ANNEX VII PART A Schedule of the United States SECTOR: Financial Services SUB-SECTOR: Bank

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ANNEX VII PART A Schedule of the United States SECTOR: Financial Services SUB-SECTOR: Banking TYPE OF RESERVATION: Article 1409 (Staffing) MEASURE: U.S. citizenship requirements for chief executive officers of national banks not affiliated or owned by foreign banks LEVEL OF GOVERNMENT: Federal LEGAL CITATION: The National Bank Act, 12 U.S.C.  72. DESCRIPTION: All directors of a national bank must be citizens of the United States. Because it is also required that chief executive officers of all national banks be directors, a chief executive officer of a national bank must be a citizen of the United States. An exception from these requirements exists for national banks affiliated or owned by foreign banks. Such banks are only required to have citizens constitute a simple majority of the directors and need not employ citizens as chief executive officers. DURATION: Indeterminate ============================================================================= ANNEX VII PART A Schedule of the United States SECTOR: Financial Services SUB-SECTOR: Banking TYPE OF RESERVATION: Article 1409 (Staffing) MEASURE: Residency requirements on boards of directors of national banks LEVEL OF GOVERNMENT: Federal LEGAL CITATION: The National Bank Act, 12 U.S.C.  72. DESCRIPTION: Two-thirds of the directors of a national bank must have (i) resided for one year prior to their election, and (ii) continue to reside, in the state in which the bank is located or within 100 miles of the national bank. DURATION: Indeterminate ============================================================================= ANNEX VII PART A Schedule of the United States SECTOR: Financial Services SUB-SECTOR: Banking TYPE OF RESERVATION: Article 1407 (National Treatment) MEASURE: Limitations on acquisition of interests in banks on an interstate basis LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Bank Holding Company Act of 1956, as amended, 12 U.S.C.  1842(d); International Banking Act of 1978, as amended, 12 U.S.C.  3103(a)(5). DESCRIPTION: Federal authorities may not approve the establishment of, or acquisition of an interest in, a bank subsidiary within a state ("the host state") by a foreign bank that has a full-service branch or bank subsidiary in the United States, unless the measures of the host state expressly permit the transaction. Thus, foreign banks may not acquire interests in banks in some states on the same basis as domestic bank holding companies from the foreign bank's home state. For purposes of determining national treatment under paragraph 6(b) of Article 1407, foreign banks are located in their "home state," as that term is used in the International Banking Act of 1978. The following types of measures, inter alia, fall into this category: (a) Foreign banks are expressly excluded from the authority to own banks in certain regional holding company laws. (b) Foreign banks are implicitly excluded through a definition of eligible owner in certain state laws that requires a majority of the parent bank's deposits to be in the United States, in a particular region of the United States, or in a particular state. (c) Foreign banks that do not already own a banking subsidiary in the United States are interpreted as not qualifying as an eligible "bank holding company" entitled to own a bank. DURATION:Indeterminate ============================================================================= ANNEX VII PART A Schedule of the United States SECTOR: Financial Services SUB-SECTOR: Banking TYPE OF RESERVATION: Article 1407 (National Treatment) MEASURE: Limitations on ownership of corporations organized under section 25A of the Federal Reserve Act ("Edge corporations") LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Federal Reserve Act, 12 U.S.C.  619. DESCRIPTION: Edge corporations (specialized international banking companies chartered under Federal law) may be owned by domestically-owned banks and bank holding companies, and by domestic non-bank companies willing to restrict their business activities to those closely related to banking. Foreign ownership of Edge corporations is limited to foreign banks and U.S. subsidiaries of foreign banks. Other foreign persons may neither directly nor indirectly own Edge corporations. DURATION: Indeterminate ============================================================================= ANNEX VII PART A Schedule of the United States SECTOR: Financial Services SUB-SECTOR: Banking TYPE OF RESERVATION: Article 1407 (National Treatment) MEASURE: Exemption from limitations for federal- and state-owned companies that own banks LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Bank Holding Company Act of 1956, as amended, 12 U.S.C.  1841(b) DESCRIPTION: The Bank Holding Company Act does not apply to companies that are majority-owned by the Federal and state governments, whereas companies owned by foreign governments are not excepted. DURATION: Indeterminate ============================================================================= ANNEX VII PART A Schedule of the United States SECTOR: Financial Services SUB-SECTOR: Banking TYPE OF RESERVATION: Article 1407 (National Treatment) MEASURE: Limitations on the ability of foreign banks to accept certain types of deposits through any form other than an insured banking subsidiary LEVEL OF GOVERNMENT: Federal LEGAL CITATION: International Banking Act of 1978, 12 