NarioNAL BANK ORGANIZATION 
subscribe to stock in the Federal Reserve Bank of its district to an 
amount equal to 69, of the paid-up capital stock and surplus of the 
national bank in question. Where a bank is just organized, and 
where its capital is not all paid in, or its surplus is being added to, 
further payments of subscription to Federal Reserve Bank stock are 
called for quarterly—April 1, July 1, October 1, and January 1. 
Thus far the Federal Reserve Banks have called in subscription 
payments amounting to only 3%, of the capital and surplus of member 
banks; the remaining 39, remains subject to future call. 
When a national bank is organized, it should at once apply for 
stock in the Federal Reserve Bank of its district, but payment on 
account of the subscription may be deferred until receipt of advice 
of approval of the application by the Federal Reserve Agent and 
Federal Reserve Board. HOWEVER, Subscriptions to, and pay- 
ment for, Federal Reserve Bank stock are now conditions precedent 
to the issuance of charter to a national banking association. The 
Comptroller notifies both the organizing bank and the Federal Re- 
serve Board when the association has complied with preliminary 
legal requirements. 
(See also “Reserve Requirements,” page 76.) 
11. Payment of balance of capital—Although the law makes it 
permissible for 509, of a national bank’s capital stock to be paid 
in five monthly payments, it is by no means obligatory that payment 
shall be so long deferred. All of the capital stock, or a portion of 
it exceeding the first installment of 509, may be paid in advance. 
Where the shareholders are granted the additional five months in 
which to complete payment, installments are due monthly from the 
date of the issuance of the bank’s certificate to begin business. These 
deferred payments must be paid in money, as was the case with the 
first 509, and each payment must be certified to the Comptroller 
by the president or cashier, under seal of the bank. 
The law makes special provision for proceedings where a share- 
holder defaults in his payments. 
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