12 U.S.C. § 336 — Certificates of stock; representation of stock of other corporations

submitted 113 years ago by ch. 6 to r/title-12-BANKS-AND-BANKING · 150 words · no verdicts yet

in plain englishAI-generated · not legal advice

After August 23, 1935, a State member bank's stock certificate can't also represent stock in another company. The only exceptions are another member bank or a company that held that bank's premises back in 1934. Buying or selling that other company's stock also can't be tied to buying or selling the bank's stock.

Starting August 23, 1935, no stock certificate for a State member bank (a bank that's a state-chartered member of the Federal Reserve System) may say it also represents stock in some other corporation. There are two exceptions: another member bank, or a corporation that, as of June 16, 1934, held that member bank's own bank building (its "premises"). Likewise, the sale or transfer of a State member bank's stock certificate can't be made conditional on the sale or transfer of stock in another corporation — again, except for a member bank or a June 16, 1934 premises-holding corporation. However, this rule doesn't work the other way around: it doesn't stop someone from making the sale or transfer of stock in some other corporation conditional on also buying or transferring stock in a State member bank.

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

After August 23, 1935, no certificate evidencing the stock of any State member bank shall bear any statement purporting to represent the stock of any other corporation, except a member bank or a corporation engaged on June 16, 1934, in holding the bank premises of such member bank, nor shall the ownership, sale, or transfer of any certificate representing the stock of any State member bank be conditioned in any manner whatsoever upon the ownership, sale, or transfer of a certificate representing the stock of any other corporation, except a member bank or a corporation engaged on June 16, 1934 in holding the bank premises of such member bank: Provided, That this subchapter shall not operate to prevent the ownership, sale, or transfer of stock of any other corporation being conditioned upon the ownership, sale, or transfer of a certificate representing stock of a State member bank.

Source credit: (Dec. 23, 1913, ch. 6, § 9 (par.), as added June 16, 1933, ch. 89, § 5(c), 48 Stat. 165; amended Aug. 23, 1935, ch. 614, title III, § 310(b), 49 Stat. 710.)

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. 710

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

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