Page:United States Statutes at Large Volume 49 Part 1.djvu/747

702 Branch banks; estab- lishing or moving to new location ; consent required . Indemnity protec- tion of insured banks . Publ icatio n of re port of examination when recommendation not complied with . Proviso . Notice of intention to publish . Payment of interest on deman d depo sits ; regulations to prohibit . Exceptions. Time and savings deposits ; regulations . Penalty for viola- tions . 74TH CO NGRESS . SESS. I. CH . 614. AUGUST 23, 1935 . the amount or retire any part of its common or preferred capital stock, or retire any part of its capital notes or debentures . "(5) No State nonmember insured bank (except a District bank) shall establish and operate any new branch after thirty days after the effective date unles s it shall have the prior writ ten consen t of the Corporation, and no branch of any State nonmember insured bank shall be moved from one location to another after thirty days after the effective date without such consent . The factors to be consid- ered in granting or withholding the consent of the Corporation under this paragraph shall be those enumerated in subsection (g) of this section . "(6) The Corporation may require any insured bank to provide protection and indemnity against burglary, defalcation, and other similar insurable losses . Whenever any insured bank refuses to com ply with any such requirem ent the C orporati on may co ntract for such protection and indemnity and add the cost thereof to the as sessm ent o therw ise p ayabl e by such bank . "(7) Whenever any insured bank (except a national bank or a District bank), after written notice of the recommendations of the Corporation based on a report of examination of such bank by an examiner of the Corp oration, shall fail to comply with such recom- mendations within one hundred and twenty days after such notice, th e Cor porat ion s hall have the p ower, and is he reby autho rized , to pu blish only such part of s uch r eport of e xamin ation as r elate s to any recommendation not complied with : Provided, That notice of intention to make such publication shall be given to the bank at least ninety days before such publication is made . "(8) The board of directors shall by regulation prohibit the pay- ment of interest on demand deposits in insured nonmember banks and for such purpose it may define the term `demand deposits' ; but such exceptions from this prohibition shall be made as are now or may hereafter be prescri bed with respect to deposits payable on demand in member banks by section 19 of this Act, as amended, or by regula- tion of the Board of Governors of the Federal Reserve System . T h e board of directors s hall from time to time limit by regulation the rates of interest or dividends which may be paid by insured non- member banks on time and savings deposits, but such regulations shall be consistent with the contractual obligations of such banks to their depositors . For the purpose of fixing such rates of interest or dividends, the board of directors shall by regulation prescribe different rates for such payment on time and savings deposits having different maturities, or subject to different conditions respecting with- drawal or repayment, or subject to different conditions by reason of different locations, or according to the varying discount rates of member banks in the several Federal Reserve districts . The board of directors shall by regulation define what constitutes time and savings deposits in an insured nonmember bank . Such regul ation s shall prohibit any insured nonmember bank from paying any time deposit before its maturity except upon such conditions and in accordance with such rules and regulations as may be prescribed by the board of directors, and from waiving any requirement of notice before payment of any savings deposit except as to all savings deposits having the same requirement . For each violation of any provision of this paragraph or any lawful provision of such regula- tions relating to the payment of interest or dividends on deposits or to withdrawal of deposits, the offending bank shall be subject to a penalty or 1 not more than $100, recoverable by the Corporation for its use . i So in or igina l.