What powers does a national bank have to conduct the business of banking?
A national bank may exercise all powers incidental to the business of banking under 12 U.S.C. 24 (Seventh), including discounting and negotiating notes, receiving deposits, and lending money on personal security.
The answer
The grant of banking powers
12 U.S.C. § 24 grants a national banking association the power to exercise all such incidental powers as are necessary to carry on the business of banking, including discounting and negotiating promissory notes and other evidences of debt, receiving deposits, buying and selling exchange, coin, and bullion, and loaning money on personal security.
Scope of incidental powers
The incidental-powers clause is the statutory anchor for activities not separately enumerated. An activity is authorized when it is convenient or useful in connection with the performance of an established banking power.
The judged input
What the AI drafted
Submitted to the judgeThis is an excerpt from a draft bank regulatory opinion — the kind of work product a lawyer generates with a legal-AI drafting tool, then has to stand behind. Kingsfield does not write it; it rules on the citations the model put in it. This draft cites two authorities; one of them is wrong.
The judge ruled on every citation as the draft used it — it accepted 12 U.S.C. § 24 and rejected 12 U.S.C. § 1818. Here is why.
The verdict
How Kingsfield ruled
Ruled 2026-06-23Each citation in the draft above was submitted to the Kingsfield judge and ruled against the primary-law corpus — Accept, Reject, or Inconclusive, per citation. These are live verdicts, not editorial. Each card shows the claim the draft made and the verbatim authority the verdict was rendered against.
The draft claimed: A national banking association may exercise all such incidental powers as are necessary to carry on the business of banking, including discounting and negotiating notes, receiving deposits, buying and selling exchange and bullion, and loaning money on personal security.
“§ 24. Corporate powers of associations Upon duly making and filing articles of association and an organization certificate a national banking association shall become, as from the date of the execution of its organization certificate, a body corporate, and as such, and in the name designated in the organization certificate, it shall have ”
Cite found; proposition supported by the cited text.
The draft claimed: Section 1818 grants a national bank the incidental powers necessary to carry on the business of banking, including receiving deposits and discounting notes.
Cite found, but the cited text does not support the claim. 12 U.S.C. 1818 is the federal banking agencies' enforcement authority, providing for cease-and-desist orders, removal of officers, and civil money penalties; the grant of incidental banking powers is at 12 U.S.C. 24 (Seventh). Regenerate with the correct authority.
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Connect the Judge See the architectureThis page is legal information, not legal advice, and does not create an attorney-client relationship. The draft shown is an illustration of a typical AI answer; verdicts reflect the cited authority in the Kingsfield corpus as of the ruling date shown above.