who shall cause a reappraisal to be made which shall be final and binding as to value of the shares of the appellant. If, within ninety days from the date of consummation of the merger, for any reason, one or more of the appraisers have not been selected, or the appraisers have failed to determine the value of the shares, the Comptroller, upon written request of any interested party, shall cause an appraisal to be made which shall be final and binding on all parties. The expenses of the Comptroller in making the reappraisal or the appraisal, as the case may be, shall be paid by the receiving association. The value of the shares ascertained shall be promptly paid to the shareholders by the receiving association, and the shares so paid for shall be surrendered to and cancelled by the receiving association. The provisions of this paragraph shall apply only to shareholders of and stock owned by them in a bank or association being merged into the receiving association. "(c) The corporate existence of the merging association or State bank shall be merged into that of the receiving association. All rights, franchises, and interests of the merging association or State bank in and to every type of property (real, personal, and mixed) and choses in action shall be transferred to and vested in the receiving association by virtue of such merger without any deed or other transfer. The receiving association, upon the merger and without any order or other action on the part of any court or otherwise, shall hold and enjoy all rights of property, franchises, and interests, including appointments, designations, and nominations, and all other rights and interests as trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver, committee of estates of lunatics, and in every other fiduciary capacity, in the same manner and to the same extent as such rights, franchises, and interests were held or enjoyed by any merging association or State bank at the time of the merger, subject to the conditions hereinafter provided. "Where any merging association or State bank, at the time of the merger, was acting under appointment of any court as trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver, committee of estates of lunatics, or in any other fiduciary capacity, the receiving association shall be subject to removal by a court of competent jurisdiction in the same manner and to the same extent as was the merging association or State bank prior to the merger. Nothing contained in this section shall be considered to impair in any manner the right of any court to remove a receiving association and to appoint in lieu thereof a substitute trustee, executor, or other fiduciary, except that such right shall not be exercised in such a manner as to discriminate against national banking associations, nor shall any receiving association be removed solely because of the fact that it is a national banking association. "(d) Any national banking association which is a receiving association may issue stock, with the approval of the Comptroller and in accordance with law, to be delivered to the shareholders of a merging State bank or national banking association as provided for by a merger agreement, free from any preemptive rights of the shareholders of the receiving association. "SEC. 5. As used in this Act the term "(1) 'State bank' means any bank, banking association, trust company, savings bank (other than a mutual savings bank), or other banking institution which is engaged in the business of receiving deposits and which is incorporated under the laws of any State, or which is operating under the Code of Law for the District of Columbia (except a national banking association located in the District of Columbia); "(2) 'State' means the several States, the several Territories, Puerto Rico, the Virgin Islands, and the District of Columbia; "(3) 'Comptroller' means the Comptroller of the Currency; and "(4) 'Receiving association' means the national banking association into which one or more national banking associations or one or more State banks, located within the same State, merge." SEC. 2. Section 3 of the Act of November 7, 1918, as amended (U. S. C., title 12, sec. 34a), is amended by deleting the second paragraph thereof, which reads as follows: "The words 'State bank', 'State banks', ‘bank', or 'banks', as used in this section, shall be held to include trust companies, savings banks, or other such corporations or institutions carrying on the banking business under the authority of State laws." Approved July 14, 1952. AMENDMENT TO THE FEDERAL RESERVE ACT PUBLIC LAW 543-82D CONGRESS* CHAPTER 753-2D SESSION S. 2938 AN ACT To amend section 9 of the Federal Reserve Act, as amended, and section 5155 of the Revised Statutes, as amended, 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 eleventh paragraph of section 9 of the Federal Reserve Act, as amended (U. S. C., title 12, sec. 329), is amended to read as follows: "No applying bank shall be admitted to membership unless it possesses capital stock and surplus which, in the judgment of the Board of Governors of the Federal Reserve System, are adequate in relation to the character and condition of its assets and to its existing and prospective deposit liabilities and other corporate responsibilities: Provided, That no bank engaged in the business of receiving deposits other than trust funds, which does not possess capital stock and surplus in an amount equal to that which would be required for the establishment of a national banking association in the place in which it is located, shall be admitted to membership unless it is, or has been, approved for deposit insurance under the Federal Deposit Insurance Act. The