# 12 U.S.C. § 601: Authorization; conditions and regulations > Federal · Statutes · In force URL: https://www.frixlaw.com/law-library/statutes/usc_t12_s601 ## Section - **Citation:** 12 U.S.C. § 601 - **Heading:** Authorization; conditions and regulations - **Jurisdiction:** Federal - **Kind:** Statutes - **Status:** In force - **Text as of:** July 23, 2026 - **Source:** Publisher's official text - **Location:** Title 12—BANKS AND BANKING > CHAPTER 6—FOREIGN BANKING > SUBCHAPTER I—ESTABLISHMENT BY NATIONAL BANKS OF FOREIGN BRANCHES AND INVESTMENTS IN BANKS DOING FOREIGN BUSINESS ## Text Any national banking association possessing a capital and surplus of $1,000,000 or more may file application with the Board of Governors of the Federal Reserve System for permission to exercise, upon such conditions and under such regulations as may be prescribed by the said board, the following powers: First. To establish branches in foreign countries or dependencies or insular possessions of the United States for the furtherance of the foreign commerce of the United States, and to act if required to do so as fiscal agents of the United States. Second. To invest an amount not exceeding in the aggregate 10 per centum of its paid-in capital stock and surplus in the stock of one or more banks or corporations chartered or incorporated under the laws of the United States or of any State thereof, and principally engaged in international or foreign banking, or banking in a dependency or insular possession of the United States either directly or through the agency, ownership, or control of local institutions in foreign countries, or in such dependencies or insular possessions. Third. To acquire and hold, directly or indirectly, stock or other evidences of ownership in one or more banks organized under the law of a foreign country or a dependency or insular possession of the United States and not engaged, directly or indirectly, in any activity in the United States except as, in the judgment of the Board of Governors of the Federal Reserve System, shall be incidental to the international or foreign business of such foreign bank; and, notwithstanding the provisions of section 371c of this title , to make loans or extensions of credit to or for the account of such bank in the manner and within the limits prescribed by the Board by general or specific regulation or ruling. Until January 1, 1921 , any national banking association, without regard to the amount of its capital and surplus, may file application with the Board of Governors of the Federal Reserve System for permission, upon such conditions and under such regulations as may be prescribed by said board, to invest an amount not exceeding in the aggregate 5 per centum of its paid-in capital and surplus in the stock of one or more corporations chartered or incorporated under the laws of the United States or of any State thereof and, regardless of its location, principally engaged in such phases of international or foreign financial operations as may be necessary to facilitate the export of goods, wares, or merchandise from the United States or any of its dependencies or insular possessions to any foreign country: Provided, however , That in no event shall the total investments authorized by this subchapter by any one national bank exceed 10 per centum of its capital and surplus. Such application shall specify the name and capital of the banking association filing it, the powers applied for, and the place or places where the banking or financial operations proposed are to be carried on. The Board of Governors of the Federal Reserve System shall have power to approve or to reject such application in whole or in part if for any reason the granting of such application is deemed inexpedient, and shall also have power from time to time to increase or decrease the number of places where such banking operations may be carried on. ( Dec. 23, 1913, ch. 6, § 25 (pars.), 38 Stat. 273 ; Sept. 7, 1916, ch. 461 , 39 Stat. 755 ; Sept. 17, 1919, ch. 60 , §§ 1, 2, 41 Stat. 285 , 286; Aug. 23, 1935, ch. 614 , title II, § 203(a), 49 Stat. 704 ; Pub. L. 89–485, § 12(b) , July 1, 1966 , 80 Stat. 241 .) ## Nearby sections - [12 U.S.C. § 601 Authorization; conditions and regulations](https://www.frixlaw.com/law-library/statutes/usc_t12_s601.md) - [12 U.S.C. § 602 Reports and examinations](https://www.frixlaw.com/law-library/statutes/usc_t12_s602.md) - [12 U.S.C. § 603 Restrictions imposed by Board of Governors of the Federal Reserve System on banks purchasing stock in corporations doing foreign business](https://www.frixlaw.com/law-library/statutes/usc_t12_s603.md) - [12 U.S.C. § 604 Accounts of foreign branches; profit and loss](https://www.frixlaw.com/law-library/statutes/usc_t12_s604.md) - [12 U.S.C. § 604a Regulations authorizing exercise by foreign branches of usual powers of local banks; restrictions](https://www.frixlaw.com/law-library/statutes/usc_t12_s604a.md) - [12 U.S.C. § 605 Repealed. Aug. 23, 1935, ch. 614 , title III, § 329, 49 Stat. 717](https://www.frixlaw.com/law-library/statutes/usc_t12_s605.md) - [12 U.S.C. § 611 Formation authorized; fiscal agents; depositaries in insular possessions](https://www.frixlaw.com/law-library/statutes/usc_t12_s611.md) - [12 U.S.C. § 611a Statement of purposes; rules and regulations](https://www.frixlaw.com/law-library/statutes/usc_t12_s611a.md) - [12 U.S.C. § 612 Articles of association; contents](https://www.frixlaw.com/law-library/statutes/usc_t12_s612.md) - [12 U.S.C. § 613 Signing of articles of association; forwarding to and filing by Board of Governors of the Federal Reserve System; organization certificate; contents](https://www.frixlaw.com/law-library/statutes/usc_t12_s613.md) - [12 U.S.C. § 614 Organization certificate; acknowledgment; forwarding to, filing, and approval by Board of Governors of the Federal Reserve System; permit to do business; body corporate; name; seal; corporate succession; contracts; suits; directors, officers, and employees; bylaws](https://www.frixlaw.com/law-library/statutes/usc_t12_s614.md) - [12 U.S.C. § 615 Powers of corporation](https://www.frixlaw.com/law-library/statutes/usc_t12_s615.md) - [12 U.S.C. § 616 Place of carrying on business; when business may be begun](https://www.frixlaw.com/law-library/statutes/usc_t12_s616.md) - [12 U.S.C. § 617 Engaging in commerce or trade in commodities; price fixing; forfeiture of charter; acts forbidden to directors, officers, agents, or employees](https://www.frixlaw.com/law-library/statutes/usc_t12_s617.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/usc_t12_s601. 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