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FEDERAL RESERVE ACT

the Federal Reserve Board, upon the surrender and cancellation
 of all of its holdings of capital stock in the Fed-’ral
 reserve bank: Provided, That the Federal Reserve
Board, in its discretion and subject to such conditions as it
may prescribe, may waive such six months’ notice in individual
 cases and may permit any such State bank or trust
company to withdraw from membership in a Federal reserve
 bank prior to the expiration of six months from the
late of the written notice of its intention to withdraw:
Provided, however, That no Federal reserve bank shall,
3xcept under express authority of the Federal Reserve
Board, cancel within the same calendar year more than
iwenty-five per centum of its capital stock for the purpose
of effecting voluntary withdrawals during that year. All
such applications shall be dealt with in the order in which
they are filed with the board. Whenever a member bank
shall surrender its stock holdings in a Federal reserve bank,
or shall be ordered to do so by the Federal Reserve Board,
inder authority of law, all of its rights and privileges as a
member bank shall thereupon cease and determine, and
after due provision has been made for any indebtedness
due or to become due to the Federal reserve bank it shall
be entitled to a refund of its cash paid subscription with
Interest at the rate of one-half of one per centum per
month from date of last dividend, if earned, the amount
refunded in no event to exceed the book value of the stock
at that time, and shall likewise be entitled to repayment
of deposits and of any other balance due from the Federal
feserve bank.
No applying bank shall be admitted to membership in
2 Federal reserve bank unless (a) it possesses a paid-up
unimpaired capital sufficient to entitle it to become a
national banking association in the place where it is situated
 under the provisions of the National Bank Act, or
(b) it possesses a paid-up, unimpaired capital of at least
850 per centum of the amount sufficient to entitle it to
become a national banking association in the place where
it is situated under the provisions of the National Bank
Act and, under penalty of loss of membership complies
with rules and regulations ‘which the Federal Reserve
Board shall prescribe fixing the time within which and
the method by which the unimpaired capital of such
bank shall be increased ‘out-of net income to equal the
capital which would have been required if such bank had

17