An Act to provide for the merger of two or more national banking associations and for the merger of State banks with national banking associations, and for other purposes
PL 82-530 (S.2128), enacted 07/14/1952

66 
S T A T . ] 
PUBLIC LAW 530-JULY 14, 1952 
599 
SEC. 7. The authority contained in this Act shall be in addition to, 
and shall not limit or supersede, authority contained in existing law 
with respect to the control, suppression, and eradication of pests, 
plants, and plant diseases. 
Approved July 14, 1952. 
Public Law 530 
CHAPTER 722 
AN ACT 
To provide for the merger of two or more national banking associations and for 
the merger of State banks with national banking associations, and for other 
purposes. 
July 14,1952 
[S. 2128] 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That the Act entitled 
"An Act to provide for the consolidation of national banking associa-
tions", approved November 7, 1918, as amended (U. S. C, title 12, 
sees, 33, 34, and 34a), is hereby amended by adding at the end thereof 
new sections 4 and 5 to read as follows: 
"SEC. 4. (a) One or more national banking associations or one or 
more State banks, with the approval of the Comptroller, under an 
agreement not inconsistent with this Act, may merge into a national 
banking association located within the same State, under the charter 
of the receiving association. 
"(b) The merger agreement shall— 
"(1) be agreed upon in writing by a majority of the board of 
directors of each association or State bank participating in the 
plan of merger; 
"(2) be ratified and confirmed by the affirmative vote of the 
shareholders of each association or State bank owning at least 
two-thirds of the capital stock outstanding, at a meeting to be held 
on the call of the directors, after publishing notice of the time, 
place, and object of the meeting for four consecutive weeks in a 
newspaper with general circulation in the place where the associa-
tion or State bank is located, and after sending such notice to each 
shareholder of record by registered mail at least ten days prior 
to the meeting, except to those shareholders who specifically waive 
notice; 
"(3) specify the amount of the capital stock of the receiving 
association which will be outstanding upon completion of the 
merger, the amount of stock (if any) to be allocated, and cash 
(if any) to be paid to the shareholders of the association or State 
bank being merged into the receiving association; and 
"(4) provide the manner of disposing of any shares of the 
receiving association not taken by the shareholders of the associ-
ation or State bank merged into the receiving association. 
"If a merger shall be voted for at the called meetings by the neces-
sary majorities of the shareholders of each association or State bank 
participating in the plan of merger, any shareholder of any association 
or State bank to be merged into the receiving association who has 
voted against the merger at the meeting of the shareholders, or has 
given notice in writing at or prior to the meeting to the presiding officer 
that he dissents from the plan of merger, shall be entitled to receive 
the value of the shares held by him if and when the merger shall be 
approved by the Comptroller. 
The value of the shares shall be ascer-
tained, as of the date of the meeting of the shareholders of the associ-
ation or State bank approving the merger, by an appraisal made by 
National b a n k -
ing associations. 
40 Stat. 1043; 44 
Stat. 1225. 
M e r g e r agrees 
ment. 
D i s s 
e n t i n g 
shareholder. 
600 
PUBLIC LAW 530-JULY 14, 1952 
[66 S T A T . 
a committee of three persons, composed of (i) one selected by the vote 
of the holders of a majority of the stock, the owners of which are 
entitled to payment in cash; (ii) one selected by the directors of the 
receiving association; and (iii) one selected by the two so selected. 
The valuation agreed upon by any two of the three appraisers shall 
govern. If the value so fixed shall not be satisfactory to any dissent-
ing shareholder who has requested payment, that shareholder may, 
within five days after being notified of the appraised value of his shares, 
appeal to the Comptroller, who shall cause a reappraisal to be made 
which shall be final and binding as to value of the shares of the appel-
lant. If, within ninety days from the date of consummation of the 
merger, for any reason, one or more of the appraisers have not been 
selected, or the appraisers have failed to determine the value of the 
shares, the Comptroller, upon written request of any interested party, 
shall cause an appraisal to be made which shall be final and binding 
on all parties. The expenses of the Comptroller in making the reap-
praisal or the appraisal, as the case may be, shall be paid by the receiv-
ing association. 
The value of the shares ascertained shall be promptly 
paid to the shareholders by the receiving association, and the shares so 
paid for shall be surrendered to and cancelled by the receiving associ-
ation. The provisions of this paragraph shall apply only to share-
holders of and stock owned h^ them in a bank or association being 
merged into the receiving association, 
ciatlon!''^^ ^'^°' 
"(c) The corporate existence of the merging association or State 
bank shall be merged into that of the receiving association. 
