§ 27. — Certificate of authority to commence banking.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC27]
TITLE 12--BANKS AND BANKING
CHAPTER 2--NATIONAL BANKS
SUBCHAPTER I--ORGANIZATION AND GENERAL PROVISIONS
Sec. 27. Certificate of authority to commence banking
(a) If, upon a careful examination of the facts so reported, and of
any other facts which may come to the knowledge of the comptroller,
whether by means of a special commission appointed by him for the
purpose of inquiring into the condition of such association, or
otherwise, it appears that such association is lawfully entitled to
commence the business of banking, the comptroller shall give to such
association a certificate, under his hand and official seal, that such
association has complied with all the provisions required to be complied
with before commencing the business of banking, and that such
association is authorized to commence such business. But the comptroller
may withhold from an association his certificate authorizing the
commencement of business, whenever he has reason to suppose that the
shareholders have formed the same for any other than the legitimate
objects contemplated by title 62 of the Revised Statutes. A National
Bank Association, to which the Comptroller of the Currency has
heretofore issued or hereafter issues such certificate, is not illegally
constituted solely because its operations are or have been required by
the Comptroller of the Currency to limited to those of a trust company
and activities related thereto.
(b)(1) The Comptroller of the Currency may also issue a certificate
of authority to commence the business of banking pursuant to this
section to a national banking association which is owned exclusively
(except to the extent directors' qualifying shares are required by law)
by other depository institutions or depository institution holding
companies and is organized to engage exclusively in providing services
to or for other depository institutions, their holding companies, and
the officers, directors, and employees of such institutions and
companies, and in providing correspondent banking services at the
request of other depository institutions or their holding companies
(also referred to as a ``banker's bank'').
(2) Any national banking association chartered pursuant to paragraph
(1) shall be subject to such rules, regulations, and orders as the
Comptroller deems appropriate, and, except as otherwise specifically
provided in such rules, regulations, or orders, shall be vested with or
subject to the same rights, privileges, duties, restrictions, penalties,
liabilities, conditions, and limitations that would apply under the
national banking laws to a national bank.
(R.S. Sec. 5169; Pub. L. 95-630, title XV, Sec. 1504, Nov. 10, 1978, 92
Stat. 3713; Pub. L. 96-221, title VII, Sec. 712(a), (c), Mar. 31, 1980,
94 Stat. 189, 190; Pub. L. 97-320, title IV, Sec. 404(a), Oct. 15, 1982,
96 Stat. 1511; Pub. L. 103-325, title III, Sec. 322(a)(2), Sept. 23,
1994, 108 Stat. 2227.)
References in Text
Title 62 of the Revised Statutes, referred to in subsec. (a), was in
the original ``this Title'' meaning title LXII of the Revised Statutes,
consisting of R.S. Secs. 5133 to 5244, which are classified to sections
21, 22 to 24a, 25a, 26, 27, 29, 35 to 37, 39, 43, 52, 53, 55 to 57, 59
to 62, 66, 71, 72 to 76, 81, 83 to 86, 90, 91, 93, 93a, 94, 141 to 144,
161, 164, 181, 182, 192 to 194, 196, 215c, 481 to 485, 501, 541, 548,
and 582 of this title. See, also, sections 8, 333, 334, 475, 656, 709,
1004, and 1005 of Title 18, Crimes and Criminal Procedure. For complete
classification of R.S. Secs. 5133 to 5244 to the Code, see Tables.
Codification
R.S. Sec. 5169 derived from act June 3, 1864, ch. 106, Secs. 12, 18,
13 Stat. 102, 104, which was the National Bank Act. See section 38 of
this title.
Amendments
1994--Subsec. (b)(1). Pub. L. 103-325, Sec. 322(a)(2)(A), inserted
``or depository institution holding companies'' after ``by other
depository institutions''.
Pub. L. 103-325, Sec. 322(a)(2)(B), which directed substitution of
``services to or for other depository institutions, their holding
companies, and the officers, directors, and employees of such
institutions and companies, and in providing correspondent banking
services at the request of other depository institutions or their
holding companies (also referred to as a `banker's bank')'' for
``services for other depository institutions and their officers,
directors and employees'', was executed by making the substitution for
``services for other depository institutions and their officers,
directors, and employees'' to reflect the probable intent of Congress.
1982--Pub. L. 97-320 designated existing provisions as subsec. (a)
and added subsec. (b).
1980--Pub. L. 96-221, Sec. 712(a), (c), temporarily inserted
provisions relating to treatment of national banking associations as
additional banks within the contemplation of section 1842 of this title.
See Termination Date of 1980 Amendment note below.
1978--Pub. L. 95-630 inserted provision that a National Bank
Association, to which the Comptroller of the Currency has heretofore
issued or hereafter issues such certificate, is not illegally
constituted solely because its operations are or have been required by
the Comptroller of the Currency to be limited to those of a trust
company and activities related thereto.
Termination Date of 1980 Amendment
Section 712(c) of Pub. L. 96-221 provided that: ``The amendments
made by this section [amending this section and section 1842 of this
title] are hereby repealed on October 1, 1981.''
Effective Date of 1978 Amendment
Section 1505 of Pub. L. 95-630 provided that: ``This title [amending
this section and sections 1715z-10 and 2902 of this title and amending
provisions set out as a note under section 1666f of Title 15, Commerce
and Trade] shall take effect upon enactment [Nov. 10, 1978].''
Exception as to Transfer of Functions
Functions vested by any provision of law in Comptroller 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.
Section Referred to in Other Sections
This section is referred to in section 1464 of this title.
