§ 601. — Authorization; conditions and regulations.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC601]
TITLE 12--BANKS AND BANKING
CHAPTER 6--FOREIGN BANKING
SUBCHAPTER I--ESTABLISHMENT BY NATIONAL BANKS OF FOREIGN BRANCHES AND
INVESTMENTS IN BANKS DOING FOREIGN BUSINESS
Sec. 601. Authorization; conditions and regulations
Any national banking association possessing a capital and surplus of
$1,000,000 or more may file application with the Board of Governors of
the Federal Reserve System for permission to exercise, upon such
conditions and under such regulations as may be prescribed by the said
board, the following powers:
First. To establish branches in foreign countries or dependencies or
insular possessions of the United States for the furtherance of the
foreign commerce of the United States, and to act if required to do so
as fiscal agents of the United States.
Second. To invest an amount not exceeding in the aggregate 10 per
centum of its paid-in capital stock and surplus in the stock of one or
more banks or corporations chartered or incorporated under the laws of
the United States or of any State thereof, and principally engaged in
international or foreign banking, or banking in a dependency or insular
possession of the United States either directly or through the agency,
ownership, or control of local institutions in foreign countries, or in
such dependencies or insular possessions.
Third. To acquire and hold, directly or indirectly, stock or other
evidences of ownership in one or more banks organized under the law of a
foreign country or a dependency or insular possession of the United
States and not engaged, directly or indirectly, in any activity in the
United States except as, in the judgment of the Board of Governors of
the Federal Reserve System, shall be incidental to the international or
foreign business of such foreign bank; and, notwithstanding the
provisions of section 371c of this title, to make loans or extensions of
credit to or for the account of such bank in the manner and within the
limits prescribed by the Board by general or specific regulation or
ruling.
Until January 1, 1921, any national banking association, without
regard to the amount of its capital and surplus, may file application
with the Board of Governors of the Federal Reserve System for
permission, upon such conditions and under such regulations as may be
prescribed by said board, to invest an amount not exceeding in the
aggregate 5 per centum of its paid-in capital and surplus in the stock
of one or more corporations chartered or incorporated under the laws of
the United States or of any State thereof and, regardless of its
location, principally engaged in such phases of international or foreign
financial operations as may be necessary to facilitate the export of
goods, wares, or merchandise from the United States or any of its
dependencies or insular possessions to any foreign country: Provided,
however, That in no event shall the total investments authorized by this
subchapter by any one national bank exceed 10 per centum of its capital
and surplus.
Such application shall specify the name and capital of the banking
association filing it, the powers applied for, and the place or places
where the banking or financial operations proposed are to be carried on.
The Board of Governors of the Federal Reserve System shall have power to
approve or to reject such application in whole or in part if for any
reason the granting of such application is deemed inexpedient, and shall
also have power from time to time to increase or decrease the number of
places where such banking operations may be carried on.
(Dec. 23, 1913, ch. 6, Sec. 25 (pars.), 38 Stat. 273; Sept. 7, 1916, ch.
461, 39 Stat. 755; Sept. 17, 1919, ch. 60, Secs. 1, 2, 41 Stat. 285,
286; Aug. 23, 1935, ch. 614, title II, Sec. 203(a), 49 Stat. 704; Pub.
L. 89-485, Sec. 12(b), July 1, 1966, 80 Stat. 241.)
References in Text
This subchapter, referred to in the proviso to the fifth par., was
in the original ``this section'', meaning section 25 of act Dec. 23,
1913, which is classified to this subchapter (Sec. 601 et seq.).
Codification
Section is comprised of a part of section 25 of act Dec. 23, 1913,
as amended, which comprises this subchapter.
Amendments
1966--Pub. L. 89-485 struck out ``either or both of'' before ``the
following powers'' in introductory par.
Par. Third. Pub. L. 89-485 added par. Third.
1919--Act Sept. 17, 1919, added par. beginning ``Until January 21,
1921'' and inserted ``financial'' in first sentence of last par.
1916--Act Sept. 7, 1916, among other changes, added par. Second, and
provisions relating to restrictions on purchasing stock in other banks,
investigations as to compliance with regulations, disposal of interest
and separation of accounts, etc. which are now contained in section 602
et seq. 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.
Study by Secretary of the Treasury of Discriminatory Practices by
Foreign Nations Against United States Banks; Report and Recommendations
to Congress
Pub. L. 95-369, Sec. 9(a), formerly Sec. 9, Sept. 17, 1978, 92 Stat.
623, renumbered Pub. L. 95-630, title III, Sec. 311, Nov. 10, 1978, 92
Stat. 3678, provided that the Secretary of the Treasury conduct a study
of discriminatory practices by foreign nations against United States
banks and report his findings and recommendations to Congress on or
before one year after Sept. 17, 1978, along with a description of
efforts taken by the United States to eliminate any foreign laws or
practices that discriminate against United States banks or serve as a
barrier to the financing of United States exports to any country.
Section Referred to in Other Sections
This section is referred to in sections 602, 603 of this title.
