
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 12USC83]

 
                       TITLE 12--BANKS AND BANKING
 
                        CHAPTER 2--NATIONAL BANKS
 
SUBCHAPTER IV--REGULATION OF THE BANKING BUSINESS; POWERS AND DUTIES OF 
                             NATIONAL BANKS
 
Sec. 83. Loans by bank on its own stock


(a) General prohibition

    No national bank shall make any loan or discount on the security of 
the shares of its own capital stock.

(b) Exclusion

    For purposes of this section, a national bank shall not be deemed to 
be making a loan or discount on the security of the shares of its own 
capital stock if it acquires the stock to prevent loss upon a debt 
previously contracted for in good faith.

(R.S. Sec. 5201; Pub. L. 106-569, title XII, Sec. 1207(a), Dec. 27, 
2000, 114 Stat. 3034.)

                          Codification

    R.S. Sec. 5201 derived from act June 3, 1864, ch. 106, Sec. 35, 13 
Stat. 110, which was the National Bank Act. See section 38 of this 
title.


                               Amendments

    2000--Pub. L. 106-569 amended section catchline and text generally. 
Prior to amendment, text read as follows: ``No association shall make 
any loan or discount on the security of the shares of its own capital 
stock, nor be the purchaser or holder of any such shares, unless such 
security or purchase shall be necessary to prevent loss upon a debt 
previously contracted in good faith; and stock so purchased or acquired 
shall, within six months from the time of its purchase, be sold or 
disposed of at public or private sale; or, in default thereof, a 
receiver may be appointed to close up the business of the association, 
according to section 192 of this title.''
