Prohibited Compensation
Title
Prohibited Compensation
Creator
Strong, Benjamin, 1872-1928
Identifier
WWP18854
Date
No date
Source
Benjamin Strong Jr. Papers, New York Federal Reserve Bank
Language
English
Text
FIRST REVISE.
PROHIBITED COMPENSATION.
Sec. 30. That no officer, director or employe of a national bank shall be beneficiary of or receive, either directly or indirectly, any fee (other than the usual salary or director's fee paid to such officer, director or employe by the national bank and other than a legitimate fee paid to an attorney at law for legal services) or any commission, gift or other consideration other than as aforesaid for or on account of his services, vote or influence as such officer, director or employe, in connection with or in respect of any loan, purchase, sale, payment, exchange or translaction with respect to stocks, bonds, or other investment securities or notes, bills of exchange, acceptances, bankers’ bills, cable transfers or mortgages made by or on behalf of a national bank of which he is such officer, director or employe. Any person violating any provision of this section shall be punished by a fine of not exceeding $5,000 or by imprisonment not exceeding five years, or both such fine and imprisonment, in the discretion of the court having jurisdiction. Provided, that this restriction shall not be construed to cover transactions in good faith and in the ordinary course of business between a national bank and another national bank or a banking firm or a state bank or a trust company.
PROHIBITED COMPENSATION.
Sec. 30. That no officer, director or employe of a national bank shall be beneficiary of or receive, either directly or indirectly, any fee (other than the usual salary or director's fee paid to such officer, director or employe by the national bank and other than a legitimate fee paid to an attorney at law for legal services) or any commission, gift or other consideration other than as aforesaid for or on account of his services, vote or influence as such officer, director or employe, in connection with or in respect of any loan, purchase, sale, payment, exchange or translaction with respect to stocks, bonds, or other investment securities or notes, bills of exchange, acceptances, bankers’ bills, cable transfers or mortgages made by or on behalf of a national bank of which he is such officer, director or employe. Any person violating any provision of this section shall be punished by a fine of not exceeding $5,000 or by imprisonment not exceeding five years, or both such fine and imprisonment, in the discretion of the court having jurisdiction. Provided, that this restriction shall not be construed to cover transactions in good faith and in the ordinary course of business between a national bank and another national bank or a banking firm or a state bank or a trust company.
Original Format
Miscellaneous
Files
Collection
Citation
Strong, Benjamin, 1872-1928, “Prohibited Compensation,” No date, WWP18854, Benjamin Strong Jr. Papers, Woodrow Wilson Presidential Library & Museum, Staunton, Virginia.