COMMISSION ON THE BANKRUPTCY LAWS

OF THE UNITED STATES

Pub. L. 91-354, July 24, 1970, 84 Stat. 468, as amended by Pub. L. 92-251, Mar. 17, 1972, 86 Stat. 63, provided: "SEC. 1. [Establishment; Purpose; Report; Termination]

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"(c) The Commission shall submit a comprehensive report of its activities, including its recommendations, to the President, the Chief Judge of the United States, and the Congress prior to June 30, 1973. Upon the filing of such report, the Commission shall cease to exist.

"SEC. 6. [Authorization of Appropriations] There are authorized to be appropriated out of the Salaries and Expenses Fund created pursuant to section 40c (4) of the Bankruptcy Act (11 U.S.C. 68c (4)) to the Commission such sums, but not more than $826,000, as may be necessary to carry out the provisions of this joint resolution."

(g) Corporations organized for the purpose of becoming sureties on bonds or authorized by law to do so may be accepted as sole sureties upon the bonds of receivers, and trustees whenever the courts are satisfied that the rights of all parties in interest will be thereby amply protected.

(h) Bonds of receivers, trustees, and designated depositories shall be filed of record in the office of the clerk of the court and may be proceeded upon in the name of the United States for the use of any person injured by a breach of their conditions or Page 181

may be enforced as provided in subdivision (n) of this section.

(k) If any receiver, or trustee shall fail to give bond as herein provided and within the time limited, he shall be deemed to have declined his appointment and such failure shall create a vacancy in his office.

(1) Repealed. Pub. L. 92-310, title II, § 222(a) (5), June 6, 1972, 86 Stat. 206.

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(As amended June 6, 1972, Pub. L. 92-310, title II, § 222 (a), 86 Stat. 205.)

AMENDMENTS

1972-Subsec. (a). Pub. L. 92-310, § 222(a) (1), repealed subsec. (a) which required referees to enter into bonds not exceeding $5,000.

Subsec. (g). Pub. L. 92-310, § 222 (a) (2), eliminated bonds of referees.

Subsec. (h). Pub. L. 92-310, § 222(a) (3), eliminated bonds of referees.

Subsec. (k). Pub. L. 92-310, § 222 (a) (4), eliminated reference to referee.

Subsec. (1). Pub. L. 92-310, § 222(a) (5), repealed subsec. (1) which related to the period during which proceedings could be brought upon referees' bonds.

LIMITATIONS ON PROCEEDINGS UPON REFEREES' BONDS PROCURED BEFORE JUNE 6, 1972

Section 222(b) of Pub. L. 92-310 provided that: "Notwithstanding the amendment made by subsection (a) (5) of this section [to subsec. (1) of this section] proceedings upon referees' bonds procured before the date of enactment of this act [June 6, 1972] and in effect on such date may be brought at any time during the period ending two years after the alleged breach of the bond, but not thereafter."

Chap.

22. Farm Credit System [New]....

Chapter 1.-THE COMPTROLLER OF THE

CURRENCY

§ 3. Oath of Comptroller.

Sec. 2001

The Comptroller of the Currency shall, within fifteen days from the time of notice of his appointment, take and subscribe the oath of office. (As amended June 6, 1972, Pub. L. 92-310, title II, § 223 (a), 86 Stat. 206.)

AMENDMENTS

1972-Pub. L. 92-310 eliminated provisions which required the Comptroller to give a bond in the sum of $250,000.

§4. Deputy Comptroller.

The Secretary of the Treasury shall appoint no more than four Deputy Comptrollers of the Currency, one of whom shall be designated First Deputy Comptroller of the Currency, and shall fix their salaries. Each Deputy Comptroller shall take the oath of office and shall perform such duties as the Comptroller shall direct. During a vacancy in the office or during the absence or disability of the Comptroller, each Deputy Comptroller shall possess the power and perform the duties attached by law to the office of the Comptroller under such order of succession following the First Deputy Comptroller as the Comptroller shall direct. (As amended June 6, 1972, Pub. L. 92-310, title II, § 223(b), 86 Stat. 206.) AMENDMENTS

1972-Pub. L. 92-310 eliminated provisions which required each Deputy Comptroller to give a bond in the sum of $100,000.

