§ 375a. Loans to executive officers of banks

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.

1. 1913

   Gold Reserve Act of 1934

   Pub. L. 73–6 § 22(g) · 48 Stat. 337

   Enacted · 12 U.S.C. § 375a

   Dec. 23, 1913, ch. 6, § 22(g), as added June 16, 1933, ch. 89, § 12, 48 Stat. 182

   Source evidence

   Code source credit
   Dec. 23, 1913, ch. 6, § 22(g), as added June 16, 1933, ch. 89, § 12, 48 Stat. 182

2. 1938

   Public Law not identified

   Substituted · 12 U.S.C. § 375a(1)

   Par. (1). Act Apr. 25, 1938, substituted “six” for “five” in first sentence

   Unresolved: No Public Law or Statutes at Large citation in the Code source.

   Source evidence

   Code amendment note
   Par. (1). Act Apr. 25, 1938, substituted “six” for “five” in first sentence.

3. 1967

   Pub. L. 90–44 § 1 · 81 Stat. 108

   Amended · 12 U.S.C. § 375a(1)

   Pub. L. 90–44 rewrote in first sentence of provisions designated as par. (1) the prohibition of former first sentence against any executive officer borrowing or otherwise becoming indebted to a member bank of which he is an officer and against any member bank making any loan or extending credit in any other manner to any of its own executive officers, authorized member banks to extend credit to such executive officers and to report such extensions to the board of directors, and provided in subpars. (A) to (D) conditions for such extension of credit

   Source evidence

   Code amendment note
   Par. (1). Pub. L. 90–44 rewrote in first sentence of provisions designated as par. (1) the prohibition of former first sentence against any executive officer borrowing or otherwise becoming indebted to a member bank of which he is an officer and against any member bank making any loan or extending credit in any other manner to any of its own executive officers, authorized member banks to extend credit to such executive officers and to report such extensions to the board of directors, and provided in subpars. (A) to (D) conditions for such extension of credit.

   Enacted provision · exact public law section
   Section 1. Section 22(g) of the Federal Reserve Act (12 U.S.C. 375a) is amended to read: “(g) (1) Except as authorized under this subsection, no member Loans to officers. 49 Stat. 716; 53 Stat. 842. bank may extend credit in any manner to any of its own executive officers. No executive officer of any member bank may become indebted to that member bank except by means of an extension of credit which the bank is authorized to make under this subsection. Any extension of Conditions. credit under this subsection shall be promptly reported to the board of directors of the bank, and may be made only if— “(A) the bank would be authorized to make it to borrowers other than its officers; “(B) it is on terms not more favorable than those afforded other borrowers; “(C) the officer has submitted a detailed current financial statement; and “(D) it is on condition that it shall become due and payable on demand of the bank at any time when the officer is indebted to any other bank or banks on account of extensions of credit of any one of the three categories respectively referred to in paragraphs (2), (3), and (4) in an aggregate amount greater than the amount of credit of the same category that could be extended to him by the bank of which he is an officer. “(2) With the specific prior approval of its board of directors, a Mortgage loans. member bank may make a loan not exceeding $30,000 to any executive officer of the bank if, at the time the loan is made— “(A) it is secured by a first lien on a dwelling which is expected, after the making of the loan, to be owned by the officer and used by him as his residence, and “(B) no other loan by the bank to the officer under authority of this paragraph is outstanding. “(3) A member bank may make extensions of credit to any executive Educational loans. officer of the bank, not exceeding the aggregate amount of $10,000 outstanding at any one time, to finance the education of the children of the officer. “(4) A member bank may make extensions of credit not otherwise specifically authorized under this subsection to any executive officer of the bank, not exceeding the aggregate amount of $5,000 outstanding at any one time. “(5) Except to the extent permitted under paragraph (4), a member bank may not extend credit to a partnership in which one or more of its executive officers are partners having either individually or together a majority interest. For the purposes of paragraph (4), the full amount of any credit so extended shall be considered to have been extended to each officer of the bank who is a member of the partnership. “(6) Whenever an executive officer of a member bank becomes indebted to any bank or banks (other than the one of which he is an officer) on account of extensions of credit of any one of the three categories respectively referred to in paragraphs (2), (3), and (4) in an aggregate amount greater than the aggregate amount of credit of the same category that could lawfully be extended to him by the bank, he shall make a written report to the board of directors of the bank, stating the date and amount of each such extension of credit, the security therefor, and the purposes for which the proceeds have been or are to be used. “(7) This subsection does not prohibit any executive officer of a member bank from endorsing or guaranteeing for the protection of the bank any loan or other asset previously acquired by the bank in good faith or from incurring any indebtedness to the bank for the purpose of protecting the bank against loss or giving financial assistance to it, “(8) Each day that any extension of credit in violation of this subsection exists is a continuation of the violation for the purposes of section 8 of the Federal Deposit Insurance Act. “(9) Each member bank shall include with (but not as part of) each report of condition and copy thereof filed under section 7(a)(3) of the Federal Deposit Insurance Act a report of all loans under authority of this subsection made by the bank since its previous report of condition. “(10) The Board of Governors of the Federal Reserve System may prescribe such rules and regulations, including definitions of terms, as it deems necessary to effectuate the purposes and to prevent evasions of this subsection.”

4. 1967

   Pub. L. 90–44 § 1 · 81 Stat. 108

   1. Inserted · 12 U.S.C. § 375a(2); 12 U.S.C. § 375a(3)

      Pub. L. 90–44 inserted provisions

   2. Amended · 12 U.S.C. § 375a(2); 12 U.S.C. § 375a(3)

      Pub. L. 90–44 designated as pars. (2) and (3), for mortgage loans and educational loans, respectively

   Source evidence

   Code amendment note
   Pars. (2), (3). Pub. L. 90–44 inserted provisions, designated as pars. (2) and (3), for mortgage loans and educational loans, respectively.

