12 CONSOLIDATION OF NATIONAL BANKING ASSOCIATIONS 
approval of this act: And provided further, That all branches of such associations 
shall be subject to the general supervisory powers of the Comptroller of the 
Currency and shall operate under such regulations as he may prescribe: And 
provided further, That it shall be unlawful for any such association to establish 
a branch in any State subsequent to the enactment hereafter by such State of 
a statute which shall deny to all banks created by or existing under the laws of 
such State the right to establish branches within the corporate limits of the 
municipality wherein such banks are located: And provided further, That no 
provision of this section shall be construed to modify or repeal any provision of 
section 5155, Revised Statutes, or of the act of November 7, 1918, as respectively 
amended by this act. 
“The term ‘branch’ or ‘branches’ as used in this section shall be held to in- 
clude any branch bank, branch office, branch agency, additional office, or any 
branch place of business located in any State or Territory of the United States or 
in the District of Columbia at which deposits are received or checks cashed or 
money loaned.” 
“This section shall not be construed to amend or repeal section 25 of the 
Federal reserve act, as amended, authorizing the establishment by national 
banking associations of branches in foreign countries or dependencies or insular 
possessions of the United States.” 
Sec. 9. That the first paragraph of section 9 of the Federal reserve act be 
amended by adding at the end thereof two provisions and a new paragraph to 
read as follows: 
“ Provided, That on and after the approval of this act it shall be unlawful for 
any such applying bank to become a stockholder of such Federal reserve bank 
except upon condition that such applying bank relinquish any branches which 
it may have in operation beyond the corporate limits of the municipality in which 
the parent bank is located, and it shall be unlawful for any such applying bank in 
any State which does not, at the time of the approval of this act, permit State 
banks created by or existing under the laws of such State, to have branches within 
the limits of municipalities in such State, to become such a stockholder of such 
Federal reserve bank except upon condition that such applying bank relinquish 
any branches which it may have established subsequent to the approval of this 
act: Provided further, That is shall be unlawful for any member bank to establish 
a branch in any State which does not, at the time of the approval of this act, 
permit banks created by or existing under the laws of such State to establish 
branches or to establish in any State, after the approval of this act, a branch 
beyond the corporate limits of the municipality in which such bank is located: 
And provided further, That it shall be unlawful for any such member bank to 
maintain in operation any branch within the corporate limits of such a munici- 
pality where the population by the last decennial census is less than twenty-five 
thousand, or to maintain more than one branch where such population is not less 
than twenty-five thousand and not more than fifty thousand, or to maintain more 
than two branches where such population is more than fifty thousand and not 
more than one hundred thousand, but these restrictions as to number shall not be 
construed to require the relinquishment of any branches acquired prior to the 
approval of this act.’ 
“The term ‘branch or branches’ as used in this section shall be held to include 
any branch bank, branch office, branch agency, additional office, or any branch 
place of business located in any State or Territory of the United States or in the 
District of Columbia at which deposits are received or checks cashed or money 
loaned, but shall not include any branch established in a foreign country or 
dependency or insular possession of the United States.” 
Sec. 10. That section 5200 of the Revised Statutes of the United States, as 
amended, be amended to read as follows: 
“Sec. 5200. The total obligations to any national banking association of any 
person, copartnership, association, or corporation shall at no time exceed 10 per 
centum of the amount of the capital stock of such association actually paid in 
and unimpaired and 10 per centum of its unimpaired surplus fund. The term 
‘obligations’ shall mean the direct liability of the maker or acceptor of paper 
discounted with or sold to such association and the liability of the indorser, 
drawer, or guarantor who obtains a loan from or discounts paper with or sells 
paper under his guaranty to such association and shall include in the case of 
obligations of a copartnership or association the obligations of the several mem- 
bers thereof. Such limitation of 10 per centum shall be subject to the following 
exceptions: