Page:United States Statutes at Large Volume 48 Part 1.djvu/189

 73d CONGRESS. SESS. I. CH. 89 . JUNE 16, 1933 . 163 (3) Of which a majority of its directors, trustees, or other persons Mafbritydirectors of, are directors of member exercising similar functions are directors of any one member bank. bank. (c) The term " holding company affiliate " shall include any cor» "Ho ld ing c omp any affiliate," organizations poration, business trust, association, or other similar organization- inclu ded withi n te rm. (1) Which owns or controls, directly or indirectly, either a shares of maajorit o majority of the shares of capital stock of a member bank or more of member bank owned, than 50 per centum of the number of shares voted for the election etc ' of directors of any one bank at the preceding election, or controls in any manner the election of a majority of the directors of any one bank ; or (2) For the benefit of whose shareholders or members all or of member When pi bank field substantially all the capital stock of a member bank is held by in trust. trustees. SEC. 3 . (a) The fourth paragraph after paragraph "Eighth" of Vol . 38, P.~. section 4 of the Federal Reserve Act, as amended (U. S .C ., title 12, sec . 301), is amended to read as follows " Said board of directors shall administer the affairs of said bank Board of direc tais- fairly and impartially and without discrimination in favor of or counts, advancements, against any member bank or banks and may, subject to the provi- etc ., to member bank s . sions of law and the orders of the Federal Reserve Board, extend to each member bank such discounts, advancements, and accommoda- tions as may be safely and reasonably made with due regard for the claims and demands of other member banks, the maintenance of sound credit conditions, and the accommodation of commerce, indus- try, and agriculture . The Federal Reserve Board may prescribe Fed era l Res er ve regulations further defining within the limitations of this Act the a°ton to prescribe °°n- cond ition s und er wh ich disco unts, adv ancem ents, and the accom mo- dati ons may be exte nded to mem ber bank s . Each Federal reserve informed Reserve bank to keep bank shall keep itself informed of the general character and amount tans. °` of the loans and investments of its member banks with a view to ascertaining whether undue use is being made of bank credit for Purpo se. the speculative carrying of or trading in securities, real estate, or commodities, or for any other purpose inconsistent with the mainte- nance of sound credit conditions ; and, in determining whether to grant or refuse advances, rediscounts or other credit accommodations, the Federal reserve bank shall give consideration to such informa- tion. The chairman of the Federal reserve bank shall report to bank. by reserve the Federal Reserve Board any such undue use of bank credit by any member bank, together with his recommendation. Whenever, bo spen ioo f nme of in the judgment of the Federal Reserve Board, any member bank credi t fac iliti es. is making such undue use of bank credit, the Board may, in its discretion, after reasonable notice and an opportunity for a hearing, Hearing and notice. suspend such bank from the use of the credit facilities of the Federal Reserve System and may terminate such suspension or may renew it from time to tim e." (b) The paragraph of section 4 of the Federal Reserve Act, as Vol.40, p.sfia. amended (U .S .C ., title 12, sec . 304), which commences with the words us .c ., p.278 . " The Federal Reserve Board shall classify " is amended by inserting di ecaors and class B before the period at the end thereof a colon and the following : " Provided, That whenever any two or more member banks within Pa rticipatio n by member banks in slec- the same Federal reserve district are affiliated with the same holding tions within district. company affiliate, participation by such member banks in any such nomination or election shall be confined to one of such banks, which may be designated for the purpose by such holding company affiliate ." SEC . 4 . The first of section 7 of the Federal Reserve Vol.38,p.258; Vol. paragraph 40, p.1314 . Act, as amended (U .S .C ., title 12, sec . 289), is amended, effective us .c,, p .278. n Ef fective dat e of July 1, 1932, to read as Follows : am endment . "After all necessary expenses of a Federal reserve bank shall have Dividend on stock of been paid or provi ded for, the stock holders s hall b e ent itled to receive reserve bank.