§ 83. — Loans by bank on its own stock.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC83]
TITLE 12--BANKS AND BANKING
CHAPTER 2--NATIONAL BANKS
SUBCHAPTER IV--REGULATION OF THE BANKING BUSINESS; POWERS AND DUTIES OF
NATIONAL BANKS
Sec. 83. Loans by bank on its own stock
(a) General prohibition
No national bank shall make any loan or discount on the security of
the shares of its own capital stock.
(b) Exclusion
For purposes of this section, a national bank shall not be deemed to
be making a loan or discount on the security of the shares of its own
capital stock if it acquires the stock to prevent loss upon a debt
previously contracted for in good faith.
(R.S. Sec. 5201; Pub. L. 106-569, title XII, Sec. 1207(a), Dec. 27,
2000, 114 Stat. 3034.)
Codification
R.S. Sec. 5201 derived from act June 3, 1864, ch. 106, Sec. 35, 13
Stat. 110, which was the National Bank Act. See section 38 of this
title.
Amendments
2000--Pub. L. 106-569 amended section catchline and text generally.
Prior to amendment, text read as follows: ``No association shall make
any loan or discount on the security of the shares of its own capital
stock, nor be the purchaser or holder of any such shares, unless such
security or purchase shall be necessary to prevent loss upon a debt
previously contracted in good faith; and stock so purchased or acquired
shall, within six months from the time of its purchase, be sold or
disposed of at public or private sale; or, in default thereof, a
receiver may be appointed to close up the business of the association,
according to section 192 of this title.''
