US (United States) Code. Title 12. Chapter 2: National banks

Codificación normativa de EEUU (Estados Unidos). Legislación federal estadounidense # Banks and banking

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12 USC CHAPTER 2 - NATIONAL BANKS 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

.

-HEAD-

CHAPTER 2 - NATIONAL BANKS

-MISC1-

SUBCHAPTER I - ORGANIZATION AND GENERAL PROVISIONS

Sec.

21. Formation of national banking associations; incorporators;

articles of association.

21a. Amendment of articles of association.

22. Organization certificate.

23. Acknowledgment and filing of certificate.

24. Corporate powers of associations.

24a. Financial subsidiaries of national banks.

(a) Authorization to conduct in subsidiaries certain

activities that are financial in nature.

(b) Activities that are financial in nature.

(c) Capital deduction.

(d) Safeguards for the bank.

(e) Provisions applicable to national banks that fail

to continue to meet certain requirements.

(f) Failure to maintain public rating or meet

applicable criteria.

(g) Definitions.

25. Omitted.

25a. Participation by national banks in lotteries and related

activities.

(a) Prohibited activities.

(b) Use of banking premises prohibited.

(c) Definitions.

(d) Lawful banking services connected with operation

of lotteries.

(e) Regulations; enforcement.

26. Comptroller to determine if association can commence business.

27. Certificate of authority to commence banking.

28. Repealed.

29. Power to hold real property.

30. Change of name or location.

(a) Name change.

(b) Location change.

(c) Coordination with section 36 of this title.

(d) Retention of ''Federal'' in name of converted

Federal savings association.

31. Rights and liabilities as affected by change of name.

32. Liabilities and suits as affected by change of name or

location.

33 to 34c. Transferred.

35. Organization of State banks as national banking associations.

36. Branch banks.

(a) Lawful and continuous operation.

(b) Converted State banks.

(c) New branches.

(d) Branches resulting from interstate merger

transactions.

(e) Exclusive authority for additional branches.

(f) Law applicable to interstate branching

operations.

(g) State ''opt-in'' election to permit interstate

branching through de novo branches.

(h) Repealed.

(i) Prior approval of branch locations.

(j) ''Branch'' defined.

(k) Branches in foreign countries, dependencies, or

insular possessions.

(l) ''State bank'' and ''bank'' defined.

37. Associations governed by chapter.

38. The National Bank Act.

39. Reservation of rights of associations organized under Act of

1863.

40. Virgin Islands; extension of National Bank Act.

41. Guam; extension of National Bank Act.

42. Territorial application.

43. Interpretations concerning preemption of certain State laws.

(a) Notice and opportunity for comment required.

(b) Publication required.

(c) Exceptions.

SUBCHAPTER II - CAPITAL, STOCK, AND STOCKHOLDERS

51. Repealed.

51a. Preferred stock; issuance authorized.

51b. Dividends, voting, and retirement of preferred stock;

individual liability.

51b-1. Consideration of preferred stock in determining impairment

of capital; dividends; retirement.

51c. ''Common stock'', ''capital'', and ''capital stock'' defined.

51d to 51f. Repealed.

52. Par value and incidents of stock; transfer of shares.

53. When capital stock paid in.

54. Repealed.

55. Enforcing payment of deficiency in capital stock; assessments;

liquidation; receivership.

56. Prohibition on withdrawal of capital; unearned dividends.

57. Increase of capital by provision in articles of association.

58. Repealed.

59. Reduction of capital by vote of shareholders.

60. Dividends.

(a) Periodic declaration; surplus fund.

(b) Approval of Comptroller.

61. Shareholders' voting rights; cumulative and distributive

voting; preferred stock; trust shares; proxies, liability

restrictions; percentage requirement exclusion of trust shares.

62. List of shareholders.

63, 64. Repealed.

64a. Individual liability of shareholders; limitation on liability.

65. Repealed.

66. Personal liability of representatives of stockholders.

67. Individual liability of shareholders; compromises; authority of

receiver.

SUBCHAPTER III - DIRECTORS

71. Election.

71a. Number of directors; penalties.

72. Qualifications.

73. Oath.

74. Vacancies.

75. Legal holiday, annual meeting on; proceedings where no election

held on proper day.

76. President of bank as member of board; chairman of board.

77, 78. Repealed.

SUBCHAPTER IV - REGULATION OF THE BANKING BUSINESS; POWERS AND

DUTIES OF NATIONAL BANKS

81. Place of business.

82. Repealed.

83. Loans by bank on its own stock.

(a) General prohibition.

(b) Exclusion.

84. Lending limits.

(a) Total loans and extensions of credit.

(b) Definitions.

(c) Exceptions.

(d) Authority of Comptroller of the Currency.

85. Rate of interest on loans, discounts and purchases.

86. Usurious interest; penalty for taking; limitations.

86a to 89. Omitted or Repealed.

90. Depositaries of public moneys and financial agents of

Government.

91. Transfers by bank and other acts in contemplation of

insolvency.

92. Acting as insurance agent or broker.

92a. Trust powers.

(a) Authority of Comptroller of the Currency.

(b) Grant and exercise of powers deemed not in

contravention of State or local law.

(c) Segregation of fiduciary and general assets;

separate books and records; access of State

banking authorities to reports of examinations,

books, records, and assets.

(d) Prohibited operations; separate investment

account; collateral for certain funds used in

conduct of business.

(e) Lien and claim upon bank failure.

(f) Deposits of securities for protection of private

or court trusts; execution of and exemption

from bond.

(g) Officials' oath or affidavit.

(h) Loans of trust funds to officers and employees

prohibited; penalties.

(i) Considerations determinative of grant or denial

of applications; minimum capital and surplus

for issuance of permit.

(j) Surrender of authorization; board resolution;

Comptroller certification; activities affected;

regulations.

(k) Revocation; procedures applicable.

93. Violation of provisions of chapter.

(a) Forfeiture of franchise; personal liability of

directors.

(b) Civil money penalty.

(c) Notice under this section after separation from

service.

(d) Forfeiture of franchise for money laundering or

cash transaction reporting offenses.

(d) Authority.

93a. Authority to prescribe rules and regulations.

94. Venue of suits.

94a. Repealed.

95. Emergency limitations and restrictions on business of members

of Federal reserve system; designation of legal holiday for

national banking associations; exceptions; ''State'' defined.

95a. Regulation of transactions in foreign exchange of gold and

silver; property transfers; vested interests, enforcement and

penalties.

95b. Ratification of acts of President and Secretary of the

Treasury under section 95a.

SUBCHAPTER V - OBTAINING AND ISSUING CIRCULATING NOTES

101 to 110. Repealed.

SUBCHAPTER VI - REDEMPTION AND REPLACEMENT OF CIRCULATING NOTES

121. Repealed.

121a. Redemption of notes unidentifiable as to bank of issue.

122 to 127. Repealed.

SUBCHAPTER VII - PROCEEDINGS ON FAILURE OF BANK TO REDEEM

CIRCULATING NOTES

131 to 138. Repealed.

SUBCHAPTER VIII - RESERVE CITIES; LAWFUL RESERVES

141. Central reserve and reserve cities; designation.

142. Banks in reserve cities; reserves.

143. Banks in Alaska and insular possessions; lawful money

reserves.

144. Certain balances counted toward reserves in dependencies and

insular possessions.

145, 146. Repealed.

SUBCHAPTER IX - FORMATION OF ASSOCIATIONS TO ISSUE GOLD NOTES

151 to 153. Repealed.

SUBCHAPTER X - BANK EXAMINATIONS; REPORTS

161. Reports to Comptroller of the Currency.

(a) Reports of condition; form; contents; date of

making; publication.

(b) Payment of dividends.

(c) Reports of affiliates; form; contents; date of

making; publication; penalties.

162, 163. Repealed.

164. Penalty for failure to make reports.

(a) First tier.

(b) Second tier.

(c) Third tier.

(d) Assessment; etc.

(e) Hearing.

165. Omitted.

SUBCHAPTER XI - MISCELLANEOUS PROVISIONS REGARDING UNITED STATES

BONDS IN RELATION TO NATIONAL BANKS

168 to 177. Repealed.

177a. Funds available for cost of transporting and redeeming

national and Federal Reserve bank notes.

178. Repealed.

SUBCHAPTER XII - VOLUNTARY DISSOLUTION

181. Voluntary dissolution; appointment and removal of liquidating

agent or committee; examination.

182. Notice of intent to dissolve.

183 to 186. Repealed.

SUBCHAPTER XIII - RECEIVERSHIP

191. Appointment of Federal Deposit Insurance Corporation as

receiver.

192. Default in payment of circulating notes.

193. Notice to present claims.

194. Dividends on adjusted claims; distribution of assets.

195. Repealed.

196. Expenses.

197. Shareholders' meeting; continuance of receivership;

appointment of agent; winding up business; distribution of

assets.

197a. Resumption of business by closed bank on consent of

depositors.

198. Purchase by receiver of property of bank; request to

Comptroller.

199. Approval of request.

200. Payment.

SUBCHAPTER XIV - BANK CONSERVATION ACT

201. Short title.

202. Definitions.

203. Appointment of conservator.

(a) Appointment.

(b) Judicial review.

(c) Additional grounds for appointment.

(d) Exclusive authority.

(e) Replacement of conservator.

204. Examinations.

205. Termination of conservatorship.

(a) General rule.

(b) Other grounds for termination.

(c) Enforcement under Federal Deposit Insurance Act.

(d) Action upon termination.

206. Conservator; powers and duties.

(a) General powers.

(b) Subject to rules of Comptroller.

(c) Payment of depositors and creditors.

(d) Compensation of conservator and employees.

(e) Expenses.

207, 208. Repealed.

209. Liability protection.

(a) Federal agency and employees.

(b) Other conservators.

(c) Indemnification.

210. Governmental powers unimpaired.

211. Rules and regulations.

(a) In general.

(b) F.D.I.C. as conservator.

212. Right to amend; separability.

213. Transferred.

SUBCHAPTER XV - CONVERSION OF NATIONAL BANKS INTO STATE BANKS

214. Definitions.

214a. Procedure for conversion, merger, or consolidation; vote of

stockholders.

(a) Approval of board of directors; publication of

notice of stockholders' meeting; waiver of

publication; notice by registered or certified

mail.

(b) Rights of dissenting stockholders.

214b. Continuation of business and corporate entity.

214c. Conversions in contravention of State law.

SUBCHAPTER XVI - CONSOLIDATION AND MERGER

215. Consolidation of banks within same State.

(a) In general.

(b) Liability of consolidated association; capital

stock; dissenting shareholders.

(c) Valuation of shares.

(d) Appraisal by Comptroller; expenses of

consolidated association; sale and resale of

shares; State appraisal and consolidation law.

(e) Status of consolidated association; property

rights and interests vested and held as

fiduciary.

(f) Removal as fiduciary; discrimination.

(g) Issuance of stock by consolidated association;

preemptive rights.

215a. Merger of national banks or State banks into national banks.

(a) Approval of Comptroller, board and shareholders;

merger agreement; notice; capital stock;

liability of receiving association.

(b) Dissenting shareholders.

(c) Valuation of shares.

(d) Application to shareholders of merging

associations: appraisal by Comptroller;

expenses of receiving association; sale and

resale of shares; State appraisal and merger

law.

(e) Status of receiving association; property rights

and interests vested and held as fiduciary.

(f) Removal as fiduciary; discrimination.

(g) Issuance of stock by receiving association;

preemptive rights.

215a-1. Interstate consolidations and mergers.

(a) In general.

(b) Scope of application.

(c) Definitions.

215a-2. Expedited procedures for certain reorganizations.

(a) In general.

(b) Reorganization plan.

(c) Rights of dissenting shareholders.

(d) Effect of reorganization.

(e) Approval under the Bank Holding Company Act.

215a-3. Mergers and consolidations with subsidiaries and nonbank

affiliates.

(a) In general.

(b) Scope.

(c) Regulations.

215b. Definitions.

215c. Mergers, consolidations, and other acquisitions authorized.

(a) In general.

(b) Expedited approval of acquisitions.

(c) Rule of construction.

(d) ''Acquire'' defined.

SUBCHAPTER XVII - DISPOSITION OF UNCLAIMED PROPERTY RECOVERED FROM

CLOSED NATIONAL BANKS

216. Purpose.

216a. Definitions.

216b. Disposition of unclaimed property.

(a) Limitations for filing claims; publication of

notice in Federal Register; contents of notice;

disclosure of descriptive information;

inspection of specific property.

(b) Delivery of property to claimant upon proof of

entitlement; determination of validity of

claims; recoupment of expenses; liability for

losses; insurance requirements.

(c) Vesting of rights, title and interest in

unclaimed property in United States; sale, use,

destruction or disposition of property;

proceeds of sale as miscellaneous receipts.

(d) Liability for determination of validity of

claims; liability for delivery, sale, etc., of

property.

(e) Court action for determination of ownership,

etc., in State or Federal court of competent

jurisdiction; de novo nature of action;

parties.

(f) Jurisdiction of United States Claims Court of

actions against United States, Comptroller,

officer, etc.; scope of review of actions of

Comptroller; limitations; claims against

Comptroller, officer, etc., as claim against

United States.

216c. Rules and regulations.

216d. Severability.

-SECREF-

NATIONAL BANK ACT REFERRED TO IN OTHER SECTIONS

Sections 21 et seq. of this title are referred to in sections 35,

40, 41, 215c, 501a, 1440, 1467a, 1817, 2254, 3102 of this title;

title 18 section 334; title 28 section 1348.

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12 USC SUBCHAPTER I - ORGANIZATION AND GENERAL PROVISIONS 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER I - ORGANIZATION AND GENERAL PROVISIONS

.

-HEAD-

SUBCHAPTER I - ORGANIZATION AND GENERAL PROVISIONS

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12 USC Sec. 21 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER I - ORGANIZATION AND GENERAL PROVISIONS

-HEAD-

Sec. 21. Formation of national banking associations; incorporators;

articles of association

-STATUTE-

Associations for carrying on the business of banking under title

62 of the Revised Statutes may be formed by any number of natural

persons, not less in any case than five. They shall enter into

articles of association, which shall specify in general terms the

object for which the association is formed, and may contain any

other provisions, not inconsistent with law, which the association

may see fit to adopt for the regulation of its business and the

conduct of its affairs. These articles shall be signed by the

persons uniting to form the association, and a copy of them shall

be forwarded to the Comptroller of the Currency, to be filed and

preserved in his office.

-SOURCE-

(R.S. Sec. 5133.)

-REFTEXT-

REFERENCES IN TEXT

Title 62 of the Revised Statutes, referred to in text, was in the

original ''this Title'' meaning title LXII of the Revised Statutes,

consisting of R.S. Sec. 5133 to 5244, which are classified to

sections 21, 22 to 24a, 25a, 26, 27, 29, 35 to 37, 39, 43, 52, 53,

55 to 57, 59 to 62, 66, 71, 72 to 76, 81, 83 to 86, 90, 91, 93,

93a, 94, 141 to 144, 161, 164, 181, 182, 192 to 194, 196, 215c, 481

to 485, 501, 541, 548, and 582 of this title. See, also, sections

8, 333, 334, 475, 656, 709, 1004, and 1005 of Title 18, Crimes and

Criminal Procedure. For complete classification of R.S. Sec. 5133

to 5244 to the Code, see Tables.

-COD-

CODIFICATION

R.S. Sec. 5133 derived from act June 3, 1864, ch. 106, Sec. 5, 13

Stat. 100, which was the National Bank Act. See section 38 of this

title.

-TRANS-

EXCEPTION AS TO TRANSFER OF FUNCTIONS

Functions vested by any provision of law in Comptroller of the

Currency, referred to in this section, not included in transfer of

functions to Secretary of the Treasury, see note set out under

section 1 of this title.

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12 USC Sec. 21a 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER I - ORGANIZATION AND GENERAL PROVISIONS

-HEAD-

Sec. 21a. Amendment of articles of association

-STATUTE-

Except as otherwise specifically provided by law, or by the

articles of association of the particular national banking

association, the articles of association of a national banking

association may be amended with respect to any lawful matter, and

any action requiring the approval of the stockholders of such

association may be had by the approving vote of the holders of a

majority of the voting shares of the stock of the association

obtained at a meeting of the stockholders called and held pursuant

to notice given by mail at least ten days prior to the meeting or

pursuant to a waiver of such notice given by all stockholders

entitled to receive notice of such meeting. A certified copy of

every amendment to the articles of association adopted by the

shareholders of a national banking association shall be forwarded

to the Comptroller of the Currency, to be filed and preserved in

his office.

-SOURCE-

(Pub. L. 86-230, Sec. 13, Sept. 8, 1959, 73 Stat. 458.)

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12 USC Sec. 22 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER I - ORGANIZATION AND GENERAL PROVISIONS

-HEAD-

Sec. 22. Organization certificate

-STATUTE-

The persons uniting to form such an association shall, under

their hands, make an organization certificate, which shall

specifically state:

First. The name assumed by such association; which name shall

include the word ''national''.

Second. The place where its operations of discount and deposit

are to be carried on, designating the State, Territory, or

District, and the particular county and city, town, or village.

Third. The amount of capital stock and the number of shares into

which the same is to be divided.

Fourth. The names and places of residence of the shareholders and

the number of shares held by each of them.

Fifth. The fact that the certificate is made to enable such

persons to avail themselves of the advantages of title 62 of the

Revised Statutes.

-SOURCE-

(R.S. Sec. 5134; Pub. L. 86-230, Sec. 25, Sept. 8, 1959, 73 Stat.

466; Pub. L. 97-320, title IV, Sec. 405(b), Oct. 15, 1982, 96 Stat.

1512.)

-REFTEXT-

REFERENCES IN TEXT

Title 62 of the Revised Statutes, referred to in par. Fifth, was

in the original ''this Title'' meaning title LXII of the Revised

Statutes, consisting of R.S. Sec. 5133 to 5244, which are

classified to sections 21, 22 to 24a, 25a, 26, 27, 29, 35 to 37,

39, 43, 52, 53, 55 to 57, 59 to 62, 66, 71, 72 to 76, 81, 83 to 86,

90, 91, 93, 93a, 94, 141 to 144, 161, 164, 181, 182, 192 to 194,

196, 215c, 481 to 485, 501, 541, 548, and 582 of this title. See,

also, sections 8, 333, 334, 475, 656, 709, 1004, and 1005 of Title

18, Crimes and Criminal Procedure. For complete classification of

R.S. Sec. 5133 to 5244 to the Code, see Tables.

-COD-

CODIFICATION

R.S. Sec. 5134 derived from act June 3, 1864, ch. 106, Sec. 6, 13

Stat. 101, which was the National Bank Act. See section 38 of this

title.

-MISC3-

AMENDMENTS

1982 - Par. First. Pub. L. 97-320 struck out ''and be subject to

the approval of the Comptroller of the Currency'' after

''national''.

1959 - Par. First. Pub. L. 86-230 substituted ''which named shall

include the word 'national' and be'' for ''which name shall be''.

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12 USC Sec. 23 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER I - ORGANIZATION AND GENERAL PROVISIONS

-HEAD-

Sec. 23. Acknowledgment and filing of certificate

-STATUTE-

The organization certificate shall be acknowledged before a judge

of some court of record, or notary public; and shall be, together

with the acknowledgment thereof, authenticated by the seal of such

court, or notary, transmitted to the Comptroller of the Currency,

who shall record and carefully preserve the same in his office.

-SOURCE-

(R.S. Sec. 5135.)

-COD-

CODIFICATION

R.S. Sec. 5135 derived from act June 3, 1864, ch. 106, Sec. 6, 13

Stat. 101, which was the National Bank Act. See section 38 of this

title.

-TRANS-

EXCEPTION AS TO TRANSFER OF FUNCTIONS

Functions vested by any provision of law in Comptroller of the

Currency, referred to in this section, not included in transfer of

functions to Secretary of the Treasury, see note set out under

section 1 of this title.

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12 USC Sec. 24 01/06/03

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TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER I - ORGANIZATION AND GENERAL PROVISIONS

-HEAD-

Sec. 24. Corporate powers of associations

-STATUTE-

Upon duly making and filing articles of association and an

organization certificate a national banking association shall

become, as from the date of the execution of its organization

certificate, a body corporate, and as such, and in the name

designated in the organization certificate, it shall have power -

First. To adopt and use a corporate seal.

Second. To have succession from February 25, 1927, or from the

date of its organization if organized after February 25, 1927,

until such time as it be dissolved by the act of its shareholders

owning two-thirds of its stock, or until its franchise becomes

forfeited by reason of violation of law, or until terminated by

either a general or a special Act of Congress or until its affairs

be placed in the hands of a receiver and finally wound up by him.

Third. To make contracts.

Fourth. To sue and be sued, complain and defend, in any court of

law and equity, as fully as natural persons.

Fifth. To elect or appoint directors, and by its board of

directors to appoint a president, vice president, cashier, and

other officers, define their duties, require bonds of them and fix

the penalty thereof, dismiss such officers or any of them at

pleasure, and appoint others to fill their places.

Sixth. To prescribe, by its board of directors, bylaws not

inconsistent with law, regulating the manner in which its stock

shall be transferred, its directors elected or appointed, its

officers appointed, its property transferred, its general business

conducted, and the privileges granted to it by law exercised and

enjoyed.

Seventh. To exercise by its board of directors or duly authorized

officers or agents, subject to law, all such incidental powers as

shall be necessary to carry on the business of banking; by

discounting and negotiating promissory notes, drafts, bills of

exchange, and other evidences of debt; by receiving deposits; by

buying and selling exchange, coin, and bullion; by loaning money on

personal security; and by obtaining, issuing, and circulating notes

according to the provisions of title 62 of the Revised Statutes.

The business of dealing in securities and stock by the association

shall be limited to purchasing and selling such securities and

stock without recourse, solely upon the order, and for the account

of, customers, and in no case for its own account, and the

association shall not underwrite any issue of securities or stock;

Provided, That the association may purchase for its own account

investment securities under such limitations and restrictions as

the Comptroller of the Currency may by regulation prescribe. In no

event shall the total amount of the investment securities of any

one obligor or maker, held by the association for its own account,

exceed at any time 10 per centum of its capital stock actually paid

in and unimpaired and 10 per centum of its unimpaired surplus fund,

except that this limitation shall not require any association to

dispose of any securities lawfully held by it on August 23, 1935.

As used in this section the term ''investment securities'' shall

mean marketable obligations, evidencing indebtedness of any person,

copartnership, association, or corporation in the form of bonds,

notes and/or debentures commonly known as investment securities

under such further definition of the term ''investment securities''

as may by regulation be prescribed by the Comptroller of the

Currency. Except as hereinafter provided or otherwise permitted by

law, nothing herein contained shall authorize the purchase by the

association for its own account of any shares of stock of any

corporation. The limitations and restrictions herein contained as

to dealing in, underwriting and purchasing for its own account,

investment securities shall not apply to obligations of the United

States, or general obligations of any State or of any political

subdivision thereof, or obligations of the Washington Metropolitan

Area Transit Authority which are guaranteed by the Secretary of

Transportation under section 9 of the National Capital

Transportation Act of 1969, or obligations issued under authority

of the Federal Farm Loan Act, as amended, or issued by the thirteen

banks for cooperatives or any of them or the Federal Home Loan

Banks, or obligations which are insured by the Secretary of Housing

and Urban Development under title XI of the National Housing Act

(12 U.S.C. 1749aaa et seq.) or obligations which are insured by the

Secretary of Housing and Urban Development (hereinafter in this

sentence referred to as the ''Secretary'') pursuant to section 207

of the National Housing Act (12 U.S.C. 1713), if the debentures to

be issued in payment of such insured obligations are guaranteed as

to principal and interest by the United States, or obligations,

participations, or other instruments of or issued by the Federal

National Mortgage Association, or the Government National Mortgage

Association, or mortgages, obligations or other securities which

are or ever have been sold by the Federal Home Loan Mortgage

Corporation pursuant to section 305 or section 306 of the Federal

Home Loan Mortgage Corporation Act (12 U.S.C. 1454 or 1455), or

obligations of the Federal Financing Bank or obligations of the

Environmental Financing Authority, or obligations or other

instruments or securities of the Student Loan Marketing

Association, or such obligations of any local public agency (as

defined in section 110(h) of the Housing Act of 1949 (42 U.S.C.

1460(h))) as are secured by an agreement between the local public

agency and the Secretary in which the local public agency agrees to

borrow from said Secretary, and said Secretary agrees to lend to

said local public agency, monies in an aggregate amount which

(together with any other monies irrevocably committed to the

payment of interest on such obligations) will suffice to pay, when

due, the interest on and all installments (including the final

installment) of the principal of such obligations, which monies

under the terms of said agreement are required to be used for such

payments, or such obligations of a public housing agency (as

defined in the United States Housing Act of 1937, as amended (42

U.S.C. 1437 et seq.)) as are secured (1) by an agreement between

the public housing agency and the Secretary in which the public

housing agency agrees to borrow from the Secretary, and the

Secretary agrees to lend to the public housing agency, prior to the

maturity of such obligations, monies in an amount which (together

with any other monies irrevocably committed to the payment of

interest on such obligations) will suffice to pay the principal of

such obligations with interest to maturity thereon, which monies

under the terms of said agreement are required to be used for the

purpose of paying the principal of and the interest on such

obligations at their maturity, (2) by a pledge of annual

contributions under an annual contributions contract between such

public housing agency and the Secretary if such contract shall

contain the covenant by the Secretary which is authorized by

subsection (g) of section 6 of the United States Housing Act of

1937, as amended (42 U.S.C. 1437d(g)), and if the maximum sum and

the maximum period specified in such contract pursuant to said

subsection 6(g) (42 U.S.C. 1437d(g)) shall not be less than the

annual amount and the period for payment which are requisite to

provide for the payment when due of all installments of principal

and interest on such obligations, or (3) by a pledge of both annual

contributions under an annual contributions contract containing the

covenant by the Secretary which is authorized by section 6(g) of

the United States Housing Act of 1937 (42 U.S.C. 1437d(g)), and a

loan under an agreement between the local public housing agency and

the Secretary in which the public housing agency agrees to borrow

from the Secretary, and the Secretary agrees to lend to the public

housing agency, prior to the maturity of the obligations involved,

moneys in an amount which (together with any other moneys

irrevocably committed under the annual contributions contract to

the payment of principal and interest on such obligations) will

suffice to provide for the payment when due of all installments of

principal and interest on such obligations, which moneys under the

terms of the agreement are required to be used for the purpose of

paying the principal and interest on such obligations at their

maturity: Provided, That in carrying on the business commonly

known as the safe-deposit business the association shall not invest

in the capital stock of a corporation organized under the law of

any State to conduct a safe-deposit business in an amount in excess

of 15 per centum of the capital stock of the association actually

paid in and unimpaired and 15 per centum of its unimpaired

surplus. The limitations and restrictions herein contained as to

dealing in and underwriting investment securities shall not apply

to obligations issued by the International Bank for Reconstruction

and Development, the European Bank for Reconstruction and

Development, the Inter-American Development Bank (FOOTNOTE 1) Bank

for Economic Cooperation and Development in the Middle East and

North Africa,, (FOOTNOTE 2) the North American Development Bank,

the Asian Development Bank, the African Development Bank, the

Inter-American Investment Corporation, or the International Finance

Corporation,, (FOOTNOTE 2) or obligations issued by any State or

political subdivision or any agency of a State or political

subdivision for housing, university, or dormitory purposes, which

are at the time eligible for purchase by a national bank for its

own account, nor to bonds, notes and other obligations issued by

the Tennessee Valley Authority or by the United States Postal

Service: Provided, That no association shall hold obligations

issued by any of said organizations as a result of underwriting,

dealing, or purchasing for its own account (and for this purpose

obligations as to which it is under commitment shall be deemed to

be held by it) in a total amount exceeding at any one time 10 per

centum of its capital stock actually paid in and unimpaired and 10

per centum of its unimpaired surplus fund. Notwithstanding any

other provision in this paragraph, the association may purchase for

its own account shares of stock issued by a corporation authorized

to be created pursuant to title IX of the Housing and Urban

Development Act of 1968 (42 U.S.C. 3931 et seq.), and may make

investments in a partnership, limited partnership, or joint venture

formed pursuant to section 907(a) or 907(c) of that Act (42 U.S.C.

3937(a) or 3937(c)). Notwithstanding any other provision of this

paragraph, the association may purchase for its own account shares

of stock issued by any State housing corporation incorporated in

the State in which the association is located and may make

investments in loans and commitments for loans to any such

corporation: Provided, That in no event shall the total amount of

such stock held for its own account and such investments in loans

and commitments made by the association exceed at any time 5 per

centum of its capital stock actually paid in and unimpaired plus 5

per centum of its unimpaired surplus fund. Notwithstanding any

other provision in this paragraph, the association may purchase for

its own account shares of stock issued by a corporation organized

solely for the purpose of making loans to farmers and ranchers for

agricultural purposes, including the breeding, raising, fattening,

or marketing of livestock. However, unless the association owns at

least 80 per centum of the stock of such agricultural credit

corporation the amount invested by the association at any one time

in the stock of such corporation shall not exceed 20 per centum of

the unimpaired capital and surplus of the association: Provided

further, That notwithstanding any other provision of this

paragraph, the association may purchase for its own account shares

of stock of a bank insured by the Federal Deposit Insurance

Corporation or a holding company which owns or controls such an

insured bank if the stock of such bank or company is owned

exclusively (except to the extent directors' qualifying shares are

required by law) by depository institutions or depository

institution holding companies (as defined in section 1813 of this

title) and such bank or company and all subsidiaries thereof are

engaged exclusively in providing services to or for other

depository institutions, their holding companies, and the officers,

directors, and employees of such institutions and companies, and in

providing correspondent banking services at the request of other

depository institutions or their holding companies (also referred

to as a ''banker's bank''), but in no event shall the total amount

of such stock held by the association in any bank or holding

company exceed at any time 10 per centum of the association's

capital stock and paid in and unimpaired surplus and in no event

shall the purchase of such stock result in an association's

acquiring more than 5 per centum of any class of voting securities

of such bank or company. The limitations and restrictions

contained in this paragraph as to an association purchasing for its

own account investment securities shall not apply to securities

that (A) are offered and sold pursuant to section 4(5) of the

Securities Act of 1933 (15 U.S.C. 77d(5)); (B) are small business

related securities (as defined in section 3(a)(53) of the

Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(53))); or (C) are

mortgage related securities (as that term is defined in section

3(a)(41) of the Securities Exchange Act of 1934 (15 U.S.C.

78c(a)(41)). (FOOTNOTE 3) The exception provided for the securities

described in subparagraphs (A), (B), and (C) shall be subject to

such regulations as the Comptroller of the Currency may prescribe,

including regulations prescribing minimum size of the issue (at the

time of initial distribution) or minimum aggregate sales prices, or

both.

(FOOTNOTE 1) So in original. Probably should be followed by a

comma.

(FOOTNOTE 2) So in original.

(FOOTNOTE 3) So in original. The period probably should be

preceded by an additional closing parenthesis.

A national banking association may deal in, underwrite, and

purchase for such association's own account qualified Canadian

government obligations to the same extent that such association may

deal in, underwrite, and purchase for such association's own

account obligations of the United States or general obligations of

any State or of any political subdivision thereof. For purposes of

this paragraph -

(1) the term ''qualified Canadian government obligations''

means any debt obligation which is backed by Canada, any Province

of Canada, or any political subdivision of any such Province to a

degree which is comparable to the liability of the United States,

any State, or any political subdivision thereof for any

obligation which is backed by the full faith and credit of the

United States, such State, or such political subdivision, and

such term includes any debt obligation of any agent of Canada or

any such Province or any political subdivision of such Province

if -

(A) the obligation of the agent is assumed in such agent's

capacity as agent for Canada or such Province or such political

subdivision; and

(B) Canada, such Province, or such political subdivision on

whose behalf such agent is acting with respect to such

obligation is ultimately and unconditionally liable for such

obligation; and

(2) the term ''Province of Canada'' means a Province of Canada

and includes the Yukon Territory and the Northwest Territories

and their successors.

In addition to the provisions in this paragraph for dealing in,

underwriting, or purchasing securities, the limitations and

restrictions contained in this paragraph as to dealing in,

underwriting, and purchasing investment securities for the national

bank's own account shall not apply to obligations (including

limited obligation bonds, revenue bonds, and obligations that

satisfy the requirements of section 142(b)(1) of title 26) issued

by or on behalf of any State or political subdivision of a State,

including any municipal corporate instrumentality of 1 or more

States, or any public agency or authority of any State or political

subdivision of a State, if the national bank is well capitalized

(as defined in section 1831o of this title).

Eighth. To contribute to community funds, or to charitable,

philanthropic, or benevolent instrumentalities conducive to public

welfare, such sums as its board of directors may deem expedient and

in the interests of the association, if it is located in a State

the laws of which do not expressly prohibit State banking

institutions from contributing to such funds or instrumentalities.

Ninth. To issue and sell securities which are guaranteed pursuant

to section 1721(g) of this title.

Tenth. To invest in tangible personal property, including,

without limitation, vehicles, manufactured homes, machinery,

equipment, or furniture, for lease financing transactions on a net

lease basis, but such investment may not exceed 10 percent of the

assets of the association.

Eleventh. To make investments designed primarily to promote the

public welfare, including the welfare of low- and moderate-income

communities or families (such as by providing housing, services, or

jobs). A national banking association may make such investments

directly or by purchasing interests in an entity primarily engaged

in making such investments. An association shall not make any such

investment if the investment would expose the association to

unlimited liability. The Comptroller of the Currency shall limit

an association's investments in any 1 project and an association's

aggregate investments under this paragraph. An association's

aggregate investments under this paragraph shall not exceed an

amount equal to the sum of 5 percent of the association's capital

stock actually paid in and unimpaired and 5 percent of the

association's unimpaired surplus fund, unless the Comptroller

determines by order that the higher amount will pose no significant

risk to the affected deposit insurance fund, and the association is

adequately capitalized. In no case shall an association's

aggregate investments under this paragraph exceed an amount equal

to the sum of 10 percent of the association's capital stock

actually paid in and unimpaired and 10 percent of the association's

unimpaired surplus fund.

-SOURCE-

(R.S. Sec. 5136; July 1, 1922, ch. 257, Sec. 1, 42 Stat. 767; Feb.

25, 1927, ch. 191, Sec. 2, 44 Stat. 1226; June 16, 1933, ch. 89,

Sec. 16, 48 Stat. 184; Aug. 23, 1935, ch. 614, title III, Sec. 308,

49 Stat. 709; Feb. 3, 1938, ch. 13, Sec. 13, 52 Stat. 26; June 11,

1940, ch. 301, 54 Stat. 261; June 29, 1949, ch. 276, Sec. 1, 63

Stat. 298; July 15, 1949, ch. 338, title VI, Sec. 602(a), 63 Stat.

439; Apr. 9, 1952, ch. 169, 66 Stat. 49; Aug. 2, 1954, ch. 649,

title II, Sec. 203, 68 Stat. 622; Aug. 23, 1954, ch. 834, Sec. 2,

68 Stat. 771; July 26, 1956, ch. 741, title II, Sec. 201(c), 70

Stat. 667; Pub. L. 86-137, Sec. 2, Aug. 6, 1959, 73 Stat. 285; Pub.

L. 86-147, Sec. 10, Aug. 7, 1959, 73 Stat. 301; Pub. L. 86-230,

Sec. 1(a), Sept. 8, 1959, 73 Stat. 457; Pub. L. 86-278, Sept. 16,

1959, 73 Stat. 563; Pub. L. 86-372, title IV, Sec. 420, Sept. 23,

1959, 73 Stat. 679; Pub. L. 88-560, title VII, Sec. 701(c), Sept.

2, 1964, 78 Stat. 800; Pub. L. 89-369, Sec. 10, Mar. 16, 1966, 80

Stat. 72; Pub. L. 89-754, title V, Sec. 504(a)(1), Nov. 3, 1966, 80

Stat. 1277; Pub. L. 90-19, Sec. 27(a), May 25, 1967, 81 Stat. 28;

Pub. L. 90-448, title VIII, Sec. 804(c), 807(j), title IX, Sec.

911, title XVII, Sec. 1705(h), Aug. 1, 1968, 82 Stat. 543, 545,

550, 605; Pub. L. 91-375, Sec. 6(d), Aug. 12, 1970, 84 Stat. 776;

Pub. L. 92-318, title I, Sec. 133(c)(1), June 23, 1972, 86 Stat.

269; Pub. L. 91-143, Sec. 12(b), Dec. 9, 1969, as added Pub. L.

92-349, title I, Sec. 101, July 13, 1972, 86 Stat. 466; Pub. L.

92-500, Sec. 12(n), Oct. 18, 1972, 86 Stat. 902; Pub. L. 93-100,

Sec. 5(c), Aug. 16, 1973, 87 Stat. 344; Pub. L. 93-224, Sec. 14,

Dec. 29, 1973, 87 Stat. 941; Pub. L. 93-234, title II, Sec. 207,

Dec. 31, 1973, 87 Stat. 984; Pub. L. 93-383, title II, Sec. 206,

title VIII, Sec. 805(c)(1), Aug. 22, 1974, 88 Stat. 668, 726; Pub.

L. 96-221, title VII, Sec. 711, Mar. 31, 1980, 94 Stat. 189; Pub.

L. 97-35, title XIII, Sec. 1342(a), Aug. 13, 1981, 95 Stat. 743;

Pub. L. 97-320, title IV, Sec. 404(b), Oct. 15, 1982, 96 Stat.

1511; Pub. L. 97-457, Sec. 18, Jan. 12, 1983, 96 Stat. 2509; Pub.

L. 98-440, title I, Sec. 105(c), Oct. 3, 1984, 98 Stat. 1691; Pub.

L. 98-473, title I, Sec. 101(1) (title I, Sec. 101), Oct. 12, 1984,

98 Stat. 1884, 1885; Pub. L. 100-86, title I, Sec. 108, Aug. 10,

1987, 101 Stat. 579; Pub. L. 100-449, title III, Sec. 308, Sept.

28, 1988, 102 Stat. 1877; Pub. L. 101-513, title V, Sec.

562(c)(10)(B), (e)(1)(B), Nov. 5, 1990, 104 Stat. 2036, 2037; Pub.

L. 102-485, Sec. 6(a), Oct. 23, 1992, 106 Stat. 2774; Pub. L.

103-182, title V, Sec. 541(h)(1), Dec. 8, 1993, 107 Stat. 2167;

Pub. L. 103-325, title II, Sec. 206(c), title III, Sec. 322(a)(1),

347(b), Sept. 23, 1994, 108 Stat. 2199, 2226, 2241; Pub. L.

104-208, div. A, title I, Sec. 101(c) (title VII, Sec. 710(b)),

title II, Sec. 2704(d)(7), Sept. 30, 1996, 110 Stat. 3009-121,

3009-181, 3009-489; Pub. L. 106-102, title I, Sec. 151, Nov. 12,

1999, 113 Stat. 1384.)

-REFTEXT-

REFERENCES IN TEXT

Title 62 of the Revised Statutes, referred to in par. Seventh,

was in the original ''this Title'' meaning title LXII of the

Revised Statutes, consisting of R.S. Sec. 5133 to 5244, which are

classified to sections 21, 22 to 24a, 25a, 26, 27, 29, 35 to 37,

39, 43, 52, 53, 55 to 57, 59 to 62, 66, 71, 72 to 76, 81, 83 to 86,

90, 91, 93, 93a, 94, 141 to 144, 161, 164, 181, 182, 192 to 194,

196, 215c, 481 to 485, 501, 541, 548, and 582 of this title. See,

also, sections 8, 333, 334, 475, 656, 709, 1004, and 1005 of Title

18, Crimes and Criminal Procedure. For complete classification of

R.S. Sec. 5133 to 5244 to the Code, see Tables.

Section 9 of the National Capital Transportation Act of 1969,

referred to in par. Seventh, is section 9 of Pub. L. 91-143, as

added by section 101 of title I of Pub. L. 92-349, July 13, 1972,

86 Stat. 464, which is not classified to the Code.

The Federal Farm Loan Act, referred to in par. Seventh, is act

July 17, 1916, ch. 245, 39 Stat. 360, which was classified to

section 641 et seq. of this title prior to its repeal by Pub. L.

92-181, Sec. 5.26(a), Dec. 10, 1971, 85 Stat. 624. See chapter 23

(Sec. 2001 et seq.) of this title.

The National Housing Act, referred to in par. Seventh, is act

June 27, 1934, ch. 847, 48 Stat. 1246, as amended. Title XI of the

National Housing Act is title XI of act June 27, 1934, ch. 847, as

added by act Nov. 3, 1966, Pub. L. 89-754, title V, Sec. 502(a), 80

Stat. 1274, which is classified generally to subchapter IX-B (Sec.

1749aaa et seq.) of chapter 13 of this title. For complete

classification of this Act to the Code, see section 1701 of this

title and Tables.

Section 110 of the Housing Act of 1949 (42 U.S.C. 1460), referred

to in par. Seventh, was omitted from the Code pursuant to section

5316 of Title 42, The Public Health and Welfare, which terminated

authority to make grants or loans under title I of that Act (42

U.S.C. 1450 et seq.) after Jan. 1, 1975.

The United States Housing Act of 1937, referred to in par.

Seventh, is act Sept. 1, 1937, ch. 896, as revised generally by

Pub. L. 93-383, title II, Aug. 22, 1974, 88 Stat. 653, and is

classified to chapter 8 (Sec. 1437 et seq.) of Title 42. For

complete classification of this Act to the Code, see Short Title

note set out under section 1437 of Title 42 and Tables.

The Housing and Urban Development Act of 1968, referred to in

par. Seventh, is Pub. L. 90-448, Aug. 1, 1968, 82 Stat. 476, as

amended. Title IX of the Housing and Urban Development Act is

classified principally to chapter 49 (Sec. 3931 et seq.) of Title

42. For complete classification of this Act to the Code, see Short

Title of 1968 Amendment note set out under section 1701 of this

title and Tables.

-COD-

CODIFICATION

Amendment by Pub. L. 98-473 is based on section 211(a) of title

II of S. 2416, as introduced in the Senate on Mar. 13, 1984, which

was enacted into permanent law by section 101(1) of Pub. L. 98-473.

R.S. Sec. 5136 derived from act June 3, 1864, ch. 106, Sec. 8, 13

Stat. 101, which was the National Bank Act. See section 38 of this

title.

-MISC3-

AMENDMENTS

1999 - Par. Seventh. Pub. L. 106-102 inserted at end ''In

addition to the provisions in this paragraph for dealing in,

underwriting, or purchasing securities, the limitations and

restrictions contained in this paragraph as to dealing in,

underwriting, and purchasing investment securities for the national

bank's own account shall not apply to obligations (including

limited obligation bonds, revenue bonds, and obligations that

satisfy the requirements of section 142(b)(1) of title 26) issued

by or on behalf of any State or political subdivision of a State,

including any municipal corporate instrumentality of 1 or more

States, or any public agency or authority of any State or political

subdivision of a State, if the national bank is well capitalized

(as defined in section 1831o of this title).''

1996 - Par. Seventh. Pub. L. 104-208, Sec. 101(c) (Sec. 710(b)),

in seventh sentence, inserted ''Bank for Economic Cooperation and

Development in the Middle East and North Africa,'' after ''the

Inter-American Development Bank''.

Par. Eleventh. Pub. L. 104 - 208, Sec. 2704(d)(7), which directed

the amendment of the fifth sentence by substituting ''Deposit

Insurance Fund'' for ''affected deposit insurance fund'', was not

executed. See Effective Date of 1996 Amendment note below.

1994 - Par. Seventh. Pub. L. 103-325, Sec. 347(b), in last

sentence of first par., substituted ''(15 U.S.C. 78c(a)(41)). The

exception provided for the securities described in subparagraphs

(A), (B), and (C) shall be subject to such regulations'' for ''(15

U.S.C. 78c(a)(41))), subject to such regulations''.

Pub. L. 103-325, Sec. 322(a)(1)(A), in fifth proviso inserted

''or depository institution holding companies (as defined in

section 1813 of this title)'' after ''(except to the extent

directors' qualifying shares are required by law) by depository

institutions''.

Pub. L. 103-325, Sec. 322(a)(1)(B), which directed substitution

in fifth proviso of ''services to or for other depository

institutions, their holding companies, and the officers, directors,

and employees of such institutions and companies, and in providing

correspondent banking services at the request of other depository

institutions or their holding companies (also referred to as a

'banker's bank')'' for ''services for other depository institutions

and their officers, directors and employees'', was executed by

making the substitution for ''services for other depository

institutions and their officers, directors, and employees'' to

reflect the probable intent of Congress.

Pub. L. 103-325, Sec. 206(c), substituted ''(B) are small

business related securities (as defined in section 3(a)(53) of the

Securities Exchange Act of 1934); or (C) are mortgage related

securities'' for ''or (B) are mortgage related securities''.

1993 - Par. Seventh. Pub. L. 103-182 inserted ''the North

American Development Bank,'' after ''Inter-American Development

Bank,''.

1992 - Par. Eleventh. Pub. L. 102-485 added par. Eleventh.

1990 - Par. Seventh. Pub. L. 101-513 inserted ''the European Bank

for Reconstruction and Development,'' before ''the Inter-American

Development Bank,'' and substituted ''the African Development Bank,

the Inter-American Investment Corporation, or the International

Finance Corporation,'' for ''the African Development Bank or the

Inter-American Investment Corporation,''.

1988 - Par. Seventh. Pub. L. 100-449 inserted provisions

authorizing national banking associations to deal in, underwrite,

and purchase Canadian government obligations for the association's

own account.

1987 - Par. Tenth. Pub. L. 100-86 added par. Tenth.

1984 - Par. Seventh. Pub. L. 98-473 inserted reference to the

Inter-American Investment Corporation.

Pub. L. 98-440 inserted provision that the limitations and

restrictions contained in this paragraph as to an association

purchasing investment securities for its own account shall not

apply to securities offered and sold pursuant to section 15 U.S.C.

77d(5), or that are mortgage related securities (as defined in 15

U.S.C. 78c(a)(41)), subject to such regulations as the Comptroller

of the Currency may prescribe.

1983 - Par. Seventh. Pub. L. 97-457 substituted ''10 per centum

of the association's'' for ''10 per centum of its'' after ''exceed

at any time''.

1982 - Par. Seventh. Pub. L. 97-320 substituted ''Provided

further, That notwithstanding any other provision of this

paragraph, the association may purchase for its own account shares

of stock of a bank insured by the Federal Deposit Insurance

Corporation or a holding company which owns or controls such an

insured bank if the stock of such bank or company is owned

exclusively (except to the extent directors' qualifying shares are

required by law) by depository institutions and such bank or

company and all subsidiaries thereof are engaged exclusively in

providing services for other depository institutions and their

officers, directors, and employees, but in no event shall the total

amount of such stock held by the association in any bank or holding

company exceed at any time 10 per centum of its capital stock and

paid in and unimpaired surplus and in no event shall the purchase

of such stock result in an association's acquiring more than 5 per

centum of any class of voting securities of such bank or company''

for ''Provided further, That, notwithstanding any other provision

of this paragraph, the association may purchase for its own account

shares of stock of a bank insured by the Federal Deposit Insurance

Corporation if the stock of such bank is owned exclusively by other

banks (except to the extent State law requires directors qualifying

shares) and if such bank is engaged exclusively in providing

banking services for other banks and their officers, directors, or

employees, but in no event shall the total amount of such stock

held by the association exceed at any time 10 per centum of its

capital stock and paid in and unimpaired surplus, and in no event

shall the purchase of such stock result in the association's

acquiring more than 5 per centum of any class of voting securities

of such bank''.

