§324 Laws Applicable on Becoming Members

Summary

Banks that join under this law must follow the reserve and capital rules in this chapter. They must also follow the national-bank rules that bar lending on or buying their own stock and that deal with withdrawal or reduction of capital stock. They must follow sections 56 and 60(b) about dividend payments. Whenever those rules mention the Comptroller of the Currency, read that as the Board of Governors of the Federal Reserve System. These banks, and their officers and employees, are also covered by the penalties in 18 U.S.C. sections 334, 656, and 1005. Each member bank must send reports of condition and dividend payments to its Federal Reserve bank. The Board of Governors sets the report form and the information required and fixes the dates; there must be at least three reports each year. If a bank with reasonable procedures makes an inadvertent error or is only minimally late, the penalty may be up to $2,000 per day and the bank must prove the mistake was accidental. For other failures or false reports the penalty may be up to $20,000 per day. If a bank knowingly or with reckless disregard files false information, the Board may fine up to $1,000,000 or 1% of the bank’s total assets (whichever is less) per day. Penalties are assessed under section 1818 and a bank can request an agency hearing within 20 days after a notice of assessment.