View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

63d CONGRESS

:

: 1st SESSION

APRIL 7 - DECEMBER i, 1913

SENATE DOCUMENTS

V o l . 14

WASHINGTON : : GOVERNMENT PRINTING OFFICE : : 1913







6:;I) C ongkess I
1st Session
j

SENATE
k

\Document
1

No. 197

THE

NATIONAL-BANK ACT
AS AMENDED
AND OTHER LAWS RELATING TO




NATIONAL BANKS

COMPILED UNDER THE DIRECTION OF
THE COMPTROLLER OF THE CURRENCY

1911

WASHINGTON
GOVERNMENT PRINTING OFFICE
1913

I n th e S e n a t e of th e U n ite d S t a t e s ,
October 1, 1913.

Ordered, That 1,000 copies of the ‘ ‘ National-Bank Act as amended, and othor laws
relating to National Banks, 1911,” be printed for the use of the Senate document
room.
Attest:
James M. B ak er, Secretary.
2




CONTENTS.
Page
National-bank act and ad s amendatory thereof and supplementary thereto. . .
Bureau of Comptroller of the Currency....................................................................
Organization and powers...............................................................................................
Obtaining and issuing circulating notes...................................................................
Regulation of banking business...................................................................................
Dissolution and receivership........................................................................................
Acts of a general nature and sections of the Revised Statutes not included in
national-bank act affecting national banks.................................................................
Special acts relating to national banks.............................................................................
Opinions of Attorney General.............................................................................................
Acts relating to savings banks, building associations, and trust companies in the
District of Columbia...........................................................................................................
Index to national-bank act and general and special acts...........................................
Index to acts relating to savings banks, building associations, and trust com­
panies in the .District uf Columbia...............................................................................
Index to sections of Revised Statutes..........................................................................
Inddx to sections of code of District of Columbia...................... .................................




3

9
9
13
28
51
68
81
110
115
118
137
171
173
174




DATES OF ACTS RELATING TO N A T IO N A L
BANKS.
THE NATIONAL HANK ACT AXI) ACTS AMENDATORY THEREOF AND SUPPLEMENTARY
THERETO.
Pape.

Feb. 25,1863. An act to provide a national currency secured by a pledge of
United States stocks, and to provide for the circulation and
redemption thereof................................................................................
81
June 3,1864. Act of February 25, 1863, repealed and reenacted with certain
amendments........................................................................................ 9-80,81
Mar. 3,1865. Tax on bank circulation. State banks converted may retain
and keep in operation branches.........................................................
26
Feb. 5,1867. Penalty for imitating bank circulation...............................................
42
Mar. 2,1867. Refunding excess t a x ...............................................................................
66
Feb. 10, 1868. Taxation of shares of national-bank stock........................................
67
Feb. 19,1869. Prohibiting loans on United States or national-bank notes, or
withholding such notes from u s e .....................................................
61
Mar. 3,1869. Reports of condition, and earnings and dividends..........................
64
Mar. 3,1869. False certification of checks...................................................................
62
Apr. 6,1869. Penalty for embezzlement, abstraction, etc............... - ....................
62
July 8,1870. Penalty for embezzlement, abstraction, etc......................................
62
July 12,1870. Issue of circulation redeemable in gold........................................ 40,41, 58
July 14,1870. Liquidating banks to retire circulation..............................................
69
Mar. 1,1872. Leavenworth struck out as reserve city.............................................. 52, 53
June 8,1872. Certificates of deposit for United States notes (repealed March
14 ,190 0).....................................................................................................
56
Feb. 19,1873. Reports of State banks..............................................................................
11
Mar. 3,1873. Examination of plates and d ies.............................................................
38
60
Mar. 3,187.3. Assessment for impairment of capital................................................
Mar. 3,1873. Use of the word national.........................................................................
80
June 20, 1874. Fixing the amount of United States notes, providing fora redis­
tribution of natioual-bank currency, etc............... 13, 33, 38, 53, 57, 70
40
June 23,1874. Maceration of United Stales and national-bank notes...................
June 23,1874. Stamps on bank checks. Repealed March 3, 1883.
Jan. 14,1875. Aggregate amount of circulation not limited.........
...........
39
Jan. 19,1875. Circulating notes of national gold banks..........................................
40
11,
Feb. 18, 1875. Correcting errors and omissions in the Revised Statutes.............
40, 58, 69,71,81,91
Feb. 19,1875. Appointment and compensation of bank examiners....................
79
Mar. 3,1875. Distinctive paper for printing notes..................................................._
38
Mar. 3,1875. Clerical force for redemption of circulating notes............................
June 30,1876. Receivers, appointment of................................................................. 60, 74, 75
Feb. 27,1877. Examination of plates and dies...........................................................
38
Feb. 27,1877. Reports to Comptroller............................................................................
64
Feb. 27,1877. Destruction of redeemed notes...............................................................
70
Mar. 1,1879. Semiannual duty, abatement of.............................................................
67
Feb. 14,1880. Conversion of gold banks........................................................................
41
Feb. 26,1881. Verification of returns of national banks..........................................
64
July 12,1882. Corporate existence, extension of................................ 16,17,18,19, 33, 34
July 12,1882. Issue of gold certificates..........................................................................
61
July 12, 1882. Punishment for falsely certifying check............................................
62
Mar. 3,1883. Capital and deposits, repealing tax o n ................................................
65
Mar. 29,1886. Insolvent banks, protection of assets by use of trust funds___ 77, 78
May 1,1886. Increase of capital stock, change of name or location............. 15,16, 22
Mar. 3,1887. Courts, jurisdiction o f..............................................................................
16
Mar. 3,1887. Reserve and central reserve cities, providing for additional, etc. 55,57
Aug. 13,1888. Courts, jurisdiction o f..............................................................................
16
5




6

ACTS RELATING TO NATIONAL BAN KS.
f ’agre.

July 14,1890. Disposition of redemption account.....................................................
55
July 28,1892. Stolen or lost national-bank notes, redemption o f........................
56
Aug. 3,1892. Agent of shareholders of national bank, appointment of; amends
act of June 30, 1876................................................................................
75
Jan. 12,1895. Annual report of Comptroller of the Currency, printing of___
12
Mar. 2,1897. Appointment and qualification of shareholders’ agent; amends
acts June 30, 1876, and August 3, 1892...........................................
75
Mar. 14,1900. Authorizing banks with minimum capital $25,000; bonds, cir­
culation, taxation, etc..................................................... 20,36,65,94-100
Mar. 3,1901. National bank depositaries......................................................................
25
Apr. 12,1902. Authorization of reextension of charter.............................................
20
Apr. 28,1902. Annual Report of Comptroller to contain information regarding
12
failed banks, list of employees, etc.................................................
Mar. 3,1903. Additional reserve cities; minimum population, 25,000.............
55
Feb. 28,1905. Qualification of directors, banks with capital of $25,000 .............
23
Dec. 21,1905. Taxation of circulation based on Panama Canal bonds...............
30
June 22,1906. Amendment section 5200, loan limitation.........................................
59
Jan. 26,1907. Political contributions prohibited.......................................................
63
Mar. 4,1907. Additional copies of Report of Comptroller................. ...................
12
Mar. 4,1907. Public depositaries.....................................................................................
25
Gold certificates and United States notes, issue o f ......................97,100
May 22,1908. Additional Deputy Comptroller...........................................................
10
May 30,1908. Authorizing National Currency Associations, the issue of addi­
tional bank circulation, and creating a National Monetary
Commission................. 25, 34, 37,42,43, 44, 45, 46, 47, 48,49, 50, 53,65
ACTS OF A GENERA I, NATURE AFFECTING NATIONAL BANKS.

July
June
Mar.
July
Mar.
June
Dec.
Feb.
Mar.
Feb.

7,1838.
30,1864.
3,1865.
13,1866.
26,1867.
6,1872.
24,1872.
8,1875.
1,1879.
25,1862.

Mar.

3,1863.

Mar.

3,1864.

June 30,1864.
Jan. 28,1865.
’
Mar. 3 . 186b.
July 14,1870.
Aug. 13,1894.
July 17,1862.
Feb. 21,1857.
July 17,1861.
Feb. 12,1862.
Feb. 25,1862.
Feb. 25,1862.
Mar. 17,1862.

Issuing circulation of expired association...........................................
93
Taxation of State banks............................................................................ 82,84
Taxation of State banks............................................................................ 83,84
Taxation of State banks...................................................................... 82, 83, 84
Taxation of State banks............................................................................
84
Taxation of State banks..................................................... ...................... 82, 84
Taxation of State banks.. . . ....................................................................
84
Taxation of State banks............................................................................
83
85
Taxation of State banks...................................... ...................- - ..............
Taxation of national-bank notes and notes and certificates of
United States circulating as currency............................ - - ..............
85
Taxation of national-bank notes j»nd notes and certificates of
United States circulating as currency...............................................
85
Taxation of national-bank notes and notes and certificates of
United States circulating as currency...............................................
85
Taxation of national-bank notes and notes and certificates of
United states circulating as currency................................ ..............
85
Taxation of national-bank notes and notes and certificates of
(Jnited States circulating as currency...............................................
85
Taxation of national-bank notes and notes and certificates of
85
United States circulating as currency..............................................
Taxation of national-bank notes and notes and certificates of
United States circulating as currency...............................................
85
Taxation of national-bank notes and notes and certificates of
United States circulating as currency............................................... 85,86
Restriction on notes less than one dollar...........................................
86
Foreign coins not legal tender................................................................
86
Demand Treasury notes legal tender same as United States
notes............................................................................................................
87
Demand Treasury notes legal tender same as United States
notes............................................................................................................
87
Demand Treasury notes legal tender same as United States
notes............................................................................................. ..............
87
United States notes legal tender except for duties on imports
and interest on public debt..................................................................
87
Demand Treasury notes legal tender same as United States
notes............................................................................................................
87




ACTS RTCLATTNTi TO N A T IO N A L B A N K S .

7

Page.
July 11,1862. United States notes legal tender except lor duties on imports
and interest on public debt................................................................
87
Jan. 17,1863. United States notes legal tender except 1 duties on imports
‘or
and interest on public debt................................................................
87
Mar. 3,1863. United States notes legal tender except for duties on imports
and interest on public debt................................................................
87
Mar. 3,1863. Interest-bearing notes legal tender to same extent as United
States notes..............................................................................................
87
June 30,1864. Interest-bearing notes legal tender to same extent as United
States notes...............................................................................................
87
Feb. 12,1873. Gold coins of United States legal tender............................................
86
Feb. 12,1873. Minor coins of United States legal tender to amount of twentyfive cents..................................................................................................
87
Feb. 28,1878. Standard sil ver dollars legal tender......................................................
86
June 9,1879. Subsidiary silver coins legal tender to amount not exceeding ten
dollars..................................................................... *
..................................
87
July 12,1882. Gold certificates, for wliat receivable.................................................. 61, 87
Mar. 14,1900. Currency act.............................................................................................. 94-100
Mar. 4,1907. Amending national-bank act................................................................ 97,100
June 14,1866. Government depositories.......................................................................... 88,90
June 8,1872. Government depositories..........................................................................
89
Mar. 3,1873. Government depositories.......................................................................... 88,89
Feb. 27,1877. Government depositories..........................................................................
88
Feb. 3,1879. Government depositories..........................................................................
90
Feb. 25,1863. Counterfeiting national-bank notes......................................................
91
June 3,1864. Counterfeiting national-bank notes......................................................
91
June 30, 1864. Forging or counterfeiting United States securities.......................... 91,92
June 30,1864. Using plates to print without authority..............................................
91
Feb. 5,1867. Penalty for taking unauthorized impression of tools having
such impression or dealing in counterfeit circulation___ ^____
93
June 30,1876. Fraudulent notes to be so marked by United States officers and
officers of national banks......................................................................
94
Aug. 5,1909. Excise tax on corporations......................................................................
101
Aug. 5,1909. Panama Canal bonds, issue of, authorized at 3 per cent...............
107
Mar.
2,1911. Pan&ma ( ’anal bonds under act of Aug. 5, 1909, not available
as secMrity for circulation...................................................................
108
Mar. 2,19.11. Issue of g ld certificates on deposit of foreign coin or bullion. . .
<
98
Mar. 2,1911. Certified cliwks drawn on national and State banks, receivable
for duties on '.rnports and internal taxes.........................................
109
SPECIAL ACTS IwY.vriNG TO NATIONAL BANKS.

Apr. 12 ,19C0. National banking laws exvH
1(]ed t() Porto Rico............................... .....110
Apr. 30,1900. National banking laws external to Hawaii...................................... ..... I l l
May
2,1900. National banking laws extended
Indian Territory.........................110
May 2,1900. Qualification of directors in Oklahoma.. . . . ......................................... jiq
Fifty-seven acts changing the location or name, or both, oi various national
................. ..... ]H
banks.................................................................................................................
ACTS RELATING TO SAVINGS BANKS, B UI'Ll)I NO ASSOCIATIONS, AND TRUST
PA NIKS IN T.IIE DISTRICT OF COLUMBIA.

May
5,1.870. Organization of savings banks and other corporations............... 119-124
June 17,1870. Organization of savings banks and other corporations...................
118
June 20,1873. Examination of savings banks................................................................
127
June 30,1876. Savings banks organized under acts of Congress to make reports
to Comptroller.........................................................................................
^
Oct.
1,1890. Organization of trust, loan, and mortgage companies in the
District of Columbia.......................................................................... 127-136
Mar. 3,1901. Organization of savings banks............................................................ 118-124
Organization of building associations.................................................
124
Reports of savings banks.........................................................................
126
Examination of savings banks................................................................
127
Organization of trust companies, etc....................................................
127
June 30,1902. Amends act of March 3, 1901................................................... ..
118
June 25,1906. All savings banks, trust companies, or other banking institutions
organized under act of Congress or by virtue of laws of any
State required to report to the Comptroller, etc..........................
126
Mar. 4,1909. Building associations in District of Columbia, placed under
supervision of Comptroller of Currency...................................... 124,125







THE NATIONAL BANK ACT AND ACTS AMENDATORY
THEREOF AND SUPPLEMENTARY THERETO.
C H A PTE R I.
BUREAU OF THE COMPTROLLER OF THE CURRENCY.
1. 324. Bureau of the Comptroller of
the Currency.
2. 325. Comptroller of the Currency.
8. 326. Qualification of Comptroller of
the Currency.
Amount of
bond.
4. 327. Deputy Comptroller of the Cur­
rency.
5. Act May 22. 1908. Additional Dep­
uty Comptroller of the Cur­
rency.
6. 328. Clerks.
7. 329. Interest in national banks pro­
hibited.
8. 330. Seal of Comptroller of the Cur­
rency.
9. 331. Rooms, vaults, and furniture
for Currency Bureau.

10. 332. Banks other than national in
District of Columbia. (See
sec. 714, Code District of
Columbia.)
11. 333. Report of Comptroller.
12. Act April 28, 1902. Report of
Comptroller to give com­
plete list of all employees
of the office, information
about failed banks, em­
ployees under receivers, etc.
13. Act January 12, 1895. Number of
copies of report to be
printed.
14. Joint resolution March 4, 1907.
Three thousand additional
copies authorized to be
printed.

BUREAU OF THE COMPTROLLER OF THE CURRENCY.

1. Sec. 324.—There shall be in the Department of the Act June 3,
Treasury a Bureau charged with the execution of all sec64, i; 1 i^
0
laws passed by Congress relating to the issue and regu- stat- L- "•
lation 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.
COMPTROLLER OF THE CURRENCY.

2. Sec. 325.- The Comptroller of the Currency shall be 18q^ c?niod,’
appointed by the President, on the recommendation of |^t L 1;99 13
the Secretary of the Treasury, by and with the advice Act March 3,
and consent of the Senate, and shall hold his office for
1^
3
the term of five years, unless sooner removed by the stat. l ., 398.
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.
QUALIFICATION OF COMPTROLLER OF THE CURRENCY.
AMOUNT OF BOND.

3. Sec. 326.—The Comptroller of the Currency shall,
within fifteen days from the time of notice of his
pointment, take and subscribe the oath of office; and he




9

cU
nioe
99^

l;

‘

10

BUREAU OF TH E COMPTROLLER OF TH E CURRENCY.

shall give to the United States a bond in the penalty of
one hundred thousand dollars, with not less than two
responsible sureties, to be approved by the Secretary
o f the Treasury, conditioned for the faithful discharge
o f the duties of his office.
DEPUTY COMPTROLLER OF THE CURRENCY.

isftf4 JuninR ^ ®
ec*
—There shall be in the Bureau of the Comp■ec. ’ l ; i 3 troller of the Currency a Deputy Comptroller of the
stat. l., 99. Currency, 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 per­
form the duties attached by law to the office of Comp­
troller during a vacancy in the office or during the ab­
sence or inability of the Comptroller. The Deputy
Comptroller shall also take the oath of office prescribed
by the Constitution and laws of the United States, and
shall give a like bond in the penalty of fifty thousand
dollars.
N ote .— The salary of the Deputy Comptroller has been fixed at
various amounts by different appropriation bills, as follow s: Act
March 3, 1875 (sundry civil bill), 18 Stat. L., 396, $3,000; act
March 3, 1901, 31 Stat. L., 978, $2,800; act March 18, 1904, 33
Stat.. L., 103, $3,000; act February 3, 1905, 33 Stat. I;., 049, and
all subsequent acts, $3,500.

ADDITIONAL DEPUTY COMPTROLLER OF THE CURRENCY.
ACT MAY 22, 1908.

Legislative, 5. * * * Deputy Comptroller, three thousand five
jue ai ap^hundred dollars; Deputy Comptroller, three thousand
diciV
propriatlonact, Hollars
approved M aoiiarsay
22 J908
’

*

N ote .— The Attorney General of the United States, in an opinion
rendered June 19, 1908, sa id : “ Generally speaking, a deputy has
power to do every act which his principal may do and is not re­
stricted to some particulars of his office. (Throop on Public Offi­
cers, sec. 58 3; Mechem’s Public Officers, sec. 57 0; Erwin v. U. S.,
37 Fed. Rep. 470.) Doubtless it was on account of this general
rule, and with the intention that there should be no restriction,
that Congress did not deem it necessary to prescribe specifically
the duties of the additional Deputy Comptroller. There being no
limitation or restriction upon the power of that officer, my opinion
is that he would have the same authority as that conferred by
statute upon the first deputy.

CLERKS.

Act June 3, 6. Sec. 328.—The Comptroller of the Currency shall
■ec!4, i; 1 i 3 employ, from time to time, the necessary clerks, to be
0
stat. l., ioo. appointed and classified by the Secretary of the Treas­
ury, to discharge such duties as the Comptroller shall
direct.
INTEREST IN NATIONAL BANKS PROHIBITED.

Act June 3, 7. Sec. 329.—It shall not be lawful for the Comptroller
1M4, c. m or tjie D epU Comptroller of the Currency, either dity
stat. L./99. rectly or indirectly, to be interested in any association
issuing national currency under the laws of the United
States.




BUREAU OF THE COMPTROLLER OF THE CURRENCY.

11

SEAL OF COMPTROLLER OF THE CURRENCY.

8. Sec. 330 [as amended 1875].—The seal devised by the 18£«* 3*ui0l'
Comptroller of the Currency for his office, and approved sec. ’ 2; id
by the Secretary of the Treasury, shall continue to be StA^Feb. is
the seal of office of the Comptroller, and may be renewed 1875, c. so; 18
when necessary. A description of the seal, with an im- stat' L’’ 317‘
pression thereof, and a certificate of approval by the
Secretary of the Treasury, shall be filed in the office of
the Secretary of State.
ROOMS, YAULTS,
BUREAU.

AND

FURNITURE

FOR

CURRENCY

9. Sec. 331.—There shall be assigned, from time to time, lgAct Jun«0J
*
to the Comptroller of the Currency, by the Secretary of s e c ! 3; l i
the Treasury, suitable rooms in the Treasury building for stat*h f 10°*
conducting the business of the Currency Bureau, con­
taining safe and secure fireproof 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 transaction of the business
of his office.
10. Sec. 332.—
Refers entirely to banks other than national in the District of
Columbia and is incorporated in section 714 of the Code of the
District of Columbia and has been repeatedly amended. See said
section 714, page 113, post.

REPORT OF COMPTROLLER.

11. Sec. 333 [as amended 1875].—The Comptroller of
the Currency shall make an annual report to Congress, at
the commencement of its session, exhibiting—
First. A summary of the state and condition o f every lg^ 1 S e6 8:
1 g"n 1
association from which reports have been received thei3 stat.* l/,
preceding year, at the several dates to which such reports 11J,ct Feb. 19,
refer, with an abstract of the whole amount of banking i f 73,gtJ c*
®
capital returned by them, of the whole amount of their 466.
debts and liabilities, the amount of circulating notes out^ b*8oj
standing, and the total amount of means and resources, ^ ’stat. L.,
specifying the amount of lawful money held by them at ‘
the times of their several returns, and such other informa­
tion in relation to such associations as in his judgment
may be useful.
Second. A statement of the associations whose business
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
by which the system may be improved and the security
of the holders of its notes and other creditors may be
increased.
Fourth. A statement exhibiting under appropriate
heads the resources and liabilities and condition of the




12

BUREAU OF THE COMPTROLLER OF THE CURRENCY.

banks, banking companies, and savings banks organized
under the laws of the several States and Territories; such
information to be obtained by the Comptroller from the
reports made by such banks, banking companies, and
savings banks to the legislatures or officers o f the different
States and Territories, and, where such* reports can not
be obtained, the deficiency to be supplied from such other
authentic sources as may be available.
Fifth. The names and compensation of the clerks em­
ployed by him, and the whole amount of the expenses o f
the banking department during the year.
COMPTROLLER TO GIYE COMPLETE LIST OF ALL EMPLOYEES OF THE OFFICE, INFORMATION ABOUT
FAILED BANKS, EMPLOYEES, UNDER RECEIVERS,
ETC. ACT APRIL 28, 1902.
Act April 28,
12.—Provided, That for the fiscal year of nineteen huntivef’executivei dred and two and thereafter, a full and complete list o f
ann
officers, agents, clerks, and other employees of the
act; r §2 stat! office of the Comptroller of the Currency, including bank
l . , 138.
examiners, receivers and attorneys for receivers, and
clerks employed by such examiners and receivers, or any
other person connected with the work of said office in
Washington or elsewhere, whose salary or compensation
is paid from the Treasury of the United States or as­
sessed against or collected from existing or failed banks
under their supervision or control, shall be transmitted to
the Secretary o f the Interior in accordance with the pro­
visions of an Act o f Congress approved January twelfth,
eighteen hundred and eighty-five, relating to the Official
Register: And 'provided further, That the Comptroller o f
the Currency is hereby directed to include in his Annual
Report to the Speaker of the House of Representatives,
expenses incurred during each year, in liquidation of each
failed national bank separately.

NUMBER OF COPIES OF REPORT TO BE PRINTED.
OF JANUARY 12, 1895.

ACT

Jan. 12, 13. Sec. 73.— * * * There shall be printed of the an7 nual report of the Comptroller of the Currency, ten thoul.!
®
16*
sand copies; one thousand for the Senate, two thousand
for the House, and seven thousand for distribution by the
Comptroller of the Currency.
Act

2i95stat.‘

THREE THOUSAND ADDITIONAL COPIES AUTHORIZED TO
BE PRINTED. JOINT RESOLUTION NO. 25, MARCH
4, 1907.
h. j . Res.
1907 ; ^4 rstat!

l„ 1245.

14.—That section 73 of an act “ Providing for the pubprinting and binding, and the distribution of public
documents,” approved January 12, 1895, be, and the same
is hereby, so amended as to authorize the printing annu­
ally hereafter o f ten thousand copies of the annual report
o f the Comptroller of the Currency, for distribution by
the Comptroller of the Currency, instead of seven thou­
sand copies as heretofore.




CHAPTER IT.
ORGANIZATION AND POWERS.

15. Act June 20, 1874.
16.
17.
18.
19.
20.

21.
22.
23.
24.

25.
26.
27.

28.

29.
30.

31.

The nationalbank act.
5133. Formation of national bank­
ing associations.
5134. Requisites of organization
certificate.
5135. How certificate shall be ac­
knowledged and filed.
5136. Corporate powers of associa­
tion.
Act May 1, 1886. Section 1 relates
to increase of capital stock
and is inserted after
sec­
tion 5142.
Act May 1, 1886. May change name
and location.
Act May 1, 1886. Debts not af­
fected by change.
Act May 1, 1886. No release from
liabilities.
Act August 13, 1888. N a t i o n a l
hanks deemed citizens of
states in which located.
Act July 12,1882. Extension of cor­
porate existence.
Act of July 12, 1882. Consent of
two-thirds necessary.
Act July 12, 1882. Special exami­
nation of bank and issue of
certificate of approval by
Comptroller.
Act of July 12, 1882. Status not
changed by extension. Ju­
risdiction of suits by or
against national banks.
Act July 12, 1882. D i s s e n t i n g
shareholders may withdraw.
Act July 12, 1882. Redemption of
circulating notes i s s u e d
prior to extension.
Act July 12, 1882. Dissolution of
banks not extending period
of succession.

THE NATIONAL BANK ACT.

32. Act April 12, 1902. Re-extension of
corporate existence.
33. 5137. Power to hold real property.
34. 5138. Requisite amount of capital.
35. 5139. Shares of stock and trans­
fers.
36. 5140. How payment of capital stock
must be made and certified.
37. 5141. Proceedings if shareholder
fails to pay installments.
38. 5142. National banks may increase
capital stock.
39. Act May 1, 1886. Increase of cap­
ital stock.
40. 5143. Reduction of capital stock.
41. 5144. Right of shareholders to
vote. Proxies authorized.
42. 5145. Election of directors.
43. 5146. Requisite qualification of di­
rectors.
44. 5147. Oath required from directors.
45. 5148. Filling vacancies.
46. 5149. Proceedings where no elec­
tion is held on the proper
day.
47. 5150. Election of president of the
board.
48. 5151. Individual liability of share­
holders.
49. 5152. Executors, trustees, etc., not
personally liable.
50. 5153. National banking associa­
tions to be depositaries of
public moneys.
51. Act May 30, 1908. Interest on pub­
lic deposits.
52. 5154. Conversion of state banks
into national banking asso­
ciations.
53. 5155. State banks having branches.
54. 5156. Reservation of rights of as­
sociations organized under
act of 1863.

ACT JUNE 20, 1874.

15. Sec. 1.—An act entitled “ An act to provide a
1374* J<?ne343
tional currency secured by a pledge o f United States s e c ! i; is
bonds, and to provide for the circulation and redemption stat L" 123'
thereof,” approved June 3,1864, shall hereafter be known
as u the national-bank act.”




13

14

ORGANIZATION AND POWERS.

FORMATION OF NATIONAL BANKING ASSOCIATIONS.
1864? c.uni 06,
1® ®
* ec* 5133.—Associations for carrying on the busi®ec! is 1 3 ness of banking under this Title may be formed by any
a* ’
’ number of natural persons, not less in any case than five.
They shall enter into articles o f association, which shall
specify in general terms the object for which the associa­
tion is formed, and may contain any other provisions,
not inconsistent with law, which the association may see
fit to adopt for the regulation of its business and the con­
duct of its affairs. These articles shall be signed by the
persons uniting to form the association, and a copy o f
them shall be forwarded to the Comptroller o f the Cur­
rency, to be filed and preserved in his office.

REQUISITES OF ORGANIZATION CERTIFICATE.

ism* c°ni 06
*7* ® 5134.—The persons uniting to form such an asec#
sec! 6; i £ sociation shall, under their hands, make an organization
stat l., 101. certificate, which shall specifically state:
First. The name assumed by such association; which
name shall be subject to the approval of the Comptroller
o f the Currency.
Second. The place where its operations of discount and
deposit are to be carried on, designating the State, Terri­
tory, or district, and the particular county and city, town,
or village.
Third. The amount of capital stock and the number of
shares into which the same is to be divided.
Fourth. The names and places of residence o f the
shareholders and the number of shares held by each of
them.
Fifth. The fact that the certificate is made to enable
such persons to avail themselves of the advantages of
this Title.
N ote .— For authority to change names or locations see act May
1, 1886, following section 5136.

HOW CERTIFICATE
FILED.

SHALL BE ACKNOWLEDGED AND

1864 *

?nnioe
18* Sec. 5135.—The organization certificate shall be ace; i3knowledged before a judge o f some court o f record, or
stat l., ioi. notary public; and shall be, together with the acknowl­
edgment thereof, authenticated by the seal o f such court,
or notary, transmitted to the Comptroller of the Cur­
rency, who shall record and carefully preserve the same
in his office.

iec!

CORPORATE POWERS OF ASSOCIATION.
1864 * c^ioo
1®' Sec# 5136.—Upon duly making and filing articles o f
sec! 8; 1 3 association and an organization certificate, the associastat l., ioi. tjon gkajj becomej as f rom the date of the execution of its
organization certificate, a body corporate, and as such,
and in the name designated in the organization certificate,
it shall have power—

First. To adopt and use a corporate seal.




ORGANIZATION AND POWERS.

15

Second. To liavc succession for the period of twenty
years 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.
T1 ird. To make contracts.
Fourth. T o sue and be sued, complain and defend, in
any court of law and equity, as fully as natural persons.
Fifth. To elect or appoint directors, and by its board
of directors to appoint a president, vice-president, cashier,
and other officers, define their duties, require bonds or
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
not inconsistent with law, regulating the manner in
which its stock shall be transferred, its directors elected
or appointed, its officers appointed, its property trans­
ferred, 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
authorized officers or agents, subject to law, all such inci­
dental powers as shall be necessary to carry on the busi­
ness of banking; by discounting and negotiating promis­
sory 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 per­
sonal security; and by obtaining, issuing, and circulating
notes according to the provisions of this Title.
But no association shall transact any business except
such as is incidental and necessarily preliminary to its
organization, until it has been authorized by the Comp­
troller of the Currency to commence the business of
banking.
N ote .— See secs. 5168, 5169 and 5170, pages 35, 36, post, relating
to issuing and publishing of certificate authorizing association to
begin business.

INCREASE OF CAPITAL STOCK.

ACT MAY 1, 1886.

20. Sec. 1.—
Relates to increase of capital stock and is inserted after section
5142, Revised Statutes.

MAY CHANGE NAME AND LOCATION; HOW.
1886.

ACT MAY 1,

21. Sec. 2.—Any national banking association m a y Act May i,
change its name or the place where its operations o f dis-sec! 2; 2 4
count and deposit are to be carried on, to any other place stat- L,f 18within the same State, not more than thirty miles dis­
tant, with the approval of the Comptroller of the Cur­
rency, by the vote of shareholders owning two-thirds o f
the stock of such association. A duly authenticated
notice of the vote and of the new name or location se­
lected shall be sent to the office of the Comptroller o f the




ORGANIZATION AND POWERS.

16

Currency ; but no change of name or location shall be
valid until the Comptroller shall have issued his certifi­
cate o f approval of the same.
DEBTS NOT AFFECTED BY CHANGE.

ACT MAY 1, 1880.

1886 4 * ^ 7 3
0
®
ec*
debts, liabilities, rights, provisions, and
i e c ! 3 * 2 4 powers of the association under its old name shall devolve
;
stat. l., 19. Up 0n an(i inure to the association under its new name.

NO RELEASE FROM LIABILITIES.

ACT MAY 1, 1886.

ig^c* ^ ay7^ 23. Sec. 4.—Nothing in this act contained shall be so
ie c! 4 2 4 construed as in any manner to release any national bank*;
stat. l., 19. j n g association under its old name or at its old location
from any liability, or affect any action or proceeding in
law in which said association may be or become a party
or interested.
NATIONAL BANKS DEEMED CITIZENS OF STATES IN
WHICH LOCATED. ACT AUGUST 13, 1888.
1887 * secr‘ 4 :
®
ec*
national banking associations estab24 stat.* L.;iished under the laws of the United States shall, for the
55lct Aug. is, purposes o f all actions by or against them, real, personal,

ge8 ’ 4 * 826 or mixed> anc^ all suits in equity, be deemed citizens of
c
i
stat. l., 436. the States in which they are respectively located; and in
such cases the circuit and district courts shall not have ju­
risdiction other than such as they would have in cases be­
tween individual citizens of the same State. The pro­
visions o f this section shall not be held to affect the juris­
diction of the courts o f the United States in cases com­
menced by the United States or by direction of any officer
thereof, or cases for winding up the affairs of any such
bank.
EXTENSION OF CORPORATE EXISTENCE.
1882.

ACT JULY 12,

1882 1 *cUly290
^ec'
any na^ional banking association ors ec! i ; 2 2 ganized under the acts of February twenty-fifth, eighteen
stat. l ., 162. hundred and sixty-three, June third, eighteen hundred
and sixty-four, and February fourteenth, eighteen hun­
dred and eighty, or under sections fifty-one hundred and
thirty-three, fifty-one hundred and thirty-four, fifty-one
hundred and thirty-five, fifty-one hundred and thirty-six,
and fifty-one hundred and fifty-four o f the Revised
Statutes of the United States, may, at any time within
the two years next previous to the date of the expiration
o f its corporate existence under present law, and with the
approval o f the Comptroller of the Currency, to be
granted, as hereinafter provided, extend its period of
succession by amending its articles o f association for a
term of not more than twenty years from the expiration
o f the period of succession named in said articles o f asso­
ciation, and shall have succession for such extended
period, unless sooner dissolved by the act of shareholders
owning two-thirds of its stock, or unless its franchise
becomes forfeited by some violation of law, or unless
hereafter modified or repealed.




ORGANIZATION AND POWERS.

17

N ote .— Act of Feb. 14, 1880, relates to the conversion of gold
banks into currency banks, and is inserted after Revised Statutes
5186.

CONSENT OF TWO-THIRDS NECESSARY.
1882.

ACT JULY 12,

26. Sec. 2.—That such amendment of said articles of Act July 12,
association shall be authorized by the consent in writing se8 2 ; 22°2
c!
of shareholders owning not less than two-thirds of the stat- L *1€2capital stock of the association; and the board of direc­
tors shall cause such consent to be certified under the seal
of the association, by the president or cashier, to the
Comptroller of the Currency, accompanied by an appli­
cation made by the president or cashier for the approval
of the amended articles of association by the Comp­
troller; and such amended articles of association shall
not be valid until the Comptroller shall give to such asso­
ciation a certificate under his hand and seal that the
association has complied with all the provisions required
to be complied with, and is authorized to have succession
for the extended period named in the amended articles of
association.
SPECIAL EXAMINATION OF BANK AND ISSUE OF CER­
TIFICATE OF APPROVAL BY COMPTROLLER. ACT
JULY 12, 1882.

27. Sec. 3.—That upon the receipt of the application lg£ct July2J *
g
and certificate of the association provided for in the pre-sec! 3; 22
ceding section, the Comptroller of the Currency shall stat L” 163'
cause a special examination to be made, at the expense of
the association, to determine its condition; and if after *
such examination or otherwise, it appears to him that
said association is in a satisfactory condition, he shall
grant his certificate of approval provided for in the pre­
ceding section, or if it appears that the condition of said
association is not satisfactory, he shall withhold such
certificate of approval.
STATUS NOT CHANGED BY EXTENSION, JURISDICTION
OF SUITS BY OR AGAINST NATIONAL BANKS. ACT
JULY 12, 1882.

28. Sec. 4.—That any association so extending the 1g£cit cU
ly29o
period of its succession shall continue to enjoy all the sec! 4 ; 2 2
rights and privileges and immunities granted and shall stat* L* 163,
’
continue to be subject to all the duties, liabilities, and re­
strictions imposed by the Revised Statutes of the United
States and other acts having reference to national bank­
ing associations, and it shall continue to be in all respects
the identical association it was before the extension of its
period o f succession: Provided, however, That the juris­
diction for suits hereafter brought by or against any as­
sociation established under any law providing for na­
tional banking associations, except suits between them
and the United States or its officers and agents, shall be
the same as, and not other than, the jurisdiction for suits
88020° —11 2
----




18

ORGANIZATION AND POWERS.

by or against banks not organized under any law of the
United States which do or might do banking business
where such national banking association may be doing
business when such suits may be begun: And all laws
and parts of laws of the United States inconsistent with
this proviso be, and the same are hereby, repealed.
N ote .— See also act of August, 13, 3888, relating to citizenship
of national banks and jurisdiction of the circuit and district
courts, which follows sec. 5136, page 16, ante.

DISSENTING SHAREHOLDERS
JULY 12, 1882.

MAY

WITHDRAW.

ACT

188^ ’cU 29o
ly
® t —That when any national banking associaeC
sec! 5; 2 2tion has amended its articles of association as provided
stat. l., 163. m
ac^ an(j
(Comptroller has granted his certificate
o f approval, any shareholder not assenting to such
amendment may give notice in writing to the directors,
within thirty days from the date of the certificate of ap­
proval, of his desire to withdraw from said association,
in which case he shall be entitled to receive from said
banking association the value o f the shares so held by
him, to be ascertained by an appraisal made by a com­
mittee of three persons, one to be selected by such share­
holder, one by the directors, and the third by the first
two; and in case the value so fixed shall not be satisfac­
tory to any such shareholder, he may appeal to the Comp­
troller of the Currency, who shall cause a reappraisal
to be made, which shall be final and binding; and if said
%
reappraisal shall exceed the value fixed by said commit­
tee, the bank shall pay the expenses of said reappraisal,
and otherwise the appellant shall pay said expenses; and
the value so ascertained and determined shall be deemed
to be a debt due, and be forthwith paid, to said share­
holder, from said bank; and the shares so surrendered
and appraised shall, after due notice, be sold at public
sale, within thirty days after the final appraisal provided
in this section: Provided, That in the organization of any
banking association intended to replace any existing
banking association, and retaining the name thereof, the
holders of stock in the expiring association shall be enti­
tled to preference in the allotment of the shares of the
new association in proportion to the number of shares
held by them respectively in the expiring association.

REDEMPTION OF CIRCULATING NOTES ISSUED PRIOR TO
EXTENSION. ACT JULY 12, 1882.
1882 4 c
uly290
30- Sec* 6 —That the circulating notes of any associas e c ! 6; 2 2 tion so extending the period of its succession which shall
stat. l., 163. jiave been issued to it prior to such extension shall be re­
deemed at the Treasury of the United States, as provided
in section three of the act of June twentieth, eighteen
hundred and seventy-four, entitled “ An act fixing the
amount of United States notes, providing for redistribu­
tion of national bank currency, and for other purposes,”




ORGANIZATION AND POWERS.

19

and such notes when redeemed shall be forwarded to the
Comptroller of the Currency, and destroyed, as now pro­
vided by law ; and at the end of three years from the date
of the extension o f the corporate existence of each bank
the association so extended shall deposit lawful money
with the Treasurer of the United States sufficient to re­
deem the remainder of the circulation which was out­
standing at the date of its extension, as provided in
sections fifty-two hundred and twenty-two, fifty-two
hundred and twenty-four, and fifty-two hundred and
twenty-five of the Revised Statutes; and any gain that
may arise from the failure to present such circulating
notes for redemption shall inure to the benefit of the
United States; and from time to time, as such notes are
redeemed or lawful money deposited therefor as provided
herein, new circulating notes shall be issued as provided
by this act, bearing such devices, to be approved by the
Secretary of the Treasury, as shall make them readily
distinguishable from the circulating notes heretofore
issued: Provided, however, That each banking associa­
tion which shall obtain the benefit of this act shall reim­
burse to the Treasury the cost of preparing the plate or
plates for such new circulating notes as shall be issued
to it.
N ote .— Act of June 20, 1874, section 3, mentioned above, is in­
serted after Revised Statutes 5102. The destruction of bank
notes by burning, as provided in sections 5184, 5225, Revised
Statutes, is superseded by act of June 23, 1874, which requires
bank notes to be macerated.

DISSOLUTION OF BANKS NOT EXTENDING PERIOD OF
SUCCESSION. ACT JULY 12, 1882.

31. Sec. 7.—That national banking associations whose Act July 12,
corporate existence has expired or shall hereafter expire, se8c! 7 ; 22 2
and which do not avail themselves of the provisions of stat- L-» 164*
this act, shall be required to comply with the provisions
o f sections fifty-two hundred and twenty-one and fiftytwo hundred and twenty-two of the Revised Statutes in
the same manner as if the shareholders had voted to go
into liquidation, as provided in section fifty-two hundred
and twenty of the Revised Statutes; and the provisions
of sections fifty-two hundred and twenty-four and fiftytwo hundred and twenty-five of the Revised Statutes
shall also be applicable to such associations, except as
modified by this act: and the franchise of such associa­
tions is hereby extended for the sole purpose of liquidat­
ing their affairs until such affairs are finally closed.
N ote .— Other sections of act of July 12, 1882.
S ec . 8.— [Relates to bond deposits and circulating notes.]

Fol­
lows Revised Statutes, section 5167.
S ec . 9.— [Relates to withdrawal of circulating notes.]
Follows
Revised Statutes, section 5107.
S ec. 10.— Repealed sections 5171-5176, Revised Statutes, and
was superseded by act of March 14, 1900. (See section 5171, Re­
vised Statutes.)




20

ORGANIZATION AND POWERS.
S ec . 11.— A u th orizes the exchange o f three per cent bonds fo r
outstanding three and one-half per cent bonds.
S ec . 12.— Authorizes the issue of gold certificates upon the de­

posit of gold coin. Inserted after section 5207.
S ec. 13.— [Relates to false certification of checks.]
vised Statutes, section 5208.

REEXTENSION OF CORPORATE EXISTENCE.
APRIL 12, 1902.
1902 * cf^BOS;
32 stat. l.’
,

102‘

Follows Re­

ACT OF

32. That the Comptroller of the Currency is hereby
authorized, in the manner provided by, and under the
conditions and limitations of, the act of July 12, 1882, to
extend for a further period of twenty years the charter
o f any national banking association extended under said
act which shall desire to continue its existence after the
expiration of its charter.
POWER TO HOLD REAL PROPERTY.

1864 * cuni 06
®
ec*
^ national banking association may
sec! 28, 1 3 purchase, hold, and convey real estate for the following
stat. l., 107. purposes, and for no others:
First. Such as shall be necessary for its immediate ac­
commodation 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.
Fourth. Such as it shall purchase at sales under judg­
ments, decrees, or mortgages held byr the association, or
shall purchase to secure debts due to it.
But no such association shall hold the possession of any
real estate under mortgage, or the title and possession of
any real estate purchased to secure any debts due to it, for
a longer period than five years.

REQUISITE AMOUNT OF CAPITAL.
1864 *

cU 06
ni
®
ec‘
I-as amen^e ^ 1900].—No association shall
<
sec! 7; 1 3 be organized with a less capital than one hundred thou^1Act^M
w^*i4 san(^ dollars, except that banks with a capital of not less
1900, c 4 i! than fifty thousand dollars may, with the approval of the
ar*
stat.* l . 1^ . 31 Secretary of the Treasury, be organized in any place the
population of which does not exceed six thousand inhabi­
tants, and except that banks with a capital of not less
than twenty-five thousand dollars may, with the sanction
of the Secretary of the Treasury, be organized in any
place the population of which does not exceed three
thousand inhabitants. No association shall be organized
in a city the population of which exceeds fifty thousand
persons with a capital of less than two hundred thousand
dollars.
SHARES OF STOCK AND TRANSFERS.

3, 35. Sec. 5139.—The capital stock of each association
se6 i* ;1 i1s shall be divided into shares of one hundred dollars each,
c! 2 0
stat. l., 102. an(j be deemed personal property, and transferable on the
books of the association in such manner as may be preAct June




ORGANIZATION AND POWERS.

21

scribed in the by-laws or articles of association. Every
person becoming a shareholder by such transfer shall, in
proportion to his shares, succeed to all the rights and lia­
bilities of the prior holder of such shares; and no change
shall be made in the articles of association by which the
rights, remedies, or security of the existing creditors of
the association shall be impaired.
HOW PAYMENT OF THE CAPITAL STOCK MUST BE MADE
AND CERTIFIED.

36. Sec. 5140.—At least fifty per centum of the capital 18£4 JuniO ’
ct
0
stock of every association shall be paid in before it shall sec! 14; 13
be authorized to commence business; and the remainder stat’ L” 103‘
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 install­
ment shall be certified to the Comptroller, under oath, by
the president or cashier of the association.
PROCEEDINGS IF SHAREHOLDER FAILS TO PAY INSTALL­
MENTS.

37. Sec. 5141.—Whenever any shareholder, or his as- lgAct June^,
signee, fails to pay any installment on the stock when the s e c ! 1 5 ; is
same is required by the preceding section to be paid, the stat- L ’ 103*
directors of such association may sell the stock of such
delinquent shareholder at public auction, having given
three weeks’ previous notice thereof in a newspaper pub­
lished and of general circulation in the city or county
where the association 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. Tf 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. I f any such cancellation and reduc­
tion shall reduce the capital of the association below the
minimum of capital required by law, the capital stock
shall, within thirty days from the date of such cancella­
tion, be increased to the required amount; in default of
which a receiver may be appointed, according to the pro­
visions of section fifty-two hundred and thirty-four, to
(*lose up the business of the association.




22

ORGANIZATION AND POWERS.

NATIONAL BANKS MAY INCREASE CAPITAL STOCK.
1864 1 cU 06
ni
® ®142.—
ec*
association formed under this Title
s e c ! 13; 13 may, by its articles of association, provide for an increase
stat. l., 103. 0jp * s capital from time to time, as may be deemed expe­
^
dient, subject to the limitations of this Title. But the
maximum o f such increase to be provided in the articles
o f 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 transmitted to the Comptroller
of the Currency, and his certificate obtained specifying
the amount of such increase of capital stock, with his
approval thereof, and that it has been duly paid in as
part of the capital of such association.

INCREASE OF CAPITAL STOCK.

ACT MAY 1, 1886.

1886*
73’
®
ec# —That any national banking association may,
sec! i; 24 with the approval of the Comptroller of the Currency,
stat. l., 18. ^ f.jle V()£e ()£ shareholders owning two-thirds o f the
stock of such association, increase its capital stock, in ac­
cordance with existing laws, to any sum approved by the
said Comptroller, notwithstanding the limit fixed in its
original articles of association and determined by said
Comptroller; and no increase of the capital stock o f any
national banking association either within or beyond the
limit fixed in its original articles of association shall be
made except in the manner herein provided.
N ote .— Other sections of this act follow Revised Statutes 5336.

REDUCTION OF CAPITAL STOCK.
Act June 3,
se6 ’. i 3 ;1 i63
c
0
stat. l ., 103.

40. Sec. 5143.—Any association formed under this Title
may, by the vote of shareholders owning two-thirds of
^s capital stock, reduce its capital to any sum not below
the amount required by this Title to authorize the forma­
tion o f associations; but no such reduction shall be allow­
able 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 reduction has been reported to the Comp­
troller of the Currency and his approval thereof obtained.
RIGHT OF SHAREHOLDERS TO YOTE; PROXIES AUTHOR­
IZED.

Act June 3,
41. Sec. 5144.—In all elections of directors, and in de­
lse6 li ;1 i% ciding all questions at meetings of shareholders, each
c!
0
stat. l ., 102. shareholder shall be entitled to one vote on each share of
stock held by him. Shareholders may vote by proxies
duly authorized in writing; but no officer, clerk, teller, or
book-keeper of such association shall act as proxy; and
no shareholder whose liability is past due and unpaid
shall be allowed to vote.
N ote .— The Circuit Court of the United States, in United States
v. Barry, 30 P. R., 240, held that the words “ liability past due and
unpaid ” referred only to unpaid subscriptions for stock.




ORGANIZATION AND POWERS.

2b

ELECTION OF DIRECTORS.

42. Sec. 5145.—The affairs of each association shall be 18^ t
managed by not less than five directors, who shall be secs. 9, 1 0 ; 13
elected by the shareholders at a meeting to be held at any stat*Lf 102‘
time before the association is authorized by the Comp­
troller of the Currency to commence the business of bank­
ing; and afterward at meetings to be held on such day in
January o f each year as is specified therefor in the
articles o f association. The directors shall hold office for
one year, and until their successors are elected and have
qualified.
REQUISITE QUALIFICATION OF DIRECTORS.

43. Sec. 5146 [as amended 1905].—Every director m u s t , lg^ t June0|
>
during his whole term of service, be a citizen of the secs.’ o, 1 0 ; 13
United States, and at least three fourths of the direc- stActL
Feb?2
28,
tors 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 resi­
dents 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 di­
rector, unless the capital of the bank shall not exceed
twenty-five thousand dollars, in which case he must own
in his own right at least five shares of such capital stock.
Any director who ceases to be the owner of the required
number of shares of the stock, or who becomes in any
other manner disqualified, shall thereby vacate his place.
OATH REQUIRED FROM DIRECTORS.

44. Sec. 5147.— Each director, when appointed or elected, 18£4 cU ®
ct n 0|
shall take an oath that he will, so far as the duty devolves sec! 9 ; is
on him, diligently and honestly administer the affairs of stat* L'* 102‘
such association, and will not knowingly violate, or willingly permit to be violated, any of the provisions of this
Title, and that he is the owner in good faith, and in his
own right, o f the number of shares of stock required by
this Title, subscribed by him, or standing in his name on
the books o f 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 mak­
ing it, and certified by the officer before whom it is taken,
shall be immediately transmitted to the Comptroller of
the Currency, and shall be filed and preserved in his office.
FILLING YACANC1ES.

45. Sec. 5148.—Any vacancy in the board shall be filled 18^ t
by appointment by the remaining directors, and any d i - s e c ! 1* ; 13
0
rector so appointed shall hold his place until the next stat* L 102‘
,f
election.
PROCEEDINGS WHERE NO ELECTION IS HELD ON THE
PROPER DAY.

46. Sec. 5149.—If, from any cause, an election of di- lg£4 JU ioo
ct I1
rectors is not made at the lime appointed, the association sec! 1* : 13
0
shall not for that cause be dissolved, but an election may stat‘ L” 302‘




24

ORGANIZATION AND POWERS.

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 news­
paper published nearest thereto. I f the articles o f asso­
ciation 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 o f di­
rectors 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.
ELECTION OF PRESIDENT OF THE BOARD.
1864 *

sec!

c
.unioI; ^ ^ec< 5150.— One of the directors, to be chosen by the
3 board, shall be the president of the board.

9 ; i
Stat. L., 102.

5

1

INDIVIDUAL LIABILITY OF SHAREHOLDERS.
1864 * cU
njoe,
^ec* 5151.—The shareholders of every national
sec! 12 ; 13 banking association shall be held individually responsistat. l., 1
02 j , ^ eqLiai]y 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 shareholders of any banking
association now existing under State laws, having not
less than five millions of dollars of capital actually paid
in, and a surplus o f 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 pro­
vided for in this Title; and if at any time there is a defi­
ciency in such surplus of twenty per centum, such asso­
ciation shall not pay any dividends to its shareholders
until the deficiency is made good; and in case of such
deficiency, the Comptroller of the Currency may compel
the association to close its business and wind up its af­
fairs under the provisions of chapter fou ra of this Title.
N ote .— See act of June 30, 1876, following section 5238, Revised
Statutes, for enforcement of liability prescribed by this section in
cases of voluntary liquidation.

EXECUTORS, TRUSTEES, ETC., NOT PERSONALLY LIABLE.

is«4 t ?unio6
C
® 5152.—Persons holding stock as executors, adec*
6 3 ; is ministrators, guardians, or trustees shall not be personstat. l., us. ajiy subject to any liabilities as stockholders; but the
estates and funds in their hands shall be liable in like
manner and to the same extent as the testator, intestate,
ward, or person interested in such trust-funds would be,
if living and competent to act and hold the stock in his
own name.

sec!




a Chapter 5 of this compilation.

ORGANIZATION AND POWERS.

25

NATIONAL BANKING ASSOCIATIONS TO BE DEPOSITA­
RIES OF PUBLIC MONEYS.

50. Sec. 5153 [as amended 1907],—All national banking
Jun®
06;
associations, designated for that purpose by the Secre-see! l 45^ 1^
tary of the Treasury, shall be depositaries of public Act M 3,
ar.
money, under such regulations as may be prescribed by*®0*; *•
.
the Secretary; and they may also be employed as finan-st^VtL ar444
M
cial agents o f the Government; and they shall perform 1907 ; m stat!
all such reasonable duties, as depositaries of public money L” *290,
and financial agents o f the Government, as may be re­
quired of them. The Secretary of the Treasury shall
require the associations thus designated to give satisfac­
tory 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 faith­
ful performance of their duties as financial agents of the
Government: Provided, That the Secretary shall, on or
before the first of January of each year, make a public
statement o f the securities required during that year for
such deposits. 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 what­
ever association issued, which have been paid into the
Government for internal revenue, or for loans or stocks:
Provided, That the Secretary of the Treasury shall dis­
tribute the deposits herein provided for, as far as prac­
ticable, equitably between the different States and sections.
N ote .— For other provisions relating to duties and liabilities of
depositaries see following sections of the Revised Statutes of the
United States:
See. 3040. Transfer of moneys from depositaries to Treasury
authorized.
See. 8041. Transfer of postal deposits.
See. 3042. Accounts of postal deposits.
See. 3043. Entry of each deposit, transfer, and payment.
See. 3044. Public moneys in Treasury and depositories subject to
draft of Treasurer.
Sec. 30-15. Regulations for presentment of drafts.
Sec. 3640. Duplicates for lost or stolen checks authorized.
Sec. 3047. Duplicate check when officer who issued is dead.
Sec. 3048. Advances of public moneys prohibited.
Sec. 3049. Examination of depositaries.
See also secs. 3020, 3847, 4040, 5488, and 5497, page 88, post.

INTEREST ON PUBLIC DEPOSITS.

ACT MAY 30, 1908.

51. Sec. 15.—That all national banking associations des- 19os *s cayii°
^
ignated as regular depositaries of public money shall pay
upon all special and additional deposits made by the
Secretary of the Treasury in such depositaries, and all
.such associations designated as temporary depositaries
of public money shall pay upon all sums of public money
deposited in such associations interest at such rate as the
Secretary of the Treasury may prescribe, not less, how­
ever, than one per centum per annum upon the average
monthly amount of such deposits: Provided, however,
That nothing contained in this Act shall be construed to




26

ORGANIZATION

and

pow ers.

change or modify the obligation o f any association or any
o f its officers for the safe-keeping of public money: P ro­
vided. further, That the rate of interest charged upon
such deposits shall be equal and uniform throughout the
United States.
CONVERSION OF STATE BANKS INTO NATIONAL BANKING
ASSOCIATIONS.
1864* cuni 06
® 5154—Any bank incorporated by special law,
ec#
s e c ! 4 4 ; 13 or any banking institution organized under a general law
stat. l., 112. o:p any jgtate, may become a national association under
this Title by the name prescribed in its organization cer­
tificate; and in such case the articles of association and
the organization certificate may be executed by a ma­
jority o f the directors o f the bank or banking institution;
and the certificate shall declare that the owners of twothirds of the capital stock have authorized the directors
to make such certificate, and to change or convert the
bank or banking institution into a national association.
A majority of the directors, after executing the articles
o f association and organization certificate, shall have
power to execute all other papers, and to do whatever
may be required to make its organization perfect and
complete as a national association. The shares o f any
such bank may continue to be for the same amount each
as they were before the conversion, and the directors may
continue to be the directors o f the association until others
are elected or appointed in accordance with the provi­
sions o f this chapter; and any State bank which is a
stockholder in any other bank, by authority o f State laws,
may continue to hold its stock, although either bank, or
both, may be organized under and have accepted the pro­
visions o f this Title. When the Comptroller o f the Cur­
rency has given to such association a certificate, under
his hand and official seal, that the provisions of this
Title have been complied with, and that it is authorized
to commence the business of banking, the association shall
have the same powers and privileges, and shall be sub­
ject to the same duties, responsibilities, and rules, in all
respects, as are prescribed for other associations origi­
nally organized as national banking associations, and
shall be held and regarded as such an association. But
no such association shall have a less capital than the
amount prescribed for associations organized under this
Title.

