12 U.S.C. § 502 — Liability of shareholders of Federal reserve banks on contracts, etc.

submitted 113 years ago by ch. 6 to r/title-12-BANKS-AND-BANKING · 70 words · no verdicts yet

in plain englishAI-generated · not legal advice

This law makes shareholders of a Federal Reserve bank personally responsible for the bank's contracts and debts. Each shareholder's responsibility is limited to the value of the stock they subscribed to.

Every shareholder of a Federal Reserve bank is personally responsible for that bank's contracts, debts, and other obligations. Each shareholder's share of that responsibility is equal and separate — no one shareholder covers for another. The limit on each shareholder's responsibility is the par value of the stock they subscribed to, on top of the amount they subscribed. This applies whether the shareholder has paid for that stock in full, in part, or not at all under this chapter's rules.

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

The shareholders of every Federal reserve bank shall be held individually responsible, equally and ratably, and not one for another, for all contracts, debts, and engagements of such bank to the extent of the amount of their subscriptions to such stock at the par value thereof in addition to the amount subscribed, whether such subscriptions have been paid up in whole or in part under the provisions of this chapter.

Source credit: (Dec. 23, 1913, ch. 6, § 2 (par.), 38 Stat. 252.)

history & why it existsrecord from the source credit

1913Enacted · Act of Dec. 23, 1913, ch. 6 · 38 Stat. 252

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

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