§ 1832. — Withdrawals by negotiable or transferable instruments for transfers to third parties.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC1832]
TITLE 12--BANKS AND BANKING
CHAPTER 16--FEDERAL DEPOSIT INSURANCE CORPORATION
Sec. 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.
(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
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\1\ See References in Text note below.
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(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.
(Pub. L. 93-100, Sec. 2, Aug. 16, 1973, 87 Stat. 342; Pub. L. 94-222,
Sec. 2, Feb. 27, 1976, 90 Stat. 197; Pub. L. 95-630, title XIII,
Sec. 1301, Nov. 10, 1978, 92 Stat. 3712; Pub. L. 96-161, title I,
Sec. 106, Dec. 28, 1979, 93 Stat. 1235; Pub. L. 96-221, title III,
Sec. 303, Mar. 31, 1980, 94 Stat. 146; Pub. L. 97-320, title VII,
Sec. 706(a), Oct. 15, 1982, 96 Stat. 1540; Pub. L. 100-86, title I,
Sec. 109, Aug. 10, 1987, 101 Stat. 579.)
References in Text
Section 1724 of this title, referred to in subsec. (b)(5), was
repealed by Pub. L. 101-73, title IV, Sec. 407, Aug. 9, 1989, 103 Stat.
363.
Codification
Section was not enacted as part of the Federal Deposit Insurance Act
which comprises this chapter.
Amendments
1987--Subsec. (a)(2). Pub. L. 100-86 inserted ``political,'' after
``educational,''.
1982--Subsec. (a)(2). Pub. L. 97-320 inserted provisions relating to
deposits of public funds.
1980--Subsec. (a). Pub. L. 96-221 designated existing provisions as
par. (1) inserted provisions expanding authorization for withdrawals
from selected States to the entire United States, and added par. (2).
1979--Subsec. (a). Pub. L. 96-161 inserted ``New Jersey,'' after
``New York,''.
1978--Subsec. (a). Pub. L. 95-630 inserted ``New York,'' after
``Vermont,''.
1976--Subsec. (a). Pub. L. 94-222 authorized withdrawals by
negotiable or transferable instruments in the States of Connecticut,
Rhode Island, Maine, and Vermont.
Effective Date of 1980 Amendment
Amendment by Pub. L. 96-221 effective Dec. 31, 1980, see section 306
of Pub. L. 96-221, set out as a note under section 371a of this title.
Effective Date of 1978 Amendment
Section 1302 of title XIII of Pub. L. 95-630 provided that: ``This
title [amending this section] shall take effect upon enactment [Nov. 10,
1978].''
Effective Date
Section effective on thirtieth day after Aug. 16, 1973, see section
8 of Pub. L. 93-100, set out as a note under section 1469 of this title.