STATE BANKS HAYING BRANCHES.

M 3, 53, Sec. 5155.—It shall be lawful for any bank or bankar.
be c ! 7; 13 ing association organized under State laws, and having
stat. l ., 484. branches, the capital being joint and assigned to and used
by the mother-bank and branches in definite proportions,
to become a national banking association in conformity
with existing laws, and to retain and keep in operation its
branches, or such one or more of them as it may elect to
Act




ORGAN NATION AND POWERS.

27

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 RIGHTS OF ASSOCIATIONS ORGANIZED
UNDER ACT OF 1863.

54.
Sec. 5156.—Nothing in this Title shall affect any JgAct JU ® *
I 0g
1
appointments made, acts done, or proceedings had or s e c ! 62; i s
commenced prior to the third day of June, eighteen hun- stat* 118*
dred 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, liabili­
ties, and restrictions imposed by this Title, notwithstand­
ing all the steps prescribed by this Title for the organiza­
tion of associations were not pursued, if such associations
were duly organized under that act.




CHAPTER III.
O B TA IN IN G AND ISSUING CIR C U LA TIN G NOTES.

5157. W hat associations are gov­
erned by
chapters two,
three, and four.
56. 5158. Registered bonds intended
by the terms “ United States
bonds.”
57. 5159. Deposit of bonds required
before issue of circulating
notes.
58. Act December 21, 1905. Panama
Canal bonds have all rights
and privileges accorded to
other two per cent bonds of
the United States.
59. 5160. Increase or reduction of de­
posit to correspond with
capital.
60. 5161. Exchange of coupon for reg­
istered bonds.
61. 5162. Manner of making transfers
of bonds.
62. 5163. Registry of transfers.
63. 5164. Notice of transfer to be given
to association interested.
64. 5165. Examination of registry and
bonds.
65. 5166. Annual examination of bonds
by association.
66. 5167. General provisions respecting
bonds.
67. Act June 20, 1874. Withdrawal of
circulating notes on deposit
of lawful money and with­
drawal of bonds.
68. Act July 12,1882. Amount of bonds
required to be on deposit.
Reduction of amount or re­
tirement in full of circulat­
ing notes.
Act July 12, 1882, as amended May
30, 1908. Withdrawal of cir­
culating notes on deposit of
lawful money and with­
drawal of bonds. Not more
than nine millions to be de­
posited during any calendar
month. Withdrawal of ad­
ditional circulation on de­
posit of lawful money or
na t ion a 1
-ban k iiot es.
70. 5168. Comptroller to determine if
association can commence
business.
71. 5169. Certificate of authority to
commence banking to be is­
sued.
72. 5170. Publication of certificate.
28




73. 5171. Repealed by act August 12,
1882
74. Act March 14, 1900. Delivery of
circulating notes.
75. 5172. Printing denominations and
form
of the circulating
notes.
76. Act June 20, 1874. Charter number
to be printed on notes.
77. Act March 3, 1875. Distinctive pa­
per for printing notes.
78. 5173. Plates and dies to be under
control of the Comptroller.
79. 5174. Examination of plates and
dies.
80. 5175. Limit to issue of notes under
five dollars.
81. 5176. Repealed by act July 12,
1882.
82. 5177. Repealed by act January 14,
1875.
83. Act January 14, 1875. Aggregate
amount of circulating notes
not limited.
84. 5178. Superseded by act January
14, 1875.
85. 5179. Superseded by act January
14, 1875.
86. 5180. Repealed by act January 14,
1875.
87. 5181. Superseded by act January
14, 1875.
88. 5182. For what demands national
bank-notes may be received.
89. 5183. Issue of post notes, etc., pro­
hibited.
90. 5184. Destroying a n d
replacing
worn out and mutilated
notes.
91. Act June 23, 1874. Maceration of
national-bank notes.
92. 5185. Organization of associations
to issue gold notes.
93. 5186. Reserve requirements f o r
gold banks.
94. Act February 14, 1880. Conversion
of national gold banks into
currency banks.
95. 5187. Penalty for issuing circulat­
ing notes to unauthorized
associations.
96. 5188. Penalty for imitating bank
circulation.
Use of same
for advertising purposes.
97. 5189. Penalty for mutilating circu­
lation.

OBTAIN TNG AND ISSUING CIRCULATING NOTES.

29

ACT MAY 30, 1908, AUTHORIZING NATIONAL CURRENCY ASSOCIATIONS, THE
ISSUE OF ADDITIONAL NATIONAL-BANK CIRCULATION, AND CREATING A
NATIONAL MONETARY COMMISSION.
98. Sec. 1. Formation
of
national
currency associations.
00. Sec. 1 (continued). C o n d itio n s
under which hanks belong­
ing to national currency as­
sociations may take out addit ion a 1 c ircu 1 ion.
at
100. Sec. 2. Redemption fund below
requirement. Duty of Treas­
urer of the United States.
101. Sec. 3. W hat national banks may
apply for authority to issue
additional circulation o n
bonds other than United
States bonds. What bonds
will be accepted for such
additional circulation.
102. Sec. 4. Legal title of bonds de­
posited to secure additional
circulation. Assignment of
bonds by Treasurer to be
counter signed by the Comp­
troller of the Currency.
103. Sec. 5. Additional circulation, how
treated. Limit to amount
of circulation issued to each
hank.
Limit
to
total
amount outstanding under
this act.
104. Sec. 6. Amount of redemption
fund.
105. Sec. 7. Equitable distribution of
notes.
106. Sec. 8. Secretary of the Treasury
to furnish information as to
the value and character of
securities.

107. Sec.
108. See.

100. Sec.
110. Sec.

111. Sec.

112. Sec,

113. Sec.

114. Sec.
115. Sec,
11(5. Sec.

117. Sec.
118. Sec.

9.

Amends section 5214, Re­
vised Statutes.
10. Amends act July 12. 1882,
as amended March 4, 1907.
Inserted after section 5107.
11. Amends section 5172, Re­
vised Statutes.
12. Circulating notes to be
redeemed in lawful money
of the United States.
13. All acts of the Comptrol­
ler of the Currency and
Treasurer of the United
States under this act to he
approved by the Secretary
of the Treasury.
14. Is amendatory of section
5191, Revised Statutes. In­
serted after that: section.
15. Relates to deposit of
public money and is insert­
ed after section 5133. R e­
vised Statutes.
10. Expenses of act.
17. Appointment of monetary
commission.
is. Powers of commission.
Commission to report to
Congress.
19. Expenses of commission.
20. When act expires by limi­
tation.

WHAT ASSOCIATIONS ARE GOYERNED BY CHAPTERS
TWO, THREE, AND FOUR.

55. Sec. 5157.—The provisions of chapters two, three,
and four ° of this Title, which are expressed without re­
strictive words, as applying to “ national banking associa­
tions,” or to “ associations,” apply to all associations
organized to carry on the business of banking under^any
act of Congress.
REGISTERED BONDS INTENDED BY THE TERM “ UNITED
STATES BONDS.”

56. Sec. 5158.—The term “ United States bonds,” as 18^ t
used throughout this chapter, shall be construed to mcan|fat*L4 ;L0
: 01^
registered bonds of the United States.
DEPOSIT OF BONDS REQUIRED BEFORE ISSUE OF CIR­
CULATING NOTES.

57.
Sec. 5159.— Every association, after having com- Act June 3
,
plied with the provisions of this Title, preliminary t 0 g|64: i 6 ; 1 i 3
c
0
the commencement of the banking business, and before i t stat- L» 104*
a Chapters three, four, and five of this compilation.




30

OBTAINING AND ISSUING CIRCULATING NOTES.

shall be authorized to commence banking business under
this Title, shall transfer and deliver to the Treasurer of
the United States any United States registered bonds,
bearing interest, \to an amount not less than thirty thou­
sand 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.
N otk.— The italicized words are hold to be modified by the acts
of June 20, 1874, and July 12, 1882. Section 4, act of June 20,
3874, which follows section 5167, provides in part that the amount
of bonds on deposit for circulation shall not be reduced below
$50,000. This determines the amount of bonds required to be de­
posited by banks organizing with capital stock over $150,000.
Banks having a capital of $150,000, or less, are not required to
keep on deposit bonds in excess of one-fourth of the capital stock
as security for their circulating notes, by act July 12,1882, chapter
290, section 8. This act follows section 5167, Revised Statutes.

PANAMA CANAL BONDS HAVE ALL RIGHTS AND PR IV I­
LEGES ACCORDED TO OTHER TWO PER CENT BONDS
OF THE UNITED STATES. ACT DECEMBER 21, 1905.
190V 34estat’
l., 5.’
’

That the two per cent bonds of the United States
authorized by section eight of the act entitled “ An act to
m
a^canaTbonds provide for the construction of a canal connecting the
issued under act waters of the Atlantic and Pacific oceans,” approved June
^ceivabi^as^e- twenty-eight, nineteen hundred and two, shall have all
lation. Seepage
rights and privileges accorded by law to other two
io8o ’
per cent bonds of the United States, and every national
banking association having on deposit, as provided by
law, such bonds issued under the provisions of said sec­
tion eight of said act approved June twenty-eight, nine­
teen hundred and two, to secure its circulating notes, shall
pay to the Treasurer of the United States, in the months
of January and July, a tax of one-fourth of one per cent
each half year upon the average amount of such of its
notes in circulation as are based upon the deposit of said
two per cent bonds; and such taxes shall be in lieu of ex­
isting taxes on its notes in circulation imposed by section
fifty-two hundred and fourteen of the Revised Statutes.
INCREASE OR REDUCTION OF DEPOSIT TO CORRESPOND
WITH CAPITAL.
1864 1 cunio6
® 5160.—The deposit of bonds made by each asec#
sec! 16; 13 sociation shall be increased as its capital may be paid up
stat. l., 104. or increase(j 5 so that every association shall at all times
have on deposit with the Treasurer registered United
States bonds to the amount [o f at least one-third of its
capital stock actually paid in ]. And any association that
may desire to reduce its capital, or close up its business
and dissolve its organization, may take up its bonds
upon returning to the Comptroller its circulating notes
in the proportion hereinafter required, or may take up
any excess of bonds beyond \one-third of its capital




OBTAINING AND ISSUING CIRCULATING NOTES.

31

stock], and upon which no circulating notes have been
delivered.
N ote .— In reference to italicized words see notes under section
5159, and acts of June 20, 1874, and July 12, 1882, set forth in full
following Revised Statutes, section 5167. These acts fix the mini­
mum of bonds as $50,000 for all banks over $150,000 capital and as
one-fourth of the capital stock for all banks having a capital of
$150,000 or less.

EXCHANGE OF COUPON FOR REGISTERED BONDS.

60. Sec. 5161.— To facilitate a compliance with the twOjg^J* J"n50§;
preceding sections, the Secretary of the Treasury is au- |ec! L1®;041^
1
thorized to receive from any association, and cancel, any ta ' *
’
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.
MANNER OF MAKING TRANSFERS OF BONDS.

61. Sec. 5162.—A ll transfers of United States bonds,
c
Junio6
made by any association under the provisions of thisjec! 19; id
Title, shall be made to the Treasurer of the United a '
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 ap­
pointed 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 anv circulating notes that have been or
may be delivered to such association. No assignment or
transfer of any such bond by the Treasurer shall be
deemed valid unless countersigned by the Comptroller
of the Currency.
REGISTRY OF TRANSFERS.

62. Sec. 5163.—The Comptroller of the Currency shall j g ^ cuniol;
keep in his office a book in which he shall cause to besecs/19- 20^ 13
entered, immediately upon countersigning it, every a ‘ ”
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 o f the party to whom it is made, and
the par value o f the bonds transferred.
NOTICE OF TRANSFER TO BE GIVEN TO ASSOCIATION
INTERESTED.

63. Sec. 5164.—The Comptroller of the Currency shall, 18££l cU i06t
n
immediately upon countersigning and entering any transfer or assignment by the Treasurer, of any bonds belong- tat‘ ”
ing 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.




32

OBTAINING AND ISSUING CIRCULATING NOTES.

EXAMINATION OF REGISTRY AND BONDS.
1864 * c
.uni 06, ® ® t 5165.—The Comptroller of the Currency shall
’
^* eC
sec! 2 0 ; 13 have at all times, during office hours, access to the books
stat. l., 105.
treasurer Gf ^he United States for the purpose of
ascertaining the correctness of any transfer or assignment
o f the bonds deposited by an association, presented to the
Comptroller to countersign; and the Treasurer shall have
the like access to the book mentioned in section fifty-one
hundred and sixty-three, during office hours, to ascertain
the correctness of the entries in the same; and the Comp­
troller shall also at all times have access to the bonds on
deposit with the Treasurer to ascertain their amount and
condition.

ANNUAL EXAMINATION OF BONDS BY ASSOCIATION.

Act June 3, 65. Sec. 5166.— Every association having bonds depossec! 25; 13 ited in the office of the Treasurer of the United States
stat. l., 106. shau ? once or oftener in each fiscal year, examine and
compare the bonds pledged by the association with the
books of the Comptroller of the Currency and with the
accounts o f the association, and, if they are found correct,
to execute to the Treasurer a certificate setting forth the
different kinds and the amounts thereof, and that the
same are in the possession and custody of the Treasurer
at the date o f the certificate. Such examination shall be
made at such time or times, during the ordinary business
hours, as the Treasurer and the Comptroller, respectively,
may select, and may be made by an officer or agent of
such association, duly appointed in writing for that pur­
pose; and his certificate before mentioned shall be of
like force and validity as if executed by the president or
cashier. A duplicate of such certificate, signed by the
Treasurer, shall be retained by the association.
GENERAL PROVISIONS RESPECTING BONDS.
1864 *

cuni 06 ® * ® 51®?*— The bonds transferred to and deposited
® ec*
sec! 26; i^ with the Treasurer of the United States, by any associastat. l., 107.
£or ^ security of its circulating notes, shall be held
.jle
exclusively for that purpose, until such notes are re­
deemed, except as provided in this Title. The Comp­
troller of the Currency shall give to any such association
powers of attorney 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 inopera­
tive whenever such association fails to redeem its circu­
lating notes. Whenever the market or cash value of any
bonds thus deposited with the Treasurer is reduced below
the amount of the circulation issued for the same, the
Comptroller may demand and receive the amount of such
depreciation in other United States bonds at cash value,
or in money, from the association, to be deposited with
the Treasurer as long as such depreciation continues.
And the Comptroller, upon the terms prescribed by the
Secretary of the Treasury, may permit an exchange to be




OBTAINING AND ISSUING CIRCULATING NOTES.

33

made of any of the bonds deposited with the Treasurer
by any association for other bonds of the United States
authorized to be received as security for circulating notes,
if he is of opinion that such an exchange can be made
without prejudice to the United States; and he may di­
rect the return of any bonds to the association which
transferred the same, in sums of not less than one thou­
sand dollars, upon the surrender to him and the cancella­
tion of a proportionate amount of such circulating notes:
Provided, That the remaining bonds which shall have
been transferred by the association 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 110 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.
WITHDRAWAL OF CIRCULATING NOTES ON DEPOSIT OF
LAWFUL MONEY AND WITHDRAWAL OF BONDS.
ACT JUNE 20, 1874.

67. Sec. 4.—That any association organized under this 18^ t June^20,
act, or any o f the acts of which this is an amendment,sec!
18
desiring to withdraw its circulating notes, in whole or in stat‘
124'
part, may, upon the deposit of lawful money with the
Treasurer of the United States in sums of not less than
nine thousand dollars, take up the bonds which said asso­
ciation has on deposit with the Treasurer for the security
of such circulating notes: which bonds shall be assigned
to the bank in the manner specified in the nineteenth sec­
tion of the national-bank act; and the outstanding notes
of said association, to an amount equal to the legal-tender
notes deposited, shall be redeemed at the Treasury of the
United States, and destroyed as now provided by law:
Provided, That the amount of the bonds on deposit for
circulation shall not be reduced below fifty thousand dol­
lars.
N ote .— Other sections of this act referred to under Revised
Statutes, section 5192. Section 19 of the national-bank act is in­
corporated in Revised Statutes, sections 5162-5104.

AMOUNT OF BONDS REQUIRED TO BE ON DEPOSIT; RE­
DUCTION OF AMOUNT 011 RETIREMENT IN FULL OF
CIRCULATING NOTES. ACT JULY 12, 1882.

68. Sec. 8.—That national banks now organized or here- lgAct J
culy2J2,
after organized, having a capital of one hundred and sec! 8; 22
fifty thousand dollars, or less, shall not be required to stat L 164*
m
keep on deposit or deposit with the Treasurer of the
United States United States bonds in excess of onefourth of their capital stock as security for their circu88020°— II------ 3




OBTAINING AND ISSUING CIRCULATING NOTES.

lating notes; but such banks shall keep on deposit or
deposit with the Treasurer of the United States the
amount o f bonds as herein required. And such o f those
banks having on deposit bonds in excess of that amount
are authorized to reduce their circulation by the de­
posit o f lawful money as provided by law; \provided,
that the amount of such circulating notes shall not in
any case exceed ninety per centum of the par value of
the bonds deposited as herein provided:] Provided fur­
ther, That the national banks which shall hereafter
make deposits o f lawful money for the retirement in full
o f their circulation shall at the time o f their deposit be
assessed for the cost o f transporting and redeeming their
notes then outstanding, a sum equal to the average cost of
the redemption o f national-bank notes during the pre­
ceding year, and shall thereupon pay such assessment.
And all national banks which have heretofore made or
shall hereafter make deposits of lawful money for the
reduction of their circulation shall be assessed and shall
pay an assessment in the manner specified in section three
o f the act approved June 20, 1874, for the cost o f trans­
porting and redeeming their notes redeemed from such
deposits subsequently to June 30, 1881.
N ote .— The limitation of the circulation not to exceed ninety
per cent of the bonds deposited is superseded by act March 14,
1900, which follows Revised Statutes 5171. Act June 20, 1S74,
section 3, mentioned in this section, follows Revised Statutes,
section 5192.

WITHDRAWAL OF CIRCULATING NOTES ON DEPOSIT OP
LAWFUL MONEY, AND WITHDRAWAL OF BONDS. NOT
MORE THAN NINE MILLIONS TO BE DEPOSITED DUR­
ING ANY CALENDAR MONTH. WITHDRAWAL OF AD­
DITIONAL CIRCULATION ON DEPOSIT OF LAWFUL
MONEY OR NATIONAL BANK NOTES. ACT MAY 30,
1908.

69.
Sec. 10.—That section nine of the Act approved
July twelfth, eighteen hundred and eighty-two, as
amended by the Act approved March fourth, nineteen
hundred and seven, be further amended to read as fol­
lows :
“ S ec . 9. That any national banking association desir­
ing to withdraw its circulating notes, secured by deposit
o f United States bonds in the manner provided in section
four o f the Act approved June twentieth, eighteen hun­
dred and seventy-four, is hereby authorized for that pur­
pose to deposit lawful money with the Treasurer o f the
United States and, with the consent o f the Comptroller
o f the Currency and the approval of the Secretary of
the Treasury, to withdraw a proportionate amount of
bonds held as security for its circulating notes in the
order of such deposits: Provided, That not more than
nine millions of dollars o f lawful money shall be so de­
posited during any calendar month for this purpose.




OBTAINING AND ISSUING CIRCULATING NOTES.

85

“ Any national banking association desiring to with­
draw any o f its circulating notes, secured by the deposit
of securities other than bonds of the United States, may
make such withdrawal at any time in like manner and
effect by the deposit of lawful money or national bank
notes with the Treasurer of the United States, and upon
such deposit a proportionate share of the securities so
deposited may be withdrawn: Provided, That the deposits
under this section to retire notes secured by the deposit of
securities other than bonds of the United States shall not
be covered into the Treasury, as required by section six
of an Act entitled ‘An Act directing the purchase of
silver bullion and the issue of Treasury notes thereon, and
for other purposes,’ approved July fourteenth, eighteen
hundred and ninety, but shall be retained in the Treasury
for the purpose of redeeming the notes of the bank mak­
ing such deposit.”
COMPTROLLER TO DETERMINE IF ASSOCIATION CAN
COMMENCE BUSINESS.

70. Sec. 5168.—Whenever a certificate is transmitted to Act Jun®
03*
the Comptroller of the Currency, as provided in t.hisSe6 1 7 ; li
c!
Title, and the association transmitting the same notifies stat- L-»104the Comptroller that at least fifty per centum o f its capi­
tal stock has been duly paid in, and that such association
has complied wi^h all the provisions of this Title required
to be complied with before an association shall be author­
ized to commence the business of banking, the Comp­
troller shall examine into the condition o f such associa­
tion, ascertain especially the amount of money paid in on
account o f its capital, the name and place of residence of
each of its directors, and the amount of the capital stock
of which each is the owner in good faith, and generally
whether such association has complied with all the pro­
visions o f this Title required to entitle it to engage in
the business o f banking; and shall cause to be made and
attested by the oaths o f a majority o f the directors, and
by the President or cashier of the association, a statement
o f all the facts necessary to enable the Comptroller to
determine whether the association is lawfully entitled to
commence the business o f banking.
CERTIFICATE OF AUTHORITY TO COMMENCE BANKING
TO BE ISSUED.

71. Sec. 5169.—If, upon a careful examination of the Act
facts so reported, and of any other facts which may come sec64,
s
to the knowledge of the Comptroller, whether by means
of a special commission appointed by him for the purpose
of inquiring into the condition of such association, or
otherwise, it appears that such association is lawfully en­
titled to commence the business of banking, the Comp­
troller shall give to such association a certificate, under
his hand and official seal, that such association has com­
plied with all the provisions required to be complied with




June 3,
12, V
s6;

L-»

36

OBTAINING AND ISSUING CIRCULATING NOTES.

before commencing the business of banking, and that such
association is authorized to commence such business. But
the Comptroller may withhold from an association his
certificate authorizing the commencement o f 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 CERTIFICATE.

a, 72. Sec. 5170.—The association shall cause the certifise6 i 8 ;1 i6 cate issued under the preceding section to be published
c.'
03
stat. l., 104. jn 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.
73. Sec. 5171.—
Act Juno

This section was repealed by act of July 12, 18S2, and the
repealing section was superseded by act of March 14, 1900, section
12, which follows.

DELIVERY OF CIRCULATING NOTES.
1900.

ACT OF MARCH 14,

iooo* M 4 i’
c
ar®
ec* —That upon the deposit with the Treasurer
sec! 1 2 ; 3 i of the United States, by any national banking associastat. l., 49.
0f any bonds of the United States in the manner
provided by existing law, such association shall be enti­
tled to receive from the Comptroller of the Currency cir­
culating notes in blank, registered and countersigned as
provided by law, equal in amount to the par value of the
bonds so deposited; and any national banking associa­
tions now having bonds on deposit for the security of
circulating notes, and upon which an amount of circulat­
ing notes has been issued less than the par value of the
bonds, shall be entitled, upon due application to the
Comptroller of the Currency, to receive additional circu­
lating notes in blank to an amount which will increase
the circulating notes held by such association to the par
value of the bonds deposited, such additional notes to be
held and treated in the same way as circulating notes of
national banking associations heretofore issued, and sub­
ject to all the provisions of law affecting such notes: P ro­
vided, That nothing herein contained shall be construed
to modify or repeal the provisions of section fifty-one
hundred and sixty-seven of the Revised Statutes of the
United States, authorizing the Comptroller of the Cur­
rency to require additional deposits of bonds or of lawful
money in case the market value of the bonds held to
secure the circulating notes shall fall below the par value
of the circulating notes outstanding for which such bonds
may be deposited as security: And provided further,
That the circulating notes furnished to national banking
associations under the provisions of this Act shall be
of the denominations prescribed by law, except that no
national banking association shall, after the passage of



OBTAINING AND iSStHttG CIRCULATING NOTES.

87

this Act, be entitled to receive from the Comptroller of
the Currency, or to issue or reissue or place in circula­
tion, more than one-third in amount of its circulating
notes of the denomination of five dollars: And provided
further, That the total amount of such notes issued to
any such association may equal at any time but shall not
exceed the amount at such time of its capital stock actu­
ally paid in: And provided further, That under regula­
tions to be prescribed by the Secretary of the Treasury
any national banking association may substitute the two
per centum bonds issued under the provisions of this Act
for any of the bonds deposited with the Treasurer to
secure circulation or to secure deposits of public money;
and so much of an Act entitled “ An Act to enable na­
tional banking associations to extend their corporate ex­
istence, and for other purposes,” approved July twelfth,
eighteen hundred and eightv-two, as prohibits any na­
tional bank which makes any deposit of lawful money in
order to withdraw its circulating notes from receiving
any increase of its circulation for the period of six months
from the time it made such deposit of lawful money for
the purpose aforesaid, is hereby repealed, and all other
•V or parts o f Acts inconsistent with the provisions of
ets
this section are hereby repealed.
PRINTING DENOMINATIONS AND FORM OF THE CIRCU­
LATING NOTES.

75. Sec. 5172 [as amended May 30, .1908].—In order t o lg^ t Jun® .
0|
furnish suitable notes for circulation, the Comptroller of s e c ! 2 2 ; _i3
the Currency shall, under the direction of the Secretary
of the Treasury, cause plates and dies to be engraved, inioos, sec. n. ’
the best manner to guard against counterfeiting and
fraudulent alterations, and shall have printed therefrom,
and numbered, such quantity of circulating notes, in
blank, of the denominations of five dollars, ten dollars,
twenty dollars, fifty dollars, one hundred dollars, five
hundred dollars, one thousand dollars, and ten thousand
dollars, as may be required to supply the associations en­
titled to receive- the same. Such notes shall state upon
their face that they are secured by United States bonds
or other securities, certified by the written or engraved
signatures of the Treasurer and Register and by the
imprint of the seal of the Treasury. They shall also
express upon their face the promise of the association
receiving the same to pay on demand, attested by the
signature of the president or vice-president and cashier.
The Comptroller of the Currency, acting under the direc­
tion o f the Secretary of the Treasury, shall as soon as
practicable cause to be prepared circulating notes in
blank, registered and countersigned, as provided by law,
to an amount equal to fifty per centum of the capital
stock of each national banking association; such notes to
be deposited in the Treasury or in the subtreasury of the
United States nearest the place of business of each asso-




38

OBTAINING AND ISSUING CIRCULATING NOTES.

ciation, and to be held for such association, subject to the
order o f the Comptroller o f the Currency, for their deliv­
ery as provided by law: Provided, That the Comptroller
of the Currency may issue national-bank notes of the
present form until plates can be prepared and circulating
notes issued as above provided: Provided, however, That
in no event shall bank notes o f the present form be issued
to any bank as additional circulation provided for by this
act.”
CHARTER NUMBER TO BE PRINTED ON NOTES.
JUNE 20,1874.

ACT

1874 * June343
c
®
ec* —That the Comptroller of the Currency
sec! 5; 1 8 shall, under such rules and regulations as the Secretary
stat. l ., 124.
Treasury may prescribe, cause the charter numbers
of the association to be printed upon all national-bank
notes which may be hereafter issued by him.
N ote .— Other sections of this act will be found under Revised
Statutes, 5192.

DISTINCTIVE PAPER FOR PRINTING NOTES.
8, 1875.

ACT MARCH

1875 1 c*ari 30
^7. ^eC — * * * That the national-bank notes
i
sec! i; i s shall be printed under the direction of the Secretary of
fundryL’c i3v i i the Treasury, and upon the distinctive or special paper
bm*
which has been, or may hereafter be, adopted by him for
printing United States notes.

PLATES AND DIES TO BE UNDER THE CONTROL OF THE
COMPTROLLER.
1864, cuni 06,
78. ® t 51^3.—The plates and special dies to be proeC
R l^ i’h1 ^ cured by the Comptroller of the Currency for the print,tat*
stat. l., in.
such circulating notes shall remain under his con­
trol and direction, and the expenses necessarily incurred
in executing the laws respecting the procuring of such
notes, and all other expenses o f the Bureau of the Cur­
rency, shall be paid out o f the proceeds o f the taxes or
duties assessed and collected on the circulation o f national
banking associations under this Title.
N ote .— See act June 20, 1S74, following Revised Statutes, 5192,
and act July 32, 1882, following Revised Statutes, 5136, requiring
banks to pay cost of their plates.

EXAMINATION OF PLATES AND DIES.

79. Sec. 5174 [as amended 1877].—The Comptroller of
Rec! 4; 1 7 the Currency shall cause to be examined, each year, the
StA
tctIFeb03f>7 P^a^ dies, bed pieces, and other material from which the
esj
1877, c. 69 ;“i9 national-bank circulation is printed, in whole or in part,
stat. l., 252. an(j gje
y^s 0fflce annually a correct list o f the same.
Such material as shall have been used in the printing of
the notes of associations which are in liquidation, or have
closed business, shall be destroyed, under such regulations
as shall be prescribed by the Comptroller of the Currency
and approved by the Secretary o f the Treasury. The ex­
penses o f any such examination or destruction shall be
paid out of any appropriation made by Congress for the
igAct M a r . j ,




OBTAINING AND ISSUING CIRCULATING NOTES.

39

special examination of national banks and bank-note
plates.
LIMIT TO ISSUE OF NOTES UNDER FITE DOLLARS.

80. Sec. 5175.—Not more than one-sixth part of the Act June s,
notes furnished to any association shall be of a less de-se6 22 j 1? 3
cl
nomination than five dollars. After specie payments arestat- L- 105*
resumed no association shall be furnished with notes of
a less denomination than five dollars.
N ote .— Specie payments were resumed January 1, 1879.
(See
act of March 14, 1900, section 12, following Revised Statutes, 5171,
limiting the issue of five-dollar notes.)

81. Sec. 5176.—
Repealed by act July 12, 18S2, which in turn was superseded by
act March 14, 1900. (See section 5171.)

82. Sec. 5177.—
Repealed by act January 14, 1875.

AGGREGATE AMOUNT OF CIRCULATING
LIMITED. ACT JANUARY 14, 1875.

NOTES

NOT

83. Sec. 3.—That section 5177 of the Revised Statutes Act Jan.
o f the United States, limiting the aggregate amount of i|75’statc‘
circulating notes of national banking associations, be and 29C
*
is hereby repealed; and each existing banking association
may increase its circulating notes in accordance with ex­
isting 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
limit; and the provisions of law for the withdrawal and
redistribution of national bank currency among the sev­
eral States and Territories are hereby repealed.

14,
L.j

84. Sec. 5178.—
Superseded by act January 14, 1875.

85. Sec. 5179.—
Superseded by act January 14, 1875.

86. Sec. 5180.—
Repealed by act of January 14, 1875.

87. Sec. 5181.—
Superseded by act January 14, 1875.

FOR WHAT DEMANDS NATIONAL-BANK NOTES MAY BE
RECEIYED.

88. Sec. 5182.—After any association receiving circu- Act June 3.
lating notes under this Title has caused its promise to pay s e c ! 2 3 ; *i 3
such notes on demand to be signed by the president or stat- L- 106*
vice-president and cashier thereof, in such manner as to
make them obligatory promissory notes, payable on de­
mand, at its place of business, such association may issue
and circulate the same as money. And the same shall be
received at par in all parts of the United States in pay­
ment 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



40

OBTAINING AND ISSUING CIRCULATING NOTES.

the United States to individuals, corporations, and asso­
ciations within the United States, except interest on the
public debt, and in redemption of the national currency.
ISSUE OF POST NOTES, ETC., PROHIBITED.
1864 *

89. ® ®183 [as amended 1875].—No national banking
ec*
stat *L^ioe1 3 associati°n shall issue post notes or any other notes to
Act Feb. 18, circulate as money than such as are authorized by the
stat.’ l.,8
320.18 provisions of this Title.
DESTROYING AND REPLACING WORN-OUT AND MUTI­
LATED NOTES.
1864,1 c.uni 06!
1
9® ^ec* 8184.—It shall be the duty of the Comptroller
*
itat' L *io13
Currency
receive worn-out or mutilated circua•
°* lating notes issued by any banking association, and also,
on due proof of the destruction of any such circulating
notes, to deliver in place thereof to the association other
blank circulating notes to an equal amount. Such wornout or mutilated notes, after a memorandum has been
entered in the proper books, in accordance with such reg­
ulations as may be established by the Comptroller, as well
as all circulating notes which shall have been paid or sur­
rendered to be canceled, [shall be burned to ashes] in
presence of four persons, one to be appointed by the Sec­
retary 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 Sec­
retary 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 w hose notes are thus
T
canceled.
N ote .— Act June 23, 1874, provides for maceration in place of
burning.

MACERATION OF NATIONAL BANK NOTES.
1874.

ACT JUNE 23,

Provision in
91. * * * For the maceration of national bank
ap?propriation notes * * * ; and that all such issues hereafter de1874 ; i8estlt! stroyed may be destroyed by maceration instead of burnJ
l.» 206.
*ing to ashes, as now provided by lawT; 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; that the pulp from such mac­
erated issue shall be disposed of only under the direction
o f the Secretary of the Treasury.

ORGANIZATION OF ASSOCIATIONS TO ISSUE GOLD NOTES.
1870 * *Uly282
c
sec! 3; id
StActL 2
jan5 i9
me, c. 1 9 ; 18
stat. l., 302.

®
ec*
( as amende l 1875].—Associations may be
<
organized in the manner prescribed by this Title for the
ParPose
issuing notes payable in gold; and upon the
deposit of any United States bonds bearing interest pay«
aj3je -n g0j^ w^Yi the Treasurer of the United States, in
the manner prescribed for other associations, it shall be




OBTAINING AND ISSUING CIRCULATING NOTES.

41

lawful for the Comptroller of the Currency to issue to
the association making the deposit circulating notes of
different denominations, but none of them of less than
five dollars, and not exceeding in amount eighty per
centum of the par value of the bonds deposited, which
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.
RESERVE REQUIREMENTS FOR GOLD BANKS.

93. Sec. 5186.—Every association organized under the Act July 12,
preceding section shall at all times keep on hand not lessjjp™’
.2 -{q
8
than twenty-five per centum of its outstanding circula-stat'. l., ’ 252,
tion, in gold or silver coin of the United States; and shall
receive at par in the payment of debts the gold notes of
every other such association which at the time of such
payment is redeeming its circulating notes in gold coin
of the United States, and shall be subject to all the pro­
visions of this Title: Provided, That, in applying the
same to associations organized for issuing gold notes, the
terms “ lawful money ” and “ lawful money of the United
States ” shall be construed to mean gold or silver coin of
the United States; and the circulation of such association
shall not be within the limitation of circulation mentioned
in this Title.
CONVERSION OF NATIONAL GOLD BANKS INTO CURRENCY
BANKS. ACT FEBRUARY 14, 1880.

94. That any national gold bank organized under the ]8gjt peb. 1
^
provisions of the laws of the United States, may, in the stat.’ l ., 66.
manner and subject to the provisions prescribed by sec­
tion fifty-one hundred and fifty-four of the Revised Stat­
utes of the United States, for the conversion of banks in­
corporated under the laws of any State, cease to be a gold
bank, and become such an association as is authorized by
section fifty-one hundred and thirty-three, for carrying
on the business of banking, and shall have the same pow­
ers and pri vileges, and shall be subject to the same duties,
responsibilities, and rules, in all respects, as arc by law
prescribed for such associations: Provided, That all cer­
tificates of organization which shall be issued under this
act shall bear the date of the original organization of each
bank respectively as a gold bank.
PENALTY FOR ISSUING CIRCULATING NOTES TO UNAU­
THORIZED ASSOCIATIONS.

95. Sec. 5187.—No officer acting under the provisions of 18g^t c
.unioi!
this Title shall countersign or deliver to any association,sec! 2 7 ; 13
■
,1
l~
•
1
1 •
1
Stat. L., 107.
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




42

OBTAINING AND ISSUING CIRCULATING NOTES.

amount so countersigned and delivered, and imprisoned
not less than one year and not more than fifteen years.
PENALTY FOR IMITATING BANK CIRCULATION.
SAME FOR ADVERTISING PURPOSES.

USE OF

igAci: Feb>25, 96. Sec. 5188.—It shall not be lawful to design, engrave,
sec! 2 ; 1 4 print, or in any manner make or execute, or to utter, issue,
stat. l., 383. distribute, circulate, or use, any business or professional
card, noticc, placard, circular, handbill, or advertisement,
in the likeness or similitude of any circulating note or
other obligation or security o f 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 o f 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 o f one hundred dollars, recoverable one-half to
the use o f the informer.
PENALTY FOR MUTILATING CIRCULATION.
1864 *

ctm
ioo
* ^ec*
—Every person who mutilates, cuts, deRec! 58; 13 faces, disfigures, or perforates with holes, or unites or
stat. l., i i 7. cements together, or does any other thing to any bank
bill, draft, note, or other evidence o f 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 o f debt unfit to be reissued
by said association, shall be liable to a penalty o f fifty
dollars, recoverable by the association.
A

A u t h o r i z i n g N a t i o n a l C u r r e n c y As­
I s s u e o r A d d it io n a l N a t i o n a l - B a n k
C ir c u l a t io n , a n d C r e a t in g a N a t io n a l M o n e t a r y
C o m m is s io n .

ct

M

ay

30,1908,

s o c ia t io n s , t h e

FORMATION OF NATIONAL CURRENCY ASSOCIATIONS—
WHAT BANKS ELIGIBLE— MANNER OF FORMING—
ASSOCIATION TO BE BODY CORPORATE AND EXER­
CISE POWERS AS SUCH— BUT ONE ASSOCIATION IN
ANY CITY— MEMBERS OF ASSOCIATION TO BE TAKEN
AS NEARLY AS CONVENIENT FROM STATE, PART OF
STATE, OR CONTIGUOUS PARTS OF ONE OR MORE
STATES— OFFICERS, HOW SELECTED— POWERS OF
OFFICERS AND EXECUTIVE COMMITTEE— BY-LAWS
TO BE APPROVED BY THE SECRETARY OF THE
TREASURY.
1908 1sec yi80,

98. Be it enacted by the Senate and House of Repre­
sentatives of the United States of America in Congress
assembled, That national banking associations, each hav­
ing an unimpaired capital and a surplus o f not less than
twenty per centum, not less than ten in number, having




ADDITIONAL CIRCULATION ACT M A Y , 1908.

an aggregate capital and surplus of at least five millions
o f dollars, may form voluntary associations to be desig­
nated as national currency associations. The banks
uniting to form such association shall, by their presi­
dents or vice-presidents, acting under authority from the
board of directors, make and file with the Secretary
of the Treasury a certificate setting for the names of the
banks composing the association, the principal place of
business o f the association, and the name of the associa­
tion, which name shall be subject to the approval of the
Secreary o f the Treasury. Upon the filing of such cer­
tificate the associated banks therein named shall become
a body corporate, and by the name so designated and
approved may sue and be sued and exercise the powers
of a body corporate for the purposes hereinafter men­
tioned : Provided, That not more than one such national
currency association shall be formed in any city: Pro­
vided further, That the several members of such national
currency association shall be taken, as nearly as conven­
iently may be, from a territory composed of a State or
part of a State, or contiguous parts of one or more States:
And provided further, That any national bank in such
city or territory, having the qualifications herein pre­
scribed for membership in such national currency asso­
ciation, shall, upon its application to and upon the ap­
proval of the Secretary of the Treasury, be admitted to
membership in a national currency association for that
city or territory, and upon such admission shall be
deemed and held a part of the body corporate, and as such
entitled to all the rights and privileges and subject to all
the liabilities of an original member: And provided far­
ther, That each national currency association shall be
composed exclusively of banks not members of any other
national currency association.
The dissolution, voluntary or otherwise, of any bank in
such association shall not affect the corporate existence
o f the association unless there shall then remain less than
the minimum number of ten banks: Provided however
That the reduction of the number of said banks below the
minimum of ten shall not affect the existence of the cor­
poration with respect to the assertion of all rights in
favor o f or against such association. The affairs of the
association shall be managed by a board consisting of one
representative from each bank. By-laws for the govern­
ment o f the association shall be made by the board, sub­
ject to the approval of the Secretary of the Treasury.
A president, vice-president, secretary, treasurer, and an
executive committee of not less than five members, shall
be elected by the board. The powers of such board, ex­
cept in the election of officers and making of by-laws,
may be exercised through its executive committee.




,

,

ADDITIONAL CIRCULATION ACT M A Y, 1908.

CONDITIONS UNDER WHICH BANKS BELONGING TO NA­
TIONAL CURRENCY ASSOCIATIONS MAY TAKE OUT
ADDITIONAL CIRCULATION— AMOUNT LIMITED TO
SEVENTY-FIVE PER CENT OF THE CASH YALUE
OF THE SECURITIES AND COMMERCIAL PAPER
DEPOSITED— ISSUE OF ADDITIONAL CIRCULATION
ON DEPOSIT OF STATE, CITY, TOWN, COUNTY, OR
MUNICIPAL BONDS AUTHORIZED TO EXTENT OF
NINETY PER CENT OF THEIR MARKET YALUE— THE
BANKS AND ASSETS OF ALL BANKS MEMBERS OF
SAID ASSOCIATION JOINTLY AND SEVERALLY
LIABLE TO THE UNITED STATES FOR THE RE­
DEMPTION OF SUCH ADDITIONAL CIRCULATION—
LIEN OF UNITED STATES UNDER SECTION 5230, RE­
VISED STATUTES, EXTENDED TO COYER ASSETS OF
ALL BANKS BELONGING TO THE ASSOCIATION— RE­
QUIREMENT OF ADDITIONAL SECURITIES— WHEN
ASSOCIATION MAY SELL SECURITIES DEPOSITED
WITH IT.

99.
The national currency association herein provided
for shall have and exercise any and all powers necessary
to carry out the purposes of this section, namely, to ren­
der available, under the direction and control of the
Secretary of the Treasury, as a basis for additional circu­
lation any securities, including commercial paper, held by
a national banking association. For the purpose of ob­
taining such additional circulation, any bank belonging
to any national currency association, having circulating
notes outstanding secured by the deposit of bonds of the
United States to an amount not less than fort}' per
centum of its capital stock, and which has its capital
unimpaired and a surplus of not less than twenty per
centum, may deposit with and transfer to the association,
in trust for the United States, for the purpose herein­
after provided, such of the securities above mentioned as
may be satisfactory to the board of the association. The
officers of the association may thereupon, in behalf of
such bank make application to the Comptroller of the
Currency for an issue of additional circulating notes to
an amount not exceeding seventy-live per centum o f the
cash value of the securities or commercial paper so de­
posited. The Comptroller of the Currency shall imme­
diately transmit such application to the Secretary of the
Treasury with such recommendation as he thinks proper,
and if, in the judgment of the Secretary of the Treas­
ury, business conditions in the locality demand addi­
tional circulation, and if he be satisfied with the character
and value of the securities proposed and that a lien in
favor of the United States on the securities so deposited
and on the assets of the banks composing the association
will be amply sufficient for the protectioi} of the United
States, he may direct an issue of additional circulating
notes to the association, on behalf of such bank, to an




ADDITIONAL CIRCULATION ACT M A Y , 1908.

amount in his discretion, not, however, exceeding sev­
enty-five per centum of the cash value of the securities
so deposited: Provided, That upon the deposit of any of
the State, city, town, county, or other municipal bonds,
of a character described in section three of this act, cir­
culating notes may be issued to the extent of not exceed­
ing ninety per centum of the market value of such bonds
so deposited: And provided, further, That no national
banking association shall be authorized in any event to
issue circulating notes based on commercial paper in ex­
cess of thirty per centum of its unimpaired capital and
surplus. The term commercial paper ” shall be held to
include only notes representing actual commercial trans­
actions, which when accepted by the association shall bear
the names of at least two responsible parties and have not
exceeding four months to run.
The banks and the assets of all banks belonging to the
association shall be jointly and severally liable to the
United States for the redemption of such additional cir­
culation; and to secure such liability the lien created by
section fifty-two hundred and thirty of the Revised Stat­
utes shall extend to and cover the assets of all banks be­
longing to the association, and to the securities deposited
by the banks with the association pursuant to the provi­
sions of this act; but as between the several banks com­
posing such association each bank shall be liable only in
the proportion that its capital and surplus bears to the
aggregate capital and surplus of all such banks. The
association may, at any time, require of any of its con­
stituent banks a deposit of additional securities or com­
mercial paper, or an exchange of the securities already on
deposit, to secure such additional circulation; and in case
of the failure of such bank to make such deposit or ex­
change the association may, after ten days’ notice to the
bank, sell the securities and paper already in its hands
at public sale, and deposit the proceeds with the Treas­
urer of the United States as a fund for the redemption
of such additional circulation. I f such fund be insuffi­
cient for that purpose the association may recover from
the bank the amount of the deficiency by suit in the cir­
cuit court of the United States, and shall have the benefit
of the lien hereinbefore provided for in favor of the
United States upon the assets of such bank. The association or the Secretary of the Treasury may permit or re­
quire the withdrawal of any such securities or commer­
cial paper and the substitution of other securities or com­
mercial paper of equal value therefor.
REDEMPTION FUNI) BELOW REQUIREMENT.
TREASURER OF UNITED STATES.

DUTY OF

100.
Sec. 2.- -That whenever any bank belonging to a
national currency association shall fail to preserve or
make good its redemption fund in the Treasury of the
United States, required by section three of the Act of




ADDITIONAL CIRCULATION ACT M A Y , 1908.

June twentieth, eighteen hundred and seventy-four, chap­
ter three hundred and forty-three, and the provisions of
this Act, the Treasurer o f the United States shall notify
such national currency association to make good such re­
demption fund, and upon the failure o f such national
currency association to make good such fund, the Treas­
urer of the United States may, in his discretion, apply
so much o f the redemption fund belonging to the other
banks composing such national currency association as
may be necessary for that purpose; and such national
currency association may, after five days’ notice to such
bank, proceed to sell at public sale the securities deposited
by such bank with the association pursuant to the pro­
visions of section one of this Act, and deposit the pro­
ceeds with the Treasurer of the United States as a fund
for the redemption of the additional circulation taken
out by such bank under this Act.
WHAT NATIONAL BANKS MAY APPLY FOR AUTHORITY TO
ISSUE ADDITIONAL CIRCULATION ON BONDS OTHER
THAN UNITED STATES BONDS. WHAT BONDS WILL
BE ACCEPTED FOR SUCH ADDITIONAL CIRCULATION.

101.
Sec. 3.—That any national banking association
which has circulating notes outstanding, secured by the
deposit of United States bonds to an amount of not less
than forty per centum of its capital stock, and which
has a surplus of not less than twenty per centum, may
make application to the Comptroller o f the Currency for
authority to issue additional circulating notes to be se­
cured by the deposit of bonds other than bonds of the
United States. The Comptroller of the Currency shall
transmit immediately the application, with his recom­
mendation, to the Secretary o f the Treasury, who shall,
if in his judgment business conditions in the locality
demand additional circulation, approve the same, and
shall determine the time of issue and fix the amount,
within the limitations herein imposed, of the additional
circulating notes to be issued. Whenever after receiv­
ing notice of such approval any such association shall
deposit with the Treasurer or any assistant treasurer of
the United States such of the bonds described in this
section as shall be approved in character and amount by
the Treasurer of the United States and the Secretary
of the Treasury, it shall be entitled to receive, upon the
order of the Comptroller o f the Currency, circulating
notes in blank, registered and countersigned as provided
by law, not exceeding in amount ninety per centum of
the market value, but not in excess of the par value of
any bonds so deposited, such market value to be ascer­
tained and determined under the direction o f the Secre­
tary of the Treasury.
The Treasurer of the United States, with the approval
o f the Secretary o f the Treasury, shall accept as security




ADDITIONAL CIRCULATION ACT M A Y, 1908.

for the additional circulating notes provided for in this
section, bonds or other interest-bearing obligations of
any State of the United States, or any legally author­
ized bonds issued by any city, town, county, or other
legally constituted municipality or district in the United
States which has been in existence for a period of ten
years, and which for a period of ten years previous to
such deposit has not defaulted in the payment of any
part of either principal or interest of any funded debt
authorized to be contracted by it, and whose net funded
indebtedness does not exceed ten per centum of the valu­
ation of its taxable property, to be ascertained by the last
preceding valuation of property for the assessment of
taxes. The Treasurer of the United States, with the ap­
proval o f the Secretary of the Treasury, shall accept, for
the purposes o f this section, securities herein enumerated
in such proportions as he may from time to time deter­
mine, and he may with such approval at any time require
the deposit o f additional securities, or require any asso­
ciation to change the character of the securities already
on deposit.
LEGAL TITLE OF BONDS DEPOSITED TO SECURE ADDI­
TIONAL CIRCULATION. ASSIGNMENT OF BONDS BY
TREASURER TO BE COUNTERSIGNED BY THE COMP­
TROLLER OF THE CURRENCY.

102; Sec. 4 — That the legal title of all bonds, whether
coupon or registered, deposited to secure circulating notes
issued in accordance with the terms o f section three of
this Act shall be transferred to the Treasurer of the
United States in trust for the association depositing
them, under regulations to be prescribed by the Secre­
tary o f the Treasury. A receipt shall be given to the
association by the Treasurer or any assistant treasurer of
the United States, stating that such 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 assignment or transfer of any such
bond by the Treasurer shall be deemed valid unless coun­
tersigned by the Comptroller of the Currency. The pro­
visions of sections fifty-one hundred and sixty-three,
fifty-one hundred and sixty-four, fifty-one hundred and
sixty-five, fifty-one hundred and sixty-six, and fifty-one
hundred and sixty-seven and sections fifty-two hundred
and twenty-four to fifty-two hundred and thirty-four, in­
clusive, o f the Revised Statutes respecting United States
bonds deposited to secure circulating notes shall, except
as herein modified, be applicable to all bonds deposited
under the terms of section three of this Act.




47

48

ADDITIONAL CIRCULATION ACT M A Y , 1908.

ADDITIONAL CIRCULATION, HOW TREATED. LIMIT TO
AMOUNT OF CIRCULATION ISSUED TO EACH BANK.
LIMIT TO TOTAL AMOUNT OUTSTANDING UNDER
THIS ACT.

M
ayr30,
, see. o.

Act:

103. Sec. 5.—That the additional circulating notes isunder this Act shall be used, held, and treated in the
same way as circulating notes of national banking asso­
ciations heretofore issued and secured by a deposit of
United States bonds, and shall be subject to all the pro­
visions of law affecting such notes except as herein ex­
pressly modified: Provided, That the total amount o f
circulating notes outstanding of any national banking
association, including notes secured by United States
bonds as now provided by law, and notes secured other­
wise than by deposit o f such bonds, shall not at any time
exceed the amount of its unimpaired capital and surplus:
And provided further, That there shall not be outstand­
ing at any time circulating notes issued under the pro­
visions of this Act to an amount o f more than five
hundred millions of dollars.
AMOUNT OF REDEMPTION FUND.

1908 1secay630,

®
ec* —That whenever and so long as any national
banking association has outstanding any o f the addi­
tional circulating notes authorized to be issued by the
provisions o f this Act it shall keep on deposit in the
Treasury o f the United States, in addition to the redemp­
tion fund required by section three o f the Act o f June
twentieth, eighteen hundred and seventy-four, an addi­
tional sum equal to five per centum of such additional
circulation at any time outstanding, such additional five
per centum to be treated, held, and used in all respects in
the same manner as the original redemption fund pro­
vided for by said section three of the Act of June twen­
tieth, eighteen hundred and seventy-four.
EQUITABLE DISTRIBUTION OF NOTES.

loos*sec* 7 3°’
^ec*
or(^
er
distribution of notes to
’ sec‘ ‘ be issued under the provisions of this Act shall be made
as equitable as practicable between the various sections
of the country, the Secretary of the Treasury shall not
approve applications from associations in any State in
excess of the amount to which such State would be en­
titled of the additional notes herein authorized on the
basis of the proportion which the unimpaired capital
and surplus of the national banking associations in such
State bears to the total amount of unimpaired capital
and surplus o f the national banking associations o f the
United States: Provided, however, That in case the ap­
plications from associations in any State shall not be
equal to the amount which the associations o f such State
would be entitled to under this method o f distribution,
the Secretary o f the Treasury may, in his discretion, to
meet an emergency, assign the amount not thus applied




A D D IT IO N A L C IR C U L A T IO N

A C T M A Y , 1908.

49

for to any applying association or associations in States
in the same section of the country.
SECRETARY OF THE TREASURY TO FURNISH INFORMA­
TION AS TO THE VALUE AND CHARACTER OF SECU­
RITIES.

106. Sec. 8.—That it shall be the duty of the Secretary Act May 30,
1908, sec. 8.
o f the Treasury to obtain information with reference to
the value and character of the securities authorized to be
accepted under the provisions of this Act, and he shall
from time to time furnish information to national bank­
ing associations as to such securities as would be accept­
able under the provisions of this Act.
107. Sec. 9.—
Amends section 5214, Revised Statutes.

108. Sec. 10.—
Amends section 9 of act approved July 12, 1882, as amended by
act approved March 4, 1907, inserted after section 5167, page 34,
ante.

109. Sec. 11.—
Amends section 5172, Revised Statutes.

CIRCULATING NOTES TO BE REDEEMED IN LAWFUL
MONEY OF THE UNITED STATES.
Act May 30,
110. Sec. 12.—That circulating notes of national bank­ 1908, sec. 12.
ing associations, when presented to the Treasury for
redemption, as provided in section three of the Act ap­
proved June twentieth, eighteen hundred and seventyfour, shall be redeemed in lawful money of the United
States.

ALL ACTS OF THE COMPTROLLER OF THE CURRENCY
AND TREASURER OF THE UNITED STATES UNDER
THIS ACT TO BE APPROVED BY THE SECRETARY OF
THE TREASURY.
Act May 30,
111. Sec. 13.—That all acts and orders of the Comp­ 1908, sec. 13.
troller o f the Currency and the Treasurer of the United
States authorized by this Act shall have the approval
of the Secretary of the Treasury who shall have power,
also, to make any such rules and regulations and exercise
such control over the organization and management of
national currency associations as may be necessary to
carry out the purposes of this Act.
112. Sec. 14.—
Is amendatory of section 5191, Revised Statutes, and is in­
serted on page 53, post.

113. Sec. 15.—
Relates to deposits of public money and interest thereon and
is inserted after section 5153, Revised Statutes.

EXPENSES OF ACT.
Act May 30,
114. Sec. 16.—That a sum sufficient to carry out the 1908, sec. 16.
purposes of the preceding sections of this Act is hereby
appropriated out of any money in the Treasury not other­
wise appropriated.
88020°— 11-------4




50

ADDITIONAL CIRCULATION ACT M A Y , 1908.

APPOINTMENT OF MONETARY COMMISSION.