1981 - Par. Seventh. Pub. L. 97-35 inserted reference to the

African Development Bank.

1980 - Par. Seventh. Pub. L. 96-221 inserted proviso relating to

purchase of stock in bankers' banks.

1974 - Par. Seventh. Pub. L. 93-383 substituted ''section 6(g) of

the United States Housing Act of 1937'' for references to section

1421a(b) of title 42 wherever appearing, struck out ''either''

before ''(1)'', ''(which obligations shall have a maturity of not

more than eighteen months)'' in cl. (1) and ''or'' before ''(2)'',

added cl. (3), and inserted reference to mortgages, obligations, or

other securities sold by the Federal Home Loan Mortgage Corporation

pursuant to section 1454 or 1455 of this title.

1973 - Par. Seventh. Pub. L. 93-234 authorized investments by

national banks in agricultural credit corporations.

Pub. L. 93-224 inserted ''or obligations of the Federal Financing

Bank'' after ''or obligations, participations, or other instruments

of or issued by the Federal National Mortgage Association or the

Government National Mortgage Association''.

Pub. L. 93-100 inserted provision that the association may

purchase shares of stock issued by state housing corporations

incorporated in the state in which the association is located and

make investments in loans and commitments for loans to such

corporations with certain limitations.

1972 - Par. Seventh. Pub. L. 92-500 inserted ''or obligations of

the Environmental Financing Authority'' after ''Government National

Mortgage Association''.

Pub. L. 92-349 inserted provisions that limitations and

restrictions contained in this section as to dealing in and

underwriting investment securities shall not apply to obligations

of the Washington Metropolitan Area Transit Authority which are

guaranteed by the Secretary of Transportation under section 9 of

the National Capital Transportation Act of 1969.

Pub. L. 92-318 included obligations or other instruments or

securities of the Student Loan Marketing Association.

1970 - Par. Seventh. Pub. L. 91-375 made limitations and

restrictions contained in this section as to dealing in and

underwriting investment securities inapplicable to bonds, notes and

other obligations issued by the United States Postal Service.

1968 - Par. Seventh. Pub. L. 90-448, Sec. 807(j), inserted ''or

the Government National Mortgage Association'' after ''Federal

National Mortgage Association''.

Pub. L. 90-448, Sec. 911, authorized the association to purchase

for its own account shares of stock issued by a corporation

authorized to be created pursuant to sections 3931-3940 of title

42, and to make investments in a partnership, limited partnership,

or joint venture formed pursuant to section 3937(a) or 3937(c) of

title 42.

Pub. L. 90-448, Sec. 1705(h), included obligations issued by any

State or political subdivision or any agency of a State or

political subdivision for housing, university, or dormitory

purposes.

Par. Ninth. Pub. L. 90-448, Sec. 804(c), added par. Ninth.

1967 - Par. Seventh. Pub. L. 90-19 substituted ''Secretary of

Housing and Urban Development (hereafter in this sentence referred

to as the 'Secretary')'' for ''Federal Housing Administrator''; and

''Secretary'' for ''Housing and Home Finance Administrator'' after

''local public agency and the'', for ''Administrator'' in two

instances just before ''agrees to lend'', and for ''Public Housing

Administration'' wherever appearing in cls. (1) and (2),

respectively.

1966 - Par. Seventh. Pub. L. 89-754 made limitations and

restrictions for dealing, underwriting, and purchasing for its own

account of investment securities inapplicable to obligations which

are insured by Secretary of Housing and Urban Development under

provisions relating to mortgage insurance for group practice

facilities.

Pub. L. 89-369 inserted provisions that limitations and

restrictions contained in this section as to dealing in and

underwriting investment securities shall not apply to obligations

issued by the Asian Development Bank.

1964 - Par. Seventh. Pub. L. 88-560 substituted ''or obligations,

participations, or other instruments of or issued by the Federal

National Mortgage Association'' for ''or obligations of the Federal

National Mortgage Association''.

1959 - Par. Seventh. Pub. L. 86-372 substituted ''monies in an

aggregate amount which (together with any other monies irrevocably

committed to the payment of interest on such obligations) will

suffice to pay, when due, the interest on and all installments

(including the final installment) of the principal of such

obligations, which monies under the terms of said agreement are

required to be used for such payments'' for ''prior to the maturity

of such obligations (which obligations shall have a maturity of not

more than eighteen months), monies in an amount which (together

with any other monies irrevocably committed to the payment of

interest on such obligations) will suffice to pay the principal of

such obligations with interest to maturity thereon, which monies

under the terms of said agreement are required to be used for the

purpose of paying the principal of and the interest on such

obligations at their maturity'' after ''local public agency,''.

Pub. L. 86-278 substituted ''any'' for ''either'' before ''of

said organizations'' in last sentence.

Pub. L. 86-230 struck out ''or the Home Owners' Loan

Corporation'' after ''Federal Home Loan Banks''.

Pub. L. 86-147 inserted provisions that limitations and

restrictions contained in this section as to dealing in and

underwriting investment securities shall not apply to obligations

issued by the Inter-American Development Bank.

Pub. L. 86-137 inserted provisions that limitations and

restrictions contained in this section as to dealing in and

underwriting investment securities shall not apply to bonds, notes

and other obligations issued by the Tennessee Valley Authority.

1959 - Par. Seventh. Pub. L. 86-372 substituted ''monies in an

aggregate amount which (together with any other monies irrevocably

committed to the payment of interest on such obligations) will

suffice to pay, when due, the interest on and all installments

(including the final installment) of the principal of such

obligations, which monies under the terms of said agreement are

required to be used for such payments'' for ''prior to the maturity

of such obligations (which obligations shall have a maturity of not

more than eighteen months), monies in an amount which (together

with any other monies irrevocably committed to the payment of

interest on such obligations) will suffice to pay the principal of

such obligations with interest to maturity thereon, which monies

under the terms of said agreement are required to be used for the

purpose of paying the principal of and the interest on such

obligations at their maturity'' following ''local public agency,''.

Pub. L. 86-278 substituted ''any'' for ''either'' before ''of

said organizations'' in last sentence.

Pub. L. 86-230 struck out ''or the Home Owners' Loan

Corporation'' after ''Federal Home Loan Banks''.

Pub. L. 86-147 inserted provisions that limitations and

restrictions contained in this section as to dealing in and

underwriting investment securities shall not apply to obligations

issued by the Inter-American Development Bank.

Pub. L. 86-137 inserted provisions that limitations and

restrictions contained in this section as to dealing in and

underwriting investment securities shall not apply to bonds, notes

and other obligations issued by the Tennessee Valley Authority.

1956 - Par. Seventh. Act July 26, 1956, removed restriction which

prohibited a national bank from investing in obligations of the

thirteen banks for cooperatives an amount exceeding 10 percent of

its capital stock actually paid in and unimpaired and 10 percent of

its unimpaired surplus.

1954 - Par. Seventh. Act Aug. 23, 1954, substituted ''thirteen

banks for cooperatives organized under the Farm Credit Act of 1933,

or any of them'' for ''Central Bank for Cooperatives'' in last

sentence.

Act Aug. 2, 1954, substituted ''or obligations of the Federal

National Mortgage Association'' for ''or obligations of national

mortgage associations'' in sixth sentence.

1952 - Par. Seventh. Act Apr. 9, 1952, enabled national banks and

State member banks of the Federal Reserve System to receive

compensation in the distribution of debentures issued by the

Central Bank for Cooperation.

1949 - Par. Seventh. Act July 15, 1949, inserted, in next to last

sentence, ''or such obligations of any local public agency (as

defined in section 110(h) of the Housing Act of 1949) as are

secured by an agreement between the local public agency and the

Housing and Home Finance Administrator in which the local public

agency agrees to borrow from said Administrator, and said

Administrator agrees to lend to said local public agency, prior to

the maturity of such obligations (which obligations shall have a

maturity of not more than eighteen months), monies in an amount

which (together with any other monies irrevocably committed to the

payment of interest on such obligations) will suffice to pay the

principal of such obligations with interest to maturity thereon,

which monies under the terms of said agreement are required to be

used for the purpose of paying the principal of and the interest on

such obligations at their maturity, or such obligations of a public

housing agency (as defined in the United States Housing Act of

1937, as amended) as are secured either (1) by an agreement between

the public housing agency and the Public Housing Administration in

which the public housing agency agrees to borrow from the Public

Housing Administration, and the Public Housing Administration

agrees to lend to the public housing agency, prior to the maturity

of such obligations (which obligations shall have a maturity of not

more than eighteen months), monies in an amount which (together

with any other monies irrevocably committed to the payment of

interest on such obligations) will suffice to pay the principal of

such obligations with interest to maturity thereon, which monies

under the terms of said agreement are required to be used for the

purpose of paying the principal of and the interest on such

obligations at their maturity, or (2) by a pledge of annual

contributions under an annual contributions contract between such

public housing agency and the Public Housing Administration if such

contract shall contain the covenant by the Public Housing

Administration which is authorized by subsection (b) of section 22

of the United States Housing Act of 1937, as amended, and if the

maximum sum and the maximum period specified in such contract

pursuant to said subsection 22(b) shall not be less than the annual

amount and the period for payment, which are requisite to provide

for the payment when due of all installments of principal and

interest on such obligations''.

Act June 29, 1949, inserted last sentence to permit national

banks and State member banks of the Federal Reserve System to deal

in and underwrite obligations issued by the International Bank

subject to certain limitations.

1940 - Par. Eighth. Act June 11, 1940, added par. Eighth.

1938 - Par. Seventh. Act Feb. 3, 1938, inserted ''or obligations

of national mortgage associations'' in last sentence.

1935 - Par. Seventh. Act Aug. 23, 1935, amended second, fourth,

and last sentences.

1933 - Act June 16, 1933, among other changes, struck out closing

paragraph prohibiting transaction of any business by association

prior to authorization by Comptroller, except that necessarily

preliminary to organization.

1927 - Act Feb. 25, 1927, struck out definite period of

succession in par. Second, and inserted provisos in par. Seventh.

EFFECTIVE DATE OF 1999 AMENDMENT

Pub. L. 106-102, title I, Sec. 161, Nov. 12, 1999, 113 Stat.

1384, provided that: ''This title (enacting sections 24a, 1820a,

1828a, 1828b, 1831v, 1831w, and 1848a of this title and section

6701 of Title 15, Commerce and Trade, amending this section,

sections 25a, 335, 371c, 1821, 1835a, 1841 to 1844, 1849, 1850,

1864, 1971, 2903, 3101, 3106, and 3107 of this title, and section

18a of Title 15, repealing sections 78 and 377 of this title, and

enacting provisions set out as notes under sections 252, 1843, and

4801 of this title and section 41 of Title 15) (other than section

104 (enacting section 6701 of Title 15)) and the amendments made by

this title shall take effect 120 days after the date of the

enactment of this Act (Nov. 12, 1999).''

EFFECTIVE DATE OF 1996 AMENDMENT

Amendment by section 2704(d)(7) of Pub. L. 104-208 effective Jan.

1, 1999, if no insured depository institution is a savings

association on that date, see section 2704(c) of Pub. L. 104-208,

set out as a note under section 1821 of this title.

EFFECTIVE DATE OF 1994 AMENDMENT

Section 347(d) of Pub. L. 103-325 provided that: ''The amendments

made by this section (amending this section and section 78c of

Title 15, Commerce and Trade) shall become effective upon the date

of promulgation of final regulations under subsection (c) (set out

below).''

EFFECTIVE AND TERMINATION DATES OF 1988 AMENDMENT

Amendment by Pub. L. 100-449 effective on date United

States-Canada Free-Trade Agreement enters into force (Jan. 1,

1989), and to cease to have effect on date Agreement ceases to be

in force, see section 501(a), (c) of Pub. L. 100-449, set out in a

note under section 2112 of Title 19, Customs Duties.

EFFECTIVE DATE OF 1981 AMENDMENT

Amendment by Pub. L. 97-35 effective Aug. 13, 1981, see section

1372 of Pub. L. 97-35, set out as an Effective Date note under

section 290i of Title 22, Foreign Relations and Intercourse.

EFFECTIVE DATE OF 1973 AMENDMENTS

Amendment by Pub. L. 93-224 effective Dec. 29, 1973, see section

20 of Pub. L. 93-224, set out as an Effective Date note under

section 2281 of this title.

Amendment by Pub. L. 93-100 effective Aug. 16, 1973, see section

8 of Pub. L. 93-100, set out as an Effective Date note under

section 1469 of this title.

EFFECTIVE DATE OF 1970 AMENDMENT

For effective date of amendment by Pub. L. 91-375, see section

15(a) of Pub. L. 91-375, set out as an Effective Date note

preceding section 101 of Title 39, Postal Service.

EFFECTIVE DATE OF 1968 AMENDMENT

For effective date of amendment by title VIII of Pub. L. 90-448,

see section 808 of Pub. L. 90-448, set out as an Effective Date

note under section 1716b of this title.

EFFECTIVE DATE OF 1956 AMENDMENT

Amendment by act July 26, 1956, effective Jan. 1, 1957, see

section 202(a) of act July 26, 1956.

EFFECTIVE DATE OF 1933 AMENDMENT

Section 16 of act June 16, 1933, provided that restrictions of

this section as to dealing in investment securities shall take

effect one year after June 16, 1933.

REGULATIONS

Section 347(c) of Pub. L. 103-325 provided that: ''Not later than

1 year after the date of enactment of this Act (Sept. 23, 1994),

the Comptroller of the Currency shall promulgate final regulations,

in accordance with the thirteenth sentence of Paragraph Seventh of

section 5136 of the Revised Statutes (this section) (as amended by

subsection (b)), to carry out the amendments made by this section

(amending this section and section 78c of Title 15, Commerce and

Trade).'' (Final regulations implementing these amendments were

published in the Federal Register on Dec. 2, 1996 (61 F.R. 63972),

effective Dec. 31, 1996.)

-TRANS-

EXCEPTION AS TO TRANSFER OF FUNCTIONS

Functions vested by any provision of law in Comptroller of the

Currency, referred to in this section, not included in transfer of

functions to Secretary of the Treasury, see note set out under

section 1 of this title.

ABOLITION OF HOME OWNERS' LOAN CORPORATION

For dissolution and abolishment of Home Owners' Loan Corporation,

by act June 30, 1953, ch. 170, Sec. 21, 67 Stat. 126, see note set

out under section 1463 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 335, 371c, 378, 1464,

1733, 1841, 1843, 3102, 3201 of this title; title 15 section 78c;

title 22 section 286k-2.

-CITE-

12 USC Sec. 24a 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER I - ORGANIZATION AND GENERAL PROVISIONS

-HEAD-

Sec. 24a. Financial subsidiaries of national banks

-STATUTE-

(a) Authorization to conduct in subsidiaries certain activities

that are financial in nature

(1) In general

Subject to paragraph (2), a national bank may control a

financial subsidiary, or hold an interest in a financial

subsidiary.

(2) Conditions and requirements

A national bank may control a financial subsidiary, or hold an

interest in a financial subsidiary, only if -

(A) the financial subsidiary engages only in -

(i) activities that are financial in nature or incidental

to a financial activity pursuant to subsection (b) of this

section; and

(ii) activities that are permitted for national banks to

engage in directly (subject to the same terms and conditions

that govern the conduct of the activities by a national

bank);

(B) the activities engaged in by the financial subsidiary as

a principal do not include -

(i) insuring, guaranteeing, or indemnifying against loss,

harm, damage, illness, disability, or death (except to the

extent permitted under section 302 or 303(c) of the

Gramm-Leach-Bliley Act (15 U.S.C. 6712 or 6713(c))) or

providing or issuing annuities the income of which is subject

to tax treatment under section 72 of title 26;

(ii) real estate development or real estate investment

activities, unless otherwise expressly authorized by law; or

(iii) any activity permitted in subparagraph (H) or (I) of

section 1843(k)(4) of this title, except activities described

in section 1843(k)(4)(H) of this title that may be permitted

in accordance with section 122 of the Gramm-Leach-Bliley Act;

(C) the national bank and each depository institution

affiliate of the national bank are well capitalized and well

managed;

(D) the aggregate consolidated total assets of all financial

subsidiaries of the national bank do not exceed the lesser of -

(i) 45 percent of the consolidated total assets of the

parent bank; or

(ii) $50,000,000,000;

(E) except as provided in paragraph (4), the national bank

meets any applicable rating or other requirement set forth in

paragraph (3); and

(F) the national bank has received the approval of the

Comptroller of the Currency for the financial subsidiary to

engage in such activities, which approval shall be based solely

upon the factors set forth in this section.

(3) Rating or comparable requirement

(A) In general

A national bank meets the requirements of this paragraph if -

(i) the bank is 1 of the 50 largest insured banks and has

not fewer than 1 issue of outstanding eligible debt that is

currently rated within the 3 highest investment grade rating

categories by a nationally recognized statistical rating

organization; or

(ii) the bank is 1 of the second 50 largest insured banks

and meets the criteria set forth in clause (i) or such other

criteria as the Secretary of the Treasury and the Board of

Governors of the Federal Reserve System may jointly establish

by regulation and determine to be comparable to and

consistent with the purposes of the rating required in clause

(i).

(B) Consolidated total assets

For purposes of this paragraph, the size of an insured bank

shall be determined on the basis of the consolidated total

assets of the bank as of the end of each calendar year.

(4) Financial agency subsidiary

The requirement in paragraph (2)(E) shall not apply with

respect to the ownership or control of a financial subsidiary

that engages in activities described in subsection (b)(1) of this

section solely as agent and not directly or indirectly as

principal.

(5) Regulations required

Before the end of the 270-day period beginning on November 12,

1999, the Comptroller of the Currency shall, by regulation,

prescribe procedures to implement this section.

(6) Indexed asset limit

The dollar amount contained in paragraph (2)(D) shall be

adjusted according to an indexing mechanism jointly established

by regulation by the Secretary of the Treasury and the Board of

Governors of the Federal Reserve System.

(7) Coordination with section 1843(l)(2) of this title

Section 1843(l)(2) of this title applies to a national bank

that controls a financial subsidiary in the manner provided in

that section.

(b) Activities that are financial in nature

(1) Financial activities

(A) In general

An activity shall be financial in nature or incidental to

such financial activity only if -

(i) such activity has been defined to be financial in

nature or incidental to a financial activity for bank holding

companies pursuant to section 1843(k)(4) of this title; or

(ii) the Secretary of the Treasury determines the activity

is financial in nature or incidental to a financial activity

in accordance with subparagraph (B).

(B) Coordination between the Board and the Secretary of the

Treasury

(i) Proposals raised before the Secretary of the Treasury

(I) Consultation

The Secretary of the Treasury shall notify the Board of,

and consult with the Board concerning, any request,

proposal, or application under this section for a

determination of whether an activity is financial in nature

or incidental to a financial activity.

(II) Board view

The Secretary of the Treasury shall not determine that

any activity is financial in nature or incidental to a

financial activity under this section if the Board notifies

the Secretary in writing, not later than 30 days after the

date of receipt of the notice described in subclause (I)

(or such longer period as the Secretary determines to be

appropriate under the circumstances) that the Board

believes that the activity is not financial in nature or

incidental to a financial activity or is not otherwise

permissible under this section.

(ii) Proposals raised by the Board

(I) Board recommendation

The Board may, at any time, recommend in writing that the

Secretary of the Treasury find an activity to be financial

in nature or incidental to a financial activity for

purposes of this section.

(II) Time period for secretarial action

Not later than 30 days after the date of receipt of a

written recommendation from the Board under subclause (I)

(or such longer period as the Secretary of the Treasury and

the Board determine to be appropriate under the

circumstances), the Secretary shall determine whether to

initiate a public rulemaking proposing that the subject

recommended activity be found to be financial in nature or

incidental to a financial activity under this section, and

shall notify the Board in writing of the determination of

the Secretary and, in the event that the Secretary

determines not to seek public comment on the proposal, the

reasons for that determination.

(2) Factors to be considered

In determining whether an activity is financial in nature or

incidental to a financial activity, the Secretary shall take into

account -

(A) the purposes of this Act (FOOTNOTE 1) and the

Gramm-Leach-Bliley Act;

(FOOTNOTE 1) So in original.

(B) changes or reasonably expected changes in the marketplace

in which banks compete;

(C) changes or reasonably expected changes in the technology

for delivering financial services; and

(D) whether such activity is necessary or appropriate to

allow a bank and the subsidiaries of a bank to -

(i) compete effectively with any company seeking to provide

financial services in the United States;

(ii) efficiently deliver information and services that are

financial in nature through the use of technological means,

including any application necessary to protect the security

or efficacy of systems for the transmission of data or

financial transactions; and

(iii) offer customers any available or emerging

technological means for using financial services or for the

document imaging of data.

(3) Authorization of new financial activities

The Secretary of the Treasury shall, by regulation or order and

in accordance with paragraph (1)(B), define, consistent with the

purposes of this Act (FOOTNOTE 1) and the Gramm-Leach-Bliley Act,

the following activities as, and the extent to which such

activities are, financial in nature or incidental to a financial

activity:

(A) Lending, exchanging, transferring, investing for others,

or safeguarding financial assets other than money or

securities.

(B) Providing any device or other instrumentality for

transferring money or other financial assets.

(C) Arranging, effecting, or facilitating financial

transactions for the account of third parties.

(c) Capital deduction

(1) Capital deduction required

In determining compliance with applicable capital standards -

(A) the aggregate amount of the outstanding equity

investment, including retained earnings, of a national bank in

all financial subsidiaries shall be deducted from the assets

and tangible equity of the national bank; and

(B) the assets and liabilities of the financial subsidiaries

shall not be consolidated with those of the national bank.

(2) Financial statement disclosure of capital deduction

Any published financial statement of a national bank that

controls a financial subsidiary shall, in addition to providing

information prepared in accordance with generally accepted

accounting principles, separately present financial information

for the bank in the manner provided in paragraph (1).

(d) Safeguards for the bank

A national bank that establishes or maintains a financial

subsidiary shall assure that -

(1) the procedures of the national bank for identifying and

managing financial and operational risks within the national bank

and the financial subsidiary adequately protect the national bank

from such risks;

(2) the national bank has, for the protection of the bank,

reasonable policies and procedures to preserve the separate

corporate identity and limited liability of the national bank and

the financial subsidiaries of the national bank; and

(3) the national bank is in compliance with this section.

(e) Provisions applicable to national banks that fail to continue

to meet certain requirements

(1) In general

If a national bank or insured depository institution affiliate

does not continue to meet the requirements of subsection

(a)(2)(C) of this section or subsection (d) of this section, the

Comptroller of the Currency shall promptly give notice to the

national bank to that effect describing the conditions giving

rise to the notice.

(2) Agreement to correct conditions

Not later than 45 days after the date of receipt by a national

bank of a notice given under paragraph (1) (or such additional

period as the Comptroller of the Currency may permit), the

national bank shall execute an agreement with the Comptroller of

the Currency and any relevant insured depository institution

affiliate shall execute an agreement with its appropriate Federal

banking agency to comply with the requirements of subsection

(a)(2)(C) of this section and subsection (d) of this section.

(3) Imposition of conditions

Until the conditions described in a notice under paragraph (1)

are corrected -

(A) the Comptroller of the Currency may impose such

limitations on the conduct or activities of the national bank

or any subsidiary of the national bank as the Comptroller of

the Currency determines to be appropriate under the

circumstances and consistent with the purposes of this section;

and

(B) the appropriate Federal banking agency may impose such

limitations on the conduct or activities of any relevant

insured depository institution affiliate or any subsidiary of

the institution as such agency determines to be appropriate

under the circumstances and consistent with the purposes of

this section.

(4) Failure to correct

If the conditions described in a notice to a national bank

under paragraph (1) are not corrected within 180 days after the

date of receipt by the national bank of the notice, the

Comptroller of the Currency may require the national bank, under

such terms and conditions as may be imposed by the Comptroller

and subject to such extension of time as may be granted in the

discretion of the Comptroller, to divest control of any financial

subsidiary.

(5) Consultation

In taking any action under this subsection, the Comptroller

shall consult with all relevant Federal and State regulatory

agencies and authorities.

(f) Failure to maintain public rating or meet applicable criteria

(1) In general

A national bank that does not continue to meet any applicable

rating or other requirement of subsection (a)(2)(E) of this

section after acquiring or establishing a financial subsidiary

shall not, directly or through a subsidiary, purchase or acquire

any additional equity capital of any financial subsidiary until

the bank meets such requirements.

(2) Equity capital

For purposes of this subsection, the term ''equity capital''

includes, in addition to any equity instrument, any debt

instrument issued by a financial subsidiary, if the instrument

qualifies as capital of the subsidiary under any Federal or State

law, regulation, or interpretation applicable to the subsidiary.

(g) Definitions

For purposes of this section, the following definitions shall

apply:

(1) Affiliate, company, control, and subsidiary

The terms ''affiliate'', ''company'', ''control'', and

''subsidiary'' have the meanings given those terms in section

1841 of this title.

(2) Appropriate Federal banking agency, depository institution,

insured bank, and insured depository institution

The terms ''appropriate Federal banking agency'', ''depository

institution'', ''insured bank'', and ''insured depository

institution'' have the meanings given those terms in section 1813

of this title.

(3) Financial subsidiary

The term ''financial subsidiary'' means any company that is

controlled by 1 or more insured depository institutions other

than a subsidiary that -

(A) engages solely in activities that national banks are

permitted to engage in directly and are conducted subject to

the same terms and conditions that govern the conduct of such

activities by national banks; or

(B) a national bank is specifically authorized by the express

terms of a Federal statute (other than this section), and not

by implication or interpretation, to control, such as by

section 25 or 25A of the Federal Reserve Act (12 U.S.C. 601 et

seq., 611 et seq.) or the Bank Service Company Act (12 U.S.C.

1861 et seq.).

(4) Eligible debt

The term ''eligible debt'' means unsecured long-term debt that

-

(A) is not supported by any form of credit enhancement,

including a guarantee or standby letter of credit; and

(B) is not held in whole or in any significant part by any

affiliate, officer, director, principal shareholder, or

employee of the bank or any other person acting on behalf of or

with funds from the bank or an affiliate of the bank.

(5) Well capitalized

The term ''well capitalized'' has the meaning given the term in

section 1831o of this title.

(6) Well managed

The term ''well managed'' means -

(A) in the case of a depository institution that has been

examined, unless otherwise determined in writing by the

appropriate Federal banking agency -

(i) the achievement of a composite rating of 1 or 2 under

the Uniform Financial Institutions Rating System (or an

equivalent rating under an equivalent rating system) in

connection with the most recent examination or subsequent

review of the depository institution; and

(ii) at least a rating of 2 for management, if such rating

is given; or

(B) in the case of any depository institution that has not

been examined, the existence and use of managerial resources

that the appropriate Federal banking agency determines are

satisfactory.

-SOURCE-

(R.S. Sec. 5136A, as added Pub. L. 106-102, title I, Sec.

121(a)(2), Nov. 12, 1999, 113 Stat. 1373.)

-REFTEXT-

REFERENCES IN TEXT

The Gramm-Leach-Bliley Act, referred to in subsecs.

(a)(2)(B)(iii), (b)(2)(A), (3), is Pub. L. 106-102, Nov. 12, 1999,

113 Stat. 1338. Section 122 of the Act is set out as a note under

section 1843 of this title. For complete classification of this

Act to the Code, see Short Title of 1999 Amendment note set out

under section 1811 of this title and Tables.

Section 25 of the Federal Reserve Act, referred to in subsec.

(g)(3)(B), is classified to subchapter I (Sec. 601 et seq.) of

chapter 6 of this title. Section 25A of the Federal Reserve Act is

classified to subchapter II (Sec. 611 et seq.) of chapter 6 of this

title.

The Bank Service Company Act, referred to in subsec. (g)(3)(B),

is Pub. L. 87-856, Oct. 23, 1962, 76 Stat. 1132, as amended, which

is classified generally to chapter 18 (Sec. 1861 et seq.) of this

title. For complete classification of this Act to the Code, see

section 1861 of this title and Tables.

-MISC2-

PRIOR PROVISIONS

A prior section 5136A of the Revised Statutes was renumbered

section 5136B by Pub. L. 106-102 and is classified to section 25a

of this title.

EFFECTIVE DATE

Section effective 120 days after Nov. 12, 1999, see section 161

of Pub. L. 106-102, set out as an Effective Date of 1999 Amendment

note under section 24 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 335, 371c, 1831w, 1843,

1971 of this title.

-CITE-

12 USC Sec. 25 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER I - ORGANIZATION AND GENERAL PROVISIONS

-HEAD-

Sec. 25. Omitted

-COD-

CODIFICATION

Section, act July 1, 1922, ch. 257, Sec. 2, 42 Stat. 767,

repealed all acts extending the period of succession of national

banking associations for 20 years, and made paragraph Second of

section 24 applicable in that respect.

-CITE-

12 USC Sec. 25a 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER I - ORGANIZATION AND GENERAL PROVISIONS

-HEAD-

Sec. 25a. Participation by national banks in lotteries and related

activities

-STATUTE-

(a) Prohibited activities

A national bank may not -

(1) deal in lottery tickets;

(2) deal in bets used as a means or substitute for

participation in a lottery;

(3) announce, advertise, or publicize the existence of any

lottery;

(4) announce, advertise, or publicize the existence or identity

of any participant or winner, as such, in a lottery.

(b) Use of banking premises prohibited

A national bank may not permit -

(1) the use of any part of any of its banking offices by any

persons for any purpose forbidden to the bank under subsection

(a) of this section, or

(2) direct access by the public from any of its banking offices

to any premises used by any person for any purpose forbidden to

the bank under subsection (a) of this section.

(c) Definitions

As used in this section -

(1) The term ''deal in'' includes making, taking, buying,

selling, redeeming, or collecting.

(2) The term ''lottery'' includes any arrangement whereby three

or more persons (the ''participants'') advance money or credit to

another in exchange for the possibility or expectation that one

or more but not all of the participants (the ''winners'') will

receive by reason of their advances more than the amounts they

have advanced, the identity of the winners being determined by

any means which includes -

(A) a random selection;

(B) a game, race, or contest; or

(C) any record or tabulation of the result of one or more

events in which any participant has no interest except for its

bearing upon the possibility that he may become a winner.

(3) The term ''lottery ticket'' includes any right, privilege,

or possibility (and any ticket, receipt, record, or other

evidence of any such right, privilege, or possibility) of

becoming a winner in a lottery.

(d) Lawful banking services connected with operation of lotteries

Nothing contained in this section prohibits a national bank from

accepting deposits or cashing or otherwise handling checks or other

negotiable instruments, or performing other lawful banking services

for a State operating a lottery, or for an officer or employee of

that State who is charged with the administration of the lottery.

(e) Regulations; enforcement

The Comptroller of the Currency shall issue such regulations as

may be necessary to the strict enforcement of this section and the

prevention of evasions thereof.

-SOURCE-

(R.S. Sec. 5136B, formerly Sec. 5136A, as added Pub. L. 90-203,

Sec. 1(a), Dec. 15, 1967, 81 Stat. 608; renumbered R.S. Sec. 5136B,

Pub. L. 106-102, title I, Sec. 121(a)(1), Nov. 12, 1999, 113 Stat.

1373.)

-MISC1-

EFFECTIVE DATE

Section 6 of Pub. L. 90-203 provided that: ''The amendments made

by this Act (adding this section, sections 339, 1730c, and 1829a of

this title, and section 1306 of Title 18, Crimes and Criminal

Procedure) shall take effect on April 1, 1968.''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in title 18 section 1306.

-CITE-

12 USC Sec. 26 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER I - ORGANIZATION AND GENERAL PROVISIONS

-HEAD-

Sec. 26. Comptroller to determine if association can commence

business

-STATUTE-

Whenever a certificate is transmitted to the Comptroller of the

Currency, as provided in title 62 of the Revised Statutes, and the

association transmitting the same notifies the comptroller that all

of its capital stock has been duly paid in, and that such

association has complied with all the provisions of title 62 of the

Revised Statutes required to be complied with before an association

shall be authorized to commence the business of banking, the

comptroller shall examine into the condition of such association,

ascertain especially the amount of money paid in on account of its

capital, the name and place of residence of each of its directors,

and the amount of the capital stock of which each is the owner in

good faith, and generally whether such association has complied

with all the provisions of title 62 of the Revised Statutes

required to entitle it to engage in the business of banking; and

shall cause to be made and attested by the oaths of a majority of

the directors, and by the president or cashier of the association,

a statement of all the facts necessary to enable the comptroller to

determine whether the association is lawfully entitled to commence

the business of banking.

-SOURCE-

(R.S. Sec. 5168; Pub. L. 86-230, Sec. 2, Sept. 8, 1959, 73 Stat.

457.)

-REFTEXT-

REFERENCES IN TEXT

Title 62 of the Revised Statutes, referred to in text, was in the

original ''this Title'' meaning title LXII of the Revised Statutes,

consisting of R.S. Sec. 5133 to 5244, which are classified to

sections 21, 22 to 24a, 25a, 26, 27, 29, 35 to 37, 39, 43, 52, 53,

55 to 57, 59 to 62, 66, 71, 72 to 76, 81, 83 to 86, 90, 91, 93,

93a, 94, 141 to 144, 161, 164, 181, 182, 192 to 194, 196, 215c, 481

to 485, 501, 541, 548, and 582 of this title. See, also, sections

8, 333, 334, 475, 656, 709, 1004, and 1005 of Title 18, Crimes and

Criminal Procedure. For complete classification of R.S. Sec. 5133

to 5244 to the Code, see Tables.

-COD-

CODIFICATION

R.S. Sec. 5168 derived from act June 3, 1864, ch. 106, Sec. 17,

13 Stat. 104, which was the National Bank Act. See section 38 of

this title.

-MISC3-

AMENDMENTS

1959 - Pub. L. 86-230 substituted ''all'' for ''at least 50 per

centum'' before ''of its capital stock''.

-TRANS-

EXCEPTION AS TO TRANSFER OF FUNCTIONS

Functions vested by any provision of law in Comptroller of the

Currency, referred to in this section, not included in transfer of

functions to Secretary of the Treasury, see note set out under

section 1 of this title.

-CITE-

12 USC Sec. 27 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER I - ORGANIZATION AND GENERAL PROVISIONS

-HEAD-

Sec. 27. Certificate of authority to commence banking

-STATUTE-

(a) If, upon a careful examination of the facts so reported, and

of any other facts which may come to the knowledge of the

comptroller, whether by means of a special commission appointed by

him for the purpose of inquiring into the condition of such

association, or otherwise, it appears that such association is

lawfully entitled to commence the business of banking, the

comptroller shall give to such association a certificate, under his

hand and official seal, that such association has complied with all

the provisions required to be complied with before commencing the

business of banking, and that such association is authorized to

commence such business. But the comptroller may withhold from an

association his certificate authorizing the commencement of

business, whenever he has reason to suppose that the shareholders

have formed the same for any other than the legitimate objects

contemplated by title 62 of the Revised Statutes. A National Bank

Association, to which the Comptroller of the Currency has

heretofore issued or hereafter issues such certificate, is not

illegally constituted solely because its operations are or have

been required by the Comptroller of the Currency to limited to

those of a trust company and activities related thereto.

(b)(1) The Comptroller of the Currency may also issue a

certificate of authority to commence the business of banking

pursuant to this section to a national banking association which is

owned exclusively (except to the extent directors' qualifying

shares are required by law) by other depository institutions or

depository institution holding companies and is organized to engage

exclusively in providing services to or for other depository

institutions, their holding companies, and the officers, directors,

and employees of such institutions and companies, and in providing

correspondent banking services at the request of other depository

institutions or their holding companies (also referred to as a

''banker's bank'').

(2) Any national banking association chartered pursuant to

paragraph (1) shall be subject to such rules, regulations, and

orders as the Comptroller deems appropriate, and, except as

otherwise specifically provided in such rules, regulations, or

orders, shall be vested with or subject to the same rights,

privileges, duties, restrictions, penalties, liabilities,

conditions, and limitations that would apply under the national

banking laws to a national bank.

-SOURCE-

(R.S. Sec. 5169; Pub. L. 95-630, title XV, Sec. 1504, Nov. 10,

1978, 92 Stat. 3713; Pub. L. 96-221, title VII, Sec. 712(a), (c),

Mar. 31, 1980, 94 Stat. 189, 190; Pub. L. 97-320, title IV, Sec.

404(a), Oct. 15, 1982, 96 Stat. 1511; Pub. L. 103-325, title III,

Sec. 322(a)(2), Sept. 23, 1994, 108 Stat. 2227.)

-REFTEXT-

REFERENCES IN TEXT

Title 62 of the Revised Statutes, referred to in subsec. (a), was

in the original ''this Title'' meaning title LXII of the Revised

Statutes, consisting of R.S. Sec. 5133 to 5244, which are

classified to sections 21, 22 to 24a, 25a, 26, 27, 29, 35 to 37,

39, 43, 52, 53, 55 to 57, 59 to 62, 66, 71, 72 to 76, 81, 83 to 86,

90, 91, 93, 93a, 94, 141 to 144, 161, 164, 181, 182, 192 to 194,

196, 215c, 481 to 485, 501, 541, 548, and 582 of this title. See,

also, sections 8, 333, 334, 475, 656, 709, 1004, and 1005 of Title

18, Crimes and Criminal Procedure. For complete classification of

R.S. Sec. 5133 to 5244 to the Code, see Tables.

-COD-

CODIFICATION

R.S. Sec. 5169 derived from act June 3, 1864, ch. 106, Sec. 12,

18, 13 Stat. 102, 104, which was the National Bank Act. See section

38 of this title.

-MISC3-

AMENDMENTS

1994 - Subsec. (b)(1). Pub. L. 103-325, Sec. 322(a)(2)(A),

inserted ''or depository institution holding companies'' after ''by

other depository institutions''.

Pub. L. 103-325, Sec. 322(a)(2)(B), which directed substitution

of ''services to or for other depository institutions, their

holding companies, and the officers, directors, and employees of

such institutions and companies, and in providing correspondent

banking services at the request of other depository institutions or

their holding companies (also referred to as a 'banker's bank')''

for ''services for other depository institutions and their

officers, directors and employees'', was executed by making the

substitution for ''services for other depository institutions and

their officers, directors, and employees'' to reflect the probable

intent of Congress.

1982 - Pub. L. 97-320 designated existing provisions as subsec.

(a) and added subsec. (b).

1980 - Pub. L. 96-221, Sec. 712(a), (c), temporarily inserted

provisions relating to treatment of national banking associations

as additional banks within the contemplation of section 1842 of

this title. See Termination Date of 1980 Amendment note below.

1978 - Pub. L. 95-630 inserted provision that a National Bank

Association, to which the Comptroller of the Currency has

heretofore issued or hereafter issues such certificate, is not

illegally constituted solely because its operations are or have

been required by the Comptroller of the Currency to be limited to

those of a trust company and activities related thereto.

TERMINATION DATE OF 1980 AMENDMENT

Section 712(c) of Pub. L. 96-221 provided that: ''The amendments

made by this section (amending this section and section 1842 of

this title) are hereby repealed on October 1, 1981.''

EFFECTIVE DATE OF 1978 AMENDMENT

Section 1505 of Pub. L. 95-630 provided that: ''This title

(amending this section and sections 1715z-10 and 2902 of this title

and amending provisions set out as a note under section 1666f of

Title 15, Commerce and Trade) shall take effect upon enactment

(Nov. 10, 1978).''

-TRANS-

EXCEPTION AS TO TRANSFER OF FUNCTIONS

Functions vested by any provision of law in Comptroller of the

Currency, referred to in this section, not included in transfer of

functions to Secretary of the Treasury, see note set out under

section 1 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1464 of this title.

-CITE-

12 USC Sec. 28 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER I - ORGANIZATION AND GENERAL PROVISIONS

-HEAD-

Sec. 28. Repealed. Pub. L. 103-325, title VI, Sec. 602(e)(1), Sept.

23, 1994, 108 Stat. 2291

-MISC1-

Section, R.S. Sec. 5170, required publication of certificate of

authority to commence banking for 60 days after issuance.

-COD-

CODIFICATION

R.S. Sec. 5170 derived from act June 3, 1864, ch. 106, Sec. 18,

13 Stat. 104, which was the National Bank Act. See section 38 of

this title.

-CITE-

12 USC Sec. 29 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER I - ORGANIZATION AND GENERAL PROVISIONS

-HEAD-

Sec. 29. Power to hold real property

-STATUTE-

A national banking association may purchase, hold, and convey

real estate for the following purposes, and for no others:

First. Such as shall be necessary for its accommodation in the

transaction of its business.

Second. Such as shall be mortgaged to it in good faith by way of

security for debts previously contracted.

Third. Such as shall be conveyed to it in satisfaction of debts

previously contracted in the course of its dealings.

Fourth. Such as it shall purchase at sales under judgments,

decrees, or mortgages held by the association, or shall purchase to

secure debts due to it.

But no such association shall hold the possession of any real

estate under mortgage, or the title and possession of any real

estate purchased to secure any debts due to it, for a longer period

than five years except as otherwise provided in this section.

For real estate in the possession of a national banking

association upon application by the association, the Comptroller of

the Currency may approve the possession of any such real estate by

such association for a period longer than five years, but not to

exceed an additional five years, if (1) the association has made a

good faith attempt to dispose of the real estate within the

five-year period, or (2) disposal within the five-year period would

be detrimental to the association. Upon notification by the

association to the Comptroller of the Currency that such conditions

exist that require the expenditure of funds for the development and

improvement of such real estate, and subject to such conditions and

limitations as the Comptroller of the Currency shall prescribe, the

association may expend such funds as are needed to enable such

association to recover its total investment.

Notwithstanding the five-year holding limitation of this section

or any other provision of title 62 of the Revised Statutes, any

national banking association which on October 15, 1982, held,

directly or indirectly, real estate, including any subsurface

rights or interests therein, that since December 31, 1979, had not

been valued on the books of such association for more than a

nominal amount, may continue to hold such real estate, rights, or

interests for such longer period of time as would be permitted a

State chartered bank by the law of the State in which the

association is located if the aggregate amount of earnings from

such real estate, rights, or interests is separately disclosed in

the annual financial statements of the association.

-SOURCE-

(R.S. Sec. 5137; Feb. 25, 1927, ch. 191, Sec. 3, 44 Stat. 1227;

Pub. L. 96-221, title VII, Sec. 701(a), Mar. 31, 1980, 94 Stat.

186; Pub. L. 97-25, title III, Sec. 302, July 27, 1981, 95 Stat.

145; Pub. L. 97-320, title IV, Sec. 413, Oct. 15, 1982, 96 Stat.

1521.)

-REFTEXT-

REFERENCES IN TEXT

Title 62 of the Revised Statutes, referred to in last par., was

in the original ''this title'' meaning title LXII of the Revised

Statutes, consisting of R.S. Sec. 5133 to 5244, which are

classified to sections 21, 22 to 24a, 25a, 26, 27, 29, 35 to 37,

39, 43, 52, 53, 55 to 57, 59 to 62, 66, 71, 72 to 76, 81, 83 to 86,

90, 91, 93, 93a, 94, 141 to 144, 161, 164, 181, 182, 192 to 194,

196, 215c, 481 to 485, 501, 541, 548, and 582 of this title. See,

also, sections 8, 333, 334, 475, 656, 709, 1004, and 1005 of Title

18, Crimes and Criminal Procedure. For complete classification of

R.S. Sec. 5133 to 5244 to the Code, see Tables.

-COD-

CODIFICATION

R.S. Sec. 5137 derived from act June 3, 1864, ch. 106, Sec. 28,

13 Stat. 107, which was the National Bank Act. See section 38 of

this title.

-MISC3-

AMENDMENTS

1982 - Pub. L. 97-320 substituted ''Notwithstanding the five-year

holding limitation of this section or any other provision of title

62 of the Revised Statutes, any national banking association which

on October 15, 1982, held, directly or indirectly, real estate,

including any subsurface rights or interests therein, that since

December 31, 1979, had not been valued on the books of such

association for more than a nominal amount, may continue to hold

such real estate, rights, or interests for such longer period of

time as would be permitted a State chartered bank by the law of the

State in which the association is located if the aggregate amount

of earnings from such real estate, rights, or interests is

separately disclosed in the annual financial statements of the

association'' for ''Notwithstanding any other provision of this

section, any national banking association which, on July 27, 1981,

held title to and possession of real estate which was carried on

the association's books at a nominal value on December 31, 1979,

may continue to hold such real estate until December 31, 1982, if

the earnings from such real estate are separately disclosed in the

financial statements of the association''.

1981 - Pub. L. 97-25 inserted provision that any national banking

association which, on July 27, 1981, held title to and possession

of real estate which was carried on the association's books at a

nominal value on December 31, 1979, may continue to hold such real

estate until December 31, 1982, if the earnings from such real

estate are separately disclosed in the financial statements of the

association.

1980 - Pub. L. 96-221 inserted provisions relating to

authorization to hold real estate in the possession of a national

banking association upon application by the association.

1927 - Par. First. Act Feb. 25, 1927, struck out ''immediate,''

before ''accommodation,'' in par. First.

-CITE-

12 USC Sec. 30 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER I - ORGANIZATION AND GENERAL PROVISIONS

-HEAD-

Sec. 30. Change of name or location

-STATUTE-

(a) Name change

Any national banking association, upon written notice to the

Comptroller of the Currency, may change its name, except that such

new name shall include the word ''National''.

(b) Location change

Any national banking association, upon written notice to the

Comptroller of the Currency, may change the location of its main

office to any authorized branch location within the limits of the

city, town, or village in which it is situated, or, with a vote of

shareholders owning two-thirds of the stock of such association for

a relocation outside such limits and upon receipt of a certificate

of approval from the Comptroller of the Currency, to any other

location within or outside the limits of the city, town, or village

in which it is located, but not more than thirty miles beyond such

limits.

(c) Coordination with section 36 of this title

In the case of a national bank which relocates the main office of

such bank from 1 State to another State after May 31, 1997, the

bank may retain and operate branches within the State from which

the bank relocated such office only to the extent authorized in

section 36(e)(2) of this title.

(d) Retention of ''Federal'' in name of converted Federal savings

association

(1) In general

Notwithstanding subsection (a) of this section or any other

provision of law, any depository institution, the charter of

which is converted from that of a Federal savings association to

a national bank or a State bank after November 12, 1999, may

retain the term ''Federal'' in the name of such institution if

such institution remains an insured depository institution.

(2) Definitions

For purposes of this subsection, the terms ''depository

institution'', ''insured depository institution'', ''national

bank'', and ''State bank'' have the meanings given those terms in

section 1813 of this title.

-SOURCE-

(May 1, 1886, ch. 73, Sec. 2, 24 Stat. 18; Pub. L. 86-230, Sec. 3,

Sept. 8, 1959, 73 Stat. 457; Pub. L. 97-320, title IV, Sec. 405(a),

Oct. 15, 1982, 96 Stat. 1512; Pub. L. 97-457, Sec. 19(a), Jan. 12,

1983, 96 Stat. 2509; Pub. L. 103-328, title I, Sec. 102(b)(2),

Sept. 29, 1994, 108 Stat. 2350; Pub. L. 106-102, title VII, Sec.

723, Nov. 12, 1999, 113 Stat. 1471.)

-MISC1-

AMENDMENTS

1999 - Subsec. (d). Pub. L. 106-102 added subsec. (d).

1994 - Subsec. (c). Pub. L. 103-328 added subsec. (c).

1983 - Subsec. (b). Pub. L. 97-457 inserted ''for a relocation

outside such limits'' after ''stock of such association''.

1982 - Pub. L. 97-320 designated existing provisions as subsec.

