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95 A meeting of the Board of Governors of the Federal Reserve 4.8tem was held in Washington on Saturday, May 25, 1940, at 11:00 a..ra. PRESENT: Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Ransom, Vice Chairman Szymczak Davis Draper Mr. Bethea, Assistant Secretary Mr. Clayton, Assistant to the Chairman The action stated with respect to each of the matters hereinreferred to was taken by the Board: The minutes of the meeting of the Board of Governors of the Reserve Ystem held on May 24, 1940, were approved unanimously. Letter to the board of directors of "The Mohawk State Bank", 11°4944t, Indiana, stating that, subject to conditions of membership tlItlbered 1 to 3 contained in the Board's Regulation H and the follow- IligsPecial 14°11aWk condition, the Board approves the application made by The State Bank, the presently operating institution, on behalf of "The ittohavilc State Bank", Mohawk, Indiana, a new corporation and proPosed successor bank, for membership in the Federal Reserve System kicl tor the appropriate amount of stock in the Federal Reserve Bank °t Chicago, e ffective if and when the new bank is duly authorized to et4tisnce b usiness and is entitled to the benefits of insurance under 4ction 12B of the Federal Reserve Act: "4. At the time of its admission to membership, such 796 5/25/4o "bank shall have paid-up and unimpaired capital stock of not less than I25,000 and a surplus of not less than ti',12,500, and shall have assets and liabilities substantially the same in amount and character (with due allowance for changes arising from the ordinary course of business) as shown in the certified statement of condition as of May 4, 1940, submitted to the Federal Reserve Bank of Chicago in connection with the application for membership." The letter also contained the following special comments: beh "Since the application for membership was made on aaf of the new bank by the presently operating insti;n°11, it is requested that, in connection with the acof the conditions of membership prescribed by the , Le Board, the board of directors of the new bank ratify re action which has been taken in its behalf in making PPlication for membership in the Federal Reserve System." Approved unanimously, together with a letter to Mr. Schaller, President of the Federal Reserve Bank of Chicago, reading as follows: tern "The Board of Governors of the Federal Reserve Systani aPProves the application made by 'The Mohawk State ti t°, Mohawk, Indiana, the presently operating instituon behalf of 'The Mohawk State Bank', Mohawk, forlana, a new corporation and proposed successor bank, if membership in the Federal Reserve System, effective )311 When the new bank is duly authorized to commence 143 fees and is entitled to the benefits of insurance th ' ' 1 Section 12B of the Federal Reserve Act, subject to 34 conditions prescribed in the enclosed letter which Of 4, , are requested to forward to the Board of Directors eller i nstitution. Two copies of such letter are also Of Xed, one of which is for your files and the other ber ; Ltch You are requested to forward to the Director, InFr c'ment of Financial Institutio ns, for the State of laaa for his information. 797 5/25/40 "As you know, the new bank is not eligible for memZ 13 311113 in the System unless it is entitled to the bene' ., -1, 3 of deposit insurance. The Board has received a copy 21 a letter dated May 24, 1940, from the Federal Deposit IrlEnce Corporation to The Mohawk State Bank, Mohawk, Indiana, a copy of which is enclosed, setting forth the c.o nditions upon which the new bank has been approved for UPosit insurance. We will advise you promptly upon receipt of advice from the Federal Deposit Insurance CorPoration that such conditions have been complied with and arrangements may then be made for completion of the bank's d.misaion to membership. chi "Before issuing stock in the Federal Reserve Bank of y.,:ago to the new bank, you are requested to satisfy rplfself that its capital stock as required in condition _ruered 4 has been paid in, and that all agreements and ntracts entered into between it and the presently operatir.lig institution covering the purchase of assets from, and all :assumption of liabilities of, that institution and i„'La .nd all other agreements and contracts between such -Linctist:ltution and the stockholders and/or directors or other the viduals or concerns, incident to the organization of w bank, have been considered by your counsel, and tha u he is satisfied as to their legal aspects. It is ested that a copy of the opinion of your counsel suchn in this connection, together with copies of any as agreements and contracts, be forwarded to the Board be ;°011 as possible . It is requested also that the Board of cli:Irnished with a copy of the resolution of the board on i reotors of the new bank ratifying the action taken peds's behalf in making application for membership in the ral Reserve System." t 4 tank Or Letter 1- Mr. Gidney, Vice President of the Federal Reserve wo " York, reading as follows: with "Reference is May 23, 1940 made to your letter ofWindows' °Penpr f_erence to the temporary 'Tellers rie, to be in QY The National City Bank of New York in Havana tar;°11nection with the Internat ional Convention of Rothe-&m an • The bank advises that it now desires to keep Of f. ,:xlclows open from June 3 to June 14, 1940, instead is 37t°111 June 10 to June 14 as first contemplated. It tate : 8ted that the earlier oi. opening is desired to factiRotare ; rtain pre-convention needs and activities ,ans. oct 4 aft-, 5/25/40 -4- "In view of the purposes for which the temporary 'Teller I • 'Windows are to be maintained, the Board will riot interpose any objection if the 'Tellers Windows' reerred J. HeLA to in the Board's letter of April 9, 1940, to Mr. ta . Durrell, Senior Vice President of The National City nk of New York, are open for business a few days bee and following the conventions should that appear es irable for the convenience of those attending the on ventions. Please advise the bank accordingly." Approved unanimously. Thereupon the meeting adjourned. Assistant Secretary. Chairman.
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