25V7 A'iS CORNELL UNIVERSITY LIBRARY BUSINESS Cornell University Library HG 2547.A35 The national bank act, and other laws re 3 1924 019 374 374 Cornell University Library The original of this book is in the Cornell University Library. There are no known copyright restrictions in the United States on the use of the text. http://www.archive.org/details/cu31924019374374 NATIONAL BANK ACT, AND" OTHER LAWS RELATING TO NATIONAL BANKS, FROM THE REVISED STATUTES OF THE UNITED STATES; AMENDMENTS AND ADDITIONAL ACTS. COMPILED BY EDWAED WOLCOTT, UNDER THE DIRECTION OF THE COMPTROLLER OF THE CURRENCY. WASHINGTON: GOVERNMENT PRINTING OFFICE. 1875. Kb5 190 -3 LIST OF LAWS AND PARTS OF LAWS CONTAINED IN THIS COMPILATION. Page. National-bank act, and other laws relating to national banks. Compiled from the Revised Statutes of the United States 5 United States notes. — An act fixing the amount of United States notes, providing for a redistribution of national-bank currency, and for other purposes. June 20, 1874 ... 55 Maceration of mutilated notes. — An act making appropriations for sundry civil expenses of the Government for the fiscal year ending June thirtieth, eighteen hundred and seventy-five, and for other purposes. June 23, 1874 59 Specie payments. — An act to provide for the resumption of specie payments. January 14,1875 59 Circulating notes of national gold banks. — An act to remove the limitation restricting the circulation of banking associations issuing notes payable in gold. January 19,1875 61 Tax on bank checks, and State bank andfither circulating notes. — An act to amend existing customs and internal revenue laws, and for other purposes. February 8, 1875 — 61 Errors and omissions in the Revised Statutes of the United States. — An act to correct errors and to supply omissions in the Revised Statutes of the United States. Feb- ruary 18, 1875 62,65 Compensation of lank examiners. — An act to amend section five thousand two hundred and forty of the Revised Statutes of the United States, in relation to compensation of national-bank examiners. February 19, 1875 64 Stamps on bank-checks. — An act to provide for the stamping of unstamped instruments, documents, or papers. June 23, 1874 65 Acts not of a general nature. — Sundry acts changing the location, or name, or both, of various national banks .' 67 (3) NATIONAL BANK ACT, AND OTHER LAWS RELATING TO NATIONAL BANKS. CHAPTER ONE. THE COMPTROLLER OF THE CURRENCY. [The numbers in parentheses refer to the Revised Statutes.] 1. (Sec. 324.) There shall be in the Department of the Bureau of _ _ . r Comptroller of Ireasury a .Bureau charged with the execution of all laws t^ currency es- / ° tablished. passed by Congress relating to the issue and regulation of a national currency secured by United States bonds ; the chief officer 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. 2. (Sec. 325.) The Comptroller of the Currency shall be comptroller of appointed by the President, on the recommendation of the pointmeot, term r , . of office, &e. Secretary of the Treasury, by and with the advice and con- sent 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. 3. (Sec. 326.) The Comptroller of the Currency shall, oathandbw 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 hun- dred thousand dollars, with not less than two responsible sureties, to be approved by the Secretary of the Treasury, conditioned for the faithful discharge of the duties of his office. 4. (Sec. 327.) There shall be in the Bureau of the Comp- Deputy comp- troller of the Currency a Deputy Comptroller of the Currency, ment, duties, &o. to be appointed by the Secretary, who shall be entitled to a salary of two thousand five hundred dollars a year, and who shall possess the power and perform the duties attached by (5) law to the office of Comptroller during a vacancy in the office or during the absence or inability of the Comptroller. sfOje^u?" 1 bona The Deputy Comptroller shall also take the oath of office pre- scribed by the Constitution and laws of the United States, and shall give a like bond in the penalty of fifty thousand dollars, cierts. 5. (Sec. 328.) The Comptroller of the Currency shall employ, from time to time, the necessary clerks, to be ap- pointed and classified by the Secretary of the Treasury, to discharge such duties as the Comptroller shall direct. interest in 6. (Sec. 329.) It shall not be lawful for the Comptroller prohibited. or the Deputy Comptroller of the Currency, either, directly or indirectly, to be interested in any association issuing national currency under the laws of the United States, seal of office. 7. (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 see act of Feb. Comptroller, and may be renewed when necessary. A de- ing Rev', stat. scription of the seal, with an impression thereof, and a cer- tificate of approval of the Secretary of the Treasury, shall be filed in the office of the Secretary of State. Kooms, vaults, 8. (Sec. 331.) There shall be assigned from time to time, Bui-eau. ' '' to the Comptroller of the Currency, by the Secretary of the Treasury, suitable rooms in the Treasury building for con- ducting 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 Comptroller shall from time to time furnish the necessary furniture, stationery, fuel, lights, and other proper conveniences for the transac- tion of the business of his office. . comptroller to 9. (Sec: 332.) The Comptroller of the Currency, in addi- examine banks in . . . i n j i ■ i i /» .1 District of Co- tion to the powers conterred upon him by law for the examination of national banks, is further authorized, when- ever 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 ex- amination. The expense necessarily incurred in any such examination shall be paid out of any appropriation made by Congress for special bank examinations. 10. (Skc. 333.) The Comptroller of the Currency shall Annual report. make an annual report to Congress, at the commencement is, i8~5, correct j. ., . * .,.,. ingEev. Stat. oi its session, exhibiting — , First. A summary of the state and condition of every condition of . « . t i . national associa- association from which reports have been received the pre- sons. ceding 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 circulating 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. A statement of the associations whose business closed associ- ations. has been closed during the year, with the amount of their circulation redeemed and the amount outstanding. Third. Any amendment to the laws relative to banking Amendments ii-ii • iii f tol)ankill 8 laws. by which the system may be improved, and the security ot the holders of its notes and other creditors may be increased. Fourth. A statement exhibiting under appropriate heads condition of i ,,.,.... , ,. . „ , , , Slate banks and the resources and liabilities and condition ot the banks, bank- savings-banks. ing 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 companies, and savings-banks to the legisla- tures or officers of the different States and Territories, and, where such , reports cannot be obtained, the deficiency to be supplied from such other authentic sources as may be available. Fifth. The names and compensation of the clerks em- cierks, and ex- penses of Bureau. ployed by him, and the whole amount of the expenses of the banking department during the year. 11. (Sec. 3811.) When the annual report of the Comp- when report v L L may be printed. troller of the Currency upon the national banks and banks seeactofFeb. under State and Territorial laws is completed, or while it is ingEev. stat. 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. CHAPTER TWO. ORGANIZATION AND POWERS OF NATIONAL BANKS. Formation of 12. ( Sec. 5 1 33.) Associations for carrying on the business national banking v associations. f banking under this Title may be formed by any number of natural persons, not less in any case than five. They Articles of as- shall enter into articles of association, which shall specify in sociation. t f , 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 regu- lation of its business and the conduct of its affairs. These articles shall be signed by the fiersons uniting to form the association, and a copy of them shall be forwarded to the Comptroller of the Currency, to be filed and preserved in his office, organization 13. ( Sec. 5134.) The persons uniting to form such an certificate. ° association shall, under their hands, make an organization certificate, which shall specifically state: Name of asso- First. The name assumed by such association ; which name shall be subject to the approval of the Comptroller of the Currency. piace of tmsi- Second. The place where its operations of discount and deposit are to be carried on, designating the State, Territory, or district, and the particular county and city, town, or village. capital stock. Third. The amount of capital stock and the number of shares into which the same is to be divided. shareholders. Fourth. The names and places of residence of the share- holders and the number of shares held by each of them. object of certi- Fifth. The fact that the certificate is made to enable such persons to avail themselves of the advantages of this Title. Acknowiedg- 14. ( Sec. 5135.) The organization certificate shall be tion oertifioate. acknowledged before a judge of some court of record, or notary public ; and shall be, together with the acknowledg- ment 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 office, corporate 15. (Seo. 5136.) Upon duly making and filing articles of powers of associ- . ° . ationa. association and an organization certificate, the association 4i6. "' '' shall become, as from the date of the execution of its organ- ization certificate, a body corporate, and as such, and in the name designated in the organization certificate, it shall have power — (8) ciation, ne.ss. cate. 9 First. To adopt and use a corporate seal. Seal. Second. To have succession for the period of twenty years succession. from its organization, unless it is sooner dissolved according to the provisions of its articles of association, 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. To make contracts. contracts. Fourth. To sue and be sued, complain and defend, in any suits. court of law and [or] equity, as fully as natural persons. Fifth. To elect or appoint directors, and by its board of Appointment x L ' ^ of omcers. directors to appoint a president, vice-president, cashier, and other omcers, define their duties, require bonds of them and fix the penalty thereof, dismiss such officers or any of them at pleasure, and appoint others to fill their places. Sixth. To prescribe, by its board of directors, by-laws Bylaws, 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 privileges granted to it by law exercised and enjoyed. Seventh. To exercise by its board of directors, or duly incidental pow- J , ers. authorized officers or agents, subject to law, all such incidental powers as shall be necessary to carry on the business of bank- ing ; by discounting and negotiating promissory notes, drafts, bills of exchange, and other evidences of debt; by receiving deposits; by buying and selling exchange, coin, and bullion; by loaning money on personal security ; and by obtaining, issuing, and circulating notes according to the provisions of this Title. But no association shall transact any business except such wnenmayoom- x mence business. 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. 16. (Sec. 5137.) A national banking association may Power to hold purchase, hold, and convey real estate for the following purposes, and for no others: First. Such as shall be necessary for its immediate accom- modation 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 previously contracted in the course of its dealings. 10 Fourth. Such as it shall purchase at sales under judgments, decrees, or mortgages held by the association, or shall pur- chase to secure debts due to it. tom™gag°e n s,&o S But n ° 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. itafreq'S oap ' -^ (^ E0 - 5138.) No association shall be organized under this Title 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. No association shall be organized in a city the population of which exceeds fifty thousand persons with a less capital than two hundred thousand dollars. vaine and 18. (Sec. 5139.) The capita] stock of each association transfer of snares x ' - 1 of stock. s } ia ][ bg 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- Eights and Ha- the by-laws or articles of association. Every person becom- bilities of persons , i -i i i i i /» -i n • . -i. holding shares t>y mg a shareholder by such transfer shall, in proportion to his van Aiien vs. shares, succeed to all the rights and liabilities of the prior wan., 5tz° ib ' holder of such shares ; and no change shall be mad© in the articles of association by which the rights, remedies, or security of the existing creditors of the association shall be impaired. when capital 19. (Sec. 5140.) At least fifty per centum of the capital* paia in and 6 certi^ 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 month 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. Proceedings if 20. (Sec. 5141.) Whenever any shareholder, or his to Rr pa y hutou" 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 sucbu 11 delinquent shareholder 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 asso- ciation is located, or if no newspaper is published 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 advertisement 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 association, 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. If any such cancellation and reduc- capital to be- restored if re - tion shall reduce the capital of the association below the duced teiow minimum, or re- minimum of capital required by law, the capital stock shall, ceiver appointed. 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. 21. (Sec 5168.) Whenever a certificate is transmitted to comptroller to the Comptroller of the Currency, as provided in this Title, c ™ tim is entitled x " L ' to commence and the association transmitting the same notifies the Comp- °usiness. troller that at least fifty per centum of its capital 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 banking, the Comptroller shall examine into the condition of such association, ascertain especially the amount of money paid in on account of its capital, the name and place of residence of each of its directors, and the amount ©f the capital stock of which each is the owner in good faith, and generally whether such association has complied with all the provisions of this Title required to entitle it to engage in the business of banking : and shall cause to be made and certificate of attested by the oaths of a majority of the directors, and by directors. the president or cashier of the association, a statement of all the facts necessary to enable the Comptroller to determine whether the association is lawfully entitled to commence- th& business of banking. 12 certificate of 22. (Sec. 5169.) If, upon a careful examination of the ■ authority to com- x / 7 I wh L e e n b to°be ^ aebB so re P orte d 5 and of any other facts which may come to issued. tfl e 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 otherwise, it appears that such association is lawfully entitled to com- mence 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 pro- visions required to be complied with before commencing the business of banking, and that such association is authorized when certifi- to commence such business. But the Comptroller may with- ■cate of authority . . maybe withheld. k ld from an association his certificate authorizing the com- mencement of business, whenever he has reason to suppose that the shareholders have formed the same for any other than the legitimate objects contemplated by this Title. Publication of 23. (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. increase of 24. (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 expedient, sub- ject to the limitations of this Title. But the maximum of such increase to be provided in the articles of association, shall be determined by the Comptroller of the Currency; and no increase of capital shall be valid until the whole amount of such increase is paid in, and notice thereof has been trans- mitted 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. Reduction »f 25. (Seo. 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 circulation, nor shall any such reduction be made until the amount of the proposed reduc- capital stock. capital stock. 13 tion has been reported to the Comptroller of the Currency and his approval thereof obtained. 26. (Sec. 5144.) In all elections of directors, and in Rights of share holders to vote at deciding all questions at meetings of shareholders, each elections. shareholder shall be entitled to one vote on each share of stock held by him. Shareholders may vote by proxies duly Proxies. authorized in writing; but no officer, clerk, teller, or book- keeper of such association shall act as proxy ; and no share- holder whose liability is past due and unpaid shall be allowed to vote. 27. (Sec. 5145.) The affairs of each association shall be Number ana> v ; ' election of direo'- managed by not less than five directors, who shall be elected tow- 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 office for one year, and until their sue- Term of office, cessors are elected and have qualified. 28. (Sec. 5146.) Every director must, during his whole Qualifications. 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 office. Every director must 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. (Sec. 5147.) Each director, when appointed or elected, oath required. v ' ' " from directors. 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 per- , mit 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, sub- scribed 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, subscribed by the director making it, and certified by the officer before whom it is taken, shall be immediately trans- 14 mitted to the Comptroller of the Currency, and shall be filed and preserved in his Office. ho V sued ° ies ' ^' (^ EC - 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. Proceedings 31. (SEC. 5149.) If, from any cause, an election Of direct- where no election , u -in is held on the ors is not made at the time appointed, the association shall proper day. L L ' 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 in a newspaper published nearest thereto. If the articles of association do not fix the day on which the election shall be held, or if no election 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 directors fail to fix the day, shareholders representing two-thirds of the shares may do so. The president 32. (Sec. 5150.) One of the directors, to be chosen by must be a direc- tor. the board, shall be the president of the board. individual iia- 33. (Sec. 5151.) The shareholders of every national bank- hoiders° s are ing association shall be held individually 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 addition to the amount invested in such shares ; except that Exception as shareholders of any banking association now existing under to individual lia- J ° . " Miry. State laws, having not less than five millions of dollars of capital actually paid in, and a surplus 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 shareholders until the deficiency is made Receiver may good ; and in case of such deficiency, the Comptroller of the be appointed for _. , , . , deficiency in sur- Currency may compel the association to close its business and wind up its affairs under the provisions of Chapter four* of this Title. * Chapter five of this compilation. plus, 15 34. (Sec. 5152.) Persons holding stock as executors, Executors, * ( ° trustees, &c, not administrators, guardians, or trustees, shall not be personally personally liable. 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 inter- ested in such trust-funds would be, if living and competent to act and hold the stock in his own name. 35. (Sec. 5153.) All national banking associations, des- nut-es and iia- x ' ° 7 bilitiesof associa- ignated for that purpose by the Secretary of the Treasury, tionsn-hen desig- o l r J J J J nated as deposi- shall be depositaries of public money, except receipts from JJUJffJ* puWic customs, under such regulations as may be prescribed 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 monej'S 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 satisfactory 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. 