National Nonmember Banks Law and Legal Definition

In the U.S., a national bank functions as a member bank of the Federal Reserve in the capacity of an investing member of its district Federal Reserve Bank.

National nonmember banks include:

a bank located in any territory of the U.S., Puerto Rico, Guam, American Samoa, the Virgin Islands, or the Northern Mariana Islands; and

a bank which is not a member of the Federal Reserve System.

A state nonmember bank is a state bank which is not a member of the Federal Reserve System.[12 USCS § 1813]