Page:United States Statutes at Large Volume 48 Part 1.djvu/197

 73d CONGRESS. SESS. I. CH. 89. JUNE 16, 1933 . 171 for the p urposes o f this se ction, be deemed t o be a cl ass A sto ckholder of the Corporation. If the laws under which such State bank was Ap phcat'on of de- posit to subscription, if organized be amended so as to authorize State banks to subscribe subscription hereafter for class A stock of the Corporation, such State bank shall within legalized. six months thereafter subscribe for an appropriate amount of such class A stock and the deposit hereinafter provided for in lieu of payment upon class A stock shall be applied upon such subscription. Termination of State If the law under which such State bank was organized be not bank to rights of main- amended at the next session of the State legislature following the berslip- admission of such State bank to the benefits of this section so as to When right to sub . authorize State banks to purchase such class A stock, or, if the law scribe not g ranted. b e so amended and such State bank shall fail within six months failure to anpurchse thereafter to purchase Such class A stock, the deposit previously made stock. with the Corporation shall be returned to such State bank and it shall no longer be entitled to the benefits of this section, unless it shall have been closed in the meantime on account of inability to meet the demands of its depositors. 11 (h) The amount of the outstanding class A stock of the Corpo- amo ntofc acs st A t ration held by member banks shall be annually adjusted as here- inafter provi ded as of th e last prece ding ca ll dat e as m ember banks increase their time and demand deposits or as additional banks become members or subscribe to the stock of th e Cor pora tion, and such stock may be decreased in amount as member banks reduce their time and demand deposits or cease to be members. Shares of the capital stock of the Corporation owned by member banks shall not be transf erred or hyp otheca ted. When a member bank increases its time and demand deposits it shall, at the beginning of each calendar year, subscribe for an additional amount of capital stock of the Corporation equal to one half of 1 per centum of such increase in deposits. One half of the amount of such additional stock shall be paid for at the time of the subscription therefor, and the bal- ance shal l be subj ect to ca ll by the board of director s of the Corpora- tion. A bank organized on or before the date this section takes effect and admitted to membership in the Federal Reserve System at any time after the organization of the Corporation shall be required to subscribe for an amount of class A capital stock equal to one half of 1 per centum of the time and demand deposits of the appli cant bank as o f the date of such admis sion, pay ing t heref or its par value plus one ha lf of 1 per centum a mont h from the p eriod of the last dividend on the class A stock of the Corporation. When a member bank reduces its time and demand deposits it shall sur- render, not l ater t han th e 1st day of Januar y ther eafter, a pr opor- tionate amoun t of i ts hol dings in the capita l stoc k of t he Cor pora- tion, and when a member bank voluntarily liquidates it shall surrender all its holdings of the capital stock of the Corporation and be released from its stock subscription not previously called. The shares so surrendered shall be canceled and the member bank shall receive in payment therefor, under regulations to be pre- scribed by the Corporation, a sum equal to its cash-paid subscriptions on the shares surrendered and its proportionate share of dividends not to exceed one half of 1 per centum a month, from the period of the last dividend on such stock, less any liability of such member bank to the Corporation. "(i) If any member or nonmember bank shall be declared insolvent, Me ber ban nk,, when or shall cease to be a member bank (or in the case of a nonmember insolvent or ceases bank, shall cease to be entitled to the benefits of insurance under this membership . section ), the stock held by it in the Corpor ation shall be can celed Nonmember bank ., Liability not im- without impai rment of the liabi lity o f such bank, and al l cash -paid paired . subscriptions on such stock, with its proportionate share of dividends Decreae a authorized . Tr ansfer, etc ., of shares by member banks, denied . Additional subscrip- tion, upon increase of deposits . Pa yments . Amount of subscrip- tion for class A ; mem- ber banks . Payment . P ropor tion ate sur- render of amount of s hares , wh en deposits decrease. Total surrender upon liq uidation . Cancellation of shares . Repayments; amount of.