capital stock of a State member bank shall not be reduced except with the prior consent of the Board." SEC. 2. (a) The third paragraph of section 9 of the Federal Reserve Act, as amended (U. S. C., title 12, sec. 321, third paragraph), is further amended by adding at the end thereof a new sentence reading as follows: "The approval of the Board shall likewise be obtained before any State member bank may establish any new branch within the limits of any such city, town, or village (except within the District of Columbia)." (b) Subsection (c) of section 5155 of the Revised Statutes, as amended (U. S. C., title 12, sec. 36 (c) ), is further amended by changing the last sentence of such subsection to read as follows: "Except as provided in the immediately preceding sentence, no such association shall establish a branch outside of the city, town, or village in which it is situated unless it has a combined capital stock and surplus equal to the combined amount of capital stock and surplus, if any, required by the law of the State in which such association is situated for the establishment of such branches by State banks, or, if the law of such State requires only a minimum capital stock for the establishment of such branches by State banks, unless such association has not less than an equal amount of capital stock." Approved July 15, 1952. 66 Stat. 633; 12 U.S.C. 329, 321, 36(c). RULES AND REGULATIONS OF THE CORPORATION Effective July 1, 1952, Section 329.3(c) is amended to read as follows: (c) Grace periods in computing interest on savings deposits. An insured non-member bank may pay interest on a savings deposit received during its first ten business days of any calendar month commencing a regular quarterly or semi-annual interest period and during its first five business days of any other calendar month at the applicable maximum rate prescribed pursuant to paragraph (a) of this section calculated from the first day of such calendar month until such deposit is withdrawn or ceases to constitute a savings deposit under the provisions of this part, whichever shall first occur; and an insured non-member bank may pay interest on savings deposits withdrawn during its last three business days of any calendar month ending a regular quarterly or semi-annual interest period at the applicable maximum rate prescribed pursuant to paragraph (a) calculated to the end of such calendar month. STATE BANKING LEGISLATION In 1952 the legislatures of sixteen States held regular sessions and six of these legislatures held special sessions. The legislatures of four other States held special sessions. This summary includes the more important State banking legislation enacted in 1952. Examination fees... SUPERVISORY AUTHORITY Michigan (Act 144) Examination of banks at least twice in eighteen months, instead of twice a year.. Salaries of supervisory authority and examiners. .Maryland (Ch. 50) .Mississippi (Ch. 181) ORGANIZATION AND CHARTER CHANGES Incorporation of trust companies and granting of trust powers to existing corporations subject to approval of Superintendent of Banks.. ...Georgia (Act 780) Branch offices and agencies... Merger and consolidation.. New Jersey (Chs. 179; 220); Virginia (Ch. 75) .New York (Ch. 316) .New York (Ch. 545) Conversion of industrial bank to State bank.. Authorization for national banks to become State banks by conversion, merger or consolidation. ...Kentucky (Ch. 222); Illinois (Secs. 12a-b, Banking Act); Virginia (Ch. 466) Authorization for State banks to become national banks by conversion, merger or consolidation as provided by Federal law.. Kentucky (Ch. 222); Illinois (Sec. 13a, Banking Act) GENERAL OPERATING PROVISIONS .South Carolina (Act 773) New Jersey (Ch. 144) Rental of safety deposit boxes. Payment of extra dividends and additions to guaranty fund by savings banks.... Massachusetts (Ch. 161) Retention and destruction of records and admission in evidence of photographs of bank records... . Mississippi (Ch. 184); New York (Ch. 790) Final adjustment of statements of account of bank with its depositors.... .Mississippi (Ch. 185) Rebates of interest taken in advance required upon prepayment of instalment loan.. New Jersey (Ch. 248) DEPOSITS Payment of deposits of deceased depositor.... .....Georgia (Act 777); Louisiana (Act 539); New York (Ch. 824) Deposit of and security for public funds....Kentucky (Ch. 221); Virginia (Ch. 514) Limitations on deposits of savings banks with depositaries.. School savings deposits... ..Massachusetts (Ch. 186); Rhode Island (Ch. 3013) LOANS Modification of real estate loan limitation.. New Jersey (Ch. 113); Virginia (Ch. 25) ....Louisiana (Act 133); South Carolina (Act 744) Car parking facility for bank customers with consent of supervisory authority. . . . Savings bank investments: ...Mississippi (Ch. 182); New Jersey (Ch. 179) Dominion of Canada bonds... .Massachusetts (Ch. 607); New Jersey (Ch. 140) Massachusetts (Ch. 194) Banking premises.. Massachusetts (Ch. 160) Federal, State, county and municipal securities.... Investments by fiduciaries.. TRUST ACTIVITIES .....New Jersey (Ch. 280); South Carolina (Acts 782, 783); Virginia (Ch. 196) Ascertainment of principal and income in estates and trusts... New Jersey (Ch. 156) Investment of common trust funds.... ..New York (Ch. 215) Maximum participation in common trust fund in the investment of small trust funds Massachusetts (Ch. 209) MISCELLANEOUS Authority to refuse payment of checks one year after Taxation of State and national banks. date....Mississippi (Ch. 183) ...Virginia (Ch. 56) Massachusetts (Ch. 534) .Illinois (H.J. Res. 15, 1951, adopted 1952) .Colorado (H.B. 86); Georgia (Act 587); Michigan (Act 182) Uniform Trust Receipts Act.... |