Banks Loaning Assets... Cites?

Originally Posted by Jerseee

Networth2,

Did you know that banks cannot loan their assets?



Did you know that banks cannot create money?

Can someone please point me to the cites for this? Expecially the first one.



Thanks



HB

[Jerseee]

HB,



Check the codes for banking rules. I think it is USC 24.



I hope this helps:



In Howard & Foster Co. v Citizens National Bank of Union, 133 S.C. 202; 130 SE 758, (1927) it was said:



"It has been settled beyond controversy that a national bank, under federal law, being limited in its power and capacity, cannot lend its credit by guaranteeing the debt of another. All such contracts being entered into by its officers are ultra vires and not binding upon the parties nor the corporation. See also Merchants Bank of Valdosta v Baird, 160 F 642; 17 Lns 526 (1876).



Remember there is no lawful money.

You da Man.



Thanks



HB