Page:United States Statutes at Large Volume 49 Part 1.djvu/746

 74TH CONGRESS. SESS. I. CH. 614 . AUGUST 23, 1935 . "(u) Whoever, being connected in any capacity with the Corpora- tion, (1) embezzles, abstracts, purloins, or willfully misapplies any moneys, funds, securities, or other things of value, whether belong- ing to it or pledged, or otherwise entrusted to it, or (2) with intent to defraud the Corporation or any other body, politic or corporate, or any individual, or to deceive any officer, auditor, or examiner of the Corporation, makes any false entry in any book, report, or state- me nt of or to the Corporation, or without being duly authorized draws any order or is sues, puts forth, or assign s any note , deb enture , bond, or other such obligation, or draft, bill of exchange, mortgage, judgment, or decree thereof, shall be punished by a fine of not more than $10,000, or by imprisonment for not more than five years, or both . "(v) (1) No individual, association, partnership, or corporation shall use the words `Federal Deposit Insurance Corporation', or a combination of any three of these four words, as the name or a part thereof under which he or it shall do business. No individual, asso- ciation, partnership, or corporation shall advertise or otherwise repre- sent falsely by any device whatsoever that his or its deposit liabilities ar e insured or in a nywise guaranteed by the Federal D eposit Insur- ance Corporation or by the United States or any instrumentality thereof ; and no insured bank shall advertise or otherwise represent fa lsely by any devi ce whatsoever the extent to which or the manner in which its deposit liabilities are insured by the Federal Deposit Insurance Corporation. Every individual, partnership, association, or corporation violating this subsection shall be punished by a fine of not exceeding $1,000, or by imprisonment not exceeding one year, or both. "(2) Every insured bank shall display at each place of business maintained by it a sign or signs, and shall include in advertisements relating to deposits a statement to the effect that its deposits are insured by the Corporation . The board of directors shall prescribe by regulation the forms of such signs and the manner of display and the substance of such statements and the manner of use . For ea ch day an insured bank continues to violate any provision of this para- graph or any lawful provision of said regulations, it shall be subject to a p enalty of not mor e than $100, reco verable by the Co rporation for its use . "(3 ) No insured bank shall pay any dividends on its capital stock or interest on its capital notes or debentures (of such interest is required to be paid only out of net profits) while it remains in default in the payment of any assessment due to the Corporation ; and any director or officer of any insured bank who participates in the declaration or payment of any such dividend shall, upon convic- tion, be fined not more than $1,000, or imprisoned not more than one year, or both : Prov?ded, That if such default is due to a dispute between the insured bank and the Corporation over the amount of such assessment, this paragraph shall not apply, if such bank shall dep osit secu rity sat isfa ctory to the Corpo rati on f or p aymen t up on final determination of the issue. "(4) Unless, in addition to compliance with other provisions of law, it shall have the prior written consent of the Corporation, no insured ba nk shall enter in to any consolidat ion or merger wit h any noninsured bank, or assume liability to pay any deposits made in any noninsured bank, or transfe r assets to any n oninsured bank in con- sideration of the assumption of liability for any portion of the deposits made in such insured bank, and no insured State nonmem- ber bank (except a District bank) without such consent shall reduce 701 Embezzlement, etc . "Federal Deposit In- surance Corporation", exclusive use of term . False advertisin g . Displ ay of sign in di- catinginsured status . Vol. 48, p .970. Advertisements . Regulations . Penalty for violation . Restriction on divi- dend payment when assessment due Corpo- ration in default . Penalty for violation . Proviso . W hen amount of as- sessment in dispute . Merger of insured and noninsur ed banks ; cons ent r equir ed.