charter

Examples of charter in the following topics:

• The United States Banking System

  • A bank chooses a charter from a state government or from the U.S. federal government.
  • A national bank receives a charter from the federal government, while a state bank receives a charter from a state government.
  • A state-chartered bank could have fewer regulations.
  • These institutions either have a charter from the federal government or a state government.
  • Most credit unions have charters from the National Credit Union Administration, which issues charters on the federal government's behalf.

• Answers to Chapter 2 Questions

  • A state bank has a charter from a state government, while a federal bank has a charter from the U.S. federal government.

• Formation of the Corporation

  • Historically, corporations were created by a charter granted by government .
  • The articles of incorporation (also called a charter, certificate of incorporation or letters patent) are filed with the appropriate state office, listing the purpose of the corporation, its principal place of business and the number and type of shares of stock.

• Employment in Finance

  • There are Masters degrees in Finance and Business as well as certifications such as the widely recognized Chartered Financial Analyst certification and accountancy qualifications such as the Certified Public Accountant.

• Voting Right

  • An annual general meeting is a meeting that official bodies and associations involving the general public (including companies with shareholders) are often required by law (or the constitution, charter, by-laws, etc., governing the body) to hold.

• The Federal Reserve System's Structure

  • Unique feature of a Federal Reserve Bank is each bank is a federally chartered corporation.
  • National commercial banks are banks whose charter comes from the U.S. government.

• Corporations

  • A charter is a legal document from government that creates the corporation.By law, the corporation becomes an independent legal entity with rights similar to a person.A state government approves corporate charters in the United States.For example, several corporations choose the State of Delaware because the state charges the lowest fees to incorporate.

• Characteristics of a Corporation

  • Early incorporated entities were established by charter (i.e. by an ad hoc act granted by a monarch or passed by a parliament or legislature).

• The Fed's Balance Sheet

  • The Federal Reserve is a public corporation and every U.S. commercial bank with a charter from the U.S. government must buy stock into its Federal Reserve district bank.