US Code

Public Law 119-73 (01/23/2026)

12 U.S.C. § 1832

Withdrawals by negotiable or transferable instruments for transfers to third parties

(a)

Authority of depository institution; applicability

(1)
Notwithstanding any other provision of law but subject to paragraph (2), a depository institution is authorized to permit the owner of a deposit or account on which interest or dividends are paid to make withdrawals by negotiable or transferable instruments for the purpose of making transfers to third parties.
(2)
Paragraph (1) shall apply only with respect to deposits or accounts which consist solely of funds in which the entire beneficial interest is held by one or more individuals or by an organization which is operated primarily for religious, philanthropic, charitable, educational, political, or other similar purposes and which is not operated for profit, and with respect to deposits of public funds by an officer, employee, or agent of the United States, any State, county, municipality, or political subdivision thereof, the District of Columbia, the Commonwealth of Puerto Rico, American Samoa, Guam, any territory or possession of the United States, or any political subdivision thereof.
(b)

“Depository institution” defined

For purposes of this section, the term “depository institution” means—
(1)
section 1813 of this title any insured bank as defined in ;
(2)
section 1813 of this title any State bank as defined in ;
(3)
section 1813 of this title any mutual savings bank as defined in ;
(4)
section 1813 of this title any savings bank as defined in ;
(5)
1
1 See References in Text note below.
any insured institution as defined in section 1724  of this title; and
(6)
any building and loan association or savings and loan association organized and operated according to the laws of the State in which it is chartered or organized; and, for purposes of this paragraph, the term “State” means any State of the United States, the District of Columbia, any territory of the United States, Puerto Rico, Guam, American Samoa, or the Virgin Islands.
(c)

Fine

Any depository institution which violates this section shall be fined $1,000 for each violation.

Pub. L. 93–100, § 287 Stat. 342Pub. L. 94–222, § 290 Stat. 197Pub. L. 95–630, title XIII, § 130192 Stat. 3712Pub. L. 96–161, title I, § 10693 Stat. 1235Pub. L. 96–221, title III, § 30394 Stat. 146Pub. L. 97–320, title VII, § 706(a)96 Stat. 1540Pub. L. 100–86, title I, § 109101 Stat. 579(, , ; , , ; , , ; , , ; , , ; , , ; , , .)

Editorial Notes

References in Text

Section 1724 of this titlePub. L. 101–73, title IV, § 407103 Stat. 363, referred to in subsec. (b)(5), was repealed by , , .

Codification

Section was not enacted as part of the Federal Deposit Insurance Act which comprises this chapter.

Amendments

Pub. L. 100–861987—Subsec. (a)(2). inserted “political,” after “educational,”.

Pub. L. 97–3201982—Subsec. (a)(2). inserted provisions relating to deposits of public funds.

Pub. L. 96–2211980—Subsec. (a). designated existing provisions as par. (1) inserted provisions expanding authorization for withdrawals from selected States to the entire United States, and added par. (2).

Pub. L. 96–1611979—Subsec. (a). inserted “New Jersey,” after “New York,”.

Pub. L. 95–6301978—Subsec. (a). inserted “New York,” after “Vermont,”.

Pub. L. 94–2221976—Subsec. (a). authorized withdrawals by negotiable or transferable instruments in the States of Connecticut, Rhode Island, Maine, and Vermont.

Statutory Notes and Related Subsidiaries

Effective Date of 1980 Amendment

Pub. L. 96–221section 306 of Pub. L. 96–221section 1464 of this titleAmendment by effective , see , set out as a note under .

AmendmentEffective Date of 1978

Pub. L. 95–630, title XIII, § 130292 Stat. 3712

“This title [amending this section] shall take effect upon enactment [].”
, , , provided that:

Effective Date

section 8 of Pub. L. 93–100section 1469 of this titleSection effective on thirtieth day after , see , set out as a note under .