Page:United States Statutes at Large Volume 49 Part 1.djvu/736

 74TH CONGRESS. SESS. I. CH. 614. AUGUST 23, 1935 . 691 subject, the board of directors shall first give to the Comptroller of notice to be given. the Currency in the case of a national bank or a District bank, to the authority having supervision of the bank in the case of a State bank, or to the Board of Governors of the Federal Reserve System in the case of a State member bank, a statement with respect to such prac- tices or violations for the purpose of securing the correction thereof. Unless su ch corre ction sh all be m ade with in one h undred and twen ty Notice of intention to terminate status days or such shorter period of time as the Comptroller of the Cur- when correction not rency, the State authority, or Board of Governors of the Federal made. Reserve System, as the case may be, shall require, the board of direc- tors, if it shall determine to proceed further, shall give to the bank not less than thirty days' written notice of intention to terminate the status of the bank as an insured bank, and shall fix a time and Hearing- place for a hearing before the board of directors or before a person designate d by it to condu ct such hearing, at whic h evide nce may be produce d, and u pon such evidenc e the bo ard of d irectors shall m ake written findings which shall be conclusive. Unless the bank shall Bank failing to ap- appear at the hearing by a duly authorized representative, it shall pear' e ffect. b e deemed to have consented to the termination of its status as an insured bank. If the board of directors shall find that any violation Term inat ion of status when specified viola- specified in such notice has been established, the board of directors tions established. may order that the insured status of the bank be terminated on a Date_ date subsequent to such finding and to the expiration of the time specified in such notice of intention. The Corporation may publish Publication of. notice of such termination and the bank shall give notice of such termination to each of its depositors at his last address of record on the books of the bank, in such manner and at such time as the board of directors may find to be necessary and may order for the protec- tion of depositors. After the termination of the insured status of Insurance of deposit s any bank under the provisions of this paragraph, the insured deposits thereafter . of each depositor in the bank on the date of such termination, less all subsequent withdrawals from any deposits of such depositor, shall continue for a period of two years to be insured, and the bank shall m nts me nt of as ses s- continue to pay to the Corporation assessments as in the case of an insured bank during such period. No additions to any such deposits dit e deposits and ad- and no new deposits in such bank made after the date of such termi- nation shall be insured by the Corporat ion, and the ban k shall not advertise or hold itself out as having insured deposits unless in the same connection it shall also state with equal prominence that such additions to deposits and new deposits made after such date are not so insured. Such bank shall, in all other respects, be subject to the ing Statu s ban k i nsur ed fp eriod . dur- duties and obligations of an insured bank for the period of two years from the date of such termination, and in the event that such bank shall b e closed on acco unt of i nability to meet the dem ands of its depositors within such period of two years, the Corporation shall have the same powers and rights with respect to such bank as in case of an insu red bank. " 2 Whenever the insured status of a State member bank shall be bership Ter oneral Re- p in Fed e- terminated by action of the board of directors, the Board of Gov- serve System . ernors of the Federal Reserve System shall terminate its membership in the Federal Reserve System i n accord ance wit h the pr ovisions of section 9 of this Act, and whenever the insured status of a national Vol. 3s, p. aso; U. S. membe r bank s hall be so termi nated th e Comptr oller of the Cur rency o., P " 9 '* shall appoint a receiver for the bank, which shall be the Corporation CeAp, ointmeat of re- whe nev er the bank sh all be unable to meet the de man ds of its depositors. Whenever a member bank shall cease to be a member Termination of en Surd status w hen of the Federal Reserve System, its status as an insured bank shall, membe rship cea ses . without notice or other action by the board of directors, terminate on the date the bank shall cease to be a member of the Federal Reserve