US (United States) Code. Title 12. Chapter 6: Foreing banking

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

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publicidad

-CITE-

12 USC CHAPTER 6 - FOREIGN BANKING 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 6 - FOREIGN BANKING

.

-HEAD-

CHAPTER 6 - FOREIGN BANKING

-MISC1-

SUBCHAPTER I - ESTABLISHMENT BY NATIONAL BANKS OF FOREIGN BRANCHES

AND INVESTMENTS IN BANKS DOING FOREIGN BUSINESS

Sec.

601. Authorization; conditions and regulations.

602. Reports and examinations.

603. Restrictions imposed by Board of Governors of the Federal

Reserve System on banks purchasing stock in corporations doing

foreign business.

604. Accounts of foreign branches; profit and loss.

604a. Regulations authorizing exercise by foreign branches of usual

powers of local banks; restrictions.

605. Repealed.

SUBCHAPTER II - ORGANIZATION OF CORPORATIONS TO DO FOREIGN BANKING

611. Formation authorized; fiscal agents; depositaries in insular

possessions.

611a. Statement of purposes; rules and regulations.

612. Articles of association; contents.

613. Signing of articles of association; forwarding to and filing

by Board of Governors of the Federal Reserve System; organization

certificate; contents.

614. Organization certificate; acknowledgment; forwarding to,

filing, and approval by Board of Governors of the Federal Reserve

System; permit to do business; body corporate; name; seal;

corporate succession; contracts; suits; directors, officers, and

employees; bylaws.

615. Powers of corporation.

(a) Dealings in drafts, checks, bills of exchange,

acceptances, and other evidences of

indebtedness; purchase and sale of securities;

letters of credit; purchase and sale of coin,

bullion, and exchange; borrowing and loaning

money; issue of debentures, bonds, and notes;

deposits; limitation of liabilities; reserves.

(b) Branches or agencies.

(c) Purchase of stock in other corporations.

616. Place of carrying on business; when business may be begun.

617. Engaging in commerce or trade in commodities; price fixing;

forfeiture of charter; acts forbidden to directors, officers,

agents, or employees.

618. Capital stock; amount; when paid in.

619. Capital stock; by whom held; ownership of capital stock by

foreign bank.

620. Members of Board of Governors of the Federal Reserve System

without interest in corporation.

621. Liability of shareholders on unpaid subscriptions; membership

of corporation in Federal reserve bank prohibited.

622. Forfeiture of rights and privileges; dissolution; liability of

directors and officers.

623. Voluntary liquidation.

624. Appointment of receiver or conservator.

625. Stockholders' meetings; books and records; reports;

examination.

626. Dividends; surplus fund.

627. State taxation.

628. Extension of corporate existence.

629. Conversion of banking corporations into Federal corporations;

procedure.

630. Offenses by officers of corporation; punishment.

631. False representations as to liability of United States for

acts of corporation; punishment.

632. Jurisdiction of United States courts; disposition by banks of

foreign owned property.

633. Potential liability on foreign accounts.

(a) Exceptions from repayment requirement.

(b) Regulations.

-CITE-

12 USC SUBCHAPTER I - ESTABLISHMENT BY NATIONAL BANKS OF

FOREIGN BRANCHES AND INVESTMENTS IN BANKS

DOING FOREIGN BUSINESS 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 6 - FOREIGN BANKING

SUBCHAPTER I - ESTABLISHMENT BY NATIONAL BANKS OF FOREIGN BRANCHES

AND INVESTMENTS IN BANKS DOING FOREIGN BUSINESS

.

-HEAD-

SUBCHAPTER I - ESTABLISHMENT BY NATIONAL BANKS OF FOREIGN BRANCHES

AND INVESTMENTS IN BANKS DOING FOREIGN BUSINESS

-SECREF-

SUBCHAPTER REFERRED TO IN OTHER SECTIONS

This subchapter is referred to in sections 24a, 36, 461, 618,

619, 1786, 1818, 1841, 1843, 2804, 3101, 3204, 3902, 4402 of this

title; title 7 section 27; title 15 sections 57a, 78c, 1607, 1681s,

1691c, 1692l, 1693o, 6505, 6805, 6822; title 18 sections 20, 212,

213, 655, 656, 1004, 1005, 1014, 1030, 1906; title 31 section 5313.

-CITE-

12 USC Sec. 601 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 6 - FOREIGN BANKING

SUBCHAPTER I - ESTABLISHMENT BY NATIONAL BANKS OF FOREIGN BRANCHES

AND INVESTMENTS IN BANKS DOING FOREIGN BUSINESS

-HEAD-

Sec. 601. Authorization; conditions and regulations

-STATUTE-

Any national banking association possessing a capital and surplus

of $1,000,000 or more may file application with the Board of

Governors of the Federal Reserve System for permission to exercise,

upon such conditions and under such regulations as may be

prescribed by the said board, the following powers:

First. To establish branches in foreign countries or dependencies

or insular possessions of the United States for the furtherance of

the foreign commerce of the United States, and to act if required

to do so as fiscal agents of the United States.

Second. To invest an amount not exceeding in the aggregate 10 per

centum of its paid-in capital stock and surplus in the stock of one

or more banks or corporations chartered or incorporated under the

laws of the United States or of any State thereof, and principally

engaged in international or foreign banking, or banking in a

dependency or insular possession of the United States either

directly or through the agency, ownership, or control of local

institutions in foreign countries, or in such dependencies or

insular possessions.

Third. To acquire and hold, directly or indirectly, stock or

other evidences of ownership in one or more banks organized under

the law of a foreign country or a dependency or insular possession

of the United States and not engaged, directly or indirectly, in

any activity in the United States except as, in the judgment of the

Board of Governors of the Federal Reserve System, shall be

incidental to the international or foreign business of such foreign

bank; and, notwithstanding the provisions of section 371c of this

title, to make loans or extensions of credit to or for the account

of such bank in the manner and within the limits prescribed by the

Board by general or specific regulation or ruling.

Until January 1, 1921, any national banking association, without

regard to the amount of its capital and surplus, may file

application with the Board of Governors of the Federal Reserve

System for permission, upon such conditions and under such

regulations as may be prescribed by said board, to invest an amount

not exceeding in the aggregate 5 per centum of its paid-in capital

and surplus in the stock of one or more corporations chartered or

incorporated under the laws of the United States or of any State

thereof and, regardless of its location, principally engaged in

such phases of international or foreign financial operations as may

be necessary to facilitate the export of goods, wares, or

merchandise from the United States or any of its dependencies or

insular possessions to any foreign country: Provided, however, That

in no event shall the total investments authorized by this

subchapter by any one national bank exceed 10 per centum of its

capital and surplus.

Such application shall specify the name and capital of the

banking association filing it, the powers applied for, and the

place or places where the banking or financial operations proposed

are to be carried on. The Board of Governors of the Federal

Reserve System shall have power to approve or to reject such

application in whole or in part if for any reason the granting of

such application is deemed inexpedient, and shall also have power

from time to time to increase or decrease the number of places

where such banking operations may be carried on.

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 25 (pars.), 38 Stat. 273; Sept. 7,

1916, ch. 461, 39 Stat. 755; Sept. 17, 1919, ch. 60, Sec. 1, 2, 41

Stat. 285, 286; Aug. 23, 1935, ch. 614, title II, Sec. 203(a), 49

Stat. 704; Pub. L. 89-485, Sec. 12(b), July 1, 1966, 80 Stat. 241.)

-REFTEXT-

REFERENCES IN TEXT

This subchapter, referred to in the proviso to the fifth par.,

was in the original ''this section'', meaning section 25 of act

Dec. 23, 1913, which is classified to this subchapter (Sec. 601 et

seq.).

-COD-

CODIFICATION

Section is comprised of a part of section 25 of act Dec. 23,

1913, as amended, which comprises this subchapter.

-MISC3-

AMENDMENTS

1966 - Pub. L. 89-485 struck out ''either or both of'' before

''the following powers'' in introductory par.

Par. Third. Pub. L. 89-485 added par. Third.

1919 - Act Sept. 17, 1919, added par. beginning ''Until January

21, 1921'' and inserted ''financial'' in first sentence of last

par.

1916 - Act Sept. 7, 1916, among other changes, added par.

Second, and provisions relating to restrictions on purchasing stock

in other banks, investigations as to compliance with regulations,

disposal of interest and separation of accounts, etc. which are now

contained in section 602 et seq. 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-

STUDY BY SECRETARY OF THE TREASURY OF DISCRIMINATORY PRACTICES BY

FOREIGN NATIONS AGAINST UNITED STATES BANKS; REPORT AND

RECOMMENDATIONS TO CONGRESS

Pub. L. 95-369, Sec. 9(a), formerly Sec. 9, Sept. 17, 1978, 92

Stat. 623, renumbered Pub. L. 95-630, title III, Sec. 311, Nov. 10,

1978, 92 Stat. 3678, provided that the Secretary of the Treasury

conduct a study of discriminatory practices by foreign nations

against United States banks and report his findings and

recommendations to Congress on or before one year after Sept. 17,

1978, along with a description of efforts taken by the United

States to eliminate any foreign laws or practices that discriminate

against United States banks or serve as a barrier to the financing

of United States exports to any country.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 602, 603 of this title.

-CITE-

12 USC Sec. 602 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 6 - FOREIGN BANKING

SUBCHAPTER I - ESTABLISHMENT BY NATIONAL BANKS OF FOREIGN BRANCHES

AND INVESTMENTS IN BANKS DOING FOREIGN BUSINESS

-HEAD-

Sec. 602. Reports and examinations

-STATUTE-

Every national banking association operating foreign branches

shall be required to furnish information concerning the condition

of such branches to the Comptroller of the Currency upon demand,

and every member bank investing in the capital stock of banks or

corporations described in subsection second of section 601 of this

title shall be required to furnish information concerning the

condition of such banks or corporations to the Board of Governors

of the Federal Reserve System upon demand, and the Board of

Governors of the Federal Reserve System may order special

examinations of the said branches, banks, or corporations at such

time or times as it may deem best.