Chapter 2.-NATIONAL BANKS ORGANIZATION AND GENERAL PROVISIONS § 24. Corporate powers of associations.

Upon duly making and filing articles of association and an organization certificate a national banking association shall become, as from the date of the execution of its organization certificate, a body corporate, and as such, and in the name designated in the organization certificate, it shall have power

Seventh. To exercise by its board of directors or duly authorized officers or agents, subject to law, all such incidental powers as shall be necessary to carry on the business of banking; by discounting and negotiating promissory notes, drafts, bills of exchange, and other evidences of debt; by receiving deposits; by buying and selling exchange, coin, and bullion; by loaning money on personal security; and by obtaining, issuing, and circulating notes according to the provisions of this chapter. The business of dealing

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in securities and stock by the association shall be limited to purchasing and selling such securities and stock without recourse, solely upon the order, and for the account of, customers, and in no case for its own account, and the association shall not underwrite any issue of securities or stock: Provided, That the association may purchase for its own account investment securities under such limitations and restrictions as the Comptroller of the Currency may by regulation prescribe. In no event shall the total amount of the investment securities of any one obligor or maker, held by the association for its own account, exceed at any time 10 per centum of its capital stock actually paid in and unimpaired and 10 per centum of its unimpaired surplus fund, except that this limitation shall not require any association to dispose of any securities lawfully held by it on August 23, 1935. As used in this section the term "investment securities" shall mean marketable obligations, evidencing indebtedness of any person, copartnership, association, or corporation in the form of bonds, notes and/or debentures commonly known as investment securities under such further definition of the term "investment securities" as may by regulation be prescribed by the Comptroller of the Currency. Except as hereinafter provided or otherwise permitted by law, nothing herein contained shall authorize the purchase by the association for its own account of any shares of stock of any corporation. The limitations and restrictions herein contained as to dealing in, underwriting and purchasing for its own account, investment securities shall not apply to obligations of the United States, or general obligations of any State or of any political subdivision thereof, or obligations of the Washington Metropolitan Area Transit Authority which are guaranteed by the Secretary of Transportation under section 9 of the National Capital Transportation Act of 1969, or obligations issued under authority of the Federal Farm Loan Act, as amended, or issued by the thirteen banks for cooperatives or any of them or the Federal Home Loan Banks, or obligations which are insured by the Secretary of Housing and Urban Development under title XI of the National Housing Act or obligations which are insured by the Secretary of Housing and Urban Development (hereinafter in this sentence referred to as the "Secretary") pursuant to section 1713 of this title, if the debentures to be issued in payment of such insured obligations are guaranteed as to principal and interest by the United States, or obligations, participations, or other instruments of or issued by the Federal National Mortgage Association or the Government National Mortgage Association or obligations of the Environmental Financing Authority, or obligations or other instruments or securities of the Student Loan Marketing Association, or such obligations of any local public agency (as defined in

