Page:United States Statutes at Large Volume 44 Part 1.djvu/292

 § 287 TITLE 1:3.-——BANK 287. Value of shares of stock; increase and decrease cf. stock; member banks as shareholders; surrender of shares.——» The capital stock of each Federal reserve bank shall be divided into slmres of $100 each. The outstanding capital stock shall be increased fmmlime to time s member banks increase Jtheir capital stuck and surplus or as additional banks become members,) and may be decreased as member b&Q(S reduce their capital stuck or surplus or cease te be members., Shares of the capital stock of Federal reserve banks owned by member banks; shall not be transferred or hypetllecated. When a member bank increases its capital stock or surplus, it Sh&u‘\Th€l'€\1[lOD subscribe for an additional amount "ef- capital ·st0ck df the Federal rescrve bank of its district equal to 6 pee ceutam 61 the said increase, 0ue—11alf df‘said.snbscripii0n to be paid in the manner hereinbefere previdedffer original subscription, and eueelmlf subject to, call of the lsiederal. Reserve Board. A bank applying for stock 'in a’Federal_ reserve bank at any time after the erganizatien thereof must subscribe fdr anameuut of, the capital steel; of the Fe<leral·reserve ‘bank·equal to 6 per centum` of the paid-up t?i}_)iU.1l¢St0Ck and surplus qi sai_d-·appli_cai1t bank, paying therefor its par value plus one-half of 1'per centum, a m·;mth from the period of the last dividend.! 1Vh€lE1 the capital stock of any Federal I°G$él€\’é_,b8.I1k shall have been increased either unaecount of the increase of capital stock of membexj banks Or on account df the- increase in the `rlumbef of member d banks, the beard of wliicctors shall cause to be executed a C€1‘·* tiiicate to the Comptroller of the Currency showing the increase in capital stack, the aulountpaid iu, and by wh0xn paid; _ When · H-II1€I1lbl".l}3lI1k ‘;·e_duces —i_ts capital stuck it shall sul·i·ender·a _ proportionate amount of its holdings in the capital of said Federal xjewrve bank, and when a_ member bank voluntarily liqui- l l dates it eha11~sur1*ender_all·0f its holdings of the capital stock of said Federal reserve bank and be released_f1·0m‘Titsd ewckl subscription not previouelybcalled. In either ease the shares l surrendered shall be canceled and the member b&11k'_S}l8I[ ze-¤ eeivei in payment therefor, `under 1'€g`UtH¤UH§`t6x;@MiiYI`(3'SZElfiVb€Y.ldd by the Federal Reaervel Bdaqd, a` sum_.equma1 t0` its_ cashtpaid subscriptions on the. shares surrendered andbae-half of 1 "pe1·— eentum a. menth’Iron1 the 'periqd of the last dividend, pet to exceed. the book value thereof, lcseany liability of such member E hanktu the Federal reserve bank. { (Dec. 23,1913, c. 6,*5 5, 38i §t.at..257.).` · -_ M l  ~ " _ j. I ·  `288. Cancellation of stock held by member bank on lnsol-_. vency§ certificate of reduction l of capital of reserve bank.- If ang; member bank shall be declared insolvent unda receiver! ap;>uintl·4l· tlwrefelr, the etoek held by it in said' Federal, reserve ·bnnk shall be <·,ailcel<::1, with0ut‘impuirm0nt of its liability, mul all eashipaid subscriptions hon said stock, with cme·baif* of 1 wr C€llU}ll}·D0lT month ‘f1‘0m the period of last dlviden? not mtu exceed the book value thereof, shall, be that agplied O all k debts of the.inaols*ent member bank tc»` the I+"e¢le`ral,_ reserve bank, and the balance, it any, shall be paid to the receiver qt the insolvent bank. Whenever the éapital sleek of a` Federal. wsedrsje b21llk.iS ·re`dnced, elther on account or a x·educ·tion_`jn ' capital Bstock of any member bank or_.0f·the liquidation- or-iu— eulvency of auch bank, the board ot ‘directors shall cause to be ‘· executed a certidcate to the Gomptrolleg of the Cu1·;·en_cy_sh0{v-C ling such reduction of capital ateckaml.-the adwuat repaid to ' such bank. ’(Deé. 2., 1913, c. Q, { 6, 38 Stat. 258.) -- -. . 289. Dividends en steel: of reserve banks; frzmehise taxlea nehearniagsg mfplag fund.——··A£ter all nepwry expenses of a lmderal reserve bank have been paid er i>r0vlded_1fer, the stocklnllldera shall be entitled te recelvean ahnual~`dlvidend‘ of ·6 per ceixtum on-the paid-lncapltal stock, which dividend shall be·ct1mulatlvje._ After the aforéaaid dividend  have tally met, the l1€fZ'€§1‘lliI1gS·8h8Q'bQ paid tonthe Uniwd States as a fiianehiae tax except that the vihele 01 gsheh net earnings, includlngathese for the year ending Dazember 31,* 1918, shall

