CO129-555-6 Banking crisis 24-9-1935 - 18-10-1935 — Page 66

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territory in which such bank is located, under direction

of the Federal Reserve Board, by the Comptroller of the

Currency in his own name before the association shall be

declared dissolved. In cases of such noncompliance or

violation, other than the failure to become a member bank

under the provisions of this act, every director who

participated in or assented to the same shall be held

liable on his personal or individual capacity for all

damages which said bank, its shareholders, or any other

person shall have sustained in consequence of such

violation.

Section 11 (h) of the Federal Reserve Act says

that the Federal Reserve Board shall be authorised and

empowered:

To suspend, for the violation of any of the

provisions of this act, the operations of any Federal

reserve bank, to take possession thereof, administer

the same during the period of suspension and, when deemed

advisable, to liquidate or reorganise such bank.

The Banking Law of the State of New York provides as

follows:-

Section 29. Revocation of Authorisation Certificate or

License in Certain Cases.

If at any time the superintendent shall be

satisfied that any private banker, personal loan company,

personal loan broker or foreign corporation to which he

has issued an authorisation certificate or license, is

violating any of the provisions of this chapter, or is

conducting its business in an unauthorised or unsafe

manner, or is in an unsound or unsafe condition to

transact its business, or cannot with safety and

expediency continue business, the superintendent may,

over his official signature and seal of office, notify the

holder