Page:United States Statutes at Large Volume 48 Part 1.djvu/192

 166 Trans fer o f cer tifi cate conditioned upon sale, etc ., prohibited. State mem ber banks and holding company affiliates. Agreements required. R.S., sec . 5144, p . 994 . U.S.C ., p . 262. Co py of agreement; filing. Penal ty on fai lure to comply. Reserve Boa rd may require State membe r affil iates to surre nder stock and righ ts. Examinations of State member banks. Of affiliates. Relationships to be disclosed. Assessments for ex- pen ses . Penalty upon failure to permit examination, etc. Vol. 38, p. 260 ; Vol. 40, p. 1315; Vol. 42, p. 620. U.S.C., p. 275. Ineligibility to hold office in member banks . Terms of office of members of Federal Reserve Board. 73d CONGRESS. SESS. I. CH. 89 . JUNE 16, 1933 . member bank, nor shall the ownership, sale, or transfer of any certificate representing the stock of any such bank be conditioned in any manner whatsoever upon the ownership, sale, or transfer of a certificate representing the stock of any other corporation, except a member ba nk. "Eac h State member bank affiliated with a ho lding company affiliate shall obtain from such holding company affiliate, within such time as the Federal Reserve Board shall prescribe, an agree- ment that such holding company affiliate shall be subject to the same conditions and limitations as are applicable under section 5144 of the Revised Statutes, as amended, in the case of holding company affiliates of national banks . A copy of each such agreement shall be filed with the Federal Reserve Board . Upon the failure of a State member bank affiliated with a holding company affiliate to obtain such a n agre ement within the t ime so prescr ibed, the Fe deral Reserv e Board shall require such bank to surrender its stock in the Federal reserve bank and to forfeit all rights and privileges of membership in the Federal Reserve System as provided in this section . When- ever the Federal Reserve Board shall have revoked the voting permit of a ny su ch ho lding com pany affil iate, the Fede ral Reser ve Bo ard may, in its discretion, require any or all State member banks affiliated with such holding company affiliate to surrender their stock in the Federal reserve bank and to forfeit all rights and privileges of membership in the Federal Reserve System as provided in this section. " In connection with examinations of State member banks, exam- iners selected or approved by the Federal Reserve Board shall make such examinations of the affairs of all affiliates of such banks as shall be necessary to disclose fully the relations between such banks and their affiliates and the effect of such relations upon the affairs of such banks . The expense of examination of affiliates of any State member bank may, in the discretion of the Federal Reserve Board, be assessed against such bank and, when so assessed, shall be paid by such bank . In the event of the refusal to give any information request ed in the co urse o f the examin ation o f any such aff ilia te, or in the eve nt of the re fusal to per mit su ch exam inatio n, or in the event of the refusal to pay any expense so assessed, the Federal Reserve Board may, in its discretion, require any or all State member banks affiliated with such affiliate to surrender their stock in the Federal reserve bank and to forfeit all rights and privileges of membership in the Federal Reserve System, as provided in this section ." SEC . 6 . (a) The second paragraph of section 10 of the Federal Reserve Act, as amended (U.S .C ., title 12, sec . 242), is amended to read as follo ws " The Secretary of the Treasury and the Comptroller of the Cur- rency sha ll be ine ligible d uring the time the y are in office an d for two years thereafter to hold any office, position, or employment in any member bank. The appointive members of the Federal Reserve Board shall be ineligible during the time they are in office and for two years thereafter to hold any office, position, or employment in any member bank, except that this restriction shall not apply to a member who has served the full term for which he was appointed. Upon the expiration of the term of any appointive member of the Federal Reserve Board in office when thi s paragraph as amended takes eff ect, the President shall fi x the ter m of the successor to such member at not to ex ceed t welve years, as des ignate d by t he Pre sident at the time of nomination, but in such manner as to provide for the expiration of the term of not more than one appointive member in any two-year period, and thereafter each appointive member shall