§ 481. — Appointment of examiners; examination of member banks, State banks, and trust companies; reports.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC481]
TITLE 12--BANKS AND BANKING
CHAPTER 3--FEDERAL RESERVE SYSTEM
SUBCHAPTER XV--BANK EXAMINATIONS
Sec. 481. Appointment of examiners; examination of member banks,
State banks, and trust companies; reports
The Comptroller of the Currency, with the approval of the Secretary
of the Treasury, shall appoint examiners who shall examine every
national bank as often as the Comptroller of the Currency shall deem
necessary. The examiner making the examination of any national bank
shall have power to make a thorough examination of all the affairs of
the bank and in doing so he shall have power to administer oaths and to
examine any of the officers and agents thereof under oath and shall make
a full and detailed report of the condition of said bank to the
Comptroller of the Currency: Provided, That in making the examination of
any national bank the examiners shall include such an examination of the
affairs of all its affiliates other than member banks as shall be
necessary to disclose fully the relations between such bank and such
affiliates and the effect of such relations upon the affairs of such
bank; and in the event of the refusal to give any information required
in the course of the examination of any such affiliate, or in the event
of the refusal to permit such examination, all the rights, privileges,
and franchises of the bank shall be subject to forfeiture in accordance
with sections 141, 222 to 225, 281 to 283, 285, 286, 501a and 502 of
this title. The Comptroller of the Currency shall have power, and he is
authorized, to publish the report of his examination of any national
banking association or affiliate which shall not within one hundred and
twenty days after notification of the recommendations or suggestions of
the Comptroller, based on said examination, have complied with the same
to his satisfaction. Ninety days' notice prior to such publicity shall
be given to the bank or affiliate.
The examiner making the examination of any affiliate of a national
bank shall have power to make a thorough examination of all the affairs
of the affiliate, and in doing so he shall have power to administer
oaths and to examine any of the officers, directors, employees, and
agents thereof under oath and to make a report of his findings to the
Comptroller of the Currency. If any affiliate of a national bank refuses
to pay any assessments, fees, or other charges imposed by the
Comptroller of the Currency pursuant to this subchapter or fails to make
such payment not later than 60 days after the date on which they are
imposed, the Comptroller of the Currency may impose such assessments,
fees, or charges against the affiliated national bank, and such
assessments, fees, or charges shall be paid by such national bank. If
the affiliation is with 2 or more national banks, such assessments,
fees, or charges may be imposed on, and collected from, any or all of
such national banks in such proportions as the Comptroller of the
Currency may prescribe. The examiners and assistant examiners making the
examinations of national banking associations and affiliates thereof
herein provided for and the chief examiners, reviewing examiners and
other persons whose services may be required in connection with such
examinations or the reports thereof, shall be employed by the
Comptroller of the Currency with the approval of the Secretary of the
Treasury; the employment and compensation of examiners, chief examiners,
reviewing examiners, assistant examiners, and of the other employees of
the office of the Comptroller of the Currency whose compensation is and
shall be paid from assessments on banks or affiliates thereof or from
other fees or charges imposed pursuant to this subchapter shall be
without regard to the provisions of other laws applicable to officers or
employees of the United States. The funds derived from such assessments,
fees, or charges may be deposited by the Comptroller of the Currency in
accordance with the provisions of section 192 of this title and shall
not be construed to be Government funds or appropriated monies; and the
Comptroller of the Currency is authorized and empowered to prescribe
regulations governing the computation and assessment of the expenses of
examinations herein provided for and the collection of such assessments
from the banks and/or affiliates examined or of other fees or charges
imposed pursuant to this subchapter. Such funds shall not be subject to
apportionment for the purpose of chapter 15 of title 31 or under any
other authority. If any affiliate of a national bank shall refuse to
permit an examiner to make an examination of the affiliate or shall
refuse to give any information required in the course of any such
examination, the national bank with which it is affiliated shall be
subject to a penalty of not more than $5,000 for each day that any such
refusal shall continue. Such penalty may be assessed by the Comptroller
of the Currency and collected in the same manner as expenses of
examinations. The Comptroller of the Currency, upon the request of the
Board of Governors of the Federal Reserve System, is authorized to
assign examiners appointed under this subchapter to examine foreign
operations of State banks which are members of the Federal Reserve
System.
(R.S. Sec. 5240 (pars.); Feb. 19, 1875, ch. 89, 18 Stat. 329; Dec. 23,
1913, ch. 6, Sec. 21, 38 Stat. 271; June 16, 1933, ch. 89, Sec. 28, 48
Stat. 192; Aug. 23, 1935, ch. 614, title II, Sec. 203(a), title III,
Sec. 343, 49 Stat. 704, 722; June 30, 1948, ch. 762, Sec. 1, 62 Stat.