   Enacted provision · exact public law section
   Section 1. Section 22(g) of the Federal Reserve Act (12 U.S.C. 375a) is amended to read: “(g) (1) Except as authorized under this subsection, no member Loans to officers. 49 Stat. 716; 53 Stat. 842. bank may extend credit in any manner to any of its own executive officers. No executive officer of any member bank may become indebted to that member bank except by means of an extension of credit which the bank is authorized to make under this subsection. Any extension of Conditions. credit under this subsection shall be promptly reported to the board of directors of the bank, and may be made only if— “(A) the bank would be authorized to make it to borrowers other than its officers; “(B) it is on terms not more favorable than those afforded other borrowers; “(C) the officer has submitted a detailed current financial statement; and “(D) it is on condition that it shall become due and payable on demand of the bank at any time when the officer is indebted to any other bank or banks on account of extensions of credit of any one of the three categories respectively referred to in paragraphs (2), (3), and (4) in an aggregate amount greater than the amount of credit of the same category that could be extended to him by the bank of which he is an officer. “(2) With the specific prior approval of its board of directors, a Mortgage loans. member bank may make a loan not exceeding $30,000 to any executive officer of the bank if, at the time the loan is made— “(A) it is secured by a first lien on a dwelling which is expected, after the making of the loan, to be owned by the officer and used by him as his residence, and “(B) no other loan by the bank to the officer under authority of this paragraph is outstanding. “(3) A member bank may make extensions of credit to any executive Educational loans. officer of the bank, not exceeding the aggregate amount of $10,000 outstanding at any one time, to finance the education of the children of the officer. “(4) A member bank may make extensions of credit not otherwise specifically authorized under this subsection to any executive officer of the bank, not exceeding the aggregate amount of $5,000 outstanding at any one time. “(5) Except to the extent permitted under paragraph (4), a member bank may not extend credit to a partnership in which one or more of its executive officers are partners having either individually or together a majority interest. For the purposes of paragraph (4), the full amount of any credit so extended shall be considered to have been extended to each officer of the bank who is a member of the partnership. “(6) Whenever an executive officer of a member bank becomes indebted to any bank or banks (other than the one of which he is an officer) on account of extensions of credit of any one of the three categories respectively referred to in paragraphs (2), (3), and (4) in an aggregate amount greater than the aggregate amount of credit of the same category that could lawfully be extended to him by the bank, he shall make a written report to the board of directors of the bank, stating the date and amount of each such extension of credit, the security therefor, and the purposes for which the proceeds have been or are to be used. “(7) This subsection does not prohibit any executive officer of a member bank from endorsing or guaranteeing for the protection of the bank any loan or other asset previously acquired by the bank in good faith or from incurring any indebtedness to the bank for the purpose of protecting the bank against loss or giving financial assistance to it, “(8) Each day that any extension of credit in violation of this subsection exists is a continuation of the violation for the purposes of section 8 of the Federal Deposit Insurance Act. “(9) Each member bank shall include with (but not as part of) each report of condition and copy thereof filed under section 7(a)(3) of the Federal Deposit Insurance Act a report of all loans under authority of this subsection made by the bank since its previous report of condition. “(10) The Board of Governors of the Federal Reserve System may prescribe such rules and regulations, including definitions of terms, as it deems necessary to effectuate the purposes and to prevent evasions of this subsection.”

5. 1967

   Pub. L. 90–44 § 1 · 81 Stat. 108

   1. Amended · 12 U.S.C. § 375a(4)

      Pub. L. 90–44 incorporated proviso of first sentence in provisions designated as par. (4), increased amount of available credit from $2,500 to $5,000

   2. Struck · 12 U.S.C. § 375a(4)

      Pub. L. 90–44 incorporated proviso of first sentence in provisions struck out requirement of prior approval of credit by majority of entire board of directors

   Source evidence

   Code amendment note
   Par. (4). Pub. L. 90–44 incorporated proviso of first sentence in provisions designated as par. (4), increased amount of available credit from $2,500 to $5,000, and struck out requirement of prior approval of credit by majority of entire board of directors.

   Enacted provision · exact public law section
   Section 1. Section 22(g) of the Federal Reserve Act (12 U.S.C. 375a) is amended to read: “(g) (1) Except as authorized under this subsection, no member Loans to officers. 49 Stat. 716; 53 Stat. 842. bank may extend credit in any manner to any of its own executive officers. No executive officer of any member bank may become indebted to that member bank except by means of an extension of credit which the bank is authorized to make under this subsection. Any extension of Conditions. credit under this subsection shall be promptly reported to the board of directors of the bank, and may be made only if— “(A) the bank would be authorized to make it to borrowers other than its officers; “(B) it is on terms not more favorable than those afforded other borrowers; “(C) the officer has submitted a detailed current financial statement; and “(D) it is on condition that it shall become due and payable on demand of the bank at any time when the officer is indebted to any other bank or banks on account of extensions of credit of any one of the three categories respectively referred to in paragraphs (2), (3), and (4) in an aggregate amount greater than the amount of credit of the same category that could be extended to him by the bank of which he is an officer. “(2) With the specific prior approval of its board of directors, a Mortgage loans. member bank may make a loan not exceeding $30,000 to any executive officer of the bank if, at the time the loan is made— “(A) it is secured by a first lien on a dwelling which is expected, after the making of the loan, to be owned by the officer and used by him as his residence, and “(B) no other loan by the bank to the officer under authority of this paragraph is outstanding. “(3) A member bank may make extensions of credit to any executive Educational loans. officer of the bank, not exceeding the aggregate amount of $10,000 outstanding at any one time, to finance the education of the children of the officer. “(4) A member bank may make extensions of credit not otherwise specifically authorized under this subsection to any executive officer of the bank, not exceeding the aggregate amount of $5,000 outstanding at any one time. “(5) Except to the extent permitted under paragraph (4), a member bank may not extend credit to a partnership in which one or more of its executive officers are partners having either individually or together a majority interest. For the purposes of paragraph (4), the full amount of any credit so extended shall be considered to have been extended to each officer of the bank who is a member of the partnership. “(6) Whenever an executive officer of a member bank becomes indebted to any bank or banks (other than the one of which he is an officer) on account of extensions of credit of any one of the three categories respectively referred to in paragraphs (2), (3), and (4) in an aggregate amount greater than the aggregate amount of credit of the same category that could lawfully be extended to him by the bank, he shall make a written report to the board of directors of the bank, stating the date and amount of each such extension of credit, the security therefor, and the purposes for which the proceeds have been or are to be used. “(7) This subsection does not prohibit any executive officer of a member bank from endorsing or guaranteeing for the protection of the bank any loan or other asset previously acquired by the bank in good faith or from incurring any indebtedness to the bank for the purpose of protecting the bank against loss or giving financial assistance to it, “(8) Each day that any extension of credit in violation of this subsection exists is a continuation of the violation for the purposes of section 8 of the Federal Deposit Insurance Act. “(9) Each member bank shall include with (but not as part of) each report of condition and copy thereof filed under section 7(a)(3) of the Federal Deposit Insurance Act a report of all loans under authority of this subsection made by the bank since its previous report of condition. “(10) The Board of Governors of the Federal Reserve System may prescribe such rules and regulations, including definitions of terms, as it deems necessary to effectuate the purposes and to prevent evasions of this subsection.”

