TITLE 12—BANKS AND BANKING, Study notes of Law

Download TITLE 12—BANKS AND BANKING and more Study notes Law in PDF only on Docsity! Page 1 TITLE 12—BANKS AND BANKING Chap. Sec. 1. The Comptroller of the Currency ... 1 2. National Banks .................................... 21 3. Federal Reserve System .................... 221 4. Taxation ................................................. 531 5. Crimes and Offenses ........................... 581 6. Foreign Banking .................................. 601 6A. Export-Import Bank of the United States .................................................. 635 7. Farm Credit Administration [Re- pealed or Omitted, See Chapter 23] ........................................................ 636 7A. Agricultural Marketing ..................... 1141 7B. Regional Agricultural Credit Cor- porations ............................................ 1148 8. Adjustment and Cancellation of Farm Loans ....................................... 1150 9. National Agricultural Credit Cor- porations [Repealed or Omitted] 1151 10. Local Agricultural-Credit Corpora- tions, Livestock-Loan Companies and Like Organizations; Loans to Individuals To Aid in Formation or To Increase Capital Stock ........ 1401 11. Federal Home Loan Banks ............... 1421 11A. Federal Home Loan Mortgage Cor- poration .............................................. 1451 12. Savings Associations .......................... 1461 13. National Housing ................................ 1701 14. Federal Credit Unions ....................... 1751 15. Federal Loan Agency [Omitted] ...... 1801 16. Federal Deposit Insurance Cor- poration .............................................. 1811 17. Bank Holding Companies ................. 1841 18. Bank Service Companies .................. 1861 19. Security Measures for Banks and Savings Associations ....................... 1881 20. Credit Control [Omitted] .................. 1901 21. Financial Recordkeeping .................. 1951 22. Tying Arrangements ........................... 1971 23. Farm Credit System ........................... 2001 24. Federal Financing Bank .................... 2281 25. National Commission on Electronic Fund Transfers ................................. 2401 26. Disposition of Abandoned Money Orders and Traveler’s Checks ...... 2501 27. Real Estate Settlement Procedures 2601 28. Emergency Mortgage Relief ............. 2701 29. Home Mortgage Disclosure .............. 2801 30. Community Reinvestment ................ 2901 31. National Consumer Cooperative Bank .................................................... 3001 32. Foreign Bank Participation in Do- mestic Markets ................................. 3101 33. Depository Institution Manage- ment Interlocks ................................ 3201 34. Federal Financial Institutions Ex- amination Council ........................... 3301 Chap. Sec. 34A. Appraisal Subcommittee of Federal Financial Institutions Examina- tion Council ...................................... 3331 35. Right to Financial Privacy ............... 3401 36. Depository Institutions Deregula- tion and Financial Regulation Simplification [Omitted or Re- pealed] ................................................ 3501 37. Solar Energy and Energy Con- servation Bank [Repealed] ............ 3601 38. Multifamily Mortgage Foreclosure 3701 38A. Single Family Mortgage Fore- closure ................................................ 3751 39. Alternative Mortgage Transactions 3801 40. International Lending Supervision 3901 41. Expedited Funds Availability .......... 4001 42. Low-Income Housing Preservation and Resident Homeownership ..... 4101 43. Actions Against Persons Commit- ting Bank Fraud Crimes ................ 4201 44. Truth in Savings .................................. 4301 45. Payment System Risk Reduction .... 4401 46. Government Sponsored Enter- prises .................................................. 4501 47. Community Development Banking 4701 48. Financial Institutions Regulatory Improvement .................................... 4801 49. Homeowners Protection .................... 4901 50. Check Truncation ............................... 5001 51. Secure and Fair Enforcement for Mortgage Licensing ........................ 5101 52. Emergency Economic Stabilization 5201 53. Wall Street Reform and Consumer Protection .......................................... 5301 54. State Small Business Credit Initia- tive ....................................................... 5701 CHAPTER 1—THE COMPTROLLER OF THE CURRENCY Sec. 1. Office of the Comptroller of the Currency. 2. Comptroller of the Currency; appointment; term. 3. Oath of Comptroller. 4. Deputy Comptrollers. 4a. Delegation of authority by Comptroller. 4b. Deputy Comptroller for the supervision and examination of Federal savings associa- tions. 5, 6. Repealed. 7. Chief of examining division. 8. Clerks. 9. Additional examiners, clerks, and other em- ployees. 9a. Repealed. 10. Salaries of Deputy Comptrollers, examiners, and other employees as part of bank exam- ination expenses. 11. Interest in national banks. Page 2 TITLE 12—BANKS AND BANKING § 1 Sec. 12. Seal of Comptroller. 13. Rooms for Currency Bureau. 14. Report of Comptroller. 15. Repealed. 16. Funding of Office. § 1. Office of the Comptroller of the Currency (a) Office of the Comptroller of the Currency es- tablished There is established in the Department of the Treasury a bureau to be known as the ‘‘Office of the Comptroller of the Currency’’ which is charged with assuring the safety and soundness of, and compliance with laws and regulations, fair access to financial services, and fair treat- ment of customers by, the institutions and other persons subject to its jurisdiction. (b) Comptroller of the Currency (1) In general The chief officer of the Office of the Comp- troller of the Currency shall be known as the Comptroller of the Currency. The Comptroller of the Currency shall perform the duties of the Comptroller of the Currency under the general direction of the Secretary of the Treasury. The Secretary of the Treasury may not delay or prevent the issuance of any rule or the pro- mulgation of any regulation by the Comptrol- ler of the Currency, and may not intervene in any matter or proceeding before the Comptrol- ler of the Currency (including agency enforce- ment actions), unless otherwise specifically provided by law. (2) Additional authority The Comptroller of the Currency shall have the same authority with respect to functions transferred to the Comptroller of the Currency under the Enhancing Financial Institution Safety and Soundness Act of 2010 as was vested in the Director of the Office of Thrift Super- vision on the transfer date, as defined in sec- tion 311 of that Act [12 U.S.C. 5411]. (R.S. § 324; Dec. 23, 1913, ch. 6, § 10 (par.), 38 Stat. 261; June 3, 1922, ch. 205, 42 Stat. 621; Aug. 23, 1935, ch. 614, title II, § 203(a), 49 Stat. 704; Pub. L. 89–427, § 1, May 20, 1966, 80 Stat. 161; Pub. L. 103–325, title III, § 331(b)(2), Sept. 23, 1994, 108 Stat. 2232; Pub. L. 111–203, title III, § 314(a), July 21, 2010, 124 Stat. 1523.) REFERENCES IN TEXT The Enhancing Financial Institution Safety and Soundness Act of 2010, referred to in subsec. (b)(2), is Pub. L. 111–203, title III, July 21, 2010, 124 Stat. 1520. For complete classification of this Act to the Code, see Short Title note set out under section 5301 of this title and Tables. CODIFICATION R.S. § 324 derived from act June 3, 1864, ch. 106, § 1, 13 Stat. 99, which was the National Bank Act. See section 38 of this title. Section is comprised of R.S. § 324, as amended by the eighth paragraph of act Dec. 23, 1913, § 10. AMENDMENTS 2010—Pub. L. 111–203 amended section generally. Prior to amendment, section read as follows: ‘‘There shall be in the Department of the Treasury a bureau charged with the execution of all laws passed by Congress relat- ing to the issue and regulation of national currency se- cured by United States bonds and, under the general supervision of the Board of Governors of the Federal Reserve System, of all Federal Reserve notes, except for the cancellation and destruction, and accounting with respect to such cancellation and destruction, of Federal Reserve notes unfit for circulation, the chief officer of which bureau shall be called the Comptroller of the Currency and shall perform his duties under the general directions of the Secretary of the Treasury. The Comptroller of the Currency shall have the same authority over matters within the jurisdiction of the Comptroller as the Director of the Office of Thrift Su- pervision has over matters within the Director’s juris- diction under section 1462a(b)(3) of this title. The Sec- retary of the Treasury may not delay or prevent the is- suance of any rule or the promulgation of any regula- tion by the Comptroller of the Currency.’’ 1994—Pub. L. 103–325 inserted at end ‘‘The Comptrol- ler of the Currency shall have the same authority over matters within the jurisdiction of the Comptroller as the Director of the Office of Thrift Supervision has over matters within the Director’s jurisdiction under sec- tion 1462a(b)(3) of this title. The Secretary of the Treas- ury may not delay or prevent the issuance of any rule or the promulgation of any regulation by the Comptrol- ler of the Currency.’’ 1966—Pub. L. 89–427 inserted exception relating to cancellation and destruction, and accounting with re- spect to the cancellation and destruction, of Federal Reserve notes unfit for circulation. EFFECTIVE DATE OF 2010 AMENDMENT Pub. L. 111–203, title III, § 314(d), July 21, 2010, 124 Stat. 1524, provided that: ‘‘This section [enacting sec- tion 4b of this title and amending this section and sec- tion 11 of this title], and the amendments made by this section, shall take effect on the transfer date.’’ [For definition of ‘‘transfer date’’ as used in section 314(d) of Pub. L. 111–203, set out above, see section 5301 of this title.] EXCEPTION AS TO TRANSFER OF FUNCTIONS Functions vested by any provision of law in Comp- troller of the Currency, referred to in this section, were not included in transfer of functions of officers, agen- cies, and employees of Department of the Treasury to Secretary of the Treasury, made by Reorg. Plan No. 26 of 1950, § 1, eff. July 31, 1950, 15 F.R. 4935, 64 Stat. 1280. See section 321(c)(2) of Title 31, Money and Finance. § 2. Comptroller of the Currency; appointment; term The Comptroller of the Currency shall be ap- pointed by the President, by and with the advice and consent of the Senate, and shall hold his of- fice for a term of five years unless sooner re- moved by the President, upon reasons to be communicated by him to the Senate. (R.S. § 325; Aug. 23, 1935, ch. 614, title II, § 209, 49 Stat. 707.) CODIFICATION R.S. § 325 derived from act June 3, 1864, ch. 106, § 1, 13 Stat. 99, which was the National Bank Act. See section 38 of this title. Provisions of this section which prescribed the an- nual basic compensation of the Comptroller of the Cur- rency were omitted to conform to the provisions of the Executive Schedule. See section 5314 of Title 5, Govern- ment Organization and Employees. AMENDMENTS 1935—Act Aug. 23, 1935, struck out ‘‘on the recom- mendation of the Secretary of the Treasury’’ after ‘‘President’’, where first appearing, and changed the salary from ‘‘$5,000 a year’’ to ‘‘$15,000 a year’’. Page 5 TITLE 12—BANKS AND BANKING § 16 1 See References in Text note below. fireproof vaults, in which the Comptroller shall deposit and safely keep all the plates not nec- essarily in the possession of engravers or print- ers, and other valuable things belonging to his department; and the Comptroller shall from time to time furnish the necessary furniture, stationery, fuel, lights, and other proper conven- iences for the transaction of the business of his office. (R.S. § 331.) REFERENCES IN TEXT The bureau referred to in text is known as the Office of the Comptroller of the Currency. CODIFICATION R.S. § 331 derived from act June 3, 1864, ch. 106, § 3, 13 Stat. 100, which was the National Bank Act. See sec- tion 38 of this title. EXCEPTION AS TO TRANSFER OF FUNCTIONS Functions vested by any provision of law in Comp- troller 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. § 14. Report of Comptroller The Comptroller of the Currency shall make an annual report to Congress. The report re- quired under this section shall include the re- port required under section 57a(f)(7) 1 of title 15. (R.S. § 333; Feb. 18, 1875, ch. 80, § 1, 18 Stat. 317; Aug. 7, 1946, ch. 770, § 1(39), 60 Stat. 869; Pub. L. 106–569, title XI, § 1103(c), Dec. 27, 2000, 114 Stat. 3031.) REFERENCES IN TEXT Section 57a(f)(7) of title 15, referred to in text, was re- pealed by Pub. L. 111–203, title X, § 1092(3), July 21, 2010, 124 Stat. 2095. CODIFICATION R.S. § 333 derived from acts June 3, 1864, ch. 106, § 61, 13 Stat. 117, and Feb. 19, 1873, ch. 166, 17 Stat. 466. Act June 3, 1864, was the National Bank Act. See section 38 of this title. AMENDMENTS 2000—Pub. L. 106–569 inserted at end ‘‘The report re- quired under this section shall include the report re- quired under section 57a(f)(7) of title 15.’’ 1946—Act Aug. 7, 1946, repealed in the opening clause, the requirement that the report to Congress shall be submitted at the commencement of its session, and re- pealed all provisions prescribing contents of the exhib- its in the report. EXCEPTION AS TO TRANSFER OF FUNCTIONS Functions vested by any provision of law in Comp- troller 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. § 15. Repealed. Aug. 7, 1946, ch. 770, § 1(40, 50), 60 Stat. 869, 870 Section, act Apr. 28, 1902, ch. 594, § 1, 32 Stat. 138, re- quired inclusion of expenses of liquidation of national banks in annual report of Comptroller of the Currency. § 16. Funding of Office The Comptroller of the Currency may collect an assessment, fee, or other charge from any en- tity described in section 1813(q)(1) of this title, as the Comptroller determines is necessary or appropriate to carry out the responsibilities of the Office of the Comptroller of the Currency. In establishing the amount of an assessment, fee, or charge collected from an entity under this section, the Comptroller of the Currency may take into account the nature and scope of the activities of the entity, the amount and type of assets that the entity holds, the financial and managerial condition of the entity, and any other factor, as the Comptroller of the Currency determines is appropriate. Funds derived from any assessment, fee, or charge collected or pay- ment made pursuant to this section may be de- posited by the Comptroller of the Currency in accordance with the provisions of section 192 of this title. Such funds shall not be construed to be Government funds or appropriated monies, and shall not be subject to apportionment for purposes of chapter 15 of title 31 or any other provision of law. The authority of the Comptrol- ler of the Currency under this section shall be in addition to the authority under subchapter XV of chapter 3. The Comptroller of the Currency shall have sole authority to determine the manner in which the obligations of the Office of the Comp- troller of the Currency shall be incurred and its disbursements and expenses allowed and paid, in accordance with this section, except as provided in chapter 71 of title 5 (with respect to com- pensation). (R.S. § 5240A, as added Pub. L. 111–203, title III, § 318(b), July 21, 2010, 124 Stat. 1526.) REFERENCES IN TEXT Subchapter XV of chapter 3, referred to in first par., was in the original a reference to section 5240 of the Re- vised Statutes. EFFECTIVE DATE Pub. L. 111–203, title III, § 318(e), July 21, 2010, 124 Stat. 1527, provided that: ‘‘This section [enacting this section and amending sections 248, 481, 482, and 1820 of this title], and the amendments made by this section, shall take effect on the transfer date.’’ [For definition of ‘‘transfer date’’ as used in section 318(e) of Pub. L. 111–203, set out above, see section 5301 of this title.] CHAPTER 2—NATIONAL BANKS 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. 25. Omitted. 25a. Participation by national banks in lotteries and related activities. 25b. State law preemption standards for national banks and subsidiaries clarified. 26. Comptroller to determine if association can commence business. 27. Certificate of authority to commence bank- ing. 28. Repealed. 29. Power to hold real property. Page 6 TITLE 12—BANKS AND BANKING § 16 Sec. 30. Change of name or location. 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. 37. Associations governed by chapter. 38. The National Bank Act. 39. Reservation of rights of associations orga- nized 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 cer- tain State laws. 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 determin- ing impairment of capital; dividends; retire- ment. 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; receiver- ship. 56. Prohibition on withdrawal of capital; un- earned dividends. 57. Increase of capital by provision in articles of association. 58. Repealed. 59. Reduction of capital. 60. National bank dividends. 61. Shareholders’ voting rights; cumulative and distributive voting; preferred stock; trust shares; proxies, liability restrictions; per- centage requirement exclusion of trust shares. 62. List of shareholders. 63, 64. Repealed. 64a. Individual liability of shareholders; limita- tion on liability. 65. Repealed. 66. Personal liability of representatives of stock- holders. 67. Individual liability of shareholders; com- promises; 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; proceed- ings where no election held on proper day. 76. President of bank as member of board; chair- man 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. Sec. 84. Lending limits. 85. Rate of interest on loans, discounts and pur- chases. 86. Usurious interest; penalty for taking; limita- tions. 86a to 89. Omitted or Repealed. 90. Depositaries of public moneys and financial agents of Government. 91. Transfers by bank and other acts in con- templation of insolvency. 92. Acting as insurance agent or broker. 92a. Trust powers. 93. Violation of provisions of chapter. 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 sys- tem; designation of legal holiday for na- tional banking associations; exceptions; ‘‘State’’ defined. 95a. Regulation of transactions in foreign ex- change of gold and silver; property trans- fers; vested interests, enforcement and pen- alties. 95b. Ratification of acts of President and Sec- retary 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. Omitted. 142. Banks in reserve cities; reserves. 143. Banks in Alaska and insular possessions; law- ful 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. 162, 163. Repealed. 164. Penalty for failure to make reports. 165. Omitted. SUBCHAPTER XI—MISCELLANEOUS PROVISIONS REGARDING UNITED STATES BONDS IN RELA- TION 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 re- moval of liquidating agent or committee; examination. 182. Notice of intent to dissolve. 183 to 186. Repealed. SUBCHAPTER XIII—RECEIVERSHIP 191. Appointment of receiver for a national bank. Page 7 TITLE 12—BANKS AND BANKING § 22 Sec. 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 receiv- ership; 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; re- quest to Comptroller. 199. Approval of request. 200. Payment. SUBCHAPTER XIV—BANK CONSERVATION ACT 201. Short title. 202. Definitions. 203. Appointment of conservator. 204. Examinations. 205. Termination of conservatorship. 206. Conservator; powers and duties. 207, 208. Repealed. 209. Liability protection. 210. Governmental powers unimpaired. 211. Rules and regulations. 212. Right to amend; separability. 213. Transferred. SUBCHAPTER XV—CONVERSION OF NATIONAL BANKS INTO STATE BANKS 214. Definitions. 214a. Procedure for conversion, merger, or consoli- dation; vote of stockholders. 214b. Continuation of business and corporate en- tity. 214c. Conversions in contravention of State law. 214d. Prohibition on conversion. SUBCHAPTER XVI—CONSOLIDATION AND MERGER 215. Consolidation of banks within same State. 215a. Merger of national banks or State banks into national banks. 215a–1. Interstate consolidations and mergers. 215a–2. Expedited procedures for certain reorganiza- tions. 215a–3. Mergers and consolidations with subsidiaries and nonbank affiliates. 215b. Definitions. 215c. Mergers, consolidations, and other acquisi- tions authorized. SUBCHAPTER XVII—DISPOSITION OF UNCLAIMED PROPERTY RECOVERED FROM CLOSED NA- TIONAL BANKS 216. Purpose. 216a. Definitions. 216b. Disposition of unclaimed property. 216c. Rules and regulations. 216d. Severability. SUBCHAPTER I—ORGANIZATION AND GENERAL PROVISIONS § 21. Formation of national banking associations; incorporators; articles of association Associations for carrying on the business of banking under title 62 of the Revised Statutes may be formed by any number of natural per- sons, 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 Comp- troller of the Currency, to be filed and preserved in his office. (R.S. § 5133.) 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. §§ 5133 to 5244, which are classified to this section and sections 16, 22 to 24a, 25a, 25b, 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. §§ 5133 to 5244 to the Code, see Tables. CODIFICATION R.S. § 5133 derived from act June 3, 1864, ch. 106, § 5, 13 Stat. 100, which was the National Bank Act. See sec- tion 38 of this title. EXCEPTION AS TO TRANSFER OF FUNCTIONS Functions vested by any provision of law in Comp- troller 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. § 21a. Amendment of articles of association Except as otherwise specifically provided by law, or by the articles of association of the par- ticular national banking association, the arti- cles of association of a national banking asso- ciation may be amended with respect to any lawful matter, and any action requiring the ap- proval 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 no- tice of such meeting. A certified copy of every amendment to the articles of association adopt- ed by the shareholders of a national banking as- sociation shall be forwarded to the Comptroller of the Currency, to be filed and preserved in his office. (Pub. L. 86–230, § 13, Sept. 8, 1959, 73 Stat. 458.) § 22. Organization certificate The persons uniting to form such an associa- tion shall, under their hands, make an organiza- tion 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 dis- count and deposit are to be carried on, designat- ing 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. Page 10 TITLE 12—BANKS AND BANKING § 24 3 So in original. The period probably should be preceded by an additional closing parenthesis. 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 is- sued by any State housing corporation incor- porated 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 unim- paired surplus fund. Notwithstanding any other provision in this paragraph, the association may purchase for its own account shares of stock is- sued by a corporation organized solely for the purpose of making loans to farmers and ranch- ers 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 agri- cultural credit corporation the amount invested by the association at any one time in the stock of such corporation shall not exceed 20 per cen- tum of the unimpaired capital and surplus of the association: Provided further, That notwith- standing any other provision of this paragraph, the association may purchase for its own ac- count 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 ex- tent directors’ qualifying shares are required by law) by depository institutions or depository in- stitution holding companies (as defined in sec- tion 1813 of this title) and such bank or company and all subsidiaries thereof are engaged exclu- sively in providing services to or for other de- pository institutions, their holding companies, and the officers, directors, and employees of such institutions and companies, and in provid- ing correspondent banking services at the re- quest of other depository institutions or their holding companies (also referred to as a ‘‘bank- er’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 restric- tions contained in this paragraph as to an asso- ciation purchasing for its own account invest- ment 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 Ex- change Act of 1934 (15 U.S.C. 78c(a)(41)).3 The ex- ception 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 aggre- gate sales prices, or both. A national banking association may deal in, underwrite, and purchase for such association’s own account qualified Canadian government ob- ligations to the same extent that such associa- tion 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 Prov- ince to a degree which is comparable to the li- ability 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 politi- cal 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 subdivi- sion; and (B) Canada, such Province, or such politi- cal subdivision on whose behalf such agent is acting with respect to such obligation is ul- timately 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 secu- rities, the limitations and restrictions contained in this paragraph as to dealing in, underwriting, and purchasing investment securities for the na- tional bank’s own account shall not apply to ob- ligations (including limited obligation bonds, revenue bonds, and obligations that satisfy the requirements of section 142(b)(1) of title 26) is- sued 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 na- tional bank is well capitalized (as defined in sec- tion 1831o of this title). Eighth. To contribute to community funds, or to charitable, philanthropic, or benevolent in- strumentalities 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 institu- tions from contributing to such funds or instru- mentalities. Ninth. To issue and sell securities which are guaranteed pursuant to section 1721(g) of this title. Tenth. To invest in tangible personal prop- erty, including, without limitation, vehicles, Page 11 TITLE 12—BANKS AND BANKING § 24 manufactured homes, machinery, equipment, or furniture, for lease financing transactions on a net lease basis, but such investment may not ex- ceed 10 percent of the assets of the association. Eleventh. To make investments directly or in- directly, each of which is designed primarily to promote the public welfare, including the wel- fare of low- and moderate-income communities or families (such as by providing housing, serv- ices, or jobs). 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 asso- ciation’s investments in any 1 project and an as- sociation’s aggregate investments under this paragraph. An association’s aggregate invest- ments under this paragraph shall not exceed an amount equal to the sum of 5 percent of the as- sociation’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 ade- quately capitalized. In no case shall an associa- tion’s aggregate investments under this para- graph exceed an amount equal to the sum of 15 percent of the association’s capital stock actu- ally paid in and unimpaired and 15 percent of the association’s unimpaired surplus fund. The foregoing standards and limitations apply to in- vestments under this paragraph made by a na- tional bank directly and by its subsidiaries. (R.S. § 5136; July 1, 1922, ch. 257, § 1, 42 Stat. 767; Feb. 25, 1927, ch. 191, § 2, 44 Stat. 1226; June 16, 1933, ch. 89, § 16, 48 Stat. 184; Aug. 23, 1935, ch. 614, title III, § 308, 49 Stat. 709; Feb. 3, 1938, ch. 13, § 13, 52 Stat. 26; June 11, 1940, ch. 301, 54 Stat. 261; June 29, 1949, ch. 276, § 1, 63 Stat. 298; July 15, 1949, ch. 338, title VI, § 602(a), 63 Stat. 439; Apr. 9, 1952, ch. 169, 66 Stat. 49; Aug. 2, 1954, ch. 649, title II, § 203, 68 Stat. 622; Aug. 23, 1954, ch. 834, § 2, 68 Stat. 771; July 26, 1956, ch. 741, title II, § 201(c), 70 Stat. 667; Pub. L. 86–137, § 2, Aug. 6, 1959, 73 Stat. 285; Pub. L. 86–147, § 10, Aug. 7, 1959, 73 Stat. 301; Pub. L. 86–230, § 1(a), Sept. 8, 1959, 73 Stat. 457; Pub. L. 86–278, Sept. 16, 1959, 73 Stat. 563; Pub. L. 86–372, title IV, § 420, Sept. 23, 1959, 73 Stat. 679; Pub. L. 88–560, title VII, § 701(c), Sept. 2, 1964, 78 Stat. 800; Pub. L. 89–369, § 10, Mar. 16, 1966, 80 Stat. 72; Pub. L. 89–754, title V, § 504(a)(1), Nov. 3, 1966, 80 Stat. 1277; Pub. L. 90–19, § 27(a), May 25, 1967, 81 Stat. 28; Pub. L. 90–448, title VIII, §§ 804(c), 807(j), title IX, § 911, title XVII, § 1705(h), Aug. 1, 1968, 82 Stat. 543, 545, 550, 605; Pub. L. 91–375, § 6(d), Aug. 12, 1970, 84 Stat. 776; Pub. L. 92–318, title I, § 133(c)(1), June 23, 1972, 86 Stat. 269; Pub. L. 91–143, § 12(b), Dec. 9, 1969, as added Pub. L. 92–349, title I, § 101, July 13, 1972, 86 Stat. 466; Pub. L. 92–500, § 12(n), Oct. 18, 1972, 86 Stat. 902; Pub. L. 93–100, § 5(c), Aug. 16, 1973, 87 Stat. 344; Pub. L. 93–224, § 14, Dec. 29, 1973, 87 Stat. 941; Pub. L. 93–234, title II, § 207, Dec. 31, 1973, 87 Stat. 984; Pub. L. 93–383, title II, § 206, title VIII, § 805(c)(1), Aug. 22, 1974, 88 Stat. 668, 726; Pub. L. 96–221, title VII, § 711, Mar. 31, 1980, 94 Stat. 189; Pub. L. 97–35, title XIII, § 1342(a), Aug. 13, 1981, 95 Stat. 743; Pub. L. 97–320, title IV, § 404(b), Oct. 15, 1982, 96 Stat. 1511; Pub. L. 97–457, § 18, Jan. 12, 1983, 96 Stat. 2509; Pub. L. 98–440, title I, § 105(c), Oct. 3, 1984, 98 Stat. 1691; Pub. L. 98–473, title I, § 101(1) [title I, § 101], Oct. 12, 1984, 98 Stat. 1884, 1885; Pub. L. 100–86, title I, § 108, Aug. 10, 1987, 101 Stat. 579; Pub. L. 100–449, title III, § 308, Sept. 28, 1988, 102 Stat. 1877; Pub. L. 101–513, title V, § 562(c)(10)(B), (e)(1)(B), Nov. 5, 1990, 104 Stat. 2036, 2037; Pub. L. 102–485, § 6(a), Oct. 23, 1992, 106 Stat. 2774; Pub. L. 103–182, title V, § 541(h)(1), Dec. 8, 1993, 107 Stat. 2167; Pub. L. 103–325, title II, § 206(c), title III, §§ 322(a)(1), 347(b), Sept. 23, 1994, 108 Stat. 2199, 2226, 2241; Pub. L. 104–208, div. A, title I, § 101(c) [title VII, § 710(b)], title II, § 2704(d)(7), Sept. 30, 1996, 110 Stat. 3009–121, 3009–181, 3009–489; Pub. L. 106–102, title I, § 151, Nov. 12, 1999, 113 Stat. 1384; Pub. L. 109–171, title II, § 2102(b), Feb. 8, 2006, 120 Stat. 9; Pub. L. 109–173, § 9(a), Feb. 15, 2006, 119 Stat. 3616; Pub. L. 109–351, title III, § 305(a), Oct. 13, 2006, 120 Stat. 1970; Pub. L. 110–289, div. B, title V, § 2503(a), July 30, 2008, 122 Stat. 2857.) 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. §§ 5133 to 5244, which are classified to this section and sections 16, 21, 22, 23, 24a, 25a, 25b, 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. §§ 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. Sev- enth, 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, § 5.26(a), Dec. 10, 1971, 85 Stat. 624. See chapter 23 (§ 2001 et seq.) of this title. The National Housing Act, referred to in par. Sev- enth, 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, § 502(a), 80 Stat. 1274, which is classified generally to subchapter IX–B (§ 1749aaa et seq.) of chapter 13 of this title. For complete classifica- tion 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 gen- erally by Pub. L. 93–383, title II, Aug. 22, 1974, 88 Stat. 653, and is classified to chapter 8 (§ 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, re- ferred 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 (§ 3931 et seq.) of Title 42. For complete clas- sification of this Act to the Code, see Short Title of 1968 Amendment note set out under section 1701 of this title and Tables. CODIFICATION Amendment by Pub. L. 98–473 is based on section 211(a) of title II of S. 2416, as introduced in the Senate Page 12 TITLE 12—BANKS AND BANKING § 24 on Mar. 13, 1984, which was enacted into permanent law by section 101(1) of Pub. L. 98–473. R.S. § 5136 derived from act June 3, 1864, ch. 106, § 8, 13 Stat. 101, which was the National Bank Act. See sec- tion 38 of this title. AMENDMENTS 2008—Par. Eleventh. Pub. L. 110–289, which directed substitution of ‘‘is designed primarily to promote the public welfare, including the welfare of’’ for ‘‘promotes the public welfare by benefitting primarily’’ in first sentence, was executed by making the substitution for ‘‘promotes the public welfare by benefiting primarily’’ to reflect the probable intent of Congress. 2006—Par. Eleventh. Pub. L. 109–351 amended par. gen- erally. Prior to amendment, par. read as follows: ‘‘Elev- enth. To make investments designed primarily to pro- mote 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 di- rectly 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 associa- tion’s investments in any 1 project and an association’s aggregate investments under this paragraph. An asso- ciation’s aggregate investments under this paragraph shall not exceed an amount equal to the sum of 5 per- cent of the association’s capital stock actually paid in and unimpaired and 5 percent of the association’s un- impaired surplus fund, unless the Comptroller deter- mines by order that the higher amount will pose no sig- nificant risk to the Deposit Insurance Fund, and the as- sociation is adequately capitalized. In no case shall an association’s aggregate investments under this para- graph 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 unim- paired surplus fund.’’ Pub. L. 109–173, in fifth sentence, substituted ‘‘De- posit Insurance Fund’’ for ‘‘affected deposit insurance fund’’. Pub. L. 109–171 repealed Pub. L. 104–208, § 2704(d)(7). See 1996 Amendment note below. 1999—Par. Seventh. Pub. L. 106–102 inserted at end ‘‘In addition to the provisions in this paragraph for dealing in, underwriting, or purchasing securities, the limita- tions 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 instrumen- tality of 1 or more States, or any public agency or au- thority of any State or political subdivision of a State, if the national bank is well capitalized (as defined in section 1831o of this title).’’ 1996—Par. Seventh. Pub. L. 104–208, § 101(c) [§ 710(b)], in seventh sentence, inserted ‘‘Bank for Economic Co- operation and Development in the Middle East and North Africa,’’ after ‘‘the Inter-American Development Bank’’. Par. Eleventh. Pub. L. 104—208, § 2704(d)(7), which di- rected the amendment of the fifth sentence by sub- stituting ‘‘Deposit Insurance Fund’’ for ‘‘affected de- posit insurance fund’’, was repealed by Pub. L. 109–171. See Effective Date of 1996 Amendment note below and 2006 Amendment note above. 1994—Par. Seventh. Pub. L. 103–325, § 347(b), in last sentence of first par., substituted ‘‘(15 U.S.C. 78c(a)(41)). The exception provided for the securities described in subparagraphs (A), (B), and (C) shall be subject to such regulations’’ for ‘‘(15 U.S.C. 78c(a)(41))), subject to such regulations’’. Pub. L. 103–325, § 322(a)(1)(A), in fifth proviso inserted ‘‘or depository institution holding companies (as de- fined in section 1813 of this title)’’ after ‘‘(except to the extent directors’ qualifying shares are required by law) by depository institutions’’. Pub. L. 103–325, § 322(a)(1)(B), which directed substi- tution in fifth proviso of ‘‘services to or for other de- pository 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 ‘bank- er’s bank’)’’ for ‘‘services for other depository institu- tions and their officers, directors and employees’’, was executed by making the substitution for ‘‘services for other depository institutions and their officers, direc- tors, and employees’’ to reflect the probable intent of Congress. Pub. L. 103–325, § 206(c), substituted ‘‘(B) are small business related securities (as defined in section 3(a)(53) of the Securities Exchange Act of 1934); or (C) are mort- gage related securities’’ for ‘‘or (B) are mortgage relat- ed securities’’. 1993—Par. Seventh. Pub. L. 103–182 inserted ‘‘the North American Development Bank,’’ after ‘‘Inter- American Development Bank,’’. 1992—Par. Eleventh. Pub. L. 102–485 added par. Elev- enth. 1990—Par. Seventh. Pub. L. 101–513 inserted ‘‘the Eu- ropean Bank for Reconstruction and Development,’’ be- fore ‘‘the Inter-American Development Bank,’’ and sub- stituted ‘‘the African Development Bank, the Inter- American Investment Corporation, or the International Finance Corporation,’’ for ‘‘the African Development Bank or the Inter-American Investment Corporation,’’. 1988—Par. Seventh. Pub. L. 100–449 inserted provisions authorizing national banking associations to deal in, underwrite, and purchase Canadian government obliga- tions for the association’s own account. 1987—Par. Tenth. Pub. L. 100–86 added par. Tenth. 1984—Par. Seventh. Pub. L. 98–473 inserted reference to the Inter-American Investment Corporation. Pub. L. 98–440 inserted provision that the limitations and restrictions contained in this paragraph as to an association purchasing investment securities for its own account shall not apply to securities offered and sold pursuant to section 15 U.S.C. 77d(5), or that are mortgage related securities (as defined in 15 U.S.C. 78c(a)(41)), subject to such regulations as the Comptrol- ler of the Currency may prescribe. 1983—Par. Seventh. Pub. L. 97–457 substituted ‘‘10 per centum of the association’s’’ for ‘‘10 per centum of its’’ after ‘‘exceed at any time’’. 1982—Par. Seventh. Pub. L. 97–320 substituted ‘‘Pro- vided 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 exclu- sively (except to the extent directors’ qualifying shares are required by law) by depository institutions and such bank or company and all subsidiaries thereof are engaged exclusively in providing services for other de- pository institutions and their officers, directors, and employees, but in no event shall the total amount of such stock held by the association in any bank or hold- ing company exceed at any time 10 per centum of its capital stock and paid in and unimpaired surplus and in no event shall the purchase of such stock result in an association’s acquiring more than 5 per centum of any class of voting securities of such bank or company’’ for ‘‘Provided further, That, notwithstanding any other pro- vision of this paragraph, the association may purchase for its own account shares of stock of a bank insured by the Federal Deposit Insurance Corporation if the stock of such bank is owned exclusively by other banks (ex- cept to the extent State law requires directors qualify- ing shares) and if such bank is engaged exclusively in providing banking services for other banks and their of- ficers, directors, or employees, but in no event shall the total amount of such stock held by the association ex- Page 15 TITLE 12—BANKS AND BANKING § 24a EFFECTIVE DATE OF 1968 AMENDMENT For effective date of amendment by title VIII of Pub. L. 90–448, see section 808 of Pub. L. 90–448, set out as an Effective Date note under section 1716b of this title. EFFECTIVE DATE OF 1956 AMENDMENT Amendment by act July 26, 1956, effective Jan. 1, 1957, see section 202(a) of act July 26, 1956. EFFECTIVE DATE OF 1933 AMENDMENT Section 16 of act June 16, 1933, provided that restric- tions of this section as to dealing in investment securi- ties shall take effect one year after June 16, 1933. REGULATIONS Section 347(c) of Pub. L. 103–325 provided that: ‘‘Not later than 1 year after the date of enactment of this Act [Sept. 23, 1994], the Comptroller of the Currency shall promulgate final regulations, in accordance with the thirteenth sentence of Paragraph Seventh of sec- tion 5136 of the Revised Statutes [this section] (as amended by subsection (b)), to carry out the amend- ments made by this section [amending this section and section 78c of Title 15, Commerce and Trade].’’ [Final regulations implementing these amendments were pub- lished in the Federal Register on Dec. 2, 1996 [61 F.R. 63972], effective Dec. 31, 1996.] EXCEPTION AS TO TRANSFER OF FUNCTIONS Functions vested by any provision of law in Comp- troller of the Currency, referred to in this section, not included in transfer of functions to Secretary of the Treasury, see note set out under section 1 of this title. ABOLITION OF HOME OWNERS’ LOAN CORPORATION For dissolution and abolishment of Home Owners’ Loan Corporation, by act June 30, 1953, ch. 170, § 21, 67 Stat. 126, see note set out under section 1463 of this title. § 24a. Financial subsidiaries of national banks (a) Authorization to conduct in subsidiaries cer- tain activities that are financial in nature (1) In general Subject to paragraph (2), a national bank may control a financial subsidiary, or hold an interest in a financial subsidiary. (2) Conditions and requirements A national bank may control a financial subsidiary, or hold an interest in a financial subsidiary, only if— (A) the financial subsidiary engages only in— (i) activities that are financial in nature or incidental to a financial activity pursu- ant to subsection (b) of this section; and (ii) activities that are permitted for na- tional banks to engage in directly (subject to the same terms and conditions that gov- ern the conduct of the activities by a na- tional bank); (B) the activities engaged in by the finan- cial subsidiary as a principal do not in- clude— (i) insuring, guaranteeing, or indemnify- ing against loss, harm, damage, illness, disability, or death (except to the extent permitted under section 302 or 303(c) of the Gramm-Leach-Bliley Act [15 U.S.C. 6712 or 6713(c)]) or providing or issuing annuities the income of which is subject to tax treatment under section 72 of title 26; (ii) real estate development or real es- tate investment activities, unless other- wise expressly authorized by law; or (iii) any activity permitted in subpara- graph (H) or (I) of section 1843(k)(4) of this title, except activities described in section 1843(k)(4)(H) of this title that may be per- mitted in accordance with section 122 of the Gramm-Leach-Bliley Act; (C) the national bank and each depository institution affiliate of the national bank are well capitalized and well managed; (D) the aggregate consolidated total assets of all financial subsidiaries of the national bank do not exceed the lesser of— (i) 45 percent of the consolidated total assets of the parent bank; or (ii) $50,000,000,000; (E) except as provided in paragraph (4), the national bank meets any applicable rating or other requirement set forth in paragraph (3); and (F) the national bank has received the ap- proval of the Comptroller of the Currency for the financial subsidiary to engage in such activities, which approval shall be based solely upon the factors set forth in this section. (3) Rating or comparable requirement (A) In general A national bank meets the requirements of this paragraph if— (i) the bank is 1 of the 50 largest insured banks and has not fewer than 1 issue of outstanding eligible debt that is currently rated within the 3 highest investment grade rating categories by a nationally recognized statistical rating organization; or (ii) the bank is 1 of the second 50 largest insured banks and meets the criteria set forth in clause (i) or such other criteria as the Secretary of the Treasury and the Board of Governors of the Federal Reserve System may jointly establish by regula- tion and determine to be comparable to and consistent with the purposes of the rating required in clause (i). (B) Consolidated total assets For purposes of this paragraph, the size of an insured bank shall be determined on the basis of the consolidated total assets of the bank as of the end of each calendar year. (4) Financial agency subsidiary The requirement in paragraph (2)(E) shall not apply with respect to the ownership or control of a financial subsidiary that engages in activities described in subsection (b)(1) of this section solely as agent and not directly or indirectly as principal. (5) Regulations required Before the end of the 270-day period begin- ning on November 12, 1999, the Comptroller of the Currency shall, by regulation, prescribe procedures to implement this section. (6) Indexed asset limit The dollar amount contained in paragraph (2)(D) shall be adjusted according to an index- Page 16 TITLE 12—BANKS AND BANKING § 24a 1 So in original. ing mechanism jointly established by regula- tion by the Secretary of the Treasury and the Board of Governors of the Federal Reserve System. (7) Coordination with section 1843(l)(2) of this title Section 1843(l)(2) of this title applies to a na- tional bank that controls a financial subsidi- ary in the manner provided in that section. (b) Activities that are financial in nature (1) Financial activities (A) In general An activity shall be financial in nature or incidental to such financial activity only if— (i) such activity has been defined to be financial in nature or incidental to a fi- nancial activity for bank holding compa- nies pursuant to section 1843(k)(4) of this title; or (ii) the Secretary of the Treasury deter- mines the activity is financial in nature or incidental to a financial activity in ac- cordance with subparagraph (B). (B) Coordination between the Board and the Secretary of the Treasury (i) Proposals raised before the Secretary of the Treasury (I) Consultation The Secretary of the Treasury shall notify the Board of, and consult with the Board concerning, any request, proposal, or application under this section for a determination of whether an activity is financial in nature or incidental to a fi- nancial activity. (II) Board view The Secretary of the Treasury shall not determine that any activity is finan- cial in nature or incidental to a financial activity under this section if the Board notifies the Secretary in writing, not later than 30 days after the date of re- ceipt of the notice described in subclause (I) (or such longer period as the Sec- retary determines to be appropriate under the circumstances) that the Board believes that the activity is not financial in nature or incidental to a financial ac- tivity or is not otherwise permissible under this section. (ii) Proposals raised by the Board (I) Board recommendation The Board may, at any time, rec- ommend in writing that the Secretary of the Treasury find an activity to be finan- cial in nature or incidental to a financial activity for purposes of this section. (II) Time period for secretarial action Not later than 30 days after the date of receipt of a written recommendation from the Board under subclause (I) (or such longer period as the Secretary of the Treasury and the Board determine to be appropriate under the circumstances), the Secretary shall determine whether to initiate a public rulemaking propos- ing that the subject recommended activ- ity be found to be financial in nature or incidental to a financial activity under this section, and shall notify the Board in writing of the determination of the Secretary and, in the event that the Sec- retary determines not to seek public comment on the proposal, the reasons for that determination. (2) Factors to be considered In determining whether an activity is finan- cial in nature or incidental to a financial ac- tivity, the Secretary shall take into account— (A) the purposes of this Act 1 and the Gramm-Leach-Bliley Act; (B) changes or reasonably expected changes in the marketplace in which banks compete; (C) changes or reasonably expected changes in the technology for delivering fi- nancial services; and (D) whether such activity is necessary or appropriate to allow a bank and the subsidi- aries of a bank to— (i) compete effectively with any com- pany seeking to provide financial services in the United States; (ii) efficiently deliver information and services that are financial in nature through the use of technological means, including any application necessary to protect the security or efficacy of systems for the transmission of data or financial transactions; and (iii) offer customers any available or emerging technological means for using fi- nancial services or for the document imag- ing of data. (3) Authorization of new financial activities The Secretary of the Treasury shall, by reg- ulation or order and in accordance with para- graph (1)(B), define, consistent with the pur- poses of this Act 1 and the Gramm-Leach-Bli- ley Act, the following activities as, and the ex- tent to which such activities are, financial in nature or incidental to a financial activity: (A) Lending, exchanging, transferring, in- vesting for others, or safeguarding financial assets other than money or securities. (B) Providing any device or other instru- mentality for transferring money or other financial assets. (C) Arranging, effecting, or facilitating fi- nancial transactions for the account of third parties. (c) Capital deduction (1) Capital deduction required In determining compliance with applicable capital standards— (A) the aggregate amount of the outstand- ing equity investment, including retained earnings, of a national bank in all financial subsidiaries shall be deducted from the as- sets and tangible equity of the national bank; and Page 17 TITLE 12—BANKS AND BANKING § 24a (B) the assets and liabilities of the finan- cial subsidiaries shall not be consolidated with those of the national bank. (2) Financial statement disclosure of capital deduction Any published financial statement of a na- tional bank that controls a financial subsidi- ary shall, in addition to providing information prepared in accordance with generally accept- ed accounting principles, separately present fi- nancial information for the bank in the man- ner provided in paragraph (1). (d) Safeguards for the bank A national bank that establishes or maintains a financial subsidiary shall assure that— (1) the procedures of the national bank for identifying and managing financial and oper- ational risks within the national bank and the financial subsidiary adequately protect the national bank from such risks; (2) the national bank has, for the protection of the bank, reasonable policies and proce- dures to preserve the separate corporate iden- tity and limited liability of the national bank and the financial subsidiaries of the national bank; and (3) the national bank is in compliance with this section. (e) Provisions applicable to national banks that fail to continue to meet certain requirements (1) In general If a national bank or insured depository in- stitution affiliate does not continue to meet the requirements of subsection (a)(2)(C) of this section or subsection (d) of this section, the Comptroller of the Currency shall promptly give notice to the national bank to that effect describing the conditions giving rise to the no- tice. (2) Agreement to correct conditions Not later than 45 days after the date of re- ceipt by a national bank of a notice given under paragraph (1) (or such additional period as the Comptroller of the Currency may per- mit), the national bank shall execute an agreement with the Comptroller of the Cur- rency and any relevant insured depository in- stitution affiliate shall execute an agreement with its appropriate Federal banking agency to comply with the requirements of subsection (a)(2)(C) of this section and subsection (d) of this section. (3) Imposition of conditions Until the conditions described in a notice under paragraph (1) are corrected— (A) the Comptroller of the Currency may impose such limitations on the conduct or activities of the national bank or any sub- sidiary of the national bank as the Comp- troller of the Currency determines to be ap- propriate under the circumstances and con- sistent with the purposes of this section; and (B) the appropriate Federal banking agen- cy may impose such limitations on the con- duct or activities of any relevant insured de- pository institution affiliate or any subsidi- ary of the institution as such agency deter- mines to be appropriate under the circum- stances and consistent with the purposes of this section. (4) Failure to correct If the conditions described in a notice to a national bank under paragraph (1) are not cor- rected within 180 days after the date of receipt by the national bank of the notice, the Comp- troller of the Currency may require the na- tional bank, under such terms and conditions as may be imposed by the Comptroller and subject to such extension of time as may be granted in the discretion of the Comptroller, to divest control of any financial subsidiary. (5) Consultation In taking any action under this subsection, the Comptroller shall consult with all relevant Federal and State regulatory agencies and au- thorities. (f) Failure to maintain public rating or meet ap- plicable criteria (1) In general A national bank that does not continue to meet any applicable rating or other require- ment of subsection (a)(2)(E) of this section after acquiring or establishing a financial sub- sidiary shall not, directly or through a sub- sidiary, purchase or acquire any additional eq- uity capital of any financial subsidiary until the bank meets such requirements. (2) Equity capital For purposes of this subsection, the term ‘‘equity capital’’ includes, in addition to any equity instrument, any debt instrument issued by a financial subsidiary, if the instrument qualifies as capital of the subsidiary under any Federal or State law, regulation, or interpre- tation applicable to the subsidiary. (g) Definitions For purposes of this section, the following definitions shall apply: (1) Affiliate, company, control, and subsidiary The terms ‘‘affiliate’’, ‘‘company’’, ‘‘con- trol’’, and ‘‘subsidiary’’ have the meanings given those terms in section 1841 of this title. (2) Appropriate Federal banking agency, de- pository institution, insured bank, and in- sured depository institution The terms ‘‘appropriate Federal banking agency’’, ‘‘depository institution’’, ‘‘insured bank’’, and ‘‘insured depository institution’’ have the meanings given those terms in sec- tion 1813 of this title. (3) Financial subsidiary The term ‘‘financial subsidiary’’ means any company that is controlled by 1 or more in- sured depository institutions other than a sub- sidiary that— (A) engages solely in activities that na- tional banks are permitted to engage in di- rectly and are conducted subject to the same terms and conditions that govern the con- duct of such activities by national banks; or (B) a national bank is specifically author- ized by the express terms of a Federal stat- Page 20 TITLE 12—BANKS AND BANKING § 25b ler is preempting, the Comptroller shall first consult with the Bureau of Consumer Finan- cial Protection and shall take the views of the Bureau into account when making the determination. (4) Rule of construction Title 62 of the Revised Statutes does not oc- cupy the field in any area of State law. (5) Standards of review (A) Preemption A court reviewing any determinations made by the Comptroller regarding preemp- tion of a State law by title 62 of the Revised Statutes or section 371 of this title shall as- sess the validity of such determinations, de- pending upon the thoroughness evident in the consideration of the agency, the validity of the reasoning of the agency, the consist- ency with other valid determinations made by the agency, and other factors which the court finds persuasive and relevant to its de- cision. (B) Savings clause Except as provided in subparagraph (A), nothing in this section shall affect the def- erence that a court may afford to the Comp- troller in making determinations regarding the meaning or interpretation of title LXII of the Revised Statutes of the United States or other Federal laws. (6) Comptroller determination not delegable Any regulation, order, or determination made by the Comptroller of the Currency under paragraph (1)(B) shall be made by the Comptroller, and shall not be delegable to an- other officer or employee of the Comptroller of the Currency. (c) Substantial evidence No regulation or order of the Comptroller of the Currency prescribed under subsection (b)(1)(B), shall be interpreted or applied so as to invalidate, or otherwise declare inapplicable to a national bank, the provision of the State con- sumer financial law, unless substantial evi- dence, made on the record of the proceeding, supports the specific finding regarding the pre- emption of such provision in accordance with the legal standard of the decision of the Su- preme Court of the United States in Barnett Bank of Marion County, N.A. v. Nelson, Florida Insurance Commissioner, et al., 517 U.S. 25 (1996). (d) Periodic review of preemption determina- tions (1) In general The Comptroller of the Currency shall peri- odically conduct a review, through notice and public comment, of each determination that a provision of Federal law preempts a State con- sumer financial law. The agency shall conduct such review within the 5-year period after pre- scribing or otherwise issuing such determina- tion, and at least once during each 5-year pe- riod thereafter. After conducting the review of, and inspecting the comments made on, the determination, the agency shall publish a no- tice in the Federal Register announcing the decision to continue or rescind the determina- tion or a proposal to amend the determina- tion. Any such notice of a proposal to amend a determination and the subsequent resolution of such proposal shall comply with the proce- dures set forth in subsections (a) and (b) of section 43 of this title. (2) Reports to Congress At the time of issuing a review conducted under paragraph (1), the Comptroller of the Currency shall submit a report regarding such review to the Committee on Financial Serv- ices of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate. The report submitted to the respective committees shall address whether the agency intends to continue, re- scind, or propose to amend any determination that a provision of Federal law preempts a State consumer financial law, and the reasons therefor. (e) Application of State consumer financial law to subsidiaries and affiliates Notwithstanding any provision of title 62 of the Revised Statutes or section 371 of this title, a State consumer financial law shall apply to a subsidiary or affiliate of a national bank (other than a subsidiary or affiliate that is chartered as a national bank) to the same extent that the State consumer financial law applies to any per- son, corporation, or other entity subject to such State law. (f) Preservation of powers related to charging in- terest No provision of title 62 of the Revised Statutes shall be construed as altering or otherwise af- fecting the authority conferred by section 85 of this title for the charging of interest by a na- tional bank at the rate allowed by the laws of the State, territory, or district where the bank is located, including with respect to the mean- ing of ‘‘interest’’ under such provision. (g) Transparency of OCC preemption determina- tions The Comptroller of the Currency shall publish and update no less frequently than quarterly, a list of preemption determinations by the Comp- troller of the Currency then in effect that iden- tifies the activities and practices covered by each determination and the requirements and constraints determined to be preempted. (h) Clarification of law applicable to nondeposi- tory institution subsidiaries and affiliates of national banks (1) Definitions For purposes of this subsection, the terms ‘‘depository institution’’, ‘‘subsidiary’’, and ‘‘affiliate’’ have the same meanings as in sec- tion 1813 of this title. (2) Rule of construction No provision of title 62 of the Revised Stat- utes or section 371 of this title shall be con- strued as preempting, annulling, or affecting the applicability of State law to any subsidi- ary, affiliate, or agent of a national bank (other than a subsidiary, affiliate, or agent that is chartered as a national bank). Page 21 TITLE 12—BANKS AND BANKING § 27 1 So in original. No par. (2) has been enacted. (i) Visitorial powers (1) 1 In general In accordance with the decision of the Su- preme Court of the United States in Cuomo v. Clearing House Assn., L. L. C. (129 S. Ct. 2710 (2009)), no provision of title 62 of the Revised Statutes which relates to visitorial powers or otherwise limits or restricts the visitorial au- thority to which any national bank is subject shall be construed as limiting or restricting the authority of any attorney general (or other chief law enforcement officer) of any State to bring an action against a national bank in a court of appropriate jurisdiction to enforce an applicable law and to seek relief as authorized by such law. (j) Enforcement actions The ability of the Comptroller of the Currency to bring an enforcement action under title 62 of the Revised Statutes or section 45 of title 15 does not preclude any private party from enforc- ing rights granted under Federal or State law in the courts. (R.S. § 5136C, as added and amended Pub. L. 111–203, title X, §§ 1044(a), 1045, 1047(a), July 21, 2010, 124 Stat. 2014, 2017, 2018.) REFERENCES IN TEXT The International Banking Act of 1978, referred to in subsec. (a)(1)(B), is Pub. L. 95–369, Sept. 17, 1978, 92 Stat. 607, which enacted chapter 32 (§ 3101 et seq.) and sec- tions 347d and 611a 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 247, 611a, and 3101 of this title and formerly set out as notes under sections 36, 247, and 601 of this title. For complete clas- sification of this Act to the Code, see Short Title note set out under section 3101 of this title and Tables. Title 62 of the Revised Statutes, referred to in sub- secs. (b)(1)(C), (2), (4), (5)(A), (e), (f), (h)(2), (i)(1), and (j), was in the original a reference to ‘‘this title’’ or ‘‘This title’’ meaning title LXII of the Revised Statutes, con- sisting of R.S. §§ 5133 to 5244, which are classified to this section and sections 16, 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. §§ 5133 to 5244 to the Code, see Tables. For classification of title LXII of the Revised Stat- utes of the United States, referred to in subsec. (b)(5)(B), see note above. AMENDMENTS 2010—Subsec. (h). Pub. L. 111–203, § 1045, added subsec. (h). Subsecs. (i), (j). Pub. L. 111–203, § 1047(a), added sub- secs. (i) and (j). EFFECTIVE DATE Enactment and amendment of section by Pub. L. 111–203 effective on the designated transfer date, see section 1048 of Pub. L. 111–203, set out as a note under section 5551 of this title. § 26. Comptroller to determine if association can commence business Whenever a certificate is transmitted to the Comptroller of the Currency, as provided in title 62 of the Revised Statutes, and the association transmitting the same notifies the Comptroller that all of its capital stock has been duly paid in, and that such association has complied with all the provisions of title 62 of the Revised Stat- utes required to be complied with before an as- sociation shall be authorized to commence the business of banking, the Comptroller shall ex- amine into the condition of such association, as- certain especially the amount of money paid in on account of its capital, the name and place of residence of each of its directors, and the amount of the capital stock of which each is the owner in good faith, and generally whether such association has complied with all the provisions of title 62 of the Revised Statutes required to entitle it to engage in the business of banking; and shall cause to be made and attested by the oaths of a majority of the directors, and by the president or cashier of the association, a state- ment of all the facts necessary to enable the Comptroller to determine whether the associa- tion is lawfully entitled to commence the busi- ness of banking. (R.S. § 5168; Pub. L. 86–230, § 2, Sept. 8, 1959, 73 Stat. 457.) 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. §§ 5133 to 5244, which are classified this section and to sections 16, 21, 22 to 24a, 25a, 25b, 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. §§ 5133 to 5244 to the Code, see Tables. CODIFICATION R.S. § 5168 derived from act June 3, 1864, ch. 106, § 17, 13 Stat. 104, which was the National Bank Act. See sec- tion 38 of this title. AMENDMENTS 1959—Pub. L. 86–230 substituted ‘‘all’’ for ‘‘at least 50 per centum’’ before ‘‘of its capital stock’’. EXCEPTION AS TO TRANSFER OF FUNCTIONS Functions vested by any provision of law in Comp- troller 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. § 27. Certificate of authority to commence bank- ing (a) If, upon a careful examination of the facts so reported, and of any other facts which may come to the knowledge of the Comptroller, whether by means of a special commission ap- pointed by him for the purpose of inquiring into the condition of such association, or otherwise, it appears that such association is lawfully enti- tled to commence the business of banking, the Comptroller shall give to such association a cer- tificate, under his hand and official seal, that such association has complied with all the pro- visions required to be complied with before com- mencing the business of banking, and that such association is authorized to commence such business. But the Comptroller may withhold Page 22 TITLE 12—BANKS AND BANKING § 28 from an association his certificate authorizing the commencement of business, whenever he has reason to suppose that the shareholders have formed the same for any other than the legiti- mate objects contemplated by title 62 of the Re- vised Statutes. A National Bank Association, to which the Comptroller of the Currency has here- tofore issued or hereafter issues such certificate, is not illegally constituted solely because its op- erations are or have been required by the Comp- troller of the Currency to be limited to those of a trust company and activities related thereto. (b)(1) The Comptroller of the Currency may also issue a certificate of authority to com- mence the business of banking pursuant to this section to a national banking association which is owned exclusively (except to the extent direc- tors’ qualifying shares are required by law) by other depository institutions or depository in- stitution holding companies and is organized to engage exclusively in providing services to or for other depository institutions, their holding companies, and the officers, directors, and em- ployees of such institutions and companies, and in providing correspondent banking services at the request of other depository institutions or their holding companies (also referred to as a ‘‘banker’s bank’’). (2) Any national banking association char- tered pursuant to paragraph (1) shall be subject to such rules, regulations, and orders as the Comptroller deems appropriate, and, except as otherwise specifically provided in such rules, regulations, or orders, shall be vested with or subject to the same rights, privileges, duties, re- strictions, penalties, liabilities, conditions, and limitations that would apply under the national banking laws to a national bank. (R.S. § 5169; Pub. L. 95–630, title XV, § 1504, Nov. 10, 1978, 92 Stat. 3713; Pub. L. 96–221, title VII, § 712(a), (c), Mar. 31, 1980, 94 Stat. 189, 190; Pub. L. 97–320, title IV, § 404(a), Oct. 15, 1982, 96 Stat. 1511; Pub. L. 103–325, title III, § 322(a)(2), Sept. 23, 1994, 108 Stat. 2227.) REFERENCES IN TEXT Title 62 of the Revised Statutes, referred to in subsec. (a), was in the original ‘‘this Title’’ meaning title LXII of the Revised Statutes, consisting of R.S. §§ 5133 to 5244, which are classified to this section and sections 16, 21, 22 to 24a, 25a, 25b, 26, 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. §§ 5133 to 5244 to the Code, see Tables. CODIFICATION R.S. § 5169 derived from act June 3, 1864, ch. 106, §§ 12, 18, 13 Stat. 102, 104, which was the National Bank Act. See section 38 of this title. AMENDMENTS 1994—Subsec. (b)(1). Pub. L. 103–325, § 322(a)(2)(A), in- serted ‘‘or depository institution holding companies’’ after ‘‘by other depository institutions’’. Pub. L. 103–325, § 322(a)(2)(B), which directed substi- tution of ‘‘services to or for other depository institu- tions, their holding companies, and the officers, direc- tors, and employees of such institutions and compa- nies, and in providing correspondent banking services at the request of other depository institutions or their holding companies (also referred to as a ‘banker’s bank’)’’ for ‘‘services for other depository institutions and their officers, directors and employees’’, was exe- cuted by making the substitution for ‘‘services for other depository institutions and their officers, direc- tors, and employees’’ to reflect the probable intent of Congress. 1982—Pub. L. 97–320 designated existing provisions as subsec. (a) and added subsec. (b). 1980—Pub. L. 96–221, § 712(a), (c), temporarily inserted provisions relating to treatment of national banking associations as additional banks within the contempla- tion of section 1842 of this title. See Termination Date of 1980 Amendment note below. 1978—Pub. L. 95–630 inserted provision that a National Bank Association, to which the Comptroller of the Cur- rency has heretofore issued or hereafter issues such certificate, is not illegally constituted solely because its operations are or have been required by the Comp- troller of the Currency to be limited to those of a trust company and activities related thereto. TERMINATION DATE OF 1980 AMENDMENT Section 712(c) of Pub. L. 96–221 provided that: ‘‘The amendments made by this section [amending this sec- tion and section 1842 of this title] are hereby repealed on October 1, 1981.’’ EFFECTIVE DATE OF 1978 AMENDMENT Section 1505 of Pub. L. 95–630 provided that: ‘‘This title [amending this section and sections 1715z–10 and 2902 of this title and amending provisions set out as a note under section 1666f of Title 15, Commerce and Trade] shall take effect upon enactment [Nov. 10, 1978].’’ EXCEPTION AS TO TRANSFER OF FUNCTIONS Functions vested by any provision of law in Comp- troller 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. § 28. Repealed. Pub. L. 103–325, title VI, § 602(e)(1), Sept. 23, 1994, 108 Stat. 2291 Section, R.S. § 5170, required publication of certificate of authority to commence banking for 60 days after is- suance. CODIFICATION R.S. § 5170 derived from act June 3, 1864, ch. 106, § 18, 13 Stat. 104, which was the National Bank Act. See sec- tion 38 of this title. § 29. Power to hold real property A national banking association may purchase, hold, and convey real estate for the following purposes, and for no others: First. Such as shall be necessary for its ac- commodation in the transaction of its business. Second. Such as shall be mortgaged to it in good faith by way of security for debts pre- viously contracted. Third. Such as shall be conveyed to it in satis- faction of debts previously contracted in the course of its dealings. Fourth. Such as it shall purchase at sales under judgments, decrees, or mortgages held by the association, or shall purchase to secure debts due to it. But no such association shall hold the posses- sion of any real estate under mortgage, or the title and possession of any real estate purchased to secure any debts due to it, for a longer period than five years except as otherwise provided in this section. Page 25 TITLE 12—BANKS AND BANKING § 36 State bank or State savings association is sub- ject to a cease and desist order (or other formal enforcement order) issued by, or a memorandum of understanding entered into with, a State bank supervisor or the appropriate Federal banking agency with respect to a significant su- pervisory matter or a final enforcement action by a State Attorney General. (R.S. § 5154; Dec. 23, 1913, ch. 6, § 8, 38 Stat. 258; Aug. 23, 1935, ch. 614, title III, § 312, 49 Stat. 711; Pub. L. 97–457, § 19(b), Jan. 12, 1983, 96 Stat. 2509; Pub. L. 111–203, title VI, § 612(b), July 21, 2010, 124 Stat. 1612.) REFERENCES IN TEXT This Act, referred to in first par., may refer to the Federal Reserve Act, act Dec. 23, 1913, from which this wording is derived; or section 5154 of the Revised Stat- utes which the Federal Reserve Act amended; or act June 3, 1864, from which R.S. § 5154 was derived; or Con- gress might have intended to refer to the preceding pro- visions of the 1913 amendment. Similar reference in R.S. § 5154 prior to 1913 amendment was to ‘‘this Title,’’ meaning title 62 of the Revised Statutes, which title comprised the National Bank Act (June 3, 1864, ch. 106, 13 Stat. 99). See section 38 of this title. Note also spe- cific reference to the Federal Reserve Act and the Na- tional Banking Act in first par. The Federal Reserve Act, referred to in text, is act Dec. 23, 1913, ch. 6, 38 Stat. 251, as amended, which is classified principally to chapter 3 (§ 221 et seq.) of this title. For complete classification of this Act to the Code, see References in Text note set out under section 226 of this title and Tables. The National Banking Act, referred to in text, is probably intended to be a reference to the National Bank Act, act June 3, 1864, ch. 106, 13 Stat. 99, as amended, which is classified principally to chapter 2 (§ 21 et seq.) of this title. For complete classification of this Act to the Code see References in Text note set out under section 38 of this title. CODIFICATION R.S. § 5154 derived from act June 3, 1864, ch. 106, § 44, 13 Stat. 112, which was the National Bank Act. See sec- tion 38 of this title. AMENDMENTS 2010—Pub. L. 111–203 inserted at end ‘‘The Comptrol- ler of the Currency may not approve the conversion of a State bank or State savings association to a national banking association or Federal savings association dur- ing any period in which the State bank or State sav- ings association is subject to a cease and desist order (or other formal enforcement order) issued by, or a memorandum of understanding entered into with, a State bank supervisor or the appropriate Federal bank- ing agency with respect to a significant supervisory matter or a final enforcement action by a State Attor- ney General.’’ 1983—Pub. L. 97–457 substituted ‘‘with a name that contains the word ‘national’ ’’ for ‘‘with any name ap- proved by the Comptroller of the Currency’’ after ‘‘na- tional banking association,’’. 1935—Act Aug. 23, 1935, added last par. EFFECTIVE DATE OF 2010 AMENDMENT Amendment by Pub. L. 111–203 effective 1 day after July 21, 2010, except as otherwise provided, see section 4 of Pub. L. 111–203, set out as an Effective Date note under section 5301 of this title. EXCEPTION AS TO TRANSFER OF FUNCTIONS Functions vested by any provision of law in Comp- troller 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. EXCEPTION TO PROHIBITION ON APPROVAL OF CONVERSIONS Pub. L. 111–203, title VI, § 612(d), July 21, 2010, 124 Stat. 1613, provided that: ‘‘The prohibition on the ap- proval of conversions under the amendments made by subsections (a), (b), and (c) [enacting section 214d of this title and amending this section and section 1464 of this title] shall not apply, if— ‘‘(1) the Federal banking agency that would be the appropriate Federal banking agency after the pro- posed conversion gives the appropriate Federal bank- ing agency or State bank supervisor that issued the cease and desist order (or other formal enforcement order) or memorandum of understanding, as appro- priate, written notice of the proposed conversion in- cluding a plan to address the significant supervisory matter in a manner that is consistent with the safe and sound operation of the institution; ‘‘(2) within 30 days of receipt of the written notice required under paragraph (1), the appropriate Federal banking agency or State bank supervisor that issued the cease and desist order (or other formal enforce- ment order) or memorandum of understanding, as ap- propriate, does not object to the conversion or the plan to address the significant supervisory matter; ‘‘(3) after conversion of the insured depository in- stitution, the appropriate Federal banking agency after the conversion implements such plan; and ‘‘(4) in the case of a final enforcement action by a State Attorney General, approval of the conversion is conditioned on compliance by the insured depository institution with the terms of such final enforcement action.’’ [For definitions of terms used in section 612(d) of Pub. L. 111–203, set out above, see section 5301 of this title.] NOTIFICATION OF PENDING ENFORCEMENT ACTIONS Pub. L. 111–203, title VI, § 612(e), July 21, 2010, 124 Stat. 1613, provided that: ‘‘(1) COPY OF CONVERSION APPLICATION.—At the time an insured depository institution files a conversion ap- plication, the insured depository institution shall transmit a copy of the conversion application to— ‘‘(A) the appropriate Federal banking agency for the insured depository institution; and ‘‘(B) the Federal banking agency that would be the appropriate Federal banking agency of the insured depository institution after the proposed conversion. ‘‘(2) NOTIFICATION AND ACCESS TO INFORMATION.—Upon receipt of a copy of the application described in para- graph (1), the appropriate Federal banking agency for the insured depository institution proposing the con- version shall— ‘‘(A) notify the Federal banking agency that would be the appropriate Federal banking agency for the in- stitution after the proposed conversion in writing of any ongoing supervisory or investigative proceedings that the appropriate Federal banking agency for the institution proposing to convert believes is likely to result, in the near term and absent the proposed con- version, in a cease and desist order (or other formal enforcement order) or memorandum of understanding with respect to a significant supervisory matter; and ‘‘(B) provide the Federal banking agency that would be the appropriate Federal banking agency for the institution after the proposed conversion access to all investigative and supervisory information re- lating to the proceedings described in subparagraph (A).’’ [For definitions of terms used in section 612(e) of Pub. L. 111–203, set out above, see section 5301 of this title.] § 36. Branch banks The conditions upon which a national banking association may retain or establish and operate a branch or branches are the following: (a) Lawful and continuous operation A national banking association may retain and operate such branch or branches as it may Page 26 TITLE 12—BANKS AND BANKING § 36 1 See References in Text note below. have had in lawful operation on February 25, 1927, and any national banking association which continuously maintained and operated not more than one branch for a period of more than twenty-five years immediately preceding February 25, 1927, may continue to maintain and operate such branch. (b) Converted State banks (1) A national bank resulting from the conver- sion of a State bank may retain and operate as a branch any office which was a branch of the State bank immediately prior to conversion if such office— (A) might be established under subsection (c) of this section as a new branch of the resulting national bank, and is approved by the Comp- troller of the Currency for continued oper- ation as a branch of the resulting national bank; (B) was a branch of any bank on February 25, 1927; or (C) is approved by the Comptroller of the Currency for continued operation as a branch of the resulting national bank. The Comptroller of the Currency may not grant approval under clause (C) of this paragraph if a State bank (in a situation identical to that of the national bank) resulting from the conver- sion of a national bank would be prohibited by the law of such State from retaining and operat- ing as a branch an identically situated office which was a branch of the national bank imme- diately prior to conversion. (2) A national bank (referred to in this para- graph as the ‘‘resulting bank’’), resulting from the consolidation of a national bank (referred to in this paragraph as the ‘‘national bank’’) under whose charter the consolidation is effected with another bank or banks, may retain and operate as a branch any office which, immediately prior to such consolidation, was in operation as— (A) a main office or branch office of any bank (other than the national bank) partici- pating in the consolidation if, under sub- section (c) of this section, it might be estab- lished as a new branch of the resulting bank, and if the Comptroller of the Currency ap- proves of its continued operation after the consolidation; (B) a branch of any bank participating in the consolidation, and which, on February 25, 1927, was in operation as a branch of any bank; or (C) a branch of the national bank and which, on February 25, 1927, was not in operation as a branch of any bank, if the Comptroller of the Currency approves of its continued operation after the consolidation. The Comptroller of the Currency may not grant approval under clause (C) of this paragraph if a State bank (in a situation identical to that of the resulting national bank) resulting from the consolidation into a State bank of another bank or banks would be prohibited by the law of such State from retaining and operating as a branch an identically situated office which was a branch of the State bank immediately prior to consolidation. (3) As used in this subsection, the term ‘‘con- solidation’’ includes a merger. (c) New branches A national banking association may, with the approval of the Comptroller of the Currency, es- tablish and operate new branches: (1) Within the limits of the city, town or village in which said association is situated, if such establishment and operation are at the time expressly author- ized to State banks by the law of the State in question; and (2) at any point within the State in which said association is situated, if such es- tablishment and operation are at the time au- thorized to State banks by the statute law of the State in question by language specifically granting such authority affirmatively and not merely by implication or recognition, and sub- ject to the restrictions as to location imposed by the law of the State on State banks. In any State in which State banks are permitted by statute law to maintain branches within county or greater limits, if no bank is located and doing business in the place where the proposed agency is to be located, any national banking associa- tion situated in such State may, with the ap- proval of the Comptroller of the Currency, es- tablish and operate, without regard to the cap- ital requirements of this section, a seasonal agency in any resort community within the lim- its of the county in which the main office of such association is located, for the purpose of receiving and paying out deposits, issuing and cashing checks and drafts, and doing business incident thereto: Provided, That any permit is- sued under this sentence shall be revoked upon the opening of a State or national bank in such community. Except as provided in the imme- diately preceding sentence, no such association shall establish a branch outside of the city, town, or village in which it is situated unless it has a combined capital stock and surplus equal to the combined amount of capital stock and surplus, if any, required by the law of the State in which such association is situated for the es- tablishment of such branches by State banks, or, if the law of such State requires only a mini- mum capital stock for the establishment of such branches by State banks, unless such associa- tion has not less than an equal amount of cap- ital stock. (d) Branches resulting from interstate merger transactions A national bank resulting from an interstate merger transaction (as defined in section 1831u(f)(6) 1 of this title) may maintain and oper- ate a branch in a State other than the home State (as defined in subsection (g)(3)(B) of this section) of such bank in accordance with section 1831u of this title. (e) Exclusive authority for additional branches (1) In general Effective June 1, 1997, a national bank may not acquire, establish, or operate a branch in any State other than the bank’s home State (as defined in subsection (g)(3)(B) of this sec- tion) or a State in which the bank already has a branch unless the acquisition, establish- ment, or operation of such branch in such State by such national bank is authorized Page 27 TITLE 12—BANKS AND BANKING § 36 under this section or section 1823(f), 1823(k), or 1831u of this title. (2) Retention of branches In the case of a national bank which relo- cates the main office of such bank from 1 State to another State after May 31, 1997, the bank may retain and operate branches within the State which was the bank’s home State (as defined in subsection (g)(3)(B) of this section) before the relocation of such office only to the extent the bank would be authorized, under this section or any other provision of law re- ferred to in paragraph (1), to acquire, estab- lish, or commence to operate a branch in such State if— (A) the bank had no branches in such State; or (B) the branch resulted from— (i) an interstate merger transaction ap- proved pursuant to section 1831u of this title; or (ii) a transaction after May 31, 1997, pur- suant to which the bank received assist- ance from the Federal Deposit Insurance Corporation under section 1823(c) of this title. (f) Law applicable to interstate branching oper- ations (1) Law applicable to national bank branches (A) In general The laws of the host State regarding com- munity reinvestment, consumer protection, fair lending, and establishment of intrastate branches shall apply to any branch in the host State of an out-of-State national bank to the same extent as such State laws apply to a branch of a bank chartered by that State, except— (i) when Federal law preempts the appli- cation of such State laws to a national bank; or (ii) when the Comptroller of the Cur- rency determines that the application of such State laws would have a discrimina- tory effect on the branch in comparison with the effect the application of such State laws would have with respect to branches of a bank chartered by the host State. (B) Enforcement of applicable State laws The provisions of any State law to which a branch of a national bank is subject under this paragraph shall be enforced, with re- spect to such branch, by the Comptroller of the Currency. (C) Review and report on actions by Comp- troller The Comptroller of the Currency shall con- duct an annual review of the actions it has taken with regard to the applicability of State law to national banks (or their branches) during the preceding year, and shall include in its annual report required under section 14 of this title the results of the review and the reasons for each such ac- tion. The first such review and report after July 3, 1997, shall encompass all such actions taken on or after January 1, 1992. (2) Treatment of branch as bank All laws of a host State, other than the laws regarding community reinvestment, consumer protection, fair lending, establishment of intrastate branches, and the application or ad- ministration of any tax or method of taxation, shall apply to a branch (in such State) of an out-of-State national bank to the same extent as such laws would apply if the branch were a national bank the main office of which is in such State. (3) Rule of construction No provision of this subsection may be con- strued as affecting the legal standards for pre- emption of the application of State law to na- tional banks. (g) State ‘‘opt-in’’ election to permit interstate branching through de novo branches (1) In general Subject to paragraph (2), the Comptroller of the Currency may approve an application by a national bank to establish and operate a de novo branch in a State (other than the bank’s home State) in which the bank does not main- tain a branch if— (A) the law of the State in which the branch is located, or is to be located, would permit establishment of the branch, if the national bank were a State bank chartered by such State; and (B) the conditions established in, or made applicable to this paragraph by, paragraph (2) are met. (2) Conditions on establishment and operation of interstate branch (A) Establishment An application by a national bank to es- tablish and operate a de novo branch in a host State shall be subject to the same re- quirements and conditions to which an ap- plication for an interstate merger trans- action is subject under paragraphs (1), (3), and (4) of section 1831u(b) of this title. (B) Operation Subsections (c) and (d)(2) of section 1831u of this title shall apply with