NATiuNAIrBANK A( mn UTS REUTING TO XiTIOKAL BAKKS 1903 9 7/ (Sinvmii Cam ^rl|oal Hibrarg ^'l»fM!?,".™?r.ll;.?,!;!'..?.?.,?.!!'ended :with o 3 1924 018 876 536 M "b Cornell University VM Library The original of tiiis book is in tine Cornell University Library. There are no known copyright restrictions in the United States on the use of the text. http://www.archive.org/details/cu31924018876536 THE NATIOML-BMK ACT AS AMENDED, WITH OTHER LAWS RELATING TO NATIONAL BANKS, FEOM THB REVISED STATUTES OF THE UNITED STATES. COMPILBD CnDEB THE DIlIECnON OF THK COMPTEOLLEE OF THE CUEEENCY. WASHINGTON: GOVERNMENT PRINTING OFFICE. 1903. OOlsTTEI^TS. Chap. Page. Currrency Bureau 1 3 Organization and powers of national banks 2 5 Bank circulation 3 12 Tax on circulation 4 19 Eegulation of the banking business 5 22 Extension of corporate existence 6 30 Liquidation and receivership 7 32 Crimes, jurisdiction, etc 8 40 Trust companies, etc.. District of Columbia 9 45 Government depositaries 10 53 Miscellaneous 11 55 Legal tender and lawful money 11 55 Act, April 28, 1902, relating to annual reports 64 Index to National Bank Act 65 Index to act for incorporation of trust companies, etc 87 Index to sections of Kevised Statutes 90 1 THE NATIONAL-BANK ACT, AS AMENDED, WITH OTHER LAWS RELATING TO NATIONAL BANKS. (Currency act, March 14, 1900, p. 59; index to sections of Revised Statutes, p. 90.) CHAPTER ONE. THE CURRENCY BUREAU. 1. The national-bank act. 2. Comptroller of the Currency. 3. His appointment, term, and salary. 4. His qualification. 5. Deputy Comptroller. 6. Interest in national banks prohibited. 7. Office clerks. 8. Seal of ofiSce. 9. Offices, vaults, etc. 10. Annual report. 11. When report is printed. 12. Number of copies to be printed. 1. The National-Bank Act. — Sec. 1 of the act of June 20, 1874, provides that the act entitled "An act to provide a national currency secured by a pledge of United States bonds, and to provide for the circulation and redemption thereof," approved June third, eighteen hundred and sixty-four, shall hereafter be known as the "National-Bank Act." 2. Comptroller of the Currency. (Sec. 324.) There shall be in the Department of the Treasury a Bureau charged with the execution of all laws passed by Congress relating to the issue and regulation of a national currency secured by United States bonds, the chief ofQcer of which Bureau shall be called the Comptroller of the Currency, and shall perform his duties under the general direction of the Secretary of the Treasury. 3. His Appointment, Term, and Salary. (Sec. 325.) The Comp- troller of the Currency shall be appointed by the President, on the recommendation of the Secretary of the Treasury, by and with the ad\'ice and consent of the Senate, and shall hold his office for the term of five years, unless sooner removed by the President, upon reasons to be communicated by him to the Senate; and he shall be entitled to a salary of five thousand dollars a year. 4. His Qualification. (Sec. 326.) The Comptroller of the Cur- rency shall, within fifteen days from the time of notice of his appoint- ment, take and subscribe the oath of office; and he shall give to the United States a bond in the penalty of one hundred thousand dollars, with not less than two responsible sureties, to be approved by the Sec- retary of the Treasury, conditioned for the faithflil discharge of the duties of his office. 5. Deputy Comptroller. (Sec. 327.) There shall be in the Bureau of the Comptroller of the Currency a Deputy Comptroller of the Cur- rency, to be appointed by the Secretary, who shall be entitled to a salary of two thousand eight hundred dollars a year, and who shall possess the power and perform the duties attached by law to the office of Comptroller during a vacancy in the office or during the absence or inability of the Comptroller. The Deputy Comptroller shall also take 4 NATIONAL-BANK AOT. the oath of office prescribed by the Constitution and laws of the United States, and shall give a like bond in the penalty of fifty thousand dollars. 6. Interest in National Banks Prohibited. (Sec. 329.) It shall not be lawful for the Comptroller or the Deputy Comptroller of the Currency, either directly or indirectly, to be interested in any asso- ciation issuing national currency under the laws of the United States. 7. Office Clerks. (Sec. 328.) The Comptroller of the Currency shall employ, from time to time, the necessary clerks, to be appointed and classified by the Secretary of the Treasury, to discharge such duties as the Comptroller shall direct. 8. Seal of Office. (Sec. 330.) The seal devised by the Comptroller of the Currency for his office, and approved by the Secretary of the Treasury, shall continue to be the seal of office of the Comptroller, and may be renewed when necessary, A description of the seal, with an impression thereof, and a certificate of approval of the Secretary of the Treasury, shall be filed in the office of the Secretary of State. 9. Offices, Vaults, etc. (Sec. 331.) There shall be assigned, from time to time, to the Comptroller of the Currency, by the Secretary of the Treasury, suitable rooms in the Treasury building for conducting the business of the Currency Bureau, containing safe and secure fire- proof vaults, in which the Comptroller shall deposit and safely keep all the plates not necessarily in the possession of engravers or printers, and other valuable things belonging to his department; and the Comp- troller shall from time to time furnish the necessary furniture, station- ery, fuel, lights, and other proper conveniences for the transaction of the business of his office. 10. Annual Eepoet. (Sec. 333.) The Comptroller of the Currency shall make an annual report to Congress, at the commencement of its session, exhibiting — First. Condition of national banks. — A summary of the state and con- dition of every association from which reports have been received the preceding year, at the several dates to which such reports refer, with an abstract of the whole amount of banking capital returned by them, of the whole amount of their debts and liabilities, the amount of circu- lating notes outstanding, and the total amount of means and resources, specifying the amount of lawful money held by them at the times of their several returns, and such other information in relation to such associations as in his judgment may be useful. Second. Closed hanlcs. — A statement of the associations whose busi- ness has been closed during the year, with the amount of their circula- tion redeemed and the amount outstanding. Third. Amendments proposed. — Any amendment to the laws relative to banking by which the system may be improved and the security of the holders of its notes and other creditors may be increased. Fourth. Condition of other banks. — A statement exhibiting under appropriate heads the resources and liabilities and condition of the banks, banking companies, and savings banks organized under the laws of the several States and Territories, such information to be obtained by the Comptroller from the reports made by such banks, banking com- panies, and savings banks to the legislatures or officers of the different States and Territories, and, where such reports can not be obtained, the deficiency to be supplied from such other authentic sources as may be available. Fifth. Employ6s and expenses. — The names and compensation of the clerks employed by him, and the whole amount of the expenses of the banking department during the year. NATIONAL-BANK AOT. O 11. When Annual Eepoet is Printed. (Seo. 3811 ) When the Annual Report of the Comptroller of the Currency upon the national banks and banks under State and Territorial laws is completed, or while it is in process of completion, if thereby the business may be sooner dispatched, the work of printing shall be commenced, under the superintendence of the Secretary, and the whole shall be printed and ready for delivery on or before the first day of December next after the close of the year to which the report relates. 12. Number of Copies to be Printed. — The act of January 12, 1895, provides that there shall be printed of the Annual Report of the Comptroller of the Currency ten thousand copies ; one thousand for the Senate, two thousand for the House, and seven thousand for distribu- tion by the Comptroller of the Currency. CHAPTER TWO. organization and powers of national banks. 13. Articles of aBSOciation. 14. Organization certificate. 15. Execution of organization certificate. 16. Corporate powers. 17. Amount of capital stock required. 18. Shares of stocK. 19. Payment of capital stock. 20. Enforcing payment of capital. 21. Restoration of capital. 22. Examination of organization proceed- ings. 23. Certificate of officers and directors. 24. Deposit of United States bonds. 25. Comptroller's certificate of authority. 26. Publication of certificate of authority. 27. Number and election of directors. 28. Qualifications of directors. 29. Qualifications of directors in Okla- homa. 30. Qualifications of voters at elections. 31. Oaths of directors. 32. Failure to hold annual election. 33. Vacancies in board of directors. 34. President shall be a director. 35. Organization of gold banks. 36. CouTersion of gold banks. 37. Conversion of State banks. 38. Capital of State banks. 39. Converted banks may retain branches. 40. Personal liability of shareholders. 41. Exception for trustees, etc. 42. Amendment of articles restricted. 43. Increase of capital stock. 44. When increase becomes valid. 45. Reduction of capital stock. 46. Change of title and location. 47. Status of national banks organized under the act of February 25, 1863. 13. Articles of Association. (Sec 5133.) Associations for car- rying on the business of banking under this Title may be formed by any number of natural persons, not less in any case than five. They shall enter into articles of association, which shall specify in general terms the object for which the association is formed, and may contain any other provisions, not inconsistent with law, which the association may see fit to adopt for the regulation of its business and the conduct of its affairs. These articles shall be signed by the persons uniting to form the association, and a copy of them shall be forwarded to the Comp- troller of the Currency, to be filed and preserved in his oflflce. 14. Organization Certificate. (Sec. 6134.) The persons uniting to Ibrm such an association shall, under their hands, make an organi- zation certificate, which shall specifically state — First. Title. — The name assumed by such association; which name shall be subject to the approval of the Comptroller of the Currency. Second. Location. — The place where its operations of discount and d eposit are to be carried on, designating the State, Territory, or Dis- trict, and the particular county and city, town, or village. Third. Capital stock. — The amount of capital stock and the number of shares into which the same is to be divided. '' b NATIONAL-BANK ACT. Fourth. ShareJiolders. — The names and places of residence of the shareholders and the number of shares held by each of them. Fifth. Object of certificate. — The fact that the certificate is made to enable such persons to avail themselves of the advantages of this Title. 15. Execution op Organization Certificate. (Sec. 5135.) The organization certificate shall be acknowledged before a judge of some court of record or notary public, and shall be, together with the acknowledgment thereof, authenticated by the seal of such court or notary, transmitted to the Comptroller of the Currency, who shall record and carefully preserve the same in his ofQce. 16. CoRPOEATB Powers. (Sec. 6136.) Upon duly maidng and filing articles of association and an organization certificate, the association shall become, as from the date of the execution of its organization cer- tificate, a body corporate, and as such, and in the name designated in the organization certificate, it shall have power — First. Seal, — To adopt and use a corporate seal. Second. Term of existence. — To have succession for the period of twenty years from its organization, unless it is sooner dissolved accord- ing to the provisions of its articles of associatiou, or by the act of its shareholders owning two-thirds of its stock, or unless its franchise becomes forfeited by some violation of law. Third. Contracts. — To make contracts. Fourth. Suits. — To sue and be sued, complain and defend, in any court of law and [or] equity, as fully as natural persons. Fifth. Officers. — To elect or appoint directors, and by its board of directors to appoint a president, vice-president, cashier, and other ofB- cers, define their duties, require bonds of them and fix the penalty thereof, dismiss such offlcers or any of them at pleasure, and appoint others to fill their places. Sixth. By-laws. — To prescribe, by its board of directors, by-laws not inconsistent with law, regulating the manner in which its stock shall be transferred, its directors elected or appointed, its officers appointed, its property transferred, its general business conducted, and the privi- leges granted to it by law exercised and enjoyed. Seventh. Incidental powers. — To exercise by its board of dii;ectors, or duly authorized oflBcers oc agents, subject to law, all such incidental powers as shall be necessary to carry on the business of banking; by discounting and negotiating promissory notes, drafts, bills of exchange, and other evidences of debt; by receiving deposits; by buying and sell- ing exchange, coin, and bullion; by loaning money on personal secu- rity; and by obtaining, issuing, and circulating notes according to the provisions of this Title; but no association shall transact any business except such as is incidental and necessarily preliminary to its organiza- tion until it has been authorized by the Comptroller of the Currency to commence the business of banking. 17. Amount of Capital Stock Kbquired. (Sec. 5138, as amended by act of March 14, 1900.) No associatiou shall be organized with a less capital than one hundred thousand dollars, except that banks with a capital of not less than fifty thousand dollars may, with the approval of the Secretary of the Treasury, be organized in anyplace the popula tion of which does not exceed six thousand inhabitants, and except that banks with a capital of not less than twenty-five thousand dollars may, with the sanction of the Secretary of the Treasury, be organized in any place the population of which does not exceed three thousand inhab- itants. No association shall be organized in a city the population of which exceeds fifty thousand persons with a capital of less than two hundred thousand dollars. NATIONAL-BANK ACT. < 18. Shares of Stock. (Sec. 5139.) The capital stock, of each asso- ciation shall be divided into shares of one hundred dollars each, and be deemed personal property, and transferable on the books of the association in such manner as may be prescribed in the by-laws or articles of association. Every person becoming a shareholder by such transfer shall, in proportion to his shares, succeed to all the rights and liabilities of the prior holder of such shares. 19. Payment of Capital Stock. (Sec. 5140.) At least, iifty per centum of the capital stock of every association shall be paid in before it shall be authorized to commence business ; and the remainder of the capital stock of such association shall be paid in installments of at least ten per centum each, on the whole amount of the capital, as frequently as one installment at the end of each succeeding mouth from the time it shall be authorized by the Comptroller of the Currency to commence business; and the payment of each installment shall be certified to the Comptroller, under oath, by the president or cashier of the association. 20. Enfoecing- Payment of Capital. (Sec. 5141.) Whenever any shareholder, or his assignee, fails to pay any installment on the stock when the same is required by the preceding section to be paid, the directors of such association may sell the stock of such delinquent share- holder at public auction, having given three weeks' previous notice thereof in a newspaper published and of general circulation in the city or county where the association is located, or if no newspaper is pub- lished in said city or county, then in a newspaper published nearest thereto, to any person who will pay the highest price therefor, to be not less than the amount then due thereon, with the expenses of advertise- ment and sale; and the excess, if any, shall be paid to the delinquent shareholder. If no bidder can be found who will pay for such stock the amount due thereon to the association, and the cost of advertisement and sale, the amount previously paid shall be forfeited to the associa tion, and such stock shall be sold as the directors may order, within six months from the time of such forfeiture, and if not sold it shall be canceled and deducted from the capital stock of the association. 21. Eestoration of Capital. (Sec. 5141.) If any such cancellation and reduction shall reduce the capital of the association below the mini- mum of capital required by law, the capital stock shall, within thirty days from the date of such cancellation, be increased to the required amount; in default of which a receiver may be appointed, according to the provisions of section fifty-two hundred and thirty-four, to close up the business of the association. 22. Examination of Organization Proceedings. (Sec. 5168.) Whenever a certificate is transmitted to the Comptroller of the Cur- rency, as provided in this Title, and the association transmitting the same notifies the Comptroller that at least fifty per centum of its ca])i- tal stock has been duly paid in, and that such association has complied with all the provisions of this Title required to be complied with before an association shall be authorized to commence the business of bank- ing, the Comptroller shall examine into the condition of such associa- tion, ascertain especially the amount of money paid in on accoujit of its capital, the name and place of residence of each of its directors, and the amount of the capital stock of which each is the owner in good faith, and generally whether such association has complied with all the i)rQ- visions of this Title required to entitle it to engage in the business of banking. 23. Certificate of Officers and Directors. (Sec. 5168.) And shall cause to be made and attested by the oaths of a majority of the directors, and by the president or cashier of the association, a state- ment of all the facts necessary to enable the Comptroller to determine 8 KATIONAL-BANK ACT. whpther the. association is lawfully entitled to commence the business of banking. 24. Deposit op United States Bonds. (Sec. 5159.) Every asso- ciation, after having complied with the provisions of this Title, prelim- inary to the commencement of the banking business, and before it shall be authorized to commence banking business under this Title, shall transfer and deliver to the Treasurer of the United States, as security for its circulating notes, any United States registered bonds bearinr. interest, to an amount where the capital is one hundred and fifty thou- sand dollars or less, of not less than one-fourth of the capital, and fifty thousand dollars where the capital is in excess of one hundred and fifty thousand dollars. (Note. — As amended by sec. 8 of the act of July 12, 1882.) 25. Comptroller's Certificate of Authority. (Sec- 5169.) If, upon a careful examination of the facts so reported, and of any other facts which may come to the knowledge of the Comptroller, whether by means of a special commission appointed by him for the purpose of inquiring into the condition of such association, or other- wise, it appears that such association is lawfully entitled to commence the business of banking, the Comptroller shall give to such association a certificate, under his hand and official seal, that such association has complied with all the provisions required to be complied with before commencing the business of banking, and that such association is authorized to commence such business. But the Comptroller may withhold from an association his certificate authorizing the commence- ment of business whenever he has reason to suppose that the share- holders have formed the same for any other than the legitimate objects contemplated by this title. 26. Publication op Certificate op Authority. (Sec. 5170.) The association shall cause the certificate issued under the preceding section to be published in some newspaper printed in the city or county where the association is located, for at least sixty days next after the issuing thereof; or, if no newspaper is published in such city or county, then in the newspaper published nearest thereto. 27. NuMBBRAND Election OP Directors. (Sec, 5145.) The affairs of each association shall be managed by not less than five directors, who shall be elected by the shareholders at a meeting to be held at any time before the association is authorized by the Comptroller of the Cur- rency to commence the business of banking, and afterward at meetings to be held on such day in January of each year as is specified therefor in the articles of association. The directors shall hold oflce for one year, and until their successors are elected and have qualified; 28. Qualifications of Directors. (Sec. 5146.) Every director must, during his whole term of service, be a citizen of the United States, and at 'least three-fourths of the directors must have resided in the State, Territory, or District in which the association is located for at least one year immediately preceding their election, and must be residents therein during their continuance in ofiBce. Every director mus]t own, in his own right, at least ten shares of the capital stock of the association of which he is a director. Any director who ceases to be the owner of ten shares of the stock, or who becomes in any other manner disqualified, shall thereby vacate his place. 29. Qualifications of Directors in Oklahoma. — Sec, 17 of the act of May 2, 1890, provides " that the provisions of Title sixty-two of the Eevised Statutes of the United States relating to national banks, and all amendments thereto, shall have the same force and effect in the Territory of Oklahoma as elsewhere in the United States: NATIONAIi-BANK ACT. 9 <' Provided, That persons otherwise qualified to act as directors shall not be required to have resided in. said Territory for more than three months immediately preceding their election as such," 30. Qualifications of Voters at Elections. (Sec. 6144.) In all elections of directors, and in deciding all questions at meetings of shareholders, each shareholder shall be entitled to one vote on each share of stock held by him. Shareholders may vote by proxies duly authorized in -writing ; but no of&cer, clerk, teller, or bookkeeper of such association shall act as proxy; and no shareholder whose liability is past due and unp'aid shall be allowed to vote. 31. Oaths of Dikectoes. (Sec. 5147.) Each director, when ap- pointed or elected, shall take an oath that he will, so far as the duty devolves on him, diligently and honestly administer the affairs of such association, and will not knowingly violate, or willingly permit to be violated, any of the provisions of this Title, and that he is the owner in good faith, and in his own right, of the number of shares of stock required by this Title, subscribed by him, or standing in his name on the books of the association, and that the same is not hypothecated or in any way pledged as security for any loan or debt. Such oath, sub- scribed by the director making it, and certified by the officer before whom it is taken, shall be immediately transmitted to the Comptroller of the Currency, and shall be filed and preserved in his oflBce. 32. Pailuee to Hold Annual Election. (Sec. 5149.) If, from any cause, an election of directors is not made at the time appointed, the association shall not for that cause be dissolved, but an election may be held on any subsequent day, thirty days' notice thereof in all cases having been given in a newspaper published in the city, town, or county in which the association is located; and if no newspaper is published in such city, town, or county such notice shall be published ih a newspaper published nearest thereto. If the articles of associa- tion do not fix tlie day on which the election shall be held, or if no elec- tion is held on the day fixed, the day for the election shall be designated by the board of directors in their by-laws, or otherwise ; or if the direct- ors fail to fix the day, shareholders representing two-thirds of the shares may do so. 33. Vacancies in Board of Directors. (Sec. 5148.) Any vacancy in the board shall be filled by appointment by the remaining directors, and any director so appointed shall hold his place until the next election. 34. President shall be a Director. (Sec. 6150.) One of the directors, to be chosen by the board, shall be the president of the board. 35. Organization of Gold Banks. (Sec. 5185.) Associations may be organized in the manner prescribed by this Title for the purpose of issuing notes payable in gold. 36. Conversion of Gold Banks.-— The act of February 14, 1880, provides that any national gold bank organized under the provisions of the laws of the United States may, in the manner and subject to the provisions prescribed by section fifty-one hundred and fifty-four of the Eevised Statutes of the United States, for the conversion of banks incorporated under the laws of any State, cease to be a gold bank and become such an association as is authorized by section fifty-one hundred and thirty-three, for carrying on the business of banking, and shall have the same powers and privileges, and shall be subject to the same duties, responsibilities, and rules, in all respects, as are by law prescribed for such associations : Provided, That all certificates of organization which shall be issued under this act shall bear the date of the original organ- ization of each bank respectively as a gold bank. 10 NATIONAL-BANK ACT. 37. CoNVEKSiON OF STATE BANKS. (Seo. 5154.) Any bank incor- porated by special law, or any banking institution organized under a general law of any State, may become a national association under this Title by the name prescribed in its organization certificate ; and in such case the articles of association and the organization certificate may be executed by a majority of the directors of the bank or banking institu- tion; and the certificate shall declare that the owners of two-thirds of the capital stock have authorized the directors to make such certificate, and to change and convert the bank or banking institution into a national association. A majority of the directors, after executing the articles of association and organization certificate, shall have power to execute all other papers, and to do whatever may be required to make its organ ization perfect and complete as a national association. The shares of any such bank may continue to be for the same amount each as they were before the conversion, and the directors may continue to be the directors of the association until others are elected or appointed in accordance with the provisions of this chapter; and any State bank which is a stockholder in any other bank, by authority of State laws, may continue to hold its stock, although either bank, or both, may be organized under and have accepted the provisions of this Title. When the Comptroller of the Currency has given to such association a certifi- cate, under his hand and ofScial seal, that the provisions of this Title have been complied with, and that it is authorized to commence the business of banking, the association shall have the same powers and privileges, and shall be subject to the same duties, responsibilities, and rules, in all respects, as are prescribed for other associations, originally organized as national banking associations, and shall be held and regarded as such an association. But no such association shall have a less capital than the amount prescribed for associations organized under this Title. 38. Capital of State Banks. (Sec. 3410.) The capital of any State bank or banking association which has ceased or shall cease to exist, or which, has been or shall be converted into a national bank, shall be assumed to be the capital as it existed immediately before such bank ceased to exist or was converted as aforesaid. 39. Converted Banks May Eetain Bkanches. (Sec. 5155.) It shall be lawful for any bank or banking association, organized under State laws and having branches, the capital being joint and assigned to and used by the mother bank and branches in definite proportions, to become a national banking association in conformity with existing laws and to retain and keep in operation its branches, or such one or more of them as it may elect to retain, the amount of the circulation redeem- able at the mother bank and each branch to be regulated by the amount of capital assigned to and used by each. 40. Personal Liability of Shaeeholdeks. (Sec. 5151.) The shareholders of every national banking association shall be held indi- vidually responsible, equally and ratably, and not one for another, for all contracts, debts, and engagements of such association to the extent of the amount of their stock therein, at the par value thereof, in addi- tion to the amount invested in such shares, except that shareholders of any banking association now existing under State laws having not less than five millions of dollars of capital actually paid in and a sur- plus of twenty per centum on hand, both to be determined by the Comptroller of the Currency, shall be liable only to the amount invested in their shares; and such surplus of twenty per centum shall be kept undiminished, and be in addition to the surplus provided for in this Title; and if at any time there is a deficiency in such surplus of twenty per centum such association shall not pay any dividends to its share- NATIONAL-BANK ACT. 11 holders until the deficiency is made good; and in case of such defici- ency the Comptroller of the Currency may compel the association to close its business and wind up its affairs under the provisions of chapter four of this Title. 41. Exception fok Trustees, etc. (Sec. 5152.) Persons hold- ing stock as executors, administrators, guardians, or trustees shall not be personally subject to any liabilities as stockholders; but the estates and funds in their hands shall be liable in like manner and to the same extent as the testator, intestate, ward, or person interested in such trust funds would be if living and competent to act and hold the stock in his own name. 42. Amendment of Articles Eestricted. — Sec. 5139 provides that no change shall be made in the articles of association of a national bank by which the rights, remedies, or security of the existing creditors of the association shall be impaired. 43. Increase of Capital Stock. (Sec. 5142.) Any association formed under this Title may, by its articles of association, provide for an increase of its capital from time to time, as may be deemed expedi- ent, subject to the limitations of this Title. But the maximum of such increase to be provided in the articles of association shall be deter- mined by the Comptroller of the Currency. Sec. 1 of the act of May 1, 1886, provides that any national banking association may, with the approval of the Comptroller of the Currency, by the vote of share- holders owning two-thirds of the stock of such association, increase its capital stock, in accordance with existing laws, to any sum approved by the said Comptroller, notwithstanding the limit fixed in its original articles of association and determined by said Comptroller; and no increase of the capital stock of any national banking association either within or beyond the limit fixed in its original articles of association shall be made except in the manner herein provided. 44. When Increase Becomes Valid. (Sec. 5142.) And no increase of capital shall be valid until the whole amount of such increase is paid in, and notice thereof has been transmitted to the Comptroller of the Currency, and his certificate obtained specifying the amount of such increase of capital stock, with his approval thereof, and that it has been duly paid in as part of the capital of such association. 45. Ebduction of Capital Stock. (Sec. 5143.) Any association formed under this Title may, by the vote of shareholders owning two- thirds of its capital stock, reduce its capital to any sum not below the amount required by this Title to authorize the formation of associations, but no such reduction shall be allowable which will reduce the capital of the association below the amount required for its outstanding circu- lation, nor shall any such reduction be made until the amount of the proposed reduction has been reported to the Comptroller of the Cur- rency and his approval thereof obtained. 46. Change of Title and Location.— Sees. 2, 3, and 4 of the act of May 1, 1886, provide: Sec. 2. That any national banking association may change its name or the place where its operations of discount and deposit are to be car- ried on to any other place within the same State, not more than thirty miles distant, with the approval of the Comptroller of the Currency, by the vote of shareholders owning two-thirds of the stock of such association. A duly authenticated notice of the vote and of the new name or location selected shall be sent to the office of the Comptroller of the Currency, but no change of name or location shall be valid until the Comptroller shall have issued his certificate of approval of the same. Sec. 3. That all debts, liabilities, rights, provisions, and powers of 12 NATIONAL-BANK ACT. the association under its old name shall devolve upon and inure to the association under its new name. Sec. 4. That nothing in this act contained shall be so construed as in any manner to release any national banking association under its old name or at its old location from any liability, or affect any action or proceeding in law in which said association may be or become a party or interested. 