Regulation of Financial Institutions:
Statutory Supplement
Table of Contents
|
| Preface |
iii |
. . .
|
| PART I — DEPOSITORY INSTITUTIONS |
| CHAPTER ONE: National Bank Act |
1 |
| § 1. Office of Comptroller of the Currency |
1 |
| § 21. Formation of national banking associations |
1 |
| § 22. Organization certificate |
1 |
| § 24. Corporate powers of associations |
2 |
| § 29. Power to hold real property |
4 |
| § 36. Branch banks |
5 |
| § 43. Interpretations concerning preemption of certain State laws |
8 |
| § 81. Place of business |
9 |
| § 84. Lending limits |
9 |
| § 85. Rate of interest on loans, discounts and purchases |
12 |
| § 90. Depositaries of public moneys and financials agents of Government |
13 |
| § 91. Transfers by bank and other acts in contemplation of insolvency |
14 |
| § 92. Acting as insurance agent or broker |
14 |
| § 92a. Trust powers |
15 |
| § 191. Appointment of Federal Deposit Insurance Corporation as receiver |
16 |
. . .
|
| CHAPTER TWO: Federal Reserve Act |
17 |
| § 371. Real estate loans |
17 |
| § 371c. Banking affiliates |
17 |
| § 371c-1. Restrictions on transactions with affiliates |
22 |
| § 371d. Investment in bank premises or stock of corporation holding premises |
25 |
| § 372. Bankers' acceptances |
25 |
| § 375a. Loans to executive officers of banks |
27 |
| § 375b. Extensions of credit to executive officers, directors, and principal shareholders of member banks |
28 |
. . .
|
| CHAPTER THREE: Home Owners' Loan Act |
31 |
| § 1462. Definitions |
31 |
| § 1467a. Regulation of Holding Companies |
31 |
. . .
|
| CHAPTER FOUR: Federal Credit Union Act |
43 |
| § 1752. Definitions |
43 |
| § 1759. Membership |
43 |
. . .
|
| CHAPTER FIVE: Federal Deposit Insurance Act |
49 |
| § 1813. Definitions |
49 |
| § 1815. Deposit insurance |
52 |
| § 1816. Factors to be considered |
54 |
| § 1817. Assessments |
55 |
| § 1818. Termination of status as insured depository institution |
56 |
| § 1819. Corporate powers |
74 |
| § 1820. Administration of corporation |
75 |
| § 1821. Insurance funds; conservatorship and receivership powers of Corporation |
78 |
| § 1822. Corporation as receiver |
106 |
| § 1823. Corporation monies |
107 |
| § 1828. Regulations governing insured depository institutions |
116 |
| § 1831a. Activities of insured State banks |
119 |
| § 1831d. State-chartered insured depository institutions and insured branches of foreign banks |
122 |
| § 1831f. Brokered deposits |
123 |
| § 1831g. Contracts between depository institutions and persons providing goods, products, or services |
124 |
| § 1831o. Prompt corrective action |
124 |
| § 1831p-1. Standards for safety and soundness |
140 |
| § 1831u. Interstate bank mergers |
142 |
. . .
|
| CHAPTER SIX: Bank Holding Company Act |
147 |
| § 1841. Definitions |
147 |
| § 1842. Acquisition of bank shares or assets |
150 |
| § 1843. Interests in nonbanking organizations |
154 |
| § 1844. Administration |
157 |
| § 1846. Reservation of rights to States |
160 |
| § 1972. Certain tying arrangements prohibited; correspondent accounts |
160 |
. . .
|
| CHAPTER SEVEN: Community Reinvestment Act |
161 |
| § 2901. Congressional findings and statement of purpose |
161 |
| § 2903. Financial institutions; evaluation |
161 |
| § 2906. Written evaluations |
162 |
. . .
|
| CHAPTER EIGHT: International Lending Supervision Act of 1983 |
165 |
| § 3907. Capital adequacy |
165 |
. . .
