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license in Hong Kong.
Subject to certain limitations discussed below, the Board has approved of CBC engaging outside the United States in all activities permissible to a foreign bank subsidiary of a bank holding company under the Board's regulations.
CBC currently conducts the activities described above through its branches in Nassau, The Bahamas, Bahrain and Jersey, Channel Islands.
As noted above, CBC believes it meets all the requirements of the Ordinance and administrative policy for the granting of a branch license. CBC has been advised that there are four principal criteria which will be considered in connection with the review of this application.
application. For your convenience, set forth below is a discussion of each of these criteria and the basis for CBC's belief that it complies fully with each of them. The criteria are: (i) that CBC is a "bank" incorporated in a country outside of Hong Kong; (ii) that CBC is subject to effective prudential supervision by the monetary authorities of said country and such authorities do not object to the establishment of a branch in Hong Kong; (iii) that CBC has total assets in excess of US$12,000 million; and (iv) that an acceptable form of reciprocity is available to Hong Kong banks in such country.
I. BANK INCORPORATED OUTSIDE HONG KONG
As previously stated, CBC is an offshore bank incorporated under the laws of Delaware in the United States. To determine whether it is a "bank incorporated outside Hong Kong" for purposes of this application, one must look to the definition. of that phrase in the Ordinance. The Ordinance defines a "bank incorporated outside Hong Kong" as meaning a bank "incorporated by or under the laws of other authority in any country, state or place outside Hong Kong". The relevant portion of the definition of "bank" is "a company which carries on banking business". The second part of the definition of "bank" set forth in Section 2 of the Ordinance, relating to the holding of a valid license granted under Section 7, can obviously only apply to the banks which have been already licensed in Hong Kong.
CBC is a corporation incorporated under the laws of the State of Delaware in the United States. A copy of its Certificate of Incorporation (the "Certificate"), certified by the Secretary of State of the State of Delaware, which evidences the foregoing, and a copy of its by-laws, certified by an officer of CBC, are enclosed with this application as
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