12 U.S.C. § 83 - Loans by bank on its own stock

Cite as:12 U.S.C. § 83
Currency:Current through P.L. 116-158 (08/14/2020)
 
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(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.

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