12 U.S.C. § 632 — Jurisdiction of United States courts; disposition by banks of foreign owned property
submitted 113 years ago by ch. 6 to r/title-12-BANKS-AND-BANKING · 1,204 words · no verdicts yet
This section gives federal district courts original or exclusive jurisdiction over specified civil suits involving U.S. corporations, Federal Reserve banks, and insured banks, and permits removal from State court. It sets rules for certain foreign-state property held by those banks and bars pre-judgment attachment or execution against Federal Reserve banks.
Despite any other law, a civil suit at common law or in equity involving a corporation organized under United States law is treated as arising under United States law if it arises from international or foreign banking; banking in a dependency or insular possession of the United States; or other international or foreign financial operations, whether carried out directly or through branches or local institutions in a dependency, insular possession, or foreign country that the corporation operates, owns, or controls. The United States district courts have original jurisdiction over all such suits. A defendant may remove such a suit from a State* court to the proper district court at any time before trial by following the procedure otherwise provided by law for removing cases. Removal may not cause undue delay, and the removed case must keep the same relative place on the United States court’s calendar that it had on the State court’s calendar. Despite any other law, a civil suit at common law or in equity involving a Federal Reserve bank is treated as arising under United States law, and the district courts have original jurisdiction. A Federal Reserve bank that is a defendant may remove the suit before trial from a State court to the proper district court using the otherwise provided removal procedure. Before final judgment, no attachment or execution may be issued against a Federal Reserve bank or its property in any suit, action, or proceeding in a State, county, municipal, or United States court. Whenever (1) a Federal Reserve bank has received property from or for the account of a foreign state recognized by the Government of the United States, or from or for the account of a central bank of that foreign state, and holds the property in the name of the foreign state or central bank; (2) a representative of that foreign state, recognized by the Secretary of State as the state’s accredited representative to the United States Government, has certified to the Secretary of State the name of a person authorized to receive, control, or dispose of the property; and (3) the person’s authority regarding the property has been accepted and recognized by the Secretary of State and certified by the Secretary to the Federal Reserve bank, the bank’s payment, transfer, delivery, or other disposal of the property to that person or on that person’s order is conclusively presumed lawful. It completely discharges and releases the bank from liability for or concerning the property. The same rule applies to an insured bank whenever (1) it has received property from or for the account of a foreign state recognized by the Government of the United States, or from or for the account of a central bank of that foreign state, and holds the property in the name of the foreign state or central bank; (2) the foreign state’s representative, recognized by the Secretary of State as the state’s accredited representative to the United States Government, has certified to the Secretary the name of a person authorized to receive, control, or dispose of the property; and (3) the person’s authority regarding the property has been accepted and recognized by the Secretary and certified by the Secretary to the insured bank. The bank’s payment, transfer, delivery, or other disposal of the property to that person or on that person’s order is then conclusively presumed lawful and completely discharges and releases the bank from liability for or concerning the property. Any suit or other legal proceeding against an insured bank or any of its officers, directors, or employees that arises from receiving, possessing, or disposing of such property is treated as arising under United States law. The district courts have exclusive jurisdiction over it, regardless of the amount involved. The bank, officer, director*, or employee that is a defendant may remove the suit before trial from a State court to the proper district court by following the otherwise provided removal procedure. Nothing in this section repeals or changes any provision of the Gold Reserve Act of 1934, as amended; the Silver Purchase Act of 1934, as amended; or subdivision (b) of section 5 of the Act of October 6, 1917, as amended. The same is true of any action, regulation, rule, order, or proclamation taken, issued, made, or promulgated under any of those statutes. If any of those statutes or instruments requires a license to act concerning property referred to in this section, the proper Government officer or agency must notify the Secretary of State that an appropriate license has been issued or will be issued on application before the Secretary takes action under this section. The Secretary’s action may concern only property included in the notice. Each notice must include the license’s terms and conditions and describe the property covered by it. For this section: (1) “Property” includes gold, silver, currency, credits, deposits, securities, choses in action, any other form of property, the proceeds of property, and any right, title, or interest in property. (2) “Foreign state” includes any foreign government; any department, district, province, county, possession, or other similar governmental organization or subdivision of a foreign government; and any agency or instrumentality of any foreign government or of any such organization or subdivision. (3) “Central bank” includes any foreign bank or banker authorized to perform one or more functions of a central bank. (4) “Person” includes an individual, corporation, partnership, association, or other similar organization. (5) “Insured bank” has the meaning given in section 12B of this Act; this section does not define that term itself.
Notwithstanding any other provision of law, all suits of a civil nature at common law or in equity to which any corporation organized under the laws of the United States shall be a party, arising out of transactions involving international or foreign banking, or banking in a dependency or insular possession of the United States, or out of other international or foreign financial operations, either directly or through the agency, ownership, or control of branches or local institutions in dependencies or insular possessions of the United States or in foreign countries, shall be deemed to arise under the laws of the United States, and the district courts of the United States shall have original jurisdiction of all such suits; and any defendant in any such suit may, at any time before the trial thereof, remove such suits from a State* court into the district court of the United States for the proper district by following the procedure for the removal of causes otherwise provided by law. Such removal shall not cause undue delay in the trial of such case and a case so removed shall have a place on the calendar of the United States court to which it is removed relative to that which it held on the State court from which it was removed.