6. 1967

   Pub. L. 90–44 § 1 · 81 Stat. 108

   1. Substituted · 12 U.S.C. § 375a(5)

      Pub. L. 90–44 substituted provisions

   2. Amended · 12 U.S.C. § 375a(5)

      Pub. L. 90–44 designated as par. (5), for extension of credit to partnerships for former provisions of third sentence that “Borrowing by, or loaning to, a partnership in which one or more executive officers of a member bank are partners having either individually or together a majority interest in said partnership, shall be considered within the prohibition of this section”

   Source evidence

   Code amendment note
   Par. (5). Pub. L. 90–44 substituted provisions, designated as par. (5), for extension of credit to partnerships for former provisions of third sentence that “Borrowing by, or loaning to, a partnership in which one or more executive officers of a member bank are partners having either individually or together a majority interest in said partnership, shall be considered within the prohibition of this section”.

   Enacted provision · exact public law section
   Section 1. Section 22(g) of the Federal Reserve Act (12 U.S.C. 375a) is amended to read: “(g) (1) Except as authorized under this subsection, no member Loans to officers. 49 Stat. 716; 53 Stat. 842. bank may extend credit in any manner to any of its own executive officers. No executive officer of any member bank may become indebted to that member bank except by means of an extension of credit which the bank is authorized to make under this subsection. Any extension of Conditions. credit under this subsection shall be promptly reported to the board of directors of the bank, and may be made only if— “(A) the bank would be authorized to make it to borrowers other than its officers; “(B) it is on terms not more favorable than those afforded other borrowers; “(C) the officer has submitted a detailed current financial statement; and “(D) it is on condition that it shall become due and payable on demand of the bank at any time when the officer is indebted to any other bank or banks on account of extensions of credit of any one of the three categories respectively referred to in paragraphs (2), (3), and (4) in an aggregate amount greater than the amount of credit of the same category that could be extended to him by the bank of which he is an officer. “(2) With the specific prior approval of its board of directors, a Mortgage loans. member bank may make a loan not exceeding $30,000 to any executive officer of the bank if, at the time the loan is made— “(A) it is secured by a first lien on a dwelling which is expected, after the making of the loan, to be owned by the officer and used by him as his residence, and “(B) no other loan by the bank to the officer under authority of this paragraph is outstanding. “(3) A member bank may make extensions of credit to any executive Educational loans. officer of the bank, not exceeding the aggregate amount of $10,000 outstanding at any one time, to finance the education of the children of the officer. “(4) A member bank may make extensions of credit not otherwise specifically authorized under this subsection to any executive officer of the bank, not exceeding the aggregate amount of $5,000 outstanding at any one time. “(5) Except to the extent permitted under paragraph (4), a member bank may not extend credit to a partnership in which one or more of its executive officers are partners having either individually or together a majority interest. For the purposes of paragraph (4), the full amount of any credit so extended shall be considered to have been extended to each officer of the bank who is a member of the partnership. “(6) Whenever an executive officer of a member bank becomes indebted to any bank or banks (other than the one of which he is an officer) on account of extensions of credit of any one of the three categories respectively referred to in paragraphs (2), (3), and (4) in an aggregate amount greater than the aggregate amount of credit of the same category that could lawfully be extended to him by the bank, he shall make a written report to the board of directors of the bank, stating the date and amount of each such extension of credit, the security therefor, and the purposes for which the proceeds have been or are to be used. “(7) This subsection does not prohibit any executive officer of a member bank from endorsing or guaranteeing for the protection of the bank any loan or other asset previously acquired by the bank in good faith or from incurring any indebtedness to the bank for the purpose of protecting the bank against loss or giving financial assistance to it, “(8) Each day that any extension of credit in violation of this subsection exists is a continuation of the violation for the purposes of section 8 of the Federal Deposit Insurance Act. “(9) Each member bank shall include with (but not as part of) each report of condition and copy thereof filed under section 7(a)(3) of the Federal Deposit Insurance Act a report of all loans under authority of this subsection made by the bank since its previous report of condition. “(10) The Board of Governors of the Federal Reserve System may prescribe such rules and regulations, including definitions of terms, as it deems necessary to effectuate the purposes and to prevent evasions of this subsection.”

7. 1967

   Pub. L. 90–44 § 1 · 81 Stat. 108

   Amended · 12 U.S.C. § 375a(6)

   Pub. L. 90–44 incorporated reporting requirement of second sentence in provisions designated as par. (6) but limited it to extensions of credit from other banks to the executive officers as exceeded amounts available to such officers from their member banks under pars. (2) to (4) of this section

   Source evidence

   Code amendment note
   Par. (6). Pub. L. 90–44 incorporated reporting requirement of second sentence in provisions designated as par. (6) but limited it to extensions of credit from other banks to the executive officers as exceeded amounts available to such officers from their member banks under pars. (2) to (4) of this section.

