Statutes and Regulations Administered by the Federal ... · 12 USC 95a Provides the president with...

Statutes and Regulations Administeredby the Federal ReserveEffective date May 2000 Section 8000.1

Following is a table of statutes and regulationsthat apply to the Federal Reserve System and tobanking institutions that the Federal ReserveBoard supervises and regulates. The table con-sists of five columns:

Statute.The name of the law as enacted byCongress and the section.

U.S. Code citation.The section of the UnitedStates Code where the statute can be found.

Description. A summary of the particularsection of the statute.

FRB regulation.The implementing regula-tion, usually the Federal Reserve regulation, andthe appropriate citation from the Code of Fed-eral Regulations (CFR).

FRRS locator number.The location of thestatute, regulation, or other reference in theFederal Reserve Regulatory Service(FRRS).

Statute

U.S.Code

Citation DescriptionFRB

Regulation

FRRSLocatorNumber

Federal ElectionCampaign Act

2 USC441b

Limits political contributions bymember banks.

Foreign Giftsand DecorationsAct

5 USC7342

Restricts Board members’ andemployees’ acceptance of foreigngifts and decorations.

Rules RegardingForeign Giftsand Decorations,12 CFR 264b

8-610et seq.

Federal ReserveAct, sec. 10,para. 8

12 USC 1 Issuance of national currency and Fed-eral Reserve notes under general super-vision of FRB.

1-084

National BankAct, as amendedby the BankingAct of 1935

12 USC51b-1

Impairment of the capital of nationalbanks and state member banks.

Reg H, Member-ship of StateBanking Institu-tions in theFederal ReserveSystem, 12 CFR208.4

1-3073-159

National BankAct, as amendedby the BankingActs of 1933and 1935

12 USC71a

Specific criteria for director selectionand qualification for national banksand state member banks.

1-292

EmergencyBanking Act of1933, sec. 4

12 USC 95 Provides the president with power torequire member banks to suspend oper-ations during an emergency period.

1-323

Trading with theEnemy Act,sec. 5

12 USC 95a Provides the president with wartimepowers over banking.

1-4401-441

Commercial Bank Examination Manual May 2000

Federal ReserveAct, sec. 1;Banking Act of1933, sec. 2

12 USC 221,221a

Definition of basic terms in FederalReserve Act, including ‘‘bank’’ and‘‘affiliate.’’

1-0021-309

Federal ReserveAct, sec. 2,paras. 1, 2, 3,and 13

12 USC222–225,281–282

Federal Reserve Bank organization;requirement that all national banks bemembers.

1-004et seq.1-016

Federal ReserveAct, sec. 2A,para. 1

12 USC225a

Requires Federal Reserve and theFederal Open Market Committee to—• maintain long-run growth of the

monetary and credit aggregates toadvance the economy’s long-runpotential; and

• report semiannually to each houseof Congress on monetary andcredit aggregate ranges.

Open MarketOperations ofFederal ReserveBanks, 12 CFR270

1-0178-823et seq.

Federal ReserveAct, sec. 10,paras. 1–7and 10

12 USC241–247a

Creation and organization of Board ofGovernors; qualifications; terms ofoffice; vacancies; assessments onFederal Reserve Banks; constructionof Federal Reserve Board building;annual report to Congress; recordof FOMC actions.

Rules ofOrganization

1-077–1-0831-0868-000et seq.

Federal ReserveAct, sec. 11

12 USC248

Powers of the Board of Governors. 1-091et seq.

Federal ReserveAct, sec. 11(a)(1)

12 USC248(a)(1)

Authorizes Board to examine andrequire reports of Reserve Banksand member banks.

Reg H, Member-ship of StateBanking Institu-tions in the Fed-eral Reserve Sys-tem, 12 CFR 208

1-0923-150et seq.

Federal ReserveAct, sec. 11(a)(2)

12 USC248(a)(2)

Authorizes Board to require reportsfrom any depository institution asnecessary or desirable for mone-tary control purposes.

Reg D, ReserveRequirements ofDepository Insti-tutions, 12 CFR204.3

1-0922-159et seq.

Federal ReserveAct, sec. 11(b)

12 USC248(b)

Authorizes Board to permit FederalReserve Banks to rediscount paper ofother Federal Reserve Banks and to fixrates of interest for rediscounted paper.

Reg A, Exten-sions of Creditby FederalReserve Banks,12 CFR 201

1-0932-001et seq.

8000.1 Statutes and Regulations Administered by the Federal Reserve

May 2000 Commercial Bank Examination Manual

Statute

U.S.Code


Regulation

FRRSLocatorNumber

Federal ReserveAct, sec. 11(c)

12 USC248(c)

Authorizes Board to suspend reserverequirements.

Reg D, ReserveRequirements ofDepository Insti-tutions, 12 CFR204

1-0942-122et seq.

Federal ReserveAct, sec. 11(d)

12 USC248(d)

Authorizes Board to supervise and reg-ulate the issue and retirement of Fed-eral Reserve notes through the OCC.

1-095

Federal ReserveAct, sec. 11(m)

12 USC248(m)

Authorizes Board to fix the percentageof individual member bank capitaland surplus that may be representedby loans secured by stock or bondcollateral. Limits amount of loanssecured by nongovernmental stockor bond collateral to any individual to15% of bank’s capital and surplus.

1-104


12 USC248-1

Authorizes Board to promulgateregulations for the transfer of fundsbetween Reserve Banks, and to act asor designate Reserve Banks to act asclearinghouses.

Reg J, Collectionof Checks andOther Items byFederal ReserveBanks and FundsTransfer ThroughFedwire, 12 CFR210; fee sched-ules and pricingpolicies forFederal ReserveBanks

1-1539-775et seq.

Federal ReserveAct, sec. 11(e)–(l)

12 USC248(e)–(l)

Authorizes Board to regulate the affairsof the various Reserve Banks, todelegate its responsibilities to theReserve Banks, and to hire employeesto carry out the Board’s business.

Rules RegardingDelegation ofAuthority, 12CFR 265

1-096et seq.8-102et seq.

Federal ReserveAct, sec. 11A

12 USC248a

Requires Federal Reserve to price vari-ous services provided by ReserveBanks to depository institutions (e.g.,check-collection services, wiretransfer of funds, etc.).

Fee Schedulesand PricingPolicies forFederal ReserveBanks

1-1051-105.1

Federal ReserveAct, sec. 11B

12 USC248b

Requires annual independentaudit of financial statements ofFederal Reserve Board and Banks.

1-105.5

Federal ReserveAct, sec. 12,paras. 1 and 2

12 USC261–262

Federal Advisory Council, creationand powers.

1-1061-107

Statutes and Regulations Administered by the Federal Reserve 8000.1


Statute

U.S.Code


Regulation

FRRSLocatorNumber


12 USC 263 Federal Open Market Committee,creation and powers. Federal ReserveBanks are required to comply withdirectives.

Federal OpenMarket Commit-tee, 12 CFR270–272


Federal ReserveAct, sec. 5, 6,paras. 1 and 2,and sec. 7

12 USC287–290

Provisions regarding the issuance andcancellation of, and dividends on,Federal Reserve Bank stock.

Reg I, Issue andCancellation ofCapital Stock ofFederal ReserveBanks, 12 CFR209


Federal ReserveAct, sec. 4,paras. 6–22and 24

12 USC301–308

Selection, eligibility, duties, and powersof Federal Reserve Bank directors.

