Any bank incorporated by special law of any State, operating under the Code of Law for the District of Columbia, or organized under the general laws of any State or of the United States, including Morris Plan banks and other incorporated banking institutions engaged in similar business, desiring to become a member of the Federal Reserve System, may make application to the Board of Governors of the Federal Reserve System, under such rules and regulations as it may prescribe, for the right to subscribe to the stock of the Federal Reserve bank organized within the district in which the applying bank is located. Such application shall be for the same amount of stock that the applying bank would be required to subscribe to as a national bank. For the purposes of membership of any such bank the terms “capital” and “capital stock” shall include the amount of outstanding capital notes and debentures legally issued by the applying bank and purchased by the Reconstruction Finance Corporation. The Board of Governors of the Federal Reserve System, subject to the provisions of this chapter and to such conditions as it may prescribe pursuant thereto may permit the applying bank to become a stockholder of such Federal Reserve bank.
section 287 of this titleUpon the conversion of a national bank into a State bank, or the merger or consolidation of a national bank with a State bank which is not a member of the Federal Reserve System, the resulting or continuing State bank may be admitted to membership in the Federal Reserve System by the Board of Governors of the Federal Reserve System in accordance with the provisions of this section, but, otherwise, the Federal Reserve bank stock owned by the national bank shall be canceled and paid for as provided in . Upon the merger or consolidation of a national bank with a State member bank under a State charter, the membership of the State bank in the Federal Reserve System shall continue.
Provided, howeverAny such State bank which on , 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 , beyond the limits of the city, town, or village in which the parent bank is situated: , 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 , beyond the limits of the city, town, or village in which the parent bank is situated. The approval of the Board shall likewise be obtained before any State member bank may establish any new branch within the limits of any such city, town, or village.
Dec. 23, 1913, ch. 6, § 938 Stat. 259June 21, 1917, ch. 32, § 340 Stat. 232Feb. 25, 1927, ch. 191, § 944 Stat. 1229June 16, 1933, ch. 89, § 5(a)48 Stat. 164June 16, 1934, ch. 546, § 248 Stat. 971Aug. 23, 1935, ch. 61449 Stat. 704Aug. 17, 1950, ch. 729, § 864 Stat. 458July 15, 1952, ch. 753, § 2(a)66 Stat. 633Pub. L. 108–386, § 8(h)118 Stat. 2232Pub. L. 109–351, title VII, § 725(a)(2)120 Stat. 2001Pub. L. 109–356, title I, § 123(a)(2)120 Stat. 2028( (pars.), ; , ; , ; , (b), ; , ; , title II, § 203(a), title III, § 338, , 721; , ; , ; , , ; , , ; , , .)
Editorial Notes
References in Text
act Dec. 23, 1913, ch. 638 Stat. 251section 226 of this titleThis chapter, referred to in text, was in the original “this Act”, meaning , , known as the Federal Reserve Act. For complete classification of this Act to the Code, see References in Text note set out under and Tables.
Codification
40 Stat. 232Section 329a of this titlesection 337 of this titlePub. L. 89–485, § 13(g)80 Stat. 243Section is comprised of the first three pars. of section 9 of act , as amended. The first par. of this section is comprised of the first par. of section 9 as amended in 1917 (). The second par. of this section was added as a new par. to follow the first par. of section 9, by act . The third par. of this section originally constituted the second par. of section 9, as amended by act , and became the third par. when act added the new second par. The fourth to twenty-third pars. of section 9, as amended, are classified to sections 322 to 338a of this title. , which was based on par. twelve of section 9, was omitted from the Code. Paragraph twenty-two of section 9, which was classified to , was repealed by , , .
Amendments
Pub. L. 109–3512006— and 109–356 amended section identically, substituting “incorporated by special law of any State, operating under the Code of Law for the District of Columbia, or” for “incorporated by special law of any State, or” in first sentence of first par.
Pub. L. 108–3862004— struck out “(except within the District of Columbia)” before period at end of last sentence of third par.
1952—Act , inserted last sentence to third par.
1950—Act , inserted second par., permitting application for membership in the Federal Reserve System by the State bank resulting from a conversion, merger, or consolidation transaction involving a national bank, except where the national bank merges or consolidates with a State bank already a member of System in which case the membership continues.
1935—Act , § 338, inserted phrase in third (formerly second) par. beginning “except that the approval of the Board of Governors”.
1934—Act , inserted third sentence in first par.
1933—Act , inserted “including Morris Plan banks and other incorporated banking institutions engaged in similar business” in first par. and inserted proviso to third (formerly second) par. through “branches of national banks”.
1927—Act , inserted second par. which became third par. in 1950. See Codification note above.
Statutory Notes and Related Subsidiaries
Change of Name
Section 203(a) of act , changed name of Federal Reserve Board to Board of Governors of the Federal Reserve System.
Effective Date of 2004 Amendment
Pub. L. 108–386, § 8(i)118 Stat. 2232
Pub. L. 108–386, § 9118 Stat. 2233
Executive Documents
Exception as to Transfer of Functions
section 1 of this titleFunctions vested by any provision of law in Comptroller of the Currency, referred to in this section, not included in transfer of functions to Secretary of the Treasury, see note set out under .
Abolition of Reconstruction Finance Corporation
71 Stat. 647Section 6(a) of Reorg. Plan No. 1 of 1957, eff. , 22 F.R. 4633, , set out in the Appendix to Title 5, Government Organization and Employees, abolished Reconstruction Finance Corporation.