Sec. 5. The capital stock of each Fed. Res. bank shall be divided into shares of $100 each. The outstanding capital stock shall be increased from time to time as member banks increase their capital stock and surplus or as additional banks become members, and may be decreased as member banks reduce their capital stock or surplus or cease to be members. Shares of the capital stock of Fed. Res. banks owned by member banks shall not be transferred or hypothecated. When a member bank increases its capital stock or surplus, it shall thereupon subscribe for an additional amount of capital stock of the Fed. Res. bank of its Dist. equal to 6% of the said increase, \ of said subscription to be paid in the manner hereinbefore provided for original subscription, and 1/2 subject to call of the Fed. Res. Board. A bank applying for stock in a Fed. Res. bank at any time after the organization thereof must subscribe for an amount of the capital stock of the Fed. Res. bank equal to 6% of the paid-up capital stock and surplus of said applicant bank paying therefor its par value plus 1/2% a month from the period of the last Div. When the capital stock of any Fed. Res. bank shall have been increased either on account of the increase of capital stock of member banks or on account of the increase in the number of
Federal Reserve Act member banks, the board of directors shall cause to be executed a C't'f. to the Comptroller of the Currency showing the increase in capital stock, the amount paid in, and by whom paid. When a member bank reduces its capital stock it shall surrender a proportionate amount of its holdings in the capital of said Fed. Res. bank, and when a member bank voluntarily liquidates it shall surrender all of its holdings of the capital stock of said Fed. Res. bank and be released from its stock subscription not previously called. In either case the shares surrendered shall be canceled and the member bank shall receive in payment therefor, under regulations to be prescribed by the Fed. Res. Board, a sum equal to its cash-paid subscriptions on the shares surrendered and 1/2% a month from the period of the last Div.. not to exceed the book value thereof, less any liability of such member bank to the Fed. Res. bank.
Sec. 6. If any member bank shall be declared insolvent and a receiver appointed therefor, the stock held by it in said Fed. Res. bank shall be canceled, without impairment of its liability, and all cash-paid subscriptions on said stock, with 1/2 % per month from the period of last Div., not to exceed the book value thereof, shall be first applied to all debts of the insolvent member bank to the Fed. Res. bank, and the balance, if any, shall be paid to the receiver of the insolvent bank. Whenever the capital stock of a Fed. Res. bank is reduced, either on account of a reduction in capital stock of any member bank or of the liquidation or insolvency of such bank, the board of directors shall cause to be executed a C't'f. to the Comptroller of the Currency showing such reduction of capital stock and the amount repaid to such bank.