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 25 (par.), 38 Stat. 273; Sept. 7, 1916,

ch. 461, 39 Stat. 755; Sept. 17, 1919, ch. 60, Sec. 3, 41 Stat.

286; Aug. 23, 1935, ch. 614, title II, Sec. 203(a), 49 Stat. 704.)

-COD-

CODIFICATION

Section is comprised of a part of section 25 of act Dec. 23,

1913, as amended, which comprises this subchapter.

-MISC3-

AMENDMENTS

1919 - Act Sept. 17, 1919, corrected reference to preceding

section.

1916 - Act Sept. 7, 1916, substituted ''operating'' for ''which

shall receive authority to establish foreign branches'' and

inserted ''every member bank investing in the capital stock of

banks or corporations described in subsection second of section 601

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.

-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. 603 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 6 - FOREIGN BANKING

SUBCHAPTER I - ESTABLISHMENT BY NATIONAL BANKS OF FOREIGN BRANCHES

AND INVESTMENTS IN BANKS DOING FOREIGN BUSINESS

-HEAD-

Sec. 603. Restrictions imposed by Board of Governors of the Federal

Reserve System on banks purchasing stock in corporations doing

foreign business

-STATUTE-

Before any national bank shall be permitted to purchase stock in

any corporation described in section 601 of this title, the said

corporation shall enter into an agreement or undertaking with the

Board of Governors of the Federal Reserve System to restrict its

operations or conduct its business in such manner or under such

limitations and restrictions as the said board may prescribe for

the place or places wherein such business is to be conducted. If

at any time the Board of Governors of the Federal Reserve System

shall ascertain that the regulations prescribed by it are not being

complied with, said board is authorized and empowered to institute

an investigation of the matter and to send for persons and papers,

subpoena witnesses, and administer oaths in order to satisfy itself

as to the actual nature of the transactions referred to. Should

such investigation result in establishing the failure of the

corporation in question, or of the national bank or banks which may

be stockholders therein, to comply with the regulations laid down

by the said Board of Governors of the Federal Reserve System, such

national banks may be required to dispose of stock holdings in the

said corporation upon reasonable notice.

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 25 (par.), as added Sept. 7, 1916, ch.

461, 39 Stat. 755; amended Aug. 23, 1935, ch. 614, title II, Sec.

203(a), 49 Stat. 704.)

-COD-

CODIFICATION

Section is comprised of a part of section 25 of act Dec. 23,

1913, as amended, which comprises this subchapter.

-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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in title 7 section 1a.

-CITE-

12 USC Sec. 604 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 6 - FOREIGN BANKING

SUBCHAPTER I - ESTABLISHMENT BY NATIONAL BANKS OF FOREIGN BRANCHES

AND INVESTMENTS IN BANKS DOING FOREIGN BUSINESS

-HEAD-

Sec. 604. Accounts of foreign branches; profit and loss

-STATUTE-

Every national banking association operating foreign branches

shall conduct the accounts of each foreign branch independently of

the accounts of other foreign branches established by it and of its

home office, and shall at the end of each fiscal period transfer to

its general ledger the profit or loss accrued at each branch as a

separate item.

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 25 (par.), 38 Stat. 273; Sept. 7, 1916,

ch. 461, 39 Stat. 756.)

-COD-

CODIFICATION

Section is comprised of a part of section 25 of act Dec. 23,

1913, as amended, which comprises this subchapter.

The words ''national banking association operating foreign

branches'' were in the original ''such banking association''.

-MISC3-

AMENDMENTS

1916 - Act Sept. 7, 1916, substituted ''accrued'' for

''accruing''.

-CITE-

12 USC Sec. 604a 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 6 - FOREIGN BANKING

SUBCHAPTER I - ESTABLISHMENT BY NATIONAL BANKS OF FOREIGN BRANCHES

AND INVESTMENTS IN BANKS DOING FOREIGN BUSINESS

-HEAD-

Sec. 604a. Regulations authorizing exercise by foreign branches of

usual powers of local banks; restrictions

-STATUTE-

Regulations issued by the Board of Governors of the Federal

Reserve System under this subchapter, in addition to regulating

powers which a foreign branch may exercise under other provisions

of law, may authorize such a foreign branch, subject to such

condition and requirements as such regulations may prescribe, to

exercise such further powers as may be usual in connection with the

transaction of the business of banking in the places where such

foreign branch shall transact business. Such regulations shall not

authorize a foreign branch to engage in the general business of

producing, distributing, buying or selling goods, wares, or

merchandise; nor, except to such limited extent as the Board may

deem to be necessary with respect to securities issued by any

''foreign state'' as defined in section 632 of this title, shall

such regulations authorize a foreign branch to engage or

participate, directly or indirectly, in the business of

underwriting, selling, or distributing securities.

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 25 (par.), as added Pub. L. 87-588,

Aug. 15, 1962, 76 Stat. 388.)

-REFTEXT-

REFERENCES IN TEXT

This subchapter, referred to in text, was in the original ''this

section'', meaning section 25 of act Dec. 23, 1913, which is

classified to this subchapter (Sec. 601 et seq.).

-COD-

CODIFICATION

Section is comprised of a part of section 25 of act Dec. 23,

1913, as amended, which comprises this subchapter.

-CITE-

12 USC Sec. 605 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 6 - FOREIGN BANKING

SUBCHAPTER I - ESTABLISHMENT BY NATIONAL BANKS OF FOREIGN BRANCHES

AND INVESTMENTS IN BANKS DOING FOREIGN BUSINESS

-HEAD-

Sec. 605. Repealed. Aug. 23, 1935, ch. 614, title III, Sec. 329, 49

Stat. 717

-MISC1-

Section, act Dec. 23, 1913, ch. 6, Sec. 25 (par.), 38 Stat. 273,

as amended by act Sept. 7, 1916, ch. 461, 39 Stat. 755, related to

interlocking directors, officers, and employees. See section 19 of

Title 15, Commerce and Trade.

-CITE-

12 USC SUBCHAPTER II - ORGANIZATION OF CORPORATIONS TO DO

FOREIGN BANKING 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 6 - FOREIGN BANKING

SUBCHAPTER II - ORGANIZATION OF CORPORATIONS TO DO FOREIGN BANKING

.

-HEAD-

SUBCHAPTER II - ORGANIZATION OF CORPORATIONS TO DO FOREIGN BANKING

-SECREF-

SUBCHAPTER REFERRED TO IN OTHER SECTIONS

This subchapter is referred to in sections 24a, 1818, 1841, 1843,

2804, 3103, 3204, 3902, 4402, 4422 of this title; title 7 sections

1a, 27; title 11 sections 103, 109, 781; title 15 sections 57a,

77kkk, 78c, 78q, 1607, 1681s, 1691c, 1692l, 1693o, 4001, 6505,

6805, 6822; title 18 sections 20, 212, 213, 655, 656, 1004, 1005,

1014, 1030, 1906; title 31 section 5313.

-CITE-

12 USC Sec. 611 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 6 - FOREIGN BANKING

SUBCHAPTER II - ORGANIZATION OF CORPORATIONS TO DO FOREIGN BANKING

-HEAD-

Sec. 611. Formation authorized; fiscal agents; depositaries in

insular possessions

-STATUTE-

Corporations to be organized for the purpose of engaging in

international or foreign banking or other international or foreign

financial operations, or in banking or other financial operations

in a dependency or insular possession of the United States, either

directly or through the agency, ownership or control of local

institutions in foreign countries, or in such dependencies or

insular possessions as provided by this subchapter and to act when

required by the Secretary of the Treasury as fiscal agents of the

United States, may be formed by any number of natural persons, not

less in any case than five: Provided, That nothing in this

subchapter shall be construed to deny the right of the Secretary of

the Treasury to use any corporation organized under this subchapter

as depositaries in Panama and the Panama Canal Zone, or other

insular possessions and dependencies of the United States.

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 25A (par.), formerly Sec. 25(a), as

added Dec. 24, 1919, ch. 18, 41 Stat. 378; amended Feb. 27, 1921,

ch. 73, 41 Stat. 1145; Proc. No. 2695, eff. July 4, 1946, 11 F.R.

2517, 60 Stat. 1352; renumbered Sec. 25A, Pub. L. 102-242, title I,

Sec. 142(e)(2), Dec. 19, 1991, 105 Stat. 2281.)

-REFTEXT-

REFERENCES IN TEXT

This subchapter, referred to in text, was in the original ''this

section'', meaning section 25A of act Dec. 23, 1913, which is

classified to this subchapter (Sec. 611 et seq.).

For definition of Canal Zone, referred to in text, see section

3602(b) of Title 22, Foreign Relations and Intercourse.

-COD-

CODIFICATION

Section is comprised of a part of section 25A, formerly section

25(a), which was added to act Dec. 23, 1913, ch. 6, by act Dec. 24,

1919.

Words ''in the Philippine Islands and'' following ''Canal Zone,

or'' were deleted on authority of Proc. No. 2695, which granted

independence to the Philippine Islands pursuant to section 1394 of

Title 22. Proc. No. 2695 is set out as a note under section 1394 of

Title 22, Foreign Relations and Intercourse.

-MISC3-

AMENDMENTS

1921 - Act Feb. 27, 1921, inserted proviso.

SHORT TITLE

Section 25A, formerly section 25(a) of act Dec. 23, 1913, ch. 6,

as added by act Dec. 24, 1919, ch. 18, 41 Stat. 378, which is

classified to this subchapter, is popularly known as the ''Edge

Act''.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 612, 615 of this title.

