Any national banking association possessing a capital and surplus of $1,000,000 or more may file application with the Board of Governors of the Federal Reserve System for permission to exercise, upon such conditions and under such regulations as may be prescribed by the said board, the following powers:
First. To establish branches in foreign countries or dependencies or insular possessions of the United States for the furtherance of the foreign commerce of the United States, and to act if required to do so as fiscal agents of the United States.
Second. To invest an amount not exceeding in the aggregate 10 per centum of its paid-in capital stock and surplus in the stock of one or more banks or corporations chartered or incorporated under the laws of the United States or of any State thereof, and principally engaged in international or foreign banking, or banking in a dependency or insular possession of the United States either directly or through the agency, ownership, or control of local institutions in foreign countries, or in such dependencies or insular possessions.
Third. To acquire and hold, directly or indirectly, stock or other evidences of ownership in one or more banks organized under the law of a foreign country or a dependency or insular possession of the United States and not engaged, directly or indirectly, in any activity in the United States except as, in the judgment of the Board of Governors of the Federal Reserve System, shall be incidental to the international or foreign business of such foreign bank; and, notwithstanding the provisions of section 371c of this title, to make loans or extensions of credit to or for the account of such bank in the manner and within the limits prescribed by the Board by general or specific regulation or ruling.
Until January 1, 1921, any national banking association, without regard to the amount of its capital and surplus, may file application with the Board of Governors of the Federal Reserve System for permission, upon such conditions and under such regulations as may be prescribed by said board, to invest an amount not exceeding in the aggregate 5 per centum of its paid-in capital and surplus in the stock of one or more corporations chartered or incorporated under the laws of the United States or of any State thereof and, regardless of its location, principally engaged in such phases of international or foreign financial operations as may be necessary to facilitate the export of goods, wares, or merchandise from the United States or any of its dependencies or insular possessions to any foreign country: Provided, however, That in no event shall the total investments authorized by this subchapter by any one national bank exceed 10 per centum of its capital and surplus.
Such application shall specify the name and capital of the banking association filing it, the powers applied for, and the place or places where the banking or financial operations proposed are to be carried on. The Board of Governors of the Federal Reserve System shall have power to approve or to reject such application in whole or in part if for any reason the granting of such application is deemed inexpedient, and shall also have power from time to time to increase or decrease the number of places where such banking operations may be carried on.
Notes of Decisions
Am. Int'l Grp., Inc. v. Bank of Am. Corp., 712 F.3d 775 (2d Cir. 2013).
· cites it 2× “” language to describe the powers of two kinds of banking corporations — national banking associations and Edge Act corporations. 5 In both § 601 and § 611 the relevant sentence is written more clearly than in § 632, such that the relevant “banking transactions” must…”
Rose Hall, Ltd. v. Chase Manhattan Overseas Banking Corp., 576 F. Supp. 107 (D. Del. 1983).
· cites it 2× “752 , 755-56 (1916), 12 U.S.C. § 601 . These corporations could be formed only under state law and approval of the Federal Reserve Board of Governors was required for national banks to acquire stock in these state-chartered corporations.”
Bank of Am. Corp. v. Lemgruber, 385 F. Supp. 2d 200 (S.D.N.Y. 2005).
“Edge Act Jurisdiction The Edge Act, 12 U.S.C. §§ 601 et seq., provides federal district courts with an independent basis for exercising subject matter jurisdiction over certain purely state or common law actions involving international banking by designating such actions as…”
The First Nat'l Bank of Boston (Int'l) v. Banco Nacional De Cuba, 658 F.2d 895 (1st Cir. 1981).
· cites it 2× “(1976) as unincorporated foreign branches of Boston and operated under Boston’s name; the name on the Cuban offices was simply the Spanish equivalent of “First National Bank of Boston, organized [or founded] in 1789.” The Branches were capitalized by Boston’s investment of…”
Akinsade v. Holder, 678 F.3d 138 (2d Cir. 2012).
“operating under section 25 or section 25(a) of the Federal Reserve Act [ 12 U.S.C. §§ 601 et seq., 611 et seq.] ..”
United States v. BCCI Holdings (Luxembourg), S.A., 833 F. Supp. 32 (D.D.C. 1993).
“Although BCCI Overseas was not chartered by this country, it is worth noting that United States chartered banks and their branches have been declared to be single entities under the Federal Foreign Banking Law, codified at 12 U.S.C. §§ 601 et seq. See, e.g., First Nat'l Bank of…”
Am Trust v. Ubs Ag, 78 F. Supp. 3d 977 (N.D. Cal. 2015).
“See 12 U.S.C. § 601 et seq. Thus, it addresses the issue of U.”
Cappaert Enter. v. Citizens & S. Int'l Bank, 486 F. Supp. 819 (E.D. La. 1980).
“C & S Bank, a corporation organized and existing under the Edge Act, 12 U.S.C. §§ 601 , et seq., is engaged in the business of international banking.”
Rose Hall Ltd. v. Chase Manhattan Overseas Banking Corp., 566 F. Supp. 1558 (D. Del. 1983).
“The Federal Reserve Act, 12 U.S.C. § 601 et seq. (“Edge Act”), allows banks to carry on foreign or international banking through the agency, ownership, or control of branches or local institutions.”
Ritholz v. March, 105 F.2d 937 (D.C. Cir. 1939).
“25 of the Federal Reserve Act of December 23, 1913, 12 U.S. C.A. § 601. In 1931 the Philippine Government levied a tax on branch banks not permitted by R.”
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