Federal · Title 12 — Banks and Banking

12 U.S.C. § 331: Certifying checks on State banks admitted as members

Misdemeanor

What this law says, in plain English

Bank officers, clerks, or agents cannot certify checks unless the drawer has sufficient funds on deposit. Violating this rule may result in the bank losing its Federal Reserve membership after a hearing.

Read the full statutory text

It shall be unlawful for any officer, clerk, or agent of any bank admitted to membership under authority of this subchapter, to certify any check drawn upon such bank unless the person or company drawing the check has on deposit therewith at the time such check is certified an amount of money equal to the amount specified in such check. Any check so certified by duly authorized officers shall be a good and valid obligation against such bank, but the act of any such officer, clerk, or agent in violation of this subchapter, may subject such bank to a forfeiture of its membership in the Federal reserve system upon hearing by the Board of Governors of the Federal Reserve System.

Verify at the official source: Federal legislative text

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This page is legal information, not legal advice. Code text is sourced from official publications and may lag amendments — always confirm at the official source linked above. Plain-English summaries and relationship data are AI-derived and reviewed on an ongoing basis; verify with a licensed attorney before acting.