12 U.S.C. § 337 — Repealed. Pub. L. 89–485, § 13(g), July 1,

Page 118 TITLE 12—BANKS AND BANKING § 335 (Dec. 23, 1913, ch. 6, § 9 (pars.), as added June 16, 1933, ch. 89, § 5(c), 48 Stat. 165; amended Aug. 23, 1935, ch. 614, title II, § 203(a), 49 Stat. 704; Pub. L. 89–485, § 13(f), July 1, 1966, 80 Stat. 243.) Editorial Notes REFERENCES IN TEXT This subchapter, referred to in text, was in the origi- nal ‘‘this section’’, meaning section 9 of act Dec. 23, 1913, which is classified generally to this subchapter (§ 321 et seq.). CODIFICATION Section is comprised of the seventeenth to nineteenth pars. of act Dec. 23, 1913, as amended. These pars. con- stituted pars. fifteen to seventeen of section 9 in 1933 (48 Stat. 165), became pars. sixteen to eighteen in 1935 (49 Stat. 704), and became pars. seventeen to nineteen in 1950 (64 Stat. 458). For further details, see Codifica- tion notes set out under sections 321 and 329a of this title. AMENDMENTS 1966—Pub. L. 89–485 struck out last sentence of third par. stating that term ‘‘affiliate’’ shall include holding company affiliates as well as other affiliates for the purposes of such par. and preceding two pars. 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. § 335. Dealing in investment securities; limita- tions and conditions State member banks shall be subject to the same limitations and conditions with respect to the purchasing, selling, underwriting, and hold- ing of investment securities and stock as are ap- plicable in the case of national banks under paragraph ‘‘Seventh’’ of section 24 of this title. This section shall not apply to any interest held by a State member bank in accordance with sec- tion 24a of this title and subject to the same conditions and limitations provided in such sec- tion. (Dec. 23, 1913, ch. 6, § 9 (par.), as added June 16, 1933, ch. 89, § 5(c), 48 Stat. 165; amended Pub. L. 106–102, title I, § 121(d)(2), Nov. 12, 1999, 113 Stat. 1381.) Editorial Notes CODIFICATION Section is comprised of the twentieth par. of section 9 of act Dec. 23, 1913, as amended. The twentieth par. constituted the eighteenth par. of section 9 in 1933 (48 Stat. 16), became the nineteenth par. in 1935 (49 Stat. 704), and became the twentieth par. in 1950 (64 Stat. 458). For further details, see Codification notes set out under sections 321 and 329a of this title. AMENDMENTS 1999—Pub. L. 106–102 inserted at end ‘‘This section shall not apply to any interest held by a State member bank in accordance with section 24a of this title and subject to the same conditions and limitations pro- vided in such section.’’ Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1999 AMENDMENT Amendment by Pub. L. 106–102 effective 120 days after Nov. 12, 1999, see section 161 of Pub. L. 106–102, set out as a note under section 24 of this title. § 336. Certificates of stock; representation of stock of other corporations After August 23, 1935, no certificate evidencing the stock of any State member bank shall bear any statement purporting to represent the stock of any other corporation, except a member bank or a corporation engaged on June 16, 1934, in holding the bank premises of such member bank, nor shall the ownership, sale, or transfer of any certificate representing the stock of any State member bank be conditioned in any man- ner whatsoever upon the ownership, sale, or transfer of a certificate representing the stock of any other corporation, except a member bank or a corporation engaged on June 16, 1934 in holding the bank premises of such member bank: Provided, That this subchapter shall not operate to prevent the ownership, sale, or trans- fer of stock of any other corporation being con- ditioned upon the ownership, sale, or transfer of a certificate representing stock of a State mem- ber bank. (Dec. 23, 1913, ch. 6, § 9 (par.), as added June 16, 1933, ch. 89, § 5(c), 48 Stat. 165; amended Aug. 23, 1935, ch. 614, title III, § 310(b), 49 Stat. 710.) Editorial Notes REFERENCES IN TEXT This subchapter, referred to in text, was in the origi- nal ‘‘this section’’, meaning section 9 of act Dec. 23, 1913, which is classified generally to this subchapter (§ 321 et seq.). CODIFICATION Section is comprised of the twenty-first par. of sec- tion 9 of act Dec. 23, 1913, as amended. The twenty-first par. constituted the nineteenth par. of section 9 in 1933 (48 Stat. 165), became the twentieth par. in 1935 (49 Stat. 704), and became the twenty-first par. in 1950 (64 Stat. 458). For further details, see Codification notes set out under sections 321 and 329a of this title. AMENDMENTS 1935—Act Aug. 23, 1935, among other changes, inserted proviso. § 337. Repealed. Pub. L. 89–485, § 13(g), July 1, 1966, 80 Stat. 243 Section, act Dec. 23, 1913, ch. 6, § 9 (par.), as added June 16, 1933, ch. 89, § 5(c), 48 Stat. 166, required agree- ments of State member banks with holding company affiliates to be subject to voting restrictions and to provide for forfeiture of membership on failure to file agreement. This section was comprised of the twenty-second par. of section 9 of act Dec. 23, 1913, as amended. The twen- ty-second par. constituted the twentieth par. of section 9 when added in 1933, became the twenty-first par. in 1935 (49 Stat. 704), and became the twenty-second par. in 1950 (64 Stat. 458). For further details, see Codifica- tion notes set out under sections 321 and 329a of this title. Page 119 TITLE 12—BANKS AND BANKING § 338a § 338. Examination of affiliates; forfeiture of membership on refusal of affiliate to give in- formation or pay expense In connection with examinations of State member banks, examiners selected or approved by the Board of Governors of the Federal Re- serve System shall make such examinations of the affairs of all affiliates of such banks as shall be necessary to disclose