Chapter 207. To amend sections 6 and 9 of the Federal Reserve Act, and for other purposes
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CHAP. 207.— An Act To amend sections 6 and 9 of the Federal Reserve Act, and for other purposes. April 23, 1930.[[H. R. 6604](/us/bill/71/hr/6604).][[Public, No. 163](/us/pl/71/163).] *Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled*, Federal Reserve Act, amendments. That section 6 of the Act of December 23, 1913, known as the Federal Reserve Act (United States Code, title 12, section 288), be amended and reenacted to read as follows:
" “Sec. 6. Insolvent member banks.Stock of, in reserve bank canceled and subscriptions distributed.Vol. 38, p. 258, amended.[U. S. C., p. 278](/us/usc/p278). If any member bank shall be declared insolvent and a receiver appointed therefor, the stock held by it in said Federal reserve bank shall be canceled, without impairment of its liability, and all cash-paid subscriptions on said stock, with one-half of 1 per centum per month from the period of last dividend, if earned, not to exceed the book value thereof, shall be first applied to all debts of the insolvent member bank to the Federal reserve bank, and the balance, if any, shall be paid to the receiver of the insolvent bank.
National banks.Comptroller of the Currency may appoint receiver for, if discontinuing banking business.[R. S., sec. 5220, p. 1010](/us/rs/s5220/p1010).[U. S. C., p. 271](/us/usc/p271).“If any national bank which has not gone into liquidation as provided in section 5220 of the Revised Statutes (United States Code, title 12, section 181) and for which a receiver has not already been appointed for other lawful cause, shall discontinue its banking operations for a period of sixty days the Comptroller of the Currency may, if he deems it advisable, appoint a receiver for such bank.
The stock held by the said national bank in the Federal reserve bank of its district shall thereupon be canceled and said national bank shall receive in payment therefor, under regulations Stock in reserve bank canceled and payment to the national bank.to be prescribed by the Federal Reserve Board, a sum equal to its cash-paid subscriptions on the shares canceled and one-half of 1 per centum a month from the period of the last dividend, if earned, not to exceed the book value thereof, less any liability of such national bank to the Federal reserve bank.
Reserve banks to certify reduction of stock to Comptroller.“Whenever the capital stock of a Federal reserve bank is reduced either on account of a reduction in capital stock of any member bank or of the liquidation or insolvency of such bank or on account 251of the appointment of a receiver for a national bank following discontinuance of its banking operations as provided in this section, the board of directors shall cause to be executed a certificate to the Comptroller of the Currency showing such reduction of capital stock and the amount repaid to such bank.
” " Sec. 2. That the eighth paragraph of section 9 of the Federal Member banks.Vol. 40, p. 233, amended.[U. S. C., p. 280](/us/usc/p280).*Post*, p. 814.Rights, etc., may be forfeited for noncompliance herewith.Reserve Act as amended (United States Code, title 12, section 327), be amended and reenacted to read as follows: " “If at any time it shall appear to the Federal Reserve Board that a member bank has failed to comply with the provisions of this section or the regulations of the Federal Reserve Board made pursuant thereto, or has ceased to exercise banking functions without a receiver or liquidating agent having been appointed therefor, it shall be within the power of the board after hearing to require such bank to surrender its stock in the Federal reserve bank and to forfeit all rights and privileges of membership.
The Federal Reserve Restoration authorized.Board may restore membership upon due proof of compliance with the conditions imposed by this section.” " Approved, April 23, 1930.