4 
1al 
T= 
1al 
rd 
ch 
a1 
ty 
he 
he 
oT 
SEC. § FEDERAL RESERVE ACT 
such meeting, one whose term of office shall expire at the 
end of two years from said date, and one whose term of 
office shall expire at the end of three years from said date. 
Thereafter every director of a Federal reserve bank 
chosen as hereinbefore provided shall hold office for a 
term of three years. Vacancies that may occur in the 
several classes of directors of Federal reserve banks may 
be filled in the manner provided for the original selection 
of such directors, such appointees to hold office for the 
unexpired terms of their predecessors. 
STOCK ISSUES; INCREASE AND DECREASE OF CAPITAL 
1 
re 
of 
ve 
Je 
3T 
re 
tL 
sd 
Jl 
n 
n 
>] 
5 
1 
7 
Ye 
Tr 
n 
f 
y 
oO 
» 
A 
<3 
0 
Sec. 5. The capital stock of each Federal reserve bank 
shall be divided into shares of $100 each. The out- 
standing capital stock shall be increased from time to 
time as member banks increase their capital stock and 
surplus or as additional banks become members, and 
may be decreased as member banks reduce their capital 
stock or surplus or cease to be members. Shares of the 
capital stock of Federal reserve banks owned by member 
banks shall not be transferred or hypothecated. When 
a member bank increases its capital stock or surplus, 
it shall thereupon subscribe for an additional amount 
of capital stock of the Federal reserve bank of its dis- 
trict equal to six per centum of the said increase, one- 
half of said subscription to be paid in the manner herein- 
before provided for original subscription, and one-half 
subject to call of the Federal Reserve Board. A bank 
applying for stock in a Federal reserve bank at any 
time after the organization thereof must subscribe for 
an amount of the capital stock of the Federal reserve 
bank equal to six per centum of the paid-up capital 
stock and surplus of seid applicant bank, paying therefor 
its par value plus one-half of one per centum a month 
from the period of the last dividend. When the capital 
stock of any Federal reserve bank shall have been in- 
creased either on account of the increase of capital stock 
of member banks or on account of the increase in the 
number of member banks, the board of directors shall 
cause to be executed a certificate to the Comptroller of 
the Currency showing the increase in capital stock, the 
amount paid in, and by whom paid. When a member 
bank reduces its capital stock it shall surrender a pro- 
portionate amount of its holdings in the capital of said