Notwithstanding any other provision of law, all suits of a civil nature at common law or in equity to which any Federal Reserve bank shall be a party shall be deemed to arise under the laws of the United States, and the district courts of the United States shall have original jurisdiction of all such suits; and any Federal Reserve bank which is a defendant in any such suit may, at any time before the trial thereof, remove such suit from a State court into the district court of the United States for the proper district by following the procedure for the removal of causes otherwise provided by law. No attachment or execution shall be issued against any Federal Reserve bank or its property before final judgment in any suit, action, or proceeding in any State, county, municipal, or United States court.
Whenever (1) any Federal Reserve bank has received any property from or for the account of a foreign state which is recognized by the Government of the United States, or from or for the account of a central bank of any such foreign state, and holds such property in the name of such foreign state or such central bank; (2) a representative of such foreign state who is recognized by the Secretary of State as being the accredited representative of such foreign state to the Government of the United States has certified to the Secretary of State the name of a person as having authority to receive, control, or dispose of such property; and (3) the authority of such person to act with respect to such property is accepted and recognized by the Secretary of State, and so certified by the Secretary of State to the Federal Reserve bank, the payment, transfer, delivery, or other disposal of such property by such Federal Reserve bank to or upon the order of such person shall be conclusively presumed to be lawful and shall constitute a complete discharge and release of any liability of the Federal Reserve bank for or with respect to such property.
Whenever (1) any insured bank has received any property from or for the account of a foreign state which is recognized by the Government of the United States, or from or for the account of a central bank of any such foreign state, and holds such property in the name of such foreign state or such central bank; (2) a representative of such foreign state who is recognized by the Secretary of State as being the accredited representative of such foreign state to the Government of the United States has certified to the Secretary of State the name of a person as having authority to receive, control, or dispose of such property; and (3) the authority of such person to act with respect to such property is accepted and recognized by the Secretary of State, and so certified by the Secretary of State to such insured bank, the payment, transfer, delivery, or other disposal of such property by such bank to or upon the order of such person shall be conclusively presumed to be lawful and shall constitute a complete discharge and release of any liability of such bank for or with respect to such property. Any suit or other legal proceeding against any insured bank or any officer, director*, or employee thereof, arising out of the receipt, possession, or disposition of any such property shall be deemed to arise under the laws of the United States and the district courts of the United States shall have exclusive jurisdiction thereof, regardless of the amount involved; and any such bank or any officer, director, or employee thereof which is a defendant in any such suit may, at any time before trial thereof, remove such suit from a State court into the district court of the United States for the proper district by following the procedure for the removal of causes otherwise provided by law.
Nothing in this section shall be deemed to repeal or to modify in any manner any of the provisions of the Gold Reserve Act of 1934, as amended, the Silver Purchase Act of 1934, as amended, or subdivision (b) of section 5 of the Act of October 6, 1917, as amended, or any actions, regulations, rules, orders, or proclamations taken, promulgated, made, or issued pursuant to any of such statutes. In any case in which a license to act with respect to any property referred to in this section is required under any of said statutes, regulations, rules, orders, or proclamations, notification to the Secretary of State by the proper Government officer or agency of the issuance of an appropriate license or that appropriate licenses will be issued on application shall be a prerequisite to any action by the Secretary of State pursuant to this section, and the action of the Secretary of State shall relate only to such property as is included in such notification. Each such notification shall include the terms and conditions of such license or licenses and a description of the property to which they relate.
For the purposes of this section, (1) the term “property” includes gold, silver, currency, credits, deposits, securities, choses in action, and any other form of property, the proceeds thereof, and any right, title, or interest therein; (2) the term “foreign state” includes any foreign government or any department, district, province, county, possession, or other similar governmental organization or subdivision of a foreign government, and any agency or instrumentality of any such foreign government or of any such organization or subdivision; (3) the term “central bank” includes any foreign bank or banker authorized to perform any one or more of the functions of a central bank; (4) the term “person” includes any individual, or any corporation, partnership, association, or other similar organization; and (5) the term “insured bank” shall have the meaning given to it in section 12B of this Act.
Source credit: (Dec. 23, 1913, ch. 6, § 25B, formerly § 25(b), as added June 16, 1933, ch. 89, § 15, 48 Stat. 184; amended Apr. 7, 1941, ch. 43, § 2, 55 Stat. 131; renumbered § 25B, Pub. L. 102–242, title I, § 142(e)(3), Dec. 19, 1991, 105 Stat. 2281.)
- 1913Enacted · Act of Dec. 23, 1913, ch. 6 · 48 Stat. 184
- 1941Amended · Act of Apr. 7, 1941, ch. 43 · 55 Stat. 131
- 1991Amended · Pub. L. 102-242 · 105 Stat. 2281
A history note hasn’t been published yet. The record shows enactment by ch. 6 on 1913-12-23.
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