12 U.S.C. § 308 — Terms of directors; vacancies

Page 110 TITLE 12—BANKS AND BANKING § 305 designated for such purpose by the holding company af- filiate. 1933—Act June 16, 1933, inserted proviso at end of sec- ond par. 1930—Act June 26, 1930, amended last par. 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. § 305. Class C directors; selection; ‘‘Federal re- serve agent’’ Class C directors shall be appointed by the Board of Governors of the Federal Reserve Sys- tem. They shall have been for at least two years residents of the district for which they are ap- pointed, one of whom shall be designated by said board as chairman of the board of directors of the Federal reserve bank and as ‘‘Federal re- serve agent.’’ He shall be a person of tested banking experience and in addition to his duties as chairman of the board of directors of the Fed- eral reserve bank he shall be required to main- tain, under regulations to be established by the Board of Governors of the Federal Reserve Sys- tem, a local office of said board on the premises of the Federal reserve bank. He shall make reg- ular reports to the Board of Governors of the Federal Reserve System and shall act as its offi- cial representative for the performance of the functions conferred upon it by this chapter. He shall receive an annual compensation to be fixed by the Board of Governors of the Federal Re- serve System and paid monthly by the Federal reserve bank to which he is designated. One of the directors of class C shall be appointed by the Board of Governors of the Federal Reserve Sys- tem as deputy chairman to exercise the powers of the chairman of the board when necessary. In case of the absence of the chairman and deputy chairman, the third class C director shall pre- side at meetings of the board. (Dec. 23, 1913, ch. 6, § 4 (par.), 38 Stat. 256; June 21, 1917, ch. 32, § 2, 40 Stat. 232; Aug. 23, 1935, ch. 614, title II, § 203(a), 49 Stat. 704.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in text, was in the original ‘‘this Act’’, meaning act Dec. 23, 1913, ch. 6, 38 Stat. 251, known as the Federal Reserve Act. For complete classi- fication of this Act to the Code, see References in Text note set out under section 226 of this title and Tables. CODIFICATION Section is comprised of par. 22 of section 4 of act Dec. 23, 1913. For classification to this title of other pars. of section 4, see Codification note set out under section 301 of this title. 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. § 306. Assistants to Federal reserve agent Subject to the approval of the Board of Gov- ernors of the Federal Reserve System, the Fed- eral reserve agent shall appoint one or more as- sistants. Such assistants, who shall be persons of tested banking experience, shall assist the Federal reserve agent in the performance of his duties and shall also have power to act in his name and stead during his absence or disability. The Board of Governors of the Federal Reserve System shall require such bonds of the assistant Federal reserve agents as it may deem necessary for the protection of the United States. Assist- ants to the Federal reserve agent shall receive an annual compensation, to be fixed and paid in the same manner as that of the Federal reserve agent. (Dec. 23, 1913, ch. 6, § 4 (par.), as added June 21, 1917, ch. 32, § 2, 40 Stat. 232; amended Aug. 23, 1935, ch. 614, title II, § 203(a), 49 Stat. 704.) Editorial Notes CODIFICATION Section is comprised of par. 23 of section 4 of act Dec. 23, 1913, as added June 21, 1917. For classification to this title of other pars. of section 4, see Codification note set out under section 301 of this title. 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. § 307. Compensation of directors Directors of Federal reserve banks shall re- ceive, in addition to any compensation other- wise provided, a reasonable allowance for nec- essary 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 directors, officers or employees shall be subject to the ap- proval of the Board of Governors of the Federal Reserve System. (Dec. 23, 1913, ch. 6, § 4 (par.), 38 Stat. 257; Aug. 23, 1935, ch. 614, title II, § 203(a), 49 Stat. 704.) Editorial Notes CODIFICATION Section is comprised of par. 24 of section 4 of act Dec. 23, 1913. For classification to this title of other pars. of section 4, see Codification note set out under section 301 of this title. 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. § 308. Terms of directors; vacancies At the first meeting of the full board of direc- tors of each Federal reserve bank, it shall be the duty of the directors of classes A, B, and C, re- spectively, to designate one of the members of each class whose term of office shall expire in one year from the 1st of January nearest to date of such meeting, one whose term of office shall Page 111 TITLE 12—BANKS AND BANKING § 321 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 re- serve banks may be filled in the manner pro- vided for the original selection of such directors, such appointees to hold office for the unexpired terms of their predecessors. (Dec. 23, 1913, ch. 6, § 4 (par.), 38 Stat. 257.) Editorial Notes CODIFICATION Section is comprised of par. 26 of section 4 of act Dec. 23, 1913. For classification to this title of other pars. of section 4, see Codification note set out under section 301 of this title. SUBCHAPTER VIII—STATE BANKS AS MEMBERS OF SYSTEM § 321. Application for membership Any bank incorporated by