|
| CHAPTER NINE: Selected Banking Regulations |
167 |
| Part 1 — Investment Securities |
167 |
| § 1.2 Definitions |
167 |
| § 1.3 Limitations on dealing in, underwriting, and purchase and sale of securities |
170 |
| § 1.4 Calculation of limits |
172 |
| § 1.5 Safe and sound banking practices; credit information required |
173 |
| Part 3 — Minimum Capital Ratios; Issuance of Directives |
174 |
| § 3.6. Minimum capital ratios |
174 |
| § 3.12. Procedures |
174 |
| § 3.14. Remedies |
176 |
| § 3.15. Purpose and scope |
176 |
| § 3.16. Notice of intent to issue a directive |
177 |
| § 3.17. Response to notice |
177 |
| § 3.18. Decision |
178 |
| § 3.19. Issuance of a directive |
178 |
| Appendix A to Part 3 — Risk-based Capital Guidelines |
178 |
Section 2. Components of Capital |
178 |
Section 3. Risk Categories/Weights for On-Balance Sheet Assets and Off-Balance Sheet Items |
180 |
| Part 5 — Rules, Policies, and Procedures for Corporate Activities |
185 |
| § 5.20 Organizing a bank |
186 |
| § 5.34 Operating subsidiaries |
188 |
| Part 6 — Prompt Corrective Action |
195 |
| § 6.2. Definitions |
195 |
| Part 7 — Interpretive Rulings |
196 |
| § 7.1006. Loan agreement providing for a share in profits, income, or earnings or for stock warrants. |
196 |
| § 7.1012. Messenger service. |
196 |
| § 7.1019. Furnishing of products and services by electronic means and facilities |
197 |
| § 7.3001. Sharing space and employees. |
197 |
| § 7.4001. Charging interest at rates permitted competing institutions; charging interest to corporate borrowers |
198 |
| Part 9 — Fiduciary Activities of National Banks |
199 |
| § 9.2 Definitions |
199 |
| § 9.10 Fiduciary Funds Awaiting Investment or Distribution |
200 |
| § 9.12 Self-dealing and Conflicts of Interest |
200 |
| § 9.15 Fiduciary compensation |
202 |
| § 9.18 Collective Investment funds |
202 |
| § 9.100 Acting as indenture trustee and creditor |
204 |
| Part 23 — Leasing 204 |
199 |
| Subpart A — General Provisions |
204 |
§ 23.1 Authority, purpose, and scope |
204 |
|
205 |
§ 23.3 Lease requirements |
206 |
§ 23.4 Investment in personal property |
206 |
§ 23.6 Application of lending limits; restrictions on transactions with affiliates |
207 |
| Subpart B — CEBA Leases |
208 |
|
208 |
|
208 |
| Subpart C — Section 24 (Seventh) Leases |
208 |
|
208 |
§ 23.21 Estimated residual value |
208 |
| Part 25 — Community Reinvestment Act Regulations |
209 |
| § 25.21. Performance tests, standards, and ratings, in general |
209 |
| § 25.22. Lending test |
210 |
| § 25.23. Investment test |
212 |
| § 25.24. Service test |
213 |
| § 25.25. Community development test for wholesale or limited purpose banks |
214 |
| § 25.26. Small bank performance standards |
215 |
| § 25.27. Strategic plan |
216 |
| § 25.28 Assigned ratings |
218 |
| § 25.41. Assessment area delineation |
218 |
| § 25.42. Data collection, reporting, and disclosure |
220 |
| § 25.43. Content and availability of public file |
223 |
| Part 32 — Lending Limits |
225 |
| § 32.1. Authority, purpose and scope |
225 |
| § 32.2. Definitions |
226 |
| § 32.3. Lending limits |
231 |
| § 32.4. Calculation of lending limits |
234 |
| § 32.5. Combination rules |
235 |
| § 32.6. Nonconforming loans |
237 |
| Part 215 — Loans to Executive Officers, Directors, and Principal Shareholders of Member Banks (Regulation O) |
238 |
| § 215.1. Authority, purpose, and scope |
238 |
| § 215.2. Definitions |
238 |
| § 215.3. Extension of credit |
241 |
| § 215.4. General prohibitions |
243 |
| § 215.5. Additional restrictions on loans to executive officers of member banks |
246 |
| Part 225 — Bank Holding Companies and Change in Bank Control (Regulation Y) |
247 |
| § 225.2. Definitions |
247 |
| § 225.28. List of permissible nonbanking activities |
248 |
| § 225.31. Control proceedings |
256 |
. . .
|
| PART II — INSURANCE STATUTES |
| CHAPTER TEN: McCarran-Ferguson Act |
259 |
| § 1. Declaration of policy |
259 |
| § 2. Regulation by State law; Federal law relating specifically to insurance; applicability of certain Federal laws after June 30, 1948 |
259 |
| § 3. Suspension until June 30, 1948, of application of certain Federal laws; Sherman Act applicable to agreements to, or acts of, boycott, coercion, or intimidation |
260 |
| § 4. Effect on other laws |
260 |
| § 5. "State" defined |
260 |
. . .
