Laws: Cases and Codes : U.S. Code : Title 18 : Section 656
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U.S. Code as of:
01/19/04
Section 656 - Notes
SOURCE
(June 25, 1948, ch. 645, 62 Stat. 729; Pub. L. 101-73, title IX,
Sec. 961(b), Aug. 9, 1989, 103 Stat. 499; Pub. L. 101-647, title
XXV, Secs. 2504(b), 2595(a)(1), 2597(f), Nov. 29, 1990, 104 Stat.
4861, 4906, 4909; Pub. L. 103-322, title XXXIII, Sec. 330016(1)(H),
Sept. 13, 1994, 108 Stat. 2147; Pub. L. 104-294, title VI, Secs.
601(f)(1), 606(a), Oct. 11, 1996, 110 Stat. 3499, 3511.)
HISTORICAL AND REVISION NOTES
Based on sections 592, 597 of title 12, U.S.C., 1940 ed., Banks
and Banking (R.S. 5209; Dec. 23, 1913, ch. 6, Sec. 22(i), as added
June 19, 1934, ch. 653, Sec. 3, 48 Stat. 1107; Sept. 26, 1918, ch.
177, Sec. 7, 40 Stat. 972; Aug. 23, 1935, ch. 614, Sec. 316, 49
Stat. 712).
Section 592 of title 12, U.S.C., 1940 ed., Banks and Banking, was
separated into three sections the first of which, embracing
provisions relating to embezzlement, abstracting, purloining, or
willfully misapplying moneys, funds, or credits, constitutes part
of the basis for this section. Of the other two sections, one
section, 334 of this title, relates only to the issuance and
circulation of Federal Reserve notes and the other, section 1005 of
this title, to false entries or the wrongful issue of bank
obligations.
The original section, containing more than 500 words, was
verbose, diffuse, redundant, and complicated. The enumeration of
banks affected is repeated eight times. The revised section without
changing in any way the meaning or substance of existing law,
clarifies, condenses, and combines related provisions largely
rewritten in matters of style.
The words "national bank" were substituted for "national banking
association," the terms being synonymous by definition of section
221 of title 12, U.S.C., 1940 ed., Banks and Banking, written into
the last paragraph of this section. This change made possible the
use of the term "such bank" in substitution for the words "such
Federal Reserve bank, member bank, or such national banking
association, or insured bank," in each of seven instances.
The special and separate provisions of the original section
relating to embezzlement by national bank receivers or Federal
Reserve agents are readily combined in the revised section by
including these officers in the initial enumeration of persons at
whom the act is directed and by inserting the word "purloins" after
"embezzles, abstracts," and the phrase "or any moneys, funds,
assets, or securities intrusted to the custody or care," following
the words "of such bank".
The last paragraph of the revised section includes the
definitions of sections 221 and 264(c) of title 12, U.S.C., 1940
ed., Banks and Banking, made applicable by express provision of the
original section. These were written in, with only such changes of
phraseology as were necessary, in order to make the revised section
complete and self-contained. For meaning of "bank," as used in bank
robbery statute, see section 2113 of this title.
Section 597 of title 12, U.S.C., 1940 ed., Banks and Banking,
likewise was separated into two parts, one of which was combined
with the embezzlement provisions of said section 592 to form this
section. The other part was combined with the related provisions of
said section 592 to form section 1005 of this title.
It will be noted that section 597 of title 12, U.S.C., 1940 ed.,
Banks and Banking, was limited to "Whoever, being connected in any
capacity with a Federal Reserve bank"; that it enumerated "note,
debenture, bond, or other obligation, or draft, mortgage, judgment,
or decree"; and that it stipulated punishment by fine of not more
than $10,000 or imprisonment of not more than 5 years, or both.
In combining these provisions, the words "or connected in any
capacity" were written into the new section after the words
"employee of," thus making them applicable not only to Federal
Reserve banks but to the other banks as well. The phrase of section
592 of title 12, U.S.C., 1940 ed., Banks and Banking, "or who,
without such authority, issues or puts forth any certificate of
deposit, draws any order or bill of exchange, makes any acceptance,
assigns any note, bond, draft, bill of exchange, mortgage,
judgment, or decree," was modified to include the enumeration of
like obligations in section 597 of title 12, U.S.C., 1940 ed.,
Banks and Banking, and to read as follows: "whoever without such
authority makes, draws, issues, puts forth, or assigns any
certificate of deposit, draft, order, bill of exchange, acceptance,
note, debenture, bond, or other obligation or mortgage, judgment,
or decree". (See section 1005 of this title.)
