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

Usage license:: Get license information via the feedback formular.

Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Consolidation

Collection:: Economics Books

NATIONAL BANKING UNDER THE FEDERAL RESERVE SysTEM The Federal law is construed as requiring payment of national bank capital, either original or on account of increase, in cash. Hence, in the case under discussion, the right of the continuing bank to accept stock or assets representing stock of the liquidating bank, and to issue therefor certificates of stock in the continuing bank is not recognized. Since it is illegal for a bank to transfer or hypothecate its Federal Reserve Bank shares, the liquidating bank which figures in a con- solidation must surrender its Federal Reserve stock and the bank resulting from the merger must apply for new stock. As to the allotment of stock when a national bank increases its capital, Federal law makes no provision. An analysis of the common law covering such cases is given under “Capital,” page 44 and 45. 8. Consolidation with both banks liqguidating—Both banks party to a proposed consolidation may be placed in voluntary liquidation, then organize anew under a different corporate title and the new bank acquire, in the manner outlined previously in this chapter, the assets and liabilities of the liquidating banks. This method enables the incorporators to place the stock as they desire. A contract covering the taking over of the liquidating banks’ assets and liabilities must be made, and an examination of the assets to be purchased will be made by a national bank examiner at the expense of the new bank. A bank which is in good faith closing its affairs for the purpose of consolidating with another national bank, is not required to deposit lawful money for its outstanding circulation, providing transfer of the securing bonds is properly authorized, and the circulation lia- bility assumed. Prior to the passage of the McFadden Act of February 25, 1927, a State bank could not under the law be consolidated directly with a national bank. To effect such a consolidation it was necessary for the state bank first to become a national bank, either by reorganiza- tion or conversion, in order that consolidation might be effected be- tween two national banks as provided for by the amendment to the National Bank Act of November 7, 1918 just described (see section 1 above). The recent legislation provides for direct consolidation between a national and a state bank without the necessity of inter- mediate steps. The requirements and procedure are in general the same as for the consolidation of two national banks( see section 1 [ 59 |

Access restriction

Copyright

fullscreen: National banking under the Federal Reserve System

Monograph

Chapter

Table of contents

Download

Monograph

Chapter

This page

Image fragment

Citation links

Citation recommendation