Full text of Compilation of Federal and State Laws Relating to Branch Banking within the United States

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858

FEDERAL RESERVE BULLETIN

NOVEMBER 1936

statutes of the particular State pursuant to which
the bank is organized. The test to be applied in determining whether an organization is an instruSection 811 (b) 7 of the Act provides:
of a State or political subdivision thereof
"(b) The term 'employment' means any service, mentality
is whether it was created for the purpose, in part at
of whatever nature, performed within the United least,
of acting for such State as a means of carryStates by an employee for his employer, except—
ing into execution the powers of the State. An
examination of the general banking laws of the State
of Michigan does not disclose that banks organized
"(7) Service performed in the employ of a State, thereunder are created for the purpose of acting as
a political subdivision thereof, or an instrumentality State agencies or affording the State a means of
exercising its functions. Such banks, therefore, are
of one or more States or political subdivisions;"
Section 901, Title IX of the Act, imposes an excise not considered to be instrumentalities of the State.
tax on and after January 1, 1936, on employers of Accordingly, it is held that the M State Bank and its
eight or more individuals under the conditions speci- employees are subject to the taxes imposed by Titles
fied in the Act, and section 907 (c) 6 is identical with VIII and IX of the Social Security Act.
the above-quoted provisions of section 811 (b) 7.
Inasmuch as the M State Bank is not a member of
Whether a State bank is an instrumentality of the the Federal Reserve System, the question as to
State within the meaning of sections 811 (b) 7 andwhether it is an instrumentality of the United States
907 (c) 6 of the Social Security Act depends upon the is not presented.

respect to employment after that date.

COMPILATION OF FEDERAL AND STATE LAWS RELATING TO BRANCH BANKING
WITHIN THE UNITED STATES
SUMMARY OF STATE BRANCH BANKING LAWS
There was published on page 258 of the
for April 1930
a compilation of State laws relating to branch
States
States permitting
States
States with no
legislation
branch
prohibiting
banking within the United States, and on permitting
regarding
State-wide
banking within
branch
page 455 of the FEDERAL RESERVE BULLETIN branch
branch banking
banking
limited areas
banking
for July 1932 there were printed the proviColorado
Kentucky
Alabama
sions of the branch banking laws of certain Arizona
New Hampshire
California
Arkansas
Florida
States which had been amended or added Connecticut
North Dakota
Delaware
Illinois
Oklahoma
of
Georgia
Kansas
since the previous compilation was prepared. District
Wyoming
Columbia
Indiana
Minnesota
Idaho
Iowa
Missouri
The following compilation, which has been Maine
Louisiana
Nebraska
Massachusetts
Texas
prepared in the office of Counsel of the Board Maryland
Michigan
Mississippi
West Virginia
of Governors of the Federal Reserve System Nevada
Montana
Carolina
New Jersey
with the assistance of the Counsel of the Fed- North
Oregon
New Mexico
Rhode Island
New York
eral Reserve banks, supersedes the compila- South
Carolina
Ohio
tion published in the FEDERAL RESERVE BUL- South Dakota Pennsylvania
Utah
Tennessee
LETIN for April 1930 and the amendments Vermont
Wisconsin
thereto published in July 1932, and shows as Virginia
Washington
of June 1, 1936, the status of the laws of Total, 18
Total, 9
Total, 5
Total, 17
the United States and of the various States
affecting the establishment of branches by District of Columbia not included in tabulations published in FEDRESERVE BULLETIN for April, 1930, and July, 1932.
banks and trust companies, including savings ERALOnly
"offices," "agencies" or "stations" for limited purposes, as
from "branches," permitted under certain circumstances.
banks and Morris Plan banks. The compila- distinguished
Court decisions permit establishment of offices or agencies to receive
tion contains only such laws as relate to the deposits and cash checks.
establishment of branches within the United
NOTE.—The foregoing tabulation is designed to indicate the
States and each provision of law is followed general
of the various States on branch banking as reby one or more citations. When only one flected bypolicy
the provisions of the laws of such States, but it does
not
reflect
detailed
provisions of the law in certain States such as
citation to the State law is given, the referbased upon the population of the place of the head
ence is to a pamphlet edition of the State restrictions
office or the place of the proposed branch, restrictions that certain
be established only by consolidation or merger, requirebanking laws which was consulted in thebranches
ments that the place of the proposed branch be without other
preparation of the compilation, or to a par- banking
facilities, etc. For example, the State of Virginia is
in the foregoing tabulation as a State permitting Stateticular statute if it is not contained in such classified
wide branch banking, but under th^ laws of that State branche~
pamphlet edition; and when there is a second
citation, the second reference is to the official
edition of the laws of the State.

FEDERAL RESERVE BULLETIN




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FEDERAL RESERVE BULLETIN

NOVEMBER 1936

FEDERAL LAW
NATIONAL BANKS

Branches permitted.—"(c) A national banking association may, with the approval of the Comptroller
of the Currency, establish and operate new branches:
(1) Within the limits of the city, town or village in
which said association is situated, if such establishment and operation are at the time expressly authorized to State banks by the law of the State in question; and (2) at any point within the State in which
said association is situated, if such establishment and
operation are at the time authorized to State banks
by the statute law of the State in question by language specifically granting such authority affirmatively and not merely by implication or recognition,
and subject to the restrictions as to location imposed
by the law of the State on State banks. In any State
in which State banks are permitted by statute law to
maintain branches within county or greater limits, if
no bank is located and doing business in the place
where the proposed agency is to be located, any national banking association situated in such State may,
with the approval of the Comptroller of the Currency, establish and operate, without regard to the
capital requirements of this section, a seasonal agency
in any resort community within the limits of the
county in which the main office of such association is
located, for the purpose of receiving and paying out
deposits, issuing and cashing checks and drafts, and
doing business incident thereto: Provided, That any
permit issued under this sentence shall be revoked
upon the opening of a State or national bank in such
community. * * *"
"(e) No branch of any national banking association shall be established or moved from one location
to another without first obtaining the consent and
approval of the Comptroller of the Currency."
" (f) The term 'branch' as used in this section shall
be held to include any branch bank, branch office,
branch agency, additional office, or any branch place
of business located in any State or Territory of the
United States or in the District of Columbia at which
deposits are received, or checks paid, or money lent."
"(h) The words 'State bank/ 'State banks/ 'bank/
or 'banks/ as used in this section, shall be held to
include trust companies, savings banks, or other such
corporations or institutions carrying on the banking
business under the authority of State laws."
"(a) A national banking association may retain
and operate such branch or branches as it may have
in lawful operation at the date of the approval of
this Act (February 25, 1927), and any national banking association which has continuously maintained
and operated not more than one branch for a period
of more than twenty-five years immediately preceding the approval of this Act (February 25, 1927),
may continue to maintain and operate such branch."
"(b) If a State bank is hereafter converted into
or consolidated with a national banking association,
or if two or more national banking associations are
consolidated, such converted or consolidated association may, with respect to any of such banks, retain
and operate any of their branches which may have
been in lawful operation by any bank at the date of
the approval of the Act (February 25, 1927)." (Sec.
5155, Revised Statutes of the United States.)
Capital required.—"(c) * * * no such association
shall establish a branch outside of the city, town, or




859

village in which it is situated unless it has a paid-in
and unimpaired capital stock of not less than $500,000: Provided, That in States with a population of
less than one million, and which have no cities located
therein with a population exceeding one hundred
thousand, the capital shall be not less than $250,000:
Provided, That in States with a population of less
than one-half million, and which have no cities located
therein with a population exceeding fifty thousand,
the capital shall not be less than $100,000."
" (d) The aggregate capital of every national banking association and its branches shall at no time be
less than the aggregate minimum capital required by
law for the establishment of an equal number of national banking associations situated in the various
places where such association and its branches are
situated."
The provisions regarding capital requirements for
the establishment of branches do not apply to the
establishment of seasonal agencies in resort communities. (Sec. 5155, Revised Statutes of the United
States.)
STATE MEMBER BANKS

Branches permitted.—"Any such State bank which,
at the date of the approval of this Act (February 25,
1927), 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 reserve bank except upon relinquishment
of any branch or branches established after the date
of the approval of this Act (February 25, 1927)
beyond the limits of the city, town, or village in
which the parent bank is situated. Provided, however,
That nothing herein contained shall prevent any
State member bank from establishing and operating
branches in the United States or any dependency or
insular possession thereof or in any foreign country,
on the same terms and conditions and subject to the
same limitations and restrictions as are applicable
to the establishment of branches by national banks
except that the approval of the Board of Governors
of the Federal Reserve System, instead of the Comptroller of the Currency, shall be obtained before any
State member bank may hereafter establish any
branch and before any State bank hereafter admitted
to membership may retain any branch established
after February 25, 1927, beyond the limits of the city,
town, or village in which the parent bank is situated."
(Sec. 9, Par. 2, Federal Reserve Act.)
Capital required.—Same requirements as for establishment of branches by national banks.
"Bank" denned.—"Wherever the word 'bank' is
used in this Act, the word shall be held to include
State bank, banking association, and trust company,
* * *." (Sec. 1, Par. 2, Federal Reserve Act.)
INSURED STATE BANKS NOT MEMBERS OF FEDERAL
RESERVE SYSTEM

Branches permitted.—"No state nonmember insured bank (except a District bank) shall establish
and operate any new branch after thirty days after
the effective date (August 23, 1935) unless it shall
have the prior written consent of the (Federal Deposit Insurance) Corporation, and no branch of any
State nonmember insured bank shall be moved from

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FEDERAL RESERVE BULLETIN

one location to another after thirty days after the
effective date without such consent. The factors to
be considered in granting or withholding the consent
of the Corporation under this paragraph shall be"
the same as those to which the board of directors of
the Corporation is required to give consideration in
determining whether a State nonmember bank is entitled to the benefits of deposit insurance under the
provisions of section 12B of the Federal Reserve Act.
(Sec. 12B(v) (5), Federal Reserve Act.)
Capital required.—No additional capital is required.
STATE LAW
ALABAMA

Limited branch banking permitted.—Upon the
prior written consent of the State Superintendent of
Banks, "any state bank, whether incorporated or unincorporated, within the State, * * * situated in a
county of which the population" exceeds 250,000
"shall have power to establish, maintain and operate,
within the limits of the county wherein the principal
place of business of such bank is situated, one or
more branch banks, branch offices, branch agencies,
additional offices or branch places of business for the
receipt of deposits, payment of checks or lending of
money * * *." (Act No. 15, approved Jan. 29,1935).
Capital required.—"* * * combined paid-in capital and paid-in or earned surplus of more than one
million dollars * * *."
"* * * provided that only one such branch shall
be so established, maintained and operated with respect to each two hundred fifty thousand dollars by
which the amount of combined paid-in capital and
paid-in or earned surplus of such bank exceeds one
million dollars * * *." (Act No. 15, approved Jan.
29, 1935.)
"Bank" defined.—"The word 'bank' as herein used
means any person, firm, partnership or corporation
doing or carrying on a banking business * * V
(Sec. 6275, Banking Laws, 1933; Sec. 6275, Civil
Code of Alabama.)
"All Corporations organized and operating as trust
companies shall * * * be amenable to the general
banking laws of the State insofar as said laws are
applicable to trust companies * * *." (Sec. 6388,
Banking Laws, 1933; Sec. 6388, Civil Code of Alabama.)
ARIZONA

Branches permitted.—The superintendent of banks,
upon receipt of a written application "for leave to
open a branch office" from a commercial bank, savings bank or trust company, "shall investigate and
ascertain whether the public convenience and advantage will be promoted by the opening of such
branch office * * *. If satisfied that the granting
of such application is expedient and desirable, he
shall make a certificate * * * authorizing the opening of such branch office * * *." (Sec. 225, p. 11,
Banking Laws, 1928; Sec. 225, Ch. 8, Revised Code
of 1928.)
Capital required.—A "paid-in capital and surplus
of not less than fifty thousand dollars, plus fifteen
thousand dollars of additional capital and surplus"
is required for each branch so authorized. (Sec. 225,
p. 11, Banking Laws, 1928; Sec. 225, Ch. 8, Revised
Code of 1928.)