-CITE-

12 USC Sec. 611a 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 6 - FOREIGN BANKING

SUBCHAPTER II - ORGANIZATION OF CORPORATIONS TO DO FOREIGN BANKING

-HEAD-

Sec. 611a. Statement of purposes; rules and regulations

-STATUTE-

The Congress declares that it is the purpose of this subchapter

to provide for the establishment of international banking and

financial corporations operating under Federal supervision with

powers sufficiently broad to enable them to compete effectively

with similar foreign-owned institutions in the United States and

abroad; to afford to the United States exporter and importer in

particular, and to United States commerce, industry, and

agriculture in general, at all times a means of financing

international trade, especially United States exports; to foster

the participation by regional and smaller banks throughout the

United States in the provision of international banking and

financing services to all segments of United States agriculture,

commerce, and industry, and, in particular small business and

farming concerns; to stimulate competition in the provision of

international banking and financing services throughout the United

States; and, in conjunction with each of the preceding purposes, to

facilitate and stimulate the export of United States goods, wares,

merchandise, commodities, and services to achieve a sound United

States international trade position. The Board of Governors of the

Federal Reserve System shall issue rules and regulations under this

subchapter consistent with and in furtherance of the purposes

described in the preceding sentence, and, in accordance therewith,

shall review and revise any such rules and regulations at least

once every five years, the first such period commencing with the

effective date of rules and regulations issued pursuant to section

3(a) of the International Banking Act of 1978, in order to ensure

that such purposes are being served in light of prevailing economic

conditions and banking practices.

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 25A (par.), formerly Sec. 25(a), as

added Pub. L. 95-369, Sec. 3(b), Sept. 17, 1978, 92 Stat. 608;

renumbered Sec. 25A, Pub. L. 102-242, title I, Sec. 142(e)(2), Dec.

19, 1991, 105 Stat. 2281.)

-REFTEXT-

REFERENCES IN TEXT

This subchapter, referred to in text, was in the original ''this

section'', meaning section 25A of act Dec. 23, 1913, which is

classified to this subchapter (Sec. 611 et seq.).

Section 3(a) of the International Banking Act of 1978, referred

to in text, is Pub. L. 95-369, Sec. 3(a), Sept. 17, 1978, 92 Stat.

608, which is set out below.

-COD-

CODIFICATION

Section is comprised of the second par. of section 25A, formerly

section 25(a), which was added to act Dec. 23, 1913, ch. 6, by Pub.

L. 95-369.

-MISC3-

ELIMINATION OR MODIFICATION OF RESTRICTIONS LIMITING FOREIGN

BANKING; CONGRESSIONAL DECLARATION OF PURPOSE

Section 3(a) of Pub. L. 95-369 provided that: ''It is the purpose

of this section (adding this section, amending sections 614, 615,

618, and 619 of this title, and enacting provisions set out as note

under section 247 of this title) to eliminate or modify provisions

in section 25(a) (now 25A) of the Federal Reserve Act (this

subchapter) that (1) discriminate against foreign-owned banking

institutions, (2) disadvantage or unnecessarily restrict or limit

corporations organized under section 25(a) of the Federal Reserve

Act in competing with foreign-owned banking institutions in the

United States or abroad or (3) impede the attainment of the

Congressional purposes set forth in section 25(a) of the Federal

Reserve Act as amended by subsection (b) of this section (adding

this section). In furtherance of such purpose, the Congress

believes that the Board should review and revise its rules,

regulations, and interpretations issued pursuant to section 25(a)

of the Federal Reserve Act to eliminate or modify any restrictions,

conditions, or limitations not required by section 25(a) of the

Federal Reserve Act, as amended, that (1) discriminate against

foreign-owned banking institutions, (2) disadvantage or

unnecessarily restrict or limit corporations organized under

section 25(a) of the Federal Reserve Act in competing with

foreign-owned banking institutions in the United States or abroad,

or (3) impede the attainment of the Congressional purposes set

forth in section 25(a) of the Federal Reserve Act as amended by

subsection (b) of this section. Rules and regulations pursuant to

this subsection and section 25(a) of the Federal Reserve Act shall

be issued not later than 150 days after the date of enactment of

this section (Sept. 17, 1978) and shall be issued in final form and

become effective not later than 120 days after they are first

issued.''

-CITE-

12 USC Sec. 612 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 6 - FOREIGN BANKING

SUBCHAPTER II - ORGANIZATION OF CORPORATIONS TO DO FOREIGN BANKING

-HEAD-

Sec. 612. Articles of association; contents

-STATUTE-

The persons described in section 611 of this title shall enter

into articles of association which shall specify in general terms

the objects 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.

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 25A (par.), formerly Sec. 25(a), as

added Dec. 24, 1919, ch. 18, 41 Stat. 378; renumbered Sec. 25A,

Pub. L. 102-242, title I, Sec. 142(e)(2), Dec. 19, 1991, 105 Stat.

2281.)

-REFTEXT-

REFERENCES IN TEXT

The persons described in section 611 of this title, referred to

in text, was in the original ''Such persons''.

-COD-

CODIFICATION

Section is comprised of a part of section 25A, formerly section

25(a), which was added to act Dec. 23, 1913, ch. 6, by act Dec. 24,

1919.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 613, 615 of this title.

-CITE-

12 USC Sec. 613 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 6 - FOREIGN BANKING

SUBCHAPTER II - ORGANIZATION OF CORPORATIONS TO DO FOREIGN BANKING

-HEAD-

Sec. 613. Signing of articles of association; forwarding to and

filing by Board of Governors of the Federal Reserve System;

organization certificate; contents

-STATUTE-

Articles of association described in section 612 of this title

shall be signed by all of the persons intending to participate in

the organization of the corporation and, thereafter, shall be

forwarded to the Board of Governors of the Federal Reserve System

and shall be filed and preserved in its office. The persons

signing the said articles of association shall, under their hands,

make an organization certificate which shall specifically state:

First. The name assumed by such corporation, which shall be

subject to the approval of the Board of Governors of the Federal

Reserve System.

Second. The place or places where its operations are to be

carried on.

Third. The place in the United States where its home office is to

be located.

Fourth. The amount of its capital stock and the number of shares

into which the same shall be divided.

Fifth. The names and places of business or residence of the

persons executing the certificate and the number of shares to which

each has subscribed.

Sixth. The fact that the certificate is made to enable the

persons subscribing the same, and all other persons, firms,

companies, and corporations, who or which may thereafter subscribe

to or purchase shares of the capital stock of such corporation, to

avail themselves of the advantages of this subchapter.

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 25A (pars.), formerly Sec. 25(a), as

added Dec. 24, 1919, ch. 18, 41 Stat. 378; amended Aug. 23, 1935,

ch. 614, title II, Sec. 203(a), 49 Stat. 704; renumbered Sec. 25A,

Pub. L. 102-242, title I, Sec. 142(e)(2), Dec. 19, 1991, 105 Stat.

2281.)

-REFTEXT-

REFERENCES IN TEXT

Articles of association described in section 612 of this title,

referred to in text, was in the original ''Such articles of

association''.

This subchapter, referred to in par. sixth, was in the original

''this section'', meaning section 25A of act Dec. 23, 1913, which

is classified to this subchapter (Sec. 611 et seq.).

-COD-

CODIFICATION

Section is comprised of a part of section 25A, formerly section

25(a), which was added to act Dec. 23, 1913, ch. 6, by act Dec. 24,

1919.

-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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 615 of this title.

-CITE-

12 USC Sec. 614 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 6 - FOREIGN BANKING

SUBCHAPTER II - ORGANIZATION OF CORPORATIONS TO DO FOREIGN BANKING

-HEAD-

Sec. 614. Organization certificate; acknowledgment; forwarding to,

filing, and approval by Board of Governors of the Federal

Reserve System; permit to do business; body corporate; name;

seal; corporate succession; contracts; suits; directors,

officers, and employees; bylaws

-STATUTE-

The persons signing the organization certificate shall duly

acknowledge the execution thereof before a judge of some court of

record or notary public, who shall certify thereto under the seal

of such court or notary, and thereafter the certificate shall be

forwarded to the Board of Governors of the Federal Reserve System

to be filed and preserved in its office. Upon duly making and

filing articles of association and an organization certificate, and

after the Board of Governors of the Federal Reserve System has

approved the same and issued a permit to begin business, the

association shall become and be a body corporate, and as such and

in the name designated therein shall have power to adopt and use a

corporate seal, which may be changed at the pleasure of its board

of directors; to have succession for a period of twenty years

unless sooner dissolved by the act of the shareholders owning

two-thirds of the stock or by an act of Congress or unless its

franchises become forfeited by some violation of law; to make

contracts; to sue and be sued, complain, and defend in any court of

law or equity; to elect or appoint directors; and, by its board of

directors, to appoint such officers and employees as may be deemed

proper, define their authority and duties, require bonds of them,

and fix the penalty thereof, dismiss such officers or employees, or

any thereof, at pleasure and appoint others to fill their places;

to prescribe, by its board of directors, bylaws not inconsistent

with law or with the regulations of the Board of Governors of the

Federal Reserve System regulating the manner in which its stock

shall be transferred, its directors elected or appointed, its

officers and employees appointed, its property transferred, and the

privileges granted to it by law exercised and enjoyed.

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 25A (par.), formerly Sec. 25(a), as

added Dec. 24, 1919, ch. 18, 41 Stat. 378; amended Aug. 23, 1935,

ch. 614, title II, Sec. 203(a), 49 Stat. 704; Pub. L. 95-369, Sec.

3(c), Sept. 17, 1978, 92 Stat. 609; renumbered Sec. 25A, Pub. L.

102-242, title I, Sec. 142(e)(2), Dec. 19, 1991, 105 Stat. 2281.)

-COD-

CODIFICATION

Section is comprised of a part of section 25A, formerly section

25(a), which was added to act Dec. 23, 1913, ch. 6, by act Dec. 24,

1919.

-MISC3-

AMENDMENTS

1978 - Pub. L. 95-369 struck out '', all of whom shall be

citizens of the United States'' after ''to elect or appoint

directors''.

-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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 615 of this title.