A M
ct; ay

30

1 1 5 . gee. 17.—That a Commission is hereby created, to
be called the “ National Monetary Commission,” to be
composed of nine members of the Senate, to be appointed
by the Presiding Officer thereof, and nine members of
the House of Representatives, to be appointed by the
Speaker thereof; and any vacancy on the Commission
shall be filled in the same manner as the original appoint­
ment.
POWERS OF COMMISSION.
CONGRESS.

loo^sec^s30,

COMMISSION TO REPORT TO

® 1®
ec* *—That it shall be the duty of this Commis­
sion to inquire into and report to Congress at the earliest
date practicable, what changes are necessary or desirable
in the monetary system of the United States or in the
laws relating to banking and currency, and for this pur­
pose they are authorized to sit during the sessions or
recess of Congress, at such times and places as they may
deem desirable, to send for persons and papers, to ad­
minister oaths, to summons and compel the attendance of
witnesses, and to employ a disbursing officer and such sec­
retaries, experts, stenographers, messengers, and other as­
sistants as shall be necessary to carry out the purposes
for which said Commission was created. The Commis­
sion shall have the power, through subcommittee or other­
wise, to examine witnesses and to make such investiga­
tions and examinations, in this or other countries, of the
subjects committed to their charge as they shall deem
necessary.
EXPENSES OF COMMISSION.

1908 4sec^j?0,

^ec# 1®
*—That a sum sufficient to carry out the
purposes o f sections seventeen and eighteen of this Act,
and to pay the necessary expenses o f the Commission and
its members, is hereby appropriated, out of any money in
the Treasury not otherwise appropriated. Said appro­
priation shall be immediately available and shall be paid
out on the audit and order of the chairman or acting
chairman of said Commission, which audit and order
shall be conclusive and binding upon all Departments as
to the correctness of the accounts of such Commission.
WHEN ACT EXPIRES BY LIMITATION.

i^Act^M ()3
ay of

u s . Sec. 20.—That this Act shall expire by limitation
on the thirtieth day of June, nineteen hundred and four­
teen.




CHAPTEK IV.
REGU LATION OF T H E B A N K IN G BUSINESS.

119. 5190. Place of business.
120. 5191. Reserve cities and reserve
requirements.
121. 5192. W hat may be counted as re­
serve.
122. Act June 30, 1874. Lawful money
reserve to be determined by
deposits.
123. Act May 30, 1908.
No reserve
need be held against deposits
of public money.
124. Act June 30, 1874. Provisions for
redeeming circulation. Five
per cent redemption fund.
125. Act March 3, 1875. Clerical force
for redemption of circulating
notes.
126. Act March 3, 1887, as amended
March 3, 1903.
Addtional
reserve cities.
127. Act July 14, 1890.
Disposition
of redemption account.
128. Act July 28, 1892. Redemption of
lost or stolen notes and of
notes not properly signed.
129. 5193. Repealed by act March 14,
1900.
130. 5194. Superseded by repeal of
section 5193.
131. 5195. Place for redemption of cir­
culating notes to be desig­
nated.
132. Act June 20,1874. National banks
not required or permitted to
redeem their circulating notes
elsewhere than at their own
counters or at the Treasury
of the United States.
Additional
133. Act March 3, 1887.
central reserve cities.
134. 5196. National banks to take notes
of other national banks at
par.
135. 5197. Limitation upon rate of in­
terest which may be taken.
136. 5198. Penalty for taking unlawful
interest. Jurisdiction of suits
by or against national banks.
137. 5199. Dividends.
of
liabilities
138. 5200. Limitation
which may be incurred by
any one person, company, etc.




139. 5201. Associations must not loan
on or purchase their own
stock.
140. 5202. Restriction on bank’s in­
debtedness.
141. 5203. Restriction upon use of cir­
culating notes.
142. 5204. Prohibition
upon
with­
drawal of capital. Unearned
dividends prohibited.
143. 5205. Assessment for failure to
pay up capital stock or for
impairment of capital.
144. 5206. Prohibition against uncur­
rent notes.
145. 5207. United States notes not to
be held as collateral.
146. Act July 12, 1882. Issue of gold
certificates.
147. 5208. Penalty for falsely certify­
ing checks.
148. Act July 12, 18S2.
Punishment
for falsely certifying checks.
149. 5209. Penalty for embezzlement,
abstraction, willful misappli­
cation, false entries, etc.
150. Act January 26, 1907. National
banks not permitted to make
contributions in connection
with election to political of­
fice.
151. 5210. List of shareholders.
152. 5211. Reports to Comptroller of
the Currency.
153. Act February 26, 1881.
Verifi­
cation of reports.
154. 5212. Report of dividends.
155. 5213. Penalty for failure to make
reports.
156. 5214. Taxes payable to the United
States.
157. 5215. Half-yearly return of circu­
lation [deposit8 and capital
stock],
15S. 5216. Penalty for failure to make
return.
159. 5217. Enforcing tax on circula­
tion.
160. 5218. Refunding excess tax.
161. Act March 1, 1879. No tax to be
paid by insolvent banks.
162. 5219. State taxation.
51

52

REGULATION OF TH E BAN KIN G BUSINESS.

PLACE OF BUSINESS.
1864,
t

c 06! H®* ®ec* 5190.—The usual business of each national
.uni
s t a t * 10/ ^banking association shall be transacted at an office or
a* ”
* banking house located in the place specified in its organ­
ization certificate.
N ote .— See act May 1, 1886, following Revised Statutes, 5136, in
reference to change in place of business.

RESERVE CITIES AND RESERVE REQUIREMENTS.

1864* cU ioe
n
® 5191.—Every national banking association in
ec*
sec! 3i; 1 3 either o f the following cities: Albany, Baltimore, BosStActL'M i,
a?8
Cincinnati, Chicago, Cleveland, Detroit, Louisville,
stat’ l 2f°; Milwaukee? New Orleans, New York, Philadelphia, Pittsa‘ ”
burg, St. Louis, San Francisco, and Washington, shall at
all times have on hand, in lawful money o f the United
States, an amount equal to at least twenty-five per centum
of the aggregate 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 aggre­
gate amount [of its notes in circulation and'] of its de­
posits. Whenever the lawful money of any association in
any of the cities named shall be below the amount of
twenty-five per centum of its [circulation and\ deposits,
and whenever the lawful money of any other association
shall be below fifteen per centum of its [ciradation 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 dividends o f its profits until the re­
quired proportion, between the aggregate amount of its
[outstanding notes of circulation and\ deposits and its
lawful money o f 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 required to be kept on hand, to make
good such reserve; and if such association shall fail for
thirty days thereafter so to make good its reserve of law­
ful money, the Comptroller may, with the concurrence of
the Secretary o f the Treasury, appoint a receiver to wind
up the business of the association, as provided in section
fifty-two hundred and thirty-four.

]

N o t e . — This section is amended by the act of June 20, 1874, sec­
tion 2, which provides that no reserve need be held against circu­
lation. Said act follows section 5192. Act of March 3, 11)03,
amending act of March 3, 1887, providing for additional reserve
cities, follows section 5192. Provisions relating to redemption of
circulating notes, acts June 20, 1874, March 3, 1875, and July 14,
1890, follow Revised Statutes, 5192. Provisions relating to re­
demption of old notes of banks extending their corporate existence,
act July 12, 1882, follows Revised Statutes, 5136. Leavenworth,
Kansas, was included as a reserve city in the original act, but was
struck out March 1, 1872. Words “ lawful money ” construed by
Attorney-General as including all that is legal tender. Opin. Atty.
Gen’l 1 7 : 123.




REGULATION OF TH E BANKING BUSINESS.

53

WHAT MAY BE COUNTED AS RESERVE.

121. Sec. 5192.—Three-fifths of the reserve of fifteen 18^ cU 6
nio
per centum required by the preceding section to be kept,sec.’ 3i; 1 3
may consist of balances due to an association, available StActLM
ar.8’i,
for the redemption of its circulating notes, from associac. 2 2 ; 17
tions approved by the Comptroller of the Currency, or-"
ganized 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, Chi­
cago, Cincinnati, Cleveland, Detroit, Louisville, Milwau­
kee, New Orleans, New York, Philadelphia, Pittsburg,
Richmond, Saint Louis, San Francisco, and Washington.
Clearing-house certificates, representing specie or lawful
money specially deposited for the purpose, of any clear­
ing-house association, shall also be deemed to be lawful
money in the possession of any association belonging to
such clearing-house, holding and owning such certificate,
within the preceding section.
N ote .— Leavenworth, Kansas, was included as a reserve city in
the original act, but was struck out March 1, 1872. Charleston
and Richmond not being included in the list of reserve cities
enumerated in section 5101, the banks of which are required to
hold a reserve of twenty-live per centum of their net deposits, the
Comptroller of the Currency has never approved any banks in
said cities as reserve agents.

LAWFUL MONEY RESERVE TO BE DETERMINED BY DE­
POSITS. ACT JUNE 20, 1874.

122. Sec. 2.—That section thirty-one of “ the national- lg£ct Ju e343’
cn
bank act v be so amended that the several associations sec! 2 ; 1 8
therein provided for shall not hereafter be required to stat L” 123,
keep on hand any amount of money whatever, by reason
o f the amount of their respective circulations; but the
moneys required by said section to be kept at all times
on hand shall be determined by the amount of deposits in
all respects, as provided for in the said section.
N o t e . — Section 31 of “ the national-bank a c t ” is incorporated in
sections HUH, 5102, Revised Statutes. Section 1 of act June 20,
1874, precedes section 51153, Revised Statutes.

NO RESERVE NEED BE HELD AGAINST DEPOSITS OF
PUBLIC MONEY. ACT MAY 30, 1908.

123. Sec. 14.—That the provisions of section fifty-one ^ogt^ay 30,
hundred and ninety-one of the Revised Statutes, with
reference to the reserves of national banking associations.
shall not apply to deposits of public moneys by the
United States in designated depositaries.
PROVISIONS FOR REDEEMING CIRCULATION. FIVE PER
CENT REDEMPTION FUND. ACT JUNE 20, 1874.

124. Sec. 3.—That every association organized, or to be
Jline343;
c
organized, under the provisions of the said act, and of these <!
c
several acts amendatory thereof, shall at all times keep ta '
and have on deposit in the Treasury of the United States,
in lawful money of the United States, a sum equal to five
per centum o f its circulation, to be held and used for the




REGULATION OF TH E BAN KIN G BUSINESS.

redemption of such circulation; which sum shall be
counted as a part o f its lawful reserve, as provided in
section two o f this act; and when the circulating notes of
any such associations, assorted or unassorted, shall be pre­
sented for redemption, in sums o f one thousand dollars, or
any multiple thereof, to the Treasurer o f the United
States, the same shall be redeemed in [ United States
notes]. A ll notes so redeemed shall be charged by the
Treasurer of the United States to the respective associa­
tions issuing the same, and he shall notify them severally,
on the first day of each month, or oftener, at his discre­
tion, o f the amount of such redemptions; and whenever
such redemptions for any association shall amount to the
sum of five hundred dollars, such association so notified
shall forthwith deposit with the Treasurer of the United
States a sum in United States notes equal to the amount
o f its circulating notes so redeemed. And all notes of
national banks, worn, defaced, mutilated, or otherwise
unfit for circulation, shall, when received by any assistant
treasurer, or at any designated depository of the United
States, be forwarded to the Treasurer of the United States
for redemption as provided herein. And when such re­
demptions have been so reimbursed, the circulating notes
so redeemed shall be forwarded to the respective associa­
tions by which they were issued; but if any of such notes
are worn, mutilated, defaced, or rendered otherwise unfit
for use, they shall be forwarded to the Comptroller of the
Currency and destroyed and replaced as now provided by
law : Provided, That each o f said associations shall reim­
burse to the Treasury the charges for transportation and
the costs for assorting such notes; and the associations
hereafter organized shall also severally reimburse to the
Treasury the cost o f engraving such plates as shall be or­
dered by each association respectively; and the amount
assessed upon each association shall be in proportion to
the circulation redeemed, and be charged to the fund on
deposit with the Treasurer: And provided further, That
so much o f section thirty-two of said national-bank act
requiring or permitting the redemption of its circulating
notes elsewhere than at its own counter, except as pro­
vided for in this section, is hereby repealed.
N ote .— Section 12 of act of May 30, 1908, provides that notes of
national banking associations shall be redeemed in lawful money
of the United States. (See said section 12, page 49, ante.)
Section 32 of national-bank act is section 5195, Revised Statutes.

Other sections of act of June 20, 1874•
Section 1 precedes Revised Statutes, 5133.
Section 2. See paragraph 122, page 53, ante.
Section 4 follows Revised Statutes, 5167.
Section 5 follows Revised Statutes, 5172.
Section 6 relates to United States notes only.
Sections 7 -9 superseded by act of January 14, 1875, which fol­
lows Revised Statutes, 5177.




REGULATION OP THE BANKING BUSINESS.

55

CLERICAL FORCE FOR REDEMPTION OF CIRCULATING
NOTES. ACT MARCH 3, 1875.

125. That to carry into effect the provisions of section Act Mar. 3,
three of the act entitled “ An act fixing the amount of l8 399^ part
,7°
United States notes, providing for a redistribution ° f ofvii appropria7
the national-bank currency, and for other purposes,” tion act.
approved June twentieth, eighteen hundred and seventyfour, the Secretary of the Treasury is authorized to ap­
point the following force, to be employed under his direc­
tion, namely: In the Ofliee of the Treasurer: * * *
In the Office of the Comptroller of the Currency * * *
And at the end of each month, the Secretary of the Treas­
ury shall reimburse the Treasury to the full amount paid
out under the provisions of this section by transfer of
said amount from the deposit of the national banking as­
sociation with the Treasury of the United States; and at
the end of each fiscal year he shall transfer from said
deposit to the Treasury of the United States such sum
as may have been actually expended under his direction
for stationery, rent, fuel, light, and other necessary inci­
dental expenses which have been incurred in carrying
into effect the provisions of the said section of the abovenamed act.
ADDITIONAL RESERVE CITIES. ACT OF MARCH 3, 1903,
AMENDING ACT OF MARCH 3, 1887.

126. Sec. 1.—That whenever three-fourths in numberifAct M 3,
ar.
o f the national banks located in any city of the United 24 stat?’ l.I
States having a population of twenty-five thousand peo-n 9-ct M
5v
ar
pie shall make application to the Comptroller of the Cur- loos, sec. 1 ;
rencv, in writing, asking that the name of the city in 1223. a ’
which such banks are located shall be added to the cities
named in sections fifty-one hundred and ninety-one and
fifty-one hundred and ninety-two of the llevised Statutes,
the Comptroller shall have authority to grant such re­
quest, and every bank located in such city shall at all
times thereafter have on hand, in lawful money of the
United states, an amount equal to at least twenty-five
per centum of its deposits, as provided in sections fiftyone hundred and ninety-one and fifty-one hundred and
ninety-five of the Kevised Statutes.
DISPOSITION OF REDEMPTION ACCOUNT.
1800.

ACT JULY 14,

127. Sec. 6.— That upon the passage of this act the 3
Juiy^i|,
balances standing with the Treasurer of the United sec! 6; 2 6
States to the respective credits of national banks for d e-stat' L” 289‘
posits made to redeem the circulating notes of such
banks, and all deposits thereafter received for like pur­
pose, shall be covered into the Treasury as a miscellane­
ous receipt, and the Treasurer of the United States shall
redeem from the general cash in the Treasury the circu­
lating notes of said banks which may come into his pos­
session subject to redemption; and upon the certificate




56

REGULATION OP THE BANKING BUSINESS.

o f the Comptroller of the Currency that such notes have
been received by him and that they have been destroyed
and that no new notes will be issued in their place, reim­
bursement of their amount shall be made to the Treas­
urer, under such regulations as the Secretary of the
Treasury may prescribe, from an appropriation hereby
created, to be known as “ national-bank notes; Redemp­
tion account,” but the provisions of this act shall not
apply to the deposits received under section three o f the
act o f June twentieth, eighteen hundred and seventyfour, requiring every national bank to keep in lawful
money with the Treasurer of the United States a sum
equal to five per centum of its circulation, to be held
and used for the redemption of its circulating notes;
and the balance remaining of the deposits so covered
shall, at the close of each month, be reported on the
monthly public debt statement as debt of the United
States bearing no interest.
N ote .— The other sections of this act relate to the purchase
of silver bullion and issue of Treasury notes.

REDEMPTION OF LOST OR STOLEN NOTES, AND OF NOTES
NOT PROPERLY SIGNED. ACT JULY 28, 1892.
1892 * cU 2 rr^:
l*
27 ’stat. L.;the

322,

provisions of the Revised Statutes of
United States, providing for the redemption of
national-bank notes, shall apply to all national-bank
notes that have been or may be issued to, or received by,
any national bank, notwithstanding such notes may have
been lost by or stolen from the bank and put in circula­
tion without the signature or upon the forged signature
o f the president or vice-president and cashier.
129. Sec. 5193.—
Repealed March 14, 1900.
N o t e . — This section as enacted June 8, 1872 (17 Stat. L., 337),

authorized the Secretary of the Treasury to receive on deposit
from national banking associations United States notes in sums of
not less than ten thousand dollars and to issue certificates therefor
payable on demand in denominations of not less than five thou­
sand dollars. This was repealed by act March 14, 1900, section 6,
page 97, post, which provides for issue of gold certificates payable
to order in denominations of ten thousand dollars.

130. Sec. 5194.—
Dependent on 5193 and superseded by its repeal.

PLACE FOR REDEMPTION OF CIRCULATING NOTES TO BE
DESIGNATED.
Act June 3,

se6 *
c.

3 2 ; *13
stat. l., 109.

131. Sec. 5195.— Each association organized in any of
the cities named in section fifty-one hundred and ninetyone shall select, subject to the approval of the Comptroller
of the Currency, an association in the city of New York,
\ which it will redeem its circulating notes at parf\
_at
and may keep one-half of its lawful money reserve in
cash deposits in the city o f New York. [But the fore­
going provision shall not apply to associations organized
and located in the city of San Francisco for the purpose




R E G U LA TIO N OF T H E B A N K IN G B U S IN E SS .

57

o f 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 circulating
notes at par.~\ The Comptroller shall give public notice
of the names o f 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 the notes of any association are redeemed.
Whenever any association fails either to make the selec­
tion or to redeem, its notes as aforesaid, the Comptroller
o f the Currency may upon receiving satisfactory evidence
thereof appoint a receiver, in the manner provided for in
section fifty-two hundred 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.
N ote.— Italicized words repealed by act June 20, 1874.

NATIONAL BANKS NOT REQUIRED OR PERMITTED TO
REDEEM THEIR CIRCULATING NOTES ELSEWHERE
THAN AT THEIR OWN COUNTERS. ACT JUNE 20,
1874.

132. Sec. 3.— * * * And provided further, That so Act June 20,
much o f section thirty-two (section 5195, Revised Stat-se7 3 ; 3fs
cl
utes) o f said national-bank act requiring or permittingstat- L-» 123the redemption o f its circulating notes elsewhere than at
its own counter, except as provided for in this section, is
hereby repealed.
N ote.— Section 3, act of June 20, 1S74, is set forth in full after
Revised Statutes, 5192.

ADDITIONAL CENTRAL RESERVE CITIES.
1887.

ACT MARCH 3,

133. Sec. 2.—That whenever three-fourths in number Act Mar 3,
•
•
•
!lS 7 c 37$
S
of the national banks located in any city of the United s o c ! 2 ; 24
States having a population of two hundred thousand peo- stat- L- r,6°pie shall make application to the Comptroller o f the Cur­
rency, in writing, asking that such city may be a central
reserve citv, like the city of New York, in which one-half
o f the lawful-money reserve of the national banks located
in other reserve cities may be deposited, as provided in
section fifty-one hundred and ninety-five of the Revised
Statutes, the Comptroller shall have authority, with the
approval o f the Secretary of the Treasury, to grant such
request, and every bank located in such city shall at all
times thereafter have on hand, in lawful money of the
United States, twenty-five per centum of its deposits, as
provided in section fifty-one hundred and ninety-one of
the Revised Statutes.
N ote.— Otlier sections of act March 3, 18 87:
Section 1 , relating to additional reserve cities as amended by
act of March 3, 1003, follows Revised Statutes, section 5192.
Section 3 of this act relates to redemption of legal-tender notes.




58

R E G U L A T IO N OF T H E B A N K IN G B U S IN E SS .

NATIONAL BANKS TO TAKE NOTES OF OTHER NATIONAL
BANKS AT PAR.
1864 * cU i 06
n
®
ec*
—Every national banking association
sec! 3 2 ; 13 formed or existing under this Title, shall take and receive
StActL i1 9i°
Ju 0
Par’ ^or an^
or liabilit.y ^5 any anc^ a^ n°tes or
1870, c y
u 282! bills issued by any lawfully organized national banking
|tat.‘ l.? Lss!6 association. But this provision shall not apply to any
association organized for the purpose of issuing notes
payable in gold.

LIMITATION UPON RATE OF INTEREST WHICH MAY BE
TAKEN.
1864* cU
nioe
®
ec>
—Any association may take, receive, res e c ! 30; 13 serve, and charge on any loan or discount made, or upon
stat. l., 108. any no^ bjjj 0f exchange, or other evidences o f debt,
interest at the rate allowed by the laws of the State, Ter­
ritory, or District where the bank is located, and no more,
except that where by the laws of any State a different
rate is limited for banks of issue organized under State
laws, the rate so limited shall be allowed for associations
organized or existing in any such State under this Title.
When no rate is fixed by the laws of the State, or Terri­
tory, or District, the bank may take, receive, reserve, or
charge a rate not exceeding seven per centum, and such
interest may be taken in advance, reckoning the days for
which the note, bill, or other evidence of debt has to run.
And the purchase, discount, or sale of a bona fide bill of
exchange, payable at another place than the place o f such
purchase, discount, or sale, at not more than the current
rate of exchange for sight drafts in addition to the in­
terest, shall not be considered as taking or receiving a
greater rate o f interest.

PENALTY FOR TAKING UNLAWFUL INTEREST. JURIS­
DICTION OF SUITS BY OR AGAINST NATIONAL BANKS.

i 864C cU ioc
t n
®
ec*
^ amen<*e(l 1875],—The taking, receivas
3 0 ; 1 3 ing, reserving, or charging a rate o f interest greater than
StActL
Feb°8 *s a^owe(^ by the preceding section, when knowingly done,
i8
1875, c /io ; is shall be deemed a forfeiture of the entire interest which
stat. l ., 320. 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 representative, may
recover back, in an action in the nature of an action of
debt, twice the amount o f 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. That suits, actions, and
proceedings against any association under this Title may
be had in any circuit, district, or territorial court of the
United States held within the district in which such asso­
ciation may be established, or in any State, county, or

sec!




R E G U LA TIO N OF T H E B A N K IN G B U S IN E SS .

59

municipal court in the county or city in which said asso­
ciation is located having jurisdiction in similar cases.
N ote .— Additional provisions relating to jurisdiction of actions
by and against national banks are contained in Act July 12, 1882,
which is inserted after Revised Statutes, section 5136. See sec­
tions 020 and 736, Revised Statutes of United States, page 81,
post, as to jurisdiction of circuit courts to enjoin Comptroller
under section 5237, Revised Statutes, United States.

DIVIDENDS.
1 3 7 . Sec. 5 1 9 9 . —The directors of any association may,
Act June 3,
semiannually, declare a dividend of so much of the nets®6*! 33 j 1?^
profits o f the association as they shall judge expedient; stat L» 109*
but each association shall, before the declaration of a
dividend, carry one-tenth part of its net profits o f the
preceding half year to its surplus fund until the same
shall amount to twenty per centum of its capital stock.

LIMITATION OF LIABILITIES WHICH MAY BE INCURRED
BY ANY ONE PERSON, COMPANY, ETC.
1 3 8 . Sec. 5 2 0 0 Tas amended 1 9 0 6 1 . —The total l i a b i l i t i e s
Act June 3,
j
i•
/»
■
n
3864, c. 106,
to any association, or any person, or or any company,sec. 2 9 ; 13
corporation, or firm for money borrowed, including in ^c't^une 22
the liabilities of a company or firm the liabilities of thei906; 34 stat!
several members thereof, shall at no time exceed one-tenth L 451,
m
part o f the amount of the capital stock of such associa­
tions, actually paid in and unimpaired, and one-tenth part
ol* its unimpaired surplus fund: Provided, however, That
the total of such liabilities shall in no event exceed
thirty per centum of the capital stock of the association.
But the discount of bills of exchange drawn in good
faith against actually existing values, and the discount
of commercial or business paper actually owned by the
person negotiating the same shall not be considered as
money borrowed.

ASSOCIATIONS MUST NOT LOAN ON OR PURCHASE THEIR
OWN STOCK.
1 3 9 . Sec. 5 2 0 1 . —No association shall make any loan o r ^ c t June 3,
discount on the security of the shares of its own capital sec! 3 5 ; *13
stock, nor be the purchaser or holder of any such shares, stat L 110*
m
unless sucli security or purchase shall be necessary to
prevent loss upon a debt previously contracted in good
faith; and stock so purchased or acquired shall, within
six months from the time of its purchase, be sold or dis­
posed of at public or private sale; or, in default thereof,
a receiver may be appointed to close up the business of
the association, according to section fifty-two hundred
and thirty-four.

RESTRICTION ON BANK’S INDEBTEDNESS.
1 4 0 . Sec. 5 2 0 2 . —No association shall at any time be inAct June 3,
debted, or in any way liable, to an amount exceeding t h e s is 36; 1?%
amount of its capitai stock at such time actually paid in stat* L* no»




60

R E G U L A T IO N OF T H E B A N K IN G B U S IN E SS .

and remaining undiminished by losses or otherwise, ex­
cept on account of demands of the nature follow ing:
First. Notes of circulation.
Second. Moneys deposited with or collected by the as­
sociation.
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 associa­
tion for dividends and reserve profits.
RESTRICTION UPON USE OF CIRCULATING NOTES.

141. Sec. 5203.—No association shall, either directly or
se6 ’. 3 7 ; 1? 63 ^directly, pledge or hypothecate any of its notes or circ
stat. l., iio. culation, for the purpose of procuring money to be paid
in on its capital stock, or to be used in its banking opera­
tions, or otherwise; nor shall any association use its cir­
culating notes, or any part thereof, in any manner or
form, to create or increase its capital stock.
Act June

3,

PROHIBITION UPON WITHDRAWAL OF CAPITAL.
EARNED DIVIDENDS PROHIBITED.

UN­

1864* cU
ni06

^ec* ®204.—No association, or any member thereof,
shall, during the time it shall continue its banking operastat. l., no. ^ ons? withdraw, or permit to be withdrawn, either in the
form of dividends or otherwise, any portion of its capital.
I f losses have at any time been sustained by any such
association, equal to or exceeding its undivided profits
then on hand, no dividend shall be made; and no divi­
dend shall ever be made by any association, while it con­
tinues its banking operations, to an amount greater than
its net profits then on hand, deducting therefrom its losses
and bad debts. All debts due to any association, 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. F>ut nothing in this section shall
prevent the reduction of the capital stock of the associa­
tion under section fifty-one hundred and forty-three.

sec!

38;

13

ASSESSMENT FOR FAILURE TO PAY UP CAPITAL STOCK
OR FOR IMPAIRMENT OF CAPITAL.

igAct Mar^3, 1 4 3 , Sec. 5205 [as amended 1876].—Every association
sec! i ; 1 7 which shall have failed to pay up its capital stock, as re^Act^une^o cluired by law, and every association whose capital stock
1876, c. 156’, shall have become impaired by losses or otherwise, shall,
stat. L.f {54/ 9 within three months after receiving notice thereof from
the Comptroller of the Currency, pay the deficiency in
the capital stock, by assessment upon the shareholders
pro rata for the amount of capital stock held bv 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. I f any
such association shall fail to pay up its capital stock, and
shall refuse to go into liquidation, as provided by law,



REGULATIO N

OF T H E B A N K IN G B U S IN E SS .

61

for three months after receiving notice from the Comp­
troller. a receiver may be appointed to close up the busi­
ness of the association, according to the provisions of
section fifty-two hundred and thirty-four: And provided,
That if any shareholder or shareholders of such bank
shall neglect or refuse, after three months’ notice, to pay
the assessment, as provided in this section, it shall be the
duty o f the board of directors to cause a sufficient amount
of the capital stock of such shareholder or shareholders
to be sold at public auction (after thirty days’ notice
shall be given by posting such notice of sale in the office
of the bank, and by publishing such notice in a newspa­
per of the city or town in which the bank is located, or
in a newspaper published nearest thereto) to make good
the deficiency, and the balance, if any, shall be returned
to such delinquent shareholder or shareholders.
PROHIBITION AGAINST UNCURRENT NOTES.

144. Sec. 5206.— No association shall at any time p a y ]8£ct Jun50|
»
out on loans or discounts, or in purchasing drafts or bills sec’ 3i); l 3
of exchange, or in paj^ment of deposits, or in any other stat L” n l*
mode pay or put in circulation, the notes of any bank or
banking association which are not, at any such time,
receivable, at par, on deposit, and in payment of debts by
the association so paying out or circulating such notes;
nor shall any association knowingly pay out or put in
circulation any notes issued by any bank or banking asso­
ciation which at the time of such paying out or putting in
circulation is not redeeming its circulating notes in law­
ful money of the United States.
UNITED STATES NOTES NOT TO BE HELD AS COLLAT­
ERAL.

145. Sec. 5207.—No association shall hereafter offer or 18g9 tcF32
receive United Slates notes or national-bank notes as se-stat.’ L., 270.
curity or as collateral security for any loan of money,
or for a consideration agree to withhold the same from
use, or oiler or recei\e the custody or promise of custody
of such notes as security, or as collateral security, or con­
sideration for any loan of money. Any association o f­
fending against the provisions of this section shall be
deemed guilty of a misdemeanor, and shall be fined not
more than one thousand dollars and a further sum equal
to one-third of the money so loaned. The officer or offi­
cers 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 bene­
fit of the party bringing such suit.
ISSUE OF GOLD CERTIFICATES.

ACT JULY 12, 1882.

146. Sec. 12.—That the Secretary of the Treasury is
secy i 22:
authorized and directed to receive deposits of gold coin 22 ’stat.‘ l .I
* * * and issue certificates therefor * * *. S aid165*
certificates * * * when held by any national bank


62

R E G U L A T IO N

OF T H E B A N K IN G B U S IN E S S .

ing association, shall be counted as part of its lawful re­
serve; and no national banking association shall be a
member o f any clearing house in which such certificates
shall not be receivable in the settlement o f clearing-house
balances: * * * And the provisions o f section fiftytwo hundred and seven of the Revised Statutes shall be
applicable to the certificates herein authorized and di­
rected to be issued.
N ote.— This section given in full, page 87, post. See also cur­
rency act of March 4, 1900, as amended March 4, 1907, page 97,
post, relating to gold certificates, and making ten dollars lowest
denomination.
Other sections of this act referred to on page 19, ante.

PENALTY FOR FALSELY CERTIFYING CHECKS.
1869 *
15 stat.

335,

^ ' ®
ec* ®^08.—^ shall be unlawful for any officer,
l.’, clerk, or agent o f any national banking association to certify any check drawn upon the association unless the
person or company drawing the check has on deposit with
the association, at the time such check is certified, an
amount of money equal to the amount specified in such
check. Any check so certified by duly authorized officers
shall be a good and valid obligation against the associa­
tion ; but the act of any officer, clerk, or agent of any as­
sociation, in violation of this section, shall subject such
bank to the liabilities and proceedings on the part o f the
Comptroller as provided for in section fifty-two hundred
and thirty-four.
PUNISHMENT FOR FALSELY CERTIFYING CHECKS.
JULY 12, 1882.

ACT

12
1QAct Julyn(\A, 1 4 8 . Sec. 1 3 .— That any officer,/ clerk,/ or agent of any
Q
O
«/
•
/
sec! 1 3 ; 2 2 national banking association who shall willfully violate
stat. l ., 166. the provisions of an act entitled “ An act in reference to
certifying checks by national banks,” approved March
third, eighteen hundred and sixty-nine, being section
fifty-two hundred and eight o f the Revised Statutes of
the United States, or who shall resort to any device, or
receive any fictitious obligation, direct or collateral, in
order to evade the provisions thereof, or who shall certify
checks before the amount thereof shall have been regu­
larly entered to the credit of the dealer upon the books of
the banking association, shall be deemed guilty o f a mis­
demeanor, and shall, on conviction thereof in any circuit
or district court of the United States, be fined not more
than five thousand dollars, or shall be imprisoned not
more than five years, or both, in the discretion of the court.

PENALTY FOR EMBEZZLEMENT, ABSTRACTION, WILLFUL

Act June 3,
MISAPPLICATION, FALSE ENTRIES, ETC.
ee64, 5 5 ;1 i 3
c
0
®
ec* 5 2 0 9 . —Every president, director, cashier,
stat.' l ., ii6. teller, clerk, or agent o f any association, who embezzles,
1869,tc.A 16 abstracts, or willfully misapplies any o f the moneys, funds,
iir;
StActLJ i7 8 or cre(lits
uy
the association; or who, without authority
1870,r j l c. 226-from the directors,/ issues or X.
puts in circulation any o f
4 A
-X
T
•/
195.
* ” the notes of the association; or who, without such au


R E G U LA TIO N

OF T H E B A N K IN G B U S IN E SS .

63

thority, issues or puts forth any certificate o f deposit,
draws any order or bill of exchange, makes any accept­
ance, 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 associa­
tion, with intent, in either case, to injure or defraud the
association or any other company, body politic or cor­
porate, or any individual person, or to deceive any officer
o f the association, or any agent appointed to examine the
affairs of any such association; and every person who
with like intent aids or abets any officer, clerk, or agent
in any violation o f this section, shall be deemed guilty of
a misdemeanor, and shall be imprisoned not less than five
years nor more than ten.
NATIONAL BANKS NOT PERMITTED TO MAKE CONTRIBU­
TIONS IN CONNECTION WITH ELECTION TO POLITI­
CAL OFFICE. ACT JANUARY 26, 1007.

150. That it shall be unlawful for any national bank, or Act Jan. 26,
any corporation organized by authority of any laws of l9,°s64?4 Stat*
Congress, to make a money contribution in connection
with any election to any political office. It shall also be
unlawful for any corporation whatever to make a money
contribution in connection with any election at which
Presidential and Vice-Presidential electors or a Repre­
sentative in Congress is to be voted for, or any election by
any State legislature of a United States Senator. Every
corporation w^hich shall make any contribution in viola­
tion o f the foregoing provisions shall be subject to a fine
not exceeding five thousand dollars, and every officer or
director o f any corporation who shall consent to any con­
tribution by the corporation in violation of the foregoing
provisions shall upon conviction be punished by a fine of
not exceeding one thousand and not less than two hun­
dred and fifty dollars, or by imprisonment for a term of
not more than one year, or both such fine and imprison­
ment in the discretion o f the court.
LIST OF SHAREHOLDERS.
151. Sec. 5210.—The president and cashier of e v e r y ^Act; June ^
3,

national banking association shall cause to be kept at all sec! 4 0 ; is
times a full and correct list of the names and residences stat L” m o f all the shareholders in the association, and the number
o f shares held by each, in the office where its business is
transacted. Such list shall be subject to the inspection
of all the shareholders and creditors of the association,
and the officers authorized to assess taxes under State
authority, during business hours of each day in which
business may be legally transacted. A copy of such list,
on the first Monday oi July of each year, verified by the
oath o f such president or cashier, shall be transmitted to
the Comptroller o f the Currency.




64

R E G U L A T IO N OF T H E B A N K IN G B U S IN E S S .

REPORTS TO COMPTROLLER OF THE CURRENCY.

152. Sec. 5211 [as amended 1877].—Every association
s e6 ! 3 4 ; 1 3 shall make to the Comptroller of the Currency not less
c
StA tLMar9 3 ^ an ^ve rePor^ during each year, according to the form
s
1869,* c.arisb! which may be prescribed by him, verified by the oath or
s t a t ’ L 1 W 5a®rma^ on
^ e president or cashier o f such associaAct Feb. 27, tion, and attested by the signature of at least three o f the
stat’ l 6 5 19 directors. Each such report shall exhibit, in detail and
25 2
under appropriate heads, the resources and liabilities of
the association at the close of business on any past day
by him specified; and shall be transmitted to the Comp­
troller 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 associa­
tion 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
proof of publication shall be furnished as may be re­
quired 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 neces­
sary in order to a full and complete knowledge o f its
condition.
Act

N ote .— See sec. 713, Code of District of Columbia, page 112, post
requiring publication of reports in District of Columbia to be in
two or more daily papers.

VERIFICATION OF REPORTS.

ACT FEBRUARY 26, 1881.

388 i tcF 2 ; 2 i
8

^ 3 . That the oath or affirmation required by section
stat.’ l., 352. fifty-two hundred and eleven of the Revised Statutes,
verifying the returns made by national banks to the
Comptroller of the Currency, when taken before a notary
public properly authorized and commissioned by the
State in which such notary resides and the bank is lo­
cated, or any other officer having an official seal, author­
ized in such State to administer oaths, shall be a sufficient
verification as contemplated by said section fifty-two
hundred and eleven: Provided, That the officer adminis­
tering the oath is not an officer of the bank.
REPORT OF DIVIDENDS.
3860 4

cIari 30
® 5212.—In addition to the reports required by
ec*
sec! 2 ; 15the preceding section, each association shall report to the
stat. l ., 327. Comptroller of the Currency, within ten days after de­
claring any dividend, the amount of such dividend, and
the amount o f net earnings in excess of such dividend.
Such reports shall be attested by the oath o f the president
or cashier o f the association.
PENALTY FOR FAILURE TO MAKE REPORTS.

3, 155. Sec. 5213.—Every association which fails to make
s < 9’ if * ;1 i 5 and transmit any report required under either o f the two
e fs c 2 3
stat. l ! , 326. preceding sections shall be subject to a penalty o f one
Act Mar.




R E G U LA TIO N OF T H E B A N K IN G B U S IN E SS .

65

hundred dollars for each day after the periods, respec­
tively, therein mentioned, that it delays to make and
transmit its report. Whenever any association delays or
refuses to pay the penalty herein imposed, after it has
been assessed by the Comptroller of the Currency, the
amount thereof may be retained by the Treasurer of the
United States, upon the order of the Comptroller of the
Currency, out of the interest, as it may become due to the
association, on the bonds deposited 'with him to secure
circulation. All sums of money collected for penalties
under this section shall be paid into the Treasury of the
United States.
TAXES PAYABLE TO THE UNITED STATES.

156. Sec. 5214 f as amended May 30, 1908].—National |*t
banking associations having on deposit bonds of the s e c ! S i : l i
United States, bearing interest at the rate of two per st^ t LMar1'a
centum per annum, including the bonds issued for the 1883, sec* i ;
construction o f the Panama Canal, under the provisions
stat* L”
of section eight of “ An Act to provide for the construe- Act Mar. 14,
tion of a canal connecting the waters of the Atlantic andge°c
°;
^
Pacific oceans,” approved June twenty-eighth, n in e te e n stat. l ., 49.
hundred and two, to secure its circulating notes, shall pay 1908*se&V?0,
to the Treasurer of the United States, in the months of
January and July, a tax of one-fourth of one per centum
each half year upon the average amount of such of its
notes in circulation as are based upon the deposit of such
bonds; and such associations having on deposit bonds of
the United States bearing interest at a rate higher than
two per centum per annum shall pay a tax of one-half of
one per centum each half year upon the average amount
of such o f its notes in circulation as are based upon the
deposit of such bonds. National banking associations
having circulating notes secured otherwise than by bonds
o f the United States shall pay for the first month a tax
at the rate of five per centum per annum upon the average
amount o f such of their notes in circulation as are based
upon the deposit of such securities, and afterwards an
additional tax of one per centum per annum for each
month until a tax o f ten per centum per annum is reached,
and thereafter such tax of ten per centum per annum,
upon the average amount of such notes. Every national
banking association having outstanding circulating notes
secured by a deposit of other securities than United States
bonds shall make monthly returns, under oath of its presi­
dent or cashier, to the Treasurer o f the United States, in
such form as the Treasurer may prescribe, of the average
monthly amount of its notes so secured in circulation; and
it shall be the duty of the Comptroller of the Currency to
cause such reports of notes in circulation to be verified by
examination of the banks’ records. The taxes received on
circulating notes secured otherwise than by bonds of the
United States shall be paid into the Division of Kedemp38020°— 11------ 5




66

R E G U L A T IO N OF T H E B A N K IN G B U S IN E SS .

tion o f the Treasury and credited and added to the reserve
fund held for the redemption of United States and other
notes.
HALF-YEARLY RETURN OF CIRCULATION

[deposits

and

capital stock],
1864* cuni06
®
ec*
or(ler
enable the Treasurer to
sec! 4 1 ; 1 3 assess the duties imposed by the preceding section, each
stat. l„ in . association shall, within ten days from the first days of
January and July of each year, make a return, under the
oath of its president or cashier, to the Treasurer of the
United States, in such form as the Treasurer may pre­
scribe, o f the average amount o f 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 make such return
shall be liable to a penalty of two hundred dollars, to be
collected either out of the interest as it may become due
such association on the bonds deposited with the Treas­
urer, or, at his option in the manner in which penalties
are to be collected of other corporations under the laws
of the United States.
N o te .— T he taxes on the average am ount o f deposits and capital
stock having been repealed by the act o f M arch 3, 1883, and the
original provision therefor struck out o f section 5214 as amended
by act of May 30, 1908, there is no longer any obligation to m ake
the return of those tw o item s.

TENALTY FOR FAILURE TO MAKE RETURN.
Act June 3,
158. Sec. 5216.—Whenever any association fails to make
s e c ! 4 i ; *1% the half-yearly return required by the preceding section,
6

stat. l., in . the duties to be paid by such association shall be assessed
upon the amount of notes delivered to such association by
the Comptroller of the Currency [ and upon the highest
amount of its deposits and capital stock, to be ascertained
in such manner as the Treasurer may deem besf\.
N ote .— See note under section 5215 stating th a t ta x on deposits
and capital stock had been repealed.

ENFORCING TAX ON CIRCULATION.
1864 *

cU i 06
n
®ec* ®^17.—Whenever an association fails to pay
see! 41; l i t h e duties imposed by the three preceding sections, the
stat. l ., in. sums <jue m a y 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 in­
terest, as it may become due, on the bonds deposited with
him by such defaulting association.
REFUNDING EXCESS TAX.

EeBoiution 160. Sec. 5218.—In all cases where an association has
N 4&;1 1 4 paid or may pay in excess of what may be or has been
o.r*
Btat. l., 572. found due from it, on account of the duty required to be
paid to the Treasurer of the United States, the associa-




R EG U L A T IO N OF T H E B A N K IN G B U S IN E SS .

67

tion may state an account therefor, which, on being certi­
fied by the Treasurer of the United States, and found
correct by the First Comptroller of the Treasury, shall
be refunded in the ordinary manner by warrant on the
Treasury.
NO TAX TO BE PAID
MARCH 1, 1879.

BY INSOLVENT BANKS.

ACT

161. Sec. 22.—That whenever and after any bank has en!ieteactalMar"
ceased to do business by reason of insolvency or bank- h 1 1879, sec!
ruptcy, no tax shall be assessed or collected, or paid intoL2 35i? Stat‘
,;
the Treasury of the United States, on account of such
bank, which shall diminish the assets thereof necessary
for the full payment of all its depositors; and such tax
shall be abated from such national banks as are found by
the Comptroller of the Currency to be insolvent.
STATE TAXATION.

162. Sec. 5219.—Nothing herein shall prevent all the 18^ £uni06,
shares in any association from being included in the val-sec! 4i; id
nation o f the personal property of the owner or holder st^^Feb^o
of such shares, in assessing taxes imposed by authority of 3868, c. 7; 15
the State within which the association is located; but the stat* L" 34,
legislature of each State may determine and direct the
manner and place of taxing all the shares of national
banking associations located within the State, subject only
to the two restrictions, that the taxation shall not be at
a greater rate than is assessed upon other moneyed capital
in the hands of individual citizens of such State, and that
the shares of any national banking association owned by
nonresidents of any State shall be taxed in the city or
town where the bank is located, and not elsewhere. Noth­
ing herein shall be construed to exempt the real property
o f associations from either State, county, or municipal
taxes, to the same extent, according to its value, as other
real property is taxed.




CHAPTER V.
DISSOLUTION AND RECEIVERSHIP.
163. 5220. Two-thirds vote required for
liquidation.
164. 5221. Notice of voluntary liqui­
dation.
165. 5222. Deposit of lawful money to
redeem circulation.
166. 5223. No deposit required for con­
solidation.
167. 5224. Reassignment of bonds and
redemption of notes of liqui­
dating banks.
168. Act June 20, 1874. Duty of Treas­
urer, assistant treasurer, etc.,
to return notes of failed or
liquidating banks to Treasury
for redemption.
169. 5225. Destruction
of
redeemed
notes.
170. 5226. Protest of bank circulation.
171. 5227. Bonds forfeited if circula­
tion is dishonored.
Exami­
nation by special agent.
172. 5228. Suspension of business after
default.
173. 5229. Notice to present circulation
for redemption. Cancellation
of bonds.
174. 5230. Sale of bonds at auction.
First lien for redeeming cir­
culation.
175. 5231. Bonds may be sold at pri­
vate sale.
176. 5232. Disposal of redeemed notes.
Regulations for redemption
records.

177. 5233. Redeemed notes to be can­
celed.
178. 5234. Appointment and duties of
receivers.
179. 5235. Notice to creditors of insol­
vent banks to present claims.
180. 5236. Dividends. Distribution of
assets of insolvent banks.
181. 5237. When bank may enjoin fur­
ther proceedings.
182. 5238. Fees and expenses.
183. Act June 30, 1876. When receiver
may be appointed.
184. Act June 30, 1876. Creditor’s bill
against shareholders.
185. Act June 30, 1876. Appointment,
qualification, and duties of
shareholders’ agent.
186. Act March 2 9 ,18S6. Receiver may
purchase property to protect
his trust.
187. Act Mnrcli 29, 1886. Approval of
request.
188. Act March 29, 1886. Payment.
189. 5239. Penalty for violation of this
title. Forfeiture of charter.
Individual liability of di­
rectors.
190. 5240. Appointment of examiners.
Compensation.
191. 5241. Limitation of visitorial pow­
ers.
192. 5242. Transfers, when void. Ille­
gal preference of creditors.
193. 5243. Use of the title “ National.’’

TWO-THIRDS VOTE REQUIRED FOR LIQUIDATION.

3, 163. Sec. 5220.—Any association may go into liquida­
4 2 ; 1? 3 ti°n and be closed by the vote o f its shareholders owning
l . , 112. two-thirds of its stock.

Act June

te !
stat.

N ote.— For enforcement of shareholders’ liability when bank is
in liquidation see act of June 20, 1876, following Revised Statutes,
5238.

3,

NOTICE OF YOLUNTARY LIQUIDATION.
164. Sec. 5221.— Whenever a vote is taken to go into

4 2 ;* 1 3
stat. l . , 112.

liquidation it shall be the duty of the board o f directors
to cause notice o f this fact to be certified, under the seal

Act June

s ec !
6




D ISSO LUTIO N AN D RECEIVER SH IP.

69

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 pub­
lished in the city of Xew 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.
DEPOSIT OF LAWFUL MONEY TO REDEEM CIRCULATION.

165. Sec. 5222.—Within six months from the date of the lgAct
vote to go into liquidation, tlie association shall deposit socs/ 42, 4 3 ;
with the Treasurer of the United States, lawful money ]'j2. Stat‘ L“
of the United States sufficient to redeem all its outstand- Act July J4,
ing circulation. The Treasurer shall execute duplicate ]§'0,gt£t 2l #
*
;
receipts for money thus deposited, and deliver one to the y74association and the other to the Comptroller of the Cur­
rency, stating the amount received by him, and the pur­
pose for which it has been received: and the money shall
be paid into the Treasury of the United States, and
placed to the credit of such association upon redemption
account.
NO DEPOSIT REQUIRED FOR CONSOLIDATION.

166. Sec. 5223.— An'association which is in good faith ^Act July2^
winding up its business for the purpose of consolidating jo stat. l.|
with another association shall not be required to deposit 274lawful money for its outstanding circulation; but its as­
sets and liabilities shall be reported by the association
with which it is in process of consolidation.
REASSIGNMENT OF RONDS AND REDEMPTION OF NOTES
OF LIQUIDATING RANKS.

167. Sec. 5224 [as amended 1875].—Whenever a s u f f i - c 11^ ! ’
11
cient deposit of lawful money to redeem the outstandingsec! 42; 13
circulation of an association proposing to close its busi- St\VFet>1 i8
2
ness has been made, the bonds deposited by the associac. so'; is
tion to secure payment of its notes shall be reassigned t o s1af‘
32°*
it, in the manner prescribed by section fifty-one hundred
and sixty-two. And thereafter the association and its
shareholders shall stand discharged from all liabilities
upon the circulating notes, and those notes shall be re­
deemed at. the Treasury of the United States. And if
any such bank shall fail to make the deposit and take up
its bonds 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 auction in Xew York City, and, after
providing for the redemption and cancellation of said cir­
culation, and the necessary expenses of the sale, to pay
over any balance remaining to the bank or its legal repre­
sentatives.




70

DISSOLUTION AND RECEIVERSHIP.

DUTY OF TREASURER, ASSISTANT TREASURERS, ETC., TO
RETURN NOTES OF FAILED OR LIQUIDATING BANKS
TO TREASURY FOR REDEMPTION. ACT JUNE 20,
1874.
1874 * J e343;
cln
s e c ! 8; is
stat. L.f 125.

® i
eC
^ shall be the duty of the Treasurer,
assistant treasurers, designated depositaries, and national
hank depositaries of the United States to assort and re­
turn to the Treasury for redemption the notes o f 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 liquid­
ation.
DESTRUCTION OF REDEEMED NOTES.

1864* cU i 06
n
®
ec*
^
-as amen<*e * 1877].—Whenever the
<
sec! 4 3 ; 1 3 Treasurer has redeemed any of the notes o f an association
StActL 1 27
peb
^as commenced to close its affairs, under the five
1877, c. 6 9 ; 19 preceding sections, he shall cause the notes to be mutilated
stat. l ., 252. an(j charged to the redemption account of the associa­
tion; and all notes so redeemed by the Treasurer shall,
every three months, be certified to and [burned'] in the
manner prescribed in section fifty-one hundred and
eighty-four.
N ote.— See act o f June 23, 3874, follow ing Revised Statutes,
section 5184, directing th at bank notes be m acerated and not
burned.

PROTEST OF BANK CIRCULATION.

170. Sec. 5226.— Whenever any national banking assoJfc!' 46; 1 i6 ciation fails to redeem in the lawful money of the United
03
stat. l . , 113. States any of its circulating notes, upon demand of pay­
ment duly made during the usual hours o f business, at the
office of such association, or at its designated place of re­
demption, the holder may cause the same to be protested,
in one package, 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 de­
mand 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 o f the non­
payment thereof. The notary public, on making such
protest, or upon receiving such admission, shall forthwith
forward such admission or notice of protest to the Comp­
troller o f the Currency, retaining a copy thereof. If,
however, satisfactory proof is produced to the notary
public that the payment of the notes demanded is re­
strained by order o f any court of competent jurisdiction,
he shall not protest the same. When the holder of any
notes causes more than one note or package to be protested
Act June 3,




D ISSO LUTIO N A N D R E CEIVER SH IP.

71

on the same day, he shall not receive pay for more than
one protest.
N ote .— Circulation redeemable only at Treasury or over own
counter. Designated places of redemption have not existed since
act June 20, 1874.
(See said act following Revised Statutes,
5 1 9 2 ).

BONDS FORFEITED IF CIRCULATION IS DISHONORED.
EXAMINATION BY SPECIAL AGENT.

171. Sec. 5227.— On receiving notice that any n a tio n a l ^Act^June^8,
banking association has failed to redeem any of its cir-sec! 4 7; l i
culating notes, as specified in the preceding section, thestat L* 114‘
*
Comptroller of the Currency, with the concurrence of the
Secretary of the Treasury, may appoint a special agent,
o f whose appointment immediate notice shall be given to
such association, who shall immediately proceed to ascer­
tain whether it has refused to pay its circulating notes in
the lawful money of the United States, when demanded,
and shall report to the Comptroller the fact so ascer­
tained. If, from such protest, and the report so made,
the Comptroller is satisfied that such association has re­
fused 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 associa­
tion forfeited to the United States, and they shall there­
upon be so forfeited.
SUSPENSION OF BUSINESS AFTER DEFAULT.

172. Sec. 5228 [as amended 1875].— After a default on 1BAA June aa
Act
3,
•
•
a
i
the part o f an association to pay any of its circulating s e c ! 4 6 ; l i
notes has been ascertained by the Comptroller, and notice stat- L» 113*
thereof has been given by him to the association, it shall m 5f
VF80; i^
not be lawful for the association suffering the same to stat- L* 320*
»
pay out any of its notes, discount any notes or bills, or
otherwise prosecutc the business of banking, except to
receive and safely keep money belonging to it, and to
deliver special deposits.
NOTICE TO PRESENT CIRCULATION FOR REDEMPTION.
CANCELLATION OF BONDS.

173. Sec. 5229.—Immediately upon declaring the bonds lgAct
of an association forfeited for nonpayment of its notes,sec! 4 7 ; l i
the Comptroller shall give notice, in such manner as the stat* L 114*
,>
Secretary o f the Treasury shall, by general rules or
otherwise, direct, to the holders of the circulating notes
of such association, to present them for payment at the
Treasury o f the United States; and the same shall be
paid as presented in lawful money of the United States;
whereupon the Comptroller may, in his discretion, cancel
an amount of bonds pledged by such association equal at
current market rates, not exceeding par, to the notes paid.




72

D ISSO LU TIO N A N D R ECEIV ER SH IP.

SALE OF BONDS AT AUCTION.
DEEMING CIRCULATION.

FIRST LIEN FOR RE­

Act June 3,
174. Sec. 5230.— Whenever the Comptroller has become
secs/ 47, 486; satisfied, by the protest or the waiver and admission
i i 4. Stat‘ L” 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 o f canceling its
bonds, cause so much o f them as may be necessary to re­
deem its outstanding notes to be sold at public auction in
the city o f New York, after giving thirty days’ notice o f
such sale to the association. For any deficiency in the
proceeds of all the bonds of an association, when thus
sold, to reimburse to the United States the amount ex­
pended in paying the circulating notes o f 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.

BONDS MAY BE SOLD AT FRIYATE SALE.
1804?

c.uni 06,
’
^ec. 5231.—The Comptroller may, if he deems it
sec! 49; 13 for the interest of the United States, sell at private sale
stat. l., ii4.
bon(js 0f 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 o f any such bonds, either public or pri­
vate, 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 hun­
dred and sixty-three, and fifty-one hundred and sixtyfour.

ay
n

DISPOSAL OF REDEEMED NOTES; REGULATIONS FOR
REDEMPTION RECORDS.
1804* cU ioe
n
®ec*
—The Secretary of the Treasury may,
sec! 47; 13from time to time, make such regulations respecting the
stat. l., 114. ^ p o sition to be made o f circulating notes after presenta­
tion at the Treasury of the United States for payment,
and respecting the perpetuation o f the evidence o f the
payment thereof, as may seem to him proper.