All rights, 
franchises, and interests of the merging association or State bank in 
and to every type of property (real, personal, and mixed) and choses 
in action shall be transferred to and vested in the receiving association 
by virtue of such merger without any deed or other transfer. The 
receiving association, upon the merger and without any order or other 
action on the part of any court or otherwise, shall hold and enjoy all 
rights of property, franchises, and interests, including appointments, 
designations, and nominations, and all other rights and interests as 
trustee, executor, administrator, registrar of stocks and bonds, guar-
dian of estates, assignee, receiver, committee of estates of lunatics, 
and in every other fiduciary capacity, in the same manner and to the 
same extent as such rights, franchises, and interests were held or 
enjoyed by any merging association or State bank at the time of the 
merger, subject to the conditions hereinafter provided. 
"Where any merging association or State bank, at the time of the 
merger, was acting under appointment of any court as trustee, execu-
tor^ administrator, registrar of stocks and bonds, guardian of estates, 
assignee, receiver, committee of estates of lunatics, or in any other 
fiduciary capacity, the receiving association shall be subject to removal 
by a court of competent jurisdiction in the same manner and to the 
same extent as was the merging association or State bank prior to the 
merger. 
Nothing contained in this section shall be considered to 
impair in any manner the right of any court to remove a receiving 
association and to appoint in lieu thereof a substitute trustee, 
executor, or other fiduciary, except that such right shall not be exer-
cised in such a manner as to discriminate against national banking 
associations, nor shall any receiving association be removed solely 
because of the fact that it is a national banking association. 
"(d) Any national banking association which is a receiving associa-
tion may issue stock, with the approval of the Comptroller and in 
accordance with law, to be delivered to the shareholders of a merging 
State bank or national banking association as provided for by a merger 
agreement, free from any preemptive rights of the shareholders of 
the receiving association. 
I s s u anc e of 
stock. 
66 
S T A T . ] 
PUBLIC LAW 531-JULY 14, 1952 
601 
"SEC. 5. As used in this Act the term— 
"(1) 'State bank' means any bank, banking association, trust 
company, savings bank (other than a mutual savings bank), 
or other banking institution which is engaged in the business 
of receiving deposits and which is incorporated under the laws 
of any State, or which is operating under the Code of Law for 
the District of Columbia (except a national banking association 
located in the District of Columbia) ; 
"(2) 'State' means the several States, the several Territories, 
Puerto Rico, the Virgin Islands, and the District of Columbia; 
"(3) 'Comptroller' means the Comptroller of the Currency; 
and 
"(4) 'Receiving association' means the national banking asso-
ciation into which one or more national banking associations or 
one or more State banks, located within the same State, merge." 
SEO. 2. Section 3 of the Act of November 7,1918, as amended (U. S. 
C., title 12, sec. 34a), is amended by deleting the second paragraph 
thereof, which reads as follows: 
"The words 'State bank', 'State banks', 'bank', or 'banks', as used 
in this section, shall be held to include trust cdmpanies, savings banks, 
or other such corporations or institutions carrying on the banking 
business under the authority of State laws." 
Approved July 14, 1952. 
Definitions. 
Public Law531 
CHAPTER723 
AN ACT 
To amend defense housing laws, and for other purposes. 
July 14. 1952 
[S. 3066] 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of Afherica in Congress assembled, That this Act be 
cited as the "Housing Act of 1952". 
SEC. 2. Section 217 of the National Housing Act, as amended, is 
hereby amended to read as follows: 
"SEC. 217. Notwithstanding limitations contained in any other sec-
tion of this Act on the aggregate amount of principal obligations of 
mortgages or loans which may be insured (or insured and outstanding 
at any one time) and on the aggregate amount of contingent liabilities 
which may be outstanding at any one time under insurance contracts, 
or commitments to insure, pursuant to any section or title of this Act, 
any such aggregate amount shall, with respect to any section or title 
of this Act (except section 2), be prescribed by the President from 
time to time taking into consideration the needs of national defense 
and the eifect of additional insurance authorizations upon conditions 
in the building industry and upon the national economy: 
Provided, 
That the dollar amount of the insurance authorization prescribed by 
the President at any time with respect to any provision of title VI 
shall not be greater than authorized by provisions of that title: And 
provided further, That, at any time, the aggregate dollar amount of 
the mortgage insurance authorization prescribed by the President 
with respect to title I X of this Act, plus the aggregate dollar amount 
of all increases in insurance authorizations under other titles of this 
Act prescribed by the President pursuant to authority contained in 
this section, less the aggregate dollar amount of all decreases in insur-
ance authorizations under this Act prescribed by the President pur-
suant to authority contained in this section shall not exceed 
$1,900,000,000: And provided further. That $400,000,000 of said sum 
shall be available only for the insurance of mortgages for which no 
Housing A c t of 
1952. 
65 Stat. 315. 
12 u s e 1715h. 
G e n e r a l mort-
gage i n s u r a n c e 
authorization. 
48 Stat. 1246. 
12 u s e 1703. 
55 Stat. 55. 
12 u s e 1736 et 
seq. 
65 Stat. 295. 
12 u s e 
1750a-
1750g.