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B mm v TITLE i n
OF FHOV
'
301*
:
TO
13oS ( ^ , 5357 and 5 . l ? l
,
• 51, U M I4 4 aft«?r DM Vtfli "shall not
include", insert the following* "(except for the purposes of section
2SA of th© I edoral
&s®rm *ei, M amended) any corporation a l l of
the stock of whis>- i s oimed by ifee ffftitti rtatec of America or%
(ls«otet The words >?©xo«pt f o r %kt r u r p o s e g of s e c t i o n
of th© f e d e r a l i:.eserw A c t , M amended," a r e added i n
o r d e r t h a t t h e r e s t r i c t i o n s of s e o t i o n 2SA uvon lo&ns b ^
member bonks t o a f f i l i a t e s tad holdin.r ooiispftiiy a.ffiliat©e
w i l l oontln\a« t o b e a p p l i c a b l e t o a o e i d e u t s l haldinr. company a f f i l i a t e s *
f h i o t h e r word© added by t h e anendnBent
ar© f o r t h e purpose of a e n f l n A a g t h e p r e s e n t ixEterpreta*
t i o n of the law t o t h e o f f e o t t h a t t h e Heo^nstruetion PlttMMNI
Corporation and o t h a r c o r p o r a t i o n s whose etook i s IMMi by
th© Ignited S t a t e s a r e n o t i n c l u d e d w i t h i n th© term "britilim
oompaay affiliate"*)
Ceetlone- 3lO(a) .and {b}»
t r i t e out a l l of subsections (a)
and (b) of (MMHAM vslQ (p&^e 86, line 20 through pare 57, line 9)
ami insert la lieu thereof the following*
-'•^C* 310(a)« The f i r r t parurr^ph of section 5144 of the
i
-.. •-.atut©8# as amended, (tT«f*0«f 5;;ipr» VII# t i t l e IS, seo* H ) i s
to read ac follows*
w
In a l l ©leetioaa oll directors t eaeh shareholder shall have th»
right to vote the aumber of shares owned, by him for as naay perform as
there are directors to b© ©looted, or to emulate swoh shares ana ;-ive
on© candidate as many votaa as the mimber of directors
ir»ultipli#d b;-
th© number of his shares shall ©qual, or t e distribute them on th© same
principle asK>8£ m many candidates as he shall think : i t j and in
a l l o'-.her questions at ree^tln^* of shareholders, each shareholder
shall be entitled t o on© vote on ea-ob. sharr %t ftMk held If hltt|
except that (1) this shall not be construed RP limiting the
rights of holders of preferred i t till Sttfcv tha WNH and
of artlole® of association, or amendments thereto, adopted tmrsuaat to the provisions of & action 302(a) f>f the iMMTgWy
A#t of March 9, 19SS, as amended, (2) in the ©leetion of directors,
nhares of i t s ©mi 8took held by a matioaal bank as
sols trust«**
•«"h®ther registered in i t s owii nasi# at- such trustee or in the
of ite nomiiste, ^iall not be voted by the f f j j W y j owB«
under the M m of UH trust the
manner in. whioh suoh shar^p
shall b« T©t«d may "b© determined by a donor or beneficiary of
trust and. wml©s!? sueh donor or besAfiolary aotuolly directs how
shares shall be Toted, (3) sharer- of i t s own stock h«ld sgf a national
bank and on# or mor© p«r«#Hl a« trasst#ee may b« ?oted by guah other
person or porsonss ai? trast«es # in the sams manner as if he or they
wer« the sole trusted t aad (4) shares controlled hj any holding*
aoapany affiliate (NT • national bank shall not be trotad unless*
S*eh holdins" eonepansr affiliate slmll har© f i r s t obtained a Totinf
permit a;; hereinafter provided, -vbioh permit is in fcroe at the tiaae
suoh sh«,re© ar© Toted, but aueh holding company • f f Ilia l<3 m®yt «tW^
out ofci&inittt: suoh permit, ^ote la favor of placing the? association
in %*olujit ry liquidation or ttfciBf aay othor action a j l l i t a l t to the
voluntary liquidation of such asgooiation*
harehol^iers may vote by
proxies duly authorised in writing* but no officer, t»lerkt t a l l e r , or
• Im
p
of suoh benV shall aot i i pfwqpl and MO shareholder
whose l i a b i l i t y | i past due and unpaid shall he allowed to vote«
henever shar©? o." stock oansot be voted by reason of being1 held
by the bank as sole t r u s t e e , such shares shall fct #»xolufi«d in 3e
termlnlngr -whether matters voted Wpm by the *harehold*rs w©r^
adopted by the requisite peroentAge of shares•"