|
| CHAPTER ELEVEN: Employee Retirement Income Securities Act of 1974 |
261 |
| § 2. Congressional findings and declaration of policy |
261 |
| § 3. Definitions |
262 |
| § 4. Coverage |
264 |
| § 203. Minimum vesting standards |
265 |
| § 401. Coverage |
266 |
| § 402. Establishment of plan |
269 |
| § 403. Establishment of trust |
270 |
| § 404. Fiduciary duties |
271 |
| § 406. Prohibited transactions |
272 |
| § 407. Limitation with respect to acquisition and holding of employer securities and employer real property by certain plans |
273 |
| § 408. Exemptions from prohibited transactions |
274 |
| § 409. Liability for breach of fiduciary duty |
275 |
| § 501. Criminal penalties |
275 |
| § 502. Civil enforcement |
276 |
| § 503. Claims procedure |
277 |
| § 504. Investigative authority |
277 |
| § 514. Other laws |
278 |
. . .
|
| PART III — SECURITIES INDUSTRY |
| CHAPTER TWELVE: Securities Act of 1933 and Selected Regulations |
281 |
| § 1. Short Title |
281 |
| § 2(a). Definitions |
281 |
| § 3. Exempted securities |
282 |
| § 4. Exempted Transactions |
283 |
| § 5. Prohibitions relating to interstate commerce and the mails |
283 |
| § 8. Taking effect of registration statements and amendments thereto |
284 |
| § 11. Civil liabilities on account of false registration statement |
285 |
| § 14. Contrary stipulations void |
286 |
| § 15. Liability of controlling persons |
286 |
| § 17. Fraudulent interstate transactions |
287 |
| Rule 151. Safe harbor definition of certain "annuity contracts or optional annuity contracts" within the meaning of Section 3(a)(8) |
287 |
. . .
|
| CHAPTER THIRTEEN: Securities Exchange Act of 1934 |
289 |
| § 1. Short title |
289 |
| § 2. Necessity for regulation |
289 |
| § 3. Definitions and application |
290 |
| § 4. Securities and Exchange Commission |
292 |
| § 5. Transactions on unregistered exchanges |
294 |
| § 6. National securities exchanges |
294 |
| § 9. Manipulation of security prices |
299 |
| § 10. Manipulative and deceptive devices |
301 |
| § 11A. National market system for securities; securities information processors |
301 |
| § 12. Registration requirements for securities |
303 |
| § 13. Periodical and other reports |
306 |
| § 14. Proxies |
309 |
| § 15. Registration and regulation of brokers and dealers |
310 |
| § 15A. Registered securities associations |
326 |
| § 17. Records and reports |
331 |
| § 19. Registration, responsibilities, and oversight of self-regulatory organizations |
340 |
| § 20. Liability of controlling persons and persons who aid and abet violations |
346 |
| § 21. Investigations and actions |
347 |
| § 21A. Civil penalties for insider trading |
351 |
| § 28. Effect on existing law |
352 |
| § 29. Validity of contracts |
355 |
| § 32. Penalties |
355 |
. . .
|
| CHAPTER FOURTEEN: Selected Rules and Regulations under the Securities Exchange Act of 1934 |
357 |
| 3a4-1. Associated persons of an issuer deemed not to be brokers |
357 |
| 10b-5. Employment of manipulative and deceptive devices |
359 |
| 10b-10. Confirmation of transactions |
360 |
| 11Ac1-3. Customer account statements |
367 |
| 11Ac1-4. Display of customer limit orders |
368 |
| 15c1-2. Fraud and misrepresentation |
371 |
| 15c2-11. Initiation or resumption of quotations without specific information |
371 |
| 15c3-1. Net capital requirements for brokers or dealers |
374 |
| 15g-1. Exemptions for certain transactions |
375 |
| 15g-2. Risk disclosure document relating to the penny stock market |
376 |
| 15g-3. Broker or dealer disclosure of quotations and other information relating to the penny stock market |
376 |
| 15g-4. Disclosure of compensation to brokers or dealers |
379 |
| 15g-5. Disclosure of compensation of associated persons in connection
with penny stock transactions |
380 |
| 15g-6. Account statements for penny stock customers |
381 |
| 15g-8. Sales of escrowed securities of blank check companies |
383 |
| 15g-9. Sales practice requirements for certain low-priced securities |
384 |
| 19c-4. Governing certain listing or authorization determinations by national securities exchanges and associations |
385 |
. . .
