--- kind: "section" citation: "12 U.S.C. § 333" title: "12" title_heading: "Banks and Banking" number: "333" heading: "Mutual savings banks; application and admission to membership in Federal Reserve System" release: "119-102" url: "https://uscodex.org/usc/12/333" units: - "Chapter 3 — Federal Reserve System" - "Subchapter VIII — State Banks as Members of System" --- # §333. Mutual savings banks; application and admission to membership in Federal Reserve System Any mutual savings [bank](/usc/12/1426a.md?p=g-1) having no [capital stock](/usc/12/321.md) ([including](/usc/12/25b.md?p=a-3) any other banking institution the [capital](/usc/12/321.md) of which consists of weekly or other time [deposits](/usc/12/5301.md?p=18-A) which are segregated from all other [deposits](/usc/12/5301.md?p=18-A) and are regarded as [capital stock](/usc/12/321.md) for the purposes of taxation and the declaration of dividends), but having surplus and undivided profits not less than the amount of [capital](/usc/12/321.md) required for the organization of a [national bank](/usc/12/221.md) in the same place, may apply for and be admitted to membership in the Federal Reserve System in the same manner and subject to the same provisions of law as [State banks](/usc/12/1835a.md?p=e-1) and trust [companies](/usc/12/24a.md?p=g-1), except that any such savings [bank](/usc/12/1426a.md?p=g-1) shall subscribe for [capital stock](/usc/12/321.md) of the Federal [reserve bank](/usc/12/221.md) in an amount equal to six-tenths of 1 per centum of its total [deposit](/usc/12/5301.md?p=18-A) liabilities as shown by the most recent report of examination of such savings [bank](/usc/12/1426a.md?p=g-1) preceding its admission to membership. Thereafter such subscription shall be adjusted semiannually on the same percentage basis in accordance with rules and regulations prescribed by the [Board](/usc/12/221.md) of Governors of the Federal Reserve System. If any such mutual savings [bank](/usc/12/1426a.md?p=g-1) applying for membership is not permitted by the laws under which it was organized to purchase stock in a Federal [reserve bank](/usc/12/221.md), it shall, upon admission to the system, [deposit](/usc/12/5301.md?p=18-A) with the Federal [reserve bank](/usc/12/221.md) an amount equal to the amount which it would have been required to pay in on account of a subscription to [capital stock](/usc/12/321.md). Thereafter such [deposit](/usc/12/5301.md?p=18-A) shall be adjusted semiannually in the same manner as subscriptions for stock. Such [deposits](/usc/12/5301.md?p=18-A) shall be subject to the same conditions with respect to repayment as amounts paid upon subscriptions to [capital stock](/usc/12/321.md) by other [member banks](/usc/12/221.md) and the Federal [reserve bank](/usc/12/221.md) shall pay interest thereon at the same rate as dividends are actually paid on outstanding shares of stock of such Federal [reserve bank](/usc/12/221.md). If the laws under which any such savings [bank](/usc/12/1426a.md?p=g-1) was organized be amended so as to authorize mutual savings [banks](/usc/12/221a.md?p=a) to subscribe for Federal [reserve bank](/usc/12/221.md) stock, such savings [bank](/usc/12/1426a.md?p=g-1) shall thereupon subscribe for the appropriate amount of stock in the Federal [reserve bank](/usc/12/221.md), and the [deposit](/usc/12/5301.md?p=18-A) hereinbefore provided for in lieu of payment upon [capital stock](/usc/12/321.md) shall be applied upon such subscription. If the laws under which any such savings [bank](/usc/12/1426a.md?p=g-1) was organized be not amended at the next session of the legislature following the admission of such savings [bank](/usc/12/1426a.md?p=g-1) to membership so as to authorize mutual savings [banks](/usc/12/221a.md?p=a) to purchase Federal [reserve bank](/usc/12/221.md) stock, or if such laws be so amended and such [bank](/usc/12/1426a.md?p=g-1) fail within six months thereafter to purchase such stock, all of its rights and privileges as a [member bank](/usc/12/221.md) shall be forfeited and its membership in the Federal Reserve System shall be terminated in the manner prescribed in this subchapter with respect to [State member banks](/usc/12/5301.md?p=18-A) and trust [companies](/usc/12/24a.md?p=g-1). Each such mutual savings [bank](/usc/12/1426a.md?p=g-1) shall comply with all the provisions of law applicable to [State member banks](/usc/12/5301.md?p=18-A) and trust [companies](/usc/12/24a.md?p=g-1), with the regulations of the [Board](/usc/12/221.md) of Governors of the Federal Reserve System and with the conditions of membership prescribed for such savings [bank](/usc/12/1426a.md?p=g-1) at the time of admission to membership, except as otherwise hereinbefore provided with respect to [capital stock](/usc/12/321.md). ## Source credit (Dec. 23, 1913, ch. 6, § 9 (par.), as added June 16, 1933, ch. 89, § 5(c), 48 Stat. 164; amended Aug. 23, 1935, ch. 614, title II, § 203(a), 49 Stat. 704.) ## Notes ### Editorial Notes ### References in Text This subchapter, referred to in text, was in the original “this section”, meaning section 9 of act Dec. 23, 1913, which is classified generally to this subchapter (§ 321 et seq.). ### Codification Section is comprised of the sixteenth par. of section 9 of act Dec. 23, 1913, as amended. The sixteenth par. constituted the fourteenth par. of section 9 in 1933 (48 Stat. 164), became the fifteenth par. in 1935 (49 Stat. 704), and became the sixteenth par. in 1950 (64 Stat. 458). For further details, see Codification notes set out under sections 321 and 329a of this title. ### Statutory Notes and Related Subsidiaries ### Change of Name Section 203(a) of act Aug. 23, 1935, changed name of Federal Reserve Board to Board of Governors of the Federal Reserve System.