36. (Sec. 5154.) Any bank incorporated by special law, organization of tt. ...... -. -, -, -. n State banks as or any banking institution organized under a general law of national banking 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 Mode of pro- . n . cedure. certificate may be executed by a majority of the directors of the bank or banking institution ; and the certificate shall de- clare 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 exe- cuting the articles of association and organization certificate, shall have power to execute all other papers, and to do what- ever may be required to make its organization perfect and complete as a national association. The shares of any such stares aud ,i . . ■, powers of State bank may continue to be for the same amount each as they tank after oon- Version. were before the conversion, and the 'directors may continue 16 to be the directors of the association until others are elected or appointed in accordance with the provisions of this chap- ter; 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 to have the and have accepted the provisions of this Title. When the vme" e &e'., as Comptroller of the Currency has given to such association a sociations. ' certificate, under his hand and official seal, that the provi- sions of this Title have been complied with, and that it is authorized to commence the business of banking, the asso- ciation 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 Minimum capi- and regarded as such an association. But no such associa- tal. ° tion shall have a less capital than the amount prescribed for associations organized under this Title. s*ate bants 37. (Sec. 5155.) It shall be lawful for any bank or bank- Laving branches. . . ' ._ in i' l 1 ing- association, organized under otate laws, and having branches, the capital being joint and assigned to and used by the mother-bank and branches in definite proportions, to be- come a national banking association in conformity with exist- ing 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 redeemable at the mother -bank, and each branch, to be regulated by the amount of capital assigned to and used by each. Reservation of 38. (Sec. 5156.) Nothing in this Title shall affect "any ap- rights of associa- t ° tions organized pomtments made, acts done, or proceedings had or com- underactof 1863. r ' . . menced 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, notwithstanding all the steps prescribed by this Title for the organization of associations were not pursued, if such associations were duly organized under that act. CHAPTER THREE. OBTAINING AND ISSUING CIRCULATING NOTES. 39. (Sec. 5157.) The provisions of chapters two, three, what associa- and four* of this Title, which are expressed without restrict- emed by chapters lve words, as applying to " national banking associations, Title.* or to " associations," apply to all associations organized to carry on the business of banking under any act of Congress. 40. (Sec. 5158.) The term " United States bonds," as united states used throughout this chapter, shall be construed to mean registered bonds of the United States. 41. (Sec. 5159.) Every association, after having complied , u. s. bonds to \ ' J ' ° L be deposited be- with the provisions of this Title, preliminary to the com- £ ore . commencing I ^ business. mencement of the banking business, and before it shall be see act of June . ■■ , i . i . -i i ■ m- i 20, 1874, sec. 4. authorized to commence banking business under this litle, shall transfer and deliver to the Treasurer of the United States any United States registered bonds, bearing interest, to an amount not less than thirty thousand dollars and not less than one-third of the capital stock paid in. 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. 42. (Sec. 5160.) The deposits of bonds made by each asso- Bonds to be in- 1 t creased upon io- ciation shall be increased as its capital may be paid up or in- <"-«ase or capital. creased, so that every association shall at all times have on deposit with the Treasurer registered United States bonds to the amount of at least one-third of its capital stock actually paid in. And any association that may desire to reduce its Maybe dimin- ... i t i • . . ished upon reduc- capital or to close up its business and dissolve its organization, tion of capital. 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 one-third of its capital stock, and upon which no circulating notes have been delivered. 43. (Sec. 5161.) To facilitate a compliance with the two Exchange of x * coupon for regis- preceding sections, the Secretary of the Treasury is author- tered bonds. ized to receive from any association, and cancel, any United States coupon 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. * Chapters three, four, and five of this compilation. 2* (17) 18 Transfer of 44. (Sec. 5162.) All transfers of United States bonds, bonds to and by . v ' . . „ .. rrvti Treasurer. made by any association under the provisions ot this litle, shall be made to the Treasurer of the United States in trust for the association, with a memorandum written or printed on each bond, and signed by the cashier, or some other officer 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 circulating notes that have been or may be delivered to such association. No assign- ment or transfer of any such bond by the Treasurer shall be deemed valid unless countersigned by the Comptroller of the Currency. Registry of 45. (Sec. 5163.) The Comptroller of the Currency shall keep in his Office a book in which he shall cause to be en- tered, 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 accounts the transfer is made, the name of the party to whom it is made, and the par value of the bonds trans- ferred Notice of trans- 46. (Sec 5164.) The Comptroller of the Currency shall, fer to be given to v ' r . association. immediately upon countersigning and entering any transfer 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, comptroller to 47. (Sec. 5165.) The Comptroller of the Currency shall bonds, and to have at all times, during office-hours, access to the books of urer. the Treasurer of the United States for the purpose of ascer- taining the correctness of any transfer or assignment of the bonds deposited by an association, presented to the Conap- Treasurer to troller to countersign ; and the Treasurer shall have the like books of comp- access to the book mentioned in section fifty-one hundred and sixty-three, during office-hours, to ascertain the correct- ness 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. troller. 19 48. (Sko. 5166.) Every association having bonds deposited Annual exami- ' ' J ° r nation of. ponds in the office of the Treasurer of the United States shall, once *y associations. or oftener in each fiscal year, examine and compare the bonds pledged by the association with the books of the Comp- troller of the Currency and with the accounts of the associa- tion, and, if they are found correct, to execute to the Treas- ' urer a certificate setting forth the different kinds and the amounts thereof, and that the same are in 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 ordinary business hours, as the Treasurer and the Comp- troller, respectively, may select, and may be made by an offi- cer or agent of such association, duly appointed in writing for that purpose ; and his certificate before mentionecl shall be of like force and validity as if executed by the president or cashier. A. duplicate of such certificate, signed by the Treas- urer, shall be retained by the association. 49. (Sec. 5167.) The bonds transferred to and deposited Bonds to he i m pi-n-'-in i •• nel( * t0 seclue c * r ' with the Treasurer of the United States, by auy association, cuiation. for the security of its circulating notes, shall be held exclu- sively for that purpose, until such notes are redeemed, ex- cept as provided in this Title. The Comptroller of the interest on , . bonds, how ool- (Jurrency shall give to any such association powers of attor- lected. ney to receive and appropriate to its own use the interest on the bonds which it has so transferred to the Treasurer ; but such powers shall become inoperative whenever such associa- tion fails to redeem its circulating notes. Whenever the if bonds depre- ii p iii i -I'll cia*e, deposit to market or cash value of any bonds thus deposited with the he increased. Treasurer is reduced below the amount of the circulation issued for the same, the Comptroller may demand and re- ceive 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 terms prescribed Exchange of by the Secretary of the Treasury, may permit an exchange to be made of any of the bonds deposited with the Treasurer by any association, for other bonds of the United States au- thorized 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 Retumof bonds , . .. i. i' ■ ' /» ' -i i on surrender of of any bonds to the association which transferred the same, circulation, in sums of not less than one thousand dollars, upon the sur- 20 render to him and the cancellation of a proportionate amount limitation on of such circulating notes : Provided, That the remaining withdrawal of ° , , . . , . bonds. bonds which shall have been transterred by the association 20, 1874, °ec. ™ e offering to surrender circulating 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 circulation issued for the same. Deiiveryofcir- 50. (Sec. 5171.) Upon a deposit of bonds as prescribed culating notes to x *■ associations. by sections fifty-one hundred and fifty-nine and fifty-one hundred and sixty, the association making the same shall be entitled to receive from the Comptroller of the Currency circulating notes of different denominations, in blank, regis- tered and countersigned as hereinafter provided, equal in amount to ninety per centum of the current market-value of the United States bonds so transferred and delivered, but not exceeding ninety per centum of the amount of the bonds at the par value thereof, if bearing interest at a rate not less Eatio to capital than five per centum per annum: .Provided, That the amount of circulating *- a L notes issued. f circulating notes to be furnished to each association shall be in proportion to its paid-up capital, as follows, and no more : First. To each association whose capital does not exceed five hundred thousand dollars, ninety per centum of such capital. Second. To each association whose capital exceeds five hundred thousand dollars, but does not exceed one million of dollars, eighty per centum of such capital. Third. To each association whose capital exceeds one million of dollars, but does not exceed three million [s] of dollars, seventy-five per centum of such capital. Fourth. To each association whose capital exceeds three millions of dollars, sixty per centum of such capital. Form, denomi- 51. (Sec. 5172.) In order to furnish suitable notes for printing of cirou- circulation, the Comptroller of the Currency shall, under the lating notes. * _. ■*• J ' direction of the Secretary of the Treasury, cause plates and dies to be engraved, in the best manner to guard against 21 counterfeiting and fraudulent alterations, and shall have printed therefrom, and numbered, such quantity of circula- ting notes, in blank, of the denominations of one dollar, two dollars, three dollars, five dollars, ten dollars, twenty dollars, fifty dollars, one hundred dollars, five hundred dollars, and one thousand dollars, as may be required to supply the asso- ciations entitled to receive the same. 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 Treas- urer 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. 52. (Sec. 5173.) The plates and special dies to be pro- control of i i i i-i n n 1 s^t p i ■ • plates and dies, cured by the Comptroller ot the Currency tor the printing and expenses of 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, 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. 53. (Sec. 5174.) The Comptroller of the Currency shall Annuaiexami- * ' x . nation of plates, cause to be examined, each year, the plates, dies, but-pieces, aies, &<>• [bed-pieces,] and other material from which the national-bank circulation is printed, in whole or in part, and file in his Office annually a correct list of the same. Such material as certain print- •' ing material to be shall have been used in the printing of the notes of associa- destroyed, tions 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 exam- ination or destruction shall be paid out of any appropriation made by Congress for the special examination of national banks and bank-note plates. 54. (Seo. 5 L75.) Not more than one-sixth part of the issue of notes n • i n i j? i i • under fi ve de- notes furnished to any association shall be ot a less denomi- iars, limited. nation than five dollars. After specie payments are resumed 22 no association shall be furnished with notes of a less denomi- nation than five dollars, circulation of 55. (S EC . 5176.) No banking association organized sub- eertam bunks lim- \ / D o ited to «5oo,ooo. sequent to the twelfth day of July, eighteen hundred and seventy, shall have a circulation in excess of five hundred thousand dollars. amount of &? u* ^6- (Seo. 5177.) The aggregate amount of circulating lating notes. no 'tes issued under the act of February twenty-five, eighteen See act of Jan. , n -r i 14, 1875, sec. 3. hundred and sixty-three, and under the act of June three, eighteen hundred and sixty-four, and under section one of the act of July twelve, eighteen hundred and seventy, and under this Title, shall not exceed three hundred and fifty-four millions of dollars. Apportionment 57. ( Sec. 5178.) One hundred and fifty millions of dollars of circulating \ / j notes. f the entire amount of circulating notes authorized to be Ibid. . ° issued shall be apportioned to associations in the States, in the Territories, and in the District of Columbia, according to representative population . One hun dred an d fifty millions shall be apportioned by the Secretary of the Treasury among associations formed in the several States, in the Territories, and in the District of Columbia, having due regard to the existing banking capital, resources, and business of such States, Territories, and District. The remaining fifty-four millions shall be apportioned among associations in States and Territories having, under the apportionments above pre- scribed, less than their full proportion of the aggregate amount of notes authorized, which made due application for circulating notes prior to the twelfth day of July, eighteen hundred and seventy-one. Any remainder of such fifty-four millions shall be issued to banking associations applying for circulating notes in other States or Territories having less than their proportion. Equalizing the 58. ( Sec 5179.) In order to secure a more equitable dis- distribution of, , * circulating notes, tribution oi the national banking currency, there may be issued circulating notes to banking associations organized in States and Territories having less than their proportion, and the amount of circulation herein authorized shall, under the direction of the Secretary of the Treasury, as it may be required for this purpose, be withdrawn, as herein provided, from banking associations organized in States having more than their proportion, but the amount so withdrawn shall not "0 S i874 Ot 8 O eo J 7 ne excoe & twenty-five million dollars: Provided, That no cir- 23 dilation shall be withdrawn under the provisions of this section until after the fifty-four millions granted in the first section of the act of July twelfth, eighteen hundred and seventy, shall have been taken up. 59. (Seo. 5180.) The Comptroller of the Currency shall, Method of pro- \ J r J 7 cedure in with- under the direction of the Secretary of the Treasury, make ^ a c 7 r S§ ati0 n Cess a statement showing the amount of circulation in each State see act of Jan. and Territory, and the amount necessary to be withdrawn from each association, and shall forthwith make a requisition for such amount upon such associations, commencing with those having a circulation exceeding one million of dollars, in States having an excess of circulation, and withdrawing their circulation in excess of one million of dollars, and then proceeding proportionately with other associations having a circulation exceeding three hundred thousand dollars, in States having the largest excess of circulation, and reducing the circulation of such associations in States having the greatest proportion in excess, leaving undisturbed the associations in States having a smaller proportion, until those in greater excess have been reduced to the same grade^ and continuing thus to make such reductions until the full amount of twenty-five millions has been withdrawn ; and the circulation so withdrawn shall be distributed among the States and Territories having less than their proportion, so as to equalize the same. Upon failure of any association sale of bonds x x " upon failure of to return the amount of circulating notes so required, within association to r.- ~ *■ ' turn notes. one year, the Comptroller shall sell at public auction, having given tweDty days' notice thereof in one daily newspaper printed in Washington and one in New York City, an amount of the bonds deposited by that association as security for its circulation, equal to the circulation required to be withdrawn from the association and not returned in compliance with such requisition; and he shall, with the proceeds, redeem so many of the notes of such association, as they come into the Treasury, as will equal the amount required and not returned; and shall pay the balance, if any, to the association. 60. (Sec. 5181.) Any association located in any State Removal «f ^ , „ . - . ' associations from having 1 more than its proportion of circulation may be state ha™er an o A * . i ■ • excess of oircula- removed to any State having less than its proportion of tiontooneha™g circulation, under such rules and regulations as the Comp- Ibid , troller of the Currency, with the approval of the Secretary 24 of the Treasury, shall prescribe: Provided, That the amount , of the issue of said banks shall not be deducted from the issue of fifty-four millions mentioned in section five thousand one hundred and seventy-eight. circulating 61. CSeo. 5182.) After any association receiving circula- notes, when may \ ' j o dation 6dbyass °" ^ n S n °tes 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 promissory notes, payable on demand, at its place of business, such association may issue and circulate For what de- the same as money. And the same shall be received at par mauds shall be J r received. ] n a \\ p ar ts 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, issue of other 62. (Sec. 5183.) No national banking association shall notes prohibited. x J ° SeeactofFeb. issue post-notes or any other notes to circulate as money 18, 1875, correct- r J , J mg Rev. stat. than such as are authorized by the provisions of this Title. Merchants' Bank vs. State Bank, 10 Wall., 604. Destroying and 63. (Sec 5184.) It shall be the duty of the Comptroller replacing worn- t ** L out and mutilated of the Cm-rency to receive worn-out or mutilated circulating notes. J ~ 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 circu- lating notes to an equal amount. Such worn-out or mutilated notes, after a memorandum 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 wliich shall have been paid or surrendered to be see act of June canceled, shall be burned to ashes in presence of four 23, 1874. r 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 burning, signed by the parties so appointed, shall be made in the books of the Comptroller, and a duplicate thereof forwarded to the association whose notes are thus canceled. ass oSons tio,, for f 64. (Sec. 5185.) Associations may be organized in the UO te9. ing s ° ld " manner prescribed by this Title for the purpose of issuing 25 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 Currency to issue to the association making the deposit circulating notes of different denominations, but none of them Denominations of less than five dollars, and not exceeding in amount eighty notes, and ratio of ° ° '' to bonds depos- per centum 01 the par value of the bonds deposited, which *ted. shall express the promise of the association to pay them, upon presentation at the office at which they are issued, in gold coin of the United States, and shall be so redeemable. Maximum cir- 'f t dilation. But no such association shall have a circulation of more than see act of Jan. one million of dollars. 