(a)
Authority. This part
* is issued pursuant to 12 U.S.C.
222, 248, 282, 286-288, 289, 321, 323, 327-328, and 466.
(b) Purpose. The purpose
of this part is to implement the provisions of the Federal Reserve
Act relating to the issuance and cancellation of Federal Reserve Bank
stock upon becoming or ceasing to be a member bank, or upon changes
in the capital and surplus of a member bank, of the Federal Reserve
System. This part also implements the provisions of the Federal Reserve
Act relating to the payment of dividends to member banks.
(c)
Scope. This part applies
to member banks of the Federal Reserve System, to national banks in
process of organization, and to state banks applying for membership.
National banks and locally-incorporated banks located in United States
dependencies and possessions are eligible (with the consent of the
Board) but not required to apply for membership under section 19(h)
of the Federal Reserve Act, 12 U.S.C. 466.
1(d) Definitions. For purposes of this part—
(1)
Capital stock
and surplus. Capital stock and surplus of a member bank means
the paid-in capital stock
2 and paid-in surplus of the bank, less any deficit in the aggregate
of its retained earnings, gains (losses) on available for sale securities,
and foreign currency translation accounts, all as shown on the bank’s
most recent report of condition. Paid-in capital stock and paid-in
surplus of a bank in organization means the amount which is to be
paid in at the time the bank commences business.
(2) Dividend proration basis means
the use of a 360-day year of 12 30-day months for purposes of computing
dividend payments.
(3) Total consolidated assets means the total assets on the
stockholder’s balance sheet as reported by the stockholder on its
Consolidated Report of Condition and Income (Call Report) as of the
most recent December 31, except in the case of:
(i) A new
member “total consolidated assets” means (until the next December
31 Call Report becomes available) the total consolidated assets of
the new member at the time of its application for capital stock; and
(ii) A surviving stockholder
after a merger “total consolidated assets” means (until the next December
31 Call Report becomes available) the total consolidated assets reported
by that stockholder pursuant to section 209.3(d)(5).