(a), substituted provisions permitting a change of name upon

written notice to the Comptroller, such new name to include

''National'', for provisions permitting a change of name or

location of the main office, with approval of the Comptroller,

within city limits, etc., or outside such limits by vote of

shareholders, such change to be validated by certificate of

approval, and added subsec. (b).

1959 - Pub. L. 86-230 required approval of Comptroller of the

Currency before a national bank could change location of its main

office within the limitations of the city, town, or village in

which it is situated.

-TRANS-

EXCEPTION AS TO TRANSFER OF FUNCTIONS

Functions vested by any provision of law in Comptroller of the

Currency, referred to in this section, not included in transfer of

functions to Secretary of the Treasury, see note set out under

section 1 of this title.

-CITE-

12 USC Sec. 31 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER I - ORGANIZATION AND GENERAL PROVISIONS

-HEAD-

Sec. 31. Rights and liabilities as affected by change of name

-STATUTE-

All debts, liabilities, rights, provisions, and powers of the

association under its old name shall devolve upon and inure to the

association under its new name.

-SOURCE-

(May 1, 1886, ch. 73, Sec. 3, 24 Stat. 19.)

-CITE-

12 USC Sec. 32 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER I - ORGANIZATION AND GENERAL PROVISIONS

-HEAD-

Sec. 32. Liabilities and suits as affected by change of name or

location

-STATUTE-

Nothing contained in sections 30 and 31 of this title shall be so

construed as in any manner to release any national banking

association under its old name or at its old location from any

liability, or affect any action or proceeding in law in which said

association may be or become a party or interested.

-SOURCE-

(May 1, 1886, ch. 73, Sec. 4, 24 Stat. 19.)

-CITE-

12 USC Sec. 33 to 34c 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER I - ORGANIZATION AND GENERAL PROVISIONS

-HEAD-

Sec. 33 to 34c. Transferred

-COD-

CODIFICATION

Act Nov. 7, 1918, ch. 209, 40 Stat. 1043, as amended, formerly

classified to sections 33 to 34c of this title, which related to

consolidation and merger of national banking associations and such

associations and State banks, was completely amended by Pub. L.

86-230, Sec. 20, Sept. 8 1959 73 Stat. 460, and is classified to

sections 215 to 215b of this title.

Section 33, acts Nov. 7, 1918, ch. 209, Sec. 1, 40 Stat. 1043;

June 16, 1933, ch. 89, Sec. 24(a), 48 Stat. 190; Aug. 23, 1935, ch.

614, Sec. 330, 49 Stat. 718, related to consolidation of national

banks, capital stock, dissenting shareholders, notice and valuation

of shares. See section 215 of this title.

Section 34, act Nov. 7, 1918, ch. 209, Sec. 2, 40 Stat. 1044,

related to effect of consolidation on rights and liabilities. See

section 215 of this title.

Section 34a, act Nov. 7, 1918, ch. 209, Sec. 3, as added Feb. 25,

1927, ch. 191, Sec. 1, 44 Stat. 1225, and amended June 16, 1933,

ch. 89 Sec. 24, 48 Stat. 190; Aug. 23, 1935, ch. 614, Sec. 331, 49

Stat. 719; July 14, 1952, ch. 722, Sec. 2, 66 Stat. 601, related to

consolidation of State bank, etc. with national bank, capital stock

and dissenting shareholders. See section 215 of this title.

Section 34b, act Nov. 7, 1918, ch. 209, Sec. 4, as added July 14,

1952, ch. 722, Sec. 1, 66 Stat. 599, related to merger of national

banking associations or State banks into national banking

associations. See section 215a of this title.

Section 34c, act Nov. 7, 1918, ch. 209, Sec. 5, as added July 14,

1952, ch. 722, Sec. 1, 66, Stat. 601, related to definitions. See

section 215b of this title.

-CITE-

12 USC Sec. 35 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER I - ORGANIZATION AND GENERAL PROVISIONS

-HEAD-

Sec. 35. Organization of State banks as national banking

associations

-STATUTE-

Any bank incorporated by special law of any State or of the

United States or organized under the general laws of any State or

of the United States and having an unimpaired capital sufficient to

entitle it to become a national banking association under the

provisions of the existing laws may, by the vote of the

shareholders owning not less than 51 per centum of the capital

stock of such bank or banking association, with the approval of the

Comptroller of the Currency be converted into a national banking

association, with a name that contains the word ''national'':

Provided, however, That said conversion shall not be in

contravention of the State law. In such case the articles of

association and organization certificate may be executed by a

majority of the directors of the bank or banking institution, and

the certificate shall declare that the owners of 51 per centum of

the capital stock have authorized the directors to make such

certificate and to change or convert the bank or banking

institution into a national association. A majority of the

directors, after executing the articles of association and the

organization certificate, shall have power to execute all other

papers and to do whatever may be required to make its organization

perfect and complete as a national association. The shares of any

such bank may continue to be for the same amount each as they were

before the conversion, and the directors may continue to be

directors of the association until others are elected or appointed

in accordance with the provisions of the statutes of the United

States. When the Comptroller has given to such bank or banking

association a certificate that the provisions of this Act have been

complied with, such bank or banking association, and all its

stockholders, officers, and employees shall have the same powers

and privileges and shall be subject to the same duties,

liabilities, and regulations, in all respects, as shall have been

prescribed by the Federal Reserve Act (12 U.S.C. 221 et seq.) and

the National Banking Act for associations originally organized as

national banking associations.

The Comptroller of the Currency may, in his discretion and

subject to such conditions as he may prescribe, permit such

converting bank to retain and carry at a value determined by the

Comptroller such of the assets of such converting bank as do not

conform to the legal requirements relative to assets acquired and

held by national banking associations.

-SOURCE-

(R.S. Sec. 5154; Dec. 23, 1913, ch. 6, Sec. 8, 38 Stat. 258; Aug.

23, 1935, ch. 614, title III, Sec. 312, 49 Stat. 711; Pub. L.

97-457, Sec. 19(b), Jan. 12, 1983, 96 Stat. 2509.)

-REFTEXT-

REFERENCES IN TEXT

This Act, referred to in first par., may refer to the Federal

Reserve Act, act Dec. 23, 1913, from which this wording is derived;

or section 5154 of the Revised Statutes which the Federal Reserve

Act amended; or act June 3, 1864, from which R.S. Sec. 5154 was

derived; or Congress might have intended to refer to the preceding

provisions of the 1913 amendment. Similar reference in R.S. Sec.

5154 prior to 1913 amendment was to ''this Title,'' meaning title

62 of the Revised Statutes, which title comprised the National Bank

Act (June 3, 1864, ch. 106, 13 Stat. 99). See section 38 of this

title. Note also specific reference to the Federal Reserve Act and

the National Banking Act in first par.

The Federal Reserve Act, referred to in text, is act Dec. 23,

1913, ch. 6, 38 Stat. 251, as amended, which is classified

principally to chapter 3 (Sec. 221 et seq.) of this title. For

complete classification of this Act to the Code, see References in

Text note set out under section 226 of this title and Tables.

The National Banking Act, referred to in text, is probably

intended to be a reference to the National Bank Act, act June 3,

1864, ch. 106, 13 Stat. 99, as amended, which is classified

principally to chapter 2 (Sec. 21 et seq.) of this title. For

complete classification of this Act to the Code see References in

Text note set out under section 38 of this title.

-COD-

CODIFICATION

R.S. Sec. 5154 derived from act June 3, 1864, ch. 106, Sec. 44,

13 Stat. 112, which was the National Bank Act. See section 38 of

this title.

-MISC3-

AMENDMENTS

1983 - Pub. L. 97-457 substituted ''with a name that contains the

word 'national' '' for ''with any name approved by the Comptroller

of the Currency'' after ''national banking association,''.

1935 - Act Aug. 23, 1935, added last par.

-TRANS-

EXCEPTION AS TO TRANSFER OF FUNCTIONS

Functions vested by any provision of law in Comptroller of the

Currency, referred to in this section, not included in transfer of

functions to Secretary of the Treasury, see note set out under

section 1 of this title.

-CITE-

12 USC Sec. 36 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER I - ORGANIZATION AND GENERAL PROVISIONS

-HEAD-

Sec. 36. Branch banks

-STATUTE-

The conditions upon which a national banking association may

retain or establish and operate a branch or branches are the

following:

(a) Lawful and continuous operation

A national banking association may retain and operate such branch

or branches as it may have had in lawful operation on February 25,

1927, and any national banking association which continuously

maintained and operated not more than one branch for a period of

more than twenty-five years immediately preceding February 25,

1927, may continue to maintain and operate such branch.

(b) Converted State banks

(1) A national bank resulting from the conversion of a State bank

may retain and operate as a branch any office which was a branch of

the State bank immediately prior to conversion if such office -

(A) might be established under subsection (c) of this section

as a new branch of the resulting national bank, and is approved

by the Comptroller of the Currency for continued operation as a

branch of the resulting national bank;

(B) was a branch of any bank on February 25, 1927; or

(C) is approved by the Comptroller of the Currency for

continued operation as a branch of the resulting national bank.

The Comptroller of the Currency may not grant approval under clause

(C) of this paragraph if a State bank (in a situation identical to

that of the national bank) resulting from the conversion of a

national bank would be prohibited by the law of such State from

retaining and operating as a branch an identically situated office

which was a branch of the national bank immediately prior to

conversion.

(2) A national bank (referred to in this paragraph as the

''resulting bank''), resulting from the consolidation of a national

bank (referred to in this paragraph as the ''national bank'') under

whose charter the consolidation is effected with another bank or

banks, may retain and operate as a branch any office which,

immediately prior to such consolidation, was in operation as -

(A) a main office or branch office of any bank (other than the

national bank) participating in the consolidation if, under

subsection (c) of this section, it might be established as a new

branch of the resulting bank, and if the Comptroller of the

Currency approves of its continued operation after the

consolidation;

(B) a branch of any bank participating in the consolidation,

and which, on February 25, 1927, was in operation as a branch of

any bank; or

(C) a branch of the national bank and which, on February 25,

1927, was not in operation as a branch of any bank, if the

Comptroller of the Currency approves of its continued operation

after the consolidation.

The Comptroller of the Currency may not grant approval under clause

(C) of this paragraph if a State bank (in a situation identical to

that of the resulting national bank) resulting from the

consolidation into a State bank of another bank or banks would be

prohibited by the law of such State from retaining and operating as

a branch an identically situated office which was a branch of the

State bank immediately prior to consolidation.

(3) As used in this subsection, the term ''consolidation''

includes a merger.

(c) New branches

A national banking association may, with the approval of the

Comptroller of the Currency, establish and operate new branches:

(1) Within the limits of the city, town or village in which said

association is situated, if such establishment and operation are at

the time expressly authorized to State banks by the law of the

State in question; and (2) at any point within the State in which

said association is situated, if such establishment and operation

are at the time authorized to State banks by the statute law of the

State in question by language specifically granting such authority

affirmatively and not merely by implication or recognition, and

subject to the restrictions as to location imposed by the law of

the State on State banks. In any State in which State banks are

permitted by statute law to maintain branches within county or

greater limits, if no bank is located and doing business in the

place where the proposed agency is to be located, any national

banking association situated in such State may, with the approval

of the Comptroller of the Currency, establish and operate, without

regard to the capital requirements of this section, a seasonal

agency in any resort community within the limits of the county in

which the main office of such association is located, for the

purpose of receiving and paying out deposits, issuing and cashing

checks and drafts, and doing business incident thereto: Provided,

That any permit issued under this sentence shall be revoked upon

the opening of a State or national bank in such community. Except

as provided in the immediately preceding sentence, no such

association shall establish a branch outside of the city, town, or

village in which it is situated unless it has a combined capital

stock and surplus equal to the combined amount of capital stock and

surplus, if any, required by the law of the State in which such

association is situated for the establishment of such branches by

State banks, or, if the law of such State requires only a minimum

capital stock for the establishment of such branches by State

banks, unless such association has not less than an equal amount of

capital stock.

(d) Branches resulting from interstate merger transactions

A national bank resulting from an interstate merger transaction

(as defined in section 1831u(f)(6) (FOOTNOTE 1) of this title) may

maintain and operate a branch in a State other than the home State

(as defined in subsection (g)(3)(B) of this section) of such bank

in accordance with section 1831u of this title.

(FOOTNOTE 1) See References in Text note below.

(e) Exclusive authority for additional branches

(1) In general

Effective June 1, 1997, a national bank may not acquire,

establish, or operate a branch in any State other than the bank's

home State (as defined in subsection (g)(3)(B) of this section)

or a State in which the bank already has a branch unless the

acquisition, establishment, or operation of such branch in such

State by such national bank is authorized under this section or

section 1823(f), 1823(k), or 1831u of this title.

(2) Retention of branches

In the case of a national bank which relocates the main office

of such bank from 1 State to another State after May 31, 1997,

the bank may retain and operate branches within the State which

was the bank's home State (as defined in subsection (g)(3)(B) of

this section) before the relocation of such office only to the

extent the bank would be authorized, under this section or any

other provision of law referred to in paragraph (1), to acquire,

establish, or commence to operate a branch in such State if -

(A) the bank had no branches in such State; or

(B) the branch resulted from -

(i) an interstate merger transaction approved pursuant to

section 1831u of this title; or

(ii) a transaction after May 31, 1997, pursuant to which

the bank received assistance from the Federal Deposit

Insurance Corporation under section 1823(c) of this title.

(f) Law applicable to interstate branching operations

(1) Law applicable to national bank branches

(A) In general

The laws of the host State regarding community reinvestment,

consumer protection, fair lending, and establishment of

intrastate branches shall apply to any branch in the host State

of an out-of-State national bank to the same extent as such

State laws apply to a branch of a bank chartered by that State,

except -

(i) when Federal law preempts the application of such State

laws to a national bank; or

(ii) when the Comptroller of the Currency determines that

the application of such State laws would have a

discriminatory effect on the branch in comparison with the

effect the application of such State laws would have with

respect to branches of a bank chartered by the host State.

(B) Enforcement of applicable State laws

The provisions of any State law to which a branch of a

national bank is subject under this paragraph shall be

enforced, with respect to such branch, by the Comptroller of

the Currency.

(C) Review and report on actions by Comptroller

The Comptroller of the Currency shall conduct an annual

review of the actions it has taken with regard to the

applicability of State law to national banks (or their

branches) during the preceding year, and shall include in its

annual report required under section 14 of this title the

results of the review and the reasons for each such action.

The first such review and report after July 3, 1997, shall

encompass all such actions taken on or after January 1, 1992.

(2) Treatment of branch as bank

All laws of a host State, other than the laws regarding

community reinvestment, consumer protection, fair lending,

establishment of intrastate branches, and the application or

administration of any tax or method of taxation, shall apply to a

branch (in such State) of an out-of-State national bank to the

same extent as such laws would apply if the branch were a

national bank the main office of which is in such State.

(3) Rule of construction

No provision of this subsection may be construed as affecting

the legal standards for preemption of the application of State

law to national banks.

(g) State ''opt-in'' election to permit interstate branching

through de novo branches

(1) In general

Subject to paragraph (2), the Comptroller of the Currency may

approve an application by a national bank to establish and

operate a de novo branch in a State (other than the bank's home

State) in which the bank does not maintain a branch if -

(A) there is in effect in the host State a law that -

(i) applies equally to all banks; and

(ii) expressly permits all out-of-State banks to establish

de novo branches in such State; and

(B) the conditions established in, or made applicable to this

paragraph by, paragraph (2) are met.

(2) Conditions on establishment and operation of interstate

branch

(A) Establishment

An application by a national bank to establish and operate a

de novo branch in a host State shall be subject to the same

requirements and conditions to which an application for an

interstate merger transaction is subject under paragraphs (1),

(3), and (4) of section 1831u(b) of this title.

(B) Operation

Subsections (c) and (d)(2) of section 1831u of this title

shall apply with respect to each branch of a national bank

which is established and operated pursuant to an application

approved under this subsection in the same manner and to the

same extent such provisions of such section 1831u of this title

apply to a branch of a national bank which resulted from an

interstate merger transaction approved pursuant to such section

1831u of this title.

(3) Definitions

The following definitions shall apply for purposes of this

section:

(A) De novo branch

The term ''de novo branch'' means a branch of a national bank

which -

(i) is originally established by the national bank as a

branch; and

(ii) does not become a branch of such bank as a result of -

(I) the acquisition by the bank of an insured depository

institution or a branch of an insured depository

institution; or

(II) the conversion, merger, or consolidation of any such

institution or branch.

(B) Home State

The term ''home State'' means the State in which the main

office of a national bank is located.

(C) Host State

The term ''host State'' means, with respect to a bank, a

State, other than the home State of the bank, in which the bank

maintains, or seeks to establish and maintain, a branch.

(h) Repealed. Pub. L. 104-208, div. A, title II, Sec. 2204, Sept.

30, 1996, 110 Stat. 3009-405

(i) Prior approval of branch locations

No branch of any national banking association shall be

established or moved from one location to another without first

obtaining the consent and approval of the Comptroller of the

Currency.

(j) ''Branch'' defined

The term ''branch'' as used in this section shall be held to

include any branch bank, branch office, branch agency, additional

office, or any branch place of business located in any State or

Territory of the United States or in the District of Columbia at

which deposits are received, or checks paid, or money lent. The

term ''branch'', as used in this section, does not include an

automated teller machine or a remote service unit.

(k) Branches in foreign countries, dependencies, or insular

possessions

This section shall not be construed to amend or repeal section 25

of the Federal Reserve Act, as amended (12 U.S.C. 601 et seq.),

authorizing the establishment by national banking associations of

branches in foreign countries, or dependencies, or insular

possessions of the United States.

(l) ''State bank'' and ''bank'' defined

The words ''State bank,'' ''State banks,'' ''bank,'' or

''banks,'' as used in this section, shall be held to include trust

companies, savings banks, or other such corporations or

institutions carrying on the banking business under the authority

of State laws.

-SOURCE-

(R.S. Sec. 5155; Feb. 25, 1927, ch. 191, Sec. 7, 44 Stat. 1228;

June 16, 1933, ch. 89, Sec. 23, 48 Stat. 189; Aug. 23, 1935, ch.

614, title III, Sec. 305, 49 Stat. 708; July 15, 1952, ch. 753,

Sec. 2(b), 66 Stat. 633; Pub. L. 87-721, Sept. 28, 1962, 76 Stat.

667; Pub. L. 103-328, title I, Sec. 102(b)(1), 103(a), Sept. 29,

1994, 108 Stat. 2349, 2352; Pub. L. 104-208, div. A, title II,

Sec. 2204, 2205(a), Sept. 30, 1996, 110 Stat. 3009-405; Pub. L.

105-24, Sec. 2(b), July 3, 1997, 111 Stat. 239.)

-REFTEXT-

REFERENCES IN TEXT

Section 1831u of this title, referred to in subsec. (d), was

subsequently amended, and subsec. (f)(6) of section 1831u no longer

defines the term ''interstate merger transaction''. However, such

term is defined elsewhere in that section.

Section 25 of the Federal Reserve Act, as amended, referred to in

subsec. (k), is classified to subchapter I (Sec. 601 et seq.) of

chapter 6 of this title.

-COD-

CODIFICATION

R.S. Sec. 5155 derived from act Mar. 3, 1865, ch. 78, Sec. 7, 13

Stat. 484.

-MISC3-

AMENDMENTS

1997 - Subsec. (f)(1)(C). Pub. L. 105-24 added subpar. (C).

1996 - Subsec. (h). Pub. L. 104-208, Sec. 2204, struck out

subsec. (h) which read as follows: ''The aggregate capital of every

national banking association and its branches shall at no time be

less than the aggregate minimum capital required by law for the

establishment of an equal number of national banking associations

situated in the various places where such association and its

branches are situated.''

Subsec. (j). Pub. L. 104-208, Sec. 2205(a), inserted at end ''The

term 'branch', as used in this section, does not include an

automated teller machine or a remote service unit.''

1994 - Subsecs. (d) to (f). Pub. L. 103-328, Sec. 102(b)(1)(B),

added subsecs. (d) to (f). Former subsecs. (d) to (f) redesignated

(h) to (j), respectively.

Subsec. (g). Pub. L. 103-328, Sec. 103(a), added subsec. (g).

Pub. L. 103-328, Sec. 102(b)(1)(A), redesignated subsec. (g) as

(k).

Subsecs. (h) to (l). Pub. L. 103-328, Sec. 102(b)(1)(A),

redesignated subsecs. (d) to (h) as (h) to (l), respectively.

1962 - Subsec. (b). Pub. L. 87-721 substituted provisions

permitting a national bank resulting from the conversion of a State

bank to retain and operate as a branch any office which was a

branch of the State bank immediately prior to conversion if such

office might be established as a new branch of the resulting

national bank, and is approved by the Comptroller for continued

operation as a branch of the resulting bank, or any office which

was a branch of any bank on Feb. 25, 1927, or any office which is

approved by the Comptroller for continued operation as a branch,

and a national bank resulting from consolidation of a national bank

under whose charter the consolidation is effected with another bank

or banks to retain and operate any office which, immediately prior

to consolidation, was in operation as a main office or branch

office of any bank (other than the national bank) participating in

the consolidation if it might be established as a new branch of the

resulting bank, and if the Comptroller approves of its continued

operation, or was in operation as a branch of any bank

participating in the consolidation and which, on Feb. 25, 1927, was

in operation as a branch of any bank, or was in operation as a

branch of the national bank and which, on Feb. 25, 1927, was not in

operation as a branch of any bank, if the Comptroller approves of

its continued operation, for provisions which permitted State banks

converted into or consolidated with national banking associations

after Feb. 25, 1927, or two or more national banking associations

which are consolidated, to retain and operate only those branches

which may have been in lawful operation on Feb. 25, 1927, and

inserted provisions prohibiting the Comptroller from granting

approval under clauses (1)(C) and (2)(C) if a State bank resulting

from the conversion or consolidation would be prohibited by law of

the State from retaining and operating as a branch an identically

situated office which was a branch of the national bank or State

bank immediately prior to the conversion or consolidation.

1952 - Subsec. (c). Act July 15, 1952, struck out the minimum

capital requirement for the establishment of branches by national

banks.

1935 - Subsec. (c). Act Aug. 23, 1935, inserted second sentence

and substituted ''Except as provided in the immediately preceding

sentence, no'' for ''No'' in last sentence.

1933 - Subsecs. (c), (d). Act June 16, 1963, amended subsecs. (c)

and (d).

1927 - Act Feb. 25, 1927, amended section generally.

-TRANS-

EXCEPTION AS TO TRANSFER OF FUNCTIONS

Functions vested by any provision of law in Comptroller of the

Currency, referred to in this section, not included in transfer of

functions to Secretary of the Treasury, see note set out under

section 1 of this title.

-MISC5-

RIGHT OF STATE TO OPT OUT

Nothing in Pub. L. 105-24 to alter right of States under section

525 of Pub. L. 96-221, see section 3 of Pub. L. 105-24, set out as

a note under section 1831a of this title.

APPLICABILITY OF MCFADDEN ACT TO PRESENT FINANCIAL ENVIRONMENT;

REPORT AND RECOMMENDATIONS BY PRESIDENT TO CONGRESS

Pub. L. 95-369, Sec. 14, Sept. 17, 1978, 92 Stat. 625, provided

for a report to Congress by the President, not later than one year

after Sept. 17, 1978, containing recommendations concerning the

applicability of the McFadden Act (Feb. 25, 1927, ch. 191, 44 Stat.

1224) to the then current financial, banking, and economic

environment.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 30, 43, 81, 93a, 1820,

3103 of this title.

-CITE-

12 USC Sec. 37 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER I - ORGANIZATION AND GENERAL PROVISIONS

-HEAD-

Sec. 37. Associations governed by chapter

-STATUTE-

The provisions of chapters 2, 3, and 4 of title 62 of the Revised

Statutes, which are expressed without restrictive words, as

applying to ''national banking associations,'' or to

''associations,'' apply to all associations organized to carry on

the business of banking under any Act of Congress.

-SOURCE-

(R.S. Sec. 5157.)

-REFTEXT-

REFERENCES IN TEXT

Chapters 2, 3, and 4 of title 62 of the Revised Statutes,

referred to in text, was in the original ''chapters two, three, and

four of this Title,'' meaning chapters 2, 3, and 4 of title 62 of

the Revised Statutes, consisting of R.S. Sec. 5157 to 5244, which

are classified to sections 26, 27, 37, 43, 55, 56, 60, 62, 81, 83

to 86, 91, 93, 93a, 94, 141 to 144, 161, 164, 181, 182, 192 to 194,

196, 481 to 485, 501, 541, and 582 of this title. See, also,

sections 8, 333, 334, 475, 656, 709, 1004, and 1005 of Title 18,

Crimes and Criminal Procedure. For complete classification of R.S.

Sec. 5157 to 5244 to the Code, see Tables.

-CITE-

12 USC Sec. 38 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER I - ORGANIZATION AND GENERAL PROVISIONS

-HEAD-

Sec. 38. The National Bank Act

-STATUTE-

The Act entitled ''An Act to provide a national currency secured

by a pledge of United States bonds, and to provide for the

circulation and redemption thereof,'' approved June 3, 1864, shall

be known as ''The National Bank Act.''

-SOURCE-

(June 20, 1874, ch. 343, Sec. 1, 18 Stat. 123.)

-REFTEXT-

REFERENCES IN TEXT

The National Bank Act, referred to in text, is act June 3, 1864,

ch. 106, 13 Stat. 99, as amended. The act was incorporated into

the Revised Statutes as R.S. Sec. 324 to 327, 328 to 331, 333, 380,

563, 629, 736, 884, 885, 3473, 3475, 3651, 5133 to 5136, 5137 to

5154, 5156, 5158 to 5170, 5172, 5173, 5175, 5177, 5182 to 5184,

5187, 5189, 5190 to 5192, 5195 to 5204, 5206, 5209 to 5211, 5214 to

5215, 5219 to 5222, 5224 to 5239, 5240 to 5242, 5417, which are

classified to sections 1 to 4, 8, 11 to 14, 21, 22 to 24, 26, 27,

29, 35, 39, 52, 53, 56, 57, 59 to 62, 66, 71, 72 to 76, 81, 84 to

86, 90, 91, 93, 94, 141 to 144, 161, 165, 181, 182, 192 to 194,

196, 481 to 485, 541, and 548 of this title, section 197 of Title

19, Customs Duties, and section 543 of former Title 31, Money and

Finance. See, also, sections 8, 333, 334, 471, 472, 656, and 1005

of Title 18, Crimes and Criminal Procedure, and sections 507, 1348,

1394, and 1733 of Title 28, Judiciary and Judicial Procedure.

-CITE-

12 USC Sec. 39 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER I - ORGANIZATION AND GENERAL PROVISIONS

-HEAD-

Sec. 39. Reservation of rights of associations organized under Act

of 1863

-STATUTE-

Nothing in title 62 of the Revised Statutes shall affect any

appointments made, acts done, or proceedings had or commenced prior

to the third day of June 1864, in or toward the organization of any

national banking association under the act of February 25, 1863;

but all associations which, on the third day of June 1864, were

organized or commenced to be organized under that act, shall enjoy

all the rights and privileges granted, and be subject to all the

duties, liabilities, and restrictions imposed by title 62 of the

Revised Statutes, notwithstanding all the steps prescribed by title

62 of the Revised Statutes for the organization of associations

were not pursued, if such associations were duly organized under

that act.

-SOURCE-

(R.S. Sec. 5156.)

-REFTEXT-

REFERENCES IN TEXT

Title 62 of the Revised Statutes, referred to in text, was in the

original ''this Title'' meaning title LXII of the Revised Statutes,

consisting of R.S. Sec. 5133 to 5244, which are classified to

sections 21, 22 to 24a, 25a, 26, 27, 29, 35 to 37, 39, 43, 52, 53,

55 to 57, 59 to 62, 66, 71, 72 to 76, 81, 83 to 86, 90, 91, 93,

93a, 94, 141 to 144, 161, 164, 181, 182, 192 to 194, 196, 215c, 481

to 485, 501, 541, 548, and 582 of this title. See, also, sections

8, 333, 334, 475, 656, 709, 1004, and 1005 of Title 18, Crimes and

Criminal Procedure. For complete classification of R.S. Sec. 5133

to 5244 to the Code, see Tables.

Act of February 25, 1863, referred to in text, was act Feb. 25,

1863, ch. 58, 12 Stat. 665, which was the original National Bank

Act, and was repealed by act June 3, 1864, ch. 106, Sec. 62, 13

Stat. 118.

-COD-

CODIFICATION

R.S. Sec. 5156 derived from act June 3, 1864, ch. 106, Sec. 62,

13 Stat. 118, which was the National Bank Act. See section 38 of

this title.

-CITE-

12 USC Sec. 40 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER I - ORGANIZATION AND GENERAL PROVISIONS

-HEAD-

Sec. 40. Virgin Islands; extension of National Bank Act

-STATUTE-

The National Bank Act, as amended (12 U.S.C. 21 et seq.), and all

other Acts of Congress relating to national banks, shall, insofar

as not locally inapplicable after July 19, 1932, apply to the

Virgin Islands of the United States.

-SOURCE-

(July 19, 1932, ch. 508, 47 Stat. 703.)

-REFTEXT-

REFERENCES IN TEXT

The National Bank Act, referred to in text, is act June 3, 1864,

ch. 106, 13 Stat. 99, as amended, which is classified principally

to chapter 2 (Sec. 21 et seq.) of this title. For complete

classification of this Act to the Code, see References in Text note

set out under section 38 of this title.

-CITE-

12 USC Sec. 41 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER I - ORGANIZATION AND GENERAL PROVISIONS

-HEAD-

Sec. 41. Guam; extension of National Bank Act

-STATUTE-

The National Bank Act (12 U.S.C. 21 et seq.), and all other Acts

of Congress relating to national banks, shall, insofar as not

locally inapplicable after August 1, 1956, apply to Guam.

-SOURCE-

(Aug. 1, 1956, ch. 852, Sec. 2, 70 Stat. 908.)

-REFTEXT-

REFERENCES IN TEXT

The National Bank Act, referred to in text, is act June 3, 1864,

ch. 106, 13 Stat. 99, as amended, which is classified principally

to chapter 2 (Sec. 21 et seq.) of this title. For complete

classification of this Act to the Code, see References in Text note

set out under section 38 of this title.

-CITE-

12 USC Sec. 42 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER I - ORGANIZATION AND GENERAL PROVISIONS

-HEAD-

Sec. 42. Territorial application

-STATUTE-

The provisions of all Acts of Congress relating to national banks

shall apply in the several States, the District of Columbia, the

several Territories and possessions of the United States, and the

Commonwealth of Puerto Rico.

-SOURCE-

(Pub. L. 86-230, Sec. 14, Sept. 8, 1959, 73 Stat. 458.)

-CITE-

12 USC Sec. 43 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER I - ORGANIZATION AND GENERAL PROVISIONS

-HEAD-

Sec. 43. Interpretations concerning preemption of certain State

laws

-STATUTE-

(a) Notice and opportunity for comment required

Before issuing any opinion letter or interpretive rule, in

response to a request or upon the agency's own motion, that

concludes that Federal law preempts the application to a national

bank of any State law regarding community reinvestment, consumer

protection, fair lending, or the establishment of intrastate

branches, or before making a determination under section

36(f)(1)(A)(ii) of this title, the appropriate Federal banking

agency (as defined in section 1813 of this title) shall -

(1) publish in the Federal Register notice of the preemption or

discrimination issue that the agency is considering (including a

description of each State law at issue);

(2) give interested parties not less than 30 days in which to

submit written comments; and

(3) in developing the final opinion letter or interpretive rule

issued by the agency, or making any determination under section

36(f)(1)(A)(ii) of this title, consider any comments received.

(b) Publication required

The appropriate Federal banking agency shall publish in the

Federal Register -

(1) any final opinion letter or interpretive rule concluding

that Federal law preempts the application of any State law

regarding community reinvestment, consumer protection, fair

lending, or establishment of intrastate branches to a national

bank; and

(2) any determination under section 36(f)(1)(A)(ii) of this

title.

(c) Exceptions

(1) No new issue or significant basis

This section shall not apply with respect to any opinion letter

or interpretive rule that -

(A) raises issues of Federal preemption of State law that are

essentially identical to those previously resolved by the

courts or on which the agency has previously issued an opinion

letter or interpretive rule; or

(B) responds to a request that contains no significant legal

basis on which to make a preemption determination.

(2) Judicial, legislative, or intragovernmental materials

This section shall not apply with respect to materials prepared

for use in judicial proceedings or submission to Congress or a

Member of Congress, or for intragovernmental use.

(3) Emergency

The appropriate Federal banking agency may make exceptions to

subsection (a) of this section if -

(A) the agency determines in writing that the exception is

necessary to avoid a serious and imminent threat to the safety

and soundness of any national bank; or

(B) the opinion letter or interpretive rule is issued in

connection with -

(i) an acquisition of 1 or more banks in default or in

danger of default (as such terms are defined in section 1813

of this title); or

(ii) an acquisition with respect to which the Federal

Deposit Insurance Corporation provides assistance under

section 1823(c) of this title.

-SOURCE-

(R.S. Sec. 5244, as added Pub. L. 103-328, title I, Sec. 114, Sept.

29, 1994, 108 Stat. 2366.)

-COD-

CODIFICATION

Another R.S. Sec. 5244 is classified to section 8 of Title 33,

Navigation and Navigable Waters.

-CITE-

12 USC SUBCHAPTER II - CAPITAL, STOCK, AND STOCKHOLDERS 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER II - CAPITAL, STOCK, AND STOCKHOLDERS

.

-HEAD-

SUBCHAPTER II - CAPITAL, STOCK, AND STOCKHOLDERS

-CITE-

12 USC Sec. 51 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER II - CAPITAL, STOCK, AND STOCKHOLDERS

-HEAD-

Sec. 51. Repealed. Pub. L. 106-569, title XII, Sec. 1233(c), Dec.

27, 2000, 114 Stat. 3037

-MISC1-

Section, R.S. Sec. 5138; Mar. 14, 1900, ch. 41, Sec. 10, 31 Stat.

48; Feb. 25, 1927, ch. 191, Sec. 4, 44 Stat. 1227; June 16, 1933,

ch. 89, Sec. 17(a), 48 Stat. 185; Aug. 23, 1935, ch. 614, title

III, Sec. 309, 49 Stat. 709, related to capital and surplus

requirements.

-CITE-

12 USC Sec. 51a 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER II - CAPITAL, STOCK, AND STOCKHOLDERS

-HEAD-

Sec. 51a. Preferred stock; issuance authorized

-STATUTE-

Notwithstanding any other provision of law any national banking

association may, with the approval of the Comptroller of the

Currency and by vote of shareholders owning a majority of the stock

of such association, upon not less than five days' notice given by

registered mail or by certified mail pursuant to action taken by

its board of directors, issue preferred stock of one or more

classes, in such amount and with such par value as shall be

approved by said Comptroller, and make such amendments to its

articles of association as may be necessary for this purpose; but,

in the case of any newly organized national banking association

which has not yet issued common stock, the requirement of notice to

and vote of shareholders shall not apply. No issue of preferred

stock shall be valid until the par value of all stock so issued

shall be paid in and notice thereof, duly acknowledged before a

notary public by the president, vice president, or cashier of said

association, has been transmitted to the Comptroller of the

Currency and his certificate obtained specifying the amount of such

issue of preferred stock and his approval thereof and that the

amount has been duly paid in as a part of the capital of such

association; which certificate shall be deemed to be conclusive

evidence that such preferred stock has been duly and validly

issued.

-SOURCE-

(Mar. 9, 1933, ch. 1, title III, Sec. 301, 48 Stat. 5; June 15,

1933, ch. 79, 48 Stat. 147; Aug. 23, 1935, ch. 614, title III, Sec.

336, 49 Stat. 720; Pub. L. 86-507, Sec. 1(9), June 11, 1960, 74

Stat. 200.)

-MISC1-

AMENDMENTS

1960 - Pub. L. 86-507 inserted ''or by certified mail'' after

''registered mail''.

1935 - Act Aug. 23, 1935, amended last sentence generally.

1933 - Act June 15, 1933, struck out all of former section and

inserted a new section which incorporated all former provisions and

inserted ''of one or more classes,'' in first sentence.

-TRANS-

EXCEPTION AS TO TRANSFER OF FUNCTIONS

Functions vested by any provision of law in Comptroller of the

Currency, referred to in this section, not included in transfer of

functions to Secretary of the Treasury, see note set out under

section 1 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 51c, 212, 213 of this

title.

-CITE-

12 USC Sec. 51b 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER II - CAPITAL, STOCK, AND STOCKHOLDERS

-HEAD-

Sec. 51b. Dividends, voting, and retirement of preferred stock;

individual liability

-STATUTE-

(a) Notwithstanding any other provision of law, whether relating

to restriction upon the payment of dividends upon capital stock or

otherwise, the holders of such preferred stock shall be entitled to

receive such cumulative dividends and shall have such voting and

conversion rights and such control of management, and such stock

shall be subject to retirement in such manner and upon such

conditions, as may be provided in the articles of association with

the approval of the Comptroller of the Currency. The holders of

such preferred stock shall not be held individually responsible as

such holders for any debts, contracts, or engagements of such

association, and shall not be liable for assessments to restore

impairments in the capital of such association as now provided by

law with reference to holders of common stock.

(b) No dividends shall be declared or paid on common stock until

the cumulative dividends on the preferred stock shall have been

paid in full; and, if the association is placed in voluntary

liquidation or a conservator or a receiver is appointed therefor,

no payments shall be made to the holders of the common stock until

the holders of the preferred stock shall have been paid in full the

par value of such stock plus all accumulated dividends.

-SOURCE-

(Mar. 9, 1933, ch. 1, title III, Sec. 302, 48 Stat. 5; June 15,

1933, ch. 79, 48 Stat. 148; Pub. L. 96-221, title VII, Sec. 702,

Mar. 31, 1980, 94 Stat. 186.)

-MISC1-

AMENDMENTS

1980 - Subsec. (a). Pub. L. 96-221 struck out limitation on

payment of cumulative dividends at a rate not exceeding 6 per

centum per annum.

1933 - Subsec. (a). Act June 15, 1933, struck out former subsec.

(a) and inserted a new subsec. (a) which incorporated all former

provisions and inserted ''Notwithstanding any other provision of

law, whether relating to restriction upon the payment of dividends

upon capital stock or otherwise'' and ''and conversion rights,'' in

first sentence.

-TRANS-

EXCEPTION AS TO TRANSFER OF FUNCTIONS

Functions vested by any provision of law in Comptroller of the

Currency, referred to in this section, not included in transfer of

functions to Secretary of the Treasury, see note set out under

section 1 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 51c, 62, 212, 213 of this

title.

-CITE-

12 USC Sec. 51b-1 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER II - CAPITAL, STOCK, AND STOCKHOLDERS

-HEAD-

Sec. 51b-1. Consideration of preferred stock in determining

impairment of capital; dividends; retirement

-STATUTE-

If any part of the capital of a national bank, State member bank,

or bank applying for membership in the Federal Reserve System

consists of preferred stock, the determination of whether or not

the capital of such bank is impaired and the amount of such

impairment shall be based upon the par value of its stock even

though the amount which the holders of such preferred stock shall

be entitled to receive in the event of retirement or liquidation

shall be in excess of the par value of such preferred stock. If

any such bank or trust company shall have outstanding any capital

notes or debentures of the type which the Reconstruction Finance

Corporation is authorized to purchase pursuant to the provisions of

section 51d of this title, the capital of such bank may be deemed

to be unimpaired if the sound value of its assets is not less than

its total liabilities, including capital stock, but excluding such

capital notes or debentures and any obligations of the bank

expressly subordinated thereto. Notwithstanding any other

provision of law, the holders of preferred stock issued by a

national banking association pursuant to the provisions of the

Emergency Banking and Bank Conservation Act, approved March 9,

1933, as amended, shall be entitled to receive such cumulative

dividends on the purchase price received by the association for

such stock and, in the event of the retirement of such stock, to

receive such retirement price, not in excess of such purchase price

plus all accumulated dividends, as may be provided in the articles

of association with the approval of the Comptroller of the

Currency. If the association is placed in voluntary liquidation, or

if a conservator or a receiver is appointed therefor, no payment

shall be made to the holders of common stock until the holders of

preferred stock shall have been paid in full such amount as may be

provided in the articles of association with the approval of the

Comptroller of the Currency, not in excess of such purchase price

of such preferred stock plus all accumulated dividends.

-SOURCE-

(Aug. 23, 1935, ch. 614, title III, Sec. 345, 49 Stat. 722; Pub. L.

96-221, title VII, Sec. 703, Mar. 31, 1980, 94 Stat. 186.)

-REFTEXT-

REFERENCES IN TEXT

Section 51d of this title, referred to in text, which was section

304 of the Emergency Banking and Bank Conservation Act, approved

March 9, 1933, ch. 1, 48 Stat. 6, as amended, and which authorized

the Reconstruction Finance Corporation, upon the request of the

Secretary of the Treasury approved by the President, to purchase,

or to make loans upon, the capital stock of any bank or trust

company requiring funds for capital purposes in connection with its

organization or reorganization, and which made provision for the

purchase of the capital notes of banks organized in States which

subject holders of preferred stock to double liability and for the

sale of any stock or notes purchased under such authority, was

repealed by act June 30, 1947, ch. 166, title II, Sec. 206(b), (o),

61 Stat. 208. However, according to the information received from

the Department of the Treasury, the second sentence of this section

is not obsolete even though it contains such obsolete reference to

section 51d of this title, and even though, under 1957 Reorg. Plan

No. 1, eff. June 30, 1957, 22 F.R. 4633, 71 Stat. 647, set out in

the Appendix to Title 5, Government Organization and Employees, the

Reconstruction Finance Corporation was abolished, for many banks

have outstanding debentures which they obtained pursuant to the

provisions of section 51d, and which they are not required to

redeem; and their benefits or entitlements conferred by the second

sentence of this section will remain until the debentures are

redeemed.

The Emergency Banking and Bank Conservation Act, approved March

9, 1933, as amended, referred to in text, is act Mar. 9, 1933, ch.

1, 48 Stat. 1, as amended, which is classified to sections 51a,

51b, 51c, 51d, 95 to 95b, 201 to 212, 248, 347b, 347c, 347d, and

445 of this title and section 5 of Title 50, Appendix, War and

National Defense.

-MISC2-

AMENDMENTS

1980 - Pub. L. 96-221 struck out limitation on payment of

cumulative dividends at a rate not exceeding 6 per centum per

annum.

-TRANS-

EXCEPTION AS TO TRANSFER OF FUNCTIONS

Functions vested by any provision of law in Comptroller of the

Currency, referred to in this section, not included in transfer of

functions to Secretary of the Treasury, see note set out under

section 1 of this title.

-CITE-

12 USC Sec. 51c 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER II - CAPITAL, STOCK, AND STOCKHOLDERS

-HEAD-

Sec. 51c. ''Common stock'', ''capital'', and ''capital stock''

defined

-STATUTE-

The term ''common stock'' as used in sections 51a, 51b, 51c, and

51d (FOOTNOTE 1) of this title means stock of national banking

associations other than preferred stock issued under the provisions

of said sections. The term ''capital'' as used in provisions of

law relating to the capital of national banking associations shall

mean the amount of unimpaired common stock plus the amount of

preferred stock outstanding and unimpaired; and the term ''capital

stock'', as used in sections 101, 177, and 178 (FOOTNOTE 1) of this

title, shall mean only the amount of common stock outstanding.

(FOOTNOTE 1) See References in Text note below.

-SOURCE-

(Mar. 9, 1933, ch. 1, title III, Sec. 303, 48 Stat. 5.)

-REFTEXT-

REFERENCES IN TEXT

Section 51d of this title, referred to in text, was repealed by

act June 30, 1947, ch. 166, title II, Sec. 206(b), (o), 61 Stat.

208. For effect of the repeal on outstanding debentures held by

banks, see note under section 51b-1 of this title.

Sections 101, 177, and 178 of this title, referred to in text,

were repealed by Pub. L. 103-325, title VI, Sec. 602(f)(2), (5),

Sept. 23, 1994, 108 Stat. 2292, 2293.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 212, 213 of this title.

-CITE-

12 USC Sec. 51d to 51f 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER II - CAPITAL, STOCK, AND STOCKHOLDERS

-HEAD-

Sec. 51d to 51f. Repealed. June 30, 1947, ch. 166, title II, Sec.

206(b), (o), 61 Stat. 208

-MISC1-

Section 51d, acts Mar. 9, 1933, ch. 1, title III, Sec. 304, 48

Stat. 6; Mar. 24, 1933, ch. 8, Sec. 2, 48 Stat. 21; Mar. 20, 1936,

ch. 160, Sec. 1, 49 Stat. 1185; June 25, 1940, ch. 427, Sec. 1, 54

Stat. 572, related to subscription for and sale of preferred stock

in banks by the Reconstruction Finance Corporation.

Sections 51e and 51f, act Mar. 20, 1936, ch. 160, Sec. 2, 3, 49

Stat. 1185, related to rate of interest on loans and separability

provisions.

-CITE-

12 USC Sec. 52 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER II - CAPITAL, STOCK, AND STOCKHOLDERS

-HEAD-

Sec. 52. Par value and incidents of stock; transfer of shares

-STATUTE-

The capital stock of each association shall be divided into

shares of $100 each, or into shares of such less amount as may be

provided in the articles of association, and be deemed personal

property, and transferable on the books of the association in such

manner as may be prescribed in the by-laws or articles of

association. Every person becoming a shareholder by such transfer

shall, in proportion to his shares, succeed to all rights and

liabilities of the prior holder of such shares; and no change shall

be made in the articles of association by which the rights,

remedies, or security of the existing creditors of the association

shall be impaired.

Certificates issued after August 23, 1935, representing shares of

stock of the association shall state (1) the name and location of

the association, (2) the name of the holder of record of the stock

represented thereby, (3) the number and class of shares which the

certificate represents, and (4) if the association shall issue

stock of more than one class, the respective rights, preferences,

privileges, voting rights, powers, restrictions, limitations, and

qualifications of each class of stock issued shall be stated in

full or in summary upon the front or back of the certificates or

shall be incorporated by a reference to the articles of association

set forth on the front of the certificates. Every certificate

shall be signed by the president and the cashier of the

association, or by such other officers as the bylaws of the

association shall provide, and shall be sealed with the seal of the

association.

After August 23, 1935, no certificate evidencing the stock of any

such association shall bear any statement purporting to represent

the stock of any other corporation, except a member bank or a

corporation engaged on June 16, 1934, in holding the bank premises

of such association, nor shall the ownership, sale, or transfer of

any certificate representing the stock of any such association be

conditioned in any manner whatsoever upon the ownership, sale, or

transfer of a certificate representing the stock of any other

corporation, except a member bank or a corporation engaged on June

16, 1934 in holding the bank premises of such association:

Provided, That this section shall not operate to prevent the

ownership, sale, or transfer of stock of any other corporation

being conditioned upon the ownership, sale, or transfer of a

certificate representing stock of a national banking association.

-SOURCE-

(R.S. Sec. 5139; Feb. 25, 1927, ch. 191, Sec. 16, 44 Stat. 1233;

June 16, 1933, ch. 89, Sec. 18, 48 Stat. 186; Aug. 23, 1935, ch.

614, title III, Sec. 310(a), 335, 49 Stat. 710, 720.)

-COD-

CODIFICATION

R.S. Sec. 5139 derived from act June 3, 1864, ch. 106, Sec. 12,

13 Stat. 102, which was the National Bank Act. See section 38 of

this title.

