§ 329. — Capital stock required as condition precedent to 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: 12USC329]
TITLE 12--BANKS AND BANKING
CHAPTER 3--FEDERAL RESERVE SYSTEM
SUBCHAPTER VIII--STATE BANKS AS MEMBERS OF SYSTEM
Sec. 329. Capital stock required as condition precedent to
membership
No applying bank shall be admitted to membership unless it possesses
capital stock and surplus which, in the judgment of the Board of
Governors of the Federal Reserve System, are adequate in relation to the
character and condition of its assets and to its existing and
prospective deposit liabilities and other corporate responsibilities:
Provided, That no bank engaged in the business of receiving deposits
other than trust funds, which does not possess capital stock and surplus
in an amount equal to that which would be required for the establishment
of a national banking association in the place in which it is located,
shall be admitted to membership unless it is, or has been, approved for
deposit insurance under the Federal Deposit Insurance Act [12 U.S.C.
1811 et seq.]. The capital stock of a State member bank shall not be
reduced except with the prior consent of the Board.
(Dec. 23, 1913, ch. 6, Sec. 9 (par.), 38 Stat. 259; June 21, 1917, ch.
32, Sec. 3, 40 Stat. 234; Mar. 4, 1923, ch. 252, title IV, Sec. 401, 42
Stat. 1478; June 16, 1933, ch. 89, Sec. 17(b), 48 Stat. 185; July 15,
1952, ch. 753, Sec. 1, 66 Stat. 633.)
References in Text
The Federal Deposit Insurance Act, referred to in text, is act Sept.
21, 1950, ch. 967, Sec. 2, 64 Stat. 873, as amended, which is classified
generally to chapter 16 (Sec. 1811 et seq.) of this title. For complete
classification of this Act to the Code, see Short Title note set out
under section 1811 of this title and Tables.
Codification
Section is comprised of the eleventh par. of section 9 of act Dec.
23, 1913, as amended. The eleventh par. constituted the ninth par. of
section 9 in 1917 (40 Stat. 232), became the tenth par. in 1927 (44
Stat. 1229), and became the eleventh par. in 1950 (64 Stat. 458). For
further details, see Codification note set out under section 321 of this
title.
Amendments
1952--Act July 15, 1952, vested in Board of Governors discretion
with respect to admission of State banks to membership.
1933--Act June 16, 1933, dropped alternative method of meeting the
capital requirement and inserted proviso.
