Title 12 — Banks and Banking
Chapter 2 — National Banks
§ 56. Prohibition on withdrawal of capital; unearned dividends
Statutory text
No association, or any member thereof, shall, during the time it shall continue its banking operations, withdraw, or permit to be withdrawn, either in the form of dividends or otherwise, any portion of its capital. If losses have at any time been sustained by any such association, equal to or exceeding its undivided profits then on hand, no dividend shall be made; and no dividend shall ever be made by any association, while it continues its banking operations, to an amount greater than its undivided profits, subject to other applicable provisions of law. But nothing in this section shall prevent the reduction of the capital stock of the association under section 59 of this title.
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.
R.S. § 5204
Enacted · 12 U.S.C. § 56
R.S. § 5204
Unresolved: No Public Law or Statutes at Large citation in the Code source.
Source evidence
Code source credit
R.S. § 5204Riegle Community Development and Regulatory Improvement Act of 1994
Pub. L. 103–325 title VI § 602(h)(1) · 108 Stat. 2160
Substituted · 12 U.S.C. § 56
Pub. L. 103–325 substituted “undivided profits, subject to other applicable provisions of law” for “net profits then on hand, deducting therefrom its losses and bad debts” in second sentence
Struck · 12 U.S.C. § 56
Pub. L. 103–325 struck out after second sentence “All debts due to any associations, on which interest is past due and unpaid for a period of six months, unless the same are well secured, and in process of collection, shall be considered bad debts within the meaning of this section.”
Source evidence
Code amendment note
Pub. L. 103–325 substituted “undivided profits, subject to other applicable provisions of law” for “net profits then on hand, deducting therefrom its losses and bad debts” in second sentence and struck out after second sentence “All debts due to any associations, on which interest is past due and unpaid for a period of six months, unless the same are well secured, and in process of collection, shall be considered bad debts within the meaning of this section.”Enacted provision · exact public law section
(1) Withdrawal of capital.— Section 5204 of the Revised Statutes (12 U.S.C. 56) is amended— (A) in the 2d sentence, by striking “net profits then on hand, deducting therefrom its losses and bad debts” and inserting “undivided profits, subject to other applicable provisions of law”; and (B) by striking the 3d sentence.
2 of 3 references resolved to an enrolled provision · 1 unresolved
Editorial Notes
Codification
R.S. § 5204 derived from act June 3, 1864, ch. 106, § 38, 13 Stat. 110, which was the National Bank Act. See section 38 of this title.
Amendments
1994—Pub. L. 103–325 substituted “undivided profits, subject to other applicable provisions of law” for “net profits then on hand, deducting therefrom its losses and bad debts” in second sentence and struck out after second sentence “All debts due to any associations, on which interest is past due and unpaid for a period of six months, unless the same are well secured, and in process of collection, shall be considered bad debts within the meaning of this section.”
Credits
1994 · 2 acts
- R.S. § 5204
- 1994Pub. L. 103–325, title VI, § 602(h)(1), , 108 Stat. 2294.
Show as published
(R.S. § 5204; Pub. L. 103–325, title VI, § 602(h)(1), , 108 Stat. 2294.)