Receipt of deposits by securities companies and other non-banking institutions.
It is made unlawful, after a period of one year:
(1) For any person, corporation or other organization engaged in the issue, underwriting or selling of securities to receive deposits subject to check or to repayment upon presentation of a pass book or certificate.
(2) For any person, corporation or organization, other than a financial institution or private banker subject to examination and regulation under State or Federal law, to receive deposits subject to check or to repayment upon presentation of a pass book or certificate, unless such person, corporation or organization shall submit to periodic examination by the Comptroller of the Currency or Federal reserve bank and shall make periodic reports of condition in the same manner and at the same time as is required of national banks.
A violation of the above provisions is punishable by fine or imprisonment or both, and officers, directors, employees or agents knowingly participating in such a violation are subject to like penalties.
Liability of Shareholders of National Banks.
The additional liability imposed upon shareholders of national banks (generally known as double liability) is eliminated with respect to shares of national banks issued after the date of the enactment of this Act.
Branches of National Banks.
Section 5155 of the Revised Statutes, is amended to provide that, with the approval of the Comptroller of the Currency, a national bank may establish branches at any point within the State in which it is located, if the State law, specifically and not by implication, authorizes State banks to do so.
The aggregate capital of a national bank and its branches must equal the aggregate minimum capital required for the establishment of an equal number of national banks in the respective localities.
In order to establish an out of town branch, a national bank must have a paid-in and unimpaired capital stock of at least $500,000, except that, in States with a population of less than 1,000,000 and with no cities of more than 100,000 population, the capital in such case shall be not less than $250,000, and in states with a population of less than 500,000 with no cities exceeding 50,000 population, the capital shall be not less than $100,000.
(These provisions are also applicable to branches of State member banks. See Section 5(b).
Consolidations of national banks with other banks in same State.
The provisions of the Act of November 7, 1918, as amended, providing for the consolidation of two or more national banks or for the consolidation of State banks with national banks are amended by this section so as to permit such consolidations to take place between banks located anywhere in the same State.
Transfer of trust business upon consolidation.
The Act of November 7, 1918, as amended, providing for the consolidation of national banking associations and of State banks with national banking associations, is amended to provide that the corporate existence of each constituent bank shall be merged into and continued in the consolidated national bank, and all trust business, including appointments, designations and nominations as trustees or other fiduciary, shall be transferred to the consolidated institution without any order or other action of the part of any court or otherwise. The consolidated
