12 U.S.C. § 375 : US Code - Section 375: Purchases from directors; sales to directors

Search 12 U.S.C. § 375 : US Code - Section 375: Purchases from directors; sales to directors

Any member bank may contract for, or purchase from, any of its
directors or from any firm of which any of its directors is a
member, any securities or other property, when (and not otherwise)
such purchase is made in the regular course of business upon terms
not less favorable to the bank than those offered to others, or
when such purchase is authorized by a majority of the board of
directors not interested in the sale of such securities or
property, such authority to be evidenced by the affirmative vote or
written assent of such directors: Provided, however, That when any
director, or firm of which any director is a member, acting for or
on behalf of others, sells securities or other property to a member
bank, the Board of Governors of the Federal Reserve System by
regulation may, in any or all cases, require a full disclosure to
be made, on forms to be prescribed by it, of all commissions or
other considerations received, and whenever such director or firm,
acting in his or its own behalf, sells securities or other property
to the bank the Board of Governors of the Federal Reserve System,
by regulation, may require a full disclosure of all profit realized
from such sale.
Any member bank may sell securities or other property to any of
its directors, or to a firm of which any of its directors is a
member, in the regular course of business on terms not more
favorable to such director or firm than those offered to others, or
when such sale is authorized by a majority of the board of
directors of a member bank to be evidenced by their affirmative
vote or written assent: Provided, however, That nothing in this
section contained shall be construed as authorizing member banks to
purchase or sell securities or other property which such banks are
not otherwise authorized by law to purchase or sell.