FEDERAL · 12 U.S.C. · Chapter SUBCHAPTER II—CAPITAL, STOCK, AND STOCKHOLDERS
Prohibition on withdrawal of capital; unearned dividends
12 U.S.C. § 56
Title12 — Banks and Banking
ChapterSUBCHAPTER II—CAPITAL, STOCK, AND STOCKHOLDERS
This text of 12 U.S.C. § 56 (Prohibition on withdrawal of capital; unearned dividends) is published on Counsel Stack Legal Research, covering United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
Bluebook
12 U.S.C. § 56.
Text
No association, or any member thereof, shall, during the time it shall continue its banking operations, withdraw, or permit to be withdrawn, either in the form of dividends or otherwise, any portion of its capital. If losses have at any time been sustained by any such association, equal to or exceeding its undivided profits then on hand, no dividend shall be made; and no dividend shall ever be made by any association, while it continues its banking operations, to an amount greater than its undivided profits, subject to other applicable provisions of law. But nothing in this section shall prevent the reduction of the capital stock of the association under section 59 of this title.
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Related
Watters v. Wachovia Bank, N. A.
550 U.S. 1 (Supreme Court, 2007)
Deitrick v. Greaney
309 U.S. 190 (Supreme Court, 1940)
Federal Deposit Ins. Corporation v. Mason
115 F.2d 548 (Third Circuit, 1940)
United States v. Armstrong
26 F.2d 227 (Eighth Circuit, 1928)
Nettles v. Childs
100 F.2d 952 (Fourth Circuit, 1939)
Schlener v. Davis
75 F.2d 371 (Fifth Circuit, 1935)
Fidelity-Philadelphia Trust Co. v. Philadelphia-Girard Nat. Bank
33 F.2d 649 (Third Circuit, 1929)
Herring Bancorp, Inc. C.C. Burgess And C. Campbell Burgess v. John Mikkelsen, Acting Solely in His Capacity as Trustee of the John Mikkelsen Trust
(Court of Criminal Appeals of Texas, 2015)
Source Credit
History
(R.S. §5204; Pub. L. 103–325, title VI, §602(h)(1), Sept. 23, 1994, 108 Stat. 2294.)
Editorial Notes
Editorial Notes
Codification
R.S. §5204 derived from act June 3, 1864, ch. 106, §38, 13 Stat. 110, which was the National Bank Act. See section 38 of this title.
Amendments
1994—Pub. L. 103–325 substituted "undivided profits, subject to other applicable provisions of law" for "net profits then on hand, deducting therefrom its losses and bad debts" in second sentence and struck out after second sentence "All debts due to any associations, on which interest is past due and unpaid for a period of six months, unless the same are well secured, and in process of collection, shall be considered bad debts within the meaning of this section."
Codification
R.S. §5204 derived from act June 3, 1864, ch. 106, §38, 13 Stat. 110, which was the National Bank Act. See section 38 of this title.
Amendments
1994—Pub. L. 103–325 substituted "undivided profits, subject to other applicable provisions of law" for "net profits then on hand, deducting therefrom its losses and bad debts" in second sentence and struck out after second sentence "All debts due to any associations, on which interest is past due and unpaid for a period of six months, unless the same are well secured, and in process of collection, shall be considered bad debts within the meaning of this section."
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Bluebook (online)
12 U.S.C. § 56, Counsel Stack Legal Research, https://law.counselstack.com/usc/12/56.