-MISC3-

AMENDMENTS

1935 - Act Aug. 23, 1935, Sec. 335, added second par.

Act Aug. 23, 1935, Sec. 310(a), among other changes in last par.,

inserted proviso.

1933 - Act June 16, 1933, added last par.

1927 - Act Feb. 25, 1927, inserted ''or into shares of such less

amount as may be provided in the articles of association'' in first

sentence.

-CITE-

12 USC Sec. 53 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER II - CAPITAL, STOCK, AND STOCKHOLDERS

-HEAD-

Sec. 53. When capital stock paid in

-STATUTE-

All of the capital stock of every national banking association

shall be paid in before it shall be authorized to commence

business.

-SOURCE-

(R.S. Sec. 5140; Pub. L. 86-230, Sec. 4, Sept. 8, 1959, 73 Stat.

457.)

-COD-

CODIFICATION

R.S. Sec. 5140 derived from act June 3, 1864, ch. 106, Sec. 14,

13 Stat. 103, which was the National Bank Act. See section 38 of

this title.

-MISC3-

AMENDMENTS

1959 - Pub. L. 86-230 substituted requirement that all the

capital stock of a national bank must be paid in before it

commences business for permissive authority to be open for business

upon payment of 50 per centum of the capital stock and installment

payment of the remaining 50 per centum.

-CITE-

12 USC Sec. 54 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER II - CAPITAL, STOCK, AND STOCKHOLDERS

-HEAD-

Sec. 54. Repealed. Pub. L. 86-230, Sec. 5, Sept. 8, 1959, 73 Stat.

457

-MISC1-

Section, R.S. Sec. 5141, related to failure to pay installments,

remedy and effect if reduction of capital resulted.

-CITE-

12 USC Sec. 55 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER II - CAPITAL, STOCK, AND STOCKHOLDERS

-HEAD-

Sec. 55. Enforcing payment of deficiency in capital stock;

assessments; liquidation; receivership

-STATUTE-

Every association which shall have failed to pay up its capital

stock, as required by law, and every association whose capital

stock shall have become impaired by losses or otherwise, shall,

within three months after receiving notice thereof from the

Comptroller of the Currency, pay the deficiency in the capital

stock, by assessment upon the shareholders pro rata for the amount

of capital stock held by each; and the Treasurer of the United

States shall withhold the interest upon all bonds held by him in

trust for any such association, upon notification from the

Comptroller of the Currency, until otherwise notified by him. If

any such association shall fail to pay up its capital stock, and

shall refuse to go into liquidation, as provided by law, for three

months after receiving notice from the comptroller, a receiver may

be appointed to close up the business of the association, according

to the provisions of section 192 of this title. And provided, That

if any shareholder or shareholders of such bank shall neglect or

refuse, after three months' notice to pay the assessment, as

provided in this section, it shall be the duty of the board of

directors to cause a sufficient amount of the capital stock of such

shareholder or shareholders to be sold at public auction (after

thirty days' notice shall be given by posting such notice of sale

in the office of the bank, and by publishing such notice in a

newspaper of the city or town in which the bank is located, or in a

newspaper published nearest thereto), to make good the deficiency,

and the balance, if any, shall be returned to such delinquent

shareholder or shareholders.

-SOURCE-

(R.S. Sec. 5205; June 30, 1876, ch. 156, Sec. 4, 19 Stat. 64.)

-COD-

CODIFICATION

R.S. Sec. 5205 derived from act Mar. 3, 1873, ch. 269, Sec. 1, 17

Stat. 603.

-TRANS-

EXCEPTION AS TO TRANSFER OF FUNCTIONS

Functions vested by any provision of law in Comptroller of the

Currency, referred to in this section, not included in transfer of

functions to Secretary of the Treasury, see note set out under

section 1 of this title.

-MISC5-

APPLICATION TO DISTRICT OF COLUMBIA

Provisions of this section were made applicable to banks, etc.,

in the District of Columbia by act Mar. 4, 1933, ch. 274, Sec. 4,

47 Stat. 1567.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 197 of this title.

-CITE-

12 USC Sec. 56 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER II - CAPITAL, STOCK, AND STOCKHOLDERS

-HEAD-

Sec. 56. Prohibition on withdrawal of capital; unearned dividends

-STATUTE-

No association, or any member thereof, shall, during the time it

shall continue its banking operations, withdraw, or permit to be

withdrawn, either in the form of dividends or otherwise, any

portion of its capital. If losses have at any time been sustained

by any such association, equal to or exceeding its undivided

profits then on hand, no dividend shall be made; and no dividend

shall ever be made by any association, while it continues its

banking operations, to an amount greater than its undivided

profits, subject to other applicable provisions of law. But

nothing in this section shall prevent the reduction of the capital

stock of the association under section 59 of this title.

-SOURCE-

(R.S. Sec. 5204; Pub. L. 103-325, title VI, Sec. 602(h)(1), Sept.

23, 1994, 108 Stat. 2294.)

-COD-

CODIFICATION

R.S. Sec. 5204 derived from act June 3, 1864, ch. 106, Sec. 38,

13 Stat. 110, which was the National Bank Act. See section 38 of

this title.

-MISC3-

AMENDMENTS

1994 - Pub. L. 103-325 substituted ''undivided profits, subject

to other applicable provisions of law'' for ''net profits then on

hand, deducting therefrom its losses and bad debts'' in second

sentence and struck out after second sentence ''All debts due to

any associations, on which interest is past due and unpaid for a

period of six months, unless the same are well secured, and in

process of collection, shall be considered bad debts within the

meaning of this section.''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 324 of this title.

-CITE-

12 USC Sec. 57 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER II - CAPITAL, STOCK, AND STOCKHOLDERS

-HEAD-

Sec. 57. Increase of capital by provision in articles of

association

-STATUTE-

Any national banking association may, with the approval of the

Comptroller of the Currency, and by a vote of shareholders owning

two-thirds of the stock of such associations, increase its capital

stock to any sum approved by the said comptroller, but no increase

in capital shall be valid until the whole amount of such increase

is paid in and notice thereof, duly acknowledged before a notary

public by the president, vice president, or cashier of said

association, has been transmitted to the Comptroller of the

Currency and his certificate obtained specifying the amount of such

increase in capital stock and his approval thereof, and that it has

been duly paid in as part of the capital of such association:

Provided, however, That a national banking association may, with

the approval of the Comptroller of the Currency, and by the vote of

shareholders owning two-thirds of the stock of such association,

increase its capital stock by the declaration of a stock dividend,

provided that the surplus of said association, after the approval

of the increase, shall be at least equal to 20 per centum of the

capital stock as increased. Such increase shall not be effective

until a certificate certifying to such declaration of dividend,

signed by the president, vice president, or cashier of said

association and duly acknowledged before a notary public, shall

have been forwarded to the Comptroller of the Currency and his

certificate obtained specifying the amount of such increase of

capital stock by stock dividend, and his approval thereof.

-SOURCE-

(R.S. Sec. 5142; Feb. 25, 1927, ch. 191, Sec. 5, 44 Stat. 1227.)

-COD-

CODIFICATION

R.S. Sec. 5142 derived from act June 3, 1864, ch. 106, Sec. 13,

13 Stat. 103, which was the National Bank Act. See section 38 of

this title.

-MISC3-

AMENDMENTS

1927 - Act Feb. 25, 1927, among other changes, inserted proviso.

-TRANS-

EXCEPTION AS TO TRANSFER OF FUNCTIONS

Functions vested by any provision of law in Comptroller of the

Currency, referred to in this section, not included in transfer of

functions to Secretary of the Treasury, see note set out under

section 1 of this title.

-CITE-

12 USC Sec. 58 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER II - CAPITAL, STOCK, AND STOCKHOLDERS

-HEAD-

Sec. 58. Repealed. Pub. L. 86-230, Sec. 6, Sept. 8, 1959, 73 Stat.

457

-MISC1-

Section, act May 1, 1886, ch. 73, Sec. 1, 24 Stat. 18, related to

increase of capital by vote of shareholders. See section 57 of

this title.

-CITE-

12 USC Sec. 59 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER II - CAPITAL, STOCK, AND STOCKHOLDERS

-HEAD-

Sec. 59. Reduction of capital by vote of shareholders

-STATUTE-

Any association formed under title 62 of the Revised Statutes

may, by the vote of shareholders owning two-thirds of its capital

stock, reduce its capital to any sum not below the amount required

by title 62 of the Revised Statutes to authorize the formation of

associations; but no such reduction shall be allowable which will

reduce the capital of the association below the amount required for

its outstanding circulation, nor shall any reduction be made until

the amount of the proposed reduction has been reported to the

Comptroller of the Currency and such reduction has been approved by

said Comptroller of the Currency and no shareholder shall be

entitled to any distribution of cash or other assets by reason of

any reduction of the common capital of any association unless such

distribution shall have been approved by the Comptroller of the

Currency and by the affirmative vote of at least two-thirds of the

shares of each class of stock outstanding, voting as classes.

-SOURCE-

(R.S. Sec. 5143; Dec. 23, 1913, ch. 6, Sec. 28, 38 Stat. 274; Aug.

23, 1935, ch. 614, title III, Sec. 334, 49 Stat. 720.)

-REFTEXT-

REFERENCES IN TEXT

Title 62 of the Revised Statutes, referred to in text, was in the

original ''this Title'' meaning title LXII of the Revised Statutes,

consisting of R.S. Sec. 5133 to 5244, which are classified to

sections 21, 22 to 24a, 25a, 26, 27, 29, 35 to 37, 39, 43, 52, 53,

55 to 57, 59 to 62, 66, 71, 72 to 76, 81, 83 to 86, 90, 91, 93,

93a, 94, 141 to 144, 161, 164, 181, 182, 192 to 194, 196, 215c, 481

to 485, 501, 541, 548, and 582 of this title. See, also, sections

8, 333, 334, 475, 656, 709, 1004, and 1005 of Title 18, Crimes and

Criminal Procedure. For complete classification of R.S. Sec. 5133

to 5244 to the Code, see Tables.

-COD-

CODIFICATION

R.S. Sec. 5143 derived from act June 3, 1864, ch. 106, Sec. 13,

13 Stat. 103, which was the National Bank Act. See section 38 of

this title.

-MISC3-

AMENDMENTS

1935 - Act Aug. 23, 1935, substituted ''and no shareholder shall

be entitled to any distribution of cash or other assets by reason

of any reduction of the common capital of any association unless

such distribution shall have been approved by the Comptroller of

the Currency and by the affirmative vote of at least two-thirds of

the shares of each class of stock outstanding, voting as classes''

for ''and by the Federal Reserve Board or by the organization

committee pending the organization of the Federal Reserve Board''.

-TRANS-

EXCEPTION AS TO TRANSFER OF FUNCTIONS

Functions vested by any provision of law in Comptroller of the

Currency, referred to in this section, not included in transfer of

functions to Secretary of the Treasury, see note set out under

section 1 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 56 of this title.

-CITE-

12 USC Sec. 60 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER II - CAPITAL, STOCK, AND STOCKHOLDERS

-HEAD-

Sec. 60. Dividends

-STATUTE-

(a) Periodic declaration; surplus fund

The directors of any national banking association may, quarterly,

semiannually or annually, declare a dividend of so much of the

undivided profits of the association, subject to the limitations in

subsection (b) of this section, as they shall judge expedient,

except that until the surplus fund of such association shall equal

its common capital, no dividends shall be declared unless there has

been carried to the surplus fund not less than one-tenth part of

the association's net income of the preceding half year in the case

of quarterly or semiannual dividends, or not less than one-tenth

part of its net income of the preceding two consecutive half-year

periods in the case of annual dividends: Provided, That for the

purposes of this section, any amounts paid into a fund for the

retirement of any preferred stock of any such association out of

its net income for such period or periods shall be deemed to be

additions to its surplus fund if, upon the retirement of such

preferred stock, the amounts so paid into such retirement fund may

then properly be carried to surplus. In any such case the

association shall be obligated to transfer to surplus the amounts

so paid into such retirement fund on account of the preferred stock

as such stock is retired.

(b) Approval of Comptroller

The approval of the Comptroller of the Currency shall be required

if the total of all dividends declared by such association in any

calendar year shall exceed the total of its net income of that year

combined with its retained net income of the preceding two years,

less any required transfers to surplus or a fund for the retirement

of any preferred stock.

-SOURCE-

(R.S. Sec. 5199; Aug. 23, 1935, ch. 614, title III, Sec. 315, 49

Stat. 712; Pub. L. 86-230, Sec. 21(a), Sept. 8, 1959, 73 Stat. 465;

Pub. L. 103-325, title VI, Sec. 602(h)(2), Sept. 23, 1994, 108

Stat. 2294.)

-COD-

CODIFICATION

R.S. Sec. 5199 derived from act June 3, 1864, ch. 106, Sec. 33,

13 Stat. 109, which was the National Bank Act. See section 38 of

this title.

-MISC3-

AMENDMENTS

1994 - Subsec. (a). Pub. L. 103-325, Sec. 602(h)(2)(A), (B),

substituted ''undivided profits of the association, subject to the

limitations in subsection (b) of this section,'' for ''net profits

of the association'' in first sentence and ''net income'' for ''net

profits'' wherever subsequently appearing.

Subsec. (b). Pub. L. 103-325, Sec. 602(h)(2)(B), substituted

''net income'' for ''net profits'' in two places.

Subsec. (c). Pub. L. 103-325, Sec. 602(h)(2)(C), struck out

subsec. (c) which read as follows: ''For the purpose of this

section the term 'net profits' shall mean the remainder of all

earnings from current operations plus actual recoveries on loans

and investments and other assets, after deducting from the total

thereof all current operating expenses, actual losses, accrued

dividends on preferred stock, if any, and all Federal and State

taxes.''

1959 - Pub. L. 86-230 designated existing provisions as subsec.

(a), authorized the declaration of dividends, quarterly and

annually, when at least one-tenth of the bank's net profits of the

preceding half year or of the preceding two consecutive half-year

periods has been carried to the surplus fund, respectively, and

added subsecs. (b) and (c).

1935 - Act Aug. 23, 1935, among other changes, inserted proviso.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 324 of this title.

-CITE-

12 USC Sec. 61 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER II - CAPITAL, STOCK, AND STOCKHOLDERS

-HEAD-

Sec. 61. Shareholders' voting rights; cumulative and distributive

voting; preferred stock; trust shares; proxies, liability

restrictions; percentage requirement exclusion of trust shares

-STATUTE-

In all elections of directors, each shareholder shall have the

right to vote the number of shares owned by him for as many persons

as there are directors to be elected, or to cumulate such shares

and give one candidate as many votes as the number of directors

multiplied by the number of his shares shall equal, or to

distribute them on the same principle among as many candidates as

he shall think fit; and in deciding all other questions at meetings

of shareholders, each shareholder shall be entitled to one vote on

each share of stock held by him; except that (1) this shall not be

construed as limiting the voting rights of holders of preferred

stock under the terms and provisions of articles of association, or

amendments thereto, adopted pursuant to the provisions of section

51b of this title; (2) in the election of directors, shares of its

own stock held by a national bank as sole trustee, whether

registered in its own name as such trustee or in the name of its

nominee, shall not be voted by the registered owner unless under

the terms of the trust the manner in which such shares shall be

voted may be determined by a donor or beneficiary of the trust and

unless such donor or beneficiary actually directs how such shares

shall be voted; and (3) shares of its own stock held by a national

bank and one or more persons as trustees may be voted by such other

person or persons, as trustees, in the same manner as if he or they

were the sole trustee. Shareholders may vote by proxies duly

authorized in writing; but no officer, clerk, teller, or bookkeeper

of such bank shall act as proxy; and no shareholder whose liability

is past due and unpaid shall be allowed to vote. Whenever shares

of stock cannot be voted by reason of being held by the bank as

sole trustee such shares shall be excluded in determining whether

matters voted upon by the shareholders were adopted by the

requisite percentage of shares.

-SOURCE-

(R.S. Sec. 5144; June 16, 1933, ch. 89, Sec. 19, 48 Stat. 186; Aug.

23, 1935, ch. 614, title III, Sec. 311, 49 Stat. 710; Sept. 3,

1954, ch. 1263, Sec. 21, 68 Stat. 1234; Pub. L. 86-114, Sec. 4,

July 28, 1959, 73 Stat. 264; Pub. L. 89-485, Sec. 13(c), July 1,

1966, 80 Stat. 242.)

-COD-

CODIFICATION

R.S. Sec. 5144 derived from act June 3, 1864, ch. 106, Sec. 11,

13 Stat. 102, which was the National Bank Act. See section 38 of

this title.

-MISC3-

AMENDMENTS

1966 - Pub. L. 89-485 struck out: clause (4) requirement of a

voting permit from the Board for voting shares controlled by a

holding company affiliate of a national bank except when voting in

favor of voluntary liquidation of an association; second par.

definition of control of shares by a holding company affiliate;

third par, prescribing procedure for obtaining a voting permit:

application to Board, grant or denial of permit in the public

interest, factors for consideration, and conditions described in

subsecs. (a) to (e) for granting a permit; subsec. (a) requirement

of agreement of the holding company affiliate to an examination of

the affiliate by bank examiners, reports by such examiners,

examination of affiliated banks, and publication of individual or

consolidated statements of condition of such banks; subsec. (b)

provisions for possession of readily marketable assets other than

bank stock and reinvestment of a prescribed amount of net earnings

in such assets; subsec. (c) provisions for reserve of assets, use

of assets for capital replacement, and situations involving more

than one holding company affiliate; subsec. (d) provisions for

penalties for false entries; subsec. (e) requirements for

disclosure in application of a absence of securities company status

and for declaration of dividends out of net earnings; penultimate

par. prescribing procedure for revocation of voting permit and

prohibiting the use of the bank as a depositary for public moneys

of the United States and payment of dividends to the affiliate; and

last par. authorization for forfeiture of rights, privileges, and

franchises of national banks.

1959 - Subsec. (c). Pub. L. 86-114 authorized the Board to

designate one of the chain of holding company affiliates which

would have to maintain the 12 percent reserve and exempted the

other holding company affiliates from the requirement.

1954 - Subsec. (d). Act Sept. 3, 1954, substituted ''section 1005

of Title 18'' for ''section 592 of this title''.

1935 - Act Aug. 23, 1935, amended first par., first sentence of

third par., and inserted ''and the provisions of this subsection,

instead of subsection (b), shall apply to all holding company

affiliates with respect to any shares of bank stock owned or

controlled by them as to which there is no statutory liability

imposed upon the holders of such bank stock'' at end of subsec.

(c).

1933 - Act June 16, 1933, inserted provisions for cumulative

voting of shares or distribution of votes on a cumulative voting

principle, prohibited national banks holding their own shares as

sole trustee from voting such shares but permitted such shares to

be voted when held by another person or persons as trustees with

the bank, denied voting rights to shares controlled by a holding

company affiliate of a national bank unless a voting permit was

first obtained, provided for application for a voting permit to the

Federal Reserve Board, specified conditions for granting the voting

permit and procedure for its revocation, and authorized the

forfeiture of a National Bank's rights, privileges, and franchises

upon such revocation.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in title 26 section 601.

-CITE-

12 USC Sec. 62 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER II - CAPITAL, STOCK, AND STOCKHOLDERS

-HEAD-

Sec. 62. List of shareholders

-STATUTE-

The president and cashier of every national banking association

shall cause to be kept at all times a full and correct list of the

names and residences of all the shareholders in the association,

and the number of shares held by each, in the office where its

business is transacted. Such list shall be subject to the

inspection of all the shareholders and creditors of the

association, and the officers authorized to assess taxes under

State authority, during business hours of each day in which

business may be legally transacted. A copy of such list, verified

by the oath of such president or cashier, shall be transmitted to

the Comptroller of the Currency within ten days of any demand

therefor made by him.

-SOURCE-

(R.S. Sec. 5210; May 18, 1953, ch. 59, Sec. 1, 67 Stat. 27.)

-COD-

CODIFICATION

R.S. Sec. 5210 derived from act June 3, 1864, ch. 106, Sec. 40,

13 Stat. 111, which was the National Bank Act. See section 38 of

this title.

-MISC3-

AMENDMENTS

1953 - Act May 18, 1953, changed the requirement for annual

transmission of a copy of the shareholders list to the Comptroller

of the Currency by authorizing the Comptroller to acquire such copy

at any time on 10 days' notice.

-TRANS-

EXCEPTION AS TO TRANSFER OF FUNCTIONS

Functions vested by any provision of law in Comptroller of the

Currency, referred to in this section, not included in transfer of

functions to Secretary of the Treasury, see note set out under

section 1 of this title.

-MISC5-

APPLICATION TO DISTRICT OF COLUMBIA

Provisions of this section were made applicable to banks, etc.,

in the District of Columbia by act Mar. 4, 1933, ch. 274, Sec. 4,

47 Stat. 1567.

-CITE-

12 USC Sec. 63, 64 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER II - CAPITAL, STOCK, AND STOCKHOLDERS

-HEAD-

Sec. 63, 64. Repealed. Pub. L. 86-230, Sec. 7, Sept. 8, 1959, 73

Stat. 457

-MISC1-

Section 63, R.S. Sec. 5151, related to individual liability of

shareholders.

Section 64, act Dec. 23, 1913, ch. 6, Sec. 23, 38 Stat. 273,

related to transfer of shares as affecting individual liability of

shareholders. Limitation on liability of shareholders, see section

64a of this title.

The status of former section 63 of this title had been doubtful.

At different times it had been held to have been repealed,

superseded, and superseded only in part by former section 64 of

this title which related to the same subject. See American T. Co.

v. Grut, C.C.A. 1935, 80 F.2d 155; Miller v. Hamner, C.C.A. 1920,

269 F. 891; and First Nat. Bank v. First Nat. Bank, D.C. 1926, 14

F.2d 129.

-CITE-

12 USC Sec. 64a 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER II - CAPITAL, STOCK, AND STOCKHOLDERS

-HEAD-

Sec. 64a. Individual liability of shareholders; limitation on

liability

-STATUTE-

The additional liability imposed upon shareholders in national

banking associations by the provisions of sections 63 and 64 of

this title shall not apply with respect to shares in any such

association issued after June 16, 1933. Such additional liability

shall cease on July 1, 1937, with respect to all shares issued by

any association which shall be transacting the business of banking

on July 1, 1937: Provided, That not less than six months prior to

such date, such association shall have caused notice of such

prospective termination of liability to be published in a newspaper

published in the city, town, or county in which such association is

located, and if no newspaper is published in such city, town, or

county, then in a newspaper of general circulation therein. If the

association fail (FOOTNOTE 1) to give such notice as and when above

provided, a termination of such additional liability may thereafter

be accomplished as of the date six month (FOOTNOTE 2) subsequent to

publication, in the manner above provided. In the case of each

association which has not caused notice of such prospective

termination of liability to be published prior to May 18, 1953, the

Comptroller of the Currency shall cause such notice to be published

in the manner provided in this section, and on the date six months

subsequent to such publication by the Comptroller of the Currency

such additional liability shall cease.

(FOOTNOTE 1) So in original. Probably should be ''fails''.

(FOOTNOTE 2) So in original. Probably should be ''months''.

-SOURCE-

(June 16, 1933, ch. 89, Sec. 22, 48 Stat. 189; Aug. 23, 1935, ch.

614, title III, Sec. 304, 49 Stat. 708; May 18, 1953, ch. 59, Sec.

2, 67 Stat. 27.)

-REFTEXT-

REFERENCES IN TEXT

Sections 63 and 64 of this title, referred to in text, were

repealed by Pub. L. 86-230, Sec. 7, Sept. 8, 1959, 73 Stat. 457.

-MISC2-

AMENDMENTS

1953 - Act May 18, 1953, provided for termination of the

additional liability, referred to in the section, by action of the

Comptroller of the Currency with regard to those associations which

had not, prior to May 18, 1953, caused notice of termination to be

published.

1935 - Act Aug. 23, 1935, added second and third sentences.

-TRANS-

EXCEPTION AS TO TRANSFER OF FUNCTIONS

Functions vested by any provision of law in Comptroller of the

Currency, referred to in this section, not included in transfer of

functions to Secretary of the Treasury, see note set out under

section 1 of this title.

-CITE-

12 USC Sec. 65 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER II - CAPITAL, STOCK, AND STOCKHOLDERS

-HEAD-

Sec. 65. Repealed. Pub. L. 86-230, Sec. 8, Sept. 8, 1959, 73 Stat.

457

-MISC1-

Section, acts June 30, 1876, ch. 156, Sec. 2, 19 Stat. 63; Sept.

3, 1954, ch. 1263, Sec. 22, 68 Stat. 1234, related to enforcement

of shareholders' individual liability by creditors on liquidation.

Limitation on liability of shareholders, see section 64a of this

title.

-CITE-

12 USC Sec. 66 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER II - CAPITAL, STOCK, AND STOCKHOLDERS

-HEAD-

Sec. 66. Personal liability of representatives of stockholders

-STATUTE-

Persons holding stock as executors, administrators, guardians, or

trustees, shall not be personally subject to any liabilities as

stockholders; but the estates and funds in their hands shall be

liable in like manner and to the same extent as the testator,

intestate, ward, or person interested in such trust funds would be,

if living and competent to act and hold the stock in his own name.

-SOURCE-

(R.S. Sec. 5152.)

-COD-

CODIFICATION

R.S. Sec. 5152 derived from act June 3, 1864, ch. 106, Sec. 63,

13 Stat. 118, which was the National Bank Act. See section 38 of

this title.

-CITE-

12 USC Sec. 67 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER II - CAPITAL, STOCK, AND STOCKHOLDERS

-HEAD-

Sec. 67. Individual liability of shareholders; compromises;

authority of receiver

-STATUTE-

Any receiver of a national banking association is authorized,

with the approval of the Comptroller of the Currency and upon the

order of a court of record of competent jurisdiction, to

compromise, either before or after judgment, the individual

liability of any shareholder of such association.

-SOURCE-

(Feb. 25, 1930, ch. 58, 46 Stat. 74.)

-TRANS-

EXCEPTION AS TO TRANSFER OF FUNCTIONS

Functions vested by any provision of law in Comptroller of the

Currency, referred to in this section, not included in transfer to

Secretary of the Treasury, see note set out under section 1 of this

title.

-MISC5-

APPLICATION TO DISTRICT OF COLUMBIA

Provisions of this section were made applicable to banks, etc.,

in the District of Columbia by act Mar. 4, 1933, ch. 274, Sec. 4,

47 Stat. 1567.

-CITE-

12 USC SUBCHAPTER III - DIRECTORS 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER III - DIRECTORS

.

-HEAD-

SUBCHAPTER III - DIRECTORS

-CITE-

12 USC Sec. 71 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER III - DIRECTORS

-HEAD-

Sec. 71. Election

-STATUTE-

The affairs of each association shall be managed by not less than

five directors, who shall be elected by the shareholders at a

meeting to be held at any time before the association is authorized

by the Comptroller of the Currency to commence the business of

banking; and afterward at meetings to be held on such day of each

year as is specified therefor in the bylaws. The directors shall

hold office for a period of not more than 3 years, and until their

successors are elected and have qualified. In accordance with

regulations issued by the Comptroller of the Currency, a national

bank may adopt bylaws that provide for staggering the terms of its

directors.

-SOURCE-

(R.S. Sec. 5145; Pub. L. 88-232, Sec. 1, Dec. 23, 1963, 77 Stat.

472; Pub. L. 106-569, title XII, Sec. 1205(a), Dec. 27, 2000, 114

Stat. 3033.)

-COD-

CODIFICATION

R.S. Sec. 5145 derived from act June 3, 1864, ch. 106, Sec. 9,

10, 13 Stat. 102, which was the National Bank Act. See section 38

of this title.

-MISC3-

AMENDMENTS

2000 - Pub. L. 106-569 substituted ''for a period of not more

than 3 years'' for ''for one year'' and inserted at end ''In

accordance with regulations issued by the Comptroller of the

Currency, a national bank may adopt bylaws that provide for

staggering the terms of its directors.''

1963 - Pub. L. 88-232 substituted ''on such day of each year as

is specified therefor in the bylaws'' for ''on such day in January

of each year as is specified therefor in the articles of

association''.

-TRANS-

EXCEPTION AS TO TRANSFER OF FUNCTIONS

Functions vested by any provision of law in Comptroller of the

Currency, referred to in this section, not included in transfer of

functions to Secretary of the Treasury, see note set out under

section 1 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1821 of this title.

-CITE-

12 USC Sec. 71a 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER III - DIRECTORS

-HEAD-

Sec. 71a. Number of directors; penalties

-STATUTE-

After one year from June 16, 1933, notwithstanding any other

provision of law, the board of directors, board of trustees, or

other similar governing body of every national banking association

and of every State bank or trust company which is a member of the

Federal Reserve System shall consist of not less than five nor more

than twenty-five members, except that the Comptroller of the

Currency may, by regulation or order, exempt a national bank from

the 25-member limit established by this section. If any national

banking association violates the provisions of this section and

continues such violation after thirty days' notice from the

Comptroller of the Currency, the said Comptroller may appoint a

receiver or conservator therefor, in accordance with the provisions

of existing law. If any State bank or trust company which is a

member of the Federal Reserve System violates the provisions of

this section and continues such violation after thirty days' notice

from the Board of Governors of the Federal Reserve System, it shall

be subject to the forfeiture of its membership in the Federal

Reserve System in accordance with the provisions of section 327 of

this title.

-SOURCE-

(June 16, 1933, ch. 89, Sec. 31, 48 Stat. 194; June 16, 1934, ch.

546, Sec. 4, 48 Stat. 971; Aug. 23, 1935, ch. 614, title II, Sec.

203(a), title III, Sec. 306, 49 Stat. 704, 708; Pub. L. 106-569,

title XII, Sec. 1205(b), Dec. 27, 2000, 114 Stat. 3034.)

-MISC1-

AMENDMENTS

2000 - Pub. L. 106-569 inserted before period at end of first

sentence '', except that the Comptroller of the Currency may, by

regulation or order, exempt a national bank from the 25-member

limit established by this section''.

1935 - Act June 16, 1934, as amended by act Aug. 23, 1935, Sec.

306, repealed a former provision of this section relating to stock

ownership requirements of directors, trustees, or members of

similar governing bodies of any national banking association, or of

any State bank or trust company which is a member of the Federal

Reserve System.

1934 - Act June 16, 1934, repealed a former provision of this

section relating to stock ownership requirements of directors,

trustees, or members of similar governing bodies of member banks of

the Federal Reserve System.

-CHANGE-

CHANGE OF NAME

Section 203(a) of act Aug. 23, 1935, changed name of Federal

Reserve Board to Board of Governors of the Federal Reserve System.

-TRANS-

EXCEPTION AS TO TRANSFER OF FUNCTIONS

Functions vested by any provision of law in Comptroller of the

Currency, referred to in this section, not included in transfer of

functions to Secretary of the Treasury, see note set out under

section 1 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1821 of this title.

-CITE-

12 USC Sec. 72 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER III - DIRECTORS

-HEAD-

Sec. 72. Qualifications

-STATUTE-

Every director must, during his whole term of service, be a

citizen of the United States, and at least a majority of the

directors must have resided in the State, Territory, or District in

which the association is located, or within one hundred miles of

the location of the office of the association, for at least one

year immediately preceding their election, and must be residents of

such State or within one-hundred-mile territory of the location of

the association during their continuance in office, except that the

Comptroller may, in the discretion of the Comptroller, waive the

requirement of residency, and waive the requirement of citizenship

in the case of not more than a minority of the total number of

directors. Every director must own in his or her own right either

shares of the capital stock of the association of which he or she

is a director the aggregate par value of which is not less than

$1,000, or an equivalent interest, as determined by the Comptroller

of the Currency, in any company which has control over such

association within the meaning of section 1841 of this title. If

the capital of the bank does not exceed $25,000, every director

must own in his or her own right either shares of such capital

stock the aggregate par value of which is not less than $500, or an

equivalent interest, as determined by the Comptroller of the

Currency, in any company which has control over such association

within the meaning of section 1841 of this title. Any director who

ceases to be the owner of the required number of shares of the

stock, or who becomes in any other manner disqualified, shall

thereby vacate his place.

-SOURCE-

(R.S. Sec. 5146; Feb. 28, 1905, ch. 1163, 33 Stat. 818; Mar. 1,

1921, ch. 100, 41 Stat. 1199; Feb. 25, 1927, ch. 191, Sec. 17, 44

Stat. 1233; Apr. 27, 1956, ch. 215, 70 Stat. 119; Pub. L. 95-369,

Sec. 2, Sept. 17, 1978, 92 Stat. 608; Pub. L. 96-221, title VII,

Sec. 710, Mar. 31, 1980, 94 Stat. 189; Pub. L. 103-325, title III,

Sec. 313, Sept. 23, 1994, 108 Stat. 2221; Pub. L. 104-208, div. A,

title II, Sec. 2241, Sept. 30, 1996, 110 Stat. 3009-418; Pub. L.

106-569, title XII, Sec. 1233(a), Dec. 27, 2000, 114 Stat. 3037.)

-COD-

CODIFICATION

R.S. Sec. 5146 derived from act June 3, 1864, ch. 106, Sec. 9,

10, 13 Stat. 102, which was the National Bank Act. See section 38

of this title.

-MISC3-

AMENDMENTS

2000 - Pub. L. 106-569 inserted before period at end of first

sentence '', and waive the requirement of citizenship in the case

of not more than a minority of the total number of directors''.

1996 - Pub. L. 104-208 substituted ''except that the Comptroller

may, in the discretion of the Comptroller, waive the requirement of

residency'' for ''except that in the case of an association which

is a subsidiary or affiliate of a foreign bank, the Comptroller of

the Currency may in his discretion waive the requirement of

citizenship in the case of not more than a minority of the total

number of directors'' before period at end of first sentence.

1994 - Pub. L. 103-325, which directed the substitution of ''a

majority'' for ''two thirds'', was executed by making the

substitution for ''two-thirds'' in first sentence to reflect the

probable intent of Congress.

1980 - Pub. L. 96-221 inserted provisions setting forth

additional ownership requirements with respect to equivalent

interest determinations by the Comptroller of the Currency.

1978 - Pub. L. 95-369 authorized the Comptroller of the Currency,

in case of associations which are subsidiaries of affiliates of

foreign banks, to waive citizenship requirements of not more than a

minority of the total number of directors.

1956 - Act Apr. 27, 1956, substituted ''two-thirds'', ''one

hundred'', ''one-hundred-mile'', for ''three-fourths'', ''fifty'',

and ''fifty-mile'', respectively.

1927 - Act Feb. 25, 1927, substituted a minimum value of stock

ownership for minimum number of shares in both instances.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1821 of this title.

-CITE-

12 USC Sec. 73 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER III - DIRECTORS

-HEAD-

Sec. 73. Oath

-STATUTE-

Each director, when appointed or elected, shall take an oath that

he will, so far as the duty devolves on him, diligently and

honestly administer the affairs of such association, and will not

knowingly violate or willingly permit to be violated any of the

provisions of title 62 of the Revised Statutes, and that he is the

owner in good faith, and in his own right, of the number of shares

of stock required by title 62 of the Revised Statutes, subscribed

by him, or standing in his name on the books of the association,

and that the same is not hypothecated, or in any way pledged, as

security for any loan or debt. The oath shall be taken before a

notary public, properly authorized and commissioned by the State in

which he resides, or before any other officer having an official

seal and authorized by the State to administer oaths, except that

the oath shall not be taken before any such notary public or other

officer who is an officer of the director's bank. The oath,

subscribed by the director making it, and certified by the notary

public or other officer before whom it is taken, shall be

immediately transmitted to the Comptroller of the Currency and

shall be filed and preserved in his office for a period of ten

years.

-SOURCE-

(R.S. Sec. 5147; Feb. 20, 1925, ch. 274, 43 Stat. 955.)

-REFTEXT-

REFERENCES IN TEXT

Title 62 of the Revised Statutes, referred to in text, was in the

original ''this Title'' meaning title LXII of the Revised Statutes,

consisting of R.S. Sec. 5133 to 5244, which are classified to

sections 21, 22 to 24a, 25a, 26, 27, 29, 35 to 37, 39, 43, 52, 53,

55 to 57, 59 to 62, 66, 71, 72 to 76, 81, 83 to 86, 90, 91, 93,

93a, 94, 141 to 144, 161, 164, 181, 182, 192 to 194, 196, 215c, 481

to 485, 501, 541, 548, and 582 of this title. See, also, sections

8, 333, 334, 475, 656, 709, 1004, and 1005 of Title 18, Crimes and

Criminal Procedure. For complete classification of R.S. Sec. 5133

to 5244 to the Code, see Tables.

-COD-

CODIFICATION

R.S. Sec. 5147 derived from act June 3, 1864, ch. 106, Sec. 9, 13

Stat. 102, which was the National Bank Act. See section 38 of this

title.

-TRANS-

EXCEPTION AS TO TRANSFER OF FUNCTIONS

Functions vested by any provision of law in Comptroller of the

Currency, referred to in this section, not included in transfer of

functions to Secretary of the Treasury, see note set out under

section 1 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1821 of this title.

-CITE-

12 USC Sec. 74 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER III - DIRECTORS

-HEAD-

Sec. 74. Vacancies

-STATUTE-

Any vacancy in the board shall be filled by appointment by the

remaining directors, and any director so appointed shall hold his

place until the next election.

-SOURCE-

(R.S. Sec. 5148.)

-COD-

CODIFICATION

R.S. Sec. 5148 derived from act June 3, 1864, ch. 106, Sec. 10,

13 Stat. 102, which was the National Bank Act. See section 38 of

this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1821 of this title.

-CITE-

12 USC Sec. 75 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER III - DIRECTORS

-HEAD-

Sec. 75. Legal holiday, annual meeting on; proceedings where no

election held on proper day

-STATUTE-

When the day fixed in the bylaws for the regular annual meeting

of the shareholders falls on a legal holiday in the State in which

the bank is located, the shareholders meeting shall be held, and

the directors elected, on the next following banking day. If, from

any cause, an election of directors is not made on the day fixed,

or in the event of a legal holiday, on the next following banking

day, an election may be held on any subsequent day within sixty

days of the day fixed, to be designated by the board of directors,

or, if the directors fail to fix the day, by shareholders

representing two-thirds of the shares, at least ten days' notice

thereof in all cases having been given by first-class mail to the

shareholders.

-SOURCE-

(R.S. Sec. 5149; Pub. L. 86-230, Sec. 9, Sept. 8, 1959, 73 Stat.

457; Pub. L. 88-232, Sec. 2, Dec. 23, 1963, 77 Stat. 472.)

-COD-

CODIFICATION

R.S. Sec. 5149 derived from act June 3, 1864, ch. 106, Sec. 10,

13 Stat. 102, which was the National Bank Act. See section 38 of

this title.

-MISC3-

AMENDMENTS

1963 - Pub. L. 88-232 substituted ''bylaws'' for ''articles of

association''.

1959 - Pub. L. 86-230 provided that when the day fixed for the

regular annual meeting of the shareholders falls on a legal

holiday, the meeting shall be held on the next following banking

day and authorized election of directors to be held within sixty

days of a fixed day upon ten days' notice to the shareholders by

first-class mail instead of upon thirty days' notice in newspaper

and at a date designated in the articles or bylaws or by the

shareholders.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1821 of this title.

-CITE-

12 USC Sec. 76 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER III - DIRECTORS

-HEAD-

Sec. 76. President of bank as member of board; chairman of board

-STATUTE-

The president of the bank shall be a member of the board and

shall be the chairman thereof, but the board may designate a

director in lieu of the president to be chairman of the board, who

shall perform such duties as may be designated by the board.

-SOURCE-

(R.S. Sec. 5150; Feb. 25, 1927, ch. 191, Sec. 6, 44 Stat. 1228.)

-COD-

CODIFICATION

R.S. Sec. 5150 derived from act June 3, 1864, ch. 106, Sec. 9, 13

Stat. 102, which was the National Bank Act. See section 38 of this

title.

-MISC3-

AMENDMENTS

1927 - Act Feb. 25, 1927, amended section generally. Prior to

amendment, section read as follows: ''One of the directors, to be

chosen by the board, shall be president of the board.''

-CITE-

12 USC Sec. 77 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER III - DIRECTORS

-HEAD-

Sec. 77. Repealed. Pub. L. 89-695, title II, Sec. 207, Oct. 16,

1966, 80 Stat. 1055

-MISC1-

Section, act June 16, 1933, ch. 89, Sec. 30, 48 Stat. 193,

provided authority for removal of directors or officers of national

banks, District banks, or State member banks for continued

violations of law or for continued unsafe or unsound practices in

conducting the business of such banks.

-COD-

CODIFICATION

Section 401 of Pub. L. 89-695, Oct. 16, 1966, 80 Stat. 1056,

which provided for reenactment of this section effective upon

expiration of the period ending at the close of June 30, 1972, was

repealed by Pub. L. 91-609, title IX, Sec. 908, Dec. 31, 1970, 84

Stat. 1811.

-MISC3-

CONDITIONS GOVERNING EMPLOYMENT OF PERSONNEL NOT REPEALED,

MODIFIED, OR AFFECTED

Nothing contained in section 207 of Pub. L. 89-695 repealing this

section to be construed as repealing, modifying, or affecting

section 1829 of this title, see section 206 of Pub. L. 89-695, set

out as a note under section 1813 of this title.

-CITE-

12 USC Sec. 78 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER III - DIRECTORS

-HEAD-

Sec. 78. Repealed. Pub. L. 106-102, title I, Sec. 101(b), Nov. 12,

1999, 113 Stat. 1341

-MISC1-

Section, acts June 16, 1933, ch. 89, Sec. 32, 48 Stat. 194; Aug.

23, 1935, ch. 614, Sec. 307, 49 Stat. 709, related to certain

persons excluded from serving as officers, directors, or employees

of member banks.

EFFECTIVE DATE OF REPEAL

Repeal effective 120 days after Nov. 12, 1999, see section 161 of

Pub. L. 106-102, set out as an Effective Date of 1999 Amendment

note under section 24 of this title.

-CITE-

12 USC SUBCHAPTER IV - REGULATION OF THE BANKING

BUSINESS; POWERS AND DUTIES OF NATIONAL

BANKS 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER IV - REGULATION OF THE BANKING BUSINESS; POWERS AND

DUTIES OF NATIONAL BANKS

.

-HEAD-

SUBCHAPTER IV - REGULATION OF THE BANKING BUSINESS; POWERS AND

DUTIES OF NATIONAL BANKS

-CITE-

12 USC Sec. 81 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER IV - REGULATION OF THE BANKING BUSINESS; POWERS AND

DUTIES OF NATIONAL BANKS

-HEAD-

Sec. 81. Place of business

-STATUTE-

The general business of each national banking association shall

be transacted in the place specified in its organization

certificate and in the branch or branches, if any, established or

maintained by it in accordance with the provisions of section 36 of

this title.

-SOURCE-

(R.S. Sec. 5190; Feb. 25, 1927, ch. 191, Sec. 8, 44 Stat. 1229.)

-COD-

CODIFICATION

R.S. Sec. 5190 derived from act June 3, 1864, ch. 106, Sec. 8, 13

Stat. 101, which was the National Bank Act. See section 38 of this

title.

-MISC3-

AMENDMENTS

1927 - Act Feb. 25, 1927, among other changes, inserted ''and in

the branch or branches, if any, established or maintained by it in

accordance with the provisions of section 36 of this title''.

-CITE-

12 USC Sec. 82 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER IV - REGULATION OF THE BANKING BUSINESS; POWERS AND

DUTIES OF NATIONAL BANKS

-HEAD-

Sec. 82. Repealed. Pub. L. 97-320, title IV, Sec. 402, Oct. 15,

1982, 96 Stat. 1510

-MISC1-

Section, R.S. Sec. 5202; Dec. 23, 1913, ch. 6, Sec. 13, 38 Stat.

264; Sept. 7, 1916, ch. 461, 39 Stat. 753; Apr. 5, 1918, ch. 45,

Sec. 20, 40 Stat. 512; Oct. 22, 1919, ch. 79, Sec. 2, 41 Stat. 297;

Mar. 4, 1923, ch. 252, title V, Sec. 504, 42 Stat. 1481; Feb. 25,

1927, ch. 191, Sec. 11, 44 Stat. 1231; Jan. 22, 1932, ch. 8, Sec.

5, formerly Sec. 6, 47 Stat. 8, renumbered and amended June 30,

1947, ch. 166, title I, Sec. 1, 61 Stat. 202; May 20, 1933, ch. 35,

Sec. 2, 48 Stat. 73; June 19, 1934, ch. 653, Sec. 2, 48 Stat. 1107;

Sept. 8, 1959, Pub. L. 86-230, Sec. 10, 73 Stat. 458; Sept. 9,

1959, Pub. L. 86-251, Sec. 2, 73 Stat. 488; July 24, 1970, Pub. L.

91-351, title II, Sec. 201(b), 84 Stat. 451; Jan. 4, 1975, Pub. L.

93-646, Sec. 11, 88 Stat. 2337, provided that no national banking

association could at any time be indebted, or in any way liable, to

an amount exceeding the amount of its capital stock at such time

actually paid in and remaining undiminished by losses or otherwise,

plus 50 percent of the amount of its unimpaired surplus fund,

except on account of demands of the nature following: notes of

circulation; moneys deposited with or collected by the association;

bills of exchange or drafts drawn against money actually on deposit

to the credit of the association, or due thereto; liabilities to

the stockholders of the association for dividends and reserve

profits; liabilities incurred under the provisions of the Federal

Reserve Act; liabilities incurred under the provisions of the

Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.); liabilities

created by the indorsement of accepted bills of exchange payable

abroad actually owned by the indorsing bank and discounted at home

or abroad; liabilities incurred under the provisions of sections

1031 to 1033 of this title; liabilities incurred on account of

loans made with the express approval of the Comptroller of the

Currency under former section 84(9) of this title; liabilities

incurred under the provisions of section 352a of this title;

liabilities incurred in connection with sales of mortgages, or

participations therein, to the Federal National Mortgage

Association or the Federal Home Loan Mortgage Corporation; and

liabilities incurred in borrowing from the Export-Import Bank of

the United States.

-CITE-

12 USC Sec. 83 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER IV - REGULATION OF THE BANKING BUSINESS; POWERS AND

DUTIES OF NATIONAL BANKS

-HEAD-

Sec. 83. Loans by bank on its own stock

-STATUTE-

(a) General prohibition

No national bank shall make any loan or discount on the security

of the shares of its own capital stock.

(b) Exclusion

For purposes of this section, a national bank shall not be deemed

to be making a loan or discount on the security of the shares of

its own capital stock if it acquires the stock to prevent loss upon

a debt previously contracted for in good faith.

-SOURCE-

(R.S. Sec. 5201; Pub. L. 106-569, title XII, Sec. 1207(a), Dec. 27,

2000, 114 Stat. 3034.)

-COD-

CODIFICATION

R.S. Sec. 5201 derived from act June 3, 1864, ch. 106, Sec. 35,

13 Stat. 110, which was the National Bank Act. See section 38 of

this title.

-MISC3-

AMENDMENTS

2000 - Pub. L. 106-569 amended section catchline and text

generally. Prior to amendment, text read as follows: ''No

association shall make any loan or discount on the security of the

shares of its own capital stock, nor be the purchaser or holder of

any such shares, unless such security or purchase shall be

necessary to prevent loss upon a debt previously contracted in good

faith; and stock so purchased or acquired shall, within six months

from the time of its purchase, be sold or disposed of at public or

private sale; or, in default thereof, a receiver may be appointed

to close up the business of the association, according to section

192 of this title.''