   Enacted provision · exact public law section
   Section 1. Section 22(g) of the Federal Reserve Act (12 U.S.C. 375a) is amended to read: “(g) (1) Except as authorized under this subsection, no member Loans to officers. 49 Stat. 716; 53 Stat. 842. bank may extend credit in any manner to any of its own executive officers. No executive officer of any member bank may become indebted to that member bank except by means of an extension of credit which the bank is authorized to make under this subsection. Any extension of Conditions. credit under this subsection shall be promptly reported to the board of directors of the bank, and may be made only if— “(A) the bank would be authorized to make it to borrowers other than its officers; “(B) it is on terms not more favorable than those afforded other borrowers; “(C) the officer has submitted a detailed current financial statement; and “(D) it is on condition that it shall become due and payable on demand of the bank at any time when the officer is indebted to any other bank or banks on account of extensions of credit of any one of the three categories respectively referred to in paragraphs (2), (3), and (4) in an aggregate amount greater than the amount of credit of the same category that could be extended to him by the bank of which he is an officer. “(2) With the specific prior approval of its board of directors, a Mortgage loans. member bank may make a loan not exceeding $30,000 to any executive officer of the bank if, at the time the loan is made— “(A) it is secured by a first lien on a dwelling which is expected, after the making of the loan, to be owned by the officer and used by him as his residence, and “(B) no other loan by the bank to the officer under authority of this paragraph is outstanding. “(3) A member bank may make extensions of credit to any executive Educational loans. officer of the bank, not exceeding the aggregate amount of $10,000 outstanding at any one time, to finance the education of the children of the officer. “(4) A member bank may make extensions of credit not otherwise specifically authorized under this subsection to any executive officer of the bank, not exceeding the aggregate amount of $5,000 outstanding at any one time. “(5) Except to the extent permitted under paragraph (4), a member bank may not extend credit to a partnership in which one or more of its executive officers are partners having either individually or together a majority interest. For the purposes of paragraph (4), the full amount of any credit so extended shall be considered to have been extended to each officer of the bank who is a member of the partnership. “(6) Whenever an executive officer of a member bank becomes indebted to any bank or banks (other than the one of which he is an officer) on account of extensions of credit of any one of the three categories respectively referred to in paragraphs (2), (3), and (4) in an aggregate amount greater than the aggregate amount of credit of the same category that could lawfully be extended to him by the bank, he shall make a written report to the board of directors of the bank, stating the date and amount of each such extension of credit, the security therefor, and the purposes for which the proceeds have been or are to be used. “(7) This subsection does not prohibit any executive officer of a member bank from endorsing or guaranteeing for the protection of the bank any loan or other asset previously acquired by the bank in good faith or from incurring any indebtedness to the bank for the purpose of protecting the bank against loss or giving financial assistance to it, “(8) Each day that any extension of credit in violation of this subsection exists is a continuation of the violation for the purposes of section 8 of the Federal Deposit Insurance Act. “(9) Each member bank shall include with (but not as part of) each report of condition and copy thereof filed under section 7(a)(3) of the Federal Deposit Insurance Act a report of all loans under authority of this subsection made by the bank since its previous report of condition. “(10) The Board of Governors of the Federal Reserve System may prescribe such rules and regulations, including definitions of terms, as it deems necessary to effectuate the purposes and to prevent evasions of this subsection.”

8. 1967

   Pub. L. 90–44 § 1 · 81 Stat. 108

   Amended · 12 U.S.C. § 375a(7)

   Pub. L. 90–44 designated provisions of fourth sentence as par. (7)

   Source evidence

   Code amendment note
   Par. (7). Pub. L. 90–44 designated provisions of fourth sentence as par. (7).

   Enacted provision · exact public law section
   Section 1. Section 22(g) of the Federal Reserve Act (12 U.S.C. 375a) is amended to read: “(g) (1) Except as authorized under this subsection, no member Loans to officers. 49 Stat. 716; 53 Stat. 842. bank may extend credit in any manner to any of its own executive officers. No executive officer of any member bank may become indebted to that member bank except by means of an extension of credit which the bank is authorized to make under this subsection. Any extension of Conditions. credit under this subsection shall be promptly reported to the board of directors of the bank, and may be made only if— “(A) the bank would be authorized to make it to borrowers other than its officers; “(B) it is on terms not more favorable than those afforded other borrowers; “(C) the officer has submitted a detailed current financial statement; and “(D) it is on condition that it shall become due and payable on demand of the bank at any time when the officer is indebted to any other bank or banks on account of extensions of credit of any one of the three categories respectively referred to in paragraphs (2), (3), and (4) in an aggregate amount greater than the amount of credit of the same category that could be extended to him by the bank of which he is an officer. “(2) With the specific prior approval of its board of directors, a Mortgage loans. member bank may make a loan not exceeding $30,000 to any executive officer of the bank if, at the time the loan is made— “(A) it is secured by a first lien on a dwelling which is expected, after the making of the loan, to be owned by the officer and used by him as his residence, and “(B) no other loan by the bank to the officer under authority of this paragraph is outstanding. “(3) A member bank may make extensions of credit to any executive Educational loans. officer of the bank, not exceeding the aggregate amount of $10,000 outstanding at any one time, to finance the education of the children of the officer. “(4) A member bank may make extensions of credit not otherwise specifically authorized under this subsection to any executive officer of the bank, not exceeding the aggregate amount of $5,000 outstanding at any one time. “(5) Except to the extent permitted under paragraph (4), a member bank may not extend credit to a partnership in which one or more of its executive officers are partners having either individually or together a majority interest. For the purposes of paragraph (4), the full amount of any credit so extended shall be considered to have been extended to each officer of the bank who is a member of the partnership. “(6) Whenever an executive officer of a member bank becomes indebted to any bank or banks (other than the one of which he is an officer) on account of extensions of credit of any one of the three categories respectively referred to in paragraphs (2), (3), and (4) in an aggregate amount greater than the aggregate amount of credit of the same category that could lawfully be extended to him by the bank, he shall make a written report to the board of directors of the bank, stating the date and amount of each such extension of credit, the security therefor, and the purposes for which the proceeds have been or are to be used. “(7) This subsection does not prohibit any executive officer of a member bank from endorsing or guaranteeing for the protection of the bank any loan or other asset previously acquired by the bank in good faith or from incurring any indebtedness to the bank for the purpose of protecting the bank against loss or giving financial assistance to it, “(8) Each day that any extension of credit in violation of this subsection exists is a continuation of the violation for the purposes of section 8 of the Federal Deposit Insurance Act. “(9) Each member bank shall include with (but not as part of) each report of condition and copy thereof filed under section 7(a)(3) of the Federal Deposit Insurance Act a report of all loans under authority of this subsection made by the bank since its previous report of condition. “(10) The Board of Governors of the Federal Reserve System may prescribe such rules and regulations, including definitions of terms, as it deems necessary to effectuate the purposes and to prevent evasions of this subsection.”