Reserve BankDirectors—Actions andResponsibilities,12 CFR 264a

1-026–1-0448-168et seq.


12 USC 301 Suspension of any member bank fromuse of Federal Reserve credit facilitiesfor undue use of bank credit for specu-lation or any purpose inconsistent withmaintenance of sound credit conditions.

Reg A, Exten-sions of Creditby FederalReserve Banks,12 CFR 201.6(b)

1-0282-014

Federal ReserveReform Act of1977

12 USC 302 Establishes standards for selection ofcertain Reserve Bank directors.


1-030-1-032

Federal ReserveAct, sec. 9,paras. 1–5

12 USC321–323

Eligibility requirements for membershipin the Federal Reserve System and pro-hibition against establishment of branchexcept as authorized for national banksunder National Bank Act. AuthorizesBoard to establish rules and regulationsand impose conditions regardingmembership.



Provides limits for standby letters ofcredit and ineligible acceptances andrequires disclosure of amount of suchcredit.

Reg H, Member-ship of StateBanking Institu-tions in the Fed-eral Reserve Sys-tem, 12 CFR208.24

3-211et seq.



Statute

U.S.Code


Regulation

FRRSLocatorNumber


12 USC324

Applies to state member banks pro-visions of National Bank Act pro-hibiting national bank from lending onor purchasing its own stock (as pro-vided in 12 USC 83, Rev. Stat. 5201)and relating to the withdrawl andimpairment of the capital stockor payment of dividends (12 USC55, Rev. Stat. 5205; 12 USC 56, Rev.Stat. 5204; and USC 60, Rev. Stat.5199). Also authorizes Board torequire filing and publication of reportsof condition, income, and dividends.


1-5093-150et seq.


12 USC325–326

Subjects member banks to examinationby the Board. Also provides for accep-tance of examinations conducted bystate authorities.

Reg H, Member-ship of StateBanking Institu-tions in theFederal ReserveSystem,12 CFR 208.64

1-0601-0613-380


12 USC327–328

Forfeiture of membership in the Sys-tem. Withdrawal and cancellation ofmembership.

Reg H, Member-ship of StateBanking Institu-tions in the Fed-eral Reserve Sys-tem, 12 CFR208.3(f); Reg I,Issue and Cancel-lation of CapitalStock of FederalReserve Banks,12 CFR 209.3

1-0621-0633-1583-4633-464


12 USC 329 Capital requirements for membershipincluding requirement that state mem-ber bank have capital at least equal tothat of a national bank under 12 USC51, Rev. Stat. 5138, and 12 USC 51b-1.Prohibition on reduction of capitalstock without prior Board approval.

Reg H, Member-ship of StateBanking Institu-tions in theFed eral ReserveSystem,12 CFR 208.4

1-0641-0653-159


12 USC 330 Laws to which member banks aresubject. Provisions regarding the dis-count of paper of state member bank.

1-066


12 USC 331 Prohibits member bank certification ofchecks drawn on an account withinsufficient funds.

1-067



Statute

U.S.Code


Regulation

FRRSLocatorNumber


12 USC 332 Provisions authorizing member banksto act as depositaries of public monies.

1-068


12 USC 333 Membership requirements for mutualsavings banks.

Reg H, Member-ship of StateBanking Institu-tions in the Fed-eral Reserve Sys-tem, 12 CFR208.3(a)

1-0693-154


12 USC 334 Reporting requirements for affiliates ofmember banks and civil money penaltyfor failure to file.

Reg H, Member-ship of StateBanking Institu-tions in the Fed-eral Reserve Sys-tem, 12 CFR208.3(e)

1-070–1-0723-158


12 USC 335 Applies to state member banks therestrictions and prohibitions in NationalBank Act regarding the purchase, sale,underwriting, and holding of invest-ment securities and stock (12 USC 24,Seventh, Rev. Stat. 5136).

Reg H, Member-ship of StateBanking Institu-tions in theFed eral ReserveSystem,12 CFR 208.21(b)

1-0733-202


12 USC 336 Prohibits stapling of stock of a statemember bank to that of anothercorporation.

1-074


12 USC 338 Authorizes Board to examine theaffairs of affiliates of state memberbank. Refusal to permit examinationmay cause forfeiture of membership.

1-075


12 USC 338a Allows state member banksto make investments designedprimarily to promote the publicwelfare.

Reg H, Member-ship of StateBanking Institu-tions in theFederal ReserveSystem, 12 CFR208.22

1-075.13-203et seq.


12 USC 339 Prohibits state member banks fromparticipating in lotteries.

1-076


12 USC 341 Federal Reserve Bank powers andduties.

1-0241-025



Statute

U.S.Code


Regulation

FRRSLocatorNumber


12 USC 342 Authorizes Federal Reserve Banks toreceive and collect deposits, checks,drafts, notes, and bills. Also allowsmember and nonmember banks orother depository institutions to assessreasonable charges, to be determinedand regulated by the Board, forcollection of checks and other itemsand transfer of funds.

Reg J, Collectionof Checks andOther Items byFederal ReserveBanks and FundsTransfers ThroughFedwire, 12 CFR210

1-1119-775et seq.

Federal ReserveAct, sec. 13,paras. 2–6, 8, 10,12–14; and sec.13A, paras. 1–5

12 USC343–352

Federal Reserve Bank discount andrediscount authority; authorizesReserve Banks to lend to depositoryinstitutions that pledge acceptablecollateral and to make advances tomember banks, depository institutions,branches and agencies of foreignbanks, individuals, partnerships, andcorporations. Also authorizesReserve Banks to discount agricul-tural paper.

Reg A, Exten-sions of Credit byFederal ReserveBanks, 12 CFR201

1-112–1-1161-1181-1201-122–1-123.11-124–1-1282-001et seq.

Federal ReserveAct, sec. 14(g)

12 USC348a

Authorizes Board to exercise super-vision over all relationships and trans-actions between Reserve Banks andforeign banks and bankers.

Reg N, Relationswith ForeignBanks andBankers, 12 CFR214

7-079.17-070et seq.


12 USC348–352

Various provisions regarding authorityof Federal Reserve Banks to discountand extend credit on agricultural paper.


1-124–1-1282-001et seq.

Federal ReserveAct, sec. 14(a)–(f)

12 USC353–359

Authorizes open market operations:Federal Reserve Banks may pur-chase and sell instruments eligible foruse as collateral for discount windowtransactions. Sets terms and conditionsfor open market operations. Alsoauthorizes the Secretary of theTreasury to borrow and sell, repur-chase, and return U.S. obligationsfrom Reserve Banks in order tomeet short-term obligations of theTreasury Department.

Federal OpenMarket Commit-tee Rules, 12CFR 270–272,281

1-129–1-1358-805et seq.



Statute

U.S.Code


Regulation

FRRSLocatorNumber


12 USC 360 Reserve Banks must receive checksand drafts at par. Pricing of servicesfor clearing negotiable instruments.

Reg J, Collectionof Checks andOther Items byFederal ReserveBanks andFunds TransfersThrough Fedwire,12 CFR 210

1-1529-775et seq.

Federal ReserveAct, sec. 19(i)

12 USC371a

Prohibits payment of interest ondemand deposits by member banks andauthorizes automatic transfer of fundsfrom savings to checking.

