§ 304. — Class A and class B directors; selection.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC304]
TITLE 12--BANKS AND BANKING
CHAPTER 3--FEDERAL RESERVE SYSTEM
SUBCHAPTER VII--DIRECTORS OF FEDERAL RESERVE BANKS; RESERVE AGENTS AND
ASSISTANTS
Sec. 304. Class A and class B directors; selection
Directors of class A and class B shall be chosen in the following
manner: The Board of Governors of the Federal Reserve System shall
classify the member banks of the district into three general groups or
divisions designating each group by number. Each group shall consist as
nearly as may be of banks of similar capitalization. Each member bank
shall be permitted to nominate to the chairman of the board of directors
of the Federal reserve bank of the district one candidate for director
of class A and one candidate for director of class B. The candidates so
nominated shall be listed by the chairman, indicating by whom nominated,
and a copy of said list shall, within fifteen days after its completion,
be furnished by the chairman to each member bank. Each member bank by a
resolution of the board or by an amendment to its bylaws shall authorize
its president, cashier, or some other officer to cast the vote of the
member bank in the elections of class A and class B directors: Provided,
That whenever any member banks within the same Federal Reserve district
are subsidiaries of the same bank holding company within the meaning of
the Bank Holding Company Act of 1956 [12 U.S.C. 1841 et seq.],
participation in any such nomination or election by such member banks,
including such bank holding company if it is also a member bank, shall
be confined to one of such banks, which may be designated for the
purpose by such holding company.
Within fifteen days after receipt of the list of candidates the duly
authorized officer of a member bank shall certify to the chairman his
first, second, and other choices for director of class A and class B,
respectively, upon a preferential ballot upon a form furnished by the
chairman of the board of directors of the Federal reserve bank of the
district. Each such officer shall make a cross opposite the name of the
first, second, and other choices for a director of class A and for a
director of class B, but shall not vote more than one choice for any one
candidate. No officer or director of a member bank shall be eligible to
serve as a class A director unless nominated and elected by banks which
are members of the same group as the member bank of which he is an
officer or director.
Any person who is an officer or director of more than one member
bank shall not be eligible for nomination as a class A director except
by banks in the same group as the bank having the largest aggregate
resources of any of those of which such person is an officer or
director.
Any candidate having a majority of all votes cast in the column of
first choice shall be declared elected. If no candidate have a majority
of all the votes in the first column, then there shall be added together
the votes cast by the electors for such candidates in the second column
and the votes cast for the several candidates in the first column. The
candidate then having a majority of the electors voting and the highest
number of combined votes shall be declared elected. If no candidate have
a majority of electors voting and the highest number of votes when the
first and second choices shall have been added, then the votes cast in
the third column for other choices shall be added together in like
manner, and the candidate then having the highest number of votes shall
be declared elected. An immediate report of election shall be declared.
(Dec. 23, 1913, ch. 6, Sec. 4 (pars.), 38 Stat. 256; Sept. 26, 1918, ch.
177, Sec. 1, 40 Stat. 968; June 26, 1930, ch. 614, 46 Stat. 815; June
16, 1933, ch. 89, Sec. 3(b), 48 Stat. 163; Aug. 23, 1935, ch. 614, title
II, Sec. 203(a), 49 Stat. 704; Pub. L. 89-485, Sec. 13(e), July 1, 1966,
80 Stat. 243.)
References in Text
The Bank Holding Company Act of 1956, referred to in text, is act
May 9, 1956, ch. 240, 70 Stat. 133, as amended, which is classified
principally to chapter 17 (Sec. 1841 et seq.) of this title. For
complete classification of this Act to the Code, see Short Title note
set out under section 1841 of this title and Tables.
Codification
Section is comprised of pars. 16 to 21 of section 4 of act Dec. 23,
1913. For classification to this title of other pars. of section 4, see
Codification note set out under section 301 of this title.
Amendments
1966--Pub. L. 89-485 substituted proviso restricting participation
in nomination or election of directors by member banks to one member
bank whenever any member banks within the same Federal reserve district
are subsidiaries of the same bank holding company, such member bank to
be designated for the purpose by the holding company for former proviso
restricting the selection of directors by member banks to one member
bank when two or more member banks within the same Federal reserve
district are affiliated with the same holding company affiliate, such
member bank to be designated for such purpose by the holding company
affiliate.
1933--Act June 16, 1933, inserted proviso at end of second par.
1930--Act June 26, 1930, amended last par.
Change of Name
Section 203(a) of act Aug. 23, 1935, changed name of Federal Reserve
Board to Board of Governors of the Federal Reserve System.
Section Referred to in Other Sections
This section is referred to in section 442 of this title.
