Section 28. Reduction of capital of national banks

Official title Section 1. Short title and definitions Section 2. Federal Reserve Districts Section 2A. Monetary policy objectives Section 2B. Appearances Before and Reports to the Congress Section 3. Branch Offices Section 4. Federal Reserve Banks Section 5. Stock Issues; Increase and Decrease of Capital Section 6. Insolvency of member banks Section 7. Division of Earnings Section 8. Conversion of state banks into national banks Section 9. State Banks as Members Section 9A. Participation in lotteries prohibited Section 9B. Resolution of Clearing Banks Section 10. Board of Governors of the Federal Reserve System Section 10A. Emergency advances to groups of member banks*Section 10B. Advances to Individual Member Banks*Section 11. Powers of Board of Governors of the Federal Reserve System Section 11A. Pricing of Services Section 11B. Annual Independent Audits of Federal Reserve Banks and Board Section 11C. Master Account and Services Database Section 12. Federal Advisory Council Section 12A. Federal Open Market Committee Section 13. Powers of Federal Reserve Banks Section 13A.* Discount of agricultural paper Section 14. Open-Market Operations Section 15. Government Deposits Section 16. Note Issues Section 17. Deposit of bonds by national banks Section 18. Refunding Bonds Section 19. Bank Reserves Section 20. National bank notes redemption fund as reserve Section 21. Bank Examinations Section 22. Offenses of examiners, member banks, officers, and directors Section 23. Interbank Liabilities*Section 23A. Relations with affiliates Section 23B. Restrictions on Transactions with Affiliates Section 24. Real Estate Loans Section 24A. Investment in Bank Premises or Stock of Corporation Holding Premises Section 25. Foreign Branches Section 25A. Banking Corporations Authorized to Do Foreign Banking Business*Section 25B. Jurisdiction of suits*Section 25C. Potential Liability on Foreign Accounts Section 26. [Repealed]Section 27. Tax on national bank notes Section 28. Reduction of capital of national banks Section 29. Civil Money Penalty Section 30. Saving clause Section 31. Reservation of right to amend

Section 28. Reduction of capital of national banks

(a) In General. Subject to the approval of the Comptroller of the Currency, a national banking association may, by a vote of shareholders owning, in the aggregate, two-thirds of its capital stock, reduce its capital.

(b) Shareholder Distributions Authorized. As part of its capital reduction plan approved in accordance with subsection (a), and with the affirmative vote of shareholders owning at least two thirds of the shares of each class of its stock outstanding (each voting as a class), a national banking association may distribute cash or other assets to its shareholders.

[12 USC 59. Section 5143, Revised Statutes, as amended and reenacted by this section, was further amended by acts of Aug. 23, 1935 (49 Stat. 720) and Oct. 13, 2006 (120 Stat. 1970).]

Federal Reserve Act

Section 28. Reduction of capital of national banks