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

Summary

National banking associations must not use United States notes or national-bank notes as security or collateral for any loan. They also must not agree to keep those notes out of use, or accept custody of them or a promise to hold them as security or payment for a loan. A bank that breaks this rule will be guilty of a misdemeanor and can be fined up to $1,000 plus an extra amount equal to one-third of the loaned money. Any officer who makes such a loan must pay an extra amount equal to one-quarter of the loan. Any fines or penalties go to the person who brings the lawsuit.

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.

Editorial Notes

Codification R.S. § 5207 derived from act Feb. 19, 1869, ch. 32, 15 Stat. 270.

§582 Receipt of United States or Bank Notes as Collateral

Summary

Title 12, §582

Notes & Related Subsidiaries

Editorial Notes

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