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U.S. Code as of:
01/19/04
Section 1832. Withdrawals by negotiable or transferable instruments for transfers to third parties
(a) Authority of depository institution; applicability
(1) Notwithstanding any other provision of law but subject to
paragraph (2), a depository institution is authorized to permit the
owner of a deposit or account on which interest or dividends are
paid to make withdrawals by negotiable or transferable instruments
for the purpose of making transfers to third parties.
(2) Paragraph (1) shall apply only with respect to deposits or
accounts which consist solely of funds in which the entire
beneficial interest is held by one or more individuals or by an
organization which is operated primarily for religious,
philanthropic, charitable, educational, political, or other similar
purposes and which is not operated for profit, and with respect to
deposits of public funds by an officer, employee, or agent of the
United States, any State, county, municipality, or political
subdivision thereof, the District of Columbia, the Commonwealth of
Puerto Rico, American Samoa, Guam, any territory or possession of
the United States, or any political subdivision thereof.
(b) "Depository institution" defined
For purposes of this section, the term "depository institution"
means -
(1) any insured bank as defined in section 1813 of this title;
(2) any State bank as defined in section 1813 of this title;
(3) any mutual savings bank as defined in section 1813 of this
title;
(4) any savings bank as defined in section 1813 of this title;
(5) any insured institution as defined in section 1724 (!1) of
this title; and
(6) any building and loan association or savings and loan
association organized and operated according to the laws of the
State in which it is chartered or organized; and, for purposes of
this paragraph, the term "State" means any State of the United
States, the District of Columbia, any territory of the United
States, Puerto Rico, Guam, American Samoa, or the Virgin Islands.
(c) Fine
Any depository institution which violates this section shall be
fined $1,000 for each violation.
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