NOVEMBER

1936

ARKANSAS

Branches prohibited but limited "offices" permitted.—Upon the completion of the organization of
a bank, trust company or savings bank, it is authorized "to proceed with its business, but with only
one office for the transaction thereof in only the one
town or city as to which the application has been
made." (Sec. 15, Banking Laws, 1931.)
Any "banking institution," Federal or State,
"doing business in this state may establish an office
for the purpose of receiving deposits and paying
checks and performing * * * other clerical and bank
service duties * * *. However, no banking institution may establish any office beyond those counties
contiguous to the county in which said banking institution is located, nor in a city or town in which
there is already an established bank * * *. No office
shall be continued at any place after a legally chartered bank has actually commenced business at that
place." (Act No. 191. approved March 26. 1935-1
Capital required.—No additional capital is required
for the establishment of offices with limited functions.
CALIFORNIA

Branches permitted.—"No bank in this state, or
any officer or director thereof, shall hereafter open
or keep an office other than its principal place of
business, without first having obtained the written
approval of the superintendent of banks to the opening of such branch office, which written approval may
be given or withheld in his discretion, and shall not
be given by him until he has ascertained to his satisfaction that the public convenience and advantage
will be promoted by the opening of such branch
office; * * *." (Sec. 9, Art. I, Bank Act of California, 1935.)
Capital required.—In addition to its own required
capital, a bank or trust company must have $50,000
paid-in capital for each branch office located in its
principal place of business. For each out-of-town
branch, a bank (other than a trust company exclusively) must have, in addition to its own required
capital and exclusive of the capital for a trust department, paid-in capital equal to the amount required for the organization of a bank in the location
of the branch. In the case of a trust company exclusively, in addition to its own required capital, it
must have additional paid-in capital of at least
$50,000 for each branch outside its principal place
of business. (Sec. 9, Art. I, Bank Act of California,
1935.)
Other branch banking provisions.—There are also
provisions concerning the discontinuance of a branch;
the fee for opening a branch; penalty for violation
of law covering establishment of branches; ratio of
capital and surplus to deposits of branches; name of
branch and its advertising; and establishment of
branches by banks located in city or territory which
is annexed by or consolidated with city or territory
of a class requiring a larger capitalization. (Sees.
9, 23(2), 28, 58 of Art. I, Sec. 60 of Art. II and Sec.
82 of Art. Ill, Bank Act of California, 1935.)
"Bank" defined.—"The word 'bank' as used in this
act shall be construed to mean any incorporated
banking institution which shall have been incorporated to conduct the business of receiving money on
deposit, or transacting a trust business as herein
defined/ (Sec. 2, Art. I, Bank Act of California,
1935.)

NOVEMBER

COLORADO

Branches prohibited.—Every bank and every trust
company engaging in the business of banking "shall
be conducted at a single place of business, and no
branch thereof shall be maintained elsewhere."
(Sees. 1, 56, 141 and 145, Banking Laws, 1928; Sees.
2653, 2703, 2779 and 2783, Comp. Laws of Colorado,
1921.)
CONNECTICUT

Branches permitted—limitations.—"Any state bank
and trust company * * * may, with the approval
of the bank commissioner, (1) establish and operate
one or more branches within the town in which such
state bank and trust company is located; (2) establish and operate one or more branches in any town
or towns within this state in which there is or are
no commercial bank or banks of deposit and discount, * * * (3) continue to operate as a branch in
the same or approximately the same location, the
business of any other banking institution located
within this state, which business has been acquired
by purchase, consolidation or merger under the provisions of the general statutes, * * *." (Sec. 1451c,
Banking Laws, 1935, p. 28; Sec. 1451c, (1933) 1935
Cumulative Supplement to General Statutes of Connecticut.)
In case of the merger or consolidation of State
banks and trust companies, the "resulting corporation shall not maintain more than one banking house
for the conduct of its business except as authorized
by the provisions of section 1451c in the case of
branch banks." (Sec. 3895, Banking Laws, 1935, p.
27; Sec. 1449c, (1933), 1935 Cumulative Supplement
to General Statutes of Connecticut.)
"Any savings bank * * * may, with the approval
of the bank commissioner, (1) establish and operate
one or more branches within the town in which such
savings bank is located; (2) establish and operate
one or more branches in any town or towns within
this state, in which there is no savings bank or commercial bank soliciting or receiving savings deposits
at the time such branch is established; (3) continue
to operate, as a branch in the same or approximately
the same location, the business of any other savings
bank or the savings department of any state bank
and trust company, which business has been acquired
by purchase, consolidation or merger under the provisions of the ereneral statutes." (Sec. 1483c, Banking
Laws, 1935, p. 70; Sec. 1483c, (1933) 1935 Cumulative
Supplement to General Statutes of Connecticut.)
"No private banker shall establish any branch or
open any new place of business, * * *." (Sec. 3959,
Banking Laws, 1935, p. 60; Sec. 3959, General Statutes of Connecticut.)
"Nothing * * * shall be construed to permit any
building and loan association, industrial bank or
private banker located within this state to establish
any branch, office or agency thereof, or employ any
agent or person to make loans, at any place other
than its designated place of business." (Sec. 1531c,
Banking Laws, 1935, p. 120; Sec. 1531c, (1933) 1935
Cumulative Supplement to the General Statutes of
Connecticut.)
Capital required.—State banks and trust companies
must have combined capital and surplus of not less
than $1,000,000 in order to establish intra-city
branches; and for each branch in other towns, must
have combined capital stock and surplus sufficient to
operate a bank or trust company in such other towns




861

FEDERAL RESERVE BULLETIN

1936

in addition to the said $1,000,000. (Sec. 1451c, Banking Laws, 1935, p. 28; Sec. 1451c, (1933), 1935 Cumulative Supplement to the General Statutes of Connecticut. )
"Any savings bank with an unimpaired surplus
equivalent to not less than ten per cent of its deposits
establish and operate one or more
may,
branches * * *." (Sec. 1483c, Banking Laws, 1935,
p. 70; Sec. 1483c, (1933), 1935 Cumulative Supplement to the General Statutes of Connecticut.)
DELAWARE

Limited branch banking permitted.—If any state
bank or trust company, other than a mutual savings
bank, "shall desire to open a branch office in the city
where it does business, it shall make application to
the Board of Bank Incorporation who shall inquire
into the matter, and if it shall deem that the public
convenience will be served thereby and that there is
good and sufficient reason that the corporation should
have such branch office, it shall issue a written permission for the opening of such branch office in the
city where the corporation is doing business, provided that no corporation shall be allowed more than
two branch offices; and provided further that no
branch office shall be maintained by any corporation
doing business in a city of a population less than
one hundred thousand." (Sec. 20, Senate Bill No.
137, approved Feb. 28, 1933; Laws of Delaware, Vol.
38, Pt. I, Ch. 94, Sec. 20.)
"* * * nothing in this Act contained shall be
deemed or held to authorize or enable any bank or
trust company * * * to establish a branch bank or
trust company, or to open a branch office unless such
branch office be in accordance with the provisions of
Section 20 of this Act. * * *" (Sec. 30, Senate Bill
No. 137, approved Feb. 28, 1933; Laws of Delaware,
Vol. 38, Pt. I, Ch. 94, Sec. 30.)
Capital required.—No additional capital is required.
DISTRICT OF COLUMBIA

Branches permitted.—"No corporation shall engage
in or do the business of a bank of deposit or a fiduciary business in the District of Columbia nor shall
any branch be established to carry on any phase of
such banking or fiduciary business in the District of
Columbia until the approval and consent of the Comptroller of the Currency is secured. The term 'branch'
as used in this section shall be held to include any
branch bank, branch office, branch agency, additional
office, or any place of business located in the District
of Columbia, at which deposits are received, or checks
paid, or money lent, or at which the public is served
or any phase of business conducted by the parent institution." (Sec. 300, Chap. 9, Title 5, Code of Laws
of District of Columbia.)
Capital required.—-No additional capital is required.
FLORIDA

Branches prohibited.—The "place of business of
each banking company shall be in the city or town
specified in its charter, and the usual business of any
such banking company shall be transacted at an office
or banking house located in the city or town so specified and not elsewhere." (Sec. 4139, (2709) Art. 8,
Banking Laws, 1933.)
Morris Plan Banks have "the right to lend money
in other cities and towns within the State other than

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FEDERAL RESERVE BULLETIN

that in which the Bank is located and the right to
maintain offices in such other cities and towns for the
purpose only of making such loans and accepting
periodical cash installments in anticipated retirement
thereof. Such additional offices may not, however,
accept demand deposits or time deposits from investors or others." (Sec. 4-E, Senate Bill No. 282,
Approved June 4, 1935.)
GEORGIA

Limited branch banking permitted.—After August
25, 1927, "no new or additional branch banks shall
be established." (Sec. 3, Art. 1, Banking Laws, 1935;
Sec. 13-203 Code of 1933.)
State banks "having their principal office in a city
now or hereafter having a population of not less than
eighty thousand, or more than one hundred and
twenty-five thousand, may establish branch banks in
the city in which its principal office is located." (Act
approved July 20, 1929, Banking Laws, 1935, p. 102;
Acts of 1929, page 214.)
State banks "having their principal office in a
municipality now or hereafter having a population
of not less than 200,000 according to the last census
of the United States or any future census of the
United States, may establish branch banks in the
municipality in which its principal office is located."
(Act approved Aug. 17, 1929, Banking Laws, 1935,
p. 103; Acts of 1929, pages 214-215.)
Capital required.—No additional capital is required.
Other branch banking provisions.—There are also
provisions permitting the continuance of branches
established prior to August 25, 1927; relating to the
selection of the officers of the branch; the setting
aside each year for the use of the branch of a certain
portion of the bank's capital; and the taxation of
branches. (Sec. 3, Art. 1, Banking Laws, 1935; Sec.
13-203, Code of 1933.)
"Bank" denned.—"The term 'bank' as used in this
Act means any moneyed corporation authorized by
law to receive deposits of money and commercial
paper, to make loans, to discount bills, notes, and
other commercial paper, to buy and sell bills of exchange, and to issue bills, notes, acceptances or other
evidences of debt, and shall include incorporated
banks, savings banks, banking companies, trust companies and other corporations doing a banking business in this State, * * *." (Sec. 1, Art. 1, Banking
Laws, 1935.)
IDAHO

Branches permitted.—"No bank shall maintain any
branch bank office except as hereinafter provided.
Any corporation organized under the laws of Idaho
and authorized to engage in the banking and/or trust
business may, with the approval of the Commissioner
of Finance, establish and operate branch banking
offices for the transaction of its business within the
limits of the city, town, or village, in which it is situated, or at any point within this state, * * *. Branch
banking offices shall not be established in any city,
town, or village, in which there is located a bank or
banks, state or national, regularly transacting a
customary banking business unless the corporation
establishing such branch banking office shall take over
an existing bank, or obtain consent of all banks there
located. No unit bank hereafter organized and operating at a point where there are other operating
banks, state or national, shall be permitted to be ac-




NOVEMBER

1936

quired for the purpose of establishing a branch banking office of a branch bank until said unit bank shall
have been in operation as a unit bank for a period of
five years." (Sec. 25-1001, Banking Laws, 1935; Sec.
25-1001, Idaho Code Annotated, as amended by Ch.
109, Laws of 1935.)
Capital required.—"* * * such corporation shall
have a paid-in capital stock of not less than $100,000
and a surplus fund, paid-in or earned, in the amount
of not less than ten per cent of its capital stock.
* * * but no such corporation shall establish or
maintain branch banking offices unless its paid-in
capital stock shall, in the aggregate, amount to at
least $25,000 for each of the banking offices, and from
and after the effective date of this Ac.t no new branch
bank or new branch office of any bank shall be established unless the corporation establishing the same
has a paid-in and unimpaired capital stock in an
amount not less than the minimum capital stock now
required * * * for a national banking association
establishing and operating new branches outside the
city, town or village in which such association is situated. * * *." (Sec. 25-1001, Banking Laws, 1935;
Sec. 25-1001, Idaho Code Annotated, as amended by
Ch. 109, Laws of 1935.)
Other branch banking provisions.—There are also
provisions as to the fees required for the establishment of branches (Sec. 25-208, Banking Laws, 1935;
Sec. 25-208, Idaho Code Annotated, as amended by
Ch. 51, Laws of 1935) ; the effect of the failure to
establish and operate a branch after its approval
(Sec. 25-209, Banking Laws, 1935; Sec. 25-209, Idaho
Code Annotated, as amended by Ch. 73, Laws of
1935) ; and as to checks, drafts, etc., drawn on the
bank or trust company operating branch banks.
(Banking Laws, 1935, p. 67; Chap. 112, Session Laws
Idaho, 1935.)
"Bank" defined.—"The word 'Bank' as used in this
act, shall be construed to mean any incorporated
bank or institution (except national banks) which
shall have been incorporated to conduct the business
of receiving money on deposit or transacting a trust
business as herein defined, and shall be construed to
include any individual, copartnership, or unincorporated association engaged in the banking business
as herein defined, * * *." (Sec. 25-102, Banking
Laws, 1935; Sec. 25-102, Idaho Code Annotated.)
ILLINOIS

Branches prohibited.—"No bank shall establish or
maintain more than one banking house, or receive
deposits, or pay checks at any other place than such
banking house, and no bank shall establish or maintain in this or any other state or country any branch
bank, nor shall it establish or maintain in this state
any branch office or additional office or agency for
the purpose of conducting any of its business." (Sec.
119, p. 25, Banking Laws, 1936; Smith & Hurds 1931
Revised Statute of Illinois, Ch. 16y2, Sec. 9.)
INDIANA

