Narionan BANKING UNDER THE FEDERAL RESERVE Systim 
No Senator or Representative in Congress shall be a member of the Federal Reserve 
Board or an officer or a director of a Federal reserve bank. 
No director of class B shall be an officer, director, or employee of any bank. 
No director of class C shall be an officer, director, employee, or stockholder of any 
bank. 
Directors of class A and class B shall be chosen in the following manner: 
The Federal Reserve Board shall classify the member banks of the district into three 
general groups or divisions, designating each group by number. Each group shall con- 
sist as nearly as may be of banks of similar capitalization. Each member bank shall be 
permitted to nominate to the chairman of the board of directors 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 comple- 
tion, be furnished by the chairman to each member bank. Each member bank by a 
resolution 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 member bank in the elections of 
Class A and class B directors. 
Within fifteen days after receipt of the list of candidates the duly authorized officer 
of a member 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, second, 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 eligible to serve as a class A director unless nominated 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 
eligible 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 declared 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 column and the votes cast for the several candidates in the first column. 
If any candidate then have a majority of the electors voting, by adding together the 
first and second choices, he shall be declared elected. If no candidate have a majority 
of electors voting 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. 
Class C directors shall be appointed by the Federal Reserve Board. They shall have 
been for at least two years residents of the district for which they are appointed, one 
of whom shall be designated by said board as chairman of the board of directors of the 
Federal reserve bank and as “Federal reserve agent.” He shall be a person of tested 
banking experience, and in addition to his duties as chairman of the board of directors of 
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