47. Status op National Banks Organized under the Act op February 25, 1863. (Sec. 5156.) That nothing in this Title sball affect any appointments made, acts done, or proceedings had or commenced prior to the third day of June, eighteen hundred and sixty-four, in or toward the organization of any national banking association under the act of February twenty- five, eighteen hundred and sixty -three; but all associations which on the third day of June, eighteen hundred and sixty-four, were organized or commenced to be organized under that act shall enjoy all the rights and privileges granted, and be subject to all the duties, liabilities, and restrictions imposed by this Title, notwith- standing all the steps prescribed by this Title for the organization of associations were not pursued, if such associations were duly organized under that act. OHAPTEE THREE. BANK CIRCULATION. 48. 49. 50. 51. 52. 53. .54. 55. 56. 57. 58. 59. 60. 61. 62. 63. 64. United States bonds defined. Security for circulation. Relation of bond deposit to capital. Exchange of bonds. Bonds held by Treasurer. Record of bond transfers. Notice of transfer. Examination of bonds and records. Annual examination of bonds. General provisions respecting bonds. Amount of circulation obtainable. Preparation of bauk circulation. Circulation shall bear charter number. Control of plates and dies. Examination of plates and dies. Circulation, for what receivable. Circulation of gold I>anks. 65. 66. 67. Worn-out or mutilated circulation. Provisions Jor redeeming circulation. Withdrawing circulation. General provisions for withdrawing circulation. Circulation of extended banks. Circulation of liquidating banks. Circulation of closed banks. Regulations for redemption records. Redeemed notes to be canceled. Redemption in United States notes. Disposition of redemption account. Redemption of incomplete circula- tion. Banks take circulation at par. Issue of other notes prohibited. Fraudulent notes to be marked. 48. United States Bonds Bepined. (Sec. 5158.) Theterm" United States bonds," as used throughout this chapter, shall be construed to mean registered bonds of the United States. 49, (Sec. 5159 as amended by section 8, act of July 12, 1882.) Every association, after having complied with the provisions of this Title, preliminary to the commencement of the banking business, and before it shall be authorized to commence banking business under this Title, shall transfer and deliver to the Treasurer of the United States any United States registered bonds, bearing interest, to an amount not less than one-fourth of the capital, the capital being $150,000 or less, as security for their circulating notes. Such bonds shall be received by the Treasurer upon deposit and shall be by him safely kept in his office until they shall be otherwise disposed of in pursuance of the provisions of this Title. Section 4, act of June 20, 1874, provides in part that the amount of bonds on deposit for circulation shall not be reduced below $50,000. This determines the amount of bonds required to be deposited by banks organizing with capital stock of over $150,000. (See sec. 5159 of the United States Ke vised Statutes; sec. 4, act of June 20, 1874; sec. 8, act of July 12, 1882, and act of March 14, 1900, as to relation of bond deposit to capital.) NATIONAL-BANK ACT. 13 50. Relation of Bond Deposit to Capital. (Sec. 6160.) The deposit of bonds made by each association shall be increased as its cap- ital may be paid up or increased, so that every association shall at all times have on deposit with the Treasurer registered United Sta.tes bonds to the amount required by law. And any associiition that may desire to reduce its capital or close up its business and dissolve its organization may take up its bonds upon returning to the Comptroller its circulating notes in the proportion hereinafter required, or may take up any excess of bonds beyond the amount required by law, and upon which no cir- culating notes have been delivered. 51. Exchange of Bonds. (Sec. 5161.) To facilitate a compliance with the two preceding sections, the Secretary of the Treasury is author- ized to receive from any association, and cancel, any United States cou- pon bonds, and to issue in lieu thereof registered bonds of like amount, bearing a like rate of interest, and having the same time to run. 52. Bonds Held BY Treasurer. (Skc.5162.) All transfers of United States bonds made by any associatioTi under the provisions of this title shall be made to the Treasurer of the United States in trust for the asso- ciation, with a memorandum written or printed on each bond, and signed by the cashier, or some other ofiBcer of the association making the deposit. A receipt shall be given to the association, by the Comptroller of the Currency, or by a clerk appointed by him for that purpose, stating that the bond is held in trust for the association on whose behalf the transfer is made, and as security for the redemption and payment of any circulat- ing notes that have been or may be delivered to such association. ISo assignment or transfer of any such bond by the Treasurer shall be deemed valid unless countersigned by the Comptroller of the Currency. 53. Record of Bond Transfers. (Sec. 51C3.) The Comptroller of the Currency shall keep in his office a book in which he shall cause to be entered, immediately upon countersigning it, every transfer or assignment by the Treasurer, of any bonds belonging to a national banking association, presented for his signature. He shall state in such entry the name of the association from whose account the transfer is made, the name of the party to whom it is made, and the par value of the bonds transferred. 54. Notice of Transfer. (Sec. 5164.) The Comptroller of the Cur- rency shall, immediately upon countersigning and entering any trans-, fer or assignment by the Treasurer of any bonds belonging to a national banking association, advise by mail the association from whose accounts the transfer is made of the kind and numerical designation of the bonds and the amount thereof so transferred. 55. Examination OF Bonds AND Records. (Sec. 5165.) The Comp- troller of the Currency shall have at all times, during office hours, access to the books of the Treasurer of the United States for the purpose of ascertaining the correctness of any transfer or assignment of the bonds deposited by an association, presented to the Comptroller to counter- sign; and the Treasurer shall have the like access to the book mentioned in section fifty-one hundred and sixty-three, during ofSce hours, to ascer- tain the correctness of the entries in the same; and the Comptroller shall also at all times have access to the bonds on deposit with the Treasurer to ascertain their amount and condition. 50. Annual Examination of Bonds. (Sec. 5166.) Every associa- tion having bonds deposited in the office of the Treasurer of the United States shall, once or oftener in each fiscal year, examine and compare the bonds pledged by the association with the books of the Comptroller of the Currency and with the accounts of the association, and, if they are found correct, to execute to the Treasurer a certificate setting forth the different kinds and the amounts thereof, and that the same are in 14 NATIONAL-BANK ACT. the possession and custody of the Treasurer at the date of the certificate. Such examination shall be made at such time or times during the ordi- nary business hours as the Treasurer and the Comptroller, respectively, may select, and may be made by an officer or agent of such association, duly appointed in writing for that purpose; and his certificate before mentioned shall be of like force and validity as if executed hf the pres- ident or cashier. A dupUcate of such certificate, signed by the Treas- urer, shall be retained by the association. 57. Gbnbeal Provisions Eespbcting Bonds. (Sec. 5167.) The bonds transferred to and deposited with the Treasurer of the United States by any association for the security of its circulating notes shall be held exclusively for that purpose until such notes are redeemed, except as provided in this Title. The Comptroller of the Currency shall give to any snch association powers of attorney to receive and appro- priate to its own use the interest on the bonds which it has so trans- ferred to the Treasurer; but such powers shall become inoperative whenever such association fails to redeem its circulating notes. When- ever the market or cash value of any bonds thus deposited with the Treasurer is reduced below the amount of the circulation issued for the same the Comptroller may demand and receive the amount of such depreciation in other United States bonds at cash value, or in money, from the association, to be deposited with the Treasurer as long as such depreciation continues. And the Comptroller, upon the teims pre- scribed by the Secretary of the Treasury, may permit an exchange to be made of any of the bonds deposited with the Treasurer by any asso- ciation for other bonds of the United States authorized to be received as security for circulating notes if he is of opinion that such an exchange can be made without prejudice to the United States; and he may direct the return of any bonds to the af^sociation which transferred the same, in sums of not less than one thousand dollars, upon the sur- render to him and the cancellation of a proportionate amount of such circulating notes: Provided, That the remaining bonds which shall have been transferred by the association ofi'ering to sun-ender circulat- ing notes are equal to the amount required for the circulating notes not surrendered by such association, and that the amount of bonds in the hands of the Treasurer is not diminished below the amount required to be kept on deposit with him, and that there has been no failure by the association to redeem its circulating notes, nor any other violation by it of the provisions of this Title, and that the market or cash value of the remaining bonds is not below the amount required for the circula- tion issued for the same. 58, Amount of Cieculation Obtainable. — Sec. 10 of the act of July 12, 1882, as amended by act of March 14, 1900, provides that upon the deposit with the Treasurer of the United States, by any national banking association, of any bonds of the United States in the manner provided by existing law, such association shall be entitled to receive from the Comptroller of the Currency circulating notes in blank, registered and countersigned as provided by law, equal in amount to the par value of the bonds so deposited; and any national banking association now having bonds on deposit for the security of circulating notes, and upon which an amount of circulating notes has been issued less than the par value of the bonds, shall be entitled, upon due apiili- cation to the Comptroller of the Currency, to receive additional circu- lating notes in blank to an amount which will increase the circulating notes held by such association to the par value of the bonds deposited such additional notes to be held and treated in the same way as circu- lating notes of national banking associations heretofore issued and subject to all the jirovisions of law afi'ecting such notes : Provided, 'That NATIONAL-BANK ACT. 15 the circulating notes furnished to national banking associations under the provisions of this act shall be of the denominations prescribed by law, except that no national banking association shall, after the passage of this act, be entitled to receive from the Comptroller of the Currency, or to issue or reissue or place in circulation, more than one- third in amount of its circulating notes of the denomination of five dollars : And provided further, That the total amount of such notes issued to any such association may equal at any time but shall not exceed the amount at such time of its capital stock actually paid in. 69. Peepakation of Bank Oikculation. (Seo. 5172.) In order to furnish suitable notes for circulation, the Comptroller of the Currency shall, under the direction of the Secretary of the Treasury, cause plates and dies to be engraved, ii; the best manner to guard against counter- feiting and fraudulent alterations, and shall have printed therefrom, and numbered, such quantity of circulating notes, in blank, of the denominations of five dollars, ten dollars, twenty dollars, fifty dollars, one hundred dollars, five hundred dollars, and one thousand dollars, as may bo required to supply the associations entitled to receive the same, as amended by act of March 14, 1900. Such notes shall express upon their face that they are secured by United States bonds, deposited with the Treasurer of the United States, by the written or engraved signatures of the Treasurer and Register, and by the imprint of the seal of the Treasury; and shall also express upon their face the promise of the association receiving the same to pay on demand, attested by the signatures of the president or vice-president and cashier; and shall bear such devices and such other statements, and shall be in such form, as the Secretary of the Treasury shall, by regulation, direct. 60. Circulation Shall Beae Chaetee Numbee. — Sec, 5 of the act of June 20, 1874, provides that the Comptroller of the Currency shall, under such rules and regulations as the Secretary of the Treasury may prescribe, cause the charter numbers of the associations to be printed upon all national-bank notes which may be hereafter issued by him. 61. CoNTEOL OP Plates and Dies. (Seo. 5173.) The plates and special dies to be procured by the Comptroller of the Currency for the printing of such circulating notes shall remain under his control and direction and the expenses necessarily incurred in executing the laws respecting the procuring of such notes and all other expenses of the Bureau of the Currency [except as provided by sec. 3, act June 20, 1874, and sees. 6 and 8, act July 12, 1882] shall be paid out of the proceeds of the taxes or duties assessed and collected on the circulation of national banking associations under this title. 62. Examination op Plates anb Dies. (Seo. 5174.) The Comp- troller of the Currency shall cause to be examined, each year, the plates, dies, but pieces [bed pieces], and other material from which the national- bank circulation is printed, in whole or in part, and file in his offlce annu- ally a correct list of the same. Such material as shall have been used in the printing of the notes of associations which are in liquidation, or have closed business, shall be destroyed, under such regulations as shall be prescribed by the Comptroller of the Currency and approved by the Secretary of the Treasury. The expenses of any such examination or destruction shall be paid out of any appropriation made by Congress for the special examination of national banks and bank-note plates. 63. CiECULATiON, POE WHAT Eeoeivable. (Sec. 5182.) After any association receiving circulating notes under this Title has caused its promise to pay such notes on demand to be signed by the president or vice president and cashier thereof, in such manner as to make them obligatory promisory notes, payable on demand at its place of busi- 21893—03 — -2 16 NATIONAL-BANK ACT. ness, such association may issue and circulate the same as money. And the same shall be received at par in all parts of the United States in payment of taxes, excises, public lands, and all other dues to the United States, except duties on imports; and also for all salaries and other debts and demands owing by the United States to individuals, corporations, and associations within the United States, except interest on the public debt, and in redemption of the national currency. 64. CiEOULATiON OF GoLD BANKS. (Sec. 5185.) Associations may be organized in the manner prescribed by this Title for the purpose of issuing notes payable in gold; and upon the deposit of any United States bonds bearing interest payable in gold with the Treasurer of the United States, in the manner prescribed for other associations, it, shall be lawful for the Comptroller of the Ourren&y to issue to the association making the deposit circulating notes of different denominations, but none of them of less than five dollars, and not exceetling in amount eighty per centum of the par value of the bonds deposited, wliich shall express the promise of the association to pay them, upon presentation at the offlce at which they are issued, in gold coin of the United States, and shall be so redeemable. 65. Worn-out ob Mutilated Oiboulation. (Sec. 5184.) It shall be the duty of the Comptroller of the Currency to receive worn-out or mutilated circulating notes issued by any banking association, and also, on due proof of the destruction of any such circulating notes, to deliver in place thereof to the association other blank circulating notes to an equal amount. Such worn-out or mutilated notes, after a mem- orandum has been entered in the proper books, in accordance with such regulations as may be established by the Comptroller, as well as all circulating notes which shall have been paid or surrendered to be canceled, shall be macerated in presence of four persons, one to be appointed by the Secretary of the Treasury, one by the Comptroller of the Currency, one by the Treasurer of the United States, and one by the association, under such regulations as the Secretary of the Treasury may prescribe. A certificate of such maceration, signed by the parties so appointed, shall be made in the books of the Comptroller, and a duf)li- cate thereof forwarded to the association whose notes are thus canceled. 66. Peotisions for Redeeming Circulation. — Sec. 3 of the act of June 20, 1874, provides that every association organized, or to be organized, under the provisions of the said act, and of the several acts amendatory thereof, shall at all times keep and have on deposit in the Treasury of the United States, in lawful money of the United States, a sum equal to five per centum of its circulation, to be held and used for the redemption of such circulation; which sum shall be counted as a part of its lawful reserve, as provided in section two of this act; and when the circulating notes of any such associations, assorted or unas- sorted, shall be presented for redemption, in sums of one thousand dollars or any multiple thereof, to the Treasurer of the United States, the same shall be redeemed in United States notes. All notes so redeemed shall be charged by the Treasurer of the United Stales to the respective associations issuing the same, and he shall notify them severally, on the first day of each month, or oftener, at his discretion, of the amount of such redemptions; and whenever such redemptions for any association shall amount to the sum of five hundred dollars, such association so notified shall forthwith deposit with the Treasurer of the United States a sum in United States notes equal to the amount of its circulating notes so redeemed. And all notes of national banks, worn, defaced, mutilated, or otherwise unfit for circulation, shall, when received by any assistant treasurer, or at any designated depositary of NATIONAL-BANK ACT. 17 the United States, be forwarded to the Treasurer of the United States for redemption as provided herein. And when such redeniptious have been so reimbursed, the circulating notes so redeemed shall be for- warded to the respective associations by which they were issued; but if any of such notes are worn, mutilated, defaced, or rendered other- wise unfit for use, they shall be forwarded to the Comptroller of the Currency and destroyed, and replaced as now provided by law: Pro- vided, That each of said associations shall reimburse to the Treasury the charges for transportation and the costs for assorting such notes; and the associations hereafter organized shall also severally reimburse to the Treasury the cost of engraving such plates as sliall be ordered by each association respectively ; and the amount assessed upon each association shall be in proportion to the circulation redeemed, and be charged to the fund on deposit with the Treasurer. 67. Withdrawing Circulation, — Sec, 4 of the act of June 20, 1874, provides that any association organized under this act, or any of the acts of which this is an amendment, desiring to withdraw its circu- lating notes, in whole or in part, may, upon the deposit of lawful money with the Treasurer of the United States in sums of not less than nine thousand dollars, take up the bonds which said association has on deposit with the Treasurer for the security of such circulating notes, which bonds shall be assigned to the bank in the manner specified in the nineteenth section of the national-bank act; and the outstanding notes of said association, to an amount equal to the legal-tender notes deposited, shall be redeemed at the Treasury of the United States, and destroyed as now provided by law: Provided, That the amount or the bonds on deposit for circulation shall not be reduced below fifty thou- sand dollars. 68. General Provisions for Withdrawing Circulation. — The act of July 12, 1882, provides: (Sec. 8.) That the national banks which shall hereafter make deposits of lawful money for the retirement in full of their circulation shall, at the time of their deposit, be assessed for the cost of transporting and redeeming their notes then outstand- ing, a sum equal to the average cost of the redemption of national-bank notes during the preceding year, and shall thereupon pay such assess- ment; and all national banks which have heretofore made or shall hereafter make deposits of lawful money for the reduction of their circulation shall be assessed, and shall pay an assessment in the manner specified in section three of the net approved June twentieth, eighteen hundred and seventy-four, for the cost of transporting and redeeming their notes redeemed from such deposits subsequently to June .thirtieth, eighteen hundred and eighty-one. Sbo. 9. (As amended by act of March 1 i, 1900.) That any national banking association now organized, or hereafter organized, desiring to withdraw its circulating notes, upon a deposit of lawful money with the Treasurer of the United States, as provided in section four of the act of June twentieth, eighteen hundred and seventy- four, or as provided in this act, is authorized to deposit lawful money and withdraw a proportionate amount of the bonds held as security for its circulating notes in the order of such deposits : Provided, That not more than three millions of dollars of lawful money shall be deposited during any calendar month for this purpose: And provided further. That the provisions of this section shall not apply to bonds called for redemption by the Secretary of the Treasury, nor to the with- drawal of circulating notes iu consequence thereof. 69. Circulation of Extended Banks. — Sec, 6 of the act of July 12, 1882, provides that the circulating notes of any association so extend- 18 NATIONAL-BANK ACT. ing the period of its succession which shall have been issued to i* P™? to such extension shall be redeemed at the Treasury of the Lnited States, as provided in section three of the act of June twentieth, eight- een hundred and seventy four, entitled "An act fixing theamount of United States notes, providing for redistribution of national bank cur- rency, and for other purposes," and such notes when redeemed shall be forwarded to the Comptroller of the Currency, and destroyed, as now provided by law; aud at the end of three years from the date of the extension of the corporate existence of each bank the association so extended shall deposit lawful money with the Treasury of the United States sufficient to redeem tbe remainder of the circulation which was outstanding at the date of its extension, as provided in sections fifty-two hundred and twenty-two, fifty-two hundred and twenty four, and fifty- two hundred and twenty -five of the Revised Statutes ; and any gain that may arise from the failure to present such circulating notes for redemp- tion shall inure to the benefit of the United States; and from time to time, as such notes are redeemed or lawful money deposited therefor as provided herein, new circulating notes shall be issued as provided for by this act, bearing such devices, to be approved by the Secretary of the Treasury, as shall make them readily distinguishable from the cir- culating notes heretofore issued; Provided, however, That each banking association which shall obtain the benefit or this act shall reimburse to the Treasury the cost of preparing the plate or plates for such new circulating notes as shall be issued to it. 70. GiKOULATiON OF LIQUIDATING BANKS. (Sec. 5225.) Whenever the Treasurer has redeemed any of the notes of an association which has commenced to close its affairs, he shall cause the notes to be muti- lated and charged to the redemption account of the association ; and all notes so redeemed by the Treasurer shall, every three months, be certified to and destroyed in the manner prescribed in section fifty-one hundred and eighty-four. 71. Circulation op Closed Banks. — Sec. 8 of the act of June 20, 1874, provides: And it shall be the duty of the Treasurer, assistant treasurers, designated depositaries, and national bank depositaries of the United States to assort and return to the Treasury for redemption the notes of such national banks as have failed, cr gone into voluntary liquidation for the purpose of winding up their affairs, and of such as shall hereafter so fail or go into liquidation. 72. Eegulations foe Redemption Kecoeds. (Sec. 5232.) The Secretary of the Treasury may, from time to time, make such regulations respecting the disposition to be made of circulating notes after presenta- tion at the Treasury of the United States for payment, and respecting the perpetuation of the evidence of the payment thereofj as may seem to him proper. 73. Kedeemed Notes to be Canceled. (Sec. 5233.) All notes of national banking associations presented at the Treasury of the United States for payment shall, on being paid, be canceled. 74. Eedemption in United States Notes.— Sec. 3 of the act approved June 20, 1874, provides that when the circulating notes of any such associations, assorted or unassorted, shall be presented for redemption, in sums of one thousand dollars or any multiple thereof, to the Treasurer of the United States, the same shall be redeemed in United States notes. 75. Disposition op Redemption Account.— Sec. 6 of the act of July 14, 1890, provides that upon the passage of this act the balances standing with the Treasurer of the United States to the respective credits of national banks for deposits made to redeem the circulating NATIONAL-BANK ' ACT. 1 9 notes of sucli banks, and all deposits thereafter received for like pur- pose, shall be covered into the Treasury as a miscellaneous receipt, and the Treasury of the United States shall redeem Iroin the general cash in the Treasury the circulating notes of said banks which may come into his possession subject to redemption; and upon the certificate of the Comptroller of the Currency that such notes have been received by him and that they have been destroyed and that no new notes will be issued in their place, reimbursement of their amount shall be made to the Treasurer, under such regulations as the Secretary of the Treasury may prescribe, from an appropriation hereby created, to be known as "national-bank notes, redemption account." But the provisions of this act shall not apply to the deposits received under section three of the act of June twentieth, eighteen hundred and seventy-four, requiring every national bank to keep in lawful money with the Treasurer of the United States a sum equal to five per centum of its circulation, to be held and used for the redemption of its circulating notes; and the bal- ance remaining of the deposits so covered shall, pt the close of each month, be reported on the monthly public debt statement as debt of the United States bearing no interest. 70. Redemption of Incomplete Ciectjlation. — The act of July 28, 1892, provides that the provisions of the Eevised Statutes of the United States, providing for the redemption of national-bank notes, shall apply to all natjional-bauk notes that have been or may be issued to, or received by, any national bank, notwitlistanding such notes may have been lost by or stolen from the bank and put in circulation with- out the signature or upon the forged signature of the president or vice- president and cashier. 77. Banks Take Circulation at Pae. (Sec. 5196.) Every na- tional banking association formed or existing under this Title shall take and receive at par, for any debt or liability to it, any and all notes or bills issued by any lawfully organized national banking association. But this provision shall not apply to any association organized for the purpose of issuing notes payable in gold. 78. Issue of Other Notes Prohibited. (Sec. 5183.) No national banking association shall issue post notes or any other notes to circu- late as money than such as are authorized by the provisions of this Title. 79. Fraudulent Notes to be Marked. — Sec. 5 of the act of June 30, 1876, provides that all United States officers charged with the receipt or disbursement of public moneys, and all officers of national banks, shall stamp or write in plain letters the word "counterfeit," "altered," or "worthless," upon all fraudulent notes issued in the form of and intended to circulate as money which shall be presented at their places of business; and if such officer shall wrongfully stamp any genuine note of the United States, or of the national banks, they shall, upon presentation, redeem such notes at the face value thereof. CHAPTER FOUR. TAX ON CIRCULATION. 80. Tax on circulation. 81. Semiannual return of circulation. 82. Proceedings on default. 83. Enforcing tax on circulation. 84. Refunding excess tax. 85. Circulation, when exempt from tax. 86. Tax on unauthorized circulation. 80. Tax ON Circulation. (Sec. 5214.) In lieu of all existing taxes, every association shall pay to the Treasurer of the United States, in the 87. Semiannual return of taxable circu- lation. 88. Failure to makr such return. 89. Tax on converted bank circulation. 90. Tax provisions restricted. 91. Taxation of notes, etc. 20 NATIONAL-BANK ACT. months of January and July, a duty of one-half of one per centum each half year upon the average amount of its notes in circulation. Section 13 of the act of Congress approved March 14, 1900, provides that every national banking association having on deposit, as provided by law, bonds of the United States bearing interest at the rate of two per centum i)er annum, issued under the provisions of this act, to secure its circulating notes, shall pay to the Treasurer of the United States, in the months of January and July, a tax of one-fourth of one per centum each half year upon the average amount of such of its notes in circulation as are based upon the deposit- of said two per centum bonds ; and such taxes shall be in lieu of existing taxes on its notes in circulation imposed by section fifty-two hundred and fourteen of the Eevised Statutes. 81. Semiannual Return op Circulation. (Sec. 5215.) In order to enable the Treasurer to assess the duties imposed by the preceding sections, each association shall, within ten days from the first days of January and July of each year, make a return, under the oath of its president or cashier, to the Treasurer of the United States, in such form as the Treasurer may prescribe, of the average amount of its notes in circulation for the six months next preceding the most recent first day of January or July. Every association which fails so to make such return shall be liable to a penalty of two hundred dollars, to be collected either out of the interest as it may become due such association on the bonds deposited with the Treasurer, or, at his option, in the manner in which penalties are to be collected of other corporations under the laws of the United States. 82. Proceedings ON Default. (Sec. 6216.) Whenever any associa- tion fails to make the half yearly return required by the precexling section, the duties to be paid by such association shall be assessed upon the amount of notes delivered to such association by the Comptroller of the Currency. 83. Enforcing Tax on Circulation. (Sec. 5217.) Whenever an association fails to pay the duties imposed by the three preceding sec- tions, the sums duemay be collected in the maniier provided for the collec- tion of United States taxes from other corporations; or the Treasurer may reserve the amount out of the interest, as it may become due, on the bonds deposited with him by such defaulting association. 84. Refunding Excess Tax. (Sec. 5218.) In all cases where an association has paid or may pay in excess of what may be or has been found due from it, on account of the duty required to be paid to the Treasurer of the United States, the association may state an account therefor, which, on being certified by the Treasurer of the United States, and found correct by the Comptroller of the Treasury, shall be refunded in the ordinary manner by warrant on the Treasury. 