180
73d CONGRESS . SESS . I. CH. 89 . JUNE 16, 1933 . sub- The provisions of such subsection (1) relating to State member banks shall be extended for the purposes of this subsection to members of the Fund which are not members of the Federal Reserve System ; and the provisions of this subsection shall apply only to deposits of members of the Fund which have been made available since March 10, 1933, for wit hdrawal in th e usual cours e of the banki ng business . J Bala nce l~~ of Fund, " Before July 1, 1934, the Corporation shall make an estimate of Post, p. 97 0. the balance, if any, which will remain in the Fund after providing for all liabilities of the Fund, i ncluding expe nses of operat ion thereof under this subsection and allowing for anticipated recoveries . Refunds to mem- The Corporation shall refund such estimated balance, on such basis be rs
as the Corporation shall find to be equitable, to the members of the Fund other than those which have been closed prior to July 1, 1934 . Subscription for class " Each State bank which is a member of th e Fun d, in order to A stock, State bank
7 member of Fund.
obtain the benefits of this section after July 1, 1934, shall, on or before such date, subscribe and pay for the same amount of class A stock of the Corporation as it would be required to subscribe and pay for upon becoming a member bank, or if such State bank is Depo sit, if s ubscr ip- not permitted by the laws under which it was organized to pur- t'on unlawful . chase suc h stock, it sh all deposit w ith the Corpo ration an amou nt equal to the amount it would have been required to pay in on account of a subscription to such stock ; and thereafter such State bank shall be entitled to such benefits until July 1, 1936 . "It is not the purpose of this section to discriminate, in any mann er, ag ainst State nonme mber, and in favo r of, nation al or member banks ; but the purpose is to provide all banks with the same opportunity to obtain and enjoy the benefits of this section . No bank shall be discriminated against because its capital stock is less than the amount required for eligibility for admission into the Federal Reserve System ." SEC. 9 . The eighth paragraph of section 13 of the Federal Reserve Act, as amended (U .S .C., title 12, sec . 347 ; Supp . VI, title 12, sec . 347), is amended to read as follows : j "Any Federal reserve bank may make advances for periods not exceeding fifteen days to its member banks on their promissory notes secured by the deposit or pledge of bonds, notes, certificates of indebtedness, or Treasury bills of the United States, or by the deposit or pledge of debentures or other such obligations of Federal intermediate credit banks which are el igible for pur chase by Fed- eral reserve banks under section 13 (a) of this Act ; and any Federal reserve bank may make advances for periods not exceeding ninety days to its member banks on the ir promissory notes secured by suc h notes , draf ts, bil ls of e xchang e, or b ankers' accep tances as are eligible for rediscount or for purchase by Federal reserve banks under the provisions of this Act . All such advances shall be made at rates to be established by such Federal reserve banks, such rates to be sub- ect to the review and determination of the Federal Reserve Board . If any member bank to which any such advance has been made shall, during the life or continuance of such advance, and despite an official warning of the reserve bank of the district or of the Federal Reserve Board to the contrary, increase its outstanding loans secured by collateral in the form of stocks, bonds, debentures, or other such obligations, or loans made to members of any organized stock exchange, investment house, or dealer in securities, upon any obligation, note, or bill, secured or unsecured, for the purpose of purch asing and/or carr ying s tocks, bonds , or other invest ment securities (except obligations of the United States) such advance shall be deemed immediately due and payable, and such member Application of section (1). Post, p . 969 . Purpose of section . Vol . 39, p.753, Vol. 47, p. 160 . U.S.C.,p. 282, Supp. VI, p. 136. Post, pp . 348, 646 . Advances to member banks on their notes . Deben ture s of Fed- eral inter medi ate c red- it ban ks . Vol.42,p. 1479. U.S.C.,p. 282. Rates of advan ces . Det erm in ed by Re- serve Boa rd . Advances de emed immediately payable, when outstanding loans inc rea sed for stock, etc ., purchases .
