Title 12 — Banks and Banking

Chapter 2 — National Banks

§ 24. Corporate powers of associations

Statutory text

Upon duly making and filing articles of association and an organization certificate a national banking association shall become, as from the date of the execution of its organization certificate, a body corporate, and as such, and in the name designated in the organization certificate, it shall have power—

First. To adopt and use a corporate seal.

Second. To have succession from February 25, 1927, or from the date of its organization if organized after February 25, 1927, until such time as it be dissolved by the act of its shareholders owning two-thirds of its stock, or until its franchise becomes forfeited by reason of violation of law, or until terminated by either a general or a special Act of Congress or until its affairs be placed in the hands of a receiver and finally wound up by him.

Third. To make contracts.

Fourth. To sue and be sued, complain and defend, in any court of law and equity, as fully as natural persons.

Fifth. To elect or appoint directors, and by its board of directors to appoint a president, vice president, cashier, and other officers, define their duties, require bonds of them and fix the penalty thereof, dismiss such officers or any of them at pleasure, and appoint others to fill their places.

Sixth. To prescribe, by its board of directors, bylaws not inconsistent with law, regulating the manner in which its stock shall be transferred, its directors elected or appointed, its officers appointed, its property transferred, its general business conducted, and the privileges granted to it by law exercised and enjoyed.

Seventh. To exercise by its board of directors or duly authorized officers or agents, subject to law, all such incidental powers as shall be necessary to carry on the business of banking; by discounting and negotiating promissory notes, drafts, bills of exchange, and other evidences of debt; by receiving deposits; by buying and selling exchange, coin, and bullion; by loaning money on personal security; and by obtaining, issuing, and circulating notes according to the provisions of title 62 of the Revised Statutes. The business of dealing in securities and stock by the association shall be limited to purchasing and selling such securities and stock without recourse, solely upon the order, and for the account of, customers, and in no case for its own account, and the association shall not underwrite any issue of securities or stock; Provided, That the association may purchase for its own account investment securities under such limitations and restrictions as the Comptroller of the Currency may by regulation prescribe. In no event shall the total amount of the investment securities of any one obligor or maker, held by the association for its own account, exceed at any time 10 per centum of its capital stock actually paid in and unimpaired and 10 per centum of its unimpaired surplus fund, except that this limitation shall not require any association to dispose of any securities lawfully held by it on August 23, 1935. As used in this section the term “investment securities” shall mean marketable obligations, evidencing indebtedness of any person, copartnership, association, or corporation in the form of bonds, notes and/or debentures commonly known as investment securities under such further definition of the term “investment securities” as may by regulation be prescribed by the Comptroller of the Currency. Except as hereinafter provided or otherwise permitted by law, nothing herein contained shall authorize the purchase by the association for its own account of any shares of stock of any corporation. The limitations and restrictions herein contained as to dealing in, underwriting and purchasing for its own account, investment securities shall not apply to obligations of the United States, or general obligations of any State or of any political subdivision thereof, or obligations of the Washington Metropolitan Area Transit Authority which are guaranteed by the Secretary of Transportation under section 9 of the National Capital Transportation Act of 1969, or obligations issued under authority of the Federal Farm Loan Act, as amended, or issued by the thirteen banks for cooperatives or any of them or the Federal Home Loan Banks, or obligations which are insured by the Secretary of Housing and Urban Development under title XI of the National Housing Act [12 U.S.C. 1749aaa et seq.] or obligations which are insured by the Secretary of Housing and Urban Development (hereinafter in this sentence referred to as the “Secretary”) pursuant to section 207 of the National Housing Act [12 U.S.C. 1713], if the debentures to be issued in payment of such insured obligations are guaranteed as to principal and interest by the United States, or obligations, participations, or other instruments of or issued by the Federal National Mortgage Association, or the Government National Mortgage Association, or mortgages, obligations or other securities which are or ever have been sold by the Federal Home Loan Mortgage Corporation pursuant to section 305 or section 306 of the Federal Home Loan Mortgage Corporation Act [12 U.S.C. 1454 or 1455], or obligations of the Federal Financing Bank or obligations of the Environmental Financing Authority, or obligations or other instruments or securities of the Student Loan Marketing Association, or such obligations of any local public agency (as defined in section 110(h) of the Housing Act of 1949 [42 U.S.C. 1460(h)]) as are secured by an agreement between the local public agency and the Secretary in which the local public agency agrees to borrow from said Secretary, and said Secretary agrees to lend to said local public agency, monies in an aggregate amount which (together with any other monies irrevocably committed to the payment of interest on such obligations) will suffice to pay, when due, the interest on and all installments (including the final installment) of the principal of such obligations, which monies under the terms of said agreement are required to be used for such payments, or such obligations of a public housing agency (as defined in the United States Housing Act of 1937, as amended [42 U.S.C. 1437 et seq.]) as are secured (1) by an agreement between the public housing agency and the Secretary in which the public housing agency agrees to borrow from the Secretary, and the Secretary agrees to lend to the public housing agency, prior to the maturity of such obligations, monies in an amount which (together with any other monies irrevocably committed to the payment of interest on such obligations) will suffice to pay the principal of such obligations with interest to maturity thereon, which monies under the terms of said agreement are required to be used for the purpose of paying the principal of and the interest on such obligations at their maturity, (2) by a pledge of annual contributions under an annual contributions contract between such public housing agency and the Secretary if such contract shall contain the covenant by the Secretary which is authorized by subsection (g) of section 6 of the United States Housing Act of 1937, as amended [42 U.S.C. 1437d(g)], and if the maximum sum and the maximum period specified in such contract pursuant to said subsection 6(g) [42 U.S.C. 1437d(g)] shall not be less than the annual amount and the period for payment which are requisite to provide for the payment when due of all installments of principal and interest on such obligations, or (3) by a pledge of both annual contributions under an annual contributions contract containing the covenant by the Secretary which is authorized by section 6(g) of the United States Housing Act of 1937 [42 U.S.C. 1437d(g)], and a loan under an agreement between the local public housing agency and the Secretary in which the public housing agency agrees to borrow from the Secretary, and the Secretary agrees to lend to the public housing agency, prior to the maturity of the obligations involved, moneys in an amount which (together with any other moneys irrevocably committed under the annual contributions contract to the payment of principal and interest on such obligations) will suffice to provide for the payment when due of all installments of principal and interest on such obligations, which moneys under the terms of the agreement are required to be used for the purpose of paying the principal and interest on such obligations at their maturity: Provided, That in carrying on the business commonly known as the safe-deposit business the association shall not invest in the capital stock of a corporation organized under the law of any State to conduct a safe-deposit business in an amount in excess of 15 per centum of the capital stock of the association actually paid in and unimpaired and 15 per centum of its unimpaired surplus. The limitations and restrictions herein contained as to dealing in and underwriting investment securities shall not apply to obligations issued by the International Bank for Reconstruction and Development, the European Bank for Reconstruction and Development, the Inter-American Development Bank 1 Bank for Economic Cooperation and Development in the Middle East and North Africa,,2 the North American Development Bank, the Asian Development Bank, the African Development Bank, the Inter-American Investment Corporation, or the International Finance Corporation,,2 or obligations issued by any State or political subdivision or any agency of a State or political subdivision for housing, university, or dormitory purposes, which are at the time eligible for purchase by a national bank for its own account, nor to bonds, notes and other obligations issued by the Tennessee Valley Authority or by the United States Postal Service: Provided, That no association shall hold obligations issued by any of said organizations as a result of underwriting, dealing, or purchasing for its own account (and for this purpose obligations as to which it is under commitment shall be deemed to be held by it) in a total amount exceeding at any one time 10 per centum of its capital stock actually paid in and unimpaired and 10 per centum of its unimpaired surplus fund. Notwithstanding any other provision in this paragraph, the association may purchase for its own account shares of stock issued by a corporation authorized to be created pursuant to title IX of the Housing and Urban Development Act of 1968 [42 U.S.C. 3931 et seq.], and may make investments in a partnership, limited partnership, or joint venture formed pursuant to section 907(a) or 907(c) of that Act [42 U.S.C. 3937(a) or 3937(c)]. Notwithstanding any other provision of this paragraph, the association may purchase for its own account shares of stock issued by any State housing corporation incorporated in the State in which the association is located and may make investments in loans and commitments for loans to any such corporation: Provided, That in no event shall the total amount of such stock held for its own account and such investments in loans and commitments made by the association exceed at any time 5 per centum of its capital stock actually paid in and unimpaired plus 5 per centum of its unimpaired surplus fund. Notwithstanding any other provision in this paragraph, the association may purchase for its own account shares of stock issued by a corporation organized solely for the purpose of making loans to farmers and ranchers for agricultural purposes, including the breeding, raising, fattening, or marketing of livestock. However, unless the association owns at least 80 per centum of the stock of such agricultural credit corporation the amount invested by the association at any one time in the stock of such corporation shall not exceed 20 per centum of the unimpaired capital and surplus of the association: Provided further, That notwithstanding any other provision of this paragraph, the association may purchase for its own account shares of stock of a bank insured by the Federal Deposit Insurance Corporation or a holding company which owns or controls such an insured bank if the stock of such bank or company is owned exclusively (except to the extent directors’ qualifying shares are required by law) by depository institutions or depository institution holding companies (as defined in section 1813 of this title) and such bank or company and all subsidiaries thereof are engaged exclusively in providing services to or for other depository institutions, their holding companies, and the officers, directors, and employees of such institutions and companies, and in providing correspondent banking services at the request of other depository institutions or their holding companies (also referred to as a “banker’s bank”), but in no event shall the total amount of such stock held by the association in any bank or holding company exceed at any time 10 per centum of the association’s capital stock and paid in and unimpaired surplus and in no event shall the purchase of such stock result in an association’s acquiring more than 5 per centum of any class of voting securities of such bank or company. The limitations and restrictions contained in this paragraph as to an association purchasing for its own account investment securities shall not apply to securities that (A) are offered and sold pursuant to section 4(5) of the Securities Act of 1933 (15 U.S.C. 77d(5)); 3 (B) are small business related securities (as defined in section 3(a)(53) of the Securities Exchange Act of 1934 [15 U.S.C. 78c(a)(53)]); or (C) are mortgage related securities (as that term is defined in section 3(a)(41) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(41)).4 The exception provided for the securities described in subparagraphs (A), (B), and (C) shall be subject to such regulations as the Comptroller of the Currency may prescribe, including regulations prescribing minimum size of the issue (at the time of initial distribution) or minimum aggregate sales prices, or both.

A national banking association may deal in, underwrite, and purchase for such association’s own account qualified Canadian government obligations to the same extent that such association may deal in, underwrite, and purchase for such association’s own account obligations of the United States or general obligations of any State or of any political subdivision thereof. For purposes of this paragraph—

(1) the term “qualified Canadian government obligations” means any debt obligation which is backed by Canada, any Province of Canada, or any political subdivision of any such Province to a degree which is comparable to the liability of the United States, any State, or any political subdivision thereof for any obligation which is backed by the full faith and credit of the United States, such State, or such political subdivision, and such term includes any debt obligation of any agent of Canada or any such Province or any political subdivision of such Province if—

(A) the obligation of the agent is assumed in such agent’s capacity as agent for Canada or such Province or such political subdivision; and

(B) Canada, such Province, or such political subdivision on whose behalf such agent is acting with respect to such obligation is ultimately and unconditionally liable for such obligation; and

(2) the term “Province of Canada” means a Province of Canada and includes the Yukon Territory and the Northwest Territories and their successors.

In addition to the provisions in this paragraph for dealing in, underwriting, or purchasing securities, the limitations and restrictions contained in this paragraph as to dealing in, underwriting, and purchasing investment securities for the national bank’s own account shall not apply to obligations (including limited obligation bonds, revenue bonds, and obligations that satisfy the requirements of section 142(b)(1) of title 26) issued by or on behalf of any State or political subdivision of a State, including any municipal corporate instrumentality of 1 or more States, or any public agency or authority of any State or political subdivision of a State, if the national bank is well capitalized (as defined in section 1831o of this title).

Eighth. To contribute to community funds, or to charitable, philanthropic, or benevolent instrumentalities conducive to public welfare, such sums as its board of directors may deem expedient and in the interests of the association, if it is located in a State the laws of which do not expressly prohibit State banking institutions from contributing to such funds or instrumentalities.

Ninth. To issue and sell securities which are guaranteed pursuant to section 1721(g) of this title.

Tenth. To invest in tangible personal property, including, without limitation, vehicles, manufactured homes, machinery, equipment, or furniture, for lease financing transactions on a net lease basis, but such investment may not exceed 10 percent of the assets of the association.

Eleventh. To make investments directly or indirectly, each of which is designed primarily to promote the public welfare, including the welfare of low- and moderate-income communities or families (such as by providing housing, services, or jobs). An association shall not make any such investment if the investment would expose the association to unlimited liability. The Comptroller of the Currency shall limit an association’s investments in any 1 project and an association’s aggregate investments under this paragraph. An association’s aggregate investments under this paragraph shall not exceed an amount equal to the sum of 5 percent of the association’s capital stock actually paid in and unimpaired and 5 percent of the association’s unimpaired surplus fund, unless the Comptroller determines by order that the higher amount will pose no significant risk to the affected deposit insurance fund, and the association is adequately capitalized. In no case shall an association’s aggregate investments under this paragraph exceed an amount equal to the sum of 20 percent of the association’s capital stock actually paid in and unimpaired and 20 percent of the association’s unimpaired surplus fund. The foregoing standards and limitations apply to investments under this paragraph made by a national bank directly and by its subsidiaries.