Reg Q, Prohibi-tion AgainstPayment of Inter-est on DemandDeposits, 12CFR 217

1-1752-380et seq.

Federal ReserveAct, sec. 19(j)

12 USC371b

Regulates the advertising of intereston time and savings deposits.

Reg DD, Truthin Savings,12 CFR 230.8

1-1766-1927et seq.


12 USC371b-2

Requires the Board to prescribestandards to limit the risksposed by exposure of insureddepository institutions to otherdepository institutions.

Reg F, Limita-tions on Inter-bank Liabilities,12 CFR 206

3-0403-001


12 USC371c

Restrictions on extensions of creditand other covered transactions betweenaffiliates. The Board has rulemakingand exemptive authority.



12 USC371c-1

Restrictions on transactionswith or for the benefit of affiliates.Requires transactions to beconducted on arm’s-lengthterms. The Board has rulemak-ing and exemptive authority.

1-206.1et seq.


12 USC371d

Limits investment by member banks inbank premises, and limits loans to orupon the security of the stock ofany corporation owning bankpremises.

1-216


12 USC 372 Provisions regulating and setting limitson the acceptance of drafts and bills bymember banks and U.S. branches andagencies of foreign banks.





Statute

U.S.Code


Regulation

FRRSLocatorNumber

Federal ReserveAct, sec. 19(e)

12 USC 374,463

Member bank cannot act as agent fornonmember to obtain discount from aReserve Bank. Also, limits the amountthat a member bank can keep ondeposit with a depository institutionthat is not authorized to have accessto Federal Reserve advances under12 USC 347b.


1-1712-001et seq.


12 USC374a

Member bank cannot act as agent fornonbank borrower in making loans onsecurities to investment securitiesdealers and brokers.

1-170


12 USC 375 Provides that member banks may con-tract for, purchase from, or sell to anyof their directors or to a firm of which adirector is a member, any securities orother property, provided that the transac-tion is on terms not less favorable to thebank than those offered to others orwhen the transaction is approved by amajority of the directors who are notinterested parties to the transaction.The Board may require disclosure ofsuch transactions.

1-1881-189

Federal ReserveAct, sec. 22(g)

12 USC375a

Imposes lending limits and require-ments for loans by member banks totheir executive officers. Requiresreports by executive officers forindebtedness at other banks.

Reg O, Loans toExecutive Offi-cers, Directors,and PrincipalShareholders ofMember Banks,12 CFR 215


Federal ReserveAct, sec. 22(h)

12 USC375b

Lending limits, prior board of directors’approval, and prohibition againstpreferential lending and overdrafts bymember banks to their officers, direc-tors, and principal shareholders andtheir related interests.

Reg O, Loans toExecutive Offi-cers, Directors,and PrincipalShareholders ofMember Banks,12 CFR 215



12 USC 376 Prohibits a member bank from payingto any director, officer, attorney, oremployee a greater rate of interest onthe deposits of such person than thatpaid to other depositors on similardeposits with such member bank.

1-190


Commercial Bank Examination Manual October 2012

Statute

U.S.Code


Regulation

FRRSLocatorNumber

Banking Act of1933

12 USC378(a)(1)

Prohibits deposit taking by any personengaged in the business of issuing,underwriting, selling, or distributingsecurities.

1-311

Banking Act of1933

12 USC378(a)(2)

Prohibits any organization from engagingin the business of receiving depositsunless it is authorized to do so by lawand is subject to examination.

1-311

Federal ReserveAct, sec. 15; andAct of July 16,1943, sec. 3

12 USC391, 392,395

Authorizes Reserve Banks to act asfiscal agents and depositaries of theUnited States and other organizations.

1-1381-1391-280

Federal ReserveAct, sec. 16,paras.1–11

12 USC411–421

Provides for the issuance, printing,custody, security, and destruction ofFederal Reserve notes.

1-140et seq.


12 USC 417 Provides for custody and safekeepingof notes issued to and collateraldeposited with reserve agent.

1-146


12 USC441–448

Provides for the issuance, circulation,and redemption of certain bondsand notes of the United States.

1-158et seq.

Federal ReserveAct, sec. 19(a)–(c),(f)–(h)

12 USC461,464–466

Authorizes Board to establishreserve requirements for all depositoryinstitutions, to define terms, and torequire reporting with respect to themaintenance of reserves.

Reg D, ReserveRequirements forDepository Insti-tutions, 12 CFR204

1-167–1-1691-172–1-1742-122et seq.


12 USC 463 Limits deposits by member banks witha depository institution without accessto Federal Reserve advances.

1-171


12 USC 467 Receipt of gold certificates and SDRsfor credit with Federal Reserve System.

1-154et seq.


12 USC 483 Authorizes Federal Reserve Banks,with the approval of the Board, toprovide for special examination ofmember banks.


1-1833-380


October 2012 Commercial Bank Examination Manual

Statute

U.S.Code


Regulation

FRRSLocatorNumber


12 USC 484 Limits visitorial powers otherthan as authorized by law.

1-184


12 USC 485 Provisions relating to the examinationof Federal Reserve Banks.

1-185


12 USC 486 Permits Board to waive requirementsthat affiliates of state member bankseither submit reports to state memberbanks or submit to examination.

Reg H, Member-ship of StateBanking Institu-tions in the Fed-eral Reserve Sys-tem, 12 CFR208.3(e)(2)

1-1873-158

Revised Statutessec. 5208

12 USC 501 Prohibits any officer, director, agent, oremployee of a Federal Reserve Bank ora member bank from certifying a checkdrawn on the Federal Reserve Bank ormember bank if the drawee has insuffi-cient funds on deposit with the FederalReserve Bank or member bank to coverthe face amount of such check.

1-293


12 USC501a

Provides that penalty for violation ofFederal Reserve Act by national bank isforfeiture of charter in a suit brought bythe Comptroller at the direction of Board.

1-0091-010


12 USC 502 Liability of shareholders of FederalReserve Bank for obligations of theReserve Bank.

1-007

Federal ReserveAct, sec. 22(f)

12 USC 503 Provides for personal liability ofdirectors and officers of a memberbank for a knowing violation of12 USC 375, 375a, 375b, 376(Federal Reserve Act, sections 22(d),(e), (g), and (h)) or regulations of theBoard made under authority thereofand various provisions of title 18(Criminal Code).

1-191


12 USC 504 Civil money penalty provision forviolation by member bank of sections22 and 23A of the Federal Reserve Act.

Rules of Practicefor Hearings, 12CFR 263, sec-tion 263.1(e)and subpart C

1-262et seq.8-0448-086.3et seq.



Statute

U.S.Code


Regulation

FRRSLocatorNumber

Federal ReserveAct, sec. 19(l)(1)

12 USC 505 Civil money penalty provisions forviolation by member bank of sec-tion 19 of the Federal Reserve Act.

Rules of Practicefor Hearings, 12CFR 263, sec-tion 263.1(e)(2)and subpart C

1-1778-0448-086.3et seq.

Federal ReserveAct, sec. 3;and sec. 10,para. 9

12 USC521–522

Provisions regarding Federal ReserveBank branches and buildings.

