Evening star. [volume] (Washington, D.C.) 1854-1972, 1933-03-09
Partial Text of Banking Measure
Be Granted President Through Controller Of Currency Heavy Penalties
Provided in Bill Still Being Revised by Administration Leaders
Capitol Hill.

ing INV, requires the consent, Is the
case may BE- "a Of depositors and
other creditors, or ID of stockhold-
ers or (c) Of both depOsitOrs and other
creditors and stockholders. Uuch reor-
ganixation shall become effective only
"a when the controller Of the cur.
rency shall be satisfied that the plan
of reorganization Is fair and equitable
as to all depositors, other creditors
and stockholders and Is in the public
interest and shall have approved the
plan subject to such conditions, re-
strictions and limitations as he may
prescribe and CD when, after reason
able notice Of such reorganization, -
the case may require 90 depositors and
other creditors Of such bank represent
Ing at least rs per cent tn amount Of
its total deposits and other liabilities ~
shown by the books Of the National
Banking Association or CD stockhold-
ers owning at least two-thirds Of it,
outstanding capital stock ~ shown by
the books Of the National Banking A.
ISOLATION or (c) both depositors and
other creditors representing ut least
IS per cent In amount Of the total de-
posits and other liabilities and stock
holders owning at least two-thirds Of
IS OusosoA0AA8 CSPieaA StOCA - SAOWIl
by the books Of the National Banking
writing to the plan Of reorganization !;
provided, however, that claims of de-
positors or other creditors which will
be satisfied In full under the provisions
Of the plan Of reorganization shall not
be included among the total deposits
and other liabilities of the National
Banking Association in determining the
IS per cent thereof as above provided.
Restrictions Set Forth.
When such reorganization becomes
effective, all books, records, and assets
of the National Banking Association
shall be disposed Of in accordance with
the provisions Of the plan and the
affairs of the National Banking Asso-
citation shall be conducted by its board
Of directors in the manner provided by
the plan and under the conditions, re-
strictions and limitations which may
have been prescribed by the controller
of the currency. In any re0rganiza-
ton which shall have been approved
and shall have become effective as
provided herein. all depositors and
other creditors and stockholders of sucN
National Banking Association. whether
or not they shall have consented to
such plan Of reorganization. shall be
fully and in all respects subject to and
bound by its provisions. and claims of
be treated as II they had consented to
such plan Of reorganization.
Time Limit Stated.
Section 2Os. After IS days after the
affairs of q bank shall have been turned
back to its board Of directors by the
conservator. either with or without q
reorganization as provided in section
POT hereof, the provisions Of section
206 of this title with respect to the
segregation of deposits received while
it Is in the hands of the conservator
and with respect to the use of such de-
posits to liquidate the Indebtedness Of
such bank shall no longer be effective;
provided. that before the conservator
shall turn back the affairs Of the
bank to its board Of directors he
shall cause to be published In q
newspaper published in the city, town
or county in which such bank
is located. and If no newspaper Is
published in such city, town or county.
in q newspaper to be selected by the
controller of the currency published in
the State in which the bank Is located,
a notice in form approved by the con-
troller stating the date on which the
affairs of the bank will be returned to
its board of directors. and that the said
provisions of section 206 will not be ef-
fective after is days after such date:
and on the date Of the publication Of
such notice the conservatOr shall imme-
diately send to every person who is q
depositor in such bank under section 206
copy Of such notice by registered
mail, addressed to the last known ad-
dress Of such person. as shown by the
records Of the bank, and the conservator
shall send similar notice in like man.
ner to every person making deposit in
such bank under section 206 after the
date OF such newspaper publication and
before the time when the affairs OF the
bank are returned to its directors.
Penalties Prescribed.
Section 2O9. Conservators appointed
pursuant to the provisions of this title
shall be subject to the provisions of and
to the penalties prescribed by section
500 OF the revised statutes u. S. c.,
title II. section 1922: and sections ll2,
lib, ia. lis, 116 and lit of the crimi-
nal code Of the United States u. s. c.,
title 10. sections 2O2, 2O3, 2O4, 2O5, 2O6
and 2O0. in SO far as applicable, arg
extended to apply to contracts agree
ments, proceedings, dealings, claims and
controversies by or with any such con-
servator or the controller of the cur
rency under the provisions Of this title.
Section 2l0. Nothing in this title
shall be construed to impair In any
manner any powers of the President
the Secretary Of the Treasury, the con-
trCller of the currency or the Federal
Reserve Board.
Section I'll. The controller of the
currency is hereby authorized and en-
powered. with the approval Of the Sec
rotary Of the Treasury, to prescribe such
rules and regulations as he may deem
necessary In order to carry out the
provisions of this title. Whoever vio-
lates any rule or regulat ton made pur-
suant to this section shall be deemed
guilty Of misdemeanor. and, upon
conviction thereof, shall be fined not