12 U.S.C. § 329a — Omitted

Page 115 TITLE 12—BANKS AND BANKING § 330 ernors of the Federal Reserve System, cancel within the same calendar year more than 25 per centum of its capital stock for the purpose of ef- fecting voluntary withdrawals during that year. All such applications shall be dealt with in the order in which they are filed with the board. Whenever a member bank shall surrender its stock holdings in a Federal reserve bank, or shall be ordered to do so by the Board of Gov- ernors of the Federal Reserve System, under au- thority of law, all of its rights and privileges as a member bank shall thereupon cease and deter- mine, and after due provision has been made for any indebtedness due or to become due to the Federal reserve bank it shall be entitled to a re- fund of its cash-paid subscription with interest at the rate of one-half of 1 per centum per month from date of last dividend, if earned, the amount refunded in no event to exceed the book value of the stock at that time, and shall like- wise be entitled to repayment of deposits and of any other balance due from the Federal reserve bank. (Dec. 23, 1913, ch. 6, § 9 (par.), as added June 21, 1917, ch. 32, § 3, 40 Stat. 233; amended Apr. 17, 1930, ch. 175, 46 Stat. 170; Aug. 23, 1935, ch. 614, title II, § 203(a), 49 Stat. 704.) Editorial Notes CODIFICATION Section is comprised of the tenth par. of section 9 of act Dec. 23, 1913, as amended. The tenth par. con- stituted the eighth par. of section 9 in 1917 (40 Stat. 232), became the ninth par. in 1927 (44 Stat. 1229), and became the tenth par. in 1950 (64 Stat. 458). For further details, see Codification note set out under section 321 of this title. AMENDMENTS 1930—Act Apr. 17, 1930, amended part of section pre- ceding second proviso. Statutory Notes and Related Subsidiaries CHANGE OF NAME Section 203(a) of act Aug. 23, 1935, changed name of Federal Reserve Board to Board of Governors of the Federal Reserve System. § 329. Capital stock required as condition prece- dent to membership No applying bank shall be admitted to mem- bership unless it possesses capital stock and sur- plus which, in the judgment of the Board of Gov- ernors of the Federal Reserve System, are ade- quate in relation to the character and condition of its assets and to its existing and prospective deposit liabilities and other corporate respon- sibilities: Provided, That no bank engaged in the business of receiving deposits other than trust funds, which does not possess capital stock and surplus in an amount equal to that which would be required for the establishment of a national banking association in the place in which it is located, shall be admitted to membership unless it is, or has been, approved for deposit insurance under the Federal Deposit Insurance Act [12 U.S.C. 1811 et seq.]. The capital stock of a State member bank shall not be reduced except with the prior consent of the Board. (Dec. 23, 1913, ch. 6, § 9 (par.), 38 Stat. 259; June 21, 1917, ch. 32, § 3, 40 Stat. 234; Mar. 4, 1923, ch. 252, title IV, § 401, 42 Stat. 1478; June 16, 1933, ch. 89, § 17(b), 48 Stat. 185; July 15, 1952, ch. 753, § 1, 66 Stat. 633.) Editorial Notes REFERENCES IN TEXT The Federal Deposit Insurance Act, referred to in text, is act Sept. 21, 1950, ch. 967, § 2, 64 Stat. 873, which is classified generally to chapter 16 (§ 1811 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 1811 of this title and Tables. CODIFICATION Section is comprised of the eleventh par. of section 9 of act Dec. 23, 1913, as amended. The eleventh par. con- stituted the ninth par. of section 9 in 1917 (40 Stat. 232), became the tenth par. in 1927 (44 Stat. 1229), and be- came the eleventh par. in 1950 (64 Stat. 458). For further details, see Codification note set out under section 321 of this title. AMENDMENTS 1952—Act July 15, 1952, vested in Board of Governors discretion with respect to admission of State banks to membership. 1933—Act June 16, 1933, dropped alternative method of meeting the capital requirement and inserted proviso. § 329a. Omitted Editorial Notes CODIFICATION Section, act Dec. 23, 1913, ch. 6, § 9 (par.), as added Aug. 23, 1935, ch. 614, title II, § 202, 49 Stat. 704, related to waiver of the requirements of sections 321 to 338 of this title for admission to membership in the case of a bank which was required to become a member of the Federal Reserve System under a former provision of subsection (y) of former section 264 of this title, which provision was repealed by act June 20, 1939, ch. 214, § 2, 53 Stat. 842. This section was based on the twelfth par. of section 9 of act Dec. 23, 1913, as amended. The twelfth par. con- stituted the eleventh par. of section 9 when added in 1935, and became the twelfth par. in 1950 (64 Stat. 458). For further details, see Codification note set out under section 321 of this title. § 330. Laws applicable on becoming members; discounts for State banks Banks becoming members of the Federal re- serve system under authority of this subchapter shall be subject to the provisions of this sub- chapter and to those of this chapter which relate specifically to member banks, but shall not be subject to examination under the provisions of sections 481 and 482 of this title. Subject to the provisions of this chapter and to the regulations of the board made pursuant thereto, any bank becoming a member of the Federal reserve sys- tem shall retain its full charter and statutory rights as a State bank or trust company, and may continue to exercise all corporate powers granted it by the State in which it was created, and shall be entitled to all privileges of member banks, except that the Board of Governors of the Federal Reserve System may limit the activities of State member banks and subsidiaries of State member banks in a manner consistent with sec- tion 1831a of this title. No Federal reserve bank shall be permitted to discount for any State bank or trust company notes, drafts, or bills of