respect to each branch of a national bank which is estab- lished and operated pursuant to an applica- tion approved under this subsection in the same manner and to the same extent such provisions of such section 1831u of this title apply to a branch of a national bank which resulted from an interstate merger trans- action approved pursuant to such section 1831u of this title. (3) Definitions The following definitions shall apply for pur- poses of this section: (A) De novo branch The term ‘‘de novo branch’’ means a branch of a national bank which— (i) is originally established by the na- tional bank as a branch; and (ii) does not become a branch of such bank as a result of— (I) the acquisition by the bank of an insured depository institution or a Page 30 TITLE 12—BANKS AND BANKING § 42 tional banks, shall, insofar as not locally inap- plicable after August 1, 1956, apply to Guam. (Aug. 1, 1956, ch. 852, § 2, 70 Stat. 908.) REFERENCES IN TEXT The National Bank Act, referred to in text, is act June 3, 1864, ch. 106, 13 Stat. 99, as amended, which is classified principally to chapter 2 (§ 21 et seq.) of this title. For complete classification of this Act to the Code, see References in Text note set out under section 38 of this title. § 42. Territorial application The provisions of all Acts of Congress relating to national banks shall apply in the several States, the District of Columbia, the several Territories and possessions of the United States, and the Commonwealth of Puerto Rico. (Pub. L. 86–230, § 14, Sept. 8, 1959, 73 Stat. 458.) § 43. Interpretations concerning preemption of certain State laws (a) Notice and opportunity for comment required Before issuing any opinion letter or interpre- tive rule, in response to a request or upon the agency’s own motion, that concludes that Fed- eral law preempts the application to a national bank of any State law regarding community re- investment, consumer protection, fair lending, or the establishment of intrastate branches, or before making a determination under section 36(f)(1)(A)(ii) of this title, the appropriate Fed- eral banking agency (as defined in section 1813 of this title) shall— (1) publish in the Federal Register notice of the preemption or discrimination issue that the agency is considering (including a descrip- tion of each State law at issue); (2) give interested parties not less than 30 days in which to submit written comments; and (3) in developing the final opinion letter or interpretive rule issued by the agency, or making any determination under section 36(f)(1)(A)(ii) of this title, consider any com- ments received. (b) Publication required The appropriate Federal banking agency shall publish in the Federal Register— (1) any final opinion letter or interpretive rule concluding that Federal law preempts the application of any State law regarding com- munity reinvestment, consumer protection, fair lending, or establishment of intrastate branches to a national bank; and (2) any determination under section 36(f)(1)(A)(ii) of this title. (c) Exceptions (1) No new issue or significant basis This section shall not apply with respect to any opinion letter or interpretive rule that— (A) raises issues of Federal preemption of State law that are essentially identical to those previously resolved by the courts or on which the agency has previously issued an opinion letter or interpretive rule; or (B) responds to a request that contains no significant legal basis on which to make a preemption determination. (2) Judicial, legislative, or intragovernmental materials This section shall not apply with respect to materials prepared for use in judicial proceed- ings or submission to Congress or a Member of Congress, or for intragovernmental use. (3) Emergency The appropriate Federal banking agency may make exceptions to subsection (a) of this section if— (A) the agency determines in writing that the exception is necessary to avoid a serious and imminent threat to the safety and soundness of any national bank; or (B) the opinion letter or interpretive rule is issued in connection with— (i) an acquisition of 1 or more banks in default or in danger of default (as such terms are defined in section 1813 of this title); or (ii) an acquisition with respect to which the Federal Deposit Insurance Corporation provides assistance under section 1823(c) of this title. (R.S. § 5244, as added Pub. L. 103–328, title I, § 114, Sept. 29, 1994, 108 Stat. 2366.) CODIFICATION Another R.S. § 5244 is classified to section 8 of Title 33, Navigation and Navigable Waters. SUBCHAPTER II—CAPITAL, STOCK, AND STOCKHOLDERS § 51. Repealed. Pub. L. 106–569, title XII, § 1233(c), Dec. 27, 2000, 114 Stat. 3037 Section, R.S. § 5138; Mar. 14, 1900, ch. 41, § 10, 31 Stat. 48; Feb. 25, 1927, ch. 191, § 4, 44 Stat. 1227; June 16, 1933, ch. 89, § 17(a), 48 Stat. 185; Aug. 23, 1935, ch. 614, title III, § 309, 49 Stat. 709, related to capital and surplus require- ments. § 51a. Preferred stock; issuance authorized Notwithstanding any other provision of law, any national banking association may, with the approval of the Comptroller of the Currency and by vote of shareholders owning a majority of the stock of such association, upon not less than five days’ notice, given by registered mail or by certified mail pursuant to action taken by its board of directors, issue preferred stock of one or more classes, in such amount and with such par value as shall be approved by said Comptrol- ler, and make such amendments to its articles of association as may be necessary for this pur- pose; but, in the case of any newly organized na- tional banking association which has not yet is- sued common stock, the requirement of notice to and vote of shareholders shall not apply. No issue of preferred stock shall be valid until the par value of all stock so issued shall be paid in and notice thereof, duly acknowledged before a notary public by the president, vice president, or cashier of said association, has been trans- mitted to the Comptroller of the Currency and his certificate obtained specifying the amount of such issue of preferred stock and his approval thereof and that the amount has been duly paid in as a part of the capital of such association; which certificate shall be deemed to be conclu- Page 31 TITLE 12—BANKS AND BANKING § 51b–1 sive evidence that such preferred stock has been duly and validly issued. (Mar. 9, 1933, ch. 1, title III, § 301, 48 Stat. 5; June 15, 1933, ch. 79, 48 Stat. 147; Aug. 23, 1935, ch. 614, title III, § 336, 49 Stat. 720; Pub. L. 86–507, § 1(9), June 11, 1960, 74 Stat. 200.) AMENDMENTS 1960—Pub. L. 86–507 inserted ‘‘or by certified mail’’ after ‘‘registered mail’’. 1935—Act Aug. 23, 1935, amended last sentence gener- ally. 1933—Act June 15, 1933, struck out all of former sec- tion and inserted a new section which incorporated all former provisions and inserted ‘‘of one or more class- es,’’ in first sentence. EXCEPTION AS TO TRANSFER OF FUNCTIONS Functions vested by any provision of law in Comp- troller 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. § 51b. Dividends, voting, and retirement of pre- ferred stock; individual liability (a) Notwithstanding any other provision of law, whether relating to restriction upon the payment of dividends upon capital stock or otherwise, the holders of such preferred stock shall be entitled to receive such cumulative dividends and shall have such voting and conver- sion rights and such control of management, and such stock shall be subject to retirement in such manner and upon such conditions, as may be provided in the articles of association with the approval of the Comptroller of the Currency. The holders of such preferred stock shall not be held individually responsible as such holders for any debts, contracts, or engagements of such as- sociation, and shall not be liable for assessments to restore impairments in the capital of such as- sociation as now provided by law with reference to holders of common stock. (b) No dividends shall be declared or paid on common stock until the cumulative dividends on the preferred stock shall have been paid in full; and, if the association is placed in vol- untary liquidation or a conservator or a receiver is appointed therefor, no payments shall be made to the holders of the common stock until the holders of the preferred stock shall have been paid in full the par value of such stock plus all accumulated dividends. (Mar. 9, 1933, ch. 1, title III, § 302, 48 Stat. 5; June 15, 1933, ch. 79, 48 Stat. 148; Pub. L. 96–221, title VII, § 702, Mar. 31, 1980, 94 Stat. 186.) AMENDMENTS 1980—Subsec. (a). Pub. L. 96–221 struck out limitation on payment of cumulative dividends at a rate not ex- ceeding 6 per centum per annum. 1933—Subsec. (a). Act June 15, 1933, struck out former subsec. (a) and inserted a new subsec. (a) which incor- porated all former provisions and inserted ‘‘Notwith- standing any other provision of law, whether relating to restriction upon the payment of dividends upon cap- ital stock or otherwise’’ and ‘‘and conversion rights,’’ in first sentence. EXCEPTION AS TO TRANSFER OF FUNCTIONS Functions vested by any provision of law in Comp- troller 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. § 51b–1. Consideration of preferred stock in de- termining impairment of capital; dividends; retirement If any part of the capital of a national bank, State member bank, or bank applying for mem- bership in the Federal Reserve System consists of preferred stock, the determination of whether or not the capital of such bank is impaired and the amount of such impairment shall be based upon the par value of its stock even though the amount which the holders of such preferred stock shall be entitled to receive in the event of retirement or liquidation shall be in excess of the par value of such preferred stock. If any such bank or trust company shall have out- standing any capital notes or debentures of the type which the Reconstruction Finance Corpora- tion is authorized to purchase pursuant to the provisions of section 51d of this title, the capital of such bank may be deemed to be unimpaired if the sound value of its assets is not less than its total liabilities, including capital stock, but ex- cluding such capital notes or debentures and any obligations of the bank expressly subordi- nated thereto. Notwithstanding any other provi- sion of law, the holders of preferred stock issued by a national banking association pursuant to the provisions of the Emergency Banking and Bank Conservation Act, approved March 9, 1933, as amended, shall be entitled to receive such cu- mulative dividends on the purchase price re- ceived by the association for such stock and, in the event of the retirement of such stock, to re- ceive such retirement price, not in excess of such purchase price plus all accumulated divi- dends, as may be provided in the articles of asso- ciation with the approval of the Comptroller of the Currency. If the association is placed in vol- untary liquidation, or if a conservator or a re- ceiver is appointed therefor, no payment shall be made to the holders of common stock until the holders of preferred stock shall have been paid in full such amount as may be provided in the articles of association with the approval of the Comptroller of the Currency, not in excess of such purchase price of such preferred stock plus all accumulated dividends. (Aug. 23, 1935, ch. 614, title III, § 345, 49 Stat. 722; Pub. L. 96–221, title VII, § 703, Mar. 31, 1980, 94 Stat. 186.) REFERENCES IN TEXT Section 51d of this title, referred to in text, which was section 304 of the Emergency Banking and Bank Conservation Act, approved March 9, 1933, ch. 1, 48 Stat. 6, as amended, and which authorized the Reconstruc- tion Finance Corporation, upon the request of the Sec- retary of the Treasury approved by the President, to purchase, or to make loans upon, the capital stock of any bank or trust company requiring funds for capital purposes in connection with its organization or reorga- nization, and which made provision for the purchase of the capital notes of banks organized in States which subject holders of preferred stock to double liability and for the sale of any stock or notes purchased under such authority, was repealed by act June 30, 1947, ch. 166, title II, § 206(b), (o), 61 Stat. 208. However, according to the information received from the Department of the Treasury, the second sentence of this section is not Page 32 TITLE 12—BANKS AND BANKING § 51c 1 See References in Text note below. obsolete even though it contains such obsolete ref- erence to section 51d of this title, and even though, under 1957 Reorg. Plan No. 1, eff. June 30, 1957, 22 F.R. 4633, 71 Stat. 647, set out in the Appendix to Title 5, Government Organization and Employees, the Recon- struction Finance Corporation was abolished, for many banks have outstanding debentures which they ob- tained pursuant to the provisions of section 51d, and which they are not required to redeem; and their bene- fits or entitlements conferred by the second sentence of this section will remain until the debentures are re- deemed. The Emergency Banking and Bank Conservation Act, approved March 9, 1933, as amended, referred to in text, is act Mar. 9, 1933, ch. 1, 48 Stat. 1, as amended, which is classified to sections 51a, 51b, 51c, 51d, 95 to 95b, 201 to 212, 248, 347b, 347c, 347d, and 445 of this title and sec- tion 5 of Title 50, Appendix, War and National Defense. AMENDMENTS 1980—Pub. L. 96–221 struck out limitation on payment of cumulative dividends at a rate not exceeding 6 per centum per annum. EXCEPTION AS TO TRANSFER OF FUNCTIONS Functions vested by any provision of law in Comp- troller 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. § 51c. ‘‘Common stock’’, ‘‘capital’’, and ‘‘capital stock’’ defined The term ‘‘common stock’’ as used in sections 51a, 51b, 51c, and 51d 1 of this title means stock of national banking associations other than pre- ferred stock issued under the provisions of said sections. The term ‘‘capital’’ as used in provi- sions of law relating to the capital of national banking associations shall mean the amount of unimpaired common stock plus the amount of preferred stock outstanding and unimpaired; and the term ‘‘capital stock’’, as used in sec- tions 101, 177, and 178 1 of this title, shall mean only the amount of common stock outstanding. (Mar. 9, 1933, ch. 1, title III, § 303, 48 Stat. 5.) REFERENCES IN TEXT Section 51d of this title, referred to in text, was re- pealed by act June 30, 1947, ch. 166, title II, § 206(b), (o), 61 Stat. 208. For effect of the repeal on outstanding de- bentures held by banks, see note under section 51b–1 of this title. Sections 101, 177, and 178 of this title, referred to in text, were repealed by Pub. L. 103–325, title VI, § 602(f)(2), (5), Sept. 23, 1994, 108 Stat. 2292, 2293. §§ 51d to 51f. Repealed. June 30, 1947, ch. 166, title II, § 206(b), (o), 61 Stat. 208 Section 51d, acts Mar. 9, 1933, ch. 1, title III, § 304, 48 Stat. 6; Mar. 24, 1933, ch. 8, § 2, 48 Stat. 21; Mar. 20, 1936, ch. 160, § 1, 49 Stat. 1185; June 25, 1940, ch. 427, § 1, 54 Stat. 572, related to subscription for and sale of pre- ferred stock in banks by the Reconstruction Finance Corporation. Sections 51e and 51f, act Mar. 20, 1936, ch. 160, §§ 2, 3, 49 Stat. 1185, related to rate of interest on loans and separability provisions. § 52. Par value and incidents of stock; transfer of shares The capital stock of each association shall be divided into shares of $100 each, or into shares of such less amount as may be provided in the arti- cles of association, and be deemed personal prop- erty, and transferable on the books of the asso- ciation in such manner as may be prescribed in the by-laws or articles of association. Every per- son becoming a shareholder by such transfer shall, in proportion to his shares, succeed to all rights and liabilities of the prior holder of such shares; and no change shall be made in the arti- cles of association by which the rights, rem- edies, or security of the existing creditors of the association shall be impaired. Certificates issued after August 23, 1935, rep- resenting shares of stock of the association shall state (1) the name and location of the associa- tion, (2) the name of the holder of record of the stock represented thereby, (3) the number and class of shares which the certificate represents, and (4) if the association shall issue stock of more than one class, the respective rights, pref- erences, privileges, voting rights, powers, re- strictions, limitations, and qualifications of each class of stock issued shall be stated in full or in summary upon the front or back of the cer- tificates or shall be incorporated by a reference to the articles of association set forth on the front of the certificates. Every certificate shall be signed by the president and the cashier of the association, or by such other officers as the by- laws of the association shall provide, and shall be sealed with the seal of the association. After August 23, 1935, no certificate evidencing the stock of any such association shall bear any statement purporting to represent the stock of any other corporation, except a member bank or a corporation engaged on June 16, 1934, in hold- ing the bank premises of such association, nor shall the ownership, sale, or transfer of any cer- tificate representing the stock of any such asso- ciation be conditioned in any manner whatso- ever upon the ownership, sale, or transfer of a certificate representing the stock of any other corporation, except a member bank or a cor- poration engaged on June 16, 1934 in holding the bank premises of such association: Provided, That this section shall not operate to prevent the ownership, sale, or transfer of stock of any other corporation being conditioned upon the ownership, sale, or transfer of a certificate rep- resenting stock of a national banking associa- tion. (R.S. § 5139; Feb. 25, 1927, ch. 191, § 16, 44 Stat. 1233; June 16, 1933, ch. 89, § 18, 48 Stat. 186; Aug. 23, 1935, ch. 614, title III, §§ 310(a), 335, 49 Stat. 710, 720.) CODIFICATION R.S. § 5139 derived from act June 3, 1864, ch. 106, § 12, 13 Stat. 102, which was the National Bank Act. See sec- tion 38 of this title. AMENDMENTS 1935—Act Aug. 23, 1935, § 335, added second par. Act Aug. 23, 1935, § 310(a), among other changes in last par., inserted proviso. 1933—Act June 16, 1933, added last par. 1927—Act Feb. 25, 1927, inserted ‘‘or into shares of such less amount as may be provided in the articles of association’’ in first sentence. Page 35 TITLE 12—BANKS AND BANKING § 62 this section the term ‘net profits’ shall mean the re- mainder of all earnings from current operations plus actual recoveries on loans and investments and other assets, after deducting from the total thereof all cur- rent operating expenses, actual losses, accrued divi- dends on preferred stock, if any, and all Federal and State taxes.’’ 1959—Pub. L. 86–230 designated existing provisions as subsec. (a), authorized the declaration of dividends, quarterly and annually, when at least one-tenth of the bank’s net profits of the preceding half year or of the preceding two consecutive half-year periods has been carried to the surplus fund, respectively, and added subsecs. (b) and (c). 1935—Act Aug. 23, 1935, among other changes, inserted proviso. § 61. Shareholders’ voting rights; cumulative and distributive voting; preferred stock; trust shares; proxies, liability restrictions; per- centage requirement exclusion of trust shares In all elections of directors, each shareholder shall have the right to vote the number of shares owned by him for as many persons as there are directors to be elected, or, if so pro- vided by the articles of association of the na- tional bank, to cumulate such shares and give one candidate as many votes as the number of directors multiplied by the number of his shares shall equal or to distribute them on the same principle among as many candidates as he shall think fit; and in deciding all other questions at meetings of shareholders, each shareholder shall be entitled to one vote on each share of stock held by him; except that (1) this shall not be construed as limiting the voting rights of hold- ers of preferred stock under the terms and provi- sions of articles of association, or amendments thereto, adopted pursuant to the provisions of section 51b of this title; (2) in the election of di- rectors, shares of its own stock held by a na- tional bank as sole trustee, whether registered in its own name as such trustee or in the name of its nominee, shall not be voted by the reg- istered owner unless under the terms of the trust the manner in which such shares shall be voted may be determined by a donor or bene- ficiary of the trust and unless such donor or ben- eficiary actually directs how such shares shall be voted; and (3) shares of its own stock held by a national bank and one or more persons as trustees may be voted by such other person or persons, as trustees, in the same manner as if he or they were the sole trustee. Shareholders may vote by proxies duly authorized in writing; but no officer, clerk, teller, or bookkeeper of such bank shall act as proxy; and no shareholder whose liability is past due and unpaid shall be allowed to vote. Whenever shares of stock can- not be voted by reason of being held by the bank as sole trustee such shares shall be excluded in determining whether matters voted upon by the shareholders were adopted by the requisite per- centage of shares. (R.S. § 5144; June 16, 1933, ch. 89, § 19, 48 Stat. 186; Aug. 23, 1935, ch. 614, title III, § 311, 49 Stat. 710; Sept. 3, 1954, ch. 1263, § 21, 68 Stat. 1234; Pub. L. 86–114, § 4, July 28, 1959, 73 Stat. 264; Pub. L. 89–485, § 13(c), July 1, 1966, 80 Stat. 242; Pub. L. 109–351, title III, § 301, Oct. 13, 2006, 120 Stat. 1969.) CODIFICATION R.S. § 5144 derived from act June 3, 1864, ch. 106, § 11, 13 Stat. 102, which was the National Bank Act. See sec- tion 38 of this title. AMENDMENTS 2006—Pub. L. 109–351 substituted ‘‘or, if so provided by the articles of association of the national bank, to cu- mulate’’ for ‘‘or to cumulate’’ and struck out comma after ‘‘his shares shall equal’’. 1966—Pub. L. 89–485 struck out: clause (4) requirement of a voting permit from the Board for voting shares controlled by a holding company affiliate of a national bank except when voting in favor of voluntary liquida- tion of an association; second par. definition of control of shares by a holding company affiliate; third par, pre- scribing procedure for obtaining a voting permit: appli- cation to Board, grant or denial of permit in the public interest, factors for consideration, and conditions de- scribed in subsecs. (a) to (e) for granting a permit; sub- sec. (a) requirement of agreement of the holding com- pany affiliate to an examination of the affiliate by bank examiners, reports by such examiners, examina- tion of affiliated banks, and publication of individual or consolidated statements of condition of such banks; subsec. (b) provisions for possession of readily market- able assets other than bank stock and reinvestment of a prescribed amount of net earnings in such assets; sub- sec. (c) provisions for reserve of assets, use of assets for capital replacement, and situations involving more than one holding company affiliate; subsec. (d) provi- sions for penalties for false entries; subsec. (e) require- ments for disclosure in application of a absence of secu- rities company status and for declaration of dividends out of net earnings; penultimate par. prescribing proce- dure for revocation of voting permit and prohibiting the use of the bank as a depositary for public moneys of the United States and payment of dividends to the affiliate; and last par. authorization for forfeiture of rights, privileges, and franchises of national banks. 1959—Subsec. (c). Pub. L. 86–114 authorized the Board to designate one of the chain of holding company affili- ates which would have to maintain the 12 percent re- serve and exempted the other holding company affili- ates from the requirement. 1954—Subsec. (d). Act Sept. 3, 1954, substituted ‘‘sec- tion 1005 of Title 18’’ for ‘‘section 592 of this title’’. 1935—Act Aug. 23, 1935, amended first par., first sen- tence of third par., and inserted ‘‘and the provisions of this subsection, instead of subsection (b), shall apply to all holding company affiliates with respect to any shares of bank stock owned or controlled by them as to which there is no statutory liability imposed upon the holders of such bank stock’’ at end of subsec. (c). 1933—Act June 16, 1933, inserted provisions for cumu- lative voting of shares or distribution of votes on a cu- mulative voting principle, prohibited national banks holding their own shares as sole trustee from voting such shares but permitted such shares to be voted when held by another person or persons as trustees with the bank, denied voting rights to shares controlled by a holding company affiliate of a national bank unless a voting permit was first obtained, provided for applica- tion for a voting permit to the Federal Reserve Board, specified conditions for granting the voting permit and procedure for its revocation, and authorized the forfeit- ure of a National Bank’s rights, privileges, and fran- chises upon such revocation. § 62. List of shareholders The president and cashier of every national banking association shall cause to be kept at all times a full and correct list of the names and residences of all the shareholders in the associa- tion, and the number of shares held by each, in the office where its business is transacted. Such list shall be subject to the inspection of all the shareholders and creditors of the association, Page 36 TITLE 12—BANKS AND BANKING §§ 63, 64 1 So in original. Probably should be ‘‘fails’’. 2 So in original. Probably should be ‘‘months’’. and the officers authorized to assess taxes under State authority, during business hours of each day in which business may be legally trans- acted. A copy of such list, verified by the oath of such president or cashier, shall be transmit- ted to the Comptroller of the Currency within ten days of any demand therefor made by him. (R.S. § 5210; May 18, 1953, ch. 59, § 1, 67 Stat. 27.) CODIFICATION R.S. § 5210 derived from act June 3, 1864, ch. 106, § 40, 13 Stat. 111, which was the National Bank Act. See sec- tion 38 of this title. AMENDMENTS 1953—Act May 18, 1953, changed the requirement for annual transmission of a copy of the shareholders list to the Comptroller of the Currency by authorizing the Comptroller to acquire such copy at any time on 10 days’ notice. EXCEPTION AS TO TRANSFER OF FUNCTIONS Functions vested by any provision of law in Comp- troller 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. APPLICATION TO DISTRICT OF COLUMBIA Provisions of this section were made applicable to banks, etc., in the District of Columbia by act Mar. 4, 1933, ch. 274, § 4, 47 Stat. 1567. §§ 63, 64. Repealed. Pub. L. 86–230, § 7, Sept. 8, 1959, 73 Stat. 457 Section 63, R.S. § 5151, related to individual liability of shareholders. Section 64, act Dec. 23, 1913, ch. 6, § 23, 38 Stat. 273, re- lated to transfer of shares as affecting individual liabil- ity of shareholders. Limitation on liability of share- holders, see section 64a of this title. The status of former section 63 of this title had been doubtful. At different times it had been held to have been repealed, superseded, and superseded only in part by former section 64 of this title which related to the same subject. See American T. Co. v. Grut, C.C.A. 1935, 80 F.2d 155; Miller v. Hamner, C.C.A. 1920, 269 F. 891; and First Nat. Bank v. First Nat. Bank, D.C. 1926, 14 F.2d 129. § 64a. Individual liability of shareholders; limita- tion on liability The additional liability imposed upon share- holders in national banking associations by the provisions of sections 63 and 64 of this title shall not apply with respect to shares in any such as- sociation issued after June 16, 1933. Such addi- tional liability shall cease on July 1, 1937, with respect to all shares issued by any association which shall be transacting the business of bank- ing on July 1, 1937: Provided, That not less than six months prior to such date, such association shall have caused notice of such prospective ter- mination of liability to be published in a news- paper published in the city, town, or county in which such association is located, and if no newspaper is published in such city, town, or county, then in a newspaper of general circula- tion therein. If the association fail 1 to give such notice as and when above provided, a termi- nation of such additional liability may there- after be accomplished as of the date six month 2 subsequent to publication, in the manner above provided. In the case of each association which has not caused notice of such prospective termi- nation of liability to be published prior to May 18, 1953, the Comptroller of the Currency shall cause such notice to be published in the manner provided in this section, and on the date six months subsequent to such publication by the Comptroller of the Currency such additional li- ability shall cease. (June 16, 1933, ch. 89, § 22, 48 Stat. 189; Aug. 23, 1935, ch. 614, title III, § 304, 49 Stat. 708; May 18, 1953, ch. 59, § 2, 67 Stat. 27.) REFERENCES IN TEXT Sections 63 and 64 of this title, referred to in text, were repealed by Pub. L. 86–230, § 7, Sept. 8, 1959, 73 Stat. 457. AMENDMENTS 1953—Act May 18, 1953, provided for termination of the additional liability, referred to in the section, by action of the Comptroller of the Currency with regard to those associations which had not, prior to May 18, 1953, caused notice of termination to be published. 1935—Act Aug. 23, 1935, added second and third sen- tences. EXCEPTION AS TO TRANSFER OF FUNCTIONS Functions vested by any provision of law in Comp- troller 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. § 65. Repealed. Pub. L. 86–230, § 8, Sept. 8, 1959, 73 Stat. 457 Section, acts June 30, 1876, ch. 156, § 2, 19 Stat. 63; Sept. 3, 1954, ch. 1263, § 22, 68 Stat. 1234, related to en- forcement of shareholders’ individual liability by credi- tors on liquidation. Limitation on liability of share- holders, see section 64a of this title. § 66. Personal liability of representatives of stockholders Persons holding stock as executors, adminis- trators, guardians, or trustees, shall not be per- sonally subject to any liabilities as stockhold- ers; but the estates and funds in their hands shall be liable in like manner and to the same extent as the testator, intestate, ward, or person interested in such trust funds would be, if living and competent to act and hold the stock in his own name. (R.S. § 5152.) CODIFICATION R.S. § 5152 derived from act June 3, 1864, ch. 106, § 63, 13 Stat. 118, which was the National Bank Act. See sec- tion 38 of this title. § 67. Individual liability of shareholders; com- promises; authority of receiver Any receiver of a national banking association is authorized, with the approval of the Comp- troller of the Currency and upon the order of a court of record of competent jurisdiction, to compromise, either before or after judgment, the individual liability of any shareholder of such association. (Feb. 25, 1930, ch. 58, 46 Stat. 74.) EXCEPTION AS TO TRANSFER OF FUNCTIONS Functions vested by any provision of law in Comp- troller of the Currency, referred to in this section, not Page 37 TITLE 12—BANKS AND BANKING § 72 included in transfer to Secretary of the Treasury, see note set out under section 1 of this title. APPLICATION TO DISTRICT OF COLUMBIA Provisions of this section were made applicable to banks, etc., in the District of Columbia by act Mar. 4, 1933, ch. 274, § 4, 47 Stat. 1567. SUBCHAPTER III—DIRECTORS § 71. Election The affairs of each association shall be man- aged by not less than five directors, who shall be elected by the shareholders at a meeting to be held at any time before the association is au- thorized by the Comptroller of the Currency to commence the business of banking; and after- ward at meetings to be held on such day of each year as is specified therefor in the bylaws. The directors shall hold office for a period of not more than 3 years, and until their successors are elected and have qualified. In accordance with regulations issued by the Comptroller of the Currency, a national bank may adopt bylaws that provide for staggering the terms of its di- rectors. (R.S. § 5145; Pub. L. 88–232, § 1, Dec. 23, 1963, 77 Stat. 472; Pub. L. 106–569, title XII, § 1205(a), Dec. 27, 2000, 114 Stat. 3033.) CODIFICATION R.S. § 5145 derived from act June 3, 1864, ch. 106, §§ 9, 10, 13 Stat. 102, which was the National Bank Act. See section 38 of this title. AMENDMENTS 2000—Pub. L. 106–569 substituted ‘‘for a period of not more than 3 years’’ for ‘‘for one year’’ and inserted at end ‘‘In accordance with regulations issued by the Comptroller of the Currency, a national bank may adopt bylaws that provide for staggering the terms of its directors.’’ 1963—Pub. L. 88–232 substituted ‘‘on such day of each year as is specified therefor in the bylaws’’ for ‘‘on such day in January of each year as is specified therefor in the articles of association’’. EXCEPTION AS TO TRANSFER OF FUNCTIONS Functions vested by any provision of law in Comp- troller 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. § 71a. Number of directors; penalties After one year from June 16, 1933, notwith- standing any other provision of law, the board of directors, board of trustees, or other similar governing body of every national banking asso- ciation and of every State bank or trust com- pany which is a member of the Federal Reserve System shall consist of not less than five nor more than twenty-five members, except that the Comptroller of the Currency may, by regulation or order, exempt a national bank from the 25- member limit established by this section. If any national banking association violates the provi- sions of this section and continues such viola- tion after thirty days’ notice from the Comp- troller of the Currency, the said Comptroller may appoint a receiver or conservator therefor, in accordance with the provisions of existing law. If any State bank or trust company which is a member of the Federal Reserve System vio- lates the provisions of this section and con- tinues such violation after thirty days’ notice from the Board of Governors of the Federal Re- serve System, it shall be subject to the forfeit- ure of its membership in the Federal Reserve System in accordance with the provisions of sec- tion 327 of this title. (June 16, 1933, ch. 89, § 31, 48 Stat. 194; June 16, 1934, ch. 546, § 4, 48 Stat. 971; Aug. 23, 1935, ch. 614, title II, § 203(a), title III, § 306, 49 Stat. 704, 708; Pub. L. 106–569, title XII, § 1205(b), Dec. 27, 2000, 114 Stat. 3034.) AMENDMENTS 2000—Pub. L. 106–569 inserted before period at end of first sentence ‘‘, except that the Comptroller of the Currency may, by regulation or order, exempt a na- tional bank from the 25-member limit established by this section’’. 1935—Act June 16, 1934, as amended by act Aug. 23, 1935, § 306, repealed a former provision of this section relating to stock ownership requirements of directors, trustees, or members of similar governing bodies of any national banking association, or of any State bank or trust company which is a member of the Federal Re- serve System. 1934—Act June 16, 1934, repealed a former provision of this section relating to stock ownership requirements of directors, trustees, or members of similar governing bodies of member banks of the Federal Reserve System. CHANGE 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. EXCEPTION AS TO TRANSFER OF FUNCTIONS Functions vested by any provision of law in Comp- troller 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. § 72. Qualifications Every director must, during his whole term of service, be a citizen of the United States, and at least a majority of the directors must have re- sided in the State, Territory, or District in which the association is located, or within one hundred miles of the location of the office of the association, for at least one year immediately preceding their election, and must be residents of such State or within one-hundred-mile terri- tory of the location of the association during their continuance in office, except that the Comptroller may, in the discretion of the Comp- troller, waive the requirement of residency, and waive the requirement of citizenship in the case of not more than a minority of the total number of directors. Every director must own in his or her own right either shares of the capital stock of the association of which he or she is a direc- tor the aggregate par value of which is not less than $1,000, or an equivalent interest, as deter- mined by the Comptroller of the Currency, in any company which has control over such asso- ciation within the meaning of section 1841 of this title. If the capital of the bank does not ex- ceed $25,000, every director must own in his or her own right either shares of such capital stock the aggregate par value of which is not less than $500, or an equivalent interest, as determined by the Comptroller of the Currency, in any com- pany which has control over such association Page 40 TITLE 12—BANKS AND BANKING § 84 count on the security of the shares of its own capital stock if it acquires the stock to prevent loss upon a debt previously contracted for in good faith. (R.S. § 5201; Pub. L. 106–569, title XII, § 1207(a), Dec. 27, 2000, 114 Stat. 3034.) CODIFICATION R.S. § 5201 derived from act June 3, 1864, ch. 106, § 35, 13 Stat. 110, which was the National Bank Act. See sec- tion 38 of this title. AMENDMENTS 2000—Pub. L. 106–569 amended section catchline and text generally. Prior to amendment, text read as fol- lows: ‘‘No association shall make any loan or discount on the security of the shares of its own capital stock, nor be the purchaser or holder of any such shares, un- less such security or purchase shall be necessary to pre- vent loss upon a debt previously contracted in good faith; and stock so purchased or acquired shall, within six months from the time of its purchase, be sold or dis- posed of at public or private sale; or, in default thereof, a receiver may be appointed to close up the business of the association, according to section 192 of this title.’’ § 84. Lending limits (a) Total loans and extensions of credit (1) The total loans and extensions of credit by a national banking association to a person out- standing at one time and not fully secured, as determined in a manner consistent with para- graph (2) of this subsection, by collateral having a market value at least equal to the amount of the loan or extension of credit shall not exceed 15 per centum of the unimpaired capital and un- impaired surplus of the association. (2) The total loans and extensions of credit by a national banking association to a person out- standing at one time and fully secured by read- ily marketable collateral having a market value, as determined by reliable and continu- ously available price quotations, at least equal to the amount of the funds outstanding shall not exceed 10 per centum of the unimpaired capital and unimpaired surplus of the association. This limitation shall be separate from and in addi- tion to the limitation contained in paragraph (1) of this subsection. (b) Definitions For the purposes of this section— (1) the term ‘‘loans and extensions of credit’’ shall include all direct or indirect advances of funds to a person made on the basis of any ob- ligation of that person to repay the funds or repayable from specific property pledged by or on behalf of the person and, to the extent spec- ified by the Comptroller of the Currency, such term shall also include any liability of a na- tional banking association to advance funds to or on behalf of a person pursuant to a contrac- tual commitment; and (2) the term ‘‘person’’ shall include an indi- vidual, sole proprietorship, partnership, joint venture, association, trust, estate, business trust, corporation, sovereign government or agency, instrumentality, or political subdivi- sion thereof, or any similar entity or organiza- tion. (c) Exceptions The limitations contained in subsection (a) of this section shall be subject to the following ex- ceptions: (1) Loans or extensions of credit arising from the discount of commercial or business paper evidencing an obligation to the person nego- tiating it with recourse shall not be subject to any limitation based on capital and surplus. (2) The purchase of bankers’ acceptances of the kind described in section 372 of this title and issued by other banks shall not be subject to any limitation based on capital and surplus. (3) Loans and extensions of credit secured by bills of lading, warehouse receipts, or similar documents transferring or securing title to readily marketable staples shall be subject to a limitation of 35 per centum of capital and surplus in addition to the general limitations if the market value of the staples securing each additional loan or extension of credit at all times equals or exceeds 115 per centum of the outstanding amount of such loan or exten- sion of credit. The staples shall be fully cov- ered by insurance whenever it is customary to insure such staples. (4) Loans or extensions of credit secured by bonds, notes, certificates of indebtedness, or Treasury bills of the United States or by other such obligations fully guaranteed as to prin- cipal and interest by the United States shall not be subject to any limitation based on cap- ital and surplus. (5) Loans or extensions of credit to or se- cured by unconditional takeout commitments or guarantees of any department, agency, bu- reau, board, commission, or establishment of the United States or any corporation wholly owned directly or indirectly by the United States shall not be subject to any limitation based on capital and surplus. (6) Loans or extensions of credit secured by a segregated deposit account in the lending bank shall not be subject to any limitation based on capital and surplus. (7) Loans or extensions of credit to any fi- nancial institution or to any receiver, con- servator, superintendent of banks, or other agent in charge of the business and property of such financial institution, when such loans or extensions of credit are approved by the Comp- troller of the Currency, shall not be subject to any limitation based on capital and surplus. (8)(A) Loans and extensions of credit arising from the discount of negotiable or nonnego- tiable installment consumer paper which car- ries a full recourse endorsement or uncondi- tional guarantee by the person transferring the paper shall be subject under this section to a maximum limitation equal to 25 per centum of such capital and surplus, notwithstanding the collateral requirements set forth in sub- section (a)(2) of this section. (B) If the bank’s files or the knowledge of its officers of the financial condition of each maker of such consumer paper is reasonably adequate, and an officer of the bank des- ignated for that purpose by the board of direc- tors of the bank certifies in writing that the bank is relying primarily upon the responsibil- ity of each maker for payment of such loans or Page 41 TITLE 12—BANKS AND BANKING § 84 extensions of credit and not upon any full or partial recourse endorsement or guarantee by the transferor, the limitations of this section as to the loans or extensions of credit of each such maker shall be the sole applicable loan limitations. (9)(A) Loans and extensions of credit secured by shipping documents or instruments trans- ferring or securing title covering livestock or giving a lien on livestock when the market value of the livestock securing the obligation is not at any time less than 115 per centum of the face amount of the note covered, shall be subject under this section, notwithstanding the collateral requirements set forth in sub- section (a)(2) of this section, to a maximum limitation equal to 25 per centum of such cap- ital and surplus. (B) Loans and extensions of credit which arise from the discount by dealers in dairy cattle of paper given in payment for dairy cat- tle, which paper carries a full recourse en- dorsement or unconditional guarantee of the seller, and which are secured by the cattle being sold, shall be subject under this section, notwithstanding the collateral requirements set forth in subsection (a)(2) of this section, to a limitation of 25 per centum of such capital and surplus. (10) Loans or extensions of credit to the Stu- dent Loan Marketing Association shall not be subject to any limitation based on capital and surplus. (d) Authority of Comptroller of the Currency (1) The Comptroller of the Currency may pre- scribe rules and regulations to administer and carry out the purposes of this section, including rules or regulations to define or further define terms used in this section and to establish lim- its or requirements other than those specified in this section for particular classes or categories of loans or extensions of credit. (2) The Comptroller of the Currency also shall have authority to determine when a loan puta- tively made to a person shall for purposes of this section be attributed to another person. (R.S. § 5200; June 22, 1906, ch. 3516, 34 Stat. 451; Sept. 24, 1918, ch. 176, § 6, 40 Stat. 967; Oct. 22, 1919, ch. 79, § 1, 41 Stat. 296; Feb. 25, 1927, ch. 191, § 10, 44 Stat. 1229; May 20, 1933, ch. 35, § 1, 48 Stat. 73; June 16, 1933, ch. 89, § 26(a), 48 Stat. 191; Aug. 23, 1935, ch. 614, title III, § 321(b), 49 Stat. 713; June 11, 1942, ch. 404, § 8, 56 Stat. 356; July 15, 1949, ch. 338, title VI, § 602(b), 63 Stat. 440; July 22, 1937, ch. 517, § 15(a), as added Aug. 14, 1946, ch. 964, § 5, 60 Stat. 1079; amended Pub. L. 85–748, § 1(c), Aug. 25, 1958, 72 Stat. 841; Pub. L. 86–251, § 3, Sept. 9, 1959, 73 Stat. 488; Pub. L. 87–723, § 4(c)(4), Sept. 28, 1962, 76 Stat. 672; Pub. L. 90–19, § 27(b), May 25, 1967, 81 Stat. 29; Pub. L. 92–318, title I, § 133(c)(2), June 23, 1972, 86 Stat. 270; Pub. L. 97–320, title IV, § 401(a), Oct. 15, 1982, 96 Stat. 1508; Pub. L. 97–457, § 17(a), Jan. 12, 1983, 96 Stat. 2509; Pub. L. 111–203, title VI, § 610(a), July 21, 2010, 124 Stat. 1611.) AMENDMENT OF SUBSECTION (b) Pub. L. 111–203, title VI, § 610(a), (c), July 21, 2010, 124 Stat. 1611, 1612, provided that, effec- tive 1 year after the transfer date, subsection (b) of this section is amended: (1) in paragraph (1), by substituting ‘‘shall include— ‘‘(A) all direct or indirect advances of funds to a person made on the basis of any obligation of that person to repay the funds or repayable from specific property pledged by or on behalf of the person; ‘‘(B) to the extent specified by the Comptroller of the Currency, any liability of a national banking association to advance funds to or on behalf of a person pursuant to a contractual commitment; and ‘‘(C) any credit exposure to a person arising from a derivative transaction, repurchase agree- ment, reverse repurchase agreement, securities lending transaction, or securities borrowing transaction between the national banking asso- ciation and the person;’’ for ‘‘shall include’’ and all that follows through the end of the paragraph; (2) in paragraph (2), by substituting ‘‘; and’’ for the period at the end; and (3) by adding at the end the following: ‘‘(3) the term ‘derivative transaction’ includes any transaction that is a contract, agreement, swap, warrant, note, or option that is based, in whole or in part, on the value of, any interest in, or any quantitative measure or the occurrence of any event relating to, one or more commodities, securities, currencies, interest or other rates, indi- ces, or other assets.’’ See Effective Date of 2010 Amendment note below. REFERENCES IN TEXT Section 372 of this title, referred to in subsec. (c)(2), was in the original a reference to ‘‘section 13 of the Federal Reserve Act’’. Provisions of section 13 describ- ing bankers’ acceptances are classified to section 372 of this title. Other provisions of section 13 are classified to sections 342 to 347, 347c, 347d of this title. CODIFICATION R.S. § 5200 derived from act June 3, 1864, ch. 106, § 29, 13 Stat. 108, which was the National Bank Act. See sec- tion 38 of this title. AMENDMENTS 1983—Subsec. (b)(1). Pub. L. 97–457 inserted a comma before ‘‘to the extent specified by the Comptroller of the Currency’’. 1982—Pub. L. 97–320 amended section generally. Prior to amendment, section read as follows: ‘‘The total obli- gations to any national banking association of any per- son, copartnership, association, or corporation shall at no time exceed 10 per centum of the amount of the cap- ital stock of such association actually paid in and un- impaired and 10 per centum of its unimpaired surplus fund. The term ‘obligations’ shall mean the direct li- ability of the maker or acceptor of paper discounted with or sold to such association and the liability of the indorser, drawer, or guarantor who obtains a loan from or discounts paper with or sells paper under his guar- anty to such association and shall include in the case of obligations of a copartnership or association the ob- ligations of the several members thereof and shall in- clude in the case of obligations of a corporation all ob- ligations of all subsidiaries thereof in which such cor- poration owns or controls a majority interest. Such limitation of 10 per centum shall be subject to the fol- lowing exceptions: ‘‘(1) Obligations in the form of drafts or bills of ex- change drawn in good faith against actually existing values shall not be subject under this section to any limitation based upon such capital and surplus. Page 42 TITLE 12—BANKS AND BANKING § 84 ‘‘(2) Obligations arising out of the discount of com- mercial or business paper actually owned by the per- son, copartnership, association, or corporation nego- tiating the same shall not be subject under this sec- tion to any limitation based upon such capital and surplus. ‘‘(3) Obligations drawn in good faith against actu- ally existing values and secured by goods or commod- ities in process of shipment shall not be subject under this section to any limitation based upon such cap- ital and surplus. ‘‘(4) Obligations as indorser or guarantor of notes, other than commercial or business paper excepted under paragraph (2) of this section, having a maturity of not more than six months, and owned by the per- son, corporation, association, or copartnership in- dorsing and negotiating the same, shall be subject under this section to a limitation of 15 per centum of such capital and surplus in addition to such 10 per centum of such capital and surplus. ‘‘(5) Obligations in the form of banker’s acceptances of other banks of the kind described in section 372 of this title shall not be subject under this section to any limitation based upon such capital and surplus. ‘‘(6) Obligations of any person, copartnership, asso- ciation or corporation, in the form of notes or drafts secured by shipping documents, warehouse receipts or other such documents transferring or securing title covering readily marketable nonperishable staples when such property is fully covered by insurance, if it is customary to insure such staples, shall be sub- ject under this section to a limitation of 15 per cen- tum of such capital and surplus in addition to such 10 per centum of such capital and surplus when the mar- ket value of such staples securing such obligation is not at any time less than 115 per centum of the face amount of such obligation, and to an additional in- crease of limitation of 5 per centum of such capital and surplus in addition to such 25 per centum of such capital and surplus when the market value of such staples securing such additional obligation is not at any time less than 120 per centum of the face amount of such additional obligation, and to a further addi- tional increase of limitation of 5 per centum of such capital and surplus in addition to such 30 per centum of such capital and surplus when the market value of such staples securing such additional obligation is not at any time less than 125 per centum of the face amount of such additional obligation, and to a fur- ther additional increase of limitation of 5 per centum of such capital and surplus in addition to such 35 per centum of such capital and surplus when the market value of such staples securing such additional obliga- tion is not at any time less than 130 per centum of the face amount of such additional obligation, and to a further additional increase of limitation of 5 per centum of such capital and surplus in addition to such 40 per centum of such capital and surplus when the market value of such staples securing such addi- tional obligation is not at any time less than 135 per centum of the face amount of such additional obliga- tion, and to a further additional increase of limita- tion of 5 per centum of such capital and surplus in ad- dition to such 45 per centum of such capital and sur- plus when the market value of such staples securing such additional obligation is not at any time less than 140 per centum of the face amount of such addi- tional obligation, but this exception shall not apply to obligations of any one person, copartnership, asso- ciation, or corporation arising from the same trans- actions and/or secured by the identical staples for more than ten months. Obligations of any person, co- partnership, association, or corporation in the form of notes or drafts secured by shipping documents, warehouse receipts, or other such documents trans- ferring or securing title covering refrigerated or fro- zen readily marketable staples when such property is fully covered by insurance, shall be subject under this section to a limitation of 15 per centum of such cap- ital and surplus in addition to such 10 per centum of such capital and surplus when the market value of such staples securing such obligation is not at any time less than 115 per centum of the face amount of such additional obligation, but this exception shall not apply to obligations of any one person, copartner- ship, association or corporation arising from the same transactions and/or secured by the identical staples for more than six months. ‘‘(7) Obligations of any person, copartnership, asso- ciation, or corporation in the form of notes or drafts secured by shipping documents or instruments trans- ferring or securing title covering livestock or giving a lien on livestock when the market value of the live- stock securing the obligation is not at any time less than 115 per centum of the face amount of the notes covered by such documents shall be subject under this section to a limitation of 15 per centum of such capital and surplus in addition to such 10 per centum of such capital and surplus. Obligations arising out of the discount by dealers in dairy cattle of paper given in payment for dairy cattle, which bear a full re- course endorsement or unconditional guarantee of the seller and are secured by the cattle being sold, shall be subject under this section to a limitation of 15 per centum of such capital and surplus in addition to such 10 per centum of such capital and surplus. ‘‘(8) Obligations of any person, copartnership, asso- ciation, or corporation secured by not less than a like amount of bonds or notes of the United States issued since April 24, 1917, or certificates of indebtedness of the United States, Treasury bills of the United States, or obligations fully guaranteed both as to principal and interest by the United States, shall (ex- cept to the extent permitted by rules and regulations prescribed by the Comptroller of the Currency, with the approval of the Secretary of the Treasury) be sub- ject under this section to a limitation of 15 per cen- tum of such capital and surplus in addition to such 10 per centum of such capital and surplus. ‘‘(9) Obligations representing loans to any national banking association or to any banking institution or- ganized under the laws of any State, or to any re- ceiver, conservator, or superintendent of banks, or to any other agent, in charge of the business and prop- erty of any such association or banking institution, when such loans are approved by the Comptroller of the Currency, shall not be subject under this section to any limitation based upon such capital and sur- plus. ‘‘(10) Obligations shall not be subject under this section to any limitation based upon such capital and surplus to the extent that such obligations are se- cured or covered by guaranties, or by commitments or agreements to take over or to purchase, made by any Federal Reserve bank or by the United States or any department, bureau, board, commission, or estab- lishment of the United States, including any corpora- tion wholly owned directly or indirectly by the United States: Provided, That such guaranties, agree- ments, or commitments are unconditional and must be performed by payment of cash or its equivalent within sixty days after demand. The Comptroller of the Currency is authorized to define the terms herein used if and when he may deem it necessary. ‘‘(11) Obligations of a local public agency (as de- fined in section 110(h) of the Housing Act of 1949 [42 U.S.C. 1460(h)]) or of a public housing agency (as de- fined in the United States Housing Act of 1937, as amended [42 U.S.C. 1437 et seq.]) which have a matu- rity of not more than eighteen months shall not be subject under this section to any limitation, if such obligations are secured by an agreement between the obligor agency and the Secretary of Housing and Urban Development in which the agency agrees to borrow from the Secretary, and the Secretary agrees to lend to the agency, prior to the maturity of such obligations, monies in an amount which (together with any other monies irrevocably committed to the payment of interest on such obligations) will suffice to pay the principal of such obligations with interest Page 45 TITLE 12—BANKS AND BANKING § 90 371b–1, 1730e, and 1831a of this title and notes set out under sections 371b–1 and 1831a of this title, and en- acted provisions set out as notes under this section and sections 86a, 371b–1, and 1831a of this title], the amend- ment which had been made by title I of Pub. L. 96–104 and the provisions of that title would continue to apply to any loan made in any State on or after Nov. 5, 1979, but prior to the repeal of Pub. L. 96–104, and that the amendments made by title II of Pub. L. 96–104 would continue to apply to any deposit made or obligation is- sued in any State on or after Nov. 5, 1979, but prior to the repeal of Pub. L. 96–104. Section 1 of Pub. L. 96–104 provided in part that, not- withstanding the repeal of titles II and III of Pub. L. 93–501 [which had enacted sections 371b–1, 1730e, and 1831a of this title, amended sections 85, 1425b, and 1828 of this title, and section 687 of Title 15, Commerce and Trade, and enacted provisions set out as notes under sections 371b–1 and 1831a of this title], the amendments which had been made by title II of that Act and the provisions of such title would continue to apply to any loan made in any State during the period specified in section 206 of such Act [set out as a note under section 1831a of this title] and that the amendments which had been made by title III of such Act would continue to apply to any deposit made or obligation issued in any State during the period specified in section 304 of such Act [set out as a note under section 371b–1 of this title]. CHOICE OF HIGHEST APPLICABLE INTEREST RATE In any case in which one or more provisions of, or amendments made by, title V of Pub. L. 96–221 [enact- ing sections 86a, 1730g, 1735f–7a, 1785(g), and 1831d of this title and section 687(i) of Title 15, Commerce and Trade, and enacting provisions set out as notes under sections 86a, 1730g, and 1735f–7 of this title], section 1735f–7 of this title, or any other provisions of law, including this section, apply with respect to the same loan, mortgage, credit sale, or advance, such loan, mortgage, credit sale, or advance may be made at the highest applicable rate, see section 528 of Pub. L. 96–221, set out as a note under section 1735f–7a of this title. STATES HAVING CONSTITUTIONAL PROVISIONS REGARDING MAXIMUM INTEREST RATES Section 213 of Pub. L. 96–161 provided that the provi- sions of title II of Pub. L. 96–161, which amended this section, repealed provisions which had formerly amend- ed this section, and enacted provisions set out as notes under this section, to continue to apply until July 1, 1981, in the case of any State having a constitutional provision regarding maximum interest rates. § 86. Usurious interest; penalty for taking; limita- tions The taking, receiving, reserving, or charging a rate of interest greater than is allowed by sec- tion 85 of this title, when knowingly done, shall be deemed a forfeiture of the entire interest which the note, bill, or other evidence of debt carries with it, or which has been agreed to be paid thereon. In case the greater rate of interest has been paid, the person by whom it has been paid, or his legal representatives, may recover back, in an action in the nature of an action of debt, twice the amount of the interest thus paid from the association taking or receiving the same: Provided, That such action is commenced within two years from the time the usurious transaction occurred. (R.S. § 5198.) CODIFICATION R.S. § 5198 (less last sentence) derived from act June 3, 1864, ch. 106, § 30, 13 Stat. 108, which was the National Bank Act. See section 38 of this title. Section is based on R.S. § 5198, less last sentence as added by act Feb. 18, 1875, ch. 80, § 1, 18 Stat. 320, which is classified to section 94 of this title. § 86a. Omitted CODIFICATION Section, Pub. L. 96–221, title V, § 511, Mar. 31, 1980, 94 Stat. 164; Pub. L. 96–399, title III, § 324(b), (d), Oct. 8, 1980, 94 Stat. 1648, which authorized interest on busi- ness or agricultural loans of $1,000 or more at a rate of not more than 5 per centum in excess of the discount rate, was omitted pursuant to section 512 of Pub. L. 96–221 which made these provisions applicable only with respect to such loans made in any State during the pe- riod beginning on April 1, 1980, and ending on the ear- lier of (1) April 1, 1983, or (2) the date, on or after April 1, 1980, on which such State adopts a law or certifies that the voters of such State have voted in favor of any provision, constitutional or otherwise, which states ex- plicitly that such State does not want these provisions to apply with respect to loans made in such State. A prior section 86a, Pub. L. 96–161, title II, § 205, Dec. 28, 1979, 93 Stat. 1237, similar to this section as enacted by Pub. L. 96–221, was repealed by section 529 of Pub. L. 96–221, effective at the close of Mar. 31, 1980, except that its provisions would continue to apply to any loan made, any deposit made, or any obligation issued in any State during any period when that section was in effect in such State. For the effective date provisions relating to the prior section 86a, see section 207 of Pub. L. 96–161. Another prior section 86a, Pub. L. 96–104, title I, § 105, Nov. 5, 1979, 93 Stat. 791, identical to this section as en- acted by Pub. L. 96–161, was repealed by section 212 of Pub. L. 96–161, effective at the close of Dec. 27, 1979, ex- cept that its provisions would continue to apply to loans made in any State on or after Nov. 5, 1979, but prior to such repeal. Section 301 of Pub. L. 96–104, which limited the appli- cability of Pub. L. 96–104 to those States having a con- stitutional provision that all contracts for a greater rate of interest than 10 per centum per annum are void as to both principal and interest, was repealed by sec- tion 212 of Pub. L. 96–161, effective at the close of Dec. 27, 1979. §§ 87 to 89. Repealed. Pub. L. 103–325, title VI, § 602(e)(2)–(4), Sept. 23, 1994, 108 Stat. 2291 Section 87, R.S. § 5203, related to restriction on use by bank of its circulating notes. Section 88, R.S. § 5206, related to restriction on use by bank of notes of other banks. Section 89, R.S. § 5196, related to duty of bank to re- ceive circulating notes of other banks in payment of debts. § 90. Depositaries of public moneys and financial agents of Government All national banking associations, designated for that purpose by the Secretary of the Treas- ury, shall be depositaries of public money, under such regulations as may be prescribed by the Secretary; and they may also be employed as fi- nancial agents of the Government; and they shall perform all such reasonable duties, as de- positaries of public money and financial agents of the Government, as may be required of them. The Secretary of the Treasury shall require the associations thus designated to give satisfactory security, by the deposit of United States bonds and otherwise, for the safe-keeping and prompt payment of the public money deposited with them, and for the faithful performance of their duties as financial agents of the Government: Provided, That the Secretary shall, on or before Page 46 TITLE 12—BANKS AND BANKING § 91 the 1st of January of each year, make a public statement of the securities required during that year for such deposits. And every association so designated as receiver or depositary of the pub- lic money shall take and receive at par all of the national currency bills, by whatever association issued, which have been paid into the Govern- ment for internal revenue, or for loans or stocks: Provided, That the Secretary of the Treasury shall distribute the deposits herein provided for, as far as practicable, equitably be- tween the different States and sections. Any national banking association may, upon the deposit with it of any funds by any State or political subdivision thereof or any agency or other governmental instrumentality of one or more States or political subdivisions thereof, in- cluding any officer, employee, or agent thereof in his official capacity, give security for the safekeeping and prompt payment of the funds so deposited to the same extent and of the same kind as is authorized by the law of the State in which such association is located in the case of other banking institutions in the State. Any national banking association may, upon the deposit with it of any funds by any federally recognized Indian tribe, or any officer, em- ployee, or agent thereof in his or her official ca- pacity, give security for the safekeeping and prompt payment of the funds so deposited by the deposit of United States bonds and otherwise as may be prescribed by the Secretary of the Treas- ury for public funds under the first paragraph of this section. Notwithstanding chapters 1 to 11 of title 40 and division C (except sections 3302, 3307(e), 3501(b), 3509, 3906, 4710, and 4711) of subtitle I of title 41, the Secretary may select associations as financial agents in accordance with any proc- ess the Secretary deems appropriate and their reasonable duties may include the provision of electronic benefit transfer services (including State-administered benefits with the consent of the States), as defined by the Secretary. (R.S. § 5153; Mar. 3, 1901, ch. 871, 31 Stat. 1448; Mar. 4, 1907, ch. 2913, § 3, 34 Stat. 1290; Dec. 23, 1913, ch. 6, § 27, 38 Stat. 274; Aug. 4, 1914, ch. 225, 38 Stat. 682; June 25, 1930, ch. 604, 46 Stat. 809; Aug. 18, 1950, ch. 754, 64 Stat. 463; Pub. L. 96–153, title III, § 323(f), Dec. 21, 1979, 93 Stat. 1120; Pub. L. 104–208, div. A, title I, § 101(f) [§ 2(1)], Sept. 30, 1996, 110 Stat. 3009–314, 3009–386.) CODIFICATION In text, ‘‘chapters 1 to 11 of title 40 and division C (ex- cept sections 3302, 3307(e), 3501(b), 3509, 3906, 4710, and 4711) of subtitle I of title 41’’ substituted for ‘‘the Fed- eral Property and Administrative Services Act of 1949, as amended’’ on authority of Pub. L. 107–217, § 5(c), Aug. 21, 2002, 116 Stat. 1303, which Act enacted Title 40, Pub- lic Buildings, Property, and Works, and Pub. L. 111–350, § 6(c), Jan. 4, 2011, 124 Stat. 3854, which Act enacted Title 41, Public Contracts. R.S. § 5153 derived from act June 3, 1864, ch. 106, § 45, 13 Stat. 113, which was the National Bank Act. See sec- tion 38 of this title. AMENDMENTS 1996—Pub. L. 104–208 added fourth par. 1979—Pub. L. 96–153 added third par. 1950—Act Aug. 18, 1950, permitted national banks to accept and give security for deposits of funds made by agencies or governmental instrumentalities or States or political subdivisions thereof and by their officers, employees or agents. 1930—Act June 25, 1930, added second par. § 91. Transfers by bank and other acts in con- templation of insolvency All transfers of the notes, bonds, bills of ex- change, or other evidences of debt owing to any national banking association, or of deposits to its credit; all assignments of mortgages, sureties on real estate, or of judgments or decrees in its favor; all deposits of money, bullion, or other valuable thing for its use, or for the use of any of its shareholders or creditors; and all pay- ments of money to either, made after the com- mission of an act of insolvency, or in contempla- tion thereof, made with a view to prevent the application of its assets in the manner pre- scribed by chapter 4 of title 62 of the Revised Statutes, or with a view to the preference of one creditor to another, except in payment of its cir- culating notes, shall be utterly null and void; and no attachment, injunction, or execution, shall be issued against such association or its property before final judgment in any suit, ac- tion, or proceeding, in any State, county, or mu- nicipal court. (R.S. § 5242.) REFERENCES IN TEXT Chapter 4 of title 62 of the Revised Statutes, referred to in text, was in the original ‘‘this chapter’’, meaning chapter 4 of title 62 of the Revised Statutes, consisting of R.S. §§ 5220 to 5244, which are classified to this sec- tion and sections 16, 43, 93, 93a, 181, 182, 192 to 194, 196, and 481 to 485 of this title. See, also, section 709 of Title 18, Crimes and Criminal Procedure. For complete clas- sification of R.S. §§ 5220 to 5244 to the Code, see Tables. CODIFICATION R.S. § 5242 derived from act June 3, 1864, ch. 106, § 52, 13 Stat. 115, which was the National Bank Act, and act Mar. 3, 1873, ch. 269, § 2, 17 Stat. 603. See section 38 of this title. § 92. Acting as insurance agent or broker In addition to the powers now vested by law in national banking associations organized under the laws of the United States any such associa- tion located and doing business in any place the population of which does not exceed five thou- sand inhabitants, as shown by the last preceding decennial census, may, under such rules and reg- ulations as may be prescribed by the Comptrol- ler of the Currency, act as the agent for any fire, life, or other insurance company authorized by the authorities of the State in which said bank is located to do business in said State, by solic- iting and selling insurance and collecting pre- miums on policies issued by such company; and may receive for services so rendered such fees or commissions as may be agreed upon between the said association and the insurance company for which it may act as agent: Provided, however, That no such bank shall in any case assume or guarantee the payment of any premium on in- surance policies issued through its agency by its principal: And provided further, That the bank shall not guarantee the truth of any statement made by an assured in filing his application for insurance. Page 47 TITLE 12—BANKS AND BANKING § 92a 1 So in original. Probably should be ‘‘enumerated’’. (Dec. 23, 1913, ch. 6, § 13 (par.), as added Sept. 7, 1916, ch. 461, 39 Stat. 753; amended Pub. L. 97–320, title IV, § 403(b), Oct. 15, 1982, 96 Stat. 1511.) CODIFICATION Section is based on the eleventh par. of section 13 of act Dec. 23, 1913, as amended. The eleventh par. con- stituted the ninth par. of section 13 in 1916 (39 Stat. 752, 753), became the tenth par. in 1923 (42 Stat. 1478), and became the eleventh par. in 1932 (47 Stat. 715). For fur- ther details, see Codification notes under sections 342 to 344 of this title. For decision by U.S. Supreme Court that, despite faulty placement of quotation marks, act Sept. 7, 1916, placed within section 13 of act Dec. 23, 1913, each of the ten pars. located between the phrases that introduced the amendments to sections 13 and 14 of said act, that only the seventh par. (rather than seventh to tenth pars.) comprised the amended R.S. § 5202, and that sec- tion 20 of act Apr. 5, 1918 (40 Stat. 512) (which amended R.S. § 5202 comprised of a single par.), did not amend section 13 of said act so as to repeal the eighth to tenth pars., see United States National Bank of Oregon v. Inde- pendent Insurance Agents of America, Inc., et al., 508 U.S. 439, 113 S.Ct. 2173, 124 L.Ed. 2d 402 (1993). As the result of subsequent amendments, such seventh to tenth pars. of section 13 now constitute the ninth to twelfth pars. The ninth par. amended former section 82 of this title, and the tenth to twelfth pars. are classified to sections 361, 92, and 373, respectively, of this title. AMENDMENTS 1982—Pub. L. 97–320 struck out ‘‘; and may also act as the broker or agent for others in making or procuring loans on real estate located within one hundred miles of the place in which said bank may be located, receiv- ing for such services a reasonable fee or commission’’ after ‘‘may act as agent’’ and ‘‘guarantee either the principal or interest of any such loans or’’ after ‘‘shall in any case’’. EFFECTIVE DATE OF 1982 AMENDMENT Amendment by Pub. L. 97–320 effective upon the expi- ration of 180 days after Oct. 15, 1982, see section 403(c) of Pub. L. 97–320, set out as a note under section 371 of this title. MORATORIUM Pub. L. 100–86, title II, § 201(a), (b)(5), Aug. 10, 1987, 101 Stat. 581, 583, provided that, during period beginning Mar. 6, 1987, and ending Mar. 1, 1988, national banks and Federal branches or agencies of foreign banks could not expand their insurance agency activities pursuant to this section into places where they were not conducting such activities as of Mar. 5, 1987. § 92a. Trust powers (a) Authority of Comptroller of the Currency The Comptroller of the Currency shall be au- thorized and empowered to grant by special per- mit to national banks applying therefor, when not in contravention of State or local law, the right to act as trustee, executor, administrator, registrar of stocks and bonds, guardian of es- tates, assignee, receiver, committee of estates of lunatics, or in any other fiduciary capacity in which State banks, trust companies, or other corporations which come into competition with national banks are permitted to act under the laws of the State in which the national bank is located. (b) Grant and exercise of powers deemed not in contravention of State or local law Whenever the laws of such State authorize or permit the exercise of any or all of the foregoing powers by State banks, trust companies, or other corporations which compete with national banks, the granting to and the exercise of such powers by national banks shall not be deemed to be in contravention of State or local law within the meaning of this section. (c) Segregation of fiduciary and general assets; separate books and records; access of State banking authorities to reports of examina- tions, books, records, and assets National banks exercising any or all of the powers enumerating 1 in this section shall seg- regate all assets held in any fiduciary capacity from the general assets of the bank and shall keep a separate set of books and records show- ing in proper detail all transactions engaged in under authority of this section. The State bank- ing authorities may have access to reports of ex- amination made by the Comptroller of the Cur- rency insofar as such reports relate to the trust department of such bank, but nothing in this section shall be construed as authorizing the State banking authorities to examine the books, records, and assets of such bank. (d) Prohibited operations; separate investment account; collateral for certain funds used in conduct of business No national bank shall receive in its trust de- partment deposits of current funds subject to check or the deposit of checks, drafts, bills of exchange, or other items for collection or ex- change purposes. Funds deposited or held in trust by the bank awaiting investment shall be carried in a separate account and shall not be used by the bank in the conduct of its business unless it shall first set aside in the trust depart- ment United States bonds or other securities ap- proved by the Comptroller of the Currency. (e) Lien and claim upon bank failure In the event of the failure of such bank the owners of the funds held in trust for investment shall have a lien on the bonds or other securities so set apart in addition to their claim against the estate of the bank. (f) Deposits of securities for protection of private or court trusts; execution of and exemption from bond Whenever the laws of a State require corpora- tions acting in a fiduciary capacity to deposit securities with the State authorities for the pro- tection of private or court trusts, national banks so acting shall be required to make simi- lar deposits and securities so deposited shall be held for the protection of private or court trusts, as provided by the State law. National banks in such cases shall not be required to exe- cute the bond usually required of individuals if State corporations under similar circumstances are exempt from this requirement. National banks shall have power to execute such bond when so required by the laws of the State. (g) Officials’ oath or affidavit In any case in which the laws of a State re- quire that a corporation acting as trustee, ex- ecutor, administrator, or in any capacity speci- fied in this section, shall take an oath or make Page 50 TITLE 12—BANKS AND BANKING § 93 4 So in original. No pars. (9) to (11) have been enacted. 5 So in original. Probably should be ‘‘(e)’’. (8) ‘‘Violate’’ defined For purposes of this section, the term ‘‘vio- late’’ includes any action (alone or with an- other or others) for or toward causing, bring- ing about, participating in, counseling, or aid- ing or abetting a violation. (12) 4 Regulations The Comptroller shall prescribe regulations establishing such procedures as may be nec- essary to carry out this subsection. (c) Notice under this section after separation from service The resignation, termination of employment or participation, or separation of an institution- affiliated party (within the meaning of section 1813(u) of this title) with respect to such an asso- ciation (including a separation caused by the closing of such an association) shall not affect the jurisdiction and authority of the Comptrol- ler of the Currency to issue any notice and pro- ceed under this section against any such party, if such notice is served before the end of the 6- year period beginning on the date such party ceased to be such a party with respect to such association (whether such date occurs before, on, or after August 9, 1989). (d) Forfeiture of franchise for money laundering or cash transaction reporting offenses (1) In general (A) Conviction of title 18 offenses (i) Duty to notify If a national bank, a Federal branch, or Federal agency has been convicted of any criminal offense under section 1956 or 1957 of title 18, the Attorney General shall pro- vide to the Comptroller of the Currency a written notification of the conviction and shall include a certified copy of the order of conviction from the court rendering the decision. (ii) Notice of termination; pretermination hearing After receiving written notification from the Attorney General of such a conviction, the Comptroller of the Currency shall issue to the national bank, Federal branch, or Federal agency a notice of the Comp- troller’s intention to terminate all rights, privileges, and franchises of the bank, Fed- eral branch, or Federal agency and sched- ule a pretermination hearing. (B) Conviction of title 31 offenses If a national bank, a Federal branch, or a Federal agency is convicted of any criminal offense under section 5322 or 5324 of title 31, after receiving written notification from the Attorney General, the Comptroller of the Currency may issue to the national bank, Federal branch, or Federal agency a notice of the Comptroller’s intention to terminate all rights, privileges, and franchises of the bank, Federal branch, or Federal agency and schedule a pretermination hearing. (C) Judicial review Section 1818(h) of this title shall apply to any proceeding under this subsection. (2) Factors to be considered In determining whether a franchise shall be forfeited under paragraph (1), the Comptroller of the Currency shall take into account the following factors: (A) The extent to which directors or senior executive officers of the national bank, Fed- eral branch, or Federal agency knew of, or were involved in, the commission of the money laundering offense of which the bank, Federal branch, or Federal agency was found guilty. (B) The extent to which the offense oc- curred despite the existence of policies and procedures within the national bank, Fed- eral branch, or Federal agency which were designed to prevent the occurrence of any such offense. (C) The extent to which the national bank, Federal branch, or Federal agency has fully cooperated with law enforcement authorities with respect to the investigation of the money laundering offense of which the bank, Federal branch, or Federal agency was found guilty. (D) The extent to which the national bank, Federal branch, or Federal agency has im- plemented additional internal controls (since the commission of the offense of which the bank, Federal branch, or Federal agency was found guilty) to prevent the oc- currence of any other money laundering of- fense. (E) The extent to which the interest of the local community in having adequate deposit and credit services available would be threatened by the forfeiture of the franchise. (3) Successor liability This subsection shall not apply to a succes- sor to the interests of, or a person who ac- quires, a bank, a Federal branch, or a Federal agency that violated a provision of law de- scribed in paragraph (1), if the successor suc- ceeds to the interests of the violator, or the acquisition is made, in good faith and not for purposes of evading this subsection or regula- tions prescribed under this subsection. (4) ‘‘Senior executive officer’’ defined The term ‘‘senior executive officer’’ has the same meaning as in regulations prescribed under section 1831i(f) of this title. (d) 5 Authority The Comptroller of the Currency may act in the Comptroller’s own name and through the Comptroller’s own attorneys in enforcing any provision of title 62 of the Revised Statutes, reg- ulations thereunder, or any other law or regula- tion, or in any action, suit, or proceeding to which the Comptroller of the Currency is a party. (R.S. § 5239; Mar. 3, 1911, ch. 231, § 291, 36 Stat. 1167; Pub. L. 95–630, title I, § 103, Nov. 10, 1978, 92 Stat. 3643; Pub. L. 97–320, title IV, § 424(d)(3), (f), (g), Oct. 15, 1982, 96 Stat. 1523; Pub. L. 97–457, § 24, Jan. 12, 1983, 96 Stat. 2510; Pub. L. 101–73, title IX, §§ 905(e), 907(e), Aug. 9, 1989, 103 Stat. 460, 469; Page 51 TITLE 12—BANKS AND BANKING § 94 Pub. L. 102–550, title XV, § 1502(a), Oct. 28, 1992, 106 Stat. 4045; Pub. L. 103–322, title XXXIII, § 330017(b)(2), Sept. 13, 1994, 108 Stat. 2149; Pub. L. 103–325, title III, § 331(b)(3), title IV, §§ 411(c)(2)(C), 413(b)(2), Sept. 23, 1994, 108 Stat. 2232, 2253, 2254.) REFERENCES IN TEXT Title 62 of the Revised Statutes, referred to in sub- secs. (a), (b)(1), and (d), was in the original ‘‘this Title’’ meaning title LXII of the Revised Statutes, consisting of R.S. §§ 5133 to 5244, which are classified to this sec- tion and sections 16, 21, 22 to 24a, 25a, 25b, 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, 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 com- plete classification of R.S. §§ 5133 to 5244 to the Code, see Tables. CODIFICATION R.S. § 5239 derived from act June 3, 1864, ch. 106, § 53, 13 Stat. 116, which was the National Bank Act. See sec- tion 38 of this title. Act Mar. 3, 1911, conferred the powers and duties of the former circuit courts upon the district courts. AMENDMENTS 1994—Subsec. (c). Pub. L. 103–322, § 330017(b)(2), and Pub. L. 103–325, § 413(b)(2), amended section identically, redesignating subsec. (c), relating to forfeiture of fran- chise for money laundering, as (d). Subsec. (d). Pub. L. 103–322, § 330017(b)(2), and Pub. L. 103–325, § 413(b)(2), amended section identically, redesig- nating subsec. (c), relating to forfeiture of franchise for money laundering, as (d). Pub. L. 103–325, § 331(b)(3), added subsec. (d) relating to authority. Subsec. (d)(1)(B). Pub. L. 103–325, § 411(c)(2)(C), sub- stituted ‘‘section 5322 or 5324 of title 31’’ for ‘‘section 5322 of title 31’’. 1992—Subsec. (c). Pub. L. 102–550 added subsec. (c) re- lating to forfeiture of franchise for money laundering. 1989—Subsec. (b). Pub. L. 101–73, § 907(e), amended sub- sec. (b) generally, revising and restating as pars. (1) to (8) and (12) provisions of former pars. (1) to (8). Subsec. (c). Pub. L. 101–73, § 905(e), added subsec. (c) relating to notice after separation from service. 1982—Subsec. (b)(1). Pub. L. 97–320, as amended by Pub. L. 97–457, inserted ‘‘or any of the provisions of sec- tion 92a of this title’’, and substituted ‘‘may be as- sessed’’ for ‘‘shall be assessed’’ and ‘‘title’’ for ‘‘chap- ter’’. 1978—Pub. L. 95–630 designated existing provisions as subsec. (a) and added subsec. (b). EFFECTIVE DATE OF 1989 AMENDMENT Section 907(l) of Pub. L. 101–73 provided that: ‘‘The amendments made by this section [amending this sec- tion and sections 481, 504, 505, 1467a, 1786, 1817, 1818, 1828, 1847, and 1972 of this title] shall apply with respect to conduct engaged in by any person after the date of the enactment of this Act [Aug. 9, 1989], except that the in- creased maximum civil penalties of $5,000 and $25,000 per violation or per day may apply to such conduct en- gaged in before such date if such conduct— ‘‘(1) is not already subject to a notice (initiating an administrative proceeding) issued by the appropriate Federal banking agency (as defined in section 3(q) of the Federal Deposit Insurance Act [12 U.S.C. 1813(q)]) or the National Credit Union Administration Board; and ‘‘(2) occurred after the completion of the last report of examination of the institution involved by the ap- propriate Federal banking agency (as so defined) oc- curring before the date of the enactment of this Act.’’ EFFECTIVE DATE OF 1978 AMENDMENT Section 109 of title I of Pub. L. 95–630 provided that: ‘‘Any amendment made by this title which provides for the imposition of civil penalties [enacting sections 504 and 505 of this title and amending this section and sec- tions 1464, 1730, 1730a, 1786, 1818, 1828, and 1847 of this title] shall apply only to violations occurring or con- tinuing after the date of its enactment [Nov. 10, 1978].’’ EXCEPTION AS TO TRANSFER OF FUNCTIONS Functions vested by any provision of law in Comp- troller 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. § 93a. Authority to prescribe rules and regula- tions Except to the extent that authority to issue such rules and regulations has been expressly and exclusively granted to another regulatory agency, the Comptroller of the Currency is au- thorized to prescribe rules and regulations to carry out the responsibilities of the office, ex- cept that the authority conferred by this section does not apply to section 36 of this title or to se- curities activities of National Banks under the Act commonly known as the ‘‘Glass-Steagall Act’’. (R.S. § 5239A, as added Pub. L. 96–221, title VII, § 708, Mar. 31, 1980, 94 Stat. 188.) REFERENCES IN TEXT The Glass-Steagall Act, referred to in text, probably refers to act June 16, 1933, ch. 89, 48 Stat. 162, as amend- ed, also known as the Banking Act of 1933 or the Glass- Steagall Act, 1933, rather than to act Feb. 27, 1932, ch. 58, 47 Stat. 56, known as the Glass-Steagall Act, 1932. Section 16 of the 1933 act, which amended section 24 (Seventh) of this title, related in part to securities ac- tivities of national banks. For complete classification of these Acts to the Code, see Tables. § 94. Venue of suits Any action or proceeding against a national banking association for which the Federal De- posit Insurance Corporation has been appointed receiver, or against the Federal Deposit Insur- ance Corporation as receiver of such association, shall be brought in the district or territorial court of the United States held within the dis- trict in which that association’s principal place of business is located, or, in the event any State, county, or municipal court has jurisdiction over such an action or proceeding, in such court in the county or city in which that association’s principal place of business is located. (R.S. § 5198; Feb. 18, 1875, ch. 80, § 1, 18 Stat. 320; Mar. 3, 1911, ch. 231, § 291, 36 Stat. 1167; Pub. L. 97–320, title IV, § 406, Oct. 15, 1982, 96 Stat. 1512; Pub. L. 97–457, § 20(a), Jan. 12, 1983, 96 Stat. 2509.) CODIFICATION The last sentence of R.S. § 5198, as added by act Feb. 18, 1875, ch. 80, § 1, 18 Stat. 320, appears to have been de- rived from act June 3, 1864, ch. 106, § 57, 13 Stat. 116, which was the National Bank Act. See section 38 of this title. Section is comprised of last sentence of R.S. § 5198 as added by act Feb. 18, 1875, ch. 80, § 1, 18 Stat. 320. The remaining sentences of R.S. § 5198 are classified to sec- tion 86 of this title. Act Mar. 3, 1911, conferred powers and duties of former circuit courts on district courts. AMENDMENTS 1982—Pub. L. 97–320, as amended by Pub. L. 97–457, amended section generally. Prior to amendment sec- Page 52 TITLE 12—BANKS AND BANKING § 94a tion read as follows: ‘‘Actions and proceedings against any association under this chapter may be had in any district or Territorial court of the United States held within the district in which such association may be established, or in any State, county, or municipal court in the county or city in which said association is lo- cated having jurisdiction in similar cases.’’ EFFECTIVE DATE OF 1983 AMENDMENT Section 20(b) of Pub. L. 97–457 provided that: ‘‘The amendment made by subsection (a) [amending this sec- tion] shall be deemed to have taken effect upon the en- actment of Public Law 97–320 [Oct. 15, 1982].’’ § 94a. Repealed. June 25, 1948, ch. 646, § 39, 62 Stat. 992, eff. Sept. 1, 1948 Section, act July 12, 1882, ch. 290, § 4, 22 Stat. 163, re- lated to jurisdiction and venue. See sections 1348 and 1394 of Title 28, Judiciary and Judicial Procedure. § 95. Emergency limitations and restrictions on business of members of Federal Reserve Sys- tem; designation of legal holiday for national banking associations; exceptions; ‘‘State’’ de- fined (a) In order to provide for the safer and more effective operation of the National Banking Sys- tem and the Federal Reserve System, to pre- serve for the people the full benefits of the cur- rency provided for by the Congress through the National Banking System and the Federal Re- serve System, and to relieve interstate com- merce of the burdens and obstructions resulting from the receipt on an unsound or unsafe basis of deposits subject to withdrawal by check, dur- ing such emergency period as the President of the United States by proclamation may pre- scribe, no member bank of the Federal Reserve System shall transact any banking business ex- cept to such extent and subject to such regula- tions, limitations and restrictions as may be prescribed by the Secretary of the Treasury, with the approval of the President. Any individ- ual, partnership, corporation, or association, or any director, officer or employee thereof, violat- ing any of the provisions of this section shall be deemed guilty of a misdemeanor and, upon con- viction thereof, shall be fined not more than $10,000 or, if a natural person, may, in addition to such fine, be imprisoned for a term not ex- ceeding ten years. Each day that any such viola- tion continues shall be deemed a separate of- fense. (b)(1) In the event of natural calamity, riot, insurrection, war, or other emergency condi- tions occurring in any State whether caused by acts of nature or of man, the Comptroller of the Currency may designate by proclamation any day a legal holiday for the national banking as- sociations located in that State. In the event that the emergency conditions affect only part of a State, the Comptroller of the Currency may designate the part so affected and may proclaim a legal holiday for the national banking associa- tions located in that affected part. In the event that a State or a State official authorized by law designates any day as a legal holiday for ceremonial or emergency reasons, for the State or any part thereof, that same day shall be a legal holiday for all national banking associa- tions or their offices located in that State or the part so affected. A national banking association or its affected offices may close or remain open on such a State-designated holiday unless the Comptroller of the Currency by written order di- rects otherwise. (2) For the purpose of this subsection, the term ‘‘State’’ means any of the several States, the District of Columbia, the Commonwealth of Puerto Rico, the Northern Mariana Islands, Guam, the Virgin Islands, American Samoa, the Trust Territory of the Pacific Islands, or any other territory or possession of the United States. (Mar. 9, 1933, ch. 1, title I, § 4, 48 Stat. 2; Pub. L. 96–221, title VII, § 705, Mar. 31, 1980, 94 Stat. 187; Pub. L. 97–320, title IV, § 407, Oct. 15, 1982, 96 Stat. 1513; Pub. L. 97–457, § 21, Jan. 12, 1983, 96 Stat. 2509.) AMENDMENTS 1983—Subsec. (b)(1). Pub. L. 97–457 inserted ‘‘a State or’’ before ‘‘a State official’’. 1982—Subsec. (b)(1). Pub. L. 97–320 substituted ‘‘In the event that a State official authorized by law designates any day as a legal holiday for ceremonial or emergency reasons, for the State or any part thereof, that same day shall be a legal holiday for all national banking as- sociations or their offices located in that State or the part so affected. A national banking association or its affected offices may close or remain open on such a State-designated holiday unless the Comptroller of the Currency by written order directs otherwise’’ for ‘‘In the event that a State or a State official authorized by law designates any day as a legal holiday for either emergency or ceremonial reasons for all banks char- tered by that State to do business within that State, that same day shall be a legal holiday for all national banking associations chartered to do business within that State unless the Comptroller of the Currency shall by written order permit all national banking associa- tions located in that State to remain open’’. 1980—Pub. L. 96–221 designated existing provisions as subsec. (a) and added subsec. (b). TERMINATION OF TRUST TERRITORY OF THE PACIFIC ISLANDS For termination of Trust Territory of the Pacific Is- lands, see note set out preceding section 1681 of Title 48, Territories and Insular Possessions. BANK HOLIDAY OF 1933 Proclamations Nos. 2039, 2040, and 2070, dated Mar. 6, 1933, Mar. 9, 1933, and Dec. 30, 1933, respectively, related to the temporary suspension of banking transactions beginning Mar. 6, 1933, by all member banks of the Fed- eral Reserve System. Pursuant to Ex. Ord. No. 6073, dated March 10, 1933, formerly set out as a note under this section, the Sec- retary of the Treasury by order of March 11, 1933, au- thorized all Federal reserve banks and nonmember banks and other banking institutions to resume their normal and usual banking functions on March 13, 1933, subject to certain restrictions. See 31 C.F.R. 121.20–121.22. The fifth and sixth paragraphs of Ex. Ord. No. 6073, relating to the removal of gold coin, gold bul- lion, or gold certificates from the United States by cor- porations, etc., including banking institutions and au- thorization of banking institutions to pay out gold coin, gold bullion or gold certificates, were revoked by Ex. Ord. No. 11825, Dec. 31, 1974, 40 F.R. 1003, set out as a note under section 95a of this title. PROC. NO. 2725. EXEMPTION OF MEMBER BANKS OF FEDERAL RESERVE SYSTEM Proc. No. 2725, Apr. 7, 1947, 12 F.R. 2343, 61 Stat. 1062, provided: NOW, THEREFORE, I, HARRY S. TRUMAN, Presi- dent of the United States of America, acting under and Page 55 TITLE 12—BANKS AND BANKING § 95a under section 6 of the Appendix to Title 50, War and Na- tional Defense. DIPLOMATIC PROPERTY OF GERMANY AND JAPAN Ex. Ord. No. 9760, July 24, 1946, 11 F.R. 7999, set out in notes to section 6 of Title 50, Appendix, War and Na- tional Defense, supersedes conflicting provisions of Ex. Ord. No. 8389, set out below. EXECUTIVE ORDER NO. 6260 Ex. Ord. No. 6260, Aug. 28, 1933, as amended by Ex. Ord. No. 6359, Oct. 25, 1933; Ex. Ord. No. 6556, Jan. 12, 1934; Ex. Ord. No. 6560, Jan. 15, 1934; Ex. Ord. No. 10896, Nov. 29, 1960, 25 F.R. 12281; Ex. Ord. No. 10905, Jan. 14, 1961, 26 F.R. 321; Ex. Ord. No. 11037, July 20, 1962, 27 F.R. 6967, formerly set out as a note under this section, which related to the hoarding, export, and earmarking of gold coin, bullion, or currency, and transactions in foreign exchange, was revoked by Ex. Ord. No. 11825, Dec. 31, 1974, 40 F.R. 1003, set out below. EXECUTIVE ORDER NO. 6560 Ex. Ord. No. 6560, Jan. 15, 1934, as amended by Ex. Ord. No. 8389. April 10, 1940, 6 p.m. E. S. T., 5 F.R. 1400; Ex. Ord. No. 8405, May 10, 1940, 7:55 a.m. E. S. T., 5 F.R. 1677; Ex. Ord. No. 8493, July 25, 1940, 5 F.R. 2667, for- merly set out as a note under this section, which de- clared the existence of a national emergency and pre- scribed regulations for the investigation, regulation, and prohibition of transactions in foreign exchange, transfers of credit between or payments by banking in- stitutions, and export of currency or silver coin by per- sons within the United States or subject to its jurisdic- tion, was based on authority of section 95a of this title (act Oct. 6, 1917, ch. 106, § 5(b), 40 Stat. 415, comprising part of the Trading With the Enemy Act) which was amended in 1977 to remove the powers of the President to regulate transactions during a period of national emergency other than a war. EX. ORD. NO. 8389. REGULATING TRANSACTIONS IN FOR- EIGN EXCHANGE AND FOREIGN-OWNED PROPERTY, PRO- VIDING FOR THE REPORTING OF ALL FOREIGN-OWNED PROPERTY Ex. Ord. No. 8389, Apr. 10, 1940, 5 F.R. 1400, as amended by Ex. Ord. No. 8405, May 10, 1940, 5 F.R. 1677; Ex. Ord. No. 8446, June 17, 1940, 5 F.R. 2279; Ex. Ord. No. 8484, July 15, 1940, 5 F.R. 2586; Ex. Ord. No. 8493, July 25, 1940, 5 F.R. 2667; Ex. Ord. No. 8565, Oct. 10, 1940, 5 F.R. 4062; Ex. Ord. No. 8701, Mar. 4, 1941, 6 F.R. 1285; Ex. Ord. No. 8711, Mar. 13, 1941, 6 F.R. 1443; Ex. Ord. No. 8721, Mar. 24, 1941, 6 F.R. 1622; Ex. Ord. No. 8746, Apr. 28, 1941, 6 F.R. 2187; Ex. Ord. No. 8785, June 14, 1941, 6 F.R. 2897; Ex. Ord. No. 8832, July 26, 1941, 6 F.R. 3715; Ex. Ord. No. 8963, Dec. 9, 1941, 6 F.R. 6348; Ex. Ord. No. 8998, Dec. 26, 1941, 6 F.R. 6787, provided: SECTION 1. CERTAIN FOREIGN BANKING TRANSACTIONS PROHIBITED All of the following transactions are prohibited, ex- cept as specifically authorized by the Secretary of the Treasury by means of regulations, rulings, instruc- tions, licenses, or otherwise, if (i) such transactions are by, or on behalf of, or pursuant to the direction of any foreign country designated in this Order, or any na- tional thereof, or (ii) such transactions involve prop- erty in which any foreign country designated in this Order, or any national thereof, has at any time on or since the effective date of this Order had any interest of any nature whatsoever, direct or indirect: A. All transfers of credit between any banking insti- tutions within the United States; and all transfers of credit between any banking institution within the United States and any banking institution outside the United States (including any principal, agent, home of- fice, branch, or correspondent outside the United States, of a banking institution within the United States); B. All payments by or to any banking institution within the United States; C. All transactions in foreign exchange by any person within the United States; D. The export or withdrawal from the United States, or the earmarking of gold or silver coin or bullion or currency by any person within the United States; E. All transfers, withdrawals or exportations of, or dealings in, any evidences of indebtedness or evidences of ownership of property by any person within the United States; and F. Any transaction for the purpose or which has the effect of evading or avoiding the foregoing prohibitions. SECTION 2. DEALINGS IN FOREIGN SECURITIES; REGULATIONS A. All of the following transactions are prohibited, except as specifically authorized by the Secretary of the Treasury by means of regulations, rulings, instruc- tions, licenses, or otherwise: (1) The acquisition, disposition or transfer of, or other dealing in, or with respect to, any security or evi- dence thereof on which there is stamped or imprinted, or to which there is affixed or otherwise attached, a tax stamp or other stamp of a foreign country designated in this Order or a notarial or similar seal which by its contents indicates that it was stamped, imprinted, af- fixed or attached within such foreign country, or where the attendant circumstances disclose or indicate that such stamp or seal may, at any time, have been stamped, imprinted, affixed or attached thereto; and (2) The acquisition by, or transfer to, any person within the United States of any interest in any secu- rity or evidence thereof if the attendant circumstances disclose or indicate that the security or evidence there- of is not physically situated within the United States. B. The Secretary of the Treasury may investigate, regulate, or prohibit under such regulations, rulings, or instructions as he may prescribe, by means of licenses or otherwise, the sending, mailing, importing or other- wise bringing, directly or indirectly, into the United States, from any foreign country, of any securities or evidences thereof or the receiving or holding in the United States of any securities or evidences thereof so brought into the United States. SECTION 3. FOREIGN COUNTRIES AFFECTED; EFFECTIVE DATE OF PROHIBITIONS The term ‘‘foreign country designated in this Order’’ means a foreign country included in the following schedule, and the term ‘‘effective date of this Order’’ means with respect to any such foreign country, or any national thereof, the date specified in the following schedule: (a) April 8, 1940— Norway and Denmark; (b) May 10, 1940— The Netherlands, Belgium and Luxembourg; (c) June 17, 1940— France (including Monaco); (d) July 10, 1940— Latvia, Estonia and Lithuania; (e) October 9, 1940— Rumania; (f) March 4, 1941— Bulgaria; (g) March 13, 1941— Hungary; (h) March 24, 1941— Yugoslavia; (i) April 28, 1941— Greece; and (j) June 14, 1941— Albania, Andorra, Austria, Czechoslovakia, Page 56 TITLE 12—BANKS AND BANKING § 95a Danzig, Finland, Germany, Italy, Liechtenstein, Poland, Portugal, San Marino, Spain, Sweden, Switzerland, and Union of Soviet Socialist Republics; (k) June 14, 1941— China and Japan; (l) June 14, 1941— Thailand; (m) June 14, 1941— Hong Kong. The ‘‘effective date of this Order’’ with respect to any foreign country not designated in this Order shall be deemed to be June 14, 1941. SECTION 4. RECORDS OF FOREIGN BANKING AND SECURITY TRANSACTIONS; INVESTIGATIONS A. The Secretary of the Treasury and/or the Attorney General may require, by means of regulations, rulings, instructions, or otherwise, any person to keep a full record of, and to furnish under oath, in the form of re- ports or otherwise, from time to time and at any time or times, complete information relative to, any trans- action referred to in section 5(b) of the Act of October 6, 1917 (40 Stat. 415) [this section], as amended, or rel- ative to any property in which any foreign country or any national thereof has any interest of any nature whatsoever, direct or indirect, including the production of any books of account, contracts, letters, or other pa- pers, in connection therewith, in the custody or control of such person, either before or after such transaction is completed; and the Secretary of the Treasury and/or the Attorney General may, through any agency, inves- tigate any such transaction or act, or any violation of the provisions of this Order. B. Every person engaging in any of the transactions referred to in sections 1 and 2 of this Order shall keep a full record of each such transaction engaged in by him, regardless of whether such transaction is effected pursuant to license or otherwise, and such record shall be available for examination for at least one year after the date of such transaction. SECTION 5. DEFINITIONS A. As used in the first paragraph of section 1 of this Order ‘‘transactions (which) involve property in which any foreign country designated in this Order, or any national thereof, has * * * any interest of any nature whatsoever, direct or indirect,’’ shall include but not by way of limitation (i) any payment or transfer to any such foreign country or national thereof, (ii) any ex- port or withdrawal from the United States to such for- eign country, and (iii) any transfer of credit, or pay- ment of an obligation, expressed in terms of the cur- rency of such foreign country. B. The term ‘‘United States’’ means the United States and any place subject to the jurisdiction there- of, and the term ‘‘continental United States’’ means the States of the United States, the District of Colum- bia, and the Territory of Alaska: Provided, however, That for the purposes of this Order the term ‘‘United States’’ shall not be deemed to include any territory included within the term ‘‘foreign country’’ as defined in paragraph D of this section. C. The term ‘‘person’’ means an individual, partner- ship, association, corporation, or other organization. D. The term ‘‘foreign country’’ shall include, but not by way of limitation, (i) The state and the government thereof on the effec- tive date of this Order as well as any political subdivi- sion, agency, or instrumentality thereof or any terri- tory, dependency, colony, protectorate, mandate, do- minion, possession or place subject to the jurisdiction thereof. (ii) Any other government (including any political subdivision, agency, or instrumentality thereof) to the extent and only to the extent that such government ex- ercises or claims to exercise de jure or de facto sov- ereignty over the area which on such effective date constituted such foreign country, and (iii) Any territory which on or since the effective date of this Order is controlled or occupied by the mili- tary, naval or police forces or other authority of such foreign country; (iv) Any person to the extent that such person is, or has been, or to the extent that there is reasonable cause to believe that such person is, or has been, since such effective date, acting or purporting to act directly or indirectly for the benefit or on behalf of any of the foregoing. Hong Kong shall be deemed to be a foreign country within the meaning of this subdivision. E. The term ‘‘national’’ shall include, (i) Any person who has been domiciled in, or a sub- ject, citizen or resident of a foreign country at any time on or since the effective date of this Order, (ii) Any partnership, association, corporation or other organization, organized under the laws of, or which on or since the effective date of this Order had or has had its principal place of business in such for- eign country, or which on or since such effective date was or has been controlled by, or a substantial part of the stock, shares, bonds, debentures, notes, drafts, or other securities or obligations of which, was or has been owned or controlled by, directly or indirectly, such foreign country and/or one or more nationals thereof as herein defined. (iii) Any person to the extent that such person is, or has been, since such effective date, acting or purporting to act directly or indirectly for the benefit or on behalf of any national of such foreign country, and (iv) Any other person who there is reasonable cause to believe is a ‘‘national’’ as herein defined. In any case in which by virtue of the foregoing defini- tion a person is a national of more than one foreign country, such person shall be deemed to be a national of each such foreign country. In any case in which the combined interests of two or more foreign countries designated in this Order and/or nationals thereof are sufficient in the aggregate to constitute, within the meaning of the foregoing, control of 25 per centum or more of the stock, shares, bonds, debentures, notes, drafts, or other securities or obligations of a partner- ship, association, corporation or other organization, but such control or a substantial part of such stock, shares, bonds, debentures, notes, drafts, or other secu- rities or obligations is not held by any one such foreign country and/or national thereof, such partnership, asso- ciation, corporation or other organization shall be deemed to be a national of each of such foreign coun- tries. The Secretary of the Treasury shall have full power to determine that any person is or shall be deemed to be a ‘‘national’’ within the meaning of this definition, and the foreign country of which such per- son is or shall be deemed to be a national. Without lim- itation of the foregoing, the term ‘‘national’’ shall also include any other person who is determined by the Sec- retary of the Treasury to be, or to have been, since such effective date, acting or purporting to act directly or indirectly for the benefit or under the direction of a foreign country designated in this Order or national thereof, as herein defined. F. The term ‘‘banking institution’’ as used in this Order shall include any person engaged primarily or in- cidentally in the business of banking, of granting or transferring credits, or of purchasing or selling foreign exchange or procuring purchasers and sellers thereof, as principal or agent, or any person holding credits for others as a direct or incidental part of his business, or brokers, and each principal, agent, home office, branch or correspondent of any person so engaged shall be re- garded as a separate ‘‘banking institution’’. Page 57 TITLE 12—BANKS AND BANKING § 95a G. The term ‘‘this Order’’, as used herein, shall mean Executive Order No. 8389 of April 10, 1940, as amended. SECTION 6. CONSTRUCTION WITH EX. ORD. NO. 6560; SAVING CLAUSE Executive Order No. 8389 of April 10, 1940, as amended, shall no longer be deemed to be an amendment to or a part of Executive Order No. 6560 of January 15, 1934. Ex- ecutive Order No. 6560 of January 15, 1934, and the Reg- ulations of November 12, 1934, are hereby modified in so far as they are inconsistent with the provisions of this Order, and except as so modified, continue in full force and effect. Nothing herein shall be deemed to revoke any license, ruling, or instruction now in effect and is- sued pursuant to Executive Order No. 6560 of January 15, 1934, as amended, or pursuant to this Order; pro- vided, however, that all such licenses, rulings, or in- structions shall be subject to the provisions hereof. Any amendment, modification or revocation by or pur- suant to the provisions of this Order of any orders, reg- ulations, rulings, instructions or licenses shall not af- fect any act done, or any suit or proceeding had or commenced in any civil or criminal case prior to such amendment, modification or revocation, and all pen- alties, forfeitures and liabilities under any such orders, regulations, rulings, instructions or licenses shall con- tinue and may be enforced as if such amendment, modi- fication or revocation had not been made. SECTION 7. REGULATIONS BY SECRETARY OF THE TREASURY Without limitation as to any other powers or author- ity of the Secretary of the Treasury or the Attorney General under any other provision of this Order, the Secretary of the Treasury is authorized and empowered to prescribe from time to time regulations, rulings, and instructions to carry out the purposes of this Order and to provide therein or otherwise the conditions under which licenses may be granted by or through such offi- cers or agencies as the Secretary of the Treasury may designate, and the decision of the Secretary with re- spect to the granting, denial or other disposition of an application or license shall be final. SECTION 8. OFFENSES AND PENALTIES UNDER ACT OCT. 6, 1917 Section 5(b) of the Act of October 6, 1917, as amended, provides in part: ‘‘* * * Whoever willfully violates any of the provisions of this subdivision or of any license, order, rule or regu- lation issued thereunder, shall, upon conviction, be fined not more than $10,000, or, if a natural person, may be imprisoned for not more than ten years, or both; and any officer, director, or agent of any corporation who knowingly participates in such violation may be pun- ished by a like fine, imprisonment, or both.’’ SECTION 9. AMENDMENTS OF ORDER AND REGULATIONS PRESCRIBED THEREUNDER This Order and any regulations, rulings, licenses or instructions issued hereunder may be amended, modi- fied or revoked at any time. [Ex. Ord. No. 8389 and the regulations and general rul- ings issued thereunder by the Secretary of the Treas- ury were approved and confirmed by Res. May 7, 1940, ch. 185, § 2, 54 Stat. 179.] [Ex. Ord. No. 9760, July 24, 1946, 11 F.R. 7999, 50 U.S.C. App., § 6 note, relating to diplomatic property of Ger- many and Japan in the United States, supersedes con- flicting provisions of Ex. Ord. No. 8389, set out above.] EXECUTIVE ORDERS NOS. 8446, 8484, 8565, 8701, 8711, 8721, 8746 The application of Ex. Ord. No. 6560, §§ 9 to 14, to French property by Ex. Ord. No. 8446, 5 F.R. 2279; to Latvian, Estonian and Lithuanian property by Ex. Ord. No. 8484, 5 F.R. 2586; to Rumanian property by Ex. Ord. No. 8565, 5 F.R. 4062; to Bulgarian property by Ex. Ord. No. 8701, 6 F.R. 1285; to Hungarian property by Ex. Ord. No. 8711, 6 F.R. 1443; to Yugoslav property by Ex. Ord. No. 8721, 6 F.R. 1622; to Greek property by Ex. Ord. No. 8746, 6 F.R. 2187, was incorporated in the provisions of Ex. Ord. No. 8389 as amended by Ex. Ord. No. 8785, set out above. EX. ORD. NO. 9747. FUNCTIONS OF ALIEN PROPERTY CUS- TODIAN AND TREASURY DEPARTMENT CONTINUED IN PHILIPPINES Ex. Ord. No. 9747, July 3, 1946, 11 F.R. 7518, provided: The terms and provisions of Executive Order 9095 of March 11, 1942, as amended [formerly set out as a note under section 6 of the Appendix to Title 50, War and Na- tional Defense], and Executive Order No. 8389 of April 10, 1940, as amended [set out above], shall continue in force in the Philippines after July 4, 1946, and all pow- ers and authority delegated by the said Executive Or- ders to the Alien Property Custodian and to the Sec- retary of the Treasury, respectively, shall after July 4, 1946, continue to be exercised in the Philippines by the said officers, respectively, as therein provided. EXECUTIVE ORDER NO. 10348 Ex. Ord. No. 10348, Apr. 26, 1952, 17 F.R. 3769, which provided that Ex. Ord. No. 8389, Apr. 10, 1940, 5 F.R. 1400, as amended, set out above, and all delegations, designa- tions, regulations, rulings, instructions, and licenses is- sued under such order, should be continued in force ac- cording to their terms for the duration of the period of the national emergency proclaimed by Proclamation No. 2914 of December 16, 1950, set out as a note preced- ing section 1 of the Appendix to Title 50, War and Na- tional Defense, was superseded by Ex. Ord. No. 11281, May 13, 1966, 31 F.R. 7215, set out as a note under sec- tion 6 of the Appendix to Title 50. EXECUTIVE ORDER NO. 11387 Ex. Ord. No. 11387, Jan. 1, 1968, 33 F.R. 47, which pro- hibited transfers of capital to or within a foreign coun- try or to any national thereof outside the United States by a person subject to the jurisdiction of the United States who owns a 10 percent interest in a for- eign business venture, was revoked by Ex. Ord. No. 12553, Feb. 25, 1986, 51 F.R. 7237. EX. ORD. NO. 11825. REVOCATION OF EXECUTIVE ORDERS PERTAINING TO REGULATION OF ACQUISITION OF, HOLD- ING OF, OR OTHER TRANSACTIONS IN GOLD Ex. Ord. No. 11825, Dec. 31, 1974, 40 F.R. 1003, provided: By virtue of the authority vested in me by section 1 of the Act of August 8, 1950, 64 Stat. 419, and section 5(b) of the Act of October 6, 1917, as amended (12 U.S.C. 95a) [this section], and as President of the United States, and in view of the provisions of section 3 of Public Law 93–110, 87 Stat. 352, as amended by section 2 of Public Law 93–373, 88 Stat. 445, [set out as notes under section 442 of former Title 31, Money and Fi- nance], it is ordered as follows: SECTION 1. Executive Order No. 6260 of August 28, 1933, as amended by Executive Order No. 6359 of October 25, 1933, Executive Order No. 6556 of January 12, 1934, Exec- utive Order No. 6560 of January 15, 1934, Executive Order No. 10896 of November 29, 1960, Executive Order No. 10905 of January 14, 1961, and Executive Order No. 11037 of July 20, 1962; the fifth and sixth paragraphs of Executive Order No. 6073, March 10, 1933 [formerly set out as a note under section 95 of this title]; sections 3 and 4 of Executive Order No. 6359 of October 25, 1933 [formerly set out as a note under section 248 of this title]; and paragraph 2(d) of Executive Order No. 10289 of September 17, 1951 [set out as a note under section 301 of Title 3, The President], are hereby revoked. SECTION 2. The revocation, in whole or in part, of such prior Executive orders relating to regulation on the acquisition of, holding of, or other transactions in gold shall not affect any act completed, or any right accruing or accrued, or any suit or proceeding finished or started in any civil or criminal cause prior to the revocation, but all such liabilities, penalties, and for- feitures under the Executive orders shall continue and Page 60 TITLE 12—BANKS AND BANKING § 142 § 142. Banks in reserve cities; reserves National banking associations located in re- serve cities or central reserve cities shall main- tain reserves provided for in section 462 of this title for banks so located. (R.S. § 5191 (part); Dec. 23, 1913, ch. 6, §§ 19, 27, 38 Stat. 270, 274; Aug. 4, 1914, ch. 225, 38 Stat. 682; Aug. 15, 1914, ch. 252, 38 Stat. 691; June 21, 1917, ch. 32, § 10, 40 Stat. 239.) REFERENCES IN TEXT Section 462 of this title, referred to in text, was omit- ted from the Code. See section 461 of this title. CODIFICATION R.S. § 5191 derived from act June 3, 1864, ch. 106, § 31, 13 Stat. 108, which was the National Bank Act, and act Mar. 1, 1872, ch. 22, 17 Stat. 32. See section 38 of this title. Some of the other provisions of R.S. § 5191 were classi- fied to section 141 of this title prior to its omission from the Code, some are classified to section 143 of this title, and some were not included in the Code. TERMINATION OF CENTRAL RESERVE CITIES Central reserve cities terminated, see section 3(b) of Pub. L. 86–114 set out as a note under former section 141 of this title. § 143. Banks in Alaska and insular possessions; lawful money reserves Every national banking association located in Alaska or in a dependency or insular possession or any part of the United States outside of the continental United States, and not a member of the Federal reserve system, shall at all times have on hand in lawful money of the United States an amount equal to at least 15 percent of the aggregate amount of its deposits in all re- spects. Whenever the lawful money of any such association shall fall below 15 percent of its de- posits such association shall not increase its li- abilities by making any new loans or discounts other than by discounting or purchasing bills of exchange payable at sight nor make any divi- dends of its profits until the required proportion between the aggregate amount of its deposits and its lawful money of the United States has been restored. And the Comptroller of the Cur- rency shall notify any such association whose lawful money reserve shall be below the amount required to be kept on hand to make good such reserve, and if such association shall fail for thirty days thereafter so to make good its law- ful money the Comptroller may, with the con- currence of the Secretary of the Treasury, ap- point a receiver to wind up the business of the association as provided in section 192 of this title. (R.S. § 5191 (part).) CODIFICATION R.S. § 5191 derived from act June 3, 1864, ch. 106, § 31, 13 Stat. 108, which was the National Bank Act, and act Mar. 1, 1872, ch. 22, 17 Stat. 32. See section 38 of this title. Some of the other provisions of R.S. § 5191 were classi- fied to section 141 of this title prior to its omission from the Code, some are classified to section 142 of this title, and some were not included in the Code. EXCEPTION AS TO TRANSFER OF FUNCTIONS Functions vested by any provision of law in Comp- troller 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. § 144. Certain balances counted toward reserves in dependencies and insular possessions Four-fifths of the reserve of 15 per centum which a national bank located in a dependency or insular possession or any part of the United States outside of the continental United States, and not a member of the Federal Reserve Sys- tem, is required to keep, may consist of balances due such bank from associations approved by the Comptroller of the Currency and located in any one of the reserve cities as now or hereafter defined by law or designated by the Board of Governors of the Federal Reserve System. (R.S. § 5192; July 1, 1952, ch. 536, 66 Stat. 314; Pub. L. 86–70, § 7, June 25, 1959, 73 Stat. 142; Pub. L. 86–114, § 3(b)(3), July 28, 1959, 73 Stat. 263.) CODIFICATION R.S. § 5192 derived from act June 3, 1864, ch. 106, § 31, 13 Stat. 108, which was the National Bank Act. See sec- tion 38 of this title. AMENDMENTS 1959—Pub. L. 86–114 struck out ‘‘central reserve or’’ before ‘‘reserve cities’’. Pub. L. 86–70 struck out ‘‘in Alaska or’’ before ‘‘in a dependency’’. 1952—Act July 1, 1952, reduced the required amount of cash on hand from two-fifths to one-fifth of the re- quired reserve of 15 per centum. EFFECTIVE DATE OF 1959 AMENDMENT Amendment by Pub. L. 86–114 effective three years after July 28, 1959, see section 3(b) of Pub. L. 86–114, set out as a Central Reserve and Reserve Cities note under former section 141 of this title. EXCEPTION AS TO TRANSFER OF FUNCTIONS Functions vested by any provision of law in Comp- troller 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. §§ 145, 146. Repealed. Pub. L. 97–258, § 5(b), Sept. 13, 1982, 96 Stat. 1068 Section 145, act July 14, 1890, ch. 708, § 2, 26 Stat. 289, authorized counting of treasury notes held by national banking associations as part of their lawful reserve. Section 146, act July 12, 1882, ch. 290, § 12, 22 Stat. 165, related to holding of gold and silver certificates by na- tional banking associations. SUBCHAPTER IX—FORMATION OF ASSOCIATIONS TO ISSUE GOLD NOTES §§ 151 to 153. Repealed. Pub. L. 103–325, title VI, § 602(e)(22), (23), (f)(7), Sept. 23, 1994, 108 Stat. 2292, 2293 Section 151, R.S. § 5185; Jan. 19, 1875, ch. 19, 18 Stat. 302, related to organization of associations to issue gold notes. Section 152, R.S. § 5186, related to mandatory estab- lishment of lawful money reserves by associations issu- ing gold notes and reception by such associations of gold notes of other associations in payment of debts. Section 153, act Feb. 14, 1880, ch. 25, 21 Stat. 66, relat- ed to conversion of gold banks into currency banks. Page 61 TITLE 12—BANKS AND BANKING § 161 SUBCHAPTER X—BANK EXAMINATIONS; REPORTS § 161. Reports to Comptroller of the Currency (a) Reports of condition; form; contents; date of making; publication Every association shall make reports of condi- tion to the Comptroller of the Currency in ac- cordance with the Federal Deposit Insurance Act [12 U.S.C. 1811 et seq.]. The Comptroller of the Currency may call for additional reports of condition, in such form and containing such in- formation as he may prescribe, on dates to be fixed by him, and may call for special reports from any particular association whenever in his judgment the same are necessary for his use in the performance of his supervisory duties. Each report of condition shall contain a declaration by the president, a vice president, the cashier, or by any other officer designated by the board of directors of the bank to make such declara- tion, that the report is true and correct to the best of his knowledge and belief. The correctness of the report of condition shall be attested by the signatures of at least three of the directors of the bank other than the officer making such declaration, with the declaration that the report has been examined by them and to the best of their knowledge and belief is true and correct. Each report shall exhibit in detail and under ap- propriate heads the resources and liabilities of the association at the close of business on any past day specified by the Comptroller, and shall be transmitted to the Comptroller within the period of time specified by the Comptroller. Spe- cial reports called for by the Comptroller need contain only such information as is specified by the Comptroller in his request therefor, and pub- lication of such reports need be made only if di- rected by the Comptroller. (b) Payment of dividends Every association shall make to the Comptrol- ler reports of the payment of dividends, includ- ing advance reports of dividends proposed to be declared or paid in such cases and under such conditions as the Comptroller deems necessary to carry out the purposes of the laws relating to national banking associations in such form and at such times as he may require. (c) Reports of affiliates; form; contents; date of making; publication; penalties Each national banking association shall ob- tain from each of its affiliates other than mem- ber banks and furnish to the Comptroller of the Currency not less than four reports during each year, in such form as the Comptroller may pre- scribe, verified by the oath or affirmation of the president or such other officer as may be des- ignated by the board of directors of such affili- ate to verify such reports, disclosing the infor- mation hereinafter provided for as of dates iden- tical with those for which the Comptroller shall during such year require the reports of the con- dition of the association. Each such report of an affiliate shall be transmitted to the Comptroller at the same time as the corresponding report of the association, except that the Comptroller may, in his discretion, extend such time for good cause shown. Each such report shall con- tain such information as in the judgment of the Comptroller of the Currency shall be necessary to disclose fully the relations between such affil- iate and such bank and to enable the Comptrol- ler to inform himself as to the effect of such re- lations upon the affairs of such bank. The Comp- troller shall also have power to call for addi- tional reports with respect to any such affiliate whenever in his judgment the same are nec- essary in order to obtain a full and complete knowledge of the conditions of the association with which it is affiliated. Such additional re- ports shall be transmitted to the Comptroller of the Currency in such form as he may prescribe. (R.S. § 5211; Feb. 27, 1877, ch. 69, § 1, 19 Stat. 252; Dec. 28, 1922, ch. 18, 42 Stat. 1067; Feb. 25, 1927, ch. 191, § 13, 44 Stat. 1232; June 16, 1933, ch. 89, § 27, 48 Stat. 191; Pub. L. 86–230, §§ 11, 22(b), Sept. 8, 1959, 73 Stat. 458, 466; Pub. L. 86–671, § 5, July 14, 1960, 74 Stat. 551; Pub. L. 89–485, § 13(d), July 1, 1966, 80 Stat. 243; Pub. L. 101–73, title IX, § 911(b)(1), Aug. 9, 1989, 103 Stat. 478; Pub. L. 103–325, title III, § 308(a), Sept. 23, 1994, 108 Stat. 2218.) REFERENCES IN TEXT The Federal Deposit Insurance Act, referred to in subsec. (a), is act Sept. 21, 1950, ch. 967, § 2, 64 Stat. 873, as amended, which is classified generally to chapter 16 (§ 1811 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 1811 of this title and Tables. CODIFICATION R.S. § 5211 derived from act June 3, 1864, ch. 106, § 34, 13 Stat. 109, which was the National Bank Act, and act Mar. 3, 1869, ch. 130, § 1, 15 Stat. 326. See section 38 of this title. AMENDMENTS 1994—Subsec. (a). Pub. L. 103–325, § 308(a)(1), struck out before period at end of fifth sentence ‘‘; and the statement of resources and liabilities in the same form in which it is made to the Comptroller shall be pub- lished in a newspaper published in the place where such association is established, or if there is no newspaper in the place, then in the one published nearest thereto in the same county, at the expense of the association, and such proof of publication shall be furnished as may be required by the Comptroller’’. Subsec. (c). Pub. L. 103–325, § 308(a)(2), struck out after third sentence ‘‘The reports of such affiliates shall be published by the association under the same conditions as govern its own condition reports.’’ 1989—Subsec. (a). Pub. L. 101–73, § 911(b)(1)(A), in fifth sentence substituted ‘‘within the period of time speci- fied by the Comptroller’’ for ‘‘within ten days after the receipt of a request therefor from him’’. Subsec. (c). Pub. L. 101–73, § 911(b)(1)(B), struck out at end ‘‘Any such affiliated bank which fails to obtain and furnish any report required under this section shall be subject to a penalty of $100 for each day during which such failure continues.’’ 1966—Subsec. (c). Pub. L. 89–485 struck out second sentence stating that the term ‘‘affiliate’’ shall include holding company affiliates as well as other affiliates. 1960—Subsec. (a). Pub. L. 86–671, § 5(a), designated ex- isting provisions of former first par. as subsec. (a), sub- stituted provisions relating to the making of reports of condition in accordance with the Federal Deposit In- surance Act and additional reports of condition con- taining declaration of officer for former provisions re- quiring minimum of three reports annually verified by an officer, inserted provisions respecting contents and publication of special reports and deleted requirement for making reports of payment of dividends, which is incorporated in subsec. (b) of this section. Page 62 TITLE 12—BANKS AND BANKING § 162 1 So in original. Probably should be ‘‘section’’. Subsec. (b). Pub. L. 86–671, § 5(a), designated existing provisions of former first par. as subsec. (b). Subsec. (c). Pub. L. 86–671, § 5(b), designated existing provisions of former second par. as subsec. (c) and sub- stituted ‘‘four’’ for ‘‘three’’ in first sentence. 1959—Pub. L. 86–230 required transmission of reports to the Comptroller within ten instead of five days and the making of reports of the payment of dividends in- cluding advance reports of dividends proposed to be de- clared or paid, respectively. 1933—Act June 16, 1933, added second par. 1927—Act Feb. 25, 1927, inserted ‘‘or of a vice-presi- dent, or of an assistant cashier of the association des- ignated by its board of directors to verify such reports in the absence of the president and cashier, taken be- fore a notary public properly authorized and commis- sioned by the State in which such notary resides and the association is located, or any other officer having an official seal, authorized in such State to administer oaths’’ in first sentence, and ‘‘and the statement of re- sources and liabilities together with acknowledgment and attestation’’, in second sentence. EFFECTIVE DATE OF 1989 AMENDMENT Section 911(i)[(g)] of Pub. L. 101–73 provided that: ‘‘The amendments made by this section [amending this section and sections 164, 324, 1782, 1817, 1847, and 1882 of this title] shall apply with respect to reports filed or required to be filed after the date of the enactment of this Act [Aug. 9, 1989].’’ EFFECTIVE DATE OF 1960 AMENDMENT Amendment by Pub. L. 86–671 effective Jan. 1, 1961, see section 7 of Pub. L. 86–671, set out as a note under section 1817 of this title. EXCEPTION AS TO TRANSFER OF FUNCTIONS Functions vested by any provision of law in Comp- troller 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. § 162. Repealed. Pub. L. 86–671, § 6, July 14, 1960, 74 Stat. 552. Section, act Feb. 26, 1881, ch. 82, 21 Stat. 352, pre- scribed the manner of verification of reports of condi- tion of national banks. See section 1817 of this title. EFFECTIVE DATE OF REPEAL Repeal effective Jan. 1, 1961, see section 7 of Pub. L. 86–671, set out as an Effective Date of 1960 Amendment note under section 1817 of this title. § 163. Repealed. Pub. L. 86–230, § 22(a), Sept. 8, 1959, 73 Stat. 466 Section, R.S. § 5212, related to report of dividends and net earnings. See section 161 of this title. § 164. Penalty for failure to make reports (a) First tier Any association which— (1) maintains procedures reasonably adapted to avoid any inadvertent error and, uninten- tionally and as a result of such an error— (A) fails to make, obtain, transmit, or pub- lish any report or information required by the Comptroller of the Currency under sec- tion 161 of this title, within the period of time specified by the Comptroller; or (B) submits or publishes any false or mis- leading report or information; or (2) inadvertently transmits or publishes any report which is minimally late, shall be subject to a penalty of not more than $2,000 for each day during which such failure continues or such false or misleading informa- tion is not corrected. The association shall have the burden of proving that an error was inad- vertent and that a report was inadvertently transmitted or published late. (b) Second tier Any association which— (1) fails to make, obtain, transmit, or pub- lish any report or information required by the Comptroller of the Currency under section 161 of this title, within the period of time speci- fied by the Comptroller; or (2) submits or publishes any false or mislead- ing report or information, in a manner not described in subsection (a) of this section shall be subject to a penalty of not more than $20,000 for each day during which such failure continues or such false or mislead- ing information is not corrected. (c) Third tier Notwithstanding subsections (a) and (b) of this section, if any association knowingly or with reckless disregard for the accuracy of any infor- mation or report described in subsection (b) of this section submits or publishes any false or misleading report or information, the Comptrol- ler may assess a penalty of not more than $1,000,000 or 1 percent of total assets of the asso- ciation, whichever is less, per day for each day during which such failure continues or such false or misleading information is not corrected. (d) Assessment; etc. Any penalty imposed under subsection (a), (b), or (c) of this section shall be assessed and col- lected by the Comptroller of the Currency in the manner provided in subparagraphs (E), (F), (G), and (I) of section 1818(i)(2) of this title (for pen- alties imposed under such section) and any such assessment (including the determination of the amount of the penalty) shall be subject to the provisions of such section. (e) Hearing Any association against which any penalty is assessed under this subsection 1 shall be afforded an agency hearing if such association submits a request for such hearing within 20 days after the issuance of the notice of assessment. Section 1818(h) of this title shall apply to any proceeding under this section. (R.S. § 5213; Pub. L. 86–230, § 12, Sept. 8, 1959, 73 Stat. 458; Pub. L. 101–73, title IX, § 911(b)(2), Aug. 9, 1989, 103 Stat. 478.) CODIFICATION R.S. § 5213 derived from act Mar. 3, 1869, ch. 130, §§ 1, 2, 15 Stat. 326, 327. AMENDMENTS 1989—Pub. L. 101–73 amended section generally. Prior to amendment, section read as follows: ‘‘Every associa- tion which fails to make and transmit any report re- quired under section 161 of this title shall be subject to a penalty of $100 for each day after the periods, respec- tively, therein mentioned, that it delays to make and transmit its report. Whenever any association delays or refuses to pay the penalty herein imposed, after it has Page 65 TITLE 12—BANKS AND BANKING § 192 1 See References in Text note below. national banking association’’ in introductory provi- sions. Pub. L. 102–550, § 1603(d)(6), amended directory lan- guage of Pub. L. 102–242, § 133(b). See 1991 Amendment note below. 1991—Pub. L. 102–242, § 133(b), as amended by Pub. L. 102–550, § 1603(d)(6), amended section generally. Prior to amendment, section read as follows: ‘‘Whenever any na- tional banking association shall be dissolved, and its rights, privileges, and franchises declared forfeited, as prescribed in section 93 of this title, or whenever any creditor of any national banking association shall have obtained a judgment against it in any court of record, and made application, accompanied by a certificate from the clerk of the court stating that such judgment has been rendered and has remained unpaid for the space of thirty days, or whenever the comptroller shall become satisfied of the insolvency of a national bank- ing association, he may, after due examination of its affairs, in either case, appoint a receiver, who shall pro- ceed to close up such association.’’ 1959—Pub. L. 86–230 struck out provisions which re- quired receiver to enforce the personal liability of shareholders. EFFECTIVE DATE OF 2006 AMENDMENT Pub. L. 109–351, title VII, § 701(c), Oct. 13, 2006, 120 Stat. 1985, provided that: ‘‘The amendments made by subsections (a) and (b) [amending this section and sec- tion 1821 of this title] shall apply with respect to con- servators or receivers appointed on or after the date of enactment of this Act [Oct. 13, 2006].’’ EFFECTIVE DATE OF 1992 AMENDMENT Section 1609 of Pub. L. 102–550 provided that: ‘‘(a) IN GENERAL.—Except as provided in subsection (b) or any other provision of this subtitle [subtitle A (§§ 1601–1609) of title XVI of Pub. L. 102–550, see Tables for classification], the amendments made by this sub- title to the Federal Deposit Insurance Corporation Im- provement Act of 1991, the Federal Deposit Insurance Act, and any other law shall take effect as if such amendments had been included in the Federal Deposit Insurance Corporation Improvement Act of 1991 [Pub. L. 102–242] as of the date of the enactment of such Act [Dec. 19, 1991]. ‘‘(b) EFFECTIVE DATE OF CERTAIN AMENDMENTS.—In the case of any amendment made by this subtitle to any provision of law added or amended by the Federal Deposit Insurance Corporation Improvement Act of 1991 [see Tables for classification] effective after December 19, 1992, the amendment made by this subtitle shall take effect on the effective date of the amendment made by the Federal Deposit Insurance Corporation Im- provement Act of 1991.’’ EFFECTIVE DATE OF 1991 AMENDMENT Section 133(g) of Pub. L. 102–242 provided that: ‘‘The amendments made by this section [amending this sec- tion and sections 203, 248, 1464, and 1821 of this title] shall become effective 1 year after the date of enact- ment of this Act [Dec. 19, 1991].’’ SHORT TITLE Section 1 of act June 30, 1876, as added by act Oct. 28, 1992, Pub. L. 102–550, title XVI, § 1603(d)(7)(A), 106 Stat. 4080, provided that: ‘‘This Act [enacting this section, sections 65 and 197 of this title, and section 424 of former Title 31, Money and Finance, and amending sec- tion 55 of this title] may be cited as the ‘National Bank Receivership Act’.’’ EXCEPTION AS TO TRANSFER OF FUNCTIONS Functions vested by any provision of law in Comp- troller 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. APPLICATION TO DISTRICT OF COLUMBIA Provisions of this section were made applicable to banks, etc., in the District of Columbia by act Mar. 4, 1933, ch. 274, § 4, 47 Stat. 1567. TERMINATION OF NATIONAL BANK CLOSED RECEIVERSHIP FUND Pub. L. 96–221, title VII, §§ 721–723, Mar. 31, 1980, 94 Stat. 190, 191, as amended Pub. L. 97–320, title IV, § 409, Oct. 15, 1982, 96 Stat. 1515, provided that: ‘‘SEC. 721. The purpose of this part [enacting this pro- vision] is to terminate the closed receivership fund by— ‘‘(1) providing final notice of availability of liq- uidating dividends to creditors of national banks which have been closed and for which the Comptroller has appointed a receiver other than the Federal De- posit Insurance Corporation; ‘‘(2) barring rights of creditors to collect liquidat- ing dividends from the Comptroller of the Currency after a reasonable period of time following such final notice; and ‘‘(3) refunding to the Comptroller the principal amount of such fund and any income earned thereon. ‘‘SEC. 722. For purposes of this part— ‘‘(1) the term ‘closed receivership fund’ means the aggregation of undisbursed liquidating dividends from national banks which have been closed and for which the Comptroller has appointed a receiver other than the Federal Deposit Insurance Corporation, held by the Comptroller in his capacity as successor to re- ceivers of those banks; ‘‘(2) the term ‘Comptroller’ means the Comptroller of the Currency; ‘‘(3) the term ‘claimant’ means a depositor or other creditor who asserts a claim against a closed national bank for a liquidating dividend; and ‘‘(4) the term ‘liquidating dividend’ means an amount of money in the closed receivership fund de- termined by a receiver of a closed national bank or by the Comptroller to be owed by that bank to a de- positor or other creditor. ‘‘SEC. 723. (a) The Comptroller shall publish notice once a week for four weeks in the Federal Register that all rights of depositors and other creditors of closed na- tional banks to collect liquidating dividends from the closed receivership fund shall be barred after twelve months following the last date of publication of such notice. ‘‘(b) The Comptroller shall pay the principal amount of a liquidating dividend, exclusive of any income earned thereon, to a claimant presenting a valid claim, if the claimant applies to collect within twelve months following the last date notice is published. ‘‘(c) If a creditor shall fail to apply to collect a liq- uidating dividend within twelve months after the last date notice is published, all rights of the claimant against the closed receivership fund with respect to the liquidating dividend shall be barred. ‘‘(d) The principal amount of any liquidating divi- dends (1) for which claims have not been asserted with- in twelve months following the last date notice is pub- lished or (2) for which the Comptroller has determined a valid claim has not been submitted shall, together with any income earned on liquidating dividends and other moneys, if any, remaining in the closed receiver- ship fund, be covered into the general funds of the Comptroller.’’ § 192. Default in payment of circulating notes On becoming satisfied, as specified in sections 131 and 132 1 of this title, that any association is in default, the Comptroller of the Currency may forthwith appoint a receiver, and require of him such bond and security as he deems proper. Such Page 66 TITLE 12—BANKS AND BANKING § 193 receiver, under the direction of the Comptroller, shall take possession of the books, records, and assets of every description of such association, collect all debts, dues, and claims belonging to it, and, upon the order of a court of record of competent jurisdiction, may sell or compound all bad or doubtful debts, and, on a like order, may sell all the real and personal property of such association, on such terms as the court shall direct. Such receiver shall pay over all money so made to the Treasurer of the United States, subject to the order of the Comptroller, and also make report to the Comptroller of all his acts and proceedings. Provided, That the Comptroller may, if he deems proper, deposit any of the money so made in any regular Government depositary, or in any State or national bank either of the city or town in which the insolvent bank was located, or of a city or town as adjacent thereto as practicable; if such deposit is made he shall require the de- positary to deposit United States bonds or other satisfactory securities with the Treasurer of the United States for the safekeeping and prompt payment of the money so deposited: Provided, That no security in the form of deposit of United States bonds, or otherwise, shall be required in the case of such parts of the deposits as are in- sured under section 12B of the Federal Reserve Act, as amended. Such depositary shall pay upon such money interest at such rate as the Comp- troller may prescribe, not less, however, than 2 per centum per annum upon the average month- ly amount of such deposits. (R.S. § 5234; May 15, 1916, ch. 121, 39 Stat. 121; Aug. 23, 1935, ch. 614, title III, § 339, 49 Stat. 721; Pub. L. 86–230, § 17, Sept. 8, 1959, 73 Stat. 458; Pub. L. 103–325, title VI, § 602(g)(11), Sept. 23, 1994, 108 Stat. 2294.) REFERENCES IN TEXT Sections 131 and 132 of this title, referred to in text, were repealed by Pub. L. 103–325, title VI, § 602(e)(14), (15), Sept. 23, 1994, 108 Stat. 2292. Section 12B of the Federal Reserve Act, as amended, referred to in text, formerly classified to section 264 of this title, has been withdrawn from the Federal Re- serve Act and incorporated in the Federal Deposit In- surance Act which is classified generally to chapter 16 (§ 1811 et seq.) of this title. CODIFICATION R.S. § 5234 derived from act June 3, 1864, ch. 106, § 50, 13 Stat. 114, which was part of the National Bank Act. See section 38 of this title. AMENDMENTS 1994—Pub. L. 103–325 struck out ‘‘has refused to pay its circulating notes as therein mentioned, and’’ before ‘‘is in default’’. 1959—Pub. L. 86–230 struck out provisions which re- quired receiver to enforce the personal liability of shareholders. 1935—Act Aug. 23, 1935, inserted second proviso in sec- ond par. TRANSFER OF FUNCTIONS For transfer of functions to Secretary of the Treas- ury, see note set out under section 55 of this title. APPLICATION TO DISTRICT OF COLUMBIA Provisions of this section were made applicable to banks, etc., in the District of Columbia by act Mar. 4, 1933, ch. 274, § 4, 47 Stat. 1567. INTEREST ON DEPOSITS So much of existing law requiring the payment of in- terest with respect to any funds deposited by the United States or by any public instrumentality, agen- cy, or officer thereof, as is inconsistent with former section 371a, sections 371b, 374, 374a, and 461, former sec- tions 462 to 465, and section 466 of this title, repealed, see former section 371a of this title. § 193. Notice to present claims The Comptroller shall, upon appointing a re- ceiver, cause notice to be given, by advertise- ment in such newspapers as he may direct, for three consecutive months, calling on all persons who may have claims against such association to present the same, and to make legal proof thereof. (R.S. § 5235.) CODIFICATION R.S. § 5235 derived from act June 3, 1864, ch. 106, § 50, 13 Stat. 114, which was part of the National Bank Act. See section 38 of this title. EXCEPTION AS TO TRANSFER OF FUNCTIONS Functions vested by any provision of law in Comp- troller 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. APPLICATION TO DISTRICT OF COLUMBIA Provisions of this section were made applicable to banks, etc., in the District of Columbia by act Mar. 4, 1933, ch. 274, § 4, 47 Stat. 1567. § 194. Dividends on adjusted claims; distribution of assets From time to time, the comptroller shall make a ratable dividend of the money so paid over to him by such receiver on all such claims as may have been proved to his satisfaction or adjudicated in a court of competent jurisdiction, and, as the proceeds of the assets of such asso- ciation are paid over to him, shall make further dividends on all claims previously proved or ad- judicated; and the remainder of the proceeds, if any, shall be paid over to the shareholders of such association, or their legal representatives, in proportion to the stock by them respectively held. (R.S. § 5236; Pub. L. 103–325, title VI, § 602(g)(12), Sept. 23, 1994, 108 Stat. 2294.) CODIFICATION R.S. § 5236 derived from act June 3, 1864, ch. 106, § 50, 13 Stat. 114, which was the National Bank Act. See sec- tion 38 of this title. AMENDMENTS 1994—Pub. L. 103–325 struck out ‘‘, after full provision has been first made for refunding to the United States any deficiency in redeeming the notes of such associa- tion’’ after ‘‘From time to time’’. EXCEPTION AS TO TRANSFER OF FUNCTIONS Functions vested by any provision of law in Comp- troller 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. APPLICATION TO DISTRICT OF COLUMBIA Provisions of this section were made applicable to banks, etc. in the District of Columbia by act Mar. 4, 1933, ch. 274, § 4, 47 Stat. 1567. Page 67 TITLE 12—BANKS AND BANKING § 197 § 195. Repealed. Pub. L. 103–325, title VI, § 602(e)(36), Sept. 23, 1994, 108 Stat. 2292 Section, R.S. § 5237; Mar. 3, 1911, ch. 231, § 289, 36 Stat. 1167, related to injunction by bank denying failure to redeem notes. § 196. Expenses All expenses of any preliminary or other ex- aminations into the condition of any association shall be paid by such association. All expenses of any receivership shall be paid out of the assets of such association before distribution of the proceeds thereof. (R.S. § 5238; Pub. L. 103–325, title VI, § 602(g)(13), Sept. 23, 1994, 108 Stat. 2294.) CODIFICATION R.S. § 5238 derived from act June 3, 1864, ch. 106, § 51, 13 Stat. 115, which was the National Bank Act. See sec- tion 38 of this title. AMENDMENTS 1994—Pub. L. 103–325 struck out at beginning ‘‘All fees for protesting the notes issued by any national banking association shall be paid by the person procuring the protest to be made, and such association shall be liable therefor; but no part of the bonds deposited by such as- sociation shall be applied to the payment of such fees.’’ § 197. Shareholders’ meeting; continuance of re- ceivership; appointment of agent; winding up business; distribution of assets (a) Whenever any national banking associa- tion shall have been or shall be placed in the hands of a receiver, as provided in section fifty- two hundred and thirty-four [12 U.S.C. 192] and other sections of the Revised Statutes of the United States and section 1821(c) of this title, and when, as provided in section 194 of this title, there has been paid to each and every creditor of such association whose claim or claims as such creditor shall have been proved or allowed as therein prescribed, the full amount of such claims, and all expenses of the receivership, the Comptroller of the Currency or the Federal De- posit Insurance Corporation, where that Cor- poration has been appointed receiver of the bank, shall call a meeting of the shareholders of the association by giving notice thereof for thir- ty days in a newspaper published in the town, city, or county where the business of the asso- ciation was carried on, or if no newspaper is there published, in the newspaper published nearest thereto. At such meeting the sharehold- ers shall determine whether the receiver shall be continued and shall wind up the affairs of the association, or whether an agent shall be elected for that purpose, and in so determining the shareholders shall vote by ballot, in person or by proxy, each share of stock entitling the holder to one vote, and the majority of the stock in number of shares shall be necessary to deter- mine whether the receiver shall be continued, or whether an agent shall be elected. In case such majority shall determine that the receiver shall be continued, the receiver shall thereupon pro- ceed with the execution of the trust, and shall sell, dispose of, or otherwise collect the assets of the association, and shall possess all the powers and authority, and be subject to all the duties and liabilities originally conferred or imposed upon such receiver so far as they remain appli- cable. In case such meeting shall, by the vote of a majority of the stock in number of shares, de- termine that an agent shall be elected, the meeting shall thereupon proceed to elect an agent, voting by ballot, in person or by proxy, each share of stock entitling the holder to one vote, and the person who shall receive votes rep- resenting at least a majority of stock in number of shares shall be declared the agent for the pur- poses hereinafter provided; and when such agent shall have executed a bond to the shareholders conditioned for the payment and discharge in full or, to the extent possible from the remain- ing assets of the association, of each and every claim that may thereafter be proved and allowed by and before a competent court and for the faithful performance of his duties, in the pen- alty fixed by the shareholders at such meeting, with a surety or sureties to be approved by the district court of the United States for the dis- trict where the business of the association was carried on, and shall have filed such bond in the office of the clerk of such court, the Comptroller and the receiver, or the Federal Deposit Insur- ance Corporation, where that Corporation has been appointed receiver of the bank, shall there- upon transfer and deliver to such agent all the uncollected or other assets of the association then remaining in the hands or subject to the order and control of the Comptroller and such receiver, or either of them, or the Federal De- posit Insurance Corporation; and for this pur- pose the Comptroller and such receiver, or the Federal Deposit Insurance Corporation, as the case may be, are severally empowered and di- rected to execute any deed, assignment, trans- fer, or other instrument in writing that may be necessary and proper; and upon the execution and delivery of such instrument to such agent the Comptroller and such receiver or the Fed- eral Deposit Insurance Corporation shall by vir- tue of this Act be discharged from any and all li- abilities to the association and to each and all the creditors and shareholders thereof. (b) Upon receiving such deed, assignment, transfer, or other instrument the person elected such agent shall hold, control, and dispose of the assets and property of the association which he may receive under the terms hereof for the bene- fit of the shareholders of the association, and he may in his own name, or in the name of the as- sociation, sue and be sued and do all other law- ful acts and things necessary to finally settle and distribute the assets and property in his hands, and may sell, compromise, or compound the debts due to the association, with the con- sent and approval of the district court of the United States for the district where the business of the association was carried on, and shall at the conclusion of his trust render to such dis- trict court a full account of all his proceedings, receipts, and expenditures as such agent, which court shall, upon due notice, settle and adjust such accounts and discharge such agent and sureties upon such bond. In case any such agent so elected shall die, resign, or be removed, any shareholder may call a meeting of the share- holders of the association in the town, city, or village where the business of the association was carried on, by giving notice thereof for thirty Page 70 TITLE 12—BANKS AND BANKING § 204 bank whenever the Comptroller of the Currency determines that 1 or more of the grounds speci- fied in section 11(c)(5) of the Federal Deposit In- surance Act [12 U.S.C. 1821(c)(5)] exist. (b) Judicial review (1) In general Not later than 20 days after the initial ap- pointment of a conservator pursuant to this section, the bank may bring an action in the United States district court for the judicial district in which the home office of such bank is located, or in the United States District Court for the District of Columbia, for an order requiring the Comptroller to terminate the appointment of the conservator, and the court, upon the merits, shall dismiss such ac- tion or shall direct the Comptroller to termi- nate the appointment of such conservator. The Comptroller’s decision to appoint a conserva- tor pursuant to this section shall be set aside only if the court finds that such decision was arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law. (2) Stay The conservator may request that any judi- cial action or proceeding to which the con- servator or the bank is or may become a party be stayed for a period of up to 45 days after the appointment of the conservator. Upon peti- tion, the court shall grant such stay as to all parties. (3) Actions and orders Except as otherwise provided in this sub- section, no court may take any action regard- ing the removal of a conservator, or restrain, or affect the exercise of powers or functions of a conservator. A court, upon application by the Comptroller, shall have jurisdiction to en- force an order of the Comptroller relating to— (A) the conservatorship and the bank in conservatorship, or (B) restraining or affecting the exercise of powers or functions of a conservator. (c) Additional grounds for appointment In addition to the foregoing provisions, the Comptroller may appoint a conservator for a bank if— (1) the bank, by an affirmative vote of a ma- jority of its board of directors or by an affirm- ative vote of a majority of its shareholders, consents to such appointment, or (2) the Federal Deposit Insurance Corpora- tion terminates the bank’s status as an in- sured bank. The appointment of a conservator pursuant to this subsection shall not be subject to review. (d) Exclusive authority The Comptroller shall have exclusive power and jurisdiction to appoint a conservator for a bank. Whenever the Comptroller appoints a con- servator for any bank, the Comptroller may ap- point the Federal Deposit Insurance Corporation conservator for such bank. The Federal Deposit Insurance Corporation, as such conservator, shall have all the powers granted under the Fed- eral Deposit Insurance Act [12 U.S.C. 1811 et seq.], and (when not inconsistent therewith) any other rights, powers, and privileges possessed by conservators of banks under this Act and any other provision of law. The Comptroller may also appoint another person as conservator, who shall be subject to the provisions of this Act. (e) Replacement of conservator The Comptroller may, without notice or hear- ing, replace a conservator with another con- servator. Such replacement shall not affect the bank’s right under subsection (b) of this section to obtain judicial review of the Comptroller’s original decision to appoint a conservator. (Mar. 9, 1933, ch. 1, title II, § 203, 48 Stat. 2; Pub. L. 101–73, title VIII, § 802, Aug. 9, 1989, 103 Stat. 442; Pub. L. 102–242, title I, § 133(c), Dec. 19, 1991, 105 Stat. 2271.) REFERENCES IN TEXT The Federal Deposit Insurance Act, referred to in subsec. (d), is act Sept. 21, 1950, ch. 967, § 2, 64 Stat. 873, as amended, which is classified generally to chapter 16 (§ 1811 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 1811 of this title and Tables. This Act, referred to in subsec. (d), is act Mar. 9, 1933, ch. 1, 48 Stat. 1, as amended, popularly known as the Emergency Banking and Bank Conservation Act, which is classified to sections 51a, 51b, 51c, 51d, 95 to 95b, 201 to 212, 248, 347b, 347c, 347d, 445 of this title and to sec- tion 5 of Title 50, Appendix, War and National Defense. Section 51d of this title was repealed by act June 30, 1947, ch. 166, title II, § 206(b), (o), 61 Stat. 208. For effect of the repeal on outstanding debentures held by banks, see References in Text note set out under section 51b–1 of this title. AMENDMENTS 1991—Subsec. (a). Pub. L. 102–242 amended subsec. (a) generally, substituting present provisions for provi- sions which specified circumstances under which Comp- troller could appoint conservator. 1989—Pub. L. 101–73 amended section generally, changing structure of section from a single unlettered paragraph to one consisting of subsections (a) to (e). EFFECTIVE DATE OF 1991 AMENDMENT Amendment by Pub. L. 102–242 effective 1 year after Dec. 19, 1991, see section 133(g) of Pub. L. 102–242, set out as a note under section 191 of this title. EXCEPTION AS TO TRANSFER OF FUNCTIONS Functions vested by any provision of law in Comp- troller 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. CONSERVATORS OF STATE BANKS Ex. Ord. No. 6080, Mar. 18, 1933, provided for appoint- ment of conservators of State banks under certain reg- ulations. § 204. Examinations The Comptroller of the Currency (in consulta- tion with the Board of Directors of the Federal Deposit Insurance Corporation when the Cor- poration is appointed conservator) is authorized to examine and supervise the bank in con- servatorship as long as the bank continues to operate as a going concern. The Comptroller may use reports and other information provided by the Federal Deposit Insurance Corporation for this purpose. (Mar. 9, 1933, ch. 1, title II, § 204, 48 Stat. 3; Pub. L. 101–73, title VIII, § 803, Aug. 9, 1989, 103 Stat. 443.) Page 71 TITLE 12—BANKS AND BANKING § 206 1 So in original. Probably should be ‘‘Comptroller of the Cur- rency’’. 1 So in original. Probably should be ‘‘Comptroller of the Cur- rency’’. AMENDMENTS 1989—Pub. L. 101–73 amended section generally. Prior to amendment, section read as follows: ‘‘The Comptrol- ler of the Currency shall cause to be made such exami- nations of the affairs of such bank as shall be necessary to inform him as to the financial condition of such bank, and the examiner shall make a report thereon to the Comptroller of the Currency at the earliest prac- ticable date.’’ EXCEPTION AS TO TRANSFER OF FUNCTIONS Functions vested by any provision of law in Comp- troller 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. § 205. Termination of conservatorship (a) General rule At any time the Comptroller 1 becomes sat- isfied that it may safely be done and that it would be in the public interest, the Comptroller (with the agreement of the Board of Directors of the Federal Deposit Insurance Corporation when the Corporation has been appointed conservator) may— (1) terminate the conservatorship and per- mit the involved bank to resume the trans- action of its business subject to such terms, conditions, and limitations as the Comptroller may prescribe; or (2) terminate the conservatorship upon a sale, merger, consolidation, purchase and as- sumption, change in control, or voluntary dis- solution and liquidation of the involved bank. (b) Other grounds for termination The Comptroller also may terminate the con- servatorship upon the appointment of a receiver pursuant to section 191 of this title. (c) Enforcement under Federal Deposit Insur- ance Act Such terms, conditions, and limitations as may be prescribed under subsection (a)(1) of this section shall be enforceable under the provisions of section 8(i) of the Federal Deposit Insurance Act [12 U.S.C. 1818(i)], to the same extent as an order issued pursuant to section 8(b) of the Fed- eral Deposit Insurance Act [12 U.S.C. 1818(b)] which has become final. The bank may bring an action in the United States district court for the judicial district in which the home office of such bank is located or in the United States District Court for the District of Columbia for an order requiring the Comptroller to terminate the order. An action for judicial review of the terms, conditions, and limitations may not be com- menced later than 20 days from the date of the termination of the conservatorship or the impo- sition of the order, whichever is later. (d) Action upon termination (1) In general Upon termination of the conservatorship under subsection (a)(2) of this section, the Federal Deposit Insurance Corporation, as conservator, or when another person is ap- pointed conservator, such other person, shall conclude the affairs of the conservatorship in accordance with paragraph (2). (2) Deposit and distribution of proceeds (A) Within 180 days of the sale, merger, con- solidation, purchase and assumption, change in control, or voluntary dissolution and liq- uidation, the conservator shall deposit all net proceeds received from the transaction, less any outstanding expenses of the conservator- ship, with the United States district court for the judicial district in which the home office of such bank is located and shall cause notice to be published for three consecutive months and notify by mail all known and remaining creditors and shareholders. Within 60 days thereafter, any depositor, creditor, or other claimant of the bank, or any shareholder of the bank may bring an action in interpleader in that court for distribution of the proceeds. The district court shall distribute such funds equitably. If no such action is instituted with- in one year after the date the funds are depos- ited with the district court, title to such net proceeds shall revert to the United States and the district court shall remit the funds to the Treasury of the United States. (B) The conservator shall be deemed to have discharged all responsibility of the con- servatorship upon the deposit of the proceeds with the district court and giving the required notifications. (Mar. 9, 1933, ch. 1, title II, § 205, 48 Stat. 3; Pub. L. 101–73, title VIII, § 804, Aug. 9, 1989, 103 Stat. 443.) REFERENCES IN TEXT The Federal Deposit Insurance Act, referred to in subsec. (c), is act Sept. 21, 1950, ch. 967, § 2, 64 Stat. 873, as amended, which is classified generally to chapter 16 (§ 1811 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 1811 of this title and Tables. AMENDMENTS 1989—Pub. L. 101–73 amended section generally. Prior to amendment, section read as follows: ‘‘If the Comp- troller of the Currency becomes satisfied that it may safely be done and that it would be in the public inter- est, he may, in his discretion, terminate the con- servatorship and permit such bank to resume the trans- action of its business subject to such terms, conditions, restrictions and limitations as he may prescribe.’’ EXCEPTION AS TO TRANSFER OF FUNCTIONS Functions vested by any provision of law in Comp- troller 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. § 206. Conservator; powers and duties (a) General powers A conservator shall have all the powers of the shareholders, directors, and officers of the bank and may operate the bank in its own name un- less the Comptroller 1 in the order of appoint- ment limits the conservator’s authority. (b) Subject to rules of Comptroller The conservator shall be subject to such rules, regulations, and orders as the Comptroller from time to time deems appropriate; and, except as Page 72 TITLE 12—BANKS AND BANKING §§ 207, 208 1 So in original. Probably should be ‘‘Comptroller of the Cur- rency’’. otherwise specifically provided in such rules, regulations, or orders or in section 209 of this title, shall have the same rights and privileges and be subject to the same duties, restrictions, penalties, conditions, and limitations as apply to directors, officers, or employees of a national bank. (c) Payment of depositors and creditors The Comptroller may require the conservator to set aside and make available for withdrawal by depositors and payment to other creditors such amounts as in the opinion of the Comptrol- ler may safely be used for that purpose. All de- positors and creditors who are similarly situ- ated shall be treated in the same manner. (d) Compensation of conservator and employees The conservator and professional employees appointed to represent or assist the conservator shall not be paid amounts greater than are pay- able to employees of the Federal Government for similar services, except that the Comptroller of the Currency may authorize payment at high- er rates (but not in excess of rates prevailing in the private sector), if the Comptroller deter- mines that paying such higher rates is necessary in order to recruit and retain competent person- nel. (e) Expenses All expenses of any such conservatorship shall be paid by the bank and shall be a lien upon the bank which shall be prior to any other lien. (Mar. 9, 1933, ch. 1, title II, § 206, 48 Stat. 3; Pub. L. 101–73, title VIII, § 805, Aug. 9, 1989, 103 Stat. 445.) AMENDMENTS 1989—Pub. L. 101–73 amended section generally. Prior to amendment, section read as follows: ‘‘While such bank is in the hands of the conservator appointed by the Comptroller of the Currency, the Comptroller may require the conservator to set aside and make available for withdrawal by depositors and payment to other creditors, on a ratable basis, such amounts as in the opinion of the Comptroller may safely be used for this purpose; and the Comptroller may, in his discretion, permit the conservator to receive deposits, but deposits received while the bank is in the hands of the conserva- tor shall not be subject to any limitation as to pay- ment or withdrawal, and such deposits shall be seg- regated and shall not be used to liquidate any indebted- ness of such bank existing at the time that a conserva- tor was appointed for it, or any subsequent indebted- ness incurred for the purpose of liquidating any indebt- edness of such bank existing at the time such conserva- tor was appointed. Such deposits received while the bank is in the hands of the conservator shall be kept on hand in cash, invested in the direct obligations of the United States, or deposited with a Federal reserve bank. The Federal reserve banks are authorized to open and maintain separate deposit accounts for such pur- pose, or for the purpose of receiving deposits from State officials in charge of State banks under similar circumstances.’’ EXCEPTION AS TO TRANSFER OF FUNCTIONS Functions vested by any provision of law in Comp- troller 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. §§ 207, 208. Repealed. Pub. L. 101–73, title VIII, § 808, Aug. 9, 1989, 103 Stat. 446 Section 207, acts Mar. 9, 1933, ch. 1, title II, § 207, 48 Stat. 3; May 20, 1933, ch. 34, 48 Stat. 72, prescribed con- ditions for reorganization of banks, requiring consent of depositors and other creditors, of stockholders, or of both depositors and other creditors and stockholders, namely that the reorganization plan be fair and equi- table to depositors, other creditors, and stockholders and be in the public interest; that the plan be con- sented to in writing; and that the approved plan be binding on all consenting or nonconsenting depositors, creditors, and stockholders. Section 208, act Mar. 9, 1933, ch. 1, title II, § 208, 48 Stat. 4, made the provisions for segregation of deposits inapplicable after termination of conservatorship, and provided for termination of conservatorship after publi- cation of notice of termination and mailing of a copy of such notice by registered mail to depositors of record. § 209. Liability protection (a) Federal agency and employees In any case in which the conservator is a Fed- eral agency or an employee of the Government, the provisions of chapters 161 and 171 of title 28 shall apply with respect to such conservator’s li- ability for acts or omissions performed pursuant to and in the course of the duties and respon- sibilities of the conservatorship. (b) Other conservators In any case where the conservator is not a conservator described in subsection (a) of this section, the conservator shall not be liable for damages in tort or otherwise for acts or omis- sions performed pursuant to and in the course of the duties and responsibilities of the con- servatorship, unless such acts or omissions con- stitute gross negligence, including any similar conduct or any form of intentional tortious con- duct, as determined by a court. (c) Indemnification The Comptroller 1 shall have authority to in- demnify the conservator on such terms as the Comptroller deems proper. (Mar. 9, 1933, ch. 1, title II, § 209, 48 Stat. 5; Sept. 3, 1954, ch. 1263, § 23, 68 Stat. 1234; Pub. L. 101–73, title VIII, § 806, Aug. 9, 1989, 103 Stat. 445.) AMENDMENTS 1989—Pub. L. 101–73 amended section generally. Prior to amendment, section read as follows: ‘‘Conservators appointed pursuant to the provisions of this subchapter shall be subject to the provisions of and to the pen- alties prescribed by sections 334, 656, and 1005 of title 18; and sections 202, 216, 281, 431, 432, and 433 of title 18, in so far as applicable, are extended to apply to contracts, agreements, proceedings, dealings, claims and con- troversies by or with any such conservator or the Comptroller of the Currency under the provisions of this subchapter.’’ 1954—Act Sept. 3, 1954, corrected references to title 18. EXCEPTION AS TO TRANSFER OF FUNCTIONS Functions vested by any provision of law in Comp- troller 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. § 210. Governmental powers unimpaired Nothing in this subchapter shall be construed to impair in any manner any powers of the Page 75 TITLE 12—BANKS AND BANKING § 215 AMENDMENTS 1954—Act Sept. 3, 1954, substituted ‘‘this subchapter and section 321 of this title’’ for ‘‘sections 214 to 214c, 264(e)(2), (i)(2), (v)(4), and 321 of this title’’. 