U.S.C. 3104 (as amended by The Federal Deposit Insurance Corporation Improvement Act of 1991, Pub.L. 102-242, Title II,  214(a)). DESCRIPTION: After December 19, 1991, in order to accept or maintain deposit accounts having balances of less than $100,000, a foreign bank must establish an insured banking subsidiary. As a result, foreign bank branches are prohibited from taking insured deposits unless engaged in that activity on December 19, 1991. DURATION: Indeterminate ============================================================================= ANNEX VII PART A Schedule of the United States SECTOR: Financial Services SUB-SECTOR: Banking TYPE OF RESERVATION: Article 1407 (National Treatment) MEASURE: Limitations on membership in the Federal Reserve System LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Federal Reserve Act, 12 U.S.C.  321, 221, 302; International Banking Act of 1978, 12 U.S.C.  3106(d). DESCRIPTION: Foreign banks with branches and agencies in the United States may not be members of the Federal Reserve System, and may thus not vote for directors of a Federal Reserve Bank. DURATION: Indeterminate ============================================================================= ANNEX VII PART A Schedule of the United States SECTOR: Financial Services SUB-SECTOR: Banking and Securities TYPE OF RESERVATION: Articles 1407 and 1408 (National Treatment, Most-Favored-Nation Treatment) MEASURE: Limitation on designation of foreign firms as primary dealers in U.S. government securities LEVEL OF GOVERNMENT: Federal LEGAL CITATION: The Primary Dealers Act of 1988, 22 U.S.C.  5341-5342. DESCRIPTION: The Primary Dealers Act of 1988 prohibits a foreign firm to be designated as a primary dealer in U.S. government debt obligations unless the home country of the foreign firm accords to U.S. firms the same competitive opportunities as are accorded to domestic firms in the underwriting and distribution of government debt instruments in the firm's home country. DURATION: Indeterminate ============================================================================= ANNEX VII PART A Schedule of the United States SECTOR: Financial Services SUB-SECTOR: Banking and Securities TYPE OF RESERVATION: Articles 1407, 1408 and 1409 (National Treatment, MFN Treatment, Staffing) MEASURE: Eligibility of foreign trust indentures LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Trust Indenture Act of 1939, 15 U.S.C.  77jjj(a)(1) and rules thereunder. DESCRIPTION: Under the Trust Indenture Act of 1939, foreign firms located outside the United States may be prohibited from acting as sole trustees under an indenture for debt securities sold in the United States if U.S. institutional trustees cannot act as sole trustee for securities sold in the foreign country. DURATION: Indeterminate ============================================================================= ANNEX VII PART A Schedule of the United States SECTOR: Financial Services SUB-SECTOR: Banking and Securities TYPE OF RESERVATION: Article 1409 (MFN Treatment) MEASURE: Special reserve bank account LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Rule 15c3-3 of the Securities Exchange Act of 1934, 17 C.F.R.  240.15c3-3. DESCRIPTION: Broker-dealers that maintain their principal place of business in Canada may maintain their reserve requirement at a Canadian bank subject to supervision by an authority of Canada; however, other foreign broker-dealers not in the U.S. or Canada must maintain reserves in the U.S. DURATION: Indeterminate ============================================================================= ANNEX VII PART A Schedule of the United States SECTOR: Financial Services SUB-SECTOR: Commodity Futures and Options TYPE OF RESERVATION: Articles 1405 and 1406 (Cross-Border Trade, New Financial Services) LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Commodity Exchange Act, 7 U.S.C.  2. DESCRIPTION: Federal law prohibits the offer or sale of futures contracts on onions, options contracts on onions and options on futures contracts on onions in the United States and services related thereto. DURATION: Indeterminate ============================================================================= ANNEX VII PART A Schedule of the United States SECTOR: Financial Services SUB-SECTOR: Insurance TYPE OF RESERVATION: Article 1407 (National Treatment) MEASURE: LEVEL OF GOVERNMENT: Federal LEGAL CITATION: 31 U.S.C.  9304 DESCRIPTION: Branches of foreign insurance companies are not permitted to provide surety bonds for U.S. Government contracts. DURATION: Indeterminate ============================================================================= ANNEX VII PART A Schedule of the United States SECTOR: Financial Services SUB-SECTOR: Banking and Securities TYPE OF RESERVATION: Article 1407 (National Treatment) MEASURE: Differential treatment of foreign and domestic banks under the federal securities laws LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Investment Advisors Act of 1940, 15 U.S.C.  80b-2 and  80b-3 and the rules thereunder. DESCRIPTION: Foreign banks may be required to register as investment advisers under the Investment Advisors Act of 1940 to engage in securities advisory services in the United States, while domestic banks are exempt from registration. DURATION: Indeterminate ============================================================================= ANNEX VII PART A Schedule of the United States SECTOR: Financial Services SUB-SECTOR: Securities TYPE OF RESERVATION: Article 1407 (National