SIXTY-FIFTH CONGRESS. Sess. II. Cir. 177. 1918. 969 the granting to and the exercise of such powers by national banks shall not be deemed to be in contravention of State or local law within the meaning of this Act. _ "National banks exercising any or all of the powers enumerated ,,,cSfp,‘2,{,“,*,§g‘,§’F°““‘“‘* in this subsection shall segregate all assets held in any fiduciary _ capacity from the general assets of the bank and shall keep a separate set of ooks and records showingh-gi proper detail all transactions engaged in under authority of subsection. Such books and records shall be open to inspection by the State authorities to the same extent as the books and records of corporations organized under State law which exercise Hduciary powers, but nothing in this Act shall be construed as authorizing the State authorities to ex- sym umimum amine the books, records, and assets of the national bank which are um"°°‘ not held in trust rmder authority of this subsection. "No national bank shall receive in its trust department deposits b.,r§;L§,§EG,‘l$,*$‘},{§{°“° of current frmds subject to check or the deposit ·of checks, afts, - bills of exchange, or other items for collection or exchange purposes. Funds deposited or held in trust by the bank awaiting investment shall be carried in a separate account and shall not be used by the bank in the conduct 0 its business unless it shall first set aside in the trust department United States bonds or other securities approved. by the Federal Reserve Board. 2 “In the event of the failure of such bank the owners of the fumb d,I§l,,§‘,,§',,,,,,'E"$,,f’“ held in trust for investment shall have a lien on the bonds or other securities so set apart in addition to their claim against the estate °f·i1iih}2ii1Z5er the laws of a State require corporations acting in a §?”“"g°“ ‘§,°§"*“;" fiduciary capacity, to deposit securities with the_State authoritiesm M an " for the protection of private or court trusts, national banks so acting shall be to make similar deposits and securities so deposits shall be he d_for the protection of private or court trusts, as provided by the State law. "Natronal banks in such cases shall not be required to execute B°°° °x°m’°°°' the bond usually required of individuals if State corporations under similar circumstances are exempt from this requirement. "Nationa.l banks shall have power to execute such bond when so E’°°“"°“ °"’°"°‘ required by the laws of the State. "ln any case in which the laws of a State require that a corpora- ,,;5f§°,§f*°" °‘ °°°°` tion acting as trustee, executor, administrator, or in an capacity specified in this section, shall take an oath or make an aflirdavrt, the resident, vice president, cashier, or trust officer of such national iiank may take the necessary oath or execute the necessary affidavit. IMM 0, mst mmm "It shall be unlawful for any national banking association to lend to emma, ea., unawany officer, director, or employee any funds hel in trust under the '“’· powers conferred by this section. Any officer, director, or em- ,,;l;§‘§*,3f‘§‘§§° '°" °°° loyee making such loan, or to whom such loan is made, may be gned not more than $55,000, or imprisoned not more than Eve years, or mlgy be both fined arild imprispned, in the discretion of plhe court. Mmm M Bond on " assin u on a `cations or errnission to exercise the powers ,, , enumeriiited this sulbgection, the Iii-zderal Reserve Board may take ¤i)iix=limum 10 Ni into consideration the amount of capital and surplus of the applying bank, whether or not such capital and s1u·plus is sufficient under the circumstances of the case, the needs of the community to be served, and any other facts and circumstances that seem to it progeg, and PWM may grant or refuse the application accordingly: Provided, at no cspaauQm.,r·eq¤aepermit shall be issued to any national banking association havingba “‘°"‘· capital and surplus less than the capital and surplus required y State law of State banks, trust companies, and corporations exercising such '1pxowers." Sec. 3. at the ninth paragra h of section sixteen of the Fed- ,,.,};,'§f"'°l'°'°"° eral reserve Act, as amended by the Acts approved September sev-
