The commoner. (Lincoln, Neb.) 1901-1923, September 01, 1913, Page 13, Image 13

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The Commoner
mand, on timo, and the different
classes of collateral held to protect
the various loans, and the lines of
credit which aro hoing extended by
them. The federal reserve board
shall, at least once each year, order
an examination of each federal re
serve bank, and upon joint applica
tion of ten member banks the federal
reserve board shall order a special
examination and report of the con
dition of any federal reserve bank.
Section 24. That no national
bank shall hereafter make any loan
or grant any gratuity to any ex
aminer of such bank. Any bank
offending against this provision shall
be deemed guilty of a misdemeanor
and shall be fined not more than
$5,000, and a further sum equal to
the money so loaned or gratuity
given; and the officer or officers of
a bank making such loan or granting
such gratuity shall I bo likewise
deemed guilty of a misdemeanor and
shall be fined not to exceed $5,000.
Any examiner accepting a loan or
gratuity from any bank examined by
him shall be deemed guilty of a mis
demeanor and shall bo fined not more
than $5,000, and a further sum equal
to the money so loaned or gratuity
given; and shall forever thereafter
be disqualified from holding office as
a national-bank examiner. No national-bank
examiner shall perform
any other service for compensation
while holding such office.
No officer or director of a national
bank shall receive or be beneficiary,
either directly or indirectly, of any
fee (other than a legitimate fee paid
an attorney at law for legal ser
vices), commission, gift, or other
consideration for or on account of
any loan, purchase, sale, payment,
exchange, or transaction with re
spect to stocks, bonds, or other in
vestment securities or notes, bills of
exchange, acceptances, bankers' bills,
cable transfers or mortgages made
by or on behalf of a national bank
of which he is such officer or director.
Any person violating any provision
of this section shall be punished by
a fine of not exceeding $5,000 or by
imprisonment not exceeding five
years, or both such fine and Imprison
ment, in the discretion of the court
having jurisdiction.
Except so far as already provided
in existing laws this provision shall
not take effect until six months after
the passage of this act.
Section 25. That from and after
the passage of this act the stockhold
ers of every national banking associa
tion shall be held individually re
sponsible for all contracts, debts,
and engagements of such association,
each to the amount of his stock
therein, at the par value thereof in
addition to the amount invested in
such stock. The stockholders In any
national banking association who
shall have transferred their shares or
registered the transfer thereof within
sixty days next before the date of the
failure of such association to meet
its obligations shall be liable to the
same extent as if they had made no
such transfer; but this provision
shall not be construed to affect in any
way any recourse which such share
holders might otherwise have against
those in whoso names such shares are
registered at the time of such failure.
Section fifty-one hundred and fifty
one, Revised Statutes of the United
States, is hereby reenacted except in
so far as modified by this section.
Section 2G. That any national
banking association not situated in a
reserve, city or central reserve- city
may make loans secured by improved
and unencumbered farm land, and so
much of section fifty-one hundred
and thirty-seven of the revised
statutes as prohibits the making of
such loans by banks so situated shall
be, and the same is hereby repealed;
but no such loan shall be made for
a longer timo than twelve months,'
nor for an amount exceeding fifty per ,
centum of the actual valuo of the
property offered as security, and such
property shall bo situated within the
federal reserve district in which the!
bank is located. Any such bank may,
make such loans in an aggregate sum
equal to twenty-five por centum of
its capital and surplus, or fiftv nor'
centum of its timo deposits.
The federal reserve board shall
have power from timo to time to add
to tne list of cities in which national
banks shall not be permitted to make
loans secured upon real estate In the
manner described in this section.
Section 27. That any national
banking association may, subsequent
to a date one year after the organiza
tion of the federal reserve board,
make application to the comptroller
of the currency for permission to
open a savings department. Such. ap
plication shall sot forth that the direc
tors of said national bank have by
a majority vote apportioned a speci
fied percentage of their paid-in capi
tal and surplus to said savings de
partment and to that end havo segre
gated specified assets for the purpose
of said department, or that cash
capital for the said savings depart
ment has been obtained by tho sub
scription to additional Issues of the
capital stock of said national bank:
Provided, That the sum in assets or
in cash thus set apart for tho uses of
the proposed savings department
aforesaid shall in no case bo less than
$25,000, or than a sum equal to
twenty per centum of tho paid-up
capital and surplus of tho said na
tional bank.
In making the application afore
said any national banking associa
tion may further apply for power to
act as trustee for mortgage loans
subject to the conditions and limi
tations herein prescribed or to bo
established as hereinafter provided.