REDEEMED NOTES TO BE CANCELED.
1804,
4

cU ioo!
D
® t ®233.—A ll notes of national banking associa­
eC
t e ! 47; 13 tions presented at the Treasury of the United States for
tat. ., l . payment shall, on being paid, be canceled.
APPOINTMENT AND DUTIES OF RECEIYERS.
1804 4

cunioo
®ec* ®^*4.— On becoming satisfied, as specified in
sec! so; 1 3 sections fifty-two hundred and twenty-six and fifty-two
stat. l., 114. iAimdred and twenty-seven, that any association has re­
fused to pay its circulating notes as therein mentioned,




D ISSO LUTIO N A N D R ECEIVER SH IP.

73

and is in default, the Comptroller of the Currency may
forthwith appoint a receiver, and require of him such
bond and security as he deems proper. Such receiver,
under the direction of the Comptroller, shall take posses­
sion 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 persona] 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
o f 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.
N o t e . — Oflier provisions authorizing the appointment of re­
ceivers of national hanks and relating to powers and duties of
receivers and agents will be found in the act of June 80, 1S7G, as
amended August 3, 1892, and March 2, 1897, and the act of March
29, 1880. Both those acts are sot forth following section 5238,
Revised Statutes.
A receiver may also be appointed, under the provisions of sec­
tion fifty-two hundred and thirty-four of the Revised Statutes of
the United States, for the following violations of la w :
Where the capital stock of a national bank has not been fully
paid in and it is thus reduced below the legal minimum and re­
mains so for thirty days.
(Sec. 5141, It. S.)
For failure to make good the lawful-money reserve within
thirty days after notice. (Sec. 5191, II. S.)
Where a bank purchases or acquires its own stock, to prevent
loss upon a debt previously contracted in good faith, and the
same is not sold or disposed of within six months from the time
of its purchase. (Sec. 5201, It. S.)
For failure to make good any impairment in its capital stock
and refusing to go into liquidation within three months after re­
ceiving notice.
(Sec. 5205, It. S.)
For false certification of checks bv anv officer, clerk, or agent.
(Sec. 520S, R. S.)

NOTICE TO CKEDITORS OF INSOLVENT BANKS TO PRE­
SENT CLAIMS.

179. Sec. 5235.—The Comptroller shall, upon appoint-. Aft June a,
.
•
j •
/
i
•
i
1
j •
i
C.
l Uo,
mg a receiver, cause notice to be given, by advertisement sec. 50; 13
in such newspapers as he may direct, for three consecutive stat* L” 114,
months, calling on all persons who may have claims
against such association to present the same, and to make
legal proof thereof.
DIVIDENDS: DISTRIBUTION OF ASSETS OF INSOLVENT
BANKS.

180. Sec. 5236.— From time to time, after full p rovi-18^® cU ioo
t n
sion has been first made for refunding to the U nited roc! 50; 13
States any deficiency in redeeming the notes of such asso- stat' L” 114*
ciation, the Comptroller shall make a ratable dividend of
the money so paid over to him by such receiver on all such
claims as may have been proved to his satisfaction or ad­
judicated in a court of competent jurisdiction, and, as
the proceeds o f the assets of such association are paid



74

D ISSO LU TIO N A N D R E C EIV ER SH IP.

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
o f such association, or their legal representatives, in pro­
portion to the stock by them respectively held.
WHEN BANK MAY ENJOIN FURTHER PROCEEDINGS.

igAct June0*. 181. Sec. 5237.—Whenever an association against which
*
s e c ! 5 0 ; i i proceedings have been instituted, on account o f any alstat. l . , 114. ] e g e(j refusal to redeem its circulating notes as aforesaid,
denies having failed to do so, it may, at any time within
ten days after it has been notified of the appointment of
an agent, as provided in section fifty-two hundred and
twenty-seven, apply to the nearest circuit, or district, or
Territorial court of the United States to enjoin further
proceedings in the premises; and such court, after citing
the Comptroller of the Currency to show cause why fur­
ther proceedings should not be enjoined, and after the
decision of the court or finding of the jury that such as­
sociation has not refused to redeem its circulating notes,
when legally presented, in the lawful money of the
United States, shall make an order enjoining the Comp­
troller, and any receiver acting under his direction, from
all further proceedings on account o f such alleged refusal.
N o t e .— See also sections G29 and 736, Revised Statutes, page 81v

post.

FEES AND EXPENSES.
Act June 3,
182. Sec. 5238.—All fees for protesting the
se6 5 i ; 31 3 by any national banking association shall be
c!

notes issued
paid by the
stat. l., us. person procuring the protest to be made, and such asso­
ciation shall be liable therefor; but no part of the bonds
deposited by such association shall be applied to the pay­
ment o f such fees. All expenses o f any preliminary or
other examinations into the condition of any association
shall be paid by such association. All expenses o f any
receivership shall be paid out o f the assets of such associa­
tion before distribution of the proceeds thereof.
WHEN RECEIYER MAY BE APPOINTED.
1870.

ACT JUNE 30,

Act June no,
183. Sec. 1.— That whenever any national banking asse'c! ! ; Association shall be dissolved, and its rights, privileges, and
stat. l „ 63.
franchises declared forfeited, as prescribed in section
fifty-two hundred and thirty-nine of the Revised Statutes
o f the United States, or whenever any creditor of any
national banking association shall have obtained a judg­
ment against it in any court of record, and made appli­
cation, accompanied by a certificate from the clerk of the
court stating that such judgment has been rendered and
has remained unpaid for the space of thirty days, or
whenever the Comptroller shall become satisfied of the
insolvency o f the national banking association, he may,
after due examination of its affairs, in either case, ap­
point a receiver who shall proceed to close up such asso-




D ISSO LUTIO N A N D R E CEIVER SH IP.

75

elation, and enforce the personal liability of the share­
holders, as provided in section fifty-two hundred and
thirty-four o f said statutes.
CREDITOR’ S BILL AGAINST SHAREHOLDERS.
30, 1876.

ACT JUNE

184. Sec. 2.— That when any national banking a s s o c i a - J e1 ^
^n 5
tion shall have gone into liquidation under the provi- | a
® ®*L2|3
j
sions of section five thousand two hundred and twenty o f a * ”
said statutes, the individual liability of the shareholders
provided for by section fifty-one hundred and fifty-one
of said statutes may be enforced by any creditor of such
association, by bill in equity, in the nature of a creditor’s
bill, brought bv such creditor on behalf of himself and o f
all other creditors of the association, against the share­
holders thereof, in any court of the United States having
original jurisdiction in equity for the district in which
such association may have been located or established.

APPOINTMENT, QUALIFICATION, AND DUTIES OF SHARE­
HOLDERS’ AGENT. ACT JUNE 30, 1876, AS AMENDED
1892, 1897.

185. Sec. 3.—That whenever any association shall have lgAct June.J >
<»
been or shall be placed in the hands of a receiver, as pro-sec! 3; id
videcl in section fiftv-two hundred and thirty-four and funded 6Aug!
other sections of the Revised Statutes of the United|»tfti 8
States, and when, as provided in section fifty-two hun- and ’ M
ar. 2
\
dred and thirty-six thereof, the Comptroller of the Cur-if^eoo!9 Stat*
rency shall have paid to each and every creditor of such
association, not including shareholders who are creditors
of such association, whose claim or claims as such creditor
shall have been proved or allowed as therein prescribed,
the full amount o f such claims, and all expenses o f the
receivership, and the redemption of the circulating notes
of such association shall have been provided for by de­
positing lawful money of the United States with the
Treasurer of the United States, the Comptroller of the
Currency shall call a meeting of the shareholders of such
association by giving notice thereof for thirty days in a
newspaper published in the toAvn, city, or county where
the business of such association was carried on, or if no
newspaper is there published, in the newspaper published
nearest thereto. At such meeting the shareholders shall
determine whether the receiver shall be continued and
shall wind up the affairs o f such association, or whether
an agent shall be elected for that purpose, and in so de­
termining the said shareholders shall vote by ballot, in
person or by proxy, each share of stock entitling the
holder to one vote, and the majority of the stock in value
and number of shares shall be necessary to determine
whether the said receiver shall be continued, or whether
an agent shall be elected. In case such majority shall
determine that the said receiver shall be continued, the
said receiver shall thereupon proceed with the execution



DISSOLUTION

A N D R ECEIVER SH IP.

o f his trust, and shall sell, dispose of, or otherwise collect
the assets of the said association, and shall possess all the
powers and authority, and he subject to all the duties and
liabilities originally conferred or imposed upon him by his
appointment as such receiver, so far as the same remain
applicable. In case the said meeting shall, by the vote
o f a majority of the stock in value and number of shares,
determine that an agent shall be elected, the said meeting
shall thereupon proceed to elect an agent, voting by bal­
lot, in person 01* by proxy, each share of stock entitling
the holder to one vote, and the person who shall receive
votes representing at. least a majority of stock in value
and number shall be declared the agent for the purposes
hereinafter provided: and whenever any of the share­
holders of the association shall, after the election of such
agent, have executed and filed a bond to the satisfaction
o f the Comptroller of the Currency, conditioned for the
payment and discharge in full of each and every claim
that may thereafter be proved and allowed by and before
a competent court, and for the faithful performance of
all and singular the duties of such trust, the Comptroller
and the receiver shall thereupon transfer and deliver to
such agent all the undivided or uncollec'ed or other as­
sets of such association then remaining in the hands or
subject to the order and control of said Comptroller and
said receiver, or either of them; and for this purpose said
Comptroller and said receiver are hereby severally em­
powered and directed to execute any deed, assignment,
transfer, or other instrument in writing that ma\Tbe nec­
essary and proper; and upon the execution and delivery
of such instrument to the said agent the said Comptroller
and the said receiver shall by virtue of this act be dis­
charged from any and all liabilities to such association
and to each and all the creditors and shareholders thereof.
Upon receiving such deed, assignment, transfer, or
other instrument, the person elected such agent shall hold,
control, and dispose of the assets and property of such
association which he may receive under the terms hereof
for the benefit of the shareholders of such association,
and he may, in his own name, or in the name of such
association, sue and be sued and do all other lawful acts
and things necessary to finally settle and distribute the
assets and property in his hands, and may sell, compro­
mise, or compound the debts due to such association, with
the consent and approval of the circuit or district court
of the l T
nitod States for the district where the business of
such association ^as carried on, and shall at the conclu­
sion of his tru-t render to such district or circuit court
a full account of all his proceedings receipts, and expend­
itures as such agent, which court shall, upon due notice,
settle and ad just such accounts and discharge said agent
and the su reties upon
id bond. And in case any such
agent so elected shall re-fuse to serve, or die, resign, or




D ISSO LU TIO N A N D KECEIVEIISH IP.

77

be removed, any shareholder may call a meeting of the
shareholders of such association in the town, city, or vil­
lage where the business of the said association was car­
ried on, by giving notice thereof for thirty days in a
newspaper published in said town, city, or village, or if
no newspaper is there published, in the newspaper pub­
lished nearest thereto, at which meeting the shareholders
shall elect an agent, voting by ballot, in person or by
proxy, each share of stock entitling the holder to one
vote, and when such agent shall have received votes rep­
resenting at least a majority of the stock in value and
number of shares, and shall have executed a bond to the
shareholders conditioned for the faithful performance
of his duties, in the penally fixed by the shareholders at
said meeting, with two sureties, to be approved by a
judge of a court of record, and file said bond in the office
of the clerk of a court of record in the county where the
business of said association was carried on, he shall have
all the rights, powers, and duties of the agent first elected
as hereinbefore provided. At any meeting held as here­
inbefore provided administrators or executors of deceased
shareholders may act and sign as the decedent might have
done if li\ing, and guardians of minors and trustees of
other persons may so act and sign for their ward or wards
or cestui que trust. The proceeds of the assets or prop­
erty of any such, association which may be undistributed
at the time of such meeting or may be subsequently re­
ceived shall be distributed as follows:
“ First. To pay the expenses of the execution of the
trust to the date of such payment.
“ Second. To repay any amount or amounts which have
been paid in by any shareholder or shareholders of such
association upon and by reason of any and all assess­
ments made upon the stock of such association by the
order of the Comptroller of the Currency in accordance
with the provisions of the statutes of the United States;
and
u Third. The balance ratably among such stockholders,
in proportion to the number of shares held and owned by
each. Such distribution shall be made from time to time
as the proceeds shall be received and as shall be deemed
advisable by the said Comptroller or said agent.”
N ote.— Other sections of act June .>0, 1S7G:
‘
Section 4 amends Revised Statutes, 5205.
Seel ion 5 relates to counterfeit notes.
Section (> relates to savings banks and trust companies, organ­
ized under act of Congress. See Code District of Columbia, page
1 1 2 , post.

RECEIVER MAY PURCHASE PROPERTY TO PROTECT HIS
TRUST. ACT MARCH 29, 1886.
186.
Sec. 1.—That whenever the receiver of any national 18gQt u£ V ||’
> m
bank duly appointed by the Comptroller of the Currency,sec!
2i
and who shall have duly qualified and entered upon the^
discharge of his trust, shall find it in his opinion neces


78

D ISSO L U T IO N A N D R E C EIV ER SH IP.

sary, in order to fully protect and benefit his said trust,
to the extent of any and all equities that such trust may
have in any property, real or personal, by reason of any
bond, mortgage, assignment, or other proper legal claim
attaching thereto, and which said property is to be sold
under any execution, decree of foreclosure, or proper
order of any court of jurisdiction, he may certify the
facts in the case, together with his opinion as to the value
o f the property to be sold, and the value of the equity his
said trust may have in the same, to the Comptroller of
the Currency, together with a request for the right and
authority to use and employ so much of the money of
said trust as may be necessary to purchase such property
at such sale.
APPROVAL OF BEQUEST.

ACT MARCH 29, 1886.

187. Sec. 2.—That such request, if approved by the
Bee! 2 ; 2 4 Comptroller o f the Currency, shall be, together with the
stat. L.t 8.
certificate of facts in the case, and his recommendation as
to the amount o f money which, in his judgment, should be
so used and employed, submitted to the Secretary of the
Treasury, and if the same shall likewise be approved by
him, the request shall be by the Comptroller of the Cur­
rency allowed, and notice thereof, with copies of the
request, certificate of facts, and indorsement or approvals,
shall be filed with the Treasurer of the United States.
Act Map.

29,

PAYMENT.

ACT MARCH 29, 1886.

Act Mar. 29,

188. Sec. 3.—That whenever any such request shall be
be8 ! 3; 2 4 allowed as hereinbefore provided, the said Comptroller of
c
stat. L., 8.
the Currency shall be, and is, empowered to draw upon
and from such funds of any such trust as may be depos­
ited with the Treasurer of the United States for the
benefit of the bank in interest, to the amount as may be
recommended and allowed and for the purpose for which
such allowance was made: Provided, however, That all
payments to be made for or on account of the purchase of
any such property and under any such allowance shall be
made by the Comptroller of the Currency direct, with the
approval o f the Secretary of the Treasury, for such pur­
pose only and in such manner as he may determine and
order.
PENALTY FOR VIOLATION OF THIS TITLE; FORFEITURE
OF CHARTER; INDIVIDUAL LIABILITY OF DIREC­
TORS.
1864 1

cuni06

1® * Sec. 5239.—I f the directors of any national bank®
violate, or knowingly
or servants of the asso­
ciation to violate any o f the provisions of this Title, all
the rights, privileges, and franchises of the association
shall be thereby forfeited. Such violation shall, how­
ever, be determined and adjudged by a proper circuit,
district, or Territorial court of the United States, in a
suit brought for that purpose by the Comptroller o f the

s e c ! 5 3 ; 1 3 ing association shall knowingly
stat. l., lie . p e rm i t any 0 f the officers, agents,




D ISSO LU TIO N A N D R ECEIV ER SH IP.

79

Currency, in his own name, before the association shall be
declared dissolved. And in cases o f such violation every
director who participated in or assented to the same shall
be held liable in his personal and individual capacity for
all damages which the association, its shareholders, or any
other person shall have sustained in consequence of such
violation.
APPOINTMENT OF EXAMINERS, COMPENSATION.
1 9 0 . Sec. 5 2 4 0 [as amended 1 8 7 5 ] . —The Comptroller of

cUni 06’

the Currency, with the approval of the Secretary of thesec! 54; l i
Treasury, shall, as often as shall be deemed necessary o r st^ tL 1 ^
^ 6
proper, appoint a suitable person or persons to make an 1875, c. 8iy li
examination o f the affairs of every banking association, ta ' ”
who shall have power to make a thorough examination
into all the affairs of the association, and, in doing so, to
examine any of the officers and agents thereof on oath;
and shall make a full and detailed report of the condition
o f the association to the Comptroller. That all persons
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 Revised Statutes of
the United States, or in any one of the States of Oregon,
California, and Nevada, or in the Territories, shall re­
ceive 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 o f one hundred thousand dollars and less than
three hundred thousand dollars, twenty-five dollars; those
having a capital of three hundred thousand dollars and
less than four hundred thousand dollars, thirty-five dol­
lars; 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 thousand
dollars and less than six hundred thousand dollars, fifty
dollars; those having a capital of six hundred thousand
dollars and over, seventy-five dollars; which amounts
shall be assessed by the Comptroller of the Currency
upon, and paid by, the respective association so exam­
ined, and shall be in lieu of the compensation and mile­
age heretofore allowed for making said examinations,
and persons appointed to make examinations of national
banks in the cities named in section five thousand one
hundred and ninctv-two o f the Revised Statutes of the
United States, or in any one of the States of Oregon,
California, and Nevada, or in the Territories, shall re­
ceive such compensation as may be fixed by the Secretary
o f the Treasury upon the recommendation of the Comp­
troller o f the Currency; and the same shall be assessed
and paid in the manner hereinbefore provided. But no
person shall be appointed to examine the affairs of any
banking association of which he is a director or other
officer.




80

D ISSO LUTIO N

A N D R E CEIV ER SH IP.

LIMITATION OF YIS1T0RIAL POWERS.

i 8GC c.uni 06, *91. Sec. 5241.—No association shall be subject to any
4t
sec*. 54; 13 visitorial powers other than such as are authorized by
stat. l ., no.
^ l e , or are vested in the courts o f justice.
TRANSFERS WHEN
CREDITORS.

YOID;

ILLEGAL

PREFERENCE

OF

1864* ^uni 06
^ec* ®^42.—^ transfers of the notes, bonds, bills
sec! 52; 1 3 of exchange, or other evidences o f debt owing to any
stat. l., ii5. national banking association, or of deposits to its credit;
all assignments of mortgages, sureties on real estate, or
of judgments or decrees in its favor; all deposits of
money, bullion, or other valuable tiling 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;
and no attachment, injunction or execution, shall be issued
against such association or its property before final judg­
ment in any suit, action, or proceeding, in any State,
county, or municipal court.

USE OF THE TITLE “ NATIONAL.”

igAct Ma* g, 1 9 3 . Sec. 5243.—A ll banks not organized and transsec! 3 ; 1*7 acting business under the national currency laws, or
stat. l . , 603. un(jer this Title, and all persons or corporations doing
the business of bankers, brokers, or savings institutions,
except savings banks authorized by Congress to use the
word “ national ” as a part of their corporate name, are
prohibited from using the word “ national ” as a portion
o f the name or title of such bank, corporation, firm, or
partnership; and any violation of this prohibition com­
mitted after the third day of September, eighteen hun­
dred and seventy-three, shall subject the party charge­
able therewith to a penalty o f fifty dollars for each day
during which it is permitted or repeated.




CHAPTER VI.
ACTS OF A GENERAL NATURE AND SECTIONS OF TIIK REVISED STATUTES, NOT
INCLUDED IN THE NATIONAL BANK ACT, AFFECTING NATIONAL BANKS.
191. District attorney to conduct suits
when United States is si party.
195. Jurisdiction of circuit court to en­
join Comptroller.
196. Where such proceedings must be
brought.
197. Sealed certificates of Comptroller
competent evidence.
198. Certified copy of organization cer­
tificate as evidence.

ALL

J99-209. Tax on State bank circulation.
210-211. Tax on United States and na­
tional bank notes.
2 1 2 .
Restrictions on notes less
than one dollar.
213-223. Legal tender.
224-229. Government depositaries.
230-239. Forgeries, frauds, etc.
240-253. Currency act March 14, 1900.
254-257. Act March 4, 1907.

SUITS UNDER BANKING LAW IN WHICH THE
UNITED STATES 011 ANY OF ITS OFFICERS OR
AGENTS ARE PARTIES TO BE CONDUCTED BY DIS­
TRICT ATTORNEYS UNDER THE SUPERVISION OF
THE SOLICITOR OF THE TREASURY.

194. Sec. 380.— A ll suits and proceedings arising out Act Feb. 25,
o f the provisions o f law governing national banking asso- s e6c ! 5 5 ; 12
ciations, in which the United States or any of its officers s t ActLjune° ’3
or agents shall be parties, shall be conducted by the dis-1864, c. 10^
trict attorneys o f the several districts under the direction Itat’ J ,6ii6* 3
U
and supervision of the Solicitor of the Treasury.
Note.— The United States Supreme Court decided in the case of
Gibson v. Peters (150 U. S., 342) that a district attorney could not
receive any compensation for services in conducting a suit arising
out of the provisions of the national banking laws in which the
United States or any of its officers or agents are parties.

JURISDICTION OF CIRCUIT COURTS TO ENJOIN COMP­
TROLLER.
195. Sec. 629 [as amended 1875].— The circuit courts Act June 3,
shall have original jurisdiction of all suits brought byg|cs 5ot 5^:
64,
any banking association established in the district for i3g stat. l .,
which the court is held, under the provisions of Title Act Feb. 18,
“ T h e N a t i o n a l B a n k s , ” to enjoin the Comptroller ofgfjt.’ l . , 833? 18
8.
the Currency, or any receiver acting under his direction.
as provided by said Title.
N ote.— Proceedings to enjoin Comptroller authorized by section
5237.

WHERE SUCH PROCEEDINGS MUST BE BROUGHT.
196. Sec. 736.— A ll proceedings by any national bank- Act June 3,
ing association to enjoin the Comptroller o f the Cur-J®®4» 5^
C
rency, under the provisions of any law relating to national 13 ’ stat. l.|
banking associations, shall be had in the district where 115, 116,
such association is located.
88020°— 11-------6




81

82

AC T S OF A G E N E R AL N A T U R E .

SEALED CERTIFICATES OF COMPTROLLER COMPETENT
EVIDENCE.
Act

se6
c!

June

2

3,

;

stat. L.f ioo.

197. Sec. 884.— Every certificate, assignment, and conveyance executed by the Comptroller of the Currency, in
pursuance o f law, and sealed with his seal of office, shall
be received in evidence in all places and courts; and all
copies o f papers in his office, certified by him and authen­
ticated by the said seal, shall in all cases be evidence
equally with the originals. An impression o f such seal
directly on the paper shall be as valid as if made on wax
or wafer.

CERTIFIED COPY OF ORGANIZATION CERTIFICATE AS
EYIDENCE.
A c t Ju n e 3,
198. Sec. 885.— Copies of the organization certificate of
se6 6; 1? 3 any national banking association, duly certified by the
c;
siat. l . , ioi. Comptroller of the Currency, and authenticated by his
seal of office, shall be evidence in all courts and places
within the jurisdiction of the United States o f the exist­
ence of the association, and of every matter which could
be proved by the production of the original certificate.

T a x

o n

S ta t e

199. 3408. Tax on circulation.
200. 3411. Circulation; when exempted
from tax.
201. 3412,3413. Superseded b y
act
February 8 , 1875.
202. Act February 8,1875. Tax on cir­
culation of banks other than
national.
203. Act February 8 , 1875.
Tax on
notes of State banks, munici­
pal corporations, etc.

B a n k

C ir c u l a t io n .

204. Act February 8 , 1875. Banks’ re­
turns, payment of tax, pen­
alties.
205. 3414. Semiannual return by banks.
206. 3415. Failure to make return.
Commissioner to estimate.
207. 3416. State banks converted into
national
banks.
Returns;
how made.
208. 3417. Tax provisions restricted.
209. Act March 1, 1879. Taxes on in­
solvent banks.

TAX ON CIRCULATION.
Act J u n e 3 0 ,
199. Sec. 3408.— There shall be levied, collected and
l ! 4 stat n L ’ paid, as hereafter provided.

277.
Ac
1866,t

First. * * *
C n / iA n /"I
feecond. * * *
137 146 *’ L”
Third. A tax of one-twelfth of one per centum each
A c t J u n e 6, month upon the average amount of circulation issued by
i 772,stat' 3 ; any
l
association, corporation, company or person,
625.
‘
’’ including as circulation all certified checks and all notes
and other obligations calculated or intended to circulate
or to be used as money, but not including that in the vault
o f the bank, or redeemed and on deposit for said bank;
and an additional tax of one-sixth of one per centum each
month upon the average amount of such circulation,
issued as aforesaid, beyond the amount of ninety per
centum of the capital of any such bank, association, cor­
poration, company, or person.
In the case of banks with branches, the tax herein pro­
vided shall be assessed upon the circulation of each branch
J u ly 1 3 ,
sec. 9 ;




83

ACTS OF A GENER AL N A T U R E .

severally, and the amount of capital of each branch shall
be considered to be the amount allotted to it.
N o t e .— The first and second clauses in this section related to
taxes on deposits and capital stock and were repealed by act of
March 3, 1883.

CIRCULATION WHEN EXEMPTED FROM TAX.
200. Sec. 3411.—Whenever the outstanding circulation i Act M
ar To,,
a
a
1 1
• i•
i•
l o OO,
C.
of any bank, association, corporation, company, or person s o c . 14; 1 3
is reduced to an amount not exceeding five per centum of stActL 6
Juiy is,
the chartered or declared capital existing at the time thei866, c. 184,
same was issued, said circulation shall be free from taxa- stat.* l ., 146.
tion; and whenever any bank which has ceased to issue
notes for circulation deposits in the Treasury of the United
States, in lawful money, the amount of its 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.
201. Secs. 3412, 3413.
Superseded by act February

8

, 1875.

TAX ON CIRCULATION OF BANKS OTHER THAN NATIONAL
BANKS. ACT FEBRUARY 8, 1875.
202. Sec. 19.— That every person, firm, association, Act Feb. 8,
other than national-bank associations, and every corpora-st7 f; io ; is
<
tion, State bank, or State banking association shall pay a stat- L- 8ntax of ten per centum on the amount o f their own notes
used for circulation and paid out by them.

TAX ON NOTES OF STATE BANKS, MUNICIPAL CORPORA­
TIONS, ETC., USED AS CIRCULATION AND PAID OUT
BY BANKS. ACT FEBRUARY 8, 1875.
203. Sec. 20.—That every such person, firm, association, lg^ t ^eb-3 8:
6
corporation, State bank, or State banking association, and sec! 2 0 ; 1 8
also every national banking association, shall pay a likestat* L” 311‘
tax of ten per centum on the amount of notes of any
person, firm, association other than a national banking
association, or o f any corporation, State bank, or State
banking association, or of any town, city, or municipal
corporation, used for circulation and paid out by them.

BANKS’ RETURNS; PAYMENT OF TAX PENALTIES.
FEBRUARY 8, 1875.

ACT

204. Sec. 21.—That the amount of such circulating 18^ f R eb-2 8:
c fc 1
notes, and of the tax due thereon, shall be returned, andis stat.' l.\
the tax paid at the same time, and in the same manner,311*
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.

SEMIANNUAL RETURN BY BANKS.
205. Sec. 3414.— A true and complete return of the igAct June^o,
monthly amount of circulation [of deposits, and of capi-sec. ’ no; 1 3
tal\, as aforesaid, and of the monthly amount of notes of stActL u y 13,
J i2
persons, town, city, or municipal corporations, State i|66, c. 18^
banks, or State banking associations paid out as aforesaid stat.' l., 147.




84

A CTS OF A G E N E R AL N A T U R E .

1867 4c^8Fsec’ ^or
Previ° us six months, shall be made and rendered in
2 ; 15 stat L duplicate on the first day o f December and the first day
.i
6‘ Act June 6, of June, by each of such banks, associations, corporations,
sec2 ,3 7 • 31 7 c o m P a n ies) o r

persons, with a declaration annexed thereto,
l., 256. under the oath of such person, or o f the president or
1872,* D
c it,’ cashier of such bank, association, corporation, or comec*
!£ct‘ L5;4031 7 pany, in such form and manner as may be prescribed by
the Commissioner o f Internal Revenue, that the same
contains a true and faithful statement of the amounts
subject to tax, as aforesaid; and one copy shall be trans­
mitted 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 o f business, and one
copy to the Commissioner of Internal Revenue.
stat.

N ote .— Italicized words repealed by act March 3, 1883. “ That
the taxes herein specified imposed by the laws now in force be, and
the same are hereby, repealed, as hereinafter provided, nam ely:
On capital and deposits of banks, bankers, and national banking
associations, except such taxes as are now due and payable.”

FAILURE TO MAKE RETURN.
MATE.

COMMISSIONER TO ESTI­

Act June 30, 206. Sec. 3415.—In default of the returns provided in
lee.4' lio ; 1 i3 the preceding section, the amount of circulation [ deposit,
7
StActL 8 caP^a^ ') and n°tes of persons, town, city, and municipal
ju?7 i3
\
1866, cu yi8i; corporations, State banks, and State banking associations
stat.* l.? ; 46. 4 Paid out, as aforesaid, shall be estimated by the Commisi
187^ ^
is’ si°ner
Internal Revenue, upon the best information he
s e c ! 2 ; 1 7 can obtain.
And for any refusal or neglect to make
stat. l., 402. return an(j payment any such bank, association, corpora­
tion, company, or person so in default shall pay a penalty
o f two hundred dollars, besides the additional penalty and
forfeitures provided in other cases.
N o t e .— See note under preceding section.

STATE BANKS CONVERTED INTO NATIONAL BANKS; RE­
TURNS, HOW MADE.

18654 ^ ' 7 8
®ec* 3416.—Whenever any State bank or banking
sec! 1 4 ; 1 3 association has been converted into a national banking
StActL 6 association, and such national banking association has asJufy i3,
1866, c. i84j sumed the liabilities of such State bank or banking assostat.’ l., i46. ciation, including the redemption of its bills, by any
agreement or understanding whatever with the represent­
atives of such State bank or banking association, such
national banking association shall be held to make the
required return and payment on the circulation outstand­
ing, so long as such circulation shall exceed five per
centum of the capital before such conversion of such State
bank or banking association.
TAX PROVISIONS RESTRICTED.
1864 * Ju ei ?3
cn
sec. *n o ; 13

®08. Sec. 3417 [as amended 1875].—The provisions of
this chapter relating to the tax on the [deposits, capital,
StActL 8 3, and] circulation of banks and to their returns, except as
ju?y i
se6 ’ o • 1i 4 contained in sections thirty-four hundred and ten, thirtyc
stat.* l., 146. four hundred and eleven, thirty-four hundred and twelve.




85

ACTS OF A GENER AL N A T U R E .

thirty-four hundred and thirteen, and thirty-four hunt^Feb. 18^
dred and sixteen, and such parts of sections thirty-four stat.’ l ., 3 1 9. "
hundred and fourteen and thirty-four hundred and fif­
teen 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 “ N a t i o n a l B a n k s .”
N o t e .— See note under section 3414 stating that taxes on de­
posits and capital were repealed by act March 3, 1S83.

TAXES ON INSOLVENT BANKS.

ACT MARCH 1, 1879.

209.
Sec. 22.—That whenever and after any bank has
^ari 25
ceased to do business by reason of insolvency or bank-sec’ 2 2 ; 2 c
ruptcy, no tax shall be assessed or collected, or paid into stat L” 351‘
the Treasury of the United States, on account of such
bank, which shall diminish the assets thereof necessary
for the full payment of all its depositors; and such tax
shall be abated from such national banks as are found by
the Comptroller of the Currency to be insolvent; and the
Commissioner of Internal Revenue, when the facts shall
so appear to him, is authorized to remit so much of said
tax against insolvent State and savings banks as shall be
found to affect the claims of their depositors.
N ote .— Part of section omitted superseded by act of March 3,

1883.

T

ax

on

U

n it e d

S tates

and

N a t io n a l - B a n k

210. 3701. Obligations of the United
States exempt from taxation.

N

o tes.

211. Act August 13, 1894.
Nationalbank notes and notes and cer­
tificates of the United States
circulating as currency sub­
ject to State taxation.

OBLIGATIONS OF UNITED STATES EXEMPT FROM TAXA­
TION.

210. Sec. 3701.—All stocks, bonds, Treasury notes, and Act Feb. 25,
other obligations of the United States shall be exempt j| 62; 2 '. 1 2
®c
from taxation bv or under State or municipal or local au- Act Mar. 346.
stat. l . /
J
1
3,
thonty.
1863,
c.
73,
sec. 1 ; 12 Stat. L., 710. Act Mar. 3, 1864, c. 17, sec. 1 ; 13 Stat. L., 13.
Act June 30, 1864, c. 172, sec. 1 ; 13 Stat. L., 218. Act Jan. 28, 1865,
c. 22, sec. 1 ; 13 Stat. L., 425. Act Mar. 3, 1865, c. 77, sec. 2 ; 13 Stat.
L., 469. Act July 14, 1870, c. 256, sec. 1 ; 16 Stat. L„ 272.

NATIONAL-BANK NOTES AND NOTES AND CERTIFICATES
OF THE UNITED STATES CIRCULATING AS CUR­
RENCY SUBJECT TO STATE TAXATION. ACT AUGUST
18, 1894.

211. Sec. 1.—That circulating notes of national bank- Act Aug. 13,
mg associations and United States legal-tender notes and 28 statc‘ l.’,
other notes and certificates of the United States, payable 278on demand and circulating or intended to circulate as
currency, and gold, silver, or other coin shall be subject
to taxation as money on hand or on deposit under the
laws of any State or Territory: Provided, That any such
taxation shall be exercised in the same manner and at
the same rate that any such State or Territory shall tax




86

ACTS OF A G ENER AL N A T U R E .

money or currency circulating as money within its juris­
diction.
1894 * se<f’ 2S
:
®EC'
^ a t ^ ie provisions of this act shall not be
28 'stat.* l . ’ deemed or held to change existing laws in respect o f the
,

‘278*

taxation of national banking associations.
R estrictions on N otes L ess T h a n O ne D ollar.

1862* cU 96
lyi
^ec* ^583.—No person shall make, issue, circulate,
s e c ! 2 ; 1 2 or pay out any note, check, memorandum, token, or other
stat. l ., 592. obligation for a ]ess sum than one dollar, intended to
circulate as money or to be received or used in lieu of
lawful money of the United States; and every person so
offending shall be fined not more than five hundred dol­
lars or imprisoned not more than six months, or both, at
the discretion of the court.

L egal T ender .
213. 3584. Foreign coins.
214. 3585. Gold coin of the United
States.
215. 3586. Superseded by act February
28, 1878, and act June 9,
1879.
216. Act February 28, 1878. Author­
izing coinage of standard sil­
ver dollars and making them
legal tender.

217. Act June 9, 1879. Subsidiary sil­
ver coins.
218. 3587. Minor coins.
219. 3588. United States notes.
220. 3589. Demand Treasury notes.
221. 3590. Interest-bearing notes.
222. 5182. See section 5182 under na­
tional-bank act.
223. Act July 12, 1882. Gold certifi­
cates.

FOREIGN COINS.
1857 4 Feb- ie
c
sec! 3 ’; i i
Stat. L., 163.

*13. Sec. 3584.—No foreign gold or silver coins shall be
a legal tender in payment of debts.
r J

GOLD COIN OF THE UNITED STATES.
1873 *

ceb‘i 3 i’

^ec‘

—The gold coins of the United States
tender in all payments at their nominal
below the standard weight and limit of
tolerance provided by law for the single piece, and when
reduced in weight below such standard and tolerance,
shall be a legal tender at valuation in proportion to their
actual weight.
215. Sec. 3586.—

s e c ! 1 4; 17 shall be a legal
stat. l., 426. v a i ue when not

Superseded by act February 28, 1878, and act June 9, 1879.

AUTHORIZING COINAGE OF STANDARD SILYER DOLLARS
AND MAKING THEM LEGAL TENDER. ACT OF FEBRUARY 28, 1878.

lgAct Feb. 28, 216. Sec. 1.—That there shall be coined at the several
sec! i ; 2 0 mints o f the United States, silver dollars of the weight of
stat. l ., 25.
grains Troy of standard silver * * *; which
coins together with all silver dollars heretofore coined by
the United States, of like weight and fineness, shall be a
legal tender, at their nominal value, for all debts and
dues, public and private, except where otherwise ex­
pressly stipulated in the contract.




87

ACTS OF A GENERAL N A T U R E .

SUBSIDIARY SILYER COINS.

ACT OF JUNE 9, 1879.

217. Sec. 3.—That the present silver coins of the United
June12’
c
States of smaller denominations than one dollar shall sec! 3 '; 2 1
hereafter be a legal tender in all sums not exceeding ten stat* L 8‘
m
dollars in full payment of all dues public and private.
MINOR COINS.

218. Sec. 3587.—The minor coins of the United States 18^ c^-J2’
shall be a legal tender, at their nominal value, for any sec! 1 6 ; 17
amount not exceeding twenty-five cents in any one pay- stat L” 427‘
ment.
UNITED STATES NOTES.

219. Sec. 3588.—United States notes shall be lawful
Febc
money, and a legal tender in payment of all debts,
Lr 2
and private, within the United States, except for duties Act Juiy°it,
on imports and interest on the public debt.
i|62’ < . ^
[*
Stat. T,., 5:52. Ros. Jan. 17, 1863, No. 9, 12 Stat. L., 823.
1863, c. 73, sec. 3 ; 12 Stat. L., 711.

Act Mar. 3,

DEMAND TREASURY NOTES.

220. Sec. 3589.—Demand Treasury notes authorized by
sic
the act of July 17, 1861, chapter 5, and the act of Febru- 1 ; 12 stat. l.!
ary 12, 1862, chapter 20, shall be lawful money and a 25AC Feb. 12,
t
legal tender in like manner as United States notes.
stat ’ cl 2° &8
32
Act Feb. 25, 1862, c. 33, sec. 1 ; 12 Stat. L., 345.
c. 45, see*. 2 ; 12 Stat. L.f 370.

Act Mar.* 17,*’ 1862*

INTEREST-BEARING NOTES.

221. Sec. 3590.—Treasury notes issued under the au- Act Mar. a,
thority of the acts of March 3, 1863, chapter 73, and June I|63! 2 • 12
C
30, 1864, chapter 172, shall be legal tender to the same
71
1
extent as United States notes, for their face value, exclud- 1864, c n 72!
U ei
ing interest: Provided, That Treasury notes issued under
the act last named shall not be a legal tender in payment
or redemption of any notes issued by any bank, banking
association, or banker, calculated and intended to circu­
late as money.
FOR WHAT DEMANDS NATIONAL-BANK NOTES MAY BE
RECEIYED.

222. Sec. 5182.—
See sod ion 51S2,

N o t e .—

GOLD CERTIFICATES.

Xational-Bank Act, page 39, ante.

ACT JULY 12, 1882.

223. Sec. 12.—That the Secretary of the Treasury is Act J u ly 12,
authorized and directed to receive deposits of gold coin 22 stat.* l.!
with the Treasurer or assistant treasurers of the United166*
States, in sums of not less than twenty dollars, and to
issue certificates therefor in denominations of not less
than twenty dollars each, corresponding with the denomi­
nations of United States notes. The coin deposited for or
representing the certificates of deposit shall be retained
in the Treasury for the payment of the same on demand.
Said certificates shall be receivable for customs, taxes,
and all public dues, and when so received may be reis­
sued; and such certificates, as also silver certificates, when
held by any national banking association, shall be counted




88

ACTS OF A G E N E R AL N A T U R E .

as part of its lawful reserve; and no national banking
association shall be a member of any clearing house in
which such certificates shall not be receivable in the settle­
ment of clearing-house balances: Provided, That the Sec­
retary of the Treasury shall suspend the issue of such
gold certificates whenever the amount of gold coin and
gold bullion in the Treasury reserved for the redemp­
tion of United States notes falls below one hundred mil­
lions of dollars; and the provisions o f section fifty-two
hundred and seven of the Revised Statutes shall be ap­
plicable to the certificates herein authorized and directed
to be issued.
N ote .— See section 6 of the Currency Act of March 14, 1900, as
amended March 4, 1907, post, page 97, for additional provisions
relating to gold certificates. Gold and silver certificates are not
legal tender, but are receivable for all public dues.

G

overnm ent

224. 3620. Duty of disbursing officers.
225. 3847. Provisions for deposits by
certain postmasters.
226. 4046. Penalty for misapplication
of money-order funds.
227. 5153. See section 5153 under na­
tional-bank act.

D

e p o s it a r ie s .

228. 5488. Penalty for unauthorized
deposit of public money.
229. 5497. Penalty for unauthorized
receipt or use of public
money.

DUTY OF DISBURSING OFFICERS.

14, 224. Sec. 3620 [as amended 1877].—It shall be the duty
se6 ’. i; 1i 4 o f every disbursing officer having any public money inc
stat. l., 04. trusted to him for disbursement to deposit the same with
1877.* Fc.b‘ go! the Treasurer or some one of the assistant treasurers of
Itat'L1^ 19 the United States, and to draw for the same only as it
may be required for payments to be made by him in pur­
suance of law; and draw for the same only in favor
o f the persons to whom payment is made, and all trans­
fers from the Treasurer of the United States to a dis­
bursing officer shall be by draft or warrant on the
Treasury or an assistant treasurer of the United States.
In places, however, where there is no Treasurer or assist­
ant treasurer, the Secretary of the Treasury may, when he
deems it essential to the public interest, specially au­
thorize in writing the deposit o f such public money in
any other public depository, or, in writing, authorize the
same to be kept in any other manner and under such
rules and regulations as he may deem most safe and
effectual to facilitate the payments to public creditors.
Act June

PROVISIONS FOR DEPOSITS BY CERTAIN POSTMASTERS.
1873 * c*ar272
17 stat. l.;

6°4.

^ec* 3847.—Any postmaster, having public money
belonging to the Government, at an office within a county
where there are no designated depositaries, treasurers of
mints, or Treasurer or assistant treasurers of the United
States may deposit the same, at his own risk and in his
official capacity, in any national bank in the town, city, or




ACTS OF A GENER AL N A T U R E .

89

«ounty where the said postmaster resides; but no author­
ity or permission is or shall be given for the demand or
receipt by the postmaster, or any other person, of interest,
directly or indirectly, on any deposit made as herein de­
scribed; and every postmaster who makes any such de­
posit shall report quarterly to the Postmaster-General
the name o f the bank where such deposits have been made,
and also state the amount which may stand at the time
to his credit.
PENALTY FOR
FUNDS.

MISAPPLICATION

OF

MONEY-ORDER

226. Sec. 4046.— Every postmaster, assistant, clerk, or Act Jun| 3|*
other person employed in or connected with the business sec. *122 ; 17
or operations of any money-order office who converts to st^\L£r299’o
his own use, in any way whatever, or loans, or deposits 1873, c.a2 7 2 ;
in any bank, except as authorized by this Title,® or exstat L»
changes for other funds, any portion of the money-order
funds, shall be deemed guilty of embezzlement, and any
such person, as well as every other person advising or
participating therein, shall, for every such offense, be im­
prisoned for not less than six months nor more than ten
years, and be fined in a sum equal to the amount embez­
zled; and any failure to pay over or produce any moneyorder funds intrusted to such person shall be taken to be
prima facie evidence of embezzlement; and upon the trial
of any indictment against any person for such embezzle­
ment it shall be prima facie evidence of a balance against
him to produce a transcript from the money-order ac­
count books of the Sixth Auditor. But nothing herein
contained shall be construed to prohibit any postmaster
depositing, under the direction of the Postmaster-Gen­
eral, in a national bank designated by the Secretary of the
Treasury for that purpose, to his owT credit as postmas­
n
ter, any money-order or other funds in his charge, nor
prevent his negotiating drafts or other evidences of debt
through such bank, or through United States disbursing
officer, or otherwise, when instructed or required to do so
by the Postmaster-General for the purpose of remitting
surplus money-order funds from one post-office to an­
other, to be used in payment of money-orders. Disburs­
ing officers of the United States shall issue, under regu­
lations to be prescribed by the Secretary of the Treasury,
duplicates of lost checks drawn by them in favor of any
postmaster on account of money-order or other public
funds received by them from some other postmaster.
NATIONAL BANKING ASSOCIATIONS TO BE DEPOSITA­
RIES OF PUBLIC MONEYS.

227. Sec. 5153 [as amended 1907].—
N ote .— See section 5153 under “ N ational-bank act.”

a “ This Title ” The Postal Service.




90

ACTS OF A GE N E R AL N A T U R E .

PENALTY FOR UNAUTHORIZED DEPOSIT OF PUBLIC
MONEY.

186? J nei 22
c
® 5488.—Every disbursing officer of the United
ec*
sec! 2 ; 14 States who deposits any public money intrusted to him in
stat. l . , 64. a n y p i a c e o r j n a n y m a n n e r ? except as authorized by law,
or converts to his own use in any way whatever, or loans
with or without interest, or for any purpose not pre­
scribed by law withdraws from the Treasurer or any as­
sistant treasurer, or any authorized depositary, or for any
purpose not prescribed by law transfers or applies any
portion of the public money intrusted to him, is, in every
such act, deemed guilty o f an embezzlement of the money
so deposited, converted, loaned, withdrawn, transferred,
or applied; and shall be punished by imprisonment with
hard labor for a term not less than one year nor more
than ten years, or by a fine of not more than the amount
embezzled or less than one thousand dollars, or by both
such fine and imprisonment.
N ote .— Sections 5489 to 5496 do not refer to national banks.

PENALTY FOR UNAUTHORIZED RECEIPT OR USE OF
PUBLIC MONEY.
Act June 14,
229. Sec. 5497 [as amended 1879].—Every banker,
e e6 !* °3; 1 i24 broker, or other person not an authorized depositary of
c
2
stat.* l., 65. public moneys, who knowingly receives from any disbursi 879 *c.I4 2 ; 20 ^ officer, or collector of internal revenue, or other agent
nS
stat.’ l*., 280. of the United States, any public money on deposit, or by
way of loan or accommodation, with or without interest,
or otherwise than in payment of a debt against the
United States, or who uses, transfers, converts, appropri­
ates, or applies any portion of the public money for any
purpose not prescribed by law, and every president, cash­
ier, teller, director, or other officer of any bank or banking
association, who violates any of the provisions of this sec­
tion, is guilty of an act of embezzlement of the public
money so deposited, loaned, transferred, used, converted,
appropriated, or applied, and shall be punished as pre­
scribed in section fifty-four hundred and eighty-eight.
* * *
N ote .— For duties and liabilities of depositaries see note under
sec. 5153, page 25, ante.

F orgeries, F rauds, etc .
230. 5413. Obligations of the United
States defined.
231. 5414. Forging or counterfeiting
United States securities.
232. 5415. Counterfeiting national-bank
notes.
233. 5430. Using plates to print notes
without authority.
234. 5431. Penalty for passing coun­
terfeit circulation.
235. 5432. Penalty for taking unau­
thorized impression of tools.




236. 5433. Penalty for having such im­
pressions.
237. 5434. Penalty for dealing in coun­
terfeit circulation.
238. 5437. Issuing circulation o f ex­
pired associations; penalty
therefor.
239. Act June 30, 1876.
Fraudulent
notes to be so marked by
United States officers and offi­
cers of national banks.

ACTS OF A GENERAL N A T U R E .

91

OBLIGATIONS OF THE UNITED STATES DEFINED.

230. Sec. 5413 [as amended 1875, 1877].—The words 18^ J^n
c e1|§;
“ obligation or other security of the United States 5 shall sec. ’ 13
5
be held to mean all bonds, certificates of indebtedness, “ *Act Feb. is,
national-bank currency, coupons, United States notes,
£ 8 2>
• 3 \.18
Treasury notes, fractional notes, certificates o f deposit, Act Feb. 27,
bills, checks, or drafts for money drawn by or upon au- stat/ l.,6 . 0
253 1
thorized officers of the United states, stamps and other
representatives o f value, of whatever denomination,
which have been or may be issued under any act of Con­
gress.
FORGING OR COUNTERFEITING UNITED STATES SECU­
RITIES.

231. Sec. 5414.— Every person who, with intent to de- ^ 4*
fraud, falsely makes, forges, counterfeits, or alters any |e c !
obligation or security of the United States shall be pun”
ished by a fine o f not more than five thousand dollars
and by imprisonment at hard labor not more than fifteen
years.

^

COUNTERFEITING NATIONAL-BANK NOTES.

232. Sec. 5415.—Every person who falsely makes, lg£ct Feb. 25,
forges, or counterfeits, or causes or procures to be made, sec. * 57 ; 12
forged, or counterfeited, or willingly aids or assists in stActLjune°*3,
falsely making, forging, or counterfeiting, any note in *!6*
*
imitation of, or purporting to be in imitation of, the cir- stat.’ L., 117.
culating notes issued by any banking association now or
hereafter authorized and acting under the laws of the
United States; or who passes, utters, or publishes, or at­
tempts 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
cicrulating notes, or passes, utters, or publishes, or at­
tempts to pass, utter, or publish as true, any falsely
altered or spurious circulating note issue, or purporting
to have been issued, by any such banking association,
knowing the same to be falsely altered or spurious, shall
be imprisoned at hard labor not less than five years nor
more than fifteen years, and fined not more than one
thousand dollars.
N ote.— Sections 541G to 5429, inclusive, do not refer to nationalbank circulation.

USING PLATES TO PRINT NOTES WITHOUT AUTHORITY.

233. Sec. 5430.— Every person having control, custody, ]g£ct Junejso,
or possession of any plate, or any part thereof, from sec! 1 1 ; 1 3
which has been printed, or which may be prepared by stat* L 221,
m
direction o f the Secretary of the Treasury for the pur­
pose 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



92

ACTS OF A GENERAL, N A T U R E .

thereof, except as may be printed for the use of the United
States by order of the proper officer thereof; and every
person who engraves, or causes or procures to be en­
graved, or assists in engraving, any plate in the likeness
of any plate designed for the printing of such obligation
or other security, or who sells any such plate, or who
brings into the United States from any foreign place
any such plate, except under the direction o f the Secre­
tary o f the Treasury or other proper officer, or with any
other intent, in either case, than that such plate be used
for the printing o f the obligations or other securities o f
the United States; or who has in his control, custody, or
possession any metallic plate engraved after the simili­
tude o f any plate from which anv such obligation or other
security has been printed, with intent to use such plate, or
suffer the same to be used in forging or counterfeiting
any such obligation or other security, or any part thereof;
or who has in his possession or custody, except under
authority from the Secretary o f the Treasury or other
proper officer, any obligation or other security, engraved
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
every person who prints, photographs, or in any other
manner makes or executes, or causes to be printed, pho­
tographed, made, or executed, or aids in printing, photo­
graphing, making, or executing any engraving, pho­
tograph, print, or impression in the likeness o f any such
obligation or other security, or any part thereof, or who
sells any such engraving, protograph, print, or impres­
sion, except to the United States, or who brings into the
United States from any foreign place any such engrav­
ing, photograph, print, or impression, except by direc­
tion o f some proper officer o f the United States, or who
has or retains in his control or possession, after a dis­
tinctive paper has been adopted by the Secretary o f the
Treasury for the obligations and other securities o f the
United States, any similar paper adapted to the making
of any such obligation or other security, except under
the authority of the Secretary of the Treasury or some
other proper officer of the United States, shall be pun­
ished by a fine o f not more than five thousand dollars, or
by imprisonment at hard labor not more than fifteen
years, or by both.
PENALTY FOR PASSING COUNTERFEIT CIRCULATION.

so, 234. Sec. 5431.—Every person who, with intent to deb€h?’. io j 1! 2 fraud, passes, utters, publishes, or sells, or attempts to
^
stat. l . , 221. p a s sj utter, publish, or sell, or brings into the United
States with intent to pass, publish, utter, or sell, or keeps
in possession or conceals, with like intent, any falsely
made, forged, counterfeited, or altered obligation, or other
security of the United States, shall be punished by a fine
of not more than five thousand dollars and by imprison­
ment at hard labor not more than fifteen years.
Act June




ACTS OF A GENER AL N A T U R E .

93

PENALTY FOR TAKING UNAUTHORIZED IMPRESSION OF
TOOLS.

235. Sec. 5432.—Every person who, without authority 18g^t ^ 2o
from the United States, takes, procures, or makes, uPo n |®a® 'L 4 ^ 83 ^
lead, foil, wax, plaster, paper, or any other substance or a ' ”
material, an impression, stamp, or imprint of, from, or
by the use of, any bedplate, bedpiece, die, roll, plate, seal,
type, or other tool, implement, instrument, or thing used
or fitted, or intended to be used, in printing, stamping, or
impressing, or in making other tools, implements, instru­
ments, or things, to be used, or fitted or intended to be
used, in printing, stamping, or impressing any kind or
description o f 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 bv imprisonment at hard labor not more than
ten years, or by a fine of not more than five thousand
dollars, or both.
PENALTY FOR HAYING SUCH IMPRESSIONS.

236. Sec. 5433.— Every person who, with intent to de- lg £ ct Feb. 2?>,
fraud, has in his possession, keeping, custody, or control,sec! 5 * 14
;
without authority from the United States, any imprint,stat L" 384,
stamp, or impression, taken or made upon any substance
or material whatsoever, of any tool, implement, instru­
ment, or thing used, or fitted, or intended to be used for
any of the purposes mentioned in the preceding section;
or who, with intent to defraud, sells, gives, or delivers any
such imprint, stamp, or impression to any other person,
shall be punished by imprisonment at hard labor not more
than ten years, or by a fine of not more than five thousand
dollars.
PENALTY FOR DEALING IN COUNTERFEIT CIRCULATION.

237. Sec. 5434.— Every person who buys, sells, ex- Act ^eb.^5,
changes, transfers, receives, or delivers any false, forged, s e c ! i; 1 4
counterfeited, or altered obligation or other security o f stat*L' 383*
the United States, or circulating note of any banking as­
sociation organized or acting under the laws thereof,
which has been or may hereafter be issued by virtue o f
any act o f 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.
N ote .— Sections 5435 and 5136 do not refer to national-bank
circulation.

ISSUING CIRCULATION OF EXPIRED ASSOCIATIONS, PEN­
ALTY THEREFOR.