Footnotes

1 So in original. Probably should be followed by a comma.
2 So in original.
3 See References in Text note below.
4 So in original. The period probably should be preceded by an additional closing parenthesis.

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

undated
R.S. § 5136
Enacted · 12 U.S.C. § 24
R.S. § 5136
Unresolved: No Public Law or Statutes at Large citation in the Code source.
Source evidence
Code source credit
R.S. § 5136
1935
Public Law not identified
Amended · 12 U.S.C. § 24
Par. Seventh. Act Aug. 23, 1935, amended second, fourth, and last sentences
Unresolved: No Public Law or Statutes at Large citation in the Code source.
Source evidence
Code amendment note
Par. Seventh. Act Aug. 23, 1935, amended second, fourth, and last sentences.
1938
Public Law not identified
Inserted · 12 U.S.C. § 24
Par. Seventh. Act Feb. 3, 1938, inserted “or obligations of national mortgage associations” in last sentence
Unresolved: No Public Law or Statutes at Large citation in the Code source.
Source evidence
Code amendment note
Par. Seventh. Act Feb. 3, 1938, inserted “or obligations of national mortgage associations” in last sentence.
1940
Public Law not identified
Added · 12 U.S.C. § 24
Par. Eighth. Act June 11, 1940, added par. Eighth
Unresolved: No Public Law or Statutes at Large citation in the Code source.
Source evidence
Code amendment note
Par. Eighth. Act June 11, 1940, added par. Eighth.
1949
Public Law not identified
Inserted · 12 U.S.C. § 24
Par. Seventh. Act July 15, 1949, inserted, in next to last sentence, “or such obligations of any local public agency (as defined in section 110(h) of the Housing Act of 1949) as are secured by an agreement between the local public agency and the Housing and Home Finance Administrator in which the local public agency agrees to borrow from said Administrator, and said Administrator agrees to lend to said local public agency, prior to the maturity of such obligations (which obligations shall have a maturity of not more than eighteen months), monies in an amount which (together with any other monies irrevocably committed to the payment of interest on such obligations) will suffice to pay the principal of such obligations with interest to maturity thereon, which monies under the terms of said agreement are required to be used for the purpose of paying the principal of and the interest on such obligations at their maturity, or such obligations of a public housing agency (as defined in the United States Housing Act of 1937, as amended) as are secured either (1) by an agreement between the public housing agency and the Public Housing Administration in which the public housing agency agrees to borrow from the Public Housing Administration, and the Public Housing Administration agrees to lend to the public housing agency, prior to the maturity of such obligations (which obligations shall have a maturity of not more than eighteen months), monies in an amount which (together with any other monies irrevocably committed to the payment of interest on such obligations) will suffice to pay the principal of such obligations with interest to maturity thereon, which monies under the terms of said agreement are required to be used for the purpose of paying the principal of and the interest on such obligations at their maturity, or (2) by a pledge of annual contributions under an annual contributions contract between such public housing agency and the Public Housing Administration if such contract shall contain the covenant by the Public Housing Administration which is authorized by subsection (b) of section 22 of the United States Housing Act of 1937, as amended, and if the maximum sum and the maximum period specified in such contract pursuant to said subsection 22(b) shall not be less than the annual amount and the period for payment, which are requisite to provide for the payment when due of all installments of principal and interest on such obligations”
Unresolved: No Public Law or Statutes at Large citation in the Code source.
Source evidence
Code amendment note
Par. Seventh. Act July 15, 1949, inserted, in next to last sentence, “or such obligations of any local public agency (as defined in section 110(h) of the Housing Act of 1949) as are secured by an agreement between the local public agency and the Housing and Home Finance Administrator in which the local public agency agrees to borrow from said Administrator, and said Administrator agrees to lend to said local public agency, prior to the maturity of such obligations (which obligations shall have a maturity of not more than eighteen months), monies in an amount which (together with any other monies irrevocably committed to the payment of interest on such obligations) will suffice to pay the principal of such obligations with interest to maturity thereon, which monies under the terms of said agreement are required to be used for the purpose of paying the principal of and the interest on such obligations at their maturity, or such obligations of a public housing agency (as defined in the United States Housing Act of 1937, as amended) as are secured either (1) by an agreement between the public housing agency and the Public Housing Administration in which the public housing agency agrees to borrow from the Public Housing Administration, and the Public Housing Administration agrees to lend to the public housing agency, prior to the maturity of such obligations (which obligations shall have a maturity of not more than eighteen months), monies in an amount which (together with any other monies irrevocably committed to the payment of interest on such obligations) will suffice to pay the principal of such obligations with interest to maturity thereon, which monies under the terms of said agreement are required to be used for the purpose of paying the principal of and the interest on such obligations at their maturity, or (2) by a pledge of annual contributions under an annual contributions contract between such public housing agency and the Public Housing Administration if such contract shall contain the covenant by the Public Housing Administration which is authorized by subsection (b) of section 22 of the United States Housing Act of 1937, as amended, and if the maximum sum and the maximum period specified in such contract pursuant to said subsection 22(b) shall not be less than the annual amount and the period for payment, which are requisite to provide for the payment when due of all installments of principal and interest on such obligations”.
Act June 29, 1949, inserted last sentence to permit national banks and State member banks of the Federal Reserve System to deal in and underwrite obligations issued by the International Bank subject to certain limitations.
1952
Public Law not identified
Changed · 12 U.S.C. § 24
Par. Seventh. Act Apr. 9, 1952, enabled national banks and State member banks of the Federal Reserve System to receive compensation in the distribution of debentures issued by the Central Bank for Cooperation
Unresolved: No Public Law or Statutes at Large citation in the Code source.
Source evidence
Code amendment note
Par. Seventh. Act Apr. 9, 1952, enabled national banks and State member banks of the Federal Reserve System to receive compensation in the distribution of debentures issued by the Central Bank for Cooperation.
1954
Public Law not identified
Substituted · 12 U.S.C. § 24
Par. Seventh. Act Aug. 23, 1954, substituted “thirteen banks for cooperatives organized under the Farm Credit Act of 1933, or any of them” for “Central Bank for Cooperatives” in last sentence
Unresolved: No Public Law or Statutes at Large citation in the Code source.
Source evidence
Code amendment note
Par. Seventh. Act Aug. 23, 1954, substituted “thirteen banks for cooperatives organized under the Farm Credit Act of 1933, or any of them” for “Central Bank for Cooperatives” in last sentence.
Act Aug. 2, 1954, substituted “or obligations of the Federal National Mortgage Association” for “or obligations of national mortgage associations” in sixth sentence.
1956
Public Law not identified
Changed · 12 U.S.C. § 24
Par. Seventh. Act July 26, 1956, removed restriction which prohibited a national bank from investing in obligations of the thirteen banks for cooperatives an amount exceeding 10 percent of its capital stock actually paid in and unimpaired and 10 percent of its unimpaired surplus
Unresolved: No Public Law or Statutes at Large citation in the Code source.
Source evidence
Code amendment note
Par. Seventh. Act July 26, 1956, removed restriction which prohibited a national bank from investing in obligations of the thirteen banks for cooperatives an amount exceeding 10 percent of its capital stock actually paid in and unimpaired and 10 percent of its unimpaired surplus.
1959
Pub. L. 86–137 § 2 · 73 Stat. 280
Inserted · 12 U.S.C. § 24
Pub. L. 86–137 inserted provisions that limitations and restrictions contained in this section as to dealing in and underwriting investment securities shall not apply to bonds, notes and other obligations issued by the Tennessee Valley Authority
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 86–137 inserted provisions that limitations and restrictions contained in this section as to dealing in and underwriting investment securities shall not apply to bonds, notes and other obligations issued by the Tennessee Valley Authority.
Enacted provision · exact public law section
Sec. 2. Paragraph seventh of section 5136 of the Revised Statutes (12 U.S.C. 24), as amended, is further amended by inserting after the words “obligations issued by the International Bank for Reconstruction and Development which are at the time eligible for purchase by a national bank for its own account” the words “, nor to bonds, notes and other obligations issued by the Tennessee Valley Authority,” and by substituting for the words “said bank” in the immediately following proviso the words “either of said organizations”.
1959
Inter-American Development Bank Act
Pub. L. 86–147 § 10 · 73 Stat. 299
Inserted · 12 U.S.C. § 24
Pub. L. 86–147 inserted provisions that limitations and restrictions contained in this section as to dealing in and underwriting investment securities shall not apply to obligations issued by the Inter-American Development Bank
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 86–147 inserted provisions that limitations and restrictions contained in this section as to dealing in and underwriting investment securities shall not apply to obligations issued by the Inter-American Development Bank.
Enacted provision · exact public law section
Sec. 10. securities issued by bank as investment securities for national banks The last sentence of paragraph seven of section 5136 of the Revised Statutes, as amended (12 U.S.C. 24), is amended by inserting after the words “International Bank for Reconstruction and Development” the words “or the Inter-American Development Bank” and by striking the words “said Bank” and inserting in lieu thereof “either of said Banks”.
1959
Pub. L. 86–230 § 1(a) · 73 Stat. 457
Struck · 12 U.S.C. § 24
Pub. L. 86–230 struck out “or the Home Owners’ Loan Corporation” after “Federal Home Loan Banks”
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 86–230 struck out “or the Home Owners’ Loan Corporation” after “Federal Home Loan Banks”.
Enacted provision · exact public law section
(1) by striking out “the Federal Home Loan Banks, or the Home Owners’ Loan Corporation” in the second paragraph and inserting in lieu thereof “or the Federal Home Loan Banks”; and
1959
Pub. L. 86–278 · 73 Stat. 563
Substituted · 12 U.S.C. § 24
Pub. L. 86–278 substituted “any” for “either” before “of said organizations” in last sentence
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 86–278 substituted “any” for “either” before “of said organizations” in last sentence.
1959
Housing Act of 1959
Pub. L. 86–372 title IV § 420 · 73 Stat. 654
Substituted · 12 U.S.C. § 24
Pub. L. 86–372 substituted “monies in an aggregate amount which (together with any other monies irrevocably committed to the payment of interest on such obligations) will suffice to pay, when due, the interest on and all installments (including the final installment) of the principal of such obligations, which monies under the terms of said agreement are required to be used for such payments” for “prior to the maturity of such obligations (which obligations shall have a maturity of not more than eighteen months), monies in an amount which (together with any other monies irrevocably committed to the payment of interest on such obligations) will suffice to pay the principal of such obligations with interest to maturity thereon, which monies under the terms of said agreement are required to be used for the purpose of paying the principal of and the interest on such obligations at their maturity” after “local public agency,”
Source evidence
Code amendment note
Par. Seventh. Pub. L. 86–372 substituted “monies in an aggregate amount which (together with any other monies irrevocably committed to the payment of interest on such obligations) will suffice to pay, when due, the interest on and all installments (including the final installment) of the principal of such obligations, which monies under the terms of said agreement are required to be used for such payments” for “prior to the maturity of such obligations (which obligations shall have a maturity of not more than eighteen months), monies in an amount which (together with any other monies irrevocably committed to the payment of interest on such obligations) will suffice to pay the principal of such obligations with interest to maturity thereon, which monies under the terms of said agreement are required to be used for the purpose of paying the principal of and the interest on such obligations at their maturity” after “local public agency,”.
Enacted provision · exact public law section
Sec. 420. investment by banks in long-term obligations of local public agencies The next to the last sentence of paragraph 7 of section 5136 of the Revised Statutes, as amended (12 U.S.C. 24), is amended by striking out “prior to the maturity of such obligations (which obligations shall have a maturity of not more than eighteen months), monies in an amount which (together with any other monies irrevocably committed to the payment of interest on such obligations) will suffice to pay the principal of such obligations with interest to maturity thereon, which monies under the terms of said agreement are required to be used for the purpose of paying the principal of and the interest on such obligations at their maturity” the first place it appears and inserting in lieu thereof the following: “monies in an aggregate amount which (together with any other monies irrevocably committed to the payment of interest on such obligations) will suffice to pay, when due, the interest on and all installments (including the final installment) of the principal of such obligations, which monies under the terms of said agreement are required to be used for such payments”.
1959
Housing Act of 1959
Pub. L. 86–372 title IV § 420 · 73 Stat. 654
Substituted · 12 U.S.C. § 24
Pub. L. 86–372 substituted “monies in an aggregate amount which (together with any other monies irrevocably committed to the payment of interest on such obligations) will suffice to pay, when due, the interest on and all installments (including the final installment) of the principal of such obligations, which monies under the terms of said agreement are required to be used for such payments” for “prior to the maturity of such obligations (which obligations shall have a maturity of not more than eighteen months), monies in an amount which (together with any other monies irrevocably committed to the payment of interest on such obligations) will suffice to pay the principal of such obligations with interest to maturity thereon, which monies under the terms of said agreement are required to be used for the purpose of paying the principal of and the interest on such obligations at their maturity” following “local public agency,”
Source evidence
Code amendment note
Par. Seventh. Pub. L. 86–372 substituted “monies in an aggregate amount which (together with any other monies irrevocably committed to the payment of interest on such obligations) will suffice to pay, when due, the interest on and all installments (including the final installment) of the principal of such obligations, which monies under the terms of said agreement are required to be used for such payments” for “prior to the maturity of such obligations (which obligations shall have a maturity of not more than eighteen months), monies in an amount which (together with any other monies irrevocably committed to the payment of interest on such obligations) will suffice to pay the principal of such obligations with interest to maturity thereon, which monies under the terms of said agreement are required to be used for the purpose of paying the principal of and the interest on such obligations at their maturity” following “local public agency,”.
Enacted provision · exact public law section
Sec. 420. investment by banks in long-term obligations of local public agencies The next to the last sentence of paragraph 7 of section 5136 of the Revised Statutes, as amended (12 U.S.C. 24), is amended by striking out “prior to the maturity of such obligations (which obligations shall have a maturity of not more than eighteen months), monies in an amount which (together with any other monies irrevocably committed to the payment of interest on such obligations) will suffice to pay the principal of such obligations with interest to maturity thereon, which monies under the terms of said agreement are required to be used for the purpose of paying the principal of and the interest on such obligations at their maturity” the first place it appears and inserting in lieu thereof the following: “monies in an aggregate amount which (together with any other monies irrevocably committed to the payment of interest on such obligations) will suffice to pay, when due, the interest on and all installments (including the final installment) of the principal of such obligations, which monies under the terms of said agreement are required to be used for such payments”.
1964
Housing Act of 1964
Pub. L. 88–560 title VII § 701(c) · 78 Stat. 769
Substituted · 12 U.S.C. § 24
Pub. L. 88–560 substituted “or obligations, participations, or other instruments of or issued by the Federal National Mortgage Association” for “or obligations of the Federal National Mortgage Association”
Source evidence
Code amendment note
Par. Seventh. Pub. L. 88–560 substituted “or obligations, participations, or other instruments of or issued by the Federal National Mortgage Association” for “or obligations of the Federal National Mortgage Association”.
Enacted provision · exact public law section
(c) The penultimate sentence of paragraph Seventh of section 5136 12 USC 24. of the Revised Statutes is amended by striking out “or obligations of the Federal National Mortgage Association” and inserting in lieu thereof “or obligations, participations, or other instruments of or issued by the Federal National Mortgage Association”.
1966
Asian Development Bank Act
Pub. L. 89–369 § 10 · 80 Stat. 71
Inserted · 12 U.S.C. § 24