Limited branch banking permitted.—"Except as
hereinafter otherwise provided, any bank or trust
company may open or establish a branch bank in any
city or town within the limits of the county in which
the principal office of such bank or trust company is
located, if there is no bank or trust company located
in such city or town. Any bank or trust company
which is located in a city the population of which ex-

FEDERAL RESERVE BULLETIN

NOVEMBER 1936

ceeds fifty thousand inhabitants," may open branches
"within the corporate limits of such city * * *. No
branch bank shall be opened or established without
first having obtained the written approval of the department. * * * Before the department shall approve or disapprove any application * * * it shall
ascertain and determine to its satisfaction that the
public convenience and advantage will be subserved
and promoted * * * ; that there is no bank or trust
company located in the city or town * * * if the application is for a permit to open or establish a branch
bank in a city or town other than that within which
the applicant bank or trust company is located; that
the applicant bank or trust company has satisfied the
capital and surplus requirements" for the establishment of an intra-city branch in a city of over 50,000
inhabitants; "and that the welfare of any other bank
already established in such city will not be jeopardized."
(Sec. 224, Chap. II, Pt. IV, Art. VII,
Banking Laws, 1935; 1933 Acts of Indiana, p. 287.)
Capital required.—"* * * two hundred and twentyfive thousand dollars of the capital and surplus of
such bank or trust company actually paid in and unimpaired" for each intra-city branch established in
cities of over 50,000 inhabitants. (Sec. 224, Chap.
II, Pt. IV, Art. VII, Banking Laws, 1935; 1933 Acts
of Indiana, p. 287.)
Other branch banking provisions.—"Any person
who shall violate any of the provisions of section 224
of this act, either individually or as an interested
party, shall be deemed guilty of a misdemeanor and
upon conviction thereof shall be fined in any sum not
less than three hundred dollars nor more than one
thousand dollars, or by imprisonment for any period
not less than thirty days nor more than one year, or
by both such fine and imprisonment."
(Sec. 225,
Chap. II, Pt. IV, Art. VII, Banking Laws, 1935; 1933
Acts of Indiana, p. 287.)
IOWA

Branches prohibited but limited "offices" permitted.
—"No banking institution shall open or maintain any
branch bank. However, as may be authorized by and
subject to the jurisdiction of the banking department
any banking institution may establish an office for
the sole and only purpose of receiving deposits and
paying checks and performing such other clerical and
routine duties not inconsistent with this section. No
banking institution may establish any office beyond
those counties contiguous to the county in which said
banking institution is located, nor in a city or town
in which there is already an established banking institution. No office shail be continued at any place
after a banking institution has actually commenced
business at that place. Nothing in this section shall
prohibit national banks the privileges of this section
whenever they may be so authorized by federal law."
(Sec. 9258-bl, Banking Laws, 1934.)
Capital required.—No additional capital is required
for the operation of offices with limited functions.

863

KENTUCKY
Branches unauthorized.—There are no provisions
in the laws of Kentucky permitting or prohibiting
branch banking.
However, the Kentucky Court of Appeals has held
that a State bank may not establish branches (See
Bruner vs. Citizens Bank of Shelbyville (1909), 120
S. W. 345) ; but, in a later decision, the Court of Appeals held that a State bank may establish offices
separate and apart from its main office for the purpose of receiving deposits, paying checks and keeping
records of such transactions, at least if such offices
are within the municipal limits wherein the main
office of the bank is situated. (Marvin vs. Kentucky
Title & Trust Company (1929), 291 S. W. 17.)
LOUISIANA
Limited branch banking permitted.—Charter "shall
provide for the location in the parish of domicile of
any Banking Association of not more than two
branch offices. * * *" (Sec. 7, Banking Laws, 1932,
p. 9; Sec. 547, Louisiana General Statutes.)
All banks, trust companies and sayings banks "now
located, or hereafter organized, in either of the
Parishes of Allen, Calcasieu or Jefferson Davis may
establish, own and operate a branch bank or banks
in any one or more of the other said named parishes."
(Sec. 1, Act No. 219, Approved July 12, 1934; Sec.
547.1, Louisiana General Statutes.)
«* * * Any savings, safe deposit, or trust and savings bank may have one or more as hereinbelow provided offices of discount and deposit within the limits
of the municipality or parish in which the said bank
is located; * * * said savings, safe deposit, or trust
and sayings bank must first obtain a certificate of
authority from the State Bank Commissioner * * *
no future political or legal subdivision of said municipality or parish shall have the effect of in anywise affecting the right of such banks aforesaid to
continue the existence, maintenance and operation of
any such offices already established * * *." (Sec. 7,
Banking Laws, 1932, p. 40; Sec. 588, Louisiana General Statutes.)
Capital required.—Any savings, safe deposit, or
trust and savings bank, having $50,000 of capital
may establish one branch within limits of municipality or parish in which the said bank is located;
two branches if capital between $50,000 and $75,000;
three branches if capital between $75,000 and $100,000; five branches if capital between $100,000 and
$200,000; six branches if capital between $200,000
and $250,000; seven branches if capital between
$250,000 and $300,000; and one additional branch for
each $100,000. (Sec. 7, Banking Laws, 1932, p. 40;
Sec. 588, Louisiana General Statutes.)
"* * * no Banking Association or Savings Bank
with capital stock of less than $50,000 may locate or
operate branch offices; but this provision shall not
apply to existing branch offices." (Sec. 7, Banking
Laws, 1932, p. 9; Sec. 547, Louisiana General Statutes.)
Other branch banking provisions.—There is also a
provision providing for the manner of assessment of
taxes on branches in different parishes. (Sec. 27,
Act 170 of Banking Laws, 1932, p. 234; Sec. 686,
Louisiana General Statutes.)

KANSAS
Branches prohibited.—"* * * The general business
of every bank shall be transacted at the place of business specified in its charter or permit, and it shall be
unlawful for any bank to establish and operate any
branch bank or branch office or agency or place of
MAINE
business." (Sec. 1, Banking Laws, 1935; Sec. 9-101,
Limited branch banking permitted.—"A savings
R. S. Kansas, 1923, as amended by 1933 Sess. Laws
bank may open and conduct branches in the city or
(Special Session) Ch. 23.)




864

FEDERAL RESERVE BULLETIN

town where its main business is located and in other
cities or towns in the county of its location, or the
adjoining counties; provided, that before opening a
branch in any other city or town, it shall have received a warrant to do so from the bank commissioner, who shall issue such warrant only when satisfied that public convenience and advantage will be
promoted by the establishment of such a branch.
* * * The right to open a branch shall lapse at the
end of one year * * * unless it shall have been
opened and business actually begun in good faith.
* * * Any such branch may be closed or discontinued with the consent of the commissioner, after
such notice and hearing, if any, as in his judgment
the public interest may require." (Sec. 32-A, Banking Laws, 1935; Sec. 32-A, Ch. 57, Revised Statutes
of Maine.)
"No trust company now or hereafter organized
shall establish a branch or agency until it shall have
received a warrant so to do from the bank commissioner, who shall issue such warrant only when satisfied that public convenience and advantage will be
promoted * * *. No trust company shall be permitted to establish a branch or agency except in its
own or an adjoining county, provided, however, that
this limitation shall not prevent a trust company
* * * from establishing a branch or agency in any
city, town or village where there is no state bank
regularly transacting customary banking business or
where a unit bank or branch of another bank is taken
over * * * The right to open a branch or agency
shall lapse in 1 year * * * unless the same shall
have been opened and business actually begun in
good faith. * * * Any such branch or agency may
be closed or discontinued by vote of the stockholders
of the company, with consent of the bank commissioner, after such notice and hearing, if any, as in
his judgment the public interest may require." (Sec.
88, Banking Laws, 1935; Sec. 88, Ch. 57, Revised
Statutes of Maine.)
Industrial or Morris Plan Banks are authorized
"to establish branch offices or agencies in the manner
and subject to the conditions prescribed for the establishment of branches or agencies in the case of
trust companies." (Sec. 138, Banking Laws, 1935;
Sec. 88, Ch. 57, Revised Statutes of Maine.)
Capital required.—A trust company, in order to
establish a branch in its own or adjoining county,
must satisfy the bank commissioner "that the unimpaired capital stock of the parent institution is sufficient to comply with the conditions of section 69"
(minimum requirements for organization) "reckoning the aggregate population of its home city or town
and of all cities and towns in which it is authorized
by its charter to establish branches or agencies, including the one under consideration." A trust company, in order to establish a branch in any other city
or town where there is no state bank in operation or
where a unit bank or branch of another bank is taken
over, must have "a paid-in and unimpaired capital
stock of not less than $500,000." (Sec. 88, Banking
Laws, 1935; Sec. 88, Ch. 57, Revised Statutes of
Maine.)
MARYLAND

Branches permitted.—"Any bank or trust company
organized under the laws of this State, is specifically
granted the power and authority to establish and
operate a branch or branches in the City or County
in which it is located or at any point within the State,




NOVEMBER

1936

after having first obtained the approval of the Bank
Commissioner, which approval may be given or withheld in his discretion, and shall not be given until he
shall have ascertained to his satisfaction that the
public convenience and advantage will be promoted
by the opening of any such branch or branches, and
that said bank or trust company has complied with
the other terms and conditions prescribed by this
Article. Any bank or trust company haying an
existing branch or branches upon the effective date
of this Act, may continue the operation of such
branch or branches without further approval from
the Bank Commissioner, subject, however, to all of
the other terms and conditions of this Article. This
section shall not be construed as implying that the
provisions of this Article have heretofore in any way
prohibited the establishment or operation of a branch
or branches in the City or County in which any bank
or trust company, organized under the laws of this
State, is located, or at any point within this State."
(Sec. 52B, Banking Laws, 1935; Ch. 23, 1933 Sp.
Sess. Laws.)
"* * * With the approval of the Bank Commissioner, any mutual savings institution shall have the
right and authority to establish in the same city,
town or village and maintain branches where its
guarantee fund equals the minimum requirement as
to capital of State banks in the same locality." (Sec.
32, Banking Laws, 1935; Sec. 31, Ch. 219, Laws of
1910, as amended by Ch. 294, Laws of 1931, and by
Ch. 498, Laws of 1935.)
Capital required.—The minimum capital required
for the organization of a bank "shall not apply to
any person, co-partnership, incorporated bank, or
other incorporated institution now engaged in the
banking business in this State, except in such cases
where said person, co-partnership, incorporated
banks or other incorporated institutions doing a banking business shall hereafter undertake to establish a
branch or branches outside of the city, town or village
in which they are now located. In such a case the
foregoing provisions relative to capital and surplus
shall be complied with, by adding to the capital and
surplus of the parent institution, the amount that
would be required hereunder if such branch or
branches were separately incorporated. * * *" (The
capital stock required is $25,000 for towns of less
than 15,000 inhabitants; $75,000 for cities with population between 15,000 and 50,000; $100,000 for cities
with population between 50,000 and 150,000; and
$500,000 for cities of over 150,000 inhabitants. In
addition a bank must have a surplus of 20 per cent
of its capital stock.) "* * * no branch shall hereafter be established by any bank, in the city, town or
village, where said bank is now located, until said
bank conforms to the requirements herein provided,
as to the minimum amount of capital stock for banks
in said city, town or village. For the purpose of this
section the term 'Bank' shall include savings institutions having a capital stock." (Sec. 20, Banking
Laws, 1935; Sec. 20, Ch. 219, Laws of 1910, as
amended by Ch. 268, Laws of 1920, Ch. 266, Laws of
1924, Ch. 294, Laws of 1931, and Ch. 528, Laws of
1933.)
"In the event that any trust company hereafter
stablishes a branch or branches outside of the city,
town or village in which it is now located, it shall
add for each branch established, to its paid-in-capital
the following sums and twenty per cent (20%)
thereof as additional surplus:" $25,000 for towns of

NOVEMBER

less than 15,000 inhabitants; $75,000 for cities with
population between 15,000 and 50,000; $100,000 for
cities with population between 50,000 and 150,000;
and $500,000 for cities of over 150,000 inhabitants,
unless the surplus and paid-in-capital is already sufficient. Provided, however, "that no branch shall hereafter be established by any trust company in the city,
town or village where said trust company is now
located and engaged in business, until said trust company conforms to the requirements herein provided
as to the minimum amount of surplus and capital
stock for a trust company in said city, town or
village." (Sec. 42, Banking Laws, 1935; Sec. 41, Ch.
219, Laws of 1910, as amended by Ch. 268, Laws of
1920, Ch. 266, Laws of 1924, Ch. 188, Laws of 1927,
Ch. 359, Laws of 1929, Ch. 294, Laws of 1931, Ch.
528, Laws of 1933, and Ch. 517, Laws of 1935.)
MASSACHUSETTS