Whenever tho comptroller of the
currency shall have approved any
such application as hereinbefore pro
vided, he shall so inform the apply
ing bank, and thereafter the organi
zation and business conducted or
possessed by said bank at tho lime
of making said application, except
such as has been specifically segre
gated for the savings department,
and subsequent expansions thereof
shall be known as the commercial de
partment of the said bank. National
banks may increase or diminish their
capital stock in the manner now pro
vided by law, but whenever such
general increase or reduction of the
capital stock of any national bank
operating upon the provisions of this
section shall be made such increase
or reduction shall be apportioned be
tween the commercial and savings
departments of the said bank as Its
board' of directors shall prescribe,
notice of such increase or reduction,
and of the apportionment thereof, be
ing forthwith given to the comp
troller of the currency; and any such
national bank may Increase or di
minish the capital already appor
tioned to either Us savings or com
mercial department to an extent not
Inconsistent with tho provisions of
this section, notifying the comptroller
of the currency as hereinbefore pro
vided. Tho savings department for
which authority has been solicited j
and granted shall have control of the
cash or assets apportioned to it as;
hereinbefore provided, and shall be,
organized under rules and regula- j
tlons to be prescribed by the comp
troller of the currency.
Doth the savings and commercial ,
departments so created shall, how-j
ever, be under the control and direc-,
tion of a single board of directors
and of the general officers of said 1
bank. '
All business transacted by the com- i
mercial department of any such na-,
tlonnl bank glial! be in ovory rospoct
subject to the limitation and re
quirements provided In the nntlonnl
banking act ns modified by this net,
and such business shall hencefor
ward be known ns commercial busi
ness. The savings department of each
such national bank shall be author
ized to accumulate and loan tho
funds of its depositors, to rocolvo
deposits of current funds, to loan any
funds In its possession upon personal
or real estate security, and to collect
the same with interest, and to doclaro
and pay dividends or interest both
upon demand and time deposits. The
federal reserve board is horoby
authorized to exempt the savings de
partments of national banking as
sociations from any anil every restric
tion upon classes or kinds of business
laid down In tho national banking
act, and it shall be the duty of the
said board within one yoar aftor Its
organization to prepare and publish
rules and regulations for tho conduct
of business by such savings depart
ments. The said regulations shall
require every national bank which
shall conduct a savings department
and a commercial department to
segregate in its own vaults tho cash
and assets belonging to such depart
ments respectively and shall pre
scribe the general forms of separate
books of account to be used by each
such department for its exclusive and
individual use. Tho regulations
aforesaid shall further specify the
period of notice for tho withdrawal
of deposits made in the said savings
department and shall forbid tho ac
ceptance of deposits by one depart
ment of such national bank from tho
other department of such bank. Tho
federal reserve board shall make and
publish at Its discretion lists of
securities, paper, bonds, and other
forms of investment, which tho
savings departments of national
banks shall be authorized to buy;
and said lists need not be uniform
throughout the United States, but
shall be adapted to the conditions of
business in different sections of tho
It shall be tho duty of every na
tional bank to maintain, with respect
to all deposit liabilities of its sav
ings department, a reserve in money
which may under existing law bo
counted as reserve, equal to not less
than five por centum of its total de
posit liabilities, and every national
bank authorized to maintain a sav
ings department is hereby exompted
from the reserve requirements of tho
national banking act and of this act
in respect to the said deposit liabili
ties of its savings department, except
as in this section provided. Every
regulation made In pursuance of this
section shall be duly published, and
also posted in every member bank
having a savings department.
Every officer, director, or employee
of any national bank who shall
knowingly or willfully violate any of
the provisions of this section, or any
of the regulations of tho federal re
serve board, or of the comptroller of
the currency, made under and by vir
tue of the provisions of this section
shall be guilty of a felony, and on
conviction thereof shall be punished
by a fine not exceeding $5,000 or by
imprisonment not exceeding two
Section 28. That 'any national
banking association possessing a
capital of $1,000,000 or more may
file application with the federal re
serve board, upon such conditions
and under such circumstances as may
be prescribed by the said board, for
the purpose of securing authority to
establish branches in foreign coun
tries for the furtherance of the
foreign commerce of the United
States and to act, if required to do
so, as fiscal agents of the United
Statoa. Such application shall
specify, in addition to tho name and
capital of tho banking association
filing It, the foreign country or coun
tries or the dependencies of tho
United Stales whero tho banking
operations proposed aro to bo carried
on and the amount of capital set
asido by tho said banking associa
tion filing such application for tho
conduct of its foreign business at tho
branches proposed by it to bo estab
lished in foreign countries. Tho
federal reserve board shall havo
powor to approve or to reject ouch
application if, in its judgment, tho
amount of capital proposed to bo sot
aside for the conduct of foreign busi
ness is inadequate or if for othor
reasons tho granting of such appli
cation Is deemed Inexpedient.
Every national banking associa
tion which shall receive authority to
establish branches in foreign coun
tries shall bo required at all times to
furnish information concerning the
condition of such branches to tho
comptroller of tho curroncy upon de
mand, and tho federal reserve board
may older special examinations of
the said foreign branches at such
time or times as it may deem best.
Every such national banking associa
tion shall conduct the accounts of
each foreign branch Independently of
tho accounts of other foreign
branches established by It and of its
homo office, and shall at the end of
each fiscal period transfer to its
general ledger tho profit or loss
accruing at each such branch as a
separate item.
Section 29. That all provisions of
law inconsistent with or superseded
by any of tho provisions of this act
be, and tho same aro hereby, re
pealed. Section 30. That the right to
amend, alter, or repeal this act ia
horoby oxprossly reserved.
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