Provided12 U.S.C. 1811No applying bank shall be admitted to membership unless it possesses capital stock and surplus which, in the judgment of the Board of Governors of the Federal Reserve System, are adequate in relation to the character and condition of its assets and to its existing and prospective deposit liabilities and other corporate responsibilities: , That no bank engaged in the business of receiving deposits other than trust funds, which does not possess capital stock and surplus in an amount equal to that which would be required for the establishment of a national banking association in the place in which it is located, shall be admitted to membership unless it is, or has been, approved for deposit insurance under the Federal Deposit Insurance Act [ et seq.]. The capital stock of a State member bank shall not be reduced except with the prior consent of the Board.
Dec. 23, 1913, ch. 6, § 938 Stat. 259June 21, 1917, ch. 32, § 340 Stat. 234Mar. 4, 1923, ch. 25242 Stat. 1478June 16, 1933, ch. 89, § 17(b)48 Stat. 185July 15, 1952, ch. 753, § 166 Stat. 633( (par.), ; , ; , title IV, § 401, ; , ; , .)
Editorial Notes
References in Text
act Sept. 21, 1950, ch. 967, § 264 Stat. 873section 1811 of this titleThe Federal Deposit Insurance Act, referred to in text, is , , which is classified generally to chapter 16 (§ 1811 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under and Tables.
Codification
40 Stat. 23244 Stat. 122964 Stat. 458section 321 of this titleSection is comprised of the eleventh par. of section 9 of act , as amended. The eleventh par. constituted the ninth par. of section 9 in 1917 (), became the tenth par. in 1927 (), and became the eleventh par. in 1950 (). For further details, see Codification note set out under .
Amendments
1952—Act , vested in Board of Governors discretion with respect to admission of State banks to membership.
1933—Act , dropped alternative method of meeting the capital requirement and inserted proviso.