1. Insolvency
of Member Banks If any member bank
shall be declared insolvent and a receiver appointed therefor, the
stock held by it in said Federal reserve bank shall be canceled, without
impairment of its liability, and all cash-paid subscriptions on said
stock, with one-half of 1 per centum per month from the period of
last dividend, if earned, not to exceed the book value thereof, shall
be first applied to all debts of the insolvent member bank to the
Federal reserve bank, and the balance, if any, shall be paid to the
receiver of the insolvent bank.
[12 USC 288. As amended
by act of April 23, 1930 (46 Stat. 250).]
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2. National Bank Discontinuing Banking Operations If any national bank which has not gone
into liquidation as provided in section 5220 of the Revised Statutes
(United States Code, title 12, section 181) and for which a receiver
has not already been appointed for other lawful cause, shall discontinue
its banking operations for a period of sixty days the Comptroller
of the Currency may, if he deems it advisable, appoint a receiver
for such bank. The stock held by the said national bank in the Federal
reserve bank of its district shall thereupon be canceled and said
national bank shall receive in payment therefor, under regulations
to be prescribed by the Board of Governors of the Federal Reserve
System, a sum equal to its cash-paid subscriptions on the shares canceled
and one-half of 1 per centum a month from the period of the last dividend,
if earned, not to exceed the book value thereof, less any liability
of such national bank to the Federal reserve bank.
[12 USC 288. As added
by act of April 23, 1930 (46 Stat. 250). As amended by act of Aug.
23, 1935 (49 Stat. 713).]