65. (Sec. 5186.) Every association organized under the Reserve re- , ... quired on circu- preceding section shall at all times keep on hand not less i ati 9.n of gold- 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 Gou-notes to A ■*■ " *-- ° be received iitpar such association which at the time of such payment is byaiigoid-banks. redeeming its circulating notes in gold coin of the United States, and shall be subject to all the provisions of this Title: Provided, That, in applying the same to associations organized for issuing gold-notes, the terms "lawful money" "Lawful "money, "how and "lawful money of the United States" shall be construed construed. to mean gold or silver coin of the United States; and the circulation of such association shall not be within the limita- tion of circulation mentioned in this Title. 66. (Sec. 5188.) It shall not be lawful to design, engrave, Penalty for imitating nation- print, or in any manner make or execute, or to utter, issue, m-bank notes, &c. distribute, circulate, or use, any business or professional card, notice, placard, circular, hand-bill, or advertisement, in the likeness or similitude of any circulating note or other obligation or security of any banking 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 advertisement, 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 dol- lars, recoverable one-half to the use of the informer. 26 mutfiath, Uy n° r ^' ^ EC- ^9.) Every person who mutilates, cuts, de- notes" &c" tank ^ aces > disfigures, or perforates with holes, or unites or cements together, or does any other thing to any bank-bill, draft, note, or other evidence 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 re-issued by said associa- tion, shall be liable to a penalty of fifty dollars, recoverable by the association. CHAPTER FOUR. REGULATION OF THE BANKING BUSINESS. Place of busi- 68. (Sec. 5190.) The usual business of each national bank- aeS Merchants i D S association shall be transacted at an office or banking- Bmk 10 wan" house located in the place specified in its organization certifi- 604 -'^ "cate. Requirements. 69. (Sec. 5191.) Every national banking association in money reserve, either of the following cities: Albany, Baltimore, Boston, so, i874?secf™ B Cincinnati, Chicago, Cleveland, Detroit, Louisville, Milwau- kee, New Orleans, New York, Philadelphia, Pittsburgh, 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 ag- gregate amount of its notes in circulation and its deposits ; 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 Noioansordivi- notes in circulation, and of its deposits. Whenever the law- dends to be made t ' wmie reserve is f u l money of any association in any of the cities named shall below limit. j j j be below the amount of twenty-five per centum of its circu- lation and deposits, and whenever the lawful money of any other association shall be below fifteen per centum of its cir- culation and deposits, such association shall not increase its liabilities by making any new loans or discounts otherwise than by discounting or purchasing bills of exchange payable at sight, nor make any dividend of its profits until the re- quired proportion, between the aggregate amount of its out- standing notes of circulation and deposits and its lawful money of the United States, has been restored. And the Comptroller of the Currency may notify any association, whose lawful-money reserve shall be below the amount above 27 required to be kept on hand, to make good such reserve ; and Receiver may •j? i • i ii <• -i » i • i i . k e appointed for it such association shall fail lor thirty days thereafter so to failure to make d " good the reserve. 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 business of the association, as provided in section fifty-two hundred and thirty-four. 70. (Sec. 5192.) Three-fifths of the reserve of fifteen per Redemption- .-i.i i. . ii oities.and propor- centum required by the preceding section to be kept, may tion of reserve ^ J r . . . which may be consist of balances due to an association, available for the kept therein. i . j, .. . i , . n ... See aotof June redemption of its circulating notes, from associations ap- 20, 1874, sec. 3. proved 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, Baltimore, Boston, Charleston, Chicago, Cincinnati, Cleve- land, Detroit, Louisville, Milwaukee, New Orleans, New York, Philadelphia, Pittsburgh, Richmond, Saint Louis, San Prancisco, and Washington. Clearing-house certificates, rep- clearing-house resenting specie or lawful money specially deposited for the deemed lawful « i-i .. ini i money. u purpose, of any clearing-house association, shall also be deemed to be lawful money in the possession of any associa- tion belonging to such clearing-house, holding and owning such certificate, within the preceding, section. 71. (Sec. 5193.) The Secretary of the Treasury may re- u. s. certifl- C ft t OS OX Cfc' p 51 v ceive United States notes on deposit, without interest, from may °e issued, L ' and may count as any national banking associations, in sums of not less than reserve. ten thousand dollars, and issue certificates 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 in the settlement of clearing- house balances at the places where the deposits therefor were made. 72. (Sec. 5194.) The power conferred on the Secretary of Limitation u P - v ' ' ■*■ on the issue of the Treasury, by the preceding section, shall not be exercised certificates of de- so as to create any expansion or contraction of the currency. And United States notes for which certificates are issued under that section, or, other United States notes of like amount, shall be held as special deposits in the Treasury, and used only for the redemption of such certificates. 28 Agents for re- 73. (Sec. 5195.) Each association organized in any of the demption of cir- x ' ■ i_ n cuiatin K notes to cities named in section fifty-one hundred and ninety-one shall be designated. " See act of June select, subject to the approval of the Comptroller of the Cur- rency, an association in the city of New York, at which it will redeem its circulating notes at par ; and may keep one- half of its lawful-money reserve in 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 Fran- cisco for the purpose of issuing/ notes payable in gold. Each association not organized within the cities named, shall select, subject to the approval of the Comptroller, an association in either of the cities named, at which it will redeem its circu- lating notes at par. The Comptroller shall give public no- tice of the names of the associations selected, at which re- demptions are to be made by the respective associations, and of any change that may be made of the association at which Eeceiver may the notes of any association are redeemed. Whenever any be appointed for . .«.-,. . . failure to redeem association fails either to make the selection or to redeem its notes. notes as aforesaid, the Comptroller of the Currency may, ' upon receiving satisfactory evidence thereof, appoint a re- ceiver in the manner provided for in section fifty-two hun- dred and thirty-four, to wind up its affairs. But 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. National banks 74. (Sec.5196.) Every national banking association formed to receive notes l-'mi of aii other na- or existing under this Title, shall take and receive at par, tional banks. .... 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. Limitations 75. (Sec. 5197.) Any association mav take, receive, re- upon rate of in- " terest which may serve, and charge on any loan or discount made, or upon Tiffany vs. any note, bill of exchange, or other evidences of debt, inter- ot Missouri, is est at the rate allowed by the laws of the State, Territory, Wall. 409. or district where the bank is located, and no more, except that where by the laws of any State a different rate is lim- ited for banks of issue organized under State laws, the rate so limited shall be allowed for associations organized or ex- isting 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 exceed- 29 ing 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- The purchase count, or sale of a boua-fide bill of exchange, payable at Miisofexohange, , 07TJ nQt USUr y t another place than the place of such 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. 76. (Sec. 5198.)* The taking, receiving, reserving, or Penalty for i * p . i • ii i i i taking usurious charging a rate ot interest greater than mj allowed by the interest. 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 rep- resentatives, may recover back, in an aciion in the nature of an action of debt, twice the amount of the interest thus paid from the association taking or receiving the same ; provided such action is commenced within two years from the time the usurious transaction occurred. 77. (Sec. 5199.) The directors of any association may, Dividends and semi-annually, declare a dividend of so much of the net rpus profits of the association as they shall judge expedient ; but each association 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. 78. (Sec. 5200.) The total liabilities to any association, Limit of nanm- n .. . r> t* ties to an associ- of any person, or oi any company, corporation, or nrm tor atum of any P er- i i-it ■ i t i -t ■ n son, firm, or eor- money borrowed, including, in the liabilities of a company ^oration. 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 The discount i ,. • ii of bills of ex_ of bills of exchange drawn in good faith against actually change, &c, not 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. 79. (Sec. 5201.) No association shall make any loan or Associations discount on the security of the shares of its own capital stock, or purchase, their nor be the purchaser or holder of any such shares, unless Bank vs. Lanier, such security or purchase shall be necessary to prevent loss BaUardus.'Bank', upon a debt previously contracted in good faith; and stock * For part of section 5198, see page 51, under head of Suits and Jurisdiction. 30 so purchased or acquired shall, within six months from the time of its purchase, be sold or disposed of at public or pri- Receiver may vate sale ; or, in default thereof, a receiver may be appointed failure to seii to close up the business of the association, according to sec- stock. r JO tion fifty-two hundred and thirty-four. Limit of in- 80. (Sec. 5202.) No association shall at any time be in- debtedness of as- v ' . sociation. debted, or in any way liable, to an amount exceeding the amount of it's capital stock at such time actually paid in and remaining undiminished by losses or otherwise, except on account of demands of the nature following: Exceptions. First. Notes of circulation. Second. Moneys deposited with or collected by the asso- ciation. 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 dividends and reserve profits. Circulating 81. (Sec. 5203.) No association shall, either directly or notes not to be ^ hypothecated, indirectly, pledge or hypothecate any of its notes of circu- nor used to in- ^ ? jr o j r ./ crease capital, lation, for the purpose of procuring money to be paid in on its capital stock, or to be used in its banking operations, or otherwise ; nor shall any association use its circulating notes, or any part thereof,, in any manner or form, to create or increase its capital stock, withdrawal of 82. (Sec. 5204.) No association, or any member thereof, capital prohib- v .,,,.. ited - 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 Dividendnotto dividend shall be made: and no dividend shall ever be made exceednet " profits. D y an y association, while it continues its banking operations, to an amount greater than its net profits then on hand, de- Bad debts de- ducting 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 sec- tion shall prevent the reduction of the capital stock of the association under section fifty-one hundred and forty-three. SI 83. (Sec. 5205.) Every association which shall have failed Enforcing pay- . .li -iii IDent of aefici - to pay up its capital stock, as required by law, and every en °y in capital 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 Cur- rency, pay the deficiency in the capital stock, by assessment upon the shareholders pro rata for the amount of capital stock held by each ; and the Treasurer 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 Receiver may i i . ,. .iii be appointed for stock, and shall refuse to go into liquidation, as provided by failure to pay up C3.pitClI. law, for three months after receiving notice from the Comp- troller, 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. 84. (Sec. 5206.) No association shall at any time pay out Associations not on loans or discbunts, or in purchasing drafts or bills of rent notes. 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 asso- ciation 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. 85. (Sec. 5208.) It shall be unlawful for any officer, clerk, Penalty for „ .iii. • • •,. falsely certifying or agent of any national banking association to certify any checks. check drawn upon the association unless the person or com- pany 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 Receiver may m ii ,. • • ■ ■ i • ,. i . be appointed for officer, clerk, or agent of any association, in violation of this false certiacation. section, shall subject such bank to the liabilities and proceed- ings on the part of the Comptroller as provided for in section fifty-two hundred and thirty-four. 32 List of share- 86. (Sec. 5210.) The president and cashier of every j derR t.n hfl v J r Fn8 P ect S i U n ject *° na tional 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 trans- acted. 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, during business-hours of each day in which business may be legally Listto be sent transacted. A copv of such list, on the first Monday of to Comptroller, ~* ' " annually. J u iy f eac ]j y earj verified by the oath of such president or cashier, shall be transmitted to the Comptroller of the Currency. Provisions rei- 87. (Seo. 5211.) Everv association shall make to the ative to reports of / « associations to Comptroller of the Currency not less than five reports Comptroller. r J or during each year, according to the form which may be pre- scribed by him, verified by the oath or affirmation of the president 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 appropriate heads, the resources and liabilities of the associations at the close of business on any past day by him specified ; and shall be transmitted 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 the one published nearest thereto in the same county, at the expense of the association; and such pi'oof 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. Reportsofdivi- 88. (Seo. 5212.) In addition to the reports required by dends and earn- . ■, . ings. the preceding section, each association shall report to the Comptroller of the Currency, within ten days after declar- ing 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. 33 89. (Sec. 5213.) Every association which fails to make Penalty for and transmit any report required under either of the two reports to comp- . trailer. preceding sections shall be subject to a penalty of one hun- dred 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 de- posited 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. 90. (Sec. 5214.) In lieu of all existing taxes, every asso- Dutyoncircu- • • in i m ,' tt • i « • ' ati ™> deposits, ciation shall pay to the Treasurer of the United States, in andcapitaistock. the 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, and a duty of one-quarter of one per -centum each half-year upon the average amount of its de- posits, and a .duty of one-quarter of one per centum each half-year on the average amount of its capital stock, beyond the amount invested in United States. bonds. 91. (Sec, 5215.) In order to enable the Treasurer to as- semiannual , - t return of circula- sess the duties imposed by the preceding section, each asso- won, deposits, and r J r ° ' capital stook. «iation 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, and of the average amount of its deposits, and of the average amount of its capital stock, beyond the amount invested in United States bonds, for the six months next preceding the most recent first day of January or July. Every association which fails so to Penalty for , ,. ,. . ., failure to make make such return shall be liable to a penalty of two hundred return. 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 maimer in which penal- ties are to be collected of other corporations under the laws of the United States. 92. (Sec. 5216.) Whenever any association fails to make Method of as- ,..„ n .-til t .i sessment if re- the half-yearly return required by the preceding section, the *«" is not .34 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, and upon the highest amount of its deposits and capital stock, to be ascertained in such manner as the Treasurer may deem best. How tax may 93. (Skc. 5217.) Whenever an association fails to pay the sociation fails to duties imposed by the three preceding sections, the sums due may be collected in the manner provided for the collection 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. Refunding ex- 94. (Sec. 5218.) In all cases where an association has paid 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 First Comp- troller of the Treasury, shall be refunded in the ordinary manner by warrant on the Treasury. Provisions rei- 95. (Sec. 5219.) Nothing herein shall prevent all the ation of associa- shares in any association from being included in the valua- tions. * ° Bank of com- tion of the personal property of the owner or holder of such York city, 2 bi., shares, in assessing taxes imposed by authority of the State 620; Van Allen . _ , i • t i .. . i -, i i i • i vs. The Assess- withm which the association is located ; but the legislature ors, 3 Wall., 573,- . ' ° people vs. The of each State may determine and direct the manner and Commissioners, ^ ■ 4 waii., 244 ; place of taxing all the shares of national banking associations Bradley us. The r ° a Ira^^iatio^i'i l° ca t e( l within the State, subject only to the two restrictions, commonwealth! tnat tne taxat ion shall not be at a greater rate than is Lil'nbVrger 5 ™. a ssessed upon other moneyed capital in the hands of indi- Eouse, 9 wan., v i prohibit- d ed to other than Title, and all persons or , corporations doing the business of national banks. 36 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 partnership ; 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 committed or repeated. CHAPTER FIVE. DISSOLUTION AND RECEIVERSHIP. voiuntaryiiqui- 99. (Sec. 5220.) Any association may go into liquidation and be closed by the vote of its shareholders owning two- thirds of its stock. Notice of ioten- 100. (Sec. 5221.) Whenever a vote is taken to go into liquidation. 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 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. Depositofiaw- 101. (Sec. 5222.) Within six months from the date of the ful money to re- . -,..,. . . deem circulation, 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 circu- lation. 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. consolidating 102. (Sec. 5223.) An association which is in good faith banks need not , . , . , & deposit lawful winding up its business lor the purpose of consolidating with money, another association shall not be required to deposit lawful 37 money for its outstanding circulation ; but its assets and liabilities shall be reported by the association with which it is in process of consolidation. 103. (Seo. 5224.) .Whenever a sufficient deposit of lawful Re-assignment . . * . of bonds to closed money to redeem the outstanding circulation ot an associa- t»nks. tion proposing to close its business has been made, the bonds deposited by the association to secure payment of its notes shall be re-assigned to it, in the manner prescribed by section fifty-one hundred and sixty-two. And thereafter the associ- Notes to be re ation and its shareholders shall stand discharged from all ury. liabilities upon the circulating notes, and those notes shall be redeemed at the Treasury of the United States. And if prooeediDgs i i -n j« vi tit . ii ■ when association , any such bank shall tail to make the deposit and take up its fans to deposit • t n .. n • lawful money. bonds tor thirty days alter the expiration ot the time spec- g e eactofPeb. ified, the Comptroller of the Currency shall have power to ing Rev', stat. sell the bonds pledged for the circulation of said bank, at public auction in New York City, and, after providing for the redemption and cancellation of said circulation, and the necessary expenses of the sale, to pay over any balance re- maining to the bank or its legal representative. 