Pub. L. 89–369 inserted provisions that limitations and restrictions contained in this section as to dealing in and underwriting investment securities shall not apply to obligations issued by the Asian Development Bank
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 89–369 inserted provisions that limitations and restrictions contained in this section as to dealing in and underwriting investment securities shall not apply to obligations issued by the Asian Development Bank.
Enacted provision · exact public law section
Sec. 10. securities issued by bank as investment securities for national banks The last sentence of paragraph 7 of section 5136 of the Revised Statutes, as amended (12 U.S.C. 24), is amended by striking the word “or” after the words “International Bank for Reconstruction and Development” and inserting a comma in lieu thereof, and by inserting after the words “the Inter-American Development Bank” the words “or the Asian Development Bank”.
1966
Demonstration Cities and Metropolitan Development Act of 1966
Pub. L. 89–754 title V § 504(a)(1) · 80 Stat. 1255
Changed · 12 U.S.C. § 24
Pub. L. 89–754 made limitations and restrictions for dealing, underwriting, and purchasing for its own account of investment securities inapplicable to obligations which are insured by Secretary of Housing and Urban Development under provisions relating to mortgage insurance for group practice facilities
Source evidence
Code amendment note
Par. Seventh. Pub. L. 89–754 made limitations and restrictions for dealing, underwriting, and purchasing for its own account of investment securities inapplicable to obligations which are insured by Secretary of Housing and Urban Development under provisions relating to mortgage insurance for group practice facilities.
Enacted provision · exact public law section
(1) The sixth sentence of paragraph “Seventh” of section 5136 of the Revised Statutes, as amended (12 U.S.C. 24), is amended by inserting after “Federal Home Loan Banks,” the following: “or obligations which are insured by the Secretary of Housing and Urban Development under title XI of the National Housing Act”.
1967
Pub. L. 90–19 § 27(a) · 81 Stat. 17
1. Substituted · 12 U.S.C. § 24
  Pub. L. 90–19 substituted “Secretary of Housing and Urban Development (hereafter in this sentence referred to as the ‘Secretary’)” for “Federal Housing Administrator” after “local public agency and the”, for “Administrator” in two instances just before “agrees to lend”, and for “Public Housing Administration” wherever appearing in cls. (1) and (2), respectively
2. Substituted · 12 U.S.C. § 24
  Pub. L. 90–19 substituted “Secretary” for “Housing and Home Finance Administrator” after “local public agency and the”, for “Administrator” in two instances just before “agrees to lend”, and for “Public Housing Administration” wherever appearing in cls. (1) and (2), respectively
Source evidence
Code amendment note
Par. Seventh. Pub. L. 90–19 substituted “Secretary of Housing and Urban Development (hereafter in this sentence referred to as the ‘Secretary’)” for “Federal Housing Administrator”; and “Secretary” for “Housing and Home Finance Administrator” after “local public agency and the”, for “Administrator” in two instances just before “agrees to lend”, and for “Public Housing Administration” wherever appearing in cls. (1) and (2), respectively.
Enacted provision · exact public law section
(a) The penultimate sentence of paragraph seventh of section 5136 of the Revised Statutes (12 U.S.C. 24) is amended— (1) by striking out “Federal Housing Administrator” and inserting in lieu thereof “Secretary of Housing and Urban Development (hereafter in this sentence referred to as the ‘Secretary’)”; (2) by striking out “Housing and Home Finance Administrator” and inserting in lieu thereof “Secretary”; (3) by striking out “Administrator” each place it appears and inserting in lieu thereof “Secretary”; and (4) by striking out “Public Housing Administration” each place it appears and inserting in lieu thereof “Secretary”.
1968
Housing and Urban Development Act of 1968
Pub. L. 90–448 § 807(j) · 82 Stat. 476
Inserted · 12 U.S.C. § 24
Pub. L. 90–448, § 807(j), inserted “or the Government National Mortgage Association” after “Federal National Mortgage Association”
Source evidence
Code amendment note
Par. Seventh. Pub. L. 90–448, § 807(j), inserted “or the Government National Mortgage Association” after “Federal National Mortgage Association”.
Enacted provision · exact public law section
(j) Section 5136 of the Revised Statutes is amended by inserting 12 USC 24. “or the Government National Mortgage Association” immediately following “Federal National Mortgage Association”.
1968
Housing and Urban Development Act of 1968
Pub. L. 90–448 § 911 · 82 Stat. 476
Changed · 12 U.S.C. § 24
Pub. L. 90–448, § 911, authorized the association to purchase for its own account shares of stock issued by a corporation authorized to be created pursuant to sections 3931–3940 of title 42, and to make investments in a partnership, limited partnership, or joint venture formed pursuant to section 3937(a) or 3937(c) of title 42
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 90–448, § 911, authorized the association to purchase for its own account shares of stock issued by a corporation authorized to be created pursuant to sections 3931–3940 of title 42, and to make investments in a partnership, limited partnership, or joint venture formed pursuant to section 3937(a) or 3937(c) of title 42.
Enacted provision · exact public law section
Sec. 911. amendment to ranking laws Paragraph “Seventh” of section 5136 of the Revised Statutes (12 U.S.C. 24) is amended by adding at the end thereof the following: “Notwithstanding any other provision in this paragraph, the association may purchase for its own account shares of stock issued by a corporation authorized to be created pursuant to title IX of the Ante, p. 547. Housing and Urban Development Act of 1968, and may make investments in a partnership, limited partnership, or joint venture formed pursuant to section 907 (a) or 907 (c) of that Act.”
1968
Housing and Urban Development Act of 1968
Pub. L. 90–448 § 1705(h) · 82 Stat. 476
Changed · 12 U.S.C. § 24
Pub. L. 90–448, § 1705(h), included obligations issued by any State or political subdivision or any agency of a State or political subdivision for housing, university, or dormitory purposes
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 90–448, § 1705(h), included obligations issued by any State or political subdivision or any agency of a State or political subdivision for housing, university, or dormitory purposes.
Enacted provision · exact public law section
(h) The last sentence of paragraph “Seventh” of section 5136 of the Be vised Statutes (12 U.S.C. 24) (appearing immediately before the sentence added by section 911 of this Act) is amended by inserting after “the Asian Development Bank” the following: “, or obligations issued by any State or political subdivision or any agency of a State or political subdivision for housing, university, or dormitory purposes,”.
1968
Housing and Urban Development Act of 1968
Pub. L. 90–448 § 804(c) · 82 Stat. 476
Added · 12 U.S.C. § 24
Pub. L. 90–448, § 804(c), added par. Ninth
Source evidence
Code amendment note
Par. Ninth. Pub. L. 90–448, § 804(c), added par. Ninth.
Enacted provision · exact public law section
(c) Section 5136 of the Revised Statutes ( 12 U.S.C. 24) is amended by adding at the end thereof the following: “Ninth. To issue and sell securities which are guaranteed pursuant to section 306(g) of the National Housing Act.”
1972
National Capital Transportation Act of 1972
Pub. L. 92–349 title I § 101 · 86 Stat. 464
Inserted · 12 U.S.C. § 24
Pub. L. 92–349 inserted provisions that limitations and restrictions contained in this section as to dealing in and underwriting investment securities shall not apply to obligations of the Washington Metropolitan Area Transit Authority which are guaranteed by the Secretary of Transportation under section 9 of the National Capital Transportation Act of 1969
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 92–349 inserted provisions that limitations and restrictions contained in this section as to dealing in and underwriting investment securities shall not apply to obligations of the Washington Metropolitan Area Transit Authority which are guaranteed by the Secretary of Transportation under section 9 of the National Capital Transportation Act of 1969.
Enacted provision · exact public law section
Sec. 101. The National Capital Transportation Act of 1969 is amended by adding at the end thereof the following new sections: “Sec. 9. “guarantee of transit authority obligations (a) The Secretary of Transportation is authorized to guarantee, and to enter into commitments to guarantee, upon such terms and conditions as he may prescribe, payment of principal of and interest on bonds and other evidences of indebtedness (including short-term notes) issued with the approval of the Secretary of the Treasury Conditions. by the Transit Authority under the Compact. No such guarantee or commitment to guarantee shall be made unless the Secretary of Transportation determines and certifies that— “(1) the obligation to be guaranteed represents an acceptable financial risk to the United States and the prospective revenues of the Transit Authority (including payments under section 10) furnish reasonable assurance that timely payments of interest on such obligation will be made; “(2) the Transit Authority has entered into an agreement with the Secretary of Transportation providing for reasonable and prudent action by the Transit Authority respecting its financial condition if at any time the Secretary, in his discretion, determines that such action would be necessary to protect the interest of the United States; “(3) unless the obligation is a short-term note (as determined by the Secretary), it will be sold through a process of competitive bidding as prescribed by the Secretary of Transportation; and “(4) the rate of interest payable with respect to such obligation is reasonable in light of prevailing market yields. Notwithstanding clause (3) of the preceding sentence, the Secretary of Transportation may guarantee an obligation under this section sold through a process of negotiation if he makes a determination that prevailing market conditions would result in a higher net interest cost or would otherwise increase the cost of issuing the obligation if the obligation was sold through the competitive bidding process. The Secretary’s determination shall be in writing and shall contain a detailed explanation of the reasons therefor. “(b) Any guarantee of obligations made by the Secretary of Transportation under this section shall be conclusive evidence of the eligibility of the obligations for such guarantee, and the validity of any guarantee so made shall be incontestable, except, for fraud or material misrepresentation, in the hands of a holder of the guaranteed obligation. “(c) The aggregate principal amount of obligations which may be Limitations. guaranteed under this section shall not exceed $1,200,000,000; except that (1) no obligation may be guaranteed under this section if, taking into account the principal amount of that obligation, the aggregate amount of principal of outstanding obligations guaranteed under this section exceeds $900,000,000 unless the local participating governments (A) make, in accordance with agreements entered into with the Transit Authority, capital contributions to the Transit Authority for the Adopted Regional System in a total amount not less than 50 per centum of the amount by which the principal of such obligation causes such aggregate amount of principal to exceed $900,000,000, or (B) have entered into enforceable commitments with the Transit Authority to make such contributions by the end of the fiscal year in which such obligation is issued, and (2) obligations eligible for guarantees under this section which are issued solely for the purpose of refunding existing obligations previously guaranteed under this section may be guaranteed without regard to the $1,200,000,000 limitation. “(d) The interest on any obligation of the Transit Authority issued after the date of the enactment of this section shall be included in gross income for the purposes of chapter 1 of the Internal Revenue Code of 1954. 68A Stat. 5. 26 USC 1. “Sec. 10. “reimbursement for interest and related costs The Secretary of Transportation shall make periodic payments to the Transit Authority upon request therefor by the Transit Authority in such amounts as may be necessary to equal one-fourth of the total of the— “(1) net interest cost, and “(2) fees, commissions, and other costs of issuance, which the Secretary determines the Transit Authority incurred on its obligations issued after the date of the enactment of this section. “Sec. 11. “authorization of appropriations (a) There are authorized to be appropriated to the Secretary of Transportation such amounts as may be necessary to enable him to discharge his responsibilities under guarantees issued by him under section 9 and to make the payments to the Transit Authority in accordance with section 10. Amounts appropriated under this section shall be available without fiscal year limitation. “(b) If at any time the moneys available to the Secretary of Transportation Notes or obligations, issuance. are insufficient to enable him to discharge his responsibilities under guarantees issued by him under section 9 or to make payments to the Transit Authority in accordance with section 10, he shall issue to the Secretary of the Treasury notes or other obligations in such forms and denominations, bearing such maturities, and subject to such terms and conditions, as may be prescribed by the Secretary of the Treasury. Redemption of such notes or obligations shall be made by the Secretary of Transportation from appropriations available under subsection (a) of this section. Such notes or other obligations shall bear interest at a rate determined by the Secretary of the Treasury, taking into consideration the current average market yield on outstanding marketable obligations of the United States of comparable maturities during the month preceding the issuance of the notes or other obligations. The Secretary of the Treasury shall purchase any notes or other obligations issued hereunder and for that purpose he is authorized to use as a public debt transaction the proceeds from the sale of any securities issued under the Second Liberty Bond Act and the purposes 40 Stat. 283. 31 USC 774. for which securities may be issued under that Act are extended to include any purchase of such notes or obligations. The Secretary of the Treasury may at any time sell any of the notes or other obligations acquired by him under this subsection. All redemptions, purchases, and sales by the Secretary of the Treasury of such notes or other obligations shall be treated as public debt transactions of the United States. “Sec. 12. “obligations as lawful investments (a) Obligations issued by the Transit Authority which are guaranteed by the Secretary of Transportation under section 9 shall be lawful investments, and may be accepted as security for fiduciary, trust, and public funds, the investment or deposit of which shall be under authority or control of the United States or of any officer or officers thereof, and shall be deemed to be exempt securities within the meaning of laws administered by the Securities and Exchange Commission to the same extent as securities which are issued by the United States. “(b) The sixth sentence of the paragraph of section 5136 of the Revised Statutes of the United States designated ‘Seventh’ (12 U.S.C. 24) is amended by inserting, or obligations of the Washington Metropolitan Area Transit Authority which are guaranteed by the Secretary of Transportation under section 9 of the National Capital Transportation Act of 1969’ immediately following ‘or general obligations of any State or of any political subdivision thereof’. “(c) Any building association, building and loan association, or savings and loan association, incorporated or unincorporated, organized and operating under the laws of the District of Columbia, or any Federal savings and loan association, may invest its funds in obligations of the Transit Authority which are guaranteed by the Secretary of Transportation under section 9.”
1970
Postal Reorganization Act
Pub. L. 91–375 § 6(d) · 84 Stat. 719
Changed · 12 U.S.C. § 24
Pub. L. 91–375 made limitations and restrictions contained in this section as to dealing in and underwriting investment securities inapplicable to bonds, notes and other obligations issued by the United States Postal Service
Source evidence
Code amendment note
Par. Seventh. Pub. L. 91–375 made limitations and restrictions contained in this section as to dealing in and underwriting investment securities inapplicable to bonds, notes and other obligations issued by the United States Postal Service.
Enacted provision · exact public law section
(d) Paragraph seventh of section 5136 of the Revised Statutes, as amended (12 U.S.C. 24 seventh), is amended by inserting after “nor to bonds, notes, and other obligations issued by the Tennessee Valley Authority” the words “or by the United States Postal Service”.
1972
Education Amendments of 1972
Pub. L. 92–318 title I § 133(c)(1) · 86 Stat. 235
Changed · 12 U.S.C. § 24
Pub. L. 92–318 included obligations or other instruments or securities of the Student Loan Marketing Association
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 92–318 included obligations or other instruments or securities of the Student Loan Marketing Association.
Enacted provision · exact public law section
(1) The sixth sentence of the seventh paragraph of section 5136 of the Revised Statutes, as amended (12 U.S.C. 24), is amended by inserting “or obligations or other instruments or securities of the Student Loan Marketing Association,” immediately after “or obligations, participation, or other instruments of or issued by the Federal National Mortgage Association or the Government National Mortgage Association,”.
1972
Federal Water Pollution Control Act Amendments of 1972
Pub. L. 92–500 § 12(n) · 86 Stat. 816
Inserted · 12 U.S.C. § 24
Pub. L. 92–500 inserted “or obligations of the Environmental Financing Authority” after “Government National Mortgage Association”
Source evidence
Code amendment note
Par. Seventh. Pub. L. 92–500 inserted “or obligations of the Environmental Financing Authority” after “Government National Mortgage Association”.
Enacted provision · exact public law section
(n) The sixth sentence of the seventh paragraph of section 5136 of the Revised Statutes, as amended 12 U.S.C. 24, is amended by inserting “or obligations of the Environmental Financing Authority” immediately after “or obligations, participations, or other instruments of or issued by the Federal National Mortgage Association or the Government National Mortgage Association”.
1973
Pub. L. 93–100 § 5(c) · 87 Stat. 342
Inserted · 12 U.S.C. § 24
Pub. L. 93–100 inserted provision that the association may purchase shares of stock issued by state housing corporations incorporated in the state in which the association is located and make investments in loans and commitments for loans to such corporations with certain limitations
