sured bank if the stock of such bank or company is owned exclusively (except to the extent directors' qualifying shares are required by law) by depository institutions and such bank or company and all subsidiaries thereof are engaged exclusively in providing services for other depository institutions and their officers, directors, and employees, but in no event shall the total amount of such stock held by the association in any bank or holding company exceed at any time 10 per centum of the association's capital stock and paid in and unimpaired surplus and in no event shall the purchase of such stock result in an association's acquiring more than 5 per centum of any class of voting securities of such bank or company. The limitations and restrictions contained in this paragraph as to an association purchasing for its own account investment securities shall not apply to securities that (A) are offered and sold pursuant to section 4(5) of the Securities Act of 1933 (15 U.S.C. 77d(5)); or (B) are mortgage related securities (as that term is defined in section 3(a)(41) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(41))), subject to such regulations as the Comptroller of the Currency may prescribe, including regulations prescribing minimum size of the issue (at the time of initial distribution) or minimum aggregate sales prices, or both. [See main edition for text of pars. Eighth and Ninth] Tenth. To invest in tangible personal property, including, without limitation, vehicles, manufactured homes, machinery, equipment, or furniture, for lease financing transactions on a net lease basis, but such investment may not exceed 10 percent of the assets of the association. (As amended Oct. 3, 1984, Pub. L. 98-440, title I, § 105(c), 98 Stat. 1691; Oct. 12, 1984, Pub. L. 98-473, title I, § 101(1) [title I, § 1011, 98 Stat. 1884, 1885; Aug. 10, 1987, Pub. L. 100-86, title I, § 108, 101 Stat. 579.) REFERENCES IN TEXT Title 62 of the Revised Statutes, referred to in par. Seventh, was in the original “this Title" meaning title 62 of the Revised Statutes, consisting of R.S. §§ 5133 to 5243, which are classified to sections 21, 22 to 24, 25a, 26 to 29, 35 to 37, 39, 51, 52, 53, 56, 57, 59 to 62, 66, 71, 72 to 76, 81 to 91, 93, 93a, 94, 101a, 102, 104, 107 to 110, 123, 124, 131 to 138, 141 to 144, 151, 152, 161, 164, 168 to 175, 181 to 186, 192 to 196, 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 5243 to the Code, see 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. CODIFICATION Amendment by Pub. L. 98-473 is based on section 211(a) of title II of S. 2416, as introduced in the Senate on Mar. 13, 1984, which was enacted into permanent law by section 101(1) of Pub. L. 98-473. AMENDMENTS 1987-Par. Tenth. Pub. L. 100-86 added par. Tenth. 1984-Par. Seventh. Pub. L. 98-473 inserted reference to the Inter-American Investment Corporation. Pub. L. 98-440 inserted provision that the limitations and restrictions contained in this paragraph as to an association purchasing investment securities for its own account shall not apply to securities offered and sold pursuant to section 15 U.S.C. 77d(5), or that are mortgage related securities (as defined in 15 U.S.C. 78c(a)(41)), subject to such regulations as the Comptroller of the Currency may prescribe. § 95a. Regulation of transactions in foreign exchange of gold and silver; property transfers; vested interests, enforcement and penalties EXECUTIVE ORDER NO. 11387 Ex. Ord. No. 11387, Jan. 1, 1968, 33 F.R. 47, which prohibited transfers of capital to or within a foreign country or to any national thereof outside the United States by a person subject to the jurisdiction of the United States who owns a 10 percent interest in a foreign business venture, was revoked by Ex. Ord. No. 12553, Feb. 25, 1986, 51 F.R. 7237. SHORT TITLE OF 1987 AMENDMENT Pub. L. 100-86, § 1(a), Aug. 10, 1987, 101 Stat. 552, provided 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 provisions 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 Recapitalization 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 17301 of this title, amending sections 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'." § 248a. Pricing of services [See main edition for text of (a) to (d)] (e) Parity in clearing All depository institutions, as defined in section 461(b)(1) of this title, may receive for deposit and as deposits any evidences of transaction accounts, as defined by section 461(b)(1) of this title from other depository institutions, as defined in section 461(b)(1) of this title or from any office of any Federal Reserve bank without regard to any Federal or State law restricting the number or the physical location or locations of such depository institutions. (As amended Aug. 10, 1987, Pub. L. 100-86, title VI, § 612(a), 101 Stat. 652.) AMENDMENTS 1987-Subsec. (e). Pub. L. 100-86 added subsec. (e). EFFECTIVE DATE OF 1987 AmendmenT Section 612(b) of Pub. L. 100-86 provided that: "The amendment made by subsection (a) [amending this section] shall take effect on the date of enactment of this title [Aug. 10, 1987].” SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 461, 1431, 1795f, 