Limited branch banking permitted.—A savings
bank "may, with the written permission of and under
regulations approved by the commissioner, maintain
and establish one or more branch offices or depots in
the town where its banking house is located, or in
towns not more than fifteen miles distant therefrom
where there is no savings bank at the time when such
permission is given." (Sec. 25, Ch. 168, Savings
Bank Laws, 1933; Sec. 25, Ch. 168, General Laws of
Massachusetts.)
The office or offices of any sayings bank proposing
to liquidate may, under certain circumstances, be
merged with another savings bank located within 25
miles, and such office or offices "may, with the permission of and under regulations approved by the
commissioner, be maintained as a branch office or
branch offices of the continuing bank." (Sec. 55,
Ch. 168, Savings Bank Laws, 1933; Sec. 55, Ch. 168,
General Laws of Massachusetts.)
A trust company "may, with the approval of the
board of bank incorporation, establish and operate
one or more branch offices in the town where its main
office is located, or in any other town within the same
county, not having commercial banking facilities.
* * * the restrictions in this section shall not extend
to branch offices authorized prior to June first, nineteen hundred and thirty-four." (Sec. 45, Ch. 172,
Trust Company Laws, 1933, as amended by Sec. 21,
Ch. 349, Acts of 1934; Sec. 45, Ch. 172, General Laws
of Massachusetts.)
"Any office or offices of a trust company the business of which has been taken over" by consolidation,
merger or purchase of assets by a "trust company
whose main office is located in the same county, or
any office or offices of a national banking association
the whole or a substantial part of the assets of which
is purchased or otherwise acquired by a trust company so located, may, with the approval of the commissioner, be maintained as a branch office or offices * * *." (Sec. 46, Ch. 172, Trust Company
Laws, 1933, as amended by Sec. 22, Ch. 349, Acts of
1934; Sec. 46, Ch. 172, General Laws of Massachusetts.)
The usual business of a co-operative bank "shall
be transacted at its office only, which shall be in the
town named in its agreement of association; but
moneys due the bank may be collected by the treasurer, * * * in such other places as may be designated by vote of the board of directors and approved
by the commissioner, and the bank may advertise




865

FEDERAL RESERVE BULLETIN

1936

these branches in such manner as the commissioner
may prescribe." (Sec. 11, Ch. 170, Co-operative
Bank Laws, 1934; Sec. 11, Ch. 170, General Laws of
Massachusetts.)
No foreign banking corporation "shall have more
than two offices or places of business in the commonwealth." (Sec. 44, Ch. 167, Savings Bank Laws,
1933; Sec. 44, Ch. 167, General Laws of Massachusetts.)
The board of bank incorporation may authorize a
Morris plan bank "to establish and operate one or
more branch offices in the city or town in which it is
authorized to do business under this chapter or in
any other city or town within the same county." This
shall not apply to any branch office wherever located,
established prior to January 1, 1935. (Sec. 4, Ch.
452, Acts of 1935; Sec. 12, Ch. 172A, General Laws
of Massachusetts, as amended by Sec. 4, Ch. 452, Acts
of 1935.)
Capital required.—In order for a trust company to
establish domestic branches, the aggregate total of
its capital and surplus account must not be less than
one-tenth of its aggregate deposit liability. (Sees.
21, 22, Chap. 349, Acts of 1934; Sees. 45, 46, Chap.
172, General Laws of Massachusetts.)
MICHIGAN

Branches permitted.—"No bank, heretofore licensed
to carry on a commercial and/or savings banking
business, may hereafter establish and maintain
branches within any incorporated or unincorporated
village, nor within any city, other than the incorporated or unincorporated village or city in which it
was originally licensed or chartered for the purpose
of carrying on a commercial and/or savings banking
business unless authorized by the written order of
the commissioner of the banking department of the
state of Michigan: * * *." (Sec. 11901, Eighth-a,
Banking Laws, 1936; Sec. 11901, Eighth-a, 1929 Compiled Laws, as amended by Public Act No. 3, 1933
Extra Session.)
Capital required.—No bank shall be authorized to
establish a branch "by the said banking commissioner
unless said bank has a capital and surplus of an
amount sufficient * * * to transact its business and
maintain offices in the larger of any city in which
such branches or its principal office may be established." (Sec. 11901, Eighth-a, Banking Laws, 1936;
Sec. 11901, Eighth-a, 1929 Compiled Laws, as
amended by Public Act No. 3, 1933 Extra Session.)
MINNESOTA

Branches prohibited.—"No bank or trust company
organized under the laws of this state shall maintain
a branch bank or receive deposits or pay checks
within this state except at its own banking house,
* * *." (Banking Laws, 1933, p. 50; Ch. 170, Laws
of 1923.)
MISSISSIPPI

Limited branch banking permitted.—"Banks may
establish branch banks under the restrictions prescribed in this act, but no branch bank may be established unless the parent bank shall have first obtained
from the state comptroller, the attorney general and
the governor, or a majority thereof, a certificate that
the public convenience and necessity will be promoted
by the establishment of such branch bank. * * *."
(Sec. 63, Banking Laws, 1936; Ch. 146, Laws of
1934.)

866

FEDERAL RESERVE BULLETIN

"Branch banks may be established within a radius
of one hundred miles of the parent bank provided
that no parent bank shall be permitted to establish
more than fifteen branch banks; provided further
that no parent bank shall be permitted to establish a
branch bank in any town or city of less than 3,100
population according to the last preceding Federal
census where such town or city has one or more banks
in operation." (Sec. 66, Banking Laws, 1936; Ch.
146, Laws of 1934, as amended by Ch. 167, Laws of
1936.)
"National banks are hereby granted the right and
authority to establish branches in this state, with the
same rights and under the same restrictions as state
banks establishing branches. * * *" (Sec. 71, Banking Laws, 1936; Ch. 146, Laws of 1934.)
Limited branch offices permitted.—"The state
comptroller may permit banks to establish branch
offices within the corporate limits of the city where
the bank is domiciled when the population is not less
than 10,000, and within the limits of the county
wherein such bank is domiciled, and within the limits
of any county adjacent to the county within which
such bank is domiciled; provided no branch office
shall be established in any town or city of less than
3,500 population where such town or city has one or
more banks or branch banks in operation. Such
offices shall not be considered branch banks within
the meaning of this act, and no additional capital
shall be required therefor. Such branch offices shall
not make loans, or do anything in connection with
the making of any loan by the parent or any other
banks, except to receive and transmit application for
loan to such parent or other bank." (Sec. 65, Banking Laws, 1936; Ch. 146, Laws of 1934, as amended
by Ch. 165, Laws of 1936.)
Capital required.—"All parent banks permitted to
establish branch banks shall have a paid-in, unimpaired capital (exclusive of reserves and undivided
profits) of not less than $100,000.00, and such minimum required capital shall be increased for each
branch bank established by an amount not less than
the minimum required capital for a unit bank in the
municipality in which the branch bank shall be established. Such portion of the $100,000.00 minimum
capital required by this section may be represented
by any class or classes of preferred stock as may be
approved by the state comptroller, but no branch
banking system shall be allowed to continue operation if the capital stock thereof at any time be reduced below $100,000.00 plus an amount for each
branch bank not less than the minimum required
capital for a unit bank in the municipality in which
such branch bank shall be established." (Sec. 67,
Banking Laws, 1936; Ch. 146, Laws of 1934.)
Other branch banking provisions.—"No branch
bank in this state may be discontinued or abandoned
without the consent in writing of the state comptroller first obtained. By and with such consent first
obtained, branch banks may be moved from one
municipality to another within the territory restriction provided in this act. * * *" (Sec. 69, Banking
Laws, 1936; Ch. 146, Laws of 1934, as amended by
Ch. 165, Laws of 1936.)
There are also provisions providing for: fee of
$50.00 for each application; issue of stock upon annexation of a unit bank as a branch; the formulation
by the state comptroller of rules and regulations for
the examination of branch bank systems; and stating
what shall be included in the name of the branch bank.




NOVEMBER

1936

(Sees. 63, 64, 68, 70, Ch. 146, Banking Laws, 1936;
Ch. 146, Laws of 1934.)
"Bank" denned.—"Whenever the word 'bank' is
used in any statute unless the context clearly shows
that it is intended to be limited in its application to
a particular character of bank, it shall include trust
companies, savings banks, branches of banks and
trust companies, and all other institutions subject to
the provisions of this chapter. * * *" (Sec. 2, Banking Laws, 1936; Ch. 146, Laws of 1934.)
MISSOURI

Branches prohibited.—"* * * no bank shall maintain in this state a branch bank, or receive deposits
or pay checks except in its own banking house." (Sec.
5354, Banking Laws, 1935, p. 16; Sec. 5354, Art. II,
Ch. 34, Rev. Stats, of Mo., 1929, as amended by Act
approved December 19, 1933.)
"* * * no trust company shall maintain in this
state a branch trust company or receive deposits or
pay checks except in its own banking house." (Sec.
5421, Banking Laws, 1935, p. 21; Sec. 5421, Art. Ill,
Rev. Stats, of Mo., 1929, as amended by Act approved
December 19, 1933.)
MONTANA

Branches prohibited—exception.—"No bank shall
maintain any branch bank, receive deposits or pay
check, except over the counter of and in its own
banking house. * * *" (Sec. 101, Ch. 89, Banking
Laws, 1933.)
"When any two or more banks located in the same
county or in adjoining counties shall consolidate
* * * the consolidated bank may, * * * upon the
written consent of the Superintendent of Banks and
under rules and regulations promulgated by him,
maintain and operate offices in the locations of the
consolidating banks." (Banking Laws, 1933, p. 94;
Sec. 1, Chap. 129, 1931 Session Laws.)
Capital required.—A consolidated bank, in order to
operate offices in the locations of the consolidating
banks, must have a paid-up capital of $75,000.00 or
more. (Banking Laws, 1933, p. 94; Sec. 1, Ch. 129,
1931 Session Laws.)
"Bank" defined.—"The word 'Bank,' as used in
this Act, shall be construed to mean any corporation
which shall have been incorporated to conduct the
business of receiving money on deposit, or transacting a trust or investment business as hereinafter defined. * * * Banks are divided into the following
classes: (a) Commercial Banks, (b) Savings Banks,
(c) Trust Companies, (d) Investment Companies,
* * *" (Sec. 2, Ch. 89, Banking Laws, 1933.)
NEBRASKA

Branches prohibited.—"No bank shall maintain
any branch bank, receive deposits or pay checks, except over the counter of and in its own banking
house. * * *" (Banking Laws, 1935, p. 21; Sec. 8-1,
118, Compiled Statutes of Nebraska, 1929.)
NEVADA

Branches permitted.—State banks "may maintain
branch offices, but the location of the principal office
and the parent bank shall be within the State of
Nevada, and the location of all branch offices shall
be fixed in the articles of incorporation, and additional branches may be from time to time established
by the board of directors with the written consent of

NOVEMBER

FEDERAL RESERVE BULLETIN

1936

the superintendent of banks. * * *" (Seel—Tenth,
Banking Laws, 1935; Sec. 1—Tenth, Ch. 190, 1933
Nevada Laws, as amended by Sec. 1, Ch. 147, 1935
Laws.)
Capital required.—"* * * Banks which shall have
not more than one branch within the county wherein
is located the principal office and the parent bank
shall have a paid-up capital and surplus of at least
$60,000, and for every additional branch within such
county and for every branch of any bank, which
branch is located in any county of the state other than
that in which the principal office and parent bank is
located, there shall be required at least $25,000 of
capital and surplus in addition to the minimum requirements of this section." (Sec. 1—Tenth, Banking Laws, 1935; Sec. 1—Tenth, Ch. 190, 1933 Nevada
Laws, as amended by Sec. 1, Ch. 147, 1935 Laws.)
Other branch banking provisions.—Every bank
shall pay a license fee and an annual fee of "$100
for each branch bank, or branch office, by it maintained." (Sec. 47, Banking Laws, 1935; Sec. 47, Ch.
190, 1933 Nevada Laws, as amended by Sec. 10, Ch.
147, 1935 Laws.)
"Bank" defined.—"The words 'corporation,' 'association/ 'banking corporation/ 'bank/ 'trust company/ or 'banker/ as used in this act, shall refer to
and include banks, savings banks and trust companies, * * *" (Sec. 87, Banking Laws, 1935; Sec.
87, Ch. 190, 1933 Nevada Laws.)
NEW HAMPSHIRE

Branches unauthorized.—There are no provisions
in the laws of New Hampshire permitting or prohibiting branch banking.
NEW JERSEY

