---
kind: "section"
citation: "12 U.S.C. § 338"
title: "12"
title_heading: "Banks and Banking"
number: "338"
heading: "Examination of affiliates; forfeiture of membership on refusal of affiliate to give information or pay expense"
release: "119-102"
url: "https://uscodex.org/usc/12/338"
units:
  - "Chapter 3 — Federal Reserve System"
  - "Subchapter VIII — State Banks as Members of System"
---

# §338. Examination of affiliates; forfeiture of membership on refusal of affiliate to give information or pay expense


In connection with examinations of [State member banks](/usc/12/5301.md?p=18-A), examiners selected or approved by the [Board](/usc/12/221.md) of Governors of the Federal Reserve System shall make such examinations of the affairs of all [affiliates](/usc/12/221a.md?p=b) of such [banks](/usc/12/221a.md?p=a) as shall be necessary to disclose fully the relations between such [banks](/usc/12/221a.md?p=a) and their [affiliates](/usc/12/221a.md?p=b) and the effect of such relations upon the affairs of such [banks](/usc/12/221a.md?p=a). The expense of examination of [affiliates](/usc/12/221a.md?p=b) of any [State member bank](/usc/12/5301.md?p=18-A) may, in the discretion of the [Board](/usc/12/221.md) of Governors of the Federal Reserve System, be assessed against such [bank](/usc/12/1426a.md?p=g-1) and, when so assessed, shall be paid by such [bank](/usc/12/1426a.md?p=g-1). In the event of the refusal to give any information requested in the course of the examination of any such [affiliate](/usc/12/221a.md?p=b), or in the event of the refusal to permit such examination, or in the event of the refusal to pay any expenses so assessed, the [Board](/usc/12/221.md) of Governors of the Federal Reserve System may, in its discretion, require any or all [State member banks](/usc/12/5301.md?p=18-A) affiliated with such [affiliate](/usc/12/221a.md?p=b) to surrender their stock in the Federal [Reserve bank](/usc/12/221.md) and to forfeit all rights and privileges of membership in the Federal Reserve System, as provided in this subchapter.


## Source credit

(Dec. 23, 1913, ch. 6, § 9 (par.), as added June 16, 1933, ch. 89, § 5(c), 48 Stat. 166; amended Aug. 23, 1935, ch. 614, title II, § 203(a), 49 Stat. 704.)

## Notes

### Editorial Notes

### References in Text

This subchapter, referred to in text, was in the original “this section”, meaning section 9 of act Dec. 23, 1913, which is classified generally to this subchapter (§ 321 et seq.).

### Codification

Section is comprised of the twenty-second par. of section 9 of act Dec. 23, 1913, as amended. The twenty-second par. constituted the twenty-first par. of section 9 in 1933 (48 Stat. 166), became the twenty-second par. in 1935 (49 Stat. 704), and became the twenty-third par. in 1950 (64 Stat. 458), and became the twenty-second par. in 1966 (80 Stat. 243). For further details, see Codification notes set out under sections 321 and 329a of this title.

### Statutory Notes and Related Subsidiaries

### Change of Name

Section 203(a) of act Aug. 23, 1935, changed name of Federal Reserve Board to Board of Governors of the Federal Reserve System.