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 93–100 inserted provision that the association may purchase shares of stock issued by state housing corporations incorporated in the state in which the association is located and make investments in loans and commitments for loans to such corporations with certain limitations.
Enacted provision · exact public law section
(c) Paragraph seventh of section 5136 of the Revised Statutes (12 U.S.C. 24) is amended by adding at the end thereof the following: “Notwithstanding any other provision of this paragraph, the association may purchase for its own account shares of stock issued by any State housing corporation incorporated in the State in which the association is located and may make investments in loans and commitments for loans to any such corporation: Provided, That in no event shall the total amount of such stock held for its own account and such investments in loans and commitments made by the association exceed at any time 5 per centum of its capital stock actually paid in and unimpared plus 5 per centum of its unimpaired surplus fund.”
1973
federal Financing Bank Act of 1973
Pub. L. 93–224 § 14 · 87 Stat. 937
Inserted · 12 U.S.C. § 24
Pub. L. 93–224 inserted “or obligations of the Federal Financing Bank” after “or obligations, participations, or other instruments of or issued by the Federal National Mortgage Association or the Government National Mortgage Association”
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 93–224 inserted “or obligations of the Federal Financing Bank” after “or obligations, participations, or other instruments of or issued by the Federal National Mortgage Association or the Government National Mortgage Association”.
Enacted provision · exact public law section
Sec. 14. obligations eligible fob purchase by national banks The sixth sentence of the seventh paragraph of section 5136 of the Revised Statutes, as amended (12 U.S.C. 24), is amended by inserting “or obligations of the Federal Financing Bank” immediately after “or obligations, participations, or other instruments of or issued by the Federal National Mortgage Association or the Government National Mortgage Association,”.
1973
Flood Disaster Protection Act of 1973
Pub. L. 93–234 title II § 207 · 87 Stat. 975
Changed · 12 U.S.C. § 24
Pub. L. 93–234 authorized investments by national banks in agricultural credit corporations
Source evidence
Code amendment note
Par. Seventh. Pub. L. 93–234 authorized investments by national banks in agricultural credit corporations.
Enacted provision · exact public law section
Sec. 207. to permit national, banks to invest in agricultural credit corporations That paragraph “Seventh” of section 5136 of the Revised Statutes (12 U.S.C. 24) is amended by adding at the end thereof the following: “Notwithstanding any other provision in this paragraph, the association may purchase for its own account shares of stock issued by a corporation organized solely for the purpose of making loans to farmers and ranchers for agricultural purposes, including the breeding, raising, fattening, or marketing of livestock. However, unless the association owns at least 80 per centum of the stock of such agricultural credit corporation the amount invested by the association at any one time hi the stock of such corporation shall not exceed 20 per centum of the unimpaired capital and surplus of the association.”.
1974
Housing and Community Development Act of 1974
Pub. L. 93–383 title II § 206 · 88 Stat. 634
1. Substituted · 12 U.S.C. § 24
  Pub. L. 93–383 substituted “section 6(g) of the United States Housing Act of 1937” for references to section 1421a(b) of title 42 wherever appearing
2. Struck · 12 U.S.C. § 24
  Pub. L. 93–383 struck out “either” before “(1)”, “(which obligations shall have a maturity of not more than eighteen months)” in cl. (1) and “or” before “(2)”
3. Added · 12 U.S.C. § 24
  Pub. L. 93–383 added cl. (3)
4. Inserted · 12 U.S.C. § 24
  Pub. L. 93–383 inserted reference to mortgages, obligations, or other securities sold by the Federal Home Loan Mortgage Corporation pursuant to section 1454 or 1455 of this title
Source evidence
Code amendment note
Par. Seventh. Pub. L. 93–383 substituted “section 6(g) of the United States Housing Act of 1937” for references to section 1421a(b) of title 42 wherever appearing, struck out “either” before “(1)”, “(which obligations shall have a maturity of not more than eighteen months)” in cl. (1) and “or” before “(2)”, added cl. (3), and inserted reference to mortgages, obligations, or other securities sold by the Federal Home Loan Mortgage Corporation pursuant to section 1454 or 1455 of this title.
Enacted provision · exact public law section
Sec. 206. amendment to national bank act The sixth sentence of paragraph “Seventh” of section 5136 of the Revised Statutes, as amended (12 U.S.C. 24), is amended— (1) by striking out “1421a(b) of title 42” wherever it appears and inserting in lieu thereof w“6(g) of the United States Housing Act of 1937”; Ante, p. 659. (2) by striking out “either” before clause (1); (3) by striking out “(which obligations shall have a maturity of not more than eighteen months)” in clause (1); (4) by striking out “or” before clause (2); and (5) by inserting before the colon before the first proviso the following: “, or (3) by a pledge of both annual contributions under an annual contributions contract containing the covenant by the Secretary which is authorized by section 6(g) of the United States Housing Act of 1937, and a loan under an agreement between the local public housing agency and the Secretary in which the public housing agency agrees to borrow from the Secretary, and the Secretary agrees to lend to the public housing agency, prior to the maturity of the obligations involved, moneys in an amount which (together with any other moneys irrevocably committed under the annual contributions contract to the payment of principal and interest on such obligations) will suffice to pro-vide for the payment when due of all installments of principal and interest on such obligations, which moneys under the terms of the agreement are required to be used for the purpose of paying the principal and interest on such obligations at their maturity”.
1980
Depository Institutions Deregulation and Monetary Control Act of 1980
Pub. L. 96–221 title VII § 711 · 94 Stat. 131
Inserted · 12 U.S.C. § 24
Pub. L. 96–221 inserted proviso relating to purchase of stock in bankers’ banks
Source evidence
Code amendment note
Par. Seventh. Pub. L. 96–221 inserted proviso relating to purchase of stock in bankers’ banks.
Enacted provision · exact public law section
Sec. 711. purchase of stock in bankers’ banks The paragraph numbered “Seventh” of section 5136 of the Revised Statutes (12 U.S.C. 24(7)) is amended by inserting before the period at the end thereof the following: “: Provided further, That, notwithstanding any other provision of this paragraph, the association may purchase for its own account shares of stock of a bank insured by the Federal Deposit Insurance Corporation if the stock of such bank is owned exclusively by other banks (except to the extent State law requires directors qualifying shares) and if such bank is engaged exclusively in providing banking services for other banks and their officers, directors, or employees, but in no event shall the total amount of such stock held by the association exceed at any time 10 per centum of its capital stock and paid in and unimpaired surplus, and in no event shall the purchase of such stock result in the association’s acquiring more than 5 per centum of any class of voting securities of such bank”.
1981
Pub. L. 97–35 title XIII § 1342(a) · 95 Stat. 357
Inserted · 12 U.S.C. § 24
Pub. L. 97–35 inserted reference to the African Development Bank
Source evidence
Code amendment note
Par. Seventh. Pub. L. 97–35 inserted reference to the African Development Bank.
Enacted provision · exact public law section
(a) The seventh sentence of paragraph 7 of section 5136 of the Revised Statutes of the United States (12 U.S.C. 24) is amended by striking out “or” after “the Inter-American Development Bank” and inserting in lieu thereof a comma, and by inserting “or the African Development Bank” after “the Asian Development Bank”.
1982
Garn-St Germain Depository Institutions Act of 1982
Pub. L. 97–320 title IV § 404(b) · 96 Stat. 1469
Substituted · 12 U.S.C. § 24
Pub. L. 97–320 substituted “Provided further, That notwithstanding any other provision of this paragraph, the association may purchase for its own account shares of stock of a bank insured by the Federal Deposit Insurance Corporation or a holding company which owns or controls such an insured bank if the stock of such bank or company is owned exclusively (except to the extent directors’ qualifying shares are required by law) by depository institutions and such bank or company and all subsidiaries thereof are engaged exclusively in providing services for other depository institutions and their officers, directors, and employees, but in no event shall the total amount of such stock held by the association in any bank or holding company exceed at any time 10 per centum of its capital stock and paid in and unimpaired surplus and in no event shall the purchase of such stock result in an association’s acquiring more than 5 per centum of any class of voting securities of such bank or company” for “Provided further, That, notwithstanding any other provision of this paragraph, the association may purchase for its own account shares of stock of a bank insured by the Federal Deposit Insurance Corporation if the stock of such bank is owned exclusively by other banks (except to the extent State law requires directors qualifying shares) and if such bank is engaged exclusively in providing banking services for other banks and their officers, directors, or employees, but in no event shall the total amount of such stock held by the association exceed at any time 10 per centum of its capital stock and paid in and unimpaired surplus, and in no event shall the purchase of such stock result in the association’s acquiring more than 5 per centum of any class of voting securities of such bank”
Source evidence
Code amendment note
Par. Seventh. Pub. L. 97–320 substituted “Provided further, That notwithstanding any other provision of this paragraph, the association may purchase for its own account shares of stock of a bank insured by the Federal Deposit Insurance Corporation or a holding company which owns or controls such an insured bank if the stock of such bank or company is owned exclusively (except to the extent directors’ qualifying shares are required by law) by depository institutions and such bank or company and all subsidiaries thereof are engaged exclusively in providing services for other depository institutions and their officers, directors, and employees, but in no event shall the total amount of such stock held by the association in any bank or holding company exceed at any time 10 per centum of its capital stock and paid in and unimpaired surplus and in no event shall the purchase of such stock result in an association’s acquiring more than 5 per centum of any class of voting securities of such bank or company” for “Provided further, That, notwithstanding any other provision of this paragraph, the association may purchase for its own account shares of stock of a bank insured by the Federal Deposit Insurance Corporation if the stock of such bank is owned exclusively by other banks (except to the extent State law requires directors qualifying shares) and if such bank is engaged exclusively in providing banking services for other banks and their officers, directors, or employees, but in no event shall the total amount of such stock held by the association exceed at any time 10 per centum of its capital stock and paid in and unimpaired surplus, and in no event shall the purchase of such stock result in the association’s acquiring more than 5 per centum of any class of voting securities of such bank”.
Enacted provision · exact public law section
(b) The paragraph numbered “Seventh” of section 5136 of the Revised Statutes (12 U.S.C. 24) is amended by striking out “Provided further, That,” and all that follows through the end thereof and by inserting in lieu thereof the following: “Provided further, That notwithstanding any other provision of this paragraph, the association may purchase for its own account shares of stock of a bank insured by the Federal Deposit Insurance Corporation or a holding company which owns or controls such an insured bank if the stock of such bank or company is owned exclusively (except to the extent directors’ qualifying shares are required by law) by depository institutions and such bank or company and all subsidiaries thereof are engaged exclusively in providing services for other depository institutions and their officers, directors, and employees, but in no event shall the total amount of such stock held by the association in any bank or holding company exceed at any time 10 per centum of its capital stock and paid in and unimpaired surplus and in no event shall the purchase of such stock result in an association’s acquiring more than 5 per centum of any class of voting securities of such bank or company.”.
1983
Pub. L. 97–457 § 18 · 96 Stat. 2507
Substituted · 12 U.S.C. § 24
Pub. L. 97–457 substituted “10 per centum of the association’s” for “10 per centum of its” after “exceed at any time”
Source evidence
Code amendment note
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”.
Enacted provision · exact public law section
Sec. 18. The last proviso of section 5136 Seventh of the Revised Statutes (12 U.S.C. 24 Seventh), as amended by section 404(b) of Ante, p. 1511. Public Law 97–320, is amended by striking out “10 per centum of its” and inserting in lieu thereof “10 per centum of the association’s”.
1984
Secondary Mortgage Market Enhancement Act of 1984
Pub. L. 98–440 title I § 105(c) · 98 Stat. 1689
Inserted · 12 U.S.C. § 24
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
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
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.
Enacted provision · exact public law section
(c) Section 5136 of the Revised Statutes (12 U.S.C. 24) is amended by adding at the end of paragraph Seventh the following: “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)(4l))), 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.”.
1984
Pub. L. 98–473 title I § 101(1)(tI)(s101) · 98 Stat. 1837
Inserted · 12 U.S.C. § 24
Pub. L. 98–473 inserted reference to the Inter-American Investment Corporation
Source evidence
Code amendment note
Par. Seventh. Pub. L. 98–473 inserted reference to the Inter-American Investment Corporation.
Enacted provision · exact public law section
(1) On Outer Continental Shelf protraction diagram NJ 19–1; blocks 36, 37, 38, 42–44, 80–82, 86–88, 124, 125, 130–132, 168, 169, 174–176, 212, 213.
1987
Competitive Equality Amendments of 1987
Pub. L. 100–86 title I § 108 · 101 Stat. 552
Added · 12 U.S.C. § 24
Pub. L. 100–86 added par. Tenth
Source evidence
Code amendment note
Par. Tenth. Pub. L. 100–86 added par. Tenth.
Enacted provision · exact public law section
SEC. 108. LEASING AUTHORITY OF NATIONAL BANKS. Section 5136 of the Revised Statutes (12 U.S.C. 24) is amended by adding at the end thereof the following: “Tenth. To invest in tangible personal property, including, Real property. 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.”.
1988
United States-Canada Free-Trade Agreement Implementation Act of 1988
Pub. L. 100–449 title III § 308 · 102 Stat. 1851
Inserted · 12 U.S.C. § 24
Pub. L. 100–449 temporarily inserted provisions authorizing national banking associations to deal in, underwrite, and purchase Canadian government obligations for the association’s own account. See Effective and Termination Dates of 1988 Amendment note below
Source evidence
Code amendment note
Par. Seventh. Pub. L. 100–449 temporarily inserted provisions authorizing national banking associations to deal in, underwrite, and purchase Canadian government obligations for the association’s own account. See Effective and Termination Dates of 1988 Amendment note below.
Enacted provision · exact public law section
SEC. 308. AMENDMENT TO SECTION 6136 OF THE REVISED STATUTES. Paragraph “Seventh” of section 5136 of the Revised Statutes (12 U.S.C. 24 (Seventh)) is amended by adding at the end thereof the following: “A national banking association may deal in, underwrite, and Banks and banking. Securities. purchase for such association’s own account qualified Canadian government obligations to the same extent that such association may deal in, underwrite, and purchase for such association’s own account obligations of the United States or general obligations of any State or of any political subdivision thereof. For purposes of this paragraph— “(1) the term ‘qualified Canadian government obligations’ means any debt obligation which is backed by Canada, any Province of Canada, or any political subdivision of any such Province to a degree which is comparable to the liability of the United States, any State, or any political subdivision thereof for any obligation which is backed by the full faith and credit of the United States, such State, or such political subdivision, and such term includes any debt obligation of any agent of Canada or any such Province or any political subdivision of such Province if— “(A) the obligation of the agent is assumed in such agent’s capacity as agent for Canada or such Province or such political subdivision; and “(B) Canada, such Province, or such political subdivision on whose behalf such agent is acting with respect to such obligation is ultimately and unconditionally liable for such obligation; and “(2) the term ‘Province of Canada’ means a Province of Canada and includes the Yukon Territory and the Northwest Territories and their successors.”.
1990
European Bank for Reconstruction and Development Act
Pub. L. 101–513 title V § 562(c)(10)(B) · 104 Stat. 1979
1. Inserted · 12 U.S.C. § 24
  Pub. L. 101–513 inserted “the European Bank for Reconstruction and Development,” before “the Inter-American Development Bank,”
2. Substituted · 12 U.S.C. § 24
  Pub. L. 101–513 substituted “the African Development Bank, the Inter-American Investment Corporation, or the International Finance Corporation,” for “the African Development Bank or the Inter-American Investment Corporation,”
Source evidence
Code amendment note
Par. Seventh. Pub. L. 101–513 inserted “the European Bank for Reconstruction and Development,” before “the Inter-American Development Bank,” and substituted “the African Development Bank, the Inter-American Investment Corporation, or the International Finance Corporation,” for “the African Development Bank or the Inter-American Investment Corporation,”.
Enacted provision · exact public law section
(B) Exemption from limitations and restrictions on power of national banking associations to deal in and underwrite investment securities of the bank.— The 7th sentence of paragraph 7 of section 5136 of the Revised Statutes of the United States (12 U.S.C. 24) is amended by inserting “the European Bank for Reconstruction and Development,” before “the Inter-American Development Bank,”.
1992
Depository Institutions Disaster Relief Act of 1992
