12 U.S.C. § 611 — Formation authorized; fiscal agents; de-

Page 186 TITLE 12—BANKS AND BANKING § 604 chapter. For classification of other pars. of section 25 of this Act, see Codification note under section 601 of this title. Statutory Notes and Related Subsidiaries CHANGE OF NAME Section 203(a) of act Aug. 23, 1935, changed name of Federal Reserve Board to Board of Governors of the Federal Reserve System. § 604. Accounts of foreign branches; profit and loss Every national banking association operating foreign branches shall conduct the accounts of each foreign branch independently of the ac- counts of other foreign branches established by it and of its home office, and shall at the end of each fiscal period transfer to its general ledger the profit or loss accrued at each branch as a separate item. (Dec. 23, 1913, ch. 6, § 25 (par.), 38 Stat. 273; Sept. 7, 1916, ch. 461, 39 Stat. 756.) Editorial Notes CODIFICATION Section is comprised of the sixth undesignated par. of section 25 of act Dec. 23, 1913, which comprises this sub- chapter. For classification of other pars. of section 25 of this Act, see Codification note under section 601 of this title. The words ‘‘national banking association operating foreign branches’’ were in the original ‘‘such banking association’’. AMENDMENTS 1916—Act Sept. 7, 1916, substituted ‘‘accrued’’ for ‘‘ac- cruing’’. § 604a. Regulations authorizing exercise by for- eign branches of usual powers of local banks; restrictions Regulations issued by the Board of Governors of the Federal Reserve System under this sub- chapter, in addition to regulating powers which a foreign branch may exercise under other provi- sions of law, may authorize such a foreign branch, subject to such conditions and require- ments as such regulations may prescribe, to ex- ercise such further powers as may be usual in connection with the transaction of the business of banking in the places where such foreign branch shall transact business. Such regulations shall not authorize a foreign branch to engage in the general business of producing, distributing, buying or selling goods, wares, or merchandise; nor, except to such limited extent as the Board may deem to be necessary with respect to secu- rities issued by any ‘‘foreign state’’ as defined in section 632 of this title, shall such regulations authorize a foreign branch to engage or partici- pate, directly or indirectly, in the business of underwriting, selling, or distributing securities. (Dec. 23, 1913, ch. 6, § 25 (par.), as added Pub. L. 87–588, Aug. 15, 1962, 76 Stat. 388.) Editorial Notes REFERENCES IN TEXT This subchapter, referred to in text, was in the origi- nal ‘‘this section’’, meaning section 25 of act Dec. 23, 1913, which is classified to this subchapter (§ 601 et seq.). CODIFICATION Section is comprised of the seventh undesignated par. of section 25 of act Dec. 23, 1913, which comprises this subchapter. For classification of other pars. of section 25 of this Act, see Codification note under section 601 of this title. § 605. Repealed. Aug. 23, 1935, ch. 614, title III, § 329, 49 Stat. 717 Section, act Dec. 23, 1913, ch. 6, § 25 (par.), 38 Stat. 273, as amended by act Sept. 7, 1916, ch. 461, 39 Stat. 755, re- lated to interlocking directors, officers, and employees. See section 19 of Title 15, Commerce and Trade. Section was comprised of the former seventh undesig- nated par. of section 25 of act Dec. 23, 1913, which com- prises this subchapter. For classification of other pars. of section 25 of this Act, see Codification note under section 601 of this title. SUBCHAPTER II—ORGANIZATION OF CORPORATIONS TO DO FOREIGN BANKING § 611. Formation authorized; fiscal agents; de- positaries in insular possessions Corporations to be organized for the purpose of engaging in international or foreign banking or other international or foreign financial oper- ations, or in banking or other financial oper- ations in a dependency or insular possession of the United States, either directly or through the agency, ownership or control of local institu- tions in foreign countries, or in