1-018et seq.1-085

Federal ReserveAct, sec. 7(c)

12 USC 531 Exempts Federal Reserve Banks fromfederal, state, and local taxes except onreal property.

1-050


12 USC601–604a

Authorizes national banks to establishforeign branches; to invest in foreignbanks; and to invest in corporationsengaged in international banking. Theseprovisions apply to state member banksthrough 12 USC 335 and 321 (FederalReserve Act, sec. 9, para. 20 andpara. 3).

Reg K, Interna-tional BankingOperations,subpart A,12 CFR 211


Federal ReserveAct, sec. 25A(Edge Act)

12 USC611–631

Authorizes member banks and foreignbanks to establish corporations toengage in international banking andfinance (Edge Act corporations); suchcorporations may conduct internationalbanking operations through offices inthe United States and overseas and mayinvest in foreign organizations. Edgecorporations are subject to reserverequirements of Regulation D (12 CFR204), limitations on interest on depositsof Regulation Q (12 CFR 217), and theBoard’s margin limitations.

Reg K, Interna-tional BankingOperations,12 CFR 211,subpart A



12 USC 632 Governs disposition of property of aforeign state held by a Federal ReserveBank; gives federal courts originaljurisdiction over all civil suits involv-ing Federal Reserve Banks or corpora-tions engaged in international banking.

Reg N, Relationswith ForeignBanks andBankers, 12CFR 214


Home Owners’Loan Act of 1933

12 USC1470

Authorizes Board to regulate investmentby state member banks in state housingcorporations.

1-297.11-297.2



Statute

U.S.Code


Regulation

FRRSLocatorNumber

National HousingAct of 1934, sec.303(d)

12 USC1718(d)

Authorizes insured banks to invest inthe stock of the Federal National Mort-gage Association.

1-298

National HousingAct of 1934

12 USC1735f-5

Prohibits discrimination based on sex inthe making of a federally related mort-gage or loan. The combined income ofspouses shall be considered in determin-ing whether or not to extend mortgagecredit.

Federal DepositInsurance Act,sec. 4(b)

12 USC1814(b)

Requires state member banks thataccept deposits to obtain insurance.

1-337

Federal DepositInsurance Act,sec. 7(a)(3)

12 USC1817(a)(3)

Requires quarterly reports of condi-tion for insured banks to ensuresafety and soundness.

1-341

Change in BankControl Act,(Federal DepositInsurance Actsec. 7(j))

12 USC1817(j)

Requires prior notice to the appropriateagency for a proposed change in con-trol of an insured bank or bank hold-ing company. Establishes disapprovalcriteria and provides for civil moneypenalties for violations. Requiresreports on loans secured by 25%or more of the stock of anotherinsured bank.

Reg Y, BankHolding Compa-nies and Changein Bank Control,12 CFR 225,subpart E

1-344et seq.4-051.8et seq.

Federal DepositInsurance Act,sec. 7(k)

12 USC1817(k)

Reporting and public disclosure byinsured banks of information concern-ing extensions of credit by the bankto its officers and principal share-holders and their related interests.

Reg O, Loans toExecutive Offi-cers, Directors,and PrincipalShareholders ofMember Banks,12 CFR 215,subpart B

3-10253-987et seq.

Federal DepositInsurance Act,sec. 8(b)–(n)

12 USC1818(b)–(n)

Cease-and-desist authority over statemember banks, bank holding compa-nies, and their nonbank subsidiaries,Edge and agreement corporations, andforeign banks with state agencies oruninsured branches in the United States,and officers, directors, employees,agents, or others for violations of lawor unsafe or unsound practices.

Rules of Practicefor Hearings,12 CFR 263




Statute

U.S.Code


Regulation

FRRSLocatorNumber

Federal DepositInsurance Act,sec. 8(e)

12 USC1818(e)

Authorizes suspension, removal, orprohibition from participation ofparties affiliated with state memberbanks, bank holding companies, andother institutions under the Board’sjurisdiction for violations of law orunsafe or unsound practices.

Rules ofPractice forHearings,12 CFR 263,subpart A


Federal DepositInsurance Act,sec. 8(g)

12 USC1818(g)

Authorizes suspension, removal, orprohibition from participation of partiesaffiliated with a state member bankwho is charged with a felony.

Rules of Practicefor Hearings, 12CFR 263, sub-part D

1-369et seq.8-086.9et seq.

Federal DepositInsurance Act,sec. 8(i)

12 USC1818(i)

Provides for civil money penalty ofup to $5,000 per day for violationof an order issued under 12 USC1818(b), (c), (e), (g), or (s). Alsoprovides for enforcement of an order.

Rules of Practicefor Hearings, 12CFR 263, sub-parts A and C

1-374et seq.8-043et seq.8-086.3et seq.

Federal DepositInsurance Act,sec. 8(r)

12 USC1818(r)

Provides for removal of an officer,director, employee, or agent of aforeign bank for a violation oflaw or unsafe or unsound practicein the United States.

Rules of Practicefor Hearings, 12CFR 263, sub-part A

1-383.1et seq.8-043et seq.

Federal DepositInsurance Act,sec. 10(c) and (d)

12 USC1820(c)and (d)

Authorizes taking of testimony underoath and the issuance of subpoena inconnection with bank examination.

1-3851-385.01

Federal DepositInsurance Act,sec. 13(f);Bank HoldingCompany Act of1956, sec. 3(d)

12 USC1823(f)and1842(d)

Permits a bank holding company toacquire a failing bank in a state out-side its principal state of bankingoperations.

Reg Y, BankHolding Compa-nies and Changein Bank Con-trol, 12 CFR225.13(c)

1-385.2et seq.4-0694-024

Bank Merger Actof 1966

12 USC1828(c)

Requires prior written agency approvalfor any insured bank merger or consoli-dation or the acquisition of assets byan insured bank. Establishes uniformapproval standards and noticerequirements.

1-386et seq.

Federal DepositInsurance Act,sec. 18(i)

12 USC1828(i)

Requires prior written approval ofthe appropriate agencies for aninsured bank to convert to an insuredstate bank if the bank will reduce orretire stock as part of the conversion.

1-3961-397



Statute

U.S.Code


Regulation

FRRSLocatorNumber

Federal DepositInsurance Act,sec. 19

12 USC1829

Prohibition against service, withoutFDIC approval, as director, officer,or employee of an insured bankupon conviction for crime involvingdishonesty or breach of trust.

1-398.5et seq.

Bank SecrecyAct of 1970;Currency andForeign Trans-actions ReportingAct of 1978

12 USC1829b

12 USC1951–1959

31 USC5311–5330

Requires insured banks and uninsuredbanks to maintain records on identitiesof account holders; requires repro-ductions or microfilm of checks andother instruments drawn on or pre-sented to it, and other records foruse in criminal, tax, or regulatoryinvestigations. Requires the main-tenance of appropriate types of recordsand the making of appropriate reportsby businesses in the United Stateswhen records or reports have a highdegree of usefulness in criminal, tax,or regulatory investigations orproceedings.

FinancialRecordkeepingand Reportingof Currencyand ForeignTransactions,31 CFR 1010(Treasury reg)

3-1700et seq.

Federal DepositInsurance Act,sec. 38

12 USC1831o

Prompt corrective action—definesthe capital measures and capitallevels used for determining super-visory actions.

Reg H, Mem-bership ofState BankingInstitutions inthe FederalReserve System,12 CFR 208.40

1-400.4et seq.3-3253-326

Federal DepositInsurace Act,sec. 39

12 USC1831p-1

Safety-and-soundness standards.Requires banking agency to prescribestandards relating to banking opera-tions, asset quality, earnings, andexecutive compensation.

