US Code

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

12 U.S.C. § 371d

Investment in bank premises or stock of corporation holding premises

(a)

Conditions of investment

No national bank or State member bank shall invest in bank premises, or in the stock, bonds, debentures, or other such obligations of any corporation holding the premises of such bank, or make loans to or upon the security of any such corporation—
(1)
unless the bank receives the prior approval of the Comptroller of the Currency (with respect to a national bank) or the Board (with respect to a State member bank);
(2)
unless the aggregate of all such investments and loans, together with the amount of any indebtedness incurred by any such corporation that is an affiliate of the bank, is less than or equal to the amount of the capital stock of such bank; or
(3)
unless—
(A)
the aggregate of all such investments and loans, together with the amount of any indebtedness incurred by any such corporation that is an affiliate of the bank, is less than or equal to 150 percent of the capital and surplus of the bank; and
(B)
the bank—
(i)
has a CAMEL composite rating of 1 or 2 under the Uniform Financial Institutions Rating System (or an equivalent rating under a comparable rating system) as of the most recent examination of such bank;
(ii)
is well capitalized and will continue to be well capitalized after the investment or loan; and
(iii)
provides notification to the Comptroller of the Currency (with respect to a national bank) or to the Board (with respect to a State member bank) not later than 30 days after making the investment or loan.
(b)

Definitions

For purposes of this section—
(1)
section 221a of this title the term “affiliate” has the same meaning as in ; and
(2)
o the term “well capitalized” has the same meaning as in section 1831(b) of this title.

Dec. 23, 1913, ch. 6, § 24AJune 16, 1933, ch. 89, § 1448 Stat. 184Aug. 23, 1935, ch. 61449 Stat. 704June 30, 1954, ch. 434, § 268 Stat. 358Pub. L. 104–208, div. A, title II, § 2206110 Stat. 3009–405(, as added , ; amended , title II, § 203(a), ; , ; , , .)

Editorial Notes

Amendments

Pub. L. 104–208section 221a of this title1996— inserted section catchline and amended text generally. Prior to amendment, text read as follows: “No national bank, without the approval of the Comptroller of the Currency, and no State member bank, without the approval of the Board of Governors of the Federal Reserve System, shall (1) invest in bank premises, or in the stock, bonds, debentures, or other such obligations of any corporation holding the premises of such bank, or (2) make loans to or upon the security of the stock of any such corporation, if the aggregate of all such investments and loans, together with the amount of any indebtedness incurred by any such corporation which is an affiliate of the bank, as defined in , will exceed the amount of the capital stock of such bank.”

section 221a of this title1954—Act , inserted “together with the amount of any indebtedness incurred by any such corporation which is an affiliate of the bank, as defined in ”.

Statutory Notes and Related Subsidiaries

Change of Name

Section 203(a) of act , changed name of Federal Reserve Board to Board of Governors of the Federal Reserve System.

Executive Documents

Exception as to Transfer of Functions

section 1 of this titleFunctions vested by any provision of law in Comptroller of the Currency, referred to in this section, not included in transfer of functions to Secretary of the Treasury, see note set out under .