First Revision of "Bank Examinations," Sec. 29

Title

First Revision of "Bank Examinations," Sec. 29

Creator

Strong, Benjamin, 1872-1928

Identifier

WWP18855

Date

No date

Source

Benjamin Strong Jr. Papers, New York Federal Reserve Bank

Language

English

Text

First Revise.
BANK EXAMINATIONS.
Sec. 29. That the Board shall, at least once in each calendar year, cause an examination to be made of the assets and affairs of every depositor, and more frequently if the Board shall consider a special examinations necessary., in order to furnish a full and complete knowledge of the condition of any such depositor. The reports of such examination shall be made in triplicate and one copy thereof filed in the office of the Comptroller of the Currency, one copy in the principal office of the Bank and one copy in the office of the branch of the Bank within the district in which such depositor has its principal office. The person assigned to the making of such examinations shall have power to call together a quorum of the directors of the depositor being examined, who may be required to state under oath the character and circumstances of any asset or liability of such depositor. All examiners, their assistants and clerks, other than those appointed by the Board, shall be appointed and employed by the Executive Committee of the respective branches, subject to the approval of the Board and for service within the districts where such branches are located. They shall receive fixed salaries, the amounts whereof shall be determined by the Board. The expense of the examinations herein provided for shall be assessed by the Executive Committee upon the depositors of the respective districts, in proportion to the assets or resources held by such depositors upon the dates of the examinations.Upon request of any depositor the Executive Committee of any branch may arrange for special or periodical examinations of its affairs, the cost and expenses of such examination to be borne by such depositor. All examinations, whether thus regularly provided or specially authorized, shall be so conducted as to inform the Bank of the actual condition of the depositor examined, and the lines of credit being extended by such depositor, and any other information essential to a knowledge of the condition of such depositor, as may be required.The Board shall, at least once each year, order an examination of each Branch and of each sub branch, and a report of such examination shall be made in triplicate and one copy thereof filed in the office of the Comptroller of the Currency, one copy in the principal office of the Bank, and one copy in the office of the respective Branches. Such examinations and reports shall be so conducted and made as to disclose the actual condition of the assets and liabilities of the respectibve Branches, and the amount and character of their reserves, and of the amount, character and maturity of all of their investments and re discounted paper.No depositor, nor any officer, director or employe thereof, shall make any loan or grant any gratuity to any examiner of any such depositor. Any bank officer, director or employe violating this probvision shall be deemed guilty of a misdemeanor, and shall be fined not more than five thousand dollars, and a f further sum equal to the money so loaned or gratuity given. Any examiner accepting a loan or gratuity from any depositor examined by him shall be deemed guilty of a misdemeanor, and shall be fined not more than five thousand dollars, and a further sum equal to the money so loaned or gratuity given, and shall forever thereafter be disqualified from holding office as an examiner for the Bank. No examiner shall perform any other service for compensation while holding such office, nor shall he be an officer or director of any financial institution. The Comptroller of the Currency shall file one copy of every report made in accordance with the provisions of Sections 5211 and 5240 of the Revised Statutes with the Board, and one copy in the office of the Branch within the district in which the respective depositors under examination have their offices.Section 5241 of the Revised Statutes is hereby amended to read as follows: “No association shall be subject to any visitorial powers other than such as are authorized by this title, or are vested in the directors, officers, or employees of the Federal Reserve Bank of the United States, or are vested in the courts of justice.”

Original Format

Miscellaneous

To

Strong, Benjamin, 1872-1928

Files

http://resources.presidentwilson.org/wp-content/uploads/2017/03/D08467.pdf

Citation

Strong, Benjamin, 1872-1928 , “First Revision of "Bank Examinations," Sec. 29,” No date, WWP18855, Benjamin Strong Jr. Papers, Woodrow Wilson Presidential Library & Museum, Staunton, Virginia.