Reg H, Mem-bership ofState BankingInstitutions inthe FederalReserve System,12 CFR 208,app. D-1

1-401et seq.3-1579.3

ConsumerCheckingAccount EquityAct of 1980;Federal ReserveAct, sec. 19(i)

12 USC1832,371a

Authorizes depository institutions tooffer NOW accounts and automatictransfers from savings to checking.

1-175

Bank HoldingCompany Act of1956

12 USC1841 etseq.

Governs acquisition of bank stock bycompanies and provides generally forthe separation of banking and com-merce by restricting the activities inwhich bank affiliates may engage.

Reg Y, BankHolding Compa-nies and Changein Bank Control,12 CFR 225

4-001et seq.


Commercial Bank Examination Manual April 2015

Statute

U.S.Code


Regulation

FRRSLocatorNumber

Bank HoldingCompanyAct of 1956,sec. 2(h)(2);InternationalBanking Act of1978

12 USC1841(h)(2)

12 USC3101 etseq.

Permits foreign banks that are subjectto the International Banking Act tohold shares of a foreign nonbankingcompany that engages in business inthe United States, provided that theU.S. activities are in the same line ofbusiness as the foreign activities of theforeign nonbank company. Exemptiondoes not extend to securities activitiesor banking or financial operations.

Reg Y, BankHolding Compa-nies and Changein Bank Control,12 CFR225.22(h);Reg K, Interna-tional BankingOperations, 12CFR 211, sub-part B

4-0644-0371-562et seq.3-6713-630et seq.

Bank HoldingCompany Act of1956, sec. 3

12 USC1842

Requires prior Board approval tobecome a bank holding company; toacquire more than 5% of another bank;to merge or consolidate bank holdingcompanies. Requires notice of filingof applications to other regulators.Prohibits interstate acquisitions exceptin the case of failing institutions under12 USC 1823(f) or where state lawpermits.

Reg Y, BankHolding Compa-nies and Changein Bank Control,12 CFR 225,subpart B


Bank HoldingCompany Act of1956, sec. 4

12 USC1843

Generally prohibits acquisition of morethan 5% of the shares of a nonbankcompany. Exceptions include shares ofkind eligible for investment by nationalbanks; and where Board finds the activ-ities to be so closely related to bankingas to be a proper incident thereto. TheBoard has delineated over 20 activitiesas closely related to banking.

Reg Y, BankHolding Compa-nies and Changein Bank Control,12 CFR 225,subpart B


Bank HoldingCompany Act of1956, sec. 4(a)(2)

12 USC1843(a)(2)

Provides grandfather rights for non-banking activities commenced beforeJune 30, 1968.

Reg Y, BankHolding Compa-nies and Changein Bank Control,12 CFR 225.22(g)

4-0714-0724-037

Bank HoldingCompany Act of1956, sec. 4(c)(9)

12 USC1843(c)(9)

Permits Board to grant further non-banking exemptions to foreign banksif the exemptions are not substantiallyat variance with the purposes of theact and are in the public interest.

Reg Y, BankHolding Compa-nies and Changein Bank Control,12 CFR225.22(h);Reg K, Inter-national BankingOperations,12 CFR 211,subpart B

4-0784-037et seq.3-630et seq.


April 2015 Commercial Bank Examination Manual

Statute

U.S.Code


Regulation

FRRSLocatorNumber

Bank HoldingCompany Act of1956 sec. 4(c)(13)

12 USC1843(c)(13)

Permits bank holding companies toacquire foreign companies that dono business in the United Statesexcept as an incident to their foreignbusiness.

Reg K, Interna-tional BankingOperations, 12CFR 211.5

4-0803-609et seq.

Bank HoldingCompany Actof 1956,sec. 4(c)(14)

12 USC1843(c)(14)

Permits bank holding companies toinvest in export trading companies,i.e., companies exclusively engagedin matters relating to internationaltrade and principally engaged inexporting.

Reg K, Interna-tional BankingOperations, 12CFR 211, sub-part C

4-080.13-649et seq.

General authorityto consider safetyand soundness

Prohibits redemption of bank holdingcompany equity securities under certaincircumstances without prior notice toBoard in order to prevent unsafe orunsound reductions of capital.

Reg Y, BankHolding Compa-nies and Changein Bank Control,12 CFR 225.4(b)

4-013et seq.

Bank HoldingCompany Actsec. 4(k)–(o)

12 USC1843(k)–(o)

Permits bank holding companiesand foreign banks that qualifyas financial holding companiesto engage in securities, insurance,and other activities that arefinancial in nature or incidentalto a financial activity and to makemerchant banking investments.

Reg Y, BankHolding Com-panies andChange in BankControl, 12CFR 225, sub-parts I and J

4-082.7et seq.4-056et seq.

Bank HoldingCompany Act of1956, sec.5(a)–(d), (f)

12 USC1844

Requires bank holding companies toregister with Board and authorizesBoard to issue regulations to carryout the purposes of the act, to requirereports and conduct examinations ofbank holding companies and theirsubsidiaries, and to take depositionsand subpoena documents.

Reg Y, BankHolding Compa-nies and Changein Bank Control,12 CFR 225;Rules of Practicefor Hearings,12 CFR 263

4-083–4-0854-0884-001et seq.8-043et seq.

Bank HoldingCompany Act of1956, sec. 5(e)

12 USC1844(e)

Authorizes Board to require divestitureof nonbank subsidiaries or termina-tion of nonbank activity if the Boarddetermines that the subsidiary or activ-ity constitutes a serious risk to thefinancial safety and soundness orstability of bank holding company.

Reg Y, BankHolding Compa-nies and Changein Bank Control,12 CFR 225.4(a)

4-0864-0874-012

Bank HoldingCompany ActAmendments of1970, sec. 106(b)

12 USC1972

Prohibition against tie-in arrangementsby banks. The Board has rulemakingand exemptive authority.

Reg Y, BankHolding Compa-nies and Changein Bank Control,12 CFR 225.7

4-147et seq.4-017.14-017.2



Statute

U.S.Code


Regulation

FRRSLocatorNumber

Bank HoldingCompany ActAmendments of1970, sec.106(b)(2)

12 USC1972(2)

Prohibits preferential extensions ofcredit by insured banks based oncorrespondent account relationships.

Reg O, Loans toExecutive Offi-cers, Directorsand PrincipalShareholders ofMember Banks,12 CFR 215,subpart B


Bank HoldingCompany ActAmendments of1970, sec. 106(b)(2)(G)(i)

12 USC1972(2)(G)(i)

Reporting and public disclosure require-ments for executive officers and princi-pal shareholders of insured banks withrespect to extensions of credit fromcorrespondent banks.


3-10233-987et seq.

Bank HoldingCompany ActAmendments of1970, sec. 106(b)(2)(G)(ii)

12 USC1972(2)(G)(ii)

Reporting and public disclosurerequirements for insured banksregarding extensions of credit bycorrespondent banks to the reportingbank’s officers and principalshareholders.


3-10243-987et seq.

Bank ServiceCompany Act,sec. 1–7

12 USC1861–1867

Permits insured banks to invest in acorporation that provides services fordepository institutions; and, with theprior approval of the agency, in a bankservice company that provides ser-vices to others that are authorized forits bank parent(s) only at locationswhere its bank parent(s) may performsuch services.

