12 U.S.C. § 481

Appointment of examiners; examination of member banks, State banks, and trust companies; reports

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The Comptroller of the Currency, with the approval of the Secretary of the Treasury, shall appoint examiners who shall examine every national bank as often as the Comptroller of the Currency shall deem necessary. The examiner making the examination of any national bank shall have power to make a thorough examination of all the affairs of the bank and in doing so he shall have power to administer oaths and to examine any of the officers and agents thereof under oath and shall make a full and detailed report of the condition of said bank to the Comptroller of the Currency: Provided, That in making the examination of any national bank the examiners shall include such an examination of the affairs of all its affiliates other than member banks as shall be necessary to disclose fully the relations between such bank and such affiliates and the effect of such relations upon the affairs of such bank; and in the event of the refusal to give any information required in the course of the examination of any such affiliate, or in the event of the refusal to permit such examination, all the rights, privileges, and franchises of the bank shall be subject to forfeiture in accordance with section 2 of the Federal Reserve Act, as amended (U.S.C., title 12, secs. 141, 222–225, 281–286, and 502).11 See References in Text note below. The Comptroller of the Currency shall have power, and he is authorized, to publish the report of his examination of any national banking association or affiliate which shall not within one hundred and twenty days after notification of the recommendations or suggestions of the Comptroller, based on said examination, have complied with the same to his satisfaction. Ninety days’ notice prior to such publicity shall be given to the bank or affiliate.

The examiner making the examination of any affiliate of a national bank shall have power to make a thorough examination of all the affairs of the affiliate, and in doing so he shall have power to administer oaths and to examine any of the officers, directors, employees, and agents thereof under oath and to make a report of his findings to the Comptroller of the Currency. If any affiliate of a national bank refuses to pay any assessments, fees, or other charges imposed by the Comptroller of the Currency pursuant to this subchapter or fails to make such payment not later than 60 days after the date on which they are imposed, the Comptroller of the Currency may impose such assessments, fees, or charges against the affiliated national bank, and such assessments, fees, or charges shall be paid by such national bank. If the affiliation is with 2 or more national banks, such assessments, fees, or charges may be imposed on, and collected from, any or all of such national banks in such proportions as the Comptroller of the Currency may prescribe. The examiners and assistant examiners making the examinations of national banking associations and affiliates thereof herein provided for and the chief examiners, reviewing examiners and other persons whose services may be required in connection with such examinations or the reports thereof, shall be employed by the Comptroller of the Currency with the approval of the Secretary of the Treasury; the employment and compensation of examiners, chief examiners, reviewing examiners, assistant examiners, and of the other employees of the office of the Comptroller of the Currency whose compensation is and shall be paid from assessments on banks or affiliates thereof or from other fees or charges imposed pursuant to this subchapter shall be set and adjusted subject to chapter 71 of title 5 and without regard to the provisions of other laws applicable to officers or employees of the United States. The funds derived from such assessments, fees, or charges may be deposited by the Comptroller of the Currency in accordance with the provisions of section 192 of this title and shall not be construed to be Government funds or appropriated monies; and the Comptroller of the Currency is authorized and empowered to prescribe regulations governing the computation and assessment of the expenses of examinations herein provided for and the collection of such assessments from the banks and/or affiliates examined or of other fees or charges imposed pursuant to this subchapter. Such funds shall not be subject to apportionment for the purpose of chapter 15 of title 31 or under any other authority. If any affiliate of a national bank shall refuse to permit an examiner to make an examination of the affiliate or shall refuse to give any information required in the course of any such examination, the national bank with which it is affiliated shall be subject to a penalty of not more than $5,000 for each day that any such refusal shall continue. Such penalty may be assessed by the Comptroller of the Currency and collected in the same manner as expenses of examinations. The Comptroller of the Currency, upon the request of the Board of Governors of the Federal Reserve System, is authorized to assign examiners appointed under this subchapter to examine foreign operations of State banks which are members of the Federal Reserve System.

