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(letterhead of) THE C0I4PTH0LLKR OF THE CURKMCY Keahinfcton March 29, 1940 Honorable M a r r i n e r 8 . l e o l e a , Chairman, Board o f Govereore, Federal Reaerre Syaten, l a a h i n g t o n , D. C. My deer M r . Chaixman: for your i n f o m e t ion there l a tranan.it ted to you herewith oopy of the following correspondence exchanged w i t h the Benk o f America Mat ion a l Truat and Seringa Aaaociation: March 25, 1940 - L e t t e r from Mr. R. P . A. ETcrerd, S e c r e t a r y , to the Comptroller o f the Currency Merch £8, 1940 - Wire fro® M r . R. P . A. A w a r d , S e c r e t a r y , to the Comptroller March 28, 1940 - Night l e t t e r from Mr. R. P . A . . I r e r e r d , Secretary, to the Comptroller March 29, 1940 - L e t t e r from the Comptroller to Mr. i T e r e r d . Tory e i n c e r e l y yours, (aigned) Preaton Delano Comptroller. B A R K OF AMERICA national Trust sad Sayings Association S M FRANCISCO HEADQUARTERS A Can Francisco, California March 25, 1040 Couptrollsr of ths Currency, Treasury Department, Washington, D. C. Dear Siri I an enclosing certified eaeerpts from ninnies of proceedings of meetings of the Board of Directors of Bank of Anerlta Hstional Trust and Barings Association held on March 12, 1940, and on March 14, 1940. Respectfully, (Signed) R. P. A* EVERARD Secretary of the Beard of Directors* Enclosures* VIA AIR MAIL The President reported on M e recent v i s i t to Washington i n company with Counsel, end the r e s u l t s of the several conferences which he end Counsel hau had w i t h noubers of the C o m p t r o l l e r s o f f i c e , the Treasury Department, the 3T. D. I . C . , and the Board of Governors of the Federal Beserve System. He road to the nesting the following ccaauainicatione: L e t t e r addressed to the Comptroller of the Currency by 0 . K. Cushing under date of February 14* 1940I L e t t e r ad rossed to 0 . K. Cushing by C. B. Upham, Deputy Comptroller of the Currency, under' date of February 16, 1940$ L e t t e r addressed t o C. B. TJphea, Deputy Comptroller of the Currency, by L» Giannini, President, under date of February 20, 1940. Be also read a memorandum of requirements with respect to Bank of America National Tiust and Savings Association presented by the Oonptroller 1 s o f f i c e a t the f i r s t meeting, and the Bank* a response to such memorandum, Bo then road a l e t t e r addressed to h i a , as President, by Preston Delano, Comptroller of the Currency, under date of February 26, 1940» and a memorandum of requirement® of the Comptroller of the Currency which accompanied said l e t t e r of February 26, 1940, as a f i n a l proposal. The President referred t o a meeting on March 8 , 1940, i n the o f f i c e of the TJfeder-£ecretery of the Treasury, i n which he, Mr* B o l l , Under-Secretary of the Treasury; Mr. Cushing, Counsel f o r the Bank, and Mr* Foley, Counsel f o r the Comptroller*s O f f i c e , p a r t i c i p a t e d , and he road to the meeting a copy of a report of the meeting prepared by the Treasury Department* The President referred to the proposed new lemie of stock by the Bank and led a discussion on the subject of an underwriting for such issue* Be presented a statement I n d i c a t i n g the entlBiated earnings of the Bank during the present y e a r , end s forecast of future earnings* oyer a considerable period, i n which provision isas made f o r the cost wf servicing the no* i s ue* The requirements of the Comptroller of the Currency as preeentea by the President « * r e discussed, end, following the suggestion of the President, on notion duly made, seconded and c a r r i e d , a committee composed of the following members was appointed f o r the purpose of analyzing end considering said requirements, studying proposals f o r underwriting the new Issue of c a p i t a l stock, and waking recomcsmdatlonc r e l a t i n g thereto to the Board of Directors a t i t s next meeting, t o be shortly convened! Marshal Bala Loon Bocqueras D r . 