§ 371b. — Rate of interest on time deposits; payment of time deposits before maturity; waiver of notice requirements for withdrawal of savings deposits.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC371b]
TITLE 12--BANKS AND BANKING
CHAPTER 3--FEDERAL RESERVE SYSTEM
SUBCHAPTER X--POWERS AND DUTIES OF MEMBER BANKS
Sec. 371b. Rate of interest on time deposits; payment of time
deposits before maturity; waiver of notice requirements for
withdrawal of savings deposits
The Board may from time to time, after consulting with the Board of
Directors of the Federal Deposit Insurance Corporation and the Federal
Home Loan Bank Board, prescribe rules governing the advertisement of
interest on deposits by member banks on time and savings deposits. The
provisions of this section shall not apply to any deposit which is
payable only at an office of a member bank located outside of the States
of the United States and the District of Columbia. During the period
commencing on October 15, 1962, and ending on October 15, 1968, the
provisions of this paragraph shall not apply to the rate of interest
which may be paid by member banks on time deposits of foreign
governments, monetary and financial authorities of foreign governments
when acting as such, or international financial institutions of which
the United States is a member.
(Dec. 23, 1913, ch. 6, Sec. 19(j), formerly Sec. 19 (par. 13), as added
June 16, 1933, ch. 89, Sec. 11(b), 48 Stat. 182; amended Aug. 23, 1935,
ch. 614, title III, Sec. 324(c), 49 Stat. 714; Pub. L. 87-827, Sec. 1,
Oct. 15, 1962, 76 Stat. 953; Pub. L. 89-79, Sec. 1, July 21, 1965, 79
Stat. 244; renumbered Sec. 19(j) and amended Pub. L. 89-597, Sec. 2(b),
(c), Sept. 21, 1966, 80 Stat. 824; Pub. L. 90-505, Sec. 2(a), Sept. 21,
1968, 82 Stat. 856; Pub. L. 96-221, title II, Sec. 207(b)(4)-(6), Mar.
31, 1980, 94 Stat. 144.)
Amendments
1980--Pub. L. 96-221 struck out provisions relating to payment of
interest on deposits, prescribing of different limitations by the Board
for different classes of deposits, and payment of time deposits before
maturity.
1968--Pub. L. 90-505 gave Board power to prescribe rules governing
the payment and advertising of interest on deposits.
1966--Pub. L. 89-597, Sec. 2(c), made authority of Board to
prescribe maximum permissible rates of interest that may be paid by
member banks on time and savings deposits discretionary rather than
mandatory, required prior consultations with the FDIC Board and the FHLB
Board, authorized different rate limitations for different classes of
deposits, for deposits of different amounts, or according to such other
reasonable bases as the Board may deem desirable in the public interest,
and struck out provision for rate limitation according to the varying
discount rates of member banks in the several Federal Reserve districts.
1965--Pub. L. 89-79 extended until Oct. 15, 1968, the period during
which the provisions of this paragraph do not apply to the rate of
interest payable by member banks on time deposits of foreign
governments, monetary and financial authorities of foreign governments
when acting as such, or international financial institutions of which
the United States is a member.
1962--Pub. L. 87-827 inserted sentence making this paragraph
inapplicable, during the period commencing on October 15, 1962, and
ending upon the expiration of three years after such date, to the rate
of interest which may be paid by member banks on time deposits of
foreign governments, monetary and financial authorities of foreign
governments when acting as such, or international financial institutions
of which the United States is a member.
1935--Act Aug. 23, 1935, among other changes, inserted ``except upon
such conditions and in accordance with such rules and regulations as may
be prescribed by the said Board'' to second sentence and proviso.
Effective Date of 1980 Amendment
Section 207(b) of Pub. L. 96-221 provided in part that the amendment
made by that section is effective 6 years after Mar. 31, 1980.
Effective and Termination Dates of 1966 Amendment
Section 7 of Pub. L. 89-597, as amended, formerly set out as an
Effective and Termination Dates of 1966 Amendment note under section 461
of this title (which provided in part that amendment of this section by
section 2(c) of Pub. L. 89-597 was effective only to Dec. 15, 1980, and
that on Dec. 15, 1980, this section was amended to read as it would
without the amendment by section 2(c) of Pub. L. 89-597), was repealed
by section 207(a) of Pub. L. 96-221.
Transfer of Functions
Federal Home Loan Bank Board abolished and functions transferred,
see sections 401 to 406 of Pub. L. 101-73, set out as a note under
section 1437 of this title.
Time Deposits; Interest Rates, Limitation
Pub. L. 93-123, Oct. 15, 1973, 87 Stat. 448, provided that in
carrying out the Act of September 21, 1966 (Pub. L. 89-597) [enacting
section 1425b of this title, amending sections 355, 371b, 461, and 1828
of this title and section 771 of former Title 31, repealing section
462a-1 of this title, and enacting provisions set out as notes under
section 461 of this title] and other provisions of law, the Secretary of
the Treasury, the Board of Governors of the Federal Reserve System, the
Board of Directors of the Federal Deposit Insurance Corporation, and the
Federal Home Loan Bank Board take action to limit rates of interest or
dividends paid on time deposits of less than $100,000 by institutions
regulated by them, prior to repeal by Pub. L. 96-221, title II,
Sec. 207(b)(13), Mar. 31, 1980, 94 Stat. 144, eff. 6 years after Mar.
31, 1980.
Section Referred to in Other Sections
This section is referred to in sections 248, 1424, 1828, 3105, 3502
of this title.