(jete: i.eotions 310(a) and (b) of the "bill
amend the f i r s t paragraph of section 5144 of the Bevised -':t*ttttet« in ord«r to add t3w©e additional
aiaeiidiiiexita thereto, the paragraph hae betm remrltten
as eet forth abor@« '*ha f i r s t of the aew amendment*?Is MMfet&ttN in the clause numbered (1) In tiwn r#*
writteu seotion* This amen^meist- is for the ptarpose
of pr®serring the right vbioh the ^.econetruetlon Fi»
Banee Corporation and other holders of JfflMNfVii etocA:
now have in oertain cases to oast more tham on© vote
on ea«!i ebare of •preferyec! stook in the event of default* The MM aaendaextt contained in the clause
mtm'h®re<! (2) ambles a national bank to vote shares
of i t s &m etoek held by i t as sole trustee in oases
where the bank do»s not in faot control th® manner
in i^b-ieh th« gtoek is vot©d» fkt third of the «?'-w
amendments adds to the T revision in slause numbered
(4) the following, words at ih® end o*"" stteh clauses
"or tmJrital ^sy other aotios psrtaininp; to %h® volua«
tary liquiiation of such aesooiatlon** tIA* amendment
extends th® authorisation of a holding" company a f f i l i a t e
to vot«, without obtaining a voting permit t to -elaee a
national .snk in voluntary liquidation so as t o include
the authority to W%l in f«v©r of taking any other
tion t»er^ainin|r, to such
^
510(o)*
Qa pe^e 57, line 10, substitute the l e t t e r
b for the l e t t e r e in the parentheses*
(Motes ;.;ins5« settles S10(b) has been
with seotion SlQ(a), section 510(o) now becomes
tion 310(b),
:• eoiian .3.17* ^
par® 61, line 20, strike out tfet words
"to read as follows" and substitute the -?ft>rds "by striking out
the semicolon and everythinr preceding I t and substituting the
following%
hi page 82, lino 5, ohare,6 the period to a semicolon.
r
ti drafting the proposed amendment to section
, the part following the teal solos, whleh provides
for a penalty for violating this s©0ti0a.# wag
i s %• pr«eerre the penalty provision ae i t now
exists in the law*)
On pa^« S2t lia« f| sub«tirut« th© word
f©r the word
cm ytQt I8| t f l t f lia« 26 t insert tt© following aew paragraphs
"Section 6 of the Federal 'ifeserre Act, as amendedt is amended
striking, out th® last paragraph thereof*n
'-r>p#al the provisioas of
6 end 6 of tin® "ederal 'sViffVV III wliieh
laocrd i f ttmWn If I f j i i i s l reserve hmk to
a eertlf leate to the Comptroller of the Curretiey ttttvilg an
ioerease or decrease in the empital st&ck of the ederal
res<erTe bank* Inassitioh as »T©ry adjuft^&nt in r ederal
reserve baaak stock ig appror«d by t ^ Federal Maervt Beard
before the stock is issued or canoelied, the filing of Mstfe
certificates with the Comptroller of the Curr@mo£ is a \»8©«
lees formality involving duplication of work#)
i.a21*
OB pa. • 64, line l t strik© oat '"and/or" and e«b-
stitute the refer the word
This is merely for the purpose of Improving
e of the section by eliminating the "and/ortt*)
g£3(a)«
m page 641 line 22, •fcMfi the period to
a eolos asd Insert before the quotation
smrks the following!
rabided« "r:mn/wmr» That, within the meaning of the
provisions of Mdl i N l i l l regarding; the r^servm® required
of member banks, the term *tim« deposits* shall include
* savings deposits* •
provisions regarding reserree only r e t i r e reserves
against ndemand d«positeK &B& nti©e deposits18 f in view of th®
faot UMA HM present statutory .definition of time deposits ln*»
.« aooounts* Ifm prorisions regarding interest,
# mates a distlnotion b@twe«n tiau dapemite and eariii
in thai they forbid the payment of any ti»© <5«posit
before maturity and forbid th« sraiver of any re^ptireiasnt of
notice befora payment of any savings deposit exoept a« to a l l
savings deposits having the seme requirement* This aiaendment
i« for the purpose of maklm^ i t clear that reserves are re*»
quired against savings deposits as well as other tims deposits*)
,-eetioa 523(b)>
5n pag;e 65, liae S» strike out everything
the paresth«sis to the ®nd of line 5 and substitute therefor the fol
lowing!
