National banking under the Federal Reserve System

Bibliographic data

Monograph

Identifikator:: 1757542345

URN:: urn:nbn:de:zbw-retromon-135097

Document type:: Monograph

Title:: National banking under the Federal Reserve System

Place of publication:: New York

Publisher:: The National City Bank of New York

Year of publication:: 1927

Scope:: 154 S.

Digitisation:: 2021

Collection:: Economics Books

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Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Succession of a state bank by a national bank

Collection:: Economics Books

NATIONAL BANKING UNDER THE FEDERAL RESERVE SysTEM The law does not provide for the conversion of private banks into national banks. If it is desired to effect a re-organization, as in the case of a state bank liquidated for that purpose, an organization from the beginning must be undertaken as provided in the previous chapter. 2. Comversion—In converting a state bank into a national bank, there is not a dissolution of the state institution, but merely a change of title and whatever re-arrangements in the converting bank’s affairs are necessary to make its banking practices conform to the National Bank and Federal Reserve Laws. The national bank is liable for all contracts of the former state institution, and may enforce all previous contracts. The preliminary conditions necessary to the initial move where a state bank wishes to convert into a national bank are: (a) That the laws of the state in which the bank is located shall not forbid con- version of a state into a national banking association. That the bank’s unimpaired capital shall be sufficient to entitle it to become a national banking association (see “Capital,” page 23). Where it is neces- sary to increase the capital stock of a state bank to make it eligible as a national bank, or change the par value of shares, the change must be legally effected under the laws of the state, and a certificate to this effect must be obtained from the proper state authority. (¢) That shareholders owning at least 519, of the state bank’s stock shall have voted in favor of the proposed conversion. b) (d) That the bank shall comply with provisions of the National Bank Act relating to branch Banks (see subsequent chapter on Branches). These conditions obtaining, the bank notifies the Comptroller of its purpose to enter the national banking system, asks for a reservation of title for 60 days, and agrees that any assets which cannot be legally held by a national bank will be disposed of before authoriza- tion to begin business as a national bank is given (see “Loans,” pages 60-64). Form for this application is furnished by the Comp- troller. Application to convert into a national bank is followed by an exam- ination of the converting bank, the expense of which must be met by the bank in the form of a draft to accompany the examiner’s report. When the Comptroller has approved the application, he will so notify the bank, and a meeting of its shareholders should be called, at which a resolution should be adopted by a vote representing at least 519, of [(3Q 1

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