12 U.S.C. § 27

Certificate of authority to commence banking

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(a) If, upon a careful examination of the facts so reported, and of any other facts which may come to the knowledge of the Comptroller, whether by means of a special commission appointed by him for the purpose of inquiring into the condition of such association, or otherwise, it appears that such association is lawfully entitled to commence the business of banking, the Comptroller shall give to such association a certificate, under his hand and official seal, that such association has complied with all the provisions required to be complied with before commencing the business of banking, and that such association is authorized to commence such business. But the Comptroller may withhold from an association his certificate authorizing the commencement of business, whenever he has reason to suppose that the shareholders have formed the same for any other than the legitimate objects contemplated by title 62 of the Revised Statutes. A National Bank Association, to which the Comptroller of the Currency has heretofore issued or hereafter issues such certificate, is not illegally constituted solely because its operations are or have been required by the Comptroller of the Currency to be limited to those of a trust company and activities related thereto.(b)(1) The Comptroller of the Currency may also issue a certificate of authority to commence the business of banking pursuant to this section to a national banking association which is owned exclusively (except to the extent directors’ qualifying shares are required by law) by other depository institutions or depository institution holding companies and is organized to engage exclusively in providing services to or for other depository institutions, their holding companies, and the officers, directors, and employees of such institutions and companies, and in providing correspondent banking services at the request of other depository institutions or their holding companies (also referred to as a “banker’s bank”).(2) Any national banking association chartered pursuant to paragraph (1) shall be subject to such rules, regulations, and orders as the Comptroller deems appropriate, and, except as otherwise specifically provided in such rules, regulations, or orders, shall be vested with or subject to the same rights, privileges, duties, restrictions, penalties, liabilities, conditions, and limitations that would apply under the national banking laws to a national bank.(R.S. § 5169; Pub. L. 95–630, title XV, § 1504, Nov. 10, 1978, 92 Stat. 3713; Pub. L. 96–221, title VII, § 712(a), (c), Mar. 31, 1980, 94 Stat. 189, 190; Pub. L. 97–320, title IV, § 404(a), Oct. 15, 1982, 96 Stat. 1511; Pub. L. 103–325, title III, § 322(a)(2), Sept. 23, 1994, 108 Stat. 2227.)Editorial NotesReferences in Text

Title 62 of the Revised Statutes, referred to in subsec. (a), was in the original “this Title” meaning title LXII of the Revised Statutes, consisting of R.S. §§ 5133 to 5244, which are classified to this section and sections 16, 21, 22 to 24a, 25a, 25b, 26, 29, 35 to 37, 39, 43, 52, 53, 55 to 57, 59 to 62, 66, 71, 72 to 76, 81, 83 to 86, 90, 91, 93, 93a, 94, 141 to 144, 161, 164, 181, 182, 192 to 194, 196, 215c, 481 to 485, 501, 541, 548, and 582 of this title. See, also, sections 8, 333, 334, 475, 656, 709, 1004, and 1005 of Title 18, Crimes and Criminal Procedure. For complete classification of R.S. §§ 5133 to 5244 to the Code, see Tables.

Codification

R.S. § 5169 derived from act June 3, 1864, ch. 106, §§ 12, 18, 13 Stat. 102, 104, which was the National Bank Act. See section 38 of this title.

Amendments

1994—Subsec. (b)(1). Pub. L. 103–325, § 322(a)(2)(A), inserted “or depository institution holding companies” after “by other depository institutions”.

Pub. L. 103–325, § 322(a)(2)(B), which directed substitution of “services to or for other depository institutions, their holding companies, and the officers, directors, and employees of such institutions and companies, and in providing correspondent banking services at the request of other depository institutions or their holding companies (also referred to as a ‘banker’s bank’)” for “services for other depository institutions and their officers, directors and employees”, was executed by making the substitution for “services for other depository institutions and their officers, directors, and employees” to reflect the probable intent of Congress.

1982—Pub. L. 97–320 designated existing provisions as subsec. (a) and added subsec. (b).

1980—Pub. L. 96–221, § 712(a), (c), temporarily inserted provisions relating to treatment of national banking associations as additional banks within the contemplation of section 1842 of this title. See Termination Date of 1980 Amendment note below.

1978—Pub. L. 95–630 inserted provision that a National Bank Association, to which the Comptroller of the Currency has heretofore issued or hereafter issues such certificate, is not illegally constituted solely because its operations are or have been required by the Comptroller of the Currency to be limited to those of a trust company and activities related thereto.

Statutory Notes and Related SubsidiariesTermination Date of 1980 Amendment

Pub. L. 96–221, title VII, § 712(c), Mar. 31, 1980, 94 Stat. 190, provided that: “The amendments made by this section [amending this section and section 1842 of this title] are hereby repealed on October 1, 1981.”

