Laws: Cases and Codes : U.S. Code : Title 12 : Section 603


   
U.S. Code as of: 01/19/04
Section 603. Restrictions imposed by Board of Governors of the Federal Reserve System on banks purchasing stock in corporations doing foreign business

      Before any national bank shall be permitted to purchase stock in
    any corporation described in section 601 of this title, the said
    corporation shall enter into an agreement or undertaking with the
    Board of Governors of the Federal Reserve System to restrict its
    operations or conduct its business in such manner or under such
    limitations and restrictions as the said board may prescribe for
    the place or places wherein such business is to be conducted. If at
    any time the Board of Governors of the Federal Reserve System shall
    ascertain that the regulations prescribed by it are not being
    complied with, said board is authorized and empowered to institute
    an investigation of the matter and to send for persons and papers,
    subpoena witnesses, and administer oaths in order to satisfy itself
    as to the actual nature of the transactions referred to. Should
    such investigation result in establishing the failure of the
    corporation in question, or of the national bank or banks which may
    be stockholders therein, to comply with the regulations laid down
    by the said Board of Governors of the Federal Reserve System, such
    national banks may be required to dispose of stock holdings in the
    said corporation upon reasonable notice.



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