section 1460 (h) of Title 42) as are secured by an agreement between the local public agency and the Secretary in which the local public agency agrees to borrow from said Secretary, and said Secretary agrees to lend to said local public agency, monies in an aggregate amount which (together with any other monies irrevocably committed to the payment of interest on such obligations) will suffice to pay, when due, the interest on and all installments (including the final installment) of the principal of such obligations, which monies under the terms of said agreement are required to be used for such payments, or such obligations of a public housing agency (as defined in the United States Housing Act of 1937, as amended) as are secured either (1) by an agreement between the public housing agency and the Secretary in which the public housing agency agrees to borrow from the Secretary, and the Secretary agrees to lend to the public housing agency, prior to the maturity of such obligations (which obligations shall have a maturity of not more than eighteen months), monies in an amount which (together with any other monies irrevocably committed to the payment of interest on such obligations) will suffice to pay the principal of such obligations with interest to maturity thereon, which monies under the terms of said agreement are required to be used for the purpose of paying the principal of and the interest on such obligations at their maturity, or (2) by a pledge of annual contributions under an annual contributions contract between such public housing agency and the Secretary if such contract shall contain the covenant by the Secretary which is authorized by section 1421a(b) of Title 42, and if the maximum sum and the maximum period specified in such contract pursuant to section 1421a(b) of Title 42 shall not be less than the annual amount and the period for payment which are requisite to provide for the payment when due of all installments of principal and interest on such obligations: Provided, That in carrying on the business commonly known as the safe-deposit business the association shall not invest in the capital stock of a corporation organized under the law of any State to conduct a safe-deposit business in an amount in excess of 15 per centum of the capital stock of the association actually paid in and unimpaired and 15 per centum of its unimpaired surplus. The limitations and restrictions herein contained as to dealing in and underwriting investment securities shall not apply to obligations issued by the International Bank for Reconstruction and Development, the InterAmerican Development Bank or the Asian Development Bank, or obligations issued by any State or political subdivision or any agency of a State or political subdivision for housing, university, or dormitory purposes, which are at the time eligible for purchases by a national bank for its own account, nor to bonds, notes and other obligations issued by the Tennessee Valley Authority or by the United States Postal Service: Provided, That no association shall hold obligations issued by any of said organizations as a result of underwriting, dealing, or purchasing for its own account (and for this purpose obligations as to which it is under commitment shall

be deemed to be held by it) in a total amount exceeding at any one time 10 per centum of its capital stock actually paid in and unimpaired and 10 per centum of its unimpaired surplus fund. Notwithstanding any other provision in this paragraph, the association may purchase for its own account shares of stock issued by a corporation authorized to be created pursuant to sections 3931 to 3940 of Title 42, and may make investments in a partnership, or joint venture formed pursuant to section 3937(a) or 3937 (c) of Title 42.

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(As amended June 23, 1972, Pub. L. 92-318, title I, § 133 (c) (1), 86 Stat. 269; Dec. 9, 1969, Pub. L. 91-143, § 12(b), as added July 13, 1972, Pub. L. 92-349, title I, § 101, 86 Stat. 466; Oct. 18, 1972, Pub. L. 92-500, § 12(n), 86 Stat. 902.)

REFERENCES IN TEXT

Section 9 of the National Capital Transportation Act of 1969, referred to in par. 7, is set out as a note under section 1-1441 of D.C. Code.

AMENDMENTS

1972-Par. (7). Pub. L. 92-500 inserted "or obligations of the Environmental Financing Authority" following "Government National Mortgage Association".

Pub. L. 92-349 inserted provisions that the limitations and restrictions contained in this section as to dealing in and underwriting investment securities shall not apply to obligations of the Washington Metropolitan Area Transit Authority which are guaranteed by the Secretary of Transportation under section 9 of the National Capital Transportation Act of 1969.

Pub. L. 92-318 included obligations or other instruments or securities of the Student Loan Marketing Association.

§ 25a. Participation by national banks in lotteries and related activities.

STATUTES AT LARGE

R.S. § 5136A, as added Pub. L. 90-203, § 1(a), Dec. 15, 1957, 81 Stat. 608, cited to the credit, should be RS. § 5136A, as added Pub. L. 90–203, § 1(a), Dec. 15, 1967, 81 Stat. 608.

REGULATION OF THE BANKING BUSINESS; POWERS AND DUTIES OF NATIONAL BANKS

§ 84. Limit of liability of any person to bank.

The total obligations to any national banking association of any person, copartnership, association, or corporation shall at no time exceed 10 per centum of the amount of the capital stock of such association actually paid in and unimpaired and 10 per centum of its unimpaired surplus fund. The term "obligations" shall mean the direct liability of the maker or acceptor of paper discounted with or sold to such association and the liability of the indorser, drawer, or guarantor who obtains a loan from or discounts paper with or sells paper under his guaranty to such association and shall include in the case of obligations of a copartnership or association the obligations of the several members thereof and shall include in the case of obligations of a corporation all obligations of all subsidiaries thereof in which such corporation owns or controls a majority interest. Such limitation of 10 per centum shall be subject to the following exceptions: