Page:United States Statutes at Large Volume 49 Part 1.djvu/759

 714 74Tx CONGRESS. SESS. I. CH. 614 . AUGUST 23, 1935. 47Vpl 38, p. 263 SEC. 322 . The third paragraph of section 13 of the Federal Reserve 715 . Discount of paper for Act, as amended, is amended by changing the words "indorsed and ind ividu als o r cor pora- tions, otherwise secured to the satisfaction of the Federal Reserve bank " in that paragraph to read "indorsed or otherwise secured to the satisfaction of the Federal Reserve bank ". Vol. 48, p. 1106. SEC. 323 . Subsection (e) of section 13b of the Federal Reserve Direct dustrial loans for in- purposes. Act, as amended, is amended by striking out " upon the date this Payments to Reserve banks . section takes effect ", and inserting in lieu thereof " on and after June 19, 1934" ; and by striking out "the par value of the holdings of each Federal Reserve bank of Federal Deposit Insurance Corpo- ration stock ", and inserting in lieu thereof " the amount paid by each Federal Reserve bank for stock of the Federal Deposit Insurance Corporation ". vol. 38, i' 270; Vol. SEC. 324. (a) The first paragraph of section 19 of the Federal 402P 239 ; U.S. C.,p. Reserve Act, as amended, is amended to read as follows B oard a uthoriz ed to " SFC. 19. The Board of Governors of the Federal Reserve Sys- define terms . tem is authorized, for the purposes of this section, to define the terms `demand deposits', 'gross demand deposits', `deposits pay- able on demand', 'time deposits', `savings deposits', and `trust funds', to determine what shall be deemed to be a payment of interest, and to prescribe such rules and regulations as it may deem necessary to effectuate the purposes of this section and prevent Proviso . evasions thereof : Provided, That, within the meaning of the provi- Time deposits to in- cl ude savings deposits. sions of this section regarding the reserves required of member banks, the term `time deposits' shall include `savings deposits' ." Vol. 38, p. 270; U. S. (b) The tenth paragraph of such section 19 is amended to read C.,p.402. as follows Ascertainment of re- " In estimating the reserve balances required by this Act, member serve balances required . banks may deduct from the amount of their gross demand deposits the amounts of balances due from other banks (except Federal Reserve banks and f oreign banks) and cas h items in process of collection payable immediately upon presentation in the United States, within the mea ning of these t erms as define d by the Board of Governors of the Federal Reserve System ." Vol. 38, p. 270; Vol. (c) The last two paragraphs of such section 19 are amended to 48, p. 181; U. S. C., p. 402. read as follows demand In terest pay simsnts on "No member bank shall, directly or indirectly, by any device whatsoever, pay any interest on any deposit which is payable on Provisos . C ontr acts mad e demand : Provided That nothing herein contained shall be con- prior her eto . strued as prohibiting the payment of interest in accordance with the terms of any c erti ficat e of depo sit or ot her contr act enter ed i nto in good faith which is in force on the d ate on which the bank Renewals prohibited . becomes subject to the provisions of this paragraph ; but no such certificate of deposit or other contract shall be renewed or extended unless it shall be modified to conform to this paragraph, and every member bank shall take such action as may be necessary to con- form to this paragraph as soon as possible consistently with its e1g D ep•si ts pa yable for- contractual obligations : Provided further, That this paragraph shall not apply to any deposit of such bank which is payable only at an office thereof located outside of the States of the United States and provisions c which the District of Columbia : Provided further, That until the expira- tion of two years after the date of enactment of the Banking Act of 1935 this paragraph shall not apply (1) to any deposit made by a savings bank as defined in section 12B of this Act, as amended, or by a mutual savings bank, or (2) t o any d eposit of publi c funds made by or on behalf of any State, county, school district, or other subdivision or municipality, or to any deposit of trust funds if the payment of interest with respect to such deposit of public funds or
 * T01.