85. Circulation, when Exempt prom Tax. (Sec. 3411.) When- ever the outstanding circulation of any bank, association, corporation, company, or person is reduced to an amount not exceedin g five per centum of the chartered or declared capital existing at the time the same was issued, said circulation shall be free from taxation; and whenever any bank which has ceased to issue notes for circulation deposits in the Treasury of the United States, in lawful money, the amount of its out standing circulation, to be redeemed at par, under such regulations as the Secretary of the Treasury shall prescribe, it shall be exempt from any tax upon such circulation. NATIONAl-BANK ACT. 21 86. Tax on TlNAtrTHOEiZED CiROtTLATiON. — Secs. 19, 20, and 21 of the act of February 8, 1875, provide: Sec. 19. That every person, firm, association, other than national- bank associations, and every corporation. State bank, or State banking association shall pay a tax of ten per centum on the amount of their own notes used for circulation and paid out by them. Sec. 20. That every such person, firm, association, corporation. State bank, or State banking association, and also every national banking association, shall pay a like tax of ten per centum on the amount of notes of any person, firm, association, other than a national banking association, or of any corporation, State bank, or State banking asso- ciation, or of any town, city, or municipal corporation, used for circu- lation and paid out by them. Sec. 21. That the amount of such circulating notes, and of the tax due thereon, shall be returned, and the tax paid at the same time, and in the same manner, and with like penalties for failure to return and pay the same, as provided by law for the return and payment of taxes on deposits, capital, and circulation imposed by the existing provisions of internal-revenue law. 87. Semiannual Return of Taxable Circulation. (Sec. 3414.) A true and complete return of the iBonthly amount of circulation, as aforesaid, and of the monthly amount of notes of persons, town, city, or municipal corporation, State banks, or State banking associations paid out as aforesaid for the previous six months, shall be made and rendered in duplicate on the first day of December and the first day of June by each of such banks, associations, corporations, companies, or persons, with a declaration annexed thereto, under the oath of such person, or of the president or cashier of such bank, association, corpora- tion, or company, in such form and manner as may be prescribed by the Commissioner of Internal Eevenue, that the same contains a true and faithful statement of the amounts subject to tax, as aforesaid ; and one copy shall be transmitted to the collector of the district in which any such bank, association, corporation, or company is situated, or in which such person has his place of business, and one copy to the Commissioner of Internal Eevenue. 88. Failure to make such Eeturn. (Sec. 3415.) In default of the returns provided in the preceding section the amount of circulation, and notes of persons, town, city, and municipal corporations. State banks, and State banking associations paid out, as aforesaid, shall be estimated by the Commissioner of Internal Eevenue, upon the best information he can obtain. And for any refusal or neglect to make return and payment any such bank, association, corporation, company, or person so in default shall pay a penalty of two hundred doUars, besides the additional penalty and forfeitures provided in other cases. 89. Tax on Converted Bank Circulation. (Sec. 3416.) When- ever any State bank or banking association has been converted into a national banking association, and such national banking association has assumed the liabilities of such State bank or banking association, including the redemption of its bills, by any agreement or understand- ing whatever with the representatives of such State bank or banking association, such national banking association shall be held to make the required return and payment on the circulation outstanding, so long as such circulation shall, exceed five per centum of th.e capital before such conversion of such State bank or banking association. 90. Tax Provisions Eestricted. (Sec. 3417.) The provisions of this chapter relating to the tax on the circulation of banks and to 22 NATIONAL-BANK ACT. their returns, except as contained in sections thirty-four hundred and eleven, thirty-four hundred and twelve, thirty-four hundred and thir- teen, and thirty -four hundred and sixteen, and such parts of sections thirty-four hundred and fourteen and thirty-four hundred and fifteen as relate to the tax of ten per centum on certain notes, shall not apply to associations which are taxed under and by virtue of Title " National Banks." 91. Taxation of Notes, etc. (Sec. 3701.) All stocks, bonds, Treasury notes, and other obligations of the United States shall be exempt from taxation by or under State or municipal or local authority. The act of August 13, 1894, provides: (Sec. 1.) That circulating notes of national banking associations and United States legal-tender notes and other notes and certificates of the United States, payable on demand and circulating or intended to circulate as currency, and gold, silver, or other coin shall be subject to taxation as money on hand or on deposit under the laws of any State or Territory: Provided, That any such taxation shall be exercised in the same manner and at the same rate that any such State or Territory shall tax money or currency cir- culating as money within its jurisdiction. Sec. 2. That the provisions of this act shall not be deemed or held to change existing laws in respect of the taxation of national banking associations. OHAPTBE FIVE. EEGTJLATION OF THE BANKING BUSINESS. 92. 93, 94. 95. 96. 97. 99. 100. 101. 102. 103. 104. 105. 106. 107. 108. 109. Laws governing certain associations. Place of business. Eeserve cities and reserve require- ments. Reserve not maintained. Eeserve agents' balances counted as reserve. Clearing-liouse certificates counted as reserve. Redemption fund counted as reserve. United States note certificates counted as reserve. Redemption of such certificates. United States gold certificates counted as reserve. Reserve requirements for gold banks. Eeserve deposit in central reserve city. Additional reserve cities. Additional central reserve cities. Real estate. Interest. Penalty for unlawful interest. Surplus and dividends. 110. Restriction on loans. 111. Associations must not hold their own stock. 112. Restriction on bank's liability. 113. Improper use of bank circulation. 114. Unearned dividends prohibited. 115. Assesamentforimpairment of capital. 116. Provision for enforcement of assess- ment. 117. Prohibition against uncurrent notes. 118. List of shareholders. 119. Reports of condition. 120. Verification of such reports. 121. Reports of dividends and earnings. 122. Penalty for failure to report. 123. Reports of other banks. 124. State taxation of national banks. 125. National-bank examiners. 126. Qualification for examiner. 127. Compensation of examiners. 128. Examinations in District of Co- lumbia. 129. Limitation of visitorial powers. 130. Use of "National" in titles. 92. Laws Governing Certain Associations. (Sec. 5157.) The provisions of chapters two, three, and four [three, five, and seven of this edition] of this Title, which are expressed without restrictive words, as applying to "national banking association," or to " associations," apply to all associations organized to carry on the business of banking under any act of Congress. 93. Place of Business. (Sec. 6190.) The usual business of each national banking association shall be transacted at an ofBce or banking house located in the place specified iu its organization certificate. NATIONAL-BANK ACT. 23 94. Reserve Cities and Eeserve Requirements. (Sec. 5191.) Every national banking association in either of the following cities: Albany, Baltimore, Boston, Cincinnati, Chicago, Cleveland, Detroit, Louisville, Milwaukee, New Orleans, New York, Philadelphia, Pitts- burgh, Saint Louis, San Francisco, and Washington, shall at all times have on hand, in lawful money of the United States, an amount equal to at least twenty-five per centum of the aggregate amount of its depos- its in all respects ; and every other association shall at all times have on hand, in lawful money of the United States, an amount equal to at least fifteen per centum of the aggregate amount of its deposits in all respects. 95. Reserve not Maintained. (Sec. 5191.) Whenever the lawful money of any association in any of the cities named shall be below the amount of twenty-five per centum of its deposits, and whenever the lawful money of any other association shall be below fifteen per centum of its deposits, such association shall not increase its liabilities by mak- ing any new loans or discounts otherwise than by discounting or pur- chasing bills of exchange payable at sight, nor make any dividend of its profits until the required proportion between the aggregate amount of its deposits and its lawful money of the United States has been restored. And the Comptroller of the Currency may notify any asso- ciation, whose lawful-money reserve shall be below the amount above required to be kept on hand, to make good such reserve; and if such association shall fail for thirty days thereafter so to make good its reserve of lawful money, the Comptroller may, with the concurrence of the Secretary of the Treasury, appoint a receiver to wind up the busi- ness of the association, as provided in section fifty- two hundred and thirty-four. 96. Reserve Agents' Balances Counted as Reserve. (Sec. 6192.) Three- fifths of the reserve of fifteen per centum required by the preceding section to be kept may consist of balances due to an asso- ciation from associations approved by the Comptroller of the Currency, organized under the act of June three, eighteen hundred and sixty- four, or under this Title, and doing business in the cities of Albany, Balti- more, Boston, Charleston, Chicago, Cincinnati, Cleveland, Detroit, Louisville, Milwaukee, New Orleans, New York, Philadelphia, Pitts- burg, Richmond, Saint Louis, San Francisco, and Washington. 97. Clbaring-House Certificates Counted as Reserve. — Clearing-house certificates, representing specie or lawful money spe- cially deposited for the purpose, of any clearing-house association shall also be deemed to be lawful money in the possession of any association belonging to such clearing house, holding and owning such certificate, within the preceding section. 98. Redemption Fund Counted as Reserve. — Sec. 3 of the act of June 20, 1874, provides that the five per cent redemption fund, which shall at all times be kept on deposit with the Treasurer of the United States, shall be counted as a part of the lawful reserve. 99. United States Note Certificates Counted as Reserve. (Sec. 5193.) The Secretary of the Treasury may receive United States notes on deposit, without interest, from any national banking associa- tions, in sums of not less than ten thousand dollars, and issue certifi- cates therefor in such form as he may prescribe, in denominations of not less than five thousand dollars, and payable on demand in United States notes at the place where the deposits were made. The notes so deposited shall not be counted as part of the lawful-money reserve of the association; but the certificates issued therefor may be counted as part of its lawful-money reserve, and may be accepted iu the settlement 24 NATIONAL-BANK ACT. of clearinghouse balances at the places where the deposits therefor were made. (Repealed March 14, 1900.) 100. Eedemption op such Oeetificates. (Sec. 5194.) The power conferred on the Secretary of the Treasury, by the preceding section shall not be exercised so as to create any expansion or contraction of the currency; and United States notes for which certificates are issued under that section, oi other United States notes of like amount, shall be held as special deposits in the Treasury and used only for redemp- tion of such certificates. 101. United States Gold Gertipicates Counted as Eeserte.— Sec. 12 of the act of July 12, 1882, provides that the Secretary of the Treasury is authorized and directed to receive deposits of gold coin with the Treasurer or assistant treasurers of the United States, in sums not less than twenty dollars, and to issue certificates therefor in denom- inations of not less than twenty dollars each, corresponding with the denominations of United States notes. The coin deposited for or rep- resenting the certificates of deposit shall be retained in the Treasury for the payment of the same on demand. Said certificates shall be receivable for customs, taxes, and all public dues, and when so received may be reissued ; and such certificates, as also silver certificates, when held by any national banking association, shall be counted as part of its lawful reserve; and no national banking association shall be a mem- ber of any clearing house in which such certificates shall not be receiv- able in the settlement of clearing-house balances : Provided, That the Secretary of the Treasury shall suspend the issue of such gold certifi- cates whenever the amount of gold coin and gold bullion in the Treasury reserved for the redemption of United States notes falls below one hundred millions of dollars; and the provisions of section fifty -two hundred and seven of the Eevised Statutes shall be applicable to the certificates herein authorized and directed to be issued. 102. Eeseevb Ebquirements for Gold Banks. (Sec. 5186.) Every association organized for the purpose of issuing notes payable in gold shall at all times keep on hand not less than twenty-five per centum of its outstanding circulation, in gold or silver coin of the United States; and shall receive at par in the payment of debts the gold notes of every other such association which at the time of such payment is redeeming its circulating notes in gold coin of the United States, and shall be subject to all the provisions of this Title: Pro- vided, That, in applying the same to associations organized for issuing gold notes, the terms "lawful money" and "lawful money of the United States " shall be construed to mean gold or silver coin of the United States; and the circulation of such association shall not be within the limitation of circulation mentioned in this Title. 103. Eeserve Deposit in Central Eeserte City. (Sec. 5195.) Bach association organized in any of the cities named in section fifty- one hundred and ninety-one may keep one-half of its lawful-money reserve iii cash deposits in the city of New York. But the foregoing provision shall not apply to associations organized and located in the city of San Francisco for the purpose of issuing notes payable in gold. This section shall not relieve any association from its liability to redeem its circulating notes at its own counter at par in lawful money on demand. 104. additional Eeserte Cities. — Sec. 1 of the act of March 3, 1887, as amended by the act of March 3, 1903, provides that when- ever threetburths in number of the national banks located in any city of the United States having a population of twenty-five thousand people shall make application to the Comptroller of the Currency, in NATIONAL-BANK ACT. 25 writing, asking that the name of the city in which such banks are located shall be added to the cities named in sections flfty-one hundred and ninety-one and flfty-one hundred and. ninety-two of the Eevised Statutes, the Comptroller shall have authority to grant such request, and every bank located in such city shall at all times thereafter have on hand, in lawful money of the United States, an amount equal to at least twenty-flve per centum of its deposits, as provided in sections flfty-one hundred and ninety-one and fifty-one hundred and niuety-flve of the Eevised Statutes. 105. Additional Centkal Eeseetb Cities. — Sec. 2 of the act of March 3, 1887, provides that whenever three-fourths in number of the national banks located in any city of the United States having a popula- tion of two hundred thousand i)eople shall make applicatiou to the Comp- troller of the Currency, in writing, asking that such city m ay be a central reserve city, like the city of New York, in which one- half of the lawful- money reserve of the national banks located in other reserve cities may be deposited, as provided in section flfty-one hundred and ninety-flve of the Eevised Statutes, the Comptroller shall have authority, with the approval of the Secretary of the Treasury, to grant such request, and every bank located in such city shall at all times thereafter have on hand, in lawful money of the United States, twenty-flve per centum of its deposits, as provided in section flfty-one hundred and ninety-one of the Eevised Statutes. 106. Eeal Estate. (Sec. 5137.) A national banking association may purchase, hold, and convey real estate for the following purposes, and for no others : First. Such as shall be necessary for its immediate accommodation in the transaction of its business. Second. Such as shall be mortgaged to it in good faith by way of security for debts previously contracted. Third. Such as shall be conveyed to it in satisfaction of debts previ- ously contracted in the course of its dealings. Fourth. Such as it shall purchase at sales under judgments, decrees, or mortgages held by the association, or shall purchase to secure debts due to it. But no such association shall hold the possession of any real estate under mortgage, or the title and possession of any real estate purchased to secure any debts due to it, for a longer period than five years. 107. Interest. (Sec. 6197.) Any association may take, receive, reserve, and charge on any loan or discount made, or upon any note, bill of exchange, or other evidences of debt, interest at the rate allowed by the laws of the State, Territory, or District where the baak is located, and no more, except that where by the laws of any State a different rate is limited for banks of issue organized under State laws, the rate so limited shall be allowed for associations organized or exist- ing in any such State under this Title. When no rate is fixed by the laws of the State, or Territory, or District, the bank may take, receive, reserve, or charge a rate not exceeding seven per centum, and such interest may be taken in advance, reckoning the days from which the note, bill, or other evidence of debt has to run. And the purchase, dis- count, or sale of a bona fide bill of exchange, payable at another place than the place of sucli purchase, discount, or sale, at not more than the current rate of exchange for sight drafts in addition to the interest, shall not be considered as taking or receiving a greater rate of interest. 108. Penalty for Unlawful Interest. (Sec. 5198.) The taking, receiving, reserving, or charging a rate of interest greater than is 26 NATIOITAL-BANK ACT. allowed by the preceding section, when knowingly done, shall be deemed a forfeiture of the entire interest which the note, bill, or other evidence of debt carries with it, or which has been agreed to be paid thereon. In case the greater rate of interest has been paid, the person by whom it has been paid, or his legal representatives, may recover back, in an action in the nature of an action of debt, twice the amount of the inter- est thus paid from the association taking or receiving the same, pro- vided such action is commenced within two years from the time the usurious transaction occurred. 109. SUKPLXTS AND DIVIDENDS. (Sec. 5199.) The directors of any association may semiannually declare a dividend of so much of the net profits of the association as they shall judge expedient; but each asso- ciation shall, before the declaration of a dividend, carry one-tenth part of its net profits of the preceding half year to its surplus fund until the same shall amount to twenty per centum of its capital stock. 110. Eesteiction on Loans. (Sec. 5200.) The total liabilities to any association, of any person, or of any company, corporation, or firm for money borrowed, including in the liabilities of a company or firm the liabilities of the several members thereof, shall at no time exceed one-tenth part of the amount of the capital stock of such association actually paid in. But the discount of bills of exchange drawn in good faith against actually existing values, and the discount of commercial or business paper actually owned by the person negotiating the same shall not be considered as money borrowed. 111. Associations must not Hold theik Own Stock. (Sec. 5201.) No association shall make any loan or discount on the security of the shares of its own capital stock, nor be the purchaser or holder of any such shares, unless such security or purchase shall be necessary to prevent loss upon a debt previously contracted in good faith ; and stock so purchased or acquired shall, within six months from the time of its purchase, be sold or disposed of at public or private sale; or, in default thereof, a receiver may be appointed to close up the business of the association, according to section fifty-two hundred and thirty-four. 112. Eesteiction on Bank's Liability. (Sec. 6202.) No association shall at any time be indebted, or in any way liable, to an amount exceeding the amount of its capital stock at such time actually paid in and remaining undiminished by losses or otherwise, except on account of demands of the nature following: First. Notes of circulation. Second. Moneys deposited with or collected by the association. Third. Bills of exchange or drafts drawn against money actually on deposit to the credit of the association, or due thereto. Fourth. Liabilities to the stockholders of the association for divi- dends and reserve profits. 113. Improper Use of Bank Circulation. (Sec. 5203.) No asso- ciation shall, either directly or indirectly, pledge or hypothecate any of its notes of circulation for the .purpose of procuring money to be paid in on its capital stock, or to be used in its banking operations, or other- wise; nor shall any association use its circulating notes, or any part thereof, in any manner or form, to create or increase its capital stock. 114. Unearned Dividends Prohibited. (Sec. 5204.) No associa- tion, or any member thereof, shall, during the time it shall continue its banking operations, withdraw, or permit to be withdrawn, either in the form of dividends or otherwise, any portion of its capital. If losses have at any time been sustained by any such association equal to or exceeding its undivided profits then on hand, no dividend shaU be NATIONAL-BANK ACT 27 made; and no dividend shall ever be made by any association, while it continues its banking operations, to an amount greater than its net profits then on hand, deducting therefrom its losses and bad debts. All debts due to any associations, on which interest is past due and unpaid for a period of six months, unless the same are well secured, and in process of collection, shall be considered bad debts within. the meaning of this section. But nothing in this section shall prevent the reduction of the capital stock of the association under section fifty-one hundred and forty-three. 115. Assessment for Impairment of Capital. (Sec. 6205.) Every association which shall have failed to pay up its capital stock, as required by law, and every association whose capital stock shall have become impaired by losses or otherwise, shall, within three months after receiving notice thereof from the Comptroller of the Currency, pay the deficiency in the capital stock, by assessment upon the shareholders pro rata tor the amount of capital stock held by each; and the Treas- urer of the United States shall withhold the interest upon all bonds held by him in trust for any such association, upon notification from the Comptroller of the Currency, until otherwise notified by him. If any such association shall fail to pay up its capital stock, and shall reflise to go into liquidation, as provided by law, for three months after receiving notice from the Comptroller, a receiver may be appointed to close up the business of the association, according to the provisions of section fifty-two hundred and thirty-four. 116. Provision for Enforcement of Assessment. — Sec. 4 of the act of June 30, 1876, provides that if any shareholder or shareholders of a bank shall neglect or refuse, aft«r three months' notice, to pay the assessment, as provided in this section, it shall be the duty of the board of directors to cause a sufficient amount of the capital stock of such shareholder or shareholders to be sold at public auction (after thirty days' notice shall be given by posting such notice of sale in the ofiBice of the bank and by publishing such notice in a newspaper of the city or town in which the bank is located, or in a newspaper published nearest thereto) to make good the deficiency; and the balance, if any, shall be returned to such delinquent shareholder or shareholders. 117. Prohibition against Unctjrrent Notes. (Sec. 5206.) No association shall at any time pay out on loans or discounts, or in pur- chasing drafts or bills of exchange, or in payment of deposits, or in any other mode pay or put in circulation the notes of any bank or banking association which are not, at any such time, receivable, at par, on deposit, and in payment of debts by the association so paying out or circulating such notes; nor shall any association knowingly pay out or put in circulation any notes issued by any bank or banking association which at the time of such paying out or putting in circulation is not redeeming its circulating notes in lawful money of the United States. 118. List op Shareholders. (Sec. 6210.) The president and cashier of every national banking association shall cause to be kept at all times a full and correct list of the names and residences of all the shareholders in the association, and the number of shares held by each, in the office where its business is transacted. Such list shall be subject to the inspection of all the shareholders and creditors of the association, and the officers authorized to assess taxes under State authority, dur- ing business hours of each day in which business may be legally trans- acted. A copy of such list, on the first Monday of July of each year, verified by the oath of such president or cashier, shall be transmitted to the Comptroller of the Currency. 28 NATIONAL-BANK ACT. 119. Ebpoets of Condition. (Sec. 5211.) Every association shall make to the Comptroller of the Currency not less than five reports dur- ing each year, accordiag to the form which maybe prescribed by him, verified by the oath or afflrmation of the ijresident or cashier of such association, and attested by the signature of at least three of the directors. Each such report shall exhibit, in detail and under appro- priate heads, the resources and liabilities of the associations at the close of business on any past day by him specified, and shall be trans- mitted to the Comptroller within five days after the receipt of a request or requisition therefor from him, and in the same form in which it is made to the Comptroller shall be published in a newspaper published in the place where such association is established, or if there is no newspaper in the place, then in one published nearest thereto in the same county, at the expense of the association; and such proof of publication shall be furnished as may be required by the Comptroller. The Comptroller shall also have power to call for special reports from any particular association whenever in his judgment the same are necessary in order to a full and complete knowledge of its condition. 120. Verification of such Eepobts. — The act of February 26, 1881, provides that the oath or afBrmation required by section fifty-two hundred and eleven of the Eevised Statutes, verifying the returns made by national banks to the Comptroller of the Currency, when taken before a notary public properly authorized and commissioned by the State in which such notary resides and the bank is located, or any other officer having an official seal, authorized in such State to administer oaths, shall be a suflScient verification as contemplated by said section fifty -two hundred and eleven: Provided, That the officer administering the oath is not an officer of the bank. 121. Eepoets op Dividends and Eaenings. (Sec. 5212.) In addi- tion to the reports required by the preceding section, each association shall report to the Comptroller of the Currency, within ten days after declaring any dividend, the amount of such dividend and the amount of net earnings in excess of such dividend. Such reports shall be attested by the oath of the president or cashier of the association. 122. Penalty foe Failuee to Eepoet. (Sec. 5213.) Every asso- ciation which fails to make and transmit any report required under either of the two preceding sections shall be subject to a penalty of one hundred dollars for each day after the periods, respectively, therein mentioned, that it delays to make and transmit its report. Whenever any association delays or refuses to pay the penalty herein imposed, after it has been assessed by the Comptroller of the Currency, the amount thereof may be retained by the Treasurer of the United States, upon the order of the Comptroller of the Currency, out of the interest, as it may become due to the association, on the bonds deposited with him to secure circulation. All sums of money collected for penalties under this section shall be paid into the Treasury of the United States. 123. Eepoets op other Banks. — Sec. 6 of the act of June 30, 1876, as amended by acts of March 3, 1901, and June 30, 1902, pro- vides that all banks or savings companies or institutions organized under authority of any act of Congress to do business in the District of Columbia shall be, and are hereby, required to make to the Comp- troller of the Currency, and publish, all the reports which national banking associations are required to make and publish, under the pro- visions of sections fifty two hundred and eleven, fifty-two hundred and twelve, and fifty-two hundred and thirteen of the Eevised Statutes, NATIOKAL-BANK ACT. 29 and shall be subject to the same penalties for failnre to make or pub- lish such reports as are therein provided, which penalties may be col- lected by suit before the supreme court of the District of Columbia. 124. State Taxition of National Banks. (Sec. 5219.) Nothing herein shall prevent all the shares in any association from being included in the valuation of the personal property of the owner or holder of such shares, in assessing taxes imposed by authority of the State within which the association is located; but the legislature of each State may determine and direct the manner and place of taxing all the shares of national banking associations located within the State, subject only to the two restrictions, that the taxation shall not be at a greater rate than is assessed upon other moneyed capital in the hands of individual citizens of such State, and that the shares of any national banking association owned by nonresidents of any State shall be taxed in the city or town where the bank is located, and not elsewhere. Nothing herein shall be construed to exempt the real property of asso- ciations from either State, county, or municipal taxes, to the same extent, according to its value, as other real property is taxed. 125. National-Bank Examinees. (Sec. 5240.) The Comptroller of the Currency, with the approval of the Secretary of the Treasury, shall, as often as shall be deemed necessary or proper, appoint a suita- ble person or persons to make an examination of the aiiairs of every banking association, who shall have power to make a thorough exami- nation into all the affairs of the association, and in doing so to examine any of the officers and agents thereof on oath; and shall make a full and detailed report of the condition of the association to the Comptroller. 126. Qualification foe Examinee. (Sec. 5240.) But no person shall be appointed to examine the affairs of any banking association of which he is a director or other officer. 127. Compensation of Examinees. (Sec. 5240.) All persons ap- pointed to be examiners of national banks not located in the redemp- tion cities specified in section five thousand one hundred and ninety-two of the Eevised Statutes of the United States, or in any one of the States of Oregon, 'California, and Nevada, or in the Territories, shall receive compensation for such examination as follows: For examining national banks having a capital less than one hundred thousand dollars, twenty dollars ; those having a capital of one hundred thousand dollars and less than three hundred thousand dollars, twenty-five dollars; those having a capital of three hundred thousand dollars and less than four hundred thousand dollars, thirty-five dollars ; those having a capital of four hun- dred thousand dollars and less than five hundred thousand dollars, forty dollars ; those having a capital of five hundred thousand dollars and less than six hundred thousand dollars, fifty dollars; those having a capital of six hundred thousand dollars and over, seventy-five dollars ; which amounts shall be assessed by the Comptroller of the Currency upoTi, and paid by, the respective association so examined, and shall be in lieu of the compensation and mileage heretofore allowed for mak- ing said examinations; and persons appointed to make examinations of national banks in the cities named in section five thousand one hundred and ninety-two of the Eevised Statutes of the United States, or in any one of the btates of Oregon, California, and Nevada, or in the Terri- tories, shall receive such compensation as may be fixed by the Secre- tary of the Treasury upon the recommendation of the Comptroller of the Currency; and the same shall be assessed and paid iu the manner hereinbefore provided. 