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3EC. 9 FEDERAL RESERVE ACT 
t5 
application shall be for the same amount of stock thatimw, chap. 175): 
the applying bank would be required to subscribe to as Jae 
national bank. The Federal Reserve Board, subject He Sint. 514 
fo the provisions of this Act and to such conditions as ™™ B18. 
it may prescribe pursuant thereto may permit the apply- 
er bank to become a stockholder of such Federal reserve 
ank. 
Any such State bank which, at the date of the approval 
of this Act, has established and is operating a branch or 
branches in conformity with the State law, may retain 
and operate the same while remaining or upon becoming 
a stockholder of such Federal reserve bank; but no such 
State bank may retain or acquire stock in a Federal re- 
serve bank except upon relinquishment of any branch or 
branches established after the date of the approval of this 
Act beyond the limits of the city, town, or village in which 
the parent bank is situated. 
In acting upon such application the Federal Reserve 
Board shall consider the financial condition of the apply- 
Ing bank, the general character of its management, and 
whether or not the corporate powers exercised are con- 
Sstent with the purposes of this act. 
Whenever the Federal Reserve Board shall permit the 
applying bank to become a stockholder in the Federal 
reserve bank of the district its stock subscription shall 
be payable on call of the Federal Reserve Board, and 
stock issued to it shall be held subject to the provisions 
of this act. 
All banks admitted to membership under authority of 
this section shall be required to comply with the reserve 
and capital requirements of this act and to conform to 
those provisions of law imposed on national banks which 
prohibit such banks from lending on or purchasing their 
own stock, which relate to the withdrawal or impairment 
of their capital stock, and which relates to the payment 
of unearned dividends. Such banks and the officers, 
agents, and employees thereof shall also be subject to the 
provisions of and to the penalties prescribed by section 
fifty-two hundred and nine of the Revised Statutes,” and 
shall be required to make reports of condition and of the 
payment of dividends to the Federal reserve bank of 
which they become a member. Not less than three of 
1 For the text of sec. 5200, Revised Statutes, see Appendix, p. 87. 
416392°—31———2