§ 375. — Purchases from directors; sales to directors.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC375]
TITLE 12--BANKS AND BANKING
CHAPTER 3--FEDERAL RESERVE SYSTEM
SUBCHAPTER X--POWERS AND DUTIES OF MEMBER BANKS
Sec. 375. Purchases from directors; sales to directors
Any member bank may contract for, or purchase from, any of its
directors or from any firm of which any of its directors is a member,
any securities or other property, when (and not otherwise) such purchase
is made in the regular course of business upon terms not less favorable
to the bank than those offered to others, or when such purchase is
authorized by a majority of the board of directors not interested in the
sale of such securities or property, such authority to be evidenced by
the affirmative vote or written assent of such directors: Provided,
however, That when any director, or firm of which any director is a
member, acting for or on behalf of others, sells securities or other
property to a member bank, the Board of Governors of the Federal Reserve
System by regulation may, in any or all cases, require a full disclosure
to be made, on forms to be prescribed by it, of all commissions or other
considerations received, and whenever such director or firm, acting in
his or its own behalf, sells securities or other property to the bank
the Board of Governors of the Federal Reserve System, by regulation, may
require a full disclosure of all profit realized from such sale.
Any member bank may sell securities or other property to any of its
directors, or to a firm of which any of its directors is a member, in
the regular course of business on terms not more favorable to such
director or firm than those offered to others, or when such sale is
authorized by a majority of the board of directors of a member bank to
be evidenced by their affirmative vote or written assent: Provided,
however, That nothing in this section contained shall be construed as
authorizing member banks to purchase or sell securities or other
property which such banks are not otherwise authorized by law to
purchase or sell.
(Dec. 23, 1913, ch. 6, Sec. 22(d), as added Sept. 26, 1918, ch. 177,
Sec. 5, 40 Stat. 971; amended Aug. 23, 1935, ch. 614, title II,
Sec. 203(a), 49 Stat. 704.)
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.
Section Referred to in Other Sections
This section is referred to in sections 503, 504 of this title.
