NATIONAL BANKING UNDER THE FEDERAL RESERVE SysTEM
business operations until the whole of the capital stock shall be paid in: Provided,
however, That whenever $2,000,000 of the capital stock of any corporation is paid in
the remainder of the corporation’s capital stock or any unpaid part of such remainder
may, with the consent of the Federal Reserve Board and subject to such regulations
and conditions as it may prescribe, be paid in upon call from the board of directors;
such unpaid subscriptions, however, to be included in the maximum of 10 per centum
of the national bank’s capital and surplus which a national bank is permitted under the
provisions of this Act to hold in stock of corporations engaged in business of the kind
described in this section and in section 25 of the Federal Reserve Act as amended:
Provided further, That no such corporation shall have liabilities outstanding at any
one time upon its debentures, bonds, and promissory notes in excess of ten times its
paid-in capital and surplus. The capital stock of any such corporation may be in-
creased at any time, with the approval of the Federal Reserve Board, by a vote of
two-thirds of its shareholders or by unanimous consent in writing of the shareholders
without a meeting and without a formal vote, but any such increase of capital shall be
fully paid in within ninety days after such approval; and may be reduced in like man-
ner, provided that in no event shall it be less than $2,000,000. No corporation, except
as herein provided, shall during the time it shall continue its operations withdraw or
permit to be withdrawn, either in the form of dividends or otherwise, any portion of its
capital. Any national banking association may invest in the stock of any corporation
organized under the provisions of this section, but the aggregate amount of stock held
in all corporations engaged in business of the kind described in this section and in
section 25 of the Federal Reserve Act as amended shall not exceed 10 per centum of
the subscribing bank’s capital and surplus.
A majority of the shares of the capital stock of any such corporation shall at all
times be held and owned by citizens of the United States, by corporations the control-
ling interest in which is owned by citizens of the United States, chartered under the
laws of the United States or of a State of the United States, or by firms or companies,
the controlling interest in which is owned by citizens of the United States. The pro-
visions of section 8 of the act approved October 15, 1914,! entitled “An act to supple-
ment existing laws against unlawful restraints and monopolies, and for other pur-
poses,” as amended by the acts of May 15, 1916, and September 7, 1916, shall be con-
strued to apply to the directors, other officers, agents, or employees of corporations
organized under the provisions of this section: Provided, however, That nothing herein
contained shall (1) prohibit any director or other officer, agent or employee of any
member bank, who has procured the approval of the Federal Reserve Board from
serving at the same time as a director or other officer, agent or employee of any corpora-
tion organized under the provisions of this section in whose capital stock such member
bank shall have invested; or (2) prohibit any director or other officer, agent, or em-
ployee of any corporation organized under the provisions of this section, who has pro-
cured the approval of the Federal Reserve Board, from serving at the same time as a
director or other officer, agent or employee of any other corporation in whose capital
stock such first-mentioned corporation shall have invested under the provisions of this
section.
1The Clayton Act.
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