1163; Apr. 30, 1956, ch. 228, Sec. 1, 70 Stat. 124; Pub. L. 96-221,
title VII, Sec. 709, Mar. 31, 1980, 94 Stat. 188; Pub. L. 100-86, title
V, Sec. 505(b), Aug. 10, 1987, 101 Stat. 633; Pub. L. 101-73, title IX,
Sec. 907(f), Aug. 9, 1989, 103 Stat. 470; Pub. L. 102-242, title I,
Sec. 114(b), Dec. 19, 1991, 105 Stat. 2248.)
References in Text
This subchapter, referred to in second par., was in the original a
reference to this section, meaning section 5240 of the Revised Statutes.
Codification
R.S. Sec. 5240 derived from act June 3, 1864, ch. 106, Sec. 54, 13
Stat. 116, which was part of the National Bank Act. See section 38 of
this title.
R.S. Sec. 5240, as amended by acts Dec. 23, 1913, July 2, 1932, June
16, 1933, Pub. L. 101-73, and Pub. L. 102-242, is comprised of 7
undesignated paragraphs. Pars. 1 and 2 are classified to section 481 of
this title, pars. 3 and 4 are classified to section 482 of this title,
and pars. 5 to 7 are classified to sections 483 to 485, respectively, of
this title.
Amendments
1991--Pub. L. 102-242, in second par., inserted second and third
sentences and struck out former second and third sentences which read as
follows: ``The expense of examinations of such affiliates may be
assessed by the Comptroller of the Currency upon the affiliates examined
in proportion to assets or resources held by the affiliates upon the
dates of examination of the various affiliates. If any such affiliate
shall refuse to pay such expenses or shall fail to do so within sixty
days after the date of such assessment, then such expenses may be
assessed against the affiliated national bank and, when so assessed,
shall be paid by such national bank: Provided, however, That, if the
affiliation is with two or more national banks, such expenses may be
assessed against, and collected from, any or all of such national banks
in such proportions as the Comptroller of the Currency may prescribe.'',
in fourth sentence, inserted ``or from other fees or charges imposed
pursuant to this subchapter'' after ``assessments on banks or affiliates
thereof'', and in fifth sentence, inserted ``, fees, or charges'' before
``may be deposited'' and ``or of other fees or charges imposed pursuant
to this subchapter'' before period.
1989--Pub. L. 101-73, in second par., increased the penalty for
refusal to allow the examination from $100 to $5,000.
1987--Pub. L. 100-86 inserted after fifth sentence of second par.
``Such funds shall not be subject to apportionment for the purpose of
chapter 15 of title 31 or under any other authority.''
1980--Pub. L. 96-221 inserted provisions relating to examination of
foreign operations of State banks which are members of the Federal
Reserve System, and substituted provisions authorizing examinations as
often as the Comptroller deems necessary, for provisions requiring
examinations twice in every calendar year, and provisions authorizing
the Comptroller to waive one examination or require additional
examinations.
1956--Act Apr. 30, 1956, allowed Comptroller to waive 1 of the 2
examinations required each year, but not more than one waiver every two
years.
1948--Act June 30, 1948, struck out in first sentence after first
proviso of second par. ``, including retirement annuities to be fixed by
the Comptroller of the Currency,''.
1935--Act Aug. 23, 1935, Sec. 343, substituted in first sentence
after first proviso of second par. ``including retirement annuities to
be fixed by the Comptroller of the Currency, is and shall be'' for
``is''.
1933--Act June 16, 1933, inserted proviso and last two sentences at
end of first par. and added second par.
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.
Effective Date of 1989 Amendment
Amendment by Pub. L. 101-73 applicable to conduct engaged in after
Aug. 9, 1989, except that increased maximum penalties of $5,000 and
$25,000 may apply to conduct engaged in before such date if such conduct
is not already subject to a notice issued by the appropriate agency and
occurred after completion of the last report of the examination of the
institution by the appropriate agency occurring before Aug. 9, 1989, see
section 907(l) of Pub. L. 101-73, set out as a note under section 93 of
this title.
Effective Date of 1948 Amendment
Amendment by act June 30, 1948, effective on first day of first pay
period beginning at least 30 days after June 30, 1948, see section 5 of
that act.
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.
Section Referred to in Other Sections
This section is referred to in sections 330, 482, 1831k of this
title.