special law of any State, operating under the Code of Law for the District of Columbia, or organized under the general laws of any State or of the United States, including Morris Plan banks and other incorporated banking institutions engaged in similar business, desiring to become a member of the Federal Reserve System, may make appli- cation to the Board of Governors of the Federal Reserve System, under such rules and regula- tions as it may prescribe, for the right to sub- scribe to the stock of the Federal Reserve bank organized within the district in which the apply- ing bank is located. Such application shall be for the same amount of stock that the applying bank would be required to subscribe to as a na- tional bank. For the purposes of membership of any such bank the terms ‘‘capital’’ and ‘‘capital stock’’ shall include the amount of outstanding capital notes and debentures legally issued by the applying bank and purchased by the Recon- struction Finance Corporation. The Board of Governors of the Federal Reserve System, sub- ject to the provisions of this chapter and to such conditions as it may prescribe pursuant thereto may permit the applying bank to become a stockholder of such Federal Reserve bank. Upon the conversion of a national bank into a State bank, or the merger or consolidation of a national bank with a State bank which is not a member of the Federal Reserve System, the re- sulting or continuing State bank may be admit- ted to membership in the Federal Reserve Sys- tem by the Board of Governors of the Federal Reserve System in accordance with the provi- sions of this section, but, otherwise, the Federal Reserve bank stock owned by the national bank shall be canceled and paid for as provided in sec- tion 287 of this title. Upon the merger or con- solidation of a national bank with a State mem- ber bank under a State charter, the membership of the State bank in the Federal Reserve System shall continue. Any such State bank which on February 25, 1927, has established and is operating a branch or branches in conformity with the State law, may retain and operate the same while remain- ing or upon becoming a stockholder of such Fed- eral Reserve bank; but no such State bank may retain or acquire stock in a Federal Reserve bank except upon relinquishment of any branch or branches established after February 25, 1927, beyond the limits of the city, town, or village in which the parent bank is situated: Provided, however, That nothing herein contained shall prevent any State member bank from estab- lishing and operating branches in the United States or any dependency or insular possession thereof or in any foreign country, on the same terms and conditions and subject to the same limitations and restrictions as are applicable to the establishment of branches by national banks except that the approval of the Board of Gov- ernors of the Federal Reserve System, instead of the Comptroller of the Currency, shall be ob- tained before any State member bank may here- after establish any branch and before any State bank hereafter admitted to membership may re- tain any branch established after February 25, 1927, beyond the limits of the city, town, or vil- lage in which the parent bank is situated. The approval of the Board shall likewise be obtained before any State member bank may establish any new branch within the limits of any such city, town, or village. (Dec. 23, 1913, ch. 6, § 9 (pars.), 38 Stat. 259; June 21, 1917, ch. 32, § 3, 40 Stat. 232; Feb. 25, 1927, ch. 191, § 9, 44 Stat. 1229; June 16, 1933, ch. 89, § 5(a), (b), 48 Stat. 164; June 16, 1934, ch. 546, § 2, 48 Stat. 971; Aug. 23, 1935, ch. 614, title II, § 203(a), title III, § 338, 49 Stat. 704, 721; Aug. 17, 1950, ch. 729, § 8, 64 Stat. 458; July 15, 1952, ch. 753, § 2(a), 66 Stat. 633; Pub. L. 108–386, § 8(h), Oct. 30, 2004, 118 Stat. 2232; Pub. L. 109–351, title VII, § 725(a)(2), Oct. 13, 2006, 120 Stat. 2001; Pub. L. 109–356, title I, § 123(a)(2), Oct. 16, 2006, 120 Stat. 2028.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in text, was in the original ‘‘this Act’’, meaning act Dec. 23, 1913, ch. 6, 38 Stat. 251, known as the Federal Reserve Act. For complete classi- fication of this Act to the Code, see References in Text note set out under section 226 of this title and Tables. CODIFICATION Section is comprised of the first three pars. of section 9 of act Dec. 23, 1913, as amended. The first par. of this section is comprised of the first par. of section 9 as amended in 1917 (40 Stat. 232). The second par. of this section was added as a new par. to follow the first par. of section 9, by act Aug. 17, 1950. The third par. of this section originally constituted the second par. of sec- tion 9, as amended by act Feb. 25, 1927, and became the third par. when act Aug. 17, 1950 added the new second par. The fourth to twenty-third pars. of section 9, as amended, are classified to sections 322 to 338a of this title. Section 329a of this title, which was based on par. twelve of section 9, was omitted from the Code. Para- graph twenty-two of section 9, which was classified to section 337 of this title, was repealed by Pub. L. 89–485, § 13(g), July 1, 1966, 80 Stat. 243. AMENDMENTS 2006—Pub. L. 109–351 and 109–356 amended section identically, substituting ‘‘incorporated by special law of any State, operating under the Code of Law for the District of Columbia, or’’ for ‘‘incorporated by special law of any State, or’’ in first sentence of first par.