Page:United States Statutes at Large Volume 48 Part 1.djvu/214

 188 73d CON GRESS. SESS. I. CH. 89. JUNE 16, 1933. Voting permits, hold- " ( e) Every such holding company affiliate shall, in its application ing company affiliates. Requirements of ap- for such voting permit, (1) show that it does not own, control, or plication. have any interest in, and is not participating in the management or direction of, any corporation, business trust, association, or other similar organization formed for the purpose of, or engaged prin- cipally in, the issue, flotation, underwriting, public sale, or distribution, at wholesale or retail or through syndicate participa- tion, of stocks, bonds, debentures, notes, or other securities of any Agreements» sort (hereinafter referred to as `securities company') ; (2) ag ree that during the period that the permit remains in force it will not acquire any ownership, control, or interest in any such securities company or participate in the management or direction thereof (3) agree that if, at the time of filing the application for such permit, it owns, controls, or has an interest in, or is participating in the man agement or di rection of, a ny such securi ties company, it will, within five years after the filing of such application, divest itself of its ownership, control, and interest in such securities company and will cease participating in the management or direction thereof, and will not thereafter, during the period that the permit remains in force, acquire any further ownership, control, or interest in any such securities company or participate in the management or direc- tion thereof ; and (4) agree that thenceforth it will declare dividends only out of actual net earnings. Revocation of permit, a If at any time it shall appear to the Federal Reserve Board that tug Act violating of 1933 . Bank any holding company affiliate has violated any of the provisions of the B anking Act of 1933 or of an y agreement m ade pursuant to this Post, p. 195» section, the Federal Reserve Board may, in its discretion, revoke any such voting permit after giving sixty days' notice by registered mail of its intention to the holding company affiliate and affording it an States Dep osit s of Unit ed public moneys opportunity to be heard. Whenever the Federal Reserve Board shall denied . have revoked any s uch voting per mit, no natio nal bank whos e stock is co ntrolled by t he holding com pany affiliat e whose permi t is so revoked shall receive deposits of public moneys of the United States, nor sha ll any such n ational bank p ay any furthe r dividend to such holding company affi liate upon any shares of su ch bank contro lled by such holding company affiliate. privileges, f rights, "Whenever the Federal Reserve Board shall have revoked any voting permit as hereinbefore provided, the rights, privileges, and franchises of any or all national banks the stock of which is con- trolled by such holding company affiliate shall, in the discretion of Vol.38,p.251. the Fed eral Reserve Board, be subj ect to forfei ture in accord ance with se ction 2 of th e Federal Rese rve Act, as a mended ." Member bank affi1i- SEC. 20. After one year from the date of the enactment of this Act, anon with stock, etc., sa les or gani sati on, p ro- no member bank shall be affiliated in any manner described in sec- hi bit ed tion 2 (b) hereof with any corporation, association, business trust, or Ante, p .162. other similar organization engaged principally in the issue, flotation, underwriting, public sale, or distribution at wholesale or retail or through syndicate participation of stocks, bonds, debentures, notes, or other securities. Penalty for violation. For every violation of this section the member bank involved shall be subjec t to a penalty not exceedin g $1,000 per day for each d ay Assessment of. during which such violation continues. Such penalty may be assessed by the Federal Reserve Board, in its discretion, and, when so assessed, may be collec ted by the Fe deral reserve bank by suit or oth erwi se. National banks. If any such violation shall continue for six calendar months after Forfeiture ti righ ts, the etc ., if v iola tion con- member bank shall have been warned by the Federal Reserve tin ues. Board to discontinue the same, (a) in the case of a national bank, all the ri ghts, p rivile ges, an d franc hises granted to it under the Nat ional