Pub. L. 102–485 § 6(a) · 106 Stat. 2771
Added · 12 U.S.C. § 24
Pub. L. 102–485 added par. Eleventh
Source evidence
Code amendment note
Par. Eleventh. Pub. L. 102–485 added par. Eleventh.
Enacted provision · exact public law section
(6) the National Credit Union Administration; and
1993
North American Free Trade Agreement Implementation Act
Pub. L. 103–182 title V § 541(h)(1) · 107 Stat. 2057
Inserted · 12 U.S.C. § 24
Pub. L. 103–182 inserted “the North American Development Bank,” after “Inter-American Development Bank,”
Source evidence
Code amendment note
Par. Seventh. Pub. L. 103–182 inserted “the North American Development Bank,” after “Inter-American Development Bank,”.
Enacted provision · exact public law section
(1) Exemptions from limitations and restrictions on the power of national banking associations to deal in and underwrite investment securities of the bank.— The seventh sentence of the seventh undesignated paragraph of section 5136 of the Revised Statutes of the United States (12 U.S.C. 24), is amended by inserting “the North American Development Bank,” after “Inter-American Development Bank,”.
1994
Riegle Community Development and Regulatory Improvement Act of 1994
Pub. L. 103–325 § 347(b) · 108 Stat. 2160
Substituted · 12 U.S.C. § 24
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”
Source evidence
Code amendment note
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”.
Enacted provision · exact public law section
(b) Amendment to the Reused Statutes.— Paragraph Seventh of section 5136 of the Revised Statutes (12 U.S.C. 24) is amended in the twelfth sentence, by striking “(15 U.S.C. 78c(a)(41))), subject to such regulations” and inserting “(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”.
1994
Riegle Community Development and Regulatory Improvement Act of 1994
Pub. L. 103–325 § 322(a)(1)(A) · 108 Stat. 2160
Inserted · 12 U.S.C. § 24
Pub. L. 103–325, § 322(a)(1)(A), in fifth proviso inserted “or depository institution holding companies (as defined in section 1813 of this title)” after “(except to the extent directors’ qualifying shares are required by law) by depository institutions”
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 103–325, § 322(a)(1)(A), in fifth proviso inserted “or depository institution holding companies (as defined in section 1813 of this title)” after “(except to the extent directors’ qualifying shares are required by law) by depository institutions”.
Enacted provision · exact public law section
(A) by inserting “or depository institution holding companies (as defined in section 3 of the Federal Deposit Insurance Act)” after “(except to the extent directors’ qualifying shares are required by law) by depository institutions”; and
1994
Riegle Community Development and Regulatory Improvement Act of 1994
Pub. L. 103–325 § 322(a)(1)(B) · 108 Stat. 2160
Substituted · 12 U.S.C. § 24
Pub. L. 103–325, § 322(a)(1)(B), which directed substitution in fifth proviso of “services to or for other depository institutions, their holding companies, and the officers, directors, and employees of such institutions and companies, and in providing correspondent banking services at the request of other depository institutions or their holding companies (also referred to as a ‘banker’s bank’)” for “services for other depository institutions and their officers, directors and employees”, was executed by making the substitution for “services for other depository institutions and their officers, directors, and employees” to reflect the probable intent of Congress
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 103–325, § 322(a)(1)(B), which directed substitution in fifth proviso of “services to or for other depository institutions, their holding companies, and the officers, directors, and employees of such institutions and companies, and in providing correspondent banking services at the request of other depository institutions or their holding companies (also referred to as a ‘banker’s bank’)” for “services for other depository institutions and their officers, directors and employees”, was executed by making the substitution for “services for other depository institutions and their officers, directors, and employees” to reflect the probable intent of Congress.
Enacted provision · exact public law section
(B) by striking “services for other depository institutions and their officers, directors and employees” and inserting the following: “services to or for other depository institutions, their holding companies, and the officers, directors, and employees of such institutions and companies, and in providing correspondent banking services at 7the request of other depository institutions or their holding companies (also referred to as a ‘banker’s bank’)”.
1994
Small Business Loan Securitization and Secondary Market Enhancement Act of 1994
Pub. L. 103–325 § 206(c) · 108 Stat. 2160
Substituted · 12 U.S.C. § 24
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 mortgage related securities” for “or (B) are mortgage related securities”
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
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 mortgage related securities” for “or (B) are mortgage related securities”.
Enacted provision · exact public law section
(c) National Banking Associations.— Section 5136 of the Revised Statutes (12 U.S.C. 24) is amended in the last sentence in the first full paragraph of paragraph Seventh, by striking “or (B) are mortgage related securities” and inserting the following: “(B) are small business related securities (as defined in section 3(a)(53) of the Securities Exchange Act of 1934); or (C) are mortgage related securities”.
1996
Amber Hagerman Child Protection Act of 1996
Pub. L. 104–208 § 101(c)(s710)(b) · 110 Stat. 3009
Inserted · 12 U.S.C. § 24
Pub. L. 104–208, § 101(c) [§ 710(b)], in seventh sentence, inserted “Bank for Economic Cooperation and Development in the Middle East and North Africa,” after “the Inter-American Development Bank”
Source evidence
Code amendment note
Par. Seventh. Pub. L. 104–208, § 101(c) [§ 710(b)], in seventh sentence, inserted “Bank for Economic Cooperation and Development in the Middle East and North Africa,” after “the Inter-American Development Bank”.
Enacted provision · exact public law section
Sec. 101. (a) For programs, projects or activities in the Departments of Commerce, Justice, and State, the Judiciary, and Related Agencies Appropriations Act, 1997, provided as follows, to be effective as if it had been enacted into law as the regular appropriations Act:
1999
Pub. L. 106–102 title I § 151 · 113 Stat. 1338
Inserted · 12 U.S.C. § 24
Pub. L. 106–102 inserted at end “In addition to the provisions in this paragraph for dealing in, underwriting, or purchasing securities, the limitations and restrictions contained in this paragraph as to dealing in, underwriting, and purchasing investment securities for the national bank’s own account shall not apply to obligations (including limited obligation bonds, revenue bonds, and obligations that satisfy the requirements of section 142(b)(1) of title 26) issued by or on behalf of any State or political subdivision of a State, including any municipal corporate instrumentality of 1 or more States, or any public agency or authority of any State or political subdivision of a State, if the national bank is well capitalized (as defined in section 1831o of this title).”
Source evidence
Code amendment note
Par. Seventh. Pub. L. 106–102 inserted at end “In addition to the provisions in this paragraph for dealing in, underwriting, or purchasing securities, the limitations and restrictions contained in this paragraph as to dealing in, underwriting, and purchasing investment securities for the national bank’s own account shall not apply to obligations (including limited obligation bonds, revenue bonds, and obligations that satisfy the requirements of section 142(b)(1) of title 26) issued by or on behalf of any State or political subdivision of a State, including any municipal corporate instrumentality of 1 or more States, or any public agency or authority of any State or political subdivision of a State, if the national bank is well capitalized (as defined in section 1831o of this title).”
Enacted provision · exact public law section
SEC. 151. AUTHORITY OF NATIONAL BANKS TO UNDERWRITE CERTAIN MUNICIPAL BONDS. The paragraph designated the Seventh of section 5136 of the Revised Statutes of the United States (12 U.S.C. 24(7)) is amended by adding at the end the following new sentence: “In addition to the provisions in this paragraph for dealing in, underwriting, or purchasing securities, the limitations and restrictions contained in this paragraph as to dealing in, underwriting, and purchasing investment securities for the national bank’s own account shall not apply to obligations (including limited obligation bonds, revenue bonds, and obligations that satisfy the requirements of section 142(b)(1) of the Internal Revenue Code of 1986) issued by or on behalf of any State or political subdivision of a State, including any municipal corporate instrumentality of 1 or more States, or any public agency or authority of any State or political subdivision of a State, if the national bank is well capitalized (as defined in section 38 of the Federal Deposit Insurance Act).”.
2006
Federal Deposit Insurance Reform Act of 2005
Pub. L. 109–171 title II § 2102(b) · 120 Stat. 4
Repealed · 12 U.S.C. § 24
Pub. L. 109–171 repealed Pub. L. 104–208, § 2704(d)(7). See 1996 Amendment note below
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 109–171 repealed Pub. L. 104–208, § 2704(d)(7). See 1996 Amendment note below.
Enacted provision · exact public law section
(b) Repeal of Outdated Merger Provision.— Section 2704 of the Deposit Insurance Funds Act of 1996 (12 U.S.C. 1821 note) is repealed.
Effective date note
Pub. L. 109–173, § 9(j), Feb. 15, 2006, 119 Stat. 3618, provided that: “This section [amending this section and sections 338a, 347b, 1431, 1441, 1441a, 1441b, 1464, 1467a, 1723i, 1735f–14, 1828a, 1833a, 1841, 1842, and 3341 of this title] and the amendments made by this section shall take effect on the day of the merger of the Bank Insurance Fund and the Savings Association Insurance Fund [Mar. 31, 2006, see 71 F.R. 20524] pursuant to the Federal Deposit Insurance Reform Act of 2005 [subtitle B (§§ 2101–2109) of title II of Pub. L. 109–171, see Short Title of 2006 Amendment note set out under section 1811 of this title].” Amendment by Pub. L. 109–171 effective no later than the first day of the first calendar quarter that begins after the end of the 90-day period beginning Feb. 8, 2006, see section 2102(c) of Pub. L. 109–171, set out as a Merger of BIF and SAIF note under section 1821 of this title.
1996
Federal Deposit Insurance Reform Act of 2005
Pub. L. 109–171 title II § 2102(b) · 120 Stat. 4
Changed · 12 U.S.C. § 24
Pub. L. 109–171. See Effective Date of 1996 Amendment note below and 2006 Amendment note above
Source evidence
Code amendment note
Par. Eleventh. Pub. L. 104—208, § 2704(d)(7), which directed the amendment of the fifth sentence by substituting “Deposit Insurance Fund” for “affected deposit insurance fund”, was repealed by Pub. L. 109–171. See Effective Date of 1996 Amendment note below and 2006 Amendment note above.
Enacted provision · exact public law section
(b) Repeal of Outdated Merger Provision.— Section 2704 of the Deposit Insurance Funds Act of 1996 (12 U.S.C. 1821 note) is repealed.
Effective date note
Pub. L. 109–173, § 9(j), Feb. 15, 2006, 119 Stat. 3618, provided that: “This section [amending this section and sections 338a, 347b, 1431, 1441, 1441a, 1441b, 1464, 1467a, 1723i, 1735f–14, 1828a, 1833a, 1841, 1842, and 3341 of this title] and the amendments made by this section shall take effect on the day of the merger of the Bank Insurance Fund and the Savings Association Insurance Fund [Mar. 31, 2006, see 71 F.R. 20524] pursuant to the Federal Deposit Insurance Reform Act of 2005 [subtitle B (§§ 2101–2109) of title II of Pub. L. 109–171, see Short Title of 2006 Amendment note set out under section 1811 of this title].” Amendment by Pub. L. 109–171 effective no later than the first day of the first calendar quarter that begins after the end of the 90-day period beginning Feb. 8, 2006, see section 2102(c) of Pub. L. 109–171, set out as a Merger of BIF and SAIF note under section 1821 of this title.
2006
Federal Deposit Insurance Reform Conforming Amendments Act of 2005
Pub. L. 109–173 § 9(a) · 119 Stat. 3601
Substituted · 12 U.S.C. § 24
Pub. L. 109–173, in fifth sentence, substituted “Deposit Insurance Fund” for “affected deposit insurance fund”
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 109–173, in fifth sentence, substituted “Deposit Insurance Fund” for “affected deposit insurance fund”.
Enacted provision · exact public law section
(a) Section 5136 of the Revised Statutes.— The paragraph designated the “Eleventh” of section 5136 of the Revised Statutes of the United States (12 U.S.C. 24) is amended in the 5th sentence, by striking “affected deposit insurance fund” and inserting “Deposit Insurance Fund”.
Effective date note
Pub. L. 109–173, § 9(j), Feb. 15, 2006, 119 Stat. 3618, provided that: “This section [amending this section and sections 338a, 347b, 1431, 1441, 1441a, 1441b, 1464, 1467a, 1723i, 1735f–14, 1828a, 1833a, 1841, 1842, and 3341 of this title] and the amendments made by this section shall take effect on the day of the merger of the Bank Insurance Fund and the Savings Association Insurance Fund [Mar. 31, 2006, see 71 F.R. 20524] pursuant to the Federal Deposit Insurance Reform Act of 2005 [subtitle B (§§ 2101–2109) of title II of Pub. L. 109–171, see Short Title of 2006 Amendment note set out under section 1811 of this title].” Amendment by Pub. L. 109–171 effective no later than the first day of the first calendar quarter that begins after the end of the 90-day period beginning Feb. 8, 2006, see section 2102(c) of Pub. L. 109–171, set out as a Merger of BIF and SAIF note under section 1821 of this title.
2006
Pub. L. 109–351 title III § 305(a) · 120 Stat. 1966
Amended · 12 U.S.C. § 24
Pub. L. 109–351 amended par. generally. Prior to amendment, par. read as follows: “Eleventh. To make investments designed primarily to promote the public welfare, including the welfare of low- and moderate-income communities or families (such as by providing housing, services, or jobs). A national banking association may make such investments directly or by purchasing interests in an entity primarily engaged in making such investments. An association shall not make any such investment if the investment would expose the association to unlimited liability. The Comptroller of the Currency shall limit an association’s investments in any 1 project and an association’s aggregate investments under this paragraph. An association’s aggregate investments under this paragraph shall not exceed an amount equal to the sum of 5 percent of the association’s capital stock actually paid in and unimpaired and 5 percent of the association’s unimpaired surplus fund, unless the Comptroller determines by order that the higher amount will pose no significant risk to the Deposit Insurance Fund, and the association is adequately capitalized. In no case shall an association’s aggregate investments under this paragraph exceed an amount equal to the sum of 10 percent of the association’s capital stock actually paid in and unimpaired and 10 percent of the association’s unimpaired surplus fund.”
Source evidence
Code amendment note
Par. Eleventh. Pub. L. 109–351 amended par. generally. Prior to amendment, par. read as follows: “Eleventh. To make investments designed primarily to promote the public welfare, including the welfare of low- and moderate-income communities or families (such as by providing housing, services, or jobs). A national banking association may make such investments directly or by purchasing interests in an entity primarily engaged in making such investments. An association shall not make any such investment if the investment would expose the association to unlimited liability. The Comptroller of the Currency shall limit an association’s investments in any 1 project and an association’s aggregate investments under this paragraph. An association’s aggregate investments under this paragraph shall not exceed an amount equal to the sum of 5 percent of the association’s capital stock actually paid in and unimpaired and 5 percent of the association’s unimpaired surplus fund, unless the Comptroller determines by order that the higher amount will pose no significant risk to the Deposit Insurance Fund, and the association is adequately capitalized. In no case shall an association’s aggregate investments under this paragraph exceed an amount equal to the sum of 10 percent of the association’s capital stock actually paid in and unimpaired and 10 percent of the association’s unimpaired surplus fund.”
Enacted provision · exact public law section
(a) National Banks.— The paragraph designated as the “Eleventh.” of section 5136 of the Revised Statutes of the United States (12 U.S.C. 24) is amended to read as follows: “Eleventh. To make investments directly or indirectly, each of which promotes the public welfare by benefiting primarily low- and moderate-income communities or families (such as by providing housing, services, 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 association’s investments in any 1 project and an association’s aggregate investments under this paragraph. An association’s aggregate investments under this paragraph shall not exceed an amount equal to the sum of 5 percent of the association’s capital stock actually paid in and unimpaired and 5 percent of the association’s unimpaired surplus fund, unless the Comptroller determines by order that the higher amount will pose no significant risk to the affected deposit insurance fund, and the association is adequately capitalized. In no case shall an association’s aggregate investments under this paragraph exceed an amount equal to the sum of 15 percent of the association’s capital stock actually paid in and unimpaired and 15 percent of the association’s unimpaired surplus fund. The foregoing standards and limitations apply to investments under this paragraph made by a national bank directly and by its subsidiaries.” .
2008
Mortgage Disclosure Improvement Act of 2008
Pub. L. 110–289 div. B title V § 2503(a) · 122 Stat. 2654
Substituted · 12 U.S.C. § 24
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
Source evidence
Code amendment note
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.
Enacted provision · exact public law section
(a) National Banks.— The first sentence of the paragraph designated as the “Eleventh” of section 5136 of the Revised Statutes of the United States (12 U.S.C. 24) is amended by striking “promotes the public welfare by benefitting primarily” and inserting “is designed primarily to promote the public welfare, including the welfare of”.
2026
Pub. L. 119–101 title II § 203(a) · 140 Stat. 868
Substituted · 12 U.S.C. § 24
Pub. L. 119–101 substituted “20” for “15’ in two places
Unresolved: Pub. L. 119–101 was not found in the local Statutes at Large index.
Source evidence
Code amendment note
Par. Eleventh. Pub. L. 119–101 substituted “20” for “15’ in two places.