238. Sec. 5437.— In all cases where the charter of a n y ^ ^ cU i 85
l2
corporation which has been or may be created by act of sec. i ; 5 stat!
Congress has expired or may hereafter expire, if any d i-L” 297‘
rector, officer, or agent of the corporation, or any trustee
thereof, or any agent o f such trustee, or any person having
in his possession or under his control the property o f the



94

ACTS OP A G EN ER AL N A T U R E .

corporation for the purpose o f paying or redeeming its
notes and obligations, knowingly issues, reissues, or utters
as money, or in any other w ay knowingly puts in circula­
T
tion any bill, note, check, draft, or other security pur­
porting to have been made by any such corporation whose
charter has expired, or by any officer thereof, or purport­
ing to have been made under authority derived therefrom,
or if any person knowingly aids in any such act, he shall
be punished by a fine o f not more than ten thousand dol­
lars, or by imprisonment not less than one year nor more
than five years, or by both such fine and imprisonment.
But nothing herein shall be construed to make it unlawful
for any person, not being such director, officer, or agent
o f the corporation, or any trustee thereof, or any agent of
such trustee, or any person having in his possession or
under his control the property of the corporation for the
purpose hereinbefore set forth, who has received or may
hereafter receive such bill, note, check, draft, or other se­
curity, bona fide and in the ordinary transactions of busi­
ness to utter as money and otherwise circulate the same.
FRAUDULENT NOTES TO BE SO MARKED BY UNITED
STATES OFFICERS AND OFFICERS OF NATIONAL
BANKS. ACT JUNE 30, 1876.
1876* J
se?e 3°;

^39. Sec. 5.—That all United States officers charged
19 stat. l., 64! w
’ith the receipt or disbursement o f public moneys, and
all officers o f national banks, shall stamp or write in plain
letters the word “ counterfeit,” “ altered,” or “ worthless,”
upon all fraudulent notes issued in the form of and in­
tended to circulate as money which shall be presented at
their places of business; and if such officer shall wrong­
fully stamp any genuine note of the United States, or of
the national banks, they shall, upon presentation, redeem
such notes at the face value thereof.
C

urren cy

A

ct,

240. Section 1. Gold dollar declared to
be standard unit of value.
241. Sec. 2. Secretary of Treasury to
set apart and maintain a gold
reserve of one hundred and
fifty million dollars in gold
coin and bullion for the re­
demption of United States
notes and notes issued under
the act of July 14,1890. May
sell bonds to replenish re­
serve.
242. Sec. 3. Silver dollar to remain le­
gal tender.
243. Sec. 4. Divisions of issue and re­
demption established.
244. Sec. 5. When silver dollars are
coined from bullion pur­
chased under act of July 14,
1890, an equal amount of
Treasury notes to be canceled
and silver certificates issued.




A

ppro ved

245. Sec.

246.
247.
248.
249.

250.
251.

252.

253.

M

arch

14, 1900.

6 . Issue of gold certificates.
Issue of gold certificates pay­
able to order.
Sec. 7. Issue of silver certificates.
Sec.' 8 . Subsidiary silver coinage.
Sec. 0. Itecoinage of uncurrent
subsidiary silver coin.
Sec. 10. Amends section 5138, Re­
vised Statutes.
(See said
section under national-bank
act.)
Sec. 11. Refunding of United
States bonds.
Sec. 12. This section is inserted
in national-bank act follow­
ing section 5171, which it su­
persedes.
Sec. 13. See sec. 214, Revised
Statutes,
under
national
bank act.
Sec. 14. International bimetallism.

ACTS OF A GENERAL NATURE.

95

An Act To define and fix the standard of value, to maintain the
parity of all forms of money issued or coined by the United
States, to refund the public debt, and for other purposes.

GOLD DOLLAR DECLARED TO BE STANDARD UNIT OF
YALUE.
2 4 0 . Be it enacted by the Senate and House of RepveAct Mar. 14,
sentatives of the United States of America in Congress 31 statS0L., 45!
assembled, That the dollar consisting o f twenty-five and
eight-tenths grains of gold nine-tenths fine, as established
by section thirty-five hundred and eleven of the Revised
Statutes of the United States, shall be the standard unit
o f value, and all forms of money issued or coined by the
United States shall be maintained at a parity of value
with this standard, and it shall be the duty of the Secre­
tary of the Treasury to maintain such parity.

SECRETARY OF TREASURY TO SET APART AND MAINTAIN
A GOLD RESERVE OF ONE HUNDRED AND FIFTY
MILLION DOLLARS IN GOLD COIN AND BULLION FOR
THE REDEMPTION OF UNITED STATES NOTES AND
NOTES ISSUED UNDER ACT OF JULY 14, 1890. MAY
SELL BONDS TO REPLENISH RESERYE.
2 4 1 . Sec. 2 .— That United States notes, and Treasury ig Act Mar. 14,
notes issued under the Act of July fourteenth, eighteen 31 statseL., 45!
hundred and ninety, when presented to the Treasury for
redemption, shall be redeemed in gold coin of the stand­
ard fixed in the first section of this Act, and in order to
secure the prompt and certain redemption of such notes
as herein provided it shall be the duty of the Secretary of
the Treasury to set apart in the Treasury a reserve fund
of one hundred and fifty million dollars in gold coin and
bullion, which fund shall be used for such redemption
purposes onty, and whenever and as often as any o f said
notes shall be redeemed from said fund it shall be the
duty of the Secretary of the Treasury to use said notes so
redeemed to restore and maintain such reserve fund in
the manner following, to w it: First, by exchanging the
notes so redeemed for any gold coin in the general fund of
the Treasury; second, by accepting deposits of gold coin
at the Treasury or at any subtreasury in exchange for the
United States notes so redeemed; third, by procuring gold
coin by the use of said notes, in accordance with the pro­
visions of section thirty-seven hundred of the Revised
Statutes o f the United States. Tf the Secretary of the
Treasury is unable to restore and maintain the gold coin
in the reserve fund by the foregoing methods, and the
amount o f such gold coin and bullion in said fund shall at
any time fall below one hundred million dollars, then it
shall be his duty to restore the same to the maximum sum
o f one hundred and fifty million dollars by borrowing
money on the credit of the United States, and for the
debt thus incurred to issue and sell coupon or registered
bonds of the United States, in such form as he may pre­
scribe, in denominations of fifty dollars or any multiple




96

A CTS OF A GE N E R AL N A T U R E .

thereof, bearing interest at the rate of not exceeding three
per centum per annum, paybale quarterly, such bonds to
be payable at the pleasure o f the United States after one
year from the date of their issue, and to be payable, prin­
cipal and interest, in gold coin of the present standard
value, and to be exempt from the payment o f all taxes or
duties of the United States, as well as from taxation in
any form by or under State, municipal, or local author­
ity ; and the gold coin received from the sale of said bonds
shall first be covered into the general fund of the Treas­
ury and then exchanged, in the manner hereinbefore pro­
vided, for an equal amount of the notes redeemed and
held for exchange, and the Secretary of the Treasury
may, in his discretion, use said notes in exchange for
gold, or to purchase or redeem any bonds o f the United
States, or for any other lawful purpose the public in­
interests may require, except that they shall not be used to
meet deficiencies in the current revenues. That United
States notes when redeemed in accordance with the pro­
visions of this section shall be reissued, but shall be held
in the reserve fund until exchanged for gold, as herein
provided; and the gold coin and bullion in the reserve
fund, together with the redeemed notes held for use as
provided in this section, shall at no time exceed the
maximum sum of one hundred and fifty million dollars.
SILYER DOLLAR TO REMAIN LEGAL TENDER.
Act Mar.
1900, sec.
31 Stat. L.,

14,

242. Sec. 3.—That nothing contained in this Act shall
46; be construed to affect the legal-tender quality as now pro­
3
vided by law o f the silver dollar, or o f any other money
coined or issued by the United States.
DIVISIONS OF ISSUE AND REDEMPTION ESTABLISHED,

243. Sec. 4.—That there be established
Act Mar. 14,
3900, sec.
;
31 Stat. L., 4 6*Department, as a part o f the office of the

in the Treasury
Treasurer of the
United States, divisions to be designated and known as
the division of issue and the division of redemption, to
which shall be assigned, respectively, under such regula­
tions as the Secretary of the Treasury may approve, all
records and accounts relating to the issue and redemption
of United States notes, gold certificates, silver certificates,
and currency certificates. There shall be transferred
from the accounts of the general fund of the Treasury of
the United States, and taken up on the books of said di­
visions, respectively, accounts relating to the reserve fund
for the redemption o f United States notes and Treasury
notes, the gold coin held against outstanding gold certifi­
cates, the United States notes held against outstanding
currency certificates, and the silver dollars held against
outstanding silver certificates, and each of the funds rep­
resented by these accounts shall be used for the redemp­
tion of the notes and certificates for which they are
respectively pledged, and shall be used for no other pur­
pose, the same being held as trust funds.




ACTS OF A GENERAL N A T U R E .

97

>VHEN SILVER DOLLARS ARE COINED FROM BULLION
PURCHASED UNDER ACT OF JULY 14, 1890, AN EQUAL
AMOUNT OF TREASURY NOTES TO BE CANCELED AND
SILYER CERTIFICATES ISSUED.

244. Sec. 5.— That it shall be the duty o f the Secretary 19^ct M 14,
ar.
o f the Treasury, as fast as standard silver dollars are 31 stat. l ., 47!
‘
coined under the provisions o f the Acts o f July four­
teenth, eighteen hundred and ninety, and June thirteenth,
eighteen hundred and ninety-eight, from bullion pur­
chased under the Act o f July fourteenth, eighteen hun­
dred and ninety, to retire and cancel an equal amount o f
Treasury notes whenever received into the Treasury,
either by exchange in accordance with the provisions o f
this Act or in the ordinary course o f business, and upon
the cancellation o f Treasury notes silver certificates shall
be issued against the silver dollars so coined.
ISSUE OF GOLD CERTIFICATES. ISSUE OF GOLD CER­
TIFICATES PAYABLE TO ORDER.

245. Sec. 6 [as amended by acts of March 4, 1907 and Act M 14,
ar.
March 2, 1911].— That the Secretary o f the Treasury i s 31 stat?L'., 47!
hereby authorized and directed to receive deposits o f gold
^c.r’ i4;
coin with the Treasurer or any assistant treasurer o f the 34go’stat. l.,
United States in sums o f not less than twenty dollars,
and to issue gold certificates therefor in denominations
of not less than ten dollars, and the coin so deposited shall
be retained in the Treasury and held for the payment o f
such certificates 011 demand, and used for no other pur­
pose. Such certificates shall be receivable for customs:,
taxes, and all public dues, and when so received may be
reissued, and when held by any national banking asso­
ciation may be counted as a part o f its lawful reserve:
Provided , That whenever and so long as the gold coin
and bullion held in the reserve fund in the Treasury for
the redemption o f United States notes and Treasury
notes shall fall and remain below one hundred million
dollars the authority to issue certificates as herein pro­
vided shall be suspended: And provided, further . That
whenever and so long as the aggregate amount o f United
States notes and silver certificates in the general fund o f
the Treasury shall exceed sixty million dollars the Secre­
tary o f the Treasury may, in his discretion, suspend the
issue o f the certificates herein provided fo r : And pro­
vided further , That o f the amount o f such outstanding
certificates one-fourth at least shall be in denominations
o f fifty dollars or less: And provided further , That the
Secretary o f the Treasury may, in his discretion, issue
such certificates in denominations o f ten thousand dollars,
payable to order. And provided further , That the Secre­
tary o f the Treasury may, in his discretion, receive, with
the assistant treasurer in New Y ork and the assistant
treasurer in San Francisco, deposits o f foreign gold coin
at their bullion value in amounts o f not less than one
88020°— 11------- 7




98

ACTS OF A G ENER AL N \T U R E .

thousand dollars in value and issue gold certificates there­
for of the description herein authorized: And provided
*9 nct M ^further,) That the Secretary o f the Treasury may, in his
ar'
discretion, receive, with the Treasurer or any assistant
treasurer of the United States, deposits o f gold bullion
bearing the stamp of the coinage mints of the United
States, or the assay office in New York, certifying their
weight, fineness, and value, in amounts of not less than
one thousand dollars in value, and issue gold certificates
therefor of the description herein authorized. But the
amount of gold bullion and foreign coin so held shall not
at any time exceed one-third of the total amount of gold
certificates at such time outstanding. And section fiftyone hundred and ninety-three o f the Revised Statutes of
the United States is hereby repealed.
ISSUE OF SILYER CERTIFICATES.

i 9oot ^ec‘ 7
4;
31 stat.

l .,

47!

®
ec* —That hereafter silver certificates shall be
issued only of denominations o f ten dollars and under
except that not exceeding in the aggregate ten per centum
of the total volume of said certificates, in the discretion
of the Secretary of the Treasury, may be issued in denom­
inations of twenty dollars, fifty dollars, and one hundred
dollars; and silver certificates of higher denomination
than ten dollars, except as herein provided, shall, when­
ever received at the Treasury or redeemed, be retired and
canceled, and certificates of denominations of ten dollars
or less shall be substituted therefor, and after such sub­
stitution, in whole or in part, a like volume o f United
States notes of less denomination than ten dollars shall
from time to time be retired and canceled, and notes of
denominations of ten dollars and upward shall be reis­
sued in substitution therefor, with like qualities and re­
strictions as those retired and canceled.
N ote.— The act of February 28. 1878, authorized the issue of
silver certificates in sums of not less than ten dollars.
The act
of March 3, 1887, authorized the issue of one, two, and five dollar
certificates.
This section supersedes these acts as to all new
issues.

SUBSIDIARY SILYER COINAGE.

i 9oo1 tcc' 8
41
®
ec* —That the Secretary of the Treasury is
31 stat. l !, 47! hereby authorized to use, at his discretion, any silver
bullion in the Treasury of the United States purchased
under the Act of July fourteenth, eighteen hundred and
ninety, for coinage into such denominations of subsidiary
silver coin as may be necessary to meet the public require­
ments for such coin: Provided, That the amount of sub­
sidiary silver coin outstanding shall not at any time ex­
ceed in the aggregate one hundred millions of dollars.
Whenever any silver bullion purchased under the Act o f
July fourteenth, eighteen hundred and ninety, shall be
used in the coinage of subsidiary silver coin, an amount
of Treasury notes issued under said Act equal to the cost
of the bullion contained in such coin shall be canceled and
not reissued.



ACTS OF A GENERAL/ N A T U R E .

99

RECOINAGE OF UNCURRENT SUBSIDIARY SILTER COIN.

248. Sec. 9.—That the Secretary of the Treasury is
q
4:
hereby authorized and directed to cause all worn and un- 3i stat. l., 4s!
current subsidiary silver coin of the United States now
in the Treasury, and hereafter received, to be recoined,
and to reimburse the Treasurer of the United States for
the difference between the nominal or face value of such
coin and the amount the same will produce in new coin
from any moneys in the Treasury not otherwise appro­
priated.
249. Sec. 10.—
Amends section fifty-one hundred and thirty-eight, Revised Stat­
utes. (See said section under National-bank act.)

REFUNDING OF UNITED STATES BONDS.

250. Sec. 11.— That the Secretary of the Treasury is
secr‘ ii4;
hereby authorized to receive at the Treasury any of the3i stat. l., 4 *
8.
outstanding bonds of the United States bearing interest
at five per centum per annum, payable February first,
nineteen hundred and four, and any bonds of the United
States bearing interest at four per centum per annum,
payable July first, nineteen hundred and seven, and any
bonds of the United States bearing interest at three per
centum per annum, payable August first, nineteen hun­
dred and eight, and to issue in exchange therefor an equal
amount of coupon or registered bonds of the United
States in such form as he may prescribe, in denomina­
tions of fifty dollars or any multiple thereof, bearing
interest at the rate of two per centum per annum, payable
quarterly, such bonds to be payable at the pleasure of
the United States after thirty years from the date of
their issue, and said bonds to be payable, principal and
interest, in gold coin of the present standard value, and
to be exempt from the payment of all taxes or duties
of the United States, as well as from taxation in any
form by or under State, municipal, or local authority:
Provided, That such outstanding bonds may be received
in exchange at a valuation not greater than their present
worth to yield an income of two and one-quarter per
centum per annum; and in consideration of the reduction
of interest effected, the Secretary of the Treasury is au­
thorized to pay to the holders of the outstanding bonds
surrendered for exchange, out of any money in the Treas­
ury not otherwise appropriated, a sum not greater than
the difference between their present worth, computed as
aforesaid, and their par value, and the payments to be
made hereunder shall be held to be payments on account
o f the sinking fund created by section thirty-six hundred
and ninety-four o f the Revised Statutes: And provided
further, That the two per centum bonds to be issued un­
der the provisions o f this act shall be issued at not less
than par, and they shall be numbered consecutively in
the order o f their issue, and when payment is made the
last numbers issued shall be first paid, and this order shall




100

ACTS OF A GE N E R AL N A T U R E .

be followed until all the bonds are paid, and whenever
any o f the outstanding bonds are called for payment in­
terest thereon shall cease three months after such ca ll;
and there is hereby appropriated out o f any money in
the Treasury not otherwise appropriated, to effect the ex­
changes o f bonds provided for in this Act, a sum not
exceeding one-fifteenth o f one per centum o f the face
vsflue o f said bonds, to pay the expense of preparing and
issuing the same and other expenses incident thereto.
251. Sec. 12.—
This section is inserted in the national-bank act following
section fifty-one hundred and seventy-one, which it supersedes.

252. Sec. 13.—
See sections 5214, Revised Statutes.

INTERNATIONAL BIMETALLISM.
1900* secr‘ 14

•
®
ec# ^ —That the provisions of this Act are not
intended to preclude the accomplishment o f interna­
tional bimetallism whenever conditions shall make it
expedient and practicable to secure the same by concur­
rent action o f the leading commercial nations of the
w orld and at a ratio which shall insure permanence o f
T
relative value between gold and silver.

31 stat.e l ., 49!

A ct M arch 4, 190T.
254. Sec. 1. Amends section 6 of act of
March 14, 1900.
255. Sec. 2. Issue of Treasury notes.
256. Sec. 3. Amends section 5153 of
the Revised Statutes.

257. Sec. 4. Amends section 9 of act of
July 12, 1882. The amended
section follows section 5167
of the Revised Statutes.

254. Sec. 1, Act March 4, 1907.
Amends section 6 of act of March 14, 1900. This amended
section is incorporated in said act, page 97, ante.

ISSUE OF TREASURY NOTES.
Act Mar. 4 ,

ACT MARCH 4, 1907.

255. Sec. 2.—That whenever and so long as the out34°T
,stat.c’ l.,; standing silver certificates of the denominations of one
1289.
dollar, two dollars, and five dollars, issued under the
provisions of section seven of an Act entitled “ An Act
to define and fix the standard of value, to maintain the
parity o f all forms of money issued or coined by the
United States, to refund the public debt, and for other
purposes,” approved March fourteenth, nineteen hun­
dred, shall be, in the opinion of the Secretary o f the
Treasury, insufficient to meet the public demand there­
for, he is hereby authorized to issue United States notes
of the denominations of one dollar, two dollars, and
five dollars, and upon the issue o f United States notes
o f such denominations an equal amount o f United
States notes o f higher denominations shall be retired
and canceled: Provided, however, That the aggregate
amount of United States notes at any time outstand­
ing shall remain as at present fixed by law: And pro-




ACTS OF A GE K E R A L N A T U R E .

101

vided further , That nothing in this Act shall be con­
strued as affecting the right of any national bank to
issue one-third in amount of its circulating notes of
the denomination of five dollars, as now provided by law.

256. Sec. 3.—
Amends section 5153, Revised Statutes, page 25, ante.

257. Sec. 4.—
Amends section 9 of act of July 12, 1882, as amended by act
of March 14, 1900.
N ote.— This section was further amended by section 10 of act
of May 30, 1908, as set forth following Revised Statutes, 5167,
page 34, ante.

T ariff A ct A pproved A ugust 5, 1909.

258. Sec. 38.— Corporation tax.
259. Sec. 39.— Panama bonds.
N ote.— Other sections relate to customs duties and internal
revenue.

EXCISE TAX ON CORPORATIONS.
258.
Sec. 38.— That every corporation, joint stock com- Act
pany or association, organized for profit and having a 36 stat. l ‘, 112!
capital stock represented by shares, and every insurance
company, now or hereafter organized under the laws of
the United States or of any State or Territory of the
United States or under the acts of Congress applicable
to Alaska or the District of Columbia, or now or here­
after organized under the laws of any foreign country
and engaged in business in any State or Territory of the
United States or in Alaska or in the District of Columbia,
shall be subject to pay annually a special excise tax with
respect to the carrying on or doing business by such cor­
poration, joint stock company or association, or insurance
company, equivalent to one per centum upon the entire
net income over and above five thousand dollars received
by it from all sources during such year, exclusive of
amounts received by it as dividends upon stock of other
corporations, joint stock companies or associations, or
insurance companies, subject to the tax hereby imposed;
or if organized under the laws of any foreign country,
upon the amount of net income over and above five thou­
sand dollars received by it from business transacted and
capital invested within the United States and its Terri­
tories, Alaska, and the District of Columbia during such
year, exclusive of amounts so received by it as dividends
upon stock of other corporations, joint- stock companies
or associations, or insurance companies, subject to the
tax hereby imposed: Provided , however, That nothing
in this section contained shall apply to labor, agricultural
or horticultural organizations, or to fraternal beneficiary
societies, orders, or associations operating under the lodge
system, and providing for the payment of life, sick, acci­
dent, and other benefits to the members of such societies,




102

ACTS OF A GENERAL NATURE.

orders, or associations, and dependents of such members,
nor to domestic building and loan associations, organized
and operated exclusively for the mutual benefit o f their
members, nor to any corporation or association organized
and operated exclusively for religious, charitable, or edu­
cational purposes, no part of the net income of which
inures to the benefit o f any private stockholder or indi­
vidual.
Second. Such net income shall be ascertained by de­
ducting from the gross amount o f the income o f such
corporation, joint stock company or association, or insur­
ance company, received within the year from all sources,
(first) all the ordinary and necessary expenses actually
paid within the year out of income in the maintenance
and operation o f its business and properties, including all
charges such as rentals or franchise payments, required
to be made as a condition to the continued use or pos­
session o f property; (second) all losses actually sustained
within the year and not compensated by insurance or
otherwise, including a reasonable allowance for depre­
ciation of property, if any, and in the case o f insurance
companies the sums other than dividends, paid within
the year on policy and annuity contracts and the net addi­
tion, if any, required by law to be made within the year
to reserve funds; (third) interest actually paid within
the year on its bonded or other indebtedness to an amount
of such bonded and other indebtedness not exceeding the
paid-up capital stock of such corporation, joint stock
company or association, or insurance company, outstand­
ing at the close of the year, and in the case of a bank,
banking association, or trust company, all interest actu­
ally paid by it within the year on deposits; (fourth) all
sums paid by it within the year for taxes imposed under
the authority o f the United States or o f any State or
Territory thereof, or imposed by the government of any
foreign country as a condition to carrying on business
therein; (fifth) all amounts received by it within the
year as dividends upon stock of other corporations, joint
stock companies or associations, or insurance companies,
subject to the tax hereby imposed: Provided, That in the
case o f a corporation, joint stock company or association,
or insurance company, organized under the laws of a
foreign country, such net income shall be ascertained by
deducting from the gross amount of its income received
within the year from business transacted and capital
invested within the United States and any o f its Terri­
tories, Alaska, and the District of Columbia, (first) all
the ordinary and necessary expenses actually paid within
the year out o f earnings in the maintenance and operation
o f its business and property within the United States and
its Territories, Alaska, and the District o f Columbia,
including all charges such as rentals or franchise pay­
ments required to be made as a condition to the continued
use or possession of property; (second) all losses actually



ACTS OF A GENERAL NATURE.

sustained within the year in business conducted by it
within the United States or its Territories, Alaska, or the
District o f Columbia not compensated by insurance or
otherwise, including a reasonable allowance for deprecia­
tion of property, if any, and in the case of insurance com­
panies the sums other than dividends, paid within the
year on policy and annuity contracts and the net addi­
tion, if any, required by law to be made within the year
to reserve funds; (third) interest actually paid within
the year on its bonded or other indebtedness to an amount
of such bonded and other indebtedness, not exceeding the
proportion of its paid-up capital stock outstanding at
the close of the year which the gross amount of its income
for the year from business transacted and capital invested
within the United States and any of its Territories,
Alaska, and the District of Columbia bears to the gross
amount of its income derived from all sources within and
without the United States; (fourth) the sums paid by it
within the year for taxes imposed under the authority of
the United States or o f any State or Territory thereof;
(fifth) all amounts received by it within the year as divi­
dends upon stock of other corporations, joint stock com­
panies or associations, and insurance companies, subject
to the tax hereby imposed. In the case of assessment
insurance companies the actual deposit of sums with State
or Territorial officers, pursuant to law, as additions to
guaranty or reserve funds shall be treated as being pay­
ments required by law to reserve funds.
Third. There shall be deducted from the amount of
the net income o f each of such corporations, joint stock
companies or associations, or insurance companies, as­
certained as provided in the foregoing paragraphs of
this section, the sum of five thousand dollars, and said
tax shall be computed upon the remainder of said net
income of such corporation, joint stock company or as­
sociation, or insurance company, for the year ending
December thirty-first, nineteen hundred and nine, and
for each calendar year thereafter; and on or before the
first day o f March, nineteen hundred and ten, and the
first day o f March in each year thereafter, a true and
accurate return under oath or affirmation of its presi­
dent, vice-president, or other principal officer, and its
treasurer or assistant treasurer, shall be made by each
of the corporations, joint stock companies or associa­
tions, and insurance companies, subject to the tax im­
posed by this section, to the collector of internal reve­
nue for the district in which such corporation, joint
stock company or association, or insurance company
has its principal place of business, or, in the case of a
corporation, joint stock company or association, or in­
surance company, organized under the laws of a foreign
country, in the place where its principal business is
carried on within the United States, in such form as
the Commissioner o f Internal Revenue, with the ap­



ACTS OF A GENERAL NATURE.

proval o f the Secretary o f the Treasury, shall pre­
scribe, setting forth (first) the total amount of the paidup capital stock of such corporation, joint stock com­
pany or association, or insurance company, outstanding
at the close of the year; (second) the total amount of the
bonded and other indebtedness of such corporation,
joint stock company or association, or insurance com­
pany at the close ox the year; (third) the gross amount
o f the income o f such corporation, joint stock company
or association, or insurance company, received during
such year from all sources, and if organized under the
laws o f a foreign country the gross amount of its in­
come received within the year from business transacted
and capital invested within the United States and any
o f its Territories, Alaska, and the District of Colum­
bia; also the amount received by such corporation, joint
stock company or association, or insurance company,
within the year by way of dividends upon stock of
other corporations, joint stock companies or associa­
tions, or insurance companies, subject to the tax im­
posed by this section; (fourth) the total amount of all
the ordinary and necessary expenses actually paid out
o f earnings in the maintenance and operation o f the
business and properties of such corporation, joint stock
company or association, or insurance company, within
the year, stating separately all charges such as rentals
or franchise payments required to be made as a condi­
tion to the continued use or possession of property, and
if organized under the laws of a foreign country the
amount so paid in the maintenance and operation o f its
business within the United States and its Territories,
Alaska, and the District of Columbia; (fifth) the total
amount of all losses actually sustained during the year
and not compensated by insurance or otherwise, stating
separately any amounts allowed for depreciation of
property, and in the case of insurance companies the
sums other than dividends, paid within the year on
policy and annuity contracts and the net addition, if
any, required by law to be made w ithin the year to
7
reserve funds; and in the case o f a corporation, joint
stock company or association, or insurance company,
organized under the laws o f a foreign country, all
losses actually sustained by it during the year in busi­
ness conducted by it within the United States or its
Territories, Alaska, and the District o f Columbia, not
compensated by insurance or otherwise, stating sepa­
rately any amounts allowed for depreciation of prop­
erty, and in the case of insurance companies the sums
other than dividends, paid within the year on policy
and annuity contracts and the net addition, if any, re?uired by law to be made within the year to reserve
und; (sixth) the amount of interest actually paid
within the year on its bonded or other indebtedness to
an amount of such bonded and other indebtedness not



ACTS OF A GENERAL NATURE.

exceeding the paid-up capital stock of such corporation,
joint stock company or association, or insurance com­
pany, outstanding at the close of the year, and in the
case of a bank, banking association, or trust company,
stating separately all interest paid by it within the
year on deposits; or in case of a corporation, joint stock
company or association, or insurance company, or­
ganized under the laws of a foreign country, interest
so paid on its bonded or other indebtedness to an
amount of such bonded and other indebtedness not ex­
ceeding the proportion of its paid-up capital stock out­
standing at the close of the year, which the gross
amount o f its income for the year from business trans­
acted and capital invested within the United States
and any o f its Territories, Alaska, and the District of
Columbia, bears to the gross amount of its income de­
rived from all sources within and without the United
States; (seventh) the amount paid by it within the
year for taxes imposed under the authority of the
United States or any State or Territory thereof, and
separately the amount so paid by it for taxes imposed
by the government of any foreign country as a condi­
tion to carrying on business therein; (eighth) the net
income o f such corporation, joint stock company or as­
sociation, or insurance company, after making the
deductions in this section authorized. All such returns
shall as received be transmitted forthwith by the col­
lector to the Commissioner of Internal Revenue.
Fourth. Whenever evidence shall be produced before
the Commissioner of Internal Revenue which in the
opinion of the commissioner justifies the belief that the
return made by any corporation, joint stock company or
association, or insurance company, is incorrect, or when­
ever any collector shall report to the Commissioner of
Internal Revenue that any corporation, joint stock com­
pany or association, or insurance company has failed
to make a return as required by lawT the Commissioner
,
of Internal Revenue may require from the corporation,
joint stock company or association, or insurance com­
pany making such return, such further information
with reference to its capital, income, losses, and ex­
penditures as he may deem expedient; and the Com­
missioner of Internal Revenue, for the purpose o f as­
certaining the correctness of such return or for the pur­
pose o f making a return where none has been made, is
hereby authorized, by any regularly appointed revenue
agent specially designated by him for that purpose, to ex­
amine any books and papers bearing upon the matters
required to be included in the return of such corpora­
tion, joint stock company or association, or insurance
company, and to require the attendance of any officer or
employee of such corporation, joint stock company or
association, or insurance company, and to take his testi­
mony with reference to the matter required by law to be



105

106

ACTS OF A GENERAL NATURE.

included in such return, with power to administer oaths
to such person or persons; and the Commissioner of In­
ternal Revenue may also invoke the aid of any court of
the United States having jurisdiction to require the at­
tendance o f such officers or employees and the production
o f such books and papers. Upon the information so ac­
quired the Commissioner o f Internal Revenue may amend
any return or make a return where none has been made.
All proceedings taken by the Commissioner of Internal
Revenue under the provisions o f this section shall be sub­
ject to the approval o f the Secretary o f the Treasury.
Fifth. All returns shall be retained by the Commis­
sioner of Internal Revenue, who shall make assessments
thereon; and in case o f any return made with false or
fraudulent intent, he shall add one hundred per centum
o f such tax, and in case of a refusal or neglect to make a
return or to verify the same as aforesaid he shall add
fifty per centum o f such tax. In case of neglect occa­
sioned by the sickness or absence of an officer of such cor­
poration, joint stock company or association, or insur­
ance company, required to make said return, or for other
sufficient reason, the collector may allow such further
time for making and delivering such return as he may
deem necessary, not exceeding thirty days. The amount
so added to the tax shall be collected at the same time
and in the same manner as the- tax originally assessed,
unless the refusal, neglect, or falsity is discovered after
the date for payment of said taxes, in which case the
amount so added shall be paid by the delinquent corpora­
tion, joint stock company or association, or insurance com­
pany, immediately upon notice given by the collector.
All assessments shall be made and the several corpora­
tions, joint stock companies or associations, or insurance
companies, shall be notified of the amount for which they
are respectively liable on or before the first day of June
o f each successive year, and said assessments shall be paid
on or before the thirtieth day of June, except in cases of
refusal or neglect to make such return, and in cases o f
false or fraudulent returns, in which cases the Commis­
sioner of Internal Revenue shall, upon the discovery
thereof, at any time within three years after said return
is due, make a return upon information obtained as above
provided for, and the assessment made by the Commis­
sioner o f Internal Revenue thereon shall be paid by such
corporation, joint stock company or association, or insur­
ance company immediately upon notification of the
amount o f such assessment; and to any sum or sums due
and unpaid after the thirtieth day o f June in any year,
and for ten days after notice and demand thereof by the
collector, there shall be added the sum o f five per centum
on the amount o f tax unpaid and interest at the rate of
one per centum per month upon said tax from the time
the same becomes due.




ACTS OF A GENERAL NATURE.

107

Sixth. When the assessment shall be made, as provided
in this section, the returns, together with any corrections
thereof which may have been made by the commissioner,
shall be filed in the office of the Commissioner of Internal
Revenue and shall constitute public records and be open
to inspection as such.
Seventh. It shall be unlawful for any collector, deputy
collector, agent, clerk, or other officer or employee of the
United States to divulge or make known in any manner
whatever not provided by law to any person any informa­
tion obtained by him in the discharge of his official duty,
or to divulge or make known in any manner not provided
by law any document received, evidence taken, or report
made under this section except upon the special direction
of the President; and any offense against the foregoing
provision shall be a misdemeanor and be punished by a
fine not exceeding one thousand dollars, or by imprison­
ment not exceeding one year, or both, at the discretion of
the court.
Eighth. I f any of the corporations, joint stock com­
panies or associations, or insurance companies aforesaid,
shall refuse or neglect to make a return at the time or
times hereinbefore specified in each year, or shall render
a false or fraudulent return, such corporation, joint stock
company or association, or insurance company, shall be
liable to a penalty of not less than one thousand dollars
and not exceeding ten thousand dollars.
Any person authorized by law to make, render, sign, or
verify any return who makes any false or fraudulent re­
turn, or statement, with intent to defeat or evade the
assessment required by this section to be made, shall be
guilty o f a misdemeanor, and shall be fined not exceeding
one thousand dollars or be imprisoned not exceeding one
year, or both, at the discretion of the court, with the costs
of prosecution.
All laws relating to the collection, remission, and re­
fund o f internal-revenue taxes, so far' as applicable to
and not inconsistent with the provisions of this section,
are hereby extended and made applicable to the tax im­
posed by this section.
Jurisdiction is hereby conferred upon the circuit and
district courts o f the United States for the district within
which any person summoned under this section to appear
to testify or to produce books, as aforesaid, shall reside,
to compel such attendance, production of books, and testi­
mony by appropriate process.
PANAMA CANAL BONDS— ADDITIONAL ISSUE AUTHOR­
IZED AT RATE OF INTEREST NOT TO EXCEED 3 PER
CENT PER ANNUM.

259.
Sec. 39.—That the Secretary of the Treasury is Act A ^
ug.
hereby authorized to borrow on the credit of the United 30 stat!l.', in!
States from time to time, as the proceeds may be required




108

ACTS OF A GENERAL NATTTRE.

to defray expenditures on account of the Panama Canal
and to reimburse the Treasury for such expenditures
already made and not covered by previous issues of bonds,
the sum of two hundred and ninety million five hundred
and sixty-nine thousand dollars (which sum together
with the eighty-four million six hundred and thirty-one
thousand nine hundred dollars already borrowed upon
issues o f two per cent bonds under section eight of the
Act o f June twenty-eight, nineteen hundred and two,
equals the estimate of the Isthmian Canal Commission
to cover the entire cost of the Canal from its inception to
its completion), and to prepare and issue therefor coupon
or registered bonds of the United States in such form as
he may prescribe, and in denominations o f one hundred
dollars, five hundred dollars, and one thousand dollars,
payable fifty years from the date of issue, and bearing
interest payable quarterly in gold coin at a rate not ex­
ceeding three per centum per annum; and the bonds
herein authorized shall be exempt from all taxes or duties
o f the United States, as well as from taxation in any form
by or under State, municipal, or local authority: Pro­
vided, That said bonds may be disposed of by the Secre­
tary o f the Treasury at not less than par, under such
regulations as he may prescribe, giving to all citizens of
the United States an equal opportunity to subscribe
therefor, but no commissions shall be allowed or paid
thereon; and a sum not exceeding one-tenth of one per
centum o f the amount of the bonds herein authorized is
hereby appropriated, out of any money in the Treasury
not otherwise appropriated, to pay the expenses of pre­
paring, advertising, and issuing the same; and the au­
thority contained in section eight o f the Act o f June
twenty-eight, nineteen hundred and two, for the issue o f
bonds bearing interest at two per centum per annum, is
hereby repealed.
PANAMA CANAL BONDS ISSUED UNDER ACT OF AUGUST 5,
1909, NOT RECEIVABLE AS SECURITY FOR THE ISSUE
OF CIRCULATING NOTES TO NATIONAL BANKS.
Act. Mar. 2,

260. Be it enacted by the Senate and House of Repre­
sentatives of the United States o f America in Congress
assembled, That the Secretary of the Treasury be, and he
is hereby, authorized to insert in the bonds to be issued
by him under section thirty-nine of an Act entitled “ An
Act to provide revenue, equalize duties, and encourage
the industries o f the United States, and for other pur­
poses,” approved August fifth, nineteen hundred and
nine, a provision that such bonds shall not be receivable
by the Treasurer o f the United States as security for
the issue o f circulating notes to national banks; and the
bonds containing such provision shall not be receivable
for that purpose.




ACTS OF A GENERAL, NATURE.

109

A c t M a rcii 2, 1911.

CERTIFIED CHECKS DRAWN ON NATIONAL AND STATE
BANKS RECEIVABLE FOR DUTIES ON IMPORTS AND
INTERNAL TAXES.
261. Be it enacted by the Senate and House of Repre­
sentatives of the United States of America in Congress Act M ^
ar
assembled, That it shall be lawful for collectors o f cus- i9ii.
toms and of internal revenue to receive for duties on
imports and internal taxes certified checks drawn on na­
tional and State banks, and trust companies during such
time and under such regulations as the Secretary of the
Treasury may prescribe. No person, however, who may
be indebted to the United States on account of duties on
imports or internal taxes who shall have tendered a cer­
tified check or checks as provisional payment for such
duties or taxes, in accordance with the terms of this Act,
shall be released from the obligation to make ultimate
payment thereof until such certified check so received has
been duly paid; and if any such check so received is not
duly paid by the bank on which it is drawn and so certi­
fying, the United States shall, in addition to its right to
exact payment from the party originally indebted there­
for, have a lien for the amount of such check upon all the
assets o f such bank; and such amount shall be paid out of
its assets in preference to any or all other claims whatso­
ever against said bank, except the necessary costs and ex­
penses o f administration and the reimbursement of the
United States for the amount expended in the redemp­
tion o f the circulating notes of such bank.
Sec. 2. That this Act shall be effective on and after
June first, nineteen hundred and eleven.




CHAPTER VII.
SPECIAL ACTS R E LA T IN G TO N A T IO N A L B A N K S .

262. Act May 2, 1890. Qualifications
of directors in Oklahoma.
263. Act May 2, 1890. National bank­
ing laws extended to Indian
Territory.
264. Act April 12, 1900. National
banking laws applicable to
Porto Rico.

265. Act

April 30, 1900. National
banking laws applicable to
Hawaii.
266. Special acts authorizing change
of name or location of na­
tional banks.

QUALIFICATIONS OF DIRECTORS IN OKLAHOMA. ACT
MAY 2, 1890.
Act May 2,
262. Sec. 17.— That the provisions of Title sixty-two o f
26 9
stat6LM ! the
89

Revised Statutes of the United States relating to
national banks, and all amendments thereto, shall have
the same force and effect in the Territory o f Oklahoma as
elsewhere in the United States:
1900 1secr‘ i 4
2: “ Provided^ That persons otherwise qualified to act as
31 stat. l., 8o! directors shall not be required to have resided in said
Territory for more than three months immediately pre­
ceding their election as such.”
NATIONAL BANKING LAWS EXTENDED TO INDIAN TERRITORY. ACT MAY 2, 1890.
263. Sec. 31.— * * * That all laws relating to na­

tional banking associations shall have the same force and
effect in Indian Territory as elsewhere in the United
StatesN ote.— The act of May 2, 1890, is “An act to provide a tempo­
rary government for the Territory of Oklahoma, to enlarge the
jurisdiction of the United States court in the Indian Territory,
and for other purposes.” Sections 17 and 31 are the only sections
which relate to national banks.

NATIONAL BANKING LAWS APPLICABLE TO PORTO RICO.
ACT APRIL 12, 1900.
1890 * secay3 i2:
stat. l., 96! States

2 6

®
ec*
—That the statutory laws o f the United
not locally inapplicable, except as hereinbefore or
hereinafter otherwise provided, shall have the same force
and effect in Porto Rico as in the United States, except
the internal-revenue laws, which, in view o f the pro­
T
visions of section 3: shall not have force and effect in
Porto Rico.
N ote.— The Attorney-General of the United States in an opinion
rendered June 2, 1900, held “ There seems to be in the structure
of the national banking laws no general provisions which can not
be carried into force and effect in Porto Rico equally with all of
the various States and Territories to which the laws were orig­
inally applied. I can find no reason to hold that the statutes
relative to the organization and powers of national banks have

110




SPECIAL ACTS.

Ill

not, by section 14 of the Porto Rican act, above referred to, been
extended to that island. The language of that section is broad
enough, and in my opinion does, authorize the organization and
carrying on of national banks in Porto Rico.”

NATIONAL BANKING LAWS APPLICABLE TO HAWAII.
ACT APRIL 30, 1900.
265. Sec. 5.— That the Constitution, and except as

Act Apr. 30,

herein otherwise provided, all the laws of the United si^stat!’ l!
States which are not locally inapplicable, shall have th e141,
same force and effect within the said Territory as else­
where in the United States: Provided, That sections
eighteen hundred and fifty and eighteen hundred and
ninety of the Revised Statutes of the United States shall
not apply to the Territory of Hawaii.
N ote.— The Attorney-General of the United States in an opinion
rendered June 23, 1900, held* “ That the act of April 30, 1000,
* * * extended the national banking acts to the Territory of
Hawaii, and would authorize the Comptroller to grant permission
for the organization of national banks therein. (See my opinion
of June 2, 1900, relative to the same question as applied to Porto
Rico.) But I do not think lhat the provisions of section 5154
apply to banks existing in Hawaii prior to the passage of the act
of April 30, 1900. Sections 5154 and 5155 seem, by their especial
terms, to refer only to banking institutions organized under special
or general laws of a State, and do not seem to apply at all to
banks organized uuder the laws of any Territory. I think the
object of these two sections was to enable the banks that were
previously strictly State institutions to become national corpora­
tions, and the operation of the act in that respect is to be so
restricted.*’

SPECIAL ACTS AUTHORIZING CHANGE OF NAME OR LOCA­
TION. ACT JUNE 7, 1872.
266. Sec. 1 . — That The First National Bank of An-

Act J u n e 7,
napolis, now located in the city of Annapolis and State i 772’statf‘ h
.\
of Maryland, is hereby authorized to change its location 281*
to the city of Baltimore, in said State. AVhenever the
stockholders representing three-fourths of the capital
of said bank, at a meeting called for that purpose, deter­
mine to make such change, the president and cashier shall
execute a certificate, under the corporate seal of the bank,
specifying such determination, and shall cause the same
to be recorded in the office of the Comptroller of the Cur­
rency, 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.
S e c . 2. That nothing in this act contained shall be so
Act J u n e 7,
construed as in any manner to release the said bank from if72stat?’ L.i
any liability or affect any action or proceeding in law in 282which the said bank may be a party or interested. And
when such change shall have been determined upon, as
aforesaid, notice thereof, and of such change, shall be
published in two weekly papers in the city of Annapolis
not less than four weeks.
S e c . 3. That whenever the location of said bank shall
Act J u n e 7,
have been changed from the city of Annapolis to the city i ? 72statc’ L.i
o f Baltimore, in accordance with the first section of this 282*




112

Act June
1872, sec.
17 Stat.
282.

Act June
1872, sec.
17 Stat.
282.

SPEC IA L, A C T S .

act, its name shall be changed to The Traders’ National
Bank of Baltimore^ if the board of directors o f said
bank shall accept the new name by resolution o f the
board, and cause a copy o f such resolution, duly authenticated, to be filed with the Comptroller o f the Currency.
: S e c . 4. That all the debts, demands, liabilities, rights,
■privileges, and powers of The First National Bank o f
»
Annapolis shall devolve upon The Traders’ National
Bank o f Baltimore whenever such change of name is
effected.
I S e c . 5. That this act shall take effect and be in force
from and after its passage.
N ote .— Acts of a similar nature to the one preceding have been
enacted by Congress for the following purposes:
Authorizing The Manufacturers’ National Bank of New York to
change its location from the city of New York to the city of
Brooklyn.
(Approved July 27, 1868.)
Authorizing The City National Bank of New Orleans. Louisiana,
to change its name to The Germania National Bank of New
Orleans. (Approved March 1, 1869.)
Authorizing The Second National Bank of Plattsburgh, New
York, to change its name to The Vilas National Bank of Platts­
burgh. (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.)
Authorizing The Warren National Bank of South Danvers,
Massachusetts, 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, Massachu­
setts, to change its location and name to The Railroad 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.)




SPECIAL ACTS.
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, Mis­
souri. (Approved March 3, 1873.)
Authorizing The Kansas Valley National Bank of Topeka, Kan­
sas, to change its name to The First National Bank of Topeka,
Kansas.
(Approved March 3, 1873.)
Authorizing The First National Bank of Saint Anthony, Minne­
sota, to change its location and name to The Merchants’ National
Bank of Minneapolis, Minnesota. (Approved January 8, 1874.)
Authorizing The Second National Bank of Havana, New York,
to change its name to The Havana National Bank of Havana,
New York.
(Approved January 9, 1874.)
Authorizing The Passaic County National Bank of Paterson,
New Jersey, to change its name to The Second National Bank of
Paterson, New Jersey.
(Approved April 15, 1874.)
Authorizing The Citizens’ National Bank of Hagerstown, Mary­
land, 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 Trasburg, Vermont, to change its location and name to The Barton
National Bank, Vermont.
(Approved June 3, 1874.)
Authorizing The Farmers' National Bank of Greensburg, Penn­
sylvania, to change its location and name to The Fifth National
Bank of Pittsburg, Pennsylvania. (Approved June 23, 1874.)
Authorizing The Citizens’ National Bank of Sanborn ton, 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 James­
town, New York. (Approved March 3, 1875.)
Authorizing The Second National Bank of Watkins, Now York,
to change its name to The Watkins National Bank, New York,
(Approved March 3, 1875.)
Authorizing The Slater National Bank of North Providence,
Iihode Island, to change its name to The Slater National Bank of
Pawtucket, Rhode Island.
(Approved March 3, 1875.)
Authorizing The Auburn City National Bank of Auburn, New
York, to be consolidated with The First National Bank of Auburn,
New York.
(Approved March 3, 1875.)
Authorizing The Miners’ National Bank of Braidwood, Illinois,
to change its location and name to The Commercial National Bank
of Wilmington, Illinois.
(Approved January 31, 187S.)
Authorizing The Windham National Bank, Windham, Con­
necticut, to change its location to the village of Willimantic,
Connecticut. (Approved February 10, 1879.)
Authorizing the National Bank of Commerce of Cincinnati,
Ohio, to change its name to The National Lafayette and Bank of
Commerce.
(Approved April 29, 1879.)
Authorizing the City National Bank of Manchester, New Hamp­
shire, to change its name to The Merchants’ National Bank of
Manchester.
(Approved June 11, 1880.)
Authorizing The Blue Hill National Bank of Dorchester, Massa­
chusetts, to change its location and name to the Blue Hill National
Bank of Milton, Massachusetts. (Approved January 13, 1881.)
Authorizing The First National Bank of Meriden, West Meriden,
Connecticut, to change its name to The First National Bank of
Meriden, Connecticut.
(Approved March 1, 1881.)
Authorizing The National Mechanics' Banking Association of
New York, New York, to change its name to W all Street National
Bank. (Approved February 14, 1882.)
Authorizing The Lancaster National Bank of Lancaster, Massa­
chusetts, to change ils location and name to The Lancaster Na­
8 8 0 2 0 °— 11------- 8




113

114

SPECIAL ACTS.
tional Bank of Clinton, Massachusetts.
(Approved February 25,
1882.)
Authorizing the National Bank of Kutztown, Pennsylvania, to
change its location and name to The Keystone National Bank of
Reading, Pennsylvania. (Approved June 27, 1882.)
Joint resolution authorizing The National Bank of Winterset,
Iowa, to change its name to The First National Bank of Winterset,
Iowa. (Approved January 18, 1883.)
Authorizing The Second National Bank of Xenia, Ohio, to in­
crease its capital stock. (Approved February 17, 1883.)
Authorizing The First National Bank of West Greenville, Penn­
sylvania, to change its name to The First National Bank of
Greenville, Pennsylvania. (Approved February 26, 1883.)
Authorizing The W est Waterville National Bank of Oakland,
Maine, to chance its title to The Messalonskee National Bank of
Oakland, Maine.
(Approved April 15, 1884.)
Authorizing the Hillsborough National Bank, of Hillsboro, Ohio,
to change its name to The First National Bank of Hillsborough,
Ohio. (Approved December 18, 1884.)
Authorizing The Slater National Bank of North Providence,
Rhode Island, to change its name.
(Approved January 8, 1885.)
Authorizing the First National Bank of Omaha, Nebraska, to
increase its capital stock. (Approved January 10, 1885.)
Authorizing The National Bank of Bloomington, Illinois, to
change its name to the First National Bank of Bloomington, Illi­
nois. (Approved January 27, 1885.)
Authorizing The Manufacturers’ National Bank of New York to
change its name to The Manufacturers’ National Bank of Brook­
lyn, New York.
(Approved February 20, 1885.)
Authorizing The Commercial National Bank of Chicago, Illinois,
to increase its capital stock. (Approved February 28, 1885.)
Authorizing The ’First National Bank of Larned, Kansas, to
increase its capital stock. (Approved March 3, 1885.)
Authorizing The First National Bank of Fort Renton, Montana,
to change its location and name. (Approved December 18, 181)0.)
Authorizing the National Safe Deposit Company of Washing­
ton to change its title to “ The National Safe Deposit Savings and
Trust Company of the District of Columbia.”
(Approved Feb­
ruary 18, 1892.)
Authorizing a national bank of Chicago, Illinois, to establish a
branch office upon the grounds of the W orld’s Columbian Exposi­
tion. (Approved May 12, 1892.)
Authorizing The First National Bank of Sprague, Washington,
to change its location and name. (Approved March 20, 1896.)
Authorizing the Interstate National Bank of Kansas City, Kan­
sas, to change its location. (Approved March 2, 1897.)
Authorizing any bank or trust company located in the State of
Missouri to conduct a banking office on the Louisiana Exposition
grounds at St. Louis, Mo. (Approved March 3, 1901.)
Authorizing The American National Bank of Graham, Virginia,
to change its location and name. (Approved February 15, 1906.)
Authorizing the National Safe Deposit Savings and Trust Com­
pany of the District of Columbia to change its title to “ National
Savings and Trust Company.,,
(Approved Jan. 31, 1907.)




CHAPTER VIII.
OPINIONS OF THE ATTORNEY-GENERAL.
267. Opinion of Attorney-General of
United States on Oklahoma
deposit guarantee law.
268. Opinion of Attorney-General of
United States on Kansas de­
posit guarantee law.

269. Opinion of Attorney-General of
the United States on power
of a national bank to enter
into a contract with an insur­
ance company guaranteeing
the solvency of the bank.

THE OKLAHOMA DEPOSIT GUARANTEE LAW.
267.
The Attorney-General of the United States, in an
opinion rendered July 28, 1908, said:
The business of insuring deposits is a wholly separate business
from that of banking * * *. A national bank has no power to
guarantee the obligations of a third party, unless in connection
with the sale or transfer of its own property and as an incident
to the business of the bank * * *.
But a contract guaranteeing the payment by another corpora­
tion or individual of obligations in nowise connected with the
business of the bank is entirely ultra vires. 1 hold * * *
that it is illegal for the officers of a national bank to enter into
any such agreement as that contemplated by section 4 of the
Oklahoma statutes, and any willful action to this effect on the
part of any national bank is sufficient cause for the forfeiture of
charter.

THE KANSAS DEPOSIT GUARANTEE LAW.
268.
The Attorney General of the United States, in an
opinion rendered April 6, 1909, said:
The question of the power of a national bank to avail of the
invitation extended to it by this act involves primarily a consid­
eration of the nature of the agreement contemplated by it. Attor­
ney General Bonaparte, in an opinion rendered to the Secretary
of the Treasury, under date of July 28, 1908, considering an act of
the Legislature of the State of Oklahoma (27 Op. A. G., p. 38 ),
determined that a national bank could not lawfully enter into the
plan or scheme contemplated by that act, because it involved
essentially a guaranty to the depositors of all State banks in
Oklahoma, and other national banks in that State which might
accept the terms of the law, that their respective depositors should
be paid in fu ll; a contract which he deemed to be clearly ultra
vires.
The act now under consideration attempts to avoid this objec­
tion by limiting the amount for which any bank may become
liable, but within such limitation the same principle is involved,
for to the extent of the contribution and liability required by the
statute each bank becomes liable to creditors of the other banks
which are parties to the plan. But even if a proper construction
of the act would, as contended, make it a guaranty by each bank
of payments to its own depositors, and not a general guaranty




115

116

OPINIONS OF THE ATTORNEY-GENERAL.
within the limits of contribution prescribed by the act, of all de­
posits in all the banks which are parties to the scheme, neverthe­
less I am strongly o f the opinion that a national bank is without
corporate power to expend its moneys for the purpose of provid­
ing insurance that its depositors shall be paid in full. It may, of
course, insure its own property against loss or destruction; it may
insure itself against loss of property through theft or other dis­
honesty, but the application of its funds for the purpose of secur­
ing a collateral guaranty by third parties that it will pay in full
its debts to its depositors is, it appears to me, beyond its corporate
power.
Sucli contract would fall within the principles asserted in Com­
mercial National Bank v. Pirie (82 Fed., 799), Bowen v. Needles
National Bank (94 Fed., 925), for if, as is well established, a
national bank has no power to guarantee the obligation of an­
other, it certainly has no power to employ another to guarantee
its own obligation to a third person.

POWER OF NATIONAL BANK TO ENTER INTO A CONTRACT
WITH AN INSURANCE COMPANY GUARANTEEING THE
SOLVENCY OF THE BANK.

269.
The Attorney General of the United States in an
opinion rendered May 7, 1909, said:
Replying to yours of the 29tli ultimo, in which, at llie request
of the Comptroller of the Currency, you ask for an opinion as to
the power of a national bank to enter into a contract with an
insurance company guaranteeing the solvency of the bank, and
transmitting to me a form of policy which is proposed to be
issued by an insurance company proposed to be organized, I beg
to say that, as a general principle, I have no doubt that it is
entirely within the powers of a national bank to contract for
the insurance of its assets against loss. The form of the pro­
posed policy submitted in your letter is somewhat peculiar. It
purports to insure to the bank the payment of “ a sum of money
sufficient to indemnify the bank for any and all losses suffered
by it by reason of tlieft, embezzlement, losses in realizing upon
loans and investments, shrinkage in value of assets or otherwise,
in an amount equal to but not exceeding the net excess of its
obligations, other than by reason of the stock of the bank, over
the total aggregate value of the assets of the bank thus reduced
by such losses; provided that there shall be included in the assets
of the bank all net sums which have been realized by reason of
the additional liability of the stockholders of the bank.”
Sucli contract is, in effect, an agreement to pay to the bank
any deficiency in its assets upon ultimate realization necessary to
enable it to pay all of its liabilities of every kind. The policy
is to run for a period of three months, but to be renewable there­
after for periods of three months each with the consent of the in­
surance company, and at such premiums as the insurance company
may fix at least one month before the expiration of the then cur­
rent term of the insurance, the premium in every case to be a
percentage of the average indebtedness of the bank during the
period covered by such renewal, with the provision that, if such
rate shall be in excess of one-sixteenth of 1 per cent upon
such average indebtedness, then and in such event the insurance
company shall be liable to account to the bank for the applica­
tion of such premium paid by the bank in excess of one-sixteenth
of 1 per cent, “ which excess shall be applicable only to the
payment of actual losses incurred by the company by reason of
claims under this and similar policies, and any excess over such
extra claims shall be divided pro rata among the banks paying
such extra rate of premium as a participation in the profits
during which period such extra rate of premium has been paid.”




