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HOUSE BILL.

SECTION 4-Continued

Directors of Federal reserve banks shall receive, in addition to any compensation otherwise provided, a reasonable allowance for necessary expenses in attending meetings of their respective boards, which amount shall be paid by the respective Federal reserve banks. Any compensation that may be provided by boards of directors of Federal reserve banks for members of such boards shall be subject to review by the Federal Reserve Board.

The Reserve Bank Organization Committee may, in organizing Federal reserve banks for the first time, call such meetings of bank directors in the several districts as may be necessary to carry out the purposes of this Act and may exercise the functions herein conferred upon the chairman of the board of directors of each Federal reserve bank pending the complete organization of such bank.

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At the first meeting of the full board of directors of each Federal reserve bank after organization it shall be the duty of the directors of classes A and B and C, respectively, to designate one of the members of each class whose term of office shall expire in one year from the first of January nearest to date of such meeting, one whose term of office shall expire at the end of two years from said date, and one whose term of office shall expire at the end of three years from said date. Thereafter every director of a Federal reserve bank chosen as herein before provided shall hold office for a term of three years; but the chairman of the board of directors of each Federal reserve bank designated by the Federal Reserve Board, as hereinbefore described, shall be removable at the pleasure of the said board without notice, and his successor shall hold office during the unexpired term of the director in whose place he was appointed. Vacancies that may occur in the several classes of directors of Federal reserve banks may be filled in the manner provided for the original selection of such directors, such appointees to hold office for the unexpired terms of their prede

cessors.

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At the first meeting of the full board of directors of each Federal reserve bank after organization it shall be the duty of the directors of classes A and B and C, respectively, to designate one of the members of each class whose term of office shall expire in one year from the first of January nearest to date of such meeting, one whose term of office shall expire at the end of two years from said date, and one whose term of office shall expire at the end of three years from said date. Thereafter every director of a Federal re

serve bank chosen as herein

before provided shall hold office for a term of three years; but the ehairman of the board of di reeters of each Federal reserve bank designated by the Federal Reserve Beard, as hereinbefore described, shall be removable at the pleasure of the said board, without notice, and his successor shall hold office during the unexpired term of the director-in whose place he was ap pointed. Vacancies that may occur in the several classes of directors of Federal reserve banks may be filled in the manner provided for the original selection of such directors, such appointees to hold office for the unexpired terms of their predecessors.

CONFERENCE AGREEMENT.

Directors of Federal reserve banks shall receive, in addition to any compensation compensation otherwise provided, a reasonable allowance for necessary expenses in attending meetings of their respective boards, which amount shall be paid by the respective Federal reserve banks. Any compensation that may be provided by boards of directors of Federal reserve banks for [members of such boards] DIRECTORS, OFFICERS OR EMPLOYEES shall be subject to [review and subsequent readjustment at any time by] THE APPROVAL OF the Federal Reserve Board.

The Reserve Bank Organization Committee may, in organizing Federal reserve banks for the first time], call such meetings of bank directors in the several districts as may be necessary to carry out the purposes of this Act, and may exercise the functions herein conferred upon the chairman of the board of directors of each Federal reserve bank pending the complete organization of

such bank.

At the first meeting of the full board of directors of each Federal reserve bank, [after organization] it shall be the duty of the directors of classes A, [and] B and C, respectively, to designate one of the members of each class whose term of office shall expire in one year from the first of January nearest to date of such meeting, one whose term of office shall expire at the end of two years from said date, and one whose term of office shall expire at the end of three years from said date. Thereafter every director of a Federal reserve bank chosen as hereinbefore provided shall hold office

for a term of three years. Vacancies that may occur in the several classes of directors of Federal reserve banks may be filled in the manner provided for the original selection of such directors, such appointees to hold office for the unexpired terms of their predecessors.

HOUSE BILL.

INCREASE AND DECREASE OF CAPI

TAL.

SEC. 5. That shares of the capital stock of Federal reserve banks shall not be transferable, nor be hypothecated In case a member bank increases its capital, it shall thereupon subscribe for an additional amount of capital stock of the Federal reserve bank of its district equal to twenty per centum of the bank's own increase of capital, one-half of said subscription to be paid in cash in the manner herein before provided for original subscription, and onehalf to become a liability o the member bank according to the terms of the original subscription.

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A bank applying for stock in a Federal reserve bank at any time after the formation of the latter must subscribe for an amount of the capital of said Federal reserve bank equal to twenty per centum of the capital stock of said subscribing bank, paying therefor its par value in accordance with the terms prescribed by section two of this Act

SECTION 5.

PASSED BY SENATE.

STOCK ISSUES; INCREASE AND DECREASE OF CAPITAL.

SEC. 5. That shares The capital stock of each Federal reserve bank shall be divided into shares of $100 each. The outstanding capital stock shall be increased from time to time as member banks increase their capital stock and surplus or as additional banks become members, and may be decreased as member banks reduce their capital stock or surplus or cease to be members.