such depend- encies or insular possessions as provided by this subchapter and to act when required by the Sec- retary of the Treasury as fiscal agents of the United States, may be formed by any number of natural persons, not less in any case than five: Provided, That nothing in this subchapter shall be construed to deny the right of the Secretary of the Treasury to use any corporation orga- nized under this subchapter as depositaries in Panama and the Panama Canal Zone, or other insular possessions and dependencies of the United States. (Dec. 23, 1913, ch. 6, § 25A (par.), formerly § 25(a), as added Dec. 24, 1919, ch. 18, 41 Stat. 378; amend- ed Feb. 27, 1921, ch. 73, 41 Stat. 1145; Proc. No. 2695, eff. July 4, 1946, 11 F.R. 2517, 60 Stat. 1352; renumbered § 25A, Pub. L. 102–242, title I, § 142(e)(2), Dec. 19, 1991, 105 Stat. 2281.) Editorial Notes REFERENCES IN TEXT This subchapter, referred to in text, was in the origi- nal ‘‘this section’’, meaning section 25A of act Dec. 23, 1913, which is classified to this subchapter (§ 611 et seq.). For definition of Canal Zone, referred to in text, see section 3602(b) of Title 22, Foreign Relations and Inter- course. CODIFICATION Section is comprised of par. 1 (undesignated) of sec- tion 25A of act Dec. 23, 1913, which comprises this sub- chapter. Par. 2 (undesignated) is classified to section 611a of this title. Pars. 3 to 5 (undesignated), formerly pars. 2 to 4 (un- designated), respectively, are classified to sections 612 to 614, respectively, of this title. Pars. 6 and 7 (undesignated), formerly pars. 5 and 6 (undesignated), respectively, are classified to section 615 of this title. Page 187 TITLE 12—BANKS AND BANKING § 612 Pars. 8 to 15 (undesignated), formerly pars. 7 to 14 (undesignated), respectively, are classified to sections 616 to 623, respectively, of this title. Par. (16), formerly par. 16 (undesignated), formerly par. 15 (undesignated), is classified to section 624 of this title. Pars. 17 to 23 (undesignated), formerly pars. 16 to 22 (undesignated), are classified to sections 625 to 631 of this title. Words ‘‘in the Philippine Islands and’’ following ‘‘Canal Zone, or’’ were deleted on authority of Proc. No. 2695, which granted independence to the Philippine Islands pursuant to section 1394 of Title 22, Foreign Re- lations and Intercourse. Proc. No. 2695 is set out as a note under section 1394 of Title 22. AMENDMENTS 1921—Act Feb. 27, 1921, inserted proviso. Statutory Notes and Related Subsidiaries SHORT TITLE Act Dec. 23, 1913, ch. 6, § 25A (par.), formerly § 25(a), as added by act Dec. 24, 1919, ch. 18, 41 Stat. 378; amended Feb. 27, 1921, ch. 73, 41 Stat. 1145; Proc. No. 2695, eff. July 4, 1946, 11 F.R. 2517, 60 Stat. 1352; renumbered § 25A, Pub. L. 102–242, title I, § 142(e)(2), Dec. 19, 1991, 105 Stat. 2281, which is classified to this subchapter, is popularly known as the ‘‘Edge Act’’. § 611a. Statement of purposes; rules and regula- tions The Congress declares that it is the purpose of this subchapter to provide for the establishment of international banking and financial corpora- tions operating under Federal supervision with powers sufficiently broad to enable them to compete effectively with similar foreign-owned institutions in the United States and abroad; to afford to the United States exporter and im- porter in particular, and to United States com- merce, industry, and agriculture in general, at all times a means of financing international trade, especially United States exports; to foster the participation by regional and smaller banks throughout the United States in the provision of international banking and financing services to all segments of United States agriculture, com- merce, and industry, and, in particular small business and farming concerns; to stimulate competition in the provision of international banking and financing services throughout the United States; and, in conjunction with each of the preceding purposes, to facilitate and stimu- late the export of United States goods, wares, merchandise, commodities, and services to achieve a sound