FepErRAL RESERVE AcT 
No member of the Federal Reserve Board shall be an officer or director of any 
corporation organized under the provisions of this section, or of any corporation en- 
gaged in similar business organized under the laws of any State, nor hold stock in any 
such corporation, and before entering upon his duties as a member of the Federal 
Reserve Board he shall certify under oath to the Secretary of the Treasury that he has 
complied with this requirement. 
Shareholders in any corporation organized under the provisions of this section shall 
be liable for the amount of their unpaid stock subscriptions. No such corporation shall 
become a member of any Federal reserve bank. 
Should any corporation organized hereunder violate or fail to comply with any of 
the provisions of this section, all of its rights, privileges, and franchises derived here- 
from may thereby be forfeited. Before any such corporation shall be declared dis- 
solved, or its rights, privileges, and franchises forfeited, any noncompliance with, or 
violation of such laws shall, however, be determined and adjudged by a court of the 
United States of competent jurisdiction, in a suit brought for that purpose in the dis- 
trict or territory in which the home office of such corporation is located, which suit 
shall be brought by the United States at the instance of the Federal Reserve Board 
or the Attorney General. Upon adjudication of such noncompliance or violation, 
each director and officer who participated in, or assented to, the illegal act or acts, 
shall be liable in his personal or individual capacity for all damages which the said 
corporation shall have sustained in consequence thereof. No dissolution shall take 
away or impair any remedy against the corporation, its stockholders. or officers for any 
liability or penalty previously incurred. 
Any such corporation may go into voluntary liquidation and be closed by a vote of 
its shareholders owning two-thirds of its stock. 
Whenever the Federal Reserve Board shall become satisfied of the insolvency of any 
such corporation, it may appoint a receiver who shall take possession of all of the 
property and assets of the corporation and exercise the same rights, privileges, powers, 
and authority with respect thereto as are now exercised by receivers of national banks 
appointed by the Comptroller of the Currency of the United States: Provided, however, 
That the assets of the corporation subject to the laws of other countries or jurisdictions 
shall be dealt with in accordance with the terms of such laws. 
Every corporation organized under the provisions of this section shall hold a meeting 
of its stockholders annually upon a date fixed in its by-laws, such meeting to be held 
at its home office in the United States. Every such corporation shall keep at its home 
office books containing the names of all stockholders thereof, and the names and ad- 
dresses of the members of its board of directors, together with copies of all reports 
made by it to the Federal Reserve Board. Every such corporation shall make reports 
to the Federal Reserve Board at such times and in such form as it may require; and 
shall be subject to examination once a year and at such other times as may be deemed 
necessary by the Federal Reserve Board by examiners appointed by the Federal 
Reserve Board, the cost of such examinations, including the compensation of the 
examiners, to be fixed by the Federal Reserve Board and to be paid by the corporation 
examined. 
The directors of any corporation organized under the provisions of this section may, 
semiannually, declare a dividend of so much of the net profits of the corporation as 
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