Evening star. [volume] (Washington, D.C.) 1854-1972, 1933-03-09

more than 5000, or imprisoned not
more than one year. or both.
Section sol Notwithstanding any
other provision Of law, any national
banking association may, with the ap-
prevail Of the controller of the currency
and by vote of shareholders owning q
ma t0rity OF the stock Of such aSsocia-
ton, upon not less than five days no
to action taken by its board Of direc-
tors, issue preferred stock in such
amount and with such par value as
shall be approved by said controller,
and make such amendments to its artt-
cIes Of association Is may be necessary
Tor this purpose, but In the case OF any
newly organized national banking asso-
citation which has not yet issued COM
mon stock, the requirement OF notice
to and vote Of shareholders shall not
apply. No issue Of preferred stock shall
be valid until the whole amount rep
resenting the par value of such stock
shall be paid In.
Entitled to Dividends.
Section 500 (O. The holders of such
preferred stock shall be entitled to Gu
mulative dividends at rate not exceed
ing 6 per centum per annum, but shall
not be held individually responsible as
such holders for any debts, contracts or
engagements of such association and
shall not be liable for assessments to re-
store impairments In the capital of such
association Is now provided by law with
reference to holders Of common stock.
Notwithstanding any other provision OF
law, the holders Of such preferred stock
shall have such voting rights, and such
stock shall be subject to retirement in
such manner and on such terms and
conditions, As may be provided in the
articles OF association with the approval
Of the controller of the currency.
(B) No dividends shall be declared
or paid on common stock until the
cumulative dividends on the preferred
stock shall have been paid in full; and
II the association Is placed In voluntary
liquidation OF . conservator or q re-
ceiver Is appointed therefor, no pay
ments shall be made to the holders Of
the preferred stock shall have been paid
In full the par value of such stock plus
all accumulated dividends.
Section 303. The term Common
stock" as used in this title means stock
OF national banking associations other
than the preferred stock issued under
the provisions of this title. The term
capital as used in provisions Of law
relating to the capital of national
banking associations shall mean the
amount Of unimpaired common stock
plus the amount Of preferred stock
outstanding and unimpaired: and the
term capital stock" as used In section
IL Of the act Of March Is. 1900. shall
mean only the amount of common stock
outstanding.
Federal Aid Available.
Section 304. If in the opinion of the
Secretary Of the Treasury any national
banking association or any State bank
or trust company IS In need Of funds
for capital purposes. either in connec-
ton with the organization or reoreani-
zation Of such association or any State
bank or trust company or otherwise.
he may, with the approval Of the Presi-
dent. request the Reconstruction Finance
Corporation to subscribe for preferred
stock IN such bank. association, State
bank or trust company, or to make loans
secured by such stock or collateral. and
the Reconstruction Finance Corporation
shall subscribe and pay for such stock in
accordance with such request. The Re-
construction Finance Corporation may
with the approval Of the Secretary of
the Treasury, and under such rules and
regulations as he may prescribe, sell In
the open market or otherwise, the whole
or any part of the preferred stock of
any national banking association, State
bank and trust company acquired by the
corporation pursuant to this section.
The amount of notes, bonds, debentures
and other such obligations which the
Reconstruction Finance Corporation Is
authorized and empowered to issue and
to have outstanding at any one time
under existing law Is hereby increased
by an amount SUFFICIENT to carry out the
provisions Of this section
Reserve Act Amended.
Section 40l. The sixth paragraph of
section 10 of the Federal Reserve &C:
Is amended to read as follows:
Upon the deposit with the treas
urer OF the United States (a) Of