Limited branch banking permitted.—State banks
(other than savings banks) and trust companies
"may establish and maintain branch offices or agencies for the transaction of their business, with the
approval in writing of the Commissioner of Banking
and Insurance, which approval shall be given by him
only if it shall appear to him that the establishment
of such branch office or agency will be of public
service; * * * nor shall such approval be given for
the establishment of any such branch office or agency
outside the city, town, township, borough or village
in which such bank or trust company is located, nor
shall any bank or trust company maintain and operate a branch office or agency within the corporate
units of a city, town, township, borough or village
where the population by the last decennial census is
less than twenty thousand; nor more than one such
branch where such population by said census is more
than twenty thousand and not more than forty thousand; nor more than two such branches where such
population by said census is more than forty thousand
and not more than eighty thousand, and where such
population by said census is more than eighty thousand the number of such branches shall be such as
may be determined by the Commissioner of Banking
and Insurance; provided, that nothing in this act
contained shall prevent the maintenance of any
branch office or agency heretofore lawfully established." (Banking Laws, 1935, p. 152; P. L. 1925,
Ch. 27, p. 85, as amended by P. L. 1933, Ch. 65.)
There is also a statute providing for the holding
by the Commissioner of Banking and Insurance of a
public hearing before he shall authorize the estab-




867

lishment of a branch by a bank or trust company, and
indicating how publication of this hearing shall be
made and who shall receive notice of such hearing.
This statute provides further "that in any case
where application is made to establish and maintain
a branch office or agency at a location then occupied
by any bank, savings bank, trust company or national
banking association, in liquidation or in contemplation of liquidation, the commissioner may act immediately thereon without the prior notice, publication
and hearing above provided for, and if it shall appear
to the commissioner that the establishment and maintenance of such branch office or agency will tend to
continue an established banking business at said
location, and that it is in the public interest that such
established banking business should be so continued,
the commissioner may approve such application effective upon or after the discontinuance of such established banking business by the corporation theretofore occupying such location." (Banking Laws, 1935,
p. 154; Laws of 1929, Ch. 294, p. 686, as amended
by Laws of 1931, 4th Special Session, Ch. 418, Supplementing P. L. 1925, Ch. 27, p. 85.)
"Whenever application shall be made by any bank
or trust company to establish or maintain a branch
office or agency at a location in the same county, then
occupied by any bank, savings bank, trust company
or national banking association in liquidation or in
contemplation of liquidation, the entire assets of
which have been or shall be purchased or otherwise
acquired by the bank or trust company making such
application, and it shall appear to the commissioner
that the establishment and maintenance of such
branch office or agency will be of public service and
will tend to continue an established banking business
at said location and the bank or trust company making such application shall have the capital required
by the act to which this is a supplement, said commissioner may approve such application immediately
and without notice and effective upon or after the
discontinuance of such established banking business
by the corporation theretofore occupying such location." (Banking Law, 1935, p. 155; P. L. 1933, Ch.
192.)
There are provisions in connection with the merger
of banks with banks, trust companies with trust
companies, or banks with trust companies, authorizing, upon the approval of the Commissioner of Banking and Insurance, the establishment of branches at
the location or locations of the office or offices of the
merged corporations in the same county if the merger
is under provisions authorizing the merger of such
corporations in the same county, or the establishment
of branches in the same municipality if the merger
is under provisions authorizing the merger of such
corporations in the same municipality, provided the
merged corporation has $50,000 capital if a bank, or
$100,000 if a trust company, for each office to be
maintained by it. The law also provides that in the
case of merger of corporations in the same municipality, only one office may be maintained if the population is less than 20,000, not more than two offices
if the population is between 20,000 and 40,000; not
more than three offices if the population is between
40,000 and 80,000; and where such population exceeds
80,000, only such number of offices as the Commissioner of Banking and Insurance may approve.
(Banking Laws, 1935, p. 61; P. L. 1925, Ch. 198, p.
474, sec. 9, as amended by P. L. 1933, Ch. 59, supplementing P. L. 1899, Ch. 173) ; (Banking Laws, 1935,

868

FEDERAL RESERVE BULLETIN

p. 114; P. L. 1925, Ch. 197, p. 469, sec. 9, as amended
by P. L. 1933, Ch. 58 and P. L. 1933, Ch. 408, supplementing P. L. 1899, Ch. 174) ; (Banking Laws, 1935,
p. 150; P. L. 1925, Ch. 203, p. 484, as amended by
P. L. 1933, Ch. 60.)
Any savings bank "incorporated under the laws of
this State may establish, with the written approval
of the commissioner of banking and insurance, and
maintain branch offices or agencies for the transaction of its business; provided, that the approval of
the commissioner of banking and insurance shall be
given by him only if he shall be of the opinion that
the establishment of such branch office or agency will
be beneficial to the public; * * * and provided further,
that such branch office or agency shall be established only within the corporate limits of the municipality (other than county) in which such savings
bank is located; and provided, further, that no such
branch office or agency shall be established in any
municipality (other than county) if the population
thereof be less than twenty-five thousand, according
to the latest decennial, State or Federal census, and
not more than one such branch office or agency shall
be established by any such savings bank if the
population of the municipality wherein the same is
located be, according to such census, less than fifty
thousand, and no more than two such branch offices
or agencies shall be established by such savings bank
if the population of such municipality, according to
such census, be less than one hundred thousand."
(Banking Laws, 1935, p. 7; P. L. 1925, Ch. 228,
p. 552, as amended by P. L. 1927, Ch. 34, p. 75.)
"Any savings bank may discontinue any such
branch office or agency with the written approval of
the commissioner of banking and insurance, and upon
such prior public notice as he shall prescribe."
(Banking Laws, 1935, p. 8; P. L. 1925, Ch. 228,
p. 553.)
"The merged or consolidated savings bank may
continue to maintain branch offices or agencies for
the transaction of its business established pursuant
to law by either or both of the merging or consolidating savings banks." (Banking Laws, 1935, p. 41;
P. L. 1929, Special Session, Ch. 1, p. 843.)
Capital required.—"* * * nor shall the establishment of such branch office or agency be approved by
the Commissioner of Banking and Insurance unless
the capital of such bank actually paid-in in cash shall
exceed the amount required by law for the incorporation of a bank to the extent of fifty thousand dollars,
and the capital of such trust company actually paidin in cash shall exceed the amount required by law
for the incorporation of a trust company to the extent of one hundred thousand dollars for each branch
office or agency so established, * * *." (Banking
Laws, 1935, p. 152; P. L. 1925; Ch. 27, p. 85, as
amended by P. L. 1933, Ch. 65.)
"* * * any savings bank establishing such branch
office or agency shall have, according to its last annual report, a surplus of not less than five per
centum of the amount of its deposits and, in addition, fifty thousand dollars of surplus for each
branch office or agency established, over and above
said five per centum of the amount of deposits;
* * *." (Banking Laws, 1935, p. 7; P. L. 1925, Ch.
228, p. 552, as amended by P. L. 1927, Ch. 34, p. 75.)
Other branch banking provisions.—There is a provision authorizing the change of location of a trust
company of its principal or main office to the location of a branch office or agency; and the change of




NOVEMBER

1936

location of a branch office or agency to the location
of its principal or main office. (Banking Laws, 1935,
p. 119; P. L. 1921, Ch. 75, p. 121, Supplementing
P. L. 1899, Ch. 174, p. 450.)
NEW MEXICO

Branches prohibited but limited "agencies" permitted.—"Every bank shall be conducted at a single
place of business, and no branch thereof shall be
maintained elsewhere; provided, however, that nothing herein contained shall be construed to prohibit
any mercantile corporation which maintains a banking department in accordance with the provisions of
this Act, from receiving deposits and buying and
selling exchange at any of its branch stores;
"Provided, Nothing herein contained shall prevent
any bank from opening an Agency or Agencies, for
the purpose of accepting deposits, cashing checks and
buying and selling exchange, in the same county in
which said bank is located, in an adjoining county
if there be no bank in operation in such adjoining
county, or within a radius of one hundred (100)
miles from said bank if there be no bank in operation
in the county in which such Agency is opened; and
provided further, that a permit to open such Agency
or Agencies shall first be obtained from the State
Bank Examiner."
A fee of $25.00 is made for the examination of
each Agency, which shall be examined at the same
time the parent bank is examined. (Sec. 47, Ch. 67,
Laws of 1915, as amended by House Bill No. 72 of
the Twelfth Legislature; Sec. 13-148, New Mexico
Statutes Annotated, 1929, as amended by 1935 session Laws, Ch. 62.)
Capital required.—No additional capital is required
for the operation of agency with limited functions.
"Bank" denned.—"The word 'Bank' as used in this
act includes every person, firm, company, co-partnership or corporation, except National Banks, engaged
in the business of banking in the State of New
Mexico. Banks are divided into the following
classes: (a) Commercial Banks; (b) Savings Banks;
and (c) Trust Companies." (Sec. 2, Chap. 67, Bank
Act of 1915; Sec. 13-102, New Mexico Statutes Annotated, 1929.)
NEW YORK

Limited branch banking permitted.—No bank or

trust company "or any officer or director thereof,
shall transact its usual business * * * at any place
other than its principal place of business, except as
follows:
"(a) A bank" or trust company "in a city which
has a population of more than fifty thousand may
open and occupy in such city one or more branch
offices, whether or not such city is located entirely
within one banking district, and
"(b) A bank" or trust company "may open and
occupy a branch office or branch offices in any city
or village located in the banking district in which is
located its principal office, provided in no event shall
a branch be opened and occupied pursuant to this
paragraph (b) in a city or village in which are
already located one or more banks, trust companies
or national banking associations, except for the purpose of acquiring by merger, sale or otherwise the
business and property of one or more of such banks,
trust companies or national banking associations,
whether in liquidation or doing business in the usual
course.

NOVEMBER

1936

"2. Before any branch or branches shall be opened
and occupied pursuant to paragraphs (a) and (b)
of subdivision one of this section:
"(a) the Superintendent shall have given his
written approval as provided in section fifty-one of
this chapter and the banking board shall have given
its approval by a two-thirds vote of all the members.
"3. Any bank" or trust company "may with the
written approval of the superintendent open and occupy a branch office or branch offices in one or more
places located without the state of New York, either
in the United States of America or in foreign countries." (Sees. 110,195, Banking Law, 1935.)
No savings bank, "or any officer or director
thereof, shall transact its usual business at any place
other than its principal place of business, without the
written permission of the superintendent of banks
* * * except that it may, providing the merger
agreement so provide, continue to occupy and maintain as a branch office, the place of business occupied
and maintained at the time of merger by any savings
bank which it has received into itself by merger
* * *." (Sec. 245(2), Banking Law, 1935.)
"Upon written approval of the superintendent of
banks, * * * a savings bank, located in a city of the
first class, may open and occupy within said city one
branch office, and if such city comprises more than
one county or borough, such branch office may be
located only in the same county or borough in which
its main office is located. * * *" (Sec. 245(3), Banking Law, 1935.)
Industrial banks may establish branches upon approval by the superintendent of banks. (Sec. 292(6),
Banking Law, 1935.)
Capital required.—For a bank, "before any branch
or branches shall be opened and occupied * * *
"The actual paid-in capital of such bank shall
exceed by the sum of one hundred thousand dollars
the amount required by section one hundred of this
article for each branch opened since the twentyseventh day of April, nineteen hundred and eight;
and by the sum of fifty thousand dollars for each
branch opened previous to said date and hereafter
maintained." (Sec. 110, Banking Laws, 1935.)
Section 100 referred to above provides for the organization of banks and provides in part that "* * *
capital stock shall amount to not less than:
"(a) Twenty-five thousand dollars, if the place
where its business is to be transacted is an incorporated or unincorporated village the population of
which does not exceed two thousand;
" (b) Fifty thousand dollars, if the place where its
business is to be transacted is an incorporated or
unincorporated village or a city the population of
which exceeds two thousand but does not exceed
thirty thousand;
"(c) One hundred thousand dollars, if the place
where its business is to be transacted is a city the
population of which exceeds thirty thousand." (Sec.
100, Banking Laws, 1935.)
For a trust company, "before any branch or
branches shall be opened and occupied * * *
"The actual paid in capital of such trust company
shall exceed by the sum of one hundred thousand
dollars the amount required by section one hundred
and eighty of this article for each branch opened."
(Sec. 195, Banking Laws, 1935.)
Section 180 referred to above provides for the organization of trust companies and provides in part
that "capital stock shall amount to not less than:




