12 U.S.C. § 64a — Individual liability of shareholders; limitation on liability

submitted 93 years ago by ch. 89 to r/title-12-BANKS-AND-BANKING · 238 words · no verdicts yet

in plain englishAI-generated · not legal advice

National bank shareholders no longer face extra personal liability for shares issued after June 16, 1933. That extra liability for all other shares ended on July 1, 1937, as long as the bank gave six months' public notice beforehand — or, if it didn't, the Comptroller published notice for it.

This section winds down a form of shareholder liability that used to exist under sections 63 and 64 of this title. First, it exempts new shares: the extra liability those sections used to impose on national bank shareholders does not apply to shares issued after June 16, 1933. Second, it ends the liability for older shares too: that additional liability stopped on July 1, 1937, for all shares issued by any association still doing banking business on that date — but only if the association gave proper notice. The proviso requires the association, at least six months before July 1, 1937, to publish notice of the coming end of liability in a newspaper in the city, town, or county where it's located (or, if none is published there, in a newspaper of general circulation there). If an association failed to publish that notice, its shareholders' liability could still end later — six months after the association eventually published the notice, following the same rules. For any association that still hadn't published notice by May 18, 1953, the Comptroller of the Currency had to publish the notice on the bank's behalf. In that case, the extra liability ended six months after the Comptroller's publication.

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

The additional liability imposed upon shareholders in national banking associations by the provisions of sections 63 and 64 of this title shall not apply with respect to shares in any such association issued after June 16, 1933. Such additional liability shall cease on July 1, 1937, with respect to all shares issued by any association which shall be transacting the business of banking on July 1, 1937: Provided, That not less than six months prior to such date, such association shall have caused notice of such prospective termination of liability to be published in a newspaper published in the city, town, or county in which such association is located, and if no newspaper is published in such city, town, or county, then in a newspaper of general circulation therein. If the association fail 1 to give such notice as and when above provided, a termination of such additional liability may thereafter be accomplished as of the date six month 2 subsequent to publication, in the manner above provided. In the case of each association which has not caused notice of such prospective termination of liability to be published prior to May 18, 1953, the Comptroller of the Currency shall cause such notice to be published in the manner provided in this section, and on the date six months subsequent to such publication by the Comptroller of the Currency such additional liability shall cease.

Source credit: (June 16, 1933, ch. 89, § 22, 48 Stat. 189; Aug. 23, 1935, ch. 614, title III, § 304, 49 Stat. 708; May 18, 1953, ch. 59, § 2, 67 Stat. 27.)

history & why it existsrecord from the source credit

1933Enacted · Act of June 16, 1933, ch. 89 · 48 Stat. 189
1935Amended · Act of Aug. 23, 1935, ch. 614 · 49 Stat. 708
1953Amended · Act of May 18, 1953, ch. 59 · 67 Stat. 27

A history note hasn’t been published yet. The record shows enactment by ch. 89 on 1933-06-16.

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