12 U.S.C. § 374a : US Code - Section 374A: Acting as agent for nonbanking borrower in making loans on securities to dealers in stocks, bonds, etc.; penalties

Search 12 U.S.C. § 374a : US Code - Section 374A: Acting as agent for nonbanking borrower in making loans on securities to dealers in stocks, bonds, etc.; penalties

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.