§51. Requisite of capital and surplus

After this section as amended takes effect no national banking association shall be organized with a less capital than $100,000, except that such associations with a capital of not less than $50,000 may be organized in any place the population of which does not exceed six thousand inhabitants. No such association shall be organized in a city the population of which exceeds fifty thousand persons with a capital of less than $200,000, except that in the outlying districts of such a city where the State laws permit the organization of State banks with a capital of $100,000 or less, national banking associations now organized or hereafter organized may, with the approval of the Comptroller of the Currency, have a capital of not less than $100,000. No such association shall hereafter be authorized to commence the business of banking until it shall have a paid-in surplus equal to 20 per centum of its capital: Provided, That the Comptroller of the Currency may waive this requirement as to a State bank converting into a national banking association, but each such State bank which is converted into a national banking association shall, before the declaration of a dividend on its shares of common stock, carry not less than one-half part of its net profits of the preceding half year to its surplus fund until it shall have a surplus equal to 20 per centum of its capital: Provided, That for the purposes of this section any amounts paid into a fund for the retirement of any preferred stock of any such converted State bank out of its net earnings for such half-year period shall be deemed to be an addition to its surplus fund if, upon the retirement of such preferred stock, the amount so paid into such retirement fund for such period may then properly be carried to surplus. In any such case the converted State bank shall be obligated to transfer to surplus the amount so paid into such retirement fund for such period on account of the preferred stock as such stock is retired.

(R.S. §5138; Mar. 14, 1900, ch. 41, §10, 31 Stat. 48 ; Feb. 25, 1927, ch. 191, §4, 44 Stat. 1227 ; June 16, 1933, ch. 89, §17(a), 48 Stat. 185 ; Aug. 23, 1935, ch. 614, title III, §309, 49 Stat. 709 .)

Codification

R.S. §5138 derived from act June 3, 1864, ch. 106, §7, 13 Stat. 101 , which was the National Bank Act. See section 38 of this title.

Amendments

1935-Act Aug. 23, 1935, added last two sentences.

1933-Act June 16, 1933, inserted in first sentence "After this section as amended takes effect," and omitted therefrom exception clause permitting organization of banks with a capital of not less than $25,000 in places of not more than 3,000 inhabitants.

1927-Act Feb. 25, 1927, added exception clause in second sentence.

Effective Date of 1933 Amendment

Words "After this section as amended takes effect" are from amendment of June 16, 1933, which took effect on June 16, 1933.

Exception as to Transfer of Functions

Functions vested by any provision of law in Comptroller of the Currency, referred to in this section, not included in transfer of functions to Secretary of the Treasury, see note set out under section 1 of this title.

Section Referred to in Other Sections

This section is referred to in section 1821 of this title.