1841 of this title. SUBCHAPTER X-POWERS AND DUTIES OF MEMBER BANKS § 371b. Rate of interest on time deposits; payment of time deposits before maturity; waiver of notice requirements for withdrawal of savings deposits The Board may from time to time, after consulting with the Board of Directors of the Federal Deposit Insurance Corporation and the Federal Home Loan Bank Board, prescribe rules governing the advertisement of interest on deposits by member banks on time and savings deposits. The provisions of this section shall not apply to any deposit which is payable only at an office of a member bank located outside of the States of the United States and the District of Columbia. During the period commencing on October 15, 1962, and ending on October 15, 1968, the provisions of this paragraph shall not apply to the rate of interest which may be paid by member banks on time deposits of foreign governments, monetary and financial authorities of foreign governments when acting as such, or international financial institutions of which the United States is a member. (As amended Mar. 31, 1980, Pub. L. 96-221, title II, § 207(b)(4)-(6), 94 Stat. 144.) AMENDMENTS 1980-Pub. L. 96-221 struck out provisions relating to payment of interest on deposits, prescribing of different limitations by the Board for different classes of deposits, and payment of time deposits before maturity. EFFECTIVE DATE of 1980 Amendment Amendment by Pub. L. 96-221 effective 6 years after Mar. 31, 1980, see section 207(b) of Pub. L. 96-221, set out as section 3506(b) of this title. TIME DEPOSITS; INTEREST RATES, LIMITATION Pub. L. 93-123, Oct. 15, 1973, 87 Stat. 448, which provided that in carrying out the Act of September 21, 1966 (Pub. L. 89-597) [enacting section 1425b of this title, amending sections 355, 371b, 461, and 1828 of this title and section 771 of former Title 31, repealing section 462a-1 of this title, and enacting provisions set out as notes under section 461 of this title] and other provisions of law, the Secretary of the Treasury, the Board of Governors of the Federal Reserve System, the Board of Directors of the Federal Deposit Insurance Corporation, and the Federal Home Loan Bank Board take action to limit rates of interest or dividends paid on time deposits of less than $100,000 by institutions regulated by them, was repealed by Pub. L. 96-221, title II, § 207(b)(13), Mar. 31, 1980, 94 Stat. 144, eff. 6 years after Mar. 31, 1980. § 371c. Banking affiliates SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 371c-1, 504, 601, 1730a, 1820, 1828, 1841, 1843, 3909 of this title. § 371c-1. Restrictions on transactions with affiliates (a) In general (1) Terms A member bank and its subsidiaries may engage in any of the transactions described in paragraph (2) only— (A) on terms and under circumstances, including credit standards, that are substantially the same, or at least as favorable to such bank or its subsidiary, as those prevailing at the time for comparable transactions with or involving other nonaffiliated companies, or (B) in the absence of comparable transactions, on terms and under circumstances, including credit standards, that in good faith would be offered to, or would apply to, nonaffiliated companies. (2) Transactions covered Paragraph (1) applies to the following: (B) The sale of securities or other assets to an affiliate, including assets subject to an agreement to repurchase. (C) The payment of money or the furnishing of services to an affiliate under contract, lease, or otherwise. (D) Any transaction in which an affiliate acts as an agent or broker or receives a fee for its services to the bank or to any other person. (E) Any transaction or series of transactions with a third party (i) if an affiliate has a financial interest in the third party, or (ii) if an affiliate is a participant in such transaction or series of transactions. (3) Transactions that benefit affiliate For the purpose of this subsection, any transaction by a member bank or its subsidiary with any person shall be deemed to be a transaction with an affiliate of such bank if any of the proceeds of the transaction are used for the benefit of, or transferred to, such affiliate. (b) Prohibited transactions (1) In general A member bank or its subsidiary (A) shall not purchase as fiduciary any securities or other assets from any affiliate unless such purchase is permitted— (i) under the instrument creating the fiduciary relationship, (ii) by court order, or (iii) by law of the jurisdiction governing the fiduciary relationship; and (B) whether acting as principal or fiduciary, shall not knowingly purchase or otherwise acquire, during the existence of any underwriting or selling syndicate, any security if a principal underwriter of that security is an affiliate of such bank. (2) Exception Subparagraph (B) of paragraph (1) shall not apply if the purchase or acquisition of such securities has been approved, before such securities are initially offered for sale to the public, by a majority of the directors of the bank who are not officers or employees of the bank or any affiliate thereof. (3) Definitions For the purpose of this