-CITE-

12 USC Sec. 615 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 6 - FOREIGN BANKING

SUBCHAPTER II - ORGANIZATION OF CORPORATIONS TO DO FOREIGN BANKING

-HEAD-

Sec. 615. Powers of corporation

-STATUTE-

Each corporation organized as provided in sections 611 to 614 of

this title shall have power, under such rules and regulations as

the Board of Governors of the Federal Reserve System may prescribe:

(a) Dealings in drafts, checks, bills of exchange, acceptances, and

other evidences of indebtedness; purchase and sale of

securities; letters of credit; purchase and sale of coin,

bullion, and exchange; borrowing and loaning money; issue of

debentures, bonds, and notes; deposits; limitation of

liabilities; reserves

To purchase, sell, discount, and negotiate, with or without its

indorsement or guaranty, notes, drafts, checks, bills of exchange,

acceptances, including bankers' acceptances, cable transfers, and

other evidences of indebtedness; to purchase and sell, with or

without its indorsement or guaranty, securities, including the

obligations of the United States or of any State thereof but not

including shares of stock in any corporation except as herein

provided; to accept bills or drafts drawn upon it subject to such

limitations and restrictions as the Board of Governors of the

Federal Reserve System may impose; to issue letters of credit; to

purchase and sell coin, bullion, and exchange; to borrow and to

lend money; to issue debentures, bonds, and promissory notes under

such general conditions as to security and such limitations as the

Board of Governors of the Federal Reserve System may prescribe; to

receive deposits outside of the United States and to receive only

such deposits within the United States as may be incidental to or

for the purpose of carrying out transactions in foreign countries

or dependencies or insular possessions of the United States; and

generally to exercise such powers as are incidental to the power

conferred by this Act or as may be usual, in the determination of

the Board of Governors of the Federal Reserve System, in connection

with the transaction of the business of banking or other financial

operations in the countries, colonies, dependencies, or possessions

in which it shall transact business and not inconsistent with the

powers specifically granted herein. Nothing contained in this

subchapter shall be construed to prohibit the Board of Governors of

the Federal Reserve System, under its power to prescribe rules and

regulations, from limiting the aggregate amount of liabilities of

any or all classes incurred by the corporation and outstanding at

any one time. Whenever a corporation organized under this

subchapter receives deposits in the United States authorized by

this subchapter, it shall carry reserves in such amounts as the

Board of Governors of the Federal Reserve System may prescribe for

member banks of the Federal Reserve System.

(b) Branches or agencies

To establish and maintain for the transaction of its business

branches or agencies in foreign countries, their dependencies or

colonies, and in the dependencies or insular possessions of the

United States, at such places as may be approved by the Board of

Governors of the Federal Reserve System and under such rules and

regulations as it may prescribe, including countries or

dependencies not specified in the original organization

certificate.

(c) Purchase of stock in other corporations

With the consent of the Board of Governors of the Federal Reserve

System to purchase and hold stock or other certificates of

ownership in any other corporation organized under the provisions

of this subchapter, or under the laws of any foreign country or a

colony or dependency thereof, or under the laws of any State,

dependency, or insular possession of the United States but not

engaged in the general business of buying or selling goods, wares,

merchandise, or commodities in the United States, and not

transacting any business in the United States except such as in the

judgment of the Board of Governors of the Federal Reserve System

may be incidental to its international or foreign business:

Provided, however, That, except with the approval of the Board of

Governors of the Federal Reserve System, no corporation organized

under this subchapter shall invest in any one corporation an amount

in excess of 10 per centum of its own capital and surplus, except

in a corporation engaged in the business of banking, when 15 per

centum of its capital and surplus may be so invested: Provided

further, That no corporation organized under this subchapter shall

purchase, own, or hold stock or certificates of ownership in any

other corporation organized under this subchapter or under the laws

of any State which is in substantial competition therewith, or

which holds stock or certificates of ownership in corporations

which are in substantial competition with the purchasing

corporation.

Nothing contained herein shall prevent corporations organized

under this subchapter from purchasing and holding stock in any

corporation where such purchase shall be necessary to prevent a

loss upon a debt previously contracted in good faith; and stock so

purchased or acquired in corporations organized under this

subchapter shall, within six months from such purchase, be sold or

disposed of at public or private sale, unless the time to so

dispose of same is extended by the Board of Governors of the

Federal Reserve System.

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 25A (pars.), formerly Sec. 25(a), as

added Dec. 24, 1919, ch. 18, 41 Stat. 378; amended Aug. 23, 1935,

ch. 614, title II, Sec. 203(a), 49 Stat. 704; Pub. L. 95-369, Sec.

3(d), (e), Sept. 17, 1978, 92 Stat. 609; renumbered Sec. 25A, Pub.

L. 102-242, title I, Sec. 142(e)(2), Dec. 19, 1991, 105 Stat.

2281.)

-REFTEXT-

REFERENCES IN TEXT

Each corporation organized as provided in sections 611 to 614 of

this title, referred to in first par., was in the original ''Each

corporation so organized''.

This act, referred to in subsec. (a), is act Dec. 23, 1913, ch.

6, 38 Stat. 251, as amended, known as the Federal Reserve Act,

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.

This subchapter, referred to in subsecs. (a) and (c), was in the

original ''this section'', meaning section 25A of act Dec. 23,

1913, which is classified to this subchapter (Sec. 611 et seq.).

Organized under this subchapter, referred to in subsec. (c), was

in the original ''organized hereunder'', meaning under section 25A

of act Dec. 23, 1913, which comprises this subchapter.

-COD-

CODIFICATION

Section is comprised of a part of section 25A, formerly section

25(a), which was added to act Dec. 23, 1913, ch. 6, by act Dec. 24,

1919.

-MISC3-

AMENDMENTS

1978 - Subsec. (a). Pub. L. 95-369, Sec. 3(d), struck out '', but

in no event having liabilities outstanding thereon at any one time

exceeding ten times its capital stock and surplus'' after ''under

such general conditions as to security and such limitations as the

Board of Governors of the Federal Reserve System may prescribe''.

Pub. L. 95-369, Sec. 3(e), substituted ''for member banks of the

Federal Reserve System'' for '', but in no event less than 10 per

centum of its deposits'' after ''it shall carry reserves in such

amounts as the Board of Governors of the Federal Reserve System may

prescribe''.

-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.

-CITE-

12 USC Sec. 616 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 6 - FOREIGN BANKING

SUBCHAPTER II - ORGANIZATION OF CORPORATIONS TO DO FOREIGN BANKING

-HEAD-

Sec. 616. Place of carrying on business; when business may be begun

-STATUTE-

No corporation organized under this subchapter shall carry on any

part of its business in the United States except such as, in the

judgment of the Board of Governors of the Federal Reserve System,

shall be incidental to its international or foreign business: And

provided further, That except such as is incidental and preliminary

to its organization, no such corporation shall exercise any of the

powers conferred by this subchapter until it has been duly

authorized by the Board of Governors of the Federal Reserve System

to commence business as a corporation organized under the

provisions of this subchapter.

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 25A (par.), formerly Sec. 25(a), as

added Dec. 24, 1919, ch. 18, 41 Stat. 378; amended Aug. 23, 1935,

ch. 614, title II, Sec. 203(a), 49 Stat. 704; renumbered Sec. 25A,

Pub. L. 102-242, title I, Sec. 142(e)(2), Dec. 19, 1991, 105 Stat.

2281.)

-REFTEXT-

REFERENCES IN TEXT

This subchapter, referred to in text, was in the original ''this

section'', meaning section 25A of act Dec. 23, 1913, which is

classified to this subchapter (Sec. 611 et seq.).

-COD-

CODIFICATION

Section is comprised of a part of section 25A, formerly section

25(a), which was added to act Dec. 23, 1913, ch. 6, by act Dec. 24,

1919.

-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.

-CITE-

12 USC Sec. 617 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 6 - FOREIGN BANKING

SUBCHAPTER II - ORGANIZATION OF CORPORATIONS TO DO FOREIGN BANKING

-HEAD-

Sec. 617. Engaging in commerce or trade in commodities; price

fixing; forfeiture of charter; acts forbidden to directors,

officers, agents, or employees

-STATUTE-

No corporation organized under this subchapter shall engage in

commerce or trade in commodities except as specifically provided in

this subchapter, nor shall it, either directly or indirectly,

control or fix or attempt to control or fix the price of any such

commodities. The charter of any corporation violating this

provision shall be subject to forfeiture in the manner provided in

this subchapter. It shall be unlawful for any director, officer,

agent, or employee of any such corporation to use or to conspire to

use the credit, the funds, or the power of the corporation to fix

or control the price of any such commodities, and any such person

violating this provision shall be liable to a fine of not less than

$1,000 and not exceeding $5,000 or imprisonment not less than one

year and not exceeding five years, or both, in the discretion of

the court.

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 25A (par.), formerly Sec. 25(a), as

added Dec. 24, 1919, ch. 18, 41 Stat. 378; renumbered Sec. 25A,

Pub. L. 102-242, title I, Sec. 142(e)(2), Dec. 19, 1991, 105 Stat.

2281.)

-REFTEXT-

REFERENCES IN TEXT

This subchapter, referred to in text, was in the original ''this

section'', meaning section 25A of act Dec. 23, 1913, which is

classified to this subchapter (Sec. 611 et seq.).

-COD-

CODIFICATION

Section is comprised of a part of section 25A, formerly section

25(a), which was added to act Dec. 23, 1913, ch. 6, by act Dec. 24,

1919.