869

FEDERAL RESERVE BULLETIN

"(a) One hundred thousand dollars, if the place
where its business is to be transacted is an incorporated or unincorporated village or city the population of which does not exceed twenty-five thousand.
" (b) One hundred and fifty thousand dollars, if
the place where its business is to be transacted is a
city the population of which exceeds twenty-five
thousand but does not exceed one hundred thousand.
"(c) Two hundred thousand dollars, if the place
where its business is to be transacted is a city the
population of which exceeds one hundred thousand
but does not exceed two hundred and fifty thousand.
"(d) Five hundred thousand dollars, if the place
where its business is to be transacted is a city the
population of which exceeds two hundred and fifty
thousand." (Sec. 180, Banking Laws, 1935.)
Other branch banking provisions.—The approval
of the superintendent of banks of an application by
a State bank, trust company or savings bank for
leave to open a branch office is made dependent upon
whether or not he considers that "the granting of
such application is expedient and desirable" after
he has made "such investigation as he may deem
necessary to ascertain whether the public convenience and advantage will be promoted by the opening
of such branch office." Every savings bank intending to establish a branch must so notify every other
savings bank within the county in which the proposed branch is to be established. (Sees. 51, 245(3),
Banking Laws, 1935.)
"Banking district" defined.—"The state is hereby
divided into nine banking districts, which shall be
arranged as follows:
"The first banking district shall consist of the counties of Kings, Queens, Nassau and Suffolk;
"The second banking district shall consist of the
counties of Richmond, New York and Bronx;
"The third banking district shall consist of the
counties of Westchester, Rockland, Putnam, Dutchess, Orange, Ulster and Sullivan;
"The fourth banking district shall consist of the
counties of Columbia, Rensselaer, Washington,
Greene, Albany, Schenectady, Saratoga, Warren,
Essex, Schoharie, Montgomery, Fulton, Hamilton,
Otsego and Clinton;
"The fifth banking district shall consist of the
counties of Jefferson, Lewis, Saint Lawrence and
Franklin;
"The sixth banking district shall consist of the
counties of Herkimer, Madison, Oneida, Onondaga,
Oswego, Cayuga and Seneca;
"The seventh banking district shall consist of the
counties of Chemung, Schuyler, Tioga, Tompkins,
Broome, Delaware, Cortland and Chenango;
"The eighth banking district shall consist of the
counties of Monroe, Wayne, Livingston, Ontario,
Yates and Steuben;
"The ninth banking district shall consist of the
counties of Chautauqua, Cattaraugus, Allegany,
Erie, Niagara, Wyoming, Genesee and Orleans."
(Sec. 4, Banking Laws, 1935.)
NORTH CAROLINA

Branches permitted.—"Any bank doing business
under this chapter may establish branches in the
cities in which they are located, or elsewhere, after
having first obtained the written approval of the commissioner of banks, which approval may be given or'
withheld by the commissioner of banks, in his discretion, and shall not be given until he shall have

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FEDERAL RESERVE BULLETIN

ascertained to his satisfaction that the public convenience and advantage will be promoted by the opening of such branch. Such branch banks shall be
operated as branches of and under the name of the
parent bank, and under the control and direction of
the board of directors and executive officers of said
parent bank. The board of directors of the parent
bank shall elect a cashier and such other officers as
may be required to properly conduct the business of
such branch, and a board of managers or loan committee shall be responsible for the conduct and management of said branch, but not of the parent bank
or of any branch save that of which they are officers,
managers, or committee: * * *"
(Sec. 220(r),
Banking Laws, 1935.)
Every industrial bank shall have power "to establish branch offices or places of business within the
county in which its principal office is located, and elsewhere in the state, after haying first obtained the
written approval of the commissioner of banks * * *
in his discretion: * * • " (Sec. 225(f) (4), Banking
Laws, 1935.)
"Bank" defined.—"The term 'bank' shall be construed to mean any corporation, partnership, firm,
or individual receiving, soliciting, or accepting money
or its equivalent on deposit as a business: Provided,
however, this definition shall not be construed to include building and loan associations, Morris plan
companies, industrial banks or trust companies not
receiving money on deposit." (Sec. 216(a), Banking
Laws, 1935.)
Capital required.—"* * * the commissioner of
banks shall not authorize the establishment of any
branch, the paid-in capital stock of whose parent
bank is not sufficient in an amount to provide for the
capital of at least twenty-five thousand dollars for
the parent bank, and at least twenty-five thousand
dollars for each branch which it is proposed to establish in cities or towns of three thousand population
or less; nor less than thirty thousand dollars in cities
and towns whose population exceeds three thousand,
but does not exceed ten thousand; nor less than fifty
thousand dollars in cities and towns whose population exceeds ten thousand, but does not exceed twentyfive thousand; nor less than one hundred thousand
dollars in cities and towns whose population exceeds
twenty-five thousand. All banks operating branches
prior to February 18, 1921, shall, within a time limit
to be prescribed by the commissioner of banks, cause
said branch bank to conform to the provisions of this
section: Provided, however, that any bank with «
capital stock (including both common and preferred)
of one million ($1,000,000.00) dollars or more which
qualifies for non-assessable stock under the provisions
of sections 219 (a) 1 et seq., may without additional
capital establish and operate such number of branches
or agencies in the state of North Carolina as the
commissioner of banks may in his discretion permit;
but a bank operating branches under this proviso
shall at all times maintain an unimpaired capital of
at least one million ($1,000,000.00) dollars: Provided
further, that the commissioner of banks shall not permit the establishment of additional branches, and/or
agencies unless said bank maintains its capital stock
and surplus in ratio of one to ten to its deposits;
Provided that in small communities having no other
banking facilities, and upon a finding by the commissioner of banks that the public convenience and advantage will be promoted thereby, the opening of
'tellers window agencies or branches' of then existing




NOVEMBER 1936

banks may be permitted, but no more than one such
agency or branch may be so opened in any one community nor shall any bank be permitted to open such
an agency or branch when its unimpaired capital and
surplus" is less than 10 per cent of its deposits. (Sec.
220(r), Banking Laws, 1935.)
In connection with industrial bank branches, "the
commissioner of banks shall not authorize the establishment of any branch the paid-in capital of whose
parent bank is not sufficient in amount to provide for
the capital of at least twenty-five thousand dollars
($25,000.00) for the parent bank and at least twentyfive thousand dollars ($25,000.00) for each branch
which it is proposed to be established in cities or
towns of fifteen thousand population or less; nor less
than fifty thousand dollars ($50,000.00) in cities or
towns whose population exceeds fifteen thousand but
does not exceed twenty-five thousand; nor less than
one hundred thousand dollars ($100,000.00) in towns
whose population exceeds twenty-five thousand."
(Sec. 225(f) (4), Banking Laws, 1935.)
NORTH DAKOTA

Branches unauthorized.—There are no provisions
in the North Dakota laws permitting or prohibiting
branch banking.
OHIO

Limited branch banking permitted.—"No branch
bank shall be established until the consent and the
approval of the superintendent of banks has been
first obtained, and no bank shall establish a branch
bank in any place other than that designated in its
articles of incorporation, except in a citv or village
contiguous thereto, or in other parts of the county
or counties in which the municipality containing the
main bank is located, provided, however, that any
bank may maintain and operate as a branch bank a
bank located in a county contiguous to the county or
counties in which the municipality containing the
main bank is located, and which on the first day of
January, 1935, and prior thereto, bore to the main
bank the relationship of affiliate within the meaning
of that term as the same is used in the 1933 banking
act of the United States and the amendments thereto.
If such consent and approval is refused, an appeal
may be taken therefrom in the same manner as is
provided in section 710-45 of the General Code."
(Sec. 710-73, Banking Laws, 1935.)
Capital required.—"No bank shall hereafter be
permitted to establish a branch or branches * * *
unless such bank has, in addition to the minimum
capital herein required, sufficient capital equal to a
minimum of thirty-five thousand dollars for each
such branch to be established in a village the population of which is less than five thousand; an additional minimum of fifty thousand dollars for each
such branch to be established in a city or village the
population of which exceeds five thousand but does
not exceed twenty-five thousand and an additional
minimum of one hundred thousand dollars for each
such branch to be established in a city, the population
of which exceeds twenty-five thousand." (Sec. 71037, Banking Laws, 1935.)
These capital requirements shall not apply to any
branches heretofore established. (Sec. 710-38, Banking Laws, 1935.)
Other branch banking provisions.—There is a provision as to yearly fees to be paid the State for the

NOVEMBER

871

FEDERAL RESERVE BULLETIN

1936

quiring every such foreign bank to "maintain a capital and surplus which must equal at least 10 per
cent of the deposit liabilities of such foreign bank."
(Sec. 22-1303, Banking; Laws, 1930.)
Other branch banking provisions.—There are also
provisions as to the application to the superintendent
of banks for the establishment of a branch; fee for
filing such application; advertising by the branch;
OKLAHOMA
to superintendent as to deposits received;
Branches unauthorized.—There are no provisions reports
removal
or discontinuance of such branches, fees for
in the Oklahoma banking laws permitting or pro- examinations;
and related matters. (Ch. 150, 1933
hibiting branch banking.
Oregon Laws.)

operation of each branch. (Sec. 710-17, Banking
Laws, 1935.)
"Bank" defined.—The term "bank" includes commercial banks, savings banks, trust companies, special plan banks, and unincorporated banks. (Sec.
710-2, Banking Laws, 1935.)

OREGON

PENNSYLVANIA

Branches permitted.—"Any bank or trust company
* * * may establish and maintain one or more
branch offices at any place within the state of Oregon; * * *."
"Any bank or trust company located in a county
of less than 200,000 population, according to the last
previous federal census, may establish and maintain
one or more branch offices at any place within the
county or outside the county within the tributary
trade area as such may be determined by the superintendent of banks; * * *."
"No branch shall be established in any city, town,
village or community of less than 50,000 population
according to the last previous federal census where
there is a national or state bank regularly transacting a customary banking business, except by taking
over an existing national or state bank or trust company or trust department within said city, town, village or community." (Ch. 150, 1933 Oregon Laws,
as amended by Ch. 96, Laws of 1933, 2nd Special
Session.)
Every trust company with power to examine and
guarantee titles to real estate may establish and
maintain branches for that purpose, provided that
such trust company shall not do any banking or trust
business at such branches. (Sec. 22-1213, paragraph
16, Oregon Code of 1930, as amended by Sec. 16, Ch.
278, Laws of 1931.)
Capital required.—For state-wide branch banking,
or for the establishment of any branch in the same
county as the parent institution in those cases where
the parent institution is located in a county having
a population of 200,000 or more, $1,000,000 unimpaired capital actually paid-in, but trust companies
not receiving commercial or savings deposits need
only have $500,000 capital. The unimpaired capital
and surplus must equal the aggregate amount which
would be required by law to organize banks in those
places where the main office and branches are to be
located.
No minimum capital is required for the establishment of branches "within the same county or outside
the county within the tributary trade area" if the
county in which the bank or trust company is located
has less than 200,000 population; but an unimpaired
capital and surplus equal to the aggregate amount
which would be required by law to organize banks in
those places where the main office and branches are
to be located is required. (Oregon Laws of 1933, Ch.
150, as amended by Ch. 96, Sec. 1, Laws of 1933, 2nd
Special Session.)
There is a provision requiring foreign banks or
trust companies maintaining offices in this state to
"maintain at every such office a capital of not less
than the amount required by this act for the organization of other banks or trust companies" and re-

Limited branch banking permitted.—A bank or a
bank and trust company shall have power "to establish branch banks, branch offices, agencies, sub-offices,
sub-agencies, and branch places of business, as permitted in this act;" (Act of May 15, 1933, P. L. 624,
sec. 1001, A-15, as amended by Act of January 2,
1934, P. L. 128, sec. 1, and Act of June 11, 1935, P. L.
306, sec. 1.)
A trust company shall have power "to establish
branch trust companies, branch offices, agencies, suboffices, sub-agencies, and branch places of business, as
permitted in this act;" (Act of May 15, 1933, P. L.
624, sec. 1001, B-4, as amended by Act of January 2,
1934, P. L. 128, sec. 1, and Act of June 11, 1935, P. L.
306, sec. 1.)
A savings bank shall have power "to establish
branch savings banks, branch offices, agencies, suboffices, sub-agencies, and branch places of business, as
permitted in this act;" (Act of May 15, 1933, P. L.
624, sec. 1202(9), as amended by Act of January 2,
1934, P. L. 128, sec. 1, and Act of June 11, 1935, P. L.
306, sec. 1.)
"A. An institution shall not establish, maintain,
or operate, either directly or indirectly, any branch
bank, branch office, agency, sub-office, sub-agency, or
branch place of business within this Commonwealth
for the transaction of any part of its business, but
all of the business of such institutions shall be carried on solely and exclusively at its principal place
of business, except as may be permitted by this act.
"B. Any institution may continue to maintain and
operate any branch bank, branch office, agency, suboffice, sub-agency, or branch place of business lawfully established by such institution.
"C. Any institution may, in the manner provided
by this act for an amendment to its articles, or in
pursuance of a plan of merger or consolidation, in
accordance with the provisions of this act, and in the
case of a private bank with the prior written approval of the department, establish a branch bank,
branch office, agency, sub-office, sub-agency, or branch
place of business at any place within this Commonwealth where, at the time such institution proposes
to establish such branch bank, branch office, agency,
sub-office, sub-agency, or branch place of business,
any national banking association, having its principal
office in the same county as that in which the principal office of the institution proposing to take such
action is located, would have the power, under the
laws of the United States, now or hereafter enacted,
to establish a branch bank, branch office, agency, suboffice, sub-agency, or branch place of business of such
national banking association.
"D. Any institution may, in the case of an incorporated institution, in the manner provided in this
act for an amendment to its articles, or in pursuance