subsection— (A) the term "security" has the meaning given to such term in section 78c(a)(10) of title 15; and (B) the term "principal underwriter" means any underwriter who, in connection with a primary distribution of securities (i) is in privity of contract with the issuer or an affiliated person of the issuer; (ii) acting alone or in concert with one or more other persons, initiates or directs the formation of an underwriting syndicate; or (iii) is allowed a rate of gross commission, spread, or other profit greater than the rate allowed another underwriter participating in the distribution. (c) Advertising restriction A member bank or any subsidiary or affiliate of a member bank shall not publish any advertisement or enter into any agreement stating or suggesting that the bank shall in any way be responsible for the obligations of its affiliates. (d) Definitions For the purpose of this section (1) the term "affiliate" has the meaning given to such term in section 371c of this title (but does not include any company described in section1 (b)(2) of such section or any bank); (2) the terms "bank", "subsidiary", "person", and "security" (other than security as used in subsection (b) of this section) have the meanings given to such terms in section 371c of this title; and (3) the term "covered transaction" has the meaning given to such term in section 371c of this title (but does not include any transaction which is exempt from such definition under subsection (d) of such section). (e) Regulations The Board may prescribe regulations to administer and carry out the purposes of this section, including (1) regulations to further define terms used in this section; and (2) regulations to (A) exempt transactions or relationships from the requirements of this section; and (B) exclude any subsidiary of a bank holding company from the definition of affiliate for purposes of this section, if the Board finds such exemptions or exclusions are in the public interest and are consistent with the purposes of this section. (Dec. 23, 1913, ch. 6, § 23B, as added Aug. 10, 1987, Pub. L. 100-86, title I, § 102(a), 101 Stat. 564.) SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 1730a, 1828 of this title. § 375b. Prohibitions respecting loans and extensions of credit to executive officers and directors of banks, political or campaign committees, etc. SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 503, 504, 1828, 1843, 1972 of this title. § 377. Affiliation with organization dealing in securities; penalties SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 1730a, 1828 of this title. 'So in original. Probably should be "subsection". SUBCHAPTER XI-DEPOSITARIES AND FISCAL AGENTS § 393. Federal reserve banks as depositaries for Farm Credit System [See main edition for text] (Dec. 23, 1913, ch. 6, § 15 (par.), as added Mar. 4, 1923, ch. 252, title IV, § 406, 42 Stat. 1480; amended Dec. 10, 1971, Pub. L. 92-181, title V, § 5.41, formerly § 5.27(b), 85 Stat. 625; renumbered § 5.41(b), Dec. 23, 1985, Pub. L. 99-205, title II, § 205(a)(2), 99 Stat. 1703; renumbered § 5.41, Jan. 6, 1988, Pub. L. 100-233, title VIII, § 805(ff)(2), 101 Stat. 1717.) SUBCHAPTER XIV-BANK RESERVES § 461. Reserve requirements (a) Establishment of applicable definitions, payment of interest, obligations as deposits, and regulations The Board is authorized for the purposes of this section to define the terms used in this section, to determine what shall be deemed a payment of interest, to determine what types of obligations, whether issued directly by a member bank or indirectly by an affiliate of a member bank or by other means, and, regardless of the use of the proceeds, shall be deemed a deposit, and to prescribe such regulations as it may deem necessary to effectuate the purposes of this section and to prevent evasions thereof. [See main edition for text of (b) and (c); credits] CODIFICATION Subsec. (a) is set out in this supplement to correct typographical error appearing in the main edition. SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 248, 248a, 505, 1424, 1828, 1841, 3105, 3503, 4001, 4005 of this title; title 22 sections 5058, 5097; title 31 sections 3121, 9110. SUBCHAPTER XV-BANK EXAMINATIONS § 481. Appointment of examiners; examination of member banks, State banks, and trust companies; reports [See main edition for text of first par.] The examiner making the examination of any affiliate of a national bank shall have power to make a thorough examination of all the affairs of the affiliate, and in doing so he shall have power to administer oaths and to examine any of the officers, directors, employees, and agents thereof under oath and to make a report of his findings to the Comptroller of the Currency. The expense of examinations of such affiliates may be assessed by the Comptroller of the Currency upon the affiliates examined in proportion to assets or resources held by the affiliates upon the dates of examination of the various affiliates. If any such affiliate shall refuse to pay such expenses or shall fail to do so within sixty days after the date of such assessment, then such expenses may be assessed against the