1) 
FEDERAL RESERVE ACT Sec. 25 (8) 
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 corpora- 
tion 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 sec- 
tion, all of its rights, privileges, and franchises derived 
herefrom may thereby be forfeited. Before any such 
corporation shall be declared dissolved, or its rights, 
privileges, and franchises forfeited, any noncompliance 
with, or violation of such laws shall, however, be deter- 
mined and adjudged by a court of the United States of 
competent jurisdiction, in a suit brought for that purpose 
in the district 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 adjudi- 
cation 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 cor- 
poration, its stockholders, or officers for any liability or 
penalty previously incurred. 
Any such corporation may go into voluntary liqui- 
dation 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