12 U.S.C. § 144 — Certain balances counted toward reserves

Page 58 TITLE 12—BANKS AND BANKING § 142 Statutory Notes and Related Subsidiaries CENTRAL RESERVE AND RESERVE CITIES Pub. L. 86–114, § 3(b), July 28, 1959, 73 Stat. 263, pro- vided that: ‘‘Effective three years after the date of the enactment of this Act [July 28, 1959]— ‘‘(1) New York and Chicago are reclassified as re- serve cities under the Federal Reserve Act; ‘‘(2) the classification ‘central reserve city’ under the Federal Reserve Act, and the authority of the Board of Governors of the Federal Reserve System to classify or reclassify cities as ‘central reserve cities’ under such Act, are terminated; ‘‘(3) section 5192 of the Revised Statutes of the United States (12 U.S.C., sec. 144) is amended by striking out ‘central reserve or’; ‘‘(4) section 2 of the Act of March 3, 1887 (ch. 378; 24 Stat. 560) is repealed; ‘‘(5) the last paragraph of section 2 of the Federal Reserve act (12 U.S.C., sec. 224) is amended by strik- ing out ‘and central reserve cities’; ‘‘(6) section 11(e) of the Federal Reserve Act (12 U.S.C., sec. 248e) is amended by striking out ‘and cen- tral reserve’ each place it appears; ‘‘(7) the third paragraph (lettered (a)) of section 19 of the Federal Reserve Act (12 U.S.C., sec. 462) is amended by striking out ‘or central reserve’; ‘‘(8) the fifth paragraph (lettered (c)) of such section 19 is repealed; ‘‘(9) subparagraph (2) of the sixth paragraph of such section 19 (as added by the first section of this Act) is amended by striking out ‘and a member bank in a central reserve city may hold and maintain the re- serve balances which are in effect under this section for member banks described in paragraph (a) or (b),’; ‘‘(10) the seventh paragraph of such section 19 is amended by striking out clauses (1), (2), (3), and (4) and inserting in lieu thereof the following: ‘(1) by member banks in reserve cities, (2) by member banks not in reserve cities, or (3) by all member banks’; and ‘‘(11) the seventh paragraph of such section is fur- ther amended by striking out ‘and central reserve cit- ies’.’’ § 142. Banks in reserve cities; reserves National banking associations located in re- serve cities or central reserve cities shall main- tain reserves provided for in section 462 of this title for banks so located. (R.S. § 5191 (part); Dec. 23, 1913, ch. 6, §§ 19, 27, 38 Stat. 270, 274; Aug. 4, 1914, ch. 225, 38 Stat. 682; Aug. 15, 1914, ch. 252, 38 Stat. 691; June 21, 1917, ch. 32, § 10, 40 Stat. 239.) Editorial Notes REFERENCES IN TEXT Section 462 of this title, referred to in text, was omit- ted from the Code. See section 461 of this title. CODIFICATION R.S. § 5191 derived from act June 3, 1864, ch. 106, § 31, 13 Stat. 108, which was the National Bank Act, and act Mar. 1, 1872, ch. 22, 17 Stat. 32. See section 38 of this title. Some of the other provisions of R.S. § 5191 were classi- fied to section 141 of this title prior to its omission from the Code, some are classified to section 143 of this title, and some were not included in the Code. Statutory Notes and Related Subsidiaries TERMINATION OF CENTRAL RESERVE CITIES Central reserve cities terminated, see section 3(b) of Pub. L. 86–114 set out as a note under former section 141 of this title. § 143. Banks in Alaska and insular possessions; lawful money reserves Every national banking association located in Alaska or in a dependency or insular possession or any part of the United States outside of the continental United States, and not a member of the Federal reserve system, shall at all times have on hand in lawful money of the United States an amount equal to at least 15 percent of the aggregate amount of its deposits in all re- spects. Whenever the lawful money of any such association shall fall below 15 percent of its de- posits such association shall not increase its li- abilities by making any new loans or discounts other than by discounting or purchasing bills of exchange payable at sight nor make any divi- dends of its profits until the required proportion between the aggregate amount of its deposits and its lawful money of the United States has been restored. And the Comptroller of the Cur- rency shall notify any such association whose lawful money reserve shall be below the amount required to be kept on hand to make good such reserve, and if such association shall fail for thirty days thereafter so to make good its law- ful money the Comptroller may, with the con- currence of the Secretary of the Treasury, ap- point a receiver to wind up the business of the association as provided in section 192 of this title. (R.S. § 5191 (part).) Editorial Notes CODIFICATION R.S. § 5191 derived from act June 3, 1864, ch. 106, § 31, 13 Stat. 108, which was the National Bank Act, and act Mar. 1, 1872, ch. 22, 17 Stat. 32. See section 38 of this title. Some of the other provisions of R.S. § 5191 were classi- fied to section 141 of this title prior to its omission from the Code, some are classified to section 142 of this title, and some were not included in the Code. Executive Documents EXCEPTION AS TO TRANSFER OF FUNCTIONS Functions vested by any provision of law in Comp- troller 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. § 144. Certain balances counted toward reserves in dependencies and insular possessions Four-fifths of the reserve of 15 per centum which a national bank located in a dependency or insular possession or any part of the United States outside of the continental United States, and not a member of the Federal Reserve Sys- tem, is required to keep, may consist of balances due such bank from associations approved by the Comptroller of the Currency and located in any one of the reserve cities as now or hereafter defined by law or designated by the Board of Governors of the Federal Reserve System. (R.S. § 5192; July 1, 1952, ch. 536, 66 Stat. 314; Pub. L. 86–70, § 7, June 25, 1959, 73 Stat. 142; Pub. L. 86–114, § 3(b)(3), July 28, 1959, 73 Stat. 263.) Page 59 TITLE 12—BANKS AND BANKING § 161 Editorial Notes CODIFICATION R.S. § 5192 derived from act June 3, 1864, ch. 106, § 31, 13 Stat. 108, which was the National Bank Act. See sec- tion 38 of this title. AMENDMENTS 1959—Pub. L. 86–114 struck out ‘‘central reserve or’’ before ‘‘reserve cities’’. Pub. L. 86–70 struck out ‘‘in Alaska or’’ before ‘‘in a dependency’’. 