Notes of Decisions

Cited in 59 cases, 1932–2020 · leading case: Cuomo v. Clearing House Ass'n, LLC, 557 U.S. 519 (2009).

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Cuomo v. Clearing House Ass'n, LLC, 557 U.S. 519 (2009). · cites it 2× “" 12 U.S.C. § 481 . Petitioner's argument is undermined, however, by other structural attributes of this subchapter.”

United States v. Philadelphia Nat'l Bank, 374 U.S. 321 (1963). · cites it 2× “12 U. S. C. §§ 481 , 1828 (f). As a result of the existence of this panoply of sanctions, recommendations by the agencies concerning banking practices tend to be followed by bankers without the necessity of formal compliance proceedings.”

Spevack v. Klein, 385 U.S. 511 (1967). · cites it 2× “, 12 U. S. C. § 481 ; 47 U. S. C. §§ 308 (b), 312 (a) (4): 5 U.”

In Re Franklin Nat'l Bank Sec. Litig., 478 F. Supp. 210 (E.D.N.Y 1979). · cites it 4× “12 U.S.C. § 481 . The courts have uniformly concluded that the Comptroller’s primary duty is to supervise the banking system for the protection of the public and the national economy as a whole — and not for the protection of an individual banking institution.”

James Madison Ltd., by Norman F. Hecht, Sr., Assignee v. Eugene A. Ludwig, Comptroller of the Currency, 82 F.3d 1085 (D.C. Cir. 1996). “See 12 U.S.C. § 481 (1994). Upon determining that a national bank is insolvent, the Comptroller may appoint either a conservator or a receiver of the institution.”

Consumers Union of United States, Inc. v. John G. Heimann, Individually & in His Off. Capacity as Comptroller of the Currency, 589 F.2d 531 (D.C. Cir. 1978). · cites it 2× “The powers and duties of bank examiners are set forth in 12 U.S.C. § 481 (1976) which states: The examiner making the examination of any national bank shall have power to make a thorough examination of all the affairs of the bank and in doing so he shall have power to administer…”

Marine Bank v. Weaver, 455 U.S. 551 (1982). “IV) (reporting requirements); 12 U. S. C. §§481 , 483, and 1820(b) (1976 ed.”

Deitrick v. Greaney, 309 U.S. 190 (1940). · cites it 2× “§ 5240, 12 U.S.C. §§ 481 , 484, the Comptroller of the Currency is required to appoint *195 examiners who shall examine the affairs of every bank at least twice in each calendar year with power to administer oaths and examine officers and agents of the bank under oath and who…”

Clearing House Ass'n, LLC v. Cuomo, 510 F.3d 105 (2d Cir. 2007). · cites it 2× “See 12 U.S.C. § 481 . Originally, these two provisions were set forth in the same section of the Act, which provided that national banks "shall not be subject to any other visitorial powers than such as are authorized by this act.”

In Re Franklin Nat. Bank Sec. Litig., 445 F. Supp. 723 (E.D.N.Y 1978). · cites it 2× “However, they rely principally on 12 U.S.C. § 481 which states in part as follows: "The Comptroller of the Currency, with the approval of the Secretary of the Treasury, shall appoint examiners who shall examine every national bank twice in each calendar year, but the…”

SPGGC, LLC v. Blumenthal, 505 F.3d 183 (2d Cir. 2007). “12 U.S.C. § 481 (granting the OCC authority to examine the affairs of a national bank and its affiliates, “as shall be necessary to disclose fully the relations between such bank and such affiliates and the effect of such relations upon the affairs of such bank”).”

United States v. Kuang Hsung J. Chuang, A/K/A \Joseph Chuang\"", 897 F.2d 646 (2d Cir. 1990). · cites it 2× “On June 17, 1985, after receiving information from an informant about certain activities at GPNB, the Office of the Comptroller of the Currency (“OCC”) began a warrantless examination, pursuant to 12 U.S.C. § 481 (1988), of bank records pertaining to the sale of a bank product…”

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