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SECs. 7, § FEDERAL RESERVE ACT 
1° 
its banking operations as provided in this section, the 
board of directors shall cause to be executed a certificate 
to the Comptroller of the Currency showing such redue- 
tion of capital stock and the amount repaid to such bank. 
DIVISION OF EARNINGS 
Sec. 7. After all necessary expenses of a Federal re- Asamenadby 
serve bank have been paid or provided for, the stock- rn Lh 
holders shall be entitled to receive an annual dividend 100. 
of six per centum on the paid-in capital stock, which 
dividend shall be cumulative. After the aforesaid divi- 
dend claims have been fully met, the net earnings shall 
be paid to the United States as a franchise tax except 
that the whole of such net earnings, including those for 
the year ending December thirty-first, nineteen hundred 
and eighteen, shall be paid into a surplus fund until it 
shall amount to one hundred per centum of the subscribed 
capital stock of such bank, and that thereafter ten per 
centum of such net earnings shall be paid into the surplus. 
The net earnings derived by the United States from 
Federal reserve banks shall, in the discretion of the 
Secretary, be used to supplement the gold reserve held 
against outstanding United States notes, or shall be 
applied to the reduction of the outstanding bonded 
indebtedness of the United States under regulations 
to be prescribed by the Secretary of the Treasury. 
Should a Federal reserve bank be dissolved or go into 
liquidation, any surplus remaining, after the payment 
of all debts, dividend requirements as hereinbefore 
provided, and the par value of the stock, shall be paid 
to and become the property of the United States and shall 
be similarly applied. 
Federal reserve banks, including the capital stock and 
surplus therein, and the income derived therefrom shall 
be exempt from Federal, State, and local taxation, 
except taxes upon real estate. 
Sec. 8. Section fifty-one hundred and fifty-four, United 
States Revised Statutes, is hereby amended to read as 
follows: 
Any bank incorporated by special law of any State 
or of the United States or organized under the general 
laws of any State or of the United States and having an 
unimpaired capital sufficient to entitle it to become a 
national banking association under the provisions of the