872

FEDERAL RESERVE BULLETIN

of a plan of merger or consolidation in accordance
with the provisions of this act, and in the case of a
private bank, with the prior written approval of the
department—(1) establish a branch bank, branch
office, agency, sub-office, sub-agency, or branch place
of business within the corporate limits of the city of
the first class or the second class in which the principal place of business of the institution is located,
or within the corporate limits of the city or borough
in which the principal place of business is located,
and in which the institution was authorized by law
to establish a branch bank, branch office, agency, suboffice, sub-agency, or branch place of business on the
first day of January, one thousand nine hundred and
thirty-five, and may (2), establish a branch bank,
branch office, agency, sub-office, sub-agency, or branch
place of business in any place within the county in
which its principal place of business is located, or in
any place within any county contiguous to the county
in which its principal place of business is located, if
the city, borough or other community in which such
branch bank, branch office, agency, sub-office, subagency, or branch place of business is to be established is without banking facilities, or, in the case of
a merger or consolidation, is without banking facilities other than an institution or national banking
association which is a party to the plan of merger or
consolidation in accordance with this act.
"Provided, that an institution shall not have the
power to establish a branch bank, branch office,
agency, sub-office, sub-agency, or branch place of
business in any county, other than the county in
which its principal place of business is located, if a
branch bank, branch office, agency, sub-office, subagency, or branch place of business is at the same
time established or maintained, or is authorized by
the articles of incorporation, or otherwise, to be established or maintained in any county, other than the
county in which its principal place of business is
located by—
" (1) Another institution or national banking association with which such institution is affiliated; or
"(2) An institution or national banking association with which such other institution or national
banking association is affiliated; or
"(3) An institution or national banking association which is affiliated with any corporation or person
with which such other institution or national banking association is affiliated; or
"(4) An institution or national banking association which is affiliated with any corporation or person with which such institution is affiliated, * * *."
There are also provisions defining the term "affiliated." (Act of May 15, 1933, P. L. 624, sec. 204, as
amended by Act of December 30, 1933, P. L. 125, sec.
1, and Act of July 2, 1935, P. L. 507, sec. 1.)
"A private bank, which, upon the effective date of
this act, lawfully maintains one or more offices or
places of business in any other state or foreign country, may continue to maintain and operate any such
offices or places of business * * *." (Act of May 15,
1933, P. L. 624, sec. 203 (C), as amended by Act cf
June 21, 1935, P. L. 369, sec. 1.)
"Any merger or consolidation authorized by this
section shall not be effective if the effect thereof is to
establish any branch bank, branch office, agency, suboffice, sub-agency, or branch place of business in violation of the provisions of this act." (Act of May 15,
1933, P. L. 624, sec. 1401 (E), as amended by Act of
June 21, 1935, P. L. 369, sec. 1.)




NOVEMBER 1936

Capital required.—"* * * nor shall an institution
have the power to establish any branch bank, branch
office, agency, sub-office, sub-agency, or branch place
of business, unless, in the case of a bank, a bank
and trust company, or a trust company, its unimpaired capital and unimpaired surplus, respectively,
are equal to an amount, not less than the aggregate
capital and surplus, respectively, required by this act
for the incorporation of such number of similar institutions, as is equal to the total number of its places
of business, including such branch bank, branch office,
agency, sub-office, sub-agency, or branch place of
business, excepting that, if any place of business included in such total number is located or is to be
located in a borough or township, the population of
which does not exceed five thousand, not more than
fifty percentum of the capital and surplus, respectively, required by this act need be included for such
particular place of business in the aggregate capital
and surplus respectively required by this section, and
in the case of a savings bank, unless its surplus and
expense fund equal a minimum amount approved by
the department, and in the case of a private bank,
unless its net worth equals a minimum amount approved by the department." (Act of May 15, 1933,
P. L. 624, sec. 204, D-4, as amended by Act of December 30, 1933, P. L. 125, sec. 1, and Act of July 2,
1935, P. L. 507, sec. 1.)
Other branch banking provisions.—There are also
detailed provisions as to the procedure to be followed
when a bank, trust company or savings bank proposes to establish a new branch or when such a corporation proposes to merge with another corporation
and thereby establishes a branch. (Act of May 15,
1933, P. L. 624, sees. 806, 808, 1404 and 1406, as
amended by Act of July 2, 1935, P. L. 507, sec. 1.)
RHODE ISLAND

Branches permitted.—Any bank or trust company,
including a sayings bank, "may establish a branch or
branches within this state at any other place than its
principal place of business upon obtaining the consent of the board of bank incorporation thereto.
Said board of bank incorporation shall, before giving
such consent, require that a notice of such intention
to establish a branch or branches of said bank or
trust company shall be given for the same period of
time and in the same manner, and a hearing had
thereon, as is provided in the case of incorporation
of banks or trust companies" or savings banks.
(Sec. 9, Ch. 269 and Sec. 14, Ch. 270, Banking Laws,
1934; Ch. 269, Sec. 9 and Ch. 270, Sec. 14, General
Laws of Rhode Island.)
Capital required.—No additional capital is required.
SOUTH CAROLINA

Branches permitted by implication.
Capital required.—"Every banking company or
corporation hereafter organized shall * * * for each
branch bank that is established * * * have a total
unimpaired capital of at least Twenty-five Thousand
($25,000.00) Dollars above the minimum requirements herein set forth." (Sec. 23, Banking Laws,
1930, p. 11; Acts of 1928, Ch. 701, Sec. 2.)
"That from and after the passage of this Act
branch banks shall be required to have subscribed to
and paid in in cash, or allocated to, for each branch
established, the same amount of capital stock and
surplus as is now required for the establishment of

NOVEMBER

independent banks in any given locality in South
Carolina" namely, $25,000 in towns of 3,000 population or less; $50,000 in towns of between 3,000 and
10,000 population; and $100,000 in towns of over
10,000 population. (Sec. 25, Banking Laws, 1930,
p. 13; Acts of 1930, No. 813, p. 1353.)
There is also a provision which permits the organization of small banks with a lesser amount of
capital than that required by the general laws in
towns which have no banking facilities, but which
provides "that no branch bank shall be organized
under the provisions of this Act." (Act No. 775,
1932 Laws, Approved March 26, 1932.)
Other branch banking provisions.—Provision is
also made for the publication of statements of the
assets and liabilities of branch banks or offices, for
the examination of branch banks, and for the taxation of banks having branches. (Sees. 70, 98, 122,
Banking Laws, 1930, pp. 32, 53, 68.)
SOUTH DAKOTA

Branches permitted.—"A bank may establish and
operate branch banks within the State with the permission of the State Banking Commission, under
such rules and regulations as they shall prescribe,
not inconsistent with the laws of this State and permission to establish and operate branch banks within
the State shall rest solely in the discretion of the
State Banking Commission. * * * Branch banks
may be established by a bank consolidating with or
purchasing the assets of another bank situated in
the State and banks within the State are hereby
authorized to consolidate for such purpose. No
branch bank shall be established in any city or town
of less than three thousand (3,000) population where
there is an existing national or State bank regularly
transacting a customary banking business, except by
purchase of or consolidating with all existing banks
located in such city or town, and no branch bank
shall be established in any city or town of more than
3,000 population and less than 15,000 population
where there are two or more existing banks, either
State or national, legally transacting customary
banking business, except by purchase of or consolidating with an existing bank or banks located
in such city or town. * * *" (Ch. 2, Special Session
Laws of 1933.)
"Any bank or trust company operating under the
laws of this State is hereby authorized, subject to the
approval of the Superintendent of Banks, to establish an office within the county of its domicile, or
adjoining counties, for the purpose of receiving deposits, issuing drafts and cashier's checks, making
change, and paying checks, and performing such
other clerical and routine duties not inconsistent with
this act. Provided, however, that no such office shall
make loans or discounts, and that no such office shall
be continued in any town or city after a regular authorized banking corporation has received authority
to commence business in such town or city, and, provided that no more than one office shall be established
in any one town or city, and, provided further, that
nothing in this Act shall be deemed as authority for
the establishment of branch banks. Nothing in this
Section shall prohibit national banks the privileges
of this Section whenever they may be so authorized
by federal law." (Ch. 54, Laws of 1935, Act approved March 14, 1935.)
Capital required.—"* * * Such bank must have
a paid-in and unimpaired capital stock of not less




873

FEDERAL RESERVE BULLETIN

1936

than the aggregate minimum capital required by law
for the establishment of an equal number of banks
situated in the various places where such bank and
its branches are situated and not less than one
hundred thousand dollars. * * *" (Ch. 2, Special
Session Laws of 1933.)
Other branch banking provisions.—Provision is
also made for the taxation of branch banks. (Ch. 3,
Special Session Laws of 1933.)
TENNESSEE

Limited branch banking permitted.—"No corporation, firm, or individual, after said date, (April 6,
1925) shall create and operate any branch bank,
office, or agency, for the purpose of receiving deposits, paying checks, making loans, or receiving or
discounting bills or notes in any place whatsoever
other than the county wherein its principal office is
located and its principal banking business is carried
on." (Sec. 5950, Banking Laws, 1935; Sec. 5950,
William's and Shannon's Code of Tennessee, 1932.)
"This law shall not apply to branch banks, offices,
or agencies maintained and operated on April 6,
1925, by any corporation, firm or individual doing or
carrying on a banking business in the state in places
other than the county of this state wherein such
banking business is carried on." (Sec. 5949, Banking Laws, 1935; Sec. 5949, William's and Shannon's
Code of Tennessee, 1932.)
Capital required.—No additional capital is required.
TEXAS

Branches prohibited.—"* * * Such body corporate
(banking corporation) shall not be authorized to engage in business at more than one place, which shall
be designated in its charter. * * *" (Ch. 1, Sec. 4,
Banking Laws, 1933; Constitution, Art. 16, Sec. 16.)
"No banking corporation organized under the laws
of this State shall ever engage in business at more
than one place, which shall be designated in its
charter. No such corporation shall maintain a
branch bank, receive deposits or pay checks except
in its own banking house. * * *" (Ch. 6, Art. 538,
Banking Laws, 1933; Art. 538, Revised Statutes of
1925.)
UTAH

Branches permitted.—"The business of every bank
shall be conducted only at its banking house, and
every bank shall receive deposits and pay checks
only at its banking house, except as hereinafter
provided. Any bank having a paid in capital of not
less than $50,000 and a paid in capital and surplus
of not less than $100,000 may with the approval of
the bank commissioner and the governor, establish
and operate branches for the transaction of its business within this state: provided, that no bank shall
establish more than one branch for each $50,000 of
its paid in capital. No branch bank shall be established in any city, town or village in which is located
a bank or banks, state or national, regularly transacting a customary banking business unless the bank
seeking to establish such branch shall take over an
existing bank or obtain the consent of all banks
therein located, except that in cities of the first class,
branches may be established without such consent;
and provided further, that whenever application is
made for the establishment of any branch the commissioner shall give notice thereof by publication

874

FEDERAL RESERVE BULLETIN

in a newspaper of general circulation in the city or
town in which such branch is to be established and
shall hold a public hearing at a time and place
within such city or town, in such notice specified, at
which time any citizen may appear in support of or
opposition to such application. No unit bank hereafter organized and operating at a point where
there are other operating banks, state or national,
shall be permitted to be acquired by another bank
for the purpose of establishing a branch until such
bank shall have been in operation as such for a
period of five years.
"The term 'branch' as used in this act shall be
held to include any branch bank, branch office, branch
agency, additional office or any branch place of business at which deposits are received, or checks paid,
or money lent.
"Any bank desiring to establish one or more
branches, or offices, shall file a written application
therefor in such form and containing such information as the bank commissioner may require. No
bank shall be permitted to establish any branch
or office until it shall first have been shown to the
satisfaction of the bank commissioner and the governor that the public convenience and advantage will
be subserved and promoted by the establishment of
such branch or office and the bank commissioner
may by order permitting the establishment of such
branch or office designate and limit the character of
work and service which may therein be performed."
(Sec. 7-3-6, Banking Laws, 1935; Sec. 7-3-6, 1933
Revised Statutes, as amended by Sec. 1, ch. 6, Laws
of 1933.)
"* * * No loan and trust corporation shall open,
establish or maintain any branch office." (Sec.
7-4-7, Banking Laws, 1935; Sec. 7-4-7, 1933 Revised
Statutes.)
Capital required.—"* * * Any bank having a paidin capital of not less than $50,000 and a paid-in
capital and surplus of not less than $100,000 may
with the approval of the bank commissioner and the
governor, establish and operate branches for the
transaction of its business within this state; provided, that no bank shall establish more than one
branch for each $50,000 of its paid in capital. * * *"
(Sec. 7-3-6, Banking Laws, 1935; Sec. 7-3-6, 1933
Revised Statutes, as amended by Sec. 1, Ch. 6, Laws
of 1933.)
Other branch banking provisions.—There are pro-

visions requiring the assessment of a fee whenever
an application is made to establish a branch, and
making the laws relating to the examination of
banks applicable to such branches. (Sec. 7-3-6,
Banking Laws, 1935; Sec. 7-3-6, 1933 Revised Statutes, as amended by Sec. 1, Ch. 6, Laws of 1933.)
VERMONT