1-324et seq.

Bank ServiceCompany Act,sec. 5

12 USC1865

Requires prior Board approval fora member bank to invest in a bankservice company that performsservices permissible for bank holdingcompanies under section 4(c)(8) of theBHC Act and at any geographiclocation other than where itsparent could perform the service.

1-327.1



Statute

U.S.Code


Regulation

FRRSLocatorNumber

Bank ProtectionAct of 1968,sec. 2–5

12 USC1881–1884

Requires establishment of standards forinstallation, maintenance, and operationof bank security devices and proce-dures. Requires annual reports of com-pliance and appointment of a securityofficer.



Credit ControlAct

12 USC1901–1909

Permits Board, upon authorization bythe president, to regulate and controlall extensions of credit, and to requirereports regarding any extensions ofcredit. Authorizes imposition of civilmoney penalties on any person whoviolates the regulations or fails to reportas required. (Expired June 30, 1982.)

1-535et seq.

Real EstateSettlement Pro-cedures Act

12 USC2601–2617

Requires disclosure of all costs associ-ated with purchases of real estate andprohibits payments of kickbacks andunearned fees in any transaction con-cerning a federally related mortgage.

Real EstateSettlementProcedures,24 CFR 3500(HUD reg)

6-1350et seq.6-1370et seq.

Home MortgageDisclosure Act

12 USC2801–2811

Requires reports and public disclosureof the number and amount of mortgageloans made by depository institutionswithin a geographic area by censustract.

Reg C, HomeMortgage Dis-closure, 12 CFR203


Community Rein-vestment Act

12 USC2901–2905

Requires federal financial supervisoryagencies to examine depository institu-tions to determine whether such institu-tions are meeting the credit needs oftheir communities; and requires suchagencies to consider the records of suchinstitutions in meeting communitycredit needs in acting on applicationsby such institutions for additionaldeposit facilities.

Reg BB, Com-munity Reinvest-ment, 12 CFR228

6-1247et seq.6-1220et seq.

InternationalBanking Act of1978, sec. 1

12 USC3101

Foreign banks required to designate ahome office if they do not have deposit-taking offices. The Riegle-NealInterstate Banking Act of 1994removed geographic restrictions oninterstate banking by foreign banks.

Reg K, Interna-tional BankingOperations,12 CFR 211.22

1-562et seq.3-633



Statute

U.S.Code


Regulation

FRRSLocatorNumber


12 USC3103

Restricts the U.S. expansion of a for-eign bank’s deposit-taking capabilitiesacross state lines; provides for estab-lishment of limited branches thataccept only those deposits permissiblefor an Edge corporation; andimposes prohibition contained insection 3(d) of the Bank Holding Com-pany Act on acquisition of bank assetsor shares outside the foreign bank’shome state.

Reg K, Interna-tional BankingOperations,12 CFR 211,subpart B


InternationalBanking Act of1978, sec. 7(a)

12 USC3105(a)

Subjects U.S. branches and agenciesof foreign banks to reserve require-ments and prohibition against paymentof interest on demand deposits.

Reg D, ReserveRequirements ofDepository Insti-tutions, 12 CFR204; Reg Q,ProhibitionAgainst Paymentof Interest onDemand Deposits,12 CFR 217

1-5672-122et seq.2-380et seq.

InternationalBanking Actof 1978,sec. 7(c);Federal ReserveAct, sec. 13,para. 14

12 USC3105(c)

12 USC347d

Gives Board authority to examine eachU.S. branch, agency, or commerciallending company of a foreign bank.Requires each branch or agency to sub-mit quarterly Reports of Condition.Subjects branches and agencies to pro-hibitions on underwriting and dealingin securities.

1-5691-123.1


12 USC3106

Subjects foreign bank with a U.S.branch, agency, commercial lendingcompany, or subsidiary bank to theBank Holding Company Act; grand-fathers certain activities and invest-ments of foreign banks; prohibits tie-inarrangements under section 106(b)of the Bank Holding Company ActAmendments of 1970 (12 USC1972).

Reg K, Interna-tional BankingOperations,12 CFR 211,subpart B


Foreign banks permitted to establishU.S. representative offices withoutfiling a formal application.


3-648.1



Statute

U.S.Code


Regulation

FRRSLocatorNumber

Criteria for ‘‘well-managed.’’ Reg K, Interna-tional BankingOperations,12 CFR 211.5

3-609et seq.

Criteria for evaluating the U.S.operations of foreign banks that theBoard determines are not subjectto comprehensive consolidated super-vision or regulation.


3-648.7et seq.

InternationalBanking Act of1978, sec. 9(b)

12 USC3106a

Prohibits discrimination by U.S. officesof foreign banks and requires disap-proval of applications by such foreignbanks if banks do not agree to complywith antidiscrimination laws.

1-573.1

Depository Insti-tutions Manage-ment InterlocksAct

12 USC3201–3208

Prohibits management official inter-locks between two depository organi-zations if they are not affiliated andare either very large or located in thesame local area.

Reg L, Manage-ment OfficialInterlocks, 12CFR 212


Federal FinancialInstitutions Exam-ination CouncilAct

12 USC3301–3308

Establishes a council to prescribe uni-form principles, standards, and reportforms for examination of financialinstitutions and to promote uniformityin other supervisory matters.

12 CFR 1101(FFIEC reg)

Right to FinancialPrivacy Act

12 USC3401–3422

Establishes standards under which afederal government agency may obtain,and a financial institution may provide,information contained in financial rec-ords of a customer of the financialinstitution. Provides for cost reim-bursement to institution for furnishingrecords of customers.

Reg S, Reim-bursement toFinancial Institu-tions for Assem-bling or Provid-ing FinancialRecords, 12 CFR219

6-1750et seq.3-1200et seq.

Garn–St GermainDepository Insti-tutions Act of1982, sec. 204

12 USC3503

Establishes a deposit account directlyequivalent to a money market mutualfund and exempts such account fromtransaction account reserves, section19(b) of the Federal Reserve Act(12 USC 461).

Reg D, ReserveRequirementsof DepositoryInstitutions, 12CFR 204.2(d)(2)

2-138.1

Truth in SavingsAct

12 USC4301et seq.

Requires clear and uniform disclo-sures about deposit accounts.

Reg DD,Truth inSavings,12 CFR 230

6-1900et seq.



Statute

U.S.Code


Regulation

FRRSLocatorNumber

Federal DepositInsuranceCorporationImprovementAct, sec.401–407

12 USC4401–4407

Validates netting contracts amongfinancial institutions and expandsdefinition of ‘‘financial institution.’’

Payments SystemRisk Policy;Reg EE,Netting Eligi-bility forFinancialInstitutions,12 CFR 231

9-1500et seq.9-1000et seq.9-1475et seq.

Clayton AntitrustAct, sec. 7 and 8

15 USC 18,19

Prohibits mergers, acquisitions, andsimilar transactions between banksthat substantially lessens competition.Prohibits certain interlocking bankdirectorates.

1-404et seq.

Robinson-PatmanAnti-Discrimina-tion Act, sec. 11

15 USC 21 Authorizes Board to take enforcementaction against banks for discriminationin price, services, and facilities.

1-407et seq.

