Sec. 4. When the organization committee shall have established Fed. Res. Dists. as provided in Sec. 2 of this Act, a C't'f. shall be filed with the Comptroller of the Currency showing the geographical limits of such Dists. and the Fed. Res. city designated in each of such Dists. The Comptroller of the Currency shall thereupon cause to be forwarded to each Nat. bank located in each Dist., and to such other banks declared to be eligible by the organization committee which may apply therefor, an application blank in form to be approved by the organization committee, which blank shall contain a resolution to be adopted by the board of directors of each bank executing such application, authorizing a subscription to the capital stock of the Fed. Res. bank organizing in that Dist. in accordance with the provisions of this Act.
When the minimum amount of capital stock prescribed by this Act for the organization of any Fed. Res. bank shall have been subscribed and allotted, the organization committee shall designate any 5 banks of those whose applications have been received, to execute a C't'f. of organization, and thereupon the banks so designated shall, under their seals, make an organization C't'f. which shall specifically state the name of such Fed. Res. bank, the territorial extent of the Dist. over which the operations of such Fed. Res. bank are to be carried on, the city and State in which said bank is to be located, the amount of capital stock and the number of shares into which the same is divided, the name and place of doing business of each bank executing such C't'f., and of all banks which have subscribed to the capital stock of such Fed. Res. bank and the number of shares subscribed by each, and the fact that the C't'f. is made to enable those banks executing same, and all banks which have subscribed or may thereafter subscribe to the capital stock of such Fed. Res. bank, to avail themselves of the advantages of this Act.
The said organization C't'f. shall be acknowledged before a judge of some court of record or notary public; and shall be, together with the acknowledgement thereof, authenticated by the seal of such court, or notary, transmitted to the Comptroller of the Currency, who shall file, record and carefully preserve the same in his office.
Upon the filing of such C't'f. with the Comptroller of the Currency as aforesaid, the said Fed. Res. bank shall become a body corporate and as such, and in the name designated in such organization C't'f., shall have power 1st. To adopt and use a corporate seal.
2d. To have succession for a period of 20 years from its organization unless it is sooner dissolved by an Act of Congress, or unless its franchise becomes forfeited by some violation of law.
3d. To make contracts.
4th. To sue and be sued, complain and defend, in any court of law or equity.
5th. To appoint by its board of directors, such officers and employees as are not otherwise provided for in this Act, to define their duties, require bonds of them and fix the penalty thereof, and to dismiss at pleasure such officers or employees.
6th. To prescribe by its board of directors, by-laws not inconsistent with law, regulating the manner in which its general business may be conducted, and the privileges granted to it by law may be exercised and enjoyed.
7th. To exercise by its board of directors, or duly authorized officers or agents, all powers specifically granted by the provisions of this Act, and such incidental powers as shall be necessary to carry on the business of banking within the limitations prescribed by this Act.
8th. Upon deposit with the Treas. of the U. S. of any bonds of the U. S. in the manner provided by existing law relating to Nat. banks, to receive from the Comptroller of the Currency circulating notes in blank, registered and countersigned as provided by law, equal in amount to the par value of the bonds so deposited, such notes to be issued under the same conditions and provisions of law as relate to the issue of circulating notes of Nat. banks secured by bonds of the U. S. bearing the circulating privilege, except that the issue of such notes shall not be limited to the capital stock of such Fed. Res. bank.
But no Fed. Res. bank shall transact any business except such as is incidental and necessarily preliminary to its organization until it has been authorized by the Comptroller of the Currency to commence business under the provisions of this Act.
Every Fed. Res. bank shall be conducted under the supervision and control of a board of directors.
The board of directors shall perform the duties usually appertaining to the office of directors of banking Asso. and all such duties as are prescribed by law.
Said board shall administer the affairs of said bank fairly and impartially and without discrimination in favor of or against any member bank or banks and shall, subject to the provisions of law and the orders of the Fed. Res. Board, extend to each member bank such discounts, advancements and accommodations as may be safely and reasonably made with due regard for the claims and demands of other member banks.
Such board of directors shall be selected as hereinafter specified and shall consist of 9 members, holding office for 3 years, and divided into 3 classes, designated as classes A, B, and C.
Class A shall consist of 3 members, who shall be chosen by and be representative of the stock-holding banks.
Class B shall consist of 3 members, who at the time of their election shall be actively engaged in their Dist. in commerce, agriculture or some other industrial pursuit.
Class C shall consist of 3 members who shall be designated by the Fed. Res. Board. When the necessary subscriptions to the capital stock have been obtained for the organization of any Fed. Res. bank, the Fed. Res. Board shall appoint the class C directors and shall designate one of such directors as chairman of the board to be selected. Pending the designation of such chairman, the organization committee shall exercise the powers and duties appertaining to the office of chairman in the organization of such Fed. Res. bank.