Laws: Cases and Codes : U.S. Code : Title 12 : Section 615


   
U.S. Code as of: 01/19/04
Section 615. Powers of corporation

      Each corporation organized as provided in sections 611 to 614 of
    this title shall have power, under such rules and regulations as
    the Board of Governors of the Federal Reserve System may prescribe:
    (a) Dealings in drafts, checks, bills of exchange, acceptances, and
      other evidences of indebtedness; purchase and sale of securities;
      letters of credit; purchase and sale of coin, bullion, and
      exchange; borrowing and loaning money; issue of debentures,
      bonds, and notes; deposits; limitation of liabilities; reserves
      To purchase, sell, discount, and negotiate, with or without its
    indorsement or guaranty, notes, drafts, checks, bills of exchange,
    acceptances, including bankers' acceptances, cable transfers, and
    other evidences of indebtedness; to purchase and sell, with or
    without its indorsement or guaranty, securities, including the
    obligations of the United States or of any State thereof but not
    including shares of stock in any corporation except as herein
    provided; to accept bills or drafts drawn upon it subject to such
    limitations and restrictions as the Board of Governors of the
    Federal Reserve System may impose; to issue letters of credit; to
    purchase and sell coin, bullion, and exchange; to borrow and to
    lend money; to issue debentures, bonds, and promissory notes under
    such general conditions as to security and such limitations as the
    Board of Governors of the Federal Reserve System may prescribe; to
    receive deposits outside of the United States and to receive only
    such deposits within the United States as may be incidental to or
    for the purpose of carrying out transactions in foreign countries
    or dependencies or insular possessions of the United States; and
    generally to exercise such powers as are incidental to the power
    conferred by this Act or as may be usual, in the determination of
    the Board of Governors of the Federal Reserve System, in connection
    with the transaction of the business of banking or other financial
    operations in the countries, colonies, dependencies, or possessions
    in which it shall transact business and not inconsistent with the
    powers specifically granted herein. Nothing contained in this
    subchapter shall be construed to prohibit the Board of Governors of
    the Federal Reserve System, under its power to prescribe rules and
    regulations, from limiting the aggregate amount of liabilities of
    any or all classes incurred by the corporation and outstanding at
    any one time. Whenever a corporation organized under this
    subchapter receives deposits in the United States authorized by
    this subchapter, it shall carry reserves in such amounts as the
    Board of Governors of the Federal Reserve System may prescribe for
    member banks of the Federal Reserve System.
    (b) Branches or agencies
      To establish and maintain for the transaction of its business
    branches or agencies in foreign countries, their dependencies or
    colonies, and in the dependencies or insular possessions of the
    United States, at such places as may be approved by the Board of
    Governors of the Federal Reserve System and under such rules and
    regulations as it may prescribe, including countries or
    dependencies not specified in the original organization
    certificate.
    (c) Purchase of stock in other corporations
      With the consent of the Board of Governors of the Federal Reserve
    System to purchase and hold stock or other certificates of
    ownership in any other corporation organized under the provisions
    of this subchapter, or under the laws of any foreign country or a
    colony or dependency thereof, or under the laws of any State,
    dependency, or insular possession of the United States but not
    engaged in the general business of buying or selling goods, wares,
    merchandise, or commodities in the United States, and not
    transacting any business in the United States except such as in the
    judgment of the Board of Governors of the Federal Reserve System
    may be incidental to its international or foreign business:
    Provided, however, That, except with the approval of the Board of
    Governors of the Federal Reserve System, no corporation organized
    under this subchapter shall invest in any one corporation an amount
    in excess of 10 per centum of its own capital and surplus, except
    in a corporation engaged in the business of banking, when 15 per
    centum of its capital and surplus may be so invested: Provided
    further, That no corporation organized under this subchapter shall
    purchase, own, or hold stock or certificates of ownership in any
    other corporation organized under this subchapter or under the laws
    of any State which is in substantial competition therewith, or
    which holds stock or certificates of ownership in corporations
    which are in substantial competition with the purchasing
    corporation.
      Nothing contained herein shall prevent corporations organized
    under this subchapter from purchasing and holding stock in any
    corporation where such purchase shall be necessary to prevent a
    loss upon a debt previously contracted in good faith; and stock so
    purchased or acquired in corporations organized under this
    subchapter shall, within six months from such purchase, be sold or
    disposed of at public or private sale, unless the time to so
    dispose of same is extended by the Board of Governors of the
    Federal Reserve System.



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