48 of 58 references resolved to an enrolled provision · 1 partial · 9 unresolved

Notes

Amendment of Section

For termination of amendment by section 501(c) of Pub. L. 100–449, see Effective and Termination Dates of 1988 Amendment note below.

Editorial Notes

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. Seventh, is act July 17, 1916, ch. 245, 39 Stat. 360, which was classified to section 641 et seq. of this title prior to its repeal by Pub. L. 92–181, § 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. Seventh, is act June 27, 1934, ch. 847, 48 Stat. 1246. 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 classification of this Act to the Code, see section 1701 of this title and Tables.

Section 110 of the Housing Act of 1949 [42 U.S.C. 1460], referred to in par. Seventh, was omitted from the Code pursuant to section 5316 of Title 42, The Public Health and Welfare, which terminated authority to make grants or loans under title I of that Act [42 U.S.C. 1450 et seq.] after Jan. 1, 1975.

The United States Housing Act of 1937, referred to in par. Seventh, is act Sept. 1, 1937, ch. 896, as revised generally by Pub. L. 93–383, title II, Aug. 22, 1974, 88 Stat. 653, and is classified to chapter 8 (§ 1437 et seq.) of Title 42. For complete classification of this Act to the Code, see Short Title note set out under section 1437 of Title 42 and Tables.

