Page:United States Statutes at Large Volume 48 Part 1.djvu/208

 182 Regulation of inter- est rate, ti me deposits. Paym ent before ma- turi ty pr ohib ited. Postal savings de- positories. Vol.36,p. 816. U.S.C ., p. 1281. Wit hdr aw als on 60 days' notice. On demand Proviso. Deposits with me m- ber ba nks . Vol. 36, p . 816; Vol . 39, p 159. U.S.C.,p. 1281. Deposit of funds in banks. Secur ity, whe n de- posits insured. Ante, p. 168. Vol. 38, p. 272. U.S .C ., pp. 284, 288, 291-292 Supp. VI, p. 140 Loans to executive officer prohibited. Proviso. Renewal of lo ans made prior hereto Report by officer, when indebted to other member bank . Penalty provision. 73d CONGRESS. SESS. I. CH. 89. JUNE 16, 1933 . county, school district, or other subdivision or municipality, with resp ect to w hich pay ment of interest is requi red unde r State law. " The Federal Reserv e Board shall from time to time limit by regulation the rate of interest which may be paid by member banks on time deposits, and may prescribe different rates for such pay- me nt on ti me and sav in gs deposits having different maturities or su bje ct to different conditions res pe cti ng withdrawal or rep ay -' ment o r subjec t to dif ferent c ondition s by rea son of d ifferent loca- tions. No member bank shall pay any time deposit before its ma- turity, or waive any requ iremen t of notic e befo re pa yment of any savings deposit except as to all savings deposits having the same requirement ." (c) Section 8 of the Act entitled "An Act to establish postal savi ngs d eposit ories for deposi ting savin gs at interest with the security of the Government for repayment thereof, and for other purp oses ", approved June 25, 1910, as amended (U.S.C., title 39, sec. 758), is amended by striking out the first sentence thereof and inserting in lieu thereof the following : "Any depositor may with- draw the whole or any part of the funds deposited to his or her credit with the accrued interest only on notice given sixty days in advance and under such regulations as the Postmaster General may prescribe ; but withdrawal of any part of such funds may be made upon demand, but no interest shall be paid on any funds so withdrawn except interest accrued to the date of enactment of the Banking Act of 1933 : Prov ided, That Postal Savings depositories may deposit funds in member banks on time under regulations to be prescribed by the Postmaster General ." (d) The second sentence of section 9 of the Act entitled "An Act to establish post al savings depos itories for depo siting savings a t interest with the security of the Government for repayment thereof, and for other purposes ", approved Ju ne 25, 1910, as am en ded (U .S .C ., title 39, sec . 759), is amended by striking out the period at the end thereof and ins erting i n lieu t hereof a colon a nd the f ollowing : "Prov ided, That no such security shall be required in case of such part of the deposits as are insured under section 12B of the Federal Reserve Act, as amended ." SEC. 12 . Section 22 of the Federal Reserve Act, as amended (U.S.C., title 12, sees . 375, 376, 503, 593-595 ; Supp . VI, title 12, sec . 593), is further amended by adding at the end thereof the following new paragraph : " (g») No executive officer of any member bank shall borrow from or otherwise become indebted to any member bank of which he is an executive officer, and no member bank shall make any loan or extend credit in any other manner to any of its own executive officers Provid ed, That loans heretofore made to any su ch officer may be renewed or extended not more than two years from the date this paragraph takes effect, if in accord with sound banking practice . If any ex ecut ive offi cer of any member ba nk borr ow f rom or if he be or beco me i ndeb ted to any b ank othe r t han a me mber ban k of which he is an executive officer, he shall make a written report to the chairman of the board of directors of the member bank of which he is an executi ve offic er, stat ing the date and amount o f such l oan or indebtedness, the security therefor, and the purpose for which the proceeds have been oraretobe used. Any executive officer of any me mber bank violat ing t he pro visio ns of this parag raph shall be de emed gui lty of a mis deme anor and sha ll be im pris oned not exceedin one year, or fined not more than $5,000, or both ; and any member ba nk violating the provisions of this paragraph shall be