The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-02-25
HOW STATE BANKS
MAY ENTER RESERVE
Regulations Issued Also to
Trust Companies by
Federal Board.
TIME FOR REIMBURSEMENT
Amount Of Capital Stock Neces-
sary for Membership
Fixed by Law.

WASHINGTON, Feb 2l.-The organiza-
ton committee Of the Federal reserve sys-
TEN issued regulations to-day to govern
the admission to the system Of State banks
and trust companies AZ such or through
conversion into national banking associa-
tons.
Application under section Q Of the
GIass-Owen law 10 to be made through .
prescribed resolution to be passed by the
directors Of state banks. The other regu-
iations upon the admission Of State banks
and trust companies AZ such follow:
when the location Of the several
Federal reserve banks provided for In the
Federal reserve act have been established
and the districts to be served by such
Federal reserve banks have been defined
the committee will cause to be forwarded
to such State banks or trust companies. At
the same time that applications are for
warded to national banks under the pro-
visions Of the Federal reserve act, form
Of application for an amount OF capital
stock in such Federal reserve bank equal
to 8 per cent. of the unimpa.red capital
stock and surplus Of such State bank or
trust company.
This application must be accompanied
by a statement showing the assets and la
bilities or such state bank or trust COM
pany listed on fo>ns approved BY the
committee. These forms will be furnished
by the committee upon request. The board
Of directors or a committee composed OF
not less than Ave members Of such board
shall certify that In their opinion the as
sets listed In the manner prescribed by
the committee represent actual existing
values and that In the opinion Of said
board none OF such assets are carried at
an excessive valuation on the books OF
said bank.
nj hal
also file with their applications for MEM
bership copies Of their charters, with
amendments and a digest thereof. show
Ing the powers (granted by such charters
and amenjments) classified TO indicate:
"ta) Those powers which such banks
and trust companies have exercised and
desire to continue to exercise.
"(b) Those powers which while granted
have not been exercised and which such
banks and trust companies Will not desire
nor attempt to exercise as members OF
the Federal reserve system.
May Accept Certificate.
EN- lieu OF a special examination o:
the condition of such bank by a national
bank examiner or examiner appointed by
the committee or the Federal Reserve
Board the committee may accept q GER
tihcate from a duly accredited State ex-
ATnlncf UT TbdIh W tflr
effect that the statement nled by the
board Of directors A. aforesaid repre-
sents the true condition OF such State
bank or trust company and that the capi-
tai stock OF such banks 10 In the opinion
Of such examiner or commissioner unifn-
paired. the surplus represents actual ex-
listing values and the liabilities are as
shown by such statement
1.-The committee. however win reserve
. In IN nj
examination by a national bank examiner
or an examiner selected by the committee
or By the Federal Reserve Board as q
condition precedent to membership In any
Federal reserve bank.
"Only those banks which have an unim-
paired capital sufficient to entitle them 10
become national banking associations
under the provisions Of the nationsl bank
act shall be cons, dered as eligible to men,
bership IN a Federal reserve bank.
in accordance with section 6l3s
United States Revised 81 flutes. AZ
amended by the act Of March II. 1900.
State banks or trust companies In order to
be eligible to membership must have un.
impaired capital stock. as follows:
'In cities or towns Of less than 5000
inhabitants, $4,000.
In cities or towns OF more than 5000
inhabitants, but less than 5000 inhabi-
tants, $4,000.
"In cities Of more than 5000 lnhabi-
tan's. but les, than $4,000 Inhabitants,
100000.
I'm cities of more than $4,000 inhabl-
tants. 5000. 900"
State banks which prefer to gain ad-
mission through converting into nationa,
banks are required to adopt the resolution
prescribed under section at the same
time they adopt the articles Of orEa nisation
as national banks. Application for an
amount OF Federal reserve stock equal to
per cent. Of the capital and surplus must
accompany the certificate OF orean!sat ton
to the Comptroller OF the Currency
Other regulations upon admission thu ouGh
conversion into national banks follow:
Nay Costinue a. Trustee.
whenever a trust company shall be.
come converted Into 4 national bank
under the provisions OF section s OF the
Federal reserve act and shall desire to
continue % act as trustee, executor, ad
ministrator or registrar OF stocks and
bonds. such organisation certificate shall.
when hled with the Comptroller OF the
Currency. be accompanied by an appli
cation to the Federal Reserve Board for
permission to engage In such business, and
no cert!f cate for the convers on OF such
trust COZ. any into national bank shall
be approved by the Comptroller Of the
Currency until the Federal Reserve Board
has granted such permission under rules
and regulations prescribed by II.
state banks or trust companies apply.
ing for membership In the Federal re-
serve system under section Of the Fed.
eral reserve act by conversion into ma
tional banking associations. or applying
for membership under section Q as State
banks will, II otherwise found to be elgi-
BILE. he given q reasonable time within
which TO adjust the loans and investments
Of such banks TO conform to the require.
ments of the Federal reserve act and
other laws Of tho United States applicable
thereto.
ANY bank applying for membership
and having loans to any one person. arm
or corporation In excess OF the limit al
lowed by the Federal reserve act or other
loans and investments prohibited by such
act shall before being admitted to mem.
| bership give satisfactory assurance to the
| committee or to the Federal Reserve
Board that such loans and investments
will be eliminated or made to conform ia
| the provisions of the Federal reserve &C,
and other applicable laws not later than
January I. 1915.
THE condition OF the applying hank OF
trust company and the general nature OF
! Its business will be considered by the
committee In each case In Determining
whether such banks shall be admitted &c
membership"
| nNI.Y On NANKQ nYTT nC QVcTTM