# 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

> Federal · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/usc_t12_s603

## Section

- **Citation:** 12 U.S.C. § 603
- **Heading:** Restrictions imposed by Board of Governors of the Federal Reserve System on banks purchasing stock in corporations doing foreign business
- **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

Before any national bank shall be permitted to purchase stock in any corporation described in section 601 of this title , the said corporation shall enter into an agreement or undertaking with the Board of Governors of the Federal Reserve System to restrict its operations or conduct its business in such manner or under such limitations and restrictions as the said board may prescribe for the place or places wherein such business is to be conducted. If at any time the Board of Governors of the Federal Reserve System shall ascertain that the regulations prescribed by it are not being complied with, said board is authorized and empowered to institute an investigation of the matter and to send for persons and papers, subpoena witnesses, and administer oaths in order to satisfy itself as to the actual nature of the transactions referred to. Should such investigation result in establishing the failure of the corporation in question, or of the national bank or banks which may be stockholders therein, to comply with the regulations laid down by the said Board of Governors of the Federal Reserve System, such national banks may be required to dispose of stock holdings in the said corporation upon reasonable notice.

( Dec. 23, 1913, ch. 6, § 25 (par.), as added Sept. 7, 1916, ch. 461 , 39 Stat. 755 ; amended Aug. 23, 1935, ch. 614 , title II, § 203(a), 49 Stat. 704 .)

## 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)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/usc_t12_s603. Check the current official text before relying on it. Not legal advice.