1952—Act July 12, 1952, amended section so that the limitation of this section beyond which State law can- not go will be measured by the standard set out in sec- tion 214a of this title for National-to-State conversions. § 214d. Prohibition on conversion A national banking association may not con- vert to a State bank or State savings associa- tion during any period in which the national banking association is subject to a cease and de- sist order (or other formal enforcement order) issued by, or a memorandum of understanding entered into with, the Comptroller of the Cur- rency with respect to a significant supervisory matter. (Aug. 17, 1950, ch. 729, § 10, as added Pub. L. 111–203, title VI, § 612(a), July 21, 2010, 124 Stat. 1612.) EFFECTIVE DATE Section effective 1 day after July 21, 2010, except as otherwise provided, see section 4 of Pub. L. 111–203, set out as a note under section 5301 of this title. SUBCHAPTER XVI—CONSOLIDATION AND MERGER § 215. Consolidation of banks within same State (a) In general Any national bank or any bank incorporated under the laws of any State may, with the ap- proval of the Comptroller, be consolidated with one or more national banking associations lo- cated in the same State under the charter of a national banking association on such terms and conditions as may be lawfully agreed upon by a majority of the board of directors of each asso- ciation or bank proposing to consolidate, and be ratified and confirmed by the affirmative vote of the shareholders of each such association or bank owning at least two-thirds of its capital stock outstanding, or by a greater proportion of such capital stock in the case of such State bank if the laws of the State where it is orga- nized so require, at a meeting to be held on the call of the directors after publishing notice of the time, place, and object of the meeting for four consecutive weeks in a newspaper of gen- eral circulation published in the place where the association or bank is located, or, if there is no such newspaper, then in the paper of general cir- culation published nearest thereto, and after sending such notice to each shareholder of record by certified or registered mail at least ten days prior to the meeting, except to those shareholders who specifically waive notice, but any additional notice shall be given to the shareholders of such State bank which may be required by the laws of the State where it is or- ganized. Publication of notice may be waived, in cases where the Comptroller determines that an emergency exists justifying such waiver, by unanimous action of the shareholders of the as- sociation or State bank. (b) Liability of consolidated association; capital stock; dissenting shareholders The consolidated association shall be liable for all liabilities of the respective consolidating banks or associations. The capital stock of such consolidated association shall not be less than that required under existing law for the organi- zation of a national bank in the place in which it is located: Provided, That if such consolida- tion shall be voted for at such meetings by the necessary majorities of the shareholders of each association and State bank proposing to consoli- date, and thereafter the consolidation shall be approved by the Comptroller, any shareholder of any of the associations or State banks so con- solidated who has voted against such consolida- tion at the meeting of the association or bank of which he is a stockholder, or who has given no- tice in writing at or prior to such meeting to the presiding officer that he dissents from the plan of consolidation, shall be entitled to receive the value of the shares so held by him when such consolidation is approved by the Comptroller upon written request made to the consolidated association at any time before thirty days after the date of consummation of the consolidation, accompanied by the surrender of his stock cer- tificates. (c) Valuation of shares The value of the shares of any dissenting shareholder shall be ascertained, as of the effec- tive date of the consolidation, by an appraisal made by a committee of three persons, com- posed of (1) one selected by the vote of the hold- ers of the majority of the stock, the owners of which are entitled to payment in cash; (2) one selected by the directors of the consolidated banking association; and (3) one selected by the two so selected. The valuation agreed upon by any two of the three appraisers shall govern. If the value so fixed shall not be satisfactory to any dissenting shareholder who has requested payment, that shareholder may, within five days after being notified of the appraised value of his shares, appeal to the Comptroller, who shall cause a reappraisal to be made which shall be final and binding as to the value of the shares of the appellant. (d) Appraisal by Comptroller; expenses of con- solidated association; sale and resale of shares; State appraisal and consolidation law If, within ninety days from the date of con- summation of the consolidation, for any reason one or more of the appraisers is not selected as herein provided, or the appraisers fail to deter- mine the value of such shares, the Comptroller shall upon written request of any interested party cause an appraisal to be made which shall be final and binding on all parties. The expenses of the Comptroller in making the reappraisal or the appraisal, as the case may be, shall be paid by the consolidated banking association. The value of the shares ascertained shall be prompt- ly paid to the dissenting shareholders by the consolidated banking association. Within thirty days after payment has been made to all dis- senting shareholders as provided for in this sec- tion the shares of stock of the consolidated banking association which would have been de- livered to such dissenting shareholders had they not requested payment shall be sold by the con- solidated banking association at an advertised public auction, unless some other method of sale is approved by the Comptroller, and the consoli- Page 76 TITLE 12—BANKS AND BANKING § 215a dated banking association shall have the right to purchase any of such shares at such public auction, if it is the highest bidder therefor, for the purpose of reselling such shares within thir- ty days thereafter to such person or persons and at such price not less than par as its board of di- rectors by resolution may determine. If the shares are sold at public auction at a price greater than the amount paid to the dissenting shareholders the excess in such sale price shall be paid to such shareholders. The appraisal of such shares of stock in any State bank shall be determined in the manner prescribed by the law of the State in such cases, rather than as pro- vided in this section, if such provision is made in the State law; and no such consolidation shall be in contravention of the law of the State under which such bank is incorporated. (e) Status of consolidated association; property rights and interests vested and held as fidu- ciary The corporate existence of each of the consoli- dating banks or banking associations participat- ing in such consolidation shall be merged into and continued in the consolidated national banking association and such consolidated na- tional banking association shall be deemed to be the same corporation as each bank or banking association participating in the consolidation. All rights, franchises, and interests of the indi- vidual consolidating banks or banking associa- tions in and to every type of property (real, per- sonal, and mixed) and choses in action shall be transferred to and vested in the consolidated na- tional banking association by virtue of such consolidation without any deed or other trans- fer. The consolidated national banking associa- tion, upon the consolidation and without any order or other action on the part of any court or otherwise, shall hold and enjoy all rights of property, franchises, and interests, including ap- pointments, designations, and nominations, and all other rights and interests as trustee, execu- tor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver, and committee of estates of lunatics, and in every other fiduciary capacity, in the same manner and to the same extent as such rights, franchises, and interests were held or enjoyed by any one of the consolidating banks or banking associations at the time of consolidation, sub- ject to the conditions hereinafter provided. (f) Removal as fiduciary; discrimination Where any consolidating bank or banking as- sociation, at the time of the consolidation, was acting under appointment of any court as trust- ee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, re- ceiver, or committee of estates of lunatics, or in any other fiduciary capacity, the consolidated national banking association shall be subject to removal by a court of competent jurisdiction in the same manner and to the same extent as was such consolidating bank or banking association prior to the consolidation. Nothing contained in this section shall be considered to impair in any manner the right of any court to remove the consolidated national banking association and to appoint in lieu thereof a substitute trustee, executor, or other fiduciary, except that such right shall not be exercised in such a manner as to discriminate against national banking asso- ciations, nor shall any consolidated national banking association be removed solely because of the fact that it is a national banking associa- tion. (g) Issuance of stock by consolidated association; preemptive rights Stock of the consolidated national banking as- sociation may be issued as provided by the terms of the consolidation agreement, free from any preemptive rights of the shareholders of the respective consolidating banks. (Nov. 7, 1918, ch. 209, § 2, formerly § 1, as added Pub. L. 86–230, § 20, Sept. 8, 1959, 73 Stat. 460; re- numbered § 2 and amended Pub. L. 103–328, title I, § 102(b)(4)(C), Sept. 29, 1994, 108 Stat. 2351.) CODIFICATION Provisions similar to those comprising this section were contained in sections 1 and 2 of act Nov. 7, 1918, ch. 209, 40 Stat. 1043, and section 3 of act Nov. 7, 1918, ch. 209, added Feb. 25, 1927, ch. 191, § 1, 44 Stat. 1225 (for- merly classified to sections 33 to 34a of this title) prior to the complete amendment and renumbering of act Nov. 7, 1918, by Pub. L. 86–230. AMENDMENTS 1994—Pub. L. 103–328 inserted section catchline and, in subsec. (a), inserted heading and substituted ‘‘Any national bank’’ for ‘‘Any national banking associa- tion’’. SHORT TITLE Section 1 of act Nov. 7, 1918, ch. 209, as added Sept. 29, 1994, Pub. L. 103–328, title I, § 102(b)(4)(C), 108 Stat. 2351, provided that: ‘‘This Act [enacting this subchapter] may be cited as the ‘National Bank Consolidation and Merger Act’.’’ § 215a. Merger of national banks or State banks into national banks (a) Approval of Comptroller, board and share- holders; merger agreement; notice; capital stock; liability of receiving association One or more national banking associations or one or more State banks, with the approval of the Comptroller, under an agreement not incon- sistent with this subchapter, may merge into a national banking association located within the same State, under the charter of the receiving association. The merger agreement shall— (1) be agreed upon in writing by a majority of the board of directors of each association or State bank participating in the plan of merg- er; (2) be ratified and confirmed by the affirma- tive vote of the shareholders of each such as- sociation or State bank owning at least two- thirds of its capital stock outstanding, or by a greater proportion of such capital stock in the case of a State bank if the laws of the State where it is organized so require, at a meeting to be held on the call of the directors, after publishing notice of the time, place, and ob- ject of the meeting for four consecutive weeks in a newspaper of general circulation pub- lished in the place where the association or State bank is located, or, if there is no such newspaper, then in the newspaper of general circulation published nearest thereto, and Page 77 TITLE 12—BANKS AND BANKING § 215a after sending such notice to each shareholder of record by certified or registered mail at least ten days prior to the meeting, except to those shareholders who specifically waive no- tice, but any additional notice shall be given to the shareholders of such State bank which may be required by the laws of the State where it is organized. Publication of notice may be waived, in cases where the Comptroller determines that an emergency exists justify- ing such waiver, by unanimous action of the shareholders of the association or State banks; (3) specify the amount of the capital stock of the receiving association, which shall not be less than that required under existing law for the organization of a national bank in the place in which it is located and which will be outstanding upon completion of the merger, the amount of stock (if any) to be allocated, and cash (if any) to be paid, to the sharehold- ers of the association or State bank being merged into the receiving association; and (4) provide that the receiving association shall be liable for all liabilities of the associa- tion or State bank being merged into the re- ceiving association. (b) Dissenting shareholders If a merger shall be voted for at the called meetings by the necessary majorities of the shareholders of each association or State bank participating in the plan of merger, and there- after the merger shall be approved by the Comp- troller, any shareholder of any association or State bank to be merged into the receiving asso- ciation who has voted against such merger at the meeting of the association or bank of which he is a stockholder, or has given notice in writ- ing at or prior to such meeting to the presiding officer that he dissents from the plan of merger, shall be entitled to receive the value of the shares so held by him when such merger shall be approved by the Comptroller upon written re- quest made to the receiving association at any time before thirty days after the date of con- summation of the merger, accompanied by the surrender of his stock certificates. (c) Valuation of shares The value of the shares of any dissenting shareholder shall be ascertained, as of the effec- tive date of the merger, by an appraisal made by a committee of three persons, composed of (1) one selected by the vote of the holders of the majority of the stock, the owners of which are entitled to payment in cash; (2) one selected by the directors of the receiving association; and (3) one selected by the two so selected. The valu- ation agreed upon by any two of the three ap- praisers shall govern. If the value so fixed shall not be satisfactory to any dissenting share- holder who has requested payment, that share- holder may, within five days after being notified of the appraised value of his shares, appeal to the Comptroller, who shall cause a reappraisal to be made which shall be final and binding as to the value of the shares of the appellant. (d) Application to shareholders of merging asso- ciations: appraisal by Comptroller; expenses of receiving association; sale and resale of shares; State appraisal and merger law If, within ninety days from the date of con- summation of the merger, for any reason one or more of the appraisers is not selected as herein provided, or the appraisers fail to determine the value of such shares, the Comptroller shall upon written request of any interested party cause an appraisal to be made which shall be final and binding on all parties. The expenses of the Comptroller in making the reappraisal or the appraisal, as the case may be, shall be paid by the receiving association. The value of the shares ascertained shall be promptly paid to the dissenting shareholders by the receiving associa- tion. The shares of stock of the receiving asso- ciation which would have been delivered to such dissenting shareholders had they not requested payment shall be sold by the receiving associa- tion at an advertised public auction, and the re- ceiving association shall have the right to pur- chase any of such shares at such public auction, if it is the highest bidder therefor, for the pur- pose of reselling such shares within thirty days thereafter to such person or persons and at such price not less than par as its board of directors by resolution may determine. If the shares are sold at public auction at a price greater than the amount paid to the dissenting shareholders, the excess in such sale price shall be paid to such dissenting shareholders. The appraisal of such shares of stock in any State bank shall be determined in the manner prescribed by the law of the State in such cases, rather than as pro- vided in this section, if such provision is made in the State law; and no such merger shall be in contravention of the law of the State under which such bank is incorporated. The provisions of this subsection shall apply only to sharehold- ers of (and stock owned by them in) a bank or association being merged into the receiving as- sociation. (e) Status of receiving association; property rights and interests vested and held as fidu- ciary The corporate existence of each of the merging banks or banking associations participating in such merger shall be merged into and continued in the receiving association and such receiving association shall be deemed to be the same cor- poration as each bank or banking association participating in the merger. All rights, fran- chises, and interests of the individual merging banks or banking associations in and to every type of property (real, personal, and mixed) and choses in action shall be transferred to and vest- ed in the receiving association by virtue of such merger without any deed or other transfer. The receiving association, upon the merger and without any order or other action on the part of any court or otherwise, shall hold and enjoy all rights of property, franchises, and interests, in- cluding appointments, designations, and nomi- nations, and all other rights and interests as trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver, and committee of estates of lunatics, and in every other fiduciary capacity, in the Page 80 TITLE 12—BANKS AND BANKING § 216 This Act, referred to in subsec. (c), probably means the National Bank Act, act June 3, 1864, ch. 106, 13 Stat. 99, as amended, which is classified principally to chap- ter 2 (§ 21 et seq.) of this title. For complete classifica- tion of this Act to the Code, see References in Text note set out under section 38 of this title. CODIFICATION Section was not enacted as part of act Nov. 7, 1918, ch. 209, as added Sept. 8, 1959, Pub. L. 86–230, § 20, 73 Stat. 460, which comprises this subchapter. AMENDMENTS 1996—Subsec. (b)(1). Pub. L. 104–208 substituted ‘‘under any applicable law’’ for ‘‘by section 1815(d)(3) of this title or any other applicable law’’. SUBCHAPTER XVII—DISPOSITION OF UN- CLAIMED PROPERTY RECOVERED FROM CLOSED NATIONAL BANKS § 216. Purpose The purpose of this subchapter is to dispose of unclaimed property in the possession, custody, or control of the Comptroller of the Currency by— (1) providing final notice of the availability of unclaimed property from closed national banks; (2) barring rights of claimants to obtain such property from the Comptroller after a reason- able period of time following such notice; and (3) authorizing the Comptroller to dispose of such property for which no claims have been filed and validated under this subchapter. (Pub. L. 96–221, title VII, § 731, as added Pub. L. 97–320, title IV, § 408, Oct. 15, 1982, 96 Stat. 1513; amended Pub. L. 109–351, title VII, § 725(c)(1), Oct. 13, 2006, 120 Stat. 2001; Pub. L. 109–356, title I, § 123(c)(1), Oct. 16, 2006, 120 Stat. 2029.) AMENDMENTS 2006—Par. (1). Pub. L. 109–351 and 109–356 amended par. (1) identically, striking out ‘‘and closed banks in the District of Columbia’’ before semicolon at end. § 216a. Definitions For purposes of this subchapter— (1) the term ‘‘Comptroller’’ means the Comp- troller of the Currency; (2) the term ‘‘unclaimed property’’ means any articles, items, assets, other property, or the proceeds thereof from safe deposit boxes or other safekeeping arrangements with closed national banks, which are in the possession, custody, or control of the Comptroller in its capacity as successor to receivers of those banks; and (3) the term ‘‘claimant’’ means any person or entity, including a State under applicable statutory law, asserting a demonstrable legal interest in title to, or custody or possession of, unclaimed property. (Pub. L. 96–221, title VII, § 732, as added Pub. L. 97–320, title IV, § 408, Oct. 15, 1982, 96 Stat. 1513; amended Pub. L. 109–351, title VII, § 725(c)(2), Oct. 13, 2006, 120 Stat. 2001; Pub. L. 109–356, title I, § 123(c)(2), Oct. 16, 2006, 120 Stat. 2029.) AMENDMENTS 2006—Par. (2). Pub. L. 109–351 and 109–356 amended par. (2) identically, striking out ‘‘or closed banks in the District of Columbia’’ after ‘‘closed national banks’’. § 216b. Disposition of unclaimed property (a) Limitations for filing claims; publication of notice in Federal Register; contents of no- tice; disclosure of descriptive information; inspection of specific property (1) Within twelve months following October 15, 1982, the Comptroller shall publish formal notice in the Federal Register that all claims to rights of any claimant to obtain title to, or custody or possession of, any unclaimed property in the possession, custody, or control of the Comptrol- ler must be filed within twelve months following the last date of publication of such formal no- tice in the Federal Register or shall thereafter be barred. (2) Such notice shall contain the names of last known owners, if any, names and locations of af- fected closed banks, and a general description of the types of unclaimed property held by the Comptroller. The Comptroller may provide addi- tional notice in local communities as it deems appropriate. (3)(A) The Comptroller shall not disclose, by publication, inspection or otherwise, informa- tion relating to the ownership or description of any specific unclaimed property prior to publi- cation of formal notice under this section. (B) Thereafter, the Comptroller shall disclose descriptive information of specific unclaimed property only to a claimant thereof. The Comp- troller may recoup expenses associated with any publication or other provision of notice from any sale of property authorized by this sub- chapter. Reasonable opportunity for inspection of specific property by a claimant thereof shall be provided in Washington, District of Colum- bia. (b) Delivery of property to claimant upon proof of entitlement; determination of validity of claims; recoupment of expenses; liability for losses; insurance requirements (1) The Comptroller shall deliver such prop- erty to any claimant or his or her legally au- thorized representative upon receiving proof deemed adequate by the Comptroller that such claimant is entitled to the property, but only if the claimant files for the property within twelve months following the last date formal notice is published in the Federal Register. (2)(A) The Comptroller shall have authority to determine the validity of all claims filed. The Comptroller may recoup expenses associated with the handling and processing of claims from any sale of property authorized by this sub- chapter. (B) All expenses associated with the delivery of any property shall be borne by the claimant. The Comptroller shall not be responsible for any loss in connection with the handling, storage, or delivery of any property to the claimant. The Comptroller may require the claimant to pur- chase insurance to cover the risk of any loss. (c) Vesting of rights, title and interest in un- claimed property in United States; sale, use, destruction or disposition of property; pro- ceeds of sale as miscellaneous receipts (1) If, after twelve months from the date for- mal notice is published in the Federal Register, any such property remains in the possession, Page 81 TITLE 12—BANKS AND BANKING 1 So in original. Probably should not be capitalized. custody, or control of the Comptroller for which no valid claim has been filed, all rights, title, and interest in such property shall immediately be vested in the United States. (2) The Comptroller shall thereupon, in his dis- cretion, sell, use, destroy, or otherwise dispose of any such unclaimed property. Such disposi- tion may include donations to the Smithsonian Institution for addition to the national collec- tion. (3) The proceeds of any sale authorized by this section, after recoupment by the Comptroller of any expenses incurred hereunder, shall be cov- ered into the Treasury as miscellaneous re- ceipts. (d) Liability for determination of validity of claims; liability for delivery, sale, etc., of property The United States, the Comptroller, or any of- ficer, employee, or agent thereof shall not be subject to personal or legal liability for any de- termination as to the validity of any claim or claims filed under this subchapter or for any de- livery, sale, destruction, or other disposition of unclaimed property. (e) Court action for determination of ownership, etc., in State or Federal court of competent jurisdiction; de novo nature of action; parties (1) A court action to determine legal owner- ship, entitlement, or right to possession may be filed in any State or Federal court of competent jurisdiction other than against the United States, the Comptroller, or any officer, agent, or employee thereof. (2) Such actions shall be determined de novo without regard to any agency determination or any disposition or delivery by the Comptroller of any particular property to any person. (3) The United States, the Comptroller, or any officer, employee, or agent thereof shall neither be a party to any such judicial proceeding nor be bound by any decision, decree, or order resulting therefrom. (f) Jurisdiction of United States Court of Federal Claims 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 (1) The United States Court of Federal Claims shall have exclusive jurisdiction to hear and de- termine any suit brought against the United States, the Comptroller, or any officer, em- ployee, or agent thereof with regard to any de- termination of a claim or the disposition of any unclaimed property. (2) The United States Court of Federal Claims may set aside actions of the Comptroller only if such actions are found to be arbitrary, capri- cious, an abuse of discretion, or otherwise not in accordance with law. (3) All claims for which the United States Court of Federal Claims has jurisdiction under this subsection shall be barred unless suit is filed within two years from the date of expira- tion of the twelve-month notice period provided by this subchapter. (4) For purposes of section 1491 of title 28, any Claim 1 against the Comptroller, the United States, or any officer, employee, or agent there- of shall be considered a claim against the United States. (Pub. L. 96–221, title VII, § 733, as added Pub. L. 97–320, title IV, § 408, Oct. 15, 1982, 96 Stat. 1513; amended Pub. L. 102–572, title IX, § 902(b)(1), Oct. 29, 1992, 106 Stat. 4516.) AMENDMENTS 1992—Subsec. (f)(1) to (3). Pub. L. 102–572 substituted ‘‘United States Court of Federal Claims’’ for ‘‘United States Claims Court’’. EFFECTIVE DATE OF 1992 AMENDMENT Amendment by Pub. L. 102–572 effective Oct. 29, 1992, see section 911 of Pub. L. 102–572, set out as a note under section 171 of Title 28, Judiciary and Judicial Procedure. § 216c. Rules and regulations The Comptroller may issue rules and regula- tions necessary or appropriate to carry out this subchapter. (Pub. L. 96–221, title VII, § 734, as added Pub. L. 97–320, title IV, § 408, Oct. 15, 1982, 96 Stat. 1515.) § 216d. Severability If any provision of this subchapter or the ap- plication of such provision to any person or cir- cumstance is held invalid, the remainder of this subchapter and the application of such provision to other persons or circumstances shall not be affected thereby. (Pub. L. 96–221, title VII, § 735, as added Pub. L. 97–320, title IV, § 408, Oct. 15, 1982, 96 Stat. 1515.) CHAPTER 3—FEDERAL RESERVE SYSTEM SUBCHAPTER I—DEFINITIONS, ORGANIZATION, AND GENERAL PROVISIONS AFFECTING SYSTEM Sec. 221. Definitions. 221a. Additional definitions. 222. Federal reserve districts; membership of na- tional banks. 223. Number of Federal reserve cities in district. 224. Status of reserve cities under former stat- utes. 225. Federal reserve banks; title. 225a. Maintenance of long run growth of monetary and credit aggregates. 225b. Appearances before and reports to the Con- gress. 226. ‘‘Federal Reserve Act.’’ 227. ‘‘Banking Act of 1933.’’ 228. ‘‘Banking Act of 1935.’’ SUBCHAPTER II—BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM 241. Creation; membership; compensation and ex- penses. 242. Ineligibility to hold office in member banks; qualifications and terms of office of mem- bers; chairman and vice chairman; oath of office. 243. Assessments upon Federal reserve banks to pay expenses. 244. Principal offices of Board; chairman of Board; obligations and expenses; qualifications of members; vacancies. 245. Vacancies during recess of Senate. 246. Powers of Secretary of the Treasury as af- fected by chapter. 247. Reports to Congress. Page 82 TITLE 12—BANKS AND BANKING Sec. 247a. Records of action on policy relating to open- market operation and policies determined generally; inclusion in report to Congress. 247b. Appearances before Congress. 248. Enumerated powers. 248–1. Rules and regulations for transfer of funds and charges therefor among banks; clearing houses. 248a. Pricing of services. 248b. Annual independent audits of Federal reserve banks and Board. 249. Repealed. 250. Independence of financial regulatory agen- cies. 251. Repealed. 252. Credit availability assessment. SUBCHAPTER III—FEDERAL ADVISORY COUNCIL 261. Creation; membership; compensation; meet- ings; officers; procedure; quorum; vacan- cies. 262. Powers. SUBCHAPTER IV—FEDERAL OPEN MARKET COMMITTEE 263. Federal Open Market Committee; creation; membership; regulations governing open- market transactions. SUBCHAPTER V—FEDERAL DEPOSIT INSURANCE CORPORATION 264. Transferred. 265. Insured banks as depositaries of public money; duties; security; discrimination be- tween banks prohibited; repeal of inconsist- ent laws. 266. State-chartered banks and other institutions as depositaries of public money; fiscal agents; duties. SUBCHAPTER VI—CAPITAL AND STOCK OF FED- ERAL RESERVE BANKS; DIVIDENDS AND EARN- INGS 281. Capital. 282. Subscription to capital stock by national banking association. 283. Public subscription to capital stock. 284. Omitted. 285. Nonvoting stock. 286. Transfers of stock; rules and regulations. 287. Value of shares of stock; increase and de- crease of stock; member banks as share- holders; surrender of shares. 288. Cancellation of stock held by member bank on insolvency or discontinuance of banking operations for sixty days; repayment of cash-paid subscriptions. 289. Dividends and surplus funds of reserve banks; transfer for fiscal year 2000. 290. Use of earnings transferred to the Treasury. SUBCHAPTER VII—DIRECTORS OF FEDERAL RE- SERVE BANKS; RESERVE AGENTS AND ASSIST- ANTS 301. Powers and duties of board of directors; sus- pension of member bank for undue use of bank credit. 302. Number of members; classes. 303. Qualifications and disabilities. 304. Class A and class B directors; selection. 305. Class C directors; selection; ‘‘Federal reserve agent.’’ 306. Assistants to Federal reserve agent. 307. Compensation of directors. 308. Terms of directors; vacancies. SUBCHAPTER VIII—STATE BANKS AS MEMBERS OF SYSTEM 321. Application for membership. Sec. 322. Determination on application. 323. Stock in Federal reserve banks; method of payment. 324. Laws applicable on becoming members. 325. Examinations. 326. Acceptance of examinations and reports by State authorities; special examinations. 327. Surrender of stock and cancellation of mem- berships. 328. Withdrawals from membership. 329. Capital stock required as condition precedent to membership. 329a. Omitted. 330. Laws applicable on becoming members; dis- counts for State banks. 331. Certifying checks on State banks admitted as members. 332. Depositaries of public money; financial agents; security required. 333. Mutual savings banks; application and admis- sion to membership in Federal Reserve Sys- tem. 334. Reports from affiliates; penalty for failure to furnish. 335. Dealing in investment securities; limitations and conditions. 336. Certificates of stock; representation of stock of other corporations. 337. Repealed. 338. Examination of affiliates; forfeiture of mem- bership on refusal of affiliate to give infor- mation or pay expense. 338a. Investments to promote public welfare and community development; limitation on in- vestments. 339. Participation by State member banks in lot- teries and related activities. 339a. Resolution of clearing banks. SUBCHAPTER IX—POWERS AND DUTIES OF FEDERAL RESERVE BANKS 341. General enumeration of powers. 342. Deposits; exchange and collection; member and nonmember banks or other depository institutions; charges. 343. Discount of obligations arising out of actual commercial transactions. 344. Discount or purchase of bills to finance agri- cultural shipments. 345. Rediscount of notes, drafts, and bills for member banks; limitation of amount. 346. Discount of acceptances. 347. Advances to member banks on their notes. 347a. Advances to member bank groups; inadequate amounts of eligible and acceptable assets; liability of individual banks in group; dis- tribution of loans among banks of group; rate of interest; notes accepted for advances as collateral security for Federal reserve notes; foreign obligations as security for advances. 347b. Advances to individual member banks on time or demand notes; maturities; time notes secured by mortgage loans covering one-to-four family residences. 347c. Advances to individuals, partnerships, and corporations; security; interest rate. 347d. Transactions between Federal Reserve banks and branch or agency of foreign bank; mat- ters considered. 348. Discount of obligations given for agricultural purposes or based upon livestock; collateral security for Federal reserve notes. 348a. Transactions with foreign banks; supervision of Board of Governors of the Federal Re- serve System. 349. Rediscount for intermediate credit banks of obligations given for agricultural purposes; discount of notes made pursuant to section 1031. Page 85 TITLE 12—BANKS AND BANKING § 223 1 Capitalized as in original. (June 16, 1933, ch. 89, § 2, 48 Stat. 162; Aug. 23, 1935, ch. 614, title III, § 301, 49 Stat. 707; Pub. L. 89–485, § 13(a), (b), July 1, 1966, 80 Stat. 242.) REFERENCES IN TEXT As used in this chapter, referred to in text, was in the original ‘‘As used in this Act and in any provision of law amended by this Act’’, meaning act June 16, 1933, ch. 89, 48 Stat. 162, as amended, known as the Banking Act of 1933. For complete classification of this Act to the Code, see References in Text note set out under sec- tion 227 of this title and Tables. AMENDMENTS 1966—Subsec. (b)(4). Pub. L. 89–485, § 13(a), added par. (4) which incorporates definitions of ‘‘holding company affiliate’’ contained in cls. (1) and (2) of former subsec. (c) of this section, and substituted ‘‘a member bank’’ for ‘‘any one bank’’ in first two places. Subsec. (c). Pub. L. 89–485, § 13(b), repealed definition of ‘‘holding company affiliate’’, cls. (1) and (2) thereof now being incorporated in the subsec. (b)(4) definition of ‘‘affiliate’’, substituting ‘‘a member bank’’ for ‘‘any one bank’’ in first two places and the par. excluding therefrom any corporations stock of which is fully owned by the United States and any organization de- termined by the Board of Governors of the Federal Re- serve System not to be engaged, directly or indirectly, as a business in holding the stock of, or managing or controlling, banks, banking associations, savings banks, or trust companies. 1935—Subsec. (c). Act Aug. 23, 1935, added last par. § 222. Federal reserve districts; membership of national banks The continental United States, excluding Alaska, shall be divided into not less than eight nor more than twelve districts. Such districts may be readjusted and new districts may from time to time be created by the Board of Gov- ernors of the Federal Reserve System, not to ex- ceed twelve in all: Provided, That the districts shall be apportioned with due regard to the con- venience and customary course of business and shall not necessarily be coterminous with any State or States. Such districts shall be known as Federal reserve districts and may be designated by number. When the State of Alaska or Hawaii is hereafter admitted to the Union the Federal Reserve 1 districts shall be readjusted by the Board of Governors of the Federal Reserve Sys- tem in such manner as to include such State. Every national bank in any State shall, upon commencing business or within ninety days after admission into the Union of the State in which it is located, become a member bank of the Federal Reserve System by subscribing and paying for stock in the Federal Reserve bank of its district in accordance with the provisions of this chapter and shall thereupon be an insured bank under the Federal Deposit Insurance Act [12 U.S.C. 1811 et seq.], and failure to do so shall subject such bank to the penalty provided by section 501a of this title. (Dec. 23, 1913, ch. 6, § 2 (part), 38 Stat. 251; Aug. 23, 1935, ch. 614, title II, § 203(a), 49 Stat. 704; Pub. L. 85–508, § 19, July 7, 1958, 72 Stat. 350; Pub. L. 86–3, § 17, Mar. 18, 1959, 73 Stat. 12.) REFERENCES IN TEXT This chapter, referred to in text, was in the original ‘‘this Act’’, meaning act Dec. 23, 1913, ch. 6, 38 Stat. 251, known as the Federal Reserve Act. For complete classi- fication of this Act to the Code, see References in Text note set out under section 226 of this title and Tables. The Federal Deposit Insurance Act, referred to in text, is act Sept. 21, 1950, ch. 967, § 2, 64 Stat. 873, which is classified generally to chapter 16 (§ 1811 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 1811 of this title and Tables. CODIFICATION Section is based on part of the first par. of section 2 of act Dec. 23, 1913. Some of the other provisions of the first par. are classified to section 223 of this title, and some were not included in the Code. The second par. of section 2 is classified in part to section 225 of this title. The rest of the second par. was not included in the Code. The third par. of section 2 is classified in part to sec- tion 282 of this title. The rest of the third par. was not included in the Code. The fourth par. of section 2 is classified to section 502 of this title. The sixth and seventh pars. of section 2 are classified to section 501a of this title. The ninth par. of section 2 is classified to section 283 of this title. The tenth par. of section 2 was classified in part to former section 284 of this title. The rest of the tenth par. was not included in the Code. The eleventh and twelfth pars. of section 2 are classi- fied to sections 285 and 286, respectively, of this title. The thirteenth par. of section 2 is classified in part to section 224 of this title and in part to section 281 of this title. The rest of the thirteenth par. was not included in the Code. The fifth and eighth pars. of section 2 were not in- cluded in the Code. Former section 141 of this title purportedly derived from part of section 2 of act Dec. 23, 1913. But see Codi- fication note set out under former section 141 of this title. AMENDMENTS 1959—Pub. L. 86–3 required readjustment of districts when the State of Hawaii is admitted to the Union. 1958—Pub. L. 85–508 required readjustment of districts when the State of Alaska is admitted to the Union, and inserted provisions requiring national banks to become members of the Federal Reserve System upon com- mencing business or within 90 Days after admission into the Union of the State in which they are located. 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. ADMISSION OF ALASKA AND HAWAII TO STATEHOOD Alaska was admitted into the Union on Jan. 3, 1959, on issuance of Proc. No. 3269, Jan. 3, 1959, 24 F.R. 81, 73 Stat. C16, and Hawaii was admitted into the Union on Aug. 21, 1959, on issuance of Proc. No. 3309, Aug. 21, 1959, 24 F.R. 6868, 73 Stat. C74. For Alaska Statehood Law, see Pub. L. 85–508, July 7, 1958, 72 Stat. 339, set out as a note preceding section 21 of Title 48, Territories and Insular Possessions. For Hawaii Statehood Law, see Pub. L. 86–3, Mar. 18, 1959, 73 Stat. 4, set out as a note preceding section 491 of Title 48. § 223. Number of Federal reserve cities in district A Federal reserve district shall contain only one Federal reserve city. (Dec. 23, 1913, ch. 6, § 2 (part), 38 Stat. 251.) CODIFICATION Section is based on part of the first par. of section 2 of act Dec. 23, 1913. Some of the other provisions of the Page 86 TITLE 12—BANKS AND BANKING § 224 first par. are classified to section 222 of this title, and some were not included in the Code. For classification of other pars. of section 2 of this Act, see Codification note under section 222 of this title. § 224. Status of reserve cities under former stat- utes The organization of reserve districts and Fed- eral reserve cities shall not be construed as changing the present status of reserve cities ex- cept in so far as this chapter changes the amount of reserves that may be carried with ap- proved reserve agents located therein. (Dec. 23, 1913, ch. 6, § 2 (part), 38 Stat. 253; Pub. L. 86–114, § 3(b)(5), July 28, 1959, 73 Stat. 264.) REFERENCES IN TEXT This chapter, referred to in text, was in the original ‘‘this Act’’, meaning act Dec. 23, 1913, ch. 6, 38 Stat. 251, as amended, known as the Federal Reserve Act. For complete classification of this Act to the Code, see Ref- erences in Text note set out under section 226 of this title and Tables. CODIFICATION Section is comprised of part of the thirteenth par. of section 2 of act Dec. 23, 1913. Some of the other provi- sions of the thirteenth par. are classified to section 281 of this title, and some were not included in the Code. For classification of other pars. of section 2 of this Act, see Codification note set out under section 222 of this title. AMENDMENTS 1959—Pub. L. 86–114 struck out ‘‘and central reserve cities’’ after ‘‘reserve cities’’. EFFECTIVE DATE OF 1959 AMENDMENT Amendment by Pub. L. 86–114 effective three years after July 28, 1959, see section 3(b) of Pub. L. 86–114, set out as a Central Reserve and Reserve Cities note under former section 141 of this title. PRIOR PROVISIONS Provisions relating to reserve cities and central re- serve cities were contained in R.S. §§ 5191, 5192, and act Mar. 3, 1887, ch. 378, §§ 1, 2, 24 Stat. 559, 560. § 225. Federal reserve banks; title A Federal reserve bank shall include in its title the name of the city in which it is situated, as ‘‘Federal Reserve Bank of Chicago.’’ (Dec. 23, 1913, ch. 6, § 2 (part), 38 Stat. 252.) CODIFICATION Section is based on part of the second par. of section 2 of act Dec. 23, 1913. The rest of the second par. was not included in the Code. For classification of other pars. of section 2 of this Act, see Codification note set out under section 222 of this title. § 225a. Maintenance of long run growth of mone- tary and credit aggregates The Board of Governors of the Federal Reserve System and the Federal Open Market Commit- tee shall maintain long run growth of the mone- tary and credit aggregates commensurate with the economy’s long run potential to increase production, so as to promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates. (Dec. 23, 1913, ch. 6, § 2A, as added Pub. L. 95–188, title II, § 202, Nov. 16, 1977, 91 Stat. 1387; amended Pub. L. 95–523, title I, § 108(a), Oct. 27, 1978, 92 Stat. 1897; Pub. L. 100–418, title III, § 3005(c), Aug. 23, 1988, 102 Stat. 1375; Pub. L. 106–569, title X, § 1003(a), Dec. 27, 2000, 114 Stat. 3028.) CODIFICATION Another section 202 of Pub. L. 95–188 amended section 302 of this title. AMENDMENTS 2000—Pub. L. 106–569 struck out provisions after first sentence relating to annual reports to Congress, trans- mittal of reports to Congressional Committees, con- sultations with Committees, report of Committee, changing conditions affecting achievement of objec- tives and plans, and explanation for deviations from ob- jectives and plans. 1988—Pub. L. 100–418 inserted ‘‘, including an analysis of the impact of the exchange rate of the dollar on those trends’’ after ‘‘the Nation’’ in cl. (1). 1978—Pub. L. 95–523 substituted provisions relating to independent written reports of the Board of Governors to the Congress for provisions relating to the consulta- tions of the Board of Governors with Congress at semi- annual hearings, substituted ‘‘the objectives and plans with respect to the ranges’’ for ‘‘such ranges’’, inserted ‘‘of the monetary and credit aggregates disclosed in the reports submitted under this section’’ after ‘‘growth or diminution’’, and inserted proviso respecting the inclu- sion of an explanation of reasons for revisions or devi- ations in subsequent consultations and reports. EFFECTIVE DATE OF 1978 AMENDMENT Section 108(b) of Pub. L. 95–523 provided that: ‘‘The amendment made by subsection (a) [amending this sec- tion] takes effect on January 1, 1979.’’ § 225b. Appearances before and reports to the Congress (a) Appearances before the Congress (1) In general The Chairman of the Board shall appear be- fore the Congress at semi-annual hearings, as specified in paragraph (2), regarding— (A) the efforts, activities, objectives and plans of the Board and the Federal Open Market Committee with respect to the con- duct of monetary policy; and (B) economic developments and prospects for the future described in the report re- quired in subsection (b) of this section. (2) Schedule The Chairman of the Board shall appear— (A) before the Committee on Banking and Financial Services of the House of Rep- resentatives on or about February 20 of even numbered calendar years and on or about July 20 of odd numbered calendar years; (B) before the Committee on Banking, Housing, and Urban Affairs of the Senate on or about July 20 of even numbered calendar years and on or about February 20 of odd numbered calendar years; and (C) before either Committee referred to in subparagraph (A) or (B), upon request, fol- lowing the scheduled appearance of the Chairman before the other Committee under subparagraph (A) or (B). (b) Congressional report The Board shall, concurrent with each semi- annual hearing required by this section, submit a written report to the Committee on Banking, Page 87 TITLE 12—BANKS AND BANKING § 226 Housing, and Urban Affairs of the Senate and the Committee on Banking and Financial Serv- ices of the House of Representatives, containing a discussion of the conduct of monetary policy and economic developments and prospects for the future, taking into account past and pro- spective developments in employment, unem- ployment, production, investment, real income, productivity, exchange rates, international trade and payments, and prices. (c) Public access to information The Board shall place on its home Internet website, a link entitled ‘‘Audit’’, which shall link to a webpage that shall serve as a reposi- tory of information made available to the public for a reasonable period of time, not less than 6 months following the date of release of the rel- evant information, including— (1) the reports prepared by the Comptroller General under section 714 of title 31; (2) the annual financial statements prepared by an independent auditor for the Board in ac- cordance with section 248b of this title; (3) the reports to the Committee on Bank- ing, Housing, and Urban Affairs of the Senate required under section 343(3) of this title (re- lating to emergency lending authority); and (4) such other information as the Board rea- sonably believes is necessary or helpful to the public in understanding the accounting, finan- cial reporting, and internal controls of the Board and the Federal reserve banks. (Dec. 23, 1913, ch. 6, § 2B, as added Pub. L. 106–569, title X, § 1003(b)(1), Dec. 27, 2000, 114 Stat. 3028; amended Pub. L. 111–203, title XI, § 1103(a), July 21, 2010, 124 Stat. 2118.) AMENDMENTS 2010—Subsec. (c). Pub. L. 111–203 added subsec. (c). CHANGE OF NAME Committee on Banking and Financial Services of House of Representatives abolished and replaced by Committee on Financial Services of House of Rep- resentatives, and jurisdiction over matters relating to securities and exchanges and insurance generally trans- ferred from Committee on Energy and Commerce of House of Representatives by House Resolution No. 5, One Hundred Seventh Congress, Jan. 3, 2001. EFFECTIVE DATE OF 2010 AMENDMENT Amendment by Pub. L. 111–203 effective 1 day after July 21, 2010, except as otherwise provided, see section 4 of Pub. L. 111–203, set out as an Effective Date note under section 5301 of this title. § 226. ‘‘Federal Reserve Act’’ The short title of the Act of December 23, 1913, ch. 6, 38 Stat. 251, shall be the ‘‘Federal Reserve Act.’’ (Dec. 23, 1913, ch. 6, § 1 (par.), 38 Stat. 251.) REFERENCES IN TEXT The Act of December 23, 1913, ch. 6, referred to in text, is classified to this section, sections 1, 35, 59, 90, 92, 141, 142, 221, 222 to 225b, 241 to 246, 247 to 247b, 248, 248–1, 248a, 248b, 261 to 263, 281 to 290, 301 to 308, 321 to 336, 338 to 339a, 341 to 352, 353 to 361, 371 to 371b, 371b–2 to 376, 391, 392, 393, 411 to 416, 418 to 421, 441 to 448, 461, 462, 462b to 467, 481 to 486, 501a to 506, 521, 522, 531, 601 to 604a, and 611 to 633 of this title and as a provision set out as a note under this section. Subsecs. (a)–(c) and (h)–(k) of section 22 of the Act, which were classified to former sections 593 to 599 of this title, were repealed and restated in sections 217 to 220, 433, 655, 656, 1005, 1014, 1906, and 1909 of Title 18, Crimes and Criminal Pro- cedure, by act June 25, 1948, ch. 645, §§ 1, 21, 62 Stat. 683, 862, the first section of which enacted Title 18. Sections 217 to 220 of Title 18 were subsequently renumbered sec- tions 212 to 215 of Title 18, respectively, by Pub. L. 87–849, § 1(d), Oct. 23, 1962, 76 Stat. 1125. Sections 212 and 213 of Title 18, as renumbered by Pub. L. 87–849, were subsequently repealed by Pub. L. 108–198, § 2(a), Dec. 19, 2003, 117 Stat. 2899. For complete classification of this Act to the Code, see Tables. CODIFICATION This section is comprised of the first par. of section 1 of act Dec. 23, 1913. The second to fourth pars. of sec- tion 1 are classified to section 221 of this title. SHORT TITLE OF 1996 AMENDMENT Pub. L. 104–208, div. A, title II, § 2001(a), Sept. 30, 1996, 110 Stat. 3009–394, provided that: ‘‘This title [see Tables for classification] may be cited as the ‘Economic Growth and Regulatory Paperwork Reduction Act of 1996’.’’ SHORT TITLE OF 1992 AMENDMENT Pub. L. 102–491, § 1, Oct. 24, 1992, 106 Stat. 3144, pro- vided that: ‘‘This Act [amending section 522 of this title] may be cited as the ‘Federal Reserve Bank Branch Modernization Act’.’’ SHORT TITLE OF 1987 AMENDMENT Pub. L. 100–86, § 1(a), Aug. 10, 1987, 101 Stat. 552, pro- vided that: ‘‘This Act [enacting sections 371c–1, 1439–1, 1441, 1442a, 1467, 1467a, 1730h, 1730i, 1772b, 1772c, 3806, and 4001 to 4010 of this title and section 3334 of Title 31, Money and Finance, amending sections 24, 248a, 481, 619, 1430, 1436, 1464, 1467, 1725 to 1727, 1729 to 1730a, 1730h, 1757, 1761a, 1761b, 1764, 1766, 1767, 1785 to 1788, 1813, 1817, 1821, 1823, 1828, 1831d, 1832, 1841 to 1843, 1846, 1849, and 3106 of this title, sections 905 and 906 of Title 2, The Congress, sections 45, 46, and 57a of Title 15, Commerce and Trade, and sections 3328, 3702, 3712, 9101, and 9105 of Title 31, providing for future repeal of sections 1442a, 1467a, and 1730i of this title, enacting provisions set out as notes under sections 226, 248a, 619, 1437, 1441, 1464, 1467, 1467a, 1730, 1730a, 1751, 1811, 1841, and 4001 of this title and section 3328 of Title 31, and amending provi- sions set out as a note under section 1729 of this title] may be cited as the ‘Competitive Equality Banking Act of 1987’.’’ Pub. L. 100–86, title I, § 100, Aug. 10, 1987, 101 Stat. 554, provided that: ‘‘This title [enacting section 371c–1 of this title, amending sections 24, 619, 1430, 1730, 1730a, 1813, 1828, 1831d, 1832, 1841 to 1843, and 1846 of this title, and enacting provisions set out as notes under sections 226, 619, 1730a, and 1841 of this title] may be cited as the ‘Competitive Equality Amendments of 1987’.’’ Pub. L. 100–86, title III, § 301, Aug. 10, 1987, 101 Stat. 585, provided that: ‘‘This title [enacting section 1441 of this title, amending sections 1430, 1436, 1725, 1727, and 1730 of this title and section 9101 of Title 31, Money and Finance, and enacting provisions set out as a note under section 1730 of this title] may be cited as the ‘Federal Savings and Loan Insurance Corporation Re- capitalization Act of 1987’.’’ Pub. L. 100–86, title IV, § 401, Aug. 10, 1987, 101 Stat. 604, provided that: ‘‘This title [enacting sections 1442a, 1467, 1467a, 1730h, and 1730i of this title, amending sec- tions 1464, 1467, 1729 to 1730a, and 1730h of this title, and section 9105 of Title 31, Money and Finance, providing for future repeal of sections 1442a, 1467a, and 1730i of this title, and enacting provisions set out as notes under sections 1437, 1441, 1467, and 1467a of this title] may be cited as the ‘Thrift Industry Recovery Act’.’’ SHORT TITLE OF 1982 AMENDMENT Pub. L. 97–320, § 1, Oct. 15, 1982, 96 Stat. 1469, provided that: ‘‘This Act [enacting sections 216 to 216d, 1701j–3, Page 90 TITLE 12—BANKS AND BANKING § 243 Board shall within fifteen days after notice of appointment make and subscribe to the oath of office. Upon the expiration of their terms of of- fice, members of the Board shall continue to serve until their successors are appointed and have qualified. Any person appointed as a mem- ber of the Board after August 23, 1935, shall not be eligible for reappointment as such member after he shall have served a full term of fourteen years. (Dec. 23, 1913, ch. 6, § 10 (par.), 38 Stat. 260; June 3, 1922, ch. 205, 42 Stat. 620; June 16, 1933, ch. 89, § 6(a), 48 Stat. 166; Aug. 23, 1935, ch. 614, title II, § 203(b), 49 Stat. 704; Pub. L. 95–188, title II, § 204(a), Nov. 16, 1977, 91 Stat. 1388; Pub. L. 111–203, title XI, § 1108(a)(1), July 21, 2010, 124 Stat. 2126.) CODIFICATION Section is comprised of second par. of section 10 of act Dec. 23, 1913. For classification to this title of other pars. of section 10, see note set out under section 241 of this title. AMENDMENTS 2010—Pub. L. 111–203 substituted ‘‘Of the persons thus appointed, 1 shall be designated by the President, by and with the advice and consent of the Senate, to serve as Chairman of the Board for a term of 4 years, and 2 shall be designated by the President, by and with the advice and consent of the Senate, to serve as Vice Chairmen of the Board, each for a term of 4 years, 1 of whom shall serve in the absence of the Chairman, as provided in section 244 of this title, and 1 of whom shall be designated Vice Chairman for Supervision. The Vice Chairman for Supervision shall develop policy recom- mendations for the Board regarding supervision and regulation of depository institution holding companies and other financial firms supervised by the Board, and shall oversee the supervision and regulation of such firms.’’ for ‘‘Of the persons thus appointed, one shall be designated by the President, by and with the advice and consent of the Senate, to serve as Chairman of the Board for a term of four years, and one shall be des- ignated by the President, by and with the consent of the Senate, to serve as Vice Chairman of the Board for a term of four years.’’ 1977—Pub. L. 95–188 substituted in third sentence ‘‘one shall be designated by the President, by and with the advice and consent of the Senate, to serve as Chair- man of the Board for a term of four years, and one shall be designated by the President, by and with the con- sent of the Senate, to serve as Vice Chairman of the Board for a term of four years’’ for ‘‘one shall be des- ignated by the President as chairman and one as vice chairman of the Board, to serve as such for a term of four years’’. 1935—Act Aug. 23, 1935, § 203(b), extended term of ap- pointive members from twelve to fourteen years, and inserted provisions for continuance in office until suc- cessor qualified and against reappointment. 1933—Act June 16, 1933, extended term of appointive members from ten to twelve years. 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. EFFECTIVE DATE OF 2010 AMENDMENT Pub. L. 111–203, title XI, § 1108(a)(2), July 21, 2010, 124 Stat. 2126, provided that: ‘‘The amendment made by subsection (a) [amending this section] takes effect on the date of enactment of this title [July 21, 2010] and applies to individuals who are designated by the Presi- dent on or after that date to serve as Vice Chairman of Supervision.’’ EFFECTIVE DATE OF 1977 AMENDMENT; APPLICABILITY Section 204(b) of Pub. L. 95–188 provided that: ‘‘The amendment made by subsection (a) [amending this sec- tion] takes effect on January 1, 1979, and applies to in- dividuals who are designated by the President on or after such date to serve as Chairman or Vice Chairman of the Board of Governors of the Federal Reserve Sys- tem.’’ REPEALS Act Mar. 3, 1919, ch. 101, § 2, 40 Stat. 1315, formerly cited as a credit to this section, was repealed by Pub. L. 89–554, § 8(a), Sept. 6, 1966, 80 Stat. 644. COMPENSATION OF CHAIRMAN OF BOARD Annual basic compensation of Chairman of Board of Governors, see section 5313 of Title 5, Government Or- ganization and Employees. § 243. Assessments upon Federal reserve banks to pay expenses The Board of Governors of the Federal Reserve System shall have power to levy semiannually upon the Federal reserve banks, in proportion to their capital stock and surplus, an assessment sufficient to pay its estimated expenses and the salaries of its members and employees for the half year succeeding the levying of such assess- ment, together with any deficit carried forward from the preceding half year, and such assess- ments may include amounts sufficient to pro- vide for the acquisition by the Board in its own name of such site or building in the District of Columbia as in its judgment alone shall be nec- essary for the purpose of providing suitable and adequate quarters for the performance of its functions. After September 1, 2000, the Board may also use such assessments to acquire, in its own name, a site or building (in addition to the facilities existing on such date) to provide for the performance of the functions of the Board. After approving such plans, estimates, and spec- ifications as it shall have caused to be prepared, the Board may, notwithstanding any other pro- vision of law, cause to be constructed on any site so acquired by it a building or buildings suitable and adequate in its judgment for its purposes and proceed to take all such steps as it may deem necessary or appropriate in connec- tion with the construction, equipment, and fur- nishing of such building or buildings. The Board may maintain, enlarge, or remodel any building or buildings so acquired or constructed and shall have sole control of such building or buildings and space therein. (Dec. 23, 1913, ch. 6, § 10 (par.), 38 Stat. 261; June 3, 1922, ch. 205, 42 Stat. 621; June 19, 1934, ch. 653, § 4, 48 Stat. 1108; Aug. 23, 1935, ch. 614, title II, § 203(a), 49 Stat. 704; Pub. L. 106–569, title X, § 1001, Dec. 27, 2000, 114 Stat. 3027.) CODIFICATION Section is comprised of third par. of section 10 of act Dec. 23, 1913. For classification to this title of other pars. of section 10, see note set out under section 241 of this title. AMENDMENTS 2000—Pub. L. 106–569 inserted ‘‘After September 1, 2000, the Board may also use such assessments to ac- quire, in its own name, a site or building (in addition to the facilities existing on such date) to provide for Page 91 TITLE 12—BANKS AND BANKING § 246 the performance of the functions of the Board.’’ after first sentence, inserted ‘‘or buildings’’ after ‘‘building’’ wherever appearing in third and fourth sentences, and substituted ‘‘constructed on any site’’ for ‘‘constructed on the site’’ in third sentence. 1934—Act June 19, 1934, inserted provisions after ‘‘the preceding half year’’ in first sentence and inserted sec- ond and third sentences. 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. § 244. Principal offices of Board; chairman of Board; obligations and expenses; qualifica- tions of members; vacancies The principal offices of the Board shall be in the District of Columbia. At meetings of the Board the chairman shall preside, and, in his ab- sence, the vice chairman shall preside. In the ab- sence of the chairman and the vice chairman, the Board shall elect a member to act as chair- man pro tempore. The Board shall determine and prescribe the manner in which its obliga- tions shall be incurred and its disbursements and expenses allowed and paid, and may leave on deposit in the Federal Reserve banks the pro- ceeds of assessments levied upon them to defray its estimated expenses and the salaries of its members and employees, whose employment, compensation, leave, and expenses shall be gov- erned solely by the provisions of this chapter and rules and regulations of the Board not in- consistent therewith; and funds derived from such assessments shall not be construed to be Government funds or appropriated moneys. No member of the Board of Governors of the Fed- eral Reserve System shall be an officer or direc- tor of any bank, banking institution, trust com- pany, or Federal Reserve bank or hold stock in any bank, banking institution, or trust com- pany; and before entering upon his duties as a member of the Board of Governors of the Fed- eral Reserve System he shall certify under oath that he has complied with this requirement, and such certification shall be filed with the sec- retary of the Board. Whenever a vacancy shall occur, other than by expiration of term, among the seven members of the Board of Governors of the Federal Reserve System appointed by the President as above provided, a successor shall be appointed by the President, by and with the ad- vice and consent of the Senate, to fill such va- cancy, and when appointed he shall hold office for the unexpired term of his predecessor. (Dec. 23, 1913, ch. 6, § 10 (par.), 38 Stat. 261; June 3, 1922, ch. 205, 42 Stat. 621; June 16, 1933, ch. 89, § 6(b), 48 Stat. 167; Aug. 23, 1935, ch. 614, title II, § 203(a)–(c), 49 Stat. 704, 705.) REFERENCES IN TEXT This chapter, referred to in text, was in the original ‘‘this Act, specific amendments thereof’’, meaning act Dec. 23, 1913, ch. 6, 38 Stat. 251, as amended, known as the Federal Reserve Act. For complete classification of this Act to the Code, see References in Text note set out under section 226 of this title and Tables. CODIFICATION Section is comprised of fourth par. of section 10 of act Dec. 23, 1913. For classification to this title of other pars. of section 10, see Codification note set out under section 241 of this title. Word ‘‘seven’’ was substituted for ‘‘six’’ in last sen- tence on authority of section 203(b) of act Aug. 23, 1935, which increased membership of the Board of Governors. AMENDMENTS 1935—Act Aug. 23, 1935, § 203(c), substituted second and third sentences for former related provisions. 1933—Act June 16, 1933, fixed the principal offices of the Board, made the Secretary of the Treasury chair- man, provided for chairman pro tempore, and referred to disbursements, obligations, salaries and leaves. 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. § 245. Vacancies during recess of Senate The President shall have power to fill all va- cancies that may happen on the Board of Gov- ernors of the Federal Reserve System during the recess of the Senate by granting commissions which shall expire with the next session of the Senate. (Dec. 23, 1913, ch. 6, § 10 (par.), 38 Stat. 260; June 3, 1922, ch. 205, 42 Stat. 620; Aug. 23, 1935, ch. 614, title II, § 203(a), 49, Stat. 704.) CODIFICATION Section is comprised of fifth par. of section 10 of act Dec. 23, 1913. For classification to this title of other pars. of section 10, see Codification note set out under section 241 of this title. 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. § 246. Powers of Secretary of the Treasury as af- fected by chapter Nothing in this chapter contained shall be construed as taking away any powers heretofore vested by law in the Secretary of the Treasury which relate to the supervision, management, and control of the Treasury Department and bu- reaus under such department, and wherever any power vested by this chapter in the Board of Governors of the Federal Reserve System or the Federal reserve agent appears to conflict with the powers of the Secretary of the Treasury, such powers shall be exercised subject to the su- pervision and control of the Secretary. (Dec. 23, 1913, ch. 6, § 10 (par.), 38 Stat. 261; June 3, 1922, ch. 205, 42 Stat. 621; Aug. 23, 1935, ch. 614, title II, § 203(a), 49 Stat. 704.) REFERENCES IN TEXT This chapter, referred to in text, was in the original ‘‘this Act’’, meaning act Dec. 23, 1913, ch. 6, 38 Stat. 251, as amended, known as the Federal Reserve Act. For complete classification of this Act to the Code, see Ref- erences in Text note set out under section 226 of this title and Tables. CODIFICATION Section is comprised of sixth par. of section 10 of act Dec. 23, 1913. For classification to this title of other pars. of section 10, see Codification note set out under section 241 of this title. Page 92 TITLE 12—BANKS AND BANKING § 247 1 See References in Text note below. 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. § 247. Reports to Congress The Board of Governors of the Federal Reserve System shall annually make a full report of its operations to the Speaker of the House of Rep- resentatives, who shall cause the same to be printed for the information of the Congress. The report required under this paragraph shall in- clude the reports required under section 1691f of title 15, section 57a(f)(7) 1 of title 15, section 1613 of title 15, and section 247a of this title. (Dec. 23, 1913, ch. 6, § 10 (par.), 38 Stat. 261; June 3, 1922, ch. 205, 42 Stat. 621; Aug. 23, 1935, ch. 614, title II, § 203(a), 49 Stat. 704; Pub. L. 106–569, title XI, § 1103(b), Dec. 27, 2000, 114 Stat. 3030.) REFERENCES IN TEXT Section 57a(f)(7) of title 15, referred to in text, was re- pealed by Pub. L. 111–203, title X, § 1092(3), July 21, 2010, 124 Stat. 2095. CODIFICATION Section is comprised of seventh par. of section 10 of act Dec. 23, 1913. For classification to this title of other pars. of section 10, see Codification note set out under section 241 of this title. AMENDMENTS 2000—Pub. L. 106–569 inserted at end ‘‘The report re- quired under this paragraph shall include the reports required under section 1691f of title 15, section 57a(f)(7) of title 15, section 1613 of title 15, and section 247a of this title.’’ 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. MEMBERSHIP OF INTERNATIONAL BANKS IN FEDERAL RESERVE SYSTEM; REPORT TO CONGRESS Pub. L. 95–369, § 3(g), Sept. 17, 1978, 92 Stat. 610, pro- vided that the Board report to Congress not later than 270 days after Sept. 17, 1978 recommendations with re- spect to permitting corporations organized or operating under section 25 or 25(a) of the Federal Reserve Act to become members of Federal Reserve Banks. EFFECT OF INTERNATIONAL BANKING ACT OF 1978 ON INTERNATIONAL BANKS; REPORT TO CONGRESS Pub. L. 95–369, § 3(h), Sept. 17, 1978, 92 Stat. 610, pro- vided that: ‘‘As part of its annual report pursuant to section 10 of the Federal Reserve Act [this section], the Board shall include its assessment of the effects of the amendments made by this Act [see Short Title note set out under section 3101 of this title] on the capitaliza- tion and activities of corporations organized or operat- ing under section 25 or 25(a) of the Federal Reserve Act [sections 601 to 604 and 611 to 631 of this title], and on commercial banks and the banking system.’’ § 247a. Records of action on policy relating to open-market operation and policies deter- mined generally; inclusion in report to Con- gress The Board of Governors of the Federal Reserve System shall keep a complete record of the ac- tion taken by the Board and by the Federal Open Market Committee upon all questions of policy relating to open-market operations and shall record therein the votes taken in connec- tion with the determination of open-market policies and the reasons underlying the action of the Board and the Committee in each instance. The Board shall keep a similar record with re- spect to all questions of policy determined by the Board, and shall include in its annual report to the Congress a full account of the action so taken during the preceding year with respect to open-market policies and operations and with respect to the policies determined by it and shall include in such report a copy of the records required to be kept under the provisions of this section. (Dec. 23, 1913, ch. 6, § 10 (par.), as added Aug. 23, 1935, ch. 614, title II, § 203(d), 49 Stat. 705.) CODIFICATION Section is comprised of tenth par. of section 10 of act Dec. 23, 1913, as added Aug. 23, 1935. For classification to this title of other pars. of section 10, see Codification note set out under section 241 of this title. § 247b. Appearances before Congress The Vice Chairman for Supervision shall ap- pear before the Committee on Banking, Housing, and Urban Affairs of the Senate and the Com- mittee on Financial Services of the House of Representatives and at semi-annual hearings re- garding the efforts, activities, objectives, and plans of the Board with respect to the conduct of supervision and regulation of depository institu- tion holding companies and other financial firms supervised by the Board. (Dec. 23, 1913, ch. 6, § 10(12), as added Pub. L. 111–203, title XI, § 1108(b), July 21, 2010, 124 Stat. 2126.) CODIFICATION Section is comprised of par. (12) of section 10 of act Dec. 23, 1913. No par. between pars. (10) and (12) has been enacted. For classification to this title of other pars. of section 10, see Codification note set out under section 241 of this title. EFFECTIVE DATE Section effective 1 day after July 21, 2010, except as otherwise provided, see section 4 of Pub. L. 111–203, set out as a note under section 5301 of this title. § 248. Enumerated powers The Board of Governors of the Federal Reserve System shall be authorized and empowered: (a) Examination of accounts and affairs of banks; publication of weekly statements; reports of liabilities and assets of depository institu- tions; covered institutions (1) To examine at its discretion the accounts, books, and affairs of each Federal reserve bank and of each member bank and to require such statements and reports as it may deem nec- essary. The said board shall publish once each week a statement showing the condition of each Federal reserve bank and a consolidated state- ment for all Federal reserve banks. Such state- ments shall show in detail the assets and liabil- ities of the Federal reserve banks, single and Page 95 TITLE 12—BANKS AND BANKING § 248 2 So in original. Two subsecs. (s) have been enacted. (s) 2 Federal Reserve transparency and release of information (1) In general In order to ensure the disclosure in a timely manner consistent with the purposes of this chapter of information concerning the borrow- ers and counterparties participating in emer- gency credit facilities, discount window lend- ing programs, and open market operations au- thorized or conducted by the Board or a Fed- eral reserve bank, the Board of Governors shall disclose, as provided in paragraph (2)— (A) the names and identifying details of each borrower, participant, or counterparty in any credit facility or covered transaction; (B) the amount borrowed by or transferred by or to a specific borrower, participant, or counterparty in any credit facility or cov- ered transaction; (C) the interest rate or discount paid by each borrower, participant, or counterparty in any credit facility or covered transaction; and (D) information identifying the types and amounts of collateral pledged or assets transferred in connection with participation in any credit facility or covered transaction. (2) Mandatory release date In the case of— (A) a credit facility, the Board shall dis- close the information described in paragraph (1) on the date that is 1 year after the effec- tive date of the termination by the Board of the authorization of the credit facility; and (B) a covered transaction, the Board shall disclose the information described in para- graph (1) on the last day of the eighth cal- endar quarter following the calendar quarter in which the covered transaction was con- ducted. (3) Earlier release date authorized The Chairman of the Board may publicly re- lease the information described in paragraph (1) before the relevant date specified in para- graph (2), if the Chairman determines that such disclosure would be in the public interest and would not harm the effectiveness of the relevant credit facility or the purpose or con- duct of covered transactions. (4) Definitions For purposes of this subsection, the follow- ing definitions shall apply: (A) Credit facility The term ‘‘credit facility’’ has the same meaning as in section 714(f)(1)(A) of title 31. (B) Covered transaction The term ‘‘covered transaction’’ means— (i) any open market transaction with a nongovernmental third party conducted under section 353 of this title or section 354, 355, or 356 of this title, after July 21, 2010; and (ii) any advance made under section 347b of this title after July 21, 2010. (5) Termination of credit facility by operation of law A credit facility shall be deemed to have ter- minated as of the end of the 24-month period beginning on the date on which the credit fa- cility ceases to make extensions of credit and loans, unless the credit facility is otherwise terminated by the Board before such date. (6) Consistent treatment of information Except as provided in this subsection or sec- tion 343(3)(D) of this title, or in section 714(f)(3)(C) of title 31, the information de- scribed in paragraph (1) and information con- cerning the transactions described in section 714(f) of such title, shall be confidential, in- cluding for purposes of section 552(b)(3) of title 5, until the relevant mandatory release date described in paragraph (2), unless the Chair- man of the Board determines that earlier dis- closure of such information would be in the public interest and would not harm the effec- tiveness of the relevant credit facility or the purpose of conduct of the relevant trans- actions. (7) Protection of personal privacy This subsection and section 343(3)(C) of this title, section 714(f)(3)(C) of title 31, and sub- section (a) or (c) of section 1109 of the Dodd- Frank Wall Street Reform and Consumer Pro- tection Act shall not be construed as requiring any disclosure of nonpublic personal informa- tion (as defined for purposes of section 6802 of title 15) concerning any individual who is ref- erenced in collateral pledged or assets trans- ferred in connection with a credit facility or covered transaction, unless the person is a borrower, participant, or counterparty under the credit facility or covered transaction. (8) Study of FOIA exemption impact (A) Study The Inspector General of the Board of Gov- ernors of the Federal Reserve System shall— (i) conduct a study on the impact that the exemption from section 552(b)(3) of title 5 (known as the Freedom of Informa- tion Act) established under paragraph (6) has had on the ability of the public to ac- cess information about the administration by the Board of Governors of emergency credit facilities, discount window lending programs, and open market operations; and (ii) make any recommendations on whether the exemption described in clause (i) should remain in effect. (B) Report Not later than 30 months after July 21, 2010, the Inspector General of the Board of Governors of the Federal Reserve System shall submit a report on the findings of the study required under subparagraph (A) to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Commit- tee on Financial Services of the House of Representatives, and publish the report on the website of the Board. (9) Rule of construction Nothing in this section is meant to affect any pending litigation or lawsuit filed under Page 96 TITLE 12—BANKS AND BANKING § 248 section 552 of title 5 (popularly known as the Freedom of Information Act) on or before July 21, 2010. (s) 2 Assessments, fees, and other charges for cer- tain companies (1) In general The Board shall collect a total amount of as- sessments, fees, or other charges from the companies described in paragraph (2) that is equal to the total expenses the Board esti- mates are necessary or appropriate to carry out the supervisory and regulatory respon- sibilities of the Board with respect to such companies. (2) Companies The companies described in this paragraph are— (A) all bank holding companies having total consolidated assets of $50,000,000,000 or more; (B) all savings and loan holding companies having total consolidated assets of $50,000,000,000 or more; and (C) all nonbank financial companies super- vised by the Board under section 5323 of this title. (Dec. 23, 1913, ch. 6, § 11, 38 Stat. 261; Sept. 7, 1916, ch. 461, 39 Stat. 752; Sept. 26, 1918, ch. 177, § 2, 40 Stat. 968; Mar. 3, 1919, ch. 101, § 3, 40 Stat. 1315; Feb. 27, 1921, ch. 75, 41 Stat. 1146; June 26, 1930, ch. 612, 46 Stat. 814; Mar. 9, 1933, ch. 1, title I, § 3, 48 Stat. 2; June 16, 1933, ch. 89, § 7, 48 Stat. 167; Aug. 23, 1935, ch. 614, title II, § 203(a), title III, §§ 321(a), 342, 49 Stat. 704, 713, 722; June 12, 1945, ch. 186, § 1(c), 59 Stat. 237; Pub. L. 86–114, § 3(b)(6), July 28, 1959, 73 Stat. 264; Pub. L. 86–251, § 3(c), Sept. 9, 1959, 73 Stat. 488; Pub. L. 87–722, § 3, Sept. 28, 1962, 76 Stat. 670; Pub. L. 89–427, § 2, May 20, 1966, 80 Stat. 161; Pub. L. 89–765, Nov. 5, 1966, 80 Stat. 1314; Pub. L. 90–269, § 1, Mar. 18, 1968, 82 Stat. 50; Pub. L. 95–251, § 2(a)(3), Mar. 27, 1978, 92 Stat. 183; Pub. L. 96–221, title I, § 102, Mar. 31, 1980, 94 Stat. 132; Pub. L. 97–258, § 5(b), Sept. 13, 1982, 96 Stat. 1068; Pub. L. 97–457, § 17(b), Jan. 12, 1983, 96 Stat. 2509; Pub. L. 101–73, title VII, § 744(i)(1), Aug. 9, 1989, 103 Stat. 439; Pub. L. 102–242, title I, §§ 133(f), 142(c), Dec. 19, 1991, 105 Stat. 2273, 2281; Pub. L. 102–550, title XVI, § 1603(d)(9), Oct. 28, 1992, 106 Stat. 4080; Pub. L. 103–325, title III, §§ 322(d), 331(d), title VI, § 602(g)(2), Sept. 23, 1994, 108 Stat. 2227, 2232, 2293; Pub. L. 106–102, title VII, § 735, Nov. 12, 1999, 113 Stat. 1479; Pub. L. 107–56, title III, § 364, Oct. 26, 2001, 115 Stat. 333; Pub. L. 107–297, title III, § 301, Nov. 26, 2002, 116 Stat. 2340; Pub. L. 111–203, title III, §§ 318(c), 366(1), title XI, §§ 1103(b), 1108(c), July 21, 2010, 124 Stat. 1527, 1556, 2118, 2126.) REFERENCES IN TEXT Sections 461, 463, 464, 465, and 466 of this title, referred to in subsec. (a)(2), was in the original ‘‘section 19 of the Federal Reserve Act’’. Provisions of section 19 re- lating to reserve requirements are classified to the cited sections. For complete classification of section 19 to the Code, see References in Text note set out under section 461 of this title. This chapter, referred to in subsecs. (c), (h), (i), (n), (r)(1), and (s)(1), was in the original ‘‘this Act’’, mean- ing act Dec. 23, 1913, ch. 6, 38 Stat. 251, known as the Federal Reserve Act. For complete classification of this Act to the Code, see References in Text note set out under section 226 of this title and Tables. Reference in subsec. (e) to ‘‘section 20 of this Act’’ means section 20 of the Federal Reserve Act which is not classified to the Code. Since section 20 does not set forth any reserve requirements, section 19 of the Fed- eral Reserve Act might have been intended. For provi- sions of section 19 relating to reserve requirements, see note above. The Act of January sixteenth, eighteen hundred and eighty-three, referred to in subsec. (l), is act Jan. 16, 1883, ch. 27, 22 Stat. 403, as amended, which enacted sec- tion 42 of former Title 40, Public Buildings, Property, and Works, and sections 632, 633, 635, 637, 638, and 640 to 642a of former Title 5, Executive Departments and Gov- ernment Officers and Employees. For complete classi- fication of this Act to the Code, see Tables. Section 42 of former Title 40 was repealed and reenacted as section 8165 of Title 40, Public Buildings, Property, and Works, by Pub. L. 107–217, §§ 1, 6(b), Aug. 21, 2002, 116 Stat. 1062, 1304. The sections that were classified to former Title 5 were repealed by Pub. L. 89–554, § 8(a), Sept. 6, 1966, 80 Stat. 632, the first section of which enacted Title 5, Government Organization and Employees. For distribu- tion of former sections of Title 5 into the revised Title 5, see table at the beginning of Title 5. This title, referred to in subsec. (p), probably should read ‘‘this Act’’, meaning act Dec. 23, 1913, ch. 6, 38 Stat. 251, as amended, known as the Federal Reserve Act, which does not contain titles. For complete classi- fication of this Act to the Code, see References in Text note set out under section 226 of this title and Tables. Subsection (a) or (c) of section 1109 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, re- ferred to in subsec. (s)(7), is subsec. (a) or (c) of section 1109 of Pub. L. 111–203, title XI, 124 Stat. 2127, 2128, which is not classified to the Code. July 21, 2010, referred to in subsec. (s)(8)(B), was in the original ‘‘the date of enactment of this section’’, which was translated as meaning the date of enactment of Pub. L. 111–203 which added subsec. (s), to reflect the probable intent of Congress. CODIFICATION In subsec. (k), ‘‘subchapter II of chapter 5, and chap- ter 7, of title 5’’ was substituted for ‘‘the Administra- tive Procedure Act’’ on authority of section 7(b) of Pub. L. 89–554, Sept. 6, 1966, 80 Stat. 631, the first section of which enacted Title 5, Government Organization and Employees. Section is comprised of section 11 of act Dec. 23, 1913. The fourteenth par. of section 16 of act Dec. 23, 1913, which formerly constituted subsec. (o) of this section, is now classified to section 248–1 of this title. AMENDMENTS 2010—Subsec. (a)(2). Pub. L. 111–203, § 366(1)(A), which directed insertion of ‘‘State savings associations that are insured depository institutions (as defined in sec- tion 1813 of this title),’’ after ‘‘case of insured’’, was ex- ecuted by making the insertion after ‘‘case of insured’’ in subpar. (B)(i), to reflect the probable intent of Con- gress. Subsec. (a)(2)(B)(iii). Pub. L. 111–203, § 366(1)(B), (C), substituted ‘‘Comptroller of the Currency’’ for ‘‘Direc- tor of the Office of Thrift Supervision’’ and inserted ‘‘Federal’’ before ‘‘savings association which’’. Subsec. (a)(2)(B)(iv). Pub. L. 111–203, § 366(1)(D), sub- stituted ‘‘savings association’’ for ‘‘savings and loan as- sociation’’. Subsec. (k). Pub. L. 111–203, § 1108(c), inserted at end ‘‘The Board of Governors may not delegate to a Federal reserve bank its functions for the establishment of policies for the supervision and regulation of deposi- tory institution holding companies and other financial firms supervised by the Board of Governors.’’ Subsec. (s). Pub. L. 111–203, § 1103(b), added subsec. (s) relating to Federal Reserve transparency and release of information. Page 97 TITLE 12—BANKS AND BANKING § 248 Pub. L. 111–203, § 318(c), added subsec. (s) relating to assessments, fees, and other charges for certain compa- nies. 2002—Subsec. (r). Pub. L. 107–297 added subsec. (r). 2001—Subsec. (q). Pub. L. 107–56 added subsec. (q). 1999—Subsec. (m). Pub. L. 106–102 substituted ‘‘[Re- pealed]’’ for text of subsec. (m) which related to per- centage of capital and surplus represented by loans to be determined by the Federal Reserve Board. 1994—Subsec. (d). Pub. L. 103–325, § 602(g)(2), sub- stituted ‘‘Secretary of the Treasury’’ for ‘‘bureau under the charge of the Comptroller of the Currency’’ before ‘‘the issue and retirement’’ and for ‘‘Comptroller’’ be- fore ‘‘to the Federal Reserve agents’’. Subsec. (m). Pub. L. 103–325, § 322(d), which directed substitution of ‘‘15 percent’’ for ‘‘10 percentum’’ wher- ever appearing, was executed by substituting ‘‘15 per- cent’’ for ‘‘10 per centum’’ in two places to reflect the probable intent of Congress. Subsec. (p). Pub. L. 103–325, § 331(d), added subsec. (p). 1992—Subsecs. (o), (p). Pub. L. 102–550 redesignated subsec. (p) as (o). 1991—Subsec. (n). Pub. L. 102–242, § 142(c), which di- rected addition of subsec. (n) at end of section, was exe- cuted by adding subsec. (n) after subsec. (m). See Con- struction of 1991 Amendment note below. Subsec. (p). Pub. L. 102–242, § 133(f), added subsec. (p). 1989—Subsec. (a)(2)(iii). Pub. L. 101–73 substituted ‘‘the Director of the Office of Thrift Supervision in the case of any savings association which is an insured de- pository institution (as defined in section 1813 of this title)’’ for ‘‘Federal Home Loan Bank Board in the case of any institution insured by the Federal Savings and Loan Insurance Corporation’’. 1983—Subsec. (m). Pub. L. 97–457 substituted ‘‘under section 84(c)(4) of this title’’ for ‘‘under paragraph (8) of section 84 of this title’’ after ‘‘in the case of national banks’’. 1982—Subsec. (n). Pub. L. 97–258 struck out subsec. (n) which provided that, whenever in the judgment of the Secretary of the Treasury such action was necessary to protect the currency system of the United States, the Secretary of the Treasury, in his discretion, could re- quire any or all individuals, partnerships, associations, and corporations to pay and deliver to the Treasurer of the United States any or all gold coin, gold bullion, and gold certificates owned by such individuals, partner- ships, associations, and corporations and that, upon re- ceipt of such gold coin, gold bullion or gold certificates, the Secretary of the Treasury would pay therefor an equivalent amount of any other form of coin or cur- rency coined or issued under the laws of the United States. 1980—Subsec. (a). Pub. L. 96–221 designated existing provisions as par. (1) and added par. (2). 1978—Subsec. (k). Pub. L. 95–251 substituted ‘‘admin- istrative law judges’’ for ‘‘hearing examiners’’. 1968—Subsec. (c). Pub. L. 90–269 struck out require- ments for establishment by the Board of Governors of the Federal Reserve System of a graduated tax on the deficiency in the gold reserve whenever the reserve held against Federal Reserve notes fell below 25 percent and for an automatic increase in the rates of interest or discount fixed by the Board in an amount equal to the graduated tax imposed. 1966—Subsec. (d). Pub. L. 89–427 excepted the can- cellation and destruction, and the accounting with re- spect to the cancellation and destruction, of notes unfit for circulation from the area of responsibility exercised by the Board of Governors of the Federal Reserve Sys- tem through the Bureau of the Comptroller of the Cur- rency over the issue and retirement of Federal Reserve notes. Subsec. (k). Pub. L. 89–765 added subsec. (k). A former subsec. (k) was repealed by Pub. L. 87–722, § 3, Sept. 28, 1962, 76 Stat. 670. 1962—Subsec. (k). Pub. L. 87–722 repealed subsec. (k) which related to the authority of the Board of Gov- ernors of the Federal Reserve System to permit na- tional banks to act as trustees, etc., and is now covered by section 92a of this title. 1959—Subsec. (e). Pub. L. 86–114 substituted ‘‘reserve cities’’ for ‘‘reserve and central reserve cities’’ in two places. Subsec. (m). Pub. L. 86–251 struck out ‘‘in the form of notes’’ after ‘‘represented by obligations’’ in proviso. 1945—Subsec. (c). Act June 12, 1945, substituted ‘‘25 per centum’’ for ‘‘40 per centum’’, and ‘‘20 per centum’’ for ‘‘321⁄2 per centum’’ wherever appearing. 1935—Subsec. (k). Act Aug. 23, 1935, § 342, amended last sentence of third par. Subsec. (m). Act Aug. 23, 1935, § 321(a), inserted pro- viso at end of first sentence. 1933—Subsec. (m). Act June 16, 1933, amended provi- sions generally. Subsec. (n). Act Mar. 9, 1933, added subsec. (n). 1930—Subsec. (k). Act June 26, 1930, added last par. 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. EFFECTIVE DATE OF 2010 AMENDMENT Amendment by section 318(c) of Pub. L. 111–203 effec- tive on the transfer date, see section 318(e) of Pub. L. 111–203, set out as an Effective Date note under section 16 of this title. Amendment by section 366(1) of Pub. L. 111–203 effec- tive on the transfer date, see section 351 of Pub. L. 111–203, set out as a note under section 906 of Title 2, The Congress. Amendment by sections 1103(b) and 1108(c) of Pub. L. 111–203 effective 1 day after July 21, 2010, except as otherwise provided, see section 4 of Pub. L. 111–203, set out as an Effective Date note under section 5301 of this title. EFFECTIVE DATE OF 1992 AMENDMENT Amendment by Pub. L. 102–550 effective as if included in the Federal Deposit Insurance Corporation Improve- ment Act of 1991, Pub. L. 102–242, as of Dec. 19, 1991, ex- cept that where amendment is to any provision of law added or amended by Pub. L. 102–242 effective after Dec. 19, 1992, then amendment by Pub. L. 102–550 effective on effective date of amendment by Pub. L. 102–242, see sec- tion 1609 of Pub. L. 102–550, set out as a note under sec- tion 191 of this title. EFFECTIVE DATE OF 1991 AMENDMENT Amendment by section 133(f) of Pub. L. 102–242 effec- tive 1 year after Dec. 19, 1991, see section 133(g) of Pub. L. 102–242, set out as a note under section 191 of this title. EFFECTIVE DATE OF 1980 AMENDMENT Section 108 of title I of Pub. L. 96–221 provided that: ‘‘This title [enacting section 248a of this title, amend- ing this section and sections 342, 347b, 355, 360, 412, 461, 463, 505, and 1425a of this title, and enacting provisions set out as notes under sections 226 and 355 of this title] shall take effect on the first day of the sixth month which begins after the date of the enactment of this title [Mar. 31, 1980], except that the amendments re- garding sections 19(b)(7) and 19(b)(8)(D) of the Federal Reserve Act [section 461(b)(7) and (b)(8)(D) of this title] shall take effect on the date of enactment of this title.’’ EFFECTIVE DATE OF 1959 AMENDMENT Amendment by Pub. L. 86–114 effective three years after July 28, 1959, see section 3(b) of Pub. L. 86–114, set out as a Central Reserve and Reserve Cities note under former section 141 of this title. CONSTRUCTION OF 1991 AMENDMENT Section 1603(e)(2) of Pub. L. 102–550 provided that: ‘‘The amendment made by section 142(c) of the Federal Deposit Insurance Corporation Improvement Act of 1991