Effective Date of 1978 Amendment

Pub. L. 95–630, title XV, § 1505, Nov. 10, 1978, 92 Stat. 3713, provided that: “This title [amending this section and sections 1715z–10 and 2902 of this title and amending provisions set out as a note under section 1666f of Title 15, Commerce and Trade] shall take effect upon enactment [Nov. 10, 1978].”

Executive DocumentsException as to Transfer of Functions

Functions 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 section 1 of this title.

Notes of Decisions

Cited in 45 cases (4 in the last 5 years), 1937–2026 · leading case: Vullo v. Off. of the Comptroller of the Currency, 378 F. Supp. 3d 271 (S.D. Ill. 2019).

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Vullo v. Off. of the Comptroller of the Currency, 378 F. Supp. 3d 271 (S.D. Ill. 2019). · cites it 7× “12 U.S.C. § 27 (" Section 27"). A national bank -- i.”

Whitney Nat'l Bank in Jefferson Par. v. Bank of New Orleans & Trust Co., 379 U.S. 411 (1965). · cites it 8× “" 12 U. S. C. § 27 . It is thus apparent that the two administrative proceedings involve different, though related, matters; different, though related, applicants; and different, though related, issues.”

Lacewell v. Off. of the Comptroller of the Currency, 999 F.3d 130 (2d Cir. 2021). “12 U.S.C. § 27 (a) (emphases added). Although the term the “business of banking” is not defined in the NBA, the Act does specify that once a bank receives a federal charter—and thereby becomes a national bank— it shall have power .”

Camp v. Pitts, 411 U.S. 138 (1973). “See 12 U. S. C. §27 ; 12 CFR §4.2 (1972). On the basis of information received from a national bank examiner and from various interested parties, the Comptroller denied the application and notified respondents of his decision through a brief letter, which stated in part: “ [W] e…”

Golden Pac. Bancorp & Miles P. Jennings, Jr. v. United States, 15 F.3d 1066 (Fed. Cir. 1994). “The Bank was chartered pursu *1069 ant to 12 U.S.C. § 27 (1988) 3 and subject to the regulatory authority of the Comptroller pursuant to 12 U.”

Conf. of State Bank Supervisors v. Off. of the Comptroller of the Currency, 313 F. Supp. 3d 285 (D.C. Cir. 2018). “See 12 U.S.C. § 27 ; 12 U.S.C. § 1841 (c)(2)(D), (F) (authorizing trust banks, banker's banks, and credit card banks); Compl.”

Sterling Nat'l Bank of Davie v. William B. Camp, Comptroller of the Currency, (2cases), 431 F.2d 514 (5th Cir. 1970). · cites it 2× “otherwise, it appears that such association is lawfully entitled to commence the business of banking, the comptroller shall give to such association a certificate, under his hand and official seal, that such association has complied with all the provisions required to be…”

First Nat'l Bank of Bellaire v. Comptroller of the Currency, 697 F.2d 674 (1st Cir. 1983). “§ 1818 (b)(1), against First National Bank of Bellaire, Bellaire, Texas (hereinafter the “BANK”), a national banking association chartered and examined by the Comptroller of the Currency of the United States of America (hereinafter the “COMPTROLLER”), pursuant to the National…”

In Re Franklin Nat'l Bank Sec. Litig., 478 F. Supp. 210 (E.D.N.Y 1979). “He certifies an institution’s entry into the banking business, 12 U.S.C. § 27 , and authorizes subsequent changes in its name or location, 12 U.”

Nw. Nat'l Bank, Fayetteville, Arkansas v. United States of Am. Dep't of the Treasury Off. of the Comptroller of the Currency, 917 F.2d 1111 (8th Cir. 1990). “Northwest is a national banking association and is both chartered and examined by the Comptroller, see 12 U.S.C. § 27 (1988); 12 U.S.C.A. § 481 (West 1989 & Supp.”

Olsen v. Camp, 328 F. Supp. 728 (E.D. Mich. 1970). · cites it 3× “Plaintiffs applied to defendant for a certificate authorizing plaintiffs to commence the banking business under 12 U. S.C. § 27. The defendant, refused to approve the application.”

Chase Manhattan Bank, N.A. v. Fidata Corp., 700 F. Supp. 1252 (S.D.N.Y. 1988). “” Counterclaim-defendant Chase is a national banking organization organized under the laws of the United States, 12 U.S.C. § 27 . The counterclaim centers upon the trading activities in government securities of ESM, a financial institution placed in bankruptcy after its…”

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