104. (Sec. 5225.) Whenever the Treasurer has redeemed Destruction of redeemed notes. any of the notes of an association which has commenced to seeaotof June close its affairs under the six [five] preceding sections, he shall cause the notes to be mutilated and charged to the redemption account of the association ; and all notes so re- deemed by the Treasurer shall, every three months, be cer- tified to and burned in the manner prescribed in section fifty-one hundred and eighty-four. 105. (Sec. 5226.) Whenever any national banking associ- Mode of pro- ation 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, or at its designated place of redemption, Seeaotof June the holder may cause the same to be protested, in one pack- age, by a notary public, unless the president or cashier of the association whose notes are presented for payment, or the president or cashier of the association at the place at which they are redeemable 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 non-payment thereof. The 38 notary public, on making such protest, or upon receiving % such admission, shall forthwith forward such admission or notice of protest to the Comptroller of the Currency, retain- ing a copy thereof. If, however, satisfactory proof is pro- duced to the notary public that the payment of the notes demanded is restrained by order of any court of competent One protest fee, jurisdiction, he shall not protest the same. "When the holder only, on same . 1 , \ day. of any notes causes more than one note or package 10 oe protested on the same day, he shall not receive pay for more than one protest. Examination 106. (Sec. 5227.) On receiving notice that any national after notiee of banking association has failed to redeem any of its circula- protest. ° , f~ ting notes, as specified in the preceding section, the Comp- troller of the Currency, with the concurrence of the Secretary of the Treasury, may appoint a special agent, of whose ap- pointment immediate notice shall be given to such associa- tion, 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 Forfeiture of the Comptroller the fact so ascertained. If, from such pro- bonds. r . , „ test, 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. Association not 107. (Sec. 5228.) After a default on the part of an asso- after notice of ciation to pay any of its circulating notes has been ascertained See act of Feb. by the Comptroller, and notice thereof has been given by him mg Bev.' stat?° to the association, it shall not be lawful for the association suf- fering the same to pay out any of its notes, discount any notes or bills, or otherwise prosecute the business of banking, except to receive and safely keep money belonging to it, and to deliver special deposits. Notice to note- 108. (Sec. 5229.) Immediately upon declaring the bonds of an association forfeited for non-payment of its notes, the Comptroller shall give notice, in such manner as the Secre- tary of the Treasury shall, by general rules or otherwise, direct, to the holders of the circulating notes of such associ- Eedemption of ation, to present them for payment at the Treasury of the notes at Treas- my, and canoei- United States: and the same shall be paid as presented in hit km of bonds. ' *• y lawful money of the United States; whereupon the Comp- 39 tr oiler may, in his discretion, cancel an amount of bonds pledged by such association equal at current market rates, not exceeding par, to the notes paid. 109. (Sec. 5230.) Whenever the Comptroller has become sale of bonds 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 York, after giving thirty days' notice of such sale to the association. For any deficiency in the proceeds of all the bonds of an The united . '. ' \ . T T . States to have a association, when thus sold, to re-imburse to the United paramount Ken ' 7 upon assets of as- States the amount expended in paying the circulating notes sooiations. 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 administering the same. 110. (Sec. 5231.) The Comptroller may, if he deems it sale of bonds •» *» i -r-r • i n n • i at private sale. for the interest of the United States, sell at private sale any of the bonds of an association shown to have made default 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 Transfer of 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 fifty-one hundred and sixty-two, fifty-one hundred and sixty-three, and fifty-one hundred and sixty-four. 111. (Sec. 5232.) The Secretary of the Treasury may, Disposition to from time to time, make such regulations respecting the dis- redeemed by position to be made of circulating notes after presentation at- the Treasury of the United States for payment, and re- specting the perpetuation of the evidence of the payment thereof, as may seem to him proper. 112. (Sec. 5233.) All notes of national banking associa- cancellation of tions presented at the Treasury of the United States for pay- see act of June ment shall, on being paid, be canceled. bonds sold. 40 Appointment 113. (Sec. 5234.) On becoming satisfied, as specified in and duties of re- v ' , -■ n n. . ceivers. sections fifty-two hundred and twenty-six and nity-two Gibson" swaii'; hundred and twenty-seven, that any association has refused Bethel m. pah- to pay its circulating notes as therein mentioned, and is in wLT^Bank default, the Comptroller of the Currency may forthwith w'aii., i9; Are. appoint a receiver, aud require of him such bond and Piatt, Receiver, rr ' x j j.1, &c.,iBen., 534. security as he deems proper. Such receiver, under tne direction of the Comptroller, shall take possession 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 all 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. . Notice uy 114. (Sec. 5235.) The Comptroller shall, upon appointing Comptroller to . , , . . , . . creditors. a receiver, cause notice to be given, by advertisement in such newspapers as he may direct, for three consecutive- months, calling on all persons who may have claims against such association to present the same, and to make, legal proof thereof. Dividends by 115. (Sec 5236.) From time to time, after full provision Comptroller to ij» n i t-t c\ creditors. has been first made for refunding to the United States any Bank of Bethel n „ . . , . . „ . . . . to. Pahquioque denciency in redeeming the notes ot such association, the Bank 14 Wall. 383. ' 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 repre- sentatives, in proportion to the stock by them respectively held, injunction upon 116. (Sec. 5237.) Whenever an association against which receivership. 51. see sec. 736, p. proceedings have been instituted, on account of any alleged refusal to redeem its circulating notes as aforesaid, denies. 41 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 proceedings should not be enjoined, and after the decision of the court or finding of a jury that such association has not refused to redeem its cir- culating notes, when legally presented, in the lawful money of the United States, shall make an order enjoining the Comp- troller, and any receiver acting under his direction, from all further proceedings on account of such alleged refusal. 117. (Sec. 5238.) All fees for protesting the notes issued Fees and ex- *• ° penses of protest by any national banking association shall be paid by the and receivership. 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. 118. (Sec. 5239.) If the directors of any national banking Penaityforvio- • • • • • lation of P rov >- association shall knowingly violate, or knowingly permit any sionsof this Title. of the officers, agents, or servants of the association to violate 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 violation, how ■ < . determined. adjudged by a proper circuit, district, 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. And in cases of such Liability of di- ... -.. . .... . rectors for viola- violation, every dueetor who participated in or assented to «on. the same shall be held liable in his personal and individual capacity for all damages which the association, its share- holders, or any other person, shall have sustained in con- sequence of such violation. 119. (Sec. 5242.)* All transfers of the notes, bonds, bills Transfers, as- of exchange, or other evidences of debt owing to any national after an act or m- .... «t . . tit. solvency, void". banking association, or of deposits to its credit; all assign- *For part of section 5242 see page 51, under head of Suits and Jurisdiction. 42 ments 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. chapt.ee six. TAX ON UNAUTHORIZED CIRCULATION. capital of 120. (Sec. 3410.) The capital of any State bank or bank- state bank, con- v / r j yerted into na- i n g association which has ceased or shall cease to exist, or tional associa- ° tion - 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. circulation, 121. (Sec. 3411.) Whenever the outstanding circulation ■when exempted , jrom tax. • of any bank, association, corporation, company, or person is reduced to an amount not exceeding 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 eir- culation; deposits in the Treasury of the United States, in lawful money, the amount of its outstanding 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. Taxonnotesof 122. (Sec. 3412.) Every national banking association, persons or State , . . « . . , . , banks, used for btate bank, or btate banking association, shall pay a tax of circulation. r J see act of Feb. ten per centum on the amount of notes of any person, or of and 20.' "" any State bank or State banking association, used for circu- lation and paid out by them. Taxonnotesof 123. (Sec. 3413.) Every national banking association. towns, cit]es,&c, _ t!on d &r oiroula ' State bank, or banker, or association, shall pay a tax of ten ibid. per centum on the amount of notes of any town, city, or municipal corporation, paid out by them. of notes of per- 124. (Seo. 3414.) A true and complete return of the Sks? &c.', paid monthly amount of circulation, of deposits, and of capital, ibid, sec. 2i. as aforesaid, and of the monthly amount of notes of persons, out, 43 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, associa- tion, corporation, or company, in such form and manner as may be prescribed by the Commissioner of Internal Revenue, 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 Revenue. 125. (Sec. 3415.) In default of the returns provided in in default of . ».-,.-,. returns, Commis- the preceding section, the amount of circulation, deposit, sioner to esti- capital, and notes of persons, town, city, and municipal cor- porations, State banks, and State banking associations paid out, as aforesaid, shall be estimated by the Commissioner of Internal Revenue, 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 dollars, be- sides the additional penalty and forfeitures provided in other cases. 126. (Sec. 3416.) Whenever any State bank or banking National bank .-,... to make return association has been converted into a national banking asso- a^a payment of " tax of converted ciation, and such national banking association has assumed state bank. the liabilities of such Sta^te bank or banking association, in- •eluding the redemption of its bills, by any agreement or understanding 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 cir- culation shall exceed five per centum of the capital before such conversion of such State bank or banking association. 127. (Sec. 3417.) The provisions of this chapter, relating Provisions for •i i-i i- j-it tax on deposits, to the tax on the deposits, capital, and circulation ot banks, capitai,ana oircu-- L , ... lation, not to ap- and to their returns, except as contained in sections thirty- piy to national four hundred and ten, thirty-four hundred and eleven, thirty- see act of Feb. four hundred and twelve, thirty-four hundred and thirteen, ing Rev', stat. 44 and thirty-four hundred and sixteen, and such parts of sec- tions thirty-four hundred and fourteen and thirty-four hun- dred 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." united states 128. (Sec. 3701.) All stocks, bonds, Treasury notes, and ?fom ri iocai x t™a- other obligations of the United States, shall be exempt Bank «.. super- from taxation by or under State or municipal or local visors, 7 Wall., ., ■ . *, 26. authority.* CHAPTER SEVEN. STAMP-TAX ON BANK-CHECKS. Tax on bank- 129. (Sec. 3418.) There shall be levied, collected, and checks - • -i jy j seeaotofFeb. paid for and in respect of every bank-check, draft, or order for the payment of money, drawn upon any bank, banker, or trust company, at sight or on demand, by any person who makes, signs, or issues the same, or for whose use or benefit the same is made, signed, or issued, two cents. official checks 130. (Sec. 34-20.) All bank-checks, drafts, or orders, as aforesaid, issued by the officers of the United States Govern- ment, or by officers of any State, county, town, or other municipal corporation, are exempt from taxation : Provided, That it is the intent hereby to exempt from liability to taxa- tion such State, county, town, or other municipal corpora- tions in the exercise only of functions strictly belonging to them in their ordinary governmental and municipal capacity, i unstamped 131. (Sec. 3421.) No bank-check, draft, or order, required checks not admis- % x sibie in evidence, by law to be stamped, which is issued without being duly stamped, nor any copy thereof, shall be admitted or used in evidence in any court until a legal stamp, denoting the amount of tax, is affixed thereto, as prescribed by law. * Penalty for fan- 132. (Sec. 3422.) Any person or persons who shall ure to stamp ^ y u i ± checks. make, sign, or issue, or who shall cause to be made, signed, or issued, any instrument, document, or paper of any kind or description whatsoever, or shall accept, negotiate, or pay, oir cause to be accepted, negotiated, or paid, any draft, or order, for the payment of money, without the same being duly stamped, or having thereupon an adhesive stamp for denoting the tax chargeable thereon, and canceled in the manner re- quired by law, with intent to evade the provisions of this See also, in this connection, section 5413, on page 47. 45 Title, shall, for every such offense, forfeit the sum of fifty dollars, and such instrument, document, or paper, draft, [or] order, not being stamped according to law, shall be deemed invalid and of no effect: Pro aided, That hereafter, in all stamp maybe subsequently af- cases where the party has not affixed to any instrument the fi* ed *y 00lle °- stamp required by law thereon, at the time of making or seeactof June . , . , . I , , 23, 1874,' and of issuing; the said instrument, and he or they, or any party Feb.i8,i875,cor- ° ' J) J f J reotingRev.Stat., having an interest therein, shall be subsequently desirous of p- «&• affixing such stamp to said instrument, or if saif" " istrument be lost, to a copy thereof, he or they shall appear before the ■collector of the revenue of the proper district, who shall, Upon the pavment of the price of the proper stamp required by law, and ty of double the amount of tax re- maining un r ._„, no case less than five dollars, and where the whole amount of the tax denoted by the stamp required shall exceed the sum of fifty dollars, on payment also of interest, at the rate of six per centum on said tax from the day on which such stamp ought to have been affixed, affix the proper stamp to such instrument or copy, and note upon the margin thereof the date of his so doing, and the fact that such penalty has been paid ; and the same shall thereupon be deemed and held to be as valid, to all intents and purposes, as if stamped when made or issued. * * 133. (Sec. 3423.) In all cases where an adhesive stamp stamps to be is used for denoting any tax imposed under this chapter, ex- cept as hereinafter provided, the person using or affixing the same shall write thereon the initials of his name and the date on which such,stamp is attached or used, so that it may not again be used. And every person who fraudulently Penalty for ° , J r J fraudulent use. makes use of an adhesive stamp to denote any tax imposed by this chapter without so effectually canceling and obliter- ating such stamp, except as before mentioned, shall forfeit the sum of fifty dollars. * * 134. (Sec. 3424.) The Commissioner of Internal Revenue Method of can- is authorized to prescribe such method for the cancellation of stamps as substitute for, or in addition to the method pre- scribed in this chapter, as he may deem expedient and effectual. * * CHAPTEE EIGHT. CRIMES AND MISDEMEANORS. Penalty for un- 135. (Sec. 5187.) No officer acting under the provisions lawfully counter- . . sibling or.deiiv- of this Title shall countersign or deliver to any association, ering circulating ° ... notes. 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. Penalty for 136. (Sec. 5207.) No association shall hereafter offer or offering or.receiv- . ing united states receive United btates notes or national-bank notes as security or national-bank notes as security or as collateral security for any loan of money, or for a con- sideration 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 pro- visions of this section shall be deemed guilty of a misde- meanor, and shall be fined not more than one thousand dol- lars and a further sum equal to one-third of the money so loaned. The officer or officers of any association 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. Penalty forem- 137. (Sec. 5209.) Every president, director, cashier, teller, 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 direct- ors, issues or puts in circulation any of the notes of the as- sociation ; 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 de- fraud the association or 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 (46) 47 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 misde- meanor, and shall be imprisoned not less than five ye&rs nor more than ten. 138. (Sec. 5413.) The words " obligation or other security obligations or . v ' ° ^ other securities of of the United States" shall be held to' mean all bonds, cer- «ie united states ' defined. tificates of indebtedness, national -bank currency, coupons, seeaotofFeb- _ 18, 1875, correet. United States notes, Treasury notes, fractional notes, certifi- wg Ke T . stat. cates 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. 139. (Sec. 5415.) Every person who falsely makes, forges, Penalty for * ' ■' r J . ' a ' counterfeiting na- or counterfeits, or causes or procures to be made, forged, or tionai-bank notes. counterfeited, or willingly aids or assists in falsely making, forg- ing, or counterfeiting, any note in imitation of, or purporting to be in imitation of, the circulating notes, issued by any bank- ing association now or hereafter authorized and acting under the laws of the United States ; or who passes, utters, or pub- lishes, 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 publishes, or attempts to pass, utter, or publish as true, any falsely altered or spurious circulating note issued, 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 more than one thousand dollars. 140. (Sec. 5430.) Every person having control, custody, Penalty fo* or possession of any plate, or any part thereof, from which print notes with- , i . it., i -i , t • „ out authority. has been printed, or which may be prepared by direction ot 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 offi- 48- Engravingfaise cer thereof; and every person who- engraves, or causes or plate. i , . 1 i • procures to be engraved, or assists m 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 Secretary of the Treasury or other proper officer, or with any other intent, in either case, than that such plate be used for the printing of the Having in pos- obligations or other securities of the United States ; or who piate. 