Page:United States Statutes at Large Volume 49 Part 1.djvu/754

 74Th CONGRESS. SESS. I. CH. 614 . AUGUST 23, 1935 . 709 " SEC. 4 . So much of section 31 of the Banking Act of 1933, as ame nded, as rel ates t o stoc k owne rship by dir ectors, trus tees, or mem bers o f simi lar go vernin g bodi es of any na tional banki ng ass o- ciation, or of any State bank or trust company which is a member of the Federal Reserve System, is hereby repealed." SEC. 307 . Effective January 1, 1936, section 32 of the Banking Act C Vol . p.194; U.S. of 1933, as amended, is amended to read as follows "SEC. 32 . No officer, director, or employee of any corporation or Member bank . directors, etc . unincorporated association, no partner or employee of any partner- Restriction on en- ship, and no individual en armed in the issue flotation gaging in securities 1,, primarily g b , I transac tions . underwriting, public sale, or distribution, at wholesale or retail, or through syndicate participation, of stocks, bonds, or other similar securities, shall serve the same time as an officer, director, or employee of any member bank except in limited classes of cases in which the Board of Governors of the Federal Reserve System may allow such service by general regulations when in the judgment of the said Board it would not unduly influence the investment policies of such member bank or the advice it gives its customers regarding National Ban k Act, inv estmen ts . " am endment s. SEC. 308 . (a) The second sentence of paragraph Seventh of section 9sR.uS , ee .p 51 36. p. 5136 of the Revised Statutes, as amended (U . S. C ., Supp . VII, title Vol. 48, p .184. Corporate powers of 12, sec . 24), is amended to read as follows : " The business of dealing associations . in s ecuritie s and st ock by t he assoc iation s hall be limited to purc has- Security transactions . ing and sell ing such securit ies and stock wi thout r ecourse, solely upon the order, and for the account of, customers, and in no case for its own account, and the association shall not underwrite any issue of securities or stock : Provided, That the association may purchase for Proviso . Purchases by associa- its own account investment securities under such limitations and ti on for own ac count . res tricti ons as the C omptro ller o f the Curren cy may by re gulati on prescribe . In no event shall the total amount of the investment ve Total amount of in- secu rities o f any on e obligo r or mak er, held by the associa tion for its own account, exceed at any time 10 per centum of its capital stock actually paid in and unimpaired and 10 per centum of its unimpaired surplus fund, except that this limitation shall not require any asso- ciat ion to d ispose o f any se curities lawfull y held by it on the dat e of enactment of the Banking Act of 1935 ." (b) The f ourth senten ce of such p aragra ph Sev enth i s amen ded to any corporation ares of read as follows : "Except as hereinafter provided or otherwise per- mitted by law, nothing herein contained shall authorize the purchase by the association for its own account of any shares of stock of any corporation ." c The last sentence of such Seventh is amended b Obligations insured par agr aph y by Federal Housing inserting before the colon after the words "Ro me Owners' Loan Administration. Corporation " a comma and the following : " or obligations which are insured by the Federal Housing Administrator pursuant to section 207 of the National Housing Act, if the debentures to be issued in Vol. 48, p. 1252. payment of such insured obligations are guaranteed as to principal and interest by the United States " . SEC . 3 0 9 . Sectio n 5138 of the Revised Statutes, as amended, 993 ' U. S.C.,p.355.p (U. S . C ., Supp . VII, title 12, sec . 51), is amended by adding the Vol. 8,t9 amount of following sentences at the end thereof : "No such association shall capital stock. hereafter be authorized to commence the business of banking until it au red d.in surplus re- shall have a paid-in surplus equal to 20 per centum of its capital : Provisos. Provided, That the C omptr oller of the Currency may waive this When State ban k requirement as to a State bank converting into a national banking converting int o na- n tional banking associa- association, but each such State bank which is converted into a tion . national banking association shall, before the declaration of a divi- dend on its sliares of common stock, carry not less than one-half part of its net profits of the preceding`half year to its surplus fund until Vol. 48, p. 19t; U.S. C.,p.359. Stock ownership of memb ers of gov ern ing bodies of nation al bank association. Excep tion.