In Oklahoma, South Dakota, and North Dakota, the depositors were to be paid at once from the guaranty fund. In all three States the law provided that if the fund were insufficient interest-bearing certificates of indebtedness were to be issued. In Oklahoma and North Dakota these were made payable out of the first money accruing to the fund; in South Dakota, due and payable on the first day of the next March. In the remaining State, Washington, warrants were to be issued to each holder of a guaranteed deposit, upon proof of claim, payable out of the fund. These were presumably to be presented immediately, and were to carry interest only if funds were insufficient to pay them, in which event five percent until called. Termination of the insurance funds. Bank failures during the 1920's and early 1930's resulted in the termination of the deposit insurance systems in the eight States. However, proposals in the Congress for nationwide insurance of bank deposits, which had begun as early as 1886, continued during the 1920's, and in the early 1930 s were given new impetus as a consequence of the large number of bank failures. Thus the series of events which forced the last of the eight State plans to cease operations, and which culminated in the banking holiday of 1933, was the principal factor in the enactment of Federal deposit insurance. AMENDMENT TO THE FEDERAL DEPOSIT INSURANCE ACT PUBLIC LAW 533-82D CONGRESS* CHAPTER 725-2D SESSION H. R. 5120 AN ACT To amend the Federal Deposit Insurance Act so as to require the insurance of deposits payable at branches of insured banks in Puerto Rico. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That in order to insure more adequate protection of Puerto Rican depositors by terminating the right of any insured bank, having its principal place of business in any of the States of the United States or in the District of Columbia which maintains a branch in Puerto Rico, to elect to exclude from insurance under the Federal Deposit Insurance Act its deposit obligations which are payable only at such branch, section 3 (1) of the Federal Deposit Insurance Act, as amended (12 U. S. C. 1813 (1)), is hereby amended by striking out "Puerto Rico," from the second proviso thereof. Approved July 14, 1952. 66 Stat. 605; 12 U.S.C. 1818 (1). AMENDMENT TO THE NATIONAL BANK CONVERSION ACT PUBLIC LAW 515-82D CONGRESS* CHAPTER 696-2D SESSION S. 2252 AN ACT To clarify the Act of August 17, 1950, providing for the conversion of national banks into and their merger and consolidation with State banks. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 4 of the Act entitled "An Act to provide for the conversion of national banking associations into and their merger or consolidation with State banks, and for other purposes", approved August 17, 1950 (12 U. S. C. 214c), is amended by striking out the words "as provided by Federal law" at the end of the section and substituting the words "under limitations or conditions no more restrictive than those contained in section 2 hereof with respect to the conversion of a national bank into, or merger or consolidation of a national bank with, a State bank under State charter". Approved July 12, 1952. 66 Stat. 590; 12 U.S.C. 214c. NATIONAL BANK MERGER ACT PUBLIC LAW 530-82D CONGRESS* CHAPTER 722-2D SESSION S. 2128 AN ACT To provide for the merger of two or more national banking associations and for the merger of State banks with national banking associations, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Act entitled "An Act to provide for the consolidation of national banking associations", approved November 7, 1918, as amended (U. S. C., title 12, secs. 33, 34, and 34a), is hereby amended by adding at the end thereof new sections 4 and 5 to read as follows: "SEC. 4. (a) One or more national banking associations or one or more State banks, with the approval of the Comptroller, under an agreement not inconsistent with this Act, may merge into a national banking association located within the same State, under the charter of the receiving association. "(b) The merger agreement shall "(1) be agreed upon in writing by a majority of the board of directors of each association or State bank participating in the plan of merger; "(2) be ratified and confirmed by the affirmative vote of the shareholders of each association or State bank owning at least two-thirds of the capital stock outstanding, at a meeting to be held on the call of the directors, after publishing notice of the time, place, and object of the meeting for four consecutive weeks in a newspaper with general circulation in the place where the association or State bank is located, and after sending such notice to each shareholder of record by registered mail at least ten days prior to the meeting, except to those shareholders who specifically waive notice; "(3) specify the amount of the capital stock of the receiving association which will be outstanding upon completion of the merger, the amount of stock (if any) to be allocated, and cash (if any) to be paid to the shareholders of the association or State bank being merged into the receiving association; and "(4) provide the manner of disposing of any shares of the receiving association not taken by the shareholders of the association or State bank merged into the receiving association. "If a merger shall be voted for at the call meetings by the necessary majorities of the shareholders of each association or State bank participating in the plan of merger, any shareholder of any association or State bank to be merged into the receiving association who has voted against the merger at the meeting of the shareholders, or has given notice in writing at or prior to the meeting to the presiding officer that he dissents from the plan of merger, shall be entitled to receive the value of the shares held by him if and when the merger shall be approved by the Comptroller. The value of the shares shall be ascertained, as of the date of the meeting of the shareholders of the association or State bank approving the merger, by an appraisal made by a committee of three persons, composed of (i) one selected by the vote of the holders of a majority of the stock, the owners of which are entitled to payment in cash; (ii) one selected by the directors of the receiving association; and (iii) one selected by the two so selected. The valuation agreed upon by any two of the three appraisers shall govern. If the value so fixed shall not be satisfactory to any dissenting shareholder who has requested payment, that shareholder may, within five days after being notified of the appraised value of his shares, appeal to the Comptroller, 66 Stat. 599-601; 12 U.S.C. 34b and 84c. |