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Code · U.S. Code · Title 12 - BANKS AND BANKING · CHAPTER 3— FEDERAL RESERVE SYSTEM · SUBCHAPTER X— POWERS AND DUTIES OF MEMBER BANKS · § 378

§ 378. Dealers in securities engaging in banking business; individuals or associations engaging in banking business; examinations and reports; penalties

715 words·~3 min read·/usc/title-12/section-378

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)After the expiration of one year after June 16, 1933, it shall be unlawful—
(1)For any person, firm, corporation, association, business trust, or other similar organization, engaged in the business of issuing, underwriting, selling, or distributing, at wholesale or retail, or through syndicate participation, stocks, bonds, debentures, notes, or other securities, to engage at the same time to any extent whatever in the business of receiving deposits subject to check or to repayment upon presentation of a passbook, certificate of deposit, or other evidence of debt, or upon request of the depositor: Provided, That the provisions of this paragraph shall not prohibit national banks or State banks or trust companies (whether or not members of the Federal Reserve System) or other financial institutions or private bankers from dealing in, underwriting, purchasing, and selling investment securities, or issuing securities, to the extent permitted to national banking associations by the provisions of section 24 of this title: Provided further, That nothing in this paragraph shall be construed as affecting in any way such right as any bank, banking association, savings bank, trust company, or other banking institution, may otherwise possess to sell, without recourse or agreement to repurchase, obligations evidencing loans on real estate; or
(2)For any person, firm, corporation, association, business trust, or other similar organization to engage, to any extent whatever with others than his or its officers, agents or employees, in the business of receiving deposits subject to check or to repayment upon presentation of a pass book, certificate of deposit, or other evidence of debt, or upon request of the depositor, unless such person, firm, corporation, association, business trust, or other similar organization
(A)shall be incorporated under, and authorized to engage in such business by, the laws of the United States or of any State, Territory, or District, and subjected, by the laws of the United States, or of the State, Territory, or District wherein located, to examination and regulation, or
(B)shall be permitted by the United States, any State, territory, or district to engage in such business and shall be subjected by the laws of the United States, or such State, territory, or district to examination and regulations or,
(C)shall submit to periodic examination by the banking authority of the State, Territory, or District where such business is carried on and shall make and publish periodic reports of its condition, exhibiting in detail its resources and liabilities, such examination and reports to be made and published at the same times and in the same manner and under the same conditions as required by the law of such State, Territory, or District in the case of incorporated banking institutions engaged in such business in the same locality.
(b)Whoever shall willfully violate any of the provisions of this section shall upon conviction be fined not more than $5,000 or imprisoned not more than five years, or both, and any officer, director, employee, or agent of any person, firm, corporation, association, business trust, or other similar organization who knowingly participates in any such violation shall be punished by a like fine or imprisonment or both.
(June 16, 1933, ch. 89, § 21, 48 Stat. 189; Aug. 23, 1935, ch. 614, title III, § 303, 49 Stat. 707; Pub. L. 86–230, § 23, Sept. 8, 1959, 73 Stat. 466; Pub. L. 90–448, title VIII, § 804(d), Aug. 1, 1968, 82 Stat. 543; Pub. L. 95–369, § 12, Sept. 17, 1978, 92 Stat. 624.)
Connections78 cite this · traces to 2
Cited by 78 sections · top 60
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14 references not yet in our index
  • June 16, 1933, ch. 89, § 21
  • 48 Stat. 189
  • Aug. 23, 1935, ch. 614
  • 49 Stat. 707
  • Pub. L. 86–230, § 23
  • 73 Stat. 466
  • Pub. L. 90–448, title VIII, § 804(d)
  • 82 Stat. 543
  • Pub. L. 95–369, § 12
  • 92 Stat. 624
  • Pub. L. 95–369
  • Pub. L. 90–448
  • Pub. L. 86–230
  • section 808 of Pub. L. 90–448
Citation graph
cites case law
§ 378
Dealers in securities engaging in banking business; individuals or associations engaging in banking business; examinations and reports; penalties
Fed. Reg.×50
Bills×23
Stat.×3
C.F.R.×1
Stat. Comp.×1
ActJune 16, 1933, ch. 89, § 21
Stat.48 Stat. 189
ActAug. 23, 1935, ch. 614
Stat.49 Stat. 707
Pub. L.Pub. L. 86–230, § 23
Cites 16 · showing 7Cited by 78 across 5 sources
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