Title 12 — Banks and BankingRelease 119-73
§582 Receipt of United States or bank notes as collateral
Title 12 › Chapter CHAPTER 5— - CRIMES AND OFFENSES › Subchapter SUBCHAPTER I— - IN GENERAL › § 582
Summary
National banks must not accept United States notes or national‑bank notes as collateral for any loan, or agree to withhold or hold custody of those notes. A bank that violates this commits a misdemeanor and can be fined up to $1,000 plus one‑third of the loan; officers who made the loan must pay one‑quarter of the loan. Penalties go to the person who sues.
Full Legal Text
Title 12, §582
Banks and Banking — Source: USLM XML via OLRC
No national banking association shall hereafter offer or receive United States notes or national-bank notes as security or as collateral security for any loan of money, or for a consideration agree to withhold the same from use, or offer or receive the custody or promise of custody of such notes as security, or as collateral security, or consideration for any loan of money. Any association offending against the provisions of this section shall be deemed guilty of a misdemeanor and shall be fined not more than $1,000 and a further sum equal to one-third of the money so loaned. The officer or officers of any association who shall make any such loan shall be liable for a further sum equal to one-quarter of the money loaned; and any fine or penalty incurred by a violation of this section shall be recoverable for the benefit of the party bringing such suit.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Codification R.S. § 5207 derived from act Feb. 19, 1869, ch. 32, 15 Stat. 270.
Reference
Citations & Metadata
Citation
12 U.S.C. § 582
Title 12 — Banks and Banking
Last Updated
Apr 6, 2026
Release point: 119-73