30 NATIONAL-BANK ACT. 128. Examinations in District of Columbia. (Sec. 332.) The Comptroller of the Currency, in addition to the powers conferred upon him by law for the examination of national banks, is further authorized, whenever he may deem it useful, to cause examination to be made into the condition of any bank in the District of Columbia organized under act of Congress. The Comptroller, at his discretion, may report to Congress the results of such examination. The expense necessarily incurred in any such examination shall be paid out of any appropria- tion made by Congress for special bank examinations. 129. Limitation of Visitoeial Powers. (Sec. 5241.) ¥o asso- ciation shall be subject to any visitor! al powers other than such as are authorized by this Title, or are vested in the courts of justice. 130.. Use of "National" in Titles. (Sec. 5243.) All banks not organized and transacting business under the national currency laws, or under this Title, and all persons or corporations doing the business of bankers, brokers, or savings institutions, except savings banks authorized by Congress to use the word "national" as a part of their corporate name, are prohibited from using the word "national" as a portion of the name or title of such bank, corporation, firm, or partner- ship; and any violation of this prohibition committed after the third day of September, eighteen hundred and seventy-three, shall subject the party chargeable therewith to a penalty of fifty dollars for each day during which it is permitted or repeated. CHAPTEE SIX. extension of corporate existence. 131. Corporateexistencemay beextended. 132. Consent of two-thirds necessary. 133. Special examination of bank. 134. Status not changed by extension. 135. Dissenting shareholders may -with- draw. 131. Corporate Existence mat be Extended. — The act of July 12, 1882, provides: (Sec. 1) That any national banking association organized under the acts of February twenty- fifth, eighteen hundred and sixty-three, June third, eighteen hundred and sixty-four, and February fourteenth, eighteen hundred and eighty, or under sections fifty-one hundred and thirty-three, fifty-one hundred and thirty-four, fifty-one hundred and thirty-five, fifty-one hundred and thirty-six, and fifty-one hundred and fifty-four of the Eevised Statutes of the United States, may, at any time within the two years next previous to the date of the expiration of its corporate existence under present law, and with the approval of the Comptroller of the Currency, to be granted as hereinafter provided, extend its period of succession by amending its articles of association for a term of not more than twenty years from the expiration of the period of succession named in said articles of association, and shall have succession for such extended period, unless sooner dissolved by the act of shareholders owning two-thirds of its stock, or unless its franchise becomes forfeited by some violation of law, or unless hereafter modified or repealed. 132. Consent of Two-thirds Necessary. (Sec. 2.) That such amendment of said articles of association shall be authorized by the consent in writing of shareholders owning not less than two-thirds of the capital stock of the association ; and the board of directors shall cause such consent to be certified under the seal of the association, by its president or cashier, to the Comptroller of the Currency, accom- panied by au application made by the president or cashier for the NATIONAL-BANK ACT 81 approval of the amended articles of association by the Comptroller; and such amended articles of association shall not be valid until the Comptroller shall give to such association a certificate under his hand and seal that the association has complied with all the provisions required to be complied with and is authorized to have succession for the extended period named in the amended articles of association. 133. Special Examination of Bank. (Seo. 3.) That upon the receipt of the application and certificate of the association provided for in the preceding section, the Comptroller of the Currency shall cause a special examination to be made, at the expense of the association, to determine its condition; and if after such examination or otherwise it appears to him that said association is in a satisfactory condition, he shall grant his certificate of approval provided for in the preceding sec- tion, or if it appears that the condition of said association is not satis- factory, he shaU withhold such certificate of approval. 134. Status NOT Changed BY Extension. (Sec. 4.) That any asso- ciation so extending the period of its succession shall continue to enjoy aU the rights and privileges and immunities granted and shall continue to be subject to all the duties, liabilities, and restrictions imposed by the Eevised Statutes of the United States and other acts having refer- ence to national banking associations, and it shall continue to be in all respects the identical association it was before the extension of its period of succession. 135. Dissenting Shaeeholdees May Withdraw. (Sec. 5.) That when any national banking association has amended its articles of association as provided in this act, and the Comptroller has granted his certificate of approval, any shareholder not assenting to such amend- ment may give notice in writing to the directors, within thirty days from the date of the certificate of approval, of his desire to withdraw from said association, in which case he shall be entitled to receive from said banking association the value of the shares so held by him, to be ascertained by an appraisal made by a committee of three persons, one to be selected by such shareholder, one by the directors, and the third by the first two; and in case the value so fixed shall not be satisfac- tory to any such shareholder, he may appeal to the Comptroller of the Currency, who shall cause a reappraisal to be made, which shall be final and binding; and if said reappraisal shall exceed the value fixed by said committee, the bank shall pay the expenses of said reappraisal, and otherwise the appellant shall pay said expenses; and the value so ascertained and determined shaU be deemed to be a debt due, and be forthwith paid, to said shareholder, from said bank; and the shares so surrendered and appraised shall, after due notice, be sold at public sale, within thirty days after the final appraisal provided in this section : Provided, That in the organization of any banking association intended to replace any existing banking association, and retaining the name thereof, the holders of stock in the expiring association shall be entitled to preference in the allotment of the shares of the new association in proportion to the number of shares held by them respectively in the expiring association. 136. Eeextension of Coepoeatb Existence. — The act of Con- gress, approved April 12, 1902, provides that the Comptroller of the Currency is hereby authorized iu the manner provided by, and under the conditions and limitations of the act of July 12, 1882, to extend for a further period of twenty years the charter of any national banking association extended under said act which shall desire to continue its existence after the expiration of its charter. 21893—03 3 32 NATIONAL-BAHK ACT. CHAPTER SEVEN. LIQUIDATION AND BECEIVEKSHIP. 137. Two-thirds vote required for liqvii- datioD. 138. Notice of voluntary liquidation. 139. Deposit of lawful money. 140. No deposit required for consolida- tion. 141. Bonds of liquidating banks. 142. Banks whose existence has expired. 143. Protest of bank circulation. 144. Bonds forfeited if circulation is dis- honored. 145. Bank may enjoin further proceed- ings. 146. Where proceedings must be brought. 147. Suspension of business after default. 148. Notice to present circulation for re- demption. 149. Bonds sold at public auction. 150. First lieu for redeeming circulation. 151. Bonds sold at private sale. 152. Appointment and duties of receiver. 153. When receiver may be appointed. 154. Notice to creditors of insolvent banks. 155. Distribution of assets of insolvent banks. 156. Expenses of receivership — how paid. 157. Forfeiture of charter. 158. Individual liability of directors. 159. Receiver may purchase property to protect his trust. 160. Taxes on insolvent national banks remitted. 161. Appointment and qualification of shareholders' agent. 182. Duties of shareholders' agent. 163. Illegal preference of creditors. 164. Creditor's bill against shareholders. 137,, Two-THiEDS Vote Requieed poe. Liquidation. (Sec. 5220.) Any association may go into liquidation and be closed by the vote of its shareholders owning two-thirds of its stock. 138. Notice op Voluntaey Liquidation. (Sec. 5221.) When- ever a vote is taken to go into liquidation it shall be the duty of the board of directors to cause notice of this fact to be certified, under the seal of the association, by its president or cashier, to the Comptroller of the Currency, and the publication thereof to be made for a period of two months in a newspaper published in the city of New York, and also in a newspaper published in the city or town in which the association is located, or if no newspaper is there published, then in the newspaper published nearest thereto, that the association is closing up its affairs, and notifying the holders of its notes and other creditors to present the notes and other claims against the association for payment. 139. Deposit of Lawful Monet. (Sec. 5222.) Within six months from the date of the vote to go into liquidation the association shall deposit with the Treasurer of the United States lawful money of the United States sufficient to redeem all its outstanding circulation. The Treasurer shall execute duplicate receipts for money thus deposited, and deliver one to the association and the other to the Comptroller of the_ Currency, stating the amount received by him, and the purpose for which it has been received; and the money shall be paid into the Treas- ury of the United States, and placed to the credit of such association upon redemption account. 140. No Deposit Eequieed foe Consolidation. (Sec. 5223.) An association which is in good faith winding up its business for the pur- pose of consolidating with another association shall not be required to deposit lawful money for its outstanding circulation ; but its assets and liabilities shall be reported by the association with which it is in process of consolidation. 141. Bonds op Liquidating Banks. (Sec. 5224.) Whenever a suf- ficient deposit of lawful money to redeem the outstanding circulation of an association proposing to close its business has been made, the bonds deposited by the association to secure payment of its notes shall be reassigned to it, in the manner prescribed liy section fifty-one hun- NATIOlTAL-BAIfK ACT. 83 dred and sixty-two. And thereafter the association and its sharehold' ers shall stand discharged from all habilities upon the circulating notes, and those notes shall be redeemed at the Treasury of the United States. And if any such bank shall fail to make the deposit and take up its l)onds for thirty days after the expiration of the time specified, the C!omptroller of the Currency shall have power to sell the bonds pledged kir the circulation of said bank at public auction in New York City, und, after providing for the redemption and cancellation of said circu- lation, and the necessary expenses of the sale, to pay over any balance remaining to the bank or its legal representatives. 142. Banks whose Existence has Expired. — Sec. 7 of the act of July 12, 1882, provides that national banking associations whose corporate existence has expired or shall hereafter expire, and which do not avail themselves of the provisions of this act, shall be required to comply with the provisions of sections fifty-two hundred and twenty one and fifty-two hundred and twenty-two of the Eevised Statutes in the same manner as if the shareholders had voted to go into liqui- dation, as provided in section fifty-two hundred and twenty of the Eevised Statutes; and the provisions of sections fifty-two hundred and twenty-four and fifty-two hundred and twenty-five of the Eevised Statutes shall also be applicable to such associations, except as modi- fied by "this act; and the franchise of such associations is hereby extended for the sole purpose of liquidating their affairs until such affairs are finally closed. 143. Protest of Bank Circulation. (Sec. 5226.) Whenever any national banking association fails to redeem in the lawful money of the United States any of its circulating notes, upon demand of payment duly made during the usual hours of business, at the office of such association, the holder may cause the same to be protested, in one pack- age by a notary public, unless the president or cashier of the associa- tion whose notes are presented for payment offers to waive demand and notice of the protest, and, in pursuance of such offer, makes, signs, and delivers to the party making such demand an admission in writing, stating the time of the demand, the amount demanded, and the fact of the nonpayment thereof. The notary public, on making such protest, or upon receiving such admission, shall forthwith forward such admis- sion or notice of protest to the Comptroller of the Currency, retaining a copy thereof. If, however, satisfactory proof is produced to the notary public that the payment of the notes demanded is restrained by order of any court of competent jurisdiction, he shall not protest the same. When the holder of any notes causes more than one note or package to be protested on the same day, he shall not receive pay for more than one protest. 144. Bonds Forfeited if Circulation is Dishonored. (Sec. 5227.) On receiving notice that any national banking association has failed to redeem any of its circulating notes, as specified in the preced- ing section, the Comptroller of the Currency, with the concurrence of the Secretary of the Treasury, may appoint a special agent, of whose appointment immediate notice shall be given to such association, who shall immediately proceed to ascertain whether it has refused to pay its circulating notes in the lawful money of the United States, when demanded, and shall report to the Comptroller the fact so ascertained. K from such protest, and the report so made, the Comptroller is satisfied that such association has refused to pay its circulating notes and is in default, he shall, within thirty days after he has received notice of such failure, declare the bonds deposited by such association forfeited to the United States, and they shall thereupon be so forfeited. 34 NATIONAL-BANK AOT. 145. Bank May Enjoin Further iPRoOBEDiNas, (Seo. 5237.) Whenever an association against which proceedings have been insti- tuted, on account of any alleged refusal to redeem its circulating notes as aforesaid, denies having failed to do so, it may, at any time within ten days after it has been notified of the appointment of an agent, as provided in section fifty-two hundred and twenty-seven, apply to the nearest circuit, or district, or Territorial court of the United States to enjoin further proceedings in the premises; and such court, after citing the Comptroller of the Currency to show cause why further proceed- ings should not be enjoined, and after the decision of the court or find- ing of the jury that such association has not refused to redeem its circulating notes, when legally presented, in the lawful money of the United States, shall make an order enjoining the Comptroller, and any receiver acting under his direction, from all further proceedings on account of such alleged refusal. 146. Where PROCEEDiNas Must be Brought. (Sec. 736.) All proceedings by any national banking association to enjoin the Comp- troller of the Currency, under the provisions of any law relating to national banking associations, shall be had in the district where sach association is located, 147. Suspension op Business After Default. (Sec. 5228.) After a default on the part of an association to pay any of its circulating notes has been ascertained by the Comptroller, and notice thereof has been given by him to the association, it shall not be lawful for the associa- tion suffering the same to pay out any of its notes, discount any notes or bills, or otherwise prosecute the busiuess of banking, except to receive and safely keep money belonging to it, and to deliver special deposits. 148. Notice to Present Circulation for Eedemption. (Sec. 5229.) Immediately upon declaring the bonds of an association for- feited for nonpayment of its notes, the Comptroller shall give notice, in such manner as the Secretary of the Treasury shall, by general rules or otherwise direct, to the holders of the circulating notes of such asso- ciation, to present them for payment at the Treasury of the United States ; and the same shall be paid as presented in lawful money of the United States; whereupon the Comptroller may, in his discretion, can- cel an amount of bonds pledged by such association equal at current market rates, not exceeding par, to the notes paid. 149. Bonds Solb at Public Auction. (Sec. 6230.) Whenever the Comptroller has become satisfied, by the protest or the waiver and admission specified in section fifty-two hundred and twenty-six, or by the report provided for in section fifty-two hundred and twenty-seven, that any association has refused to pay its circulating notes, he may, instead of canceling its bonds, cause so much of them as may be necessary to redeem its outstanding notes to be sold at public auction in the city of New Tork, after giving thirty days' notice of such sale to the association. 150. First Lien for EEDBEMme Circulation. (Sec. 5230.) For any deficiency in the proceeds of all the bonds of an association, when thus sold, to reimburse to the United States the amount expended in paying the circulating notes of the association, the United States shall have a paramount lien upon all its assets; and such deficiency shall be made good out of such assets in preference to any and all other claims whatsoever, except the necessary costs and expenses of admin- istering th^ same. 151. Bonds Sold at Private Sale. (Sec. 5231.) The Comptroller may, if he deems it for the interest of the United States, sell at private NATIONAL-BANK AOT. 85 sale any of the bonds of an association shown to have made defanlt in paying its notes, and receive therefor either money or the circulating notes of the association. But no such bonds shall be sold by private sale for less than par, nor for less than the market value thereof at the time of sale; and no sales of any such bonds, either public or private, shall be complete until the transfer of the bonds shall have been made with the formalities prescribed by sections flfty-one hundred and sixty- two, fifty-one hundred and sixty -three, and flfl^-one hundred and sixty- four. 162. Appointment and Duties op Eboeivee. (Sec. 5234.) On becoming satisfied, as specified in sections fifty-two hundred and twenty-six and fifty-two hundred and twenty-seven, that any association has refused to pay its circulating notes as therein mentioned, and is in default, the Comptroller of the Currency may forthwith appoint a receiver, and require of him such bond and security as he deems proper. Such receiver, under the direction of the Comptroller, shall take pos- session of the books, records, and assets of every description of such association, collect all debts, dues, and claims belonging to it, and, upon the order of a court of record of competent jurisdiction, may sell or compound aU bad or doubtful debts, and, on a like order, may sell all the real and personal property of such association, on such terms as the court shall direct; and may, if necessary to pay the debts of such association, enforce the individual liability of the stockholders. Such receiver shall pay over all money so made to the Treasurer of the United States, subject to the order of the Comptroller, and also make report to the Comptroller of all his acts and proceedings. 153. When Eboeivek Mat be Appointed. — Sec. 1 of the act of June 30, 1876, provides that whenever any national banking association shall be dissolved, and its rights, privileges, and franchises declared forfeited, as prescribed in section fifty-two hundred and thirty-nine of the Eevised Statutes of the United States, or whenever any creditor of any national banking association shall have obtained ajudgment against it in any court of record, and made application, accompanied by a cer- tificate from the clerk of the court stating that such judgment has been rendered and has remained unpaid for the space of tMrty days, or when- ever the Comptroller shall become satisfied of the insolvency of the national banking association, he may, after due examination of its affairs, in either case, appoint a receiver, who shall proceed to close up such association, and enforce the personal liability of the shareholders, as provided in section fifty -two hundred and thirty-four of said statutes. A receiver may also be appointed, under the provisions of section fifty- two hundred and thirty-four of the Eevised Statutes of the United States, for the following violations of law : Where the capital stock of a national bank has not been fully paid in and it is thus reduced below the legal minimum and remains so for thirty days. (Sec. 5141, E. S.) For failure to make good the lawful-money reserve within thirty days after notice. (Sec. 5191, E. S.) Where a bank purchases or acquires its own stock, other than to pre- vent loss upon a debt previously contracted in good faith, and the same is not sold or disposed of within six months from the time of its purchase. (Sec. 5201, E. S.) For failure to make good any impairment in its capital stock and refusing to go into liquidation within three months after receiving notice. (Sec. 6205, E. S.) For false certification of checks by any ofiicer, clerk, or agent. (Sec. 5208, E. S.) 36 NATIONAL-BAlirK AOT. 154. N'OTICB TO OEEDITOES OP INSOLVENT BANKS. (SEC. 5235.) The Comptroller shall, upon appointing a receiver, cause notice to be given, by advertisement in such newspapers as he may direct, for three con- secutive months, calling on all persons who may have claims against such association to present the same and to make legal proof thereof. 155. Distribution of Assets of Insolvent Banks. (Sec, 5236.) From time to time, after full provision has been first made for refund- ing to the United States any deficiency in redeeming the notes of such association, the Comptroller shall make a ratable dividend of the money so paid over to him by such receiver on all such claims as may have been proved to his satisfaction or adjudicated in a court of competent jurisdiction, and, as the proceeds of the assets of such association are paid over to him, shall make further dividends on all claims previously proved or adjudicated ; and the remainder of the proceeds, if any, shall be paid over to the shareholders of such association, or their legal rep- resentatives, in proportion to the stock by them respectively held. 156. Expenses of Eeceivekship — How Paid. (Seo. 5238.) All fees for protesting the notes issued by any national banking association shall be paid by the person procuring the protest to be made, and such association shall be liable therefor; but no part of the bonds deposited by such association shall be applied to the payment of such fees. All expenses of any preliminary or other examinations into the condition of any association shall be paid by such association. All expenses of any receivership shall be paid out of the assets of such association before distribution of the proceeds thereof. 157. Fokfbituee of Charter. (Sec. 5239.) If the directors of any national banking association shall kiiowingly violate, or knowingly permit any of the officers, agents, or servants of the association to vio- late, any of the provisions of this Title, all the rights, privileges, and franchises of the association shall be thereby forfeited. Such violation shall, however, be determined and adjudged by a proper circuit, dis- trict, or Territorial court of the United States, in a suit brought for that purpose by the Comptroller of the Currency, in his own name, before the association shall be declared dissolved. 158. Individual Liability op Dikeotors. (Sec. 5239.) And in cases of such violation every director who participated in or assented to the same shall be held liable in his personal and individual capacity for all damages which the association, its shareholders, or any other person shall have sustained in consequence of such violatign. 169. Eeoeiveb May Purchase Property to Protect His Trust.— The act of March 29, 1886, provides: (Sec. 1.) That whenever the receiver of any national bank duly appointed by the Comptroller of the Currency, and who shall have duly qualified and entered upon the .discharge of his trust, shall find it in his opinion necessary, in order to fully protect and benefit his said trust, to the extent of any and all equities that such trust may have in any property, real or personal, by reason of any bond, mortgage, assignment, or other proper legal claim attaching thereto, and which said property is to be sold under any execution, decree of foreclosure, or proper order of any court of jurisdic- tion, he may certify the facts in the case, together with his opinion as to the value of the property to be sold and the value of the equity his said trust may have in the same, to the Comptroller of the Currency, together with a request for the right and authority to use and employ so much of the money of said trust as may be necessary to purchase such property at such sale. Sec. 2. That such request, if approved by the Comptroller of the Currency, shall be, together with the certificate of facts in the case and NATIONAL-BAKK AOT. 37 his recommendation as to the amount of money which in his judgment should be so used and employed, submitted to the Secretary of the Treasury, and if the same shall likewise be approved by him the re- quest shall be by the Comptroller of the Currency allowed, and notice thereof, with copies of the request, certificate of facts, and indorse- ment of approvals, shall be filed with the Treasurer of the United States. Sec. 3. That whenever any such request shall be allowed as herein- before provided, the said Comptroller of the Currency shall be, and is, empowered to draw upon and from such funds of any such trust as may be deposited with the Treasurer of the United States for the bene- fit of the bank iu interest to the amount as may be recommended and allowed and for the purpose for which such allowance was made: Pro- vided, however, That all payments to be made for or on account of the purchase of any such property and under any such allowance shall be made by the Comptroller of the Currency direct, with the approval of the Secretary of the Treasury, for such purpose only and in such man- ner as he may determine and order. 160. Taxes on Insolyent National Banks Eemittbd. — The act of March 1, 1879, provides that whenever and after any bank has ceased to do business by reason of insolvency or bankruptcy no tax shall be assessed or collected, or paid into the Treasury of the United States, on account of such bank, which shall diminish the. assets thereof necessary Jbr the full payment of all its depositors; and such tax shall be abated from such national banks as are found by the Comptroller of the Cur- rency to be insolvent; and the Commissioner of Internal Eevenue, when the facts shall so appear to him, is authorized to remit so much of said tax against insolvent State and savings banks as shall be found to affect the claims of their depositors. 161. Appointment and Qtjalipioation of Shakeholdees' Agent. — Sec. 3 of the act of June 30, 1876, as amended by acts of Au- gust 3, 1892, and March 2, 1897, provides that whenever any association shall have been or shall be placed in the hands of a receiver, as provided in section fifty- two hundred and thirty- four and other sections of the Eevised Statutes of the United States, and when, as provided in section fifty-two hundred and thirty six thereof, the Comptroller of the Currency shall have paid to each and every creditor of such association, not in- cluding shareholders who are creditors of such association, whose claim or claims as such creditor shall have been proved or allowed as therein prescribed, the full amount of such claims, and all expenses of the receiv- ership and the redemption of the circulating notes of such association shall have been provided for by depositing lawful money of the United States with the Treasurer of the United States, the Comptroller of the Currency shall call a meeting of the shareholders of such association by giving notice thereof for thirty days in a newspaper published in the town, city, or county where the business of such association was carried on, or if no newspaper is there published, in the newspaper published nearest thereto. At such meeeting the shareholders shall determine whether the receiver shall be continued and shall wind up the affairs of such association, or whether an agent shall be elected for that purpose, and in so determining the said shareholders shall vote by ballot, iu person or by proxy, each share of stock entitling the holder to one vote, and the majority of the stock in value and number of shares shall be necessary to determine whether the said receiver shall be continued, or whether an agent shall be elected. In case such majority shall deter- mine that the said receiver shall be continued, the said receiver shall 38 NATIONAL-BANK ACT. thereupon proceed with the execution of his trust, and shall sell, dis- pose of, or otherwise collect the assets of the said association, and shall possess all the powers and authority, and be subject to all the duties and liabilities originally conferred or imposed upon him by his appoint- ment as such receiver, so far as the same remain applicable. In case the said meeting shall, by the vote of a majority of the stock in value and number of shares, determine that an agent shall be elected, the said meeting shall thereupon proceed to elect an agent, voting by ballot, in person or by proxy, each share of stock entitling the holder to one vote, and the person who shall receive votes representing at least a majority of stock in value and number shall be declared the agent for the purposes hereinafter provided; and whenever any of the share- holders of the association shaU, after the election of such agent, have executed and filed a bond to the satisfaction of the Comptroller of the Currency, conditioned for the payment and discharge in full of each and every claim that may thereafter be proved and allowed by and before a competent court, and for the faithful performance of all and sin- gular the duties of such trust, the Comptroller and the receiver shall thereupon transfer and deliver to such agent all the undivided or uncol- lected or other assets of such association then remaining in the hands or subject to the order and control of said Comptroller and said receiver, or either of them; and for this purpose said Comptroller and said receiver are hereby severally empowered and directed to execute any deed, assignment, transfer, or other instrument in writing that may be neces- sary and proper; and upon the execution and delivery of such instru- ment to the said agent the said Comptroller and the said receiver shall by virtue of this act be discharged from any and all liabilities to such association and to each and all the creditors and shareholders thereof. 162. Duties oe' Shareholdbks' Aobnt. — Sec. 3 of the act of June 30, 1876, as amended by acts of August 3, 1892, and March 2, 1897, pro- vides : IFpon receiving such deed, assignment, transfer, or other instru- ment, the person elected such agent shall hold, control, and dispose of the assets and property of such association which he may receive under the terms hereof for the benefit of the shareholders of such association, and he may in his own name, or in the name of such association, sue and be sued and do all other lawful acts and things necessary to finally set- tle and distribute the assets and property in his hands, and may sell, compromise, or compound the debts due to such association, with the consent and approval of the circuit or district court of the United States for the district where the business of such association was carried on, and shall at the conclusion of his trust render to such district or circuit court a full account of all his proceedings, receipts, and expenditures aa such agent, which court shall, upon due notice, settle and adjust such accounts and discharge said agent and the sureties upon said bond. And in case any such agent so elected shall refuse to serve, or die, resign, or be removed, any shareholder may call a meeting of the share- holders of such association in the town, city, or village where the busi-, ness of the said association was carried on, by giving notice thereof for thirty days in a newspaper published in said town, city, or village, or if no newspaper is there published, in the newspaper published nearest thereto, at which meeting the shareholders shall elect an agent, voting by ballot, in person or by proxy, each share of stock entitling the holder to one vote, and when such agent shall have received votes represent- ing at least a majority of the stock in value and number of shares, and shall have executed a bond to the shareholders conditioned for the faith- ful performance of his duties, in the penalty fixed by the shareholders ITATIONAL-BANK AOT. 89 at said meeting, with two sureties, to be approved by a judge of a court of record, and file said bond in the office of the clerk of a court of record in the county where the business of said association was car- ried on, he shall have all the rights, powers, and duties of the agent first elected as hereinbefore provided At any meeting held as herein- before provided administrators or executors of deceased shareholders may act and sign as the decedent might have done if living, and guar- dians of minors and trustees of other persons may so act and sign for their ward or wards or cestui que trust. The proceeds of the assets or property of any such association which may be undistributed at the time of such meeting or may be subsequently received shall be distrib- uted as follows : " First. To pay the expenses of the execution of the trust to the date of such payment. " Second. To repay any amount or amounts which have been paid in by any shareholder or shareholders of such association upon and by reason of any and all assessments made upon the stock of such associa- tion by the order of the Comptroller of the Currency in accordance with the provisions of the statutes of the United States ; and " Third. The balance ratably among such stockholders, in proportion to the number of shares held and owned by each. Such distribution shall be made from time to time as the proceeds shall be received and as shall be deemed advisable by the said Comptroller or said agent." 