(Somewhat similar provisions with reference to examinations of affiliates of State member banks are contained in Section 5(c) of the Act.)
The funds derived by the Comptroller of the Currency from assessments on banks for expenses of his examiners and other employees may be deposited by him in banks, and his powers with respect to the employment and compensation of such examiners and employees are broadened.
Resumption of business by closed national banks.
The Act contains a provision under which, in any case where, in the opinion of the Comptroller of the Currency, it would be to the advantage of depositors and unsecured creditors of a closed national bank for it to resume business upon the retention for a reasonable period, of all or a part of its deposits, the Comptroller may permit such resumption of business if 75% in amount of depositors and unsecured creditors consent in writing to such retention of deposits. It is provided that this section shall not affect any powers which the Comptroller now has with respect to the reorganization of national banks.
Removal of bank directors or officers from office.
This section provides a procedure for the removal of a director or officer of a member bank who has continued to violate the law or has continued unsafe or unsound practices in conducting the business of the bank with which he is connected, after being warned by the Comptroller of the Currency (as to a national bank) or the Federal Reserve Agent of his district (as to a State member bank) to discontinue such violations or such practices. After a hearing by the Federal Reserve Board establishing such facts, the Board may order the removal of such director or officer and a copy of such order shall be served upon him and upon the bank with which he is connected. Such order and findings of fact may not be made public or disclosed except to such director or officer and the directors of his bank, "otherwise than in connection with proceedings for a violation of this section". Participation by such officer or director in the management of such bank after having been removed is punishable by fine or imprisonment.
Board of directors of National and State member banks.
After one year, the board of directors of every national bank and State member bank shall consist of not less than five and not more than twenty-five members and each director shall own stock having a par value of not less than $2500. If, however, the capital of the bank does not exceed $50,000, a director is required to own stock having a par value of only $1500, and if the capital does not exceed $25,000 he is required to own stock having a par value of only $1,000. The Comptroller of the Currency may appoint a receiver or conservator for a national bank which continues to violate this provision after 30 days notice from the Comptroller, and the Federal Reserve Board may forfeit the membership of a State member bank which continues to violate the provision after 30 days notice from the Board.
Relations of Member Banks with Securities Companies.
After January 1, 1934, no officer or director of a member bank shall be an officer, director or manager of an organization engaged primarily in the securities business and correspondent relationships between member banks and securities organizations are prohibited, except when authorized by a permit therefor issued by the Federal Reserve Board. The Board may issue such a permit if not incompatible with the public interest, and may revoke such permit if the public interest requires.
