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Title 12, Banks and BankingRelease 119-102

§582 Receipt of United States or Bank Notes as Collateral

Title 12 › CHAPTER 5 — CRIMES AND OFFENSES › SUBCHAPTER I — IN GENERAL › § 582

Last updated Aug 21, 2026|Official source

Summary

National banks must not accept United States notes or national-bank notes as security, collateral, or custody for any loan, and they must not agree to hold or withhold those notes in return for a loan. If a bank breaks this rule, it commits a misdemeanor and can be fined up to $1,000 plus an extra amount equal to one-third of the loan. Bank officers who made the loan must pay an additional amount equal to one-quarter of the loan. Any fine or penalty can be collected for the person who brings the lawsuit.

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

Aug 21, 2026

Release point: 119-102