163. Illegal Peepekencb of Oeeditoes. (Sec. 5242.) All trans- fers of the notes, bocds, bills of exchange, or other evidences of debt owing to any national banking association, or of deposits to its credit; all assignments of mortgages, sureties on real estate, or of judgments or decrees in its favor; all deposits of money, bullion, or other valuable thing for its use, or for the use of any of its shareholders or creditors; and all payments of money to either, made after the commission of an act of insolvency, or in contemplation thereof, made with a view to prevent the application of its assets in the manner prescribed by this chapter, or with a view to the preference of one creditor to another, except in payment of its circulating notes, shall be utterly null and void. No attachment, injunction, or execution shall be issued against such association or its property before final judgment in any suit, action, or proceeding in any State, county, or municipal court. 164. Cebditoe's Bill against Shaeeholdees. — Sec. 2 of the act of June 30, 1876, provides that when any national banking association shall have gone into liquidation under the provisions of section five thousand two hundred and twenty of said statutes, the individual lia- bility of the shareholders provided for by section fifty-one hundred and fifty-one of said statutes may be enforced by any creditor of such asso- ciation, by bill in equity in the nature of a creditor's bill, brought by such creditor on behalf of himself and of all other creditors of the association, against the shareholders thereof, in any court of the United States having original jurisdiction in equity for the district in which such association may have been located or established. 40 NATIONAL-BANK ACT. OHAPTEE BIGHT, OEIMBS, JUEISDICTION, ETC. 165. Penalty for improper countersigning or delivering circulation. 166. Penalty for pledging United States notes or bank circulation. 167. Penalty for imitating bank circula- tion for advertising purposes. 168. Penalty for mutilating circulation. 169. Penalty for counterfeiting circula- tion. 170. What are obligations of the United States. 171. Penalty for illegal possession or use of material for circulation. 172. Penalty for passing counterfeit cir- culation. 173. Penalty for taking unauthorized im- pressions of tools. 174. Penalty for having such impressions. 175. Penalty for dealing in counterfeit circulation. 176. Penalty for issuing circulation of expired associations. 177. False certification of checks. 178. Penalty for false certification of checks. 179. Penalty for official malfeasance. 180. Jurisdiction of circuit courts to en- join Comptroller. 181. General jurisdictioin of national- bank cases. 182. Sealed certificates of Comptroller are competent evidence. 183. Certified copy of organization cer- tificate as evidence. 184. Suits against United States officers or agents. 185. Indian Territory. 165. Penalty foe Impeopee Ootjntbesi&ning oe Dbliveeing OiECTJLATiON. (Sec. 5187.) No officer acting under the provisions of this Title shall countersign or deliver to any association, or to any other company or person, any circulating notes contemplated by this Title, except in accordance with the true intent and meaning of its provisions. Every officer who violates this section shall be deemed guilty of a high misdemeanor, and shall be fined not more than double the amount so countersigned and delivered, and imprisoned not less than one year and not more than fifteen years. 166. Penalty foe Pledging- United States Notes oe Bank CiECULATiON. (Sec. 5207.) No association shall hereafter offer or receive United States notes or national-bank notes as security or as collateral security for any loan of money, or for a consideration agree to withhold the same from use, or offer or receive the custody or promise of custody of such notes as security, or as collateral security, or consideration for any loan of money. Any association offending against the provisions of this section shall be deemed guilty of a misdemeanor, and shall be fined not more than one thousand dollars and a farther sum equal to one-third of the money so loaned. The officer or officers of any associ- ation who shall make any such loan shall be liable for a further sum equal to one-quarter of the money loaned; and any fine or penalty incurred by a violation of this section shall be recoverable for the benefit of the party bringing such suit. Sec. 12 of the act of July 12, 1882, provides that the provisions of this section shall apply to the United States certificates of gold and silver coin. 167. Penalty foe Imitating Bank Cieculation foe Adtbe- TisiNG PuEPOSBS. (Sbc. 5188.) It shall not be lawful to design, engrave, print, or in any manner make or execute, or to utter, issue, distribute, circulate, or use any business or professional card, notice, placard, circular, handbill, or advertisement in the likeness or simili- tude of any circulating note or other obligation or security of any bank- ing association organized or acting under the laws of the United States which has been or may be issued under this Title, or any act of Congress, or to write, print, or otherwise impress upon any such note, obligation, or security any business or professional card, notice, or advertise- ment, or any notice or advertisement of any matter or thing whatever. Every person who violates this section shall be liable to a penalty of one hundred dollarsj recoverable one-half to the use of the informer. NATIONAL-BANK ACT. 41 168. Penalty foe MuTrLATiwa Cibculation. (Sec. 6189.) Every person who mutilates, cuts, defaces, disfigures, or perforates with holes, or unites or cements together, or does any other thing to any bank bill, draft, note, or other eyidence of debt, issued by any national banking association, or who causes or procures the same to be done, with intent to render such bank bill, draft, note, or other evidence of debt unfit to be reissued by said association, shall be liable to a penalty of fifty dol- lars, recoverable by the association. 169. Penalty foe CouNTEEFEiTiNa Oieculation. (Sec. 5415.) Every person who iTalsely makes, forges, or counterfeits, or causes or pro- cures to be made, forged, or counterfeited, or willingly aids or assists in falsely making, forging, or counterfeiting, any note in imitation of, or pur- porting to be in imitation of, the circulating notes issued by any banking association now or hereafter authorized and acting under the laws of the United States ; or who passes, utters, or publishes, or attempts to pass, utter, or publish, any false, forged, or counterfeited note purporting to be issued by any such association doing a banking business, knowing the same to be falsely made, forged, or counterfeited, or who falsely alters, or causes or procures to be falsely altered, or willingly aids or assists in falsely altering any such circulating notes, or passes, utters, or pub- lishes, or attempts to pass, utter, or publish as true, any falsely altered or spurious circulating note issue, or purporting to have been issued, by any such banking association, knowing the same to be falsely altered or spurious, shall be imprisoned at hard labor not less than five years nor more than fifteen years, and fined not raore than one thousand dollars. 170. What aee Obligations of the Uniteb States. (Sec. 6413.) The words "obligation or other security of the United States" shall be held to mean all bonds, certificates of indebtedness, national- bank currency, coupons, United States notes. Treasury notes, fractional notes, certificates of deposit, bills, checks, or drafts for money drawn by or upon authorized officers of the United States, stamps and other representatives of value, of whatever denomination, which have been or may [be] issued under any act of Congress. 171. Penalty foe Illegal Possession oe use of Mateeial FOE Oieculation. (Sec. 5430.) Every person having control, cus- tody, or possession of any plate, or any part thereof, &om which has been printed, or which may be prepared by direction of the Secretary of the Treasury for the purpose of printing, any obligation or other security of the United States, who uses such plate, or knowingly suffers the same to be used for the purpose of printing any such or similar obligation, or other security, or any part thereof, except as may be printed for the use of the United States by order of the proper oflacer thereof; and every person who engraves, or causes or procures to be engraved, or assists in engraving, any plate in the likeness of any plate designed for the printing of such obligation or other security, or who sells any such plate, or who brings into the United States from any foreign place any such plate, except under the direction of the Sec- retary of the Tre~asury or other proper officer, or with any other intent, in either case, than that such plate be used for the printing of the obli- gations or other securities of the United States; or who has in his control, custody, or possession any metallic plate engraved after- the similitude of any plate from which any such obligation or other security has been printed, with intent to use such plate, or suffer the same to be used in forging or counterfeiting any such obligation or other security, or any part thereof; or who has in his possession or custody, except under authority from the Secretary of the Treasury or other proper- ofl&cer, any obligation or other security, engraved and printed after 42 UATIONAL-BANK AOT. the similitude of any obligation or other security issued under the authority of the United States, with intent to sell or otherwise use the same; and every person who prints, photographs, or in any other man- ner makes or executes, or causes to be printed, photographed, made, or executed, or aids in printing, photographing, making, or executing any engraving, photograph, print, or impression in the likeness of any such obligation or other security, or any part thereof, or who sells any such engraving, photograph, print, or impression, except to the United States, or who brings into the United States from any foreign place any such engraving, photograph, print, or impression, except by direc- tion of some proper officer of the United States, or who has or retains in his control or possession, after a distinctive paper has been adopted by the Secretary of the Treasury for the obligations and other securi- ties of the United States, any similar paper adapted to the making of any such obligation or other security, except under the authority of the Secretary of the Treasury or some other proper officer of the United States, shall be punished by a fine of not more than five thousand dollars, or by imprisonment at hard labor not more than fifteen years, or by both. 172. Penalty for Passing Oounteefeit Ciectjlation. (Sec. 5431.) Every person who, with intent to defraud, passes, utters, pub- lishes, or sells, or attempts to pass, utter, publish, or sell, or brings into the United States with intent to pass, publish, utter, or sell, or keeps in possession or conceals, with like intent, any falsely made, forged, counterfeited, or altered obligation, or other security of the United States, shall be punished by a fine or not more than five thousand dol- lars and by imprisonment at hard labor not more than fifteen years, 173. Penalty FOR Taking Unauthorized Impression of Tools. (Sec. 6432.) Every person who, without authority from the United States, takes, procures, or makes, upon lead, foil, wax, plaster, paper, or any other substance or material, an impression, stamp, or imprint of, from, or by the use of, any bedplate, bedpiece, die, roll, plate, seal, type, or other tool, implement, instrument, or thing used or fitted, or intended to be used, in printing, stamping, or impressing, or in making other tools, implements, instruments, or things, to be used, or fitted or intended to be used, in printing, stamping, or impressing any kind or description of obligation or other security of the United States, now authorized or hereafter to be authorized by the United States, or circu- lating note or evidence of debt of any banking association under the laws thereof, shall be punished by imprisonment at hard labor not more than ten years, or by a fine of not more than five thousand dollars, or both. 174. Penalty for Having such Impressions. (Sec. 5433.) Every person who, with intent to defraud, has in his possession, keeping, custody, or control, without authority from the United States, any imprint, stamp, or impression, taken or made upon any substance or material whatsoever, of any tool, implement, instrument, or thing used, or fitted, or intended to be used for any of the purposes mentioned in the preceding section; or who, with intent to defraud, sells, gives, or delivers any such imprint, stamp, or impression to -any other person, shall be punished by imprisonment at hard labor not more than ten years, or by a fine of not more than five thousand dollars. 175. Penalty for Dealing in Counterfeit Circulation. (Sec. 5434.) Every person who buys, sells, exchanges, transfers, receives, or delivers any false, forged, counterfeited, or altered obligation or other security of the United States^ or circulating note of any banking asso- ciation organized or acting under the laws thereof, which has been or may hereafter be issued by virtue of any act of Congress, with the intent that the same be passed, published, or used as true and genuine, shall KATIONAL-BANI ACT. 43 be imprisoned at hard labor not more than ten years, or fined not more than five thousand dollars, or both. 176. Penalty foe Issuing Oiboulation of Expired Associa- TlONSi (Sec. 5437.) In all cases where the charter of any corporation which has been or may be created by act of Congress has expired or may hereafter expire, if any director, officer, or agent of the corpora- tion, or any trustee thereof or any agent of such trustee, or any person having in his possession or under his control the property of the corpora- tion for the purpose of paying or redeeming its notes and obligations, knowingly issues, reissues, or utters as money, or in any other way know- ingly puts in circulation any bill, note, check, draft, or other security purporting to have been made by any such corporation whose charter has expired, or by any officer thereof, or purporting to have been made under authority derived therefrom, or if any person knowingly aids in any such act, he shall be punished by a fine of not more than ten thousand dollars, or by imprisonment not less than one year nor more than five years, or by both such fine and imprisonment. But nothing herein shall be construed to make it unlawful for any person, not being such director, officer, or agent of the corporation, or any trustee thereof, or any agent of such trustee, or any person having in his possession or under his control the property of the corporation for the purpose here- inbefore set forth, who has received or may hereafter receive such bill, note, cheek, draft, or other security, bona fide and in the ordinary trans- actions of business, to utter as money and otherwise circulate the same. 177. False Certification of Checks. (Sbo. 5208.) It shall be unlawful for any officer, clerk, or agent of any national banking associ- ation to certify any check drawn upon the association unless the person or company drawing the check has on deposit with the association, at the time such check is certified, an amount of money equal to the amount specified in such check. Any check so certified by duly authorized officers shall be a good and valid obligation against the association ; but the act of any officer, clerk, or agent of any associa- tion, in violation of this section, shall subject such bank to the liabili- ties and proceedings on the part of the Comptroller as provided for in section fifty-two hundred and thirty-four. 178. Penalty for False Certification of Checks. — Sec. 13 of the act of July 12, 1882, provides that any officer, clerk, or agent of any national banking association who shall willfully violate the provi- sions of section fifty- two hundred and eight of the Eevised Statutes of the United States, or who shall resort to any device, or receive any ficti- tious obligation, direct or collateral, in order to evade the provisions thereof, or who shall certify checks before the amount thereof shall have been regularly entered to the credit of the dealer upon the books of the banking association, shall be deemed guilty of a misdemeanor and shall, on conviction thereof in any circuit or district court of the United States, be fined not more than five thousand dollars, or shall be impris- oned not more than five years, or both, in the discretion of the court. 179. Penalty foe Official Malfeasance. (Sec. 5209.) Every president, director, cashier, teUer, clerk, or agent of any association who embezzles, abstracts, or willfully misapplies any of the moneys, funds, or credits of the association, or who, without authority from the directors, issues or puts in circulation apy of the notes of the association ; or who, without such authority, issues or puts forth any certificate of deposit, draws any order or bill of exchange, makes any acceptance, assigns any note, bond, draft, bill of exchange, mortgage, judgment, or decree; or who makes any false entry in any book, report, or statement of the association, with intent, in either case, to injure or defraud the associa- 44 NATIONAL-BANK AOT. tion 6T any other company, body politic or corporate, or any individual person, or to deceive any officer of the association or any agent appointed to examine the affairs of any such association; and every person who with like intent aids or abets any officer, clerk, or agent in any violation of this section, shall be deemed guilty of a misdemeanor, and shall be imprisoned not less than five years nor more than ten. 180. Jurisdiction op Circuit Courts to Enjoin Oompteol- LER. (Sec. 629.) The circuit courts shall have original jurisdiction of all suits brought by any banking association established in the dis- trict for which the court is held, under the provisions of Title " The National Banks," to enjoin the Comptroller of the Currency, or any receiver acting under his direction, as provided by said Title. 181. General Jurisdiction of National-Bank Cases. — Sec. 4 of the act of July 12, 1882, provides that the jurisdiction for suits hereafter brought by or against any association established under any law providing for national banking associations, except suits between them and the CTnited States or its officers and agents, shall be the same as, and not other than, the jurisdiction for suits by or against banks not organized under any law of the United States which do or might do banking business where such national banking associations may be doing business when such suits may be begun. And all laws and parts of laws of the United States inconsistent with this proviso be, and the same are hereby, repealed. Sec. 4 of the act of March 3, 1887, provides that all national banking associations established under the laws of the United States shall, for the purposes of all actions by or against them, real, personal, or mixed, and all suits in equity, be deemed citizens of the States in which they are respectively located; and in such cases the circuit and district courts shall not have juris- diction other than such as they would have in cases between individual citizens of the same State. The provisions of this section shall not be held to affect the jurisdiction of the courts of the United States in cases commenced by the United States or by direction of any officer thereof, or cases for winding up the affairs of any such bank. 182. Sealed Certificates of Comptroller are Competent Evidence. (Seo. 884.) Every certificate, assignment, and conveyance executed by the Comptroller of the Currency, in pursuance of law, and sealed with his seal of office, shall be received in evidence in all places and courts ; and all copies of papers in his office, certified by him and authenticated by the said seal, shall in all cases be evidence equally with the originals. An impression of such seal directly on the paper shall be as valid as if made on wax or wafer. 183. Certified Copt of Organization Certificate as Evi- dence. (Sec. 886.) Copies of the organization certificate of any national banking association, duly certified by the Comptroller of the Currency and authenticated by his seal of office, shall be evidence in all courts and places within the jurisdiction of the United States of the existence of the association and of every matter which could be proved by the production of the original certificate. 184. Suits against United States Officers or Agents. (Sec. 380.) All suits and proceedings arising out of the provisions of law governing national banking associations, in which the United States or any of its officers or agents shall be parties, shall be conducted by the district attorneys of the several districts under the direction and super- vision of the Solicitor of the Treasury. 185. Indian Territory.— Sec. 31 of the Act of May 2, 1890, provides that all laws relatingtonational banking associations shall have the same force and effect in Indian Territory as elsewhere in the United States. NATIONAL-BANK ACT. 45 OHAPTEE NINE. TRUST COMPANIES, ETC., DISTRICT OF COLUMBIA. 186. ProviBion for organization. 187. Organization certificate of company. 188. Charter obtained from District Com- missioners. 189. Notice of intention to apply for charter. 190. Charter filed with recorder of deeds for the District. 191. Trust companies under Comptroller's supervision. 192. Powers of these companies. 193. Competent to act as trustee, etc. 194. Qualifications of such trustee, etc. 195. Security for faithful performance of trust. 196. Privileges extended to existing cor- porations. 197. Real estate. 198. Period of corporation's existence. 199. Provisions relating to capital stock. 200. Enforcement of subscriptions to stock. 201. Annual report to Comptroller. 202. Tax on gross earnings. 203. Liability for failure to report. 204. 205. 206. 207. 209. 210. 211. 212. 213. 214. 215. 216. 217. 218. 219. 220. Perjury and larceny. Transfer of stock. Liability of stockholders. Money payment of capital stock required. Number and election of directors. Appointment of officers. By-laws. Directors liable for payment of un- earned dividends. Directors' liability may be avoided. Responsibility of directors for excess liabilities. Trustee, etc., not liable on stock assessment. Increase of capital. Certified copy of incorporation cer- tificate competent evidence. No bond or otlier security required of trust companies. District supreme court has jurisdic- tion of trust companies. All similar District corporations sub- ject to this act. Provisions for amendment. 186. Provision for Organization. — The act of October 1, 1890, sec. 1, provides that corporations may be formed within the District of Columbia for the purposes hereinafter mentioned in the following man- ner: Any time hereafter any number of natural persons, citizens of the United States, not less than twenty-five, may associate themselves together to form a company for the purpose of carrying on in the Dis- trict of Columbia any one of the three classes of business herein speci- fied, to wit: First. A safe deposit, trust, loan, and mortgage business. Second. A title insurance, loan, and mortgage business. Third. A security, guaranty, indemnity, loan, and mortgage busi- ness : Provided, That the capital stock of any of said companies shall not be less than one million of dollars: Provided further, That any of said companies may also do a storage business when their capital stock amounts to the sum of not less than one million two hundred thousand dollars. 187. Organization CERTtPicATE of Company. (Sec. 2.) That such persons shall, under their hands and seals, execute, before some oflflcer in said District competent to take tjie acknowledgment of deeds, an organization certificate, which shall specifically state — First. Title. — The name of the corporation. Second. Purposes. — ^The purposes for which it is formed. Third. Period of existence. — ^The term for which it is to exist, which shall not exceed the term of fifty years, and be subject to alteration, amendment, or repeal by Congress at any time. Fourth. Officers. — The number of its directors, and the names and residences of the officers who for the first year are to manage the affairs of the company. Fifth. Capital stock. — ^The amount of the capital stock and its subdi- vlsioii into shares. 46 national-bank act. 188. Ohaetee Obtained from Disteict Commissionees, (Sec. 3.) That this certificate shall he presented to the Commissioners of the District, who shall have power and discretion to grant or to refiise to said persons a charter of incorporation upon the terms set forth in the said certificate and the provisions of this act, 189. Notice op Intention to Apply for Charter. (Sec, 4.) That previous to the presentation of the said certificate to the said Com- missioners notice of the intention to apply for such charter shall be inserted in two newspapers of general circulation printed in the District of Columbia at least four times a week for three weeks, setting forth briefly the name of the proposed company, its character and object, the names of the proposed corporators, and the intention to make appli- cation for a charter on a specified day, and the proof of such publication shall be presented with said certificate when presentation thereof is made to said Commissioners. 190. Charter Filed with Eecoedee op Deeds for the Dis- trict. (Sec. 5.) That if the charter be granted as aforesaid it, together with the certificate of the Commissioners granting the same indorsed thereon, shall be filed for record in the ofiice of the recorder of deeds for the District of Columbia, and shall be recorded by him. On the filing of the said certificate with the said recorder of deeds as herein provided, approved as aforesaid by the said Commissioners, the per- sons named therein and their successors shall thereupon and thereby be and become a body corporate and politic, and as such shall be vested with all the powers and charged with all the liabilities conferred upon and imposed by this act upon companies organized under the provisions hereof: Provided, however, That no corporation created and organized under the provisions hereof, or availing itself of the provisions hereof as provided in section eleven, shall be authorized to transact the business of a trust company, or any business of a fiduciary character, until it shall have filed with the Comptroller of the Currency a copy of its cer- tificate of organization and charter and shaU have obtained from him and filed the same for record with the said recorder of deeds a certificate that the capital stock of said company has been paid in and the deposit of securities made with said Comptroller in the manner and to the extent required by this act. 191. Trust Companies under Comptroller's Supertision. (Sec, 6.) That all companies organized hereunder, or which shall under the provisions hereof become entitled to transact the business of a trust company, shall report to the Comptroller of the Currency in the manner prescribed by sections fifty-two hundred and eleven, fifty-two hundred and twelve, and fifty-two hundred and thirteen, Revised Statutes of the United States, in the case of national banks, and all acts amendatory thereof or supplementary thpreto, and with similar provisions for com- pensating examiners, and shall be subject to like penalties for failure to do so. The Comptroller shall have and exercise the same visitorial powers over the affairs of the said corporation as is conferred upon him by section fifty-two hundred and forty of the Revised Statutes of the United States in the case of national banks. He shall also have power, when in his opinion it is necessary, to take possession of any such com- pany for the reasons and in the manner and to the same extent as are pro- vided in the laws of the United States with respect to national banks. 192. Powers op These Companies, (Sec, 7.) That all companies organized under this act are hereby declared to be corporations pos- sessed of the powers and functions of corporations generally, and ^all have power — NATIONAL-BANK ACT. 47 First. Contracts. — To make contracts. Second. Suits. — To sue and be sued, implead and be impleaded, in any court as fully as natural persons. Third. Seal, — To make and use a common seal and alter the same at pleasure. Fourth. Looms. — To loan money. Fifth. Special powers. — ^When organized under subdivision one of the first section of this act to accept and execute trusts of any and every description which may be committed or transferred to them, and to accept the ofi&ce and perform the duties of a receiver, assignee, execu- tor, administrator, guardian of the estates of minors, with the consent of the guardian of the person of such minor, and committee of the estates of lunatics and idiots whenever any trusteeship or any such office or appointment is committed or transferred to them, with their consent", by any person, body politic or corporate, or by any court in the District of Columbia, and all such companies organized under the first subdivision of section one of this act are further authorized to accept deposits of money for the purposes designated herein upon such terms as may be agreed upon from time to time with depositors, and to act as agent for the purpose of issuing or countersigning the bonds or obliga- tions of any corporation, association, municipality, or State, or other public authority, and to receive and manage any sinking fund on any such terms as may be agreed upon, and shall have power to issue its debenture bonds upon deeds of trust or mortgages of real estate to a sum not exceeding the face value of said deeds of trust or mortgages, and which shall not exceed fifty per centum of the fair cash value of the real estate covered by said deeds or mortgages, to be ascertained by the Comptroller of the Currency. But no debenture bonds shall be issued until the securities on which the same are based have been placed in the actual possession of the trustee named in the debenture bonds, who shall hold said securities until all of said bonds are paid; and when organized under the second subdivision of the first section of this act said company is authorized to insure titles to real estate and to transact generally the business mentioned in said subdivision; and when organized under the third subdivision of section one of this act said company is hereby authorized, in addition to the loan and mort- gage business therein mentioned, to secure, guaranty, and insure indi- viduals, bodies politic, associations, and corporations against loss by or through trustees, agents, servants, or employees, and to guaranty the faithful performance of contracts and of obligations of whatever kind entered into by or on the part of any person or persons, association, corporation or corporations, and against loss of every kind : Provided, That any corporation formed under the provisions of this act when acting as trustee shall be liable to account for the amounts actually earned by the moneys held by it in trust in addition to the principal so held; but such corporation may be allowed a reasonable compensation for services performed in the care of the trust estate. 193. Competent to Act as Trustee, etc. (Sec. 8.) That in all cases in which application shall be made to any court in the District of Columbia, or wherever it becomes necessary or proper for said court to appoint a trustee, receiver, administrator, guardian of the estate of a minor, or committee of the estate of a lunatic, it shall and may be lawful for said court (but without prejudice to any preference in the order of any such appointments required by existing law) to appoint any such company organized under the first subdivision of section one of this act, with its assent, such trustee, receiver, administrator, ai893— 03 4 48 NATIONAL-BANK AOT. committee, or guardian, with, the consent of the guardian of the person of such minor : Provided, however, That no court or judge who is an owner of or in any manner financially interested in the stock or busi- ness of such corporation shall commit by order or decree to any such corporation any trust or fiduciary duty. 194. Qualifications of Such Trustee, etc. (Sec. 9.) That whenever any corporation operating under this act shall be appointed such trustee, executor, administrator, receiver, assignee, guardian, or committee as aforesaid, the president, vice-president, secretary, or treas- urer of said company shall take the oath or affirmation now required by law to be made by any trustee, executor, receiver, assignee, guardian, or committee. 