Branches permitted.—"A bank or trust company
incorporated under the laws of this state may establish and maintain agencies and branches for the
general transaction of a banking business in towns
other than that in which its main office is located.
"Before a savings bank, trust company or a savings
bank and trust company opens an agency or branch
of such corporation it shall petition the commissioner to hold a public hearing in the town where
the proposed agency is to be located, to determine
whether the establishment and maintenance thereof




NOVEMBER

1936

will promote the general good of the state. The
commissioner shall thereupon appoint a time and
place in such town for hearing the petition, and
shall make an order for the publication of the substance of the petition and of the time and place of
hearing three weeks successively in a newspaper
published in the county wherein such town is situated, or, for want thereof, in an adjoining county,
the last publication to be at least twelve days before
the day appointed for the hearing.
"If after the hearing the commissioner finds and
adjudges that the establishment and maintenance of
the proposed agency will promote the general good
of the state, he shall give the bank a certificate to
that effect under his seal.
"A savings bank, trust company or savings bank
and trust company shall not operate an agency not
certified by the commissioner as provided in the
preceding section.
"An agency of a bank which was in operation with
the permission of the commissioner prior to February 1, 1929, shall be permitted to continue." (Sec.
6676-6680, Banking Laws, 1934; Sec. 6676-6680, Ch.
272, Public Laws of Vermont.)
"* * * Any two or more banks located and doing
business in this state, with the approval of the commissioner, may merge or consolidate into a single
corporation to engage in the business of a savings
bank or trust company, or merge or consolidate with
a national bank, and the merged bank may establish
a branch at any location at which the bank discontinued by such merger or consolidation might have
conducted its business." (Sec. 6660, Ch. 272, Public
Laws of Vermont, as amended by Act No. 175, approved March 29, 1935.)
Capital required.—No additional capital is required.
VIRGINIA

Branches permitted.—"No bank or trust company
heretofore or hereafter incorporated under the laws
of this State shall be authorized to engage in business in more than one place, except that, (a) in its
discretion the State Corporation Commission may
authorize banks having a paid-up and unimpaired
capital and surplus of fifty thousand dollars or over
to establish branches within the limits of the city,
town, or village in which the parent bank is located.
"(b) The State Corporation Commission may, in
its discretion, also authorize banks located in any
city to establish branches within other cities having
a population of not less than fifty thousand inhabitants.
"(c) This section shall not be construed to prohibit the merger of banks in the same or adjoining
counties or of banks located within a distance of
twenty-five miles of a parent bank and the operation
by the merged company, of such banks, nor to prohibit the sale of any bank to, and the purchase
thereof by, any other bank in the same or adjoining
counties or within a distance of twenty-five miles and
the operation of such banks by the purchasing bank,
provided the approval of the State Corporation Commission is first had. The term 'adjoining counties/
where more than two are involved, shall be construed to mean counties each of which shall adjoin
the county in which the parent bank is located.
"(d) This section, however, shall not apply to
branch banks already established.
"(e) No branch bank heretofore or hereafter

established shall be operated or advertised under any
other name than that of the identical name of the
home bank, unless permission be first had and obtained from the State Corporation Commission, and
unless such different name shall contain or have
added thereto language clearly indicating that it is a
branch bank and of which bank it is a branch.
"Any bank or trust company violating the provisions of this section shall be liable to a fine of one
thousand dollars, to be imposed and judgment entered therefor by the State Corporation Commission,
and enforced by its process." (Sec. 4149 (14), Banking Laws, 1934.)
Every bank having a branch or branches shall be
assessed fifty dollars per branch as an examination
fee. (Sec. 4149 (56), Banking Laws, 1934.)
Capital required.—Banks or trust companies in
order to establish branches in the city, town or
village in which the parent bank is located, must
have a paid-in and unimpaired capital and surplus
of fifty thousands dollars or over. (Sec. 4149 (14)
(a), Banking Laws, 1934.)
WASHINGTON

Branches permitted—limitations.—"* * * nor shall
any bank or trust company establish any branch
except in accordance with the provisions of this act.
The practice of collecting or receiving deposits or
cashing checks at any place or places other than the
place where the usual business of a bank or trust
company and its operations of discount and deposit
are carried on shall be held and construed to be
establishing a branch: * * *" (Sec. 3222, Remington's Revised Statutes, as amended by Sec. 3, Ch.
42, Laws of 1933, approved February 27, 1933.)
"A bank or trust company having a paid-in capital
of not less than five hundred thousand dollars may,
with the approval of the supervisor of banking, establish and operate branches in any city or town
within the state. A bank or trust company having a
paid-in capital of not less than two hundred thousand dollars may, with the approval of the supervisor of banking, establish and operate branches
within the limits of the county in which its principal
place of business is located.
"No bank or trust company shall establish or
operate any branch in any city or town outside the
city or town in which its principal place of business
is located in which any bank, trust company or national banking association regularly transacts a
banking or trust business, except by taking over or
acquiring an existing bank, trust company or national banking association or the branch of any
bank, trust company or national banking association
operating in such city or town." (Sec. 3231-1 Remington's Revised Statutes, as added by Sec. 5, Ch. 42,
Laws of 1933, approved February 27, 1933.)
No savings bank "or any officer or director thereof
shall receive deposits or transact any of its usual
business at any place other than its principal place
of business or an authorized branch.
"A savings bank, with the approval of the supervisor of banking, may take over and operate one
branch in the city in which the principal place of
business of the bank is located, but only upon the
conditions and subject to the limitations following:
" (a) If the guaranty fund amounts to at least five
hundred thousand dollars.




875

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NOVEMBER 1936

"(b) Not more than three branches may be established in the county in which the principal place of
business of the bank is located, and none in any other
county.
"(c) A branch shall not be established at a place
at which the supervisor of banking would not permit
a proposed new savings bank to engage in business,
by reason of any consideration contemplated by section 4 of this act, being section 3316 of Remington's
Revised Statutes, the provisions of which, so far as
applicable, including those relating to appeals, shall
extend to applications to establish branches." (Sec.
3344, Remington's Revised Statutes, as amended by
Ch. 143, Laws of 1933, approved March 17, 1933.)
"The use of the term 'savings bank' in this act refers to mutual savings banks only. * * *" (Sec.
216, Banking Laws, 1929; Sec. 3378, Remington's
Revised Statutes.)
Capital required.—$200,000 paid-in capital in order
to establish branches within the same county as the
parent bank; and $500,000 paid-in capital in order to
establish branches elsewhere in the State.
"The aggregate paid-in capital stock of every bank
or trust company operating branches shall at no time
be less than the aggregate of the minimum capital
required by law for the establishment of an equal
number of banks or trust companies in the cities or
towns wherein the principal office or place of business of such bank or trust company and its branches
are located." (Sec. 3231-1 Remington's Revised
Statutes, as added by Sec. 5, Ch. 42, Laws of 1933,
approved Feb. 27, 1933.)
Mutual savings bank's guaranty fund must amount
to at least $500,000. (Sec. 3344, Remington's Revised
Statutes, as amended by Ch. 143, Laws of 1933, approved March 17, 1933.)
"Branch" of banks and trust companies defined.—
"The term 'branch bank' where used in this act,
means any office of deposit or discount maintained
by any bank or trust company, domestic or otherwise,
other than its principal place of business, regardless
of whether it be in the same city or locality." (Sec.
3221, Remington's Revised Statutes, as amended by
Sec. 2, Ch. 42, Laws of 1933, approved Feb. 27, 1933.)
Foreign Bank branch.—A branch of a foreign bank
which was in operation within this State at the time
the act of 1917 became effective and which branch
has a capital not less in amount than that required
for the organization of a State bank as provided in
that act at the time and place when and where such
branch was established, may continue its business
within the State. (Sec. 51, Banking Laws, 1929;
Sec. 3248, Remington's Revised Statutes.)
WEST VIRGINIA

Branches prohibited.—"No banking institution
chartered and authorized to engage in business under
the laws of this State, shall hereafter install or maintain any branch bank, or engage in business at any
place other than at its principal office in the state
of West Virginia: * * *" (Sec. 9, Ch. 31, Art. 4,
Banking Laws, 1931.)
WISCONSIN

Branches prohibited.—"* * * no bank shall establish more than one office of deposit and discount or
establish branch offices or branch banks, provided
that this prohibition shall not apply to any branch

876

FEDERAL RESERVE BULLETIN

office or bank established prior to May 14, 1909."
(Sec. 221.04 (1) (f), Banking Laws, 1935.)
No trust company shall "establish more than one
office of deposit nor establish nor maintain branches."
(Sec. 223.06, Banking Laws, 1935.)
Limited receiving and paying stations permitted.—
"(1) Any bank may establish and maintain a receiving and paying station in the manner provided in
this section, in any community not having adequate
banking facilities, anywhere within the county in
which the home office of the bank is located or anywhere in any adjoining county having a population
of less than sixteen thousand, or in any other county
if within the trade area of the home office of the bank
and not more than twenty-five miles from such home
office, but no bank shall be permitted to establish,
maintain or operate more than four such receiving
and paying stations nor any such station within four
miles of any other existing: bank or an authorized
receiving and paying station of any other bank; however, any such station in operation at the time of the
passage of this act shall not be subject to the fourmile limit.
"(2) Any bank desiring to establish such a receiving and paying station shall make application to
the banking commission in such manner and in such
form as shall be prescribed by the commission, giving
such information as the commission may require and
shall at the time of filing the application pay to the
commission twenty-five dollars to defray the cost of
investigation by the commission.
"(3) The banking commission shall thereupon
estimate from the best sources of information at its
command and by such investigation as it may deem
necessary whether public convenience and advantage
will be promoted by allowing such station to be established and maintained, and the commission shall also
investigate the management and the solvency of the
applicant bank, the adequacy of existing banking
facilities and the surrounding territory from which
the patronage would be drawn.
" (4) After completing such investigation, the commission shall make written report to the banking review board stating the results of its investigation
and its recommendation. The said board shall consider the matter, conducting any hearing it may deem
necessary, and shall promptly make its decision approving or disapproving the establishment and maintenance of the proposed station. The decision of the
banking review board shall be final.
"(5) No bank when more than ten per cent of the




NOVEMBER

1936

stock is owned, held or controlled by any corporation, or by an association, investment trust or other
form of trust or by a chain bank or holding company,
shall be permitted to establish a receiving and paying
station.
"(6) No banking business shall be transacted in
any such station other than receiving and paying out
deposits, issuing drafts and travelers' checks, handling and making collections, and cashing checks and
drafts.
"(7) Whenever a paying and receiving station
shall be permitted to operate under this section, the
banking commission in each case shall prescribe the
rules and regulations for its operation.
"(8) Whenever the banking commission shall determine that the continued operation of any such
station will no longer promote public convenience and
advantage, and that it will prove detrimental to the
bank operating such station, the commission shall
have written report thereon to the banking review
board. Said board shall promptly consider the matter and may hold a hearing thereon, and shall decide
whether or not the permit to operate such station
shall be revoked. If the review board decides that the
permit shall be revoked, it shall certify its decision
to the banking commission and said commission shall
forthwith order the discontinuance of such station
within such time as the commission may specify
therein. A copy of said order shall be transmitted
to the bank operating such station.
"(9) Whenever any bank, which has been granted
a permit to establish and maintain such a receiving
and paying station, shall deem it advisable to discontinue the maintenance of such station, it may
make written application to the banking commission
for the cancellation of its permit, and the commission
shall thereupon enter its order, cancelling such permit, within such time as the commission may specify
therein.
"(10) This section shall not be construed as committing the state in any manner to a policy of permitting branch banking." (Sec. 221.255, Banking
Laws, 1935.)
Capital required.—No additional capital is required for the operation of offices with limited functions.
WYOMING

Branches unauthorized.—There are no provisions
in the laws of Wyoming permitting or prohibiting
the establishment of branches.