The Housing and Urban Development Act of 1968, referred to in par. Seventh, is Pub. L. 90–448, Aug. 1, 1968, 82 Stat. 476. Title IX of the Housing and Urban Development Act is classified principally to chapter 49 (§ 3931 et seq.) of Title 42. For complete classification of this Act to the Code, see Short Title of 1968 Amendment note set out under section 1701 of this title and Tables.

Section 4 of the Securities Act of 1933, referred to in par. Seventh, was amended by section 201(b), (c) of Pub. L. 112–106, and the provisions which formerly appeared in section 4 of the Act now appear in section 4(a) of the Act.

Codification

Amendment by Pub. L. 98–473 is based on section 211(a) of title II of S. 2416, as introduced in the Senate on Mar. 13, 1984, which was enacted into permanent law by section 101(1) of Pub. L. 98–473.

R.S. § 5136 derived from act June 3, 1864, ch. 106, § 8, 13 Stat. 101, which was the National Bank Act. See section 38 of this title.

Amendments1927–2026 · 35 rounds

2026

Par. Eleventh. Pub. L. 119–101 substituted “20” for “15’ in two places.

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. generally. Prior to amendment, par. read as follows: “Eleventh. To make investments designed primarily to promote the public welfare, including the welfare of low- and moderate-income communities or families (such as by providing housing, services, or jobs). A national banking association may make such investments directly or by purchasing interests in an entity primarily engaged in making such investments. An association shall not make any such investment if the investment would expose the association to unlimited liability. The Comptroller of the Currency shall limit an association’s investments in any 1 project and an association’s aggregate investments under this paragraph. An association’s aggregate investments under this paragraph shall not exceed an amount equal to the sum of 5 percent of the association’s capital stock actually paid in and unimpaired and 5 percent of the association’s unimpaired surplus fund, unless the Comptroller determines by order that the higher amount will pose no significant risk to the Deposit Insurance Fund, and the association is adequately capitalized. In no case shall an association’s aggregate investments under this paragraph exceed an amount equal to the sum of 10 percent of the association’s capital stock actually paid in and unimpaired and 10 percent of the association’s unimpaired surplus fund.”

Pub. L. 109–173, in fifth sentence, substituted “Deposit 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 limitations and restrictions contained in this paragraph as to dealing in, underwriting, and purchasing investment securities for the national bank’s own account shall not apply to obligations (including limited obligation bonds, revenue bonds, and obligations that satisfy the requirements of section 142(b)(1) of title 26) issued by or on behalf of any State or political subdivision of a State, including any municipal corporate instrumentality of 1 or more States, or any public agency or authority of any State or political subdivision of a State, if the national bank is well capitalized (as defined in section 1831o of this title).”

1996

Par. Seventh. Pub. L. 104–208, § 101(c) [§ 710(b)], in seventh sentence, inserted “Bank for Economic Cooperation and Development in the Middle East and North Africa,” after “the Inter-American Development Bank”.

Par. Eleventh. Pub. L. 104—208, § 2704(d)(7), which directed the amendment of the fifth sentence by substituting “Deposit Insurance Fund” for “affected deposit 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 defined in section 1813 of this title)” after “(except to the extent directors’ qualifying shares are required by law) by depository institutions”.

Pub. L. 103–325, § 322(a)(1)(B), which directed substitution in fifth proviso of “services to or for other depository institutions, their holding companies, and the officers, directors, and employees of such institutions and companies, and in providing correspondent banking services at the request of other depository institutions or their holding companies (also referred to as a ‘banker’s bank’)” for “services for other depository institutions and their officers, directors and employees”, was executed by making the substitution for “services for other depository institutions and their officers, directors, and employees” to reflect the probable intent of Congress.

Pub. L. 103–325, § 206(c), substituted “(B) are small business related securities (as defined in section 3(a)(53) of the Securities Exchange Act of 1934); or (C) are mortgage related securities” for “or (B) are mortgage related securities”.

1993

Par. Seventh. Pub. L. 103–182 inserted “the North American Development Bank,” after “Inter-American Development Bank,”.

1992

Par. Eleventh. Pub. L. 102–485 added par. Eleventh.

1990

Par. Seventh. Pub. L. 101–513 inserted “the European Bank for Reconstruction and Development,” before “the Inter-American Development Bank,” and substituted “the African Development Bank, the Inter-American Investment Corporation, or the International Finance Corporation,” for “the African Development Bank or the Inter-American Investment Corporation,”.

1988

Par. Seventh. Pub. L. 100–449 temporarily inserted provisions authorizing national banking associations to deal in, underwrite, and purchase Canadian government obligations for the association’s own account. See Effective and Termination Dates of 1988 Amendment note below.

1987

Par. Tenth. Pub. L. 100–86 added par. Tenth.

1984

Par. Seventh. Pub. L. 98–473 inserted reference to the Inter-American Investment Corporation.

Pub. L. 98–440 inserted provision that the limitations and restrictions contained in this paragraph as to an association purchasing investment securities for its own account shall not apply to securities offered and sold pursuant to section 15 U.S.C. 77d(5), or that are mortgage related securities (as defined in 15 U.S.C. 78c(a)(41)), subject to such regulations as the Comptroller of the Currency may prescribe.

1983

Par. Seventh. Pub. L. 97–457 substituted “10 per centum of the association’s” for “10 per centum of its” after “exceed at any time”.

1982

Par. Seventh. Pub. L. 97–320 substituted “Provided further, That notwithstanding any other provision of this paragraph, the association may purchase for its own account shares of stock of a bank insured by the Federal Deposit Insurance Corporation or a holding company which owns or controls such an insured bank if the stock of such bank or company is owned exclusively (except to the extent directors’ qualifying shares are required by law) by depository institutions and such bank or company and all subsidiaries thereof are engaged exclusively in providing services for other depository institutions and their officers, directors, and employees, but in no event shall the total amount of such stock held by the association in any bank or holding company exceed at any time 10 per centum of its capital stock and paid in and unimpaired surplus and in no event shall the purchase of such stock result in an association’s acquiring more than 5 per centum of any class of voting securities of such bank or company” for “Provided further, That, notwithstanding any other provision of this paragraph, the association may purchase for its own account shares of stock of a bank insured by the Federal Deposit Insurance Corporation if the stock of such bank is owned exclusively by other banks (except to the extent State law requires directors qualifying shares) and if such bank is engaged exclusively in providing banking services for other banks and their officers, directors, or employees, but in no event shall the total amount of such stock held by the association exceed at any time 10 per centum of its capital stock and paid in and unimpaired surplus, and in no event shall the purchase of such stock result in the association’s acquiring more than 5 per centum of any class of voting securities of such bank”.

1981

Par. Seventh. Pub. L. 97–35 inserted reference to the African Development Bank.

1980

Par. Seventh. Pub. L. 96–221 inserted proviso relating to purchase of stock in bankers’ banks.

1974

Par. Seventh. Pub. L. 93–383 substituted “section 6(g) of the United States Housing Act of 1937” for references to section 1421a(b) of title 42 wherever appearing, struck out “either” before “(1)”, “(which obligations shall have a maturity of not more than eighteen months)” in cl. (1) and “or” before “(2)”, added cl. (3), and inserted reference to mortgages, obligations, or other securities sold by the Federal Home Loan Mortgage Corporation pursuant to section 1454 or 1455 of this title.

1973

Par. Seventh. Pub. L. 93–234 authorized investments by national banks in agricultural credit corporations.

Pub. L. 93–224 inserted “or obligations of the Federal Financing Bank” after “or obligations, participations, or other instruments of or issued by the Federal National Mortgage Association or the Government National Mortgage Association”.

Pub. L. 93–100 inserted provision that the association may purchase shares of stock issued by state housing corporations incorporated in the state in which the association is located and make investments in loans and commitments for loans to such corporations with certain limitations.

1972

Par. Seventh. Pub. L. 92–500 inserted “or obligations of the Environmental Financing Authority” after “Government National Mortgage Association”.

Pub. L. 92–349 inserted provisions that limitations and restrictions contained in this section as to dealing in and underwriting investment securities shall not apply to obligations of the Washington Metropolitan Area Transit Authority which are guaranteed by the Secretary of Transportation under section 9 of the National Capital Transportation Act of 1969.

Pub. L. 92–318 included obligations or other instruments or securities of the Student Loan Marketing Association.

1970

Par. Seventh. Pub. L. 91–375 made limitations and restrictions contained in this section as to dealing in and underwriting investment securities inapplicable to bonds, notes and other obligations issued by the United States Postal Service.

1968

Par. Seventh. Pub. L. 90–448, § 807(j), inserted “or the Government National Mortgage Association” after “Federal National Mortgage Association”.

Pub. L. 90–448, § 911, authorized the association to purchase for its own account shares of stock issued by a corporation authorized to be created pursuant to sections 3931–3940 of title 42, and to make investments in a partnership, limited partnership, or joint venture formed pursuant to section 3937(a) or 3937(c) of title 42.

Pub. L. 90–448, § 1705(h), included obligations issued by any State or political subdivision or any agency of a State or political subdivision for housing, university, or dormitory purposes.

Par. Ninth. Pub. L. 90–448, § 804(c), added par. Ninth.

1967

Par. Seventh. Pub. L. 90–19 substituted “Secretary of Housing and Urban Development (hereafter in this sentence referred to as the ‘Secretary’)” for “Federal Housing Administrator”; and “Secretary” for “Housing and Home Finance Administrator” after “local public agency and the”, for “Administrator” in two instances just before “agrees to lend”, and for “Public Housing Administration” wherever appearing in cls. (1) and (2), respectively.

1966

Par. Seventh. Pub. L. 89–754 made limitations and restrictions for dealing, underwriting, and purchasing for its own account of investment securities inapplicable to obligations which are insured by Secretary of Housing and Urban Development under provisions relating to mortgage insurance for group practice facilities.

Pub. L. 89–369 inserted provisions that limitations and restrictions contained in this section as to dealing in and underwriting investment securities shall not apply to obligations issued by the Asian Development Bank.

1964

Par. Seventh. Pub. L. 88–560 substituted “or obligations, participations, or other instruments of or issued by the Federal National Mortgage Association” for “or obligations of the Federal National Mortgage Association”.

1959

Par. Seventh. Pub. L. 86–372 substituted “monies in an aggregate amount which (together with any other monies irrevocably committed to the payment of interest on such obligations) will suffice to pay, when due, the interest on and all installments (including the final installment) of the principal of such obligations, which monies under the terms of said agreement are required to be used for such payments” for “prior to the maturity of such obligations (which obligations shall have a maturity of not more than eighteen months), monies in an amount which (together with any other monies irrevocably committed to the payment of interest on such obligations) will suffice to pay the principal of such obligations with interest to maturity thereon, which monies under the terms of said agreement are required to be used for the purpose of paying the principal of and the interest on such obligations at their maturity” after “local public agency,”.

Pub. L. 86–278 substituted “any” for “either” before “of said organizations” in last sentence.

Pub. L. 86–230 struck out “or the Home Owners’ Loan Corporation” after “Federal Home Loan Banks”.

Pub. L. 86–147 inserted provisions that limitations and restrictions contained in this section as to dealing in and underwriting investment securities shall not apply to obligations issued by the Inter-American Development Bank.

Pub. L. 86–137 inserted provisions that limitations and restrictions contained in this section as to dealing in and underwriting investment securities shall not apply to bonds, notes and other obligations issued by the Tennessee Valley Authority.

1959

Pub. L. 86–278 substituted “any” for “either” before “of said organizations” in last sentence.

Pub. L. 86–230 struck out “or the Home Owners’ Loan Corporation” after “Federal Home Loan Banks”.

1956

Par. Seventh. Act July 26, 1956, removed restriction which prohibited a national bank from investing in obligations of the thirteen banks for cooperatives an amount exceeding 10 percent of its capital stock actually paid in and unimpaired and 10 percent of its unimpaired surplus.

1954

Par. Seventh. Act Aug. 23, 1954, substituted “thirteen banks for cooperatives organized under the Farm Credit Act of 1933, or any of them” for “Central Bank for Cooperatives” in last sentence.

Act Aug. 2, 1954, substituted “or obligations of the Federal National Mortgage Association” for “or obligations of national mortgage associations” in sixth sentence.

1952

Par. Seventh. Act Apr. 9, 1952, enabled national banks and State member banks of the Federal Reserve System to receive compensation in the distribution of debentures issued by the Central Bank for Cooperation.

