§ 501a. — Forfeiture of franchise of national banks for failure to comply with provisions of this chapter.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC501a]
TITLE 12--BANKS AND BANKING
CHAPTER 3--FEDERAL RESERVE SYSTEM
SUBCHAPTER XVI--CIVIL LIABILITY OF FEDERAL RESERVE AND MEMBER BANKS,
SHAREHOLDERS, AND OFFICERS
Sec. 501a. Forfeiture of franchise of national banks for failure
to comply with provisions of this chapter
Should any national banking association in the United States now
organized fail within one year after December 23, 1913, to become a
member bank or fail to comply with any of the provisions of this chapter
applicable thereto, all of the rights, privileges, and franchises of
such association granted to it under the National Bank Act [12 U.S.C. 21
et seq.], or under the provisions of this chapter, shall be thereby
forfeited. Any noncompliance with or violation of this chapter shall,
however, be determined and adjudged by any court of the United States of
competent jurisdiction in a suit brought for that purpose in the
district or territory in which such bank is located, under direction of
the Board of Governors of the Federal Reserve System by the Comptroller
of the Currency in his own name before the association shall be declared
dissolved. In cases of such noncompliance or violation, other than the
failure to become a member bank under the provisions of this chapter,
every director who participated in or assented to the same shall be held
liable in his personal or individual capacity for all damages which said
bank, its shareholders, or any other person shall have sustained in
consequence of such violation.
Such dissolution shall not take away or impair any remedy against
such corporation, its stockholders, or officers, for any liability or
penalty which shall have been previously incurred.
(Dec. 23, 1913, ch. 6, Sec. 2, 38 Stat. 252; Aug. 23, 1935, ch. 614,
title II, Sec. 203(a), 49 Stat. 704.)
References in Text
The National Bank Act, referred to in text, is act June 3, 1864, ch.
106, 13 Stat. 99, as amended, which is classified principally to chapter
2 (Sec. 21 et seq.) of this title. For complete classification of this
Act to the Code, see References in Text note set out under section 38 of
this title.
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.
Section Referred to in Other Sections
This section is referred to in sections 222, 481, 522, 1817 of this
title.
