12 USC § 329 - Capital stock required as condition precedent to membership

---
identifier: "/us/usc/t12/s329"
source: "usc"
legal_status: "official_prima_facie"
title: "12 USC § 329 - Capital stock required as condition precedent to membership"
title_number: 12
title_name: "BANKS AND BANKING"
section_number: "329"
section_name: "Capital stock required as condition precedent to membership"
chapter_number: 3
chapter_name: "FEDERAL RESERVE SYSTEM"
subchapter_number: "VIII"
subchapter_name: "STATE BANKS AS MEMBERS OF SYSTEM"
positive_law: false
currency: "119-84"
last_updated: "2026-04-17"
format_version: "1.1.0"
generator: "[email protected]"
source_credit: "(Dec. 23, 1913, ch. 6, § 9 (par.), 38 Stat. 259; June 21, 1917, ch. 32, § 3, 40 Stat. 234; Mar. 4, 1923, ch. 252, title IV, § 401, 42 Stat. 1478; June 16, 1933, ch. 89, § 17(b), 48 Stat. 185; July 15, 1952, ch. 753, § 1, 66 Stat. 633.)"
---


# § 329. Capital stock required as condition precedent to membership

*Provided*12 U.S.C. 1811

No applying bank shall be admitted to membership unless it possesses capital stock and surplus which, in the judgment of the Board of Governors of the Federal Reserve System, are adequate in relation to the character and condition of its assets and to its existing and prospective deposit liabilities and other corporate responsibilities: , That no bank engaged in the business of receiving deposits other than trust funds, which does not possess capital stock and surplus in an amount equal to that which would be required for the establishment of a national banking association in the place in which it is located, shall be admitted to membership unless it is, or has been, approved for deposit insurance under the Federal Deposit Insurance Act [ et seq.]. The capital stock of a State member bank shall not be reduced except with the prior consent of the Board.

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**Source Credit**: (Dec. 23, 1913, ch. 6, § 9 (par.), 38 Stat. 259; June 21, 1917, ch. 32, § 3, 40 Stat. 234; Mar. 4, 1923, ch. 252, title IV, § 401, 42 Stat. 1478; June 16, 1933, ch. 89, § 17(b), 48 Stat. 185; July 15, 1952, ch. 753, § 1, 66 Stat. 633.)

## Editorial Notes

### References in Text

The Federal Deposit Insurance Act, referred to in text, is , , which is classified generally to chapter 16 (§ 1811 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under  and Tables.

### Codification

Section is comprised of the eleventh par. of section 9 of act , as amended. The eleventh par. constituted the ninth par. of section 9 in 1917 (), became the tenth par. in 1927 (), and became the eleventh par. in 1950 (). For further details, see Codification note set out under .

### Amendments

1952—Act , vested in Board of Governors discretion with respect to admission of State banks to membership.

1933—Act , dropped alternative method of meeting the capital requirement and inserted proviso.