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Title 12, Banks and BankingRelease 119-110

§633 Potential Liability on Foreign Accounts

Title 12 › CHAPTER 6 — FOREIGN BANKING › SUBCHAPTER II — ORGANIZATION OF CORPORATIONS TO DO FOREIGN BANKING › § 633

Last updated Sep 22, 2026|Official source

Summary

A member bank does not have to repay a deposit made at one of its foreign branches if that branch cannot pay because of war, rebellion, civil unrest, or because a foreign government or a government agency (whether officially or in practice) stops payment. The bank must only repay in those cases if it clearly agreed in writing to do so. The Board and the Comptroller of the Currency can make joint rules they think are needed to carry out these terms.

Full Legal Text

Title 12, §633

Banks and Banking, Source: USLM XML via OLRC

(a)Exceptions from repayment requirement
A member bank shall not be required to repay any deposit made at a foreign branch of the bank if the branch cannot repay the deposit due to—
(1)an act of war, insurrection, or civil strife; or
(2)an action by a foreign government or instrumentality (whether de jure or de facto) in the country in which the branch is located;
unless the member bank has expressly agreed in writing to repay the deposit under those circumstances.
(b)Regulations
The Board and the Comptroller of the Currency may jointly prescribe such regulations as they deem necessary to implement this section.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Codification Section was enacted as section 25C of the Federal Reserve Act, and not as part of section 25A of that Act which comprises this subchapter.

Statutory Notes and Related Subsidiaries

Existing Claims Not Affected Pub. L. 103–325, title III, § 326(c), Sept. 23, 1994, 108 Stat. 2229, provided that: “section 25C of the Federal Reserve Act [this section] (as added by subsection (a)) shall not be applied retroactively and shall not be construed to affect or apply to any claim or cause of action addressed by that section arising from events or circumstances that occurred before the date of enactment of this Act [Sept. 23, 1994].”

Reference

Citations & Metadata

Citation

12 U.S.C. § 633

Title 12, Banks and Banking

Last Updated

Sep 22, 2026

Release point: 119-110