Narronan BANKING UNDER THE FEDERAL RESERVE SystEM 
Banks becoming members of the Federal Reserve System under authority of this 
section shall be subject to the provisions of this section and to those of this act which 
relate specifically to member banks, but shall not be subject to examination under the 
provisions of the first two paragraphs of section fifty-two hundred and forty of the 
Revised Statutes as amended by section twenty-one of this act.l Subject to the pro- 
visions of this act and to the regulations of the board made pursuant thereto, any bank 
becoming a member of the Federal Reserve System shall retain its full charter and 
statutory rights as a State bank or trust company, and may continue to exercise all 
corporate powers granted it by the State in which it was created, and shall be entitled 
to all privileges of member banks: Provided, however, That no Federal reserve bank shall 
be permitted to discount for any State bank or trust company notes, drafts, or bills of 
exchange of any one borrower who is liable for borrowed money to such State bank or 
trust company in an amount greater than that which could be borrowed lawfully from 
such State bank or trust company were it a national banking association. The Federal 
reserve bank, as a condition of the discount of notes, drafts, and bills of exchange for 
such State bank or trust company, shall require a certificate or guaranty to the effect 
that the borrower is not liable to such bank in excess of the amount provided by this 
section, and will not be permitted to become liable in excess of this amount while such 
notes, drafts, or bills of exchange are under discount with the Federal reserve bank. 
It shall be unlawful for any officer, clerk, or agent of any bank admitted to member- 
ship under authority of this section to certify any check drawn upon such bank unless 
the person or company drawing the check has on deposit therewith at the time such 
check is certified an amount of money equal to the amount specified in such check. 
Any check so certified by duly authorized officers shall be a good and valid obligation 
against such bank, but the act of any such officer, clerk, or agent in violation of this 
section may subject such bank to a forfeiture of its membership in the Federal Reserve 
System upon hearing by the Federal Reserve Board.l 
Federal Reserve Board 
As amended by acts approved Mar. 3, 1919 (40 Stat., 1314, chap. 101); June 3, 1922 
(42 Stat., 620, chap. 205); Feb 6, 1923. 
Sec. 10. A Federal Reserve Board is hereby created which shall consist of eight 
members, including the Secretary of the Treasury and the Comptroller of the Cur- 
rency, who shall be members ex officio, and six members appointed by the President of 
the United States, by and with the advice and consent of the Senate. In selecting the 
six appointive members of the Federal Reserve Board, not more than one of whom shall 
be selected from any one Federal reserve district, the President shall have due regard 
to a fair representation of the financial, agricultural, industrial and commercial inter- 
ests, and geographical divisions of the country. The six members of the Federal Re- 
serve Board appointed by the President and confirmed as aforesaid shall devote their 
entire time to the business of the Federal Reserve Board and shall each receive an 
annual salary of $12,000, payable monthly, together with actual necessary traveling 
iAmending sec. 21 of this act. 
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