NATIONAL BANKING UNDER THE FEDERAL RESERVE SYSTEM

be a member of the board of directors, and shall be chairman of the
board unless the board shall designate another member as chairman.
The Comptroller must be furnished with the original signature of
these officers, as well as notified of the date upon which they were
elected.
8. Initial payment of capital—The law provides that 509, of the
capital stock of a national bank must be paid in cash (not in assets
of another corporation, notes, or other like evidence of debt), and
requires payment of the remaining 509%, in not less than five equal
monthly cash installments although there would be no objection to
the incorporation in the subscription contract of a provision that the
entire amount due on each share shall be paid at the call of the
directors prior to the date on which payment would be required by
law. (See 11 below). When at least 509, of the stock has been paid,
each shareholder having paid not less than one-half on each share subscribed,
 and when all other legal requirements have been complied
with, the president, or cashier, and a majority of the directors,
certify these facts under oath to the Comptroller.
The Comptroller’s office further requires a statement showing the
total amount collected on stock subscriptions. The difference between
 this amount and organization expenditures should be deposited
in a disinterested bank, the president or cashier of which is to certify
to the Comptroller’s office the amount on deposit to the credit of the
organizing bank.

9. Beginning business—When the Comptroller is convinced that
all preliminary conditions regarding the organization of the proposed
bank have been satisfactorily complied with, including the subscription
 and payment for the required amount of Federal reserve bank
stock (See 10 below), he will issue a certificate of authority to commence
 business (generally known as the bank’s charter). This certificate,
 upon its receipt, must be published in a local or county newspaper
 for a period of 60 days. The bank may begin its operations
immediately after it has been officially notified that its certificate has
been issued, and the Comptroller should be notified of the date upon
which business is actually begun.

10. Federal Reserve System—Every national bank automatically becomes
 a member of the Federal Reserve System, and is required to

[29]