§304 Class A and class B directors; selection

Summary

The Board of Governors must split the district’s member banks into three numbered groups of banks with similar size. Each member bank can name one person for a class A director and one for a class B director. The Federal Reserve bank’s board chairman lists those nominees, shows who nominated them, and gives that list to every member bank within 15 days. Each member bank must authorize an officer to vote for the bank. If several member banks in the same district are owned by the same bank holding company, only one of those banks (chosen by the holding company) may take part in the nomination or election. Within 15 days after getting the list, the authorized officer must send back a ranked ballot (first choice, second choice, etc.) on a form from the chairman, marking one rank per candidate. A person who is an officer or director of a member bank can only be a class A director if nominated and elected by banks in the same group as that bank. If someone is an officer or director of more than one member bank, they can only be nominated by banks in the group of the bank with the largest total resources. A candidate with a majority of first-choice votes wins. If no one has a majority, add candidates’ second-choice votes to their first-choice totals; if still no majority, add third-choice votes, and so on. The result must be reported right away.