12 U.S.C. § 304 — Class A and class B directors; selection

Page 109 TITLE 12—BANKS AND BANKING § 304 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. § 303. Qualifications and disabilities No Senator or Representative in Congress shall be a member of the Board of Governors of the Federal Reserve System or an officer or a di- rector of a Federal reserve bank. No director of class B shall be an officer, direc- tor, or employee of any bank. No director of class C shall be an officer, direc- tor, employee, or stockholder of any bank. (Dec. 23, 1913, ch. 6, § 4 (pars.), 38 Stat. 255; Aug. 23, 1935, ch. 614, title II, § 203(a), 49 Stat. 704.) Editorial Notes CODIFICATION Section is comprised of pars. 13 to 15 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. § 304. Class A and class B directors; selection Directors of class A and class B shall be cho- sen in the following manner: The Board of Gov- ernors of the Federal Reserve System shall clas- sify the member banks of the district into three general groups or divisions designating each group by number. Each group shall consist as nearly as may be of banks of similar capitaliza- tion. Each member bank shall be permitted to nominate to the chairman of the board of direc- tors of the Federal reserve bank of the district one candidate for director of class A and one candidate for director of class B. The candidates so nominated shall be listed by the chairman, indicating by whom nominated, and a copy of said list shall, within fifteen days after its com- pletion, be furnished by the chairman to each member bank. Each member bank by a resolu- tion of the board or by an amendment to its by- laws shall authorize its president, cashier, or some other officer to cast the vote of the mem- ber bank in the elections of class A and class B directors: Provided, That whenever any member banks within the same Federal Reserve district are subsidiaries of the same bank holding com- pany within the meaning of the Bank Holding Company Act of 1956 [12 U.S.C. 1841 et seq.], par- ticipation in any such nomination or election by such member banks, including such bank hold- ing company if it is also a member bank, shall be confined to one of such banks, which may be designated for the purpose by such holding com- pany. Within fifteen days after receipt of the list of candidates the duly authorized officer of a mem- ber bank shall certify to the chairman his first, second, and other choices for director of class A and class B, respectively, upon a preferential ballot upon a form furnished by the chairman of the board of directors of the Federal reserve bank of the district. Each such officer shall make a cross opposite the name of the first, sec- ond, and other choices for a director of class A and for a director of class B, but shall not vote more than one choice for any one candidate. No officer or director of a member bank shall be eli- gible to serve as a class A director unless nomi- nated and elected by banks which are members of the same group as the member bank of which he is an officer or director. Any person who is an officer or director of more than one member bank shall not be eligi- ble for nomination as a class A director except by banks in the same group as the bank having the largest aggregate resources of any of those of which such person is an officer or director. Any candidate having a majority of all votes cast in the column of first choice shall be de- clared elected. If no candidate have a majority of all the votes in the first column, then there shall be added together the votes cast by the electors for such candidates in the second col- umn and the votes cast for the several can- didates in the first column. The candidate then having a majority of the electors voting and the highest number of combined votes shall be de- clared elected. If no candidate have a majority of electors voting and the highest number of votes when the first and second choices shall have been added, then the votes cast in the third column for other choices shall be added together in like manner, and the candidate then having the highest number of votes shall be declared elected. An immediate report of election shall be declared. (Dec. 23, 1913, ch. 6, § 4 (pars.), 38 Stat. 256; Sept. 26, 1918, ch. 177, § 1, 40 Stat. 968; June 26, 1930, ch. 614, 46 Stat. 815; June 16, 1933, ch. 89, § 3(b), 48 Stat. 163; Aug. 23, 1935, ch. 614, title II, § 203(a), 49 Stat. 704; Pub. L. 89–485, § 13(e), July 1, 1966, 80 Stat. 243.) Editorial Notes REFERENCES IN TEXT The Bank Holding Company Act of 1956, referred to in text, is act May 9, 1956, ch. 240, 70 Stat. 133, which is classified principally to chapter 17 (§ 1841 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 1841 of this title and Tables. CODIFICATION Section is comprised of pars. 16 to 21 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. AMENDMENTS 1966—Pub. L. 89–485 substituted proviso restricting participation in nomination or election of directors by member banks to one member bank whenever any member banks within the same Federal reserve district are subsidiaries of the same bank holding company, such member bank to be designated for the purpose by the holding company for former proviso restricting the selection of directors by member banks to one member bank when two or more member banks within the same Federal reserve district are affiliated with the same holding company affiliate, such member bank to be 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