6 . £* C a g l i c r i L . M. Giannini C* M. Hawkins H. A. ttaszera feu Wallace Me i n I , R. P* A. ETSRAKD, the duly elected and q u a l i f i e d Secretary of BASK OF AMERICA MATI0SAL THJ3T AMD flATIMGE ASSOCIATION, a National Banking Association organised end e x i s t i n g under and by v i r t u e of the laws of ths United S t a t e * of Amerlea, end having i t s p r i n c i p a l piece of buslnees i n the C i t y end County of Sen Francisco i n the State of C a l i f o r n i a , hereby c e r t i f y and declare that the foregoing i s e true end correct excerpt fro© the nlnutes of the proceedings of the Pegular Monthly Meeting o f the Board of Directors o f said Association held on March 1£, 1940. IK fflWlfcS «HXFH)F, I have hereunto set ay hand and a f f i x e d the seal of said Association on t h i s » t h dey of March, 1940. (Signed) R. P. A. fcVzFAJ© Secretary of BANK OF AFRICA NATIONAL TEUST AND SAVINGS ASSOCIATION The P r e s i d e n t r e a d t o t h e meeting s e v e r a l communications r e c e i v e d from t h e Chairman o f the Board r e l a t i n g t o t h e i s s u e s between the Bank and t h e C o m p t r o l l e r o f the C u r r e n c y , and r e q u e s t e d Mr. Marshal H a l e , Chairman o f the S p e c i a l Committee a p p o i n t e d by t h e Board o f D i r e c t o r s on March 12, 1940, t o r e n d e r h i s r e p o r t on t h e a c t i o n t a k e n by t h e committee a t i t s meetings h e l d on March 15, 1940. Mr. Hale thereupon r e a d t o the m e e t i n g t h e r e p o r t o f t h e c o m m i t t e e , a copy o f which i s as f o l l o w s : "San F r a n c i s c o , C a l i f o r n i a March 15, 1940 To: The Board o f D i r e c t o r s , Bank o f America N. T . & S: A . , San F r a n c i s c o , C a l i f o r n i a . Gentlemen: The Committe.e a p p o i n t e d by t h e Board o f D i r e c t o r s a t i t s R e g u l a r M e e t i n g h e l d on March 12, 1940, f o r t h e purpose o f a n a l y z i n g and c o n s i d e r i n g t h e l a t e s t r e q u i r e m e n t s o f the C o m p t r o l l e r o f t h e Currency p r e s e n t e d t o the Board o f D i r e c t o r s a t s a i d meeting by t h e P r e s i d e n t , h e l d a m e e t i n g t h i s > d a y and d i s c u s s e d t h e s u b j e c t . The Committee-recommend t h e acceptance o f t h e r e q u i r e m e n t s o f t h e C o m p t r o l l e r o f t h e Currency as p r e s e n t e d t o t h e m e e t i n g , and t o t h e Board o f D i r e c t o r s , a f t e r t a k i n g i n t o c o n s i d e r a t i o n t h e recommendation of t h e Chairman o f t h e Board and the. statement o f t h e P r e s i d e n t o f t h e Bank t h a t t h e acceptance o f t h e program o f r e q u i r e m e n t s was s t r o n g l y recommended by Messrs. E c c l e s , McKee, Crowley, Delano, ana Jones. The Committee d i s c u s s e d the d e s i r a b i l i t y o f g i v i n g p u b l i c i t y t o the C o m p t r o l l e r ' s r e q u i r e m e n t s , and now recommend t h a t t h e r e q u i r e m e n t s of t h e C o m p t r o l l e r be r e l e a s e d t o the p r e s s f o r p u b l i c a t i o n . I n a r r i v i n g at this d e c i s i o n the Committee has t a k e n i n t o c o n s i d e r a t i o n t h e recommendation o f t h e Chairman o f t h e Board t h a t such procedure be f o l l o w e d i n keeping w i t h t h e P r e s i d e n t ' s statement t o t h e s t o c k h o l d e r s a t t h e i r l a s t Annual M e e t i n g . Respectfully, MARSHAL HALE Chairman - S p e c i a l C o m m i t t e e . " M r . Hale i n f o r m e d the Board i n some d e t a i l o f t h e c o m m i t t e e ' s d i s c u s s i o n s ; and f o l l o w i n g a g e n e r a l d i s c u s s i o n b y t h e Board o f t h e c o m m i t t e e ' s r e p o r t , and the s u b j e c t t h e r e o f , i t was r e g u l a r l y moved, seconded, and c a r r i e d , t h a t s a i d r e p o r t be adopted and t h e r e q u i r e m e n t s r e f e r r e d t o t h e r e i n be approved. I , R. P. A. EVERARD, t h e d u l y e l e c t e d and Q u a l i f i e d S e c r