NaTioNAL BANKING UNDER THE FEDERAL RESERVE SYSTEM 
or by an Act of Congress or unless its franchises become forfeited by some violation of 
law; to make contracts; to sue and be sued, complain, and defend in any court of law 
or equity; to elect or appoint directors, all of whom shall be citizens of the United 
States; and, by its board of directors, to appoint such officers and employees as may 
be deemed proper, define their authority and duties, require bonds of them, and fix 
the penalty thereof, dismiss such officers or employees, or any thereof, at pleasure and 
appoint others to fill their places; to prescribe, by its board of directors, by-laws not 
consistent with law or with the regulations of the Federal Reserve Board regulating 
the manner in which its stock shall be transferred, its directors elected or appointed, its 
officers and employees appointed, its property transferred, and the privileges granted 
to it by law exercised and enjoyed. 
Each corporation so organized shall have power, under such rules and regulations as 
the Federal Reserve Board may prescribe: 
(a) To purchase, sell, discount, and negotiate, with or without its indorsement or 
guaranty, notes, drafts, checks, bills of exchange, acceptances, including bankers’ ac- 
ceptances, cable transfers, and other evidences of indebtedness; to purchase and sell, 
with or without its indorsement or guaranty, securities, including the obligations of 
the United States or of any State thereof but not including shares of stock in any cor- 
poration except as herein provided; to accept bills or drafts drawn upon it subject to 
such limitations and restrictions as the Federal Reserve Board may impose; to issue 
letters of credit; to purchase and sell coin, bullion, and exchange; to borrow and to 
lend money; to issue debentures, bonds, and promissory notes under such general con- 
ditions as to security and such limitations as the Federal Reserve Board may prescribe, 
but in no event having liabilities outstanding thereon at any one time exceeding ten 
times its capital stock and surplus; to receive deposits outside of the United States 
and to receive only such deposits within the United States as may be incidental to or 
for the purpose of carrying out transactions in foreign countries or dependencies or 
insular possessions of the United States; and generally to exercise such powers as are 
incidental to the powers conferred by this Act or as may be usual, in the determination 
of the Federal Reserve Board, in connection with the transaction of the business of 
banking or other financial operations in the countries, colonies, dependencies, or pos- 
sessions in which it shall transact business and not inconsistent with the powers spe- 
cifically granted herein. Nothing contained in this section shall be construed to pro- 
hibit the Federal Reserve Board, under its power to prescribe rules and regulations, 
from limiting the aggregate amount of liabilities of any or all classes incurred by the 
corporation and outstanding at any one time. Whenever a corporation organized 
under this section receives deposits in the United States authorized by this section it 
shall carry reserves in such amounts as the Federal Reserve Board may prescribe, but 
in no event less than 10 per centum of its deposits. 
{b) To establish and maintain for the transaction of its business branches or agencies 
in foreign countries, their dependencies or colonies, and in the dependencies or insular 
possessions of the United States, at such places as may be approved by the Federal 
Reserve Board and under such rules and regulations as it may prescribe, including 
countries or dependencies not specified in the original organization certificate. 
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