affiliated national bank and, when so assessed, shall be paid by such national bank: Provided, however, That, if the affiliation is with two or more national banks, such expenses may be assessed against, and collected from, any or all of such national banks in such proportions as the Comptroller of the Currency may prescribe. The examiners and assistant examiners making the examinations of national banking associations and affiliates thereof herein provided for and the chief examiners, reviewing examiners and other persons whose services may be required in connection with such examinations or the reports thereof, shall be employed by the Comptroller of the Currency with the approval of the Secretary of the Treasury; the employment and compensation of examiners, chief examiners, reviewing examiners, assistant examiners, and of the other employees of the office of the Comptroller of the Currency whose compensation is and shall be paid from assessments on banks or affiliates thereof shall be without regard to the provisions of other laws applicable to officers or employees of the United States. The funds derived from such assessments may be deposited by the Comptroller of the Currency in accordance with the provisions of section 192 of this title and shall not be construed to be Government funds or appropriated monies; and the Comptroller of the Currency is authorized and empowered to prescribe regulations governing the computation and assessment of the expenses of examinations herein provided for and the collection of such assessments from the banks and/or affiliates examined. Such funds shall not be subject to apportionment for the purpose of chapter 15 of title 31 or under any other authority. If any affiliate of a national bank shall refuse to permit an examiner to make an examination of the affiliate or shall refuse to give any information required in the course of any such examination, the national bank with which it is affiliated shall be subject to a penalty of not more than $100 for each day that any such refusal shall continue. Such penalty may be assessed by the Comptroller of the Currency and collected in the same manner as expenses of examinations. The Comptroller of the Currency, upon the request of the Board of Governors of the Federal Reserve System, is authorized to assign examiners appointed under this section to examine foreign operations of State banks which are members of the Federal Reserve System. (As amended Aug. 10, 1987, Pub. L. 100-86, title V, § 505(b), 101 Stat. 633.) AMENDMENTS 1987-Pub. L. 100-86 inserted after fifth sentence of second par. "Such funds shall not be subject to apportionment for the purpose of chapter 15 of title 31 or under any other authority." CHAPTER 4-TAXATION SUBCHAPTER I-FEDERAL RESERVE BANKS § 531. Exemption from taxation SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in title 26 section 135. § 619. Capital stock; by whom held; ownership of capital stock by foreign bank Except as otherwise provided in this subchapter, a majority of the shares of the capital stock of any such corporation shall at all times be held and owned by citizens of the United States, by corporations the controlling interest in which is owned by citizens of the United States, chartered under the laws of the United States or of a State of the United States, or by firms or companies, the controlling interest in which is owned by citizens of the United States. Notwithstanding any other provisions of this subchapter, one or more foreign banks, institutions organized under the laws of foreign countries which own or control foreign banks, or banks organized under the laws of the United States, the States of the United States, or the District of Columbia, the controlling interests in which are owned by any such foreign banks or institutions, may, with the prior approval of the Board of Governors of the Federal Reserve System and upon such terms and conditions and subject to such rules and regulations as the Board of Governors of the Federal Reserve System may prescribe, own and hold 50 per centum or more of the shares of the capital stock of any corporation organized under this subchapter and any such corporation shall be subject to the same provisions of law as any other corporation organized under this subchapter, and the terms "controls" and "controlling interest" shall be construed consistently with the definition of "control" in section 2 of the Bank Holding Company Act of 1956 [12 U.S.C. 1841]. For the purposes of the preceding sentence of this paragraph the term "foreign bank" shall have the meaning assigned to it in the International Banking Act of 1978 [12 U.S.C. 3101 et seq.]. Any company, other than a bank as defined in section 2 of the Bank Holding Company Act of 1956, that after March 5, 1987, directly or indirectly acquires control of a corporation organized or operating under the provisions of this subchapter or subchapter I of this chapter shall be subject to the provisions of the Bank Holding Company Act of 1956 [12 U.S.C. 1841 et seq.] in the same manner and to the same extent that bank holding companies are subject thereto, except that such company |