a&i omsh items in prooess of oollaotion payable tminediatoly
upon vresentation in the Unitf?'i rt&t#«^withiis -thi? neaning o
terns at defined by the federal Reserve
This would brinjr the language of the section into conformity with tho language reeonstendod by the federal
yttea's eosaiittse on reeerw$ and would !©&ve with the
^Q*&rr® 3©ard the right to determine -within limitations
itoms May be deducted from gross demand d epos i t c for the purpose of determining tlte ssnount or net demand deposits on which
reserves are
r )
:;eetlon 32S^dj*
7 ofn|
!
•
* $7, line 10, strike oat the -words ''
its U M 11, strike out th,e words ''eeetioii a ©fwi i» lino
strike out the words "iieetioB 8 of •
(Botcs M i i s merely to eliminate any doubt m to the
of the statutory references•)
\t$
Seefcion ggS(»jy
On pa^e 68, line 11, insert & &omm after
M This i© to xaake ©lear that- tti r e s t r i c t i v e
elaus* *wbo exasdaes or has authority
to ax&saxo© such hi applies t o the "words "bank examiner1* as w l l a£ ta the
" r t f c
f
Section 325{b)«
lt
the ^ r d
w
n pa » 69, 11B© 3, insert bofor© the word
aueh n ,
I pa§i 69, line 5, strike out erer^-fcliing in llao 9 ax-c! stibstitut© therefor tfci following*
i?
as to a national bask# the Federal
heeerw Board as to a State mmbmr b&r-k, or the Federal l^posit Insuranoe :."'orr>oratios as to asy otl^r iMM
(Kotes The f i r s t aaendmant Is for tlie purpose oX
aaking clear that the section 22 referred to l i section 22
of the Federal Reserve Aet*
l i purpose of the second azasadasixt is t-o
2m&B i t clear that the oonsctnt of the appropriate super*
Tisory authority
is te b© obtained w&Nk res;peot to the d i s olosur® af iti3fIonmtion relating to national banks# **tats
saeaiber banks and other Insured banks9 tad to eliminate
ass to niiose eceiseivt 1? r-eoessary in a partieiilar
£®otios 526* Qm p&r® 72t tine £, after th©
strife© o\it UNI coTBsrn and bMsrl the following words s
w
or obli^atioa©
fully guaranteed by tlie united States iffNfMitfl as to |V&Mifttl
- pare 72, line? 2C:# strllee o«t the period «nd t-he quotation
and irisert the followiagi
or to loans secured by, extension*
of sredit igaJant, or pur ©bases imtar r#purcslms# apr^@s»2tfc of, oblim
tioue of the ^iiited ntates Goferniwnt or obligations fully
m
I -
the M t f i States ^Wsrnaent as t o principal and
(lotm Hie f i r s t of the above
extends tfee exemption of a f f i l i a t e s Sflgftgei solely in
holding o*rtais. obligations to laelude a f f i l i a t e s ea«»
gagei solsly in holding; obligations guaranteed by th©
United States
'Til© second amefidigexit ©x^i^ts f r<m the
limitations of tli# f i r s t paragraph of eeetian 23A loans
secured b^# exteasions of eredit against 0 and p«rolms©8
imd#r re^warefeaee agreeaexst &£ United States Goversaent
obligaticns a»d eeti^atiens goaraateed by the Usited
"'tat©0 Gorverassot and ©xfcends the
p
in the s«ooM paragraph of section 23-4 to obligations
»y the United r - t )
geortioaa 327»
w
)a p a ^ 73, line 4, substitute the m>rd R
for the -mrtl "establish",
(Hotes
This a»rely oorrests & typographical
error*)
I t is migg®$t@d that the b i l l be amended by adding thereto the
See. 335* Seat lor,. 6143 of the Keviaed Statutes, as
Is favreby as&aded by strUd^f out ew^ryt':.
