Should any national banking association in the United States now organized fail within one year after December 23, 1913, to become a member bank or fail to comply with any of the provisions of this chapter applicable thereto, all of the rights, privileges, and franchises of such association granted to it under the national-bank Act [12 U.S.C. 21 et seq.], or under the provisions of this chapter, shall be thereby forfeited. Any noncompliance with or violation of this chapter shall, however, be determined and adjudged by any court of the United States of competent jurisdiction in a suit brought for that purpose in the district or territory in which such bank is located, under direction of the Board of Governors of the Federal Reserve System, by the Comptroller of the Currency in his own name before the association shall be declared dissolved. In cases of such noncompliance or violation, other than the failure to become a member bank under the provisions of this chapter, every director who participated in or assented to the same shall be held liable in his personal or individual capacity for all damages which said bank, its shareholders, or any other person shall have sustained in consequence of such violation.
Such dissolution shall not take away or impair any remedy against such corporation, its stockholders, or officers, for any liability or penalty which shall have been previously incurred.
Notes of Decisions
Sylvester Marx v. Centran Corp., 747 F.2d 1536 (6th Cir. 1984).
· cites it 3× “That section provides, in part: Should any national banking association within the United States now organized fail within one year after December 23, 1913, to become a member bank [of the Federal Reserve System] or fail to comply with any of the provisions of this chapter…”
Michelsen v. Penney, 135 F.2d 409 (2d Cir. 1943).
· cites it 4× “Section 464 is a provision of the Federal Reserve Act; and by 12 U. S.C.A. § 501a, directors participating in or assenting to violations of this Act are held personally liable for all damages which the bank, its shareholders, "or any other person" shall have sustained in…”
Fed. Deposit Ins. Corp. v. Dannen, 747 F. Supp. 1357 (W.D. Mo. 1990).
· cites it 7× “Plaintiff counters that a national bank or its receiver is accorded a right to bring a cause of action for a § 371c violation pursuant to 12 U.S.C. § 501a. 2 In Marx v. Centran Corp.”
Branch v. Fed. Deposit Ins., 825 F. Supp. 384 (D. Mass. 1993).
“Moreover, section 501a, while not providing the express remedy that Branch desires, does provide to a bank and its shareholders an express cause of action against directors who participate in violations of section 371c or other banking provisions.”
Com. State Bank of Roseville v. Gidney, 174 F. Supp. 770 (D.D.C. 1959).
“Present statutory provisions governing national banks are found in 12 U.S.C.A. §§ 21-213 ; Federal Reserve regulations also apply since national banks must be members of the Federal Reserve System.”
Cossack v. Swope, 114 F.2d 998 (9th Cir. 1940).
“” (Citing, 12 U.S.C.A. § 501a.) The appellant’s contention is that all banks organized and operating under the laws of the United States are required by statute to become members of the Federal Reserve System, consequently, that there is only one kind of bank organized and…”
Michelsen v. Penney, 41 F. Supp. 603 (S.D.N.Y. 1941).
“This is particularly apparent in the Rand transactions whereby thousands of dollars were figuratively thrown into the waters of Biscayne Bay.”
Annotations are extracted automatically from the opinions in the
Syfert caselaw corpus and ranked by authority, recency, and
treatment. Dots show Syfertize treatment of the citing case itself.