§ 615. — Powers of corporation.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC615]
TITLE 12--BANKS AND BANKING
CHAPTER 6--FOREIGN BANKING
SUBCHAPTER II--ORGANIZATION OF CORPORATIONS TO DO FOREIGN BANKING
Sec. 615. Powers of corporation
Each corporation organized as provided in sections 611 to 614 of
this title shall have power, under such rules and regulations as the
Board of Governors of the Federal Reserve System may prescribe:
(a) Dealings in drafts, checks, bills of exchange, acceptances, and
other evidences of indebtedness; purchase and sale of
securities; letters of credit; purchase and sale of coin,
bullion, and exchange; borrowing and loaning money; issue of
debentures, bonds, and notes; deposits; limitation of
liabilities; reserves
To purchase, sell, discount, and negotiate, with or without its
indorsement or guaranty, notes, drafts, checks, bills of exchange,
acceptances, including bankers' acceptances, cable transfers, and other
evidences of indebtedness; to purchase and sell, with or without its
indorsement or guaranty, securities, including the obligations of the
United States or of any State thereof but not including shares of stock
in any corporation except as herein provided; to accept bills or drafts
drawn upon it subject to such limitations and restrictions as the Board
of Governors of the Federal Reserve System may impose; to issue letters
of credit; to purchase and sell coin, bullion, and exchange; to borrow
and to lend money; to issue debentures, bonds, and promissory notes
under such general conditions as to security and such limitations as the
Board of Governors of the Federal Reserve System may prescribe; to
receive deposits outside of the United States and to receive only such
deposits within the United States as may be incidental to or for the
purpose of carrying out transactions in foreign countries or
dependencies or insular possessions of the United States; and generally
to exercise such powers as are incidental to the power conferred by this
Act or as may be usual, in the determination of the Board of Governors
of the Federal Reserve System, in connection with the transaction of the
business of banking or other financial operations in the countries,
colonies, dependencies, or possessions in which it shall transact
business and not inconsistent with the powers specifically granted
herein. Nothing contained in this subchapter shall be construed to
prohibit the Board of Governors of the Federal Reserve System, under its
power to prescribe rules and regulations, from limiting the aggregate
amount of liabilities of any or all classes incurred by the corporation
and outstanding at any one time. Whenever a corporation organized under
this subchapter receives deposits in the United States authorized by
this subchapter, it shall carry reserves in such amounts as the Board of
Governors of the Federal Reserve System may prescribe for member banks
of the Federal Reserve System.
(b) Branches or agencies
To establish and maintain for the transaction of its business
branches or agencies in foreign countries, their dependencies or
colonies, and in the dependencies or insular possessions of the United
States, at such places as may be approved by the Board of Governors of
the Federal Reserve System and under such rules and regulations as it
may prescribe, including countries or dependencies not specified in the
original organization certificate.
(c) Purchase of stock in other corporations
With the consent of the Board of Governors of the Federal Reserve
System to purchase and hold stock or other certificates of ownership in
any other corporation organized under the provisions of this subchapter,
or under the laws of any foreign country or a colony or dependency
thereof, or under the laws of any State, dependency, or insular
possession of the United States but not engaged in the general business
of buying or selling goods, wares, merchandise, or commodities in the
United States, and not transacting any business in the United States
except such as in the judgment of the Board of Governors of the Federal
Reserve System may be incidental to its international or foreign
business: Provided, however, That, except with the approval of the Board
of Governors of the Federal Reserve System, no corporation organized
under this subchapter shall invest in any one corporation an amount in
excess of 10 per centum of its own capital and surplus, except in a
corporation engaged in the business of banking, when 15 per centum of
its capital and surplus may be so invested: Provided further, That no
corporation organized under this subchapter shall purchase, own, or hold
stock or certificates of ownership in any other corporation organized
under this subchapter or under the laws of any State which is in
substantial competition therewith, or which holds stock or certificates
of ownership in corporations which are in substantial competition with
the purchasing corporation.
Nothing contained herein shall prevent corporations organized under
this subchapter from purchasing and holding stock in any corporation
where such purchase shall be necessary to prevent a loss upon a debt
previously contracted in good faith; and stock so purchased or acquired
in corporations organized under this subchapter shall, within six months
from such purchase, be sold or disposed of at public or private sale,
unless the time to so dispose of same is extended by the Board of
Governors of the Federal Reserve System.
(Dec. 23, 1913, ch. 6, Sec. 25A (pars.), formerly Sec. 25(a), as added
Dec. 24, 1919, ch. 18, 41 Stat. 378; amended Aug. 23, 1935, ch. 614,
title II, Sec. 203(a), 49 Stat. 704; Pub. L. 95-369, Sec. 3(d), (e),
Sept. 17, 1978, 92 Stat. 609; renumbered Sec. 25A, Pub. L. 102-242,
title I, Sec. 142(e)(2), Dec. 19, 1991, 105 Stat. 2281.)
References in Text
Each corporation organized as provided in sections 611 to 614 of
this title, referred to in first par., was in the original ``Each
corporation so organized''.
This act, referred to in subsec. (a), is act Dec. 23, 1913, ch. 6,
38 Stat. 251, as amended, known as the Federal Reserve Act, which is
classified principally to chapter 3 (Sec. 221 et seq.) of this title.
For complete classification of this Act to the Code, see References in
Text note set out under section 226 of this title and Tables.
This subchapter, referred to in subsecs. (a) and (c), was in the
original ``this section'', meaning section 25A of act Dec. 23, 1913,
which is classified to this subchapter (Sec. 611 et seq.).
Organized under this subchapter, referred to in subsec. (c), was in
the original ``organized hereunder'', meaning under section 25A of act
Dec. 23, 1913, which comprises this subchapter.
Codification
Section is comprised of a part of section 25A, formerly section
25(a), which was added to act Dec. 23, 1913, ch. 6, by act Dec. 24,
1919.
Amendments
1978--Subsec. (a). Pub. L. 95-369, Sec. 3(d), struck out ``, but in
no event having liabilities outstanding thereon at any one time
exceeding ten times its capital stock and surplus'' after ``under such
general conditions as to security and such limitations as the Board of
Governors of the Federal Reserve System may prescribe''.
Pub. L. 95-369, Sec. 3(e), substituted ``for member banks of the
Federal Reserve System'' for ``, but in no event less than 10 per centum
of its deposits'' after ``it shall carry reserves in such amounts as the
Board of Governors of the Federal Reserve System may prescribe''.
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.