e t a r y o f BANK OF AMERICA NATIONAL TRUST AND SAVINGS ASSOCIATION, a N a t i o n a l Banking A s s o c i a t i o n o r g a n i z e d and e x i s t i n g under and by v i r t u e o f t h e laws o f t h e U n i t e d S t a t e s o f A m e r i c a , and h a v i n g i t s p r i n c i p a l p l a c e o f b u s i n e s s i n t h e C i t y and County o f San F r a n c i s c o i n the S t a t e o f C a l i f o r n i a , hereby c e r t i f y and d e c l a r e t h a t t h e f o r e g o i n g i s a t r u e and c o r r e c t e x c e r p t from t h e m i n u t e s o f t h e proceedings o f an Adjourned R e g u l a r M e e t i n g o f t h e Board o f D i r e c t o r s o f s a i d A s s o c i a t i o n h e l d on March 14, 1940. IN WITNESS WHEREOF, I have h e r e u n t o s e t my hand and a f f i x e d t h e s e a l o f s a i d A s s o c i a t i o n on t h i s 2 5 t h day o f March 1940. / S / R. P , A. EVERARD S e c r e t a r y o f BANK OF AMERICA NATIONAL TRUST AND SAVINGS ASSOCIATION PO 7 T&£ PAID PHI SAN IBAKCXfiCO CAL S56P ITch 28 1940 1940 39 H i f 07 ffiN PPS5T0N DSLA80 WAGHN IC CSRTUm* COPY OJ HUfOTFS APPROVBIO TOUB PROGRAM OF MARCS $ J AIRMAILED TO YOU HABGH 25, PLEASE O H C D R THIS IXHK AS A OSCK N APPLICATION FOE Y O APPROYAL OF HIE PROPOSED IXCRTA * Of O R CAPITAL FJHTe AS PROYII25D HI THF lOKOTRESQiraS. R P A liTEHAHD 5SCKETAEY W K 0 T AXOTCA HT A 7 SA 3 TD 702P TREASURY DEPABTIOSHT MARCH 29, 1940 3 U 7 A. U. SAN H&A&CI3C0 CALIF. UABCH 28, 1940 HON PRESTON DELA.HO CatPTBOLUER OF THE CURREKCt £E HAVE TODAY WIRED RIC. INSTRUCTION FIKANCE CORPORATION AS FOLLOWS OUOTEt PURSUANT TO AN U' DERSTAMDIM* OTH THE M M M H m M OF THE I I I — IWII APPLICATION IS HEREBY UADE OH BEHALF OF BANK OF AIOSRICA NT & SA TO YOU FOP a cc»aarmE>rr TO PURCHASE OR LEND UPOU PREFERRED STOCK OF THE BANK UP TO T H i m lilLLIJM DOLLAR IN CASE THE BANK SHOULD HAVE QCGA5I0* TO CALL UPOK YOU FOR THAT PURPOSE. AS W MAY OFFER THE E REFKRR&D STOCK THROUGH AN UNDERWRITERS SYNDICATE i E REQUEST THAT HQ PUBLICITY BE GIVEN TO THIS APPLICATION. ON MARCH 16 THE BANK LEFT OTH YOUR LEGAL m AKfMERf PRO OSZD AMEMIliENTS TO ITS ARTICLES OF ASSOCIATION PROVIDING FOR THE ISSUANCE QF SIX HUNDRED THOUSAND SHARKS OF PREFERRED STOCK OF A PAR VALUE OF 112.50 PER SHARE TTHICH IT IS PROPOSED TO SELL AT FIFTY DOLLARS PER SHARE THUS PROVIDING ADDITIONAL CAPITAL OF SEVKfi MILLION FIVE HUNDRED THOUSAND DOLLARS AND ADDITIONAL SURPLUS OF TftENTY T*0 MILLION FIVE HUNDRED THOUSAND. SOME SUGGESTED CHANGES IN THE PROPOSED ARTICLES HAVE B m i AIR FOILED TO YOf FROM SAN FRAN CISCO TODAY. ACTIOS ON THIS RSQUS8T PRIOR TO APRIL FIRST. W1 SHALL APPRECIATE R. P. A. EVERARD SICRT'TARY BANK OF AMERICA MT k SA UNQUOTE* R P A EVERARD SECRETARY BANK OF AMERICA NT & SA ^Ot >!arch 29, 1940 R. P. A« i*vejr«rd, Secretary, Board of Directors, Bank of America National Trust and Barings Association, San Francisco, C a l i f o r n i a . Dear Mr. G e r a r d I Permit me to acknowledge r e c e i p t of your l e t t e r oated Mareh 25, 1940, enclosing c e r t i f i e d excerpts from the minutes of the proceedings of meetings of the Board of Directors of Bank of America National Trust and Savings Association held on Mareh 12, 1940, and on -larch 14, 1940* I t i s noted t h a t while the *Kequirementa of the Comptroller of the Currency* are r e f e r r e d to i n the approving r e s o l u t i o n pas ted by y >ur Boanl, the t e x t of the document i n question i s not spread upon the minutes* Inasmuch as there ware several d r a f t s before the f i n a l one of March 6, 1940, wns adopted, I believe i t w o l d bo desirable to hare your next mooting of the Board spread upon the mimites the t e x t of these f i n a l "Requirements of the Comptroller of the Currency* vhich was ap roved a t your mooting on March 14, 1940, and which w8s l a t e r released to the press by your d i r e c t o r a t e . This w i l l prevent any confusion, and I would appreciate having a copy of the minutes which thus amplify your resolution of - a r c h 14, 1940. Tory t r u l y yours, Preston Delano Comptroller
