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pervise the organization in each of the cities designated of a Federal reserve bank, which shall include in its title the name of the city in which it is situated, as “Federal Reserve Bank of Chicago.”

Under regulations to be prescribed by the National banks · requir: organization committee, every national banking ed to join sys association in the United States is hereby reba'n k s and quired, and every eligible bank in the United

compa; States and every trust company within the Disnics permitted to join. trict of Columbia, is hereby authorized to sig

nify in writing, within sixty days after the passage of this Act, its acceptance of the terms and provisions hereof. When the organization committee shall have designated the cities in which Federal reserve banks are to be organized, and fixed the geographical limits of the Federal reserve districts, every national banking association within that district shall be required within thirty days after notice from the organization committee, to subscribe to the capital stock of such Federal reserve bank in a sum equal to six per centum of the paid-up capital stock and surplus of such bank, one-sixth of the subscription

to be payable on call of the organization commitStock

sub- tee or of the Federal Reserve Board, one-sixth scriptions.

within three months and one-sixth within six months thereafter, and the remainder of the subscription, or any part thereof, shall be subject to call when deemed necessary by the Federal Reserve Board, said payments to be in gold or gold certificates.

The shareholders of every Federal reserve Double lin. bank shall be held individually responsible, bility of stock equally and ratably, and not one for another, for

all contracts, debts, and engagements of such bank to the extent of the amount of their subscriptions to such stock at the par value thereof in addition to the amount subscribed, whether

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such subscriptions have been paid up in whole or in part, under the provisions of this Act.

Any national bank failing to signify its acceptance of the terms of this Act within the sixty days aforesaid, shall cease to act as a reserve agent, upon thirty days' notice, to be given within the discretion of the said organization committee or of the Federal Reserve Board.

Should any national banking association in Nationthe United States now organized fail within al banks not one year after the passage of this Act to become tem forfeit

their charters. a member bank or fail to comply with any

of the provisions of this Act applicable thereto, all of the rights, privileges, and franchises of such association granted to it under the national-bank Act, or under the provisions of this Act, shall be thereby forfeited. Any noncompliance with or violation of this Act shall, however, be determined and adjudged by any court of the United States of competent jurisdiction in a suit brought for that purpose in the district or territory in which such bank is located, under direction of the Federal Reserve Board, by the Comptroller of the Currency in his own name before the association shall be declared dissolved. In cases of such noncompliance or violation, other than the failure to become a mem

Penalties for ber bank under the provisions of this Act, every noncompliance director who participated in or assented to the with act. same shall be held liable in his personal or individual capacity for all damages which said bank, its shareholders, or any other person shall have sustained in consequence of such violation.

Such dissolution shall not take away or impair any remedy against such corporation, stockholders or officers, for any liability or penalty which shall have been previously incurred. scriptions Should the subscriptions by banks to the stock stock,

be

authorized un of said Federal reserve banks or any one or der. certain more of them be, in the judgment of the organi- contingencies.

Public

subto

to

ernment

may

zation committee, insufficient to provide the amount of capital required therefor, then and in that event the said organization committee may, under conditions and regulations to be prescribed by it, offer to public subscription at par such an amount of stock in said Federal reserve banks, or any one or more of them, as said committee shall determine, subject to the same conditions as to payment and stock liability as provided for member banks.

No individual, copartnership, or corporation other than a member bank of its district shall be permitted to subscribe for or to hold at any time more than $25,000 par value of stock in any Federal reserve bank. Such stock shall be known as public stock and may be transferred

on the books of the Federal reserve bank by the U. S. Gov.

chairman of the board of directors of such bank. subscribe for stock if banks

Should the total subscriptions by banks and and public fail the public to the stock of said Federal reserve adequately.

banks, or any one or more of them, be, in the judgment of the organization committee, insufficient to provide the amount of capital required therefor, then and in that event the said organization committee shall allot to the United States such an amount of said stock as said committee shall determine. Said United States stock shall be paid for at par out of any money in the Treasury not otherwise appropriated, and shall be held by the Secretary of the Treasury and disposed of for the benefit of the United States in such manner, at such times, and at such price, not less than par, as the Secretary of the Treasury shall determine.

Stock not held by member banks shall not be entitled to voting power.

The Federal Reserve Board is hereby empowered to adopt and promulgate rules and regulations governing the transfers of said stock.

No Federal reserve bank shall commence business with a subscribed capital less than $4,000,000. The organization of reserve districts and Federal reserve cities shall not be construed as changing the present status of reserve cities and central reserve cities, except in so far as this Act changes the amount of reserves that may be carried with approved reserve agents located therein. The organization committee shall

Expenses of have power to appoint such assistants and incur Organization such expenses in carrying out the provisions of this Act as it shall deem necessary, and such expenses shall be payable by the Treasurer of the United States upon voucher approved by the Secretary of the Treasury, and the sum of $100,000, or so much thereof as may be necessary, is hereby appropriated, out of any moneys in the Treasury not otherwise appropriated, for the payment of such expenses.

Committee.

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BRANCH OFFICES
Sec. 3.1 The Federal Reserve Board may
permit or require any Federal reserve bank to
establish branch banks within the Federal re-
serve district in which it is located or within the
district of any Federal reserve bank which may
have been suspended. Such branches, subject
to such rules and regulations as the Federal Re-
serve Board may prescribe, shall be operated
under the supervision of a board of directors to
consist of not more than seven nor less than
three directors, of whom a majority of one shall
be appointed by the Federal reserve bank of the
district, and the remaining directors by the Fed-
eral Reserve Board. Directors of branch banks
shall hold office during the pleasure of the Fed-
eral Reserve Board.

1 As amended by act approved June 21, 1917 (40
Stat., chap. 32).

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FEDERAL RESERVE BANKS

Sec. 4. When the organization committee shall have established Federal reserve districts as provided in section two of this Act, a certificate shall be filed with the Comptroller of the Currency showing the geographical limits of such districts and the Federal reserve city designated in each of such districts. The Comptroller of the Currency shall thereupon cause to

be forwarded to each national bank located in Applications each district, and to such other banks declared for membership.

to be eligible by the organization committee which may apply therefor, an application blank in form to be approved by the organization committee, which blank shall contain a resolution to be adopted by the board of directors of each bank executing such application, authorizing a subscription to the capital stock of the Federal reserve bank organizing in that district in accordance with the provisions of this Act.

When the minimum amount of capital stock prescribed by this Act for the organization of any Federal reserve bank shall have been sub

scribed and allotted, the organization committee Certificates

shall designate any five banks of those whose of organization.

applications have been received, to execute a certificate of organization, and thereupon the banks so designated shall, under their seals, make an organization certificate which shall specifically state the name of such Federal reserve bank, the territorial extent of the district over which the operations of such Federal reserve bank are to be carried on, the city and State in which said bank is to be located, the amount of capital stock and the number of shares into which the same is divided, the name and place of doing business of each bank executing such certificate,

2 As amended by acts approved June 21, 1917 (40 Stat., chap. 32), and Sept. 26, 1918.

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