§ 374a. — Acting as agent for nonbanking borrower in making loans on securities to dealers in stocks, bonds, etc.; penalties.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC374a]
TITLE 12--BANKS AND BANKING
CHAPTER 3--FEDERAL RESERVE SYSTEM
SUBCHAPTER X--POWERS AND DUTIES OF MEMBER BANKS
Sec. 374a. Acting as agent for nonbanking borrower in making
loans on securities to dealers in stocks, bonds, etc.; penalties
No member bank shall act as the medium or agent of any nonbanking
corporation, partnership, association, business trust, or individual in
making loans on the security of stocks, bonds, and other investment
securities to brokers or dealers in stocks, bonds, and other investment
securities. Every violation of this provision by any member bank shall
be punishable by a fine of not more than $100 per day during the
continuance of such violation; and such fine may be collected, by suit
or otherwise, by the Federal reserve bank of the district in which such
member bank is located.
(Dec. 23, 1913, ch. 6, Sec. 19(d), formerly Sec. 19 (par. 7), as added
June 16, 1933, ch. 89, Sec. 11(a), 48 Stat. 181; renumbered Sec. 19(d),
Pub. L. 89-597, Sec. 2(b), Sept. 21, 1966, 80 Stat. 824.)
Codification
Section is comprised of subsec. (d), formerly seventh par., of
section 19 of act Dec. 23, 1913, as redesignated by Pub. L. 89-597.
Section Referred to in Other Sections
This section is referred to in sections 248, 1424, 1828, 3105 of
this title.
