Page:United States Statutes at Large Volume 48 Part 1.djvu/193

 73d CONGRESS. SESS. I. CH. 89. JUNE 16, 1933. hold office for a term of twelve years from the expiration of the term of his predecessor. Of the six persons thus appointed, one shall be designated by the President as governor and one as vice governor of the Federal Reserve Board. The governor of the Federal Reserve Board, subject to its supervision, shall be its active executive officer. Each member of the Federal Reserve Board shall within fifteen days after notice of appointment make and subscribe to the oath of office ." (b) The fourth paragraph of section 10 of the Federal Reserve Act, as amended (U .S .C ., title 12, sec . 244), is amended to read as follows " The principal offices of the Board shall be in the District of Columbia. At meetings of the Board the Secretary of the Treasury shall preside as chairman, and, in his absence, the governor shall preside. In the absence of both the Secretary of the Treasury and the governor the vice governor shall preside. In the absence of the Secretary of the Treasury, the governor, and the vice governor the Board shall elect a member to act as chairman pro tempore. The Board shall determine and prescribe the manner in which its obli- gations shall be incurred and its disbursements and expenses allowed and paid, and may leave on deposit in the Federal Reserve banks the proceeds of assessments levied upon them to defray its estimated expenses and the salaries of its members and employees, whose employment, compensation, leave, and expenses shall be governed solely by the provisions of this Act, specific amendments thereof, and rules and regulations of the Board not inconsistent therewith ; and funds derived from such assessments shall not be construed to be Government funds or appropriated moneys. No member of the Fed- eral Reserve Board shall be an officer or director of any bank, bank- ing institution, trust company, or Federal Reserve bank or hold stock in any bank, banking institution, or trust company ; and before entering upon his duties as a member of the Federal Reserve Board he sh all ce rtify under oath t hat he has co mplied with this r equire - ment, and such certification shall be filed with the secretary of the Board. Whenever a vacancy shall occur, other than by expiration of term, among the six members of the Federal Reserve Board appointed by the President as above provided, a successor shall he appointed by the President, by and with the advice and consent of the Senate, to fill such vacancy, and when appointed he shall hold office for the unexpired term of his predecessor ." SEC. 7. Paragraph (m) of section 11 of the Federal Reserve Act, as amended (U .S .C., title 12, sec . 248), is amended to read as follows "(m) Upon the affirmative vote of not less than six of its mem- bers the Fede ral R eser ve Bo ard s hall have powe r to fix from time to time for each Federal reserve district the percentage of indi- vidual bank capital and surplus which may be represented by loans secured by stock or bond collateral made by member banks within such district, but no such loan shall be made by any such bank to any person in an amount in excess of 10 per centum of the unim- paired capital and surplus of such bank. Any percentage so fixed by the Federal Reserve Board shall be subject to change from time to time upon ten days' notice, and it shall be the duty of the Board to establish such percentages with a view to preventing the undue use of bank loans for the speculative carrying of securities. The Federal Reserve Board shall have power to direct any member bank to refrain from further increase of its loans secured by stock or bond collateral for any period up to one year under penalty of susp ension of al l redi scount privi leges a t Fede ral re serve banks. " 167 D esign atio n of gover - nor . Oath of office . Vol. 38, p. 261; Vol. 42,p.621. U.S.C., p. 276 . Principal offices of Board . Chairman Chairman pro tem- pore . Determinati on of manner disbu rsements to be made and obliga- tions incurred . Salar ies, leave, et c . Qualificati ons of members . Vac anc ies . Vol.39,p.752; Vol. 41, p . 1146. Powers of Board . Fix percentage of bank capital and sur- plus represented by loans . Limitation on amount of loan. Percentage subject to change . Power to direct bank from incr easi ng lo ans.