United States international trade position. The Board of Governors of the Federal Reserve System shall issue rules and regulations under this subchapter consistent with and in furtherance of the purposes de- scribed in the preceding sentence, and, in ac- cordance therewith, shall review and revise any such rules and regulations at least once every five years, the first such period commencing with the effective date of rules and regulations issued pursuant to section 3(a) of the Inter- national Banking Act of 1978, in order to ensure that such purposes are being served in light of prevailing economic conditions and banking practices. (Dec. 23, 1913, ch. 6, § 25A (par.), formerly § 25(a), as added Pub. L. 95–369, § 3(b), Sept. 17, 1978, 92 Stat. 608; renumbered § 25A, Pub. L. 102–242, title I, § 142(e)(2), Dec. 19, 1991, 105 Stat. 2281.) Editorial Notes REFERENCES IN TEXT This subchapter, referred to in text, was in the origi- nal ‘‘this section’’, meaning section 25A of act Dec. 23, 1913, which is classified to this subchapter (§ 611 et seq.). Section 3(a) of the International Banking Act of 1978, referred to in text, is Pub. L. 95–369, § 3(a), Sept. 17, 1978, 92 Stat. 608, which is set out below. CODIFICATION Section is comprised of par. 2 (undesignated) of sec- tion 25A of act Dec. 23, 1913, which comprises this sub- chapter. For complete classification of section 25A of this Act, see Codification note set out under section 611 of this title. Statutory Notes and Related Subsidiaries ELIMINATION OR MODIFICATION OF RESTRICTIONS LIM- ITING FOREIGN BANKING; CONGRESSIONAL DECLARA- TION OF PURPOSE Pub. L. 95–369, § 3(a), Sept. 17, 1978, 92 Stat. 608, pro- vided that: ‘‘It is the purpose of this section [adding this section, amending sections 614, 615, 618, and 619 of this title, and enacting provisions set out as note under section 247 of this title] to eliminate or modify provi- sions in section 25(a) [now 25A] of the Federal Reserve Act [this subchapter] that (1) discriminate against for- eign-owned banking institutions, (2) disadvantage or unnecessarily restrict or limit corporations organized under section 25(a) of the Federal Reserve Act in com- peting with foreign-owned banking institutions in the United States or abroad or (3) impede the attainment of the Congressional purposes set forth in section 25(a) of the Federal Reserve Act as amended by subsection (b) of this section [adding this section]. In furtherance of such purpose, the Congress believes that the Board should review and revise its rules, regulations, and in- terpretations issued pursuant to section 25(a) of the Federal Reserve Act to eliminate or modify any re- strictions, conditions, or limitations not required by section 25(a) of the Federal Reserve Act, as amended, that (1) discriminate against foreign-owned banking in- stitutions, (2) disadvantage or unnecessarily restrict or limit corporations organized under section 25(a) of the Federal Reserve Act in competing with foreign-owned banking institutions in the United States or abroad, or (3) impede the attainment of the Congressional pur- poses set forth in section 25(a) of the Federal Reserve Act as amended by subsection (b) of this section. Rules and regulations pursuant to this subsection and section 25(a) of the Federal Reserve Act shall be issued not later than 150 days after the date of enactment of this section [Sept. 17, 1978] and shall be issued in final form and become effective not later than 120 days after they are first issued.’’ § 612. Articles of association; contents The persons described in section 611 of this title shall enter into articles of association which shall specify in general terms the objects for which the association is formed and may contain any other provisions not inconsistent with law which the association may see fit to adopt for the regulation of its business and the conduct of its affairs. (Dec. 23, 1913, ch. 6, § 25A (par.), formerly § 25(a), as added Dec. 24, 1919, ch. 18, 41 Stat. 378; renum- bered § 25A, Pub. L. 102–242, title I, § 142(e)(2), Dec. 19, 1991, 105 Stat. 2281.)