9. 1967

   Pub. L. 90–44 § 1 · 81 Stat. 108

   Amended · 12 U.S.C. § 375a(8)

   Pub. L. 90–44 designated proviso of sixth sentence as par. (8) and identified the violation as one for purposes of section 1818 of this title

   Source evidence

   Code amendment note
   Par. (8). Pub. L. 90–44 designated proviso of sixth sentence as par. (8) and identified the violation as one for purposes of section 1818 of this title.

   Enacted provision · exact public law section
   Section 1. Section 22(g) of the Federal Reserve Act (12 U.S.C. 375a) is amended to read: “(g) (1) Except as authorized under this subsection, no member Loans to officers. 49 Stat. 716; 53 Stat. 842. bank may extend credit in any manner to any of its own executive officers. No executive officer of any member bank may become indebted to that member bank except by means of an extension of credit which the bank is authorized to make under this subsection. Any extension of Conditions. credit under this subsection shall be promptly reported to the board of directors of the bank, and may be made only if— “(A) the bank would be authorized to make it to borrowers other than its officers; “(B) it is on terms not more favorable than those afforded other borrowers; “(C) the officer has submitted a detailed current financial statement; and “(D) it is on condition that it shall become due and payable on demand of the bank at any time when the officer is indebted to any other bank or banks on account of extensions of credit of any one of the three categories respectively referred to in paragraphs (2), (3), and (4) in an aggregate amount greater than the amount of credit of the same category that could be extended to him by the bank of which he is an officer. “(2) With the specific prior approval of its board of directors, a Mortgage loans. member bank may make a loan not exceeding $30,000 to any executive officer of the bank if, at the time the loan is made— “(A) it is secured by a first lien on a dwelling which is expected, after the making of the loan, to be owned by the officer and used by him as his residence, and “(B) no other loan by the bank to the officer under authority of this paragraph is outstanding. “(3) A member bank may make extensions of credit to any executive Educational loans. officer of the bank, not exceeding the aggregate amount of $10,000 outstanding at any one time, to finance the education of the children of the officer. “(4) A member bank may make extensions of credit not otherwise specifically authorized under this subsection to any executive officer of the bank, not exceeding the aggregate amount of $5,000 outstanding at any one time. “(5) Except to the extent permitted under paragraph (4), a member bank may not extend credit to a partnership in which one or more of its executive officers are partners having either individually or together a majority interest. For the purposes of paragraph (4), the full amount of any credit so extended shall be considered to have been extended to each officer of the bank who is a member of the partnership. “(6) Whenever an executive officer of a member bank becomes indebted to any bank or banks (other than the one of which he is an officer) on account of extensions of credit of any one of the three categories respectively referred to in paragraphs (2), (3), and (4) in an aggregate amount greater than the aggregate amount of credit of the same category that could lawfully be extended to him by the bank, he shall make a written report to the board of directors of the bank, stating the date and amount of each such extension of credit, the security therefor, and the purposes for which the proceeds have been or are to be used. “(7) This subsection does not prohibit any executive officer of a member bank from endorsing or guaranteeing for the protection of the bank any loan or other asset previously acquired by the bank in good faith or from incurring any indebtedness to the bank for the purpose of protecting the bank against loss or giving financial assistance to it, “(8) Each day that any extension of credit in violation of this subsection exists is a continuation of the violation for the purposes of section 8 of the Federal Deposit Insurance Act. “(9) Each member bank shall include with (but not as part of) each report of condition and copy thereof filed under section 7(a)(3) of the Federal Deposit Insurance Act a report of all loans under authority of this subsection made by the bank since its previous report of condition. “(10) The Board of Governors of the Federal Reserve System may prescribe such rules and regulations, including definitions of terms, as it deems necessary to effectuate the purposes and to prevent evasions of this subsection.”

10. 1967

    Pub. L. 90–44 § 1 · 81 Stat. 108

    1. Added · 12 U.S.C. § 375a(9)

       Pub. L. 90–44 added requirement

    2. Amended · 12 U.S.C. § 375a(9)

       Pub. L. 90–44 designated as par. (9), that member banks report all loans made under authority of this section since previous report of condition

    Source evidence

    Code amendment note
    Par. (9). Pub. L. 90–44 added requirement, designated as par. (9), that member banks report all loans made under authority of this section since previous report of condition.

