12 U.S.C. § 221 — Definitions

Page 83 TITLE 12—BANKS AND BANKING § 221 Sec. 375. Reserved. 375a. Loans to executive officers of banks. 375b. Extensions of credit to executive officers, di- rectors, and principal shareholders of mem- ber banks. 376. Rate of interest paid to directors, etc. 377. Repealed. 378. Dealers in securities engaging in banking business; individuals or associations engag- ing in banking business; examinations and reports; penalties. SUBCHAPTER XI—DEPOSITARIES AND FISCAL AGENTS 391. Federal reserve banks as Government deposi- taries and fiscal agents. 391a. Reimbursement of Federal Reserve Banks. 392. Depositaries of Government funds as confined to banks in Federal reserve system; mem- ber banks as depositaries. 393. Federal reserve banks as depositaries for Farm Credit System. 394. Federal reserve banks as depositaries for and fiscal agents of Home Owners’ Loan Cor- poration. 395. Federal reserve banks as depositaries, custodians and fiscal agents for Commodity Credit Corporation. SUBCHAPTER XII—FEDERAL RESERVE NOTES 411. Issuance to reserve banks; nature of obliga- tion; redemption. 412. Application for notes; collateral required. 413. Distinctive letter and serial number of notes; cancellation of notes unfit for circulation; accounting; apportionment of credit among Federal Reserve banks. 414. Authority of Board of Governors respecting issuance of notes; interest; lien. 415. Reduction of liability for outstanding notes by depositing notes and collateral and pay- ment of notes of series prior to 1928; reissue of deposited notes. 416. Withdrawal of collateral deposited to protect notes and substitution of other collateral; retirement of notes; payment of notes of se- ries prior to 1928; recovery of collateral; re- issue of deposited notes. 417. Custody and safe-keeping of notes issued to and collateral deposited with Reserve agent. 418. Printing of notes; denomination and form. 419. Delivery of notes prior to delivery to banks. 420. Control and direction of plates and dies; ex- pense of issue and retirement of notes paid by banks. 421. Examination of plates and dies. 422. Omitted. SUBCHAPTER XIII—CIRCULATING NOTES AND BONDS SECURING SAME 441 to 448. Omitted. SUBCHAPTER XIV—BANK RESERVES 461. Reserve requirements. 462 to 462c. Omitted or Repealed. 463. Limitation on amount of balance with any depository institution without access to Federal Reserve advances. 464. Checking against and withdrawal of reserve balance. 465. Basis for ascertaining deposits against which required balance is determined. 466. Reserves of banks in dependencies or insular possessions. 467. Deposits of gold coin, gold certificates, and Special Drawing Right certificates with United States Treasurer. Sec. SUBCHAPTER XV—BANK EXAMINATIONS 481. Appointment of examiners; examination of member banks, State banks, and trust com- panies; reports. 482. Employees of Office of Comptroller of the Currency; appointment; compensation and benefits. 483. Special examination of member banks; infor- mation of condition furnished to Board of Governors of the Federal Reserve System. 484. Limitation on visitorial powers. 485. Examination of Federal reserve banks. 486. Waiver of requirements as to reports from or examinations of affiliates. SUBCHAPTER XVI—CIVIL LIABILITY OF FEDERAL RESERVE AND MEMBER BANKS, SHARE- HOLDERS, AND OFFICERS 501. Liability of Federal reserve or member bank for certifying check when amount of de- posit was inadequate. 501a. Forfeiture of franchise of national banks for failure to comply with provisions of this chapter. 502. Liability of shareholders of Federal reserve banks on contracts, etc. 503. Liability of directors and officers of member banks. 504. Civil money penalty. 505. Civil money penalty. 506. Notice after separation from service. SUBCHAPTER XVII—RESERVE-BANK BRANCHES 521. Reserve-bank branches; establishment; direc- tors; discontinuance of branches; approval for erection of branch bank building. 522. Federal Reserve branch bank buildings. SUBCHAPTER I—DEFINITIONS, ORGANIZA- TION, AND GENERAL PROVISIONS AF- FECTING SYSTEM § 221. Definitions Wherever the word ‘‘bank’’ is used in this chapter, the word shall be held to include State bank, banking association, and trust company, except where national banks or Federal reserve banks are specifically referred to. For purposes of this chapter, a State bank includes any bank which is operating under the Code of Law for the District of Columbia. The terms ‘‘national bank’’ and ‘‘national banking association’’ used in this chapter shall be held to be synonymous and interchangeable. The term ‘‘member bank’’ shall be held to mean any national bank, State bank, or bank or trust company which has become a member of one of the Federal reserve banks. The term ‘‘board’’ shall be held to mean Board of Governors of the Federal Reserve System; the term ‘‘district’’ shall be held to mean Federal reserve district; the term ‘‘reserve bank’’ shall be held to mean Federal reserve bank; the term ‘‘the continental United States’’ means the States of the United States and the District of Columbia. The terms ‘‘bonds and notes of the United States’’, ‘‘bonds and notes of the Government of the United States’’, and ‘‘bonds or notes of the United States’’ used in this chapter shall be held to include certificates of indebtedness and Treasury bills issued under section 3104 of title 31. (Dec. 23, 1913, ch. 6, § 1 (pars.), 38 Stat. 251; Aug. 23, 1935, ch. 614, title II, § 203(a), 49 Stat. 704; Pub. Page 84 TITLE 12—BANKS AND BANKING § 221a 1 Capitalized as in original. L. 86–70, § 8(a), June 25, 1959, 73 Stat. 142; Pub. L. 97–258, § 2(c), Sept. 13, 1982, 96 Stat. 1058; Pub. L. 109–351, title VII, § 725(a)(1), Oct. 13, 2006, 120 Stat. 2001; Pub. L. 109–356, title I, § 123(a)(1), Oct. 16, 2006, 120 Stat. 2028.