Sec. 2. As soon as practicable, the Secy. of the Treas., the Secy. of Agriculture and the Comptroller of the Currency, acting as "The Reserve Bank Organization Committee," shall designate not less than 8 nor more than 12 cities to be known as Federal reserve cities, and shall divide the continental U. S., excluding Alaska, into Dists., each Dist. to contain only one of such Fed. Res. cities. The determination of said organization committee shall not be subject to review except by the Fed. Res. Board when organized: Provided, That the Dists. shall be apportioned with due regard to the convenience and customary course of business and shall not necessarily be coterminous with any State or States. The Dists. thus created may be readjusted and new Dists. may from time to time be created by the Fed. Res. Board, not to exceed 12 in all. Such Dists. shall be known as Fed. Res. Dists. and may be designated by number. A majority of the organization committee shall constitute a quorum with authority to act.
Said organization committee shall be authorized to employ counsel and expert aid, to take testimony, to send for persons and papers, to administer oaths, and to make such investigation as may be deemed necessary by the said committee in determining the reserve Dists. and in designating the cities within such Dists. where such Fed. Res. banks shall be severally located. The said committee shall supervise the organization in each of the cities designated of a Fed. Res. bank, which shall include in its title the name of the city in which it is situated, as "Federal Reserve Bank of Chicago."
Under regulations to be prescribed by the organization committee, every Nat. banking Asso. in the U. S. is hereby required, and every eligible bank in the U. S. and every Tr. Co. within the Dist. of Col., is hereby authorized to signify in writing, within 60 days after the passage of this Act, its acceptance of the terms and provisions hereof. When the organization committee shall have designated the cities in which Fed. Res. banks are to be organized, and fixed the geographical limits of the Fed. Res. Dists every Nat. banking Asso. within that Dist. shall be required within 30 days after notice from the organization committee, to subscribe to the capital stock of such Fed. Res. bank in a sum equal to 6% of the paid-up capital stock and surplus of such bank, 1/6 of the subscription to be payable on call of the organization committee or of the Fed. Res. Board, 1/6 within 3 months and 1/6 within 6 months thereafter, and the remainder of the subscription, or any part thereof, shall be subject to call when deemed necessary by the Fed. Res. Board, said payments to be in gold or gold certificates.
The shareholders of every Fed. Res. bank shall be held individually responsible, equally and ratably, and not one for another, for all contracts, debts, and engagements of such bank to the extent of the amount of their subscriptions to such stock at the par value thereof in addition to the amount subscribed, whether such subscriptions have been paid up in whole or in part, under the provisions of this Act.
Any Nat. Bank failing to signify its acceptance of the terms of this Act within the 60 days aforesaid, shall cease to act as a reserve agent, upon 30 days' notice, to be given within the discretion of the said organization committee or of the Fed. Res. Board.
Should Any Nat. Banking Asso. in the U. S. now organized fail within one year after the passage of this Act to become a member bank or fail to comply with any of the provisions of this Act applicable thereto, all of the rights, privileges, and franchises of such Asso. granted to it under the national-bank Act, or under the provisions of this Act, shall be thereby forfeited. Any noncompliance with or violation of this Act shall, however, be determined and adjudged by any court of the U. S. of competent jurisdiction in a suit brought for that purpose in the Dist. or territory in which such bank is located, under direction of the Fed. Res. Board, by the Comptroller of the Currency in his own name before the Asso. shall be declared dissolved. In cases of such noncompliance or violation, other than the failure to become a member bank under the provisions of this Act, every director who participated in or assented to the same shall be held liable in his personal or individual capacity for all damages which said bank, its shareholders, or any other person shall have sustained in consequence of such violation.
Such dissolution shall not take away or impair any remedy against such Corp., its stockholders or officers, for any liability or penalty which shall have been previously incurred.
Should the subscriptions by banks to the stock of said Fed. Res. banks or any one or more of them be, in the judgment of the organization committee, insufficient to provide the amount of capital required therefor, then and in that event the said organization committee may, under conditions and regulations to be prescribed by it, offer to public subscription at par such an amount of stock in said Fed. Res. banks, or any one or more of them, as said committee shall determine, subject to the same conditions as to payment and stock liability as provided for member banks.
No individual, copartnership; or Corp. other than a member bank of its Dist. shall be permitted to subscribe for or to hold at any time more than $25,000 par value of stock in any Fed. Res. bank. Such stock shall be known as public stock and may be transferred on the books of the Fed. Res. bank by the chairman of the board of directors of such bank.
Should the. total subscriptions by banks and the public to the stock of said Fed. Res. banks, or any one or more of them, be, in the judgment of the organization committee, insufficient to provide the amount of capital required therefor, then and in that event the said organization committee shall allot to the U. S. such an amount of said stock as said committee shall determine. Said U. S. stock shall be paid for at par out of any money in the Treasury not otherwise appropriated, and shall be held by the Secy, of the Treas. and disposed of for the benefit of the U. S. in such manner, at such times, and at such price, not less than par, as the Secy, of the Treas. shall determine.