OPINIONS OF THE ATTORNEY-GENERAL,
It is somewhat uncertain precisely what this paragraph means
and what its effect may be. It seems to me to be objectionable as
committing the bank to a protit-sharing feature, which might be
contended to entail a corresponding liability for losses; and, as
the attorney for the promoters of the proposed insurance com­
pany inform# me that this is not regarded as an essential part of
the plan, 1 should advise that it had better be eliminated from
the policy.
Another provision contained in the policy subjects the bank to
a periodical examination by the examiners of the insurance com­
pany without notice and at such times as the company may elect,
one of such examinations to be within each period of six months
covered by the policy and all renewals thereof. This period is
probably inadvertently placed at six months, as the policy is
proposed to be written for periods of three months only. Aside
from that, I very much question the legality of this clause, or
at least its enforceability. Section 5241 of the Revised Statutes
provides that, “ No association shall be subject to any visitorial
powers other than such as are authorized by this title, or are
vested in the courts of justice.”
While this statute does not prohibit the bank from permitting
an examination of its books, in my opinion it does operate to pro­
hibit it from obligating itself to permit such examination; and if
the covenant to insure can be considered as in any respect de­
pendent upon this agreement to permit examinations, it might be
vitiated by the unlawful provision. I should advise that the
clause be reframed so as to make it clear that the agreement to
insure is not dependent upon the failure to permit the examina­
tion, although it might be stipulated that in case, at any time, the
examiner of the company should not be allowed access to the
books of the bank for the purpose of making an examination the
company should have the option, ui>on reasonable notice, to ter­
minate the contract.
In my opinion, therefore, it is a matter for the discretion of
the directors and officers of a bank to determine whether or not
they will enter into any such contract in any given instance, this
discretion to be exercised in view of the solvency and general
financial condition of the company making the insurance and the
reasonableness of the rate of premium; and the form of the
policy being modified to conform to the foregoing suggestions, I
see no legal reason why a bank may not enter into it.




CODE OF THE DISTRICT OF COLUMBIA.
C H A PT E R 18.
CORPORATIONS.

Subchapter IV.—Manufacturing, Agricultural, Mining, Mechanical, Insurance,
Mercantile, Transportation, Market, and Savings Bank Corporations.
Sec. 605.
Sec. 606.
Sec. 607.
Sec. 608.
Sec. 609.
Sec. 610.
Sec. 611.
Sec. 612.
Sec. 613.

Certificate.
Certificate.
Signers incorporated.
Trustees.
Elections.
Elections.
Officers.
By-laws.
Calls.

Sec! 615.*
Sec. 616.
Sec. 617.
Sec. 618.
Sec. 619.
Sec. 620.

Liability of stockholders.
Payments on capital stock.
Annual reports.
Penalty for failure.
False report.
Stock of other companies not
to be bought.
Loans to stockholders.
Dividends.
Dividends.
Executors, and so forth, not
personally liable.
Executors, and so forth, may
vote.

Cop A1 A . fifnr'lr

Sec. 621.
Sec. 622.
Sec. 623.
Sec. 624.
Sec. 625.

Sec. 626.
Sec. 627.
Sec. 628.
Sec. 629.
Sec. 630.
Sec. 631.
Sec. 632.
Sec. 633.
Sec. 634.
Sec. 635.
Sec. 636.
Sec. 637.
Sec. 638.
Sec. 639.
Sec. 640.

Pledges of stock.
Stock book.
Stock book.
Transfers.
Transfers.
Inspection of books.
Inspection of books
Increase or diminution of
stock.
Increase or diminution of
stock.
Increase or diminution of
stock.
Increase or diminution of
stock.
Increase or diminution of
stock.
Increase or diminution of
stock.
Increase or diminution of
stock.
Copy of certificate to be evi­
dence.

m o 4J
sece 27:

®EC* 6 0 5 * C e r t i f i c a t e . — Any three or more persons
desire to form a company for the purpose o f carry Rev.; stat. d5 ing on any enterprise or business which may be lawfully
istrict of coium- conducted by an individual, excepting banks o f circulaAct Mar. 3, tion or discount, railroads, and such other enterprise or
3 i01,stat. 6°l.; business as may be otherwise specially provided for in
,
1
2ict June 3 *
0
Code, may make, sign, and acknowledge, before some
1902, sec. 605; officer competent to take the acknowledgment o f deeds,
533. Stat* L" an(I
m the office of the recorder of deeds, a certificate
in writing: Provided, That nothing herein contained
shall be held to authorize the organization of corporations
to buy, sell, or deal in real estate, except corporations to
transact the business ordinarily carried on by real estate
agents or brokers.
Act June 17,
SE C . 606. In SUCH CERTIFICATE SH ALL BE STATED—
i ! 70,statc' l . ;
,
First. The corporate name of the company and the
Rev* stat55of °k ject f ° r which it is formed.
District of CoSecond. The term of its existence, which mav be per16

'stat.* l . ’ who
,

lumbia.
±.
i
Act Mar. 3, petual.

3i01’stat 6°l ;
1285.

'

^

Third. The amount of the capital stock of the com" pany and the number o f shares o f which said stock shall
consist.
118




CODE OF DISTRICT OF COLUMBIA.

119

Fourth. The number of trustees who shall manage the
concerns of the company for the first year and their
names.
Fifth. The name of the place in the District in which
the operations of the company are to be carried on.
S e c . 6 0 7 . S i g n e r s i n c o r p o r a t e d .— When the certificate Act May 5,
shall have been filed, in accordance with the provisions o f i6 7° ’stat?' l.|
the preceding section, the persons who shall have signed
; g 554,
se^
and acknowledged the same and their successors shall be trict of cbium
a body politic and corporate in fact and in name, by the bl Act Mar. 3,
name stated in such certificate, and by that name have
60l ;
succession and be capable of suing and being sued in any 1285.
court of law or equity in the District; and they and their
successors may have a common seal and make and alter
the same at pleasure, and they shall by their corporate
name be capable in law of purchasing, holding, and con­
veying any real or personal estate whatever which may be
necessary to enable the company to carry on its operations
named in such certificate, but shall not mortgage such
estate or give any lien thereon, except in pursuance of a
vote o f the stockholders of the company.
S e c . 608. T r u s t e e s . — The stock, property, and concerns Act May 5,
o f such company shall be managed by not less than three ii7°’statc'
nor more than fifteen trustees, who shall, respectively, b e ^ ; g
sec. 555,
stockholders, and a majority citizens of the District, and trict of c ’oiumshall, except for the first year, be annually elected by the 1)1 Act Mar. 3,
stockholders, at such time and place as shall be determined
6° l ;
by the by-laws of the company.
1285.
S e c . 609. E l e c t i o n s . — Public notice of the time and lg^ t ^ ay 5,
place o f holding such election shall be published not less 16 ’stat.* l.;
than thirty days previous thereto in some newspaper Rev.’ stat. msB
printed and published in the District, and the election J^ct of Coiumshall be made by such of the stockholders as shall attend Act Mar. 3,
for that purpose, either in person or by proxy. All the 3?01 stat* 6°l.;
elections shall be bv ballot, and each stockholder shall be 3285.
entitled to as many votes as he owns shares of stock in the
company, and the persons receiving the greatest number
o f votes shall be trustees; and when any vacancy shall
happen among the trustees it shall be filled for the re­
mainder of the year in such manner as may be provided
by the by-laws of the company.
S e c . 6 1 0 .— In case it shall happen at any time that an Act May 5,
election o f trustees shall not be made on the day desig- Rel°’stat. Do­
nated by the by-laws of said company when it ought t o j^ c t of coiumhave been made, the company shall not for that reason Act Mar. 3,
be dissolved, but it shall be lawful on any other day to 3?01 stat. 6
1£.j
hold an election for trustees, in such manner as shall be 1285.
provided by the by-lawrs, and all acts of trustees shall be
valid and binding as against said company until their
successors shall be elected.




120
1870 ts^ca‘55!;

CODE OF DISTRICT OF COLUMBIA.

^ EC*

Offjecees.— There shall be a president o f the

Rev. ’stat. Dis- company, who shall be designated from the trustees; and

w t °f Colum also such subordinate officers as may be elected or apaC
'
19^11sec& i 1 ’ P °in^e(i? and who may be required to give security for
6
31 ’stat. l .’ the faithful performance o f the duties o f their office, as
,
1285*
the company by its by-laws may require.
18704seca 559’
^E #
C
B y -la w s .— The trustees shall have power to
Rev. ’stat. D is- make such prudential by-laws as they deem proper for
b t °£ Colum" the management and disposal o f the stock and business
iaC
i9^ictseca6i23: a®a^rs
such company, not inconsistent with the laws
31 ’stat. l .’, o f the District and the Constitution o f the United States,
1285,
and prescribing the duties o f officers, artificers, and serv­
ants that may be employed, for the appointment o f all
officers, and for carrying on all kinds o f business within
the objects and purposes o f such company.

1870't sec%60

®E #
C

C a l ls .— No company incorporated under this

Rev.’stat. D is- subchapter shall be authorized to transact any business

biaC °f Colum until ten per centum o f the capital stock shall have been
t
'
i90ictseca6i33* ac^ua^ y Pa^ in? either in money or in property at its
’
31 ’stat. l.! actual value; and it shall be law ful for the trustees to
1286,
call in and demand from the stockholders the residue o f
their subscriptions in money or property at such times
and in such installments as the trustees shall deem
proper, under the penalty of forfeiting the shares o f stock
subscribed for and all previous payments made thereon,
i f payment shall not be made by the stockholder within
sixty days after a personal demand or a notice requiring
such payment shall have been published for six successive
weeks in a newspaper in the District.
mo*sec.a56i,’

^ec. ^ 14. S to c k .— The stock o f such company shall be

Rev.’stat. D is- deemed personal estate and shall be transferable in such

trict of colum- manner as shaii be prescribed by the by-laws o f the com390icts ^ a6i4S Pany 5 but no shares shall be transferable until all pre:
31 ’stat. l.) vious calls thereon shall have been fu lly paid in or the
1286‘
shares shall have been declared forfeited for nonpay­
ment.

18704seca 562’
^EC.
I^TABILITY 0F STOCKHOLDERS.— A ll the stockRev.’ stat. D is- holders o f every company incorporated under this sub­
tract of coium- chapter shall be severally individually liable to the credi90ictseca6i5S: ^ ors
comPany in which they are stockholders for
31 ’stat. l .| the unpaid amount due upon the shares o f stock held by
1286*
them, respectively, for all debts and contracts made by
such company, until the whole amount o f capital stock,
fixed and limited by such company, shall have been paid
in, and a certificate thereof shall have been made and re­
corded, as prescribed in the follow ing section.
18704seca 563’

^ EC*

P AYMENTS 0N c a p ita l sto ck .— The president

Rev.’stat*. Dis-and a majority o f the trustees, within thirty days after

b C of Colum the payment o f the last installment o f the capital stock
ia t
'
19^11sec& iff*so
6
an(^ limited, shall make a certificate stating the
31 ’stat'. l.| amount o f the capital so fixed and paid in, which certifi1286,
cate shall be signed and sworn to by the president and a




CODE OP DISTttTCT OP COLUMBIA.

121

majority of the trustees; and they shall within the said
thirty days record the same in the office o f the recorder of
deeds o f the District.
S e c . 617. A n n u a l r e p o r t s . — Every such company shall 1870 * sJcEsee
annually, except insurance companies, within twenty d a y s Rev.’ stat. Disfrom the first o f January, make a report, which shall bebia* °f Colum
“
published in a newspaper in the District, which shall state 19^i t 8^ aJ 7
,1 3:
the amount of capital and o f the proportion actually paid 3 i ’stat. l.|
and the amount o f existing debts, which report shall be 1286,
signed by the president and a majority o f the trustees,
and shall be verified by the oath o f the president or secre­
tary o f the company, and filed in the office o f the recorder
o f deeds o f the District.
S e c . 618. P e n a l t y f o r f a i l u r e . — I f any company fails igyo* Sec.a^ 67l
5
to comply with the provisions o f the preceding section,Rev.’stat. disany creditor of the corporation or other person interested Sa* °f Colum
'
may by petition for mandamus against the corporation i9oicts ^ a6i83*
’
and its proper officers compel such publication to be made, 3 i ’stat. l/,
and in such case the court shall require the corporation Act June 30,
or the officers at fault to pay all the expenses of the pro- 32°2’stat 61l ;
eeeding, including counsel fees.
i> .^
33
S e c . 619 . F a l s e r e p o r t .— I f any certificate or report m o, sec. 568’
made or public notice given by the officers of any com- Sict ofa
cbiumpany in the pursuance o f the provisions o f this subchapter bi^ ct Mar 3
shall be false in any material representation, all the 1901, sec. 619;
officers who have signed the same, knowing it to be false, i 286.Stat’ L”
shall be jointly and severally liable for all debts o f the
company contracted while they are stockholders or officers
thereof.

S e c . 620. S t o c k o f o t h e r c o m p a n ie s n o t t o be Act May 5,
b o u g h t .— It shall not be law ful for any company to use Rev?'stat. imsany o f their funds in the purchase o f any stock in any trict of Coium,•
1
J
J
bia. Act Mar.
other corporation.
3 1901, sec.

620; 31 Stat. L., 1286.

S e c . 621. L o a n s t o s t o c k h o l d e r s .— N o loan o f money

shall be made by any company upon the security, in whole Rev. ’stat. Dis•
i
•i
j-i
v i
liii
trict of Columor m part, ot its own stock; and 11 any such loan shall be bia.
made, the trustee or officer authorizing the same shall be ^ooi tS 62i3;
ec.a
responsible to the corporation therefor: Provided , That ai ’stat. l.!
nothing herein contained shall be held to release the bor- 12Act June 30,
rower in such a case from liability to the corporation.
32°ltet.e
L^533!
Sec. 622. Dividends.— I f the trustees of any company
shall declare and pay any dividend the payment o f which Rev.’stat. Diswould render it insolvent, or which would diminish the ^ ct of Colum
‘
amount of its capital stock, they shall be jointly and Act M
ar. 3,
severally liable for all the debts o f the company then ^ 01’stat. 62l.|
existing and for all that shall be thereafter c o n tra c te d i 287.
while they shall respectively remain in office.
Sec. 623. I f any o f the trustees shall object to declar- m o ^ sec.^ i,’
ing such dividend or the payment of the same, and shall,
ofa
cbiumat any time before the time fixed for the payment thereof, bia.
file a certificate o f their objection in writing with th e 19^1
cts^ ae
'233;
secretary of the company and with the recorder o f deeds 31 \
stat. l.|




122

CODE OF DISTRICT OF COLUMBIA.

of the District, they shall be exempt from the liability
prescribed in the preceding section.
167^ 86^ 576!
®EC*
E x e c u t o r s , a n d so f o r t h , n o t p e r s o n a l l y
R ev.’ stat. D is- l i a b l e . — No person holding stock in such company as exbia!1 °f Colum ecutor, administrator, guardian, or trustee shall be per‘
Act Mar. 3, sonally subject to any liability as stockholder o f such
3 i01’stat. 62l . ; company, but the estate and funds in the hands of such
,
1287.
executor, administrator, guardian, or trustee shall be lia­
ble in like manner and to the same extent as the testator
or intestate or the ward or person interested in such
trust fund would have been if he had been living and
competent to act and hold the stock in his own name.
1870t sec% 77

^ EC#

^XECUTORS, AND SO FORTH, M A Y VOTE.---- E v e r y

Rev.’ stat. Dis- such executor, administrator, guardian, or trustee shall

bia? ° f Colum represent the stock in his hands at all meetings o f the
"
Act Mar. 3, company, and may vote accordingly as a stockholder.
1901 sec 625

S e c . 626. P l e d g e s o f s t o c k .— No person holding stock
*n s u c k c o m P a n y as collateral security shall be personally
subject to any liability as stockholder of such company,
trict ofa oium but the person pledging such stock shall be considered as
c’
bi Act Mar 3 h ^ i n g the same, and shall be liable as a stockholder ac1901, sec. 626; cordingly; and every person who shall pledge his stock
i 287.Stat L* as collateral security may, nevertheless, represent the
’
same at all meetings and vote as a stockholder.
1870 1 M
ay 5’ ®EC*
S t o c k b o o k . —It shall be the duty of the trusRev.’stet ms-tees of every corporation formed under this chapter to
b t °f C _ cause a book to be kept by the treasurer or secretary
iaC
olum
Act Mar. 3, thereof, containing the names of all persons, alphabetic3101 ’stat! 62l.! ally arranged, who are or shall within six years have been
1287stockholders of such company, and showing their place
of residence, the number of shares o f stock held by them
respectively, the time when they became owners of such
shares, and the amount of stock actually paid in.
the usual business
1870, sec. 580, - S ec . 628. Such book shall, during 1
I
a ji i
1
*
1
p •
3i

’stat.

l .!

Act

Ma 5
1870, sec. y
578;
12

Rev. stat. Dis- hours or the day, on every business day, be open tor m -

trtct of Coium- g p ^ i o n o f stockholders and creditors o f the company

i 9<
fictseca6283: an(^ their personal representatives, at the office or prin31 ’stat. l . ’ cipal place of business o f such company in the District
,
1287*
where its business operations shall be located, and any
stockholder, creditor, or representative shall have a right
to make extracts from such books.
1870 * 8^ 581 ’
®EC*
T r a n s f e r s . — A person in whose name shares
Rev.’ stat. Dis- o f stock stand on the books o f a company shall be deemed

biai* °f Colum the owner thereof as regards the company, but if any
_
i 9^ Ctseca6293: suc^ Person
L
g ° 0(l faith sell, pledge, or otherwise
31 ’stat! l . ’ dispose o f any o f his shares o f stock to another and de,
l2 8 7.
liver to him the certificate for such shares, with written
authority for the transfer o f the same on the books, the
title o f the former shall vest in the latter so far as may
be necessary to effect the purpose o f the sale, pledge, or
other disposition, not only as between the parties them­
selves, but also as against the creditors o f and subsequent




CODE OF DISTRICT OF COLUMBIA.

p u rc h a s e rs f r o m th e f o r m e r , s u b je c t to th e p ro v is io n s o f
s e c tio n s ix h u n d r e d a n d fo u rte e n .
Sec. 6 3 0 . Such book shall be presumptive evidence of

123

g^ ay58|;

the facts therein stated in favor o f the plaintiff in any Rev.’ stat. dibsuit or proceeding against such company or against any b ct °£ Colum
ik
'

o n e o r m o re s to c k h o ld e rs .

Act Mar s.
1901, sec. 630; 31 Stat. L., 1287.'

S e c . 6 3 1 . I n s p e c t i o n o f b o o k s. — E v e r y o ffice r o r a g e n t lg ;^ t
o f a n y c o m p a n y w h o s h a ll n e g le c t to m a k e a n y p r o p e r Rev.’stat. dise n t r y i n su ch b o o k , o r s h a ll re fu s e o r n e g le c t to e x h ib it biaCt °f Colum“
th e s am e , o r a llo w th e s am e to be in s p e c te d a n d e x tr a c ts 19oicts^ca63i3;
to be ta k e n t h e r e fr o m , as h e r e in p r o v id e d , s h a ll b e 3 i ’stat. l .*,
d e e m e d g u i l t y o f a m is d e m e a n o r, a n d th e c o m p a n y s h a ll 1288'
p a y to th e p a r t y in ju r e d a p e n a lt y o f f i f t y d o lla r s f o r
a n y such n e g le c t o r r e fu s a l, a n d a ll d a m a g e s r e s u lt in g
th e r e fr o m .
Sec. 6 3 2 . E v e r y c o m p a n y t h a t s h a ll n e g le c t to k e e p
such b o o k o p e n f o r in s p e c tio n , as p r o v id e d in s e c tio n s ix Rev. ’stat'. dish u n d r e d a n d tw e n t y - e ig h t , s h a ll f o r f e i t to th e U n i t e d wa? ° ° um
S ta te s th e s u m o f f i f t y d o lla r s f o r e v e ry d a y i t s h a ll so 19oi,t sJc.a 6323;
n e g le c t, to be sued f o r a n d re c o v e re d in th e su p re m e 3 i stat. l . ’,
c o u rt o f th e D is t r ic t .
1
Sec. 6 3 3 . I n c r e a s e o r d im in u t io n o f s t o c k . — A n y
c o m p a n y w h ic h m a y be fo r m e d u n d e r th is s u b c h a p te r Rev.’ stat^Dum a y in c re a s e o r d im in is h its c a p it a l s to c k , b y c o m p ly in g biaCt ° ° um
w i t h th e p ro v is io n s o f th is s u b c h a p te r, to a n y a m o u n t 19oic Sec.a6333;
,t
w h ic h m a y be d e e m e d s u ffic ie n t a n d p r o p e r f o r th e p u r - 3 i 1
’stat. l .’
,
poses o f th e c o r p o r a tio n , a n d m a y also e x te n d its b u s i - 1
ness to a n y o th e r b u sin ess a u th o r iz e d h e re b y , s u b je c t to
th e p ro v is io n s a n d l i a b ilit ie s o f th is s u b c h a p te r.
Sec. 6 3 4 . B e f o r e a n y c o r p o r a tio n s h a ll be e n t it le d to 187o%M.a 586,
d im in is h th e a m o u n t o f its c a p it a l s to c k , i f th e a m o u n t
ofacbiumo f its d e b ts a n d lia b ilit ie s s h a ll e x c ee d th e a m o u n t o f bia.
c a p ita l to w h ic h i t is p ro p o s e d to be re d u c e d , such a m o u n t 1901,* sec a 6343;
o f d e b ts a n d l i a b ilit ie s s h a ll be s a tis fie d a n d re d u c e d so ^ 88 stat* L”
as n o t to e xc ee d such d im in is h e d a m o u n t o f c a p ita l.
S e c . 6 3 5 . W h e n e v e r a n y c o m p a n y s h a ll d e s ire to c a ll m o fs e c !1'5sl;
a m e e tin g o f th e s to c k h o ld e rs f o r th e p u rp o s e o f in c re a s ofacbiumin g o r d im in is h in g th e a m o u n t o f its c a p it a l s to c k , o r f o r bia.
e x te n d in g o r c h a n g in g its b u sin ess, i t s h a ll be th e d u t y o f lgoi^secfeas3;
th e tru s te e s o r d ire c to rs to p u b lis h a n o tic e , s ig n e d b y a ^ 8g stat*
m a j o r it y o f th e m , in a n e w s p a p e r i n th e D is t r ic t , a t le a s t
th re e successive w e e k s , a n d to d e p o s it a n o tic e th e r e o f
in th e p o s t-o ffic e a d d re s s e d to each s to c k h o ld e r a t h is
u s u a l p la c e o f re s id e n c e , a t le a s t th r e e w e e k s p re v io u s to
th e d a y fix e d u p o n f o r h o ld in g such m e e tin g , s p e c ify in g
th e o b je c t o f th e m e e tin g a n d th e tim e a n d p la c e w h e n
a n d w h e re su ch m e e tin g s h a ll be h e ld .
Sec. 6 36 . I f , a t a n y tim e a n d p la c e s p e c ifie d i n th e isfo,4 sec.a 589;
n o tic e p r o v id e d f o r in th e p r e c e d in g s e c tio n , s to c k h o ld e rs
of acbiums h a ll a p p e a r b y p r o x y o r in p e rs o n r e p r e s e n tin g n o t less bia.
th a n t w o - t h ir d s o f a ll th e s h are s o f s to c k o f th e c o r p o r a - igoifsecfese3;
tio n , th e y s h a ll o r g a n iz e a n d p ro c e e d to a v o te o f th o s e 31 ’stat. l .|
p re s e n t o r b y p r o x y .
1 ‘




124

CODE OF DISTRICT OF COLUMBIA.

1870t s(^a r> o
> o

011 canvassing the votes, it shall appear

®EC-

Rev.’stat. iiis- that a sufficient number of votes are in favor of increas-

trict °£ c°ium-ing or

|]1C amount of capital, or extending

iooiftseca637: or changing the business of the company, a certificate
stat. l.,’ o f the proceedings, showing a compliance with the pro1288‘
visions of this subchapter, the amount o f capital actu­
ally paid in, the business to which it is extended or
changed, the whole amount o f debts and liabilities of
the company, and the amount to which the capital shall
be increased or diminished, shall be made out, signed, and
verified by the affidavit of the chairman, and be counter­
signed by the secretary.
1870 1seca59i’
^ EC*
®llc^ certificate shall be acknowledged by the
Rev.’stat. Dis-chairman, and filed as required by section six hundred
tHct of coium-amj sjx ^ anj w]ieil s0 filed the capital stock o f such corpo-

31

1901*86^638:n i^ on shaH
increased or diminished to the amount
si ’stat. l .|specified in the certificate, and the business extended or
1288,
changed accordingly; and the company shall be entitled
to the privileges and provisions and be subject to the
liabilities o f this subchapter.
i87<ft seca3
r>92’
^ vo*e
leas^ two-thirds of all the shares
stat’ D o f the stock of a company shall be necessary to an ini'st.’
C°Ac?bM
ar. 3, crease or diminution of the amount o f its capital stock or
1901, sec. 039; the extension or change o f its business.

Rev.

31 Stat.
1288.

L.,

Act May 5,
S ec . 640. COPY OF CERTIFICATE TO BE EVIDENCE.— A C0DV
1870, sec. o93j «
■*r» j
p •
i *
Rev. stat. D is- or any certificate of incorporation filed in pursuance 01

bia^ °f Colum this subchapter, certified by the recorder of deeds to be a
‘
i9^ictseca646S:^rue C
(W an(l
wh °le o;f such certificate, shall be re31 stat. l .,’ ceived in all courts and places as presumptive legal evi1288‘
dence of the facts therein stated.
S ec .

641.—

Refers to title and fire insurance companies.
S ec s.

642, 643, and 644.—

Refer to sale of unclaimed freight.

SUBCHAPTER V II.
BUILDING ASSOCIATIONS.

691. O b j e c t s . —The object of such corporation
be the accumulation of a capital in money to be de­
p i c t M a r 4 rive(l from the savings and accumulations by the mem1909 ; 35 stat! bers thereof, to be paid into said corporation in such sums
l . , 1058.
an(j a£ suck ^ mes as may fa designated by the by-laws of
said corporation, from which the members thereof may
obtain advances upon their shares of stock: Provided,
That the Comptroller of the Currency, in addition to the
powers conferred upon him by law for the examination
of national banks, is further authorized, whenever he may
deem it useful, to cause examination to be made into the
Act M a r

3,

Sec.

3 i 01 stat. 69l . ; shall
,




CODE OF DISTRICT OF CO L U M B IA .

125

condition of any building association incorporated under
the provisions of this chapter, as well as any other build­
ing or loan association located or doing business in the
District of Columbia. The expenses necessarily incurred
in making any such examination shall not exceed the sum
of twenty-five dollars for the first five hundred thousand
dollars or fractional part thereof of assets and the sum
of ten dollars for each additional two hundred and fifty
thousand dollars or fractional part thereof of assets, and
be paid by such association to the Comptroller of the Cur­
rency at the time of the making of such examination:
And provided further, That every building or loan asso­
ciation located and doing business in the District of
Columbia shall make to the Comptroller of the Currency
at least one report during each year, according to the
fcrm which may be prescribed by him, verified by the
oath or affirmation of the president or secretary of such
association and attested by the signature of at least three
o f the directors. The said Comptroller shall also have
power to take possession of any company or association
whenever in his judgment it is insolvent or is knowingly
violating the laws under which such company is incor­
porated, and to liquidate the same in the manner pro­
vided in the laws of the United States in respect to na­
tional banks: Provided further, That from and after the
first day of July, anno Domini nineteen hundred and
nine, no person, company, association, copartnership, or
corporation shall conduct or carry on in the District o f
Columbia the kind of business named in this Act, with­
out strict compliance in all particulars with the provis­
ions of this A ct: Provided, That building associations
heretofore organized and in actual operation before the
passage o f this Act need not be incorporated. Any per­
son, officer, or agent of any company, firm, or corpora­
tion who shall willfully violate any of the provisions of
this section shall be deemed guilty o f a misdemeanor, and
shall on conviction thereof be punished by a fine of not
more than one thousand dollars or by imprisonment not
longer than two years, or by both said punishments, in
the discretion of the court. That any willful false swear­
ing in regard to any certificate, or report, or public notice
required by the provisions of this Act shall be perjury,
and shall be punished as such according to the laws o f the
District o f Columbia. And any misappropriation of any
of the money of any corporation or company, formed
under or availing itself of the privileges of this Act, or of
any building or loan association located or doing business
in the District of Columbia, or any money, funds, or
property intrusted to any such corporation, company, or
association, shall be held to be larceny and shall be pun­
ished as such under the laws of said District.
S e c . 691 a. That any building association incorporated
Act mir . 4,
or unincorporated, organized and existing under the l 9,°9i;058. S t a t .
laws of any State or Territory, except the District of



126

CODE OF DISTRICT OF C O L U M B IA .

Columbia, to do or now doing, in the District o f Colum­
bia, a building association business or otherwise operat­
ing as a building association, shall be subject to all the
provisions o f the foregoing section of this Act in respect
o f the powers of the Comptroller of the Currency here­
under, and, any such association or corporation shall
at all times keep on deposit with the Comptroller o f the
Currency in money or stocks, bonds or mortgages or
other securities to be approved by said officer not less
than ten per centum of its capital and surplus as security
for its depositors and creditors, and as a guarantee for
the faithful performance of its contracts, and may also
make such further deposit of its assets as above de­
scribed with the Comptroller for such purpose as it may
from time to time desire so to do.

SU BCH APTER X .
SAVINGS BANKS.

S e c . 7 1 3 .—
Report to be made to Comptroller.

Sec. 7 1 4 Comptroller authorized to make examinations.
A c t J u n e 3 0,
1 8 7 6 , sec. 6 ;
S e c . 7 1 3 (as amended 1 9 0 6 ) . Required to make same
19 S ta t. L . , 6 4.
A c t M a r. 3 , REPORTS AS NATIONAL BANKS— COMPTROLLER AUTHORIZED TO
1 9 0 1 , sec. 7 1 3 ;
a p p o in t
r e c e iv e r s .
31
S ta t.
L .,
1302.
A c t Ju n e 30,
1 9 0 2 , sec. 7 1 3 ;
32 S ta t. L . , 534.
A c t Ju n e 25,
1 9 0 6 , sec. 7 1 3 ;
24 S t a t . L . , 4 5 8 .

—A ll savings banks, or savings com­
panies, or trust companies, or other banking institutions,
organized under authority of any act o f Congress to do
business in the District o f Columbia, or organized by
virtue of the laws of any of the States o f this Union,
and having an office or banking house located within the
District or Columbia where deposits or savings are re­
ceived, shall be, and are hereby, required to make to the
Comptroller of the Currency and to publish all the re­
ports which national banking associations are required to
make and publish under the provisions of sections fiftytwo hundred and eleven, fifty-two hundred and twelve,
and fifty-two hundred and thirteen o f the Revised
Statutes o f the United States, and shall be subject to the
same penalities for failure to make such reports as are
therein provided, which penalties may be collected by suit
before the supreme court of the District of Columbia.
And the Comptroller shall have power, when in his
opinion it is necessary, to take possession of any such
bank or company, for the reasons and in the manner and
to the same extent as are provided in the laws of the
United States with respect to national banks: Provided,
hoivever, That banking institutions having offices or
banking houses in foreign countries as well as in the Dis­
trict of Columbia shall only be required to make and
publish the reports provided for in this section semi-




CODE OF DISTRICT OF C O L U M B IA .

127

annually: And provided further, That all publications
authorized or required by said section fifty-two hundred
and eleven o f the Revised Statutes, and all other publica­
tions authorized or required by existing law to be made
in the District o f Columbia, shall be printed in two or
more daily newspapers of general circulation, published
in the City o f Washington, one of which shall be a morn­
ing newspaper.
S e c . 714. E xam in a tio n o f savings banks.— The C om p-18^ rPltat!
troller of the Currency, in addition to the powers now L ’A^ \ ar 3
conferred upon him by law for the examination o f 1901, sec.a 7 i 4 •
national banks, is hereby further authorized, whenever ?302stat* L‘*
he may deem it useful, to cause examination to be made
into the condition of any bank mentioned in the preced- 32 stat. l . , 534!
ing section. The expense of such examination shall be loo^se^m5;
paid in the manner provided by section fifty-two hundred 34 stat. l., 459!
and forty o f the Revised Statutes of the United States
relating to the examination of national banks.
N ote .— Orig. sec. 332, Rev. Statutes.

SU BCH APTER X I.
TRUST, LOAN, MORTGAGE, AND CERTAIN OTHER CORPORATIONS.
Sec. 715. For what purposes to be
formed.
Sec. 710. Organization certificate.
Sec. 717. Powers of Commissioners of
the District.
Sec. 718. Notice of application to Com­
missioners.
Sec. 710. Recording charter, and so
forth.
Sec. 720. Reports to Comptroller.
Sec. 721. Special powers.
Sec. 722. May be appointed trustee,
executor, and so forth.
Sec. 723. Oath.
Sec. 724. Stock to be security.
Sec. 725. Existing companies.
Sec. 726. Real estate.
Sec. 727. Duration of charter.
Sec. 728. Capital stock,
Sec. 729. Shares.
See. 730. Annual reports to Comptrol­
ler.
Sec*. 731. Liability of trustees.
Sec. 732. False swearing.

Sec. 733. Stock personal estate.
Sec. 734. Liability of stockholders.
Sec. 735. Stock to be paid up in money
only.
Sec. 730. Number of trustees.
Sec. 737. Officers.
Sec. 738. By-laws.
Sec. 739. Dividends.
Sec. 740. Dividends.
Sec. 741. Liabilities exceeding assets.
Sec. 742. Executors, and so forth, hold­
ing stock.
Sec. 743. Increase of capital stock.
Sec. 744. Copy of certificate to be evi­
dence.
Sec. 745. No bond to be required when
company appointed executor,
and so forth, except, and so
forth.
Sec. 740. Bond may be required.
Sec. 747. Corporations organized under
State laws.
Sec. 748. Right to amend or repeal re­
served to Congress.

S e c . 715. F or w h a t purposes to be formed.— Corpora- 18^ t Oct. 1,
tions may be formed within the District o f Columbia for 26 stat. l.,’ 625!
the purposes hereinafter mentioned in the following 1901,*8 ^ 7 1 5 •
manner: At any time hereafter any number of natural ||03stat L-»
persons, citizens of the United States, not less than
twenty-five, may associate themselves together to form a
company for the purpose of carrying on in the District of




128

CODE OF DISTRICT OF C O L U M B IA .

Columbia any one of the three classes of business herein
specified, to w it:
First. A safe deposit, trust, loan, and mortgage busi­
ness.
Second. A title insurance, loan, and mortgage business.
Third. A security, guaranty, indemnity, loan, and
mortgage business: Provided, That the capital stock of
any of said companies shall not be less than one million
dollars: That any o f said companies may also do a stor­
age business when their capital stock amounts to the sum
o f not less than one million two hundred thousand dollars.
1 8 9 0 * sec4, 2 '
^EC*
O R G A N IZ A T IO N
C E R T I F I C A T E . — Such
persons
2 6 stat. l . , ‘ 626! shall, under their hands and seals, execute, before some
i 9oi,tsec.a7i 63; officer in said District competent to take the acknowledg? 303 S t a t *
L ’ ment
deeds, an organiaztion certificate, which shall
specifically state—
First. The name of the corporation.
Second. The purposes for which it is formed.
Third. The term for which it is to exist, which shall
not exceed the term o f fifty years, and be subject to altera­
tion, amendment, or repeal by Congress at any time.
Fourth. The number of its directors, and the names
and residences o f the officers who for the first year are to
manage the affairs of the company.
Fifth. The amount of the capital stock and its sub­
division into shares.

3:

® EC * ^17-

1 8 9 0 ,1 sec!* 41 ;
1

S EC * 7 1 8 .

1890*

sec1'

P ° W E R S 0 F C O M M IS S IO N E R S O F T H E

D IS T R IC T .—

stat. l.,^ 6 2 6 ! That this certificate shall be presented to the Commis1 0 ® sec.a?’i 7 •si oners of the District, who shall have power and discre91
1303 Stat’ L ^ an
m
§ran^ or refuse to said persons a charter o f incor­
poration upon the terms set forth in the said certificate
and the provisions o f this subchapter.

26

N O T IC E

O F A P P L IC A T IO N

TO

C O M M I S S I O N E R S . ----

26Ac?Siar623 ^>rev^
0us *° ^ie Presen^a^ on
^ ie sa^ certificate to the
1901, sec.a7 i 8 •
said Commissioners, notice of the intention to apply for
i 303.Stat* L" such charter shall be inserted in two newspapers o f gen­
eral circulation, printed in the District of Columbia, at
least four times a week for three weeks, setting forth
briefly the name of the proposed company, its character
and object, the names of the proposed corporators, and
the intention to make application for a charter on a
specified day, and the proof of such publication shall be
presented with said certificate when presentation thereof
is made to said Commissioners.
1890* sec* 5
*:
^ EC* ^ 19. RECORDING CHARTER, AND SO FORTH.— I f the
26*stat.L.*626! charter be “
granted as aforesaid,/ it,7 together with the cerAAf vr0m o
C
?
1901, sec. 7i 9 ;tificate o f the
1304 Stat* L ” thereon, shall

Commissioners granting the same indorsed
be filed for record in the office o f the re­
corder of deeds for the District o f Columbia, and shall be
recorded by him. On the filing of the said certificate
with the said recorder o f deeds as herein provided, ap­
proved as aforesaid by the said Commissioners, the per­
sons named therein and their successors shall thereupon
and thereby be and become a body corporate and politic,




CODE OF DISTRICT OF CO L U M B IA .

129

and as such shall be vested with all the powers and
charged with all the liabilities conferred upon and im­
posed by this subchapter upon companies organized un­
der the provisions hereof: Provided, however, That no
corporation created and organized under the provisions
hereof, or availing itself of the provisions hereof as con­
tained in section seven hundred and twenty-five shall be
authorized to transact the business of a trust company,
or any business o f a fiduciary character, until it shall
have filed with the Comptroller of the Currency a copy
o f its certificate o f organization and charter, and shall
have obtained from him and filed the same for record
with the said recorder of deeds, a certificate that the said
capital stock o f said company has been paid in and the
deposit o f securities made with said Comptroller in the
manner and to the extent required by this subchapter.
S e c . 7 20 . R e p o r t s t o C o m p t r o l l e r . — A l l c o m p a n ie s Act Oct. 1,
o r g a n iz e d h e re u n d e r , o r w h ic h s h a ll, u n d e r th e p ro v is io n s Ifs t a t .sl? ' 62ei
h e r e o f, b eco m e e n title d to tr a n s a c t th e b usiness o f a t r u s t 19o\cts^ a 7263:
c o m p a n y , s h a ll r e p o r t to th e C o m p t r o lle r o f th e C u r r e n c y 31 stat. l.;
in th e m a n n e r p re s c rib e d b y sec tio n s f i f t y - t w o h u n d r e d 1304*
a n d e le v e n , f i f t y - t w o h u n d r e d a n d tw e lv e , a n d f i f t y - t w o
h u n d r e d a n d t h ir t e e n o f th e R e v is e d S ta tu te s o f th e
U n i t e d S ta te s , i n th e case o f n a tio n a l b a n k s , a n d a ll acts
a m e n d a to r y th e r e o f o r s u p p le m e n ta r y th e re to , a n d w i t h
s im ila r p ro v is io n s f o r c o m p e n s a tin g e x a m in e rs , a n d s h a ll
be s u b je c t to li k e p e n a ltie s f o r f a i lu r e to d o so. T h e
C o m p t r o lle r s h a ll h a v e a n d e x e rc is e th e sam e v is it o r ia l
p o w e rs o v e r th e a ffa ir s o f th e s a id c o r p o r a tio n as is c o n ­
fe r r e d u p o n h im b y s e c tio n f i f t y - t w o h u n d r e d a n d f o r t y
o f th e R e v is e d S ta tu te s o f th e U n i t e d S ta te s in th e case
o f n a tio n a l b a n k s . H e s h a ll also h a v e p o w e r , w h e n in
h is o p in io n it is n e c e s s a ry , to ta k e possession o f a n y s u ch
c o m p a n y f o r th e re a s o n s a n d in th e m a n n e r a n d to th e
sam e e x te n t as a re p r o v id e d in th e la w s o f th e U n i t e d
S ta te s w i t h re s p e c t to n a tio n a l b a n k s .
S e c . 7 2 1 . S p e c i a l p o w e r s . — A l l c o m p a n ie s o r g a n iz e d
Act Oct. i,
u n d e r th is a c t a re h e re b y d e c la re d to be c o rp o ra tio n s p o s - l f stat.S 627!
L?,'
sessed o f th e p o w e rs a n d fu n c tio n s o f c o rp o ra tio n s g e n - 19^1
cts^ a 72i3:
e r a lly , a n d s h a ll h a v e p o w e r —
3 i stat. l . |

First. To make contracts.
1304‘
Second. To sue and be sued, implead and be impleaded,
in any court as fully as natural persons.
Third. To make and use a common seal and alter the
same at pleasure.
Fourth. To loan money.
Fifth. When organized under subdivision one of sec­
tion seven hundred and fifteen of this subchapter to accept
and execute trusts of any and every description which
may be committed or tranferred to them, and to accept
the office and perform the duties o f a receiver, assignee,
executor, administrator, collector o f estate or property of
any decedent, guardian of the estate of minors, with the
consent o f the guardian o f the person of such minor, and
88020°—11-----9



130

CODE OF D ISTR ICT OF C O L U M B IA .

committee of the estates o f lunatics and idiots whenever
any trusteeship or any such office or appointment is com­
mitted or transferred to them, with their consent, by any
person, body politic or corporate, or by any court in the
District o f Columbia; and all such companies organized
under the first subdivision of section seven hundred and
fifteen of this subchapter are further authorized to accept
deposits o f money for the purposes designated herein,
upon such terms as may be agreed upon from time to
time with depositors, and to act as agent for the purpose
of issuing or countersigning the bonds or obligations o f
any corporation, association, municipality, or State, or
other public authority, and to receive and manage any
sinking fund on any such terms as may be agreed upon,
and shall have power to issue its debenture bonds upon
deeds o f trust or mortgages of real estate to a sum not ex­
ceeding the face value o f said deeds of trust or mortgages,
and which shall not exceed fifty percentum o f the fair
cash value of the real estate covered by said deeds or mort­
gages, to be ascertained by the Comptroller of the Cur­
rency; but no debenture bonds shall be issued until the
securities on which the same are based have been placed in
the actual possession o f the trustee named in the deben­
ture bonds, who shall hold said securities until all o f said
bonds are paid; and when organized under the second
subdivision o f section seven hundred and fifteen o f this
subchapter said company is authorized to insure titles to
real estate and to transact generally the business men­
tioned in said subdivision; and when organized under the
third subdivision o f section seven hundred and fifteen of
this subchapter said company is hereby authorized, in
addition to the loan and mortgage business therein men­
tioned to secure, guarantee, and insure individuals, bodies
politic, associations, and corporations against loss by or
through trustees, agents, servants, or employees, and to
guarantee the faithful performance of contracts and obli­
gations of whatever kind entered into by or on the part of
any person or persons, association, corporation or corpo­
rations, and against loss o f every kind: Provided, That
any corporations formed under the provisions o f this sub­
chapter when acting as trustee shall be liable to account
for the amounts actually earned by the moneys held by it
in trust in addition to the principal so held; but such cor­
poration may be allowed a reasonable compensation for
services performed in the care o f the trust estate.
A c t O c t. 1,
1 8 9 0 , sec. 8 ;
2 6 S ta t. L . , 627.
A c t M a r. 3,
1 9 0 1 , sec. 7 2 2 ;
31
S ta t.
L .,
1305.

Se c.

722. M ay

be

a p p o in te d

tru s te e ,

e x e c u to r,

a nd

so f o r t h . —In all cases in which application shall be made
to any court in the District of Columbia, or wherever it
becomes necessary or proper for said court to appoint a
trustee, receiver, administrator, collector, guardian o f the
estate of a minor, or committee of the estate of a lunatic,
it shall and may be lawful for said court (but without
prejudice to any preference in the order of any such ap-




CODE OF DISTRICT OF CO L U M B IA .

131

p o in tm e n ts r e q u ir e d b y e x is tin g l a w ) to a p p o in t a n y
s uch c o m p a n y o r g a n iz e d u n d e r th e fir s t s u b d iv is io n o f
s ec tio n seven h u n d r e d a n d fif te e n o f th is s u b c h a p te r, w i t h
its assent, su ch tru s te e , re c e iv e r, a d m in is tr a to r , c o m m it­
te e , o r g u a r d ia n , w i t h th e c o n se n t o f th e g u a r d ia n o f th e
p e rs o n o f such m i n o r : Provided, however, T h a t n o c o u rt
o r ju d g e w h o is a n o w n e r o f o r in a n y m a n n e r fin a n c ia lly
in te re s te d in th e s to c k o r business o f such c o rp o r a tio n
s h a ll c o m m it b y o r d e r o r d e cree to a n y such c o rp o r a tio n
a n y t r u s t o r f id u c ia r y d u t y .
S e c . 723. O a tii.— Whenever any corporation operating lgAct Oct. 1,
under this code shall be appointed such trustee, executor, 26 stat. l.,*62s!
administrator, collector, receiver, assignee, guardian,
committee as aforesaid, the president, vice-president, sec- j305stat* L,»
retary, or treasurer of said company shall take the oath
oi affirmation now required by law to be made by any
trustee, executor, administrator, collector, receiver, as­
signee, guardian, or committee.

S e c . 7 2 4 . S to c k t o b e s e c u r i t y . — W h e n a n y c o u r t s h a ll
^ ‘io1
a p p o in t th e s a id c o m p a n y a tr u s te e , re c e iv e r, a d m in is - 26 stat. l ‘, 62s!
t r a t o r , c o lle c to r, o r such g u a r d ia n o r c o m m itte e , o r s h a ll iooi*sM .a 724 •
o r d e r th e d e p o s it o f m o n e y o r o th e r v a lu a b le s w i t h s a id ^ 05stat* L *»
c o m p a n y , o r w h e re a n y i n d iv id u a l o r c o rp o ra tio n s h a ll
a p p o in t a n y o f s a id c o m p a n ie s a tru s te e , e x e c u to r, as­
s ig n ee , o r such g u a r d ia n , th e c a p it a l s to c k o f s a id c o m ­
p a n y s u b s c rib e d f o r o r ta k e n , a n d a ll p r o p e r t y o w n e d b y
s a id c o m p a n y , to g e th e r w i t h th e l i a b i l i t y o f th e s to c k ­
h o ld e rs a n d officers as h e r e in p r o v id e d , s h a ll b e ta k e n
a n d c o n s id e re d as th e s e c u rity r e q u ir e d b y la w f o r th e
f a i t h f u l p e r fo r m a n c e o f its d u tie s , a n d s h a ll be abso­
lu t e ly lia b le in case o f a n y d e f a u lt w h a te v e r .
Sec. 7 2 5 . E x istin g companies.— A n y s a fe d e p o s it c o m - jg jJ ^ ^ ^ i i 1
p a n y , t r u s t c o m p a n y , s u re ty o r g u a r a n t y c o m p a n y , o r 2 6 stat.i,.‘, 628!
tit le -in s u r a n c e c o m p a n y n o w in c o r p o r a te d a n d o p e r a tin g io o i* Sec.a725;
u n d e r th e la w s o f th e U n i t e d S ta te s in th e D is t r ic t o f ^ 06 stat- L *»
C o lu m b ia , o r o f a n y o f th e S ta te s , a n d n o w d o in g b u s i­
ness in s a id D is t r ic t , m a y a v a il it s e l f o f th e p ro v is io n s o f
th is s u b c h a p te r o n f i l i n g in th e office o f th e re c o rd e r o f
deeds o f th e D is t r ic t o f C o lu m b ia , o r wTi t h th e C o m p ­
t r o l le r o f th e C u r r e n c y , a c e r tific a te o f its in te n tio n to
d o so, w h ic h c e rtific a te s h a ll s p e c ify w h ic h o n e o f th e
th r e e classes o f business set o u t in s e c tio n seven h u n d r e d
a n d fif te e n i t w i l l c a r r y o n , a n d s h a ll b e v e r ifie d b y th e
o a th o f its p re s id e n t to th e e ffe c t t h a t i t h a s in e v e ry
re s p e c t c o m p lie d w i t h th e re q u ire m e n ts o f e x is tin g la w ,
e s p e c ia lly w i t h th e p ro v is io n s o f th is s u b c h a p te r; t h a t
its c a p ita l s to c k is p a id in as p r o v id e d in sec tio n seven
h u n d r e d a n d t h ir t y - f i v e o f th is s u b c h a p te r a n d is n o t
im p a ir e d , a n d t h e r e a f t e r su ch c o m p a n y m a y e x e rc is e a ll
p o w e rs a n d p e r f o r m a ll d u tie s a u th o r iz e d b y a n y one o f
th e s u b d iv is io n s o f s e c tio n seven h u n d r e d a n d fif te e n o f
th is s u b c h a p te r in a d it io n to th e p o w e rs n o w l a w f u l l y
e x e rc is e d b y such c o m p a n y .




132

CODE OF DISTRICT OF C O L U M B IA .

1890 f secCt‘ i 2
c
1:
®EC*
®EAL e s t a t e . —Any company operating under
26 stat. l ’, 628! this subchapter may lease, purchase, hold, and convey
i 90i%ec.a 726 •
real estate, not exceeding in value five hundred thousand
i 306 S t a t ‘
L" dollars, and such in addition as it may acquire in satis­
faction o f debts due the corporation, under sales, decrees,
judgments, and mortgages. But no such association
shall hold the possession of any real estate under fore­
closure of mortgage, or the title and possession of any
real estate purchased to secure any debts due to it, for a
longer period than five years. .
1890* sec.Ss1; ^ e c . ^27. D u r a t i o n o f c h a r t e r .— The charters for in26
62§ corporations named in this subchapter may be made per*
A c t M a r. 3,
v
*4 j
.
•
4’
.
u
■
* •
1901, sec. 7 2 7 ; petual, or may be limited m time by their provisions,
1306 Stat* J subject to the approval o f Congress.
j’’
1890* secC t' i 4 :
^E0,
C a p i t a l s t o c k . — The capital stock of every
26 stat. L 62«! such company shall be at least one million dollars, and
i.',
1901 ,*sec.a728*;at least fifty per centum thereof must have been paid in,
1306 Sta* L,,*u cas^ or ^y.
*
transfer of assets as hereinafter pro­
vided in section seven hundred and thirty-five of this
subchapter, before any such company shall be entitled to
transact business as a corporation, except with its own
members, and before any company organized hereunder
shall be entitled to transact the business of a trust com­
pany, or to become and act as an administrator, executor,
guardian o f the estate of a minor, or undertake any other
kindred fiduciary duty, it shall deposit, either in money
or in bonds, mortgages, deed of trust, or other securities
equal in actual value to one-fourth of the capital stock
paid in, with the Comptroller of the Currency, to be
kept by him upon the trust and for the purposes herein­
after provided; and the said Comptroller may from time
to time require an additional deposit from any such com­
pany, to be held upon and for the same trust and pur­
poses, not exceeding, however, in value one-half the paidin capital stock; and the said Comptroller shall not issue
to any corporation the certificate heretofore provided for
until said deposit with him of securities required by this
section. Within one year after the organization of any
corporation under the provisions of this subchapter, or
after any corporation heretofore existing shall have
availed itself of the powers and rights given by this
subchapter in the manner herein provided for, its entire
capital stock shall have been paid in.
1890* sect#
i5: ^EC'
^HARES*
—The capital stock o f every such
26 stat?l.*, 629 ! company shall be divided into shares of one hundred doli 9oic,t sec.a 7 2 9 : ^
ars each- It shall be lawful for such company to call for
lioeStat’ L‘' an(^ demand from the stockholders, respectively, all sums
of money by them subscribed, at such time and in such
proportions as its board of directors shall deem proper,
within the time specified in section seven hundred and
twenty-eight, and it may enforce payment by all remedies
provided by law; and if any stockholder shall refuse or
neglect to pay any installment as required by a resolution
of the board of directors, after thirty days’ notice of the
same, the said board of directors may seil at public auc-




CODE OF DISTRICT OF C O L U M B IA .