Shares of the capital stock of Federal reserve banks owned by member banks shall not be transferable, nor be hypotheeated hypothecable. In case a member bank inereases increase its capital stock or surplus, it shall thereupon subscribe for an additional amount of capital stock of the Federal reserve bank of its district equal to twenty six per centum of the bank's own said increase of cap ital, one-half of said subscription to be paid in cash in the manner hereinbefore provided for original subscription, and one-half to become a liability-of-the-member bank according to the terms of the original subseription subject to call of the Federal Reserve Board. A bank applying for stock in a Federal reserve bank at any time after the formation of the latter organization thereof must subscribe for an amount of the capital stock of said the Federal reserve bank equal to twenty six per centum of the paidup capital stock and surplus of said subseribing applicant bank, paying therefor its par value in accordance with the terms prescribed by section two-of-this-Aet plus one-half of one per centum a month from the period of the last dividend.

When the capital stock of any Federal reserve bank has shall have been increased either on account of the increase of capital stock of member banks or on account of the increase in the num

When the capital stock of any Federal reserve bank has been increased either on account of the increase of capital stock of member banks or on account of the increase in the number ber of member banks, the board of directors shall make and execute a certificate to the Comptroller of the Currency showing said increase in capital, the amount paid in, and by whom paid. In case a member bank reduces its capital stock it shal surrender a proportionate amount of its holdings in the capital

of member banks, the board of directors shall make-and-execute cause to be executed a certificate to the Comptroller of the Currency showing said the increase in capital stock, the amount paid in, and by whom paid. In case a member bank reduces its capital stock it shall surrender a proportionate amount of its holdings in the capital

CONFERENCE AGREEMENT.

STOCK ISSUES: INCREASE AND DECREASE OF CAPITAL.

SEC. 5. The capital stock of each Federal reserve bank shall be divided into shares of $100 each. The outstanding capital stock shall be increased from time to time as member banks increase their capital stock and surplus or as additional banks become members, and may be decreased as member banks reduce their capital stock or surplus or cease to be members.

Shares of the capital stock of Federal reserve banks owned by member banks shall not be [transferable nor be hypothecable] TRANSFERRED OR HYPOTHECATED. [In case] WHEN a member bank [increase] INCREASES its capital stock or surplus, it shall thereupon subscribe for an additional amount of capital stock of the Federal reserve bank of its district equal to six per centum of the said increase, one-half of said subscription to be paid

in

the manner hereinbefore provided for original subscription, and one-half subject to call of the

Federal Reserve Board. A bank applying for stock in a Federal reserve bank at any time after the organization thereof must subscribe for an amount of the capital stock of the Federal reserve bank equal to six per centum of the paid-up capital stock and surplus of said applicant bank, paying therefor its par value plus one-half of one per centum a month from the period of the last

dividend. When the capital stock of any Federal reserve bank shall have been increased either on account of the increase of capital stock of member banks or on account of the increase in the number of member banks, the board of directors shall cause to be executed a certificate to the Comptroller of the Currency showing the increase in capital stock, the amount paid in,

and by whom paid. [In case] WHEN a member bank reduces its capital stock it shall surrender a proportionate amount of its holdings in the capital

HOUSE BILL.

SECTION 5-Continued.

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PASSED BY SENATE.

of said Federal reserve bank, and in case a member bank goes into voluntary liquidation it shall surrender all of its holdings of the capital stock of said Federal reserve bank and be released from its stock subscription not previously called.

In either case the shares surrendered shall be canceled and such member bank shall receive in payment therefor, under regulations to be prescribed by the Federal Reserve Board, a sum equal to its cash paid subscriptions on the shares surrendered and one-half of one per centum a month from the period of the last dividend, not to exceed the book value thereof, less any liability of such member bank to the Federal reserve bank.

SECTION 6.

SEC. 6. That-if-any-member-bank shall-become-insolvent-and-a-re

eeiver-be-appointed, the stock held by-it-in-said-Federal-reserve-bank shall be eaneeled and the balance, after-deducting from the amount of its-eash-paid subscriptions all debts due-by-such-insolvent-bank to said Federal-reserve-bank, shall be paid to the receiver of the insolvent bank If any member bank shall be declared insolvent and a receiver appointed therefor, the stock held by itin said Federal reserve bank shall be canceled, and all cash-paid subscriptions on said stock, with one-half of one per centum per month from the period of last dividend, 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. 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 any such member such bank, the board

cause to

of directors shall make-and execute to be executed a certificate the Comptroller of the Currency showing such reduction of capital stock and the amount repaid to such bank.

CONFERENCE AGREEMENT.

of said Federal reserve bank, and [in case] WHEN a member bank [goes into voluntary liquidation] VOLUNTARILY LIQUIDATES it shall surrender all of its holdings of the capital_stock of said Federal reserve bank and be released from its stock subscription not previously called. In either case the shares surrendered shall be canceled and such] THE member bank shall receive in payment therefor,under regulations to be prescribed by the Federal Reserve Board, a sum equal to its cash-paid subscriptions on the shares surrendered and one-half of one per centum a month from the period of the last dividend, not to exceed the book value thereof, less any liability of such member bank to the Federal reserve bank.

SEC. 6. If any member bank shall be declared insolvent and a receiver pointed therefor, the stock held by it in

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said Federal reserve bank shall be canceled, WITHOUT IMPAIRMENT OF ITS LIABILITY, and all cash-paid subscriptions on said stock, with one-half of one of last dividend, not to exceed the book per centum per month from the period 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. 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, the board of directors shall cause to be executed a certificate to the Comptroller of the Currency showing such duction of capital stock and the amount repaid to cuch bank.

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