§336 — Title 12 Banks and Banking | U.S. Code

Summary

Starting August 23, 1935, a State member bank’s stock certificate must not say it represents stock in any other company, except for another member bank or a company that on June 16, 1934, held that bank’s premises. Also, you cannot make the ownership, sale, or transfer of a State member bank’s stock certificate depend on owning stock of another company, with the same two exceptions. The rule does not stop another company from requiring someone to own the bank’s stock certificate in order to buy that other company’s stock.

Title 12, §336

Banks and Banking — Source: USLM XML via OLRC

After August 23, 1935, no certificate evidencing the stock of any State member bank shall bear any statement purporting to represent the stock of any other corporation, except a member bank or a corporation engaged on June 16, 1934, in holding the bank premises of such member bank, nor shall the ownership, sale, or transfer of any certificate representing the stock of any State member bank be conditioned in any manner whatsoever upon the ownership, sale, or transfer of a certificate representing the stock of any other corporation, except a member bank or a corporation engaged on June 16, 1934 in holding the bank premises of such member bank: Provided, That this subchapter shall not operate to prevent the ownership, sale, or transfer of stock of any other corporation being conditioned upon the ownership, sale, or transfer of a certificate representing stock of a State member bank.

Notes & Related Subsidiaries

Editorial Notes

References in Text

This subchapter, referred to in text, was in the original “this section”, meaning section 9 of act Dec. 23, 1913, which is classified generally to this subchapter (§ 321 et seq.). Codification Section is comprised of the twenty-first par. of section 9 of act Dec. 23, 1913, as amended. The twenty-first par. constituted the nineteenth par. of section 9 in 1933 (48 Stat. 165), became the twentieth par. in 1935 (49 Stat. 704), and became the twenty-first par. in 1950 (64 Stat. 458). For further details, see Codification notes set out under section 321 and 329a of this title.

Amendments

1935—Act Aug. 23, 1935, among other changes, inserted proviso.

§336 Certificates of stock; representation of stock of other corporations