`S AND BANKINQ Eye; be paid into a surplus fund until it shall mnount to 1(li) ps p centnm of the subscribed capital steek of such bank, and that thereafter 10 per centum of snob. net earnings shall be pam into the surplus. (Dec. 23, 1913, c. 6, { 7, 38»Stat. 258; Mer. 3, 1919, c. 101, § 1, 40 Stat. 13134.) _ `290. Dlsposition of net earnings paid as, franchise tax; disposition of surplus fund on dissolution or insolvency of reserve .bah_k.~4The net earnings glerived by the United States from deral reserve banks shall, in the discretion of the Serve- used to supplement the gold rssférve held against rm;. st ing United States notes, or shall be applied to the r.`- duction of the outstandin°g:bon&etl indebtedness of the ljn~;,;...; States under regulations -to_be prescribed by the Secretary {E the Treasury. Shoulda Federal reseryje bank be -dissolve¢l or 'gointo liquidation, any surplus remaining, after the ’paynr·nt of all debts, fdividend requirements as hereinbefore previtlml, and the par- value of the stock, shall be paid to and/lweelfme the {property 'of the United States and shall be similarly applied. (Deo. 23, .1913, c. 6, 5 7, 38__` Stat. 258.) ' DIRECTORS OF FEDERAL RESERVE BANKS.; RESl·ZR~\’H _ _ . ‘ AGENTS AND ASSISTANTS _ ., . 301. Powers and duties of board of directors.-——Everr I·`t··l» eral reserye bank shall be conducbed under, the supervision and controlof :1 board ot directors; » ·. · " The board of directors shall perform the duties usually an -p_ertai11ing to, the office of directors of banking associations and all such dnties as are prescribed by law. `" ‘ r _ YSaid board shall administer the atfalrs of said bank fairly and impartlallyr and without dlscrimlnationjp favor of or. against any member ’bank`or banks and-shglb subject to the provisions of law. and thebrders of the Federal Reserre\Boar¤l, l extend to earch member bank such discounts, advaneemenls and accommodations as maybe safely and reasonably made with dueregard. for Ql;_£}”_Q8.iIl'lS and demands ot other member banls.
 * (D'6bT2`§,”H’>1§,le."o, 5 4, as sm;. 254.) r e » r  ·- ‘

‘ *302. Number of members} classes.··-—S`uoh board ot diregters shall be seleetodtas herelnafterlspeefiled and shall consist of Hlne members, holding otiice for three years; and divided lnto ,three classes, designated as classes A; B, and C.Y I · - · (Ilass".A shall consist of three members, who shall be chosen by and be representative of the stocleholdlng banks. Y, _ Class B shall: consist of three niernbers, Who, at the time of _ their election shall be actively engaged in their district in commerce, agriculture or someother`lnd·ugtrlal~pursnl:. _` _ { ,. Class C shall consisf of three members who shall be desire y { noted by the Federal Reserve Board. When. thenecwsary salmr scrlptions to the capitallstock h‘a`y_e been obtained for the or-_ Lganlzation of any Federal reserve bank, thefedersl Reserve , Board shall appoint the class G directors and shall deslguinto one rot sticlrgdlrectors as chairman of the board to be selected. Pending the designation of such chairman, the organlsation ‘co1nmlttee‘shal1 exercise the powers and glntlos appertaiuiul; to the ottlcejot chalrrnan in the organization of suc;h.Fedeml reserve bank. · (_Dee.f23, 1913, e. 6, 5 4, 38 Stag. 254.) - ~· ‘ 303. Qnalihéations and disabilitiese--No Senator or Representutlye ln Congress shall bea mexnber of the Federal Reserve nears or an ofllcerhor adirector of a»Federal reserve bank, __ ;_ · -No.dlrector· of class B shall be as oillcerydirector, or employee ot any bankf .  `~ · -` . — -  No director ofjclass C shall be an oiileer, direetor, employee. or stoekholderot any bank. (Dec; 23,"1913, e.°6, { 4, 38 _Stat. 30&Class A and class .B directors; selection.-I)lrectors ·o£ class and class. Bfshall be chosen in the following mannerf The Federal Reserve. Board shall classify the member banlcs of the district into three general groups or divisions, duignatj ing each kroup b3%qynber. Each kronp shall consist as nearly ,