Laws: Cases and Codes : U.S. Code : Title 12 : Section 601


   
U.S. Code as of: 01/19/04
Section 601. Authorization; conditions and regulations

      Any national banking association possessing a capital and surplus
    of $1,000,000 or more may file application with the Board of
    Governors of the Federal Reserve System for permission to exercise,
    upon such conditions and under such regulations as may be
    prescribed by the said board, the following powers:
      First. To establish branches in foreign countries or dependencies
    or insular possessions of the United States for the furtherance of
    the foreign commerce of the United States, and to act if required
    to do so as fiscal agents of the United States.
      Second. To invest an amount not exceeding in the aggregate 10 per
    centum of its paid-in capital stock and surplus in the stock of one
    or more banks or corporations chartered or incorporated under the
    laws of the United States or of any State thereof, and principally
    engaged in international or foreign banking, or banking in a
    dependency or insular possession of the United States either
    directly or through the agency, ownership, or control of local
    institutions in foreign countries, or in such dependencies or
    insular possessions.
      Third. To acquire and hold, directly or indirectly, stock or
    other evidences of ownership in one or more banks organized under
    the law of a foreign country or a dependency or insular possession
    of the United States and not engaged, directly or indirectly, in
    any activity in the United States except as, in the judgment of the
    Board of Governors of the Federal Reserve System, shall be
    incidental to the international or foreign business of such foreign
    bank; and, notwithstanding the provisions of section 371c of this
    title, to make loans or extensions of credit to or for the account
    of such bank in the manner and within the limits prescribed by the
    Board by general or specific regulation or ruling.
      Until January 1, 1921, any national banking association, without
    regard to the amount of its capital and surplus, may file
    application with the Board of Governors of the Federal Reserve
    System for permission, upon such conditions and under such
    regulations as may be prescribed by said board, to invest an amount
    not exceeding in the aggregate 5 per centum of its paid-in capital
    and surplus in the stock of one or more corporations chartered or
    incorporated under the laws of the United States or of any State
    thereof and, regardless of its location, principally engaged in
    such phases of international or foreign financial operations as may
    be necessary to facilitate the export of goods, wares, or
    merchandise from the United States or any of its dependencies or
    insular possessions to any foreign country: Provided, however, That
    in no event shall the total investments authorized by this
    subchapter by any one national bank exceed 10 per centum of its
    capital and surplus.
      Such application shall specify the name and capital of the
    banking association filing it, the powers applied for, and the
    place or places where the banking or financial operations proposed
    are to be carried on. The Board of Governors of the Federal Reserve
    System shall have power to approve or to reject such application in
    whole or in part if for any reason the granting of such application
    is deemed inexpedient, and shall also have power from time to time
    to increase or decrease the number of places where such banking
    operations may be carried on.



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