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in text, was in the original ‘‘this Act’’, meaning act Dec. 23, 1913, ch. 6, 38 Stat. 251, known as the Federal Reserve Act. For complete classi- fication of this Act to the Code, see References in Text note set out under section 226 of this title and Tables. CODIFICATION This section is comprised of the second to fourth pars. of section 1 of act Dec. 23, 1913. The first par. of section 1 is classified to section 226 of this title. AMENDMENTS 2006—Pub. L. 109–351 and 109–356 amended section identically, inserting ‘‘For purposes of this chapter, a State bank includes any bank which is operating under the Code of Law for the District of Columbia.’’ at end of first par. 1982—Pub. L. 97–258 inserted provisions defining ‘‘bonds and notes of the United States’’, ‘‘bonds and notes of the Government of the United States’’, and ‘‘bonds or notes of the United States’’. These provisions are based on acts Sept. 24, 1917, ch. 56, § 5(c), 40 Stat. 290; Apr. 4, 1918, ch. 44, § 4, 40 Stat. 504; Mar. 3, 1919, ch. 100, § 3, 40 Stat. 1311; restated June 17, 1929, ch. 26, 46 Stat. 20 (former 31 U.S.C. 754(c)). 1959—Pub. L. 86–70 inserted definition of ‘‘the conti- nental United States’’. Statutory Notes and Related Subsidiaries 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. § 221a. Additional definitions As used in this chapter— (a) The terms ‘‘banks’’, ‘‘national bank’’, ‘‘na- tional banking association’’, ‘‘member bank’’, ‘‘board’’, ‘‘district’’, and ‘‘reserve bank’’ shall have the meanings assigned to them in section 221 of this title. (b) Except where otherwise specifically pro- vided, the term ‘‘affiliate’’ shall include any cor- poration, business trust, association, or other similar organization— (1) Of which a member bank, directly or indi- rectly, owns or controls either a majority of the voting shares or more than 50 per centum of the number of shares voted for the election of its directors, trustees, or other persons ex- ercising similar functions at the preceding election, or controls in any manner the elec- tion of a majority of its directors, trustees, or other persons exercising similar functions; or (2) Of which control is held, directly or indi- rectly, through stock ownership or in any other manner, by the shareholders of a mem- ber bank who own or control either a majority of the shares of such bank or more than 50 per centum of the number of shares voted for the election of directors of such bank at the pre- ceding election, or by trustees for the benefit of the shareholders of any such bank; or (3) Of which a majority of its directors, trustees, or other persons exercising similar functions are directors of any one member bank; or (4) Which owns or controls, directly or indi- rectly, either a majority of the shares of cap- ital stock of a member bank or more than 50 per centum of the number of shares voted for the election of directors of a member bank at the preceding election, or controls in any manner the election of a majority of the direc- tors of a member bank, or for the benefit of whose shareholders or members all or substan- tially all the capital stock of a member bank is held by trustees. (June 16, 1933, ch. 89, § 2, 48 Stat. 162; Aug. 23, 1935, ch. 614, title III, § 301, 49 Stat. 707; Pub. L. 89–485, § 13(a), (b), July 1, 1966, 80 Stat. 242.) Editorial Notes REFERENCES IN TEXT As used in this chapter, referred to in text, was in the original ‘‘As used in this Act and in any provision of law amended by this Act’’, meaning act June 16, 1933, ch. 89, 48 Stat. 162, known as the Banking Act of 1933. For complete classification of this Act to the Code, see References in Text note set out under section 227 of this title and Tables. AMENDMENTS 1966—Subsec. (b)(4). Pub. L. 89–485, § 13(a), added par. (4) which incorporates definitions of ‘‘holding company affiliate’’ contained in cls. (1) and (2) of former subsec. (c) of this section, and substituted ‘‘a member bank’’ for ‘‘any one bank’’ in first two places. Subsec. (c). Pub. L. 89–485, § 13(b), repealed definition of ‘‘holding company affiliate’’, cls. (1) and (2) thereof now being incorporated in the subsec. (b)(4) definition of ‘‘affiliate’’, substituting ‘‘a member bank’’ for ‘‘any one bank’’ in first two places and the par. excluding therefrom any corporations stock of which is fully owned by the United States and any organization de- termined by the Board of Governors of the Federal Re- serve System not to be engaged, directly or indirectly, as a business in holding the stock of, or managing or controlling, banks, banking associations, savings banks, or trust companies. 1935—Subsec. (c). Act Aug. 23, 1935, added last par. § 222. Federal reserve districts; membership of national banks The continental United States, excluding Alaska, shall be divided into not less than eight nor more than twelve districts. Such districts may be readjusted and new districts may from time to time be created by the Board of Gov- ernors of the Federal Reserve System, not to ex- ceed twelve in all: Provided, That the districts shall be apportioned with due regard to the con- venience and customary course of business and shall not necessarily be coterminous with any State or States. Such districts shall be known as Federal reserve districts and may be designated by number. When the State of Alaska or Hawaii is hereafter admitted to the Union the Federal Reserve 1 districts shall be readjusted by the Board of Governors of the Federal Reserve Sys- tem in such manner as to include such State. Every national bank in any State shall, upon commencing business or within ninety days after admission into the Union of the State in which it is located, become a member bank of