§78. Certain persons excluded from serving as officers, directors or employees of member banks

No officer, director, or employee of any corporation or unincorporated association, no partner or employee of any partnership, and no individual, primarily engaged in the issue, flotation, underwriting, public sale, or distribution, at wholesale or retail, or through syndicate participation, of stocks, bonds, or other similar securities, shall serve the same time as an officer, director, or employee of any member bank except in limited classes of cases in which the Board of Governors of the Federal Reserve System may allow such service by general regulations when in the judgment of the said Board it would not unduly influence the investment policies of such member bank or the advice it gives its customers regarding investments.

(June 16, 1933, ch. 89, §32, 48 Stat. 194 ; Aug. 23, 1935, ch. 614, §307, 49 Stat. 709 .)

Amendments

1935-Act Aug. 23, 1935, among other changes, substituted exception clause in place of provisions relating to issuance of permits in such cases and authorizing revocation of same where required in the public interest.

Effective Date of 1935 Amendment

Amendment by act Aug. 23, 1935, effective Jan. 1, 1936, see section 307 of act Aug. 23, 1935.