§ 501. — Liability of Federal reserve or member bank for certifying check when amount of deposit was inadequate.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC501]
TITLE 12--BANKS AND BANKING
CHAPTER 3--FEDERAL RESERVE SYSTEM
SUBCHAPTER XVI--CIVIL LIABILITY OF FEDERAL RESERVE AND MEMBER BANKS,
SHAREHOLDERS, AND OFFICERS
Sec. 501. Liability of Federal reserve or member bank for
certifying check when amount of deposit was inadequate
It shall be unlawful for any officer, director, agent, or employee
of any Federal reserve bank, or any member bank as defined in this
chapter, to certify any check drawn upon such Federal reserve bank or
member bank unless the person, firm, or corporation drawing the check
has on deposit with such Federal reserve bank or member bank, at the
time such check is certified, an amount of money not less than the
amount specified in such check. Any check so certified by a duly
authorized officer, director, agent, or employee shall be a good and
valid obligation against such Federal reserve bank or member bank; but
the act of any officer, director, agent, or employee of any such Federal
reserve bank or member bank in violation of this section shall, in the
discretion of the Board of Governors of the Federal Reserve System,
subject such Federal reserve bank to the penalties imposed by subsection
(h) of section 248 of this title, and shall subject such member banks,
if a national bank, to the liability and proceedings on the part of the
Comptroller of the Currency provided for in section 192 of this title,
and shall, in the discretion of the Board of Governors of the Federal
Reserve System, subject any other member bank to the penalties imposed
by subchapter VIII of chapter 3 of this title for the violation of any
of the provisions of this chapter.
(R.S. Sec. 5208; Sept. 26, 1918, ch. 177, Sec. 7, 40 Stat. 972; Feb. 25,
1927, ch. 191, Sec. 12, 44 Stat. 1231; Aug. 23, 1935, ch. 614, title II,
Sec. 203(a), 49 Stat. 704.)
References in Text
This chapter, referred to in text, was in the original ``the act of
December 23, 1913, known as the Federal Reserve Act,'' and ``said act,''
respectively, meaning act Dec. 23, 1913, ch. 6, 38 Stat. 251, as
amended. For complete classification of this Act to the Code, see
References in Text note set out under section 226 of this title and
Tables.
Subchapter VIII of chapter 3 of this title, referred to in text, was
in the original ``section nine of said Federal reserve Act''. Section 9
is classified generally to subchapter VIII (Sec. 321 et seq.) of chapter
3 of this title.
Codification
R.S. Sec. 5208 derived from act Mar. 3, 1869, ch. 135, 15 Stat. 335.
The last sentence of R.S. Sec. 5208, as amended, which provided
penalties for certification of certain checks, was repealed by section
21 of act June 25, 1948, ch. 645, 62 Stat. 862, 865, and the provisions
thereof were reenacted as section 1004 of Title 18, Crimes and Criminal
Procedure.
Amendments
1927--Act Feb. 25, 1927, substituted ``deposited in the bank of the
drawer thereof'' after ``regularly'' in last sentence.
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.