1949

Par. Seventh. Act July 15, 1949, inserted, in next to last sentence, “or such obligations of any local public agency (as defined in section 110(h) of the Housing Act of 1949) as are secured by an agreement between the local public agency and the Housing and Home Finance Administrator in which the local public agency agrees to borrow from said Administrator, and said Administrator agrees to lend to said local public agency, prior to the maturity of such obligations (which obligations shall have a maturity of not more than eighteen months), monies in an amount which (together with any other monies irrevocably committed to the payment of interest on such obligations) will suffice to pay the principal of such obligations with interest to maturity thereon, which monies under the terms of said agreement are required to be used for the purpose of paying the principal of and the interest on such obligations at their maturity, or such obligations of a public housing agency (as defined in the United States Housing Act of 1937, as amended) as are secured either (1) by an agreement between the public housing agency and the Public Housing Administration in which the public housing agency agrees to borrow from the Public Housing Administration, and the Public Housing Administration agrees to lend to the public housing agency, prior to the maturity of such obligations (which obligations shall have a maturity of not more than eighteen months), monies in an amount which (together with any other monies irrevocably committed to the payment of interest on such obligations) will suffice to pay the principal of such obligations with interest to maturity thereon, which monies under the terms of said agreement are required to be used for the purpose of paying the principal of and the interest on such obligations at their maturity, or (2) by a pledge of annual contributions under an annual contributions contract between such public housing agency and the Public Housing Administration if such contract shall contain the covenant by the Public Housing Administration which is authorized by subsection (b) of section 22 of the United States Housing Act of 1937, as amended, and if the maximum sum and the maximum period specified in such contract pursuant to said subsection 22(b) shall not be less than the annual amount and the period for payment, which are requisite to provide for the payment when due of all installments of principal and interest on such obligations”.

Act June 29, 1949, inserted last sentence to permit national banks and State member banks of the Federal Reserve System to deal in and underwrite obligations issued by the International Bank subject to certain limitations.

1940

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

1938

Par. Seventh. Act Feb. 3, 1938, inserted “or obligations of national mortgage associations” in last sentence.

1935

Par. Seventh. Act Aug. 23, 1935, amended second, fourth, and last sentences.

1933

Act June 16, 1933, among other changes, struck out closing paragraph prohibiting transaction of any business by association prior to authorization by Comptroller, except that necessarily preliminary to organization.

1927

Act Feb. 25, 1927, struck out definite period of succession in par. Second, and inserted provisos in par. Seventh.

Statutory Notes and Related Subsidiaries

Effective Date of 2006 Amendment

Pub. L. 109–173, § 9(j), Feb. 15, 2006, 119 Stat. 3618, provided that: “This section [amending this section and sections 338a, 347b, 1431, 1441, 1441a, 1441b, 1464, 1467a, 1723i, 1735f–14, 1828a, 1833a, 1841, 1842, and 3341 of this title] and the amendments made by this section shall take effect on the day of the merger of the Bank Insurance Fund and the Savings Association Insurance Fund [Mar. 31, 2006, see 71 F.R. 20524] pursuant to the Federal Deposit Insurance Reform Act of 2005 [subtitle B (§§ 2101–2109) of title II of Pub. L. 109–171, see Short Title of 2006 Amendment note set out under section 1811 of this title].”

Amendment by Pub. L. 109–171 effective no later than the first day of the first calendar quarter that begins after the end of the 90-day period beginning Feb. 8, 2006, see section 2102(c) of Pub. L. 109–171, set out as a Merger of BIF and SAIF note under section 1821 of this title.

Effective Date of 1999 Amendment

Pub. L. 106–102, title I, § 161, Nov. 12, 1999, 113 Stat. 1384, provided that: “This title [enacting sections 24a, 1820a, 1828a, 1828b, 1831v, 1831w, and 1848a of this title and section 6701 of Title 15, Commerce and Trade, amending this section, sections 25a, 335, 371c, 1821, 1835a, 1841 to 1844, 1849, 1850, 1864, 1971, 2903, 3101, 3106, and 3107 of this title, and section 18a of Title 15, repealing sections 78 and 377 of this title, and enacting provisions set out as notes under sections 252, 1843, and 4801 of this title and section 41 of Title 15] (other than section 104 [enacting section 6701 of Title 15]) and the amendments made by this title shall take effect 120 days after the date of the enactment of this Act [Nov. 12, 1999].”

Effective Date of 1996 Amendment

Amendment by section 2704(d)(7) of Pub. L. 104–208 effective Jan. 1, 1999, if no insured depository institution is a savings association on that date, see section 2704(c) of Pub. L. 104–208, formerly set out as a note under section 1821 of this title.

Effective Date of 1994 Amendment

Pub. L. 103–325, title III, § 347(d), Sept. 23, 1994, 108 Stat. 2241, provided that: “The amendments made by this section [amending this section and section 78c of Title 15, Commerce and Trade] shall become effective upon the date of promulgation of final regulations under subsection (c) [set out below].”

Effective and Termination Dates of 1988 Amendment

Amendment by Pub. L. 100–449 effective on date United States-Canada Free-Trade Agreement enters into force (Jan. 1, 1989), and to cease to have effect on date Agreement ceases to be in force, see section 501(a), (c) of Pub. L. 100–449, set out in a note under section 2112 of Title 19, Customs Duties.

Effective Date of 1981 Amendment

Amendment by Pub. L. 97–35 effective Aug. 13, 1981, see section 1372 of Pub. L. 97–35, set out as an Effective Date note under section 290i of Title 22, Foreign Relations and Intercourse.

Effective Date of 1973 Amendments

Amendment by Pub. L. 93–224 effective Dec. 29, 1973, see section 20 of Pub. L. 93–224, set out as an Effective Date note under section 2281 of this title.

Amendment by Pub. L. 93–100 effective Aug. 16, 1973, see section 8 of Pub. L. 93–100, set out as an Effective Date note under section 1469 of this title.

Effective Date of 1970 Amendment

For effective date of amendment by Pub. L. 91–375, see section 15(a) of Pub. L. 91–375, set out as an Effective Date note preceding section 101 of Title 39, Postal Service.

Effective Date of 1968 Amendment

For effective date of amendment by title VIII of Pub. L. 90–448, see section 808 of Pub. L. 90–448, set out as an Effective Date note under section 1716b of this title.

Effective Date of 1956 Amendment

Amendment by act July 26, 1956, effective Jan. 1, 1957, see act July 26, 1956, ch. 741, title II, § 202(a), 70 Stat. 667.

Effective Date of 1933 Amendment

Act June 16, 1933, ch. 89, § 16, 48 Stat. 184, provided that restrictions of this section as to dealing in investment securities shall take effect one year after June 16, 1933.

Regulations

Pub. L. 103–325, title III, § 347(c), Sept. 23, 1994, 108 Stat. 2241, provided that: “Not later than 1 year after the date of enactment of this Act [Sept. 23, 1994], the Comptroller of the Currency shall promulgate final regulations, in accordance with the thirteenth sentence of Paragraph Seventh of section 5136 of the Revised Statutes [this section] (as amended by subsection (b)), to carry out the amendments made by this section [amending this section and section 78c of Title 15, Commerce and Trade].” [Final regulations implementing these amendments were published in the Federal Register on Dec. 2, 1996 [61 F.R. 63972], effective Dec. 31, 1996.]

Reports on Public Welfare Investments

Pub. L. 119–101, title II, § 203(c), July 11, 2026, 140 Stat. 868, provided that:

“Not later than 2 years after the date of enactment of this section [July 11, 2026], and every 2 years thereafter, the Comptroller of the Currency and the Board of Governors of the Federal Reserve System shall each submit to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate, a report, after consulting with the other agency in the development of such report, about public welfare investments that were made by associations under section 5136 of the Revised Statutes of the United States (12 U.S.C. 24) and State member banks under section 9(23) of the Federal Reserve Act (12 U.S.C. 338a) in the 2 previous calendar years, that—
“(1)
identifies the number of such investments, broken down by—
“(A)
purpose;
#
“(B)
type;
#
“(C)
amount of assets of the association or State member bank that made the investment, using not fewer than 4 categories to describe the amount of assets of the associations and banks; and
#
“(D)
State or other location;
#
#
“(2)
identifies the dollar amounts of such investments, broken down by—
“(A)
purpose;
#
“(B)
type;
#
“(C)
amount of assets of the association or State member bank that made the investment, using not fewer than 4 categories to describe the amount of assets of the associations and banks; and
#
“(D)
State or other location; and
#
#
“(3)
for each type of public welfare investment identified under paragraphs (1) and (2), a description of the substantive and procedural requirements that apply to each type of investment made under—
“(A)
in the case of a report by the Comptroller of the Currency, section 5136 of the Revised Statutes of the United States (12 U.S.C. 24); or
#
“(B)
in the case of a report by the Board of Governors, section 9(23) of the Federal Reserve Act (12 U.S.C. 338a).”
#
#

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.

Executive Documents

Exception as to Transfer of Functions

Functions vested by any provision of law in Comptroller of the Currency, referred to in this section, not included in transfer of functions to Secretary of the Treasury, see note set out under section 1 of this title.

Credits

1922–2026 · 50 acts

R.S. § 5136
1922July 1, 1922, ch. 257, § 1, 42 Stat. 767
1927Feb. 25, 1927, ch. 191, § 2, 44 Stat. 1226
1933June 16, 1933, ch. 89, § 16, 48 Stat. 184
1935Aug. 23, 1935, ch. 614, title III, § 308, 49 Stat. 709
1938Feb. 3, 1938, ch. 13, § 13, 52 Stat. 26
1940June 11, 1940, ch. 301, 54 Stat. 261
1949June 29, 1949, ch. 276, § 1, 63 Stat. 298
1949July 15, 1949, ch. 338, title VI, § 602(a), 63 Stat. 439
1952Apr. 9, 1952, ch. 169, 66 Stat. 49
1954Aug. 2, 1954, ch. 649, title II, § 203, 68 Stat. 622
1954Aug. 23, 1954, ch. 834, § 2, 68 Stat. 771
1956July 26, 1956, ch. 741, title II, § 201(c), 70 Stat. 667
1959Pub. L. 86–137, § 2, Aug. 6, 1959, 73 Stat. 285
1959Pub. L. 86–147, § 10, Aug. 7, 1959, 73 Stat. 301
1959Pub. L. 86–230, § 1(a), Sept. 8, 1959, 73 Stat. 457
1959Pub. L. 86–278, Sept. 16, 1959, 73 Stat. 563
1959Pub. L. 86–372, title IV, § 420, Sept. 23, 1959, 73 Stat. 679
1964Pub. L. 88–560, title VII, § 701(c), Sept. 2, 1964, 78 Stat. 800
1966Pub. L. 89–369, § 10, Mar. 16, 1966, 80 Stat. 72
1966Pub. L. 89–754, title V, § 504(a)(1), Nov. 3, 1966, 80 Stat. 1277
1967Pub. L. 90–19, § 27(a), May 25, 1967, 81 Stat. 28
1968Pub. 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
1970Pub. L. 91–375, § 6(d), Aug. 12, 1970, 84 Stat. 776
1972Pub. L. 92–318, title I, § 133(c)(1), June 23, 1972, 86 Stat. 269
1969Pub. L. 91–143, § 12(b), Dec. 9, 1969, as added Pub. L. 92–349, title I, § 101, July 13, 1972, 86 Stat. 466
1972Pub. L. 92–500, § 12(n), Oct. 18, 1972, 86 Stat. 902
1973Pub. L. 93–100, § 5(c), Aug. 16, 1973, 87 Stat. 344
1973Pub. L. 93–224, § 14, Dec. 29, 1973, 87 Stat. 941
1973Pub. L. 93–234, title II, § 207, Dec. 31, 1973, 87 Stat. 984
1974Pub. L. 93–383, title II, § 206, title VIII, § 805(c)(1), Aug. 22, 1974, 88 Stat. 668, 726
1980Pub. L. 96–221, title VII, § 711, Mar. 31, 1980, 94 Stat. 189
1981Pub. L. 97–35, title XIII, § 1342(a), Aug. 13, 1981, 95 Stat. 743
1982Pub. L. 97–320, title IV, § 404(b), Oct. 15, 1982, 96 Stat. 1511
1983Pub. L. 97–457, § 18, Jan. 12, 1983, 96 Stat. 2509
1984Pub. L. 98–440, title I, § 105(c), Oct. 3, 1984, 98 Stat. 1691
1984Pub. L. 98–473, title I, § 101(1) [title I, § 101], Oct. 12, 1984, 98 Stat. 1884, 1885
1987Pub. L. 100–86, title I, § 108, Aug. 10, 1987, 101 Stat. 579
1988Pub. L. 100–449, title III, § 308, Sept. 28, 1988, 102 Stat. 1877
1990Pub. L. 101–513, title V, § 562(c)(10)(B), (e)(1)(B), Nov. 5, 1990, 104 Stat. 2036, 2037
1992Pub. L. 102–485, § 6(a), Oct. 23, 1992, 106 Stat. 2774
1993Pub. L. 103–182, title V, § 541(h)(1), Dec. 8, 1993, 107 Stat. 2167
1994Pub. L. 103–325, title II, § 206(c), title III, §§ 322(a)(1), 347(b), Sept. 23, 1994, 108 Stat. 2199, 2226, 2241
1996Pub. 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
1999Pub. L. 106–102, title I, § 151, Nov. 12, 1999, 113 Stat. 1384
2006Pub. L. 109–171, title II, § 2102(b), Feb. 8, 2006, 120 Stat. 9
2006Pub. L. 109–173, § 9(a), Feb. 15, 2006, 119 Stat. 3616
2006Pub. L. 109–351, title III, § 305(a), Oct. 13, 2006, 120 Stat. 1970
2008Pub. L. 110–289, div. B, title V, § 2503(a), July 30, 2008, 122 Stat. 2857
2026Pub. L. 119–101, title II, § 203(a), July 11, 2026, 140 Stat. 868.

Show as published

(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; Pub. L. 119–101, title II, § 203(a), July 11, 2026, 140 Stat. 868.)