1952—Act July 1, 1952, reduced the required amount of cash on hand from two-fifths to one-fifth of the re- quired reserve of 15 per centum. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1959 AMENDMENT Amendment by Pub. L. 86–114 effective three years after July 28, 1959, see section 3(b) of Pub. L. 86–114, set out as a Central Reserve and Reserve Cities note under former section 141 of this title. Executive Documents EXCEPTION AS TO TRANSFER OF FUNCTIONS Functions vested by any provision of law in Comp- troller 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. §§ 145, 146. Repealed. Pub. L. 97–258, § 5(b), Sept. 13, 1982, 96 Stat. 1068 Section 145, act July 14, 1890, ch. 708, § 2, 26 Stat. 289, authorized counting of treasury notes held by national banking associations as part of their lawful reserve. Section 146, act July 12, 1882, ch. 290, § 12, 22 Stat. 165, related to holding of gold and silver certificates by na- tional banking associations. SUBCHAPTER IX—FORMATION OF ASSOCIATIONS TO ISSUE GOLD NOTES §§ 151 to 153. Repealed. Pub. L. 103–325, title VI, § 602(e)(22), (23), (f)(7), Sept. 23, 1994, 108 Stat. 2292, 2293 Section 151, R.S. § 5185; Jan. 19, 1875, ch. 19, 18 Stat. 302, related to organization of associations to issue gold notes. Section 152, R.S. § 5186, related to mandatory estab- lishment of lawful money reserves by associations issuing gold notes and reception by such associations of gold notes of other associations in payment of debts. Section 153, act Feb. 14, 1880, ch. 25, 21 Stat. 66, re- lated to conversion of gold banks into currency banks. SUBCHAPTER X—BANK EXAMINATIONS; REPORTS § 161. Reports to Comptroller of the Currency (a) Reports of condition; form; contents; date of making; publication Every association shall make reports of condi- tion to the Comptroller of the Currency in ac- cordance with the Federal Deposit Insurance Act [12 U.S.C. 1811 et seq.]. The Comptroller of the Currency may call for additional reports of condition, in such form and containing such in- formation as he may prescribe, on dates to be fixed by him, and may call for special reports from any particular association whenever in his judgment the same are necessary for his use in the performance of his supervisory duties. Each report of condition shall contain a declaration by the president, a vice president, the cashier, or by any other officer designated by the board of directors of the bank to make such declara- tion, that the report is true and correct to the best of his knowledge and belief. The correctness of the report of condition shall be attested by the signatures of at least three of the directors of the bank other than the officer making such declaration, with the declaration that the report has been examined by them and to the best of their knowledge and belief is true and correct. Each report shall exhibit in detail and under ap- propriate heads the resources and liabilities of the association at the close of business on any past day specified by the Comptroller, and shall be transmitted to the Comptroller within the period of time specified by the Comptroller. Spe- cial reports called for by the Comptroller need contain only such information as is specified by the Comptroller in his request therefor, and pub- lication of such reports need be made only if di- rected by the Comptroller. (b) Payment of dividends Every association shall make to the Comp- troller reports of the payment of dividends, in- cluding advance reports of dividends proposed to be declared or paid in such cases and under such conditions as the Comptroller deems necessary to carry out the purposes of the laws relating to national banking associations in such form and at such times as he may require. (c) Reports of affiliates; form; contents; date of making; publication; penalties Each national banking association shall ob- tain from each of its affiliates other than mem- ber banks and furnish to the Comptroller of the Currency not less than four reports during each year, in such form as the Comptroller may pre- scribe, verified by the oath or affirmation of the president or such other officer as may be des- ignated by the board of directors of such affil- iate to verify such reports, disclosing the infor- mation hereinafter provided for as of dates iden- tical with those for which the Comptroller shall during such year require the reports of the con- dition of the association. Each such report of an affiliate shall be transmitted to the Comptroller at the same time as the corresponding report of the association, except that the Comptroller may, in his discretion, extend such time for good cause shown. Each such report shall con- tain such information as in the judgment of the Comptroller of the Currency shall be necessary to disclose fully the relations between such affil- iate and such bank and to enable the Comp- troller to inform himself as to the effect of such relations upon the affairs of such bank. The Comptroller shall also have power to call for ad- ditional reports with respect to any such affil- iate whenever in his judgment the same are nec- essary in order to obtain a full and complete knowledge of the conditions of the association with which it is affiliated. Such additional re- ports shall be transmitted to the Comptroller of the Currency in such form as he may prescribe. (R.S. § 5211; Feb. 27, 1877, ch. 69, § 1, 19 Stat. 252; Dec. 28, 1922, ch. 18, 42 Stat. 1067; Feb. 25, 1927, ch. 191, § 13, 44 Stat. 1232; June 16, 1933, ch. 89,