-CITE-

12 USC Sec. 84 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER IV - REGULATION OF THE BANKING BUSINESS; POWERS AND

DUTIES OF NATIONAL BANKS

-HEAD-

Sec. 84. Lending limits

-STATUTE-

(a) Total loans and extensions of credit

(1) The total loans and extensions of credit by a national

banking association to a person outstanding at one time and not

fully secured, as determined in a manner consistent with paragraph

(2) of this subsection, by collateral having a market value at

least equal to the amount of the loan or extension of credit shall

not exceed 15 per centum of the unimpaired capital and unimpaired

surplus of the association.

(2) The total loans and extensions of credit by a national

banking association to a person outstanding at one time and fully

secured by readily marketable collateral having a market value, as

determined by reliable and continuously available price quotations,

at least equal to the amount of the funds outstanding shall not

exceed 10 per centum of the unimpaired capital and unimpaired

surplus of the association. This limitation shall be separate from

and in addition to the limitation contained in paragraph (1) of

this subsection.

(b) Definitions

For the purposes of this section -

(1) the term ''loans and extensions of credit'' shall include

all direct or indirect advances of funds to a person made on the

basis of any obligation of that person to repay the funds or

repayable from specific property pledged by or on behalf of the

person and, to the extent specified by the Comptroller of the

Currency, such term shall also include any liability of a

national banking association to advance funds to or on behalf of

a person pursuant to a contractual commitment; and

(2) the term ''person'' shall include an individual, sole

proprietorship, partnership, joint venture, association, trust,

estate, business trust, corporation, sovereign government or

agency, instrumentality, or political subdivision thereof, or any

similar entity or organization.

(c) Exceptions

The limitations contained in subsection (a) of this section shall

be subject to the following exceptions:

(1) Loans or extensions of credit arising from the discount of

commercial or business paper evidencing an obligation to the

person negotiating it with recourse shall not be subject to any

limitation based on capital and surplus.

(2) The purchase of bankers' acceptances of the kind described

in section 372 of this title and issued by other banks shall not

be subject to any limitation based on capital and surplus.

(3) Loans and extensions of credit secured by bills of lading,

warehouse receipts, or similar documents transferring or securing

title to readily marketable staples shall be subject to a

limitation of 35 per centum of capital and surplus in addition to

the general limitations if the market value of the staples

securing each additional loan or extension of credit at all times

equals or exceeds 115 per centum of the outstanding amount of

such loan or extension of credit. The staples shall be fully

covered by insurance whenever it is customary to insure such

staples.

(4) Loans or extensions of credit secured by bonds, notes,

certificates of indebtedness, or Treasury bills of the United

States or by other such obligations fully guaranteed as to

principal and interest by the United States shall not be subject

to any limitation based on capital and surplus.

(5) Loans or extensions of credit to or secured by

unconditional takeout commitments or guarantees of any

department, agency, bureau, board, commission, or establishment

of the United States or any corporation wholly owned directly or

indirectly by the United States shall not be subject to any

limitation based on capital and surplus.

(6) Loans or extensions of credit secured by a segregated

deposit account in the lending bank shall not be subject to any

limitation based on capital and surplus.

(7) Loans or extensions of credit to any financial institution

or to any receiver, conservator, superintendent of banks, or

other agent in charge of the business and property of such

financial institution, when such loans or extensions of credit

are approved by the Comptroller of the Currency, shall not be

subject to any limitation based on capital and surplus.

(8)(A) Loans and extensions of credit arising from the discount

of negotiable or nonnegotiable installment consumer paper which

carries a full recourse endorsement or unconditional guarantee by

the person transferring the paper shall be subject under this

section to a maximum limitation equal to 25 per centum of such

capital and surplus, notwithstanding the collateral requirements

set forth in subsection (a)(2) of this section.

(B) If the bank's files or the knowledge of its officers of the

financial condition of each maker of such consumer paper is

reasonably adequate, and an officer of the bank designated for

that purpose by the board of directors of the bank certifies in

writing that the bank is relying primarily upon the

responsibility of each maker for payment of such loans or

extensions of credit and not upon any full or partial recourse

endorsement or guarantee by the transferor, the limitations of

this section as to the loans or extensions of credit of each such

maker shall be the sole applicable loan limitations.

(9)(A) Loans and extensions of credit secured by shipping

documents or instruments transferring or securing title covering

livestock or giving a lien on livestock when the market value of

the livestock securing the obligation is not at any time less

than 115 per centum of the face amount of the note covered, shall

be subject under this section, notwithstanding the collateral

requirements set forth in subsection (a)(2) of this section, to a

maximum limitation equal to 25 per centum of such capital and

surplus.

(B) Loans and extensions of credit which arise from the

discount by dealers in dairy cattle of paper given in payment for

dairy cattle, which paper carries a full recourse endorsement or

unconditional guarantee of the seller, and which are secured by

the cattle being sold, shall be subject under this section,

notwithstanding the collateral requirements set forth in

subsection (a)(2) of this section, to a limitation of 25 per

centum of such capital and surplus.

(10) Loans or extensions of credit to the Student Loan

Marketing Association shall not be subject to any limitation

based on capital and surplus.

(d) Authority of Comptroller of the Currency

(1) The Comptroller of the Currency may prescribe rules and

regulations to administer and carry out the purposes of this

section, including rules or regulations to define or further define

terms used in this section and to establish limits or requirements

other than those specified in this section for particular classes

or categories of loans or extensions of credit.

(2) The Comptroller of the Currency also shall have authority to

determine when a loan putatively made to a person shall for

purposes of this section be attributed to another person.

-SOURCE-

(R.S. Sec. 5200; June 22, 1906, ch. 3516, 34 Stat. 451; Sept. 24,

1918, ch. 176, Sec. 6, 40 Stat. 967; Oct. 22, 1919, ch. 79, Sec. 1,

41 Stat. 296; Feb. 25, 1927, ch. 191, Sec. 10, 44 Stat. 1229; May

20, 1933, ch. 35, Sec. 1, 48 Stat. 73; June 16, 1933, ch. 89, Sec.

26(a), 48 Stat. 191; Aug. 23, 1935, ch. 614, title III, Sec.

321(b), 49 Stat. 713; June 11, 1942, ch. 404, Sec. 8, 56 Stat. 356;

July 15, 1949, ch. 338, title VI, Sec. 602(b), 63 Stat. 440; July

22, 1937, ch. 517, Sec. 15(a), as added Aug. 14, 1946, ch. 964,

Sec. 5, 60 Stat. 1079; amended Pub. L. 85-748, Sec. 1(c), Aug. 25,

1958, 72 Stat. 841; Pub. L. 86-251, Sec. 3, Sept. 9, 1959, 73 Stat.

488; Pub. L. 87-723, Sec. 4(c)(4), Sept. 28, 1962, 76 Stat. 672;

Pub. L. 90-19, Sec. 27(b), May 25, 1967, 81 Stat. 29; Pub. L.

92-318, title I, Sec. 133(c)(2), June 23, 1972, 86 Stat. 270; Pub.

L. 97-320, title IV, Sec. 401(a), Oct. 15, 1982, 96 Stat. 1508;

Pub. L. 97-457, Sec. 17(a), Jan. 12, 1983, 96 Stat. 2509.)

-REFTEXT-

REFERENCES IN TEXT

Section 372 of this title, referred to in subsec. (c)(2), was in

the original a reference to ''section 13 of the Federal Reserve

Act''. Provisions of section 13 describing bankers' acceptances are

classified to section 372 of this title. Other provisions of

section 13 are classified to sections 342 to 347, 347c, 347d of

this title.

-COD-

CODIFICATION

R.S. Sec. 5200 derived from act June 3, 1864, ch. 106, Sec. 29,

13 Stat. 108, which was the National Bank Act. See section 38 of

this title.

-MISC3-

AMENDMENTS

1983 - Subsec. (b)(1). Pub. L. 97-457 inserted a comma before

''to the extent specified by the Comptroller of the Currency''.

1982 - Pub. L. 97-320 amended section generally. Prior to

amendment, section read as follows: ''The total obligations to any

national banking association of any person, copartnership,

association, or corporation shall at no time exceed 10 per centum

of the amount of the capital stock of such association actually

paid in and unimpaired and 10 per centum of its unimpaired surplus

fund. The term 'obligations' shall mean the direct liability of

the maker or acceptor of paper discounted with or sold to such

association and the liability of the indorser, drawer, or guarantor

who obtains a loan from or discounts paper with or sells paper

under his guaranty to such association and shall include in the

case of obligations of a copartnership or association the

obligations of the several members thereof and shall include in the

case of obligations of a corporation all obligations of all

subsidiaries thereof in which such corporation owns or controls a

majority interest. Such limitation of 10 per centum shall be

subject to the following exceptions:

''(1) Obligations in the form of drafts or bills of exchange

drawn in good faith against actually existing values shall not be

subject under this section to any limitation based upon such

capital and surplus.

''(2) Obligations arising out of the discount of commercial or

business paper actually owned by the person, copartnership,

association, or corporation negotiating the same shall not be

subject under this section to any limitation based upon such

capital and surplus.

''(3) Obligations drawn in good faith against actually existing

values and secured by goods or commodities in process of shipment

shall not be subject under this section to any limitation based

upon such capital and surplus.

''(4) Obligations as indorser or guarantor of notes, other than

commercial or business paper excepted under paragraph (2) of this

section, having a maturity of not more than six months, and owned

by the person, corporation, association, or copartnership

indorsing and negotiating the same, shall be subject under this

section to a limitation of 15 per centum of such capital and

surplus in addition to such 10 per centum of such capital and

surplus.

''(5) Obligations in the form of banker's acceptances of other

banks of the kind described in section 372 of this title shall

not be subject under this section to any limitation based upon

such capital and surplus.

''(6) Obligations of any person, copartnership, association or

corporation, in the form of notes or drafts secured by shipping

documents, warehouse receipts or other such documents

transferring or securing title covering readily marketable

nonperishable staples when such property is fully covered by

insurance, if it is customary to insure such staples, shall be

subject under this section to a limitation of 15 per centum of

such capital and surplus in addition to such 10 per centum of

such capital and surplus when the market value of such staples

securing such obligation is not at any time less than 115 per

centum of the face amount of such obligation, and to an

additional increase of limitation of 5 per centum of such capital

and surplus in addition to such 25 per centum of such capital and

surplus when the market value of such staples securing such

additional obligation is not at any time less than 120 per centum

of the face amount of such additional obligation, and to a

further additional increase of limitation of 5 per centum of such

capital and surplus in addition to such 30 per centum of such

capital and surplus when the market value of such staples

securing such additional obligation is not at any time less than

125 per centum of the face amount of such additional obligation,

and to a further additional increase of limitation of 5 per

centum of such capital and surplus in addition to such 35 per

centum of such capital and surplus when the market value of such

staples securing such additional obligation is not at any time

less than 130 per centum of the face amount of such additional

obligation, and to a further additional increase of limitation of

5 per centum of such capital and surplus in addition to such 40

per centum of such capital and surplus when the market value of

such staples securing such additional obligation is not at any

time less than 135 per centum of the face amount of such

additional obligation, and to a further additional increase of

limitation of 5 per centum of such capital and surplus in

addition to such 45 per centum of such capital and surplus when

the market value of such staples securing such additional

obligation is not at any time less than 140 per centum of the

face amount of such additional obligation, but this exception

shall not apply to obligations of any one person, copartnership,

association, or corporation arising from the same transactions

and/or secured by the identical staples for more than ten

months. Obligations of any person, copartnership, association,

or corporation in the form of notes or drafts secured by shipping

documents, warehouse receipts, or other such documents

transferring or securing title covering refrigerated or frozen

readily marketable staples when such property is fully covered by

insurance, shall be subject under this section to a limitation of

15 per centum of such capital and surplus in addition to such 10

per centum of such capital and surplus when the market value of

such staples securing such obligation is not at any time less

than 115 per centum of the face amount of such additional

obligation, but this exception shall not apply to obligations of

any one person, copartnership, association or corporation arising

from the same transactions and/or secured by the identical

staples for more than six months.

''(7) Obligations of any person, copartnership, association, or

corporation in the form of notes or drafts secured by shipping

documents or instruments transferring or securing title covering

livestock or giving a lien on livestock when the market value of

the livestock securing the obligation is not at any time less

than 115 per centum of the face amount of the notes covered by

such documents shall be subject under this section to a

limitation of 15 per centum of such capital and surplus in

addition to such 10 per centum of such capital and surplus.

Obligations arising out of the discount by dealers in dairy

cattle of paper given in payment for dairy cattle, which bear a

full recourse endorsement or unconditional guarantee of the

seller and are secured by the cattle being sold, shall be subject

under this section to a limitation of 15 per centum of such

capital and surplus in addition to such 10 per centum of such

capital and surplus.

''(8) Obligations of any person, copartnership, association, or

corporation secured by not less than a like amount of bonds or

notes of the United States issued since April 24, 1917, or

certificates of indebtedness of the United States, Treasury bills

of the United States, or obligations fully guaranteed both as to

principal and interest by the United States, shall (except to the

extent permitted by rules and regulations prescribed by the

Comptroller of the Currency, with the approval of the Secretary

of the Treasury) be subject under this section to a limitation of

15 per centum of such capital and surplus in addition to such 10

per centum of such capital and surplus.

''(9) Obligations representing loans to any national banking

association or to any banking institution organized under the

laws of any State, or to any receiver, conservator, or

superintendent of banks, or to any other agent, in charge of the

business and property of any such association or banking

institution, when such loans are approved by the Comptroller of

the Currency, shall not be subject under this section to any

limitation based upon such capital and surplus.

''(10) Obligations shall not be subject under this section to

any limitation based upon such capital and surplus to the extent

that such obligations are secured or covered by guaranties, or by

commitments or agreements to take over or to purchase, made by

any Federal Reserve bank or by the United States or any

department, bureau, board, commission, or establishment of the

United States, including any corporation wholly owned directly or

indirectly by the United States: Provided, That such guaranties,

agreements, or commitments are unconditional and must be

performed by payment of cash or its equivalent within sixty days

after demand. The Comptroller of the Currency is authorized to

define the terms herein used if and when he may deem it

necessary.

''(11) Obligations of a local public agency (as defined in

section 110(h) of the Housing Act of 1949 (42 U.S.C. 1460(h))) or

of a public housing agency (as defined in the United States

Housing Act of 1937, as amended (42 U.S.C. 1437 et seq.)) which

have a maturity of not more than eighteen months shall not be

subject under this section to any limitation, if such obligations

are secured by an agreement between the obligor agency and the

Secretary of Housing and Urban Development in which the agency

agrees to borrow from the Secretary, and the Secretary agrees to

lend to the agency, prior to the maturity of such obligations,

monies in an amount which (together with any other monies

irrevocably committed to the payment of interest on such

obligations) will suffice to pay the principal of such

obligations with interest to maturity, which monies under the

terms of said agreement are required to be used for that purpose.

''(12) Obligations insured by the Secretary of Agriculture

pursuant to the Bankhead-Jones Farm Tenant Act, as amended (7

U.S.C. 1000 et seq.), or the Act of August 28, 1937, as amended

(relating to the conservation of water resources), or title V of

the Housing Act of 1949 (42 U.S.C. 1471 et seq.), shall be

subject under this section to a limitation of 15 per centum of

such capital and surplus in addition to such 10 per centum of

such capital and surplus.

''(13) Obligations as endorser or guarantor of negotiable or

nonnegotiable installment consumer paper which carries a full

recourse endorsement or unconditional guarantee by the person,

copartnership, association, or corporation transferring the same,

shall be subject under this section to a limitation of 15 per

centum of such capital and surplus in addition to such 10 per

centum of such capital and surplus: Provided, however, That if

the bank's files or the knowledge of its officers of the

financial condition of each maker of such obligations is

reasonably adequate, and upon certification by an officer of the

bank designated for that purpose by the board of directors of the

bank, that the responsibility of each maker of such obligations

has been evaluated and the bank is relying primarily upon each

such maker for the payment of such obligations, the limitations

of this section as to the obligations of each such maker shall be

the sole applicable loan limitation: Provided further, That such

certification shall be in writing and shall be retained as part

of the records of such bank.

''(14) Obligations of the Student Loan Marketing Association

shall not be subject to any limitation based upon such capital

and surplus.''

1972 - Par. (14). Pub. L. 92-318 added par. (14).

1967 - Par. (11). Pub. L. 90-19 substituted ''Secretary of

Housing and Urban Development'' for ''Housing and Home Finance

Administrator or the Public Housing Administration'' and

''Secretary'' for ''Administrator or Administration'' wherever

appearing, respectively.

1962 - Par. (12). Pub. L. 87-723 inserted ''or title V of the

Housing Act of 1949'' before ''shall be subject under this

section''.

1959 - Par. (6). Pub. L. 86-251, Sec. 3(a), substituted ''secured

by'' for ''secured upon'' and inserted exception with respect to

obligations secured by documents transferring or securing title

covering refrigerated or frozen readily marketable staples.

Par. (7). Pub. L. 86-251, Sec. 3(b), inserted exception with

respect to obligations arising out of the discount by dealers in

dairy cattle of paper given in payment for dairy cattle.

Par. (8). Pub. L. 86-251, Sec. 3(c), struck out ''in the form of

notes'' after ''corporation''.

Par. (13). Pub. L. 86-251, Sec. 3(d), added par. (13).

1958 - Par. (12). Pub. L. 85-748 amended section 15(a) of act

July 22, 1937, as added by act Aug. 14, 1946, by inserting sentence

amending R.S. Sec. 5200 by adding par. (12).

1949 - Par. (11). Act July 15, 1949, added par. (11).

1942 - Par. (10). Act June 11, 1942, added par. (10).

1935 - Par. (8). Act Aug. 23, 1935, inserted ''Treasury bills of

the United States, or obligations fully guaranteed both as to

principal and interest by the United States''.

1933 - Par. (1). Act June 16, 1933, inserted provision relating

to obligations of a corporation and its subsidiaries in second

sentence.

Par. (9). Act May 20, 1933, added par. (9).

1927 - Act Feb. 25, 1927, reenacted section, subdividing it into

eight numbered exceptions.

EFFECTIVE DATE OF 1982 AMENDMENT

Section 401(b) of Pub. L. 97-320 provided that: ''This section

(amending this section) shall take effect upon the expiration of

one hundred and eighty days after the date of its enactment (Oct.

15, 1982).''

REPEALS

Repealing provisions of Consolidated Farmers Home Administration

Act of 1961 as not having the effect of repealing the amendment to

this section enacted by act July 22, 1937, Sec. 15(a), as added

Aug. 14, 1946, see section 341(a) of Pub. L. 87-128, title III,

Aug. 8, 1961, 75 Stat. 318, set out as a note under section 1921 of

Title 7, Agriculture.

SAVINGS PROVISION

Section 26(b) of act June 16, 1933, provided: ''The amendment

made by this section (amending this section) shall not apply to

such obligations of subsidiaries held by such association on the

date this section takes effect.''

-TRANS-

EXCEPTION AS TO TRANSFER OF FUNCTIONS

Functions vested by any provision of law in Comptroller of the

Currency, referred to in this section, not included in transfer of

functions to Secretary of the Treasury, see note set out under

section 1 of this title.

-MISC5-

APPLICATION TO DISTRICT OF COLUMBIA

Provisions of this section were made applicable to banks, etc.,

in the District of Columbia by act Mar. 4, 1933, ch. 274, Sec. 3,

47 Stat. 1567.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 345, 375b, 1464 of this

title.

-CITE-

12 USC Sec. 85 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER IV - REGULATION OF THE BANKING BUSINESS; POWERS AND

DUTIES OF NATIONAL BANKS

-HEAD-

Sec. 85. Rate of interest on loans, discounts and purchases

-STATUTE-

Any association may take, receive, reserve, and charge on any

loan or discount made, or upon any notes, bills of exchange, or

other evidences of debt, interest at the rate allowed by the laws

of the State, Territory, or District where the bank is located, or

at a rate of 1 per centum in excess of the discount rate on

ninety-day commercial paper in effect at the Federal reserve bank

in the Federal reserve district where the bank is located,

whichever may be the greater, and no more, except that where by the

laws of any State a different rate is limited for banks organized

under State laws, the rate so limited shall be allowed for

associations organized or existing in any such State under title 62

of the Revised Statutes. When no rate is fixed by the laws of the

State, or Territory, or District, the bank may take, receive,

reserve, or charge a rate not exceeding 7 per centum, or 1 per

centum in excess of the discount rate on ninety day commercial

paper in effect at the Federal reserve bank in the Federal reserve

district where the bank is located, whichever may be the greater,

and such interest may be taken in advance, reckoning the days for

which the note, bill, or other evidence of debt has to run. The

maximum amount of interest or discount to be charged at a branch of

an association located outside of the States of the United States

and the District of Columbia shall be at the rate allowed by the

laws of the country, territory, dependency, province, dominion,

insular possession, or other political subdivision where the branch

is located. And the purchase, discount, or sale of a bona fide

bill of exchange, payable at another place than the place of such

purchase, discount, or sale, at not more than the current rate of

exchange for sight drafts in addition to the interest, shall not be

considered as taking or receiving a greater rate of interest.

-SOURCE-

(R.S. Sec. 5197; June 16, 1933, ch. 89, Sec. 25, 48 Stat. 191; Aug.

23, 1935, ch. 614, title III, Sec. 314, 49 Stat. 711; Pub. L.

93-501, title II, Sec. 201, Oct. 29, 1974, 88 Stat. 1558; Pub. L.

96-104, title I, Sec. 101, Nov. 5, 1979, 93 Stat. 789; Pub. L.

96-161, title II, Sec. 201, Dec. 28, 1979, 93 Stat. 1235; Pub. L.

96-221, title V, Sec. 529, Mar. 31, 1980, 94 Stat. 168.)

-REFTEXT-

REFERENCES IN TEXT

Title 62 of the Revised Statutes, referred to in text, was in the

original ''this Title'' meaning title LXII of the Revised Statutes,

consisting of R.S. Sec. 5133 to 5244, which are classified to

sections 21, 22 to 24a, 25a, 26, 27, 29, 35 to 37, 39, 43, 52, 53,

55 to 57, 59 to 62, 66, 71, 72 to 76, 81, 83 to 86, 90, 91, 93,

93a, 94, 141 to 144, 161, 164, 181, 182, 192 to 194, 196, 215c, 481

to 485, 501, 541, 548, and 582 of this title. See, also, sections

8, 333, 334, 475, 656, 709, 1004, and 1005 of Title 18, Crimes and

Criminal Procedure. For complete classification of R.S. Sec. 5133

to 5244 to the Code, see Tables.

-COD-

CODIFICATION

R.S. Sec. 5197 derived from act June 3, 1864, ch. 106, Sec. 30,

13 Stat. 108, which was the National Bank Act. See section 38 of

this title.

Section 201 of Pub. L. 96-161, cited as a credit to this section,

was repealed by section 529 of Pub. L. 96-221, effective at the

close of Mar. 31, 1980. The amendment of this section by that

repealed provision, described in the 1979 Amendments note below,

shall continue in effect for limited purposes pursuant to section

529. See Savings Provisions note, describing the provisions of

section 529 of Pub. L. 96-221, set out below.

Section 101 of Pub. L. 96-104, cited as a credit to this section,

was repealed by section 212 of Pub. L. 96-161, effective at the

close of Dec. 27, 1979. The amendment of this section by that

repealed provision, described in the 1979 Amendments note below,

shall continue in effect for limited purposes pursuant to section

212 of Pub. L. 96-161. See Savings Provisions note, describing the

provisions of section 212 of Pub. L. 96-161, set out below. The

amendment by Pub. L. 96-104, Sec. 101, was duplicated with

identical language in the amendment made by Pub. L. 96-161, Sec.

201. See 1979 Amendments note below.

Section 201 of Pub. L. 93-501, cited as a credit to this section,

was repealed by Pub. L. 96-104, Sec. 1, Nov. 5, 1979, 93 Stat. 789.

The amendment of this section by that repealed provision, described

in the 1974 Amendment note set out under this section, was

duplicated in 1979 with identical language under section 101 of

Pub. L. 96-104. See 1979 Amendments note below.

-MISC3-

AMENDMENTS

1980 - Pub. L. 96-221 repealed Pub. L. 96-104 and title II of

Pub. L. 96-161, resulting in the striking out of ''or in the case

of business or agricultural loans in the amount of $25,000 or more,

at a rate of 5 per centum in excess of the discount rate on

ninety-day commercial paper in effect at the Federal Reserve bank

in the Federal Reserve district where the bank is located,'' before

''whichever may be the greater'' in two places. See Codification

and 1979 Amendment notes under this section.

1979 - Pub. L. 96-161 inserted provisions relating to a 5 per

centum interest rate on business or agricultural loans in the

amount of $25,000 or more that were identical to provisions

inserted earlier by Pub. L. 96-104. See Codification note above.

Pub. L. 96-104 substituted ''or in the case of business or

agricultural loans in the amount of $25,000 or more, at a rate of 5

per centum in excess of the discount rate on ninety-day commercial

paper in effect at the Federal Reserve bank in the Federal Reserve

district where the bank is located, whichever may be the greater''

for ''whichever may be the greater'' in two places. See

Codification note above.

1974 - Pub. L. 93-501 substituted ''or in the case of business or

agricultural loans in the amount of $25,000 or more, at a rate of 5

per centum in excess of the discount rate on ninety-day commercial

paper in effect at the Federal Reserve bank in the Federal Reserve

district where the bank is located, whichever may be the greater''

for ''whichever may be the greater'' in two places.

1935 - Act Aug. 23, 1935, inserted third sentence.

1933 - Act June 16, 1933, authorized interest at the alternative

rate of 1 per centum in excess of the discount rate on ninety-day

commercial paper in effect at the federal reserve bank in the

Federal Reserve district where the bank is located if greater.

EFFECTIVE DATE OF 1980 AMENDMENT

Section 529 of Pub. L. 96-221 provided that the amendment made by

that section is effective at the close of Mar. 31, 1980.

EFFECTIVE DATE OF 1979 AMENDMENTS

Section 207 of Pub. L. 96-161, which provided that amendment by

Pub. L. 96-161 was applicable to loans made in any State during the

period beginning on Dec. 28, 1979, and ending on the earliest of

(1) in the case of a State statute, July 1, 1980; (2) the date,

after Dec. 28, 1979, on which such State adopts a law stating in

substance that such State does not want the amendment of this

section made by Pub. L. 96-161 to apply with respect to loans made

in such State; or (3) the date on which such State certifies that

the voters of such State, after Dec. 28, 1979, have voted in favor

of, or to retain, any law, provision of the constitution of such

State, or amendment to the constitution of such State which

prohibits the charging of interest at the rates provided in the

amendment of this section by Pub. L. 96-161, was repealed by Pub.

L. 96-221, title V, Sec. 529, Mar. 31, 1980, 94 Stat. 168.

Section 107 of Pub. L. 96-104, which provided that amendment by

Pub. L. 96-104 was applicable to loans made by any State during the

period beginning on Nov. 5, 1979, and ending on the earlier of July

1, 1981, or the date after Nov. 5, 1979, on which such State adopts

a law stating in substance that such State does not want the

amendment of this section to apply with respect to loans made in

such State, or the date on which such State certifies that the

voters of such State have voted in favor of, or to retain, any law,

provision of the constitution of such State, or amendment of the

constitution of such State, which prohibits the charging of

interest at the rates provided in the amendment of this section,

was repealed by Pub. L. 96-161, title II, Sec. 212, Dec. 28, 1979,

93 Stat. 1239.

EFFECTIVE AND TERMINATION DATES OF 1974 AMENDMENT

Section 206 of Pub. L. 93-501, which provided that amendment by

Pub. L. 93-501 applicable to loans made in any state after Oct. 29,

1974, but prior to the earlier of July 1, 1977, or the date (after

Oct. 29, 1974) of enactment by the state of a law prohibiting the

charging of interest at the rates provided in the amendment of this

section, was repealed by Pub. L. 96-104, Sec. 1, Nov. 5, 1979, 93

Stat. 789.

SAVINGS PROVISIONS

Section 529 of Pub. L. 96-221 provided in part that,

notwithstanding the repeal of Pub. L. 96-104 and title II of Pub.

L. 96-161, the provisions added to this section by those repealed

laws shall continue to apply to any loan made, any deposit made, or

any obligation issued in any State during any period when those

provisions were in effect in such State.

Section 212 of Pub. L. 96-161 provided in part that,

notwithstanding the repeal, effective at the close of Dec. 27,

1979, of Pub. L. 96-104 (which had enacted sections 86a, 371b-1,

1730e, and 1831a of this title, amended sections 85, 1425b, and

1828 of this title and section 687 of Title 15, Commerce and Trade,

repealed sections 371b-1, 1730e, and 1831a of this title and notes

set out under sections 371b-1 and 1831a of this title, and enacted

provisions set out as notes under this section and sections 86a,

371b-1, and 1831a of this title), the amendment which had been made

by title I of Pub. L. 96-104 and the provisions of that title would

continue to apply to any loan made in any State on or after Nov. 5,

1979, but prior to the repeal of Pub. L. 96-104, and that the

amendments made by title II of Pub. L. 96-104 would continue to

apply to any deposit made or obligation issued in any State on or

after Nov. 5, 1979, but prior to the repeal of Pub. L. 96-104.

Section 1 of Pub. L. 96-104 provided in part that,

notwithstanding the repeal of titles II and III of Pub. L. 93-501

(which had enacted sections 371b-1, 1730e, and 1831a of this title,

amended sections 85, 1425b, and 1828 of this title, and section 687

of Title 15, Commerce and Trade, and enacted provisions set out as

notes under sections 371b-1 and 1831a of this title), the

amendments which had been made by title II of that Act and the

provisions of such title would continue to apply to any loan made

in any State during the period specified in section 206 of such Act

(set out as a note under section 1831a of this title) and that the

amendments which had been made by title III of such Act would

continue to apply to any deposit made or obligation issued in any

State during the period specified in section 304 of such Act (set

out as a note under section 371b-1 of this title).

CHOICE OF HIGHEST APPLICABLE INTEREST RATE

In any case in which one or more provisions of, or amendments

made by, title V of Pub. L. 96-221 (enacting sections 86a, 1730g,

1735f-7a, 1785(g), and 1831d of this title and section 687(i) of

Title 15, Commerce and Trade, and enacting provisions set out as

notes under sections 86a, 1730g, and 1735f-7 of this title),

section 1735f-7 of this title, or any other provisions of law,

including this section, apply with respect to the same loan,

mortgage, credit sale, or advance, such loan, mortgage, credit

sale, or advance may be made at the highest applicable rate, see

section 528 of Pub. L. 96-221, set out as a note under section

1735f-7a of this title.

STATES HAVING CONSTITUTIONAL PROVISIONS REGARDING MAXIMUM INTEREST

RATES

Section 213 of Pub. L. 96-161 provided that the provisions of

title II of Pub. L. 96-161, which amended this section, repealed

provisions which had formerly amended this section, and enacted

provisions set out as notes under this section, to continue to

apply until July 1, 1981, in the case of any State having a

constitutional provision regarding maximum interest rates.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 86, 1831u of this title.

-CITE-

12 USC Sec. 86 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER IV - REGULATION OF THE BANKING BUSINESS; POWERS AND

DUTIES OF NATIONAL BANKS

-HEAD-

Sec. 86. Usurious interest; penalty for taking; limitations

-STATUTE-

The taking, receiving, reserving, or charging a rate of interest

greater than is allowed by section 85 of this title, when knowingly

done, shall be deemed a forfeiture of the entire interest which the

note, bill, or other evidence of debt carries with it, or which has

been agreed to be paid thereon. In case the greater rate of

interest has been paid, the person by whom it has been paid, or his

legal representatives, may recover back, in an action in the nature

of an action of debt, twice the amount of the interest thus paid

from the association taking or receiving the same: Provided, That

such action is commenced within two years from the time the

usurious transaction occurred.

-SOURCE-

(R.S. Sec. 5198.)

-COD-

CODIFICATION

R.S. Sec. 5198 (less last sentence) derived from act June 3,

1864, ch. 106, Sec. 30, 13 Stat. 108, which was the National Bank

Act. See section 38 of this title.

Section is based on R.S. Sec. 5198, less last sentence as added

by act Feb. 18, 1875, ch. 80, Sec. 1, 18 Stat. 320, which is

classified to section 94 of this title.

-CITE-

12 USC Sec. 86a 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER IV - REGULATION OF THE BANKING BUSINESS; POWERS AND

DUTIES OF NATIONAL BANKS

-HEAD-

Sec. 86a. Omitted

-COD-

CODIFICATION

Section, Pub. L. 96-221, title V, Sec. 511, Mar. 31, 1980, 94

Stat. 164; Pub. L. 96-399, title III, Sec. 324(b), (d), Oct. 8,

1980, 94 Stat. 1648, which authorized interest on business or

agricultural loans of $1,000 or more at a rate of not more than 5

per centum in excess of the discount rate, was omitted pursuant to

section 512 of Pub. L. 96-221 which made these provisions

applicable only with respect to such loans made in any State during

the period beginning on April 1, 1980, and ending on the earlier of

(1) April 1, 1983, or (2) the date, on or after April 1, 1980, on

which such State adopts a law or certifies that the voters of such

State have voted in favor of any provision, constitutional or

otherwise, which states explicitly that such State does not want

these provisions to apply with respect to loans made in such State.

A prior section 86a, Pub. L. 96-161, title II, Sec. 205, Dec. 28,

1979, 93 Stat. 1237, similar to this section as enacted by Pub. L.

96-221, was repealed by section 529 of Pub. L. 96-221, effective at

the close of Mar. 31, 1980, except that its provisions would

continue to apply to any loan made, any deposit made, or any

obligation issued in any State during any period when that section

was in effect in such State. For the effective date provisions

relating to the prior section 86a, see section 207 of Pub. L.

96-161.

Another prior section 86a, Pub. L. 96-104, title I, Sec. 105,

Nov. 5, 1979, 93 Stat. 791, identical to this section as enacted by

Pub. L. 96-161, was repealed by section 212 of Pub. L. 96-161,

effective at the close of Dec. 27, 1979, except that its provisions

would continue to apply to loans made in any State on or after Nov.

5, 1979, but prior to such repeal.

Section 301 of Pub. L. 96-104, which limited the applicability of

Pub. L. 96-104 to those States having a constitutional provision

that all contracts for a greater rate of interest than 10 per

centum per annum are void as to both principal and interest, was

repealed by section 212 of Pub. L. 96-161, effective at the close

of Dec. 27, 1979.

-CITE-

12 USC Sec. 87 to 89 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER IV - REGULATION OF THE BANKING BUSINESS; POWERS AND

DUTIES OF NATIONAL BANKS

-HEAD-

Sec. 87 to 89. Repealed. Pub. L. 103-325, title VI, Sec.

602(e)(2)-(4), Sept. 23, 1994, 108 Stat. 2291

-MISC1-

Section 87, R.S. Sec. 5203, related to restriction on use by bank

of its circulating notes.

Section 88, R.S. Sec. 5206, related to restriction on use by bank

of notes of other banks.

Section 89, R.S. Sec. 5196, related to duty of bank to receive

circulating notes of other banks in payment of debts.

-CITE-

12 USC Sec. 90 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER IV - REGULATION OF THE BANKING BUSINESS; POWERS AND

DUTIES OF NATIONAL BANKS

-HEAD-

Sec. 90. Depositaries of public moneys and financial agents of

Government

-STATUTE-

All national banking associations, designated for that purpose by

the Secretary of the Treasury, shall be depositaries of public

money, under such regulations as may be prescribed by the

Secretary; and they may also be employed as financial agents of the

Government; and they shall perform all such reasonable duties, as

depositaries of public money and financial agents of the

Government, as may be required of them. The Secretary of the

Treasury shall require the associations thus designated to give

satisfactory security, by the deposit of United States bonds and

otherwise, for the safe-keeping and prompt payment of the public

money deposited with them, and for the faithful performance of

their duties as financial agents of the Government: Provided, That

the Secretary shall, on or before the 1st of January of each year,

make a public statement of the securities required during that year

for such deposits. And every association so designated as receiver

or depositary of the public money shall take and receive at par all

of the national currency bills, by whatever association issued,

which have been paid into the Government for internal revenue, or

for loans or stocks: Provided, That the Secretary of the Treasury

shall distribute the deposits herein provided for, as far as

practicable, equitably between the different States and sections.

Any national banking association may, upon the deposit with it of

any funds by any State or political subdivision thereof or any

agency or other governmental instrumentality of one or more States

or political subdivisions thereof, including any officer, employee,

or agent thereof in his official capacity, give security for the

safekeeping and prompt payment of the funds so deposited to the

same extent and of the same kind as is authorized by the law of the

State in which such association is located in the case of other

banking institutions in the State.

Any national banking association may, upon the deposit with it of

any funds by any federally recognized Indian tribe, or any officer,

employee, or agent thereof in his or her official capacity, give

security for the safekeeping and prompt payment of the funds so

deposited by the deposit of United States bonds and otherwise as

may be prescribed by the Secretary of the Treasury for public funds

under the first paragraph of this section.

Notwithstanding the Federal Property and Administrative Services

Act of 1949, as amended, the Secretary may select associations as

financial agents in accordance with any process the Secretary deems

appropriate and their reasonable duties may include the provision

of electronic benefit transfer services (including

State-administered benefits with the consent of the States), as

defined by the Secretary.

-SOURCE-

(R.S. Sec. 5153; Mar. 3, 1901, ch. 871, 31 Stat. 1448; Mar. 4,

1907, ch. 2913, Sec. 3, 34 Stat. 1290; Dec. 23, 1913, ch. 6, Sec.

27, 38 Stat. 274; Aug. 4, 1914, ch. 225, 38 Stat. 682; June 25,

1930, ch. 604, 46 Stat. 809; Aug. 18, 1950, ch. 754, 64 Stat. 463;

Pub. L. 96-153, title III, Sec. 323(f), Dec. 21, 1979, 93 Stat.

1120; Pub. L. 104-208, div. A, title I, Sec. 101(f) (Sec. 2(1)),

Sept. 30, 1996, 110 Stat. 3009-314, 3009-386.)

-REFTEXT-

REFERENCES IN TEXT

The Federal Property and Administrative Services Act of 1949,

referred to in text, is act June 30, 1949, ch. 288, 63 Stat. 377,

as amended. Except for title III of the Act, which is classified

generally to subchapter IV (Sec. 251 et seq.) of chapter 4 of Title

41, Public Contracts, the Act was repealed and reenacted by Pub. L.

107-217, Sec. 1, 6(b), Aug. 21, 2002, 116 Stat. 1062, 1304, as

chapters 1 to 11 of Title 40, Public Buildings, Property, and

Works.

-COD-

CODIFICATION

R.S. Sec. 5153 derived from act June 3, 1864, ch. 106, Sec. 45,

13 Stat. 113, which was the National Bank Act. See section 38 of

this title.

-MISC3-

AMENDMENTS

1996 - Pub. L. 104-208 added fourth par.

1979 - Pub. L. 96-153 added third par.

1950 - Act Aug. 18, 1950, permitted national banks to accept and

give security for deposits of funds made by agencies or

governmental instrumentalities or States or political subdivisions

thereof and by their officers, employees or agents.

1930 - Act June 25, 1930, added second par.

-CITE-

12 USC Sec. 91 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER IV - REGULATION OF THE BANKING BUSINESS; POWERS AND

DUTIES OF NATIONAL BANKS

-HEAD-

Sec. 91. Transfers by bank and other acts in contemplation of

insolvency

-STATUTE-

All transfers of the notes, bonds, bills of exchange, or other

evidences of debt owing to any national banking association, or of

deposits to its credit; all assignments of mortgages, sureties on

real estate, or of judgments or decrees in its favor; all deposits

of money, bullion, or other valuable thing for its use, or for the

use of any of its shareholders or creditors; and all payments of

money to either, made after the commission of an act of insolvency,

or in contemplation thereof, made with a view to prevent the

application of its assets in the manner prescribed by chapter 4 of

title 62 of the Revised Statutes, or with a view to the preference

of one creditor to another, except in payment of its circulating

notes, shall be utterly null and void; and no attachment,

injunction, or execution, shall be issued against such association

or its property before final judgment in any suit, action, or

proceeding, in any State, county, or municipal court.

-SOURCE-

(R.S. Sec. 5242.)

-REFTEXT-

REFERENCES IN TEXT

Chapter 4 of title 62 of the Revised Statutes, referred to in

text, was in the original ''this chapter'', meaning chapter 4 of

title 62 of the Revised Statutes, consisting of R.S. Sec. 5220 to

5244, which are classified to sections 43, 91, 93, 93a, 181, 182,

192 to 194, 196, and 481 to 485 of this title. See, also, section

709 of Title 18, Crimes and Criminal Procedure. For complete

classification of R.S. Sec. 5220 to 5244 to the Code, see Tables.

-COD-

CODIFICATION

R.S. Sec. 5242 derived from act June 3, 1864, ch. 106, Sec. 52,

13 Stat. 115, which was the National Bank Act, and act Mar. 3,

1873, ch. 269, Sec. 2, 17 Stat. 603. See section 38 of this title.

-CITE-

12 USC Sec. 92 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER IV - REGULATION OF THE BANKING BUSINESS; POWERS AND

DUTIES OF NATIONAL BANKS

-HEAD-

Sec. 92. Acting as insurance agent or broker

-STATUTE-

In addition to the powers now vested by law in national banking

associations organized under the laws of the United States any such

association located and doing business in any place the population

of which does not exceed five thousand inhabitants, as shown by the

last preceding decennial census, may, under such rules and

regulations as may be prescribed by the Comptroller of the

Currency, act as the agent for any fire, life, or other insurance

company authorized by the authorities of the State in which said

bank is located to do business in said State, by soliciting and

selling insurance and collecting premiums on policies issued by

such company; and may receive for services so rendered such fees or

commissions as may be agreed upon between the said association and

the insurance company for which it may act as agent: Provided,

however, That no such bank shall in any case assume or guarantee

the payment of any premium on insurance policies issued through its

agency by its principal: And provided further, That the bank shall

not guarantee the truth of any statement made by an assured in

filing his application for insurance.

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 13 (par.), as added Sept. 7, 1916, ch.

461, 39 Stat. 753; amended Pub. L. 97-320, title IV, Sec. 403(b),

Oct. 15, 1982, 96 Stat. 1511.)

-COD-

CODIFICATION

Section is based on the eleventh par. of section 13 of act Dec.

23, 1913, as amended. The eleventh par. constituted the ninth par.

of section 13 in 1916 (39 Stat. 752, 753), became the tenth par. in

1923 (42 Stat. 1478), and became the eleventh par. in 1932 (47

Stat. 715). For further details, see Codification notes under

sections 342 to 344 of this title.

For decision by U.S. Supreme Court that, despite faulty placement

of quotation marks, act Sept. 7, 1916, placed within section 13 of

act Dec. 23, 1913, each of the ten pars. located between the

phrases that introduced the amendments to sections 13 and 14 of

said act, that only the seventh par. (rather than seventh to tenth

pars.) comprised the amended R.S. Sec. 5202, and that section 20 of

act Apr. 5, 1918 (40 Stat. 512) (which amended R.S. Sec. 5202

comprised of a single par.), did not amend section 13 of said act

so as to repeal the eighth to tenth pars., see United States

National Bank of Oregon v. Independent Insurance Agents of

America, Inc., et al., 508 U.S. 439, 113 S.Ct. 2173, 124 L.Ed. 2d

402 (1993). As the result of subsequent amendments, such seventh to

tenth pars. of section 13 now constitute the ninth to twelfth

pars. The ninth par. amended former section 82 of this title, and

the tenth to twelfth pars. are classified to sections 361, 92, and

373, respectively, of this title.

-MISC3-

AMENDMENTS

1982 - Pub. L. 97-320 struck out ''; and may also act as the

broker or agent for others in making or procuring loans on real

estate located within one hundred miles of the place in which said

bank may be located, receiving for such services a reasonable fee

or commission'' after ''may act as agent'' and ''guarantee either

the principal or interest of any such loans or'' after ''shall in

any case''.

EFFECTIVE DATE OF 1982 AMENDMENT

Amendment by Pub. L. 97-320 effective upon the expiration of 180

days after Oct. 15, 1982, see section 403(c) of Pub. L. 97-320, set

out as a note under section 371 of this title.

MORATORIUM

Pub. L. 100-86, title II, Sec. 201(a), (b)(5), Aug. 10, 1987, 101

Stat. 581, 583, provided that, during period beginning Mar. 6,

1987, and ending Mar. 1, 1988, national banks and Federal branches

or agencies of foreign banks could not expand their insurance

agency activities pursuant to this section into places where they

were not conducting such activities as of Mar. 5, 1987.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 412 of this title; title

15 section 6711.

-CITE-

12 USC Sec. 92a 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER IV - REGULATION OF THE BANKING BUSINESS; POWERS AND

DUTIES OF NATIONAL BANKS

-HEAD-

Sec. 92a. Trust powers

-STATUTE-

(a) Authority of Comptroller of the Currency

The Comptroller of the Currency shall be authorized and empowered

to grant by special permit to national banks applying therefor,

when not in contravention of State or local law, the right to act

as trustee, executor, administrator, registrar of stocks and bonds,

guardian of estates, assignee, receiver, committee of estates of

lunatics, or in any other fiduciary capacity in which State banks,

trust companies, or other corporations which come into competition

with national banks are permitted to act under the laws of the

State in which the national bank is located.

(b) Grant and exercise of powers deemed not in contravention of

State or local law

Whenever the laws of such State authorize or permit the exercise

of any or all of the foregoing powers by State banks, trust

companies, or other corporations which compete with national banks,

the granting to and the exercise of such powers by national banks

shall not be deemed to be in contravention of State or local law

within the meaning of this section.

(c) Segregation of fiduciary and general assets; separate books and

records; access of State banking authorities to reports of

examinations, books, records, and assets

National banks exercising any or all of the powers enumerating

(FOOTNOTE 1) in this section shall segregate all assets held in any

fiduciary capacity from the general assets of the bank and shall

keep a separate set of books and records showing in proper detail

all transactions engaged in under authority of this section. The

State banking authorities may have access to reports of examination

made by the Comptroller of the Currency insofar as such reports

relate to the trust department of such bank, but nothing in this

section shall be construed as authorizing the State banking

authorities to examine the books, records, and assets of such bank.

(FOOTNOTE 1) So in original. Probably should be ''enumerated''.

(d) Prohibited operations; separate investment account; collateral

for certain funds used in conduct of business

No national bank shall receive in its trust department deposits

of current funds subject to check or the deposit of checks, drafts,

bills of exchange, or other items for collection or exchange

purposes. Funds deposited or held in trust by the bank awaiting

investment shall be carried in a separate account and shall not be

used by the bank in the conduct of its business unless it shall

first set aside in the trust department United States bonds or

other securities approved by the Comptroller of the Currency.

(e) Lien and claim upon bank failure

In the event of the failure of such bank the owners of the funds

held in trust for investment shall have a lien on the bonds or

other securities so set apart in addition to their claim against

the estate of the bank.

(f) Deposits of securities for protection of private or court

trusts; execution of and exemption from bond

Whenever the laws of a State require corporations acting in a

fiduciary capacity to deposit securities with the State authorities

for the protection of private or court trusts, national banks so

acting shall be required to make similar deposits and securities so

deposited shall be held for the protection of private or court

trusts, as provided by the State law. National banks in such cases

shall not be required to execute the bond usually required of

individuals if State corporations under similar circumstances are

exempt from this requirement. National banks shall have power to

execute such bond when so required by the laws of the State.

(g) Officials' oath or affidavit

In any case in which the laws of a State require that a

corporation acting as trustee, executor, administrator, or in any

capacity specified in this section, shall take an oath or make an

affidavit, the president, vice president, cashier, or trust officer

of such national bank may take the necessary oath or execute the

necessary affidavit.