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 in- tent to use such plate, or suffer the same to be used in forging or counterfeiting any such obligation or other .security, or Haying in pos- any part thereof; or who has in his possession or custody, session spurious , in V /» i m nationai-bank except under authority from the secretary ot the Ireasury 110X65* or other proper officer, any obligation or other security, en- graved and printed after 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 Printing or pho- every person who prints, photographs, or in any other man- &c - ' ner makes or executes, or causes to be printed, photographed, made, or executed, or aids in printing, photographing, mak- ing, or executing any engraving, photograph, print, or im- pression in the likeness of any such obligation or other secu- rity, or any part thereof, or who sells any such engraving, photograph, print, or impression, except to the United States, Bringing into or who brings into the United States from anv foreign place the United States l ■ i liote > s' & rapbed an y su engraving, photograph, print, or impression, except > by direction of some proper officer of the United States, or who has or retains in his control or possession, after a dis- Havinginpos- tinctive paper has been adopted by the Secretary of the session distinct- m „ . . . . . , J ive bank-note Ireasury tor the obligations and other securities of the United paper. ... 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. penalty &r 141. (Sec. 5431.) Every person who, with intent to de- passing, selling, „ , ' ^ fr°aite?ed notes" traud > P asses » utters, publishes, or sells, or attempts to pass, utter, publish, or sell, or brings into the United States with 49 intent to pass, publish, utter, or sell, or keeps in possession or conceals -with like intent any falsely made, forged, coun- terfeited, or altered obligation, or other security of the United States, shall be punished by a fine of not more than five thousand dollars, and by imprisonment at hard labor not more than fifteen years. 142. (Sec. 5432.) Every person who, without authority Penalty for from the United States, takes, procures, or makes, upon lead, sum f tools, im- . r plements, &c. foil, wax, plaster, paper, or any other substance or material, an impression, stamp, or imprint of, from, or by the use of any bed-plate, bed-piece, die, roll, plate, seal, type, or other tool, implement, instrument, or thing used or fitted or in- tended 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 circulating 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. 143. (Sec. 5433.) Every person who, with intent to de- Penalty for „..,. ... , , Daring in posses- traud, has in his possession, keeping, custody, or control, sion impression without authority from the United btates, any imprint, stamp, ments, &e. 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 imprison- ment at hard labor not more than ten years, or by a fine of not more than five thousand dollars. 14-1. (Sec. 5434.) Every person who buys, sells, exchanges, penalty for transfers, receives, or delivers, any false, forged, counterfeited, oi^uai fnVfn or altered obligation or other security of the United States, notes. or circulating note of any banking association organized or acting under the laws thereof, which has been or may here- after 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 be imprisoned at hard labor not more than ten years, or fined not more than five thousand dollars, or both. 4.* 50 Penaityfor un- 145. (Sec. 5437.) In all cases where the charter of any lawfully jutting ' ' ■ „ in circulation the corporation which has been or may be created by act ot notes, drafts, &c, * . •<• j- uons° 8ed Msocia " Congress has expired or may hereafter expire, if any 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 corpora- tion for the purpose of paying or redeeming its notes and obligations, knowingly issues, re-issues, or utters as money, or in any other way knowingly 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 know- ingly 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 Persons not orE- fine and imprisonment. But nothing herein shall be con- cers or agents of ^ .. _ .. „ , , closed associa- strued to make it unlawtul for any person, not being such tions may circu- late the notes of director, officer, or agent of the corporation, or any trustee such associations. a *- " 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 hereinbefore set forth, who has received or may hereafter receive such bill, note, check, draft, or other security, bona fide and in the ordinary transactions of business, to utter as money or otherwise circulate the same. CHAPTEK NINE. SUITS, JURISDICTION, AND EVIDENCE. jurisdiction of 146. (Sec 563.) The district courts shall have iurisdic- listrir.t courts. J tion as follows : district courts. ag!inst tS nat[onai Fifteenth. Of all suits by or against any association estab- banks. lished under any law providing for national banking associ- Kennedy vs. , gipson, 8 wan., ations within the district for which the court is held. 5Uo. ****** jurisdiction of 147. (Seo. 629.) The circuit courts shall have ori their notes. may prescribe, cause the charter numbers of the association to be printed upon all national-bank notes which may be hereafter issued by him. Sec. 6. That the amount of United States notes outstand- Maximum amount of U. S. ing and to be used as a part of the circulating medium shall ?ote» outstana- not exceed the sum of three hundred and eighty-two million dollars, which said sum shall appear in each monthly state- ment of the public debt, and no part thereof shall be held or used as a reserve. Sec. 7. That so much of the act entitled "An act to pro- Provisions rei- ative to with- vide for the redemption of the three per cent, temporary- jjs^jji °I f 55> " loan certificates, and for an increase of national-bank notes," lation - i • -i • -i i, ! -it /See sec. 5179, as provides that no circulation shall be withdrawn under p-22. the provisions of section six of said act, until after the fifty- four millions granted in section one of said act shall have been taken up, is hereby repealed ; and it shall be the duty See act of Jan. of the Comptroller of the Currency, under the direction of the Secretary of the Treasury, to proceed forthwith, and he is hereby authorized and required, from time to time, as applications shall be duly made therefor, and until the full amount of fifty-five million dollars shall be withdrawn, to make requisitions upon each of the national banks described in said section, and in the manner therein provided, organized in States having an excess of circulation, to withdraw and return so much of their circulation as by said act may be ' apportioned to be withdrawn from them, or, in lieu thereof, to deposit in the Treasury of the United States lawful money sufficient to redeem such circulation; and upon the return of Bonds to bo 1 returned to asso- the circulation required, or the deposit of lawful money, as elation m propor- *■ 7 L d ' tion to circulation herein provided, a proportionate amount of the bonds held withdrawn. to secure the circulation of such association as shall make such return or deposit shall be surrendered to it. Sec. 8. That upon the failure of the national banks upon sol ^° ^f ilu ^ e * e f which requisition for circulation shall be made, or of any ^cireSatiom" of them, to return the amount required, or to deposit in the ibid. Treasury lawful money to redeem the circulation required, within thirty days, the Comptroller of the Currency shall at once sell, as provided in section forty-nine of the national- see sec. 5231, currency act, approved June third, eighteen hundred and sixty-four, bonds held to secure the redemption of the circu- 58 lation of the association or associations which shall so fail, to an amount sufficient to redeem the circulation required of such association or associations, and with the proceeds, which shall be deposited in the Treasury of the United States, so much of the circulation of such association or associations shall be redeemed as will equal the amount required and not returned; and if there be an excess of proceeds over the amount required for such redemption, it shall be returned to the association or associations whose Aesistanttreas- bonds shall have been sold. And it shall be the duty of t™rfe™ to ep a 6 B- the Treasurer, assistant treasurers, designated depositaries, notes to Treas- and national bank depositaries of the United States, who shall be kept informed by the Comptroller of the Currency of such associations as shall fail to return circulation as required, to assort and return to the. Treasury for redemp- tion the notes of such associations as shall come into their hands until the amount required shall be redeemed, and in like manner to assort and return to the Treasury, for redemp- tion, the notes of such national banks as have failed, or gone into voluntary liquidation for the purpose of winding up their affairs, and of such as shall hereafter so fail or go into liquidation. Providing for Sec. 9. That from and after the passage of this act it the issue of new notes in place of shall be lawful for the Comptroller of the Currency, and he $55,000,000 with- r ■" drawn. i s hereby required, to issue circulating notes, without delay, 14, 1875, sec. 3. ' as applications therefor are made, not to exceed the sum of fifty-five million dollars, to associations organized, or to be organized, in those States and Territories having less than their proportion of circulation, under an apportionment made on the basis of population and of wealth, as shown by the returns of the census of eighteen hundred and seventy ; and New associa- every association hereafter organized shall be subject to, tionstobesubject , ° , J 7 to nationai-bank and be governed by, the rules, restrictions, and limitations, and possess the rights, privileges, and franchises, now or hereafter to be prescribed by law as to national banking associations, with the same power to amend, alter, and repeal Provisos tela- provided by " the national-bank act :" Provided, That the tive to withdraw- , ai of circulation, whole amount of circulation withdrawn and redeemed from banks transacting business shall not exceed fifty-five million dollars, and that such circulation shall be withdrawn and redeemed as it shall be necessary to supply the circulation previously issued to the banks in those States having less 59 than their apportionment: And provided further, That not more than thirty million dollars shall be withdrawn and redeemed as herein contemplated during the fiscal year end- ing June thirtieth, eighteen hundred and seventy-five. Approved June 20, 1874. EXTRACT EKOM AN ACT Making appropriations for sundry civil expenses of the Government for the fiscal year ending June 30, 1875. For the maceration of national-bank notes, United States Notes to be de- stroyed by mac- nOteS, and other obligations of the United States authorized eration instead of ° by burning. to be destroyed, ten thousand dollars; and that all such see sees. 5184 issues hereafter destroyed may be destroyed by maceration and 37. instead of burning to ashes, as now provided by law ; and that so much of sections twenty-four and forty-three of the national-currency act as requires national-bank notes to be burned to ashes is hereby repealed. Approved June 23, 1874. AN ACT To provide for the resumption of specie payments. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Secretary of the Treasury is hereby authorized and issue of silver . . -,-, . 1 \ coins for the re- reqmred, as rapidly as practicable, to cause to be coined, demption of trac- /• 1 r-r -1 n -i • J- • ^""^ currency at the mints of the United Spates, silver coins of the denomi- authorized. nations of ten, twenty-five, and fifty cents, of standard value, and to issue them in redemption of an equal number and amount of fractional currency of similiar denominations, or, at his discretion, he may issue such silver coins through the mints, the sub-treasuries, public depositaries, and post-offices 1 of the United States; and, upon such issue, he is hereby authorized and required to redeem an equal amount of such fractional currency, until the whole amount of such fractional currency outstanding shall be redeemed. 60 Repeal of au- Skc. 2. That so much of section three thousand five thority to charge , „ * , a percentage for hundred and twenty-four of the Revised Statutes ot the conversion of ^ bunion into coin. United States as provides for a charge of one-fifth of one per centum for converting standard gold bullion into coin is hereby repealed ; and hereafter no charge shall be made for that service. Repeal of pro- Sec. 3. That section five thousand one hundred and vision limiting • . . .. aggregate amo'nt seventy-seven of the Revised Statutes, limiting the aggregate notes. amount of circulating notes of national banking associations, to 5i8i, pages S3 be, and is hereby, repealed; and each existing banking association may increase its circulating notes in accordance with existing law without respect to said aggregate limit ; and new banking associations may be organized in accord- ance with existing law without respect to said aggregate Repeal of pro- limit ; and the provisions of law for the withdrawal and visions for with- L drawai of cur- redistribution of national bank currency among the several rency. ^ ° See act of June States and Territories are hereby repealed. And whenever, 20 1874 sees. 7 8, and 9.' ' and so often, as circulating notes shall be issued to any such of R il d a1te5de?s n Dan khig association, so increasing its capital or circulating noteTarrteued* note 8 ? or s0 newly organized as aforesaid, it shall be the duty of the Secretary of the Treasury to redeem the legal- tender United States notes in excess only of three hundred million of dollars, to the amount of eighty per centum of the sum of national-bank notes so issued to any such banking -.. Legai-tenders association as aforesaid, and to continue such redemption as not to be reduced . , mi i -ii i beiow $300,000,- such circulating notes are issued until there shall be out- 000. ° standing the sum of three hundred million dollars of such coin redemp- legal-tender United States notes, and no more. And on and tion on and after p -i p i o t -rv ■ • • i -i-it Jan. i, 1879. alter the first day ot J anuary, anno Domini eighteen hundred and seventy-nine, the Secretary of the Treasury shall redeem, in coin, the United States legal-tender notes then outstand- ing, on their presentation for redemption at the office of the assistant treasurer of the United States in the city of New Providing for York, in sums of not less than fifty dollars. And to coin redemption. . . . « _ , m enable the secretary ot the lreasury to prepare and provide for the redemption in this act authorized or required, he is authorized to use any surplus revenues, from time to time, in the Treasury not otherwise appropriated, and to issue, sell, and dispose of, at not less than par, in coin, either of the descriptions of bonds of the United States described in the act of Congress approved July fourteenth, eighteen hundred and seventy, entitled "An act to authorize the 61 refunding of the national debt," with like qualities, privi- leges, and exemptions, to the extent necessary to carry this act into full effect, and to use the proceeds thereof for the purposes aforesaid. And all provisions of law inconsistent with the provisions of this act are hereby repealed. Approved January 14, 1875. AN ACT To remove the limitation restricting the circulation of banking asso- ciations issuing notes payable in gold, Be it enacted by the Senate and House of Representa- tives of the United States of America in Congress assem- bled, That so much of section five thousand one hundred Repeal of limit and eighty-five of the .Revised Statutes of the United States circulation of na- . . „ , , . ., . tional gold-banks- as limits the circulation ot banking associations, organized see sec. sies, for the purpose of issuing notes payable in gold, severally to one million dollars, be, and the same is hereby, repealed ; and each of such existing banking associations may increase its circulating notes, and new banking associations may be organized, in accordance with existing law, without respect to such limitation. Approved January 19, 1875. p. 25. EXTRACT FROM AN ACT To amend existing customs and internal revenue laws, and for other purposes. Sec. 15. That the words "bank-check, draft, or order for Tax on tank- checks. the payment of any sum of money whatsoever, drawn upon gee sec. mis, any bank, banker, or trust-company, at sight or on demand, p ' two cents," in Schedule B of the act of June thirtieth, eighteen hundred and sixty-four, be, and the same is hereby, stricken out, and' the following paragraph inserted in lieu thereof: " Bank-check, draft, order, or voucher for the payment of any sum of money whatsoever, drawn upon any bank, banker, or trust-company, two cents." Sec. 19. That every person, firm, association other than J^ " 00 ^,^ national bank associations, and every corporation, State tanks paid out. „ See sees. 3412 bank, or State banking association, shall pay a tax ot ten and 3413, P . 42. 62 per centum on the amount of their own notes used for cir- culation and paid out by them. of T CT 9 on8 stlte ^ E0 ' 20 - ^at every such person, firm, association, cor- oifie^ &at°™ed potation, State bank, or State banking association, and also for circulation. ^ everv national banking association, shall pay a like tax of and 3413, p! k ~ 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 association, or of any town, city, or municipal corporation, used for cir- culation and paid out by them. Returns to be Sec. 21. That the amount of such circulating notes, and made to the Com- . -i-iit tji ■ j missioner of in- ot the tax due thereon, shall be returned, and the tax paid ternal Revenue. , ( . See sec 3414, at the same time, and m 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. Approved February 8, 1875. EXTRACTS FEOM AN ACT To correct errors and to supply omissions in the Revised Statutes of the United States.* Be it enacted by the Senate and House of Representa- tives of the United States of America in Congress assem- Pnrposeofact. bled, That for the purpose of correcting errors and supply- ing omissions in the act entitled "An act to revise and con- solidate the statutes of the United States in force on the first day of December, anno Domini one thousand eight hundred and seventy-three," so as to make the same truly express such laws, the following amendments are hereby made therein : com a troiief° eof Section three hundred and thirty is amended by adding thereto the following : "A description of the seal, with an impression thereof, and a certificate of approval by the Sec- retary of the Treasury, shall be filed in the Office of the Secretary of State." Annual report Section three hundred and thirty-three is amended bv in- of Comptroller. d J serting, after the word " Congress," in the second line, the words "at the commencement of its session." "The corrections indicated have been made in the text. 63 Section six hundred and twenty-nine is amended by strik- suits by banks. ing out, in the first line of paragraph eleven, the words " or against." Section three thousand four hundred and seventeen is Tax on aepos- nl1 , , .,,,,•,. .» i t its, capital, and amended by inserting, in the fourth* line, after the word circulation. " twelve," the words " thirty-four hundred and thirteen." Section three thousand eight hundred and eleven is amended Annual report i -i • // n e> i m n i • • of Comptroller. by striking out "Secretary of the lreasury, and inserting " Comptroller of the Currency ;" also, by adding, after the word "banks," in the second line, the words "and banks under State and. territorial laws." Section five thousand one hundred and eighty-three is Post-notes pro- amended by inserting, after the word " issue," in the second line, the words "post-notes or." Section five thousand one hundred and ninety-eight is where suits iii it i i pn • //mi • against assooia- amended by adding thereto the following : " lhat suits, ac- tions maybe tad. tions, and proceedings against any association under this Title may be had in auy circuit, district, or territorial court of the United States held within the district in which such associ- ation may be established, or in any State, county, or munici- pal court in the county or city in which said association is located having jurisdiction in similar cases." Section five thousand two hundred and twenty-four is _ Bondsofciosed •> banks to be sold amended by adding thereto the following : "And if any such tor B Jf ™jJ,J^ bank shall fail to make the deposit and take up its bonds for notes - thirty days after the expiration of the time specified, the Comptroller of the Currency shall have power to sell the bonds pledged for the circulation of said bank, at public auc- tion in New York City, and, after providing for the redemp- tion and cancellation of said circulation and the necessary expenses of the sale, to pay over any balance remaining to the bank or its legal representative." Section five thousand two hundred and twenty-eight is Failure to re- . i . 1 i , deem circulating amended by striking out, in the third line, the words "of no * es - forfeiture of the bonds," and inserting the word "thereof." Section five thousand four hundred and thirteen is amended Denning nation- al currency # by inserting, in the third line, after the word " national," the word " bank." Approved February 18, 1875. * Fifth line of this compilation. 64 AN ACT To amend section five thousand two hundred and forty of the Eevised Statutes of the United States, in relation to compensation of national-bank examiners.* Be it enacted by the Senate and House of Representa- tives of the United States of America in Congress assem- Deflnin K the bled, That section five thousand two hundred and forty of compensation of national tank ex- the Kevised Statutes of the United States be so amended aminers. see page 35. that the latter clause of said section, after the word " Comp- troller" in the eighth f line of said section, be amended so that the same shall read as follows, namely : " That all per- sons appointed to be examiners of national banks not located in the redemption-cities specified in section five thousand one hundred and ninety-two of the Kevised 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 thou- sand 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 hundred thousand dollars and less than five hundred thousand dollars,; forty dollars ; those having a capital of five hundred thou- sand dollars and less than six hundred thousand dollars, fifty dollars ; those having a capital of six hundred thousand dol- lars and over, seventy-five dollars ; which amounts shall be assessed by the Comptroller of the Currency upon, and paid' by, the respective associations so examined, and shall be in lieu of the compensation and mileage heretofore allowed for Compensation of making said examinations ; and persons appointed to make examiners in cer- t ° # t t t >> LI tain cities, states, examination of national banks in the cities named in section and Territories. five thousand one hundred and ninety-two of the .Revised Statutes of the United States, or in any one of the States of Oregon, California, aiid Nevada, or in the Territories, shall receive such compensation as may be fixed by the Secretary of the Treasury upon the recommendation of the Comptroller of the Currency ; and the same shall be assessed and paid in the manner hereinbefore provided." Approved February 19, 1875. * This amendment has been incorporated into the text, t Ninth line of this compilation. 65 A. D D E 1ST 13 A. AN ACT To provide for the stamping of unstamped instruments, documents, or papers. Be it enacted by the Senate and House of Representa- tives of the United States of America in Congress assem- bled, That all instruments, documents, and papers hereto- stamps may be tore made, signed, or issued, and subject to a stamp-duty or ed checks until tax under any law heretofore existing and remaining un- s e e sec. '3422, P . stamped, may be stamped by any person having an interest u ' therein, or, where the original is lost, a copy thereof, at any time prior to the first of January, eighteen hundred and seventy-six. And said instruments, documents, and papers, and any record thereof, shall be as valid, to all intents and purposes, as if stamped when made, signed or issued; but no right acquired in good faith shall in any manner be affected by such stamping as aforesaid : Provided, That to render By whom, and •> r a ^ h0Wi affixed. such stamping valid, the person desiring to stamp the same shall appear with the instrument, document, or paper, or copy thereof, before some judge or clerk of a court of record, and before him affix the proper stamp ; and the said judge or clerk shall indorse on such writing or copy a certificate, under his hand, when made by said judge, and under his hand and seal, when made by said clerk, setting forth the date at which, and the place where, the stamp was so affixed, the name of the person presenting said writing or copy, the fact that it was thus affixed, and that the stamp was duly ■canceled in his presence. Sec. 2. That all laws or parts of laws in conflict with the Repeating clause, above are hereby repealed. Approved June 23, 1874. EXTRACT FKOM AN ACT To correct errors and supply omissions in the Eevised Statutes of the United States, Section three thousand four hundred and twenty-two is Amending sec. . , 3422 of Kev. Stat, amended by inserting, after the word " issued, in the twenty- reiae™ to ™- •< o> 'J stamped mstra- seventh* fine, the following: "And provided further, That ments - where it shall appear to said collector, upon oath or other- * Thirty-second line of this compilation. 66 Collector may wise, to his satisfaction, that any stick instrument has not affix stamp with- ' •* , outpeDaityinoer-been duly stamped at the time of making or issuing the tarn cases. - «/ r o o same, by reason of accident, mistake, inadvertence, or urgent necessity, and without any willful design to defraud the United States of the stamps, or to evade or delay the pay- ment thereof, then, and in such case, if such instrument, or, if the original be lost, a copy thereof, duly certified by the officer having charge of any records in which such original is required to be recorded, or otherwise duly proven to the satisfaction of the collector, shall, within twelve calendar- months after the making or issuing thereof, be brought to the said collector of revenue to be stamped, and the stamp- tax chargeable thereon shall be paid, it shall be lawful for the said collector to remit the penalty aforesaid, and to cause- uch instrument to be duly stamped." Approved February 18, 1875. ACTS NOT OF A GENERAL NATURE. 1868-'75. (67) ACTS NOT OF A GENERAL NATURE. AN ACT Authorizing the First National Bank of Annapolis to change its location and name. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the First Na- tional 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 Bal- timore, in said State. Whenever the stockholders 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 deter- mination, 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 operations 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 ac- tion 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, no'tice 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 Comp- troller 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 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. (69) 70 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 Gerinania National Bank of New Orleans. Approved March 1, 1869. Authorizing The Second National Bank of Plattsburgh, New York, to change its name to The Vilas National Bank of Plattsburgh. Approved 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, Pennsylvania. 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. 71 Authorizing The Warren National Bank of South Danvers, Massa- chusetts, to change its 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 Railroad National Bank of Lowell, Massachusetts, to change its location and name to The Bailroad 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 Evansville, 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. 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. Approved March 3,. 1873. 72 Authorizing The First National Bank of Saint Anthony, Minnesota, to change its location and name to The Merchants' National Bank of Minneapolis, Minnesota. Approved January 8, 18*74. 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 Pittsburgh, Pennsylvania. Approved June 23, 1874. Authorizing The Citizens' National Bank of Sanbornton, New Hampshire, 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. 73 Authorizing The Slater National Bank of North Providence, Khode Island, to change its name to The Slater National Bank of Pawtucket, Khode 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. INDEX. A. Par. Page. Acknowledgment of organization certificate 14 8 Administrators holding stock not personally liable 34 15 Advertisement. (See Publication. ) Advertisements in imitation of circulating notes, penalty for 66 25 Agent of association to examine, annually, bonds deposited 48 19 For witnessing the destruction of mutilated notes 63 24 For redemption of circulating notes, where to be selected - 73 28 Of association not to certify checks except against actual deposits 85 31 Special, to examine bank under protest 106 38 Of closed bank forbidden to re-issue its circulating notes 146 50 Aiding or abetting misdemeanor of officers of association 137 47 Altered circulating notes, penalty for making or passing 139 47 Purchase, sale, receipt, or delivery of, penalty for 144 49 Amendment of various sections of the Eevised Statutes ., 62 Of provisions fixing compensation of bank examiners 64 Of provisions relative to stamps on bank-checks 65 Annual report of Comptroller to Congress, contents of 10 7 When may be printed 11 7 Appointment of Comptroller 2 5 Of Deputy Comptroller 4 5 Of officers of associations 15 9 Of directors of association 15 9 Of special commission to examine bank before commencing business 22 12 Of directors, in case of vacancy 30 14 Of redemption agent • 73 28 Of bank examiner 96 34 Of special agent to examine association under protest 106 38 Of receiver .'• Jl 3 40 Apportionment of circulation to States and Territories 37 22 Equalization of 58 22 Of issue of $55,000,000 of circulation for redistribution 9 58 Articles of association, contents of, and how made 12 8 Copy of, to be transmitted to Comptroller 12 8 Not to be changed to the detriment of existing creditors 18 10 Of converted State bank 36 15 Assessment upon shareholders to pay deficiency in capital stock 83 31 Of penalty for failure to make reports to Comptroller 89 33 Of duties upon circulation, deposits, and capital 92 33 Of taxes by State authority on shares of associations 95 34 Upon association for compensation of examiner 96 35 Upon association for reimbursement of cost of redeeming notes 3 56 Assessors of State taxes may inspect list of shareholders 86 32 Assets of closed associations, by whom to be reported 102 37 United States to have a paramount lien upon 109 39 Disposition of, by receiver 113 40 Surplus of, remaining after settlement of claims, disposition of. 115 40 Assignment of bonds. (See Transfer.) Of assets of association, after act of insolvency, void 119 41 Executed and sealed by Comptroller, to be evidence 153 51 (75) 76 Par. Page, Assistant treasurers to forward mutilated notes to Treasurer 3 56 To forward notes of closed banks and notes to be withdrawn 8 58 Associations defined , 39 17 Attachment not to issue from State court before final judgment 150 51 Auction, sale at, of stock of delinquent shareholder 20 10 Of bonds of association for failure to withdraw circulation 59 23 Of stock taken by association for debt 79 30 Of bonds of closed bank for failure to deposit lawful money 103 37 Of bonds of association under protest 109 39 Authority to commence business. (See Certificate of authority.) B. Bad debts defined 82 30 Bank-cliecks, for falsely certifying, receiver appointed 85 31 Stamp-tax upon 129 44 If official, to be exempt from tax 130 44 Not to be used in evidence when unstamped 131 44 Penalty for failure to affix stamp upon 132 44 Cancellation of stamp 133 45 Commissioner may prescribe mode of cancellation 134 45 Amendment relative to stamp-tax upon 15 61 May be subsequently stamped before judge of court of record 1 65 Kepeal of conflicting laws relative to stamp upon 2 65 May, in certain cases, be subsequently stamped without penalty 65 Bank-note paper, penalty for having unlawfully 140 48 Bank-notes. (See Circulating notes.) Banks in District of Columbia, Comptroller to examine 9 6 Banks, Stale. (See State banks.) Bed-plates to be examined annually by Comptroller 53 21 Of closed associations to be destroyed 53 21 Bills of exchange, discount of, when not usurious 75 29 When discount of, not considered money borrowed 78 29 Bond, official, of Comptroller 3 5 Of Deputy Comptroller 4 6 Of receiver 113 40 Bonds deposited with Treasurer, by public depositaries 35 15 By association before commencing business, description of 41 17 Not to be less than $30,000, nor less than one-third of capital 41 17 Increase of, on increase of capital 42 17 Withdrawal of, on return of circulating notes 42 17 May not be reduced by withdrawal below one-third of capital 42 17 May be wholly withdrawn by closed association 42 17 Coupon, may be changed to registered 43 17 Transfer of; how made 44 18 To be countersigned by Comptroller when transferred 44 18 Transfer of, to be registered by Comptroller 45 18 Notice of transfer of, to be given to association 46 18 Comptroller to have access to 47 18 To be examined by association annually 48 19 To be held as security for circulating notes 49 19 Interest on, how collected by association 49 19 If depreciated, deposit to be strengthened 49 19 May be exchanged by consent of Comptroller 49 19 May be returned to association on surrender of circulating notes 49 19 I ( Par. Page. Bends deposited with Treasurer, limitation of withdrawal of 49 20 Ratio of circulating notes to 50 20 May be sold for failure to withdraw circulation . . . : 59 23 By national gold-banks, description of 64 25 Interest on, withheld for failure to pay up capital stock 83 31 Interest on, withheld for failure to make reports to Comptroller 89 33 Interest on, withheld for failure to report circulation and deposits 91 33 Interest on, withheld for failure to pay tax on circulation and deposits 93 34 Re-assignnient of, to closed association 103 37 Of closed banks, may be sold for failure to deposit lawful money 103 37 Forfeiture of, for failure to redeem circulating notes 106 38 Cancellation of, upon failure to redeem circulating notes 108 39 Sale of, at auction, for failure to redeem circulating notes 109 39 Sale of, at private sale, for failure to redeem circulating notes 110 39 Sale of, not complete until transfer is made 110 39 Not to be applied to payment of protest fees 117 41 May be withdrawn upon deposit of lawful money in sums of $9,000 4 56 Not to be reduced by withdrawal below $50,000 4 56 To be returned to banks from which circulation is withdrawn 7 57 To be sold for failure to withdraw- circulation 8 57 Bonds of United States defined 40 17 Not taxable under State, municipal, or local authority 128 44 May be issued by Secretary to provide for coin redemption 3 60 Book-keeper cannot act as proxy 26 13 Books of Comptroller and Treasurer to be accessible to each officer 47 18 Bureau of Comptroller of Currency established 1 5 Burning of mutilated notes by Comptroller 63 24 Of notes of closed association by Treasurer 104 37 Of circulating notes retired by deposit of lawful money 4 56 Maceration to be substituted for 59 Business, place of, to appear in organization certificate 13 8 Association not to transact, until authorized by Comptroller 15 9 Not authorized to commence, until half of capital is paid in 19 10 When association may be authorized to commence - 22 12 When authority to commence, may be withheld 22 12 Directors to be elected before commencing 27 13 Association to deposit bonds before commencing 41 17 Circulating notes payable on demand at place of. 61 24 To be conducted at place specified in organization certificate 68 26 Not to be prosecuted by bank after protest of circulating notes 107 38 Business paper, when discount of, not deemed money borrowed 78 29 By-laws of associations 15 9 C. Cancellation of stock of delinquent shareholders 20 11 Of coupon bonds received, and issue of registered bonds 43 17 Of bonds forfeited for non-payment of circulating notes 108 39 Of circulating notes redeemed by Treasurer 112 39 Of stamps on bank-checks 133 45 Method of, for stamps, prescribed by Commissioner 134 45 Of stamps subsequently affixed to bank-checks 1 65 Capital stock, minimum amount of, for associations 17 10 Value and transfer of shares of- 18 10 Shares of, to be deemed personal property 18 10 78 Par. Page. Capital stock, when to be paid in, and how certified 19 10 Of delinquent shareholders may be sold by association 20 10 If reduced below minimum must be increased, or receiver appointed 20 11 How increased 24 12 How reduced, and limit of reduction 25 12 Each director must hold ten shares of. - 28 13 In other banks, when may be held by converted State bank - . 36 16 Bonds deposited to be not less than one-third of 41 17 If increased, bonds deposited to be increased 42 17 If reduced, bonds may be withdrawn on return of circulation 42 17 Bonds deposited not to be reduced below one-third of , 42 17 Maximum ratio to, of circulation issued 50 20 Money borrowed by any person or firm limited to one-tenth of. 78 29 Loans on, and purchase of, by association forbidden 79 29 If taken for debt to be sold, or receiver, appointed 79 30 Indebtedness of association not to exceed 80 30 Creation or increase of, by use of circulating notes forbidden 81 30 Withdrawal of, in dividends or otherwise, prohibited 82 30 If impaired or deficient to be made good, or receiver appointed 83 31 United States tax upon 90 33 Report of average amount of, to Treasurer 91 33 Treasurer to estimate, if association fails to report £2 33 Tax upon, how collected if association fails to pay 93 34 Capital stock of converted State bank, minimum amount of 36 16 Shares of, to remain same as before conversion 36 15 Total amount of, same as before conversion 120 42 Cards in imitation of circulating notes, penalty for issuing 66 25 Cashier, appointment of 15 9 To certify installments of capital stock paid in 19 10 Oath of, before being authorized to commence business 21 11 To notify Comptroller of payment of increase of capital stock 24 12 To notify Comptroller of reduction of capital stock ., . . 25 12 Cannot act as proxy 26 13 To sign memorandum on bonds transferred 44 18 To sign circulating notes 51 21 Effect of signature of, on circulating notes 61 24 Forbidden to certify checks except against actual deposits 85 31 To keep list of shareholders, subject to inspection 86 32 To verify list of shareholders and transmit same to Comptroller 86 32 To make and verify reports of condition of association 87 32 To make and verify reports of dividends and earnings 88 32 To make return to Treasurer of circulation, deposits, and capital 91 33 May be examined on oath' by examiner 96 35 Cannot be examiner of bank of which he is an officer 96 35 To certify notice of liquidation to Comptroller 100 36 May waive notice of protest of circulating notes 105 37 To make return for taxation of notes of State banks, &c, paid out 124 42 Not to loan money on United States or national-bank notes 136 46 Embezzlement by, penalty for 137 45 Of closed bank forbidden to re-issue its circulating notes 145 50 Cirtificate of approval of seal of office by Secretary of Treasury 7 6 Of installments of capital stock paid in' jc) 10 Of officers and directors before commencing business 21 11 Of Comptroller, approving increase of capital 24 12 Of agent of association, of examination of bonds deposited 48 19 79 Par. Page. Certificate of Comptroller, of burning of mutilated notes 63 241 Of association, of intention to go into liquidation 100 36 Of Treasurer, of burning of notes of association 104 37" Certificate of authority must be had before commencing business 15 9 Duty of Comptroller before granting 21 11 When to be granted, and form of 22 12- May be withheld, when 22 12, Publication of, by association 23. 12 For converted State bank 36 16 Before receiving, association to deposit bonds' with Treasurer 41 17 Certificate of organization. (See Organisation certificate.) Certificates executed and sealed by Comptroller to be evidence 153 51 Certificates, clearing-house, lawful money reserve, when 70 27 Certificates of deposit of United States notes, issue of j authorized 71 27 Form and denominations of 71 27 May count as lawful money reserve - 71 27 May be used in settlement of clearing-house balances 71 27 Currency not to be expanded or contracted by issue of 72 27 Notes for which they are issued to be held as special deposits 72 27 Certified copies of papers to be evidence 154 52 Certifying checks falsely, receiver appointed for 85 31 Charter number of association to be printed upon its notes 5 57 Checks of tanks. (See Bank-checks.) Circuit court. (See Courts.) Circulars in imitation of circulating notes, penalty for issuing , 66 25 Circulating notes of all associations to be taken by depositaries 35 15 Of converted State bank with branches, how regulated 37 16 May be returned and bonds withdrawn, when 42 17 Bonds deposited to be held as security for 49 19 May be surrendered and bonds returned to association, when 49 19 Ratio of, to bonds and capital 50 20 Form, denominations, and printing of 51 20 Expenses of Bureau to be paid out of tax upon 52 21 Of denominations less than five dollars, limitation of 54 21 Of certain associations not to exceed $500,000 55 22 Aggregate amou nt of, not to exceed $354,000,000 56 22 Apportionment of, to States and Territories 57 22 Withdrawal and re-issue of $25,000,000 of, to equalize apportionment 58 22 Method of withdrawal and redistribution of 59 23 If not withdrawn by association, Bonds to be sold 59 23 Associations in States having an excess of, may remove 60 23 By whom signed, where payable, and for what receivable 61 24 Other than herein authorized, forbidden to associations 62 24 Lost or mutilated, how replaced and destroyed 63 24 Imitations of, penalty for issuing 66 25 Mutilation of, penalty for 67 26 Lawful money reserve required upon 69 26 Agent for redemption of, to be selected, and where 73 28 Names of agents for redemption of, to be published by Comptroller 73 28 Where redeemable at par .' 