[Code of Federal Regulations]
[Title 12, Volume 2]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 12CFR209.2]

[Page 308-309]
 
                       TITLE 12--BANKS AND BANKING
 
                   CHAPTER II--FEDERAL RESERVE SYSTEM
 
PART 209--ISSUE AND CANCELLATION OF FEDERAL RESERVE BANK CAPITAL STOCK (REGULATION I)--Table of Contents
 
Sec. 209.2  Banks desiring to become member banks.

    (a) Application for stock or deposit. Each national bank in process 
of organization,\2\ each nonmember state bank converting into a national 
bank, and each nonmember state bank applying for membership in the 
Federal Reserve System under Regulation H, 12 CFR part 208, shall file 
with the Federal Reserve Bank (Reserve Bank) in whose district it is 
located an application for stock (or deposit in the case of mutual 
savings banks not authorized to purchase Reserve Bank stock \3\) in the 
Reserve Bank. The bank shall pay for the stock (or deposit) in 
accordance with Sec. 209.4 of this regulation.
---------------------------------------------------------------------------

    \2\ A new national bank organized by the Federal Deposit Insurance 
Corporation under Sec. 11(n) of the Federal Deposit Insurance Act (12 
U.S.C. 1821(n)) should not apply until in the process of issuing stock 
pursuant to Sec. 11(n)(15) of that act. Reserve Bank approval of such an 
application shall not be effective until the issuance of a certificate 
by the Comptroller of the Currency pursuant to Sec. 11(n)(16) of that 
act.
    \3\ A mutual savings bank not authorized to purchase Federal Reserve 
Bank stock may apply for membership evidenced initially by a deposit. 
(See Sec. 208.3(a) of Regulation H, 12 CFR part 208.) The membership of 
the savings bank shall be terminated if the laws under which it is 
organized are not amended to authorize such purchase at the first 
session of the legislature after its admission, or if it fails to 
purchase such stock within six months after such an amendment.
---------------------------------------------------------------------------

    (b) Issuance of stock; acceptance of deposit. Upon authorization to 
commence business by the Comptroller of the Currency in the case of a 
national bank in organization or upon approval of conversion by the 
Comptroller of the Currency in the case of a state nonmember bank 
converting to a national bank, or when all applicable requirements have 
been complied with in the case of a state bank approved for membership, 
the Reserve Bank shall issue the appropriate number of shares by 
crediting the bank with the appropriate number of shares on its books. 
In the case of a national or state member bank in organization, such 
issuance shall be as of the date the bank opens for business. In the 
case of a mutual savings bank not authorized to purchase Reserve Bank 
shares, the Reserve Bank shall accept the deposit in place of issuing 
shares. The bank's membership shall become effective on the date of such 
issuance or acceptance.
    (c) Location of bank. (1) General rule. For purposes of this part, a 
national bank or a state bank is located in the Federal Reserve District 
that contains the location specified in the bank's charter or organizing 
certificate, or, if no such location is specified, the location of its 
head office, unless otherwise

[[Page 309]]

determined by the Board under paragraph (c)(2) of this section.
    (2) Board determination. If the location of a bank as specified in 
paragraph (c)(1) of this section, in the judgment of the Board of 
Governors of the Federal Reserve System (Board), is ambiguous, would 
impede the ability of the Board or the Reserve Banks to perform their 
functions under the Federal Reserve Act, or would impede the ability of 
the bank to operate efficiently, the Board will determine the Federal 
Reserve District in which the bank is located, after consultation with 
the bank and the relevant Reserve Banks. The relevant Reserve Banks are 
the Reserve Bank whose District contains the location specified in 
paragraph (c)(1) of this section and the Reserve Bank in whose District 
the bank is proposed to be located. In making this determination, the 
Board will consider any applicable laws, the business needs of the bank, 
the location of the bank's head office, the locations where the bank 
performs its business, and the locations that would allow the bank, the 
Board, and the Reserve Banks to perform their functions efficiently and 
effectively.