NATIONAL BANE ORGANIZATION 
bullion; by loaning money on personal security; and by obtaining, issuing, 
and circulating notes. In carrying on the business commonly known as the 
safe deposit business no such association shall invest in the capital stock 
of a corporation organized under the law of any State to conduct a safe 
deposit business in an amount in excess of 15 per cent. of the capital stock 
of such association actually paid in and unimpaired and 15 per cent. of its 
unimpaired surplus. 
But no association shall transact any business except such as is in- 
cidental and necessarily preliminary to its organization, until it has 
been authorized by the Comptroller of the Currency to commence the 
business of banking. 
6. Directors—The number of directors is provided for in the Articles 
of Association, and cannot be less than five. The number may be 
rigidly fixed, or, on the other hand, a sliding scale may be adopted, in 
which case the provision applying to directors will read: “The 
board of directors shall consist of not fewer than—nor more than— 
shareholders,” etc. 
If the directors are not designated in the Articles of Association, 
the shareholders should proceed to their election after the execution 
of the Organization Certificate. The qualifications for directors are: 
(a) Directors of a bank capitalized at $25,000 must own in their own rights 
shares of capital stock the aggregate value of which must not be less than 
$500; directors of a bank capitalized at more than $25,000 must own in 
their own rights shares of capital stock the aggregate value of which must 
not be less than $1,000. Any director who ceases to own the required number 
of shares becomes disqualified, and the remaining directors elect his suc- 
cessor. 
(b) 
Every director must, during his term of office, be a citizen of the United 
States. 
Not less than three-fourths of the directors must have resided in the state 
in which the bank is located or within fifty miles of the location of the office 
of the association for at least a year prior to their elections, and must be 
residents therein so long as they continue in office. 
(ce) 
Each director is required to take an oath of office after his hoon, 
but cannot take such oath before the execution of the bank 5 on 
ization Certificate. The oath must be sent to the Comptroller’s office, 
where it is filed. 
7. Officers—The directors elect the bank’s president, vice-presidents, 
cashier, and such other officers as may be desired. The president must 
[27]