73 28 For failure to redeem, receiver may be appointed. - 73 28 To be received by all associations except gold-banks 74 28 Use of, to pay in, or to increase, capital stock, forbidden 81 30 Depreciated, or uncurrent, not to be paid out by association 84 31 United States semi-annual tax upon 90 33 80 Par. Page. Circulating notes, report of average amount of, to Treasurer 91 33 Treasurer to estimate amount of, if bank fails to make return 92 33 Tax upon, how collected if association fails to pay 93 34 Of closed associations to be retired — 101 36 Of consolidating banks need not be retired 102 36 Of closed banks, when to be redeemed by Treasurer 103 37 Of closed banks, destruction of, by Treasurer 104 37 Protest of, when and how made 105 37 On protest of, Comptroller to notify bill-holders 108 38 Of association under protest to be paid at Treasury 108 38 In case of protest of, bonds may be sold at auction 109 39 In case of protest of, bonds may be sold at private sale 110 39 Disposition of, after redemption by Treasurer - Ill 39 Evidence of payment of, by Treasurer, how perpetuated Ill 39 Cancellation of, after payment by Treasurer 112 39 For failure to redeem,, receiver may be appointed - - 113 40 Not taxable when less than five per centum of capital 121 42 Of converted State bank, national association to pay tax upon 126 43 Not taxable under State, municipal, or local authority 128 44 Unlawful delivery of, penalty for 135 46 Loans on security of. forbidden 136 46 Counterfeiting or altering of, or passing same, penalty for 139 47 Unlawfully using, making, importing, or having plate for, penalty 140 47 Having unlawful possession of, or photographing, &c, penalty for 140 48 Having unlawful possession of paper for printing, penalty for 140 48 Of closed association, penalty for unlawful re-issue of. 145 50 Reserve upon, abolished except as to gold-banks 2 55 Deposit with Treasurer of five per cent, upon, as redemption fund 3 55 Redemption fund for, may count as reserve upon deposits . 3 55 Redemption of, by Treasurer, regulations concerning 3 55 Mutilated, to be forwarded by assistant treasurers and depositaries 3 56 Redemption and destruction of, upon deposit of lawful money 4 56 Bonds to secure, not to be reduced below $50,000 4 56 Withdrawal of $55,000,000 of, for redistribution 7 57 If not returned or money deposited in 30 days, bonds to be sold 8 57 Redemption of, from proceeds of sale of bonds ■. 8 58 To be forwarded by assistant treasurers and depositaries, when 8 58 Re-issue of $55,000,000 of, in place of same amount withdrawn 9 58 Withdrawal of. limited to $55,000,000 9 58 Maceration of, instead of burning 59 Repeal of provision limiting aggregate amount of, to $354,000,000 3 60 Repeal of provisions for withdrawal and redistribution of. 3 60 Of any person, State bank, &c. (See Tax on circulating notes.) Circulating notes of gold-lanks, form and denominations of 64 25 Not to exceed eighty per centum of bonds deposited 64 25 Not to exceed $1,000,000 for any association 64 25 Reserve of twenty-five per cent, required upon 65 25 To be received by other gold-banks 65 25 Not to be counted as part of aggregate circulation authorized 65 25 In San Francisco, redemption agent for, not required 73 28 Repeal of provision limiting amount of circulation of gold-banks 61 Cities, list of, in which the required reserve is twenty-five per cent, of liabilities. 69 26 Circulating notes of. (See Tax on circulating notes.) Cities of redemption, list of 7Q 27 81 Par. Page. Claims against closed hanks to be presented to Comptroller 114 40 Dividends upon, by Comptroller 115 40 'Clearing-house certificates deemed lawful money reserve, when 70 27 Balances, United States certificates of deposit used in settlement of 71 27 Cierh of association cannot act as proxy 26 13 Forbidden to certify checks except against actual deposits 85 31 Embezzlement by, penalty for 137 46 Clerks in Bureau of the Currency, appointment and classification of 5 6 Names and compensation of, in annual report of Comptroller 10 7 Closed associations, statistics of, in annual report of Comptroller 10 7 May withdraw their bonds upon return of cirulation 42 17 Plates and dies of, to be destroyed by Comptroller 53 21 To notify Comptroller of vote to go into liquidation 100 36 To publish notice of liquidation 100 ' 36 To deposit lawful money with Treasurer to retire circulation 101 36 If consolidating, need not retire their circulation 102 36 If consolidating, assets and liabilities of, by whom reported 102 37 When to be discharged from liabilities upon circulation 103 37 May withdraw their bonds on deposit of lawful money 103 37 Destruction of notes of, by Treasurer 104 37 Unlawful re-issue of circulating notes of, penalty for 145 50 Coin, United States notes to be redeemed in, after January 1, 1879 3 60 Coins, silver, to be issued in redemption of fractional currency 1 59 Commercial paper, when discount of, not deemed money borrowed 78 29 Commission, special, may examine bank before commencing business .... 22 12 Commissioner of Internal Revenue, returns to, of notes paid out 124 42 To estimate notes paid out, if return is not made by association 125 43 May prescribe method for canceling stamps on bank-checks 134 45 EeturnB and payment of tax to, for State-hank notes, Of association not to exceed its capital stock — exceptions 80 30 Individual liability. (See Liability.) Injunction not to issue from State court before final judgment 150 51 Injunction of Comptroller and receiver by bank under protest 116 40> Proceedings in, must be had in United States court 147 51 Proceedings in, must be in district in which bank is located 151 51 Insolvent bank, acts of, which are prejudicial to creditors, void 119 41 Installments of capital stock paid in, and certificates of 19 10 > Interest on bonds deposited, how collected by association 49 19 On public debt not payable in national-bank notes 61 24 Eate of, which may be taken on loans or discounts 75 28 If usurious, penalty for taking 76 29' 86 Par. Page. Interest withheld on bonds for failure to pay up capital stock 83 31 For failure to make reports to Comptroller 89 33 For failure to report average circulation, deposits, and capital 91 33 For failure to pay tax on circulation, deposits, and capital 93 34 J. Judgment in State court to be final before attachment issues ISO 51 ■Judgment), purchase of real estate at sales under 16 10 Jurisdiction of district courts 146 50 Of circuit courts 147 50 Of courts of the United States 148 51 Of circuit, district, Territorial, State, county, or municipal coarts 149 51 Is. Lawful-money reserve. (See Reserve. ) Legal-tender notes (See United States notes.) IAaoUities of converted State bank same as of other associations 36 16 Of associations organized or initiated on or before June 3, 1864 38 16 Of any person to association for money borrowed, limitation of 78 29 Of association not to exceed its capital stock — exceptions 80 30 Of consolidated bank, by whom reported 102 37 Of closed bank on its circulating notes, when discharged from 103 37 Of new associations to be same as of other associations 9 58 Liability, individual, of shareholders 33 14 Of shareholders in State bank having capital of §5,000,000 33 14 Of executors, administrators, &c, as shareholders 34 15 Of shareholders, when enforced 113 40 Of directors, for damages by violation of national-bank act 118 41 Lien, paramount, of United States on assets of closed bank 109 39 Limitation of red iction of capital stock 25 12 Of withdrawal of bonds by association 42 17 Of withdrawal of bonds by association 49 20 Of issue of notes of a less denomination than five dollars 54 21 Of issue of United States certificates of deposit 72 27 Of rate of interest on loans and discounts 75 28 Of right of action against association for usury 76 29 Of liabilities of any person to association for money borrowed _. . 78 29 Of liabilities of any association 80 30 Of dividends to an amount equal to net profits of association 82 30 Of visitorial powers in regard to banks. .' 97 35 Of withdrawal of bonds by association 4 56 Of circulation to be withdrawn and redistributed 9 58 Of aggregate amount of circulating notes, repeal of 3 60 Of reduction of United States notes 3 60 Of amount of circulation for any gold-bank, repeal of 61 Liquidating banks. (See Closed associations.) Liquidation, voluntary, to be determined by shareholders 99 36 Notice of, to be certified to Comptroller 100 36 Notification of, to creditors to be published by association 100 36 List of shareholders to be kept, subject to inspection 86 32 To be verified and transmitted to Comptroller annually 86 32 Loans to be made on personal security 15 9 Not to be made when reserve is deficient 69 26 Eate of interest which may be charged upon 75 28 87 Par. Page. Loans to one person or firm limited to one-tenth of capital 78 29 Upon shares of its own stock forbidden to association 79 29 On security of United States or national-bank notes, forbidden 136 46 Losses, if exceeding profits, no dividend to be declared 82 30 Lost or destroyed circulating notes, how replaced 63 24 m. Maceration, notes to be destroyed by, instead of by burning 59 Maximum amount of increase of capital, determined by Comptroller 24 12 Of circulation in proportion to capital and bonds deposited 50 20 Of circulating notes under five dollars for any association 54 21 Of circulating notes for any association other than gold-bank 55 22 Of aggregate circulation 56 22 Of circulation to be withdrawn for redistribution 58 22 Of circulating notes for any gold-bank 64 25 Of United States notes which may be outstanding 6 57 Of circulation which may be withdrawn for redistribution 9 58 Of circulation of any gold-bank, repeal of 61 Minimum amount of capital stock for any association 17 10 To which capital stock may be reduced by association 25 12 Of capital stock of converted State bank 36 16 Of bonds to be deposited by any association 41 17 To which bonds deposited may be reduced by withdrawal 42 17 Of bonds which may be transferred to association 49 19 To which bonds deposited may be reduced by withdrawal 49 20 To which bonds deposited may be reduced by withdrawal 4 56 Misdemeanor in unlawfully delivering circulating notes 135 46 In loaning money on security of United States or national-bank notes 136 46 In embezzlement by officers of association 137 46 In aiding or abetting embezzlement by officers of association 137 47 Money, uncurrent, association not to pay out - 84 31 Collected as penalty for failure to make report, disposition of 89 33 Collected by receiver, to be paid over to Treasurer 113 40 Money borrowed of association, limit of, for any person 78 29 Discount of bills of exchange or business paper, not held to be 78 29 Mortgage, possession of real estate under, by association 16 9 Municipal corporation, notes of. (See Tax on circulating notes.) Municipal court. (See Courts. ) Mutilated notes, how replaced and destroyed 63 24 To be forwarded to Treasurer for redemption 3 56 Mutilation of notes and drafts of associations, penalty for 67 26 W. Name of association to appear in organization certificate 13 8 To be approved by Comptroller 13 8 Names of shareholders to appear in organization certificate 13 8 List of, to be kept by association, and copy sent to Comptroller 86 32 National, as part of title, use of, limited to national banks 98 35 National-bank act, title of national-currency act changed to 1 55 National banking associations defined 39 17 Net profits. (See Profits.) Non-resident shareholders, State taxation of shares of 95 34 Notary public, acknowledgment of organization certificate before 14 8 88 Par. Page. Notary public, protest of circulating notes by 105 37 Fees of, for protest, by whom paid , 117 41 Notes, circulating. (See Circulating notes.) Notice, by advertisement, of sale of delinquent shareholders' stock ..- 20 11 To Comptroller, of payment of increase of capital 24 12 To Comptroller, of reduction of capital 25 12 By advertisement, of deferred election of directors 31 14 To association, of transfer of bonds deposited 46 18 To association, to make good its reserve 69 26 To association, to make good impaired or deficient capital 83 31 To Comptroller, of vote to go into liquidation 100 36 By advertisement, to creditors of bank in liquidation 100 36 To Comptroller, by notary, of protest of circulating notes 105 38 To bank under protest, of appointment of special examiner — - 106 38 To holders of circulating notes of bank under protest 108 38 To association under protest, of sale of its bonds 109 39 By advertisement, to creditors of bank in hands of receiver 114 40 Number of association to be printed upon its circulating notes 5- 57 O. Oath of Comptroller of Currency 3 5 Of Deputy Comptroller of Currency 4 6 Of persons signing organization certificate 14 8 Of president or cashier to certificate of payment of stock 19 10 Of officers and directors, before authorized to commence business 21 11 Of directors, upon election or appointment 29 13 Of president or cashier to list of shareholders 86 32 Of president or cashier to report of condition 87 32 Of president or cashier to report of dividends 88 32 Of president or cashier to return of circulation, deposits, and capital 91 3& Of president or cashier to return of State-bank notes paid out 124 42 Obligations or other securities of the United States defined 138 47 Not taxable under State, municipal, or local authority 128 44 Officers of association, appointment of 15 9 Certificate of, before being authorized to commence business 21 11 Cannot act as proxy 26 13 To examine bonds with Treasurer, annually 48 19 Unlawful certification of checks by, penalty for 85 31 May be examined on oath by examiner 96 35 Cannot be appointed examiners for their own association 96 35 Violation of national-bank act by, penalty for 118 41 Not to loan money on United States or national-bank notes 136 46 Embezzlement by, penalty for 137 46 Forbidden to re-issue notes of closed association 145 50 Officers of Government delivering circulation unlawfully, penalty for. 135 46 Organization certificate, what to contain 13 8 To be acknowledged and forwarded to Comptroller 14 8 Of converted State bank 36 15 Business of association to be conducted at the place specified in 68 26 Certified copy of, to be evidence 154 52 P. Paper, bank-note, penalty for having unlawfully 140 48 Passing counterfeit or altered national-bank.notes, penalty for 139 47 89 Par. Page- Penalties, suits for, to be had in United States courts 148 51 Penalty for making or issuing imitation of circulating notes 66 25 For mutilating notes or drafts of associations C7 26- For taking usurious interest, by association 76 29 For unlawfully certifying checks, by officer of association 85 31 For failure of association to make reports to Comptroller 89 33 For failure to report circulation and deposits to Treasurer 91 33 For unlawfully using the word " national " as part of title 9.8 35- For violation, by directors, of provisions of national-bank act 118 41 For failure of association to report State-bank notes paid out 125 43 For failure to stamp bank-checks 132 44 For fraudulent use of stamps 133 45 For unlawfully delivering circulating notes 135 46 For loaning money on security of United States or national-bank notes . . . 136 46 For embezzlement by officers of association, or abetting same 137 46 For counterfeiting or altering circulating notes, or passing same 139 47 For counterfeiting plates, unlawfully having bank-note paper, &c 140 47 For passing, or bringing into United States, counterfeit notes 141 48 For unlawfully taking impression of plates or tools 142 49 For unlawful possession of bank-note tools or implements 143 49 For buying, selling, receiving, or delivering counterfeit notes 144 49 For unlawfully re-issuing circulating notes of closed banks 145 50- For failure of association to report State-bank notes paid out 21 62 Perpetuation of evidence of destruction of circulating notes Ill 39 Personal liability. (See Liability.) Persons, circulating notes of. (See Tax on circulating notes.) Placards in imitation of circulating notes, penalty for issuing 66 25 Place of business to appear in organization certificate i 13 8 Circulating notes payable on demand at 61 24 Usual business of association must be done at -• 68 26- Plates and dies not in use, deposited with Comptroller 8 6 To be procured by Comptroller , 51 20 Expense and control of 52 21 To be examined annually by Comptroller 53 21 Of closed associations to be destroyed 53 21 Counterfeiting, or having counterfeit in possession, penalty for 140 48 Cost of, to be re-imbursed to the Treasury 3 56 Pledge of circulation to pay in or increase capital stock forbidden 81 30 Post-notes, to circulate as money, issue of, forbidden 62 24 Powers of associations enumerated 15 8 Of converted State bank 36 16 Of associations organized or initiated on or before June 3, 1864 38 16 Of new associations 9 58- Preferred creditors, holders of circulating notes, only, to be 119 42 President, appointment of 15 9' To certify installments of capital stock paid in 19 10 Oath of, before receiving certificate of authority 21 11 To notify Comptroller of payment of increase of capital stock 24 12 To notify Comptroller of reduction of capital stock 25 12 Cannot act as proxy 26 13 To be chosen by directors from their own number 32 14 To sigu memorandum on bonds transferred 44 18 To sign circulating notes 51 21 Effect of signature of, on circulating notes '61 24 Unlawful certification of checks by, penalty for 85 31 90 Par. Page. President to keep list of shareholders, subject to inspection 86 32 To verify list of shareholders and transmit same to Comptroller 86 32 To verify reports of condition of association 87 32 To verify reports of dividends and earnings 88 32 To report circulation, deposits, and capital to Treasurer 91 33 . May he examined on oath by bank examiner 96 35 Cannot be examiner of bank of which he is an officer 96 35 Tocertify notice of liquidation to Comptroller 100 36 May waive notice of protest of circulating notes 105 37 To make return for taxation of notes of State banks, &c. , paid out 124 42 Not to loan money on United States or national-bank notes 136 46 Embezzlement by, penalty for 137 46 Of closed bank forbidden to re-issue its circulating notes 145 50 Printer, public, when to print annual report of Comptroller 11 7 Printing of imitation of circulating notes, penalty for 66 25 Private sale of stock taken by association for debt 79 30 Of bonds of association under protest 110 39 Of bonds of association, for failure to withdraw circulation 8 57 Profits, net, disposition of, in dividends and surplus fund 77 29 Dividends limited to amount of, after deducting losses 82 30 Semi-annual report of, to Comptroller 88 32 Protest of circulating notes, when and how made 105 37 Notice of, may be waived by president or cashier 105 37 Only one fee for, on the same day 105 38 Association under, to suspend business 107 38 Bonds of association under, may be sold at auction 109 39 Bonds of association under, may be sold at private sale 110 39 Association under, may enjoin Comptroller, when 116 40 Fees for, by whom paid _ 117 41 Proxy, shareholders may vote by, at elections and meetings 26 13 Officers of association cannot act as 26 13 Public debt, interest on, not payable in national-bank notes 61 24 Amount of U. S. notes outstanding to appear in monthly statement of 6 57 Public printer, when to print annual report of Comptroller 11 7 Publication of sale of stock of delinquent shareholder 20 11 Of certificate of authority to commence business 23 12 Of notice of deferred election of directors 31 14 Of notice of sale of bonds for failure to withdraw circulation 59 23 Of names of redemption agents, by Comptroller 73 28 Of reports of condition, by association 87 32 Of notice to creditors, by closed association 100 36 Of notice to creditors of failed association, by Comptroller 114 40 Purchase of real estate by association, how restricted 16 9 Of bills of exchange, when not usurious 75 29 By association of shares of its own stock, how restricted 79 29 Q. ■Qualifications of directors of association 28 13 It. Bate of interest authorized on loans and discounts 75 28 Ratio of circulating notes to bonds and capital 50 20 Of circulating notes of gold-banks to bonds deposited 64 25 91 Par. Page. Real estate, for what purposes may be held 16 9 If acquired through mortgage, te be sold within five years 16 10 Taxation of, by State or local authority 95 34 lie-assignment of bonds to association on return of circulating notes 42 17 Of bonds in sums of not less than $1,000, on return of circulation 49 19 Of bonds to closed association, on deposit of lawful money 103 . 