12 U.S.C. § 374A
Section 374a · Acting as agent for nonbanking borrower in making loans on securities to dealers in stocks, bonds, etc.; penalties
This is § 19 of the Federal Reserve Act of 1913
Amended 3 times on record
Applied in 1 court decisions — leading case Atlas Roofing Co. v. Occupational Safety & Health Review Commission (1975)
Most recently applied in Atlas Roofing Co. v. Occupational Safety & Health Review Commission (September 1975)
No member bank shall act as the medium or agent of any nonbanking corporation, partnership, association, business trust, or individual in making loans on the security of stocks, bonds, and other investment securities to brokers or dealers in stocks, bonds, and other investment securities. Every violation of this provision by any member bank shall be punishable by a fine of not more than $100 per day during the continuance of such violation; and such fine may be collected, by suit or otherwise, by the Federal reserve bank of the district in which such member bank is located.
Editorial notes U.S. Code · Office of the Law Revision Counsel
Codification
Section is comprised of subsec. (d), formerly seventh par., of section 19 of act Dec. 23, 1913, as redesignated by Pub. L. 89–597.