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12 U.S.C. § 603 — Restrictions imposed by Board of Governors of the Federal Reserve System on banks purchasing stock in corporations doing foreign business
Federal law — U.S. Code and appendices · legal_authorities
Before any national bank shall be permitted to purchase stock in any corporation described in [section 601 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section601&num=0&edition=prelim), the said corporation shall enter into an agreement or undertaking with the Board of Governors of the Federal Reserve System to restrict its operations or conduct its business in such manner or under such limitations and restrictions as the said board may prescribe for the place or places wherein such business is to be conducted. If at any time the Board of Governors of the Federal Reserve System shall ascertain that the regulations prescribed by it are not being complied with, said board is authorized and empowered to institute an investigation of the matter and to send for persons and papers, subpoena witnesses, and administer oaths in order to satisfy itself as to the actual nature of the transactions referred to. Should such investigation result in establishing the failure of the corporation in question, or of the national bank or banks which may be stockholders therein, to comply with the regulations laid down by the said Board of Governors of the Federal Reserve System, such national banks may be required to dispose of stock holdings in the said corporation upon reasonable notice.
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Stable record: federal_law:legal_authorities:record_usc_f08f6cd01c7e3d9e9a5633a9
Source file: Laws/federal/codes/united-states-code/title-12/section-603-restrictions-imposed-by-board-of-governors-of-the-federal-reserve-system--ed05a10533.md
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Passage SHA-256: ce7929b3f563daff1e4d8a5b1192948259f77a800cc3a49e0281503a08539499
Source location: Title 12, Chapter 6, § 603; chapter-006-foreign-banking.md
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Before any national bank shall be permitted to purchase stock in any corporation described in [section 601 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section601&num=0&edition=prelim), the said corporation shall enter into an agreement or undertaking with the Board of Governors of the Federal Reserve System to restrict its operations or conduct its business in such manner or under such limitations and restrictions as the said board may prescribe for the place or places wherein such business is to be conducted. If at any time the Board of Governors of the Federal Reserve System shall ascertain that the regulations prescribed by it are not being complied with, said board is authorized and empowered to institute an investigation of the matter and to send for persons and papers, subpoena witnesses, and administer oaths in order to satisfy itself as to the actual nature of the transactions referred to. Should such investigation result in establishing the failure of the corporation in question, or of the national bank or banks which may be stockholders therein, to comply with the regulations laid down by the said Board of Governors of the Federal Reserve System, such national banks may be required to dispose of stock holdings in the said corporation upon reasonable notice.
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Federal law — U.S. Code and appendices · legal_authorities
Any national banking association possessing a capital and surplus of $1,000,000 or more may file application with the Board of Governors of the Federal Reserve System for permission to exercise, upon such conditions and under such regulations as may be prescribed by the said board, the following powers:
Source: Supplied U.S. Code snapshot — release unconfirmed · 12 U.S.C. § 601
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Federal law — U.S. Code and appendices · legal_authorities
As used in this chapter:
(1) **Alternative trading system** — The term “alternative trading system” means an organization, association, or group of persons that—
(A) is registered as a broker or dealer pursuant to section 15(b) of the Securities Exchange Act of 1934 [[15 U.S.C. 78](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section78&num=0&edition=prelim)o(b)] (except paragraph (11) thereof);
(B) performs the functions commonly performed by an exchange (as defined in section 3(a)(1) of the Securities Exchange Act of 1934 [[15 U.S.C. 78c(a)(1)](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section78c/a/1&num=0&edition=prelim)]);
(C) does not—
(i) set rules governing the conduct of subscribers other than the conduct of such subscribers’ trading on the alternative trading system; or
(ii) discipline subscribers other than by exclusion from trading; and
(D) is exempt from the definition of the term “exchange” under such section 3(a)(1) [[15 U.S.C. 78c(a)(1)](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section78c/a/1&num=0&edition=prelim)] by rule or regulation of the Securities and Exchange Commission on terms that require compliance with regulations of its trading functions.
(2) **Appropriate Federal banking agency** — The term “appropriate Federal banking agency”—
(A) has the meaning given the term in [section 1813 of title 12](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1813&num=0&edition=prelim);
(B) means the Board in the case of a noninsured State bank; and
(C) is the Farm Credit Administration for farm credit system institutions.
(3) **Associated person of a security-based swap dealer or major security-based swap participant** — T
Source: Supplied U.S. Code snapshot — release unconfirmed · 7 U.S.C. § 1a
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Federal law — U.S. Code and appendices · legal_authorities
Page 185
TITLE 12—BANKS AND BANKING
§ 603
CODIFICATION
Section is comprised of the first three undesignated
pars. of section 25 of act Dec. 23, 1913, which comprises
this subchapter.
The fourth undesignated par. of section 25 is classi-
fied to section 602 of this title.
The fifth undesignated par. of section 25 is classified
to section 603 of this title.
The sixth undesignated par. of section 25 is classified
to section 604 of this title.
The former seventh undesignated par. was classified
to former section 605 of this title.
The seventh undesignated par. is classified to section
604a of this title.
AMENDMENTS
1966—Pub. L. 89–485 struck out ‘‘either or both of’’ be-
fore ‘‘the following powers’’ in introductory par.
Par. Third. Pub. L. 89–485 added par. Third.
1919—Act Sept. 17, 1919, added par. beginning ‘‘Until
January 21, 1921’’ and inserted ‘‘financial’’ in first sen-
tence of last par.
1916—Act Sept. 7, 1916, among other changes, added
par. Second, and provisions relating to restrictions on
purchasing stock in other banks, investigations as to
compliance with regulations, disposal of interest and
separation of accounts, etc. which are now contained in
section 602 et seq. of this title.
Statutory Notes and Related Subsidiaries
CHANGE OF NAME
Section 203(a) of act Aug. 23, 1935, changed name of
Federal Reserve Board to Board of Governors of the
Federal Reserve System.
STUDY BY SECRETARY OF THE TREASURY OF DISCRIMI-
NATORY
PRACTICES
BY
FOREIGN
NATIONS
AGAINST
UNITED STATES BANKS; REPORT
AND RECOMMENDA-
TIONS TO CONGRESS
Pub. L. 95–369, § 9(a), formerly § 9, Sept. 17, 1978, 92
Stat. 623, renumbered Pub. L. 95–630, title III, § 311, Nov.
10, 1978, 92 Stat. 3678, provided that the Secretary of the
Treasury conduct a study of discriminato
Source: Supplied 2024 U.S. Code historical extraction · 12 U.S.C. § 603
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