|
| PART IV — INVESTMENT MANAGEMENT |
| CHAPTER FIFTEEN: Investment Advisers Act of 1940 |
389 |
| § 201. Findings |
389 |
| § 202. Definitions |
389 |
| § 203. Registration of investment advisers |
390 |
| § 203A. State and Federal responsibilities |
393 |
| § 205. Investment advisory contracts |
-- |
| § 206. Prohibited transactions by investment advisers |
396 |
| CHAPTER SIXTEEN: Selected Rules and Regulations under the Investment Advisers Act of 1940 |
397 |
| § 203-1. Application for registration of investment adviser |
397 |
| § 203-2. Withdrawal from registration |
398 |
| § 203(b)(3)-1. Definition of "client" of an investment adviser |
398 |
| § 203A-1. Eligibility for commission registration |
400 |
| § 203A-2. Exemptions from prohibition on commission registration |
402 |
| § 204-1. Amendments to application for registration |
405 |
| § 204-2. Books and records to be maintained by investment advisers |
405 |
| § 204-3. Written disclosure statements |
416 |
| § 205-1. Definition of "investment performance" of an investment company and "investment record" of an appropriate index of securities prices |
420 |
| § 205-2. Definition of "specified period" over which the asset value of the company or fund under management is averaged |
421 |
| § 205-3. Exemption from the compensation prohibition of section 205(a)(1) for investment advisers |
421 |
| § 206(3)-1. Exemption of investment advisers registered as broker-dealers in connection with the provision of certain investment advisory services |
424 |
. . .
|
| CHAPTER SEVENTEEN: Investment Company Act of 1940 |
425 |
| § 1. Findings and Declaration of Policy |
425 |
| § 2. General Definitions |
427 |
| § 3. Definition of Investment Company |
432 |
| § 4. Classification of Investment Companies |
436 |
| § 5. Subclassification of Management Companies |
437 |
| § 8. Registration of Investment Companies |
437 |
| § 10. Affiliations or Interest of Directors, Officers, and Employees |
440 |
| § 12. Functions and Activities of Investment Companies |
443 |
| § 13. Changes in Investment Policy |
450 |
| § 14. Size of Investment Companies |
450 |
| § 15. Contracts of Advisers and Underwriters |
452 |
| § 17. Transactions of Certain Affiliated Persons and Underwriters |
455 |
| § 18. Capital Structure of Investment Companies |
460 |
| § 20. Proxies; Voting Trusts; Circular Ownership |
463 |
| § 22. Distribution, Redemption, and Repurchase of Securities; Regulations by Securities Associations |
464 |
| § 30. Reports and Financial Statements of Investment Companies and Affiliated Persons |
467 |
| § 34. Destruction and Falsification of Reports and Records |
468 |
| § 36. Breach of Fiduciary Duty |
468 |
. . .
|
| CHAPTER EIGHTEEN: Selected Rules and Regulations under the Investment Company Act of 1940 |
471 |
| 2a-4. Definition of "current net asset value" for use in computing periodically the current price of redeemable security |
471 |
| 3a-2. Transient Investment Companies |
472 |
| 3c-4. Definition of "common trust fund" as used in section 3(c)(3) of the Act |
473 |
| 12b-1. Distribution of shares by registered open-end management investment company |
473 |
| 17a-7. Exemption of certain purchase or sale transactions between an investment company and certain affiliated persons thereof |
476 |
| 17e-1. Brokerage transactions on a securities exchange |
478 |
| 17f-5. Custody of investment company assets outside the United States |
479 |
| 17j-1. Certain unlawful acts, practices, or courses of business and requirements relating to codes of ethics with respect to registered investment companies |
483 |
| 22c-1. Pricing of redeemable securities for distribution, redemption and repurchase. |
487 |
. . .
|
| PART V — INTER-INDUSTRY COMPETITION |
| CHAPTER NINETEEN: Glass-Steagall Act |
491 |
| § 16. Corporate powers of associations |
491 |
| § 20. Affiliation with organization dealing in securities; penalties |
492 |
| § 21. Dealers in securities engaging in banking business; individuals
or associations engaging in banking business; examinations
and reports; penalties |
493 |
| § 32. Certain persons excluded from serving as officers, directors or employees of member banks |
494 |
. . .
|
| Appendix A: Sample Form N-1A Prospectus |
A-1 |
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