Page:United States Statutes at Large Volume 49 Part 1.djvu/741

 696 74TH CONGRESS. SESS. I. CH. 614 . AUGUST 23, 1935 . Management. The new bank shall not have a board of directors, but shall be man- aged by an executive officer appointed by the board of directors of the Corporation who shall be subject to its directions. In all other respects the new bank shall be organized in accordance with the then existing provisions of law relating to the organization of national d Acceptance of new banking associations. The new bank may, with the approval of the Corporation, accept new deposits which shall be subject to with- drawal on demand and which, exc ept where the new ba nk is the Res tric tion on only bank in the community, shall not exceed $5,000 from any depos- amo unt. Insured status of new itor. The new bank, without application to or approv al by the bank. Corporation, shall be an insured bank and shall maintain on deposit with the Federal Reserve bank of its district reserves in the amount required by law for member banks, but it shall not be required to Funds ; cash require- subscribe for stock of the Federal Reserve bank. Fun ds of the ment ; investments. new bank shall be kept on hand in cash, invested in obligations of the United States, or in obligations guaranteed as to principal and interest by the United States, or deposited with the Corporation, with a Federal Reserve bank, or, to the extent of the insurance Re stri ction on tran s- coverage thereon, with an insured bank. The new bank, unless other- action of business. wis e author ized by the Comp troller of the C urrency, shall t ransact no business except that authorized by this section and as may be Tax exemptions. incidental to its organization. Notwithstanding any other provision of law the new bank, its franchise, property, and income shall be exempt from all taxation now or hereafter imposed by the United States, by any Territory, dependency, or possession thereof, or by any State, county, municipality, or local taxing authority. Payment of insured "( 10) Upon the organization of a new bank, the Corporation shall deposits ; amount mad e available. promptly make available to it an amount equal to the estimated insured deposits of such closed bank plus the estimated amount of the expenses of operating the new bank, and shall determine as soon as possible the amount due each depositor for his insured deposit in the clos ed bank, and the total e xpenses of opera tion of the new bank . Upon such determination, the amounts so estimated and made available shall be adjusted to conform to the amounts so determined . ban k. ~gs of new Earnings of the new bank shall be paid over or credited to the Am ounts made avai l- Corporation in such adjustment . If any new bank, during the period able for paymen t of it continues its status as such, sustains any losses with respect to w hich it is not e ffective ly prote cted exc ept by r eason of being a n i nsured b ank, the Corpora tion sha ll furni sh to it additio nal fund s in the amount of such losses. The new bank shall assume as trans- ferred deposits the payment of the insured deposits of such closed Cash transfers. bank to each of it 1 depositors. Of the amounts so made available, the Corporation shall transfer to the new bank, in cash, such sums as may be necessary to enable it to meet its expenses of operation and imme- d iate cas h demand s on suc h transf erred de posits, and the remainde r of such amounts shall be subject to withdrawal by the new bank on demand. Capital stock of new "(11) Whenever in the judgment of the board of directors it is bank ; sales authorized. desirable to do so, the Corporation shall cause capital stock of the new bank to be offered for sale on such terms and conditions as the board of directors shall deem advisable in an amount sufficient, in the opinion of the board of directors, to make possible the conduct of the business of the new bank on a sound basis, but in no event less than ssa'u "s. sc, ,' 355p that required by section 5138 of the Revised Statutes, as amended (U. S . C ., Supp . VII, title 12, sec . 51), for the organization of a Priority right of national bank in the place where such new bank is located . The stockholders of closed insured bank. stockhold ers of the clo sed insured b ank shall be given the firs t oppo r- tunity to p urchase any shares of common stock so offered . Upon 'So in original.