§ 603. — Restrictions imposed by Board of Governors of the Federal Reserve System on banks purchasing stock in corporations doing foreign business.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC603]
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. 603. Restrictions imposed by Board of Governors of the
Federal Reserve System on banks purchasing stock in corporations
doing foreign business
Before any national bank shall be permitted to purchase stock in any
corporation described in section 601 of this title, the said corporation
shall enter into an agreement or undertaking with the Board of Governors
of the Federal Reserve System to restrict its operations or conduct its
business in such manner or under such limitations and restrictions as
the said board may prescribe for the place or places wherein such
business is to be conducted. If at any time the Board of Governors of
the Federal Reserve System shall ascertain that the regulations
prescribed by it are not being complied with, said board is authorized
and empowered to institute an investigation of the matter and to send
for persons and papers, subpoena witnesses, and administer oaths in
order to satisfy itself as to the actual nature of the transactions
referred to. Should such investigation result in establishing the
failure of the corporation in question, or of the national bank or banks
which may be stockholders therein, to comply with the regulations laid
down by the said Board of Governors of the Federal Reserve System, such
national banks may be required to dispose of stock holdings in the said
corporation upon reasonable notice.
(Dec. 23, 1913, ch. 6, Sec. 25 (par.), as added Sept. 7, 1916, ch. 461,
39 Stat. 755; amended Aug. 23, 1935, ch. 614, title II, Sec. 203(a), 49
Stat. 704.)
Codification
Section is comprised of a part of section 25 of act Dec. 23, 1913,
as amended, which comprises this subchapter.
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.
Section Referred to in Other Sections
This section is referred to in title 7 section 1a.
