Agreement Corporation Act

Agreement Corporation Act

Legislation in the United States, passed in 1916, that allows banks and some other corporations to engage in international banking. Under the Agreement Corporation Act, national banks may give some of their excess capital to state-chartered banks and other corporations, which then use them for international banking purposes. These state-chartered banks and other corporations are called agreement corporations because they agree to abide by the restrictions of the Act, though many of those restrictions have since been relaxed. See also: Edge Act.
Mentioned in ?