-CITE-

12 USC Sec. 618 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 6 - FOREIGN BANKING

SUBCHAPTER II - ORGANIZATION OF CORPORATIONS TO DO FOREIGN BANKING

-HEAD-

Sec. 618. Capital stock; amount; when paid in

-STATUTE-

No corporation shall be organized under the provisions of this

subchapter with a capital stock of less than $2,000,000,

one-quarter of which must be paid in before the corporation may be

authorized to begin business, and the remainder of the capital

stock of such corporation shall be paid in installments of at least

10 per centum on the whole amount to which the corporation shall be

limited as frequently as one installment at the end of each

succeeding two months from the time of the commencement of its

business operations until the whole of the capital stock shall be

paid in: Provided, however, That whenever $2,000,000 of the capital

stock of any corporation is paid in the remainder of the

corporation's capital stock or any unpaid part of such remainder

may, with the consent of the Board of Governors of the Federal

Reserve System and subject to such regulations and conditions as it

may prescribe, be paid in upon call from the board of directors;

such unpaid subscriptions, however, to be included in the maximum

of 10 per centum of the national bank's capital and surplus which a

national bank is permitted under the provisions of this Act to hold

in stock of corporations engaged in business of the kind described

in this subchapter and subchapter I of this chapter. The capital

stock of any such corporation may be increased at any time, with

the approval of the Board of Governors of the Federal Reserve

System, by a vote of two-thirds of its shareholders or by unanimous

consent in writing of the shareholders without a meeting and

without a formal vote, but any such increase of capital shall be

fully paid in within ninety days after such approval; and may be

reduced in like manner, provided that in no event shall it be less

than $2,000,000. No corporation, except as herein provided, shall

during the time it shall continue its operations, withdraw or

permit to be withdrawn, either in the form of dividends or

otherwise, any portion of its capital. Any national bank may

invest in the stock of any corporation organized under this

subchapter. The aggregate amount of stock held by any national

bank in all corporations engaged in business of the kind described

in this subchapter or subchapter I of this chapter shall not exceed

an amount equal to 10 percent of the capital and surplus of such

bank unless the Board determines that the investment of an

additional amount by the bank would not be unsafe or unsound and,

in any case, shall not exceed an amount equal to 20 percent of the

capital and surplus of such bank.

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 25A (par.), formerly Sec. 25(a), as

added Dec. 24, 1919, ch. 18, 41 Stat. 378; amended June 14, 1921,

ch. 22, 42 Stat. 28; Aug. 23, 1935, ch. 614, title II, Sec. 203(a),

49 Stat. 704; Pub. L. 95-369, Sec. 3(d), Sept. 17, 1978, 92 Stat.

609; renumbered Sec. 25A, Pub. L. 102-242, title I, Sec. 142(e)(2),

Dec. 19, 1991, 105 Stat. 2281; Pub. L. 104-208, div. A, title II,

Sec. 2307, Sept. 30, 1996, 110 Stat. 3009-426.)

-REFTEXT-

REFERENCES IN TEXT

This subchapter, referred to in text, was in the original ''this

section'', meaning section 25A of act Dec. 23, 1913, which is

classified to this subchapter (Sec. 611 et seq.).

This Act, referred to in text, is act Dec. 23, 1913, ch. 6, 38

Stat. 251, as amended, known as the Federal Reserve Act, 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.

Subchapter I of this chapter, referred to in text, was in the

original ''section 25 of the Federal Reserve Act as amended'' and

''section 25'', which is classified to subchapter I (Sec. 601 et

seq.) of this chapter.

-COD-

CODIFICATION

Section is comprised of a part of section 25A, formerly section

25(a), which was added to act Dec. 23, 1913, ch. 6, by act Dec. 24,

1919.

-MISC3-

AMENDMENTS

1996 - Pub. L. 104-208 inserted last sentence and struck out

former last sentence which read as follows: ''Any national banking

association may invest in the stock of any corporation organized

under the provisions of said sections, but the aggregate amount of

stock held in all corporations engaged in business of the kind

described in this subchapter and subchapter I of this chapter shall

not exceed 10 per centum of the subscribing bank's capital and

surplus.''

1978 - Pub. L. 95-369 struck out proviso limiting liabilities

outstanding at any one time upon debentures, bonds and promissory

notes to not in excess of ten times its paid in capital and

surplus, after ''stock of corporations engaged in business of the

kind described in this subchapter and subchapter I of this

chapter''.

1921 - Act June 14, 1921, amended section generally, inserting

two provisos.

-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.

-CITE-

12 USC Sec. 619 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 6 - FOREIGN BANKING

SUBCHAPTER II - ORGANIZATION OF CORPORATIONS TO DO FOREIGN BANKING

-HEAD-

Sec. 619. Capital stock; by whom held; ownership of capital stock

by foreign bank

-STATUTE-

Except as otherwise provided in this subchapter, a majority of

the shares of the capital stock of any such corporation shall at

all times be held and owned by citizens of the United States, by

corporations the controlling interest in which is owned by citizens

of the United States, chartered under the laws of the United States

or of a State of the United States, or by firms or companies, the

controlling interest in which is owned by citizens of the United

States. Notwithstanding any other provisions of this subchapter,

one or more foreign banks, institutions organized under the laws of

foreign countries which own or control foreign banks, or banks

organized under the laws of the United States, the States of the

United States, or the District of Columbia, the controlling

interests in which are owned by any such foreign banks or

institutions, may, with the prior approval of the Board of

Governors of the Federal Reserve System and upon such terms and

conditions and subject to such rules and regulations as the Board

of Governors of the Federal Reserve System may prescribe, own and

hold 50 per centum or more of the shares of the capital stock of

any corporation organized under this subchapter and any such

corporation shall be subject to the same provisions of law as any

other corporation organized under this subchapter, and the terms

''controls'' and ''controlling interest'' shall be construed

consistently with the definition of ''control'' in section 2 of the

Bank Holding Company Act of 1956 (12 U.S.C. 1841). For the purposes

of the preceding sentence of this paragraph the term ''foreign

bank'' shall have the meaning assigned to it in the International

Banking Act of 1978 (12 U.S.C. 3101 et seq.). Any company, other

than a bank as defined in section 2 of the Bank Holding Company Act

of 1956, that after March 5, 1987, directly or indirectly acquires

control of a corporation organized or operating under the

provisions of this subchapter or subchapter I of this chapter shall

be subject to the provisions of the Bank Holding Company Act of

1956 (12 U.S.C. 1841 et seq.) in the same manner and to the same

extent that bank holding companies are subject thereto, except that

such company shall not by reason of this paragraph be deemed a bank

holding company for the purpose of section 3 of the Bank Holding

Company Act of 1956 (12 U.S.C. 1842).

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 25A (par.), formerly Sec. 25(a), as

added Dec. 24, 1919, ch. 18, 41 Stat. 378; amended Aug. 23, 1935,

ch. 614, title III, Sec. 329, 49 Stat. 717; Pub. L. 95-369, Sec.

3(f), Sept. 17, 1978, 92 Stat. 609; Pub. L. 100-86, title I, Sec.

102(c)(1), Aug. 10, 1987, 101 Stat. 566; renumbered Sec. 25A, Pub.

L. 102-242, title I, Sec. 142(e)(2), Dec. 19, 1991, 105 Stat.

2281.)

-REFTEXT-

REFERENCES IN TEXT

This subchapter, referred to in text, was in the original ''this

section'', meaning section 25A of act Dec. 23, 1913, which is

classified to this subchapter (Sec. 611 et seq.).

The International Banking Act of 1978, referred to in text, is

Pub. L. 95-369, Sept. 17, 1978, 92 Stat. 607, which enacted

sections 347d, 611a, and 3101 to 3111 of this title, amended

sections 72, 378, 614, 615, 618, 619, 1813, 1815, 1817, 1818, 1820,

1821, 1822, 1823, 1828, 1829b, 1831b, and 1841 of this title, and

enacted provisions set out as notes under sections 36, 247, 601,

611a, and 3101 of this title. For complete classification of this

Act to the Code, see Short Title note set out under section 3101 of

this title and Tables.

Subchapter I of this chapter, referred to in text, was in the

original ''section 25'', meaning section 25 of the Federal Reserve

Act, which is classified to subchapter I (Sec. 601 et seq.) of this

chapter.

The Bank Holding Company Act of 1956, referred to in text, is act

May 9, 1956, ch. 240, 70 Stat. 133, as amended, which is classified

principally to chapter 17 (Sec. 1841 et seq.) of this title. For

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

note set out under section 1841 of this title and Tables.

-COD-

CODIFICATION

Section is comprised of a part of section 25A, formerly section

25(a), which was added to act Dec. 23, 1913, ch. 6, by act Dec. 24,

1919.

-MISC3-

AMENDMENTS

1987 - Pub. L. 100-86 inserted provisions which related to any

company, other than bank as defined in section 2 of Bank Holding

Company Act of 1956, that after Mar. 5, 1987, directly or

indirectly acquires control of corporation organized or operating

under provisions of this subchapter or subchapter I of this chapter

to be subject to provisions of Bank Holding Company Act of 1956 in

same manner and to same extent that bank holding companies are

subject thereto, except that such company shall not by reason of

this paragraph be deemed bank holding company for purpose of

section 3 of such Act.

1978 - Pub. L. 95-369 inserted ''Except as otherwise provided in

this subchapter'' before ''a majority of the shares'', and inserted

provision relating to the ownership of 50 per centum of the shares

of capital stock by a foreign bank with prior approval of the Board

of Governors of the Federal Reserve System.

1935 - Act Aug. 23, 1935, struck out provisions relating to

application of section 19 of title 15, to directors, officers or

employees of corporations organized under sections 611-631 of this

title, and excepting certain persons who received approval of

Federal Reserve Board, from application of this section.

EXCEPTION FOR MIDLAND BANK, LONDON, ENGLAND

Section 102(c)(2) of Pub. L. 100-86 provided that: ''The

amendment made by paragraph (1) (amending this section) does not

apply to an acquisition pursuant to the application by Midland

Bank, plc, London, England, pending before the Board of Governors

of the Federal Reserve System on July 1, 1987, to acquire a

corporation organized or operating under section 25(a) (now 25A) of

the Federal Reserve Act (12 U.S.C. 611 et seq.). If Midland Bank,

plc, London, England, is not otherwise subject to section 4 of the

Bank Holding Company Act of 1956 (12 U.S.C. 1843), the financial

activities of Midland Bank, plc, London, England, in the United

States shall, upon the determination of the Board of Governors of

the Federal Reserve System made at any time, be subject to section

4 of the Bank Holding Company Act of 1956.''

-CITE-

12 USC Sec. 620 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 6 - FOREIGN BANKING

SUBCHAPTER II - ORGANIZATION OF CORPORATIONS TO DO FOREIGN BANKING

-HEAD-

Sec. 620. Members of Board of Governors of the Federal Reserve

System without interest in corporation

-STATUTE-

No member of the Board of Governors of the Federal Reserve System

shall be an officer or director of any corporation organized under

the provisions of this subchapter or of any corporation engaged in

similar business organized under the laws of any State, nor hold

stock in any such corporation, and before entering upon his duties

as a member of the Board of Governors of the Federal Reserve System

he shall certify under oath to the Secretary of the Treasury that

he has complied with this requirement.

