12 U.S.C. § 334 — Reports from affiliates; penalty for failure to furnish

submitted 113 years ago by ch. 6 to r/title-12-BANKS-AND-BANKING · 431 words · no verdicts yet

in plain englishAI-generated · not legal advice

Every member bank must get at least three reports a year from each of its non-member-bank affiliates and send them to its Federal Reserve Bank and the Federal Reserve Board. The reports must follow the Board's format, be sworn to by an officer, and be published the same way the bank publishes its own condition reports. A bank that fails to obtain and file these reports owes a $100 penalty for each day the failure continues.

Each bank that belongs to the Federal Reserve System (under this subchapter) must get reports from every affiliate it has that isn't itself a member bank, and send those reports to its district Federal Reserve Bank and to the Federal Reserve Board of Governors — at least three times a year. These reports must use the format the Board requires, be verified under oath by the affiliate's president or another officer the affiliate's board picks for that job, and cover the same reporting dates the Board sets for the member bank's own condition reports. Each affiliate's report must be sent in at the same time as the matching report from the member bank itself — though the Board can extend that deadline for good cause. The report must contain whatever information the Board decides is needed to fully show the relationship between the affiliate and the bank, so the Board can judge how that relationship affects the bank's affairs. The bank must publish its affiliates' reports under the same rules that govern publishing its own condition reports. The Board or the bank's Federal Reserve Bank can also require the member bank to get extra reports from an affiliate, if needed to fully understand the member bank's condition; these extra reports go to the Federal Reserve Bank and the Board, in whatever form the Board requires. If a member bank fails to get a required report from an affiliate and file it as described above, the bank owes a penalty of $100 for every day the failure continues. The Board can direct the bank's district Federal Reserve Bank to collect that penalty, by lawsuit or otherwise.

the actual law source: uscode.house.gov ↗public domain

Each bank admitted to membership under this subchapter shall obtain from each of its affiliates other than member banks and furnish to the Federal reserve bank of its district and to the Board of Governors of the Federal Reserve System not less than three reports during each year. Such reports shall be in such form as the Board of Governors of the Federal Reserve System may prescribe, shall be verified by the oath or affirmation of the president or such other officer as may be designated by the board of directors of such affiliate to verify such reports, and shall disclose the information hereinafter provided for as of dates identical with those fixed by the Board of Governors of the Federal Reserve System for reports of the condition of the affiliated member bank. Each such report of an affiliate shall be transmitted as herein provided at the same time as the corresponding report of the affiliated member bank, except that the Board of Governors of the Federal Reserve System may, in its discretion, extend such time for good cause shown. Each such report shall contain such information as in the judgment of the Board of Governors of the Federal Reserve System shall be necessary to disclose fully the relations between such affiliate and such bank and to enable the board to inform itself as to the effect of such relations upon the affairs of such bank. The reports of such affiliates shall be published by the bank under the same conditions as govern its own condition reports.

Any such affiliated member bank may be required to obtain from any such affiliate such additional reports as in the opinion of its Federal reserve bank or the Board of Governors of the Federal Reserve System may be necessary in order to obtain a full and complete knowledge of the condition of the affiliated member bank. Such additional reports shall be transmitted to the Federal reserve bank and the Board of Governors of the Federal Reserve System and shall be in such form as the Board of Governors of the Federal Reserve System may prescribe.

Any such affiliated member bank which fails to obtain from any of its affiliates and furnish any report provided for by the two preceding paragraphs of this section shall be subject to a penalty of $100 for each day during which such failure continues, which, by direction of the Board of Governors of the Federal Reserve System, may be collected, by suit or otherwise, by the Federal reserve bank of the district in which such member bank is located.

Source credit: (Dec. 23, 1913, ch. 6, § 9 (pars.), as added June 16, 1933, ch. 89, § 5(c), 48 Stat. 165; amended Aug. 23, 1935, ch. 614, title II, § 203(a), 49 Stat. 704; Pub. L. 89–485, § 13(f), July 1, 1966, 80 Stat. 243.)

history & why it existsrecord from the source credit

1913Enacted · Act of Dec. 23, 1913, ch. 6 · 48 Stat. 165
1935Amended · Act of Aug. 23, 1935, ch. 614 · 49 Stat. 704
1966Amended · Pub. L. 89-485 · 80 Stat. 243

A history note hasn’t been published yet. The record shows enactment by ch. 6 on 1913-12-23.

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