    Enacted provision · exact public law section
    Section 1. Section 22(g) of the Federal Reserve Act (12 U.S.C. 375a) is amended to read: “(g) (1) Except as authorized under this subsection, no member Loans to officers. 49 Stat. 716; 53 Stat. 842. bank may extend credit in any manner to any of its own executive officers. No executive officer of any member bank may become indebted to that member bank except by means of an extension of credit which the bank is authorized to make under this subsection. Any extension of Conditions. credit under this subsection shall be promptly reported to the board of directors of the bank, and may be made only if— “(A) the bank would be authorized to make it to borrowers other than its officers; “(B) it is on terms not more favorable than those afforded other borrowers; “(C) the officer has submitted a detailed current financial statement; and “(D) it is on condition that it shall become due and payable on demand of the bank at any time when the officer is indebted to any other bank or banks on account of extensions of credit of any one of the three categories respectively referred to in paragraphs (2), (3), and (4) in an aggregate amount greater than the amount of credit of the same category that could be extended to him by the bank of which he is an officer. “(2) With the specific prior approval of its board of directors, a Mortgage loans. member bank may make a loan not exceeding $30,000 to any executive officer of the bank if, at the time the loan is made— “(A) it is secured by a first lien on a dwelling which is expected, after the making of the loan, to be owned by the officer and used by him as his residence, and “(B) no other loan by the bank to the officer under authority of this paragraph is outstanding. “(3) A member bank may make extensions of credit to any executive Educational loans. officer of the bank, not exceeding the aggregate amount of $10,000 outstanding at any one time, to finance the education of the children of the officer. “(4) A member bank may make extensions of credit not otherwise specifically authorized under this subsection to any executive officer of the bank, not exceeding the aggregate amount of $5,000 outstanding at any one time. “(5) Except to the extent permitted under paragraph (4), a member bank may not extend credit to a partnership in which one or more of its executive officers are partners having either individually or together a majority interest. For the purposes of paragraph (4), the full amount of any credit so extended shall be considered to have been extended to each officer of the bank who is a member of the partnership. “(6) Whenever an executive officer of a member bank becomes indebted to any bank or banks (other than the one of which he is an officer) on account of extensions of credit of any one of the three categories respectively referred to in paragraphs (2), (3), and (4) in an aggregate amount greater than the aggregate amount of credit of the same category that could lawfully be extended to him by the bank, he shall make a written report to the board of directors of the bank, stating the date and amount of each such extension of credit, the security therefor, and the purposes for which the proceeds have been or are to be used. “(7) This subsection does not prohibit any executive officer of a member bank from endorsing or guaranteeing for the protection of the bank any loan or other asset previously acquired by the bank in good faith or from incurring any indebtedness to the bank for the purpose of protecting the bank against loss or giving financial assistance to it, “(8) Each day that any extension of credit in violation of this subsection exists is a continuation of the violation for the purposes of section 8 of the Federal Deposit Insurance Act. “(9) Each member bank shall include with (but not as part of) each report of condition and copy thereof filed under section 7(a)(3) of the Federal Deposit Insurance Act a report of all loans under authority of this subsection made by the bank since its previous report of condition. “(10) The Board of Governors of the Federal Reserve System may prescribe such rules and regulations, including definitions of terms, as it deems necessary to effectuate the purposes and to prevent evasions of this subsection.”

11. 1967

    Pub. L. 90–44 § 1 · 81 Stat. 108

    1. Amended · 12 U.S.C. § 375a(10)

       Pub. L. 90–44 designated provisions of fifth sentence as par. (10)

    2. Substituted · 12 U.S.C. § 375a(10)

       Pub. L. 90–44 substituted general authorization for definition of terms for former specific authorization for definition of “executive officer” and for determination what shall be deemed to be a borrowing, indebtedness, loan, or extension of credit

    Source evidence

    Code amendment note
    Par. (10). Pub. L. 90–44 designated provisions of fifth sentence as par. (10) and substituted general authorization for definition of terms for former specific authorization for definition of “executive officer” and for determination what shall be deemed to be a borrowing, indebtedness, loan, or extension of credit.

    Enacted provision · exact public law section
    Section 1. Section 22(g) of the Federal Reserve Act (12 U.S.C. 375a) is amended to read: “(g) (1) Except as authorized under this subsection, no member Loans to officers. 49 Stat. 716; 53 Stat. 842. bank may extend credit in any manner to any of its own executive officers. No executive officer of any member bank may become indebted to that member bank except by means of an extension of credit which the bank is authorized to make under this subsection. Any extension of Conditions. credit under this subsection shall be promptly reported to the board of directors of the bank, and may be made only if— “(A) the bank would be authorized to make it to borrowers other than its officers; “(B) it is on terms not more favorable than those afforded other borrowers; “(C) the officer has submitted a detailed current financial statement; and “(D) it is on condition that it shall become due and payable on demand of the bank at any time when the officer is indebted to any other bank or banks on account of extensions of credit of any one of the three categories respectively referred to in paragraphs (2), (3), and (4) in an aggregate amount greater than the amount of credit of the same category that could be extended to him by the bank of which he is an officer. “(2) With the specific prior approval of its board of directors, a Mortgage loans. member bank may make a loan not exceeding $30,000 to any executive officer of the bank if, at the time the loan is made— “(A) it is secured by a first lien on a dwelling which is expected, after the making of the loan, to be owned by the officer and used by him as his residence, and “(B) no other loan by the bank to the officer under authority of this paragraph is outstanding. “(3) A member bank may make extensions of credit to any executive Educational loans. officer of the bank, not exceeding the aggregate amount of $10,000 outstanding at any one time, to finance the education of the children of the officer. “(4) A member bank may make extensions of credit not otherwise specifically authorized under this subsection to any executive officer of the bank, not exceeding the aggregate amount of $5,000 outstanding at any one time. “(5) Except to the extent permitted under paragraph (4), a member bank may not extend credit to a partnership in which one or more of its executive officers are partners having either individually or together a majority interest. For the purposes of paragraph (4), the full amount of any credit so extended shall be considered to have been extended to each officer of the bank who is a member of the partnership. “(6) Whenever an executive officer of a member bank becomes indebted to any bank or banks (other than the one of which he is an officer) on account of extensions of credit of any one of the three categories respectively referred to in paragraphs (2), (3), and (4) in an aggregate amount greater than the aggregate amount of credit of the same category that could lawfully be extended to him by the bank, he shall make a written report to the board of directors of the bank, stating the date and amount of each such extension of credit, the security therefor, and the purposes for which the proceeds have been or are to be used. “(7) This subsection does not prohibit any executive officer of a member bank from endorsing or guaranteeing for the protection of the bank any loan or other asset previously acquired by the bank in good faith or from incurring any indebtedness to the bank for the purpose of protecting the bank against loss or giving financial assistance to it, “(8) Each day that any extension of credit in violation of this subsection exists is a continuation of the violation for the purposes of section 8 of the Federal Deposit Insurance Act. “(9) Each member bank shall include with (but not as part of) each report of condition and copy thereof filed under section 7(a)(3) of the Federal Deposit Insurance Act a report of all loans under authority of this subsection made by the bank since its previous report of condition. “(10) The Board of Governors of the Federal Reserve System may prescribe such rules and regulations, including definitions of terms, as it deems necessary to effectuate the purposes and to prevent evasions of this subsection.”

