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agency offices were required to obtain a license from State banking
regulators.
Second, the parties have stipulated that neither BCCI, S.A.
nor its IOMB was "chartered under Federal or State law". The term
"chartered" as used in section 165(l)(3)(D) is not defined in the
Internal Revenue Code, the regulations, or the legislative history.
For general legal purposes, however, the term "charter" is
equivalent to granting permission to organize; i.e., it refers to
the laws under which a bank is organized together with its articles
of incorporation. See, e.g., Cal. Corp. Code secs. 191(d), 202
(1989); Stanford v. Commissioner, 108 T.C. 344, 345 (1997) ("In its
articles of association or charter, Guardian Bank's stated business
purpose"); Liberty Natl. Co. v. Commissioner, 18 B.T.A. 510, 512
(1929) ("Each was created for certain definite purposes set forth
in its charter or articles of incorporation"), revd. on a different
11(...continued)
105 Stat. 2286. Congress' expansion of the Federal Reserve
Board's powers in the 1991 legislation underlines the lack of
Federal supervisory power in previous years, including the years
at issue.
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