Skip to content

Title 12 — Banks and Banking

Chapter 2 — National Banks

§ 83. Loans by bank on its own stock

Statutory text

(a)

General prohibition

No national bank shall make any loan or discount on the security of the shares of its own capital stock.

(b)

Exclusion

For purposes of this section, a national bank shall not be deemed to be making a loan or discount on the security of the shares of its own capital stock if it acquires the stock to prevent loss upon a debt previously contracted for in good faith.

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. R.S. § 5201

    Enacted · 12 U.S.C. § 83

    R.S. § 5201

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

    Source evidence

    Code source credit
    R.S. § 5201

  2. Financial Regulatory Relief and Economic Efficiency Act of 2000

    Pub. L. 106–569 title XII § 1207(a) · 114 Stat. 2944

    Amended · 12 U.S.C. § 83

    Pub. L. 106–569 amended section catchline and text generally. Prior to amendment, text read as follows: “No association shall make any loan or discount on the security of the shares of its own capital stock, nor be the purchaser or holder of any such shares, unless such security or purchase shall be necessary to prevent loss upon a debt previously contracted in good faith; and stock so purchased or acquired shall, within six months from the time of its purchase, be sold or disposed of at public or private sale; or, in default thereof, a receiver may be appointed to close up the business of the association, according to section 192 of this title.”

    Source evidence

    Code amendment note
    Pub. L. 106–569 amended section catchline and text generally. Prior to amendment, text read as follows: “No association shall make any loan or discount on the security of the shares of its own capital stock, nor be the purchaser or holder of any such shares, unless such security or purchase shall be necessary to prevent loss upon a debt previously contracted in good faith; and stock so purchased or acquired shall, within six months from the time of its purchase, be sold or disposed of at public or private sale; or, in default thereof, a receiver may be appointed to close up the business of the association, according to section 192 of this title.”

    Enacted provision · exact public law section
    (a) Amendment to the Revised Statutes.— Section 5201 of the Revised Statutes of the United States (12 U.S.C. 83) is amended to read as follows: “SEC. 5201. LOANS BY BANK ON ITS OWN STOCK “(a) General Prohibition.— No national bank shall make any loan or discount on the security of the shares of its own capital stock. “(b) Exclusion.— For purposes of this section, a national bank shall not be deemed to be making a loan or discount on the security of the shares of its own capital stock if it acquires the stock to prevent loss upon a debt previously contracted for in good faith.”.

1 of 2 references resolved to an enrolled provision · 1 unresolved

Editorial Notes

Codification

R.S. § 5201 derived from act June 3, 1864, ch. 106, § 35, 13 Stat. 110, which was the National Bank Act. See section 38 of this title.

Amendments

2000—Pub. L. 106–569 amended section catchline and text generally. Prior to amendment, text read as follows: “No association shall make any loan or discount on the security of the shares of its own capital stock, nor be the purchaser or holder of any such shares, unless such security or purchase shall be necessary to prevent loss upon a debt previously contracted in good faith; and stock so purchased or acquired shall, within six months from the time of its purchase, be sold or disposed of at public or private sale; or, in default thereof, a receiver may be appointed to close up the business of the association, according to section 192 of this title.”

Credits

2000 · 2 acts
  1. R.S. § 5201
  2. 2000Pub. L. 106–569, title XII, § 1207(a), , 114 Stat. 3034.
Show as published

(R.S. § 5201; Pub. L. 106–569, title XII, § 1207(a), , 114 Stat. 3034.)

Parsed from the official OLRC USLM XML in data/usc_all/usc12.xml · release point 119-108 · OLRC build 2026-07-23

USLM identifier /us/usc/t12/s83