12. 1967

    Pub. L. 90–44 § 1 · 81 Stat. 108

    Struck · 12 U.S.C. § 375a(10)

    Pub. L. 90–44 struck out former sixth sentence, less proviso, which provided for removal from office in manner prescribed in former section 77 of this title of any executive officer of member bank accepting a loan or extension of credit in violation of this section

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 90–44 struck out former sixth sentence, less proviso, which provided for removal from office in manner prescribed in former section 77 of this title of any executive officer of member bank accepting a loan or extension of credit in violation of this section.

    Enacted provision · exact public law section
    Section 1. Section 22(g) of the Federal Reserve Act (12 U.S.C. 375a) is amended to read: “(g) (1) Except as authorized under this subsection, no member Loans to officers. 49 Stat. 716; 53 Stat. 842. bank may extend credit in any manner to any of its own executive officers. No executive officer of any member bank may become indebted to that member bank except by means of an extension of credit which the bank is authorized to make under this subsection. Any extension of Conditions. credit under this subsection shall be promptly reported to the board of directors of the bank, and may be made only if— “(A) the bank would be authorized to make it to borrowers other than its officers; “(B) it is on terms not more favorable than those afforded other borrowers; “(C) the officer has submitted a detailed current financial statement; and “(D) it is on condition that it shall become due and payable on demand of the bank at any time when the officer is indebted to any other bank or banks on account of extensions of credit of any one of the three categories respectively referred to in paragraphs (2), (3), and (4) in an aggregate amount greater than the amount of credit of the same category that could be extended to him by the bank of which he is an officer. “(2) With the specific prior approval of its board of directors, a Mortgage loans. member bank may make a loan not exceeding $30,000 to any executive officer of the bank if, at the time the loan is made— “(A) it is secured by a first lien on a dwelling which is expected, after the making of the loan, to be owned by the officer and used by him as his residence, and “(B) no other loan by the bank to the officer under authority of this paragraph is outstanding. “(3) A member bank may make extensions of credit to any executive Educational loans. officer of the bank, not exceeding the aggregate amount of $10,000 outstanding at any one time, to finance the education of the children of the officer. “(4) A member bank may make extensions of credit not otherwise specifically authorized under this subsection to any executive officer of the bank, not exceeding the aggregate amount of $5,000 outstanding at any one time. “(5) Except to the extent permitted under paragraph (4), a member bank may not extend credit to a partnership in which one or more of its executive officers are partners having either individually or together a majority interest. For the purposes of paragraph (4), the full amount of any credit so extended shall be considered to have been extended to each officer of the bank who is a member of the partnership. “(6) Whenever an executive officer of a member bank becomes indebted to any bank or banks (other than the one of which he is an officer) on account of extensions of credit of any one of the three categories respectively referred to in paragraphs (2), (3), and (4) in an aggregate amount greater than the aggregate amount of credit of the same category that could lawfully be extended to him by the bank, he shall make a written report to the board of directors of the bank, stating the date and amount of each such extension of credit, the security therefor, and the purposes for which the proceeds have been or are to be used. “(7) This subsection does not prohibit any executive officer of a member bank from endorsing or guaranteeing for the protection of the bank any loan or other asset previously acquired by the bank in good faith or from incurring any indebtedness to the bank for the purpose of protecting the bank against loss or giving financial assistance to it, “(8) Each day that any extension of credit in violation of this subsection exists is a continuation of the violation for the purposes of section 8 of the Federal Deposit Insurance Act. “(9) Each member bank shall include with (but not as part of) each report of condition and copy thereof filed under section 7(a)(3) of the Federal Deposit Insurance Act a report of all loans under authority of this subsection made by the bank since its previous report of condition. “(10) The Board of Governors of the Federal Reserve System may prescribe such rules and regulations, including definitions of terms, as it deems necessary to effectuate the purposes and to prevent evasions of this subsection.”

13. 1978

    Financial Institutions Regulatory and Interest Rate Control Act of 1978

    Pub. L. 95–630 title I § 110 · 92 Stat. 3641

    Substituted · 12 U.S.C. § 375a(2)

    Pub. L. 95–630 substituted “$60,000” for “$30,000”

    Source evidence

    Code amendment note
    Par. (2). Pub. L. 95–630 substituted “$60,000” for “$30,000”.

    Enacted provision · exact public law section
    Sec. 110. Section 22(g) of the Federal Reserve Act, as amended (12 U.S.C. 375a), is amended by inserting the figure “$60,000” in lieu of the figure “$30,000” in paragraph (2), and by inserting the figure “$20,000” in lieu of the figure “$10,000” in paragraph (3); and by inserting the figure “$10,000” in lieu of the figure “$5,000” in paragraph (4).

    Effective date note
    Amendment effective upon expiration of 120 days after Nov. 10, 1978, see sec. 2101 of Pub. L. 95–630 set out as an Effective Date note under section 375b of this title.

14. 1978

    Financial Institutions Regulatory and Interest Rate Control Act of 1978

    Pub. L. 95–630 title I § 110 · 92 Stat. 3641

    Substituted · 12 U.S.C. § 375a(3)

    Pub. L. 95–630 substituted “$20,000” for “$10,000”

    Source evidence

    Code amendment note
    Par. (3). Pub. L. 95–630 substituted “$20,000” for “$10,000”.

    Enacted provision · exact public law section
    Sec. 110. Section 22(g) of the Federal Reserve Act, as amended (12 U.S.C. 375a), is amended by inserting the figure “$60,000” in lieu of the figure “$30,000” in paragraph (2), and by inserting the figure “$20,000” in lieu of the figure “$10,000” in paragraph (3); and by inserting the figure “$10,000” in lieu of the figure “$5,000” in paragraph (4).