fully the relations be- tween such banks and their affiliates and the ef- fect of such relations upon the affairs of such banks. The expense of examination of affiliates of any State member bank may, in the discre- tion of the Board of Governors of the Federal Reserve System, be assessed against such bank and, when so assessed, shall be paid by such bank. In the event of the refusal to give any in- formation requested in the course of the exam- ination of any such affiliate, or in the event of the refusal to permit such examination, or in the event of the refusal to pay any expenses so assessed, the Board of Governors of the Federal Reserve System may, in its discretion, require any or all State member banks affiliated with such affiliate to surrender their stock in the Federal Reserve bank and to forfeit all rights and privileges of membership in the Federal Re- serve System, as provided in this subchapter. (Dec. 23, 1913, ch. 6, § 9 (par.), as added June 16, 1933, ch. 89, § 5(c), 48 Stat. 166; amended Aug. 23, 1935, ch. 614, title II, § 203(a), 49 Stat. 704.) Editorial Notes REFERENCES IN TEXT This subchapter, referred to in text, was in the origi- nal ‘‘this section’’, meaning section 9 of act Dec. 23, 1913, which is classified generally to this subchapter (§ 321 et seq.). CODIFICATION Section is comprised of the twenty-second par. of sec- tion 9 of act Dec. 23, 1913, as amended. The twenty-sec- ond par. constituted the twenty-first par. of section 9 in 1933 (48 Stat. 166), became the twenty-second par. in 1935 (49 Stat. 704), and became the twenty-third par. in 1950 (64 Stat. 458), and became the twenty-second par. in 1966 (80 Stat. 243). For further details, see Codifica- tion notes set out under sections 321 and 329a 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. § 338a. Investments to promote public welfare and community development; limitation on investments A State member bank may make investments directly or indirectly, each of which is designed primarily to promote the public welfare, includ- ing the welfare of low- and moderate-income communities or families (such as by providing housing, services, or jobs), to the extent permis- sible under State law. A State member bank shall not make any such investment if the in- vestment would expose the State member bank to unlimited liability. The Board shall limit a State member bank’s investment in any 1 project and a State member bank’s aggregate in- vestments under this paragraph. The aggregate amount of investments of any State member bank under this paragraph may not exceed an amount equal to the sum of 5 percent of the State member bank’s capital stock actually paid in and unimpaired and 5 percent of the State member bank’s unimpaired surplus, unless the Board determines, by order, that a higher amount will pose no significant risk to the af- fected deposit insurance fund; and the State member bank is adequately capitalized. In no case shall the aggregate amount of investments of any State member bank under this paragraph exceed an amount equal to the sum of 15 percent of the State member bank’s capital stock actu- ally paid in and unimpaired and 15 percent of the State member bank’s unimpaired surplus. The foregoing standards and limitations apply to investments under this paragraph made by a State member bank directly and by its subsidi- aries. (Dec. 23, 1913, ch. 6, § 9(23), formerly § 9 (par.), as added Pub. L. 102–485, § 6(b), Oct. 23, 1992, 106 Stat. 2774; amended Pub. L. 104–208, div. A, title II, § 2704(d)(8), Sept. 30, 1996, 110 Stat. 3009–489; Pub. L. 109–171, title II, § 2102(b), Feb. 8, 2006, 120 Stat. 9; Pub. L. 109–173, § 9(b), Feb. 15, 2006, 119 Stat. 3616; renumbered § 9(23) and amended Pub. L. 109–351, title III, § 305(b), Oct. 13, 2006, 120 Stat. 1971; Pub. L. 110–289, div. B, title V, § 2503(b), July 30, 2008, 122 Stat. 2857.) Editorial Notes CODIFICATION Section is comprised of par. (23) (the twenty-third par.) of section 9 of act Dec. 23, 1913, as amended. For further details, see Codification note set out under sec- tion 321 of this title. AMENDMENTS 2008—Pub. L. 110–289, which directed substitution of ‘‘is designed primarily to promote the public welfare, including the welfare of’’ for ‘‘promotes the public wel- fare by benefitting primarily’’ in first sentence, was ex- ecuted by making the substitution for ‘‘promotes the public welfare by benefiting primarily’’ to reflect the probable intent of Congress. 2006—Pub. L. 109–351 amended section generally. Prior to amendment, section read as follows: ‘‘State member banks may make investments designed primarily to promote the public welfare, including the welfare of low- and moderate-income communities or families (such as by providing housing, services, or jobs), to the extent permissible under State law, and subject to such restrictions and requirements as the Board of Gov- ernors of the Federal Reserve System may prescribe by regulation or order. A bank shall not make any such investment if the investment would expose the bank to unlimited liability. The Board shall limit a bank’s in- vestments in any 1 project and bank’s aggregate invest- ments under this paragraph. A bank’s aggregate invest- ments under this paragraph shall not exceed an amount equal to the sum of 5 percent of the bank’s capital stock actually paid in and unimpaired and 5 percent of the bank’s unimpaired surplus fund, unless the Board determines by order that the higher amount will pose no significant risk to the Deposit Insurance Fund, and the bank is adequately capitalized. In no case shall a bank’s aggregate investments under this paragraph ex- ceed an amount equal to the sum of 10 percent of the bank’s capital stock actually paid in and unimpaired and 10 percent of the bank’s unimpaired surplus fund.’’