The purpose of this and the following chapter is to set forth in a general way the necessary procedure to be followed when a new bank is organized, a state bank converted to a national bank, two banks consolidated, a national bank liquidated, or when related events occur. These matters are defined by statutes and by regulations of the Comptroller of the Currency and of the state superintendents of banks. Statutes and regulations applying to national banks differ from those applying to state institutions; and even among the state institutions, the law and regulations differ according to the various states and also differ with the kind of institution, whether commercial bank, savings bank, trust company, private bank, etc. In general, the procedure in case of national banks is taken as the standard for the state law and regulations.1
1 For a more detailed statement of this subject, see "Instructions of the Comptroller of the Currency Relative to the Organization and Powers of National Banks," Washington, 1919Organization of a New National Bank
A national bank may be started in one of three ways, according to existing conditions and desires: (1) by creating a new bank, (2) by reorganizing a state or private bank into a national bank, or (3) by converting an incorporated state bank into a national bank.
The initial step in organizing a national bank is to write the Comptroller of the Currency asking him to reserve the desired title and stating the bank's location and proposed capital. The Comptroller will reserve the title for 15 days, within which time a formal application to organize is expected to be filed. The title of a national bank must include the word "National" or be followed by "National Banking Association" (usually abbreviated, "N.B.A."); it should include the name of the place where the bank is situated, but not of the state; it may not include the word "First" if a national bank already exists in the place, nor may it be identical with the name of a national bank heretofore in existence, nor materially similar to the name of any bank in the place, whether national, state, or other. The reason for these rules is obvious.