•yll.omin? the words
•;'"otrollsr of the -^urrenoy*1, where svteh fiords l a s t Sfpear in swob,
seotion, aad sabstit'uti:ng the followlr-1
"and no ^fMrmmld&r shall
&& @?3titl@d to ssy dlstributioa of SMil or other assets by reason of
suay reduction, of the eosamoa capital of any assoelatiozi unless such
distribittloa shall have been approved by ihs BM^ptMAlsV of the Otar*
reney ami by the affinaatl've Tot® of at least two-thirds of the shares
of each class of stock outstanding* wttag as elasses» n
(lot©? In approving reductions of capital
fejr national banks, th© Co&tftrollar of th©
Q in order to oonuerv© the assets for Jdi@
protection of the bank, f r e c e n t l y specifies that
MM of the assets of the bank shall be distributed
to the shareholders* | | M question has bees, raised
as %4I whetlaar a national bank 1ms the right to
reduce i t s capital without distributing a correspond**
ing portion of i t s assets t o i t s shareholder** wen
though mxak ussets iaay be needed for th® protection
of the bank| and th® purpose of this amendaent is t©
MQF doubt on tlmt poi
Tiae aisexidinent would a Is© strike out the
words whioh ^ik© i t neoeaiary for capital stoak redtto*
tions to be ap-.-roT»d by the federal Reserve Board, I
addition to the Comptroller of tfc« ; :urreney, thua ! !
ac uQneeeeaejry dtiplioatioa of work*)
Sec* $34* Section 5139 of the Herise& Statutes« as amendedf
is ejsended by ad<iixig a t the ead of the f i r s t paragraph I0M folloirtng:
new paragraph, J
tt
Certifioat0s
kttMMfWV issued representing shares of stock
of UMI association shall state (1) th© name &xt& location of the
, (2) the nasup of the holder of reoord tf the stock repr®«
thereby^ (S) H i nmatber and class of mmms wSiieh the certify
ropresents» (4) txwl9 if th© association shall issue atoek of
mam tlma Mi class 9 tm r®speQt±ym ri»;lits f proferxmoe-s f priTil©£;@s,
Toting riglits, po»«rg# restrictions, llsai.tations sjsji qualifications
of ©aoh olass of etoctc issa©d giiall h® stated in full or in Bv$m.ry
upon the front or IK-ok of the oertifier:-.fc@s or shall be incorporated
by a refereno© to the articles of assooiation set forth on the fti
of the certificates,
Mtefy certificate shall
:
-ed hy th©
:i
dent and th© Cashier of tlw association, or by auoh othsr offieers
as the by-laws of the association shall provide> a&d shall be
s#aled with the seal of the asdooiati n« n
(Kotet Sons JM«tlea haa arisen as to
whether State laiss regulafcing t*» form of *toek
certificate® issued by corporations ar@ applicable
to the fora of atoolc oertifioates issued by national
banks ttMfWtiSf In such states* fhis aaieii&nant wcr
result in uniforsdty of Tiatiasal banlc stock t^rtif*
ieatee hereafter issued and wo«ld thus eliminate any
queatioa as to the applicability of cueh State lawe«)
sentence of aestlc
|
the Emergency
Banking Aet of :.:arcli 9, 13;5S» as- araended, i« ej«md@d t o read as
follows f
issu© of preferred atook shall be valid until the par iralue
of a l l stoek ao Issued shall be paid in and notio© thereof, duly aoknowlmdig&i. before a liotary Ftib&t hj tfct *IWl4Mli| Wbit President or
Cashier of said aasooia'c.ionf lias b-.-^en transsittad to the Goiaptroll©r
of ttm
t?rrenoy and his certificate obtained specifying the aswuat of
•ueh iasu® of preferred stoek and his approval thereof and that the
amouaat has been duly paid in as a part of the capital of said
tioBf which oertifieate slmll be deemd to be conclusive evidenoe
that sueh preferred stock has been ditly aad Talidly
(Sot®i Xn csaee® of iaoreaee of oapi'fcal bv 1
issuaxxoe of ooBimoa stook, t!i© Controller of the (hav
reney issues a o e r t i f i c t e of the
SNMh CMirtifiea-be la Mid t© be ocmelusiv*
oh ooisEson stook has been duly asid Talidly
This amendment requires the issuaiw5e by the Comptroller
if Ihl 6WMMf of the sas® %|?n of aertlf loate ixt easee
of increase of capital by the issuanee of preferred
stoek with the same oonelusive
@FedFRASER