[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC618]
TITLE 12--BANKS AND BANKING
CHAPTER 6--FOREIGN BANKING
SUBCHAPTER II--ORGANIZATION OF CORPORATIONS TO DO FOREIGN BANKING
Sec. 618. Capital stock; amount; when paid in
No corporation shall be organized under the provisions of this
subchapter with a capital stock of less than $2,000,000, one-quarter of
which must be paid in before the corporation may be authorized to begin
business, and the remainder of the capital stock of such corporation
shall be paid in installments of at least 10 per centum on the whole
amount to which the corporation shall be limited as frequently as one
installment at the end of each succeeding two months from the time of
the commencement of its business operations until the whole of the
capital stock shall be paid in: Provided, however, That whenever
$2,000,000 of the capital stock of any corporation is paid in the
remainder of the corporation's capital stock or any unpaid part of such
remainder may, with the consent of the Board of Governors of the Federal
Reserve System and subject to such regulations and conditions as it may
prescribe, be paid in upon call from the board of directors; such unpaid
subscriptions, however, to be included in the maximum of 10 per centum
of the national bank's capital and surplus which a national bank is
permitted under the provisions of this Act to hold in stock of
corporations engaged in business of the kind described in this
subchapter and subchapter I of this chapter. The capital stock of any
such corporation may be increased at any time, with the approval of the
Board of Governors of the Federal Reserve System, by a vote of two-
thirds of its shareholders or by unanimous consent in writing of the
shareholders without a meeting and without a formal vote, but any such
increase of capital shall be fully paid in within ninety days after such
approval; and may be reduced in like manner, provided that in no event
shall it be less than $2,000,000. No corporation, except as herein
provided, shall during the time it shall continue its operations,
withdraw or permit to be withdrawn, either in the form of dividends or
otherwise, any portion of its capital. Any national bank may invest in
the stock of any corporation organized under this subchapter. The
aggregate amount of stock held by any national bank in all corporations
engaged in business of the kind described in this subchapter or
subchapter I of this chapter shall not exceed an amount equal to 10
percent of the capital and surplus of such bank unless the Board
determines that the investment of an additional amount by the bank would
not be unsafe or unsound and, in any case, shall not exceed an amount
equal to 20 percent of the capital and surplus of such bank.
(Dec. 23, 1913, ch. 6, Sec. 25A (par.), formerly Sec. 25(a), as added
Dec. 24, 1919, ch. 18, 41 Stat. 378; amended June 14, 1921, ch. 22, 42
Stat. 28; Aug. 23, 1935, ch. 614, title II, Sec. 203(a), 49 Stat. 704;
Pub. L. 95-369, Sec. 3(d), 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; Pub. L. 104-208, div. A, title II, Sec. 2307, Sept. 30,
1996, 110 Stat. 3009-426.)
References in Text
This subchapter, referred to in text, was in the original ``this
section'', meaning section 25A of act Dec. 23, 1913, which is classified
to this subchapter (Sec. 611 et seq.).
This Act, referred to in text, is act Dec. 23, 1913, ch. 6, 38 Stat.
251, as amended, known as the Federal Reserve Act, which is classified
principally to