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 25A (par.), formerly Sec. 25(a), as

added Dec. 24, 1919, ch. 18, 41 Stat. 378; amended Aug. 23, 1935,

ch. 614, title II, Sec. 203(a), 49 Stat. 704; renumbered Sec. 25A,

Pub. L. 102-242, title I, Sec. 142(e)(2), Dec. 19, 1991, 105 Stat.

2281.)

-REFTEXT-

REFERENCES IN TEXT

This subchapter, referred to in text, was in the original ''this

section'', meaning section 25A of act Dec. 23, 1913, which is

classified to this subchapter (Sec. 611 et seq.).

-COD-

CODIFICATION

Section is comprised of a part of section 25A, formerly section

25(a), which was added to act Dec. 23, 1913, ch. 6, by act Dec. 24,

1919.

-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.

-CITE-

12 USC Sec. 621 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 6 - FOREIGN BANKING

SUBCHAPTER II - ORGANIZATION OF CORPORATIONS TO DO FOREIGN BANKING

-HEAD-

Sec. 621. Liability of shareholders on unpaid subscriptions;

membership of corporation in Federal reserve bank prohibited

-STATUTE-

Shareholders in any corporation organized under the provisions of

this subchapter shall be liable for the amount of their unpaid

stock subscriptions. No such corporation shall become a member of

any Federal reserve bank.

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 25A (par.), formerly Sec. 25(a), as

added Dec. 24, 1919, ch. 18, 41 Stat. 378; renumbered Sec. 25A,

Pub. L. 102-242, title I, Sec. 142(e)(2), Dec. 19, 1991, 105 Stat.

2281.)

-REFTEXT-

REFERENCES IN TEXT

This subchapter, referred to in text, was in the original ''this

section'', meaning section 25A of act Dec. 23, 1913, which is

classified to this subchapter (Sec. 611 et seq.).

-COD-

CODIFICATION

Section is comprised of a part of section 25A, formerly section

25(a), which was added to act Dec. 23, 1913, ch. 6, by act Dec. 24,

1919.

-CITE-

12 USC Sec. 622 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 6 - FOREIGN BANKING

SUBCHAPTER II - ORGANIZATION OF CORPORATIONS TO DO FOREIGN BANKING

-HEAD-

Sec. 622. Forfeiture of rights and privileges; dissolution;

liability of directors and officers

-STATUTE-

Should any corporation organized under this subchapter violate or

fail to comply with any of the provisions of this subchapter, all

of its rights, privileges, and franchises derived herefrom may

thereby be forfeited. Before any such corporation shall be

declared dissolved, or its rights, privileges, and franchises

forfeited, any noncompliance with or violation of such laws shall,

however, be determined and adjudged by a court of the United States

of competent jurisdiction, in a suit brought for that purpose in

the district or territory in which the home office of such

corporation is located, which suit shall be brought by the United

States at the instance of the Board of Governors of the Federal

Reserve System or the Attorney General. Upon adjudication of such

noncompliance or violation, each director and officer who

participated in, or assented to, the illegal act or acts shall be

liable in his personal or individual capacity for all damages which

the said corporation shall have sustained in consequence thereof.

No dissolution shall take away or impair any remedy against the

corporation, its stockholders, or officers for any liability or

penalty previously incurred.

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 25A (par.), formerly Sec. 25(a), as

added Dec. 24, 1919, ch. 18, 41 Stat. 378; amended Aug. 23, 1935,

ch. 614, title II, Sec. 203(a), 49 Stat. 704; renumbered Sec. 25A,

Pub. L. 102-242, title I, Sec. 142(e)(2), Dec. 19, 1991, 105 Stat.

2281.)

-REFTEXT-

REFERENCES IN TEXT

Organized under this subchapter, referred to in text, was in the

original ''organized hereunder'', meaning under section 25A of act

Dec. 23, 1913, which comprises this subchapter (Sec. 611 et seq.).

This subchapter, referred to in text, was in the original ''this

section'', meaning section 25A of act Dec. 23, 1913.

-COD-

CODIFICATION

Section is comprised of a part of section 25A, formerly section

25(a), which was added to act Dec. 23, 1913, ch. 6, by act Dec. 24,

1919.

-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.

-CITE-

12 USC Sec. 623 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 6 - FOREIGN BANKING

SUBCHAPTER II - ORGANIZATION OF CORPORATIONS TO DO FOREIGN BANKING

-HEAD-

Sec. 623. Voluntary liquidation

-STATUTE-

Any corporation organized under this subchapter may go into

voluntary liquidation and be closed by a vote of its shareholders

owning two-thirds of its stock.

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 25A (par.), formerly Sec. 25(a), as

added Dec. 24, 1919, ch. 18, 41 Stat. 378; renumbered Sec. 25A,

Pub. L. 102-242, title I, Sec. 142(e)(2), Dec. 19, 1991, 105 Stat.

2281.)

-REFTEXT-

REFERENCES IN TEXT

Any corporation organized under this subchapter, referred to in

text, was in the original ''Any such corporation''.

-COD-

CODIFICATION

Section is comprised of a part of section 25A, formerly section

25(a), which was added to act Dec. 23, 1913, ch. 6, by act Dec. 24,

1919.

-CITE-

12 USC Sec. 624 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 6 - FOREIGN BANKING

SUBCHAPTER II - ORGANIZATION OF CORPORATIONS TO DO FOREIGN BANKING

-HEAD-

Sec. 624. Appointment of receiver or conservator

-STATUTE-

(A) In general. - The Board may appoint a conservator or receiver

for a corporation organized under the provisions of this subchapter

to the same extent and in the same manner as the Comptroller of the

Currency may appoint a conservator or receiver for a national bank,

and the conservator or receiver for such corporation shall exercise

the same powers, functions, and duties, subject to the same

limitations, as a conservator or receiver for a national bank.

(B) Equivalent authority. - The Board shall have the same

authority with respect to any conservator or receiver appointed for

a corporation organized under the provisions of this subchapter

under this section and any such corporation as the Comptroller of

the Currency has with respect to a conservator or receiver of a

national bank and the national bank for which a conservator or

receiver has been appointed.

(C) Title 11 petitions. - The Board may direct the conservator or

receiver of a corporation organized under the provisions of this

subchapter to file a petition pursuant to title 11, in which case,

title 11 shall apply to the corporation in lieu of otherwise

applicable Federal or State insolvency law.

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 25A(16), formerly Sec. 25(a) (par.), as

added Dec. 24, 1919, ch. 18, 41 Stat. 378; amended Aug. 23, 1935,

ch. 614, title II, Sec. 203(a), 49 Stat. 704; renumbered Sec. 25A

(par.), Pub. L. 102-242, title I, Sec. 142(e)(2), Dec. 19, 1991,

105 Stat. 2281; renumbered Sec. 25A(16), and amended Pub. L.

106-554, Sec. 1(a)(5) (title I, Sec. 112(e)), Dec. 21, 2000, 114

Stat. 2763, 2763A-396.)

-REFTEXT-

REFERENCES IN TEXT

This subchapter, referred to in text, was in the original ''this

section'', meaning section 25A of act Dec. 23, 1913, which is

classified to this subchapter (Sec. 611 et seq.).

-MISC2-

AMENDMENTS

2000 - Pub. L. 106-554 amended section catchline and text

generally. Prior to amendment, text read as follows: ''Whenever

the Board of Governors of the Federal Reserve System shall become

satisfied of the insolvency of any corporation organized under this

subchapter, it may appoint a receiver who shall take possession of

all of the property and assets of the corporation and exercise the

same rights, privileges, powers, and authority with respect thereto

as are now exercised by receivers of national banks appointed by

the Comptroller of the Currency of the United States: Provided,

however, That the assets of the corporation subject to the laws of

other countries or jurisdictions shall be dealt with in accordance

with the terms of such laws.''

-CITE-

12 USC Sec. 625 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 6 - FOREIGN BANKING

SUBCHAPTER II - ORGANIZATION OF CORPORATIONS TO DO FOREIGN BANKING

-HEAD-

Sec. 625. Stockholders' meetings; books and records; reports;

examination

-STATUTE-

Every corporation organized under the provisions of this

subchapter shall hold a meeting of its stockholders annually upon a

date fixed in its bylaws, such meeting to be held at its home

office in the United States. Every such corporation shall keep at

its home office books containing the names of all stockholders

thereof, and the names and addresses of the members of its board of

directors, together with copies of all reports made by it to the

Board of Governors of the Federal Reserve System. Every such

corporation shall make reports to the Board of Governors of the

Federal Reserve System at such times and in such form as it may

require; and shall be subject to examination once a year and at

such other times as may be deemed necessary by the Board of

Governors of the Federal Reserve System by examiners appointed by

the Board of Governors of the Federal Reserve System, the cost of

such examinations, including the compensation of the examiners, to

be fixed by the Board of Governors of the Federal Reserve System

and to be paid by the Corporation examined.

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 25A (par.), formerly Sec. 25(a), as

added Dec. 24, 1919, ch. 18, 41 Stat. 378; amended Aug. 23, 1935,

ch. 614, title II, Sec. 203(a), 49 Stat. 704; renumbered Sec. 25A,

Pub. L. 102-242, title I, Sec. 142(e)(2), Dec. 19, 1991, 105 Stat.

2281.)

-REFTEXT-

REFERENCES IN TEXT

This subchapter, referred to in text, was in the original ''this

section'', meaning section 25A of act Dec. 23, 1913, which is

classified to this subchapter (Sec. 611 et seq.).

-COD-

CODIFICATION

Section is comprised of a part of section 25A, formerly section

25(a) which was added to act Dec. 23, 1913, ch. 6, by act Dec. 24,

1919.

-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.

