§ 328. — Withdrawals from membership.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC328]
TITLE 12--BANKS AND BANKING
CHAPTER 3--FEDERAL RESERVE SYSTEM
SUBCHAPTER VIII--STATE BANKS AS MEMBERS OF SYSTEM
Sec. 328. Withdrawals from membership
Any State bank or trust company desiring to withdraw from membership
in a Federal Reserve bank may do so, after six months' written notice
shall have been filed with the Board of Governors of the Federal Reserve
System, upon the surrender and cancellation of all of its holdings of
capital stock in the Federal reserve bank: Provided, That the Board of
Governors of the Federal Reserve System, in its discretion and subject
to such conditions as it may prescribe, may waive such six months'
notice in individual cases and may permit any such State bank or trust
company to withdraw from membership in a Federal reserve bank prior to
the expiration of six months from the date of the written notice of its
intention to withdraw: Provided, however, That no Federal reserve bank
shall, except under express authority of the Board of Governors of the
Federal Reserve System, cancel within the same calendar year more than
25 per centum of its capital stock for the purpose of effecting
voluntary withdrawals during that year. All such applications shall be
dealt with in the order in which they are filed with the board. Whenever
a member bank shall surrender its stock holdings in a Federal reserve
bank, or shall be ordered to do so by the Board of Governors of the
Federal Reserve System, under authority of law, all of its rights and
privileges as a member bank shall thereupon cease and determine, and
after due provision has been made for any indebtedness due or to become
due to the Federal reserve bank it shall be entitled to a refund of its
cash-paid subscription with interest at the rate of one-half of 1 per
centum per month from date of last dividend, if earned, the amount
refunded in no event to exceed the book value of the stock at that time,
and shall likewise be entitled to repayment of deposits and of any other
balance due from the Federal reserve bank.
(Dec. 23, 1913, ch. 6, Sec. 9 (par.), as added June 21, 1917, ch. 32,
Sec. 3, 40 Stat. 233; amended Apr. 17, 1930, ch. 175, 46 Stat. 170; Aug.
23, 1935, ch. 614, title II, Sec. 203(a), 49 Stat. 704.)
Codification
Section is comprised of the tenth par. of section 9 of act Dec. 23,
1913, as amended. The tenth par. constituted the eighth par. of section
9 in 1917 (40 Stat. 232), became the ninth par. in 1927 (44 Stat. 1229),
and became the tenth par. in 1950 (64 Stat. 458). For further details,
see Codification note set out under section 321 of this title.
Amendments
1930--Act Apr. 17, 1930, amended part of section preceding second
proviso.
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.
