CONSOLIDATION OF NATIONAL BANKING ASSOCIATIONS 15 
rowed lawfully from any national banking association under the terms of section 
5200 of the Revised Statutes, as amended: Provided, however, That nothing in 
this paragraph shall be construed to change the character or classes of paper now 
eligible for discount by Federal reserve banks.” 
Suc. 15. That section 22 of the Federal reserve act, subsection (a), paragraph 2 
thereof, be amended to read as follows: 
““(a) No member bank and no officer, director, or employee thereof shall here- 
after make any loan or grant any gratuity to any bank examiner. Any bank 
officer, director, or employee violating this provision shall be deemed guilty of a 
misdemeanor and shall be imprisoned not exceeding one year, or fined not more 
than $5,000, or both, and may be fined a further sum equal to the money so 
loaned or gratuity given. 
‘“ Any examiner or assistant examiner who shall accept a loan or gratuity from 
any bank examined by him, or from an officer, director, or employee thereof, or 
who shall steal, or unlawfully take, or unlawfully conceal any money, note, draft, 
bond, or security or any other property of value in the possession of any member 
bank or from any safe deposit box in or adjacent to the premises of such bank, 
shall be deemed guilty of a misdemeanor and shall, upon conviction thereof in 
any district court of the United States, be imprisoned for not exceeding one year, 
or fined not more than $5,000, or both, and may be fined a further sum equal to 
the money so loaned, gratuity given, or property stolen, and shall forever there- 
after be disqualified from holding office as a national bank examiner.” 
: Sec. 16. That section 24 of the Federal reserve act be amended to read a 
ollows: 
“Smc. 24. Any national banking association may make loans secured by first 
lien upon improved real estate, including improved farm land, situated within its 
Federal reserve district or within a radius of one hundred miles of the place in 
which such bank is located, irrespective of district lines. A loan secured by real 
estate within the meaning of this section shall be in the form of an obligation or 
obligations secured by mortgage, trust deed, or other such instrument upon real 
estate when the entire amount of such obligation or obligations is made or is sold 
to such association. The amount of any such loan shall not exceed 50 per 
centum of the actual value of the real estate offered for security, but no such loan 
upon such security shall be made for a longer term than five years. Any such 
bank may make such loans in an aggregate sum including in such aggregate any 
such loans on which it is liable as indorser or guarantor or otherwise equal to 25 
per centum of the amount of the capital stock of such association actually paid in 
and unimpaired and 25 per centum of its unimpaired surplus fund, or to one-half 
of its savings deposits, at the election of the association, subject to the general 
limitation contained in section 5200 of the Revised Statutes of the United States. 
Such banks may continue hereafter as heretofore to receive time and savings 
deposits and to pay interest on the same, but the rate of interest which such 
banks may pay upon such time deposits or upon savings or other deposits shall 
not exceed the maximum rate authorized to be paid upon such deposits by State 
banks or trust companies organized under the laws of the State wherein such 
national banking association is located.” 
Passed the House of Representatives February 4, 1926. 
Attest: ; 
Wu. Tyver Pace, Clerk. 
The CuairMaN. The meeting will be in order. 1 will state that this 
is a subcommittee of the Senate Committee on Banking and Cur- 
rency, to which has been referred the bill, S. 1782, to amend an act 
entitled, “An act to provide for the consolidation of national banking 
associations,” etc. ; 
This bill is in substance the same as the McFadden bill, H. R. 2, 
which has been passed by the House of Representatives; 1 say in 
substance, because it will appear that while the bills were identical 
when originally drafted and introduced, the House left out one of the 
paragraphs or sections which appears in the Senate bill, and therefore 
In comparing them from and after the tenth section, it will be found 
that the numbering is different owing to the fact that there is a sec- 
tion 10 in the Senate bill which was omitted in the House bill.