(h) Loans of trust funds to officers and employees prohibited;

penalties

It shall be unlawful for any national banking association to lend

any officer, director, or employee any funds held in trust under

the powers conferred by this section. Any officer, director, or

employee making such loan, or to whom such loan is made, may be

fined not more than $5,000, or imprisoned not more than five years,

or may be both fined and imprisoned, in the discretion of the

court.

(i) Considerations determinative of grant or denial of

applications; minimum capital and surplus for issuance of

permit

In passing upon applications for permission to exercise the

powers enumerated in this section, the Comptroller of the Currency

may take into consideration the amount of capital and surplus of

the applying bank, whether or not such capital and surplus is

sufficient under the circumstances of the case, the needs of the

community to be served, and any other facts and circumstances that

seem to him proper, and may grant or refuse the application

accordingly: Provided, That no permit shall be issued to any

national banking association having a capital and surplus less than

the capital and surplus required by State law of State banks, trust

companies, and corporations exercising such powers.

(j) Surrender of authorization; board resolution; Comptroller

certification; activities affected; regulations

Any national banking association desiring to surrender its right

to exercise the powers granted under this section, in order to

relieve itself of the necessity of complying with the requirements

of this section, or to have returned to it any securities which it

may have deposited with the State authorities for the protection of

private or court trusts, or for any other purpose, may file with

the Comptroller of the Currency a certified copy of a resolution of

its board of directors signifying such desire. Upon receipt of

such resolution, the Comptroller of the Currency, after satisfying

himself that such bank has been relieved in accordance with State

law of all duties as trustee, executory, (FOOTNOTE 2)

administrator, registrar of stocks and bonds, guardian of estates,

assignee, receiver, committee of estates of lunatics or other

fiduciary, under court, private, or other appointments previously

accepted under authority of this section, may, in his discretion,

issue to such bank a certificate certifying that such bank is no

longer authorized to exercise the powers granted by this section.

Upon the issuance of such a certificate by the Comptroller of the

Currency, such bank (1) shall no longer be subject to the

provisions of this section or the regulations of the Comptroller of

the Currency made pursuant thereto, (2) shall be entitled to have

returned to it any securities which it may have deposited with the

State authorities for the protection of private or court trusts,

and (3) shall not exercise thereafter any of the powers granted by

this section without first applying for and obtaining a new permit

to exercise such powers pursuant to the provisions of this

section. The Comptroller of the Currency is authorized and

empowered to promulgate such regulations as he may deem necessary

to enforce compliance with the provisions of this section and the

proper exercise of the powers granted therein.

(FOOTNOTE 2) So in original. Probably should be ''executor,''.

(k) Revocation; procedures applicable

(1) In addition to the authority conferred by other law, if, in

the opinion of the Comptroller of the Currency, a national banking

association is unlawfully or unsoundly exercising, or has

unlawfully or unsoundly exercised, or has failed for a period of

five consecutive years to exercise, the powers granted by this

section or otherwise fails or has failed to comply with the

requirements of this section, the Comptroller may issue and serve

upon the association a notice of intent to revoke the authority of

the association to exercise the powers granted by this section.

The notice shall contain a statement of the facts constituting the

alleged unlawful or unsound exercise of powers, or failure to

exercise powers, or failure to comply, and shall fix a time and

place at which a hearing will be held to determine whether an order

revoking authority to exercise such powers should issue against the

association.

(2) Such hearing shall be conducted in accordance with the

provisions of section 1818(h) of this title, and subject to

judicial review as provided in such section, and shall be fixed for

a date not earlier than thirty days nor later than sixty days after

service of such notice unless an earlier or later date is set by

the Comptroller at the request of any association so served.

(3) Unless the association so served shall appear at the hearing

by a duly authorized representative, it shall be deemed to have

consented to the issuance of the revocation order. In the event of

such consent, or if upon the record made at any such hearing, the

Comptroller shall find that any allegation specified in the notice

of charges has been established, the Comptroller may issue and

serve upon the association an order prohibiting it from accepting

any new or additional trust accounts and revoking authority to

exercise any and all powers granted by this section, except that

such order shall permit the association to continue to service all

previously accepted trust accounts pending their expeditious

divestiture or termination.

(4) A revocation order shall become effective not earlier than

the expiration of thirty days after service of such order upon the

association so served (except in the case of a revocation order

issued upon consent, which shall become effective at the time

specified therein), and shall remain effective and enforceable,

except to such extent as it is stayed, modified, terminated, or set

aside by action of the Comptroller or a reviewing court.

-SOURCE-

(Pub. L. 87-722, Sec. 1, Sept. 28, 1962, 76 Stat. 668; Pub. L.

96-221, title VII, Sec. 704, Mar. 31, 1980, 94 Stat. 187.)

-MISC1-

AMENDMENTS

1980 - Subsec. (k). Pub. L. 96-221 added subsec. (k).

SAVINGS PROVISION

Section 2 of Pub. L. 87-722 provided that: ''Nothing contained in

this Act (enacting this section, amending sections 581 and

584(a)(2) of Title 26, and repealing section 248(k) of this title)

shall be deemed to affect or curtail the right of any national bank

to act in fiduciary capacities under a permit granted before the

date of enactment of this Act (Sept. 28, 1962) by the Board of

Governors of the Federal Reserve System, nor to affect the validity

of any transactions entered into at any time by any national bank

pursuant to such permit. On and after the date of enactment of

this Act the exercise of fiduciary powers by national banks shall

be subject to the provisions of this Act and the requirements of

regulations issued by the Comptroller of the Currency pursuant to

the authority granted by this Act.''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 93 of this title; title 15

sections 78c, 80a-2, 80b-2.

-CITE-

12 USC Sec. 93 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER IV - REGULATION OF THE BANKING BUSINESS; POWERS AND

DUTIES OF NATIONAL BANKS

-HEAD-

Sec. 93. Violation of provisions of chapter

-STATUTE-

(a) Forfeiture of franchise; personal liability of directors

If the directors of any national banking association shall

knowingly violate, or knowingly permit any of the officers, agents,

or servants of the association to violate any of the provisions of

title 62 of the Revised Statutes, all the rights, privileges, and

franchises of the association shall be thereby forfeited. Such

violation shall, however, be determined and adjudged by a proper

district or Territorial court of the United States in a suit

brought for that purpose by the Comptroller of the Currency, in his

own name, before the association shall be declared dissolved. And

in cases of such violation, every director who participated in or

assented to the same shall be held liable in his personal and

individual capacity for all damages which the association, its

shareholders, or any other person, shall have sustained in

consequence of such violation.

(b) Civil money penalty

(1) First tier

Any national banking association which, and any

institution-affiliated party (within the meaning of section

1813(u) of this title) with respect to such association who,

violates any provision of title 62 of the Revised Statutes or any

of the provisions of section 92a of this title, or any regulation

issued pursuant thereto, shall forfeit and pay a civil penalty of

not more than $5,000 for each day during which such violation

continues.

(2) Second tier

Notwithstanding paragraph (1), any national banking association

which, and any institution-affiliated party (within the meaning

of section 1813(u) of this title) with respect to such

association who, commits any violation described in paragraph (1)

which - (FOOTNOTE 1)

(FOOTNOTE 1) So in original. The words '', commits any

violation described in paragraph (1) which'' probably should not

appear.

(A)(i) commits any violation described in any (FOOTNOTE 2)

paragraph (1);

(FOOTNOTE 2) So in original. The word ''any'' probably should

not appear.

(ii) recklessly engages in an unsafe or unsound practice in

conducting the affairs of such association; or

(iii) breaches any fiduciary duty;

(B) which violation, practice, or breach -

(i) is part of a pattern of misconduct;

(ii) causes or is likely to cause more than a minimal loss

to such association; or

(iii) results in pecuniary gain or other benefit to such

party,

shall forfeit and pay a civil penalty of not more than $25,000

for each day during which such violation, practice, or breach

continues.

(3) Third tier

Notwithstanding paragraphs (1) and (2), any national banking

association which, and any institution-affiliated party (within

the meaning of section 1813(u) of this title) with respect to

such association who -

(A) knowingly -

(i) commits any violation described in paragraph (1);

(ii) engages in any unsafe or unsound practice in

conducting the affairs of such association; or

(iii) breaches any fiduciary duty; and

(B) knowingly or recklessly causes a substantial loss to such

association or a substantial pecuniary gain or other benefit to

such party by reason of such violation, practice, or breach,

shall forfeit and pay a civil penalty in an amount not to exceed

the applicable maximum amount determined under paragraph (4) for

each day during which such violation, practice, or breach

continues.

(4) Maximum amounts of penalties for any violation described in

paragraph (3)

The maximum daily amount of any civil penalty which may be

assessed pursuant to paragraph (3) for any violation, practice,

or breach described in such paragraph is -

(A) in the case of any person other than a national banking

association, an amount to not (FOOTNOTE 3) exceed $1,000,000;

and

(FOOTNOTE 3) So in original. Probably should be ''not to''.

(B) in the case of a national banking association, an amount

not to exceed the lesser of -

(i) $1,000,000; or

(ii) 1 percent of the total assets of such association.

(5) Assessment; etc.

Any penalty imposed under paragraph (1), (2), or (3) shall be

assessed and collected by the Comptroller of the Currency in the

manner provided in subparagraphs (E), (F), (G), and (I) of

section 1818(i)(2) of this title for penalties imposed (under

such section) and any such assessment shall be subject to the

provisions of such section.

(6) Hearing

The association or other person against whom any penalty is

assessed under this subsection shall be afforded an agency

hearing if such association or person submits a request for such

hearing within 20 days after the issuance of the notice of

assessment. Section 1818(h) of this title shall apply to any

proceeding under this subsection.

(7) Disbursement

All penalties collected under authority of this subsection

shall be deposited into the Treasury.

(8) ''Violate'' defined

For purposes of this section, the term ''violate'' includes any

action (alone or with another or others) for or toward causing,

bringing about, participating in, counseling, or aiding or

abetting a violation.

(12) (FOOTNOTE 4) Regulations

(FOOTNOTE 4) So in original. No pars. (9) to (11) have been

enacted.

The Comptroller shall prescribe regulations establishing such

procedures as may be necessary to carry out this subsection.

(c) Notice under this section after separation from service

The resignation, termination of employment or participation, or

separation of an institution-affiliated party (within the meaning

of section 1813(u) of this title) with respect to such an

association (including a separation caused by the closing of such

an association) shall not affect the jurisdiction and authority of

the Comptroller of the Currency to issue any notice and proceed

under this section against any such party, if such notice is served

before the end of the 6-year period beginning on the date such

party ceased to be such a party with respect to such association

(whether such date occurs before, on, or after August 9, 1989).

(d) Forfeiture of franchise for money laundering or cash

transaction reporting offenses

(1) In general

(A) Conviction of title 18 offenses

(i) Duty to notify

If a national bank, a Federal branch, or Federal agency has

been convicted of any criminal offense under section 1956 or

1957 of title 18, the Attorney General shall provide to the

Comptroller of the Currency a written notification of the

conviction and shall include a certified copy of the order of

conviction from the court rendering the decision.

(ii) Notice of termination; pretermination hearing

After receiving written notification from the Attorney

General of such a conviction, the Comptroller of the Currency

shall issue to the national bank, Federal branch, or Federal

agency a notice of the Comptroller's intention to terminate

all rights, privileges, and franchises of the bank, Federal

branch, or Federal agency and schedule a pretermination

hearing.

(B) Conviction of title 31 offenses

If a national bank, a Federal branch, or a Federal agency is

convicted of any criminal offense under section 5322 or 5324 of

title 31, after receiving written notification from the

Attorney General, the Comptroller of the Currency may issue to

the national bank, Federal branch, or Federal agency a notice

of the Comptroller's intention to terminate all rights,

privileges, and franchises of the bank, Federal branch, or

Federal agency and schedule a pretermination hearing.

(C) Judicial review

Section 1818(h) of this title shall apply to any proceeding

under this subsection.

(2) Factors to be considered

In determining whether a franchise shall be forfeited under

paragraph (1), the Comptroller of the Currency shall take into

account the following factors:

(A) The extent to which directors or senior executive

officers of the national bank, Federal branch, or Federal

agency knew of, or were involved in, the commission of the

money laundering offense of which the bank, Federal branch, or

Federal agency was found guilty.

(B) The extent to which the offense occurred despite the

existence of policies and procedures within the national bank,

Federal branch, or Federal agency which were designed to

prevent the occurrence of any such offense.

(C) The extent to which the national bank, Federal branch, or

Federal agency has fully cooperated with law enforcement

authorities with respect to the investigation of the money

laundering offense of which the bank, Federal branch, or

Federal agency was found guilty.

(D) The extent to which the national bank, Federal branch, or

Federal agency has implemented additional internal controls

(since the commission of the offense of which the bank, Federal

branch, or Federal agency was found guilty) to prevent the

occurrence of any other money laundering offense.

(E) The extent to which the interest of the local community

in having adequate deposit and credit services available would

be threatened by the forfeiture of the franchise.

(3) Successor liability

This subsection shall not apply to a successor to the interests

of, or a person who acquires, a bank, a Federal branch, or a

Federal agency that violated a provision of law described in

paragraph (1), if the successor succeeds to the interests of the

violator, or the acquisition is made, in good faith and not for

purposes of evading this subsection or regulations prescribed

under this subsection.

(4) ''Senior executive officer'' defined

The term ''senior executive officer'' has the same meaning as

in regulations prescribed under section 1831i(f) of this title.

(d) (FOOTNOTE 5) Authority

(FOOTNOTE 5) So in original. Probably should be ''(e)''.

The Comptroller of the Currency may act in the Comptroller's own

name and through the Comptroller's own attorneys in enforcing any

provision of title 62 of the Revised Statutes, regulations

thereunder, or any other law or regulation, or in any action, suit,

or proceeding to which the Comptroller of the Currency is a party.

-SOURCE-

(R.S. Sec. 5239; Mar. 3, 1911, ch. 231, Sec. 291, 36 Stat. 1167;

Pub. L. 95-630, title I, Sec. 103, Nov. 10, 1978, 92 Stat. 3643;

Pub. L. 97-320, title IV, Sec. 424(d)(3), (f), (g), Oct. 15, 1982,

96 Stat. 1523; Pub. L. 97-457, Sec. 24, Jan. 12, 1983, 96 Stat.

2510; Pub. L. 101-73, title IX, Sec. 905(e), 907(e), Aug. 9, 1989,

103 Stat. 460, 469; Pub. L. 102-550, title XV, Sec. 1502(a), Oct.

28, 1992, 106 Stat. 4045; Pub. L. 103-322, title XXXIII, Sec.

330017(b)(2), Sept. 13, 1994, 108 Stat. 2149; Pub. L. 103-325,

title III, Sec. 331(b)(3), title IV, Sec. 411(c)(2)(C), 413(b)(2),

Sept. 23, 1994, 108 Stat. 2232, 2253, 2254.)

-REFTEXT-

REFERENCES IN TEXT

Title 62 of the Revised Statutes, referred to in subsecs. (a),

(b)(1), and (d), was in the original ''this Title'' meaning title

LXII of the Revised Statutes, consisting of R.S. Sec. 5133 to 5244,

which are classified to sections 21, 22 to 24a, 25a, 26, 27, 29, 35

to 37, 39, 43, 52, 53, 55 to 57, 59 to 62, 66, 71, 72 to 76, 81, 83

to 86, 90, 91, 93, 93a, 94, 141 to 144, 161, 164, 181, 182, 192 to

194, 196, 215c, 481 to 485, 501, 541, 548, and 582 of this title.

See, also, sections 8, 333, 334, 475, 656, 709, 1004, and 1005 of

Title 18, Crimes and Criminal Procedure. For complete

classification of R.S. Sec. 5133 to 5244 to the Code, see Tables.

-COD-

CODIFICATION

R.S. Sec. 5239 derived from act June 3, 1864, ch. 106, Sec. 53,

13 Stat. 116, which was the National Bank Act. See section 38 of

this title.

Act Mar. 3, 1911, conferred the powers and duties of the former

circuit courts upon the district courts.

-MISC3-

AMENDMENTS

1994 - Subsec. (c). Pub. L. 103-322, Sec. 330017(b)(2), and Pub.

L. 103-325, Sec. 413(b)(2), amended section identically,

redesignating subsec. (c), relating to forfeiture of franchise for

money laundering, as (d).

Subsec. (d). Pub. L. 103-322, Sec. 330017(b)(2), and Pub. L.

103-325, Sec. 413(b)(2), amended section identically, redesignating

subsec. (c), relating to forfeiture of franchise for money

laundering, as (d).

Pub. L. 103-325, Sec. 331(b)(3), added subsec. (d) relating to

authority.

Subsec. (d)(1)(B). Pub. L. 103-325, Sec. 411(c)(2)(C),

substituted ''section 5322 or 5324 of title 31'' for ''section 5322

of title 31''.

1992 - Subsec. (c). Pub. L. 102-550 added subsec. (c) relating to

forfeiture of franchise for money laundering.

1989 - Subsec. (b). Pub. L. 101-73, Sec. 907(e), amended subsec.

(b) generally, revising and restating as pars. (1) to (8) and (12)

provisions of former pars. (1) to (8).

Subsec. (c). Pub. L. 101-73, Sec. 905(e), added subsec. (c)

relating to notice after separation from service.

1982 - Subsec. (b)(1). Pub. L. 97-320, as amended by Pub. L.

97-457, inserted ''or any of the provisions of section 92a of this

title'', and substituted ''may be assessed'' for ''shall be

assessed'' and ''title'' for ''chapter''.

1978 - Pub. L. 95-630 designated existing provisions as subsec.

(a) and added subsec. (b).

EFFECTIVE DATE OF 1989 AMENDMENT

Section 907(l) of Pub. L. 101-73 provided that: ''The amendments

made by this section (amending this section and sections 481, 504,

505, 1467a, 1786, 1817, 1818, 1828, 1847, and 1972 of this title)

shall apply with respect to conduct engaged in by any person after

the date of the enactment of this Act (Aug. 9, 1989), except that

the increased maximum civil penalties of $5,000 and $25,000 per

violation or per day may apply to such conduct engaged in before

such date if such conduct -

''(1) is not already subject to a notice (initiating an

administrative proceeding) issued by the appropriate Federal

banking agency (as defined in section 3(q) of the Federal Deposit

Insurance Act (12 U.S.C. 1813(q))) or the National Credit Union

Administration Board; and

''(2) occurred after the completion of the last report of

examination of the institution involved by the appropriate

Federal banking agency (as so defined) occurring before the date

of the enactment of this Act.''

EFFECTIVE DATE OF 1978 AMENDMENT

Section 109 of title I of Pub. L. 95-630 provided that: ''Any

amendment made by this title which provides for the imposition of

civil penalties (enacting sections 504 and 505 of this title and

amending this section and sections 1464, 1730, 1730a, 1786, 1818,

1828, and 1847 of this title) shall apply only to violations

occurring or continuing after the date of its enactment (Nov. 10,

1978).''

-TRANS-

EXCEPTION AS TO TRANSFER OF FUNCTIONS

Functions vested by any provision of law in Comptroller of the

Currency, referred to in this section, not included in transfer of

functions to Secretary of the Treasury, see note set out under

section 1 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1831k of this title; title

31 sections 3121, 9110.

-CITE-

12 USC Sec. 93a 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER IV - REGULATION OF THE BANKING BUSINESS; POWERS AND

DUTIES OF NATIONAL BANKS

-HEAD-

Sec. 93a. Authority to prescribe rules and regulations

-STATUTE-

Except to the extent that authority to issue such rules and

regulations has been expressly and exclusively granted to another

regulatory agency, the Comptroller of the Currency is authorized to

prescribe rules and regulations to carry out the responsibilities

of the office, except that the authority conferred by this section

does not apply to section 36 of this title or to securities

activities of National Banks under the Act commonly known as the

''Glass-Steagall Act''.

-SOURCE-

(R.S. Sec. 5239A, as added Pub. L. 96-221, title VII, Sec. 708,

Mar. 31, 1980, 94 Stat. 188.)

-REFTEXT-

REFERENCES IN TEXT

The Glass-Steagall Act, referred to in text, probably refers to

act June 16, 1933, ch. 89, 48 Stat. 162, as amended, also known as

the Banking Act of 1933 or the Glass-Steagall Act, 1933, rather

than to act Feb. 27, 1932, ch. 58, 47 Stat. 56, known as the

Glass-Steagall Act, 1932. Section 16 of the 1933 act, which amended

section 24 (Seventh) of this title, related in part to securities

activities of national banks. For complete classification of these

Acts to the Code, see Tables.

-CITE-

12 USC Sec. 94 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER IV - REGULATION OF THE BANKING BUSINESS; POWERS AND

DUTIES OF NATIONAL BANKS

-HEAD-

Sec. 94. Venue of suits

-STATUTE-

Any action or proceeding against a national banking association

for which the Federal Deposit Insurance Corporation has been

appointed receiver, or against the Federal Deposit Insurance

Corporation as receiver of such association, shall be brought in

the district or territorial court of the United States held within

the district in which that association's principal place of

business is located, or, in the event any State, county, or

municipal court has jurisdiction over such an action or proceeding,

in such court in the county or city in which that association's

principal place of business is located.

-SOURCE-

(R.S. Sec. 5198; Feb. 18, 1875, ch. 80, Sec. 1, 18 Stat. 320; Mar.

3, 1911, ch. 231, Sec. 291, 36 Stat. 1167; Pub. L. 97-320, title

IV, Sec. 406, Oct. 15, 1982, 96 Stat. 1512; Pub. L. 97-457, Sec.

20(a), Jan. 12, 1983, 96 Stat. 2509.)

-COD-

CODIFICATION

The last sentence of R.S. Sec. 5198, as added by act Feb. 18,

1875, ch. 80, Sec. 1, 18 Stat. 320, appears to have been derived

from act June 3, 1864, ch. 106, Sec. 57, 13 Stat. 116, which was

the National Bank Act. See section 38 of this title.

Section is comprised of last sentence of R.S. Sec. 5198 as added

by act Feb. 18, 1875, ch. 80, Sec. 1, 18 Stat. 320. The remaining

sentences of R.S. Sec. 5198 are classified to section 86 of this

title.

Act Mar. 3, 1911, conferred powers and duties of former circuit

courts on district courts.

-MISC3-

AMENDMENTS

1982 - Pub. L. 97-320, as amended by Pub. L. 97-457, amended

section generally. Prior to amendment section read as follows:

''Actions and proceedings against any association under this

chapter may be had in any district or Territorial court of the

United States held within the district in which such association

may be established, or in any State, county, or municipal court in

the county or city in which said association is located having

jurisdiction in similar cases.''

EFFECTIVE DATE OF 1983 AMENDMENT

Section 20(b) of Pub. L. 97-457 provided that: ''The amendment

made by subsection (a) (amending this section) shall be deemed to

have taken effect upon the enactment of Public Law 97-320 (Oct. 15,

1982).''

-CITE-

12 USC Sec. 94a 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER IV - REGULATION OF THE BANKING BUSINESS; POWERS AND

DUTIES OF NATIONAL BANKS

-HEAD-

Sec. 94a. Repealed. June 25, 1948, ch. 646, Sec. 39, 62 Stat. 992,

eff. Sept. 1, 1948

-MISC1-

Section, act July 12, 1882, ch. 290, Sec. 4, 22 Stat. 163,

related to jurisdiction and venue. See sections 1348 and 1394 of

Title 28, Judiciary and Judicial Procedure.

-CITE-

12 USC Sec. 95 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER IV - REGULATION OF THE BANKING BUSINESS; POWERS AND

DUTIES OF NATIONAL BANKS

-HEAD-

Sec. 95. Emergency limitations and restrictions on business of

members of Federal reserve system; designation of legal holiday

for national banking associations; exceptions; ''State''

defined

-STATUTE-

(a) In order to provide for the safer and more effective

operation of the national Banking System and the Federal Reserve

System, to preserve for the people the full benefits of the

currency provided for by the Congress through the national banking

system and the Federal reserve system, and to relieve interstate

commerce of the burdens and obstructions resulting from the receipt

on an unsound or unsafe basis of deposits subject to withdrawal by

check, during such emergency period as the President of the United

States by proclamation may prescribe, no member bank of the Federal

reserve system shall transact any banking business except to such

extent and subject to such regulations, limitations and

restrictions as may be prescribed by the Secretary of the Treasury,

with the approval of the President. Any individual, partnership,

corporation, or association, or any director, officer or employee

thereof, violating any of the provisions of this section shall be

deemed guilty of a misdemeanor and, upon conviction thereof, shall

be fined not more than $10,000 or, if a natural person, may, in

addition to such fine, be imprisoned for a term not exceeding ten

years. Each day that any such violation continues shall be deemed

a separate offense.

(b)(1) In the event of natural calamity, riot, insurrection, war,

or other emergency conditions occurring in any State whether caused

by acts of nature or of man, the Comptroller of the Currency may

designate by proclamation any day a legal holiday for the national

banking associations located in that State. In the event that the

emergency conditions affect only part of a State, the Comptroller

of the Currency may designate the part so affected and may proclaim

a legal holiday for the national banking associations located in

that affected part. In the event that a State or a State official

authorized by law designates any day as a legal holiday for

ceremonial or emergency reasons, for the State or any part thereof,

that same day shall be a legal holiday for all national banking

associations or their offices located in that State or the part so

affected. A national banking association or its affected offices

may close or remain open on such a State-designated holiday unless

the Comptroller of the Currency by written order directs otherwise.

(2) For the purpose of this subsection, the term ''State'' means

any of the several States, the District of Columbia, the

Commonwealth of Puerto Rico, the Northern Mariana Islands, Guam,

the Virgin Islands, American Samoa, the Trust Territory of the

Pacific Islands, or any other territory or possession of the United

States.

-SOURCE-

(Mar. 9, 1933, ch. 1, title I, Sec. 4, 48 Stat. 2; Pub. L. 96-221,

title VII, Sec. 705, Mar. 31, 1980, 94 Stat. 187; Pub. L. 97-320,

title IV, Sec. 407, Oct. 15, 1982, 96 Stat. 1513; Pub. L. 97-457,

Sec. 21, Jan. 12, 1983, 96 Stat. 2509.)

-MISC1-

AMENDMENTS

1983 - Subsec. (b)(1). Pub. L. 97-457 inserted ''a State or''

before ''a State official''.

1982 - Subsec. (b)(1). Pub. L. 97-320 substituted ''In the event

that a State official authorized by law designates any day as a

legal holiday for ceremonial or emergency reasons, for the State or

any part thereof, that same day shall be a legal holiday for all

national banking associations or their offices located in that

State or the part so affected. A national banking association or

its affected offices may close or remain open on such a

State-designated holiday unless the Comptroller of the Currency by

written order directs otherwise'' for ''In the event that a State

or a State official authorized by law designates any day as a legal

holiday for either emergency or ceremonial reasons for all banks

chartered by that State to do business within that State, that same

day shall be a legal holiday for all national banking associations

chartered to do business within that State unless the Comptroller

of the Currency shall by written order permit all national banking

associations located in that State to remain open''.

1980 - Pub. L. 96-221 designated existing provisions as subsec.

(a) and added subsec. (b).

-TRANS-

TERMINATION OF TRUST TERRITORY OF THE PACIFIC ISLANDS

For termination of Trust Territory of the Pacific Islands, see

note set out preceding section 1681 of Title 48, Territories and

Insular Possessions.

-EXEC-

BANK HOLIDAY OF 1933

Proclamations Nos. 2039, 2040, and 2070, dated Mar. 6, 1933, Mar.

9, 1933, and Dec. 30, 1933, respectively, related to the temporary

suspension of banking transactions beginning Mar. 6, 1933, by all

member banks of the Federal Reserve System.

Pursuant to Ex. Ord. No. 6073, dated March 10, 1933, formerly set

out as a note under this section, the Secretary of the Treasury by

order of March 11, 1933, authorized all Federal reserve banks and

nonmember banks and other banking institutions to resume their

normal and usual banking functions on March 13, 1933, subject to

certain restrictions. See 31 C.F.R. 121.20-121.22. The fifth and

sixth paragraphs of Ex. Ord. No. 6073, relating to the removal of

gold coin, gold bullion, or gold certificates from the United

States by corporations, etc., including banking institutions and

authorization of banking institutions to pay out gold coin, gold

bullion or gold certificates, were revoked by Ex. Ord. No. 11825,

Dec. 31, 1974, 40 F.R. 1003, set out as a note under section 95a of

this title.

PROC. NO. 2725. EXEMPTION OF MEMBER BANKS OF FEDERAL RESERVE SYSTEM

Proc. No. 2725, Apr. 7, 1947, 12 F.R. 2343, 61 Stat. 1062,

provided:

NOW, THEREFORE, I, HARRY S. TRUMAN, President of the United

States of America, acting under and by virtue of the authority

vested in me by section 5(b) of the Trading with the Enemy Act of

October 6, 1917, 40 Stat. 415, as amended (section 5(b) of Appendix

to Title 50), and section 4 of the act of March 9, 1933, 48 Stat. 2

(this section) and by virtue of all other authority vested in me,

do hereby, in the interest of the internal management of the

Government, proclaim, order, direct, and declare that the said

proclamations of March 6 and March 9, 1933, and Executive order of

March 10, 1933, as amended, are further amended to exclude from

their scope banking institutions which are members of the Federal

Reserve System: Provided, however, That no banking institution

shall pay out any gold coin, gold bullion, or gold certificates,

except as authorized by the Secretary of the Treasury, or allow the

withdrawal of any currency for hoarding.

This proclamation shall become effective as of March 15, 1947.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 212, 213 of this title.

-CITE-

12 USC Sec. 95a 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER IV - REGULATION OF THE BANKING BUSINESS; POWERS AND

DUTIES OF NATIONAL BANKS

-HEAD-

Sec. 95a. Regulation of transactions in foreign exchange of gold

and silver; property transfers; vested interests, enforcement

and penalties

-STATUTE-

(1) During the time of war, the President may, through any agency

that he may designate, and under such rules and regulations as he

may prescribe, by means of instructions, licenses, or otherwise -

(A) investigate, regulate, or prohibit, any transactions in

foreign exchange, transfers of credit or payments between, by,

through, or to any banking institution, and the importing,

exporting, hoarding, melting, or earmarking of gold or silver

coin or bullion, currency or securities, and

(B) investigate, regulate, direct and compel, nullify, void,

prevent or prohibit, any acquisition holding, withholding, use,

transfer, withdrawal, transportation, importation or exportation

of, or dealing in, or exercising any right, power, or privilege

with respect to, or transactions involving, any property in which

any foreign country or a national thereof has any interest,

by any person, or with respect to any property, subject to the

jurisdiction of the United States; and any property or interest of

any foreign country or national thereof shall vest, when, as, and

upon the terms, directed by the President, in such agency or person

as may be designated from time to time by the President, and upon

such terms and conditions as the President may prescribe such

interest or property shall be held, used, administered, liquidated,

sold, or otherwise dealt with in the interest of and for the

benefit of the United States, and such designated agency or person

may perform any and all acts incident to the accomplishment or

furtherance of these purposes; and the President shall, in the

manner hereinabove provided, require any person to keep a full

record of, and to furnish under oath, in the form of reports or

otherwise, complete information relative to any act or transaction

referred to in this subdivision either before, during, or after the

completion thereof, or relative to any interest in foreign

property, or relative to any property in which any foreign country

or any national thereof has or has had any interest, or as may be

otherwise necessary to enforce the provisions of this subdivision,

and in any case in which a report could be required, the President

may, in the manner hereinabove provided, require the production, or

if necessary to the national security or defense, the seizure, of

any books of account, records, contracts, letters, memoranda, or

other papers, in the custody or control of such person.

(2) Any payment, conveyance, transfer, assignment, or delivery of

property or interest therein, made to or for the account of the

United States, or as otherwise directed, pursuant to this section

or any rule, regulation, instruction, or direction issued hereunder

shall to the extent thereof be a full acquittance and discharge for

all purposes of the obligation of the person making the same; and

no person shall be held liable in any court for or in respect to

anything done or omitted in good faith in connection with the

administration of, or in pursuance of and in reliance on, this

section, or any rule, regulation, instruction, or direction issued

hereunder.

(3) As used in this subdivision the term ''United States'' means

the United States and any place subject to the jurisdiction

thereof; Provided, however, That the foregoing shall not be

construed as a limitation upon the power of the President, which is

hereby conferred, to prescribe from time to time, definitions, not

inconsistent with the purposes of this subdivision, for any or all

of the terms used in this subdivision. As used in this subdivision

the term ''person'' means an individual, partnership, association,

or corporation.

(4) The authority granted to the President by this section does

not include the authority to regulate or prohibit, directly or

indirectly, the importation from any country, or the exportation to

any country, whether commercial or otherwise, regardless of format

or medium of transmission, of any information or informational

materials, including but not limited to, publications, films,

posters, phonograph records, photographs, microfilms, microfiche,

tapes, compact disks, CD ROMs, artworks, and news wire feeds. The

exports exempted from regulation or prohibition by this paragraph

do not include those which are otherwise controlled for export

under section 2404 of title 50, Appendix, or under section 2405 of

title 50, Appendix to the extent that such controls promote the

nonproliferation or antiterrorism policies of the United States, or

with respect to which acts are prohibited by chapter 37 of title

18.

-SOURCE-

(Oct. 6, 1917, ch. 106, Sec. 5(b), 40 Stat. 415; Sept. 24, 1918,

ch. 176, Sec. 5, 40 Stat. 966; Mar. 9, 1933, ch. 1, title I, Sec.

2, 48 Stat. 1; May 7, 1940, ch. 185, Sec. 1, 54 Stat. 179; Dec. 18,

1941, ch. 593, title III, Sec. 301, 55 Stat. 839; Proc. No. 2695,

eff. July 4, 1946, 11 F.R. 7517, 69 Stat. 1352; Pub. L. 95-223,

title I, Sec. 101(a), 102, 103(b), Dec. 28, 1977, 91 Stat. 1625,

1626; Pub. L. 100-418, title II, Sec. 2502(a)(1), Aug. 23, 1988,

102 Stat. 1371; Pub. L. 103-236, title V, Sec. 525(b)(1), Apr. 30,

1994, 108 Stat. 474.)

-COD-

CODIFICATION

Section 5(b) of act Oct. 6, 1917, is part of the Trading with the

Enemy Act and is also classified to section 5(b) of the Appendix to

Title 50, War and National Defense.

Words '', including the Philippine Islands, and the several

courts of first instance of the Commonwealth of the Philippine

Islands shall have jurisdiction in all cases, civil or criminal,

arising under this section in the Philippine Islands and concurrent

jurisdiction with the district courts of the United States of all

cases, civil or criminal, arising upon the high seas'' following

''to the jurisdiction thereof:'' in subsec. (3) were omitted on

authority of 1946 Proc. No. 2695, which granted the Philippine

Islands independence, and which was issued pursuant to section 1394

of Title 22, Foreign Relations and Intercourse. Proc. No. 2695 is

set out as a note under section 1394 of Title 22.

-MISC3-

AMENDMENTS

1994 - Par. (4). Pub. L. 103-236 amended par. (4) generally.

Prior to amendment, par. (4) read as follows: ''The authority

granted to the President in this section does not include the

authority to regulate or prohibit, directly or indirectly, the

importation from any country, or the exportation to any country,

whether commercial or otherwise, of publications, films, posters,

phonograph records, photographs, microfilms, microfiche, tapes, or

other informational materials, which are not otherwise controlled

for export under section 2404 of title 50, Appendix, or with

respect to which no acts are prohibited by chapter 37 of title

18.''

1988 - Par. (4). Pub. L. 100-418 added par. (4).

1977 - Par. (1). Pub. L. 95-223, Sec. 101(a), 102, substituted

''During the time of war, the President may, through any agency

that he may designate, and under such rules and regulations'' for

''During the time of war or during any other period of national

emergency declared by the President, the President may, through any

agency, that he may designate, or otherwise, and under such rules

and regulations'' in the provisions preceding subpar. (A), and, in

the provisions following subpar. (B), struck out ''; and the

President may, in the manner hereinabove provided, take other and

further measures not inconsistent herewith for the enforcement of

the subdivision'' after ''control of such person''.

Par. (3). Pub. L. 95-223, Sec. 103(b), struck out provisions that

whoever willfully violated any of the provisions of this

subdivision or of any license, order, rule, or regulation issued

thereunder, could be fined not more than $10,000, or, if a natural

person, could be imprisoned for not more than ten years, or both;

and that any officer, director, or agent of any corporation who

knowingly participated in that violation could be punished by a

like fine, imprisonment, or both.

1941 - Act Dec. 18, 1941, broadened the powers of the President

to take, administer, control, use and liquidate foreign-owned

property and added a flexibility of control which enabled the

President and the agencies designated by him to cope with the

problems surrounding alien property, its ownership or control, on

the basis of the particular facts in each case.

1940 - Act May 7, 1940, included dealings in evidences of

indebtedness or ownership of property in which foreign states,

nationals or political subdivisions thereof have an interest.

1933 - Act Mar. 9, 1933, amended section generally by, among

other things, extending the President's power to any time of war or

national emergency, by permitting regulations to be issued by any

agency designated by the President, by providing for the furnishing

under oath of complete information relative to transactions under

this section and by placing sanctions on violations to the extent

of a $10,000 fine or ten years imprisonment.

1918 - Act Sept. 24, 1918, inserted provisions relating to the

hoarding or melting of gold or silver coin or bullion or currency

and to the regulation of transactions in bonds or certificates of

indebtedness.

-TRANS-

DELEGATION OF POWERS

Delegation of President's powers under this section to Secretary

of the Treasury and Alien Property Custodian; and transfer of Alien

Property Custodian's powers to Attorney General, see Ex. Ord. Nos.

9095 and 9788, set out as notes under section 6 of the Appendix to

Title 50, War and National Defense.

All powers conferred upon President by this section delegated to

Secretary of the Treasury by Memorandum of the President dated Feb.

12, 1942, 7 F.R. 1409.

-MISC5-

ADMINISTRATION OF EXPORT ADMINISTRATION ACT

For provisions relating to the administration of the Export

Administration Act, see Executive Orders set out as notes under

section 2403 of Title 50, Appendix, War and National Defense.

LIMITATION ON EXERCISE OF EMERGENCY AUTHORITIES

Section 525(b)(2) of Pub. L. 103-236 provided that: ''The

authorities conferred upon the President by section 5(b) of the

Trading With the Enemy Act (this section), which were being

exercised with respect to a country on July 1, 1977, as a result of

a national emergency declared by the President before such date,

and are being exercised on the date of the enactment of this Act

(Apr. 30, 1994), do not include the authority to regulate or

prohibit, directly or indirectly, any activity which, under section

5(b)(4) of the Trading With the Enemy Act, as amended by paragraph

(1) of this subsection, may not be regulated or prohibited.''

Section 2502(a)(2) of Pub. L. 100-418 provided that: ''The

authorities conferred upon the President by section 5(b) of the

Trading With the Enemy Act (this section), which were being

exercised with respect to a country on July 1, 1977, as a result of

a national emergency declared by the President before such date,

and are being exercised on the date of the enactment of this Act

(Aug. 23, 1988), do not include the authority to regulate or

prohibit, directly or indirectly, any activity which, under section

5(b)(4) of the Trading With the Enemy Act, as added by paragraph

(1) of this subsection, may not be regulated or prohibited.''

EXTENSION AND TERMINATION OF NATIONAL EMERGENCY POWERS UNDER THE

TRADING WITH THE ENEMY ACT

Section 101(b), (c) of Pub. L. 95-223 provided that:

''(b) Notwithstanding the amendment made by subsection (a)

(amending par. (1) of this section), the authorities conferred upon

the President by section 5(b) of the Trading With the Enemy Act

(this section), which were being exercised with respect to a

country on July 1, 1977, as a result of a national emergency

declared by the President before such date, may continue to be

exercised with respect to such country, except that, unless

extended, the exercise of such authorities shall terminate (subject

to the savings provisions of the second sentence of section 101(a)

of the National Emergencies Act (section 1601(a) of Title 50, War

and National Defense)) at the end of the two-year period beginning

on the date of enactment of the National Emergencies Act (Sept 14,

1976). The President may extend the exercise of such authorities

for one-year periods upon a determination for each such extension

that the exercise of such authorities with respect to such country

for another year is in the national interest of the United States.

''(c) The termination and extension provisions of subsection (b)

of this section supersede the provisions of section 101(a) (section

1601(a) of Title 50, War and National Defense) and of title II

(section 1621 et seq. of Title 50) of the National Emergencies Act

to the extent that the provisions of subsection (b) of this section

are inconsistent with those provisions.''

REMOVAL OF LIMITATIONS AND RESTRAINTS IN FINANCING EXPORTS

Pub. L. 92-126, Sec. 2, Aug. 17, 1971, 85 Stat. 346, provided

that: ''In connection with section 2 of Executive Order Number

11387, dated January 1, 1968 (formerly set out below) and any rule,

regulation, or guideline established by the Board of Governors of

the Federal Reserve System in connection with a voluntary foreign

credit restraint program, there shall be no limitation or

restraint, or suggestion that there be a limitation or restraint,

on the part of any bank or financial institution in connection with

the extension of credit for the purpose of financing exports of the

United States.''

WORLD WAR II ALIEN PROPERTY CUSTODIAN

Reestablishment and termination of Office of Alien Property

Custodian during World War II, see notes under section 6 of the

Appendix to Title 50, War and National Defense.

DIPLOMATIC PROPERTY OF GERMANY AND JAPAN

Ex. Ord. No. 9760, July 24, 1946, 11 F.R. 7999, set out in notes

to section 6 of Title 50, Appendix, War and National Defense,

supersedes conflicting provisions of Ex. Ord. No. 8389, set out

below.

-EXEC-

EXECUTIVE ORDER NO. 6260

Ex. Ord. No. 6260, Aug. 28, 1933, as amended by Ex. Ord. No.

6359, Oct. 25, 1933; Ex. Ord. No. 6556, Jan. 12, 1934; Ex. Ord. No.

6560, Jan. 15, 1934; Ex. Ord. No. 10896, Nov. 29, 1960, 25 F.R.

12281; Ex. Ord. No. 10905, Jan. 14, 1961, 26 F.R. 321; Ex. Ord. No.

11037, July 20, 1962, 27 F.R. 6967, formerly set out as a note

under this section, which related to the hoarding, export, and

earmarking of gold coin, bullion, or currency, and transactions in

foreign exchange, was revoked by Ex. Ord. No. 11825, Dec. 31, 1974,

40 F.R. 1003, set out below.

EXECUTIVE ORDER NO. 6560

Ex. Ord. No. 6560, Jan. 15, 1934, as amended by Ex. Ord. No.

8389. April 10, 1940, 6 p.m. E. S. T., 5 F.R. 1400; Ex. Ord. No.

8405, May 10, 1940, 7:55 a.m. E. S. T., 5 F.R. 1677; Ex. Ord. No.

8493, July 25, 1940, 5 F.R. 2667, formerly set out as a note under

this section, which declared the existence of a national emergency

and prescribed regulations for the investigation, regulation, and

prohibition of transactions in foreign exchange, transfers of

credit between or payments by banking institutions, and export of

currency or silver coin by persons within the United States or

subject to its jurisdiction, was based on authority of section 95a

of this title (act Oct. 6, 1917, ch. 106, Sec. 5(b), 40 Stat. 415,

comprising part of the Trading With the Enemy Act) which was

amended in 1977 to remove the powers of the President to regulate

transactions during a period of national emergency other than a

war.

EX. ORD. NO. 8389. REGULATING TRANSACTIONS IN FOREIGN EXCHANGE AND

FOREIGN-OWNED PROPERTY, PROVIDING FOR THE REPORTING OF ALL

FOREIGN-OWNED PROPERTY

Ex. Ord. No. 8389, Apr. 10, 1940, 5 F.R. 1400, as amended by Ex.

Ord. No. 8405, May 10, 1940, 5 F.R. 1677; Ex. Ord. No. 8446, June

17, 1940, 5 F.R. 2279; Ex. Ord. No. 8484, July 15, 1940, 5 F.R.

2586; Ex. Ord. No. 8493, July 25, 1940, 5 F.R. 2667; Ex. Ord. No.

8565, Oct. 10, 1940, 5 F.R. 4062; Ex. Ord. No. 8701, Mar. 4, 1941,

6 F.R. 1285; Ex. Ord. No. 8711, Mar. 13, 1941, 6 F.R. 1443; Ex.

Ord. No. 8721, Mar. 24, 1941, 6 F.R. 1622; Ex. Ord. No. 8746, Apr.

28, 1941, 6 F.R. 2187; Ex. Ord. No. 8785, June 14, 1941, 6 F.R.

2897; Ex. Ord. No. 8832, July 26, 1941, 6 F.R. 3715; Ex. Ord. No.

8963, Dec. 9, 1941, 6 F.R. 6348; Ex. Ord. No. 8998, Dec. 26, 1941,

6 F.R. 6787, provided:

SECTION 1. CERTAIN FOREIGN BANKING TRANSACTIONS PROHIBITED

All of the following transactions are prohibited, except as

specifically authorized by the Secretary of the Treasury by means

of regulations, rulings, instructions, licenses, or otherwise, if

(i) such transactions are by, or on behalf of, or pursuant to the

direction of any foreign country designated in this Order, or any

national thereof, or (ii) such transactions involve property in

which any foreign country designated in this Order, or any national

thereof, has at any time on or since the effective date of this

Order had any interest of any nature whatsoever, direct or

indirect:

A. All transfers of credit between any banking institutions

within the United States; and all transfers of credit between any

banking institution within the United States and any banking

institution outside the United States (including any principal,

agent, home office, branch, or correspondent outside the United

States, of a banking institution within the United States);

B. All payments by or to any banking institution within the

United States;

C. All transactions in foreign exchange by any person within the

United States;

D. The export or withdrawal from the United States, or the

earmarking of gold or silver coin or bullion or currency by any

person within the United States;

E. All transfers, withdrawals or exportations of, or dealings in,

any evidences of indebtedness or evidences of ownership of property

by any person within the United States; and

F. Any transaction for the purpose or which has the effect of

evading or avoiding the foregoing prohibitions.

SECTION 2. DEALINGS IN FOREIGN SECURITIES; REGULATIONS

A. All of the following transactions are prohibited, except as

specifically authorized by the Secretary of the Treasury by means

of regulations, rulings, instructions, licenses, or otherwise:

(1) The acquisition, disposition or transfer of, or other dealing

in, or with respect to, any security or evidence thereof on which

there is stamped or imprinted, or to which there is affixed or

otherwise attached, a tax stamp or other stamp of a foreign country

designated in this Order or a notarial or similar seal which by its

contents indicates that it was stamped, imprinted, affixed or

attached within such foreign country, or where the attendant

circumstances disclose or indicate that such stamp or seal may, at

any time, have been stamped, imprinted, affixed or attached

thereto; and

(2) The acquisition by, or transfer to, any person within the

United States of any interest in any security or evidence thereof

if the attendant circumstances disclose or indicate that the

security or evidence thereof is not physically situated within the

United States.

B. The Secretary of the Treasury may investigate, regulate, or

prohibit under such regulations, rulings, or instructions as he may

prescribe, by means of licenses or otherwise, the sending, mailing,

importing or otherwise bringing, directly or indirectly, into the

United States, from any foreign country, of any securities or

evidences thereof or the receiving or holding in the United States

of any securities or evidences thereof so brought into the United

States.