Federal TradeCommission Act,sec. 18(f)

15 USC57a(f)

Authorizes Board to adopt rules pro-hibiting unfair or deceptive acts orpractices by banks and to take regu-latory action to prohibit those acts orpractices on its own motion and tomirror comparable rules adopted byFederal Trade Commission.

Reg AA, Unfairor DeceptiveActs or Prac-tices, 12 CFR227

6-12036-12046-1200et seq.

SecuritiesExchange Actof 1934,sec. 17A

15 USC78q-1

Provides for the registration of statemember banks acting as transfer agentsand municipal securities dealers;establishes procedure for registrationand withdrawal of transfer agents andmunicipal securities dealers and setsforth enforcement authority over clear-ing agents, transfer agents, andmunicipal securities dealers.

Reg H, Member-ship of StateBanking Institu-tions in the Fed-eral Reserve Sys-tem, 12 CFR208, subpart C


SecuritiesExchangeAct of 1934

15 USC78b, 78c,78i, 78j,78l, 78p,78r, 78t,78u, 78w,78x,78aa,78bb,78dd,78ff

Regulates transactions in bank securi-ties to prevent unfair or manipulativepractices, requires reports by publiclyheld banks, including securities regis-tration statements, proxy statements,and periodic financial statements andreports by officers and directors regard-ing their shareholdings.

Reg H, Mem-bership ofState BankingInstitutions in theFederal ReserveSystem, 12 CFR208.36




Statute

U.S.Code


Regulation

FRRSLocatorNumber

SecuritiesExchange Actof 1934,sec. 7 and 8

15 USC78g, 78h

Authorizes Board to regulate amountof credit that may be extended tofinance securities transactions; makesit unlawful for brokers, dealers, mem-bers of exchanges, or other personsto extend credit for the purpose ofpurchasing or carrying securitieswithout complying with rules issuedby the Board. Also makes it unlawfulfor any person to obtain an extensionof credit in the United States or for aU.S. person or a foreign person con-trolled by or acting on behalf of a U.S.person to purchase various types ofsecurities without complying withrules issued by the Board. Makes itunlawful for any registered broker,dealer, or member of a nationalsecurities exchange to (1) borrow onany registered security except fromspecified classes of banks, (2) arrangefor the hypothecation of customersecurities in contravention of Boardrules, and (3) lend or arrange for thelending of a customer’s securities incontravention of Board rules.

Reg T, Creditby Brokersand Dealers, 12CFR 220; Reg U,Credit by Banksor PersonsOther ThanBrokers orDealers forthe Purpose ofPurchasing orCarrying MarginStocks, 12 CFR221; Reg X,Borrowers ofSecurities Credit,12 CFR 224

5-049et seq.5-392et seq.5-745et seq.5-970et seq.

SecuritiesExchange Act of1934, sec. 30Aand 30B

15 USC78dd-1,78dd-2

Prohibits an issuer of securities reg-istered under the Securities ExchangeAct from giving anything of value to aforeign official to influence any act ordecision of said official. Bankingagencies have determined that suchactions are considered unsafe andunsound practices.

5-248et seq.

Public UtilityHoldingCompany Act

15 USC 79q Prohibits director and officer interlocksbetween a public utility holding com-pany and a bank without SEC approval.

Investment Com-pany Act of 1940,sec. 10(c)

15 USC80a-10

Prohibits a registered investment com-pany from having a majority of itsboard of directors consist of officers,directors, or employees of any one bank.

5-262

Small BusinessAct, sec. 6

15 USC635(a)

Authorizes Federal Reserve Banks toact as fiscal agents for the SmallBusiness Administration.

1-277



Statute

U.S.Code


Regulation

FRRSLocatorNumber

Small BusinessInvestment Act,sec. 302

15 USC 682 Authorizes member banks to invest inSmall Business Investment Companiesup to 5% of bank’s capital and surplus.

1-299

Truth in LendingAct

15 USC1601–1646

Requires creditors to disclose to con-sumers the cost and terms of credit;gives consumers the right to cancelcertain credit transactions; regulatescredit card issuance and liability;prescribes certain requirements foradvertising credit.

Reg Z, Truth inLending, 12 CFR226 (covers allcreditors)


Fair CreditBilling Act

15 USC1666–1666j

Provides for fair and timely resolutionof credit billing disputes; regulatescertain credit card practices.

Reg Z, Truth inLending, 12 CFR226 (covers allcreditors)


Consumer Leas-ing Act

15 USC1667–1667e

Requires accurate disclosure of con-sumer leasing terms; limits lessee lia-bility; prescribes certain requirementsfor advertising consumer leases.

Reg M, Con-sumer Leasing,12 CFR 213(covers alllessors)


Fair CreditReporting Act

15 USC1681–1681t

Protects consumers against inaccurateor misleading information in credit filesmaintained by credit bureaus; requiresthese bureaus to allow credit applicantsto correct erroneous reports.

6-1550et seq.

Equal CreditOpportunityAct

15 USC1691–1691f

Prohibits credit discrimination on thebasis of race, color, religion, nationalorigin, sex, marital status, or age orbecause of receipt of public assistanceor exercise of rights under the con-sumer Credit Protection Act; requirescreditors to notify applicants ofaction taken on the application.

Reg B, EqualCredit Oppor-tunity, 12 CFR202 (covers allcreditors)


Equal CreditOpportunity Act,sec. 703(b)

15 USC1691b

Authorizes Board to establish aConsumer Advisory Council to adviseand consult with the Board on theConsumer Credit Protection Act andother consumer-related matters.

Rules of Organi-zation and Proce-dure of the Con-sumer AdvisoryCouncil, 12CFR 267

6-1006-2500et seq.

Fair Debt Collec-tion PracticesAct

15 USC1692

Prohibits the use of abusive, deceptive,and unfair debt collection practices bythird-party debt collectors.

6-1675et seq.



Statute

U.S.Code


Regulation

FRRSLocatorNumber

Electronic FundTransfer Act

15 USC1693–1693r

Prescribes disclosure and documenta-tion requirements for institutionsinvolved in electronic funds transfers;requires prompt resolution of errors onelectronic transfer accounts; limitscustomer liability for unauthorizeduse of EFT card.

Reg E, ElectronicFund Transfers,12 CFR 205


Emergency LoanGuarantee Act

15 USC1841–1852

Creates the Emergency Loan GuaranteeBoard (composed of the secretary of theTreasury, chairman of the FederalReserve Board, and chairman of theSEC) to guarantee loans for borrowerswhose failure would adversely affectthe economy. (Authority to enter into aguarantee ended 12/31/73.)

1-548et seq.

Emergency LoanGuarantee Act,sec. 10

15 USC1849

Authorizes Federal Reserve Banks to actas fiscal agents for the Loan GuaranteeBoard.

1-558

Criminal Codesec. 208

18 USC208

Establishes standards of conduct forReserve Bank directors in the exerciseof their duties.


8-168et seq.

Act of June 25,1948

18 USC212–215,655, and1906

Prohibits the offering of or acceptanceby a bank examiner of a loan or gratuity,as well as theft or disclosure of confi-dential banking data by a bank examiner.Also prohibits bank officers, directors,employees, agents, or attorneys fromreceiving payment for procuring orattempting to procure a loan or exten-sion of a loan for a third party.