    Effective date note
    Amendment effective upon expiration of 120 days after Nov. 10, 1978, see sec. 2101 of Pub. L. 95–630 set out as an Effective Date note under section 375b of this title.

15. 1978

    Financial Institutions Regulatory and Interest Rate Control Act of 1978

    Pub. L. 95–630 title I § 110 · 92 Stat. 3641

    Substituted · 12 U.S.C. § 375a(4)

    Pub. L. 95–630 substituted “$10,000” for “$5,000”

    Source evidence

    Code amendment note
    Par. (4). Pub. L. 95–630 substituted “$10,000” for “$5,000”.

    Enacted provision · exact public law section
    Sec. 110. Section 22(g) of the Federal Reserve Act, as amended (12 U.S.C. 375a), is amended by inserting the figure “$60,000” in lieu of the figure “$30,000” in paragraph (2), and by inserting the figure “$20,000” in lieu of the figure “$10,000” in paragraph (3); and by inserting the figure “$10,000” in lieu of the figure “$5,000” in paragraph (4).

    Effective date note
    Amendment effective upon expiration of 120 days after Nov. 10, 1978, see sec. 2101 of Pub. L. 95–630 set out as an Effective Date note under section 375b of this title.

16. 1982

    Garn-St Germain Depository Institutions Act of 1982

    Pub. L. 97–320 § 421(a) · 96 Stat. 1469

    Struck · 12 U.S.C. § 375a(2)

    Pub. L. 97–320, § 421(a), struck out “not exceeding $60,000” after “may make a loan”

    Source evidence

    Code amendment note
    Par. (2). Pub. L. 97–320, § 421(a), struck out “not exceeding $60,000” after “may make a loan”.

    Enacted provision · exact public law section
    (a) Section 22(g) of the Federal Reserve Act (12 U.S.C. 375a) is amended by striking out “not exceeding $60,000” in paragraph (2), and by striking out “, not exceeding the aggregate amount of $20,000 outstanding at any one time,” in paragraph (3).

17. 1982

    Garn-St Germain Depository Institutions Act of 1982

    Pub. L. 97–320 § 421(a) · 96 Stat. 1469

    Struck · 12 U.S.C. § 375a(3)

    Pub. L. 97–320, § 421(a), struck out “, not exceeding the aggregate amount of $20,000 outstanding at any one time,” after “officer of the bank”

    Source evidence

    Code amendment note
    Par. (3). Pub. L. 97–320, § 421(a), struck out “, not exceeding the aggregate amount of $20,000 outstanding at any one time,” after “officer of the bank”.

    Enacted provision · exact public law section
    (a) Section 22(g) of the Federal Reserve Act (12 U.S.C. 375a) is amended by striking out “not exceeding $60,000” in paragraph (2), and by striking out “, not exceeding the aggregate amount of $20,000 outstanding at any one time,” in paragraph (3).

18. 1982

    Garn-St Germain Depository Institutions Act of 1982

    Pub. L. 97–320 § 421(b) · 96 Stat. 1469

    Substituted · 12 U.S.C. § 375a(4)

    Pub. L. 97–320, § 421(b), substituted “in an amount prescribed in a regulation of the member bank’s appropriate Federal banking agency” for “not exceeding the aggregate amount of $10,000 outstanding at any one time”

    Source evidence

    Code amendment note
    Par. (4). Pub. L. 97–320, § 421(b), substituted “in an amount prescribed in a regulation of the member bank’s appropriate Federal banking agency” for “not exceeding the aggregate amount of $10,000 outstanding at any one time”.

    Enacted provision · exact public law section
    (b) Paragraph (4) of section 22(g) of the Federal Reserve Act (12 U.S.C. 375a(4)) is amended by striking “not exceeding the aggregate amount of $10,000 outstanding at any one time” and inserting in lieu thereof “in an amount prescribed in a regulation of the member bank’s appropriate Federal banking agency”.

19. 1994

    Riegle Community Development and Regulatory Improvement Act of 1994

    Pub. L. 103–325 title III § 334(a) · 108 Stat. 2160

    Substituted · 12 U.S.C. § 375a(2)

    Pub. L. 103–325 in introductory provisions substituted “A member” for “With the specific prior approval of its board of directors, a member”

    Source evidence

    Code amendment note
    Par. (2). Pub. L. 103–325 in introductory provisions substituted “A member” for “With the specific prior approval of its board of directors, a member”.

    Enacted provision · exact public law section
    (a) Loans to Executive Officers by Member Banks.— Section 22(g)(2) of the Federal Reserve Act (12 U.S.C. 375a(2)) is amended by striking “With the specific prior approval of its board of directors, a member” and inserting “A member”.

20. 2006

    Pub. L. 109–351 title VI § 601(a) · 120 Stat. 1966

    1. Redesignated · 12 U.S.C. § 375a(6)(10)

       Pub. L. 109–351 redesignated pars. (7), (8), and (10) as (6), (7), and (8), respectively

    2. Struck · 12 U.S.C. § 375a(6)(10)

       Pub. L. 109–351 struck out former pars. (6) and (9) which related to report of date and amount of credit extensions, security, and uses of proceeds upon excessive extension of credit and report of loan activity since previous report of condition, respectively

    Source evidence

    Code amendment note
    Pars. (6) to (10). Pub. L. 109–351 redesignated pars. (7), (8), and (10) as (6), (7), and (8), respectively, and struck out former pars. (6) and (9) which related to report of date and amount of credit extensions, security, and uses of proceeds upon excessive extension of credit and report of loan activity since previous report of condition, respectively.

    Enacted provision · exact public law section
    (a) Reporting Requirements Regarding Loans to Executive Officers of Member Banks.— Section 22(g) of the Federal Reserve Act (12 U.S.C. 375a) is amended— (1) by striking paragraphs (6) and (9); and (2) by redesignating paragraphs (7), (8), and (10) as paragraphs (6), (7), and (8), respectively.

24 of 26 references resolved to an enrolled provision · 1 partial · 1 unresolved