SECTION 3. FOREIGN COUNTRIES AFFECTED; EFFECTIVE DATE OF

PROHIBITIONS

The term ''foreign country designated in this Order'' means a

foreign country included in the following schedule, and the term

''effective date of this Order'' means with respect to any such

foreign country, or any national thereof, the date specified in the

following schedule:

(a) April 8, 1940 -

Norway and

Denmark;

(b) May 10, 1940 -

The Netherlands,

Belgium and

Luxembourg;

(c) June 17, 1940 -

France (including Monaco);

(d) July 10, 1940 -

Latvia, Estonia and

Lithuania;

(e) October 9, 1940 -

Rumania;

(f) March 4, 1941 -

Bulgaria;

(g) March 13, 1941 -

Hungary;

(h) March 24, 1941 -

Yugoslavia;

(i) April 28, 1941 -

Greece; and

(j) June 14, 1941 -

Albania,

Andorra,

Austria,

Czechoslovakia,

Danzig,

Finland,

Germany,

Italy,

Liechtenstein,

Poland,

Portugal,

San Marino,

Spain,

Sweden,

Switzerland, and

Union of Soviet Socialist Republics;

(k) June 14, 1941 -

China and

Japan;

(l) June 14, 1941 -

Thailand;

(m) June 14, 1941 -

Hong Kong.

The ''effective date of this Order'' with respect to any foreign

country not designated in this Order shall be deemed to be June 14,

1941.

SECTION 4. RECORDS OF FOREIGN BANKING AND SECURITY TRANSACTIONS;

INVESTIGATIONS

A. The Secretary of the Treasury and/or the Attorney General may

require, by means of regulations, rulings, instructions, or

otherwise, any person to keep a full record of, and to furnish

under oath, in the form of reports or otherwise, from time to time

and at any time or times, complete information relative to, any

transaction referred to in section 5(b) of the Act of October 6,

1917 (40 Stat. 415) (this section), as amended, or relative to any

property in which any foreign country or any national thereof has

any interest of any nature whatsoever, direct or indirect,

including the production of any books of account, contracts,

letters, or other papers, in connection therewith, in the custody

or control of such person, either before or after such transaction

is completed; and the Secretary of the Treasury and/or the Attorney

General may, through any agency, investigate any such transaction

or act, or any violation of the provisions of this Order.

B. Every person engaging in any of the transactions referred to

in sections 1 and 2 of this Order shall keep a full record of each

such transaction engaged in by him, regardless of whether such

transaction is effected pursuant to license or otherwise, and such

record shall be available for examination for at least one year

after the date of such transaction.

SECTION 5. DEFINITIONS

A. As used in the first paragraph of section 1 of this Order

''transactions (which) involve property in which any foreign

country designated in this Order, or any national thereof, has * *

* any interest of any nature whatsoever, direct or indirect,''

shall include but not by way of limitation (i) any payment or

transfer to any such foreign country or national thereof, (ii) any

export or withdrawal from the United States to such foreign

country, and (iii) any transfer of credit, or payment of an

obligation, expressed in terms of the currency of such foreign

country.

B. The term ''United States'' means the United States and any

place subject to the jurisdiction thereof, and the term

''continental United States'' means the States of the United

States, the District of Columbia, and the Territory of Alaska:

Provided, however, That for the purposes of this Order the term

''United States'' shall not be deemed to include any territory

included within the term ''foreign country'' as defined in

paragraph D of this section.

C. The term ''person'' means an individual, partnership,

association, corporation, or other organization.

D. The term ''foreign country'' shall include, but not by way of

limitation,

(i) The state and the government thereof on the effective date of

this Order as well as any political subdivision, agency, or

instrumentality thereof or any territory, dependency, colony,

protectorate, mandate, dominion, possession or place subject to the

jurisdiction thereof.

(ii) Any other government (including any political subdivision,

agency, or instrumentality thereof) to the extent and only to the

extent that such government exercises or claims to exercise de jure

or de facto sovereignty over the area which on such effective date

constituted such foreign country, and

(iii) Any territory which on or since the effective date of this

Order is controlled or occupied by the military, naval or police

forces or other authority of such foreign country;

(iv) Any person to the extent that such person is, or has been,

or to the extent that there is reasonable cause to believe that

such person is, or has been, since such effective date, acting or

purporting to act directly or indirectly for the benefit or on

behalf of any of the foregoing. Hong Kong shall be deemed to be a

foreign country within the meaning of this subdivision.

E. The term ''national'' shall include,

(i) Any person who has been domiciled in, or a subject, citizen

or resident of a foreign country at any time on or since the

effective date of this Order,

(ii) Any partnership, association, corporation or other

organization, organized under the laws of, or which on or since the

effective date of this Order had or has had its principal place of

business in such foreign country, or which on or since such

effective date was or has been controlled by, or a substantial part

of the stock, shares, bonds, debentures, notes, drafts, or other

securities or obligations of which, was or has been owned or

controlled by, directly or indirectly, such foreign country and/or

one or more nationals thereof as herein defined.

(iii) Any person to the extent that such person is, or has been,

since such effective date, acting or purporting to act directly or

indirectly for the benefit or on behalf of any national of such

foreign country, and

(iv) Any other person who there is reasonable cause to believe is

a ''national'' as herein defined.

In any case in which by virtue of the foregoing definition a person

is a national of more than one foreign country, such person shall

be deemed to be a national of each such foreign country. In any

case in which the combined interests of two or more foreign

countries designated in this Order and/or nationals thereof are

sufficient in the aggregate to constitute, within the meaning of

the foregoing, control of 25 per centum or more of the stock,

shares, bonds, debentures, notes, drafts, or other securities or

obligations of a partnership, association, corporation or other

organization, but such control or a substantial part of such stock,

shares, bonds, debentures, notes, drafts, or other securities or

obligations is not held by any one such foreign country and/or

national thereof, such partnership, association, corporation or

other organization shall be deemed to be a national of each of such

foreign countries. The Secretary of the Treasury shall have full

power to determine that any person is or shall be deemed to be a

''national'' within the meaning of this definition, and the foreign

country of which such person is or shall be deemed to be a

national. Without limitation of the foregoing, the term

''national'' shall also include any other person who is determined

by the Secretary of the Treasury to be, or to have been, since such

effective date, acting or purporting to act directly or indirectly

for the benefit or under the direction of a foreign country

designated in this Order or national thereof, as herein defined.

F. The term ''banking institution'' as used in this Order shall

include any person engaged primarily or incidentally in the

business of banking, of granting or transferring credits, or of

purchasing or selling foreign exchange or procuring purchasers and

sellers thereof, as principal or agent, or any person holding

credits for others as a direct or incidental part of his business,

or brokers, and each principal, agent, home office, branch or

correspondent of any person so engaged shall be regarded as a

separate ''banking institution''.

G. The term ''this Order'', as used herein, shall mean Executive

Order No. 8389 of April 10, 1940, as amended.

SECTION 6. CONSTRUCTION WITH EX. ORD. NO. 6560; SAVING CLAUSE

Executive Order No. 8389 of April 10, 1940, as amended, shall no

longer be deemed to be an amendment to or a part of Executive Order

No. 6560 of January 15, 1934. Executive Order No. 6560 of January

15, 1934, and the Regulations of November 12, 1934, are hereby

modified in so far as they are inconsistent with the provisions of

this Order, and except as so modified, continue in full force and

effect. Nothing herein shall be deemed to revoke any license,

ruling, or instruction now in effect and issued pursuant to

Executive Order No. 6560 of January 15, 1934, as amended, or

pursuant to this Order; provided, however, that all such licenses,

rulings, or instructions shall be subject to the provisions

hereof. Any amendment, modification or revocation by or pursuant

to the provisions of this Order of any orders, regulations,

rulings, instructions or licenses shall not affect any act done, or

any suit or proceeding had or commenced in any civil or criminal

case prior to such amendment, modification or revocation, and all

penalties, forfeitures and liabilities under any such orders,

regulations, rulings, instructions or licenses shall continue and

may be enforced as if such amendment, modification or revocation

had not been made.

SECTION 7. REGULATIONS BY SECRETARY OF THE TREASURY

Without limitation as to any other powers or authority of the

Secretary of the Treasury or the Attorney General under any other

provision of this Order, the Secretary of the Treasury is

authorized and empowered to prescribe from time to time

regulations, rulings, and instructions to carry out the purposes of

this Order and to provide therein or otherwise the conditions under

which licenses may be granted by or through such officers or

agencies as the Secretary of the Treasury may designate, and the

decision of the Secretary with respect to the granting, denial or

other disposition of an application or license shall be final.

SECTION 8. OFFENSES AND PENALTIES UNDER ACT OCT. 6, 1917

Section 5(b) of the Act of October 6, 1917, as amended, provides

in part:

''* * * Whoever willfully violates any of the provisions of this

subdivision or of any license, order, rule or regulation issued

thereunder, shall, upon conviction, be fined not more than $10,000,

or, if a natural person, may be imprisoned for not more than ten

years, or both; and any officer, director, or agent of any

corporation who knowingly participates in such violation may be

punished by a like fine, imprisonment, or both.''

SECTION 9. AMENDMENTS OF ORDER AND REGULATIONS PRESCRIBED

THEREUNDER

This Order and any regulations, rulings, licenses or instructions

issued hereunder may be amended, modified or revoked at any time.

(Ex. Ord. No. 8389 and the regulations and general rulings issued

thereunder by the Secretary of the Treasury were approved and

confirmed by Res. May 7, 1940, ch. 185, Sec. 2, 54 Stat. 179.)

(Ex. Ord. No. 9760, July 24, 1946, 11 F.R. 7999, 50 U.S.C. App.,

Sec. 6 note, relating to diplomatic property of Germany and Japan

in the United States, supersedes conflicting provisions of Ex. Ord.

No. 8389, set out above.)

EXECUTIVE ORDERS NOS. 8446, 8484, 8565, 8701, 8711, 8721, 8746

The application of Ex. Ord. No. 6560, Sec. 9 to 14, to French

property by Ex. Ord. No. 8446, 5 F.R. 2279; to Latvian, Estonian

and Lithuanian property by Ex. Ord. No. 8484, 5 F.R. 2586; to

Rumanian property by Ex. Ord. No. 8565, 5 F.R. 4062; to Bulgarian

property by Ex. Ord. No. 8701, 6 F.R. 1285; to Hungarian property

by Ex. Ord. No. 8711, 6 F.R. 1443; to Yugoslav property by Ex. Ord.

No. 8721, 6 F.R. 1622; to Greek property by Ex. Ord. No. 8746, 6

F.R. 2187, was incorporated in the provisions of Ex. Ord. No. 8389

as amended by Ex. Ord. No. 8785, set out above.

EX. ORD. NO. 9747. FUNCTIONS OF ALIEN PROPERTY CUSTODIAN AND

TREASURY DEPARTMENT CONTINUED IN PHILIPPINES

Ex. Ord. No. 9747, July 3, 1946, 11 F.R. 7518, provided:

The terms and provisions of Executive Order 9095 of March 11,

1942, as amended (formerly set out as a note under section 6 of the

Appendix to Title 50, War and National Defense), and Executive

Order No. 8389 of April 10, 1940, as amended (set out above), shall

continue in force in the Philippines after July 4, 1946, and all

powers and authority delegated by the said Executive Orders to the

Alien Property Custodian and to the Secretary of the Treasury,

respectively, shall after July 4, 1946, continue to be exercised in

the Philippines by the said officers, respectively, as therein

provided.

EXECUTIVE ORDER NO. 10348

Ex. Ord. No. 10348, Apr. 26, 1952, 17 F.R. 3769, which provided

that Ex. Ord. No. 8389, Apr. 10, 1940, 5 F.R. 1400, as amended, set

out above, and all delegations, designations, regulations, rulings,

instructions, and licenses issued under such order, should be

continued in force according to their terms for the duration of the

period of the national emergency proclaimed by Proclamation No.

2914 of December 16, 1950, set out as a note preceding section 1 of

the Appendix to Title 50, War and National Defense, was superseded

by Ex. Ord. No. 11281, May 13, 1966, 31 F.R. 7215, set out as a

note under section 6 of the Appendix to Title 50.

EXECUTIVE ORDER NO. 11387

Ex. Ord. No. 11387, Jan. 1, 1968, 33 F.R. 47, which prohibited

transfers of capital to or within a foreign country or to any

national thereof outside the United States by a person subject to

the jurisdiction of the United States who owns a 10 percent

interest in a foreign business venture, was revoked by Ex. Ord. No.

12553, Feb. 25, 1986, 51 F.R. 7237.

EX. ORD. NO. 11825. REVOCATION OF EXECUTIVE ORDERS PERTAINING TO

REGULATION OF ACQUISITION OF, HOLDING OF, OR OTHER TRANSACTIONS IN

GOLD

Ex. Ord. No. 11825, Dec. 31, 1974, 40 F.R. 1003, provided:

By virtue of the authority vested in me by section 1 of the Act

of August 8, 1950, 64 Stat. 419, and section 5(b) of the Act of

October 6, 1917, as amended (12 U.S.C. 95a) (this section), and as

President of the United States, and in view of the provisions of

section 3 of Public Law 93-110, 87 Stat. 352, as amended by section

2 of Public Law 93-373, 88 Stat. 445, (set out as notes under

section 442 of former Title 31, Money and Finance), it is ordered

as follows:

Section 1. Executive Order No. 6260 of August 28, 1933, as

amended by Executive Order No. 6359 of October 25, 1933, Executive

Order No. 6556 of January 12, 1934, Executive Order No. 6560 of

January 15, 1934, Executive Order No. 10896 of November 29, 1960,

Executive Order No. 10905 of January 14, 1961, and Executive Order

No. 11037 of July 20, 1962; the fifth and sixth paragraphs of

Executive Order No. 6073, March 10, 1933 (formerly set out as a

note under section 95 of this title); sections 3 and 4 of Executive

Order No. 6359 of October 25, 1933 (formerly set out as a note

under section 248 of this title); and paragraph 2(d) of Executive

Order No. 10289 of September 17, 1951 (set out as a note under

section 301 of Title 3, The President), are hereby revoked.

Section 2. The revocation, in whole or in part, of such prior

Executive orders relating to regulation on the acquisition of,

holding of, or other transactions in gold shall not affect any act

completed, or any right accruing or accrued, or any suit or

proceeding finished or started in any civil or criminal cause prior

to the revocation, but all such liabilities, penalties, and

forfeitures under the Executive orders shall continue and may be

enforced in the same manner as if the revocation had not been made.

This order shall become effective on December 31, 1974.

Gerald R. Ford.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 95b, 212, 3409, 3413 of

this title; title 22 sections 6004, 6005; title 31 section 5315.

-CITE-

12 USC Sec. 95b 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER IV - REGULATION OF THE BANKING BUSINESS; POWERS AND

DUTIES OF NATIONAL BANKS

-HEAD-

Sec. 95b. Ratification of acts of President and Secretary of the

Treasury under section 95a

-STATUTE-

The actions, regulations, rules, licenses, orders and

proclamations heretofore or hereafter taken, promulgated, made, or

issued by the President of the United States or the Secretary of

the Treasury since March 4, 1933, pursuant to the authority

conferred by section 95a of this title, are approved and confirmed.

-SOURCE-

(Mar. 9, 1933, ch. 1, title I, Sec. 1, 48 Stat. 1.)

-COD-

CODIFICATION

This section is also set out as a note under section 5 of Title

50, Appendix, War and National Defense.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 212 of this title.

-CITE-

12 USC SUBCHAPTER V - OBTAINING AND ISSUING CIRCULATING

NOTES 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER V - OBTAINING AND ISSUING CIRCULATING NOTES

.

-HEAD-

SUBCHAPTER V - OBTAINING AND ISSUING CIRCULATING NOTES

-CITE-

12 USC Sec. 101 to 110 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER V - OBTAINING AND ISSUING CIRCULATING NOTES

-HEAD-

Sec. 101 to 110. Repealed. Pub. L. 103-325, title VI, Sec.

602(e)(5)-(11), (f)(2)-(4)(A), (g)(9), Sept. 23, 1994, 108

Stat. 2292, 2294

-MISC1-

Section 101, acts Mar. 14, 1900, ch. 41, Sec. 12, 31 Stat. 49;

Oct. 5, 1917, ch. 74, Sec. 2, 40 Stat. 342, provided for delivery

of circulating notes in blank to national banking associations

depositing bonds with Treasurer of United States.

Section 101a, R.S. Sec. 5159; Dec. 23, 1913, ch. 6, Sec. 17, 38

Stat. 268; June 21, 1917, ch. 32, Sec. 9, 40 Stat. 239, related to

deposit of bonds to secure circulating notes.

Section 102, R.S. Sec. 5158, construed term ''United States

bonds'' as including registered bonds.

Section 103, act Oct. 5, 1917, ch. 74, Sec. 3, 40 Stat. 342,

related to denominations of notes and limitation on amount of $1

and $2 notes.

Section 104, R.S. Sec. 5172; May 30, 1908, ch. 229, Sec. 11, 35

Stat. 551; Dec. 23, 1913, ch. 6, Sec. 27, 38 Stat. 274; Aug. 4,

1914, ch. 225, 38 Stat. 682; Mar. 3, 1919, ch. 101, Sec. 4, 40

Stat. 1315, related to printing and form of circulating notes.

Section 105, act June 20, 1874, ch. 343, Sec. 5, 18 Stat. 124,

provided that Comptroller of Currency was to print charter numbers

of association on national bank notes.

Section 106, act Mar. 3, 1875, ch. 130, Sec. 1, 18 Stat. 372,

provided for printing national-bank notes on distinctive paper

adopted by Secretary of the Treasury.

Section 107, R.S. Sec. 5173, related to custody of plates and

dies procured for printing notes and payment of expenses.

Section 108, R.S. Sec. 5174; Feb. 27, 1877, ch. 69, Sec. 1, 19

Stat. 252, related to examination of plates, dies, and other

material from which national-bank circulation was printed, and

destruction of obsolete material.

Section 109, R.S. Sec. 5182; Jan. 13, 1920, ch. 38, 41 Stat. 387,

provided that banks could issue and circulate notes the same as

money if signed by officers in manner of obligatory promissory

notes payable on demand at place of business, and specified demands

for which such notes were to be received.

Section 110, R.S. Sec. 5183; Feb. 18, 1875, ch. 80, Sec. 1, 18

Stat. 320, prohibited banks from issuing unauthorized notes.

-CITE-

12 USC SUBCHAPTER VI - REDEMPTION AND REPLACEMENT OF

CIRCULATING NOTES 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER VI - REDEMPTION AND REPLACEMENT OF CIRCULATING NOTES

.

-HEAD-

SUBCHAPTER VI - REDEMPTION AND REPLACEMENT OF CIRCULATING NOTES

-CITE-

12 USC Sec. 121 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER VI - REDEMPTION AND REPLACEMENT OF CIRCULATING NOTES

-HEAD-

Sec. 121. Repealed. Pub. L. 103-325, title VI, Sec. 602(f)(4)(B),

Sept. 23, 1994, 108 Stat. 2292

-MISC1-

Section, acts June 20, 1874, ch. 343, Sec. 3, 18 Stat. 123; Dec.

23, 1913, ch. 6, Sec. 20, 38 Stat. 271; May 29, 1920, ch. 214, Sec.

1, 41 Stat. 654, provided that every national banking association

was to establish reserve in Treasury for redemption of notes by

Treasurer of United States, forward notes unfit for use to

Treasurer for disposition, and reimburse expenses of Treasury.

-CITE-

12 USC Sec. 121a 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER VI - REDEMPTION AND REPLACEMENT OF CIRCULATING NOTES

-HEAD-

Sec. 121a. Redemption of notes unidentifiable as to bank of issue

-STATUTE-

Whenever any Federal Reserve bank notes or Federal Reserve notes

are presented to the Treasurer of the United States for redemption

and such notes cannot be identified as to the bank of issue or the

bank through which issued, the Treasurer of the United States may

redeem such notes under such rules and regulations as the Secretary

of the Treasury may prescribe.

-SOURCE-

(June 13, 1933, ch. 62, Sec. 1, 48 Stat. 127; Pub. L. 89-427, Sec.

4(a), May 20, 1966, 80 Stat. 161; Pub. L. 103-325, title VI, Sec.

602(g)(8)(A), Sept. 23, 1994, 108 Stat. 2294.)

-MISC1-

AMENDMENTS

1994 - Pub. L. 103-325, Sec. 602(g)(8)(A)(ii), which directed the

amendment of this section by striking out '', and the notes, other

than Federal Reserves notes, so redeemed shall be forwarded to the

Comptroller of the Currency for cancellation and destruction''

after ''Treasury may prescribe'', was executed by striking out text

which contained the word ''Reserves'' rather than ''Reserve'', to

reflect the probable intent of Congress.

Pub. L. 103-325, Sec. 602(g)(8)(A)(i), substituted ''Whenever any

Federal Reserve bank notes,'' for ''Whenever any national-bank

notes, Federal Reserve bank notes,''.

1966 - Pub. L. 89-427 excepted Federal Reserve notes from the

category of notes which, upon redemption by the Treasurer of the

United States, must be forwarded to the Comptroller of the Currency

for cancellation and destruction.

-TRANS-

TRANSFER OF FUNCTIONS

For transfer of functions to Secretary of the Treasury, see note

set out under section 121 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 122a of this title.

-CITE-

12 USC Sec. 122 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER VI - REDEMPTION AND REPLACEMENT OF CIRCULATING NOTES

-HEAD-

Sec. 122. Repealed. Pub. L. 97-258, Sec. 5(b), Sept. 13, 1982, 96

Stat. 1068

-MISC1-

Section, act July 14, 1890, ch. 708, Sec. 6, 26 Stat. 289,

related to deposits received by the Treasurer from national banks

made to redeem circulating notes of such banks and disposition of

those deposits.

-CITE-

12 USC Sec. 122a 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER VI - REDEMPTION AND REPLACEMENT OF CIRCULATING NOTES

-HEAD-

Sec. 122a. Redeemed notes of unidentifiable issue; funds charged

against

-STATUTE-

Federal Reserve bank notes redeemed by the Treasurer of the

United States under section 121a of this title shall be charged

against the balance of deposits for the retirement of Federal

Reserve bank notes under the provisions of sections 122 and 445

(FOOTNOTE 1) of this title; and charges for Federal Reserve notes

redeemed by the Treasurer of the United States under section 121a

of this title shall be apportioned among the twelve Federal Reserve

banks as determined by the Board of Governors of the Federal

Reserve System.

(FOOTNOTE 1) See References in Text note below.

-SOURCE-

(June 13, 1933, ch. 62, Sec. 2, 48 Stat. 128; Pub. L. 89-427, Sec.

4(b), May 20, 1966, 80 Stat. 161; Pub. L. 103-325, title VI, Sec.

602(g)(8)(B), Sept. 23, 1994, 108 Stat. 2294.)

-REFTEXT-

REFERENCES IN TEXT

Section 122 of this title, referred to in text, was repealed by

Pub. L. 97-258, Sec. 5(b), Sept. 13, 1982, 96 Stat. 1068.

Section 445 of this title, referred to in text, was repealed by

act June 12, 1945, ch. 186, Sec. 3, 59 Stat. 238.

-MISC2-

AMENDMENTS

1994 - Pub. L. 103-325 struck out ''National-bank notes and''

before ''Federal Reserve bank notes redeemed'' and ''national-bank

notes and'' after ''deposits for the retirement of''.

1966 - Pub. L. 89-427 substituted provisions allowing the Board

of Governors of the Federal Reserve System to determine the proper

apportioning between the Federal Reserve banks of the charges for

the redemption by the Treasurer of the United States of Federal

Reserve notes that are unidentifiable as to bank of issue for

provisions that set out the exact formula for determining the

proper apportioning of charges using a proportion based upon the

amount of Federal Reserve notes of each Federal Reserve bank in

circulation in the 31st day of December of the year preceding the

date of redemption, with the amount apportioned under the formula

charged by the Treasurer of the United States against deposit in

the gold-redemption fund made by the bank or its Federal Reserve

agent.

-TRANS-

TRANSFER OF FUNCTIONS

For transfer of functions to Secretary of the Treasury, see note

set out under section 121 of this title.

-CITE-

12 USC Sec. 123 to 126 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER VI - REDEMPTION AND REPLACEMENT OF CIRCULATING NOTES

-HEAD-

Sec. 123 to 126. Repealed. Pub. L. 103-325, title VI, Sec.

602(e)(12), (13), (f)(4)(C), (6), Sept. 23, 1994, 108 Stat.

2292, 2293

-MISC1-

Section 123, R.S. Sec. 5195; June 20, 1874, ch. 343, Sec. 3, 18

Stat. 123, related to redemption of notes by bank at own counter.

Section 124, R.S. Sec. 5184; June 23, 1874, ch. 455, Sec. 1, 18

Stat. 206, related to destroying and replacing notes unfit for use.

Section 125, act July 28, 1892, ch. 317, 27 Stat. 322, related to

redemption of lost or stolen notes.

Section 126, act June 20, 1874, ch. 343, Sec. 8, 18 Stat. 125,

related to duty of Treasurer, designated depositaries, and

national-bank depositaries of United States to return notes of

failed or liquidated banks to Treasury for redemption.

-CITE-

12 USC Sec. 127 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER VI - REDEMPTION AND REPLACEMENT OF CIRCULATING NOTES

-HEAD-

Sec. 127. Repealed. Pub. L. 89-554, Sec. 8(a), Sept. 6, 1966, 80

Stat. 633

-MISC1-

Section, act Mar. 3, 1875, ch. 130, Sec. 3, 18 Stat. 399,

provided for a clerical force for redemption of circulating notes.

-CITE-

12 USC SUBCHAPTER VII - PROCEEDINGS ON FAILURE OF BANK TO

REDEEM CIRCULATING NOTES 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER VII - PROCEEDINGS ON FAILURE OF BANK TO REDEEM

CIRCULATING NOTES

.

-HEAD-

SUBCHAPTER VII - PROCEEDINGS ON FAILURE OF BANK TO REDEEM

CIRCULATING NOTES

-CITE-

12 USC Sec. 131 to 138 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER VII - PROCEEDINGS ON FAILURE OF BANK TO REDEEM

CIRCULATING NOTES

-HEAD-

Sec. 131 to 138. Repealed. Pub. L. 103-325, title VI, Sec.

602(e)(14)-(21), Sept. 23, 1994, 108 Stat. 2292

-MISC1-

Section 131, R.S. Sec. 5226; June 20, 1874, ch. 343, Sec. 3, 18

Stat. 123, related to protest of notes and waiver of demand and

notice of protest.

Section 132, R.S. Sec. 5227, related to appointment by

Comptroller of the Currency of special agent to examine failure of

national banking association to redeem its circulating notes and

provided for forfeiture of association's bonds to United States

based on findings of agent.

Section 133, R.S. Sec. 5228; Feb. 18, 1875, ch. 80, Sec. 1, 18

Stat. 320, prohibited banking associations from continuing in

business after default.

Section 134, R.S. Sec. 5229, provided that, upon declaration of

forfeiture of association's bonds, Comptroller of the Currency was

to notify holders of circulating notes to present notes for payment

and was authorized to cancel bonds pledged by association.

Section 135, R.S. Sec. 5232, related to disposition of redeemed

notes and perpetuation of evidence of payment of such notes.

Section 136, R.S. Sec. 5233, related to cancellation of redeemed

notes.

Section 137, R.S. Sec. 5230, provided Comptroller of the Currency

with option of selling defaulting association's bonds at auction,

rather than cancelling them, and granted United States paramount

lien on all association assets in case of deficiencies from such

sale.

Section 138, R.S. Sec. 5231, related to private sale of

defaulting association's bonds by Comptroller of the Currency.

-CITE-

12 USC SUBCHAPTER VIII - RESERVE CITIES; LAWFUL RESERVES 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER VIII - RESERVE CITIES; LAWFUL RESERVES

.

-HEAD-

SUBCHAPTER VIII - RESERVE CITIES; LAWFUL RESERVES

-CITE-

12 USC Sec. 141 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER VIII - RESERVE CITIES; LAWFUL RESERVES

-HEAD-

Sec. 141. Central reserve and reserve cities; designation

-STATUTE-

The cities of New York and Chicago are designated as central

reserve cities, and the following cities are designated as reserve

cities:

---------------------------------------------------------------------

---------------------------------------------------------------------

Boston Indianapolis

Albany Chicago

Brooklyn and Bronx Peoria

Buffalo Detroit

Philadelphia Grand Rapids

Pittsburgh Milwaukee

Baltimore Minneapolis

Washington St. Paul

Richmond Cedar Rapids

Atlanta Des Moines

Little Rock Dubuque

Louisville Sioux City

Memphis Kansas City, Mo.

Nashville St. Joseph

Cincinnati Jacksonville

Cleveland Birmingham

Columbus New Orleans

Toledo Dallas

El Paso Pueblo

Fort Worth Muskogee

Galveston Oklahoma City

Houston Tulsa

San Antonio Savannah

Waco Seattle

St. Louis Spokane

Lincoln Portland

Omaha Los Angeles

Kansas City, Kans. Oakland

Topeka San Francisco

Wichita Ogden

Helena Salt Lake City

Denver

-------------------------------

The Board of Governors of the Federal Reserve System may at any

time reclassify cities so designated as reserve and central reserve

cities, may add to the number so classified, or terminate the

designation of any cities as such.

-SOURCE-

(R.S. Sec. 5191; Dec. 23, 1913, ch. 6, Sec. 2, 38 Stat. 251; Aug.

23, 1935, ch. 614, title II, Sec. 203(a), 49 Stat. 704.)

-STATAMEND-

CENTRAL RESERVE CITIES

Section 3(b)(1), (2), of Pub. L. 86-114, July 28, 1959, 73

Stat. 263, reclassified New York and Chicago as reserve cities

and terminated the classification of central reserve city and the

authority of the Board of Governors of the Federal Reserve System

to classify or reclassify cities as central reserve cities,

effective 3 years after July 28, 1959. See Central Reserve and

Reserve Cities note, set out under this section.

-COD-

CODIFICATION

R.S. Sec. 5191 derived from act June 3, 1864, ch. 106, Sec. 31,

13 Stat. 108, which was the National Bank Act, and act Mar. 1,

1872, ch. 22, 17 Stat. 32. See section 38 of this title.

-CHANGE-

CHANGE OF NAME

Section 203(a) of act Aug. 23, 1935, changed name of Federal

Reserve Board to Board of Governors of the Federal Reserve System.

-MISC4-

CENTRAL RESERVE AND RESERVE CITIES

Section 3(b) of Pub. L. 86-114, July 28, 1959, 73 Stat. 263,

provided that: ''Effective three years after the date of the

enactment of this Act (July 28, 1959) -

''(1) New York and Chicago are reclassified as reserve cities

under the Federal Reserve Act;

''(2) the classification 'central reserve city' under the

Federal Reserve Act, and the authority of the Board of Governors

of the Federal Reserve System to classify or reclassify cities as

'central reserve cities' under such Act, are terminated;

''(3) section 5192 of the Revised Statutes of the United States

(12 U.S.C., sec. 144) is amended by striking out 'central reserve

or';

''(4) section 2 of the Act of March 3, 1887 (ch. 378; 24 Stat.

560) is repealed;

''(5) the last paragraph of section 2 of the Federal Reserve

act (12 U.S.C., sec. 224) is amended by striking out 'and central

reserve cities';

''(6) section 11(e) of the Federal Reserve Act (12 U.S.C., sec.

248e) is amended by striking out 'and central reserve' each place

it appears;

''(7) the third paragraph (lettered (a)) of section 19 of the

Federal Reserve Act (12 U.S.C., sec. 462) is amended by striking

out 'or central reserve';

''(8) the fifth paragraph (lettered (c)) of such section 19 is

repealed;

''(9) subparagraph (2) of the sixth paragraph of such section

19 (as added by the first section of this Act) is amended by

striking out 'and a member bank in a central reserve city may

hold and maintain the reserve balances which are in effect under

this section for member banks described in paragraph (a) or

(b),';

''(10) the seventh paragraph of such section 19 is amended by

striking out clauses (1), (2), (3), and (4) and inserting in lieu

thereof the following: '(1) by member banks in reserve cities,

(2) by member banks not in reserve cities, or (3) by all member

banks'; and

''(11) the seventh paragraph of such section is further amended

by striking out 'and central reserve cities'.''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 481 of this title.

-CITE-

12 USC Sec. 142 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER VIII - RESERVE CITIES; LAWFUL RESERVES

-HEAD-

Sec. 142. Banks in reserve cities; reserves

-STATUTE-

National banking associations located in reserve cities or

central reserve cities shall maintain reserves provided for in

section 462 of this title for banks so located.

-SOURCE-

(R.S. Sec. 5191; Dec. 23, 1913, ch. 6, Sec. 19, 27, 38 Stat. 270,

274; Aug. 4, 1914, ch. 225, 38 Stat. 682; Aug. 15, 1914, ch. 252,

38 Stat. 691; June 21, 1917, ch. 32, Sec. 10, 40 Stat. 239.)

-REFTEXT-

REFERENCES IN TEXT

Section 462 of this title, referred to in text, was omitted from

the Code. See section 461 of this title.

-COD-

CODIFICATION

R.S. Sec. 5191 derived from act June 3, 1864, ch. 106, Sec. 31,

13 Stat. 108, which was the National Bank Act, and act Mar. 1,

1872, ch. 22, 17 Stat. 32. See section 38 of this title.

-MISC3-

TERMINATION OF CENTRAL RESERVE CITIES

Central reserve cities terminated, see section 3(b) of Pub. L.

86-114, July 28, 1959, 73 Stat. 263 set out as a note under section

141 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 248, 1424, 1828 of this

title.

-CITE-

12 USC Sec. 143 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER VIII - RESERVE CITIES; LAWFUL RESERVES

-HEAD-

Sec. 143. Banks in Alaska and insular possessions; lawful money

reserves

-STATUTE-

Every national banking association located in Alaska or in a

dependency or insular possession or any part of the United States

outside of the continental United States, and not a member of the

Federal reserve system, shall at all times have on hand in lawful

money of the United States an amount equal to at least 15 percent

of the aggregate amount of its deposits in all respects. Whenever

the lawful money of any such association shall fall below 15

percent of its deposits such association shall not increase its

liabilities by making any new loans or discounts other than by

discounting or purchasing bills of exchange payable at sight nor

make any dividends of its profits until the required proportion

between the aggregate amount of its deposits and its lawful money

of the United States has been restored. And the Comptroller of the

Currency shall notify any such association whose lawful money

reserve shall be below the amount required to be kept on hand to

make good such reserve, and if such association shall fail for

thirty days thereafter so to make good its lawful money the

Comptroller may, with the concurrence of the Secretary of the

Treasury, appoint a receiver to wind up the business of the

association as provided in section 192 of this title.

-SOURCE-

(R.S. Sec. 5191.)

-COD-

CODIFICATION

R.S. Sec. 5191 derived from act June 3, 1864, ch. 106, Sec. 31,

13 Stat. 108, which was the National Bank Act, and act Mar. 1,

1872, ch. 22, 17 Stat. 32. See section 38 of this title.

-TRANS-

EXCEPTION AS TO TRANSFER OF FUNCTIONS

Functions vested by any provision of law in Comptroller of the

Currency, referred to in this section, not included in transfer of

functions to Secretary of the Treasury, see note set out under

section 1 of this title.

-CITE-

12 USC Sec. 144 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER VIII - RESERVE CITIES; LAWFUL RESERVES

-HEAD-

Sec. 144. Certain balances counted toward reserves in dependencies

and insular possessions

-STATUTE-

Four-fifths of the reserve of 15 per centum which a national bank

located in a dependency or insular possession or any part of the

United States outside of the continental United States, and not a

member of the Federal Reserve System, is required to keep, may

consist of balances due such bank from associations approved by the

Comptroller of the Currency and located in any one of the reserve

cities as now or hereafter defined by law or designated by the

Board of Governors of the Federal Reserve System.

-SOURCE-

(R.S. Sec. 5192; July 1, 1952, ch. 536, 66 Stat. 314; Pub. L.

86-70, Sec. 7, June 25, 1959, 73 Stat. 142; Pub. L. 86-114, Sec.

3(b)(3), July 28, 1959, 73 Stat. 263.)

-COD-

CODIFICATION

R.S. Sec. 5192 derived from act June 3, 1864, ch. 106, Sec. 31,

13 Stat. 108, which was the National Bank Act. See section 38 of

this title.

-MISC3-

AMENDMENTS

1959 - Pub. L. 86-114 struck out ''central reserve or'' before

''reserve cities''.

Pub. L. 86-70 struck out ''in Alaska or'' before ''in a

dependency''.

1952 - Act July 1, 1952, reduced the required amount of cash on

hand from two-fifths to one-fifth of the required reserve of 15 per

centum.

EFFECTIVE DATE OF 1959 AMENDMENT

Amendment by Pub. L. 86-114 effective three years after July 28,

1959, see section 3(b) of Pub. L. 86-114, set out as a Central

Reserve and Reserve Cities note under section 141 of this title.

-TRANS-

EXCEPTION AS TO TRANSFER OF FUNCTIONS

Functions vested by any provision of law in Comptroller of the

Currency, referred to in this section, not included in transfer of

functions to Secretary of the Treasury, see note set out under

section 1 of this title.

-CITE-

12 USC Sec. 145, 146 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER VIII - RESERVE CITIES; LAWFUL RESERVES

-HEAD-

Sec. 145, 146. Repealed. Pub. L. 97-258, Sec. 5(b), Sept. 13, 1982,

96 Stat. 1068

-MISC1-

Section 145, act July 14, 1890, ch. 708, Sec. 2, 26 Stat. 289,

authorized counting of treasury notes held by national banking

associations as part of their lawful reserve.

Section 146, act July 12, 1882, ch. 290, Sec. 12, 22 Stat. 165,

related to holding of gold and silver certificates by national

banking associations.

-CITE-

12 USC SUBCHAPTER IX - FORMATION OF ASSOCIATIONS TO ISSUE

GOLD NOTES 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER IX - FORMATION OF ASSOCIATIONS TO ISSUE GOLD NOTES

.

-HEAD-

SUBCHAPTER IX - FORMATION OF ASSOCIATIONS TO ISSUE GOLD NOTES

-CITE-

12 USC Sec. 151 to 153 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER IX - FORMATION OF ASSOCIATIONS TO ISSUE GOLD NOTES

-HEAD-

Sec. 151 to 153. Repealed. Pub. L. 103-325, title VI, Sec.

602(e)(22), (23), (f)(7), Sept. 23, 1994, 108 Stat. 2292, 2293

-MISC1-

Section 151, R.S. Sec. 5185; Jan. 19, 1875, ch. 19, 18 Stat. 302,

related to organization of associations to issue gold notes.

Section 152, R.S. Sec. 5186, related to mandatory establishment

of lawful money reserves by associations issuing gold notes and

reception by such associations of gold notes of other associations

in payment of debts.

Section 153, act Feb. 14, 1880, ch. 25, 21 Stat. 66, related to

conversion of gold banks into currency banks.

-CITE-

12 USC SUBCHAPTER X - BANK EXAMINATIONS; REPORTS 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER X - BANK EXAMINATIONS; REPORTS

.

-HEAD-

SUBCHAPTER X - BANK EXAMINATIONS; REPORTS

-CITE-

12 USC Sec. 161 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER X - BANK EXAMINATIONS; REPORTS

-HEAD-

Sec. 161. Reports to Comptroller of the Currency

-STATUTE-

(a) Reports of condition; form; contents; date of making;

publication

Every association shall make reports of condition to the

Comptroller of the Currency in accordance with the Federal Deposit

Insurance Act (12 U.S.C. 1811 et seq.). The Comptroller of the

Currency may call for additional reports of condition, in such form

and containing such information as he may prescribe, on dates to be

fixed by him, and may call for special reports from any particular

association whenever in his judgment the same are necessary for his

use in the performance of his supervisory duties. Each report of

condition shall contain a declaration by the president, a vice

president, the cashier, or by any other officer designated by the

board of directors of the bank to make such declaration, that the

report is true and correct to the best of his knowledge and

belief. The correctness of the report of condition shall be

attested by the signatures of at least three of the directors of

the bank other than the officer making such declaration, with the

declaration that the report has been examined by them and to the

best of their knowledge and belief is true and correct. Each

report shall exhibit in detail and under appropriate heads the

resources and liabilities of the association at the close of

business on any past day specified by the Comptroller, and shall be

transmitted to the Comptroller within the period of time specified

by the Comptroller. Special reports called for by the Comptroller

need contain only such information as is specified by the

Comptroller in his request therefor, and publication of such

reports need be made only if directed by the Comptroller.

(b) Payment of dividends

Every association shall make to the Comptroller reports of the

payment of dividends, including advance reports of dividends

proposed to be declared or paid in such cases and under such

conditions as the Comptroller deems necessary to carry out the

purposes of the laws relating to national banking associations in

such form and at such times as he may require.

(c) Reports of affiliates; form; contents; date of making;

publication; penalties

Each national banking association shall obtain from each of its

affiliates other than member banks and furnish to the Comptroller

of the Currency not less than four reports during each year, in

such form as the Comptroller may prescribe, verified by the oath or

affirmation of the president or such other officer as may be

designated by the board of directors of such affiliate to verify

such reports, disclosing the information hereinafter provided for

as of dates identical with those for which the Comptroller shall

during such year require the reports of the condition of the

association. Each such report of an affiliate shall be transmitted

to the Comptroller at the same time as the corresponding report of

the association, except that the Comptroller may, in his

discretion, extend such time for good cause shown. Each such

report shall contain such information as in the judgment of the

Comptroller of the Currency shall be necessary to disclose fully

the relations between such affiliate and such bank and to enable

the Comptroller to inform himself as to the effect of such

relations upon the affairs of such bank. The Comptroller shall

also have power to call for additional reports with respect to any

such affiliate whenever in his judgment the same are necessary in

order to obtain a full and complete knowledge of the conditions of

the association with which it is affiliated. Such additional

reports shall be transmitted to the Comptroller of the Currency in

such form as he may prescribe.

-SOURCE-

(R.S. Sec. 5211; Feb. 27, 1877, ch. 69, Sec. 1, 19 Stat. 252; Dec.

28, 1922, ch. 18, 42 Stat. 1067; Feb. 25, 1927, ch. 191, Sec. 13,

44 Stat. 1232; June 16, 1933, ch. 89, Sec. 27, 48 Stat. 191; Pub.

L. 86-230, Sec. 11, 22(b), Sept. 8, 1959, 73 Stat. 458, 466; Pub.

L. 86-671, Sec. 5, July 14, 1960, 74 Stat. 551; Pub. L. 89-485,

Sec. 13(d), July 1, 1966, 80 Stat. 243; Pub. L. 101-73, title IX,

Sec. 911(b)(1), Aug. 9, 1989, 103 Stat. 478; Pub. L. 103-325, title

III, Sec. 308(a), Sept. 23, 1994, 108 Stat. 2218.)

-REFTEXT-

REFERENCES IN TEXT

The Federal Deposit Insurance Act, referred to in subsec. (a), is

act Sept. 21, 1950, ch. 967, Sec. 2, 64 Stat. 873, as amended,

which is classified generally to chapter 16 (Sec. 1811 et seq.) of

this title. For complete classification of this Act to the Code,

see Short Title note set out under section 1811 of this title and

Tables.

-COD-

CODIFICATION

R.S. Sec. 5211 derived from act June 3, 1864, ch. 106, Sec. 34,

13 Stat. 109, which was the National Bank Act, and act Mar. 3,

1869, ch. 130, Sec. 1, 15 Stat. 326. See section 38 of this title.

-MISC3-

AMENDMENTS

1994 - Subsec. (a). Pub. L. 103-325, Sec. 308(a)(1), struck out

before period at end of fifth sentence ''; and the statement of

resources and liabilities in the same form in which it is made to

the Comptroller shall be published in a newspaper published in the

place where such association is established, or if there is no

newspaper in the place, then in the one published nearest thereto

in the same county, at the expense of the association, and such

proof of publication shall be furnished as may be required by the

Comptroller''.

Subsec. (c). Pub. L. 103-325, Sec. 308(a)(2), struck out after

third sentence ''The reports of such affiliates shall be published

by the association under the same conditions as govern its own

condition reports.''

1989 - Subsec. (a). Pub. L. 101-73, Sec. 911(b)(1)(A), in fifth

sentence substituted ''within the period of time specified by the

Comptroller'' for ''within ten days after the receipt of a request

therefor from him''.

Subsec. (c). Pub. L. 101-73, Sec. 911(b)(1)(B), struck out at end

''Any such affiliated bank which fails to obtain and furnish any

report required under this section shall be subject to a penalty of

$100 for each day during which such failure continues.''

1966 - Subsec. (c). Pub. L. 89-485 struck out second sentence

stating that the term ''affiliate'' shall include holding company

affiliates as well as other affiliates.

1960 - Subsec. (a). Pub. L. 86-671, Sec. 5(a), designated

existing provisions of former first par. as subsec. (a),

substituted provisions relating to the making of reports of

condition in accordance with the Federal Deposit Insurance Act and

additional reports of condition containing declaration of officer

for former provisions requiring minimum of three reports annually

verified by an officer, inserted provisions respecting contents and

publication of special reports and deleted requirement for making

reports of payment of dividends, which is incorporated in subsec.

(b) of this section.

Subsec. (b). Pub. L. 86-671, Sec. 5(a), designated existing

provisions of former first par. as subsec. (b).

Subsec. (c). Pub. L. 86-671, Sec. 5(b), designated existing

provisions of former second par. as subsec. (c) and substituted

''four'' for ''three'' in first sentence.

1959 - Pub. L. 86-230 required transmission of reports to the

Comptroller within ten instead of five days and the making of

reports of the payment of dividends including advance reports of

dividends proposed to be declared or paid, respectively.

1933 - Act June 16, 1933, added second par.

1927 - Act Feb. 25, 1927, inserted ''or of a vice-president, or

of an assistant cashier of the association designated by its board

of directors to verify such reports in the absence of the president

and cashier, taken before a notary public properly authorized and

commissioned by the State in which such notary resides and the

association is located, or any other officer having an official

seal, authorized in such State to administer oaths'' in first

sentence, and ''and the statement of resources and liabilities

together with acknowledgment and attestation'', in second sentence.

EFFECTIVE DATE OF 1989 AMENDMENT

Section 911(i)((g)) of Pub. L. 101-73 provided that: ''The

amendments made by this section (amending this section and sections

164, 324, 1782, 1817, 1847, and 1882 of this title) shall apply

with respect to reports filed or required to be filed after the

date of the enactment of this Act (Aug. 9, 1989).''

EFFECTIVE DATE OF 1960 AMENDMENT

Amendment by Pub. L. 86-671 effective Jan. 1, 1961, see section 7

of Pub. L. 86-671, set out as a note under section 1817 of this

title.

-TRANS-

EXCEPTION AS TO TRANSFER OF FUNCTIONS

Functions vested by any provision of law in Comptroller of the

Currency, referred to in this section, not included in transfer of

functions to Secretary of the Treasury, see note set out under

section 1 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 164 of this title; title 7

section 6f; title 15 sections 78o-5, 78q.

-CITE-

12 USC Sec. 162 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER X - BANK EXAMINATIONS; REPORTS

-HEAD-

Sec. 162. Repealed. Pub. L. 86-671, Sec. 6, July 14, 1960, 74 Stat.

552.

-MISC1-

Section, act Feb. 26, 1881, ch. 82, 21 Stat. 352, prescribed the

manner of verification of reports of condition of national banks.

See section 1817 of this title.

EFFECTIVE DATE OF REPEAL

Repeal effective Jan. 1, 1961, see section 7 of Pub. L. 86-671,

set out as an Effective Date of 1960 Amendment note under section

1817 of this title.

