§ 371d. — Investment in bank premises or stock of corporation holding premises.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC371d]
TITLE 12--BANKS AND BANKING
CHAPTER 3--FEDERAL RESERVE SYSTEM
SUBCHAPTER X--POWERS AND DUTIES OF MEMBER BANKS
Sec. 371d. Investment in bank premises or stock of corporation
holding premises
(a) Conditions of investment
No national bank or State member bank shall invest in bank premises,
or in the stock, bonds, debentures, or other such obligations of any
corporation holding the premises of such bank, or make loans to or upon
the security of any such corporation--
(1) unless the bank receives the prior approval of the
Comptroller of the Currency (with respect to a national bank) or the
Board (with respect to a State member bank);
(2) unless the aggregate of all such investments and loans,
together with the amount of any indebtedness incurred by any such
corporation that is an affiliate of the bank, is less than or equal
to the amount of the capital stock of such bank; or
(3) unless--
(A) the aggregate of all such investments and loans,
together with the amount of any indebtedness incurred by any
such corporation that is an affiliate of the bank, is less than
or equal to 150 percent of the capital and surplus of the bank;
and
(B) the bank--
(i) has a CAMEL composite rating of 1 or 2 under the
Uniform Financial Institutions Rating System (or an
equivalent rating under a comparable rating system) as of
the most recent examination of such bank;
(ii) is well capitalized and will continue to be well
capitalized after the investment or loan; and
(iii) provides notification to the Comptroller of the
Currency (with respect to a national bank) or to the Board
(with respect to a State member bank) not later than 30 days
after making the investment or loan.
(b) Definitions
For purposes of this section--
(1) the term ``affiliate'' has the same meaning as in section
221a of this title; and
(2) the term ``well capitalized'' has the same meaning as in
section 1831o(b) of this title.
(Dec. 23, 1913, ch. 6, Sec. 24A, as added June 16, 1933, ch. 89,
Sec. 14, 48 Stat. 184; amended Aug. 23, 1935, ch. 614, title II,
Sec. 203(a), 49 Stat. 704; June 30, 1954, ch. 434, Sec. 2, 68 Stat. 358;
Pub. L. 104-208, div. A, title II, Sec. 2206, Sept. 30, 1996, 110 Stat.
3009-405.)
Amendments
1996--Pub. L. 104-208 inserted section catchline and amended text
generally. Prior to amendment, text read as follows: ``No national bank,
without the approval of the Comptroller of the Currency, and no State
member bank, without the approval of the Board of Governors of the
Federal Reserve System, shall (1) invest in bank premises, or in the
stock, bonds, debentures, or other such obligations of any corporation
holding the premises of such bank, or (2) make loans to or upon the
security of the stock of any such corporation, if the aggregate of all
such investments and loans, together with the amount of any indebtedness
incurred by any such corporation which is an affiliate of the bank, as
defined in section 221a of this title, will exceed the amount of the
capital stock of such bank.''
1954--Act June 30, 1954, inserted ``together with the amount of any
indebtedness incurred by any such corporation which is an affiliate of
the bank, as defined in section 221a of this title''.
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.
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.