As thus changed the new section is clear, simple, and
unambiguous. The very slight changes of substance that have been
noted, were unavoidable if the two sections were to be combined.
Without combination any constructive revision of these duplicitous
and redundant provisions was impossible. It is believed that the
revised sections adequately and correctly represent the intent of
Congress as the same can be gathered from the overlapping and
confusing enactments. At any rate, the severest criticism of the
revised sections is that a person connected with a Federal Reserve
bank who violates these sections can at most be punished by a fine
of $5,000 or imprisonment of 5 years, or both, whereas under
section 597 of title 12, U.S.C., 1940 ed., Banks and Banking, he
might have been fined $10,000 or imprisoned 5 years, or both.
Obviously an embezzler will rarely be financially able to pay even
a $5,000 fine even where such fine is imposed. Certainly if it is
an adequate fine for a national bank president it is not too
disproportionate for a person "connected in any capacity with a
Federal Reserve bank".
The smaller punishment for an offense involving $100 or less was
added. (See reviser's notes under sections 641, 645 of this title.)
The words "shall be deemed guilty of a misdemeanor" were omitted
as unnecessary in view of definitive section 1 of this title.
The words "upon conviction thereof" were omitted as unnecessary,
since punishment cannot be imposed without conviction.
Words "In any district court of the United States" were omitted
as unnecessary since section 3231 of this title gives the district
courts jurisdiction of criminal prosecution.
REFERENCES IN TEXT
Section 25 of the Federal Reserve Act, referred to in text, is
classified to subchapter I (Sec. 601 et seq.) of chapter 6 of Title
12, Banks and Banking. Section 25(a) of the Federal Reserve Act,
which is classified to subchapter II (Sec. 611 et seq.) of chapter
6 of Title 12, was renumbered section 25A of that act by Pub. L.
102-242, title I, Sec. 142(e)(2), Dec. 19, 1991, 105 Stat. 2281.
Section 3 of the Federal Deposit Insurance Act, referred to in
text, is classified to section 1813 of Title 12.
AMENDMENTS
1996 - Pub. L. 104-294, in first par., substituted "Federal
Reserve Act," for "Federal Reserve Act,," and "$1,000" for "$100".
1994 - Pub. L. 103-322, in first par., substituted "fined under
this title" for "fined not more than $1,000" after "he shall be".
1990 - Pub. L. 101-647, Sec. 2597(f)(1), in first par., directed
substitution of "national bank, insured bank, branch or agency of a
foreign bank, or organization operating under section 25 or section
25(a) of the Federal Reserve Act," for "national bank, or insured
bank" which was executed by making the substitution for "national
bank or insured bank" to reflect the probable intent of Congress,
and inserted "insured bank, branch, agency, or organization" after
"receiver of a national bank,", ", branch, agency, or organization"
after "misapplies any of the moneys, funds or credits of such
bank", and "branch, agency, or organization" after "custody or care
of such bank,".
Pub. L. 101-647, Sec. 2595(a)(1)(A), (B), in first par., inserted
"depository institution holding company," after "Federal Reserve
Bank, member bank," and "or holding company" after "such bank" in
two places.
Pub. L. 101-647, Sec. 2504(b), in first par., substituted "30
years" for "20 years".
Pub. L. 101-647, Sec. 2597(f)(2), in second par., struck out
"and" after "one of the Federal Reserve Banks;" and directed
insertion of "; and the term 'branch or agency of a foreign bank'
means a branch or agency described in section 20(9) of this title"
before the period which was executed by making the insertion before
the period at end of first sentence to reflect the probable intent
of Congress.
Pub. L. 101-647, Sec. 2595(a)(1)(C), in second par., inserted at
end "For purposes of this section, the term 'depository institution
holding company' has the meaning given such term in section 3 of
the Federal Deposit Insurance Act."
1989 - Pub. L. 101-73, in first par., substituted "$1,000,000"
for "$5,000" and "20 years" for "five years".
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 225, 657, 981, 982, 1006,
1510, 1956, 3293, 3322 of this title; title 12 sections 324, 1785,
1786, 1821, 1828, 1829, 1831k, 1833a.
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