§ 324. — Laws applicable on becoming members.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC324]
TITLE 12--BANKS AND BANKING
CHAPTER 3--FEDERAL RESERVE SYSTEM
SUBCHAPTER VIII--STATE BANKS AS MEMBERS OF SYSTEM
Sec. 324. Laws applicable on becoming members
All banks admitted to membership under authority of this section
shall be required to comply with the reserve and capital requirements of
this chapter, to conform to those provisions of law imposed on national
banks which prohibit such banks from lending on or purchasing their own
stock and which relate to the withdrawal or impairment of their capital
stock, and to conform to the provisions of sections 56 and 60(b) of this
title with respect to the payment of dividends; except that any
reference in any such provision to the Comptroller of the Currency shall
be deemed for the purposes of this sentence to be a reference to the
Board of Governors of the Federal Reserve System. Such banks and the
officers, agents, and employees thereof shall also be subject to the
provisions of and to the penalties prescribed by sections 334, 656, and
1005 of title 18, and shall be required to make reports of condition and
of the payment of dividends to the Federal Reserve bank of which they
become a member. Not less than three of such reports shall be made
annually on call of the Federal Reserve bank on dates to be fixed by the
Board of Governors of the Federal Reserve System. Any bank which (A)
maintains procedures reasonably adapted to avoid any inadvertent error
and, unintentionally and as a result of such an error, fails to make or
publish any report required under this paragraph, within the period of
time specified by the Board, or submits or publishes any false or
misleading report or information, or (B) inadvertently transmits or
publishes any report which is minimally late, shall be subject to a
penalty of not more than $2,000 for each day during which such failure
continues or such false or misleading information is not corrected. The
bank shall have the burden of proving that an error was inadvertent and
that a report was inadvertently transmitted or published late. Any bank
which fails to make or publish such reports within the period of time
specified by the Board, or submits or publishes any false or misleading
report or information, in a manner not described in the 2nd preceding
sentence shall be subject to a penalty of not more than $20,000 for each
day during which such failure continues or such false or misleading
information is not corrected. Notwithstanding the preceding sentence, if
any bank knowingly or with reckless disregard for the accuracy of any
information or report described in such sentence submits or publishes
any false or misleading report or information, the Board may assess a
penalty of not more than $1,000,000 or 1 percent of total assets of such
bank, whichever is less, per day for each day during which such failure
continues or such false or misleading information is not corrected. Any
penalty imposed under any of the 4 preceding sentences shall be assessed
and collected by the Board in the manner provided in subparagraphs (E),
(F), (G), and (I) of section 1818(i)(2) of this title (for penalties
imposed under such section) and any such assessment (including the
determination of the amount of the penalty) shall be subject to the
provisions of such section. Any bank against which any penalty is
assessed under this subsection shall be afforded an agency hearing if
such bank submits a request for such hearing within 20 days after the
issuance of the notice of assessment. Section 1818(h) of this title
shall apply to any proceeding under this paragraph. Such reports of
condition shall be in such form and shall contain such information as
the Board of Governors of the Federal Reserve System may require.
(Dec. 23, 1913, ch. 6, Sec. 9 (par.), 38 Stat. 259; June 21, 1917, ch.
32, Sec. 3, 40 Stat. 233; Aug. 23, 1935, ch. 614, title III, Sec. 320,
49 Stat. 713; Sept. 3, 1954, ch. 1263, Sec. 27, 68 Stat. 1236; Pub. L.
86-230, Sec. 21(b), Sept. 8, 1959, 73 Stat. 466; Pub. L. 101-73, title
IX, Sec. 911(d), Aug. 9, 1989, 103 Stat. 480; Pub. L. 103-325, title
III, Sec. 308(c), Sept. 23, 1994, 108 Stat. 2218.)
Codification
Section is comprised of the sixth par. of section 9 of act Dec. 23,
1913, as amended. The sixth par. constituted the fourth par. of section
9 in 1917 (40 Stat. 232), became the fifth par. in 1927 (44 Stat. 1229),
and became the sixth par. in 1950 (64 Stat. 458). For further details,
see Codification note set out under section 321 of this title.
Amendments
1994--Pub. L. 103-325 struck out before period at end ``and shall be
published by the reporting banks in such manner and in accordance with
such regulations as the said Board may prescribe''.
1989--Pub. L. 101-73 substituted provisions for different and
increasing levels of penalties, assessment and collection of penalties,
and agency hearings for provision that failure to make such reports
within ten days after the date they were called for would subject the
offending bank to a penalty of $100 a day for each day that it failed to
transmit such report, such penalty to have been collected by the Federal
Reserve bank by suit or otherwise.
1959--Pub. L. 86-230 required State member banks to comply with
section 60(b) of this title and inserted provisions requiring a
reference to the Comptroller of the Currency to be deemed a reference to
the Board of Governors of the Federal Reserve System.
1954--Act Sept. 3, 1954, substituted ``sections 334, 656, and 1005
of title 18'' for ``section 592 of this title'', and ``Board of
Governors of the Federal Reserve System'' for ``Federal Reserve Board''.
1935--Act Aug. 23, 1935 inserted last sentence of section.
Effective Date of 1989 Amendment
Amendment by Pub. L. 101-73 applicable with respect to reports filed
or required to be filed after Aug. 9, 1989, see section 911(i) of Pub.
L. 101-73, set out as a note under section 161 of this title.
Section Referred to in Other Sections
This section is referred to in section 3105 of this title.