-CITE-

12 USC Sec. 163 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER X - BANK EXAMINATIONS; REPORTS

-HEAD-

Sec. 163. Repealed. Pub. L. 86-230, Sec. 22(a), Sept. 8, 1959, 73

Stat. 466

-MISC1-

Section, R.S. Sec. 5212, related to report of dividends and net

earnings. See section 161 of this title.

-CITE-

12 USC Sec. 164 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER X - BANK EXAMINATIONS; REPORTS

-HEAD-

Sec. 164. Penalty for failure to make reports

-STATUTE-

(a) First tier

Any association which -

(1) maintains procedures reasonably adapted to avoid any

inadvertent error and, unintentionally and as a result of such an

error -

(A) fails to make, obtain, transmit, or publish any report or

information required by the Comptroller of the Currency under

section 161 of this title, within the period of time specified

by the Comptroller; or

(B) submits or publishes any false or misleading report or

information; or

(2) inadvertently transmits or publishes any report which is

minimally late,

shall be subject to a penalty of not more than $2,000 for each day

during which such failure continues or such false or misleading

information is not corrected. The association shall have the

burden of proving that an error was inadvertent and that a report

was inadvertently transmitted or published late.

(b) Second tier

Any association which -

(1) fails to make, obtain, transmit, or publish any report or

information required by the Comptroller of the Currency under

section 161 of this title, within the period of time specified by

the Comptroller; or

(2) submits or publishes any false or misleading report or

information,

in a manner not described in subsection (a) of this section shall

be subject to a penalty of not more than $20,000 for each day

during which such failure continues or such false or misleading

information is not corrected.

(c) Third tier

Notwithstanding subsections (a) and (b) of this section, if any

association knowingly or with reckless disregard for the accuracy

of any information or report described in subsection (b) of this

section submits or publishes any false or misleading report or

information, the Comptroller may assess a penalty of not more than

$1,000,000 or 1 percent of total assets of the association,

whichever is less, per day for each day during which such failure

continues or such false or misleading information is not corrected.

(d) Assessment; etc.

Any penalty imposed under subsection (a), (b), or (c) of this

section shall be assessed and collected by the Comptroller of the

Currency in the manner provided in subparagraphs (E), (F), (G), and

(I) of section 1818(i)(2) of this title (for penalties imposed

under such section) and any such assessment (including the

determination of the amount of the penalty) shall be subject to the

provisions of such section.

(e) Hearing

Any association against which any penalty is assessed under this

subsection (FOOTNOTE 1) shall be afforded an agency hearing if such

association submits a request for such hearing within 20 days after

the issuance of the notice of assessment. Section 1818(h) of this

title shall apply to any proceeding under this section.

(FOOTNOTE 1) So in original. Probably should be ''section''.

-SOURCE-

(R.S. Sec. 5213; Pub. L. 86-230, Sec. 12, Sept. 8, 1959, 73 Stat.

458; Pub. L. 101-73, title IX, Sec. 911(b)(2), Aug. 9, 1989, 103

Stat. 478.)

-COD-

CODIFICATION

R.S. Sec. 5213 derived from act Mar. 3, 1869, ch. 130, Sec. 1, 2,

15 Stat. 326, 327.

-MISC3-

AMENDMENTS

1989 - Pub. L. 101-73 amended section generally. Prior to

amendment, section read as follows: ''Every association which fails

to make and transmit any report required under section 161 of this

title shall be subject to a penalty of $100 for each day after the

periods, respectively, therein mentioned, that it delays to make

and transmit its report. Whenever any association delays or

refuses to pay the penalty herein imposed, after it has been

assessed by the Comptroller of the Currency, the amount thereof may

be retained by the Treasurer of the United States, upon the order

of the Comptroller of the Currency, out of the interest, as it may

become due to the association, on the bonds deposited with him to

secure circulation. All sums of money collected for penalties

under this section shall be paid into the Treasury of the United

States.''

1959 - Pub. L. 86-230 substituted ''section 161 of this title''

for ''either section 161 or 163 of this title''.

EFFECTIVE DATE OF 1989 AMENDMENT

Amendment by Pub. L. 101-73 applicable with respect to reports

filed or required to be filed after Aug. 9, 1989, see section

911(i) of Pub. L. 101-73, set out as a note under section 161 of

this title.

-TRANS-

EXCEPTION AS TO TRANSFER OF FUNCTIONS

Functions vested by any provision of law in Comptroller of the

Currency, referred to in this section, not included in transfer of

functions to Secretary of the Treasury, see note set out under

section 1 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1831k of this title.

-CITE-

12 USC Sec. 165 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER X - BANK EXAMINATIONS; REPORTS

-HEAD-

Sec. 165. Omitted

-COD-

CODIFICATION

Section, R.S. Sec. 5241, related to limitation of visitorial

powers. See section 484 of this title.

-CITE-

12 USC SUBCHAPTER XI - MISCELLANEOUS PROVISIONS REGARDING

UNITED STATES BONDS IN RELATION TO NATIONAL

BANKS 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER XI - MISCELLANEOUS PROVISIONS REGARDING UNITED STATES

BONDS IN RELATION TO NATIONAL BANKS

.

-HEAD-

SUBCHAPTER XI - MISCELLANEOUS PROVISIONS REGARDING UNITED STATES

BONDS IN RELATION TO NATIONAL BANKS

-CITE-

12 USC Sec. 168 to 177 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER XI - MISCELLANEOUS PROVISIONS REGARDING UNITED STATES

BONDS IN RELATION TO NATIONAL BANKS

-HEAD-

Sec. 168 to 177. Repealed. Pub. L. 103-325, title VI, Sec.

602(e)(24)-(31), (f)(4)(D), (5)(A), Sept. 23, 1994, 108 Stat.

2292, 2293

-MISC1-

Section 168, R.S. Sec. 5160, authorized associations to take up

bonds upon returning circulating notes to Comptroller of the

Currency.

Section 169, R.S. Sec. 5161, related to exchange of United States

coupon bonds for registered bonds.

Section 170, R.S. Sec. 5162; Aug. 23, 1935, ch. 614, Sec. 313, 49

Stat. 711, related to manner of making transfers of bonds.

Section 171, R.S. Sec. 5163, related to establishment of registry

of transferred bonds by Comptroller of the Currency.

Section 172, R.S. Sec. 5164, required Comptroller of the Currency

to notify national banking associations of transfers from its

accounts.

Section 173, R.S. Sec. 5165, related to examination of registry

and bonds by Comptroller of the Currency and Treasurer of United

States.

Section 174, R.S. Sec. 5166, related to annual examination of

bonds by national banking associations.

Section 175, R.S. Sec. 5167, related to custody of bonds and

collection of interest.

Section 176, acts June 20, 1874, ch. 343, Sec. 4, 18 Stat. 124;

June 21, 1917, ch. 32, Sec. 9, 40 Stat. 239, provided that

associations desiring to withdraw circulating notes could, upon

deposit of money with Treasurer of United States, withdraw bonds on

deposit with Treasurer for security of such notes.

Section 177, acts July 12, 1882, ch. 290, Sec. 8, 22 Stat. 164;

Mar. 14, 1900, ch. 41, Sec. 12, 31 Stat. 49; June 21, 1917, ch. 32,

Sec. 9, 40 Stat. 239, related to amount of bonds banks were

required to keep on deposit with Treasurer of United States, as

security for circulating notes, and authorized banks having

deposits in excess of such amount to reduce, or retire in full,

their circulation by depositing lawful money.

-CITE-

12 USC Sec. 177a 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER XI - MISCELLANEOUS PROVISIONS REGARDING UNITED STATES

BONDS IN RELATION TO NATIONAL BANKS

-HEAD-

Sec. 177a. Funds available for cost of transporting and redeeming

national and Federal Reserve bank notes

-STATUTE-

The cost of transporting and redeeming outstanding national bank

notes and Federal Reserve bank notes as may be presented to the

Treasurer of the United States for redemption shall be paid from

the regular annual appropriation for the Department of the

Treasury.

-SOURCE-

(Oct. 10, 1940, ch. 841, 54 Stat. 1093; Pub. L. 103-325, title VI,

Sec. 602(g)(10), Sept. 23, 1994, 108 Stat. 2294.)

-MISC1-

AMENDMENTS

1994 - Pub. L. 103-325 amended section generally. Prior to

amendment, section read as follows: ''After the reimbursement to

the Treasury from funds derived from assessments made pursuant to

section 177 of this title, of all costs lawfully charged thereto

for the fiscal year ending June 30, 1941, the balance of such funds

shall be covered into the Treasury as miscellaneous receipts; and

thereafter the cost of transporting and redeeming such outstanding

national bank notes and Federal Reserve bank notes as may be

presented to the Treasurer of the United States for redemption

shall be paid from the regular annual appropriations for the

Treasury Department.''

-CITE-

12 USC Sec. 178 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER XI - MISCELLANEOUS PROVISIONS REGARDING UNITED STATES

BONDS IN RELATION TO NATIONAL BANKS

-HEAD-

Sec. 178. Repealed. Pub. L. 103-325, title VI, Sec. 602(f)(5)(B),

Sept. 23, 1994, 108 Stat. 2293

-MISC1-

Section, acts July 12, 1882, ch. 290, Sec. 9, 22 Stat. 164; Mar.

14, 1900, ch. 41, Sec. 12, 31 Stat. 49; Mar. 4, 1907, ch. 2913,

Sec. 4, 34 Stat. 1290, authorized national banking associations

desiring to withdraw circulating notes to deposit money with

Treasurer of United States and withdraw bonds or other securities

securing such notes.

-CITE-

12 USC SUBCHAPTER XII - VOLUNTARY DISSOLUTION 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER XII - VOLUNTARY DISSOLUTION

.

-HEAD-

SUBCHAPTER XII - VOLUNTARY DISSOLUTION

-CITE-

12 USC Sec. 181 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER XII - VOLUNTARY DISSOLUTION

-HEAD-

Sec. 181. Voluntary dissolution; appointment and removal of

liquidating agent or committee; examination

-STATUTE-

Any association may go into liquidation and be closed by the vote

of its shareholders owning two-thirds of its stock. If the

liquidation is to be effected in whole or in part through the sale

of any of its assets to and the assumption of its deposit

liabilities by another bank, the purchase and sale agreement must

also be approved by its shareholders owning two-thirds of its stock

unless an emergency exists and the Comptroller of the Currency

specifically waives such requirement for shareholder approval.

The shareholders shall designate one or more persons to act as

liquidating agent or committee, who shall conduct the liquidation

in accordance with law and under the supervision of the board of

directors, who shall require a suitable bond to be given by said

agent or committee. The liquidating agent or committee shall

render annual reports to the Comptroller of the Currency on the

31st day of December of each year showing the progress of said

liquidation until the same is completed. The liquidating agent or

committee shall also make an annual report to a meeting of the

shareholders to be held on the date fixed in the articles of

association for the annual meeting, at which meeting the

shareholders may, if they see fit, by a vote representing a

majority of the entire stock of the bank, remove the liquidating

agent or committee and appoint one or more others in place

thereof. A special meeting of the shareholders may be called at

any time in the same manner as if the bank continued an active bank

and at said meeting the shareholders may, by vote of the majority

of the stock, remove the liquidating agent or committee. The

Comptroller of the Currency is authorized to have an examination

made at any time into the affairs of the liquidating bank until the

claims of all creditors have been satisfied, and the expense of

making such examinations shall be assessed against such bank in the

same manner as in the case of examinations made pursuant to

subchapter XV of chapter 3 of this title.

-SOURCE-

(R.S. Sec. 5220; Aug. 23, 1935, ch. 614, title III, Sec. 317, 49

Stat. 712; Pub. L. 86-230, Sec. 15, Sept. 8, 1959, 73 Stat. 458.)

-REFTEXT-

REFERENCES IN TEXT

Subchapter XV (Sec. 481 et seq.) of chapter 3 of this title,

referred to in second par., was in the original a reference to

section 5240 of the Revised Statutes.

-COD-

CODIFICATION

R.S. Sec. 5220 derived from act June 3, 1864, ch. 106, Sec. 42,

13 Stat. 112, which was the National Bank Act. See section 38 of

this title.

-MISC3-

AMENDMENTS

1959 - Pub. L. 86-230 required shareholder approval of purchase

and sale agreement where there is liquidation of a bank effected

through sale of its assets and assumption of deposit liabilities

and authorized waiver of such requirement in an emergency.

1935 - Act Aug. 23, 1935, added second par.

-TRANS-

EXCEPTION AS TO TRANSFER OF FUNCTIONS

Functions vested by any provision of law in Comptroller of the

Currency, referred to in this section, not included in transfer of

functions to Secretary of the Treasury, see note set out under

section 1 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 186, 202, 288, 1821 of

this title.

-CITE-

12 USC Sec. 182 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER XII - VOLUNTARY DISSOLUTION

-HEAD-

Sec. 182. Notice of intent to dissolve

-STATUTE-

Whenever a vote is taken to go into liquidation it shall be the

duty of the board of directors to cause notice of this fact to be

certified, under the seal of the association, by its president or

cashier, to the Comptroller of the Currency, and publication

thereof to be made for a period of two months in every issue of a

newspaper published in the city or town in which the association is

located, or if no newspaper is there published, then in the

newspaper published nearest thereto, that the association is

closing up its affairs, and notifying its creditors to present

their claims against the association for payment.

-SOURCE-

(R.S. Sec. 5221; Aug. 9, 1955, ch. 626, 69 Stat. 546.)

-COD-

CODIFICATION

R.S. Sec. 5221 derived from act June 3, 1864, ch. 106, Sec. 42,

13 Stat. 112, which was the National Bank Act. See section 38 of

this title.

-MISC3-

AMENDMENTS

1955 - Act Aug. 9, 1955, struck out provisions relating to

publication in a newspaper published in the City of New York, and

notification to holders of national bank notes to present them for

payment.

-TRANS-

EXCEPTION AS TO TRANSFER OF FUNCTIONS

Functions vested by any provision of law in Comptroller of the

Currency, referred to in this section, not included in transfer of

functions to Secretary of the Treasury, see note set out under

section 1 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 186, 1821 of this title.

-CITE-

12 USC Sec. 183 to 186 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER XII - VOLUNTARY DISSOLUTION

-HEAD-

Sec. 183 to 186. Repealed. Pub. L. 103-325, title VI, Sec.

602(e)(32)-(35), Sept. 23, 1994, 108 Stat. 2292

-MISC1-

Section 183, R.S. Sec. 5222, provided that, within six months of

voting to liquidate, an association was to deposit with Treasurer

of United States money sufficient to redeem all outstanding

circulation.

Section 184, R.S. Sec. 5223, exempted associations which wound up

business for purpose of consolidating with another association from

requirement to deposit money to redeem all outstanding circulation.

Section 185, R.S. Sec. 5224; Feb. 18, 1875, ch. 80, Sec. 1, 18

Stat. 320, related to reassignment of bonds to association and

redemption of notes.

Section 186, R.S. Sec. 5225; Feb. 27, 1877, ch. 69, Sec. 1, 19

Stat. 252, related to destruction of redeemed notes by Treasurer.

-CITE-

12 USC SUBCHAPTER XIII - RECEIVERSHIP 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER XIII - RECEIVERSHIP

.

-HEAD-

SUBCHAPTER XIII - RECEIVERSHIP

-CITE-

12 USC Sec. 191 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER XIII - RECEIVERSHIP

-HEAD-

Sec. 191. Appointment of Federal Deposit Insurance Corporation as

receiver

-STATUTE-

The Comptroller of the Currency may, without prior notice or

hearings, appoint a receiver for any national bank (and such

receiver shall be the Federal Deposit Insurance Corporation if the

national bank is an insured bank (as defined in section 1813(h) of

this title)) if the Comptroller determines, in the Comptroller's

discretion, that -

(1) 1 or more of the grounds specified in section 1821(c)(5) of

this title exist; or

(2) the association's board of directors consists of fewer than

5 members.

-SOURCE-

(June 30, 1876, ch. 156, Sec. 2, formerly Sec. 1, 19 Stat. 63; Pub.

L. 86-230, Sec. 16, Sept. 8, 1959, 73 Stat. 458; Pub. L. 102-242,

title I, Sec. 133(b), Dec. 19, 1991, 105 Stat. 2271; renumbered

Sec. 2 and amended Pub. L. 102-550, title XVI, Sec. 1603(d)(6),

(7), Oct. 28, 1992, 106 Stat. 4080.)

-MISC1-

PRIOR PROVISIONS

A prior section 2 of act June 30, 1876, was classified to section

65 of this title, prior to repeal by Pub. L. 86-230, Sec. 8, Sept.

8, 1959, 73 Stat. 457.

AMENDMENTS

1992 - Pub. L. 102-550, Sec. 1603(d)(7)(B), substituted ''appoint

a receiver for any national bank (and such receiver shall be the

Federal Deposit Insurance Corporation if the national bank is an

insured bank (as defined in section 1813(h) of this title))'' for

''appoint the Federal Deposit Insurance Corporation as receiver for

any national banking association'' in introductory provisions.

Pub. L. 102-550, Sec. 1603(d)(6), amended directory language of

Pub. L. 102-242, Sec. 133(b). See 1991 Amendment note below.

1991 - Pub. L. 102-242, Sec. 133(b), as amended by Pub. L.

102-550, Sec. 1603(d)(6), amended section generally. Prior to

amendment, section read as follows: ''Whenever any national banking

association shall be dissolved, and its rights, privileges, and

franchises declared forfeited, as prescribed in section 93 of this

title, or whenever any creditor of any national banking association

shall have obtained a judgment against it in any court of record,

and made application, accompanied by a certificate from the clerk

of the court stating that such judgment has been rendered and has

remained unpaid for the space of thirty days, or whenever the

comptroller shall become satisfied of the insolvency of a national

banking association, he may, after due examination of its affairs,

in either case, appoint a receiver, who shall proceed to close up

such association.''

1959 - Pub. L. 86-230 struck out provisions which required

receiver to enforce the personal liability of shareholders.

EFFECTIVE DATE OF 1992 AMENDMENT

Section 1609 of Pub. L. 102-550 provided that:

''(a) In General. - Except as provided in subsection (b) or any

other provision of this subtitle (subtitle A (Sec. 1601-1609) of

title XVI of Pub. L. 102-550, see Tables for classification), the

amendments made by this subtitle to the Federal Deposit Insurance

Corporation Improvement Act of 1991, the Federal Deposit Insurance

Act, and any other law shall take effect as if such amendments had

been included in the Federal Deposit Insurance Corporation

Improvement Act of 1991 (Pub. L. 102-242) as of the date of the

enactment of such Act (Dec. 19, 1991).

''(b) Effective Date of Certain Amendments. - In the case of any

amendment made by this subtitle to any provision of law added or

amended by the Federal Deposit Insurance Corporation Improvement

Act of 1991 (see Tables for classification) effective after

December 19, 1992, the amendment made by this subtitle shall take

effect on the effective date of the amendment made by the Federal

Deposit Insurance Corporation Improvement Act of 1991.''

EFFECTIVE DATE OF 1991 AMENDMENT

Section 133(g) of Pub. L. 102-242 provided that: ''The amendments

made by this section (amending this section and sections 203, 248,

1464, and 1821 of this title) shall become effective 1 year after

the date of enactment of this Act (Dec. 19, 1991).''

SHORT TITLE

Section 1 of act June 30, 1876, as added by act Oct. 28, 1992,

Pub. L. 102-550, title XVI, Sec. 1603(d)(7)(A), 106 Stat. 4080,

provided that: ''This Act (enacting this section, sections 65 and

197 of this title, and section 424 of former Title 31, Money and

Finance, and amending section 55 of this title) may be cited as the

'National Bank Receivership Act'.''

-TRANS-

EXCEPTION AS TO TRANSFER OF FUNCTIONS

Functions vested by any provision of law in Comptroller of the

Currency, referred to in this section, not included in transfer of

functions to Secretary of the Treasury, see note set out under

section 1 of this title.

-MISC5-

APPLICATION TO DISTRICT OF COLUMBIA

Provisions of this section were made applicable to banks, etc.,

in the District of Columbia by act Mar. 4, 1933, ch. 274, Sec. 4,

47 Stat. 1567.

TERMINATION OF NATIONAL BANK CLOSED RECEIVERSHIP FUND

Pub. L. 96-221, title VII, Sec. 721-723, Mar. 31, 1980, 94 Stat.

190, 191, as amended Pub. L. 97-320, title IV, Sec. 409, Oct. 15,

1982, 96 Stat. 1515, provided that:

''Sec. 721. The purpose of this part (enacting this provision) is

to terminate the closed receivership fund by -

''(1) providing final notice of availability of liquidating

dividends to creditors of national banks which have been closed

and for which the Comptroller has appointed a receiver other than

the Federal Deposit Insurance Corporation;

''(2) barring rights of creditors to collect liquidating

dividends from the Comptroller of the Currency after a reasonable

period of time following such final notice; and

''(3) refunding to the Comptroller the principal amount of such

fund and any income earned thereon.

''Sec. 722. For purposes of this part -

''(1) the term 'closed receivership fund' means the aggregation

of undisbursed liquidating dividends from national banks which

have been closed and for which the Comptroller has appointed a

receiver other than the Federal Deposit Insurance Corporation,

held by the Comptroller in his capacity as successor to receivers

of those banks;

''(2) the term 'Comptroller' means the Comptroller of the

Currency;

''(3) the term 'claimant' means a depositor or other creditor

who asserts a claim against a closed national bank for a

liquidating dividend; and

''(4) the term 'liquidating dividend' means an amount of money

in the closed receivership fund determined by a receiver of a

closed national bank or by the Comptroller to be owed by that

bank to a depositor or other creditor.

''Sec. 723. (a) The Comptroller shall publish notice once a week

for four weeks in the Federal Register that all rights of

depositors and other creditors of closed national banks to collect

liquidating dividends from the closed receivership fund shall be

barred after twelve months following the last date of publication

of such notice.

''(b) The Comptroller shall pay the principal amount of a

liquidating dividend, exclusive of any income earned thereon, to a

claimant presenting a valid claim, if the claimant applies to

collect within twelve months following the last date notice is

published.

''(c) If a creditor shall fail to apply to collect a liquidating

dividend within twelve months after the last date notice is

published, all rights of the claimant against the closed

receivership fund with respect to the liquidating dividend shall be

barred.

''(d) The principal amount of any liquidating dividends (1) for

which claims have not been asserted within twelve months following

the last date notice is published or (2) for which the Comptroller

has determined a valid claim has not been submitted shall, together

with any income earned on liquidating dividends and other moneys,

if any, remaining in the closed receivership fund, be covered into

the general funds of the Comptroller.''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 197, 205 of this title.

-CITE-

12 USC Sec. 192 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER XIII - RECEIVERSHIP

-HEAD-

Sec. 192. Default in payment of circulating notes

-STATUTE-

On becoming satisfied, as specified in sections 131 and 132

(FOOTNOTE 1) of this title, that any association is in default, the

Comptroller of the Currency may forthwith appoint a receiver, and

require of him such bond and security as he deems proper. Such

receiver, under the direction of the comptroller, shall take

possession of the books, records, and assets of every description

of such association, collect all debts, dues, and claims belonging

to it, and, upon the order of a court of record of competent

jurisdiction, may sell or compound all bad or doubtful debts, and,

on a like order, may sell all the real and personal property of

such association, on such terms as the court shall direct. Such

receiver shall pay over all money so made to the Treasurer of the

United States, subject to the order of the Comptroller, and also

make report to the Comptroller of all his acts and proceedings.

(FOOTNOTE 1) See References in Text note below.

Provided, That the Comptroller may, if he deems proper, deposit

any of the money so made in any regular Government depositary, or

in any State or national bank either of the city or town in which

the insolvent bank was located or of a city or town as adjacent

thereto as practicable; if such deposit is made he shall require

the depositary to deposit United States bonds or other satisfactory

securities with the Treasurer of the United States for the

safekeeping and prompt payment of the money so deposited: Provided,

That no security in the form of deposit of United States bonds, or

otherwise, shall be required in the case of such parts of the

deposits as are insured under section 12B of the Federal Reserve

Act, as amended. Such depositary shall pay upon such money

interest at such rate as the Comptroller may prescribe, not less,

however, than 2 per centum per annum upon the average monthly

amount of such deposits.

-SOURCE-

(R.S. Sec. 5234; May 15, 1916, ch. 121, 39 Stat. 121; Aug. 23,

1935, ch. 614, title III, Sec. 339, 49 Stat. 721; Pub. L. 86-230,

Sec. 17, Sept. 8, 1959, 73 Stat. 458; Pub. L. 103-325, title VI,

Sec. 602(g)(11), Sept. 23, 1994, 108 Stat. 2294.)

-REFTEXT-

REFERENCES IN TEXT

Sections 131 and 132 of this title, referred to in text, were

repealed by Pub. L. 103-325, title VI, Sec. 602(e)(14), (15), Sept.

23, 1994, 108 Stat. 2292.

Section 12B of the Federal Reserve Act, as amended, referred to

in text, formerly classified to section 264 of this title, has been

withdrawn from the Federal Reserve Act and incorporated in the

Federal Deposit Insurance Act which is classified generally to

chapter 16 (Sec. 1811 et seq.) of this title.

-COD-

CODIFICATION

R.S. Sec. 5234 derived from act June 3, 1864, ch. 106, Sec. 50,

13 Stat. 114, which was part of the National Bank Act. See section

38 of this title.

-MISC3-

AMENDMENTS

1994 - Pub. L. 103-325 struck out ''has refused to pay its

circulating notes as therein mentioned, and'' before ''is in

default''.

1959 - Pub. L. 86-230 struck out provisions which required

receiver to enforce the personal liability of shareholders.

1935 - Act Aug. 23, 1935, inserted second proviso in second par.

-TRANS-

TRANSFER OF FUNCTIONS

For transfer of functions to Secretary of the Treasury, see note

set out under section 121 of this title.

-MISC5-

APPLICATION TO DISTRICT OF COLUMBIA

Provisions of this section were made applicable to banks, etc.,

in the District of Columbia by act Mar. 4, 1933, ch. 274, Sec. 4,

47 Stat. 1567.

INTEREST ON DEPOSITS

So much of existing law requiring the payment of interest with

respect to any funds deposited by the United States or by any

public instrumentality, agency, or officer thereof, as is

inconsistent with sections 371a, 371b, 374, 374a, 461, former

sections 462 to 465, and section 466 of this title, repealed, see

section 371a of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 55, 143, 197, 481, 501,

1467 of this title.

-CITE-

12 USC Sec. 193 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER XIII - RECEIVERSHIP

-HEAD-

Sec. 193. Notice to present claims

-STATUTE-

The Comptroller shall, upon appointing a receiver, cause notice

to be given, by advertisement in such newspapers as he may direct,

for three consecutive months, calling on all persons who may have

claims against such association to present the same, and to make

legal proof thereof.

-SOURCE-

(R.S. Sec. 5235.)

-COD-

CODIFICATION

R.S. Sec. 5235 derived from act June 3, 1864, ch. 106, Sec. 50,

13 Stat. 114, which was part of the National Bank Act. See section

38 of this title.

-TRANS-

EXCEPTION AS TO TRANSFER OF FUNCTIONS

Functions vested by any provision of law in Comptroller of the

Currency, referred to in this section, not included in transfer of

functions to Secretary of the Treasury, see note set out under

section 1 of this title.

-MISC5-

APPLICATION TO DISTRICT OF COLUMBIA

Provisions of this section were made applicable to banks, etc.,

in the District of Columbia by act Mar. 4, 1933, ch. 274, Sec. 4,

47 Stat. 1567.

-CITE-

12 USC Sec. 194 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER XIII - RECEIVERSHIP

-HEAD-

Sec. 194. Dividends on adjusted claims; distribution of assets

-STATUTE-

From time to time, the comptroller shall make a ratable dividend

of the money so paid over to him by such receiver on all such

claims as may have been proved to his satisfaction or adjudicated

in a court of competent jurisdiction, and, as the proceeds of the

assets of such association are paid over to him, shall make further

dividends on all claims previously proved or adjudicated; and the

remainder of the proceeds, if any, shall be paid over to the

shareholders of such association, or their legal representatives,

in proportion to the stock by them respectively held.

-SOURCE-

(R.S. Sec. 5236; Pub. L. 103-325, title VI, Sec. 602(g)(12), Sept.

23, 1994, 108 Stat. 2294.)

-COD-

CODIFICATION

R.S. Sec. 5236 derived from act June 3, 1864, ch. 106, Sec. 50,

13 Stat. 114, which was the National Bank Act. See section 38 of

this title.

-MISC3-

AMENDMENTS

1994 - Pub. L. 103-325 struck out '', after full provision has

been first made for refunding to the United States any deficiency

in redeeming the notes of such association'' after ''From time to

time''.

-TRANS-

EXCEPTION AS TO TRANSFER OF FUNCTIONS

Functions vested by any provision of law in Comptroller of the

Currency, referred to in this section, not included in transfer of

functions to Secretary of the Treasury, see note set out under

section 1 of this title.

-MISC5-

APPLICATION TO DISTRICT OF COLUMBIA

Provisions of this section were made applicable to banks, etc. in

the District of Columbia by act Mar. 4, 1933, ch. 274, Sec. 4, 47

Stat. 1567.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 197 of this title.

-CITE-

12 USC Sec. 195 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER XIII - RECEIVERSHIP

-HEAD-

Sec. 195. Repealed. Pub. L. 103-325, title VI, Sec. 602(e)(36),

Sept. 23, 1994, 108 Stat. 2292

-MISC1-

Section, R.S. Sec. 5237; Mar. 3, 1911, ch. 231, Sec. 289, 36

Stat. 1167, related to injunction by bank denying failure to redeem

notes.

-CITE-

12 USC Sec. 196 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER XIII - RECEIVERSHIP

-HEAD-

Sec. 196. Expenses

-STATUTE-

All expenses of any preliminary or other examinations into the

condition of any association shall be paid by such association.

All expenses of any receivership shall be paid out of the assets of

such association before distribution of the proceeds thereof.

-SOURCE-

(R.S. Sec. 5238; Pub. L. 103-325, title VI, Sec. 602(g)(13), Sept.

23, 1994, 108 Stat. 2294.)

-COD-

CODIFICATION

R.S. Sec. 5238 derived from act June 3, 1864, ch. 106, Sec. 51,

13 Stat. 115, which was the National Bank Act. See section 38 of

this title.

-MISC3-

AMENDMENTS

1994 - Pub. L. 103-325 struck out at beginning ''All fees for

protesting the notes issued by any national banking association

shall be paid by the person procuring the protest to be made, and

such association shall be liable therefor; but no part of the bonds

deposited by such association shall be applied to the payment of

such fees.''

-CITE-

12 USC Sec. 197 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER XIII - RECEIVERSHIP

-HEAD-

Sec. 197. Shareholders' meeting; continuance of receivership;

appointment of agent; winding up business; distribution of

assets

-STATUTE-

(a) Whenever any national banking association shall have been or

shall be placed in the hands of a receiver, as provided in section

fifty-two hundred and thirty-four (12 U.S.C. 192) and other

sections of the Revised Statutes of the United States and section

1821(c) of this title, and when, as provided in section 194 of this

title, there has been paid to each and every creditor of such

association whose claim or claims as such creditor shall have been

proved or allowed as therein prescribed, the full amount of such

claims, and all expenses of the receivership, the Comptroller of

the Currency or the Federal Deposit Insurance Corporation, where

that Corporation has been appointed receiver of the bank, shall

call a meeting of the shareholders of the association by giving

notice thereof for thirty days in a newspaper published in the

town, city, or county where the business of the association was

carried on, or if no newspaper is there published, in the newspaper

published nearest thereto. At such meeting the shareholders shall

determine whether the receiver shall be continued and shall wind up

the affairs of the association, or whether an agent shall be

elected for that purpose, and in so determining the shareholders

shall vote by ballot, in person or by proxy, each share of stock

entitling the holder to one vote, and the majority of the stock in

number of shares shall be necessary to determine whether the

receiver shall be continued, or whether an agent shall be elected.

In case such majority shall determine that the receiver shall be

continued, the receiver shall thereupon proceed with the execution

of the trust, and shall sell, dispose of, or otherwise collect the

assets of the association, and shall possess all the powers and

authority, and be subject to all the duties and liabilities

originally conferred or imposed upon such receiver so far as they

remain applicable. In case such meeting shall, by the vote of a

majority of the stock in number of shares, determine that an agent

shall be elected, the meeting shall thereupon proceed to elect an

agent, voting by ballot, in person or by proxy, each share of stock

entitling the holder to one vote, and the person who shall receive

votes representing at least a majority of stock in number of shares

shall be declared the agent for the purposes hereinafter provided;

and when such agent shall have executed a bond to the shareholders

conditioned for the payment and discharge in full or, to the extent

possible from the remaining assets of the association, of each and

every claim that may thereafter be proved and allowed by and before

a competent court and for the faithful performance of his duties,

in the penalty fixed by the shareholders at such meeting, with a

surety or sureties to be approved by the district court of the

United States for the district where the business of the

association was carried on, and shall have filed such bond in the

office of the clerk of such court, the Comptroller and the

receiver, or the Federal Deposit Insurance Corporation, where that

Corporation has been appointed receiver of the bank, shall

thereupon transfer and deliver to such agent all the uncollected or

other assets of the association then remaining in the hands or

subject to the order and control of the Comptroller and such

receiver, or either of them, or the Federal Deposit Insurance

Corporation; and for this purpose the Comptroller and such

receiver, or the Federal Deposit Insurance Corporation, as the case

may be, are severally empowered and directed to execute any deed,

assignment, transfer, or other instrument in writing that may be

necessary and proper; and upon the execution and delivery of such

instrument to such agent the Comptroller and such receiver or the

Federal Deposit Insurance Corporation shall by virtue of this Act

be discharged from any and all liabilities to the association and

to each and all the creditors and shareholders thereof.

(b) Upon receiving such deed, assignment, transfer, or other

instrument the person elected such agent shall hold, control, and

dispose of the assets and property of the association which he may

receive under the terms hereof for the benefit of the shareholders

of the association, and he may in his own name, or in the name of

the association, sue and be sued and do all other lawful acts and

things necessary to finally settle and distribute the assets and

property in his hands, and may sell, compromise, or compound the

debts due to the association, with the consent and approval of the

district court of the United States for the district where the

business of the association was carried on, and shall at the

conclusion of his trust render to such district court a full

account of all his proceedings, receipts, and expenditures as such

agent, which court shall, upon due notice, settle and adjust such

accounts and discharge such agent and sureties upon such bond. In

case any such agent so elected shall die, resign, or be removed,

any shareholder may call a meeting of the shareholders of the

association in the town, city, or village where the business of the

association was carried on, by giving notice thereof for thirty

days in a newspaper published in such town, city, or village, or if

no newspaper is there published, in the newspaper published nearest

thereto, at which meeting the shareholders shall elect an agent,

voting by ballot, in person or by proxy, each share of stock

entitling the holder to one vote, and when such agent shall have

received votes representing at least a majority of the stock in

number of shares, and shall have executed a bond to the

shareholders conditioned for the payment and discharge in full or,

to the extent possible from the remaining assets of the

association, of each and every claim that may thereafter be proved

and allowed by and before a competent court and for the faithful

performance of his duties, in the penalty fixed by the shareholders

at such meeting, with a surety or sureties, to be approved by such

court, and file such bond in the office of the clerk of that court,

he shall have all the rights, powers, and duties of the agent first

elected as hereinbefore provided. At any meeting held as

hereinbefore provided administrators or executors of deceased

shareholders may act and sign as the decedent might have done if

living, and guardians of minors and trustees of other persons may

so act and sign for their ward or wards or cestui que trust. The

proceeds of the assets or property of any such association which

may be undistributed at the time of such meeting or may be

subsequently received shall be distributed as follows:

First. To pay the expenses of the execution of the trust to the

date of such payment.

Second. To repay any amount or amounts which have been paid in

by any shareholder or shareholders of the association upon and by

reason of any and all assessments made upon the stock of the

association by order of the Comptroller of the Currency in

accordance with the provisions of the statutes of the United

States.

Third. To pay the balance ratably among such stockholders, in

proportion to the number of shares held and owned by each. Such

distribution shall be made from time to time as the proceeds

shall be received and as shall be deemed advisable by the

Comptroller of the Currency, or the Federal Deposit Insurance

Corporation if continued as receiver of the bank under subsection

(a) of this section, or such agent, as the case may be.

-SOURCE-

(June 30, 1876, ch. 156, Sec. 3, 19 Stat. 63; Aug. 3, 1892, ch.

360, 27 Stat. 345; Mar. 2, 1897, ch. 354, 29 Stat. 600; Mar. 3,

1911, ch. 231, Sec. 291, 36 Stat. 1167; Pub. L. 86-230, Sec. 18,

Sept. 8, 1959, 73 Stat. 458.)

-REFTEXT-

REFERENCES IN TEXT

Section fifty-two hundred and thirty-four and other sections of

the Revised Statutes of the United States, referred to in subsec.

(a), are classified to section 192 of this title and other sections

of the Code. See Tables.

This Act, referred to in subsec. (a), is act June 30, 1876, ch.

156, 19 Stat. 63, as amended, sections 1, 3, and 4 of which are

classified to this section and sections 55 and 191 of this title,

respectively. Section 2 of the Act, which was classified to

section 65 of this title, was repealed by Pub. L. 86-230, Sec. 8,

Sept. 8, 1959, 73 Stat. 457. Section 5 of the Act, which was

classified to section 424 of former Title 31, was repealed and

reenacted as section 5153 of Title 31, Money and Finance, by Pub.

L. 97-258, Sept. 13, 1982, 96 Stat. 877.

-MISC2-

AMENDMENTS

1959 - Subsec. (a). Pub. L. 86-230 designated former first par.,

less last sentence, as subsec. (a), and incorporated references to

Federal Deposit Insurance Corporation respecting receiverships

under section 1821(c) of this title, convocation of shareholders,

transfer of assets, execution of instruments and discharge from

liability, omitted provision for deposit of money with the

Treasurer of the United States for the redemption of the

circulating notes of the association, and for the value of shares

as a test to determine whether a majority vote has been cast in a

stockholders' meeting, required the windup agent to file a bond to

the shareholders in an amount satisfactory to them with sureties

approved by appropriate district court instead of a bond from the

shareholders satisfactory to the Comptroller and to condition the

bond to payment of proved claims to the extent possible from the

remaining instead of payment of the claims in full, only.

Subsec. (b). Pub. L. 86-230 designated former last sentence of

first par. and second par., as subsec. (b), and omitted provisions

which related to refusal of agent to serve as a ground for the

calling of an election of another agent, to the value of shares as

a test to determine whether a majority vote has been cast in a

stockholders' meeting, required the bond of the windup agent to be

conditioned for payment of proved claims to the extent possible

from the remaining assets instead of payment of the claims in full,

only, and provided for the distribution of the balance as shall be

deemed advisable by the Federal Deposit Insurance Corporation.

-TRANS-

TRANSFER OF FUNCTIONS

For transfer of functions to Secretary of the Treasury, see note

set out under section 121 of this title.

Act Mar. 3, 1911, conferred upon the district courts all powers

formerly vested in the former circuit courts.

-MISC5-

APPLICATION TO DISTRICT OF COLUMBIA

Provisions of this section were made applicable to banks, etc.,

in the District of Columbia by act Mar. 4, 1933, ch. 274, Sec. 4,

47 Stat. 1567.

-CITE-

12 USC Sec. 197a 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER XIII - RECEIVERSHIP

-HEAD-

Sec. 197a. Resumption of business by closed bank on consent of

depositors

-STATUTE-

In any case in which, in the opinion of the Comptroller of the

Currency, it would be to the advantage of the depositors and

unsecured creditors of any national banking association whose

business has been closed, for such association to resume business

upon the retention by the association, for a reasonable period to

be prescribed by the Comptroller, of all or any part of its

deposits, the Comptroller is authorized, in his discretion, to

permit the association to resume business if depositors and

unsecured creditors of the association representing at least 75 per

centum of its total deposit and unsecured credit liabilities

consent in writing to such retention of deposits. Nothing in this

section shall be construed to affect in any manner any powers of

the Comptroller under the provisions of law in force on June 16,

1933, with respect to the reorganization of national banking

associations.

-SOURCE-

(June 16, 1933, ch. 89, Sec. 29, 48 Stat. 193.)

-TRANS-

EXCEPTION AS TO TRANSFER OF FUNCTIONS

Functions vested by any provision of law in Comptroller of the

Currency, referred to in this section, not included in transfer of

functions to Secretary of the Treasury, see note set out under

section 1 of this title.

-CITE-

12 USC Sec. 198 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER XIII - RECEIVERSHIP

-HEAD-

Sec. 198. Purchase by receiver of property of bank; request to

Comptroller

-STATUTE-

Whenever the receiver of any national bank duly appointed by the

Comptroller of the Currency, and who shall have duly qualified and

entered upon the discharge of his trust, shall find it in his

opinion necessary, in order to fully protect and benefit his said

trust, to the extent of any and all equities that such trust may

have in any property, real or personal, by reason of any bond,

mortgage, assignment, or other proper legal claim attaching

thereto, and which said property is to be sold under any execution,

decree of foreclosure, or proper order of any court of

jurisdiction, he may certify the facts in the case, together with

his opinion as to the value of the property to be sold, and the

value of the equity his said trust may have in the same, to the

Comptroller of the Currency, together with a request for the right

and authority to use and employ so much of the money of said trust

as may be necessary to purchase such property at such sale.

-SOURCE-

(Mar. 29, 1886, ch. 28, Sec. 1, 24 Stat. 8.)

-TRANS-

EXCEPTION AS TO TRANSFER OF FUNCTIONS

Functions vested by any provision of law in Comptroller of the

Currency, referred to in this section, not included in transfer of

functions to Secretary of the Treasury, see note set out under

section 1 of this title.

-MISC5-

APPLICATION TO DISTRICT OF COLUMBIA

Provisions of this section were made applicable to banks, etc.,

in the District of Columbia by act Mar. 4, 1933, ch. 274, Sec. 4,

47 Stat. 1567.

-CITE-

12 USC Sec. 199 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER XIII - RECEIVERSHIP

-HEAD-

Sec. 199. Approval of request

-STATUTE-

Such request, if approved by the Comptroller of the Currency,

shall be, together with the certificate of facts in the case, and

his recommendation as to the amount of money which, in his

judgment, should be so used and employed, submitted to the

Secretary of the Treasury, and if the same shall likewise be

approved by him, the request shall be by the Comptroller of the

Currency allowed, and notice thereof, with copies of the request,

certificate of facts, and indorsement of approvals, shall be filed

with the Treasurer of the United States.

-SOURCE-

(Mar. 29, 1886, ch. 28, Sec. 2, 24 Stat. 8.)

-TRANS-

TRANSFER OF FUNCTIONS

For transfer of functions to Secretary of the Treasury, see note

set out under section 121 of this title.

-MISC5-

APPLICATION TO DISTRICT OF COLUMBIA

Provisions of this section were made applicable to banks, etc.,

in the District of Columbia by act Mar. 4, 1933, ch. 274, Sec. 4,

47 Stat. 1567.

-CITE-

12 USC Sec. 200 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER XIII - RECEIVERSHIP

-HEAD-

Sec. 200. Payment

-STATUTE-

Whenever any such request shall be allowed as hereinbefore

provided, the said Comptroller of the Currency shall be, and is,

empowered to draw upon and from such funds of any such trust as may

be deposited with the Treasurer of the United States for the

benefit of the bank in interest, to the amount as may be

recommended and allowed and for the purpose for which such

allowance was made: Provided, however, That all payments to be made

for or on account of the purchase of any such property and under

any such allowance shall be made by the Comptroller of the Currency

direct, with the approval of the Secretary of the Treasury, for

such purpose only and in such manner as he may determine and order.

-SOURCE-

(Mar. 29, 1886, ch. 28, Sec. 3, 24 Stat. 8.)

-TRANS-

TRANSFER OF FUNCTIONS

For transfer of functions to Secretary of the Treasury, see note

set out under section 121 of this title.

-MISC5-

APPLICATION TO DISTRICT OF COLUMBIA

Provisions of this section were made applicable to banks, etc.,

in the District of Columbia by act Mar. 4, 1933, ch. 274, Sec. 4,

47 Stat. 1567.

-CITE-

12 USC SUBCHAPTER XIV - BANK CONSERVATION ACT 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER XIV - BANK CONSERVATION ACT

.

-HEAD-

SUBCHAPTER XIV - BANK CONSERVATION ACT

-CITE-

12 USC Sec. 201 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER XIV - BANK CONSERVATION ACT

-HEAD-

Sec. 201. Short title

-STATUTE-

This subchapter may be cited as the ''Bank Conservation Act.''

-SOURCE-

(Mar. 9, 1933, ch. 1, title II, Sec. 201, 48 Stat. 2.)

-CITE-

12 USC Sec. 202 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER XIV - BANK CONSERVATION ACT

-HEAD-

Sec. 202. Definitions

-STATUTE-

As used in this subchapter, the term ''bank'' means (1) any

national banking association or any other financial institution

chartered or licensed under Federal law and subject to the

supervision of the Comptroller of the Currency, and (2) any bank or

trust company located in the District of Columbia and operating

under the supervision of the Comptroller of the Currency; the term

''voluntary dissolution and liquidation'' means a transaction

pursuant to section 181 of this title that involves the assumption

of the bank's insured deposit liabilities and the sale of the bank,

or of control of the bank, as a going concern; and the term

''State'' means any State, Territory, or possession of the United

States, and the Canal Zone.

-SOURCE-

(Mar. 9, 1933, ch. 1, title II, Sec. 202, 48 Stat. 2; Pub. L.

101-73, title VIII, Sec. 801, Aug. 9, 1989, 103 Stat. 441.)

-REFTEXT-

REFERENCES IN TEXT

For definition of Canal Zone, referred to in text, see section

3602(b) of Title 22, Foreign Relations and Intercourse.

-MISC2-

AMENDMENTS

1989 - Pub. L. 101-73, Sec. 801(1), in cl. (1), extended term

''bank'' to include any financial institution chartered or licensed

under Federal law and subject to supervision of Comptroller of the

Currency.

Pub. L. 101-73, Sec. 801(2), in cl. (2), inserted definition of

term ''voluntary dissolution and liquidation''.

-TRANS-

EXCEPTION AS TO TRANSFER OF FUNCTIONS

Functions vested by any provision of law in Comptroller of the

Currency, referred to in this section, not included in transfer of

functions to Secretary of the Treasury, see note set out under

section 1 of this title.

-CITE-

12 USC Sec. 203 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 2 - NATIONAL BANKS

SUBCHAPTER XIV - BANK CONSERVATION ACT

-HEAD-

Sec. 203. Appointment of conservator

-STATUTE-

(a) Appointment

The Comptroller of the Currency may, without prior notice or

hearings, appoint a conservator (which may be the Federal Deposit

Insurance Corporation) to the possession and control of a bank

whenever the Comptroller of the Currency determines that 1 or more

of the grounds specified in section 11(c)(5) of the Federal Deposit

Insurance Act (12 U.S.C. 1821(c)(5)) exist.

(b) Judicial review

(1) In general

Not later than 20 days after the initial appointment of a

conservator pursuant to this section, the bank may bring an

action in the United States district court for the judicial

district in which the home office of such bank is located, or in

the United States District Court for the District of Columbia,

for an order requiring the Comptroller to terminate the

appointment of the conservator, and the court, upon the merits,

shall dismiss such action or shall direct the Comptroller to

terminate the appointment of such conservator. The Comptroller's

decision to appoint a conser