-CITE-

12 USC Sec. 626 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 6 - FOREIGN BANKING

SUBCHAPTER II - ORGANIZATION OF CORPORATIONS TO DO FOREIGN BANKING

-HEAD-

Sec. 626. Dividends; surplus fund

-STATUTE-

The directors of any corporation organized under the provisions

of this subchapter may, semiannually, declare a dividend of so much

of the net profits of the corporation as they shall judge

expedient; but each corporation shall, before the declaration of a

dividend, carry one-tenth of its net profits of the preceding half

year to its surplus fund until the same shall amount to 20 per

centum of its capital stock.

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 25A (par.), formerly Sec. 25(a), as

added Dec. 24, 1919, ch. 18, 41 Stat. 378; renumbered Sec. 25A,

Pub. L. 102-242, title I, Sec. 142(e)(2), Dec. 19, 1991, 105 Stat.

2281.)

-REFTEXT-

REFERENCES IN TEXT

This subchapter, referred to in text, was in the original ''this

section'', meaning section 25A of act Dec. 23, 1913, which is

classified to this subchapter (Sec. 611 et seq.).

-COD-

CODIFICATION

Section is comprised of a part of section 25A, formerly section

25(a), which was added to act Dec. 23, 1913, ch. 6, by act Dec. 24,

1919.

-CITE-

12 USC Sec. 627 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 6 - FOREIGN BANKING

SUBCHAPTER II - ORGANIZATION OF CORPORATIONS TO DO FOREIGN BANKING

-HEAD-

Sec. 627. State taxation

-STATUTE-

Any corporation organized under the provisions of this subchapter

shall be subject to tax by the State within which its home office

is located in the same manner and to the same extent as other

corporations organized under the laws of that State which are

transacting a similar character of business. The shares of stock

in such corporation shall also be subject to tax as the personal

property of the owners or holders thereof in the same manner and to

the same extent as the shares of stock in similar State

corporations.

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 25A (par.), formerly Sec. 25(a), as

added Dec. 24, 1919, ch. 18, 41 Stat. 378; renumbered Sec. 25A,

Pub. L. 102-242, title I, Sec. 142(e)(2), Dec. 19, 1991, 105 Stat.

2281.)

-REFTEXT-

REFERENCES IN TEXT

This subchapter, referred to in text, was in the original ''this

section'', meaning section 25A of act Dec. 23, 1913, which is

classified to this subchapter (Sec. 611 et seq.).

-COD-

CODIFICATION

Section is comprised of a part of section 25A, formerly section

25(a), which was added to act Dec. 23, 1913, ch. 6, by act Dec. 24,

1919.

-CITE-

12 USC Sec. 628 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 6 - FOREIGN BANKING

SUBCHAPTER II - ORGANIZATION OF CORPORATIONS TO DO FOREIGN BANKING

-HEAD-

Sec. 628. Extension of corporate existence

-STATUTE-

Any corporation organized under the provisions of this subchapter

may at any time within the two years next previous to the date of

the expiration of its corporate existence, by a vote of the

shareholders owning two-thirds of its stock, apply to the Board of

Governors of the Federal Reserve System for its approval to extend

the period of its corporate existence for a term of not more than

twenty years, and upon certified approval of the Board of Governors

of the Federal Reserve System such corporation shall have its

corporate existence for such extended period unless sooner

dissolved by the act of the shareholders owning two-thirds of its

stock, or by an Act of Congress or unless its franchise becomes

forfeited by some violation of law.

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 25A (par.), formerly Sec. 25(a), as

added Dec. 24, 1919, ch. 18, 41 Stat. 378; amended Aug. 23, 1935,

ch. 614, title II, Sec. 203(a), 49 Stat. 704; renumbered Sec. 25A,

Pub. L. 102-242, title I, Sec. 142(e)(2), Dec. 19, 1991, 105 Stat.

2281.)

-REFTEXT-

REFERENCES IN TEXT

This subchapter, referred to in text, was in the original ''this

section'', meaning section 25A of act Dec. 23, 1913, which is

classified to this subchapter (Sec. 611 et seq.).

-COD-

CODIFICATION

Section is comprised of a part of section 25A, formerly section

25(a), which was added to act Dec. 23, 1913, ch. 6, by act Dec. 24,

1919.

-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.

-CITE-

12 USC Sec. 629 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 6 - FOREIGN BANKING

SUBCHAPTER II - ORGANIZATION OF CORPORATIONS TO DO FOREIGN BANKING

-HEAD-

Sec. 629. Conversion of banking corporations into Federal

corporations; procedure

-STATUTE-

Any bank or banking institution, principally engaged in foreign

business, 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 corporation under the provisions of this

subchapter may, by the vote of the shareholders owning not less

than two-thirds of the capital stock of such bank or banking

association, with the approval of the Board of Governors of the

Federal Reserve System, be converted into a Federal corporation of

the kind authorized by this subchapter with any name approved by

the Board of Governors of the Federal Reserve System: 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 at least two-thirds of the capital

stock have authorized the directors to make such certificate and to

change or convert the bank or banking institution into a Federal

corporation. 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 Federal

corporation. The shares of any such corporation 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 corporation until

others are elected or appointed in accordance with the provisions

of this subchapter. When the Board of Governors of the Federal

Reserve System has given to such corporation a certificate that the

provisions of this subchapter have been complied with, such

corporation 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 this subchapter for corporations

originally organized thereunder.

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 25A (par.), formerly Sec. 25(a), as

added Dec. 24, 1919, ch. 18, 41 Stat. 378; amended Aug. 23, 1935,

ch. 614, title II, Sec. 203(a), 49 Stat. 704; renumbered Sec. 25A,

Pub. L. 102-242, title I, Sec. 142(e)(2), Dec. 19, 1991, 105 Stat.

2281.)

-REFTEXT-

REFERENCES IN TEXT

This subchapter, referred to in text, was in the original ''this

section'', meaning section 25A of act Dec. 23, 1913, which is

classified to this subchapter (Sec. 611 et seq.).

-COD-

CODIFICATION

Section is comprised of a part of section 25A, formerly section

25(a), which was added to act Dec. 23, 1913, ch. 6, by act Dec. 24,

1919.

-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.

-CITE-

12 USC Sec. 630 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 6 - FOREIGN BANKING

SUBCHAPTER II - ORGANIZATION OF CORPORATIONS TO DO FOREIGN BANKING

-HEAD-

Sec. 630. Offenses by officers of corporation; punishment

-STATUTE-

Every officer, director, clerk, employee, or agent of any

corporation organized under this subchapter who embezzles,

abstracts, or willfully misapplies any of the moneys, funds,

credits, securities, evidences of indebtedness or assets of any

character of such corporation; or who, without authority from the

directors, issues or puts forth any certificate of deposit, draws

any order or bill of exchange, makes any acceptance, assigns any

note, bond, debenture, draft, bill of exchange, mortgage, judgment,

or decree; or who makes any false entry in any book, report, or

statement of such corporation with intent, in either case, to

injure or defraud such corporation or any other company, body

politic or corporate, or any individual person, or to deceive any

officer of such corporation, the Board of Governors of the Federal

Reserve System, or any agent or examiner appointed to examine the

affairs of any such corporation; and every receiver of any such

corporation and every clerk or employee of such receiver who shall

embezzle, abstract, or willfully misapply or wrongfully convert to

his own use any moneys, funds, credits, or assets of any character

which may come into his possession or under his control in the

execution of his trust or the performance of the duties of his

employment; and every such receiver or clerk or employee of such

receiver who shall, with intent to injure or defraud any person,

body politic or corporate, or to deceive or mislead the Board of

Governors of the Federal Reserve System, or any agent or examiner

appointed to examine the affairs of such receiver, shall make any

false entry in any book, report, or record of any matter connected

with the duties of such receiver; and every person who with like

intent aids or abets any officer, director, clerk, employee, or

agent of any corporation organized under this subchapter, or

receiver or clerk or employee of such receiver as aforesaid in any

violation of this subchapter, shall upon conviction thereof be

imprisoned for not less than two years nor more than ten years, and

may also be fined not more than $5,000, in the discretion of the

court.

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 25A (par.), formerly Sec. 25(a), as

added Dec. 24, 1919, ch. 18, 41 Stat. 378; amended Aug. 23, 1935,

ch. 614, title II, Sec. 203(a), 49 Stat. 704; renumbered Sec. 25A,

Pub. L. 102-242, title I, Sec. 142(e)(2), Dec. 19, 1991, 105 Stat.

2281.)

-REFTEXT-

REFERENCES IN TEXT

This subchapter, referred to in text, was in the original ''this

section'', meaning section 25A of act Dec. 23, 1913, which is

classified to this subchapter (Sec. 611 et seq.).

-COD-

CODIFICATION

Section is comprised of a part of section 25A, formerly section

25(a), which was added to act Dec. 23, 1913, ch. 6, by act Dec. 24,

1919.

-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.

-CITE-

12 USC Sec. 631 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 6 - FOREIGN BANKING

SUBCHAPTER II - ORGANIZATION OF CORPORATIONS TO DO FOREIGN BANKING

-HEAD-

Sec. 631. False representations as to liability of United States

for acts of corporation; punishment

-STATUTE-

Whoever being connected in any capacity with any corporation

organized under this subchapter, represents in any way that the

United States is liable for the payment of any bond or other

obligation, or the interest thereon, issued or incurred by any

corporation organized under this subchapter, or that the United

States incurs any liability in respect of any act or omission of

the corporation, shall be punished by a fine or (FOOTNOTE 1) not

more than $10,000 and by imprisonment for not more than five years.

(FOOTNOTE 1) So in original. Probably should be ''of''.

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 25A (par.), formerly Sec. 25(a), as

added Dec. 24, 1919, ch. 18, 41 Stat. 378; renumbered Sec. 25A,

Pub. L. 102-242, title I, Sec. 142(e)(2), Dec. 19, 1991, 105 Stat.

2281.)

-REFTEXT-

REFERENCES IN TEXT

This subchapter, referred to in text, was in the original ''this

section'', meaning section 25A of act Dec. 23, 1913, which is

classified to this subchapter (Sec. 611 et seq.).