37 Of bonds, on the deposit of not less than $9,000 in lawful money 4 56 Receipt, by Comptroller to association, for bonds deposited -..- 44 18 Receiver, appointment and duties of 113 40 May be enjoined by association under protest 116 40 Expenses of, to be paid out of assets of association 117 41 Suits to enjoin, circuit court to have original jurisdiction of 147 50 Suits to enjoin, to be had in district in which bank is located 151 51 -Receiver appointed for failure to restore diminished capital 20 11 For deficiency in surplus of State bank having $5,000,000 capital 33 14 For failure to make reserve good 69 27 For failure to select redemption agent or to redeem notes 73 28 For failure to sell shares of stock taken for debt 79 30 For failure to pay up capital or restore it when impaired 83 31 For certifying checks unlawfully 85 31 For failure to redeem circulating notes 113 40 ^Redemption by association of circulating notes, where to be made 73 28 Of circulating notes of closed bank, by Treasurer 103 37 Of circulating notes by Treasurer, regulations concerning 3 55 Of mutilated notes by Treasurer 3 56 Of circulating notes withdrawn, from proceeds of sale of bonds 8 58 Of circulating notes withdrawn, limitations of 9 58 Of United States notes in excess of $300,000,000 3 60 Of legal tenders in coin, on and after January 1, 1879 3 60 Redemption agents to be selected by associations, and where 73 28 Not required for national gold-banks in San Francisco 73 28 Names of, to be published by Comptroller 73 28 If not selected by association, receiver may be appointed 73 28 Repeal of provisions requiring or permitting 3 56 Redemption cities, list of, and provision s as to reserve in r ... 70 27 Redistribution of cwculatwn withdrawn from States in excess 59 23 Limited to $55,000,000 9 58 Eepeal of provisions requiring 3 60 Reduction of capital stock, how made, and limit of 25 12 Of capital stock and bonds deposited, on return of circulation 42 17 Of bonds deposited, limitation of 42 17 Of bonds deposited, on surrender of circulating notes 49 19 Of bonds deposited, limitation of 49 20 Of capital stock, in form of dividends, prohibited 82 30 Of bonds, on deposit of lawful money in sums not less than $9,000 4 56 Of bonds deposited not to go below a limit of $50,000 4 56 Of United States notes to a limit of $300,000,000 3 60 Refunding duties paid in excess on capital, circulation, and deposits 94 34 Register of bonds transferred, by Comptroller 45 18 Register of the Treasury, signature of, on circulating notes 51 21 Registered bonds may be exchanged for coupon' bonds i 43 17 Me-imbursement of United States from assets of closed association 109 39 Of Treasury, by association, for redemption of circulating notes 3 56 Of Treasury, for cost of engraving plates 3 56 92 Par. Page, Removal of banks from States having an excess of circulation 60 25 Repeal of provisions requiring reserve on circulation 2 55 Of provisions requiring or permitting redemption agents 3 56 Of a part of act of July 12, 1870, as to withdrawal of circulation 7 57 Of a charge for conversion of bullion into coin i 2 60 . Of limitation upon aggregate amount of circulating notes 3 60 Of provisions for withdrawal and redistribution of circulation 3 60' Of limitation of amount of circulation for any gold-bank 61 Report of Comptroller to Congress • 10 7 When may be printed ; 11 7 Reports of names and residences of shareholders 86 32 Of condition of association •. 87 32 Of dividends and earnings 88 32 Penalty for failure to make, to Comptroller 89 33 Of circulation, deposits, and capital 91 33 Penalty for failure to make, to Treasurer 91 33 Of bank examiner 96 35 Of special agent appointed to examine bank under protest 106 38 Of receiver, to Comptroller 113 40 Of circulating notes of State banks, &c, paid out by associations 124 42 Of circulating notes of State banks, &c, paid out by associations 21 62 Reserve, United States notes not to be held or used by Secretary asa 6 57 Reserve of lawful money of national gold-banks on circulation 65 25 Of national gold-bank, to be gold and silver 65 25 Amount of, required for each association 69 26 If deficient, bank to make no discounts or dividends 69 26 Association to be notified of deficiency in, by Comptroller 69 26 If deficient for thirty days, receiver may be appointed 69 27 Of country banks, where may be held 70 27 Clearing-house certificates may count as, when 70 27 United States certificates of deposit may count as 71 27 Of banks in redemption cities, where maybe held 73 28 On circulation, no longer required 2 55 Deposit with Treasurer of five per cent, on circulation may count as 3 55 Residences of shareholders, list of, to be kept by association 86 32 Responsibility of shareholders of association 33 14 Return of circulation to Comptroller and withdrawal of bonds 42 17 Of bonds to association in sums of not less than $1,000 49 19 Of bonds to closed bank on deposit of lawful money 103 37 Of bonds, on the deposit of not less than $9,000 in lawful money 4 56 Returns. (See Reports.) Rights of creditors not to be impaired by association L 18 10 Of converted State bank 36 X6 Of associations organized or initiated on or before June 3, 1864 38 16 Of associations, when forfeited and how determined 118 41 Of new associations 9 55 S. Sale of stock of delinquent shareholders 20 19 Of bills of exchange, when not usurious '. 75 29 Of capital stock taken by association for debt 79 30 Of bonds of closed bank, for failure to deposit legal tenders 103 37 Of bonds of association under protest, at auction 109 39 Of bonds of association under protest, at private sale 110 39» 93 Par. Page. Sale of assets of closed association, by receiver ' 113 40 Of bonds deposited, for failure to withdraw circulation 8 57 San Francisco, gold-banks in, need not select redemption agent 73 28 Savings-banJss in the District of Columbia, examination of 9 6 Statistics of, in annual report of Comptroller 10 7 Seal, association may adopt and use 15 9 Seal of office to be devised by Comptroller 7 6 Description and impression of, to be filed with Secretary of State 7 6 Approval of, by Secretary of Treasury, filed with Secretary of State 7 6 Papers sealed with, to be evidence 153 51 An impression of, on the paper, as valid as if made on wax 153 52 Copy of organization certificate sealed with, to be evidence 154 52 Sealed copies of certificates and other papers to be evidence 153 51 , Of organization certificate to be evidence 154 52 Secretary of State to approve seal of office of Comptroller 7 6 A description and impression of seal to be filed with 7 6 Approval of seal by Secretary of Treasury to be filed with 7 6 Secretary of the Treasury to supervise duties of Comptroller 1 5 Comptroller appointed upon recommendation of 2 5 To approve bond of Comptroller 3 5 To appoint Deputy Comptroller and approve his bond 4 5 To appoint and classify clerks of Comptroller 5 6 To approve seal of office of Comptroller 7 6 To assign suitable rooms to Comptroller 8 6 May approve organization of banks with capital of $50,000 17 10 May designate depositaries of public money 35 15 May exchange registered for coupon bonds deposited 43 17 To prescribe terms for exchange of bonds deposited 49 19 To have direction of the engraving of plates and dies 51 20 To approve regulations for destruction of printing material 53 21 To apportion tb e circulation to S tates and Territories ■- ■. w ■. 57 22 To have direction of withdrawal of circulation. . . : 58 22 To supervise statement showing circulation to be withdrawn 59 23 To approve rules for removal of banks from States in certain cases 60 23 To appoint witness to burning of mutilated notes 63 24 To concur in appointment of receiver for deficient reserve 69 27 May receive Treasury notes and issue certificates of deposit therefor 71 27 Not to expand or contract currency by issue of certificates of deposit 72 27 To approve appointment of bank examiner 96 34 To concur in appointment of agent to examine bank under protest 106 38 To direct manner of notice to bill-holders of closed banks 108 38 To regulate the disposition of redeemed circulating notes Ill 39 To prescribe regulations for the redemption of circulating notes 121 42 To regulate printing of charter number on notes of banks .---...... 5 57 Not to hold or use United States notes as a reserve. -• 6 57 To have direction of withdrawal of circulation 7 57 To issue silver coins in redemption of fractional currency 1 59 To retire legal-tender notes in excess of $300,000,000 3 60 Securities of the United States defined 138 47 Not taxable under State, municipal, or local authority 128 44 Security for loans to be personal 15 ft Shares of its own stock not to be taken as, by association 79 29 Shareholders, made such by transfer of stock, rights and liabilities of. 18 10 Delinquent, proceedings relative to 20 10 May reduce capital stock of association 25 12 94 Pa*: Page- Shareholders, votes of, in elections and meetings 26 3- May vote by proxy 26 13 To elect the directors 27 13 May fix day for election of directors, when 31 14 Individual liability of 33 14 Individual liability of, in State bank having $5,000,000 capital 33 14 List of, to be kept, subject to inspection 86 32. Annual list of, to be verified and forwarded to Comptroller 86 32 Non-resident, to be taxed in place where bank is located 95 34 May put association into liquidation 99 36 When discharged from all liabilities on circulating notes - - 103 37 Individual liability of, when enforced 113 40 May hold directors responsible for damages by violation of bank act 118 41 Shares of stoch, par value, and transfer of 18 10 To be deemed personal property 18 10 Each director must own ten 28 13 Of State bank, same after conversion as before 36 15 Loans upon, forbidden, and purchase of, restricted 79 29> Taxation of, by State or local authority 95 34 Sir/nature of Treasurer and Eegister on circulating notes - 51 21 Of president or vice-president and cashier on circulatiag notes 51 21 Of officers of association on circulating notes, effect of 61 24 Silver coins to be issued in redemption of fractional currency 1 59 Solicitor of the Treasury to supervise certain suits under this act 152 51 Special agent to examine bank on failure to redeem its circulating notes 106 38 Special commission may examine bank before commencing business 22 12 Special reports of condition may be called for by Comptroller 87 32 Special surplus fund. (See Surplus fund, special.) Specie payments, resumption of, on January 1, 1879 3 60 Spurious circulating notes, penalty for making or passing 139 47 Stamps required on bank-checks 129 44 Official checks exempt from 130 44 Must be on check to make same admissible in evidence 131 44 Penalty for failure to affix to checks 132 44 May be affixed to check by collector, when 132 45 Method of cancellation, and penalty for fraudulent use of 133 45 Commissioner may prescribe method of cancellation of 134 45 Amendment of act of June 30, 1864, relative to 15 61 May be subsequently affixed before j udge of court of record 1 65 Eepeal of conflicting laws relating to 2 65 May, in certain cases, be subsequently affixed without penalty 65 State banks, statistics of, in annual report of Comptroller 10 7 Having $5,000,000 capital, surplus of, and personal liability in 33 14 Conversion of, and proceedings necessary 36 15 Shares of stock in, same after conversion as before 36 15 May continue to hold stock in other banks, if owned before conversion 36 16 Minimum capital of 36 16 With branches, conversion and circulation of 37 16 Capital of, same after conversion as before 120 42 Circulating notes of. (See Tax on circulating notes.) State court. (See Courts.) State taxation of associations 95 34 United States obligations and securities exempt from 128 44 Stock of associations. (See Capital stock.) Stocks of the United States exempt from State or local taxation 128 44 95 Par. Page. Succession, period of, for associations 15 9 Suits may be brought by or against association , 15 9 Against association for usury, limitation of 76 29 By association to enjoin Comptroller, when and where brought 116 40 Against directors for damages by violation of hank act 118 41 By or against association, jurisdiction of district court in 146 50 By or against association, original jurisdiction of circuit court in 147 50 For penalties or forfeitures, exclusive jurisdiction of United States court... 148 51 Against association, in what court and district may be brought 149 51 To enjoin Comptroller or receiver, in what district to he had 151 51 In which the United States is a party, supervision and conduct of 152 51 Surplus fund, net profits to be carried to, before each dividend 77 29 Surplus fund, special, in converted State bank having $5,000,000 capital 33 14 When deficient, no dividend to be declared 33 14 For deficiency in, receiver may be appointed 33 14 Surrender of bonds on reduction of capital, or to closed bank 42 17 In multiples of $1,000, on return of circulating notes 49 19 To closed association, on depasit of legal tenders 103 37 On the deposit of lawful money in sums not less than $9,000 4 56 T. Tax on circulating notes paid out, of any person or State bank 122 42 Of any town, city, or municipal corporation 123 42 Eeturn of, by association, to Treasurer 124 42 Penalty for failure to make return of, or to pay 125 43 Of any person, firm, corporation, or State bank 19 6L Of any person, firm , corporation, State bank, town, or city, &c 20 62 Eeturn of, by association, to Treasurer 21 62 Taa; on circulation, deposits, and capital, expenses of Bureau paid from 52 21 Rate of, and when to be paid 90 33 Eeturn of, by association to Treasurer 91 33 Penalty for failure of association to make return of 91 33 To he estimated by Treasurer in default of return 92 33 How collected, if association fails to pay 93 34 If paid in excess, how refunded 94 34 Exemption of circulation from, when not exceeding five per cent, of capital. 121 42 Of converted State bank, national association to pay 126 43 Taxation, State and local, of associations 95 34 United States obligations and securities exempt from 128 44 Teller cannot act as proxy 26 13 Embezzlement by, penalty for 137 46 Territorial court. (See Courts.) Towns, circulating nqtes of. (See Tax on circulating notes.) Transfer of shares of association, how made 18 10 Of assets of association, after act of insolvency, void 119 41 Transfer of bonds deposited, how made 44 IS Not valid unless countersigned by Comptroller 44 18 To he registered by Comptroller 45 18 Notice of, by Comptroller to association - 46 18 To be made before any sale of same is complete 110 39 Treasurer of United States to hold bonds of public depositaries 35 15 Bonds to secure circulation to be deposited with 41 17 To re-assign bonds to bank on return of circulating notes 42 17 Transfer of bonds deposited, to and by ; 44 18 96 Par. Page. Treasurer of United States to have access to books of Comptroller 47 18 To select time for examination of bouds by association 48 19 To give to association certificate of examination of bonds 48 19 To hold bonds deposited exclusively for redemption of notes - 49 19 Exchange or withdrawal of bonds deposited with 49 19 Signature of, on circulating notes 51 21 To appoint witness to burning of mutilated notes 63 24 Bonds to secure gold-notes to be deposited with 64 25 To withhold interest for failure to make capital good 83 31 May retain interest for failure to make reports to Comptroller 89 33 Tax on capital, circulation, and deposits, to be paid to 90 33 Report of capital, circulation, and deposits, to be made to 91 33 May retain interest for failure to report circulation and deposits 91 33 To estimate circulation and deposits, if bank fails to report 92 33 May retain interest for failure to pay tax on circulation and deposits 93 34 To certify to excess of taxes paid by association 94 34 To receipt for lawful money deposited by closed bank 101 36 To re-assign bonds to closed bank on deposit of lawful money 103 37 To redeem circulating notes of closed association, when 103 37 To destroy redeemed notes and certify to same 104 37 To redeem circulating notes of association under protest, when 108 38 To cancel circulating notes paid by him 112 39 Moneys collected by receiver to be paid to 113 40 Five per cent, on circulation to be deposited with, as redemption fund 3 55 To redeem circulating notes in sums of $1,000, or multiple thereof 3 55 Redemption of mutilated notes by, regulations concerning 3 56 To re-assign bonds to association on deposit of legal tenders 4 56 To redeem circulation required to be withdrawn, when 8 58 Treasury notes. (See United States notes.) Trustees holding stock not personally liable 34 15 Of closed bank forbidden to re-issue its circulating notes 145 50 XT. Uncurrent money, association not to pay out 84 31 United States bonds. (See Bonds of United States.) United Slates notes may be received on deposit by Secretary 71 27 To be held for redemption of certificates issued therefor 72 27 Deposit of; with Treasurer, by closed bank, to redeem circulation 101 36 Not taxable under State, municipal, or local authority 128 44 Loans on security of, forbidden 136 46 May be deposited by association, and bonds withdrawn 4 56 Maximum amount of, outstanding, limited to $382,000,000 6 57 Amount of, outstanding, to appear in monthly debt statement 6 57 Not to be held or used by Government as a reserve .' 6 57 May be deposited in lieu of circulation to be withdrawn , 7 57 To be reduced to $300,000,000, as circulating notes are issued 3 60 United States securities exempt from State or local taxation 128 44 United Slates Treasurer. (See Treasurer.) Usury, the purchase of bills of exchange, &c, when not deemed to be 75 29 Penalty for taking 76 29 Suits for recovery of 76 29 Limitation of right of action for recovery of 76 29 V. Vacancy in board of directors, how filled 30 14 Vaults, fire-proof, to be provided for Bureau 8 6 97 Par. Page. Verification of certificate of installment of capital paid in 19 10 Of statement of officers and directors before commencing business 21 11 Of list of shareholders 86 32 Of report of condition of association 87 32 Of report of dividends and earnings 88 32 Of return to Treasurer of circulation, deposits, and capital 91 33 Of return of circulating notes of State banks, &c. , paid out 124 43 Vice-president, appointment of. 15 9 Cannot act as proxy 26 13 May sign circulating notes 51 21 Effect of signature of, on circulating notes 61 24 Violation of national-bank act to work forfeiture of charter 118 41 Visitorial powers to which association shall be subject 97 35 Void, acts of insolvent bank which are prejudicial to creditors shall be 119 41 Votes of shareholders in elections and meetings 26 13 W. Withdrawal of bonds on reduction of capita], or by closed bank 42 17 Of bonds deposited, limitation of. 42 17 Of bonds deposited, upon surrender of circulating notes 49 19 Of bonds deposited, limitation upon 49 20 Of $25,000,000 of circulation, for purpose of redistribution 58 22 Of circulation, method of procedure in 59 23 Of capital, in form of dividends, prohibited 82 30 Of bonds deposited, by closed associations 103 37 Of circulation, repeal of proviso concerning, in act of July 12, 1870 7 57 Of circulation, bonds deposited to be sold in default of 8 57 Of circulation limited to $55,000,000 9 58 Of circulating notes and bonds deposited, on deposit of lawful money 4 56 Of bonds deposited not to go below a limit of $50,000 4 56 Of circulation, repeal of provisions requiring 3 60 Of United States notes in excess of $300,000,000 3 60 7*