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

Summary

Directors and officers who knowingly break, or let the bank’s agents, officers, or directors break, certain banking laws or board rules (sections 375, 375a, 375b, 376; and sections 217, 218, 219, 220, 655, 1005, 1014, 1906, 1909 of title 18) must pay personally for any damages the bank, its shareholders, or other people suffer because of the violation.

Title 12, §503

Banks and Banking — Source: USLM XML via OLRC

If the directors or officers of any member bank shall knowingly violate or permit any of the agents, officers, or directors of any member bank to violate any of the provisions of section 375, 375a, 375b, and 376 of this title or regulations of the board made under authority thereof, or any of the provisions of section 217, 218, 219, 220,11 See References in Text note below. 655, 1005, 1014, 1906, or 1909 of title 18, every director and officer participating in or assenting to such violation shall be held liable in his personal and individual capacity for all damages which the member bank, its shareholders, or any other persons shall have sustained in consequence of such violation.

Notes & Related Subsidiaries

Editorial Notes

References in Text

section 217, 218, 219, and 220 of title 18, referred to in text, were renumbered section 212, 213, 214, and 215 of title 18, respectively, by Pub. L. 87–849, § 1(d), Oct. 23, 1962, 76 Stat. 1125. section 212 and 213 of title 18, as redesignated, were subsequently repealed by Pub. L. 108–198, § 2(a), Dec. 19, 2003, 117 Stat. 2899. Codification In text, “section 375, 375a, 375b, and 376 of this title” was in the original “this section”, meaning section 22 of act Dec. 23, 1913, which was also classified to sections 593 to 599 of this title. Such sections were repealed by act

June 25, 1948, ch. 645, § 21, 62 Stat. 862, eff. Sept. 1, 1948, and the provisions thereof were reenacted as section 217, 218, 219, 220, 655, 1005, 1014, 1906, and 1909 of Title 18, Crimes and Criminal Procedure. Reference to such repealed sections was omitted from the text in view of act Sept. 3, 1954, which amended the text by incorporating therein the reference to the sections of Title 18. The text of section 375 of this title was struck out by Pub. L. 111–203, title VI, § 615(b),

July 21, 2010, 124 Stat. 1615.

Amendments

1954—Act Sept. 3, 1954, inserted “or any of the provisions of section 217, 218, 219, 220, 655, 1005, 1014, 1906, or 1909 of title 18,”.

§503 Liability of Directors and Officers of Member Banks