12 USC 1832 – Withdrawals by negotiable or transferable instruments for transfers to third parties
(a) Authority of depository institution; applicability
(1) Notwithstanding any other provision of law but subject to paragraph (2), a depository institution is authorized to permit the owner of a deposit or account on which interest or dividends are paid to make withdrawals by negotiable or transferable instruments for the purpose of making transfers to third parties.
Terms Used In 12 USC 1832
- association: when used in reference to a corporation, shall be deemed to embrace the words "successors and assigns of such company or association" in like manner as if these last-named words, or words of similar import, were expressed. See 1 USC 5
- county: includes a parish, or any other equivalent subdivision of a State or Territory of the United States. See 1 USC 2
- deposit: means &mdash. See 12 USC 1813
- depository institution: means any bank or savings association. See 12 USC 1813
- insured bank: means any bank (including a foreign bank having an insured branch) the deposits of which are insured in accordance with the provisions of this chapter. See 12 USC 1813
- mutual savings bank: means a bank without capital stock transacting a savings bank business, the net earnings of which inure wholly to the benefit of its depositors after payment of obligations for any advances by its organizers. See 12 USC 1813
- officer: includes any person authorized by law to perform the duties of the office. See 1 USC 1
- savings bank: means a bank (including a mutual savings bank) which transacts its ordinary banking business strictly as a savings bank under State laws imposing special requirements on such banks governing the manner of investing their funds and of conducting their business. See 12 USC 1813
- State: means any State of the United States, the District of Columbia, any territory of the United States, Puerto Rico, Guam, American Samoa, the Trust Territory of the Pacific Islands, the Virgin Islands, and the Northern Mariana Islands. See 12 USC 1813
- State bank: means any bank, banking association, trust company, savings bank, industrial bank (or similar depository institution which the Board of Directors finds to be operating substantially in the same manner as an industrial bank), or other banking institution which&mdash. See 12 USC 1813
- violation: includes any action (alone or with another or others) for or toward causing, bringing about, participating in, counseling, or aiding or abetting a violation. See 12 USC 1813
(2) Paragraph (1) shall apply only with respect to deposits or accounts which consist solely of funds in which the entire beneficial interest is held by one or more individuals or by an organization which is operated primarily for religious, philanthropic, charitable, educational, political, or other similar purposes and which is not operated for profit, and with respect to deposits of public funds by an officer, employee, or agent of the United States, any State, county, municipality, or political subdivision thereof, the District of Columbia, the Commonwealth of Puerto Rico, American Samoa, Guam, any territory or possession of the United States, or any political subdivision thereof.
(b) “Depository institution” defined
For purposes of this section, the term “depository institution” means—
(1) any insured bank as defined in section 1813 of this title;
(2) any State bank as defined in section 1813 of this title;
(3) any mutual savings bank as defined in section 1813 of this title;
(4) any savings bank as defined in section 1813 of this title;
(5) any insured institution as defined in section 1724 1 of this title; and
(6) any building and loan association or savings and loan association organized and operated according to the laws of the State in which it is chartered or organized; and, for purposes of this paragraph, the term “State” means any State of the United States, the District of Columbia, any territory of the United States, Puerto Rico, Guam, American Samoa, or the Virgin Islands.
(c) Fine
Any depository institution which violates this section shall be fined $1,000 for each violation.