133

tio n to th e h ig h e s t b id d e r so m a n y sh are s o f s a id s to c k as
s h a ll p a y s a id in s t a llm e n t, u n d e r such g e n e r a l r e g u la tio n s
as m a y be a d o p te d in th e b y -la w s o f s a id c o m p a n y , a n d
th e h ig h e s t b id d e r s h a ll be ta k e n to be th e p e rs o n w h o
o ffe rs to p u rc h a s e th e le a s t n u m b e r o f sh are s f o r th e
assessm ent d u e .
S e c . 730. A n n u a l r e p o r t s
to
C o m p tr o lle r .— E v e ry
A c t O c t. 1,
such c o m p a n y s h a ll a n n u a lly , w i t h i n tw e n t y d a y s a f t e r M s t a t L , 020!
th e f ir s t o f J a n u a r y o f each y e a r , m a k e a r e p o r t to th e 19oictSeca 73o :
C o m p t r o lle r o f th e C u r r e n c y , wT ic h s h a ll be p u b lis h e d in 31 Jstat. ‘l . |
h
a n e w s p a p e r in th e D is t r ic t , w h ic h s h a ll s ta te th e a m o u n t
o f c a p ita l a n d o f th e p r o p o r tio n a c tu a lly p a id , th e a m o u n t
o f d e b ts , a n d th e g ro ss e a rn in g s f o r th e y e a r e n d in g D e ­
c e m b e r t h i r t y - f i r s t th e n n e x t p re v io u s , to g e th e r w i t h t h e i r
e xpenses, w h ic h r e p o r t s h a ll be s ig n e d b y th e p re s id e n t
a n d a m a j o r it y o f th e d ire c to rs o r tru s te e s , a n d s h a ll be
v e r ifie d b y th e o a th o f th e p r e s id e n t, s e c re ta ry , a n d a t
le a s t th re e o f th e d ire c to rs o r tru s te e s ; a n d s a id c c^ n p an y
s h a ll p a y to th e D is t r ic t o f C o lu m b ia , in lie u o f p e rs o n a l
ta x e s f o r e ac h n e x t e n s u in g y e a r , o n e a n d o n e -h a lf p e r
c e n tu m o f its gro ss e a rn in g s f o r th e p r e c e d in g y e a r , s h o w n
b y s a id v e r ifie d s ta te m e n t, w h ic h a m o u n t s h a ll be p a y a b le
to th e c o lle c to r o f ta x e s a t th e tim e s a n d in th e m a n n e r
i h a t o th e r ta x e s a re p a y a b le .
S e c . 731. L i a b i l i t y
o f
t r u s t e e s . — I f a n y c o m p a n y ig Acrt O 1,
ct.
f a ils to c o m p ly w i t h th e p ro v is io n s o f th e p r e c e d in g sec- 20 stat? l . ’, 629!
t io n , a ll th e d ire c to rs o r tru s te e s o f such c o m p a n y s h a ll b e 19qj^ J £ aj 313:
j o i n t l y a n d s e v e r a lly lia b le f o r th e d e b ts o f th e c o m p a n y 31 ’stat. l . |
th e n e x is tin g , a n d f o r a ll t h a t s h a ll be c o n tra c te d b e fo re
such r e p o r t s h a ll be m a d e : Provided, T h a t in case o f f a i l ­
u re o f th e c o m p a n y in a n y y e a r to c o m p ly w i t h th e p r o ­
v is io n s o f s e c tio n seven h u n d r e d a n d t h i r t y o f th is s u b ­
c h a p te r , a n d a n y o f th e d ire c to rs s h a ll, on o r b e fo re
J a n u a r y f if t e e n t h o f such y e a r , file h is w r it t e n re q u e s t f o r
such c o m p lia n c e w i t h th e s e c re ta ry o f th e c o m p a n y , th e
C o m p t r o lle r o f th e C u r r e n c y , a n d th e r e c o r d e r o f deeds
o f th e D is t r ic t o f C o lu m b ia , such d ir e c to r s h a ll be e x ­
e m p t fr o m th e l i a b i l i t y p re s c rib e d i n th is s ec tio n .
S e c . 732. F a l s e
s w e a r i n g . — A n y w i l l f u l fa ls e s w e a rA c t O c t. 1,
in g in r e g a r d to a n y c e rtific a te o r r e p o r t o r p u b lic n o tic e 26st’at?L.'f gl?)!
r e q u ir e d b v th e p ro v is io n s o f th is s u b c h a p te r s h a ll b e iQ o i^ e c ^ s i3’
*
p e r ju r y , a n d s h a ll be p u n is h e d as su ch a c c o rd in g to th e at Jstat. l . |
la w s o f th e D i s t r i c t o f C o lu m b ia . A n y m is a p p r o p r ia t io n o f a n y o f th e m o n e y o f a n y c o r p o r a tio n o r c o m p a n y
fo r m e d u n d e r th is a c t, o r o f a n y m o n e y , fu n d s , o r p r o p ­
e r t y in tr u s t e d to i t , s h a ll be h e ld t o be la r c e n y , a n d s h a ll
b e p u n is h e d as such u n d e r th e la w s o f s a id D is t r ic t .
S e c . 7 3 3 . S t o c k p e r s o n a l e s t a t e . — T h e s to c k o f such 1 8 9o *
c o m p a n y s h a ll be d e e m e d p e rs o n a l e s ta te , a n d s h a ll b e 26|ta t.^ G 2 9 !
t r a n s fe r a b le o n ly on th e b o o k s o f such c o m p a n y in such 1901, sec. 733 •
m a n n e r as s h a ll be p re s c rib e d b y th e b y -la w s o f th e c o m - i 307.Stat‘ L *'
p a n y ; b u t n o s h are s s h a ll be tr a n s fe r a b le u n t il a ll p r e ­
v io u s c a lls th e re o n s h a ll h a v e b e e n f u l l y p a id , a n d th e s a id
s to c k s h a ll n o t be ta x a b le in th e h a n d s o f i n d iv id u a l o w n -




134

CODE OF D ISTR ICT OF C O L U M B IA .

ers, the tax on the gross earnings of the company herein­
before provided being in lieu of other personal tax. All
certificates of the stock of any company organized under
this subchapter shall show upon their face the par value
o f each share and the amount paid thereon.
1890^ sec.t* 0
2 1; ^ E C . ^ 4 . L IA B IL IT Y OF STOCKHOLDERS.---A ll stockhold26 stat. 1^ 630! ers o f every company incorporated under this subchapter,
i 9^,%ec.a7 3 4 ; or availing itself of its provisions under section seven
i 307.Stat’ T hundred and twenty-five, shall be severally and individu­
j’’
ally liable to the creditors o f such company to an amount
equal to and in addition to the amount of stock held by
them respectively for all debts and contracts made by
such company.
1890* secCt2 1: ^E C .
1
STOCK TO BE PAID UP IN M O N E Y O N L Y .---Notll26 stat. l .*, 63o! ing but money shall be considered as payment o f any
1901 sec.a735* P a i‘t o f the capital stock, except that in the case of any
;
i 308 Stat’ L m c o m P a n y now doing business in the District o f Columbia
in any o f the classes herein provided for, or under any
act o f Congress or by virtue o f the laws o f any o f the
States, and which company has actually received full pay-!
ment in money o f at least fifty per centum o f the capital
stock required by this act and which company desires to
obtain a charter under this act, all the assets or property
may be received and considered as money, at a value to
be appraised and fixed by the Comptroller o f the Cur­
rency: Provided, That all such assets and property are
also transferred to and are thereafter owned by the com­
pany organized under this act.
1890 * secC 221:
t‘
^E0,
N u m b e r o f t r u s t e e s .—The stock, property,
26 stat. l .‘, 63o! and concerns of such company shall be managed by not
i 9oi,^ec^e?•
less than nine nor more than thirty directors or trustees,
i 308 Stat‘ L,,who shall, respectively, be stockholders and at least onehalf residents and citizens of the District o f Columbia,
and shall, except the first year, be annually elected by the
stockholders at such time and place and after such pub­
lished notice as shall be determined by the by-laws o f the
company, and said directors or trustees shall hold until
their successors are elected and qualified.
1890 * secC 231:
t
^ec.
• O f f i c e r s .—There shall be a president o f the
26 stat. l .‘, 63o! company, who shall be a director, also a secretar}^ and a
190isec.a737* treasurer, all o f whom shall be chosen by the directors or
’;
isosstat‘ L"trustees: Provided, That only one o f the above-named
offices shall be held by the same person at the same time.
Subordinate officers may be appointed by the directors or
trustees, and all such officers may be required to give such
security for the faithful performance of the duties of
their office as the directors or trustees may require.
1890 4 secC 241:
t*
®EC*
B y - l a w s . —The directors or trustees shall
26 stat. l .‘, 63o! have power to make such by-laws as they deem proper for
i 90 i,tsec.a7 3 8 ; the management or disposal o f the stock and business
i 308.Stat* L'’ affa^
rs
such company, not inconsistent with the pro­
visions of this subchapter, and prescribing the duties of
officers and servants that may be employed, for the ap­
pointment of all officers, and for carrying on all kinds



CODE OF DISTRICT OF C O L U M B IA .

135

of business within the objects and purposes o f such com­
pany.
Sec. 739. Dividends.— I f the directors or trustees o f 18Act s^c 2 1:
ct* 5
any company shall declare or pay any dividend the pay- 26 stat. l*, 63o!
ment o f which would render it insolvent, or which w ould1901,tseca739;
create a debt against such company, they shall be jointly ^ 08stat- Land severally liable as guarantors for all o f the debts of
the company then existing, and for all that shall be there­
after contracted, while they shall, respectively, remain in
office.
Sec. 740 . I f any o f the directors or trustees shall object 18Act
1,
to declaring o f such dividend or the payment o f the same, 26 stat. l.’, 63o!
and shall at any time before the time fixed for the pay- igoi^sec^o3;
ment thereof file a certificate o f their objection in writing 3iog’stat. l.;
with the secretary o f the company and with the recorder
o f deeds o f the District they shall be exempt from lia­
bility prescribed in the preceding section.
Sec. 741. L ia b ilitie s exceeding assets.— I f the liabili- lgAct Oct^i,
ties o f any company shall at any time exceed the amount 26 statfS, 630!
o f the fair cash value o f the assets, the directors or tr u s -1901,^ecfm 3;
tees of such company assenting thereto shall be personally f|08stat* L-»
and individually liable for such excess to the creditors of
the company after the additional liability o f the stock­
holders has been enforced.
Sec. 742. E x ecu tors, and so f o r t h , h old in g stock .—
N o person holding stock in such company as executor, 26 stat. l.’, 63i!
administrator, guardian, or trustee shall be personally i90i°,tseca7423;
subject to any liability as stockholder of such company, ^ 08stat- L-»
but the estate and funds in the hands o f such executor,
administrator, guardian, or trustee shall be liable in like
manner and to the same extent as the testator or intestate
or the ward or the person interested in such trust fund
would have been if lie had been living and competent to
act and hold the stock in his own name.
Sec. 7 4 3 . I n c r e a s e o f c a p i t a l s t o c k .— A n y corpora- lgAct opt- 1.
tion which may be formed under this subchapter may in - 26 stat. l.’, 63i!
crease its capital stock by complying with the provisions i 9oi^ec.a743 •
of this subchapter to any amount which may be deemed i3 09 stat* L *
sufficient and proper for the purposes o f the corporation.
Sec. 744 . Copy o f c e r t i f i c a t e t o b e e v i d e n c e .— A l g A0
ct
copy o f any certificate o f incorporation filed in pursu - 26 stat. l.‘, 631!
ance o f this subchapter, certified by the recorder o f deeds 1901,^ecfm 8;
to be a true copy and the whole of such certificate, shall be i309stat‘ L”
received in all courts and places as presumptive legal
evidence o f the facts therein stated.
Sec. 745. No bond to be required w h en company ap- 1890 g ^ S i1;
ct
POINTED EXECUTOR, AND SO FORTH, EXCEPT, AND SO FORTH.— 26fc^'Mai*63! ’

No bond or other collateral security, except as hereinafter 1901, sec. 7 4 5 ;
stated, shall be required from any trust company in c o r-1309 stat’ L”
porated under this subchapter for and in respect to any
trust, nor when appointed trustee, guardian, receiver, ex­
ecutor, or administrator with or without the will an­
nexed, collector, committee o f the estate o f a lunatic or
idiot, or other fiduciary appointment; but the capital




136

CODE OF DISTRICT OF C O L U M B IA .

stock subscribed for or taken, and all property owned by
said company and the amount for which said stockholders
shall be liable in excess of their stock, shall be taken and
considered as the security required by law for the faith­
ful performance of its duties, and shall be absolutely
liable in case of any default whatever; and in case of the
insolvency or dissolution of said company, the debts due
from the said company as trustee, guardian, receiver, ex­
ecutor, administrator, collector, or committee of the es­
tate of lunatics, idiots, or any other fiduciary appointment
shall have a preference.
1890 * secit ’ 321;
SEC* 746. B ond m a y b e r e q u i r e d . —The supreme court
26Act*M
ar63!*
^ st^ t
Columbia, or any justice thereof, shall
1901, sec.a7 4 6 •
have power to make orders respecting such company
i 309.S t a t ‘
L” whenever it shall have been appointed trustee, guardian.
receiver, executor, administrator with or without the will
annexed, collector, committee of the estate of a lunatic,
idiot, or any other fiduciary, and require the said com­
pany to render all accounts which might lawfully be
made or required by any court or any justice thereof if
such trustee, guardian, receiver, executor, administrator
with or without the will annexed, collector, committee
of the estate of a lunatic or idiot, or fiduciary were a
natural person. And said court, or any justice thereof,
at any time, on application of any person interested, may
appoint some suitable person to examine into the affairs
and standing of such companies, who shall make a full
report thereof to the court, and said court, or any justice
thereof, may at any time, in its discretion, require o f said
company a bond with sureties or other security for the
faithful performance of its obligations, and such sureties
or other security shall be liable to the same extent and in
the same manner as if given or pledged by a natural
person.

io& * Oct,oo1!
S
1890, see* 33 f

Sec.

747 .

26 stat. l ., 63i.

C o r p o r a tio n s o r g a n iz e d u n d e r S t a t e l a w s .—
•
•
i i
•<
.i

^ o corporation or company organized by virtue o l the
1901 *»ec.a7473; laws o f any o f the States of this Union and having its
1309 S*
a*’ L” principal place of business within the District of Colum­
bia shall carry on in the District of Columbia any o f the
kinds of business named in this subchapter without strict
compliance in all particulars with the provisions of this
subchapter for the government of such corporations
formed under it, and each one of the officers of the cor­
poration or company so offending shall be punished by
fine not exceeding one thousand dollars or imprisonment
not exceeding one year, or by both fine and imprisonment,
in the discretion o f the court.
R lG H T TO AM END OR REPEAL RESERVED TO C o N C o n g re s s m a y a t a n y tim e a lt e r , a m e n d , o r r e p e a l
1901 *sec.a 748*; th is s u b c h a p te r, b u t a n y su ch a m e n d m e n t o r r e p e a l s h a ll
i309S*a*‘ L,’ n o ^ n o r s h a ll th e d is s o lu tio n o f a n y c o m p a n y fo r m e d
u n d e r th is s u b c h a p te r, t a k e a w a y o r i m p a i r a n y r e m e d y
g iv e n a g a in s t s u ch c o r p o r a tio n , its s to c k h o ld e rs o r o ffi­
cers, f o r a n y l i a b i l i t y o r p e n a lt y w h ic h s h a ll h a v e b e en
p r e v io u s ly in c u r r e d .
1890* sec*'34 :

2 6 St&ts<L'.,632*.GRESS.—




INDEX TO NATIONAL-BANK ACT, ETC.
Paragraph.

Page.

A.
Acknowledgment. (See Oath.)
Act authorizing “ Additional circulation:”
Duration o f.................................................................................................
118
Acting Comptroller of the Currency..........................................................
4
Acts:
Chronological index o f...........................................................................
Savings banks in District of Columbia. (See Index to Code of
District of Columbia.)
Special, authorizing change of name or location of national
bank.........................................................................................................
266
Trust, loan, mortgage, etc., companies. (See Index to Code
of District of Columbia.)
Additional circulation, act May 30, 1908:
Application to issue, to be approved by the Comptroller and
Secretary................................................................................................
99,101
Comptroller to order the preparation o f..........................................
75
Conditions under which issuable.......................................................
101
Disposition of deposits to retire..........................................................
69
Disposition of taxes paid on.................................................................
15G
Distribution of, how determined.......................................................
105
Liability for redemption of, by members of national currency
association..............................................................................................
99
Limit of, including United States bond-secured, issuable by
any bank................................................................................................
103
103
Limit of, issued by all national banks___
. .
156
Monthly returns of, for taxation.........................................................
Per cent of, issuable on securities, including commercial
99
paper, through national currency association...........................
99,101
Per cent of, issuable on State bonds, e tc ........................................
Plates for printing of...............................................................................
75
Redemption fund of other banks available, when.......................
100
104
Redemption fund required o n ............................................................
Redemption of, in lawful money at Treasury...............................
110
Reduction of, provision for..................................................................
09
Sale of securities to redeem.................................................................
99
75
Stock of, to be deposited in the Treasury or sub treasuries..........
Subject to applicable provisions of law, relating to United
States bond-secured circulation.....................................................
102
156
Tax rate on................................................................................................
Withdrawal of, on deposit of lawful money or national-bank
notes.........................................................................................................
69
Administrator. (See Trustee.)
Advertisements (see also Notice; Publication):
Imitation of circulation in, penalty for...........................................
96
Agency, National Bank Redemption, provisions lor.......................... 90, 91,124
Agent:
Association as fiscal, of Government................................................
50
Bonds, examination b y .........................................................................
65
Central reserve, c ity ...............................................................................
131
Central reserve, city, additional........................................................
133




137

50
10
5

112

44, 46
37
46
34
65
48
44
48
48
65
44
44,46
37
45
48
49
34
44
37
47
65
34

42
40,53
25
32
56
57

138

IN D E X TO N A T I O N A L -B A N K

ACT, ETC.

Paragraph.

Agent— Continued.
Circulation, to witness destruction....................................................
Liquidating bank.....................................................................................
Reserve........................................................................................................
Reserve, city, additional provisions for...........................................
Reserve, city, additional central, provisions for...........................
Shareholders, appointment and qualification of...........................
Shareholders, duties of...........................................................................
Special, to examine bank failing to redeem notes.......................
Witnessing destruction of circulation b y .........................................
Aiding misdemeanors of officers....................................., ...........................
Allotment. (See Shares.)
Amendments:
Proposed, to national-bank act to be made in Comptroller’s
report........................................................................................................
Restriction of, to articles of association............................................
Appointment:
Agent to examine bonds........................................................................
Agent to witness destruction of circulation....................................
Committee to examine plates, etc......................................................
Committee to witness destruction of circulation...........................
Comptroller................................................................................................
Deputy Comptroller................................................................................
Directors of associations.........................................................................
Dissenting shareholders, committee of appraisal..........................
Examiners of associations.....................................................................
Clerks of Comptroller’s office...............................................................
Officers of associations............................................................................
Receivers of associations.......................................................................
Special commission for preliminary examination of associa­
tions..........................................................................................................
Vacancies in board of directors...........................................................
Appraisal. (See Shares.)
Articles of association:
Amendment of, for extension of corporate existence..................
Amendment of, restricted.....................................................................
Converted State bank, execution of, b y ........................................ .
Increase of capital stock by amendment of....................................
Proceedings in regard to, and form of...............................................
Provisions for elections when not provided for in .........................
Reduction of capital stock....................................................................
Specification of object of association in ...........................................
Title and location, change of...............................................................
Assessments:
Examinations............................................................................................
Examiner, compensation of..................................................................
Impairment of capital............................................................................
Plates, engraving of.................................................................................
Redemption of circulation....................................................................
Repayment of tax....................................................................................
Reports of circulation, failure to make.............................................
Semiannual duty......................................................................................
Shareholder’s personal liability..........................................................
Tax on unauthorized circulation........................................................
Transportation of notes.........................................................................
Assessors:
Shareholders’ lists accessible to.........................................................
Assets:
Additional circulation banks’ assets liable for redemption —
Comptroller’s annual report to contain statement of national
banks.............................. .......................................................................
Expenses of receiver paid from.........................................................
Failed bank, may be turned over to agent...................................




Page.

90
185
120
126
133
185
185
L71
90
149

40
75
52
55
57
75
75
71
40
62

11
35

11
20

65
90
79
90
2
4
19
29
190
6
19
,183

32
40
38
40
9
10
14
18
79
10
14
72, 74

71
45

35
23

5, 26
35
52
39
16
46
40
17
21

16,1 7
20
26
22
14
23
22
14
15

190
190
143
,124
3, 69
160
157
157
48
202,
,204
124

79
79
60
18,53
33, 34
66
66
66
24
83

151

63

99

44

11
182
185

11
74
75

53

IN D E X T O N A T IO N A L -B A N K

139

ACT, ETC.

Paragraph.

Assets— Continued.
Insolvent banks, distribution of.........................................................
Of consolidated banks............................................................................
Receiver to collect, etc..........................................................................
Receiver to sell on order of court.......................................................
Reports of condition to contain statement of................................
Shareholders’ agent to distribute.......................................................
United States as paramount lien on..................................................
Assignment (see also Treasurer United States; Bonds, United
States):
Of assets after insolvency, void..........................................................
Register of bonds.....................................................................................
United States bonds as security for circulation............................
Assistant Treasurer, United States:
Circulation, unfit, to be sent to Treasurer for redemption........
Fraudulent notes to be marked b y ....................................................
Public moneys to be deposited with................................................
Unauthorized withdrawal of public money from.........................
Associations:
Defined.......................................................................................................
Attachment:
Not to issue prior to final judgment of court.................................
Attorney General, Opinions of...................................................................
Auction:
Bonds of expiring associations............................................................
Bonds of liquidating associations.......................................................
Bonds, sale of, when association has failed to pay its circu­
lating notes............................................................................................
Enforcement of assessment, impaired capital................................
Purchase of property by receiver.................................................... .
Sale of delinquent national-bank stock...........................................
Sale of dissenting shareholders’ stock.............................................
Authority. (See Certificate.)

Bad debts:
Defined.....................................................................................................
Ballot. (S ee Elections; Shareholders.)
Bank circulation. (See Circulation.)
Banking house:
Association may own............................................................................
Banking powers (see also Real estate and National banking asso­
ciations):
Corporate..................................................................................................
Incidental................................................................................................
Bills of exchange:
Discount of..............................................................................................
Illegal transfer of, void........................................................................
Interest on...............................................................................................
Penalty xor official malfeasance, relative to..................................
Restriction on loans, not applicable to..........................................
Restriction on association’s liability, not applicable to...........
Transfer of, to create a preference, void........................................
Bimetallism.....................................................................................................
Board of directors (see also Directors):
Election of...............................................................................................
Election postponed...............................................................................
National Monetary Commission........................................................
Number constituting............................................................................
President..................................................................................................
Provisions for..........................................................................................
Three-fourths to be residents of State.............................................
Vacancy, filling......................................................................................




Par

c».

180
166
178
178
152
185
174

73
69
72
72
64
75
72

192
62
61

80
31
31

124
239
224, 225
228

53
94
88
90

55

29

192
80
267, 115,116
268,269
31
31

19
19

174
143
186
143
29

72
00
77
60
18

142

60

33

20

19
19

14
14

135
192
135
149
138
140
192
253

58
80
58
62
59
59
80
100

19
46
98
42
47
42
43
45

14
23
42
23
24
23
23
23

140

IN D E X TO N A T IO N A L -B A N K A C T , E T C .

Paragraph.

Bonds, official:
Comptroller.................................................................................................
Deputy Comptroller................................................................................
Officers of associations.............................................................................
Public depositaries..................................................................................
Receiver......................................................................................................
Shareholders’ agent.................................................................................
Shareholders’ , on election of agents...................................................
Bonds, United States:
Annual examination of, provided for...............................................
Assignment or transfer of, to be countersigned by Comptroller.
Association to be notified of transfer or assignment.....................
Cancellation of, forfeited, for circulation redeemed.....................
Circulation issuable on...........................................................................
Circulation obtainable on......................................................................
Comptroller, access to records of and deposit with Treasurer..
Converted State banks to deposit.......................................................
Coupon, to be exchanged for registered...........................................
Deficiency in proceeds from sale of, what first lien.....................
Defined........................................................................................................
Deposit of, required to begin business.............................................
Depositaries required to deposit.........................................................
Depreciation in value of, how made good.......................................
Exchange of, permitted.........................................................................
Forfeiture of, for failure to redeem circulation..............................
General provisions respecting..............................................................
Gold banks to deposit.............................................................................
Government depositaries, deposit of, required..............................
Increase of deposit of..............................................................................
Interest on, liable for penalty for failure to make returns and
pay tax....................................................................................................
Interest on, liable for penalty for failure to make reports to
Comptroller............................................................................................
Interest on, withheld on impaired capital......................................
Lawful money, deposit of, to retire circulation and withdraw..
Minimum amount to be deposited.....................................................
Maximum circulation issuable on......................................................
Obligations of United States, including, defined.........................
Panama Canal, available as security for circulation....................
Panama Canal, additional issue of authorized..............................
Panama Canal, authorized by act of Aug. 5,1909, not receiv­
able as security for circulation........................................................
Penalty for illegal dealing in counterfeit........................................
Penalty for illegal possession or use of material for printing.. .
Penalty for passing counterfeit...........................................................
Penalty for taking or possessing unauthorized impressions of
tools, etc., used in printing..............................................................
Reassignment of, to liquidating bank...............................................
Record of transfer or assignment of, to be kept by Comptroller.
Refunding of..............................................................................................
Registered, to be deposited with Treasurer United States.........
Relation of, on deposit to capital.......................................................
Return of, to association........................................................................
Sale of, at auction, for failure to redeem circulation.................
Sale of, privately, at not less than par, for failure to redeem
circulation..............................................................................................
Taxation, exempt from..........................................................................
Tax on circulation secured by Panama Canal bonds..................
Transfer of, how effected.......................................................................
Treasurer United States to have access to records of Comp­
troller relative t o ...............................................■
.................................
Treasurer United States to hold, in trust for association............
Withdrawal of, and of circulation......................................................
Withdrawal of............................................................................................




Page.

3
4
19
50
178
185
185

9
10
14
25
72
75
75

G5
61
63
173
74
74
64
52
60
174
56
57
50
66
66
171
66
92
50
59

32
31
31
71
36
36
32
26
31
72
29
29
25
32
32
71
32
40
25
30

157

66

155
143
67
57
74
230
58
259

64
60
33
29
36
91
30
107

260
237
233
234

108
93
91
92

235, 236
167
62
250
57
59
66
174

93
69
31
99
29
30
32
72

175
210
58
61

72
85
30
31

64
61
67
59

32
31
33
30

IN D E X T O N A T IO N A L -B A N K

141

ACT, ETC.

Paragraph.

Bookkeeper. (See Officers.)
Books. (See Comptroller; Treasurer United States.)
Borrowed money. (See Liability of association; Loans.)
Branch banks:
Chicago World’s Fair............................................................................
Louisiana Exposition...........................................................................
State banks entering system by conversion may retain.........
Business:
Authorization of association to begin, when................................
Place of.....................................................................................................
Suspension of, after default to pay circulaflon............................
Business paper. (See Commercial paper.)
By-laws:
Prescribed by directors of national banks....................................

Tage.

266
266
53

114
114
26

36
119
172

21

19

14

99
185
36
185
36
53

44
75

36, 70
141

21,35
60

200

83
30
79
26
75
29
78
23

52
71

C.
Cancellation. (See Bonds, United States; Circulation.)
Capital stock:
Additional circulation, relation of, to............................................
Agent of shareholders to distribute assets ratably......................
Amount to be paid before association begins business.............
Appointment and qualification of shareholders’ agent.............
Association to begin business, amount to be paid......................
Branches of converted State banks.................................................
Certificate of officers and directors required relative to pay­
ment of..................................................................................................
Circulation not to be used to create or increase.........................
Circulation outstanding not exceeding 5 per cent of, free from
taxation.................................................................................................
Circulation, proportion to...................................................................
Compensation of examiners based on, except in certain cases..
Conversion of State banks authorized, when.............................
Creditor’s bill against shareholders...............................................
Deposit of United States bonds based on..................................
Directors, individual liability of........................................................
Directors, qualifications of...................................................................
Dividends declared on, and net earnings in excess of dividends
to be reported.......................................................................................
Dividends on, and creation of surplus.............................................
Dividends on, when prohibited..........................................................
Disposition of, delinquent shareholders...........................................
Division of, into shares and number and value of each...........
Enforcement of assessment, to make good impairment of___
Enforcing individual liability of shareholders of, by receiver..
Enforcing payment of............................................................................
Holders of shares of, in expiring associations to be extended
or reorganized to have preference in the allotment of shares..
Holding of shares of, required by directors....................................
Impairment of, assessment for.............................................................
Impairment of, receiver may be appointed for failure to make
good..........................................................................................................
Increase of, provisions for.....................................................................
Individual liability of shareholders..................................................
Liabilities of an association not to exceed, except on account
of certain demands..............................................................................
Liquidation, shareholders owning two-thirds of, may vote to
go into......................................................................................................
List of shareholders of, to be transmitted to the Comptroller..
Loans on security of shares or purchase of, prohibited...............
Loans restricted to 10 per cent of, including surplus, etc----Minimum amount required of national banks...............................
Minimum of bonds to.............................................................................
National currency association, requirements relative to...........




21
75

21
26

59
190
52
184
57
189
43
154
137
142
37
35
143
183
37

64
59
60

29
44
143

18
23
60

183
38, 39
48

22

21

20
60
74

21

74
24

140 !

59

163
151
139
138
34
57
98

68

I

I
1
,
,
I
1

63
59
59

20
29

42

142

IN D E X TO N A T I O N A L -B A N K A C T , E T C .

Paragraph.

Capital stock— Continued.
Number of shares and amount of, stated in organization
certificate..............................................................................................
Payment of, provisions for..................................................................
of.
Penalty for failure to make good
Personal liability of
Receiver may be appointed when— im paired............................
Receiver may be appointed when, not fully paid in ................
Reduction of, provisions for...............................................................
Relation of bond deposit to................................................................
Restoration of, when below the mihimum required..................
Shareholders of, list to be kept and subject to inspection___
Shareholders owning two-thirds of, may place an association
in liquidation......................................................................................
Shareholders owning two-thirds of, may change title and
location........................................................... .....................................
Shareholders owning two-thirds of, may increase stock...........
Shareholders owning two-thirds of, may reduce stock................
Shareholders owning two-thirds of, may extend corporate ex­
i s t e n c e ................................................................................................
Shareholders entitled to one vote on each share of, held b y . .
Shareholders of converted State banks not liable when.............
Shareholders of, not consenting to an extension may withdraw.
Shares of, acquired for debt to be disposed of when.................
State taxation of shares of...................................................................
Subscriptions to, when payable........................................................
Surplus fund to be created, to the amount of 20 per cent of. . .
United States registered bonds to be deposited as security for
circulation to be based on...............................................................
When increase of, becomes valid....................................................
Withdrawal of bonds on reduction of, or closing of business..
Withdrawal of bonds, limited............................................................
Cashier (see also President; Officers):
Appointment of.......................................................................................
Bank examiner may examine on oath............................................
Bond assignments b y ............................................................................
Certificate of officers and directors...................................................
Certificate of stock payment...............................................................
Circulating notes, to sign.....................................................................
Election or appointment of................................................................
Embezzlement b y ..................................................................................
Examiner of own bank, can not be.................................................
Expiration of corporate existence, certification b y ....................
Extension of corporate existence, certification b y .....................
False certification of checks...............................................................
Incomplete circulation, provisions relative to.............................
Increase of stock, certification of......................................................
Liquidating bank, duty in .................................................................
Penalty for—
Countersigning or delivering circulation improperly........
False certification of checks......................................................
Issuing circulation of expired associations............................
Official malfeasance......................................................................
Pledging, etc., circulation..........................................................
Unauthorized receipt of public money..................................
Protest of circulation, waiving notice of........................................
Proxy, not to act as...............................................................................
Reports of condition, verified b y .....................................................
Reports of earnings and dividends, verified b y ...........................
Shareholders, lists of, b y ......................... ............................................
Signature of, forged or wanting, not to invalidate circulation.
Taxable circulation, returns b y ........................................................
Unauthorized circulation, returns b y .............................................
Voluntary liquidation, certified b y ................................................
Central reserve agents. (See Agents; Reserve; Reserve agents.)




Page.

17
36
143
48
143
37
40
59
37
151

14
21
60
24
60
21
22
30
21
63

163

68

21
38, 39
40

15
22
22

26
41
48
29
139
162
36
137

17
22
24
18
59
67
21
59

57
38
59
66

29
22
30
32

19
190
61
70
36
75
19
149
190
31
26
147
128
38
164

14
79
31
35
2L
37
14
62
79
19
17
62
56
22
68

95
148
238
149
145
229
170
41
152
154
15 L
128
157
204
164

41
62
93
62
61
90
70
22
64
64
63
56
66
83
68

IN D E X

143

TO N A T IO N A L -B A N K A C T , E T C .

Paragraph.

Certificate:
Certified copy of organization, evidence.........................................
198
Comptroller’s, of authority...................................................................
71
Converted State banks...........................................................................
52
Destruction of notes................................................................................
90
Execution of organization.....................................................................
18
Extension of corporate existence........................................................
27
Increase of stock valid, when..............................................................
38
May be withheld, when........................................................................
71
National currency association, to be filed with and approved
by the Secretary of the Treasury........................................
98
Officers and directors to attest....................................................
70
Organization, to specify........................................................................
17
Payment of installments of stock to be certified. . .
36
Publication of Comptroller’s, of authority......................................
72
Reduction of stock valid, when..........................................................
40
Sealed, of Comptroller, evidence.......................................................
197
Voluntary liquidation............................................................................
164
Certificate of incorporation of national currency association:
Approval of. by Secretary of Treasury.............................................
98
Body corporate upon execution of.....................................................
98
Execution of..............................................................................................
98
Certification of checks, when forbidden, and penalty for..................
147,148
Certified copies. {See Evidence.)
Charter (see also Corporate existence'):
Certificate of Comptroller authorizing the bank to begin
business known as...............................................................................
71
Forfeiture o f ...........................................................................................
189
Issue of, to national banks....................................................................
71
Charter number to be printed on circulation.........................................
76
Checks:
Certified receivable for duties on imports and internal taxes..
261
False certification of, unlawful.....................................................
147
Falsely certified, an obligation of association................................
147
Penalty for false certification of..........................................................
348
Circulation (see also Additional circulation):
74
Amount of, obtainable.................................................................
92
Amount of, obtainable b y gold banks..............................................
A ssociation may issue.............................................................................
19
Association to receive interest on bonds as long as, honored..
66
Associations consolidating, deposit of lawful money to retire,
unnecessary...........................................................................................
166
Associations to redeem, in lawful money on demand.................
131
59
Bonds in excess of amount required may be withdrawn...........
Bonds forfeited when, dishonored......................................................
171
Bonds, United States, to secure........................................................
57
Certificates of destruction, by whom executed.............................
90
Charter number on..................................................................................
76
Collection of tax on.................................................................................
159
Consolidating banks................................................................................
166
Cost of plates to be paid by association...........................................
124
Counterfeiting, etc ................................................................................. 95,97,230,
232-238
Countersigning unlawfully.............................................................
95
Denominations minimum.....................................................................
80
Deposit of United States bonds to secure........................................
57
Deposit of bonds to be increased when capital is increased. . . .
59
Destroyed, to be replaced by an equal amount of new notes..
124
Disposition of redemption account balances..................................
127
Examination of bank upon protest of, by agent of Comptroller..
171
Expense of plates for new notes of extended banks....................
30
Expenses of redemption, how paid...................................................
124
Extended bank, shall differ from prior issues...............................
30
For what, is receivable..........................................................................
88




Page.

82
35
26
40
14
17
22
35
42
35
14
21
36
22
82
68
42
42
42
62

35
78
35
38
109
62
62
62
36
40
14
32
69
56
30
71
29
40
38
66
69
53
41,42,
91,93
41
39
29
30
53
55
71
18
53
18
39

144

IN D E X TO N A T IO N A L -B A N K

ACT, ETC.

Paragraph.

Circulation— Continued.
Fraudulent notes to be so stamped...........................................
G aiti from Jost and dpstroyfid_____________________________
Gold bank, to be redeemed in gold coin..........................................
Government depositaries to receive, at par....................................
Inscription on..........................................................................................
Increasing capital stock, use of, prohibited..................................
Limit on aggregate amount of............................................................
Liquidating bank to deposit lawful money to redeem................
Minimum denominations.......................................................................
Minimum dfipraritr of fronds rpqnirpH_____________
Notice of redemption of, to be forwarded to bank.....................
Other, prohibited for national-bank................................................
Penalty for failure to make return of taxable................................
Pledging, as security prohibited..................................................
Profit on unredeemed, inures to the United States.....................
Proceedings when return is not made...............................................
Prohibition against circulating uncurrent notes...........................
Proportion to bonds deposited...........................................................
Proportion to capital...............................................................................
Protest of.....................................................................................................
Receivable at par by all national banks..........................................
Redeemed, to be canceled.............................................................
Redemption fund...................................................................................
Redemption of, in United States notes............................................
Redemption of, extended banks..........................................
Redemption of, liquidating banks.....................................................
Redemption of, closed banks........................................................
Redemption of, incomplete.......................................................
Refunding excess tax...........................................................................
' Restriction on notes less than $1......................................................
Restriction on notes less than $5......................................................
Restriction on notes of $5...........................................................
Restriction of tax provisions..............................................................
Semiannual return of, subject to tax................................................
Statement concerning, of closed banks to appear in annual
report of Comptroller........................................................................
Signing.......................................................................................................
Tax on........................................................................................................
Tax on converted bank...............................................................
Tax on, insolvent banks remitted....................................................
Tax on State bank issue........................................................................
Tax on, subject to State law..............................................................
Treasurers and public depositaries to return all, of closed
banks......................................................................................................
When exempt from tax........................................................................
When issuable.........................................................................................
Withdrawal of, by depositing lawful money, limitation of........
Worn out or mutilated, destroyed....................................................
Citizens:
National banking associations, where...............................................
Claims. (See Insolvency; Receiver.)
Clearing house:
Certificates issued by, counted as reserve.......................................
Receipt in settlement of balances of gold and silver certifi­
cates b y ...................................................................................................
Clearing-house certificates. (See Clearing house; Reserve.)
Clerks:
Appointment and qualification of, by the Secretary..................
Clerical force for redemption of circulating notes.........................
Duties of, fixed by the Comptroller..................................................
Employment of, for the Bureau by the Comptroller...................
Of banks can not act as proxy.............................................................
Names and compensation of, in annual report and Official
Register...................................................................................................




Page.

239
30
92
50
75,92
141
74
167
80
57
124
89
158
141
30
206
144
74
57
170
134
177
104,124
124
30
169
168
128
160
212
80
74
208
157, 205

94
18
40
25
37, 40
60
36
69
39
29
53
40
66
60
18
84
61
36
29
70
58
72
48, 53
53
18
70
70
56
66
86
39
36
84
66, 83

11
75
156
207
161,209
199-206
211

11
37
65
84
67, 85
82-84
85

168
200
88
67
90,91

70
83
39
33
40

24

16

121

53

146

61

6
125
6
6
41

10
55
10
10
22

11,12

11,12

IN D E X

145

TO N A T IO N A L -B A N K A C T , E T C .

Paragraph.

Closed associations. (See Insolvent banks.)
Code of the District of Columbia. (See separate index.)
Coin. (See Gold; Silver.)
Commercial paper:
Additional circulation on............................................ ....................
Characterized, when available as security for additional cir­
culation...............................................................................................
Discount of.......................................... ..................................................
Committee of appraisal. (See Dissenting shareholders.)
Comptroller of the Currency:
Action as to agent of shareholders..................................................
Acts of, subject to approval of Secretary.....................................
Additional circulation to be issued by, w hen.. .......................
Agent, special, to be appointed for association failing to
redeem circulation..........................................................................
Annual report to be made to ( ’ongress b y ......................................
Application for additional circulation to be made to..............
Appointment, term and salary of...................................................
Approve receiver’s purchase of property...................................
Approve reserve agent................. ................... ..................................
Articles of association and organization certificate of national
banks to be filed with....................................................................
Bonds and records of, with Treasurer, access to......................
Bonds, sale of, privately or at public auction b y .....................
Capital stock, increase or reduction of, to be approved b y ___
Certificate to begin business...........................................................
Certified copy of organization certificate, evidence.................
Charter number of bank, to have it put on circulating notes..
Cited in injunction of receiver....................................................... .
Circulation, worn, mutilated, destruction of..............................
Creditors of failed banks, to pay dividends to........................... .
Distribution of Comptroller’s reports.............................................
Duties of................................................................................................. .
Enforce stockholders' liability.............. ............ ..............................
Engraving of plates for printing of additional circulation to be
ordered b y ......................................................................................... .
Enjoined by bank, how.................................................................... .
Examiners, appointment of............................................................. .
Extension of corporate existence, approval of, b y ....................
Evidence sealed certificates..............................................................
Forfeit, cancel, or sell bonds of notes not redeemed....................
Forfeiture of charter, suit to be brought b y ....................................
Interest in national banks, issuing currency, prohibited........
Jurisdiction of circuit courts to enjoin...........................................
Liquidation of associations to be notified of............................... .
Notice to banks short in reserve......................................................
Notice to creditors of insolvent banks...........................................
Oath to be taken and bond to be given b y ...................................
Plates and dies, examination of.......................................................
Printing report of..................................................................................
Qualification of......................................................................................
Receivers, appointed b y ................................................................... .
Recommendation relative to issue of additional circulation,
to be referred to and approved by the Secretary..................... .
Reports of banks other than national, to be obtained and pub­
lished b y ..............................................................................................
Reports to be made to.........................................................................
Reserve cities, designation of, b y .................................................. .
Secretary of Treasury to approve certain acts of....................... .
State banks converted, approved b y ..............................................
Title and location, change of, to be approved b y ......................
Title of national banks, subject to approval of...........................
Transfer and assignment of bonds to be countersigned b y ___
88020°— 11------ 10




Page.

99

44

99
135,140

44
5 8,59

185
111
99

75
49
44

171
11
99
2
187
121,131

71
11
44
9
78
53,56

16,17
64
174,175
38, 39,40
71
198
76
181
90, 91
180
13,14
1
48

14
32
72
22
35
82
38
74
40
73
12
9
24

75
181
190
25
397
375
189
7
195
164
120
179
3
79
13,14
3
120,178

37
74
79
16
82
72
78
10
81
68
52
73
9
38
12
9
52, 72

99

44

11
152-154
126,133
111
52
21
17
102

11
64
55,57
49
26
15
14
47

146

I N D E X T O N A T I O N A L -B A N K A C T , E T C .

Paragraph.

Comptroller of the Currency— Continued.
Verification by, of banks’ monthly returns of additional cir­
culation for taxation.........................................................................
Compounding debts, of insolvent national banks...............................
Congress:
Comptroller’s report to be made to..................................................
Consolidation of national banks, provisions regarding liquidations
and bonds.....................................................................................................
Contributions. (See Political contributions.)
Converted State banks. (See State banks converted.)
Corporate existence:
Extension of.............................................................................................
Reextension of........................................................................................
Liquidation, not terminating.............................................................
Corporate powers. (See Powers.)
Corporation (see also Liability of association):
Association becomes, when................................................................
Excise tax on.........................................................*...............................
National currency association becomes, when.............................
Cost. (See Expenses.)
Counterfeits, making or using notes, plates, tools, etc....................
Coupon bonds. (See Bonds, United States.)
Courts. (See Crimes, jurisdiction, etc.)
Creditors:
Bill in equity by, against shareholders..........................................
Checks falsely certified a valid obligation of associations........
Creditors’ rights not to be impaired.................................................
Directors’ liability.................................................................................
Expiration of existence, notice to....................................................
Insolvency, notice of, to......................................................................
Nonpayment of circulation, notice of, to......................................
Payment of assets of failed banks.....................................................
Preference of illegal..............................................................................
Shareholders, list of, subject to inspection b y.............................
Shareholders, personal liability of, to.............................................
Voluntary liquidation, notice of, to................................................
Creditor’s bills:
Against shareholders.............................................................................
Crimes, jurisdiction, etc.:
Abstraction of money, funds, etc.....................................................
Aiders and abettors...............................................................................
Counterfeiting circulation...................................................................
Dealing in counterfeit circulation....................................................
Embezzlement........................................................................................
Evidence, certified copy of organization certificate..................
Evidence, sealed certificate of Comptroller competent............
False certification of checks...............................................................
False entries.............................................................................................
Having or taking unauthorized impressions of tools, etc.........
Illegal possession or use of material for circulation....................
Imitating circulation for advertising purposes............................
Improper countersigning or delivering circulation....................
Issuing circulation without authority.............................................
Issuing circulation of expired associations....................................
Jurisdiction, general, of national-bank cases................................
Jurisdiction to enjoin Comptroller or receiver.............................
Misapplication, willful.........................................................................
Mutilating circulation..........................................................................
Obligations of the United States defined......................................
Official malfeasance..............................................................................
Passing counterfeit circulation..........................................................
Pledging United States notes or bank circulation......................
Political contributions.........................................................................
Taking unauthorized impressions of tools, etc.............................




Page.

156
178

65
72

11

11

166

69

25-27
32
31

16,17

19
258

20
19

14

101
42

231-237

91-93

184
147
192
189
31
179
173
180
192
151
48
164

75
62
80
78
19
73
71
73
80
63
24

184

75

149
149
232
237
149
198
197
147,148
149
235-236
233
96
95
149
238
2 4,28
195
149
97
230
149
234
145
150
235

62
62
91
93
62
82
82
62
62
93
91
42
41
62
93
16,17
81
62
42
91
62
92
61
63
93

68

147

IN D E X TO N A T IO N A L -B A N K A C T , E T C .

Paragraph.

Currency. (See Circulation; Gold; Gold certificates; Silver; Sil­
ver certificates; Lawful money; United States note certifi­
cates.)
Currency Bureau:
Designation of office of Comptroller of the Currency...................
Expenses of, in liquidating failed banks.........................................
Offices, vaults, etc., for..........................................................................
Submission of list of employees..........................................................

Page.

1

9

12
11,12

12
11
11,12

33

20

92
75
52
146,245
35,52

40
37
26
61,97
20,26

50,224
93,
120-124

25,88
41,
52,53

9

D.
Debts, compounding of:
Real estate held for.................................................................................
Deficiency. (See Bonds; Capital; Circulation; Receiver; Reserve.)
Denominations:
Circulation of gold banks......................................................................
Circulation of national banks..............................................................
Converted State-bank shares...............................................................
Gold certificates.......................................................................................
Shares of national-bank stock..............................................................
Deposit of United States bonds. (See Bonds, United States.)
Depositaries. (See Government depositaries.)
Deposits:
Public moneys..........................................................................................
Reserve to be kept on............................................................................
Depreciation. (See Bonds; Circulation.)
Deputy Comptroller:
Appointment.............................................................................................
Bond.............................................................................................................
Duties.................... .................... ................................................................
Interest in bank issuing national currency prohibited b y ___
Oath to be taken......................................................................................
Salary of....................................................................................................
Deputy Comptroller, additional:
Powers of.....................................................................................................
Salary of......................................................................................................
Destruction of mutilated notes. (See Redemption.)
Dies. (See Plates and dies.)
Directors (see Board of directors):
Appointment or election of..................................................................
Assessment, provisions for enforcement of......................................
Attestation of reports to Comptroller, b y ........................................
Capital impaired, duties in ..................................................................
Certificate of officers a nd ......................................................................
Certification of, to extension...............................................................
Conversion of State banks, action b y ...............................................
Dividends, declaration of, b y .............................................................
Embezzlement, penalty........................................................................
Enforcing payment of capital..............................................................
Exception in Oklahoma........................................................................
Failure to hold annual election..........................................................
Forfeiture of charter for violation, etc., b y ....................................
Liability of................................................................................................
Names and residences of, to be ascertained by Comptroller.. .
Not to be appointed by Comptroller to examine own b an k ...
Number and election of.........................................................................
Oath of............................................ .................... .......................................
Oklahoma, qualification of national bank in .................................
Penalty for issuing circulation of expired association.................
Penalty for official malfeasance..........................................................
Penalty for unauthorized receipt of public money......................
President, of board to be a ...................................................................
Powers of....................................................................................................
Proxy, can not act as..............................................................................
Qualifications of.......................................................................................




10
10

10

10
10
10

10
10

19
143
152
37
70
26
52
137
149
37
262
46
189
189
70
190
42
44
262
238
149
229
47
19
41
43

14
60
64

21
35
17
26
59
62

21
110
23
78
78
35
79
23
23

110
93
62
90
24
14

22
23

148

INDEX TO NATIONAL-BANK ACT, ETC.

Paragraph.

D irec tors— Continued.
Qualifications of, in Oklahoma..........................................................
Shareholders dissenting to extension to give notice to, etc. . .
Vacancies in board of............................................................................
Disbursing funds of United States officers, depositing withnational-bank depositaries...........................................................................
Discount. (See Loans; Liability of association; Interest.)
Dissenting shareholders:
Withdrawal of, on extension..............................................................
Dissolution. (See Expiration of corporate existence; Forfeiture;
Insolvency; Liquidation.)
Distinctive paper:
National-bank circulation, etc., to be printed on.......................
Unauthorized possession or use of....................................................
Dividends (see also Surplus and dividends):
Comptroller to make ratable, of assets of insolvent banks___
Directors may declare, when..............................................................
Earnings and, to be reported.............................................................
Penalty for failure to report earnings and.....................................
Restriction on association’s liability...............................................
Unearned, prohibited...........................................................................
Drafts:
Obligations of United States including..........................................
Official malfeasance...............................................................................
Liability of association, relative to..................................................
Penalty for mutilating..........................................................................
Dues. (See Taxation; Duties.)
Duties:
Associations organized under act of February 25, 1863.........
Circulation, converted State banks.................................................
Circulation, enforcing payment of, on............................................
Circulation, exempt from....................................................................
Circulation, not receivable for customs..........................................
Circulation, refunding excess on.......................................................
Circulation, restrictions on..................................................................
Circulation, semiannual on...........................................................
Circulation, unauthorized...........................................................
Comptroller’s ...........................................................................................
Deputy Comptroller’s...........................................................................
Directors’ ..................................................................................................
Examiners’ ...............................................................................................
Gold certificates receivable for..........................................................
Public depositaries, designation and...............................................
Receiver, appointment and................................................................
Shareholders1 agent...............................................................................

Page.

11

262
29
45

18
23

224

88

29

18

77
233

38
91

180
137
154
155
140
142

73
59
64
64
59
60

230
149
140
97

91
62
59
42

54
207
159

27
84

200
88

83
39

160
208
156
199-204

66

66

1

84
65
82, 83
9

4
42,44
190
245
50
178
185

10
23
79
97
25
73
75

21

15
42
43
16
23

E.
Earnings. (See Dividends.)
Elections:
Change of title or location...................................................................
Corporate powers....................................................................................
Directors and officers of National Currency Association............
Extension of corporate existence......................................................
Failure to hold annual..........................................................................
Increase of stock.....................................................................................
Number of directors..............................................................................
Oaths of directors...................................................................................
Qualifications of directors....................................................................
Qualifications of shareholders............................................................
Reduction of stock.................................................................................
Shareholders’ agent...............................................................................
Voluntary liquidation..........................................................................
Embezzlement, misapplication of fundp, etc.:
Penalty for...............................................................................................




19
98
25
46
39
42
44
43
41
40
185
163
149

22

23
23
23

22
22
75

68

62

149

TNDTCX TO N A T IO N ATEBANK A C T , ETO.

Paragraph.

Employees and expenses. (See Clerks; Expenses.)
Enforcing payment of capital stock:
Provisions for............................................................................................
Engraving. (See Circulation; Plates and dies.)
Equity. (See Creditor’s bill against shareholders.)
Evidence.............................................................................................................
Examination of organization proceedings:
Preliminary to authorizing, to begin business...............................
Examinations:
Annual, of bonds......................................................................................
Ascertainment of value of stock of dissenting shareholders.. . .
Bonds and records, provisions for.......................................................
Compensation of examiners.................................................................
Examiners to make.................................................................................
Limitation of visit orial powers...........................................................
List of shareholders subject to.............................................................
Plates and dies annually......................................................................
Preliminary, to beginning business .
.
.........................
Qualification of examiners
......................................
Special, of extended associations.......................................................
Examiners:
Appointment o f........................................................................................
("ompensat ion of.......................................................................................
Qualifications o f.......................................................................................
Special commission.................................................................................
Execution. (See Suits.)
Executor. (See Trustees.)
Existence:
Extension o f..............................................................................................
National currency association, corporate existence of.................
Reextension of..........................................................................................
Term of corporate, of national banks..............................................
Expenses:
Bureau, to be stated in Comptroller’s annual report...................
Circulation, redemption of...................................................................
Circulation, transportation and redemption o f..............................
Duties of shareholders’ agent, relative to........................................
E x animations............................................................................................
Examinations, dissenting shareholders............................................
Examinations, special............................................................................
Examiners, fees of...................................................................................
Liquidation of failed national banks................................................
National Currency Commission...........................................................
Plates, cost of............................................................................................
Plates and dies, examination of.........................................................
Provisions for, act May 30, 1908.........................................................
Receiverships, how paid.......................................................................
Receiverships, paid prior to election of shareholders’ agent. .
Sale of bonds.............................................................................................
Sale of delinquent stock........................................................................
F.
Failed national banks:
Report of expenses..................................................................................
Failure. (See Insolvency.)
False entry:
Penalty for, official malfeasance.........................................................
Falsely certifying checks...............................................................................
Penalty for.................................................................................................
Fees. (See Examiners; Receivers.)
Fine. (See Penalty.)
Firm. (See Liability of association.)
Fiscal agent. (See Agent; Government depositaries.)




Page.

37

21

197,198

82

70

35

65
29
64
190
190
191
151
79
70
190
27

32
18
32
79
79
80
63
38
35
79
17

190
190
190
71

79
79
79
35

25
98
32
19

16
42
20
14

11,12
124
68
185
190
29
27
190
12
117
30,124
79
114
182
185
174
37

11,12
53
33
75
79
18
17
79
12
50
18,53
38
49
74
75
72
21

12

12

149
147
148

62
62
62

150

INDEX TO N ATIONAL-BANK ACT, ETC.

Paragraph.

Forfeiture of charter:
Suit to be brought for, by Comptroller of the Currency.............
Forgery. (See Crimes; Penalty.)
Franchise:
Forfeiture of...............................................................................................
Fraudulent notes:
United States and national bank officers to mark........................
G.
Gold:
Certificates not to be issued when reserve of gold coin and
bullion is depleted...............................................................................
Certificates when part of national-bank reserve.............................
Circulation of gold banks redeemable in .........................................
Deposit of, for certificates......................................................................
Dollar, standard unit of value
.............................................................
Gold banks not required to take circulation of other banks at
par.............................................................................................................
Issue of certificates of deposit of.........................................................
________
Organizftt.inT) nf gold banlcs .. ,
Reserve gold of one hundred and fifty millions............................
Reserve of gold banks to be silver and............................................
Taxation of, gold certificates by State, etc.....................................
Gold banks:
Circulation of, issuable...........................................................................
Conversion of.............................................................................................
Deposit of bonds b y ................................................................................
Exempted from provisions relative to other bank circulation..
Organization of..........................................................................................
Reserve required for................................................................................
Tax on circulation...................................................................................
Gold bank notes. (See Gold banks; Circulation.)
Gold certificates:
Deposit of gold for..................................................................................
Deposit of foreign gold for.....................................................................
Issue of, prohibited, when....................................................................
Minimum denomination........................................................................
Payable to order.......................................................................................
Receivable for...........................................................................................
Gold reserve in Treasury:
Gold certificates not be issued when, depleted.............................
Government depositaries:
Deposit ana withdrawal of public moneys......................................
Deposits by certain postmasters..........................................................
Designation and duties of......................................................................
Interest to be paid b y .............................................................................
National banks as.....................................................................................
National-bank circulation to be received b y ..................................
National banks as financial agents of the Government...............
Penalty for misapplication of money-order funds.........................
Penalty for unauthorized deposit of public moneys....................
Penalty for unauthorized receipt or use of public moneys____
Secretary of the Treasury to designate.............................................
Securities to be deposited b y ...............................................................
Guardian. (See Trustee.)
H.
Hawaii:
National banking laws applicable to.................................................
House of Representatives:
Comptroller’s reports to be sent to.....................................................
Members of, on National Monetary Commission...........................
Speaker of, appointment by, of members of National Mone­
tary Commission...................................................................................
Hypothecation. (See Pledging.)




Page.

189

78

189

78

239

94

245
146
92
146, 245
240

97
61
40
J 1 97
B,
95

134
146, 245
92
241
93
211

58
61, 97
40
95
41
85

92
94
92
134
92
93,131
156

40
41
40
58
40
41,56
65

245
245
146, 245
245
245
146, 245

97
97
61,97
97
97
61, 97

245

97

224
225
50
51
50
50
50
226
228
229
50
50

88
88
25
25
25
25
25
89
90
90
25
25

265

111

13
115

12
50

115

50

151

IN D E X TO N A T IO N A L -B A N K A C T , ETC.

Paragraph.

I.
Imports, interest on public debt:
Circulation of national banks not receivable for duties and
interest.................................................................................................
Improper use of circulation:
Pledging, hypothecating, e tc ............................................................
Uncurrent circulation..........................................................................
Incomplete circulation (see also Circulation):
Redemption of........................................................................................
Indian Territory:
National-bank act in effect in ...........................................................
Injunction. (See Comptroller; Suits.)
Insolvency:
Assets, distribution of, by receiver.................................................
Expenses incident to, report of........................................................
Impairment of capital..........................................................................
Jurisdiction of courts to enjoin Comptroller.................................
Jurisdiction of national-bank cases..................................................
Notice to creditors of associations i n ..............................................
Penalty for issuing circulation of associations in........................
Preference of creditors.........................................................................
Receiver, appointment of...................................................................
Receiver, duties of................................................................................
Receiver, when may be appointed.................................................
Redemption of circulation of association i n ................................
Shareholders’ agent..............................................................................
Taxes on bank in, remitted...............................................................
Insurance company, insurance of solvency of bank b y ...................
Interest in national banks prohibited:
By Comptroller......................................................................................
By Deputy Comptroller......................................................................
Interest (see also Usury):
Rate of, chargeable by national banks..........................................
United States deposits.......................................................... *.............
Internal Revenue, Commissioner of:
Penalty for failure to make returns to, of taxable circulation.
Remission of tax against insolvent State banks.........................
Semiannual return to, of taxable circulation other than
national.................................................................................................
International bimetallism:
Act March 14, 1900, relative to.........................................................
Issue and Redemption Division established........................................