Treatment) MEASURE: Application of the disclosure provisions of the federal securities laws to the U.S. government, government-owned enterprises, and state and local governments. LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Securities Exchange Act of 1934, 15 U.S.C.  78c(a)(12)(A)(i), 78c(a)(12)(A)(ii) and the rules thereunder; Securities Act of 1933, 15 U.S.C.  77c(a)(2) and the rules thereunder. DESCRIPTION: U.S. federal, state and local government securities are exempt from the registration and disclosure provisions of the federal securities laws. DURATION: Indeterminate ============================================================================= ANNEX VII PART A Schedule of the United States SECTOR: Financial Services SUB-SECTOR: Securities TYPE OF RESERVATION: Article 1407 (National Treatment) MEASURE: Application of the federal securities laws to the U.S. government, government owned enterprises, and state and local governments LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Investment Company Act of 1940, 15 U.S.C.  80a-2(b), and the rules thereunder; Investment Advisers Act of 1940, 15 U.S.C.  80-2(b), and the rules thereunder. DESCRIPTION: The Investment Company Act of 1940 and the Investment Advisers Act of 1940 do not apply to investment companies and investment advisers, respectively, that are owned by the federal, state and local governments, whereas investment companies and investment advisers owned by foreign governments are not excepted. DURATION: Indeterminate ============================================================================= ANNEX VII PART A Schedule of the United States SECTOR: Financial Services SUB-SECTOR: Banking and Securities TYPE OF RESERVATION: Article 1407 (National Treatment) MEASURE: Application of the federal securities laws to the U.S. government, government-owned enterprises, and state and local governments. LEVEL OF GOVERNMENT: Federal LEGAL CITATION: Securities Exchange Act of 1934, 15 U.S.C.  78c(a)(43)(A), 78c(a)(44)(A) and 78c(d) the rules thereunder. DESCRIPTION: No provision of the Exchange Act applies to the U.S. government. Thus, U.S.-owned exchanges, clearing agencies, brokers, dealers, and banks are not regulated under the Exchange Act. In addition, U.S. government enterprises are exempt from government securities broker and dealer registration and regulation. State and local government officials are also exempted from the registration as brokers, dealers, and municipal securities dealers. DURATION: Indeterminate ============================================================================= ANNEX VII PART A Schedule of the United States SECTOR: Financial Services SUB-SECTOR: TYPE OF RESERVATION: Article 1407 (National Treatment) MEASURE: LEVEL OF GOVERNMENT: Federal LEGAL CITATION: DESCRIPTION: Foreign government owned firms are not entitled to extend credit backed by the guarantees of the Commodity Credit Corporation. DURATION: Indeterminate ============================================================================= ANNEX VII PART A Schedule of the United States The United States shall set out any existing non-conforming measures maintained by California, Florida, Illinois, New York, Ohio, and Texas by the date of entry into force of this Agreement. Existing non-conforming state measures of all other states shall be set out by January 1, 1995. ============================================================================= ANNEX VII PART B Schedule of the United States The United States reserves the right to derogate from Articles 1405(1) and 1408 for the securities sector with respect to Canada. With respect to these Articles, the United States may adopt or maintain measures affecting cross-border trade in securities services that are more restrictive than measures existing on the date of entry into force of this Agreement. ============================================================================= ANNEX VII PART C Schedule of the United States The United States commits to permit an eligible grupo financiero that, in formation of the grupo in Mexico before the entry into force of this Agreement, lawfully acquires an eligible Mexican bank and a Mexican securities firm which owns or controls a securities company in the United States, to continue to engage through that U.S. securities company in the activities in which that securities company was engaged on the date of acquisition by the grupo for a time period of five years from the date of such acquisition. The U.S. securities firm: (i) shall not be permitted to expand through acquisition in the United States during such period; and (ii) shall be subject to measures consistent with national treatment that restrict transactions between the firms and their affiliates. For purposes of this paragraph: an "eligible grupo financiero" is a Mexican financial group that has not previously benefitted from this commitment; and an "eligible Mexican bank" means any Mexican instituci¢n de cr‚dito that owned or controlled a subsidiary bank, or operated a branch or agency, in the United States on January 1, 1992. ============================================================================= ANNEX VII PART D Schedule of the United States For the purposes of Article 1413(2), the United States designates the Department of the Treasury as its governmental agency responsible for banking and other financial services, and the United States Department of Commerce for insurance services.

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