§324 Laws applicable on becoming members

Summary

Banks that join under this law must follow the same reserve and capital rules as other banks. They must also follow rules that stop banks from lending on or buying their own stock, rules about withdrawing or hurting capital stock, and the rules in sections 56 and 60(b) about paying dividends. Any place those rules name the Comptroller of the Currency should be read as naming the Board of Governors of the Federal Reserve System. Officers, agents, and employees of those banks are also subject to the penalties in 18 U.S.C. sections 334, 656, and 1005. These banks must file reports about their condition and dividend payments to the Federal Reserve Bank they join. The Board of Governors sets the form and content of those reports and the dates. At least three reports must be filed each year when the Federal Reserve Bank calls for them. If a bank makes an honest mistake and a required report is late or wrong because of that mistake, the bank can be fined up to $2,000 per day until the error is fixed. The bank must prove the mistake was accidental. If the late or false report is not covered by that accidental-error rule, the fine can be up to $20,000 per day. If the bank knowingly or recklessly files false or misleading reports, the Board can fine up to $1,000,000 or 1 percent of the bank’s total assets per day, whichever is less. The Board collects these fines under the procedures in subparagraphs (E), (F), (G), and (I) of section 1818(i)(2), and section 1818(h) applies to any related proceedings. A bank can ask for an agency hearing within 20 days after a fine is noticed.