Page:United States Statutes at Large Volume 48 Part 1.djvu/190

 164 Net earnings pa id into surplus fund. Fran chis e tax pay - ments, eliminated. Vol. 38, p. 259; Vol. 40, p.232; Vol. 44, p. 1229. U.S .C ., p.279 VI, p.135. Application of Mor- ris Plan banks to be- come member banks. Vol. 40, p .233; Vol. 44, p. 1229. U.S.C.,p. 279; Supp. VI, p.135. State member banks. Power to establish branches. Vol. 40, p. 233. U.S.C ., pp. 279, 280; Supp. VI, p.135. Mutual savings banks. Appli cati on o f, to become member banks. Subscription to cap- ital stock of reserve bank required. Amount of. Adjustment semian- nually under rules of Reserve Board. Dep osit require d, if subscription unlawful. Adjustment of de- posit. Conditions subject to, Post, p. 971. Interest payments . Application of de- posit to subscription, if subscription here- aft er legalised. Termination of sav- ings bank to rights of membership. When right to su b- s cribe not gran ted. 73d CONGRESS. SESS. I. CH. 89. JUNE 16, 1933. an annual dividend of 6 per centum ' on the paid-in capital stock, which dividend shall be cumulative. After the aforesaid dividend claims have been fully met, the net earnings shall be paid into the surplus fund of the Federal reserve bank ." SEC. 5. (a) The first paragraph of section 9 of the Federal Reserve Act, as amended (U .S .C ., title 12, sec . 321 ; Supp . VI, title 12, sec . 321), is amended by inserting immediately after the words " United States " a comma and the following : " including Morris Plan banks and other incorporated banking institutions engaged in similar business ." (b) The second paragraph of section 9 of the Federal Reserve Act, as amended, is amended by adding at the end thereof the following " Provided, however, That nothing herein conta ined' shall p revent any State me mber bank fro m establishin g and operatin g branches in the United States or any dependency or insular possession thereof or in any foreign country, on the same terms and conditions and subject to the same limitations a nd restrictio ns as are appl icable to the establishment of branches by national banks ." (c) Section 9 of the Federal Reserve Act, as amended (U.S .C ., title 12, sees . 321-331 ; Supp . VI, title 12, sees . 321-332), is further amended by adding at the end thereof the following new paragraphs : "An y mutual savi ngs bank havi ng no capital stock (includ ing any other banking institution the capital of which consists of weekly or other time deposits which are segregated from all other deposits and are regarded as capital stock for the purposes of taxation and the declaration of dividends), but having surplus and undivided profits not less than the amount of capital required for the organization of a national ban k in the same place, may a pply for and b e admitted to membership in the Federal Reserve System in the same manner and subject to the same provisions of law as State banks and trust com- panies, except that any such savings bank shall subscribe for capital stock of the Federal reserve bank in an amount equal to six-tenths of 1 per centum of its total deposit liabilities as shown by the most recent report of examination of such savings bank preceding its admission to membership. Thereafter such subscription shall be adjusted semiannually on the same percentage basis in accordance with rules and regulations prescribed by the Federal Reserve Board. If any such mutual savings bank applying for membership is not permitted by the laws under which it was organized to purchase stock in a Federal reserve bank, it shall, upon admission to the system, deposit with the Federal reserve bank an amount equal to the amount which it would have been required to pay in on account of a subscription to capital stock. Ther eafter such depos it sha ll be adjust ed se mi- annually in the same manner as subscriptions for stock. Such deposits shall be subject to the same conditions with respect to repay- ment as amount s paid upon s ubscriptions to capital sto ck by other member banks and the Federal reserve bank shall pay interest thereon at the same rate as dividends are actually paid on outstand- ing shares of stock of such Federal reserve bank. If the laws under which any such savings bank was organized be amended so as to authorize mutual savings banks to subscribe for Federal reserve bank stock, such savings bank shall thereupon subscribe for the appropriate amount of stock in the Federal reserve bank, and the deposit here- inbefore provided for in lieu of payment upon capital stock shall be applied upon such subscription. If the laws under which any such savings bank was organized be not amended at the next session of the legislature following the admission of such savings bank to memb ers hip so as to authorize mutual savings banks to purchase
 * Supp.