Narionarn BANKING UNDER THE FEDERAL RESERVE SysTEM 
Any member bank may sell securities or other property to any of its directors, or to 
a firm of which any of its directors is a member, in the regular course of business on 
terms not more favorable to such director or firm than those offered to others, or when 
such sale is authorized by a majority of the board of directors of a member bank to be 
evidenced by their affirmative vote or written assent: Provided, however, That nothing 
in this subsection contained shall be construed as authorizing member banks to pur- 
chase or sell securities or other property which such banks are not otherwise authorized 
by law to purchase or sell. 
(e) No member bank shall pay to any director, officer, attorney, or employee a 
greater rate of interest on the deposits of such director, officer, attorney, or employee 
than that paid to other depositors on similar deposits with such member bank. 
(f) If the directors or officers of any member bank shall knowingly violate or permit 
any of the agents, officers, or directors of any member bank to violate any of the pro- 
visions of this section or regulations of the board made under authority thereof, every 
director and officer participating in or assenting to such violation shall be held liable 
in his personal and individual capacity for all damages which the member bank, its 
shareholders, or any other persons shall have sustained in consequence of such vio- 
lation. 
Liability of National Bank Stockholders 
Sec. 23. The stockholders of every national banking association shall be held 
individually responsible for all contracts, debts, and engagements of such association, 
each to the amount of his stock therein, at the par value thereof in addition to the 
amount invested in such stock. The stockholders in any national banking association 
who shall have transferred their shares or registered the transfer thereof within sixty 
days next before the date of the failure of such association to meet its obligations, or 
with knowledge of such impending failure, shall be liable to the same extent as if they 
had made no such transfer, to the extent that the subsequent transferee fails to meet 
such liability; but this provision shall not be construed to affect in any way any 
recourse which such shareholders might otherwise have against those in whose names 
such shares are registered at the time of such failure. 
Loans on Farm Lands 
As amended by act approved Sept. 7, 1916 (39 Stat., 752, chap. 461); act approved Feb. 
25, 1927. 
Sec. 2). 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 
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