§ 330. — Laws applicable on becoming members; discounts for State banks.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC330]
TITLE 12--BANKS AND BANKING
CHAPTER 3--FEDERAL RESERVE SYSTEM
SUBCHAPTER VIII--STATE BANKS AS MEMBERS OF SYSTEM
Sec. 330. Laws applicable on becoming members; discounts for
State banks
Banks becoming members of the Federal reserve system under authority
of this subchapter shall be subject to the provisions of said sections
and to those of this chapter which relate specifically to member banks,
but shall not be subject to examination under the provisions of sections
481 and 482 of this title. Subject to the provisions of this chapter and
to the regulations of the board made pursuant thereto, any bank becoming
a member of the Federal reserve system shall retain its full charter and
statutory rights as a State bank or trust company, and may continue to
exercise all corporate powers granted it by the State in which it was
created, and shall be entitled to all privileges of member banks, except
that the Board of Governors of the Federal Reserve System may limit the
activities of State member banks and subsidiaries of State member banks
in a manner consistent with section 1831a of this title. No Federal
reserve bank shall be permitted to discount for any State bank or trust
company notes, drafts, or bills of exchange of any one borrower who is
liable for borrowed money to such State bank or trust company in an
amount greater than that which could be borrowed lawfully from such
State bank or trust company were it a national banking association. The
Federal reserve bank, as a condition of the discount of notes, drafts,
and bills of exchange for such State bank or trust company, shall
require a certificate or guaranty to the effect that the borrower is not
liable to such bank in excess of the amount provided by this subchapter,
and will not be permitted to become liable in excess of this amount
while such notes, drafts, or bills of exchange are under discount with
the Federal reserve bank.
(Dec. 23, 1913, ch. 6, Sec. 9 (par.), as added June 21, 1917, ch. 32,
Sec. 3, 40 Stat. 234; amended July 1, 1922, ch. 274, 42 Stat. 821; Pub.
L. 102-242, title III, Sec. 303(b), Dec. 19, 1991, 105 Stat. 2353.)
References in Text
This subchapter, referred to in text, was in the original ``this
section'', meaning section 9 of act Dec. 23, 1913, which is classified
generally to this subchapter (Sec. 321 et seq.).
Codification
Section is comprised of the thirteenth par. of section 9 of act Dec.
23, 1913, as amended. The thirteenth par. constituted the tenth par. of
section 9 in 1917 (40 Stat. 232), became the eleventh par. in 1927 (44
Stat. 1229), became the twelfth par. in 1935 (49 Stat. 704), and became
the thirteenth par. in 1950 (64 Stat. 458). For further details, see
Codification note set out under sections 321 and 329 of this title.
Amendments
1991--Pub. L. 102-242 substituted ``, except that the Board of
Governors of the Federal Reserve System may limit the activities of
State member banks and subsidiaries of State member banks in a manner
consistent with section 1831a of this title. No Federal reserve bank''
for ``: Provided, however, That no Federal reserve bank''.
