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

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-CITE-

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.

(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.

(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 Repealed.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.

(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.

(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(h) Repealed.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.

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.

(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.

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.

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.

making; publication; penalties.

162, 163. Repealed.

164. Penalty for failure to make reports.

(a) First tier.

(b) Second 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.

(d) Exclusive authority.

(e) Replacement of conservator.

204. Examinations.

205. Termination of conservatorship.

(a) General rule.

(b) Other grounds for termination.

(d) Action upon termination.

206. Conservator; powers and duties.

(a) General powers.

(b) Subject to rules of Comptroller.

(d) Compensation of conservator and employees.

(e) Expenses.

207, 208. Repealed.

209. Liability protection.

(a) Federal agency and employees.

(b) Other conservators.

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.

(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.

(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.

215a-2. Expedited procedures for certain reorganizations.

(a) In general.

(b) Reorganization plan.

(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.

215b. Definitions.

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

(a) In general.

(b) Expedited approval of acquisitions.

(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.

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,