12 USC § 83 - Loans by bank on its own stock

---
identifier: "/us/usc/t12/s83"
source: "usc"
legal_status: "official_prima_facie"
title: "12 USC § 83 - Loans by bank on its own stock"
title_number: 12
title_name: "BANKS AND BANKING"
section_number: "83"
section_name: "Loans by bank on its own stock"
chapter_number: 2
chapter_name: "NATIONAL BANKS"
subchapter_number: "IV"
subchapter_name: "REGULATION OF THE BANKING BUSINESS; POWERS AND DUTIES OF NATIONAL BANKS"
positive_law: false
currency: "119-84"
last_updated: "2026-04-17"
format_version: "1.1.0"
generator: "[email protected]"
source_credit: "(R.S. § 5201; Pub. L. 106–569, title XII, § 1207(a), Dec. 27, 2000, 114 Stat. 3034.)"
---


# § 83. Loans by bank on its own stock

**(a)** **General prohibition** No national bank shall make any loan or discount on the security of the shares of its own capital stock.

**(b)** **Exclusion** For purposes of this section, a national bank shall not be deemed to be making a loan or discount on the security of the shares of its own capital stock if it acquires the stock to prevent loss upon a debt previously contracted for in good faith.

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**Source Credit**: (R.S. § 5201; Pub. L. 106–569, title XII, § 1207(a), Dec. 27, 2000, 114 Stat. 3034.)

## Editorial Notes

### Codification

R.S. § 5201 derived from , , which was the National Bank Act. See .

### Amendments

2000— amended section catchline and text generally. Prior to amendment, text read as follows: “No association shall make any loan or discount on the security of the shares of its own capital stock, nor be the purchaser or holder of any such shares, unless such security or purchase shall be necessary to prevent loss upon a debt previously contracted in good faith; and stock so purchased or acquired shall, within six months from the time of its purchase, be sold or disposed of at public or private sale; or, in default thereof, a receiver may be appointed to close up the business of the association, according to .”