§ 378. — Dealers in securities engaging in banking business; individuals or associations engaging in banking business; examinations and reports; 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: 12USC378]
TITLE 12--BANKS AND BANKING
CHAPTER 3--FEDERAL RESERVE SYSTEM
SUBCHAPTER X--POWERS AND DUTIES OF MEMBER BANKS
Sec. 378. Dealers in securities engaging in banking business;
individuals or associations engaging in banking business;
examinations and reports; penalties
(a) After the expiration of one year after June 16, 1933, it shall
be unlawful--
(1) For any person, firm, corporation, association, business
trust, or other similar organization, engaged in the business of
issuing, underwriting, selling, or distributing, at wholesale or
retail, or through syndicate participation, stocks, bonds,
debentures, notes, or other securities, to engage at the same time
to any extent whatever in the business of receiving deposits subject
to check or to repayment upon presentation of a passbook,
certificate of deposit, or other evidence of debt, or upon request
of the depositor: Provided, That the provisions of this paragraph
shall not prohibit national banks or State banks or trust companies
(whether or not members of the Federal Reserve System) or other
financial institutions or private bankers from dealing in,
underwriting, purchasing, and selling investment securities, or
issuing securities, to the extent permitted to national banking
associations by the provisions of section 24 of this title: Provided
further, That nothing in this paragraph shall be construed as
affecting in any way such right as any bank, banking association,
savings bank, trust company, or other banking institution, may
otherwise possess to sell, without recourse or agreement to
repurchase, obligations evidencing loans on real estate; or
(2) For any person, firm, corporation, association, business
trust, or other similar organization to engage, to any extent
whatever with others than his or its officers, agents or employees,
in the business of receiving deposits subject to check or to
repayment upon presentation of a pass book, certificate of deposit,
or other evidence of debt, or upon request of the depositor, unless
such person, firm, corporation, association, business trust, or
other similar organization (A) shall be incorporated under, and
authorized to engage in such business by, the laws of the United
States or of any State, Territory, or District, and subjected, by
the laws of the United States, or of the State, Territory, or
District wherein located, to examination and regulation, or (B)
shall be permitted by the United States, any State, territory, or
district to engage in such business and shall be subjected by the
laws of the United States, or such State, territory, or district to
examination and regulations or, (C) shall submit to periodic
examination by the banking authority of the State, Territory, or
District where such business is carried on and shall make and
publish periodic reports of its condition, exhibiting in detail its
resources and liabilities, such examination and reports to be made
and published at the same times and in the same manner and under the
same conditions as required by the law of such State, Territory, or
District in the case of incorporated banking institutions engaged in
such business in the same locality.
(b) Whoever shall willfully violate any of the provisions of this
section shall upon conviction be fined not more than $5,000 or
imprisoned not more than five years, or both, and any officer, director,
employee, or agent of any person, firm, corporation, association,
business trust, or other similar organization who knowingly participates
in any such violation shall be punished by a like fine or imprisonment
or both.
(June 16, 1933, ch. 89, Sec. 21, 48 Stat. 189; Aug. 23, 1935, ch. 614,
title III, Sec. 303, 49 Stat. 707; Pub. L. 86-230, Sec. 23, Sept. 8,
1959, 73 Stat. 466; Pub. L. 90-448, title VIII, Sec. 804(d), Aug. 1,
1968, 82 Stat. 543; Pub. L. 95-369, Sec. 12, Sept. 17, 1978, 92 Stat.
624.)
Amendments
1978--Subsec. (a)(2)(B). Pub. L. 95-369 inserted reference to
permission by the United States to engage in such business and
subjection by the laws of the United States to examination and
regulation.
1968--Subsec. (a)(1). Pub. L. 90-448 inserted ``, or issuing
securities'' in first proviso.
1959--Subsec. (a). Pub. L. 86-230 inserted ``and subjected, by the
laws of the United States, or of the State, Territory, or District
wherein located, to examination and regulation,'' after ``District,'' in
cl. (2)(A).
1935--Subsec. (a). Act Aug. 23, 1935, added two provisos to end of
par. (1) and amended par. (2) generally.
Effective Date of 1968 Amendment
For effective date of amendment by Pub. L. 90-448, see section 808
of Pub. L. 90-448, set out as a note under section 1716b of this title.