195. Security foe Faithful Performance oip Trust. (Sec. 10.) That when any court shall appoint the said company a trustee, receiver, administrator, or such guardian, or committee, or shall order the deposit of money or other valuables with said company, or where any individual or corporation shall appoint any of said companies a trustee, executor, assignee, or such guardian, the capital stock of said company subscribed for or taken, and all property owned by said company, together with the liability of the stockholders and of&cers as herein provided, shall be taken and considered as the security required by law for the faith- ful performance of its duties, and shall be absolutely liable in case of any default whatever. 196. Privileges Extended to Existing Corporations. (Sec, 11.) That any safe deposit company, trust company, surety or guaranty company, or title-insurance company now incorporated and operating under the laws of the United States or of the District of Columbia, or any of the States, and now doing business in said District, may avail itself of the provisions of this act on filing in the oflflce of the recorder of deeds of the District of Columbia, or with the Comptroller of the Currency, a certificate of its intention to do so, which certificate shall specify which one of the three classes of business set out in section one it will carry on, and shall be verified by the oath of its president to the effect that it has in every respect complied with the requirements of existing law, especially with the provisions of this act; that its capital stock is paid in as provided in section twenty-one of this act and is not impaired, and thereafter such company may exercise all powers and perform all duties authorized by any one of the subdivisions of section one of this act in addition to the powers now lawfully exercised by such company. 197. Eeal Estate. (Sec. 12.) That any company operating under this act may lease, purchase, hold, and convey real estate, not exceeding in value five hundred thousand dollars, and such in addition as it may acquire in satisfaction of debts due the corporation, under sales, decrees, judgments, and mortgages. But no such association shall hold the possession of any real estate under foreclosure of mortgage, or the title and possession of any real estate purchased to secure any debts due to it, for a longer period than five years. 198. Period of Corporations' Existence. (Sec. 13.) That *ihe charters for incorporations named in this act may be made perpetual, or may be limited in time by their provisions, subject to the approval of Congress. 199. Provisions Eelating to Capital Stock. (Sec. 14.) That the capital stock of every such company shall be at least one million dollars, and at least fifty per centum thereof must have been paid in, \tl cash or by the transfer of assets as bereinafter provided in section NATIONAL-BAlsrK AOT. 49 twenty-one of this act, before any such company stall be entitled to transact business as a corporation, except with its own members, and before any company organized hereunder shall be entitled to transact the business of a trust company, or to become and act as an adminis- trator, executor, guardian of the estate of a minor, or undertake any other kindred fiduciary duty, it shall deposit, either in money or in bonds, mortgages, deed of trust, or other securities equal in actual value to one-fourth of the capital stock paid in, with the Comptroller of the Currency, to be kept by him upon the trust and for the purposes hereinafter provided ; and the said Comptroller may from time to time require an additional deposit from any such company, to be held upon and for the same trust and purposes, not exceeding, however, in value one-half the paid-in capital stock ; and the said Comptroller shall not issue to any corporation the certificate heretofore provided for until said deposit with him of securities required by this section. Within one year after the organization of any corporation under the provisions of this act, or after any corporation heretofore existing shall have availed itself of the powers and rights given by this act in the manner herein provided for, its entire capital stock shall have been paid in. 200. BWFOKCEMENT OF SUBSCEIPTIONS TO StOGK. (SeC. 15.) That the capital stock of every such company shall be divided into shares of one hundred dollars each. It shall be lawful for such com- pany to call for and demand from the stockholders, respectively, all sums of money by them subscribed, at such time and in such propor- tions as its board of directors shall deem proper, within the time speci- fied in section fourteen, and it may enforce payment by all remedies provided by law ; and if any stockholder shall refuse or neglect to pay any installment as required by a resolution of the board of directors, after thirty days' notice of the same, the said board of directors may sell at public auction, to the highest bidder, so many shares of said stock as shall pay said installnient, under such general regulations as may be adopted in the by-laws of said company, and the highest bidder shall be taken to be the person who offers to purchase the least number of shares for the assessment due. 201. Annual Eepoet to Compteollbe. (Sec. 16.) That every such company shall annually, within twenty days after the first of January of each year, make a report to the Comptroller of the Cur- rency, which shall be published in a newspaper in the District, which shall state the amount of capital and of the proportion actually paid, the amount of debts, and the gross earnings for the year ending Decem- ber thirty-first then next previous, together with their expenses, which report shall be signed by the president and a majority of the directors or trustees, and shall be verified by the oath of the president, secretary, and at least three of the directors or trustees. 202. Tax on Geoss Baenings. (Sec . 16). And said company shall pay to the District of Columbia, in lieu of personal taxes for each next ensuing year, one and a half per centum of its gross earnings for the preceding year, shown by said verified statement, which ainount shall be payable to the collector of taxes at the times and in the manner that other taxes are payable. 203. Liability foe Failtjeb to Repoet. (8eo. 17.) That if any company fails to comply with the provisions of the preceding section, all the directors or trustees of such company shall be jointly and sev- erally liable for the debts of the company then existing, and for all that shall be contracted before such report shall be made : Provided, That is case of failure of the company in any year to comply with the pro- 50 NATIONAL-BANK ACT. visions of section sixteen of this act, and any of the directors shall, on or before January fifteenth of such year, file his written request for such compliance with the secretary of the company, the Comptroller of the Currency, and the recorder of deeds of the District of Columbia, such director shall be exempt from the liability prescribed in this section. 204; Perjury and Larceny. (Sec. 18.) That any willful false swearing in regard to any certificate or report or public notice required by the provisions of this act shall be perjury, and shall be punished as such according to the laws of the District of Columbia. And any mis- appropriation of any of the money of any corporation or company formed undcir this act, or any money, funds, or property intrusted to it, shall be held to be larceny, and shall be punished as such under the laws of said District. 205. Transfer op Stock. (Sec. 19.) That the stock of such com- pany shall be deemed personal estate, and shall be transferable only on the books of such company iu such manner as shall be prescribed by the by-laws of the company; but no shares shall be transferable until all previous caUs thereon shall have been fully paid, and the said stock shall not be taxable, in the hands of individual owners, the tax on the capital stock, gross earnings of the company hereinbefore provided being in lieu of other personal tax. All certificates of the stock of any company organized under this act shall show upon their face the par value of each share and the amount paid thereon. 206. Liability OP Stockholders. (Sec. 20.) That allstockholders of every company incorporated under this act, or availing itself of its provisions under section eleven, shall be severally and individually lia- ble to the creditors of such company to an amount equal to and in addition to the amount of stock held by them, respectively, for all debts and contracts made by such company. 207. Money Payment op Capital Stock Eequieed. (Sec. 21.) That nothing but money shall be considered as payment of any part of the capital stock, except that in the case of any company now doing business in the District of Columbia in any of the classes herein pro- vided for, or under any act of Congress or by virtue of the laws of any of the States, and which company has actually received full payment ia money of at least fifty per centum of the capital stock required by this act and which company desires to obtain a charter under this act, all the assets or property may be received and considered as money, at a value to be appraised and fixed by the Comptroller of the Currency: Provided, That all such assets and property are also transferred to and are thereafter owned by the company organized under this act. 208. Number and Election op Directors. (Sec. 22.) That the stock, property, and concerns of such company shall be managed by not less than nine nor more than thirty directors or trustees, who shall, respectively, be stockholders and at least one-half residents and citizens of the District of Columbia, and shall, except the first year, be annually elected by the stockholders at such time and place and after such pub- lished notice as shall be determined by the by-laws of the company, and said directors or trustees shall hold until their successors are elected and qualified. 209. Appointment oS Opficers. (Sec. 23.) That there shall be a president of the company, who shall be a director, also a secretary and a treasurer, all of whom shall be chosen by the directors or trustees: Provided, That only one of the above-named oflflces shall be held by the , same person at the same time. Subordinate officers may be appointed by the directors or trustees, and all such officers may be NATIONAL-BANK ACT. 51 required to give such security for tlie faithftil performance of the duties of their office as the directors or trustees may require. 210. By-laws. (Sec. 24.) That the directors or trustees shall have power to make such by-laws as they deem proper for the management or disposal of the stock and business affairs of such company, not inconsistent with the provisions of this act, and prescribing the duties of officers and servants that may be employed, for the appointment of all officers, and for carrying on all kinds of business witMu the objects and purposes of such company. 211. DiBBCTORS Liable foe Payment op TTneaened Divi- dends. (Sec. 25.) That if the directors or trustees of any company shall declare or pay any dividend, the payment of which would render it insolvent, or which would create a debt against such company, they shall be jointly and severally liable as guarantors for all of the debts of the company then existing, and for all that shall be thereafter con- tracted, while they shall, respectively, remain in office. 212. DiRECTOEs' Liability may be Avoided. (Sec. 26.) That if any of the directors or trustees shall object to declaring of such divi- dend or the payment of the same, and shall at any time before the time fixed for the payment thereof file a certificate of their objection in writ- ing with the secretary of the company and with the recortier of deeds of the District they shall be exempt from liability prescribed in the pre- ceding section. 213. Eesponsebility op Dieectoes poe Excess Liabilities. (Sec. 27.) That if the liabilities of any company shall at any time exceed the amount of the fair cash value of the assets, the directors or trustees of such company assenting thereto shall be personally and individually liable for such excess to the creditors of the company after the addi- tional liability of the stockholders has been enforced. 214. Trustee, etc., not Liable on Stock Assessment. (Sec. 28.) That no person holding stock in such company as executor, adminis- trator, guardian, or trustee shall be personally subject to any liability as stockholder of such company, but the estate and funds in the hands of such executor, administrator, guardian, or trustee shall be liable in like manner and to the same extent as the testator or intestate or the ward or the person interested in such trust fund would have been if he had been living and competent to act and hold the stock in his own name. 215. Inceease op Capital. (Sec. 29.) That any corporation which may be formed under this chapter may increase its capital stock by complying with the provisions of this chapter to any amount which may be deemed sufficient and proper for the purposes of the corpora- tion. 216. Ceetified Copy op Incoepoeation Ceetipicate Compe- tent Evidence. (Sec. 30.) That a copy of any certificate of incor- poration filed in pursuance of this chapter, certified by the recorder of deeds to be a true copy and the whole of such certificate, shall be received in all courts and places as presumptive legal evidence of the facts therein stated. 217. No Bond oe Othee Sectteitt Eeqitibed op Teust Com- panies. (Sec. 31.) That no bond or other collateral security, except as hereinafter stated, shall be required from any trust company incor- porated under this act for or in respect to any trust, nor when appointed trustee, guardian, receiver, executor, or administrator, with or without the will annexed, committee of the estate of a lunatic or Idiot, or other fiduciary appointment; but the capital stock subscribed for or taken. 52 NATIONAL-BANK ACT. and all property owned by said company and the amount for which said stockholders shall be liable in excess of their stock, shall be taken and considered as the security required by law for the faithful performance of its duties and shall be absolutely liable in case of any default what- ever; and in case of the insolvency or dissolution of said company the debts due from the said company as trustee, guardian, receiver, execu- tor, or administrator, committee of the estate of lunatics, idiots, or any other fiduciary appointment, shall have a preference. 218. District Stjpeemb Court Has Jurisdiction op Trust Com- panies. (Seo. 32.) That the supreme court of the District of Columbia, or any justice thereof, shall have power to make orders respecting such company whenever it shall have been appointed trustee, guardian, receiver, executor, or administrator, with or without the will annexed, committee of the estate of a lunatic, idiot, or any other fiduciary, and require the said company to render all accounts which might lawftilly be made or required by any court or any justice thereof if such trustee, guardian, receiver, executor, administrator, with or without the will annexed, committee of the estate of a lunatic or idiot, or fiduciary were a natural person. And said court, or any justice thereof, at any time, on application of any person interested, may appoint some suit- able person to examine into the affairs and standing of such companies, who shall make a fuU report thereof to the court, and said court, or any justice thereof, may at any time, in its discretion, require of said company a bond with sureties or other securities for the faithful per- formance of its obligations, and such sureties or other security shall be liable to the same extent and in the same manner as if given or pledged by a natural person. 219. All Similar District Corporations Subject to this Act. (Sec. 33.) That no corporation or company organized by virtue of the laws of any of the States of this Union and having its principal place of business within the District of Columbia, shall carry on, in the District of Columbia, any of the kinds of business named in this act without strict compliance in all particulars with the provisions of this act for the government of such corporations formed under it, and each one of the of&cers of the corporation or company so offending shall be punished by fine not exceeding one thousand dollars, or imprisonment in some State's prison not exceeding one year, or by both fine and imprisonment, in the discretion of the court. This section shall not takei effect till six months after the approval of this act. 220. Provisions for Amendment. (Sec. 34.) That Congress may at any time alter, amend, or repeal this act, but any such amendment or repeal shall not, nor shall the dissolution of any company formed under this act, take away or impair any remedy given against such corporation, its stockholders or officers, for any liability or penalty which shall have been previously incurred: Provided, That the courts of the District of Columbia shall not have power to appoint any trustee, trustees, guardians, receivers, or other trustee of a fund or property located outside of the District of Columbia, or belonging to a corpora- tion or person having a legal residence or location outside of aaid District. NATIONAL-BANK AOT. 53 CHAPTER TEN. GOTEKNMBNT DBPOSITAEIBS. 221. Designation and duties of public depositaries. 222. Deposit and witlidrawal of public moneys. 223. Provisions for deposits by certain postmasters. 224. Penalty for misajjplication of money- order funds. 225. Penalty for unautborized deposit of public money. 226. Penalty for unauthorized receipt or use of public money. 221. Designation and Duties op Public Depositaries. (Sec. 5153.) All national, banking associations, designated for that purpose by the Secretary of the Treasury, shall be depositaries of public money, except receipts from customs, under such regulations as may be pre- scribed by the Secretary; and they may also be employed as financial agents of the Government; and they shall perform all such reason- able duties, as depositaries of public moneys and financial agents of the Government, as may be required of them. The Secretary of the Treasury shall require the associations thus designated to give satis- factory security, by the deposit of United States bonds and otherwise, for the safe-keeping and prompt payment of the public money deposited with them, and for the faithful performance of their duties as financial agents of the Government. And every association so designated as receiver or depositary of the public money shall take and receive at par all of the national currency bills, by whatever association issued, which have been paid into the Government for internal revenue, or for loans or stocks. 222. Deposit and Withdea"WAl of Public Moneys. (Sec. 3620.) It shall be the duty of every disbursing offlcer having any public money intrusted to him for disbursement to deposit the same with the Treasurer or some one of the assistant treasurers of the United States, and to draw for the same only as it may be required for payments to be made by him in pursuance of law; and draw from the same only in favor of the persons to whom payment is made, and all transfers from the Treasurer of the United States to a disbursing ofScer shall be by draft or warrant on the Treasurer or an assistant treasurer of the United States. In places, however,- where there is no Treasurer or assistant treasurer, the Secretary of the Treasury may, when he deems it essential to the public interest, specially authorize in writing the deposit of such public money in any other public depository, or, in writing, authorize the same to be kept in any other manner and under such rules and regulations as he may deem most safe and effectual to facilitate the payments to public creditors. 223. Provisions pok Deposits by Certain Postmasters. (Sec. 3847.) Any postmaster, having public money belonging to the Govern- ment, at an oflflce within a county where there are no designated depos- itaries, treasurers of mints, or Treasurer or assistant treasurers of the United States, may deposit the same, at his own risk and in his offi- cial capacity, in any national bank in the town, city, or county where the said postmaster resides; but no authority or xjermission is or shall be given for the demand or receipt by the postmaster, or any other person, of interest, directly or indirectly, on any deposit made as herein described; and every postmaster who makes any such deposit shall report quarterly to the Postmaster-General the name of the bank where such deposits have been made, and also state the amount which may stand at the time to his credit. 54 national-bank aot. 224. Penalty foe Misapplication of Monet-Oedee Ftjitos. (Sec. 4046.) Every postmaster, assistant, clerk, or other person em- ployed in or connected with the business or operations of any money- order office who converts to his own use, in any way whatever, or loans, or deposits in any bank, except as authorized by this Title, or exchanges for other funds, any portion of the money-order funds, shall be deemed guilty of embezzlement, and any such* person, as well as every other person advising or participating therein, shall, for every such offense, be imprisoned for not less than six months nor more than ten years, and be fined in a sum equal to the amount embezzled; and any failure to pay over or produce any money-order funds intrusted to such person shall be taken to be prima facie evidence of embezzlement; and upon the trial of any indictment against any person for such embezzlement it shall be prima facie evidence of a balance against him to produce a transcript from the money-order account books of the Sixth Auditor. But nothing herein contained shall be construed to prohibit any post- master depositing, under the direction of the Postmaster-General, in a national bank designated by the Secretary of the Treasui-y for that purpose, to his own credit as postmaster, any money-order or other funds in his charge, nor prevent his negotiating drafts or other evi- dences of debt through such bank, or through United States disbursing officer, or otherwise, when instructed or required to do so by the Post- master-General for the purpose of remitting surplus money-order fiinds fi-om one post-offlce to another, to-be used in payment of money orders. Disbursing officers of the United States shall issue, under regulations to be prescribed by the Secretary of the Treasury, duplicates of lost cheeks drawn by them in favor of any postmaster on account of money- order or other public funds received by them from some other postmaster. 225. Penalty foe Unatjthoeizbd Deposit of Public Money. (Sec. 5488.) Every disbursing officer of the United States who deposits any public money intrusted to him in any place or in any manner, except as authorized by law, or converts to his own use in any way whatever, or loans with or without interest, or for any purpose not prescribed by law withdraws from the Treasurer or any assistant treasurer, or any authorized depository, or for any purpose not pre- scribed by law transfers or appKes any portion of the public money intrusted to him, is, in every such act, deemed guilty of an embezzle- ment of the money so deposited, converted, loaned, withdrawn, trans- ferred, or applied; and shall be punished by imprisonment with hard labor for a term not less than one year nor more than ten years, or by a fine of not more than the amount embezzled or less than one thousand dollars, or by both such fine and imprisonment. 226. Penalty foe Unatjthokized Eeceipt oe Use of Public Money. (Sec. 5497.) Every banker, broker, or other person not an authorized depositary of public moneys, who knowingly receives from any disbursing officer, or collector of internal revenue, or other agent of the United States, any public money on deposit, or by way of loan or accommodation, with or without interest, or otherwise than in payment of a debt against the United States, or who uses, transfers, converts, appropriates, or applies any portion of the public money for any purpose not prescribed by law, and every president, cashier, teller, director, or other officer of any bank or banking association, who vio- lates any of the provisions of this section, is guilty of an act of embez- zlement of the public money so deposited, loaned, transferred, used, converted, appropriated, or applied, and shall be punished as prescribed in section fifty-four hundred and eighty- eight. NATIONAL-BANK ACT. 55 CHAPTER ELEVEN. MISCELLANEOUS 227. Legal Tender and Lawful Money. — The following state- meiit concerning the legal-tender properties of money of the United States is based upon United States Eevised Statutes, sections 3585, 3586, 3587, 3588, 3589, and 3590, and the acts amendatory thereof and additional thereto : Gold coin, standard silver dollars, subsidiary silver, minor coins. United States notes, and Treasury notes of 1890 have the legal-tender quality as follows : Gold coin is legal tender for its nominal value when not below the limit of tolerance in weight; when below that limit it is legal tender in proportion to its weight; standard silver dollars and Treasury notes of 1890 are legal tender for all debts, public and private, except where otherwise expressly stipulated in th e contract ; subsidiary silver is legal tender to the extent of $10, minor coins to the extent of 25 cents, and United States notes for all debts, public and private, except duties on imports and interest on the public debt. Gold certificates, silver certificates, and national-bank notes are nonlegal-tender money. Both kinds of certificates, however, are receivable for all public dues, and national-bank notes are receivable for all public dues except duties on imports, and may be paid out for all public dues, except interest on the public debt. The term "lawful money" is understood to apply to every form of money which is endowed by law with the legal-tender quality. (See Opinions of Attorneys-General, vol. 17, p. 123.) 228. Miscellaneous Acts. — Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That The First National Bank of Annapolis, now located in the city of Annapolis and State of Maryland, is hereby authorized to change its location to the city of Baltimore, in said State. Whenever the stock- holders representing three-fourths of the capital of said bank, at a meeting called for that purpose, determine to make such change, the president and cashier shall execute a certificate, under the corporate seal of the bank, specifying such determination, and shall cause the same to be recorded in the office of the Comptroller of the Currency, and thereupon such change of location shall be effected, and the opera- tions of discount and deposit of said bank shall be carried on in the city of Baltimore. Sec. 2. That nothing in this act contained shall be so construed as in any manner to release the said bank from any liability or affect any action or proceeding in law in which the said bank may be a party or interested. And when such change shall have been determined upon, as aforesaid, notice thereof, and of such change, shall be published in two weekly papers in the city of Annapolis not less than four weeks. Sec. 3. That whenever the location of said bank shall have been changed from the city of Annapolis to the city of Baltimore, in accord- ance with the first section of this act, its name shall be changed to The Traders' National Bank of Baltimore, If the board of directors of said bank shall accept the new name by resolution of the board, and cause a copy of such resolution, duly authenticated, to be filed with the Comptroller of the Currency. Sec. 4. That all the debts, demands, liabilities, rights, privileges, and powers of The First National Bank of Annapolis shall devolve upon 56 NATIONAL-BANK ACT. The Traders' National Bank of Baltimore whenever such change of name is effected. Sec. 5. That this act shall take effect and be in force from and after its passage. Approved, June 7, 1872. Acts of a similar nature to the one preceding have been enacted by Congress for the following purposes: Authorizing The Manufacturers' National Bank of New York to change its location from the city of New York to the city of Brooklyn. (Approved July 27, 1868.) Authorizing The City National Bank of New Orleans, Louisiana, to change its name to The Germania National Bank of New Orleans, (Approved March 1, 1869.) Authorizing The Second National Bank of Plattsburgh, New York, to change its name to The Yilas National Bank of Plattsburgh. (Ap- proved March 1, 1869.) Authorizing The First National Bank of Delhi, New York, to change its location and name to The First National Bank of Port Jervis, New York. (Approved May 5, 1870.) Authorizing The First National Bank of Fort Smith, Arkansas, to change its location and .name to the First National Bank of Camden, Arkansas. (Approved July 1, 1870.) Authorizing the Jersey Shore National Bank, Pennsylvania, to change its location and name to The Williamsport National Bank, Penn- sylvania. (Approved December 22, 1870.) Authorizing the Worcester County National Bank of Blackstone, Massachusetts, to change its location and name to The Franklin National Bank, Massachusetts. (Approved February 9, 1871.) Authorizing The Farmers' National Bank of Fort Edward, New York, to change its location and name to The North Granville National Bank, New York. (Approved February 18, 1871.) Authorizing The Worthington National Bank of Cooperstown, New York, to change its location and name to The First National Bank of Oneonta, New York. (Approved February 27, 1871.) Authorizing The Warren National Bank of South Danvers, Massa- chusetts, to changeits name to The Warren National Bank of Peabody, Massachusetts. (Approved March 12, 1872.) Authorizing the First National Bank of Seneca, Illinois, to change its location and name to The First National Bank of Morris, Illinois. (Two acts, approved April 5, 1872, and June 18, 1874.) Authorizing The Eailroad National Bank of Lowell, Massachusetts, to change its location and name to The Eailroad National Bank of Boston, Massachusetts. (Approved May 31, 1872.) Authorizing The National Bank of Lyons, Michigan, to change its location and name to The Second National Bank of Ionia, Michigan. (Approved December 24, 1872.) Authorizing The East Chester National Bank of Mount Vernon, New York, to change its location and name to The German National Bank of Bvansville, Indiana. (Approved January 11, 1873.) Authorizing The First National Bank of Newnan, Georgia, to change its location and name to The National Bank of Commerce, Atlanta, Georgia. (Approved January 23, 1873.) Authorizing The First National Bank of Watkins, New York, to change its location and name to The First National Bank of Penn Yan, New York. (Approved February 19, 1873.) NATIONAL-BANK ACT. 57 Authorizing The National Bank of Springfield, Missouri, to change its name to The First National Bank of Springfield, Missouri. (Approved March 3, 1873.) Authorizing The Kansas Valley National Bank of Topeka, Kansas, to change its name to The First National Bank of Topeka, Kansas. (Ap- proved March 3, 1873.) Authorizing The First National Bank of Saint Anthony, Minnesota, to change its location and name to The Merchants' National Bank of Minneapolis Minnesota. (Approved Januarys, 1874.) Authorizing The Second National Bank of Havana, New York, to change its name to The Havana National Bank of Havana, New York. (Approved January 9, 1874.) Authorizing The Passaic County National Bank of Paterson, New Jersey, to change its name to The Second National Bank of Paterson, New Jersey. (Approved April 15, 1874.) Authorizing The Citizens' National Bank of Hagerstown, Maryland, to change its location and name to The Citizens' National Bank of Washington City, District of Columbia. (Approved May 1, 1874.) Authorizing The Irasburg National Bank of Orleans, at Irasburg, Vermont, to change its location and name to The Barton National Bank, Vermont. (Approved June 3, 1874.) Authorizing The Farmers' National Bank of Greensburg, Pennsyl- vania, to change its location and name to The Fifth National Bank of Pittsburg, Pennsylvania. (Approved June 23, 1874.) Authorizing The Citizens' National Bank of Sanbornton, New Hamp- shire to change its name to The Citizens' National Bank of Tilton, New Hampshire. (Approved February 19, 1875.) Authorizing The Second National Bank of Jamestown, New York, to change its name to The City National Bank of Jamestown, New York. (Approved March 3, 1875.) Authorizing The Second National Bank of Watkins, New York, to change its name to The Watkins National Bank, New York. (Approved March 3, 1875.) Authorizing The Slater National Bank of North Providence, Ehode Island, to change its name to The Slater National Bank of Pawtucket, Ehode Island. (Approved March 3, 1875.) Authorizing The Auburn City National Bank of Auburn, New York, to be consolidated with The First National Bank of Auburn, New York. (Approved March 3, 1875.) Authorizing The Miners' National Bank of Braidwood, Illinois, to change its location and name to The Commercial National Bank of Wilmington, Illinois. (Approved January 31, 1878.) Authorizing The Windham National Bank, Windham, Connecticut, to change its location to the village of Willimantic, Connecticut. (Ap- proved February 10, 1879.) Authorizing the National Bank of Commerce of Cincinnati, Ohio, to change its name to The National Lafayette and Bank of Commerce. (Approved A.pril 29, 1879.) Authorizing the City National Bank of Manchester, New Hampshire, to change its name to The Merchants' National Bank of Manchester. (Approved June 11, 1880.) Authorizing The Blue Hill National Bank of Dorchester, Massachu- setts, to change its location and name to the Blue Hill National Bank of Milton, Massachusetts. (Approved January 13, 1881.) Authorizing The First National Bank of Meriden, West Meriden, Connecticut, to change its name to The First National Bank of Meriden, Connecticut. (Approved March 1, 1881.) 