as prohibiting, restricting, altering, or otherwise affecting, the right, power, or ability of any financial holding company to engage in any activity, or acquire or retain the shares of any company engaged in an activity, if engaging in such activity, or acquiring or retaining such shares, was authorized for financial holding companies on December 6, 2001.’.CommentsClose CommentsPermalink





(b) Revised Statutes of the United States- Section 5136A(b) of the Revised Statutes of the United States (12 U.S.C. 24a(b)) is amended by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(4) REAL ESTATE BROKERAGE AND REAL ESTATE MANAGEMENT ACTIVITIES-CommentsClose CommentsPermalink





‘(A) IN GENERAL- The Secretary may not determine that real estate brokerage activity or real estate management activity is an activity that is financial in nature, is incidental to any financial activity, or is complementary to a financial activity.CommentsClose CommentsPermalink





‘(B) DEFINITIONS- For purposes of this paragraph, the terms ‘real estate brokerage activity’ and ‘real estate management activity’ have the same meanings as in section 4(k)(8) of the Bank Holding Company Act of 1956.CommentsClose CommentsPermalink





‘(C) EXCEPTION FOR COMPANY PROPERTY- This paragraph shall not apply to an activity of a national bank, or a subsidiary of a national bank, that directly relates to managing any real property owned by such bank or subsidiary, or the purchase, sale, or lease of property owned, or to be owned, by such bank or subsidiary.CommentsClose CommentsPermalink





‘(D) CURRENT ACTIVITIES NOT AFFECTED- No provision of this paragraph, or any determination made pursuant to any such provision, may be construed as prohibiting, restricting, altering, or otherwise affecting, the right, power, or ability of any national bank, or a subsidiary of a national bank, to engage in any activity, or acquire or retain the shares of any company engaged in an activity, if engaging in such activity, or acquiring or retaining such shares, was authorized for national banks, or subsidiaries of national banks, on December 6, 2001.’.CommentsClose CommentsPermalink