FEpErAL RESERVE Act 
(c) With the consent of the Federal Reserve Board to purchase and hold stock or 
other certificates of ownership in any other corporation organized under the provisions 
of this section, or under the laws of any foreign country or a colony or dependency 
thereof, or under the laws of any State, dependency, or insular possession of the United 
States but not engaged in the general business of buying or selling goods, wares, mer- 
chandise or commodities in the United States, and not transacting any business in the 
United States except such as in the judgment of the Federal Reserve Board may be 
incidental to its international or foreign business: Provided, however, That, except with 
the approval of the Federal Reserve Board, no corporation organized hereunder shall 
invest in any one corporation an amount in excess of 10 per centum of its own capital 
and surplus, except in a corporation engaged in the business of banking, when 15 per 
centum of its capital and surplus may be so invested: Provided further, That no corpora- 
tion organized hereunder shall purchase, own, or hold stock or certificates of ownership 
in any other corporation organized hereunder or under the laws of any State which is 
in substantial competition therewith, or which holds stock or certificates of ownership 
in corporations which are in substantial competition with the purchasing corporation. 
Nothing contained herein shall prevent corporations organized hereunder from pur- 
chasing and holding stock in any corporation where such purchase shall be necessary 
to prevent a loss upon a debt previously contracted in good faith; and stock so pur- 
chased or acquired in corporations organized under this section shall within six months 
from such purchase be sold or disposed of at public or private sale unless the time to so 
dispose of same is extended by the Federal Reserve Board. 
No corporation organized under this section shall carry on any part of its business in 
the United States except such as, in the judgment of the Federal Reserve Board, shall 
be incidental to its international or foreign business: And provided further, That except 
such as is incidental and preliminary to its organization no such corporation shall exer- 
cise any of the powers conferred by this section until it has been duly authorized by the 
Federal Reserve Board to commence business as a corporation organized under the 
provisions of this section. 
No corporation organized under this section shall engage in commerce or trade in 
commodities except as specifically provided in this section, nor shall it either directly 
or indirectly control or fix or attempt to control or fix the price of any such commodities. 
The charter of any corporation violating this provision shall be subject to forfeiture in 
the manner hereinafter provided in this section. It shall be unlawful for any director, 
officer, agent, or employee of any such corporation to use or to conspire to use the 
credit, the funds, or the power of the corporation to fix or control the price of any such 
commodities, and any such person violating this provision shall be liable to a fine of not 
less than $1,000 and not exceeding $5,000 or imprisonment not less than one year and 
not exceeding five years, or both, in the discretion of the court. 
No corporation shall be organized under the provisions of this section with a capital 
stock of less than $2,000,000, one-quarter of which must be paid in before the corpora- 
tion may be authorized to begin business, and the remainder of the capital stock of 
such corporation shall be paid in installments of at least 10 per centum on the whole 
amount to which the corporation shall be limited as frequently as one installment at 
the end of each succeeding two months from the time of the commencement of its 
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