58 NATIONAL-BANK ACT. Authorizing The National Mechanics' Banking Association of New York, New York, to change its name to Wall Street National Bank, (Approved February 14, 1882.) Authorizing The Lancaster National Bank of Lancaster, Massachu- setts, to change its location and name to The Lancaster National Bank of Clinton, Massachusetts. (Approved February 25, 1882.) Authorizing the National Bank of Kutztown, Pennsylvania, to change its location and name to The Keystone National Bank of Heading, Penu sylvania. (Approved June 27, 1882.) Joint resolution authorizing The National Bank of Winterset, Iowa, to change its name to The First National Bank of Winterset, Iowa. (Approved January 18, 1883.) Authorizing The Second National Bank of Xenia, Ohio, to increase its capital stock. (Ajjproved February 17, 1883.) Authorizing The First National Bank of West Greenville, Pennsyl- vania, to change its name to The First National Bank of Greenville, Pennsylvania. (Approved February 26, 1883.) Authorizing The West Waterville National Bank of Oakland, Maine, to change its title to The Messalonskee National Bank of Oakland, Maine. (Approved April 15, 1884.) Authorizing the Hillsborough National Bank, Ohio, to change its name to The X'irst National Bank of Hillsborough, Ohio. (Approved December 18, 1884.) Authorizing The Slater National Bank of North Providence, Rhode Island, to change its name. (Approved January 8, 1885.) Authorizing the First National Bank of Omaha, Nebraska, to increase its capital stock. (Approved January 10, 1885.) Authorizing The National Bank of Bloomington, Illinois, to change its name to the First National Bank of Bloomington, Illinois. (Approved January 27_, 1885.) Authorizing The Manufacturers' National Bank of New York to change its name to The Manufacturers' National Bank of Brooklyn, New York. Approved February 20, 1885.) Authorizing The Commercial National Bauk of Chicago, Illinois, to increase its capital stock, (Approved February 28, 1885.) Authorizing The First National Bank of Larned, Kansas, to increase its capital stock. (Approved March 3, 1885.) Authorizing The First National Bank of Fort Benton, Montana, to change its location and name. (Approved December 18, 1890.) Authorizing the National Safe Deposit Company, of Washington, to change its title to "The National Safe Deposit Savings and Trust Com- pany of thie District of Columbia." (Approved February 18, 1892). Authorizing a national bank at Chicago, Illinois, to establish a branch ofSce upon the grounds of the World's Columbian Exposition. (Ap- proved May 12, 1892.) Authorizing The First National Bank of Sprague, Washington, to change its location and name. (Approved March 20, 1896.) Authorizing the Interstate National Bank, of Kansas City, Kansas, to change its location. (Approved March 2, 1897.) Authorizing any bank or trust company located in the State of Mis- souri to conduct a banking office on the Louisiana Exposition grounds at St. Louis, Mo. (Approved March 3, 1901.) KATIONAL-BANK AOT. 59 CUERENCY ACT, APPROVED MARCH 14, 1900. An Act To define and fix the standard of value, to maintain the parity of all forms of money issued or coined by the United States, to refund the public debt, and for other purposes. Be it enacted hy the Senate and House of Representatvoes of the United States of America in Congress assembled^ That the dollar consisting of twenty -five and eight-tenths grains of gold nine-tenths fine, as estab- lished by section thirty-five hundred and eleven of the Revised Statutes of the United States, shall be the standard unit of value, and all forms of money issued or coined by the United States shall be maintained at a parity of value with this standard, and it shall be the duty of the Secretary of the Treasury to maintain such parity. Sec. 2. That United States notes, and Treasury notes issued under the Act of July fourteenth, eighteen hundred and ninety, when pre- sented to the Treasury for redemption, shall be redeemed in gold coin of the standard fixed in the first section of this Act, and in order to secure the prompt and certain redemption of such notes as herein provided it shall be the duty of the Secretary of the Treasury to set apart in the Treasury a reserve fund of one hundred and fifty million dollars in gold coin and bullion, which fund shall be used for such redemption purposes only, and whenever and as often as any of said notes shall be redeemed from said fund it shall be the duty of the Secretary of the Treasury to use said notes so redeemed to restore and maintain such reserve fund in the manner following, to wit: First, by exchanging the notes so redeemed for any gold coin in the general fund of the Ti-easury; second, by accepting deposits of gold coin at the Treasury or at any subtreasury in exchange for the United States notes so redeemed; third, by procuring gold coin by the use of said notes, in accordance with the provisions of section thirty -seven hun- dred of the Revised Statutes of the United States. If the Secretary of the Treasury is unable to restore and maintain the gold coin in the reserve fund by the foregoing methods, and the amount of such gold coin and bullion in said fund shall at any time fail below one hundred million dollars, then it shall be his duty to restore the same to the maximum sum of one hundred and fifty million dollars by borrowing money on the credit of the United States, and for the debt thus incurred to issue and sell coupon or registered bonds of the United States, in such form as he may prescribe, in denominations of fifty dol- lars or any multiple thereof, bearing interest at the rate of not exceed- ing three per centum per annum, payable quarterly, such bonds to be payable at the pleasure of the United States after one year from the date of their issue, and to be payable, principal and interest, in gold coin of the present standard value, and to be exempt from the pay- ment of all taxes or duties of the United States, as well as from taxa- tion in any form by or under State, municipal, or local authority; and the gold coin received from the sale of said bonds shall first be covered into the general fund of the Ti'easury and then exchanged, in the man- ner hereinbefore provided, for an equal amount of the notes redeemed and held for exchange, and the Secretary of the Treasury may, in 60 NATIONAL-BAirK AOT. his discretion, use said notes in exchange for gold, or to purchase or redeem any bonds of the United States, or for any other lawful pur- pose the public interests may require, except that they shall not be used to meet deficiencies in the current revenues. That United States notes when redeemed in accordance with the provisions of this section shall be reissued, but shall be held in the reserve fund until exchanged for gold, as herein provided; and the gold coin and bullion in the reserve fund, together with the redeemed notes held for use as pro- vided in this section, shall at no time exceed the maximum sum of one hundred and fifty million dollars. Sec. 3. That nothing contained in this Act shall be construed to affect the legal-tender quality as now provided by law of the silver dol- lar, or of any other money coined or issued by the United States. Sec. 4. That there be established in the Treasury Department, as a part of the office of the Treasurer of the United States, divisions to be designated and known as the division of issue and the division of redemption, to which shall be assigned, respectively, under such regu- lations as the Secretary of the Treasury may approve, all records and accounts relating to the issue and redemption of United States notes, gold certificates, silver certificates, and currency certificates. There shall be transferred from the accounts of the general fund of the Treasury of the United States, and taken up on the books of said divisions, respectively, accounts relating to tne reserve fund for the redemption of United States notes and Treasury .notes, the gold coin held against outstanding gold certificates, the United States notes held against outstanding currency certificates, and the silver dollars held against outstanding silver certificates, and each of the funds repre- sented by these accounts shall be used for the redemption of the notes and certificates for which they are respectively pledged, and shall be used for no other purpose, the same being held as trust funds. Sec. 5. That it shall be the duty of the Secretary of the Treasury, as fast as standard silver dollars are coined under the provisions of the Acts of July fourteenth, eighteen hundred and ninety, and June thirteenth, eighteen hundred and ninety-eight, from bullion purchased under the Act of July fourteenth, eighteen hundred and ninety, to retire and cancel an equal amount of Treasury notes whenever received into the Treasury, either by exchange in accordance with the pro- visions of this Act or in the ordinary course of business, a^d upon the cancellation of Treasury notes silver certificates shall be issued against the silver dollars so coined. Sec. 6. That the Secretary of the Treasury is hereby authorized and directed to receive deposits of gold coin with the Treasurer or any assistant treasurer of the United States in sums of not less than twenty dollars, and to issue gold certificates therefor in denominations of not less than twenty dollars, and the coin so deposited shall be retained in the Treasury and held for the payment of such certificates on demand, and used for no other purpose. Such certificates shall be receivable for customs, taxes, and all public dues, and when so received may be reissued, and when held by any national banking association may be counted as a part of its lawful reserve: Provided, That whenever and so long as the gold coin held in the reserve fund in the Treasury for the redemption of United States notes and Treasury notes shall fall and remain below one hundred million dollars the authority to issue certificates as herein provided shall be suspended: And provided fur- NATIONAL-BANK ACT. 61 ther, That whenever and so long as the aggregate amount of United States notes and silver certificates in the general fund of the Treasury- shall exceed sixty million dollars the Secretary of the Treasury may, in his discretion, suspend the issue of the certificates herein provided for: And provided fwrther, That of the amount of such outstanding certificates one-fourth at least shall be in denominations of fifty dol- lars or less: And provided further^ That the Secretary of the Treasury may, in his discretion, issue such certificates in denominations of ten thousand dollars, payable to order. And section fifty-one hundred and ninety-three of the Revised Statutes of the United States is hereby repealed. Sec. 7. That hereafter silver certificates shall be issued only of denominations of ten dollars and under, except that not exceeding in the aggregate ten per centum of the total volume of said certificates, in the discretion of the Secretary of the Treasury, may be issued in denominations of twenty dollars, fifty dollars, and one hundred dollars; and silver certificates of higher denomination than ten dollars, except as herein provided, shall, whenever received at the Treasury or redeemed, be retired and canceled, and certificates of denominations of ten dollars or less shall be substituted therefor, and after such sub- stitution, in whole or in part, a like volume of United States notes of less denomination than ten dollars shall from time to time be retired and canceled, and notes of denominations of ten dollars and upward shall be reissued in substitution therefor, with like qualities and restrictions as those retired and canceled. Sec. 8. That the Secretary of the Treasury is hereby authorized to use, at his discretion, any silver bullion in the Treasury of the United States purchased under the Act of July fourteenth, eighteen hundred and ninety, for coinage into such denominations of subsidiary silver coin as may be necessary to meet the public requirements for such coin: Provided, That the amount of subsidiary silver coin outstanding shall not at any time exceed in the aggregate one hundred millions of dollars. Whenever any silver bullion purchased under the Act of July fourteenth, eighteen hundred and ninety, shall be used in the coinage of subsidiary silver coin, an amount of Treasury notes issued under said Act equal to the cost of the bullion contained in such coin shall be canceled and not reissued. Sec. 9. That the Secretary of the Treasury is hereby authorized and directed to cause all worn and uncurrent subsidiary silver coin of the United States now in the Treasury, and hereafter received, to be recoined, and to reimburse the Treasurer of the United States for the difference between the nominal or face value of such coin and the amount the same will produce in new coin from any moneys in the Treasury not otherwise appropriated. Sec. 10. That section fifty-one hundred and thirty-eight of the Revised Statutes is hereby amended so as to read as follows: "Section 5138. No association shall be organized with a less capital than one hundred thousand dollars, except that banks with a capital of not less than fifty thousand dollars may, with the approval of the Secretary of the Treasury, be organized in any place the population of which does not exceed six thousand inhabitants, and except that banks with a capital of not less than twenty-five thousand dollars may, with the sanction of the Secretary of the Treasury, be organized in any place the population of which does not exceed three thousand 62 NATIONAL-BANK AOT. inhabitants. No association shall be organized in a city the popula- tion of which exceeds fifty thousand persons with a capital of less than two hundred thousand dollars." Sec. 11. That the Secretary of the Treasury is hereby authorized to receive at the Treasury any of the outstanding bonds of the United States bearing interest at five per centum per annum, payable February first, nineteen hundred and four, and any bonds of the United States bear- ing interest at four per centum per annum, payable July first, nineteen hundred and seven, and any bonds of the tfnited States bearing inter- est at three per centum per annum, payable August first, nmeteen hundred and eight, and to issue in exchange therefor an equal amount of coupon or registered bonds of the United States in such form as he may prescribe, in denominations of fifty dollars or any multiple thereof, bearing interest at the rate of two per centum per annum, payable quarterly, such bonds to be payable at the pleasure of the United States after thirty years from the date of their issue, and said bonds to be payable, principal and interest, in gold coin of the present standard value, and to be exempt from the payment of all taxes or duties of the United States, as well as from taxation in any form by or under State, municipal, or local authority: Provided^ That such outstanding bonds may be received in exchange at a valuation not greater than their present worth to yield an income of two and one- quarter per centum per annum; and in consideration of the reduction of interes't effected, the Secretary of the Treasury is authorized to pay to the holders of the outstanding bonds surrendered for exchange, out of any money in the Treasury not otherwise appropriated, a sum not greater than the difference between their present worth, computed as aforesaid, and their par value, and the payments to be made hereunder shall be held to be payments on account of the sinking fund created by section thirty-six hundred and ninety-four of the Revised Statutes: And provided further. That the two per centum bonds to be issued under the provisions of this Act shall be issued at not less than par, and they shall be numbered consecutively in the order of their issue, and when payment is made the last numbers issued shall be first paid, and this order shall be followed until all the bonds are paid, and when- ever any of the outstanding bonds are called for payment interest thereon shall cease three months after such call; and there is hereby appropriated out of any money in the Treasury not otherwise appro- priated, to effect the exchanges of bonds provided for in this Act, a sum not exceeding one-fifteenth of one per centum of the face value of said bonds, to pay the expense of preparing and issuing the same and other expenses incident thereto. Sec. 12. That upon the deposit with the Treasurer of the United States, by any national banking association, of any bonds of the United States in the manner provided by existing law, such association shall be entitled to receive from the Comptroller of the Currency circulating notes in blank, registered and countersigned as provided by law, equal in amount to the par value of the bonds so deposited; and any national banking association now having bonds on deposit for the security of circulating notes, and upon which an amount of circulating notes has been issued less than the par value of the bonds, shall be entitled, upon due application to the Comptroller of the Currency, to receive addi- tional circulating notes in blank to an amount which will increase the circulating notes held by such association to the par value of the bonds NATIONAL-BANK ACT. 63 deposited, such additional notes to be held and treated in the same way as circulating notes of national banking associations heretofore issued., and subject to all the provisions of law affecting such notes: Provided, That nothing herein contained shall be construed to modify or repeal the provisions of section fifty-one hundred and sixty-seven of the Revised Statutes of the United States, authorizing the Comptroller of the Currency to require additional deposits of bonds or of lawful money in case the market value of the bonds held to secure the circu- lating notes shall fall below the par value of the circulating notes out- standing for which such bonds may be deposited as security: And providm, fwrther. That the circulating notes furnished to national banking associations under the provisions of this Act shall be of the denominations prescribed by law, except that no national banking association shall, after the passage of this Act, be entitled to receive from the Comptroller of the Currency, or to issue or reissue or place in circulation, more than one-third in amount of its circulating notes of the denomination of five dollars: And provided further. That the total amount of such notes issued to any such association may equal at any time but shall not exceed the amount at such time of its capital stock actually paid in: And provided further. That under regulations to be prescribed by the Secretary of the Treasury any national bank- ing association may substitute the two per centum bonds issued under the provisions of this Act for any of the bonds deposited with the Treasurer to secure circulation or to secure deposits of public money; and so much of an Act entitled "An Act to enable national banking associations to extend their corporate existence, and for other pur- poses," approved July twelfth, eighteen hundred and eighty-two, as prohibits any national bank which makes any deposit of lawful money in order to withdraw its circulating notes from receiving any increase of its circulation for the period of six months from the time it made such deposit of lawful money for the purpose aforesaid, is hereby repealed, and all other Acts or parts of Acts inconsistent with the pro- visions of this section are hereby repealed. Sec. 13. That every national banking association having on deposit, as provided by law, bonds of the United States bearing interest at the rate of two per centum per annum, issued under the provisions of this Act, to secure its circulating notes, shall pay to the Treasurer of the United States, in the months of January and July, a tax of one-fourth of one per centum each half year upon the average amount of such of its notes in circulation as are based upon the deposit of said two per centum bonds ; and such taxes shall be in lieu of existing taxes on its notes in circulation imposed by section fifty -two hundred and fourteen of the Revised Statutes. Sec. 14. That the provisions of this Act are not intended to preclude the accomplishment of international bimetallism whenever conditions shall make it expedient and practicable to secure the same by concur- rent action of the leading commercial nations of the world and at a ratio which shall insure permanence of relative value between gold and silver. 21893—03 5 64 NATIONAL-BANK ACX. FAILED NATIONAL BANKS, ETC. Provisos, act April 28, 1902. Provided, That for the fiscal year of nineteen hundred and two and thereafter, a full and complete list of all officers, agents, clerks, and other employees of the office of the Comptroller of the Currency, including bank examiners, receivers and attorneys for receivers, and clerks employed by such examiners and receivers, or any other person connected with the work of said office in Washington or elsewhere, whose salary or compensation is paid from the Treasury of the United States or assessed against or collected from existing or failed banks under their supervision or control, shall be transmitted to the Secre- tary of the Interior in accordance with the provisions of an Act of Congress approved January twelfth, eighteen hundred and eighty-five, relating to the Official Register: And provided further, That the Comp- troller of the Currency is hereby directed to include in his Annual Eeport to the Speaker of the House of Representatives, expenses incurred during each year, in liquidation of each failed national bank separately. INDEX TO NATIONAL-BANK ACT. Para- graph. A. Acknowledgment. (See Oath.) Acting Comptroller of the Currency Administrator. (See Trustee.) Advertisements (see also Notice; Publication) : Imitation of circnlation in, penalty for A gency, National Bank Bedemption, previsions for Agent : Association as fiscal, of Govemmen t Bonds, examination by Central reserve, city Central reserve, city, additlonfd Circulation, to witness destruction , Liquidating bank Keserve , Keserve, city, additional provisions for , Keserve, city, additional central, provisions for Shareholders, appointment and qualification of Shareholders, duties of Special, to examine bank failing to redeem notes To witness destruction of circulation , Aiding misdemeanors of officers ^ , Allotment. (See Shares.) Amendments : Congress may amend Proposed, to national-bank act to be made in Comptroller's report., Kestriction of, to articles of association Appointment : Agent to examine bonds , Agent to witness destruction of circulation Committee to examine bonds Committee to examine plates, etc Committee to witness destruction of circulation Comptroller Deputy Comptroller -* Directors of associations Dissenting shareholders, committee of appraisal Sxamlners of associations Clerks of Comptrol ler's office Officers of associations Receivers of associations Special commission for preliminary examination of associations — vacancies in board of directors > Appraisal. (See Shares.) Articles of association : Amendment of, for extension of corporate existence ■ Amendment of, restricted Converted State bank, execution of, by Increase of capital stock by amendment of Proceedings in regard to, and form of , Provisions for elections when not provided for in Reduction of capital stock Specification of object of association in ^ Title and location, change of ^ Assessments : Examinations Examiner, compensation of , Impairment of capital Plates, engraving of Redemption of circnlation Repayment of Reports failure to make Semiannual duty Shareholder's personal liability Tax on unauthorized circulation Transportation of notes Assessors : Shareholders' lists accessible to Assets: Comptroller's annual report to contain statement of national banks Expenses of receiver paid from Failed bank, may be turned over to agent Insolvent banks, distribution of Of consolidated banks Receiver to collect, etc - 167 65-66 221 56 103 105 65 161, 162 94 104 105 161 162 144 65 179 10 10 42 56 65 56 62 5 16 135 125 7 16 152, 153 25 33 132 42 37 43 13 32 45 14 46 127 127 115, 116 66,69 67, 68, 69 84 81 81 40 86 10 156 161 155 140 152 65 66 NATIONAL -BANK ACT. Index to national-bank act — Continuea. Assets— Contiiined. Eeceiver to sell on order of court Keports of condition to contain statement of Shareholders' agent to distribute TTnited States as paramount lien on Assignment (see also Treasurer United States; Bonds, United States) : Of assets after insolvency, void Begistered bonds United States bonds as security for circulation Assistant treasurer. United States : Circulation, unfit, to be sent to Treasurer for redemption Fraudulent notes to be marked by Obligations of United States PubBo moneys to be deposited with Unauthorized withdrawal of public money from Associations : Defined Attachment: Not to issue prior to final judgment of court — Auction : Bonds of expiring associations Bonds of liquidating associations Enforcement of assessment, impaired capital Purchase of property by receiver i - . . Sale of delinquent national-bank stock Sale of dissenting shareholders' stock Authority. (See Certificate.) B. Bad debts : Defined Ballot. (See Elections ; Shareholders.) Bank circulation. (See Circulation.) Banking house ; Association may own Banking powers (eee alio Beal estate and national banking associations) : Corporate Incidental Bills of exchange : Discount of - Illegal transfer of, void Interest on ' Penalty for ofiicial malfeasance, relative to Kestriction on loans, not applicable to Kestriction on association s liability, not applicable to Transfer of, to create a preference, void Board of directors {see also Directors) : Election of Election postponed Number constituting President Provisions for Three-fourths to be residents of State Tacancy, filling Bonds, official : Comptroller Deputy Comptroller Ofiicers of associations Public depositaries Keceiver Sharholders' agent Shareholders', on election of agents Bonds, United States : Annual examination of, provided for Assignment or transfer of, to be countersigned by Comptroller Association to be notified of transfer or assignment Called for redemption Cancellation of, i()rfeited, for circulation redeemed Circulation issuable on Circulation obtainable on Comptroller, access to records of and deposit with Treasurer Converted State banks to deposit Coupon, to he exchanged for registered Deficiency in proceeds from sale of, what first lien Defined Deposit of, required to begin business Depositaries required to deposit Depreciation in value of, how made good Exchange of, permitted Forfeiture of, for failure to redeem circulation General provisions respecting Gold banks to deposit Government depositaries, deposit of, required Increase of deposit of 162 119 162 150 163 53 52 66 79 170 222, 223 225 92 163 142, 149 142, 149 116 159 116 135 16 16 107 163 107 179 110 112 163 16 32 27 34 27 28 4 5 16 221 152 161 161 56 52 54 68 148 49 58 55 37 51 150 48 49 221 57 57 144 57 64 221 50 NATIONAL-BANK ACT. Index to national-bank act — Continued. 67 Para- graph. Page. Bonds, TJnited States — Continued. Interest on, liable for penalty for failure to make returns and pay tax Interest on, liable for penalty for failure to make reports to Comptroller Interest on, withlieldon impaired capital , Lawful money, deposit of, to retire circulation and withdraw Maximum amount wblcb mfly be deposited to secure circulation Minimum amount to be deposited Maximum circulation issuable on Obligations of United States, including, defined Penalty for illegal dealing in counterfSt Penalty for illegal possession or use of material for printing Penalty for passing counterfeit Penalty for taking or possessing unauthorized impressions of tools, etc., used in printing Keasslgnment of, to liquidating bank Kecord of-transfer or assignment of, to be kept by Comptroller Registered, to be deposited with Treasurer tfnited States Kelation of, on deposit to capital Return of, to association Sale of, at auction, for failure to redeem circulation Sale of privately, at not less than par, for failure to redeem circulation Taxation, exempt from Transfer of, how effected Treasurer IJuited States to have access to records of Comptroller relative to Treasurer United States to hold, in trust for association Withdrawal of, and of circulation Withdrawal of Bookkeeper. (See Officers.) Books. (,See Comptroller; Treasurer United States.) Borrowed money. {See Liability of association ; Loans.) Branch banks : Chicago World's Fair Louisiana Exposition State banks entering system by conversion may retain Business : Authorization of association to begin, when Place of Suspension of, after default to pay circulation Business paper. (See Commercial paper.) By-laws : Prescribed by directors of national hanks C. Cancellation. (See Bonds, United States ; Circulation.) Capital stock: Agent of shareholders to distribute assets ratably Amount to he paid before association begins business Appointment and qualification of shareholders' agent Association to begin business, amount to be paid Branches of converted State banks 1 Certificate of officers and directors required relative to payment of -• Circulation not to be used to correct Circulation outstanding not exceeding 5 per cent of, free from taxation Circulation, proportion to Compensation of examiners based on, except in certain cases Conversion of State banks authorized, when Creditor's bill against shareholders Deposit of United States bonds based on Directors, individual liability of Directors, qualifications of Dividends declared on, and net earnings in excess of dividends to be reported . . Dividends on, and creation of surplus Dividends on, when prohibited Disposition of, delinquent shareholders Division of, into shares and number and value of each Enforcement of assessment, to make good impairment of Enforcing individual liability of shareholders of, by receiver Enforcing payment of Failure to dispose of shares of, purchased or acquired by associations , Holders of shares of, in expiring associations to be extended or reorganized to have preference in the allotment of shares Holding of shares of, required by directors Impairment of, assessment for Impairment of, receiver may be appointed for failure to make good Increase of, provisions for - Individual liability of shareholders •■ Liabilities of an association not to exceed, except on account of certain demands - Liquidation, shareholders owning two-thirds or, may vote to go into List of shareholders of, to be transmitted to the Comptroller Loans on security of shares or purchase of, prohibited Loans restricted to 10 per cent of Minimum amount required of national banks Minimum of bonds to 81 122 115 67 68 24,49 68 170 176 171 172 173, 174 141 53 49 50 67 149 151 91 52 55 52 67 60 228 228 39 19 93 147 162 19 161 19 39 19,23 113 86 49 127 37 164 24 158 23 121 109 114 20 18 116 153 20 153 135 31 115 153 43 40 112 136 118 111 110 17 49 68 NATIONAL-BANK ACT. Index to national-ianh aot — Continued, Para- graph. Capital stock— Continued. Number of shares and amount of, stated in organization certificate Payment of, proyiaions for Penalty for failure to make good impairment of Personal liability of shareholders Receiver may be appointed vfhen — impaired Receiver may be appointed when, not fully paid in Reduction oi', provisions for Relation of bond deposit to Restoration of, when below the minimum required Savings and other banks in District of Columbia subject to this act Shareholders of, list to be kept and subject to inspection Shareholders owning two-thirds of, may place an association in liquidation Shareholders owning two-thirds of, may change title and location Shareholders owning two-thirds of, may increase stock '. Shareholders owning two-thirds of, may reduce stock Shareholders owning two-thirds of, may extend corporate existence Shareholders entitled to one vote on each share of, held by Shareholders of converted State banks not liable when Shareholders of, not consenting to an extension may withdraw Shares of, acquired for debt to be disposed of when State banks converted into national shall be assumed to have the same, as imme- diately prior to conversion , State taxation of shares of . . i ■- Subscriptions to, when payable Surplus fund to be created to the amount of 20 per cent of United States registered bonds to be deposited as security for circulation to be based on When increase of, becomes valid "Withdrawal of bonds on reduction of, or closing of business Withdrawal of bonds, limited Cashier (see alao President; Officers) : Appointment of Bank examiner may examine on oath Bond assignments by Certificate of officers and directors Certificate of stock payment Circulating notes, to sign Election or appointment of Embezzlement by Examiner of own bank cannot be Expiration of corporate existence, certification by Extension of corporate existence, certification by False certification of checks Incomplete circulation, provisions relative to, Increase of stock, certification of Liquidating bank, duty in Loans on IJnited States or national-bank notes Penalty for— Countersigning or delivering circulation improperly False certification of checks Issuing circulation of expired associations Ofiiciarmalfeasance Pledging, etc., circulation Unauthorizedreceipt of public money President or vice-president and, to sign circulation Protest of circulation, waiving notice of , Proxy, not to act as , Reports of condition, verified by , Reports of earnings and dividends, verified by Shareholders, lists of, by Signature of, forged or wanting, not to invalidate circulation Taxable circulation, returns by Unauthorized circulation, returns by '. Voluntary liquidation, certified by Central reserve agents. (.See Agent; Reserve; Reserve agents.) Certificate: Certified copy of organization, evidence Comptroller's, of authority Converted StAte banks Destruction of notes Execution of organization Extension of corporate existence Increase of stock valid, when Maybe withheld, when Officers and directors Organization, to specify Payment of installments of stock to be certified Publication of Comptroller's, of authority Reduction of stock valid, when Sealed, of Comptroller, evidence Voluntary liquidation U 19 115 40 115 153 45 50 21 123 118 137 46 43 45 132 30 40 135 111 124 19 109 49 44 50 67 16 125 52 23 19 59 16 179 126 142 132 177 76 44 138 113 165 178 176 179 166 226 59 143 30 119 121 118 76 81 183 25 15 133 44 25 23 14 19 26 45 182 138 NATIONAL-BANK ACT. Index to national-hank act — Continued. 