Organized under this subchapter, referred to the second time in

text, was in the original ''organized hereunder'', meaning under

section 25A of act Dec. 23, 1913.

-COD-

CODIFICATION

Section is comprised of a part of section 25A, formerly section

25(a), which was added to act Dec. 23, 1913, ch. 6, by act Dec. 24,

1919.

-CITE-

12 USC Sec. 632 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 6 - FOREIGN BANKING

SUBCHAPTER II - ORGANIZATION OF CORPORATIONS TO DO FOREIGN BANKING

-HEAD-

Sec. 632. Jurisdiction of United States courts; disposition by

banks of foreign owned property

-STATUTE-

Notwithstanding any other provision of law, all suits of a civil

nature at common law or in equity to which any corporation

organized under the laws of the United States shall be a party,

arising out of transactions involving international or foreign

banking, or banking in a dependency or insular possession of the

United States, or out of other international or foreign financial

operations, either directly or through the agency, ownership, or

control of branches or local institutions in dependencies or

insular possessions of the United States or in foreign countries,

shall be deemed to arise under the laws of the United States, and

the district courts of the United States shall have original

jurisdiction of all such suits; and any defendant in any such suit

may, at any time before the trial thereof, remove such suits from a

State court into the district court of the United States for the

proper district by following the procedure for the removal of

causes otherwise provided by law. Such removal shall not cause

undue delay in the trial of such case and a case so removed shall

have a place on the calendar of the United States court to which it

is removed relative to that which it held on the State court from

which it was removed.

Notwithstanding any other provision of law, all suits of a civil

nature at common law or in equity to which any Federal reserve bank

shall be a party shall be deemed to arise under the laws of the

United States, and the district courts of the United States shall

have original jurisdiction of all such suits; and any Federal

reserve bank which is a defendant in any such suit may, at any time

before the trial thereof, remove such suit from a State court into

the district court of the United States for the proper district by

following the procedure for the removal of causes otherwise

provided by law. No attachment or execution shall be issued

against any Federal reserve bank or its property before final

judgment in any suit, action, or proceeding in any State, county,

municipal, or United States court.

Whenever (1) any Federal Reserve bank has received any property

from or for the account of a foreign state which is recognized by

the Government of the United States, or from or for the account of

a central bank of any such foreign state, and holds such property

in the name of such foreign state or such central bank; (2) a

representative of such foreign state who is recognized by the

Secretary of State as being the accredited representative of such

foreign state to the Government of the United States has certified

to the Secretary of State the name of a person as having authority

to receive, control, or dispose of such property; and (3) the

authority of such person to act with respect to such property is

accepted and recognized by the Secretary of State, and so certified

by the Secretary of State to the Federal Reserve bank, the payment,

transfer, delivery, or other disposal of such property by such

Federal Reserve bank to or upon the order of such person shall be

conclusively presumed to be lawful and shall constitute a complete

discharge and release of any liability of the Federal Reserve bank

for or with respect to such property.

Whenever (1) any insured bank has received any property from or

for the account of a foreign state which is recognized by the

Government of the United States, or from or for the account of a

central bank of any such foreign state, and holds such property in

the name of such foreign state or such central bank; (2) a

representative of such foreign state who is recognized by the

Secretary of State as being the accredited representative of such

foreign state to the Government of the United States has certified

to the Secretary of State the name of a person as having authority

to receive, control, or dispose of such property; and (3) the

authority of such person to act with respect to such property is

accepted and recognized by the Secretary of State, and so certified

by the Secretary of State to such insured bank, the payment,

transfer, delivery, or other disposal of such property by such bank

to or upon the order of such person shall be conclusively presumed

to be lawful and shall constitute a complete discharge and release

of any liability of such bank for or with respect to such

property. Any suit or other legal proceeding against any insured

bank or any officer, director, or employee thereof, arising out of

the receipt, possession, or disposition of any such property shall

be deemed to arise under the laws of the United States and the

district courts of the United States shall have exclusive

jurisdiction thereof, regardless of the amount involved; and any

such bank or any officer, director, or employee thereof which is a

defendant in any such suit may, at any time before trial thereof,

remove such suit from a State court into the district court of the

United States for the proper district by following the procedure

for the removal of causes otherwise provided by law.

Nothing in this section shall be deemed to repeal or to modify in

any manner any of the provisions of the Gold Reserve Act of 1934,

as amended, the Silver Purchase Act of 1934, as amended, or

subdivision (b) of section 5 of the act of October 6, 1917, as

amended, or any actions, regulations, rules, orders, or

proclamations taken, promulgated, made, or issued pursuant to any

of such statutes. In any case in which a license to act with

respect to any property referred to in this section is required

under any of said statutes, regulations, rules, orders, or

proclamations, notification to the Secretary of State by the proper

Government officer or agency of the issuance of an appropriate

license or that appropriate licenses will be issued on application

shall be a prerequisite to any action by the Secretary of State

pursuant to this section, and the action of the Secretary of State

shall relate only to such property as is included in such

notification. Each such notification shall include the terms and

conditions of such license or licenses and a description of the

property to which they relate.

For the purposes of this section, (1) the term ''property''

includes gold, silver, currency, credits, deposits, securities,

choses in action, and any other form of property, the proceeds

thereof, and any right, title, or interest therein; (2) the term

''foreign state'' includes any foreign government or any

department, district, province, county, possession, or other

similar governmental organization or subdivision of a foreign

government, and any agency or instrumentality of any such foreign

government or of any such organization or subdivision; (3) the term

''central bank'' includes any foreign bank or banker authorized to

perform any one or more of the functions of a central bank; (4) the

term ''person'' includes any individual, or any corporation,

partnership, association, or other similar organization; and (5)

the term ''insured bank'' shall have the meaning given to it in

section 12B of this Act.

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 25B, formerly Sec. 25(b), as added June

16, 1933, ch. 89, Sec. 15, 48 Stat. 184; amended Apr. 7, 1941, ch.

43, Sec. 2, 55 Stat. 131; renumbered Sec. 25B, Pub. L. 102-242,

title I, Sec. 142(e)(3), Dec. 19, 1991, 105 Stat. 2281.)

-REFTEXT-

REFERENCES IN TEXT

The Gold Reserve Act of 1934, as amended, referred to in text, is

act Jan. 30, 1934, ch. 6, 48 Stat. 337, as amended, which enacted

sections 315b, 405b, 408a, 408b, 440 to 446, 754a, 754b, 822a,

822b, and 824 of former Title 31, Money and Finance, and amended

sections 314, 316, 733, 734, 752, 753, 767, 771, and 821 of former

Title 31 and sections 411, 412, 413, 414, 415, 417, and 467 of this

title. Title 31 was revised, codified, and enacted into law by

Pub. L. 97-258, Sec. 1, Sept. 13, 1982, 96 Stat. 877. For

disposition of sections of former Title 31 into revised Title 31,

see Table preceding section 101 of Title 31. For complete

classification of this Act to the Code, see Tables.

The Silver Purchase Act of 1934, as amended, referred to in text,

is act June 19, 1934, ch. 674, 48 Stat. 1178, which was classified

to sections 311a, 316a, 316b, 405a, 448 to 448e, 734a, and 734b of

former Title 31, Money and Finance, and was repealed by Pub. L.

88-36, title I, Sec. 1, June 4, 1963, 77 Stat. 54. For complete

classification of this Act to the Code, see Tables.

Subdivision (b) of section 5 of the act of October 6, 1917,

referred to in text, is classified to section 95a of this title and

section 5(b) of Title 50, Appendix, War and National Defense.

Section 12B of this Act, referred to in the text, was section 12B

of the Federal Reserve Act and was formerly classified to section

264 of this title. Section 12B was withdrawn from the Federal

Reserve Act and made a separate act to be known as the Federal

Deposit Insurance Act by section 1 of act Sept. 21, 1950, ch. 967,

64 Stat. 873. The Federal Deposit Insurance Act is classified

generally to chapter 16 (Sec. 1811 et seq.) of this title.

-COD-

CODIFICATION

Section was enacted as section 25B, formerly section 25(b), of

the Federal Reserve Act, and not as part of section 25A of that Act

which comprises this subchapter.

-MISC3-

AMENDMENTS

1941 - Act Apr. 7, 1941, added last four pars.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 358, 604a of this title.

-CITE-

12 USC Sec. 633 01/06/03

-EXPCITE-

TITLE 12 - BANKS AND BANKING

CHAPTER 6 - FOREIGN BANKING

SUBCHAPTER II - ORGANIZATION OF CORPORATIONS TO DO FOREIGN BANKING

-HEAD-

Sec. 633. Potential liability on foreign accounts

-STATUTE-

(a) Exceptions from repayment requirement

A member bank shall not be required to repay any deposit made at

a foreign branch of the bank if the branch cannot repay the deposit

due to -

(1) an act of war, insurrection, or civil strife; or

(2) an action by a foreign government or instrumentality

(whether de jure or de facto) in the country in which the branch

is located;

unless the member bank has expressly agreed in writing to repay the

deposit under those circumstances.

(b) Regulations

The Board and the Comptroller of the Currency may jointly

prescribe such regulations as they deem necessary to implement this

section.

-SOURCE-

(Dec. 23, 1913, ch. 6, Sec. 25C, as added Pub. L. 103-325, title

III, Sec. 326(a), Sept. 23, 1994, 108 Stat. 2229.)

-COD-

CODIFICATION

Section was enacted as section 25C of the Federal Reserve Act,

and not as part of section 25A of that Act which comprises this

subchapter.

-MISC3-

EXISTING CLAIMS NOT AFFECTED

Section 326(c) of Pub. L. 103-325 provided that: ''Section 25C of

the Federal Reserve Act (this section) (as added by subsection (a))

shall not be applied retroactively and shall not be construed to

affect or apply to any claim or cause of action addressed by that

section arising from events or circumstances that occurred before

the date of enactment of this Act (Sept. 23, 1994).''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1828 of this title.

-CITE-