1-451et seq.1-4561-465

Bank Bribery Act 18 USC215

Proscribes corrupt activity within finan-cial institutions. Federal Reserve guide-lines issued by the Board on Octo-ber 21, 1987 (SR-87-36) inform statemember banks and bank holding com-panies to develop codes or policies toalert bank or bank holding companyofficials about the bank bribery statute,as well as to establish and enforcestandards relating to acceptablebusiness practices.

1-4543-1504


Commercial Bank Examination Manual April 2015

Statute

U.S.Code


Regulation

FRRSLocatorNumber

Various statutes 22 USC282d,283d,284d,285d,290g-5,290i-5

Authorizes Reserve Banks to act asdepositories and/or fiscal agents forvarious agencies, such as theInternational Finance Corporation,Inter-American Development Bank,International Development Association,Asian Development Bank, AfricanDevelopment Fund, and AfricanDevelopment Bank.

9-839et seq.

Bretton WoodsAgreements Act,sec. 4

22 USC286b

Authorizes the chairman of the Boardand others to establish the NationalAdvisory Council on InternationalMonetary and Financial Problems.

1-477–1-480


22 USC286d

Authorizes Reserve Banks to act as fis-cal agents or as a depository for theIMF and the International Bank forReconstruction and Development.

9-836


22 USC286f andExec.Order10033

Authorizes Board to require persons,by subpoena or otherwise, to provideinformation at the request of thepresident.

1-4841-485

Special DrawingRights Act of1968

22 USC286p

Authorizes issuance of special drawingrights to Reserve Bank.

1-290

Internal RevenueCode

26 USC5703,6302

Authorizes Reserve Banks to receivetaxes imposed on tobacco products,any other tax under Internal Revenuelaws, or state individual income taxes.

1-269

Bank SecrecyAct of 1970;Currency andForeignTransactionsReporting Actof 1978

31 USC5311–5322

Requires persons and financial institu-tions involved in the transmission offunds exceeding specified amounts toor from the United States to file reportswith the secretary of the Treasury inorder to further enforcement of crim-inal, tax, or other investigatoryproceedings.

FinancialRecordkeepingand Reportingof Currencyand ForeignTransactions,31 CFR 1010(Treasury reg)

3-1700et seq.3-1760et seq.

Fair Housing Act 42 USC3601–3619

Prohibits discrimination on the basis ofrace, color, religion, sex, or nationalorigin in housing-related transactions;requires agencies to administer housing-related activities and programs in away that affirmatively promotes thepurposes of the act.

6-1450et seq.


April 2015 Commercial Bank Examination Manual

Statute

U.S.Code


Regulation

FRRSLocatorNumber

Flood DisasterProtection Act;National FloodInsurance Act

42 USC4003,4012a,4104a,4106,4128

Prohibits federally regulated lendinginstitutions from making any loansecured by improved real estate or amobile home located in designatedflood hazard areas unless the propertyis covered by flood insurance. Alsoprohibits lending by such institutionsin designated flood hazard areaswithout prior notice to purchasers ofsuch property.



Defense Produc-tion Act of 1950

50 App.USC 2091,2152et seq.Exec.Order12919

Authorizes Board to establish interestrates, fees, and other charges on feder-ally guaranteed loans for defense pro-duction under the act or executiveorder. Authorizes Federal ReserveBanks to act as fiscal agents for anyguaranteeing agency, under thesupervision of the Board.



Statute

U.S.Code


Regulation

FRRSLocatorNumber

REFERENCE TABLE OF FEDERAL RESERVE ACT SECTIONS

U.S.Code

Title 12,Section

FederalReserve

Act,Section

U.S.Code

Title 12,Section

FederalReserve

Act,Section

U.S.Code

Title 12,Section

FederalReserve

Act,Section

U.S.Code

Title 12,Section

FederalReserve

Act,Section

1 10, ¶835 859 2882 13, ¶9

101anote 17

121 20221 1, ¶¶2, 3, 4222 2, ¶1223 2, ¶1224 2, ¶13225 2, ¶2225a 2A226 1, ¶1241 10, ¶1242 10, ¶2243 10, ¶3244 10, ¶4245 10, ¶5246 10, ¶6247 10, ¶7247a 10, ¶10248 11248(o) 16, ¶14248a 11A248b 11B261 12, ¶1262 12, ¶2263 12A281 2, ¶13282 2, ¶3283 2, ¶9284 2, ¶10285 2, ¶11286 2, ¶12287 5288 6289 7, ¶1290 7, ¶2301 4, ¶¶6–8302 4, ¶¶9–12303 4, ¶¶13–15304 4, ¶¶16–19305 4, ¶20306 4, ¶21

307 4, ¶22308 4, ¶24321 9, ¶¶1–3322 9, ¶4323 9, ¶5324 9, ¶6325 9, ¶7326 9, ¶8327 9, ¶9328 9, ¶10329 9, ¶11329a 9, ¶12330 9, ¶13331 9, ¶14332 9, ¶15333 9, ¶16334 9, ¶¶17–19335 9, ¶20336 9, ¶21338 9, ¶22338a 9, ¶23339 9A341 4, ¶¶4, 5342 13, ¶1343 13, ¶¶2, 3344 13, ¶4345 13, ¶5346 13, ¶6347 13, ¶8347a 10A347b 10B347c 13, ¶13347d 13, ¶14348 13A, ¶1348a 14(g)349 13A, ¶2350 13A, ¶3351 13A, ¶4352 13A, ¶5353 14, ¶1354 14(a)355 14(b)356 14(c)357 14(d)358 14(e)

359 14(f)359a 14(h)360 16, ¶13371 24371a 19(i)371b 19(j)371b-2 23371c 23A371c-1 23B371d 24A372 13, ¶7373* 13, ¶12374 19(e)374a 19(d)375 22(d), ¶¶1, 2375a 22(g)375b 22(h)376 22(e)391 15, ¶1392 15, ¶2393 15, ¶3411 16, ¶1412 16, ¶2413 16, ¶3414 16, ¶4415 16, ¶5416 16, ¶6417 16, ¶7418 16, ¶8419 16, ¶9420 16, ¶10421 16, ¶11441 18, ¶1442 18, ¶¶2, 3443 18, ¶4444 18, ¶5445 18, ¶6446 18, ¶7447 18, ¶8448 18, ¶9461 19(a), (b), (c)463 19(e)464 19(f)465 19(g)466 19(h)

467 16, ¶¶15–17481 21, ¶¶1–3482 21, ¶¶4, 8483 21, ¶5484 21, ¶6485 21, ¶7486 21, ¶9501a 2, ¶¶6, 7502 2, ¶4503 22(f)504 29505 19(l)506 19(m)521 3522 10, ¶9531 7, ¶3601 25, ¶¶1–6602 25, ¶7603 25, ¶8604 25, ¶9604a 25, ¶10611 25A, ¶1611a 25A, ¶13612 25A, ¶2613 25A, ¶3614 25A, ¶4615 25A, ¶¶5–9616 25A, ¶10617 25A, ¶11618 25A, ¶12619 25A, ¶13620 25A, ¶14621 25A, ¶15622 25A, ¶16623 25A, ¶17624 25A, ¶18625 25A, ¶19626 25A, ¶20627 25A, ¶21628 25A, ¶22629 25A, ¶23630 25A, ¶24631 25A, ¶25632 25B633 25C

* Not codified to the Federal Reserve Act.



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