69 CertJ.fication of oheokaLwhen forbidden, and penalty for Certified oopitrs. {See Evidence.) Charter. {See Corporate existence.) Charter number : To be printed on circnlation ■. Cheese: False certifioation of, unlawful Falsely certified, an obligation of association ^ Penalty for false certification of Circulation : Amount of, obtainable Amount of, obtainable by gold banks Association may issue Association to receive interest on bonds as long as, honored Associations consoli dating, deposit of lawful money to retire, unnecessary Associations to redeem, in lawful money on demand Eonds in excess of amount required may be withdrawn Bonds forfeited when, dishonored Bonds, TTnited States, to secure Certificates of destruction, by whom executed Charter number on Collection of tax on Consolidating banks .- Cost of engraved plates to be paid by association Counterfeiting, etc Countersigning unlawfully Deposit of United States bonds to secnre Deposit of bonds to be increased when capital is increased Destroyed, to be replaced by an equal amount of new notes Disposition of redemption account balances Examination of bank upon protest of, by agent of Comptroller Expense of platesfornew notes of extended banks Expenses of redeeming, withdrawn Expenses of redemption, how paid Extended bank, shall diflfer from prior issues For what, is receivable - Fraudulent notes to be so stamped Gain from lost and destroyed Gold bank, to be redeemed in gold coin Government depositaries to receive, at par Inscription on Increasing capital stock, use of, prohibited Limit on aggregate amount of. Liquidating bank to deposit lawful money to redeem Maximum deposit of bonds required Minimum deposit of bonds required Notice of redemption of, to be forwarded to bank Other, prohibited for national-bank Penalty for failure to make return of taxable Pledging, as security proliibited Preparation of . .'. Profit on unredeemed, inures to the United States Proceedings when return is not made Prohibition against circulating uncurrent notes. Proportion to bonds C Proportion to capital Protest of Eeceivable at par by all national banks Hedeemed, to be canceled Bedemption fund of 5 per cent , Bedemption of, ill United States notes Bedemption of, extended bank , Biedemption of, liquidating banks Bedemption of, closed banks Bedemption of, incomplete Refunding excess tax Restriction of tax provisions Semiannual return of, subject to tax Statement concerning, of closed banks to appear in annual report of Comptroller Securities exempt from local taxation Tax on Tax on, unauthorized Tax on converted bank '- Tax on, insolvent banks remitted Tax on State bank issue Tax on, subject to State law — Treasurers and public depositaries to return all, of closed banks When exempt from tax - When issuable as money Withdrawal of, by depositing lawful money Worn out or muialated, destroyed Citizens: National-banking associations, where Claims. (5ee Insolvency; Receiver.) Para- graph. 177 377 178 58 64 Ifl 57 140 103 50 144 49 65 60 83 140 66 165-176 165 24,49 50 66 75 144 79 69 64 221 59,64 113 58 141 49 49 66 78 81 113 58 117 58 49 143 77 73 66 70 71 76 84 . 90 81,87 10 91 80 86 89 160 86 91 71 85 63 67 65 70 NATIONAL-BANK ACT. Index to national-hank act — Continued. Para- graph. Clearinghouse: Certificates issued hy, coanted as reserve '• Receipt in settlement of balances of gold and silver certificates by Clearing-house certificates. (iSee Clearing house; Reserve.) Clerks : Appointment and qualification of, by the Secretary Duties of, fixed by the Comptroller Employment of, for the Bureau by the Comptroller Of banks cannot act as proxy Kames and compensation of, in annual report and Ofiioial Kegister Closed associations. (S&a Insolvent banks.) Coin. (See Gold; Silver.) Commercial paper : Discount of Committee of appraisal. (See Dissenting shareholders.) Comptroller of the Currency : Action as to iigent of shareholders ■ Agent, special, to be appointed for association falling to redeem circulation Annual report to be made to Congreda by Appointment, term and salary of Approve receiver's purchase of property Approve reserve agent - — Articles of association and organization certificate of national bailks to be filed with ; Authorized to examine banks in the District of Columbia, organized under acts of Congress Bonds and records of, with Treasurer, access to -' — Bonds, sale of, privately or at public auction by Capital stock, mcrease orreduciiou of, to be approved by Certificate to begin business Certified copy of organization certificate, evidence Charternumber of bank, he to have it put on. circulating notes Cited in injunction of receiver Circulation, worn, mutilated, destruction of Creditors of failed bauks, he to pay dividends to Destroy circulating notes by maceration Distribution of Comptroller's reports Duties of Enforce stockholders' liability , Enjoined by bank, how Examiners, appointment of Extension of corporate existence, approval of, by Evidence sealed certificates Forfeit, cancel, or sell bonds of notes not redeemed , Forfeiture of charter, snit to be brought by Gold banks, organization of Interest in national banks, issuing currency, prohibited Jurisdiction of circuit courts Liquidation of associations to be approved by : Notice to banks sbort in reserve Notice to creditors of Insolvent banks Oath to betaken and bond to be given by Plates and dies, examination of Printing report of J Qualification of Reappraisal of stock of bank extending corporate existence Receivers, appointed by , Reports of banks other than national, to be obtained and published by Reports to be made to Reserve cities, designalion of, by Retiring circulation „.. State bauh s converted, approved by Title and location, change of, to be approved by Title of national banks, subject to approval of, Transfer of bonds Compounding debts, of insolvent national banks Congress : Comptroller's report to be made to Consolidation of national banks, provisions regarding liquidation and bonds Converted State banks. {See State hanks converted.) Corporate existence, Extension of / Reextension of I Liquidating, not terminating Corporate powers. (See Powers. ) Corporation (see also Liability of association) : Association becomes a, when Cost. (See Expenses.) Counterfeits, making or using notes, plates,, tools, etc | Coupon bonds. (See Bonds, United States.) Coui-ts. (See Crimes, jurisdiction, etc.) Creditors : Bill in equity by, against shareholders Checks falsely certified a valid obligation of associations 97 101 7- 7 7 30 10 107,112 161 144 10 3 159 104, 105 13,14 128 55 151 43,45 16 183 60 145 65 155 65 12 2 40 145 125 131 182 151 157 35 6 180 338 95 154 4 62 11 4 136 95-152 123 119-121 104-105 67,68 37 46 14 52 152 10 140 131, 132, 133 136 142 169, 171, 173 164 177 NATIONAL-BANK ACT. 71 Index to national-hank act — Continued. Creditors— Continued . Oreditora' rights not to bo impaired Directors' liability Expiration of existence, notice to Illegal preference of Insolvency, notice of. to Nonpayment of circulation, notice of, to Payment of assets of failed banks Preferred - Shareholders' agent, following settlement with Shareholders, list of, subject to inspection by Shareholders, personal liability of, to Yoluntary liquidation, notice of, t-o Creditor's hitld: Against shareholders Crimes, jurisdiction, etc. : Counterfeitin g circulation Sealing in counterfeit circulation Evideuce, certified copy of organization certificate Evidence, sealed certificate of Comptroller competent False certification of checks Having or taking unauthorized impressions of ti>uls, etc Illegal -possession or use of material for circulation Imitating circulation for advertising purposes Improper countersigning or delivering circulation Indian Territor;^ , Issuing circulation of expired associations Jurisdiction, general, of national-bank cases Jurisdiction to enjoin Comptroller or receiver Mutilating circulation Obligations of the United States defined Official malfeasance Passing counterfeit circulation Pledging United States notes or bank circulation Suits against United States officers or agents Taking unauthorized impression of tools, etc ;. Currency. (See Circulation; Gold; Gold certificates; Silver; Lawful money; United States note certificates.) Currency Act of March 14, 1900 Currency Bureau : Designation of office of Comptroller of the Currency Offices, vaults, etc., for * Silver certificates; Debts, compounding of : Eeal estate held for Deficiency. (See Bonds; Capital; Circulation; Roeeiver; Reserve.) Denominations : Circulation of gold banks Circulation of national banks Converted State bank shares Gold certificates Shares of national-bank stock United States note certificates Deposit of United States bonds. (See Bonds, United States.) Depositaries. (See Government depositaries.) Deposits : Public moneys Reserve to be kept on Depreciation. (S'ee Bonds; Circulation.) Deputy Comptroller : Appointment Bond. Duties r - • Interest in bank issning national currency prohibited by . . . Oath to be taken Salary of Destruction of mutilated notes. [See Redemption.) Dies. (See Plates and dies.) Directors (see Board of directors) : Appointment or election of A Bsessment, provisions for enforcement of ■ Attestation of reports to Comptroller, by Capital impaired, duties in Certificate of officers and._ Certifiication of, to extension Conversion of State bank, action by Dividends, declaration of, by Embezzlement, penalty Enforcing payment or capital Exception m Oklahoma Failure to hold annual election Forfeiture of charter for violation, etc., by Indian Territory, national-bank act relative to, in effect in- Liability of Para- graph, Page. 163 39 158 36 142 33 163 39 151 36 US 34 165 36 163 39 161 37 118 27 40 10 138 32 164 39 169 41 175 42 183 44 182 44 177,178 43 173,174 42 171 41 167 40 165 40 185 44 176 43 181 44 180 44 168 41 170 41 179 43 172 42 166 40 184 44 173 42 64 59 37 101 18,37 222 94-103 16 116 119 20 23 132 37 109 179 20 29 32 167 185 158 72 NATIONAL-BANK ACT. Index to imtional-bank act — Continued. Para- graph, Page. Directors (see Board of directors) — Continued. Barnes and residences of, to be ascertained b^ Comptroller Not to be appointed by Comptroller to examine own bank Il'umber and election of Oath of Oklahoma, qualification of national bank in Penalty for issuing circulation of expired association Penalty for official malfeasance Penalty for unauthorized receipt ot public money President of lnoard, to be a Powers of ; Proxy, can not act as - Qualifications of Qualifications of, in Oklahoma Shareholders dissenting to extension to give notice to, etc Vacancies in board of ■ Disbursing funds of United States otBcers, depositing with national-bank depositaries . Discount. (SeeLoana; Liability of association ; Interest.) Dissenting shareholders : Withdrawal of, on extension Dissolution. (See Expiration of corporate existence ; Forfeiture ; Insolvency ; Liqui- dation.) Distinctiye paper : ITnauthorized possession or use of ■ District of Columbia : ■ Supervision of banks in, authorizjed by Congress, by Comptroller Dividends (see also Surplus and dividends) : Comptroller to make ratable; of assets of insolvent banks . -' Directors may declare, when .- Barningsand, to be reported Penalty for failure to report earnings and Kestriction on association's liability Unearned, prohibited Drafts : Obligations of United States including Official malfeasance Liability of association, relative to Penalty for mutilating - Dues. (iSee Taxation; Duties.) Duties : Associations organized under act of February 25, 1863 Circulation, converted State banks Circulation, enforcing payment of, on Circulation, exempt from Circulation, not receivable for customs Circulation, refunding excess on Circulation, restrictions on Circulation, semiannual on - Circulation, unauthorized , Comptroller's Deputy Comptroller's - Directors' ' Examiners' Gold certificates receivable for !Notcs, etc., other than national-bank circulation .-. Fublio depositaries, designation and Beceiver, appointment and Shareholders' agent , E. Earnings. (See Dividends.) Elections : Change of title or location Corporate powers Extension of corporate existence Failure to bold annual Inq^ease of stock Number of directors Oaths of directors Qualifications of directors Qualifications of shareholders Seduction of stock Shareholders* agent Voluntary liquidation Embezzlement. (See Crimes.) Embezzlement, misapplication of funds, etc, : Pen alty f or Employees and expenses, (See Clerks ; Expenses,) Enforcing payment of capital stock : Provisions for Engraving, (iSTee Circulation; Plates and dies,) Equity. (See Creditor's bill against shareholders. ) Evidence Examination of organization proceedings : Preliminary to authorizing, to begin business... 22 126 27 31 29 176 179 226 34 16 30-128 28 29 135 33 128 155 109 121 122 112 114 170 179 112 168 5 27,81 125 101 91 221 152 162 46 16 131 32 43 27 31 45 160 137, 138 179 20 182 22 NATIOWAti-BAlfK ACT. Index to national-tank act — Continned, 73 Para- graph. Page. Examinations: Annual, of bonds Ascertainment of valne of stock of dissenting shareliolders Bonds and records, proTisions for ,. . Compensation of examiners .' i Comptroller may make, of all banks in the District of Columbia organized nnder acts of Congress ." Examiners to make Limitation of visitorial powers List of shareholders subject to Plates and dies annually ; : Preliminary, to beginning business Qualification of examiners Special, of extended associations ' : Examiners : s Appointment of Compensation of Qualifications of Special commission Execution. (See Suits.) Executor. (See Trustee.) Existence : Extension of Beextension of Term of corporate, of national banks Expenses : Bureau, to be stated in Comptroller's annual report Circulation, redemption of Circulation, tax on Circulation, transportation and redemption of . Duties of shareholders' agent relative to Examinations Examinations, dissenting shareholders Examinations, in District of Columbia - Examinations, special - Examiners, fees of Plates, cost of Plates and dies, examination of .' Receiverships, how paid Keceiverships, paid prior to election of shareholders' agent Sale of bonds Sale of delinquent stock F. Failure. (See Insolvency.) Ealse entry : Penalty for, official malfeasance --. Fees. (See Examiners ; Keceivers.) Fine. (Bee Penalty.) Firm. (See Liability of association.) Fisc^ agent. (See Agent; G-ovemment depositaries.) Forfeiture. (See Interest ; Bonds; Charter; Suits.) Forgery. (>See Crimes; Penalty.) Franctiise. (See Corporate powers ; Yiolations of national-bank act.) Fraudulent notes : United States and national bank ofQcers to mark 6. Gold: Certificates not to be issued when reserve of gold coin and bullion is depleted. Circulation of gold banks redeemable in Deposit of, for certificates Gold banks not required to take circulation of other banks at par Gold banks, issue of circulation by, payable in Issue of certificates of deposit of- Organization of gold banks Eeserve in Treasury Reserve of gold banks to be silver and - Taxation of, by State, etc "- Gold banks: Circulation of, issuable * Conversion of - Deposit of bonds by -■-.- Exempted from provisions relative to other bank circulation Organization of Reserve required for Tax on circulation • ».... Gold bank notes. (See Gold banks ; Circulation.) Gold certificates ; Deposit of gold for Issue of, prohibited, when Minimum denomination - Beceivable for S6 135 65 127 125 129 118 62 22 126 133 125 127 126 25 131 136 16 10 66 80 68 162 127 135 128 133 127 69 62 156 161 150 20 79 101 64 101 77 35 101 35 101 102 91 64 36 64 77 35 102, 103 80 101 101 101 101 74 NATIONAL-BANK AOT. Index to naUonal-hank aot — Continned. Para- graph. Gold reaerre in Treasury; Gold oertifioates not to be Isaned when, depleted Government depoBiteries : Deposit and withdrawal of public moneys Deposits by certain postmasters' Designation and duties of National banks as ^. National-bank circulation to be received by National banks as financial agents of the Government Penalty for misapplication of moiney-order funds Penalty for unauthorized deposit of public moneys Penalty for unauthorized receipt or use of public moneys Secretary of the Treasury to designate Securities to be deposited by Gnardian. {See Trustee.) H. House of Representatives : Comptroller's reports to be sent to , Hypothecation. {.See Fledging.) I. Imports, interest on public debt; Circulation of national banks not receivable for duties and interest. Improper use of circulation : Pledging, hypothecating, etc Uncurrent circulation Incomplete circulation {see also Circulation) : Redemption of Indian Territory: National-bank act in efTect in Injunction. (jStee Comptroller; Suits.) Insolvency : Assets, distribution of, by receiver ■ Expenses incident to, report of General jurisdiction of national-bank cases ..■■ Impairment of capital Jurisdiction of courts Notice to creditors of aesociations in Penalty for issuing circulation of associations in Preference of creditors Receiver, appointment of Receiver, duties of Receiver, when maybe appointed ^ Redemption of circulation of association in Shareholders' agent Taxes on bank in, remitted Interest in national banks prohibited: By Comptroller . ._ By Deputy CoBopiroller ' Internal Revenue, Commissioner of: Penalty for failure to make returns to, of taxable circnlation Remission of tax against insolvent State banks Semiannual return to, of taxable circulation other than national J. Judgment {see also Suits) : Appointment of receiver Illegal preference of creditors Jurisdiction. {See Crimes, Jurisdiction, etc.) li. Larceny. {See Crimes, jurisdiction, etc.) liawfulmoney ; Defined Defined for gold banks Exemption of circulation from taxation when, deposited Expirmg associations to deposit Extended banks to deposit Five per cent fund Forfeiture of bonds, for failure to redeem circulation in Liquidating associations to deposit Liquidating association, .consolidating, not to deposit Payment of protested circulation in Protest of circulation, for failure to redeem In Receiver to be appointed for failure to maintain reserve of Redemption account, disposition of Reserve to be Withdrawing circulation, deposit of. 101 221 221 221 221 224 22S 226 221 221 113 117 185 155 181 115 180 154 176 163 152 152 152, 153 71 161, 162 160 6 6 160 87 153 163 227 102 85 142 69 66,75 144 139 140 148 143 153 75 94 67,68 I NATIONAL-BANK ACT. Index to national-iank act — Continned. 75 Lawful money reserve : Balances with agents..... , Clearing-honse certificates Grdld banks , Gold and silver certiiiGates Five per cent fond Lawful money on hand Maintenance of Kecelver for failure to maintain Eeserve agents, proportion with United States note certificates Legal tenders : Defined Liability : Association's, for pledging, etc., United States notes, etc .. Converted St.ate bank for md notes i , Creditor's bill against shareholders , Instates owning stock subject to False cerfifica^on of checks Individnal, of directors Limited to amount of capital, except Personal, of shareholders Bestriction on Shareholders' agent Shareholders, debars from voting Shareholders exempt from, when , Trustees, exempt from, when Liabilities : Associations organized under act of February 25, 1SG3 Change of title or location not to afiiecr Comptroller's report to contain statement of national banks Converted State banks . - Deficiency in reserve, not to be increased - Deposit of lawful money relieves from, on circulation Duties of receiver ^ Fxceptions to limitation Extended associations Liquidating associations, on consolidation Loans, restrictions on Reports of condition to show Bestriction on Shareholders* agent Lien: Illegal preference of creditors Interest on bonds United States has paramount, on assets of association Limitations : Associations, corporate existence Bonds, withdrawal of Capital, converted State banks Capita Btock, increase of Capital stock, reduction of. gapital stock, payment of apital stock, requirements CirciUation, denominations Circulation, deposit of lawful money on withdrawing Circulation, increase of ■« Circulation exempt ftom tax -- Circulation obtainable Circulation obtainable by gold banks Circulation to be taken at par Circulation, tax on ■ Circulation, unauthorized, tax on Comptroller or receiver may bo enjoined, when Corporate existence of converted gold banks Creditors of insolvent banks,^ notice to Creditors of insolvent bank, illegal preference Directors, number of Dividends Expiration of corporate existence Extended association, deposit of lawful money by Extension of corporate- existence Gold certificates, denominations (if. -, Impairment of capital Inspection of list of shareholders Interest rate Jurisdicton of courts Jurisdiction, general, of national-bank caaos Lawful money deposited to retire circulation Liability of national banks Location of associations, change of Loans.... -■■- Para- graph. Page. 96, 103 23,24 97 23 102 24 101 24 98 23 94 23 95 23 95 23 94 23 99 23 227 55 166 40 89 21 164 39 41 11 177 43 158 36 112 26 40 10 112 26 161,162 37,38 30 9 40 10 41 11 47 12 46 11 10 i 89 21 93 23 141 32 152 35 112 26 134 31 140 32 110 26 119 £8 112 26 161 37 163 39 83, 122 20,28 150 .34 16 6 57,67 14,17 37 10 43 11 45 11 19 7 17 6 59 15 67 17 68 17 85 20 49,58 12,14 64 16 77 19 80,90 20,21 86 21 145 34 36 9 154 36 163 39 27 8 109,114 26 142 33 69 17 131,136 30,31 101 24 115 27 118 27 107 25 ISO. 44 181 44 68 17 112 26 46 11 lin 26 76 natiowal-baitk: act. Index to fMiionaUtanh act — Continned. Para- graph. Page. 130 30 93 22 221 53 106 25 102 24 153 35 159 36 119 28 121 28 94 23 103 24 96 23 123 28 162 38 40 10 40 10 18 7 28 8 91 22 124 29 111 26 184 44 24 8 99 23 99 23 74 18 129 30 137 32 139 32 30 9 141 32 164 39 140 32 142 33 181 44 180 44 139 32 138 32 176 43 70,71 18 141 32 137 32 150 34 144 33 149 34 151 34 14' 32 157 36 143 33 140 32 164 39 139 32 158 36 155 36 145 34 146 34 142 33 16? 39 181 44 180 44 138 32 154 36 148 34 176 43 152 35 153 35 159 36 156 36 161 37 162 38 184 44 147 34 160 37 137 32 112 26 llj 26 111 26 106 25 110 26 Limitations — Continued. . '^National" in title of bank Place of business Public depositaries Beal estate holdings Reserve, gold banSs Receiver, appointment of , Receiver, purchase of property to protect trust Reports of condition, transmitted Reports of earnings and dividends, transmitted Reserve requirements - -. Reserve with central reserve agents Reserve with reserve agents Savings banks in District of Columbia, capital of Shareholders' agent, duties of Shareholders, personal liability of Shareholders, personal liability of certain converted banks Shares of stock, par value Shares of stock, directors to own State taxation of money State taxation of national banks Stock, purchased or acquired Suits, conduct of - United States bonds deposited United States note certificates, denominations of United States gold certificates, issue of United States Treasurer to redeem circulation presented, when. . . Viaitorial powers Voluntary liquidation, vote Voluntary liquidation, deposit of lawful money Voters at elections Liquidation : Bonds withdrawn Creditor's bill against shareholders Consolidation. Rxpiring associations to comply with provisions for General jurisdiction of national-bank cases Jurisdiction of courts Lawfal mon ey to be deposited Notice ol to be published Penalty for issuing circulation of associations in Redennttion of circulation of associations in Sale of^bonds when .■ Vote required Jjiquldation and receivership {see also Liquidation ; Receiver) : Bonds, deficiency in, first lien on assets for redemption of circulation. Bonds, forfeiture of Bonds, saleo^ at auction Bonds, sale of, privately Bonds, withdrawal of , Charter, forfeiture of , Circulation, protest of Consolidation, provisions for Creditor's bill against shareholders Deposit of lawful money on liquidating Directors, individual liability of Distribution of assets of insolvent associations Enjoining proceedings Ei^oining proceedings, where brought Expiring associations Illegal preference of creditors Jurisdiction, general, of national-bank cases Jurisdiction of circuit courts I Notice of vote to liquidate Notice to creditors of insolvent associations , Notice to present circulation for redemption Penalty for issuing circulation of expired associations Receiver, appointment of Receiver, when may be appointed Receiver, purchase of property to protect trust Receivership, expenses or Shareholders' agent, appointment of Shareholders* agent, duties of ■ Suits, conductor Suspension of business for nonpayment of circulation Taxes on insolvent associations remitted Vote required for liquidation Loans : Associations' liability restricted Circulation as collateral for, prohibited Prohibited on security of ownstook Real estate, prohibited Roatrictions on , _„ ^ ITATIONAL-BAirK AOT. Index to national-hank act — Continued. 77 Para- grapb. Location (rohlbited Unearned dividends prohibited Yisitorial .powers, limitation of Reimbursement, (^recirculation; Bxpenses; Plates and dies.) Reports : Amendments proposed in Comptroller's Annual, to be made to Congress Banks, other than national. Circulation, semiannual return of Closed banks Condition of banks other than national Condition of national banks in Distribution of Dividends and earnings List pf shareholders Payment of capital stock - Printed, when ^ Printed, number of copies Statement of condition of national banks Reserve : Clearing-house certificates Five per cent fund Gold and silver, held by gold banks Gold certificates Lawful money Maintenance of Penalty for i'ailure to maintain Proportion of, with agents Requiremepts Requirements for gold banks Reserve agentS; balance with Silver certificates United States note certificates Para- graph. Page. 148 34 141 32 69 17 143 33 69 16 lUO 24 72 18 149,151 34 89 21 74 18 76 19 67,68 17 65 16 75 18 136 31 59 IS 116 27 113 26 109 26 114 26 125 29 127 29 115 27 107 25 108 25 92 22 112 26 110 26 109 26 93 22 106 25 119 28 122 28 120 28 121 28 121 28 94, 104 23,24 96 23 103, 105 24,25 94 23 102 24 118 27 124 29 111 26 109 26 117 27 114 26 129 30 10 4 10 4 123 23 81 20 10 4,64 10 4 10 4 12 5 121, 122 28 118 27 19 7 11 5 12 5 119, 120 28 97 23 75,98 18,23 102 24 101 24 94 23 95 23 95 23 96, 103 23,24 94 - 23 102 24 . 96, 103 23,24 101 24 NATIONAL-BANK ACT. Index to national-hank act — Continued. 83 Para- ^aph. Beeerre agents (see also Agents) : Balance with. Central, city Central, city, additional Cities, additional, in which may be located Cities in which located Eeserve cities : Additional, proTisions for Central, deposits in Central, provisions for Named , Eeqnirements, not applicable to gold banks in San Franclsco- Biequirements of associations in Hesidence : List of shareholders and reported annually List of shareholders in organization certificate , National banks Qualification of directors of associations Besourcefl. (See Assets.) Restoration of capital stock : Provisions for Returns, (^ee Circulation; Reports; Taxation.) Revised Statutes, United States : Sections of this act, etc., index of. , S. le: Assets of insolvent associations by receiver Assets of insolvent associations by shareholders' agent.. Ronds for failure to redeem circulation Stock for delinquent payment of installment Stock on impairment of capital... , Stock taken for debt Savings banks : ■ Reports of, provided for in annual report Trust companies and, in the District of Columbia , Seal of office of Comptroller : Certified copy of organization certificate under, evidence Certificates under, competent evidence Description , impression of, and certificate of approval by Secretary of the Treas- ury, to be filed with the Secretary of State - Devised by Comptroller and approved by Secretary Secretary of S tate : Description, impression, and certificate of seal of Comptroller to be filed with Secretary of Treasury : Agent, special, to be appointed for associations falling to redeem circulation . Appointment of Comptroller on recommendation of Appointment and classification of clerks by Appointment of Deputy Comptroller by Assignment of rooms, etc., for the Comptroller by. , Authorized to exchange registered for coupon bonds Circulation, worn or mutilated, destruction of, by Currency, expansion or contraction of, by issue of currency certificates, prohib- ited by Duties of Comptroller under general direction of Exchange of bonds, terms of, prescribed by OrganiKation of national banks with capital \ezs than $100,000 to be approved by . Plates and dies, examination of, by Recommendation of appointment of Comptroller by Receivers, appointment of, by Comptroller, concurrence in by, in certain cases.. Eeserve cities, designation ot, by Comptroller, to be approved by Seal of office of Comptroller to be approved by United States certificates may be issued by Security for circulation. (See Bonds, United States.) Security for loans : Personal Senate : Comptroller's reports to he sent to Shareholders : Agent of, to return to, assets of insolvent association Appointment and qualification of a>gent of Assessment for impairment of capital -- Assets of insolvent association to oe returned to, ratably Consent of, necessary to extension Conversion of State banks, requirements Creditor's bill against Directors, election or appointment of, by Dissenting to extension may withdraw 152 162 141, 144, 149, 151 20 116 111 10 123 183 182 7 5 9 51 65 100 2 57 17 62 3 95 105 12 162 161 115 155 132 •37 164 16,27 135 84 HATIONAL-BANK AOT. Index to naUonaUhemlc act — Continned. Fan- graph. Shareholders — Continned. Duties of agent of Election by, annually .*. Election or appointment of directors hy Enforcement of assessment for Impairment of capital stock Enforcing payment by, of installments ,.. Estates and funds with tms tee liable for assessment Extension of corporate existence Increase of capital stock by List of, to be kept and copy sent to Comptroller List of, subject to inspection Location, change of, by Ifames, residences, ana number of shares held by each in organization certificates Personal liability of Personal liability of, in certain converted State banks Provisions for election by, when.' , Proxies, voting by. , guallfications of directors « eduction of capital stock by l nights and liabilities of, on transfer of shares Title and location of association, change of, by Vote of, necessary to place association in liquidation Voting Voting not allowed, when Shareholders' agent. {See Agent.) Shares : AssociatioD not to own or hold its own except Consent of owners of two- thirds, necessary to extension Converted State bank to be the same as prior to conversion Disposition of, taken for debt Fifty per cent of aggregate value ot; to be paid in prior to beginning business. . . Holding of, in other banks, by converted banks authorized Installments, payment and certification of ^ List of owners of, to be kept and copy sent to Comptroller Loan on security of, prohibited." Oath of director relative to Owners of two-thirds, may place association in liquidation Organization certificate to state capital and number of - Personal property Preference in allotment of, in succeeding association - Qualifications of directors : Ileceiver may be appointed for failure to dispose of, taken Sale or forfeiture of, for failure to pay installments due Sale of, when necessary ._ ^ State taxation of - Transfer of Value of, of shareholders dissenting to extension, how ascertained Value, par, of each Voting Signature on circulation : President or vice-president and cashier Treasurer and Begister, United States Silver : Construed to be lawful money, when-... Reserve of gold banks to be gold and Silver certificates : Clearing-house balances payable in Reserve of national banks may he , Solicitor of the Treasury : Conduct of suits under direction and superrlsiou of Special agent. (See Agent.) Special reports. {See Reports.) State banks : Branches of converted Capital of Conversion of Penalty for failure to make return of tax on circulation Penalty for unauthorized receipt of public money Eeports of, provided for Return of taxable circulation Shareholders' personal liability, exceptions Shares of converted Tax on converted Tax on unauthorized circulation State courts. (