88

39

141
144

60
61

128

56

263

110

180

73

143
195
24,28
179
238
192
178
178
178,183
168
185
161,209
269

60
81
16,17
73
93
80
72
72
72,74
70
75
67.85
116

7
7

10
10

135
51

58
25

206
161, 209

84
67.85

205

83

253
243

100

183
192

74
80

268

115

120

52
41
33
83
19

12

12

96

J.
Judgment (see also Suits):
Appointment of receiver when judgment obtained against
bank.......................................................................................................
Illegal preference of creditors............................................................
Jurisdiction. (See Crimes, jurisdiction, etc.)

K.
Kansas:
Deposits guarantee law ........................................................................

Li.
Larceny. (See Crimes, jurisdiction, etc.)
Lawful money:
Defined......................................................................................................
Defined for gold banks.........................................................................
Deposit of, to retire United States bond-secured circulation.
Exemption of circulation from taxation when, deposited........
Expiring associations to deposit.......................................................




93
67, 68

200
31

152

INDEX TO NATIONAL-BANK ACT, ETC*

Paragraph.

Lawful money— Continued.
Extended banks to deposit.................................................................
Five per cent fund................................................................................
Forfeiture of bonds, for failure to redeem circulation in..........
Limit of amount to be deposited monthly....................................
Liquidating associations to deposit.................................................
Liquidating associations, consolidating, not to deposit............
National bank circulation, including, to be deposited to re­
tire additional circulation...............................................................
National bank circulation to be redeemed in, at Treasury___
Payment of protested circulation in ...............................................
Protest of circulation, for failure to redeem in ............................
Receiver to be appointed for failure to maintain reserve of----Redemption account, disposition of................................................
Reserve to b e...........................................................................................
Withdrawing circulation, deposit of................................................
Lawful money reserve. (See Reserve.)
Legal tender:
Gold coins.................................................................................................
Minor coins...............................................................................................
Silver dollars............................................................................................
Subsidiary silver coins.........................................................................
United States notes...............................................................................
Liability:
Association's, for pledging, etc., United States notes, etc.........
Banks and assets, additional circulation........................................
Converted State bank for old notes.................................................
Creditor’s bill against shareholders..................................................
Estates owning stock subject to........................................................
False certification of checks...............................................................
Individual, of directors........................................................................
Limited to amount of capital, except.............................................
Personal, of shareholders.....................................................................
Shareholders, debars from voting.....................................................
Shareholders of certain banks exempt from..................................
Trustees, exempt from, when............................................................
Liabilities:
Associations organized under act of February 25,1863...............
Change of title or location not to affect..........................................
Comptroller’s report to contain statement of national banks..
Converted State banks.........................................................................
Deficiency in reserve, not to increase liabilities.........................
Deposit of lawful money relieves from, on circulation.............
Duties of receiver...................................................................................
Exceptions to limitation......................................................................
Extended associations..........................................................................
Liquidating associations, on consolidation....................................
Loans, restrictions on............................................................................
Reports of condition to show.............................................................
Restriction on..........................................................................................
Lien:
National currency association to have benefit of, when..........
United States has paramount, on assets of association.............
Limitations:
Associations, corporate existence.....................................................
Bonds, withdrawal of............................................................................
Capital, converted State banks.........................................................
Capital stock, increase of.....................................................................
Capital stock, reduction of..................................................................
Capital stock, payment of...................................................................
Capital stock, requisite amount of....................................................
Circulation, denominations........................................... .....................
Circulation, deposit of lawful money on withdrawing..............
Circulation exempt from tax..............................................................




Page.

30
124,127
171
69
165
166

18
5 3 ,5o
71
34
69
69

69
110
173
170
120
127
120
67, 68

34
49
71
70
52
55
52
33

214
218
216-242
217
219, 220

86
87
86-96
87
87

145
99
207
184
49
147
189
140
48
41
48
49

61
44
84
75
24
62
78
59
24
22
24
24

54
22
11
207
120
167
178
140
28
166
138
152
140

27
16
11
84
52
69
72
59
17
69
59
64
59

99
174

44
72

19
66, 67
52
38, 39
40
36
34
75
67
200

14
32, 33
26
22
22
21
20
37
33
83

153

INDEX TO NATIONAL-BANK ACT, ETC.

Paragraph.

Limitations— Continued.
Circulation obtainable...........................................................................
Circulation obtainable by gold banks..............................................
Circulation to be taken at par.............................................................
Circulation, tax on..................................................................................
Circulation, unauthorized, tax on.....................................................
Corporate existence of converted gold banks................................
Creditors of insolvent banks, notice to.............................................
Creditors of insolvent bank, illegal preference..............................
Directors, number of..............................................................................
Dividends..................................................................................................
Expiration of corporate existence......................................................
Extension of corporate existence.......................................................
Gold certificates, denominations of...................................................
Impairment of capital............................................................................
Interest rate..............................................................................................
Jurisdiction, general, of national-bank cases.................................
Lawful money deposited to retire circulation...............................
Liability of national banks..................................................................
Location of associations, change of....................................................
Loans...........................................................................................................
“ National” in title of bank.................................................................
Place of business......................................................................................
Public depositaries.................................................................................
Heal estate holdings...............................................................................
Reserve, gold banks...............................................................................
Receiver, appointment of.....................................................................
Receiver, purchase of property to protect trust............................
Reports of condition, transmitted......................................................
Reports of earnings and dividends, transmitted..........................
Reserve requirements............................................................................
Reserve with central reserve agents.................................................
Reserve with reserve agents................................................................
Shareholders, personal liability of.....................................................
Shareholders, personal liability of certain converted banks...
Shares of stock, par value................................................................... .
Shares of stock, directors to own........................................................
State taxation of money........................................................................
State taxation of national banks........................................................
Stock purchased or acquired............................................................. .
Suits, conduct of......................................................................................
United States bonds deposited......................................................... .
Visitorial powers......................................................................................
Voluntary liquidation, vote............................................................... .
Voluntary liquidation, deposit of lawful money..........................
Voters at elections................................................................................. .
Liquidation:
Bonds withdrawn....................................................................................
Creditor’s bill against shareholders...................................................
Consolidation............................................................................................
Expiring associations to comply with provisions for................. .
Lawful money to be deposited...........................................................
Notice of, to be published..................................................................
Penalty for issuing circulation of associations in ........................ .
Redemption of circulation of associations in .................................
Sale of bonds, when.............................................................................. .
Vote required.......................................................................................... .
Liquidation and receivership (see also Liquidation; Receiver):
Bonds, deficiency in, first lien on assets for redemption of
circulation............................................................................................
Bonds, forfeiture of................................................................................




Page.

74
92
134
156, 208
202,
203,204
94
179
192
42
137,142
31
25,32
146
143
135
24,28
195

36
40
58
65,84
83

140

59

J

15
59
80
52
25

68

193
119
50
33
93
183
186
152
154

120
131

121
48
48
35
43

211
162
139
194
57
191
163
165
41

41
73
80
59,60
19
16,20
61
60
58
16,17
81
33

20

41
74
77
64
64
52
56
53
24
24

20
23
85
67
59
81
29
80

68
69

22

167
184
166
31
165
164
238
168,169
167
163

69
75
69
19

174
171

72
7L

93
70
69

68

154

IN D E X TO N A T IO N A L -B A N K A C T , E T C .

Paragraph.

Liquidation and receivership— Continued.
Bonds, sale of, at auction....................................................................
Bonds, sale of, privately........................................................................
Bonds, withdrawal of............................................................................
Charter, forfeiture of............................................................
Circulation, protest of.............................................................................
Consolidation, provisions for................................................................
Creditor’s bill against shareholders....................................................
Deposit of lawful money on liquidating........................................
Distribution of assets 0 1 insolvent associations..............................
E n j o i n i n g prnoftfidiTlgP................
....... . .
.............................
Enjoining proceedings, where brought.............................................
E x p i r i n g qssnoiatioTls
_______________________
Illegal preference of creditors..............................................................
Jurisdiction, general, of national-bank cases.................................
Jurisdiction of circuit courts................................................................
Notice of vote to liquidate...................................................................
Notice to creditors of insolvent associations...................................
Notice to present circulation for redemption.................................
Penalty for issuing circulation of expired associations...............
Receiver, appointment of.....................................................................
Receiver, when may be appointed...................................................
Receiver, purchase of property to protect trust............................
Receivership, expenses of....................................................................
Shareholders’ agent, appointment of................................................
Shareholders’ agent, duties of..............................................................
Suits, conduct of......................................................................................
Suspension of business for nonpayment of circulation...............
Taxes on insolvent associations remitted.........................................
Vote required for liquidation..............................................................
Loans:
Associations’ liability restricted.........................................................
Circulation as collateral for, prohibited...........................................
Prohibited on security of own stock.................................................
Real estate, prohibited..........................................................................
Restrictions on..........................................................................................
Location (see also Title and location):
Change of....................................................................................................
Organization, certificate to state.........................................................
Losses:
Bad debts and, exceeding profits.......................................................
Lost or stolen national-bank notes:
Redemption of..........................................................................................
M .
Maceration:
Redeemed circulation to be disposed of by....................................
Maximum. (See Bonds; Capital; Circulation; Limitations.)
Minimum. (See Bonds; Capital; Circulation; Limitations.}
Misdemeanor. (See Crimes; Penalty; Official malfeasance.)
Monetary system:
National Monetary Commission to investigate and report on..
Money in the Treasury:
Appropriation of, to carry out provisions of act of May 30,1908.
Expenses of National Monetary Commission, to be paid from..
Moneys. (See Lawful money; Legal tender; Circulation; Public
moneys.)
Mortgages:
Assignment of, when illegal.................................................................
Assignment, when official malfeasance.............................................
Real estate, possession, etc., of, by association.............................
Mutilated or worn circulation:
Redemption of...........................................................................................




Page.

174
175
167
189
170
166
184
165
180
181
196
31
192
24
195
164
179
173
238
178
183
186
182
185
185
194
172
161, 209
163

72
72
69
78
70
69
75
69
73
74
81
19
80
16
81
68
73
71
93
72
74
77
74
75
75
81
71
67,85
68

140
141
139
33
138

59
60
59
20
59

21
17

15
14

142

60

128

56

91

40

116

50

114
117

49
50

192
149
33

80
62
20

90

40

155

INDEX TO NATIONAL-BANK ACT, ETC.

Paragraph.

Page.

N.
National.
Use of the word, in titles of associations other than national,
prohibited..............................................................................................
193
80
National-bank act:
Provides for a national currency, etc................................................
15
13
Status of national banks organized under act of February 25,
1863..........................................................................................................
54
27
National banking associations:
Amendment of articles of association restricted............................
35
20
Articles of association entered into b y .............................................
16
14
Branches may be retained by converted State banks.................
53
26
Capital required.......................................................................................
34
20
Cancellation of redeemed circulation...............................................
72
177
Certificate of officers and directors....................................................
70
35
Circulation obtainable b y .....................................................................
74
36
Circulation of, tax on.................................................. ...........................
65, 66
156-160
...............
Circulation of, to be redeemed in United States notes
53
124
Circulation to be taken at par.............................................................
134
58
Circulation of, for what receivable....................................................
88
39
Circulation unsigned or with forged signatures to be redeemed.
128
56
Change of title and location.................................................................
15,16
21-23
Charter forfeiture.....................................................................................
78
189
Charter number to be printed on circulation of............................
38
76
Closed bank circulation.........................................................................
168
70
Comptroller and Deputy Comptroller not to be interested in,
issuing circulation...............................................................................
7
10
Conversion of State banks to...............................................................
52
26
Corporate and incidental powers of...................................................
14
19
Deposit of bonds b y ................................................................................
29
57
Directors individually liable when...................................................
78
189
Directors, number and election o f ...................................................
42
23
Directors, oath of.....................................................................................
44
23
Directors, qualification of.....................................................................
23
43
Election, holding annual......................................................................
42, 46
23
Enjoining proceedings...........................................................................
74
181
35
Examination of, prior to being authorized to begin business...
70, 71
Expiration of corporate existence, provisions on..........................
19
31
Extended bank circulation..................................................................
18
30
Exchange of bonds..................................................................................
31
60
16,17
Extension of corporate existence of..................................................
25-27
Formation of national currency associations b y............................
42
98
32
General provisions respecting bonds.................................................
66
Gold bank circulation, provisions for issuing.................................
92
40
Gold banks may be organized.............................................................
92
40
41
Gold banks, conversion of....................................................................
94
22
38, 39
Increase of capital stock b y .................................................................
44
Liability of, as members of national currency association...........
99
70
Liquidating bank circulation..............................................................
169
68, 69
Liquidation, provisions for...................................................................
163-167
56
Lost or stolen notes of, to be redeemed............................................
128
110
National-bank act relative to, in force in the Indian Territory.
263
262
Oklahoma, qualification of directors in...........................................
110
Organization certificate to specifically state..................................
14
17
21
Payment of stock prior to beginning business...............................
36
Post-notes, issue of, prohibited...........................................................
89
40
Preparation of bank circulation..........................................................
75
37
Publication of certificate of authority..............................................
72
36
24
President of, to be chosen by board..................................................
47
21
Receiver may be appointed for failure to restore capital...........
37
22
Reduction of capital stock....................................................................
40
74
183
Receiver for, when may be appointed.............................................
40, 53
Redemption and destruction of circulation of............................... 90,91,124
55
Redemption account, disposition of..................................................
127




156

INDEX TO N ATIONAL-BANK ACT, ETC.

Paragraph.

National banking associations— Continued.
Regulation of business of.....................................................................
Relation of bond deposit to capital of............................................
Security for circulation........................................................................
Shares of stock........................................................................................
Shareholders of, qualifications of, at elections..............................
Shareholders’ agent...............................................................................
Shareholders of, personally liable....................................................
Shareholders of, when not personally liable.................................
Status of, organized under act of February 25,1863...............
Subscribed stock not paid for forfeited to.....................................
Suspension of business after default to pay circulation............
Taxation of circulation of, by States, etc......................................
Tax provisions restricted.....................................................................
Taxes on insolvent, remitted.............................................................
Where proceedings to enjoin may be brought............................
Withdrawing circulation......................................................................
National currency associations:
Additional circulation issued by State, etc., bonds, other
securities, and commercial paper.................................................
Board of.....................................................................................................
Body corporate when............................................................................
By-laws of, to be approved by Secretary of Treasury.............
Certificate of incorporation to be filed with Secretary of
Treasury................................................................................................
Circulation, additional, securities for and amount issuable..
Circuit court, United States, suit in, against defaulting bank,
when......................................................................................................
Commercial paper characterized and amount circulation
issuable thereon..................................................................................
Composition of.........................................................................................
Composition of membership...............................................................
Comptroller to receive and recommend to the Secretary dis­
position of applications to issue additional circulation........
Conditions of membership i n ................................................'...........
Creation of, authorized.........................................................................
Duties of....................................................................................................
Effect of reduction, below 10, in membership.............................
Liability of members............................................................................
Lien of United States, benefit of, for..............................................
Lien on assets of defaulting member enforceable b y .................
Limit of act creating.............................................................................
Limit of circulation to be issued to members of..........................
Membership in, how obtained...........................................................
National bank, member in but one.................................................
National banks to organize............ ....................................................
Number of, to be formed in any c ity ...........................................
Officers and executive committee, election and powers of___
Organization authorized......................................................................
Powers of...................................................................................................
Powers of board.......................................................................................
Redemption fund, how made good..................................................
Sale of securities authorized when...................................................
Secretary of the Treasury to approve.............................................
Secretary of the Treasury to determine character and value
of securities tendered and approve or otherwise the issue of
additional circulation.......................................................................
Securities deposited with, to be held in trust for the United
States......................................................................................................
Securities, exchange of, and additional.........................................
Securities^ including commercial paper, basis for additional
circulation............................................................................................
Treasurer United States may use redemption fund of other
banks when..........................................................................................




119-162
59
57, 58
35
41
185
48
48
54
37
172

210,211
208
161, 209
196
67, 68, 69

Page.

52-67
30
29, 30

20
22
75
24
24
27

21
71
85
84
67,85
81
33, 34

98
98

44
42
42
42

98
99

42
44

99

44

98
98

44
42
42

99

99
98
98
99
98
99
99
99
118
103
98
98
98
98
98
98
8,99
98

44
42
42

44
42
44

100
100
111

44
44
50
48
42
42
42
42
42
42
42,44
42
45
45
49

101

46

102,106
99

47,49
44

99

44

100

45

157

IN D E X TO N A T IO N A L -B A N K A C T , ETC.

Paragraph.
National Monetary Commission:
Appointment of members of___
Composition of...............................
Creation of, authorized................
Duties of............... ..........................
Expenses of, provided................
Limit of act creating...................
Report to Congress provided...
New York City:
Associations in, reserve agents.
Bonds, sale of forfeited, in.....................................................
Notice of expiration of corporate existence in paper ir
Notice of voluntary liquidation in paper in...................
Net profits. (See Dividends.)
Nonresidents:
Directors............. ...................................................................... .
State, etc., taxation of stock of.......................................... .
Notary public:
Acknowledgment of organization certificates before...
Acknowledgment of reports..................................................
Notice.

Page.

115
115
115
116
117
118
116

50
50
50
50
50
50
50

120,
121,131
174
31
164

52,
53, 56
72
19
68

43,262
162

23,110
67

18
152,153,
154

14
64

36, 70
44
190
18, 52
3
4
36
152,154
157-160
151

21,35
23
79
14, 26
9
10
21
64
66
63

230
237
233
234
145

91
93
91
92
61

235-236

93

61
70
38
36
88

31
35
22
21
39

190
19
190
147
189
128
239
98
153
149
148
95
238

79
14
79
62
78
56
94
42
64
62
62
41
93

(See Publication; Printing.)

O.
Oath:
Certificate of officers and directors....................................................
Directors................................................................................................... .
Examiners may take statements under...........................................
Execution of organization certificate.............................................. .
Official, by Comptroller........................................................................
Official, by Deputy Comptroller...................................................... .
Payment of installments..................................................................... .
Reports of condition, and earnings and dividends...................
Semiannual return of circulation.....................................................
Shareholders, list of..............................................................................
Obligations of the United States:
Defined...................... ...................... ........................................................
Penalty for dealing in counterfeit................... . ..............................
Penalty for illegal possession or use of material for...................
Penalty for passing counterfeit.........................................................
Penalty for pledging............ ................................................................
Penalty for taking or having unauthorized impressions of
tools, etc............................... ..............................................................
Officers (see also President; Cashier):
Bonds assigned to be signed by cashier or other..........................
Certificate of directors and.................................................................
Certificate of payment of increase of stock..................................
Certification of payment of stock by president or cashier.........
Circulation properly signed, issuable..............
Disqualified^ to examine national banking associations m
which interested as............................................................
Election or appointment of, by directors.......................
Examination of, under oath........ .......................................
False certification of checks forbidden............................
Forfeiture of charter, provisions for...................... ..........
Forged signatures of, to circulation not to invalidate.
Fraudulent notes to be marked b y . . ...............................
National currency association, election of.......................
Oath, administration of, to reports...................................
Official malfeasance, penalty for.......................................
Penalty for false certification of checks..........................
Penalty for improper countersigned, etc., circulation.
Penally for issuing circulation of expired associations,




158

INDEX TO N AT10NAL-BAN & ACT, ETC.

igraph.

Officers— Continued.
Penalty for official malfeasance...........................................................
Penalty for pledging, etc., circulation..............................................
Penalty for unauthorized receipt of public money.....................
Preference of creditors............................................................................
President of board a director.......................... ...................................
President or cashier, certification of extension............. ................
President or cashier, certification of expiration of existence..
President or cashier, certification of liquidation...........................
President or cashier waiving notice of protest................ ............
President or vice president and cashier to sign circulation.......
Proxy, not to act as.............................. .............. ...................................
Receiver, appointment of, for violation of national-bank act b y .
Redemption of unsigned circulation.................................................
Reports of condition, verification of, by president or cashier..
Reports of earnings and dividends, attestation of, by president
or cashier...............................................................................................
Shareholders’ list, verified by president or cashier....................
Taxation, circulation subject to, returns by president or cashier.
Taxation, unauthorized circulation, returns by president or
cashier....................................................................................................
Officers, United States:
Deposit and withdrawal of public money.................................
Penalty for improper countersigning or delivering circulation.
Penalty for unauthorized deposit of public money.................
Receiving or disbursing public money to mark fraudulent----Officers, vaults, etc.:
Assignment of, to the Comptroller by the Secretary...............
Oklahoma:
Deposit guarantee law.......................................................................
Qualification of directors of association in..................................
Organization and powers of national banks:
Amendment of articles of association............................................
Articles of association.........................................................................
Branches of converted State banks...............................................
Capital stock........................................................................................ .
Capital stock requirements............................................................. .
Certificate of authority to begin business.................................. .
Certificate of officers and directors................................................
Change in title and location............................................................
Conversion of gold banks..................................................................
Conversion of State banks...............................................................
Corporate powers................................................................................
Deposit of bonds.................................................................................
Directors, election of.........................................................................
Directors, number and election of...............................................
Directors, oath of...............................................................................
Directors, qualification of................................................................
Directors, qualification of, in Oklahoma....................................
Directors, to choose president........................................................
Directors, vacancy, now filled.......................................................
Enforcing payment of stock...........................................................
Examination preliminary to beginning business.....................
Execution of organization certificate..........................................
Extension of corporate existence..................................................
Failure to hold election...................................................................
Gold banks, conversion of...............................................................
Gold banks, organization of............................................................
Incidental powers..............................................................................
Increase of capital stock, provisions for.....................................
Increase of capital stock, when valid.........................................
Liquidation..........................................................................................
Location and title, change of.........................................................
Location.................................................................................................




Page.

149
145
229
192
47
26
31
164
170
75
41
183
128
152

62
61
90
80
24
17
19
68
70
37
22
74
56
64

154
151
157

64
63
66

205

83

224
95
228
239

88
41
90
94

9

11

267
262

115

35
16
53
17
34
71
70

20
14
26
14
20
35
35
15
41
26
14
29
23
23
23
23

21

94
52
19
57
46
42
44
43
262
47
45
37
70
18
25
46
94
92
19
38,39
38
163
21
17

110

110
24
23

21
35
14
16
23
41
40
14
22
22
68
15
14

159

INDEX TO NATIONAL-BANK ACT, ETC.

Paragraph.
Organization and powers of national banks— Continued.
Organization certificate.......................................................................
Payment of stock...................................................................................
President, election of, by board.......................................................
President, qualification of..................................................................
Publication of certificate of authority to begin business..........
Reduction of capital stock, provisions for.....................................
Restoration of capital stock................................................................
Shareholders............................................................................................
Shareholders, personal liability of...................................................
Shareholders, qualification of, at election.....................................
Shareholders, when personally liable.............................................
Shares of stock.......................................................................................
State banks, conversion of..................................................................
State banks, converted, may retain branches.............................
Status of associations organized under act of February 25,
1863........................................................................................................
Title...........................................................................................................
Title and location, change of.............................................................
Vacancies in board, how filled..........................................................
Organization certificate:
Certified copy of, evidence................................................................
Comptroller to grant or withhold.....................................................
Conversion of gold banks....................................................................
Conversion of State banks..................................................................
Execution of............................................................................................
Sealed certificate of Comptroller, evidence..................................
Specifications in.....................................................................................

17
36
47
47
72
40
37
17
48
41
48
35
52
53
54
17

Page.

14

21
24
24
36

22
21
14
24

22

24

20
26
26

45

27
14
15
23

198
71
94
52
18
197
17

82
35
41
26
14
82
14

58
58

30
30

36

21

17 8 ,18 3
3
4
232
237
148
37
17 1
189
233
96
95
136
238
24-28
97
226
193
149
234
145
155

72, 74
9

21

P.
Panama Canal Bonds:
Available as security for circulation...............................................
Tax on circulation secured b y ..........................................................
Payment of capital stock:
Provisions relative to...........................................................................
Penalty:
Appointment of receiver for violations of act..............................
Bond of Comptroller.............................................................................
Bond of Deputy Comptroller.............................................................
Counterfeiting circulation..................................................................
Dealing in counterfeit circulation...................................................
False certification of checks...............................................................
Failure to pay installment on stock................................................
Failure to redeem circulation............................................................
Forfeiture of charter.............................................................................
Illegal possession or use of material for circulation....................
Imitating bank circulation for advertising purposes.................
Improper countersigning or delivering circulation....................
Interest, unlawful.................................................................................
Issuing circulation of expired associations....................................
Jurisdiction of United States courts...............................................
Mutilating circulation..........................................................................
Misapplication of monev-order funds..............................................
“ National,” unlawful use of the word...........................................
Official malfeasance..............................................................................
Passing counterfeit circulation..........................................................
Pledging United States notes or bank circulation......................
Reports to Comptroller, failure to make........................................
Reserve, maintenance of.....................................................................
Semiannual return of circulation.....................................................

Taking or having unauthorized impressions of tools, etc
Unauthorized deposit of public money.............................
Unauthorized receipt or use of public money.................




120

156-160,
202-204,
205
235,236
228
229

10

91
93
62

21

71
78
91
42
41
58
93
16 ,17
42
89
80
62
92
61
64
52
65,
66,83
93
90
90

160

INDEX TO NATIONAL-BANK ACT, ETC.

Paragraph.

Personal liability. (See Shareholders; Trustee; Liability.)
Plates:
Act of May 30, 1908..................................................
Control of
Cost of enj
Custody oi
Engraving o f............................................................................................
Examination annually.........................................................................
Expense of examination and destruction of.................................
Extended banks.....................................................................................
Liquidating bank, to be destroyed..................................................
Penalty for counterfeiting, or having possession of counterfeit
Penalty for taking unauthorized impressions of tools, etc___
Penalty for having false impressions of tools, etc.......................
Pledging or hypothecating circulation:
Prohibited................................................................................................
Political contributions:
Prohibited................................................................................................
Population:
Relation of capital stock t o ................................................................
Porto Rico:
National banking laws applicable to...............................................
Postmasters:
Deposit of public funds b y .................................................................
Misapplication of money-order funds b y .......................................
Postmaster General:
Deposit of funds by authority of......................................................
Post-notes:
National banking associations prohibited from issuing...........
Powers (see also Comptroller):
Granted to national banks..................................................................
Incidental, of national banks...........................................................
National currency association...........................................................
Visitorial, limitation o f........................................................................
Preferences:
Preference of creditors illegal...........................................................
Preparation of circulation:
Provisions for...........................................................................................
President (see also Officers):
Certificate of officers and directors...................................................
Countersigning or delivering circulation improperly...............
Director to be..........................................................................................
Election or appointment of, by directors......................................
False certification of checks and penalty for................................
Official malfeasance, penalty for......................................................
Proxy, not to act as...............................................................................
Public money, unauthorized receipt of, b y ................................
Signature of, forged, not to invalidate circulation.....................
Signature of, on circulation...............................................................
Violations of act by, penalty for......................................................
President of the United States:
Appointment of Comptroller b y .......................................................
Printing (see also Publication):
Additional circulation.......................................... . .....................
Annual report of the Comptroller, number printed and distri­
bution o f...............................................................................................
Certificate of authority to begin business.....................................
Charter numbers on circulation........................................................
Circulation of associations...................................................................
Circulation of extended banks..........................................................
Creditors of insolvent associations, notice to................................
Notice of special annual election.....................................................
Notice of sale o£ delinquent stock...................................................




Page.

75
78
30,124
9
75
79
79
30
79
233,235
235
236

37
38
18,53

141

60

150

63

34

20

264

110

225
226

89

226

89

89

40

19
19
98,99
191

14
14
42,44

192

80

75

37

70
95
47
19
147-148
149
41
229
128
75-88
183,189

35
41
24
14
62
62

11

37
38
38
18
38
91,93
93
93

88

22

90
56
37, 39
74, 78
9

75

37

11,
12,13,14
72
76
75
30
179
46
37,143

11,12

36
38
37
18
73
23
21,60

IN D E X

T O N A T IO N A L -B A N K

161

ACT, ETC.

Paragraph.

Printing— Continued.
Notice of sale of bonds at public auction......................................
Notice of liquidation...........................................................................
Notice of expiration..............................................................................
Penalty for counterfeiting circulation...........................................
Penalty for illegal possession or use of material for circulation.
Penalty for imitating circulation.....................................................
Penalty for taking or having unauthorized impressions of
tools, etc., for.....................................................................................
Reports of condition.............................................................................
Shareholders’ agent, notice of election of.....................................
Voluntary liquidation, notice of......................................................
Protest of circulation:
Bonds forfeited, when..........................................................................
Bonds, sale of, when............................................................................
Failure to redeem circulation...........................................................
Publication (see also Printing):
Annual election, notice of holding special...................................
Certificate of authority to begin business......................................
Creditors of insolvent associations, notice to................................
Nonpayment of circulation, notice to present.............................
Reports of condition of national banks..........................................
Sale of bonds, notice of.......................................................................
Sale of delinquent stock, notice of..................................................
Shareholders’ agent, notice of election of.....................................
Voluntary liquidation, notice of......................................................
Public debt. (See Imports and interest on public debt.)
Public deposits (see also Deposits):
Banks to give security for..................................................................
Interest on...............................................................................................

Page.

174
164
31
232
233
96

72
68
19
91
91
42

235,236
152
185
164

93
64
75
68

171
174,175
170

i
;
!
i
1

71
72
70

46
72
179
173
152
174
37,143
185
164

23
36
73
71
64
72
21,60
75
68

50
51

25
25

i

Q.

Qualification:
Comptroller of the Currency..............................................................
Deputy Comptroller.............................................................................
Directors of national banks................................................................
Directors of national banks in Oklahoma......................................
Examiners of associations...................................................................
Shareholders’ agent..............................................................................

3 1
1
4 1
43
262
190
185

9
10
23
110
79
75

R.
Rate. (See Interest; Tax; Usury.)
Ratio (see also Bonds; Capital; Circulation):
Additional national-bank circulation, to capital and surplus..
Real estate:
Investments and holdings restricted............................................
Subject to State, etc., taxation......................................................
Receiver:
Appointment and duties of..............................................................
Appointment of, for failure to dispose of own stock................
Appointment of, for failure to restore diminished capital.. .
Appointment of, for false certification of checks......................
Appointment of, for nonpayment of circulation.......................
Appointment of, for impairment of capital................................
Appointment of, for insolvency.....................................................
Appointment of, for nonmaintenance of reserve.......................
Courts may enjoin...............................................................................
Expenses of, ho;v paid...........................................................................j
General jurisdiction of national-bank cases....................................1
Jurisdiction of circuit courts to enjoin Comptroller.....................!
Purchase of property by, to protect trust........................................i
Receiverships. {See Liquidation and receivership; Receiver.)
J
88020°— 11-------11




99

44

33
162

20
67

178
178
178
178
178
178
183
178
181
182
24, 28
195
186

72
72
72
72
72
72
74
72
74
74
16,17
81
77

162

INDEX TO NATIONAL-BANK ACT, ETC.

Paragraph.
Redemption:
Additional circulation, act May 30. 1908.........................................
Cancellation of circulation sent for....................................................
Deposit of lawful money for, of associations in liquidation----Disposition of, account...........................................................................
Enjoining Comptroller............................................................................
Extended bank circulation..................................................................
First lien on assets...................................................................................
Five per cent fund for, to be maintained........................................
Five per cent fund for, part of lawful reserve...........................
Forfeiture of bonds........................................................................
Forged signatures not to prevent........................................................
General provisions respecting..........................................................
Incomplete circulation...........................................................................
Issue and redemption division established.....................................
Lawful money, of circulation...............................................................
Liquidating bank circulation...............................................................
Notice to present circulation for.......................................................
Proceeds from sale of bonds for, of circulation..........................
Profit on circulation not presented for.........................................
Protest cf circulation, for failure to redeem..................................
Records of.................................................................................................
Sale of bonds.........................................................................................
United Suites notes, of circulation in .............................................
Unsigned circulation to be redeemed...............................................
Withdrawn circulation...........................................................................
Worn or mutilated circulation...........................................................
Redemption account:
Disposition of.............................................................................................
Redemption of United States notes:
Gold coin and bullion to be set apart as reserve for..................
Register of the Treasury:
Signature on circulation........................................................................
Registered bonds. (See Bonds, United States.)
Regulation of banking business:
Assessment, enforcement of..................................................................
Circulation, improper use of.................................................................
Dividends...................................................................................................
Dividends prohibited, when................................................................
Examiners, appointment of..................................................................
Examiners, compensation of................................................................
Impairment of capital............................................................................
Interest, limited...................................................................................
Interest, unlawful, penalty for............................................................
Laws governing certain associations..................................................
Liability of association restricted.......................................................
Loans, restrictions on..............................................................................
Net profits...................................................................................................
Place of business....................................................................................
Real estate, purchasing, etc.................................................................
Reports of condition................................................................................
Reports, failure to make........................................................................
Reports, verification o f..........................................................................
Reports of dividends and earnings..................................................
Reserve cities............................................................................................
Reserve cities, balances with agents.................................................
Reserve cities, central............................................................................
Reserve cities, requirements................................................................
Reserve requirements, gold banks.....................................................
Shareholders, list of.................................................................................
State taxation of associations...............................................................
Stock, holding, etc...................................................................................
Surplus and dividends...........................................................................
Uncurrent notes, use of, prohibited...................................................




Page.

100,104
] 77
165
127
181
30
174
124
124
171
128
124
128
2-13
110
168,169
173
167
30
170
176
174,175
124
128
67, 68
90, 91

45, 48
72
69
55
74
18
72
53
53
71
56
53
56
96
49
70
71
69
18
70
72
72
53
56
33
40

127

55

241

95

75

37

143
141
137
142
190
190
143
135
136
55
140
138
137
119
33
152
155
153,154
154
120,126
121
131,133
120
93
151
162
139
137
144

60
60
59
60
79
79
60
58
58
29
59
59
59
52
20
64
64
64
64
52, 55
53
56, 57
52
41
63
67
59
59
61

163

IN D E X TO N A T IO N A L -B A N K A C T , ETC.

Paragraph.

Regulation of banking business— Continued.
Unearned dividends prohibited.........................................................
142
Visitorial powers, limitation o f ..........................................................
191
Reimbursement. (See Circulation; Expenses; Plates and dies.)
Reports:
Amendments proposed in Comptroller’s..........................................
11
Annual, to be made to Congress.........................................................
11
Banks, other than national..................................................................
11
Circulation, semiannual return of......................................................
157
dosed banks..............................................................................................
11,12
Condition of national banks in............................................................
11
Distribution of..........................................................................................
13,14
Dividends and earnings......................................................................... I 154,155
List of shareholders................................................................................. !
151
Payment of capital stock...................................................................... |
36
Printed, number of copies.................................................................... 1
13,14
Statement of condition of national banks.......................................
152,153
Verification of, relative to additional circulation, by the
Comptroller............................................................................................
156
Reserve:
(,'learing-housc certificates....................................................................
121
Five per cent fund..................................................................................
124
Gold and silver, held by gold banks.................................................
93
Gold certificates.......................................................................................
146
Lawful money...........................................................................................
120
Maintenance of.........................................................................................
J20
Penalty for failure to maintain...........................................................
120
Proportion of, with agents....................................................................
121,131
Requirements...........................................................................................
120
Requirements for gold banks..............................................................
93
Silver certificates.....................................................................................
223
United States deposits, not required on United States note
certificates..............................................................................................
123
Reserve agents (see also Agent):
Balance with.............................................................................................
121
Reserve cities:
Additional, provisions for.....................................................................
126
Central, deposits in.................................................................................
131
Central, provisions for............................................................................
133
Named.........................................................................................................
120
Requirements, not applicable to gold banks in San Francisco.
131
Requirements of associations in.........................................................
120
Residence:
List of shareholders and, reported annually..................................
151
List of shareholders in organization certificate..............................
17
National banks.........................................................................................
24
Qualification of directors of associations..........................................
43,262
Resources. (See Assets.)
Restoration of capital stock:
Provisions for............................................................................................
37,143
Returns. (See Circulation; Reports; Taxation.)
S.
Sale:
Assets of insolvent associations by receiver....................................
Assets of insolvent associations by shareholders’ agent..............
Bonds for failure to redeem circulation...........................................
Securities deposited for additional circulation..............................
Stock for delinquent payment of installment................................
Stock on impairment of capital..........................................................
Stock taken for debt...............................................................................
Savings banks. (See Code of the District of Columbia.)




178
185
167,
171,175
100
37
143
139

Page.

60
80

11
11
11
66
11,12
11
12
64
03
21
12
64
65
53
53
41
61
52
52
52
53, 56
52
41
87
53
53
55
56
57
52
56
52
63
14
16
23,110

21,60

72
75
69,
71,72
45
21
60
59

164

IN D E X TO N A T IO N A L -B A N K A C T , E T C .

Paragraph.

Seal of office of Comptroller:
Certified copy of organization certificate under, evidence___
Certificates under, competent evidence...........................................
Description, impression of, and certificate of approval by Sec­
retary of the Treasury, to be filed with the Secretary of State.
Devised by Comptroller and approved by Secretary..................
Secretary of Interior:
Report to, of bureau employees.........................................................
Secretary of State:
Description, impression, and certificate of seal of Comptroller
to be filed with.....................................................................................
Secretary of the Treasury:
Acts of Comptroller and Treasurer to be approved b y ...............
Agent, special, to be appointed for associations failing to red fif im r i m l l a t , i n n
______________________________________________________
A p p o in t m e n t , o f C o m p t r o lle r o n r f ir o m m a n d a t in n o f ........................

Appointment and classification of clerks b y ..................................
Appointment of Deputy Comptroller b y .........................................
A s s ig n m e n t n f r o o m s ) e t.r } f o r t.h ft C o m p t .ro llp r h y ____

____

Authorization of, for issue of additional circulation....................
Authorized to exchange registered for coupon bonds..................
Circulation, worn or mutilated, destruction of, b y ......................
Determines character and value of securities for additional
circulation..............................................................................................
Duties of Comptroller under general direction of.........................
Exchange of bonds, terms of, prescribed b y ...................................
Information relative to available securities for additional cir­
culation to be obtained by, and tendered to banks.................
Organization of national banks with capital less than $100,000
to be approved b y ................................................................................
Plates and dies, examination of, b y ..................................................
Recommendation of appointment of Comptroller b y ..................
Recommendation of Comptroller to be approved, or otherwise,
b y ..............................................................................................................
Receivers, appointment of, by Comptroller, concurrence in
by, in certain cases..............................................................................
Reserve cities, designation of, by Comptroller, to be approved
b y ..............................................................................................................
Rules to be established by, relative to act of May 30, 1908___
Seal of office of Comptroller to be approved b y ............................
Supervision of formation of national currency associations.........
Securities, other than United States bonds, for additional circula­
tion:
Character, etc., acceptable by Treasurer of the United States
and Secretary of the Treasury.........................................................
Character, etc., acceptable through national currency associa­
tion............................................................................................................
Exchange of................................................................................................
Information relative to available, to be obtained by Secretary
and tendered to banks........................................................................
Receipt for, to be given by Treasurer or assistant treasurer.. .
Sale of, when.............................................................................................
Treasurer or assistant treasurer to accept.........................................
Transfer and assignment of, to be countersigned by Comp­
troller of Currency...............................................................................
Withdrawal of, to retire circulation...................................................
Security for circulation (see Bonds, United States; Additional cir­
culation):
Commercial paper as...............................................................................
Municipal, etc., bonds as......................................................................
United States bonds as...........................................................................
Security for loans:
Personal.......................................................................................................




Page.

198
197

82
82

8
8

11
11

12

12

8

11

111

49

171
2
6
4
9
99
60
90, 91

71
9
10
10
11
44
31
40

99
1
66

44
9
32

106

49

34
79
2

20
38
9

99

44

120

52

133
111
8
98

57
49
11
42

101

46

99
99,101

44
44,46

106
102
100
102

49
47
45
47

102
69

47
34

99
101
57, 58

44
46
29, 30

19

14

165

IN D E X TO N A T IO N A L -B A N K A C T , E TC.

“aragraph.
-------------Senate:
Comptroller’s reports to be sent to.....................................................,
Members of, on National Monetary Commission...........................'
Presiding officer of, appointment by, of members of National I
Monetary Commission........................................................................|
Shareholders:
j
Agent of, to return to, assets of insolvent association.................
Appointment and qualification of agent of.....................................■
Assessment for impairment of capital.............................................. 1
Assets of insolvent association to be returned to, ratably after
debts are paid.......................................................................................1
Consent of, necessary to extension....................................................
Conversion of State banks, requirements.........................................1
Creditor's bill against............................................................................. j
Directors, election or appointment of, by.......................................
Dissenting to extension may withdraw............................................
Duties of agent of................ J..................................................................
Enforcement of assessment for impairment of capital stock___
Enforcing payment by, of installments............................................
Estates and funds with trustee liable for assessment...................
Extension of corporate existence........................................................
Increase of capital stock b y ..................................................................
List of, to be kept and copy sent to Comptroller..........................
List of, subject to inspection...............................................................
Location, change of, by.........................................................................
Names, residences, and number of shares held by each in or­
ganization certificates.........................................................................
Personal liability of.................................................................................
Personal liability of, in certain converted State banks..............
Provisions for election by, when........................................................
Proxies, voting b y ...................................................................................
Qualifications of directors.....................................................................
Reduction of capital stock b y..............................................................
Rights and liabilities of, on transfer of shares................................
Title and location of association, change of, by.............................
Vote of, necessary to place association in liquidation.................
Voters, qualification of...........................................................................
Shareholders’ agent. (See Agent.)
Shares:
Association not to own or hold its own, except.............................
Consent of owners of two-thirds, necessary to extension............
Converted State bank to be the same as prior to conversion.. .
Disposition of, taken for debt..............................................................
Fifty j>er cent of aggregate value of, to be paid in prior to be­
ginning business...................................................................................
Holding of, in other banks, by converted banks authorized.. .
Installments, payment and certification of.....................................
List of owners of, to be kept and copy sent to Comptroller___
Loan on security of, prohibited..........................................................
Oath of director relative to...................................................................
Owners of two-thirds may place association in liquidation___
Organization certificate to state capital and number of.............
Personal property....................................................................................
Preference in allotment of, in succeeding association.................
Qualifications of directors.....................................................................
Receiver may be appointed for failure to dispose of, tak en .. .
Sale or forfeiture of, for failure to pay installments due.............
Sale of, when necessary.........................................................................
State taxation of.......................................................................................
Transfer of..........................................................................................
Value of, of shareholders dissenting to extension, how ascer­
tained......................................................................................................
Value, par, of each...................................................................................
Voting..........................................................................................................




Page.

13
115

12
50

115

50

185
185
]43

75
75
60

73
180
17
26
52
2(5
75
184
19, 42
14, 23
29
18
75
185
60
143
21
37
24
49
16,17
25, 26
22
38, 39
63
151 1
63
151 1
21 !

15

17
48
48
46
41
43
40
35
21
163
41

14
24
24
23
22
23
22
20
15
68
22

139
26
52
139

59
17
26
59

36
52
36
351
139
44
163
17
35
29
43
183
37
29,
139,143
162
35

21
26
21
63
59
23
68
14
20
18
23
74
21
18,
59, 60
67
20

29
35, 52
41

18
20,26
22

166

IN D E X TO N A T IO N A L -B A N K

A C T , ETC.

Paragrapn.
Signature on circulation:
President or vice-president and cashier...........................................
Treasurer and Register, United States..............................................
Silver:
Construed to be lawful money, when................................................
Reserve of gold banks to be gold and...............................................
Silver certificates:
Clearing-house balances payable in ...................................................
Issue of, in place of Treasury notes, when......................................
T
Issue of, wh e n ..........................................................................................
T
Reserve of national banks may be.....................................................
Silver certificates, denomination of...................................................
Silver coinage:
Dollars.........................................................................................................
Subsidiary..................................................................................................
Silver dollars to remain legal tender.........................................................
Solicitor of the Treasury:
Conduct of suits under direction and supervision of...................
Speaker of the House of Representatives:
Appointment by, of Members of House of Representatives on
National Monetary Commission......................................................
Special agent. (See Agent.)
Special reports. (See Reports.)
State banks:
Branches of converted...........................................................................
Circulation of, when exempt from taxation...................................
Conversion of.............................................................................................
Penalty for failure to make return of tax on circulation...........
Penalty for unauthorized receipt of public money.....................
Reports of, provided for........................................................................
Return of taxable circulation..............................................................
Shareholders’ personal liability, exceptions..................................
Shares of, converted................................................................... ............
Tax on converted....................................................................................
Tax on unauthorized circulation........................................................
State courts. (See Comptroller; Suits.)
State, Territory, or District:
Change of title or location of associations...................................... .
Compensation of national-bank examiners................................... .
Conversion of bank organized under authority of laws of. . . . .
Interest, legal rate in, national banks not to take, etc., in ex­
cess of......................................................................................................
“ National,” use of the word in titles............................................. .
Qualification of directors..................................................................... .
Proceedings to enjoin comptroller or receiver, to be brought in
district in which association is located...................................... .
Taxation of circulation of State, etc., associations..................... .
Taxation of money b y ...........................................................................
Taxation of national banks b y .......................................................... .
Succession:
Expired associations............................................................................. .
Period of, national banks.................................................................... .
Suits:
Against United States officers or agents......................................... .
Certified copy of organization certificate evidence in...............
Circuit courts, jurisdiction of, to enjoin comptroller.................
Circuit and district courts, jurisdiction o f.................................... .
Corporate powers of associations.......................................................
Creditor’s bill against shareholders..................................................
Crimes, jurisdiction, etc. (See Crimes.)
Enjoining comptroller or receiver...................................................
Forfeiture of charter..............................................................................
Proceedings to enjoin comptroller to be brought, where
Sealed certificate of comptroller, competent evidence............




Page.

75
75

37
37

93
93

41
41

223
244
244, 246
223
246

87
97
97, 98
87
98

1 242,244
1 247,248
!
242

96, 97
98, 99
96

194

81

115

50

53
200
52
206
229
11
205
!
48
!
52
j
207
202-204

26
83
26
84
90
11
83
24
26
84
83

21
190
52

15
79
26

135
193
43

58
80
23

196
199-209
210, 211
162

81
82-85
85
67

29
19

18
14

194
198
195
24, 28
19
184

81
82
81
16,17
14
75

181
189
196
197

74
78
81
82

1
!
j

'
|
i
,
1

IN D E X

TO N A T IO N A L -B A N K

167

ACT, ETC.

Paragraph.

Suits— Continued.
Shareholders’ agent......................................................................
Shareholders’ liability, to enforce...........................................
Solicitor of the Treasury to direct and supervise certain.
Surplus (see also Surplus and dividends):
Additional circulation issuable, measured b y .....................
Converted State bank with capital of $5,000,000...............
Creation of.......................................................................................
Loans, limit of, measured by capital and.............................
Surplus and dividends:
Provisions for surplus and payment of dividends..............
Surrender of bonds. (See Bonds, United States.)

Page.

185
178
194

75
72
81

48
137
138

44
24
59
59

137

59

207
159

84

200

83

158
156
160
157

66

211

202-204

85
82
83

206

84

205
208
161, 209

162

83
84
67, 85
67

21-23

15,16

192

80

101
111

46
49
34
46
55
66

T.
Tax:
Bills of converted State bank...............................................
Circulation, enforcing payment of......................................
Circulation, exempt from.......................................................
Circulation, failure to make returns...................................
Circulation, rate and time of payment..............................
Circulation, refunding excess...............................................
Circulation, semiannual return of.......................................
Money of all kinds subject to, by States, etc................. .
Notes, State banks, corporation, company, or persons.
Notes, State banks, corporation, company, or persons, failure
to make return.....................................................................................
Notes, State banks, corporation, company, or persons, semi­
annual return........................................................................................
Provisions restricted...............................................................................
Remission of, on insolvent national banks.....................................
State taxation of national banks........................................................
Taxation. (•SW Tax.)
’
Teller. (See Officers.)
Territorial court. (^ C o m p tro ller; Redemption; State, etc.)
Title and location:
Change of, by national banks..............................................................
Transfers. (See Treasurer, United States; Bonds, United States.)
When void.................................................................................................
Treasurer, United States:
Acceptance of bonds, etc., on approval of Secretary..................
Acts of, to be approved by Secretary of Treasury........................
Circulation, withdrawal of, provisions for.......................................
Deposit of securities with.....................................................................
Disposition of redemption account....................................................
Enforcing tax on circulation................................................................
Examination of bonds and records, provisions for.......................
Interest on bonds to be retained by, when....................................
Monthly returns of additional circulation to, and verification
of reports by Comptroller of the Currency.................................
Proceedings on default in making return on circulation subject
to duty....................................................................................................
Proceeds of sale of securities to be deposited with, to redeem
additional circulation........................................................................
Public moneys to be deposited with assistant treasurer, Gov­
ernment depositaries, or...................................................................
Receipt for bonds deposited to be given by, or assistant treas­
urer..........................................................................................................
Redemption fund of other banks available on default...............
Redemption fund to be kept with....................................................
Redemption of circulation by.............................................................
Redemption of circulation in United States notes b y ................
Semiannual return to, of circulation subject to duty.................
Signature of, on circulation.................................................................




1Q
Q

66
65

66
66

69
101
127
159
64-66
143,159

60, 66

156

65

159

66

100

45

39

224

102

100
124
124
124
157
75

47
45
53
53
53

66
37

168

IN D E X TO N A T IO N A L -B A N K A C T , ETC.

Paragraph.
Treasurer, United States— Continued.
Tax, excess, refunding.........................................................................
Tax on circulation to be paid to.......................................................
Title to bonds deposited with, in trust for United States........
Transfer of bonds in trust for associations to be made to.........
Treasury notes:
Demand.....................................................................................................
Interest bearing......................................................................................
Issue of.......................................................................................................
Treasury, United States (see also Treasurer, United States):
Associations to reimburse, for cost of redemption of circula­
tion and plates....................................................................................
Currency bureau in ...............................................................................
Divisions of issue and redemption established............................
Notice to present circulation at.........................................................
Penalty for failure of associations to report to be paid into........
Redemption account, disposition of................................................
Redemption fund, 5 per cent, in ......................................................
Redemption of circulation at.............................................................

Page.

160
156
102
61
220
221
255

87
87
100

124
1
243
173
155,157
127
124
67,
124,168,
176,177

53
9
96
71
64, 66
55
53
33, 53,
70, 72

186

77

49

24

144

61

181
189
194

74
78
81

51
123

25
53

239
228
224

Trust:
Purchase of property by receiver to protect.................................
Trustee:
Shareholders’ liability, exemptions from......................................
Trust companies in District of Columbia. (See separate index.)

66
65
47
31

94
90
88

124
239
230
237
236
234
145

53
94
91
93
93
92
61

235,236
211

93
85

135
136

58
58

45

23

61
75, 88
19
41

31
37,39
14
22

TJ.
Uncurrent notes:
Issue of, prohibited...............................................................................
United States (see also Officers of the United States; Crimes, juris­
diction, etc.):
Courts of, may enjoin proceedings...................................................
Forfeiture of charter..............................................................................
Suits in which United States is party.............................................
United States deposits:
Interest to be paid on, when..............................................................
Reserve on, in banks, not required.................................................
United States disbursing officers:
Fraudulent notes to be marked b y ..................................................
Penalty for unauthorized deposit of public money...................
Withdrawal of public money.............................................................
United States notes:
Circulation of banks to be redeemed in.........................................
Fraudulent, to be marked...................................................................
Obligations of the United States defined.......................................
Penalty for dealing in counterfeit....................................................

1
1
1
1
'

Penalty for passing counterfeit.....................................................
Penalty for pledging, etc.................................................................
Penalty for taking or having unauthorized impressions ot
tools, etc............................................................................................
Subject to taxation by States, etc................................................
Usury:
Interest, when not.............................................................................
'
Penal tv for...........................................................................................

V.
Vacancies:
Board of directors, filling.................................. .
Vice-president (see also Officers):
Bonds, United States, may sign transfer of.
Circulation, may sign..........................................
Election or appointment of...............................
Proxy, not to act as.............................................




169

INDEX TO NATIONAL-BANK ACT, ETC.

Paragraph.

Violations of provisions of national-bank act:
Forfeiture of charter for........................................................................
Visitorial powers:
Limitation of national banking associations, subject to.............
Voluntary liquidation. (See Liquidation.)
Voters:
Qualifications of shareholders at elections......................................

Page.

189

78

191

80

41

22

69
66
67, 68
224,228
29
31
192
167
40
142

34
32
33
88,90
18
19
80
69
22
60

W .

Withdrawal:
Additional circulation............................................................................
Bonds, general provisions respecting................................................
Circulation, provisions for.....................................................................
Deposit and, of public moneys...........................................................
Dissenting shareholders.........................................................................
Expired associations, bonds of............................................................
Illegal preference of creditors.............................................................
Liquidating associations, bonds of.....................................................
Reduction of capital...............................................................................
Unearned dividends...............................................................................







INDEX TO CODE OF THE DISTRICT OF COLUMBIA.
Section.

Banking institutions in District of Columbia:
Subject to supervision of Comptroller of the Currency, w hen..
Building associations in District of Columbia:
Objects........................................................................................................
Under supervision of Comptroller of the Currency......................
Certificate of incorporation:
Filing of, with recorder.........................................................................
Charters:
Commissioners' power to grant............................................................
Filing of, with recorder.........................................................................
Commissioners, District of Columbia:
Authority to grant charters to loan, etc., companies...................
Comptroller of the Currency:
Examinations of savings banks b y ....................................................
Savinas banks, etc., to report to........................................................
Super vision by, of banking institutions in District of Colum­
bia.............................................................................................................
Corporations, formation of, under code....................................................
Body corporate, when............................................................................
Hooks, inspection of...............................................................................
Business in which may engage...........................................................
Business, kinds of, prohibited..........................................................
Bv-laws, made bv trustees...................................................................
Capital stock, changes of.......................................................................
Certificate of incorporation, what to state......................................
Dividends........................................................................................
Loans on own stock prohibited...........................................................
Officers, election of.................................................................................
Reports, annual, etc...............................................................................
Stock of other companies not to be bought....................................
Stock, payment of installments.........................................................
Stockholders, liability of.......................................................................
Trustees, election of, etc.......................................................................
Vote necessary to change capital or business.................................
Executors, etc.:
Loan, trust, etc., companies, as.........................................................
i
Foreign banking institutions:
Reports and examinations of............................................................... :
Loan, trust, mortgage, etc., companies:
Annual reports..........................................................................................
Bonds, requirement........................................................................
By-laws.......................................................................................................
Capital stock..............................................................................................
Certified copy of certificate of incorporation of, evidence......... !
Commissioners of the District, powers of.........................................
Conversion of existing companies......................................................
Dividends...................................................................................................
Duration of charter.................................................................................
Executors, e tc ..........................................................................................
Increase of capital...................................................................................
Notice of application to commissioners...........................................
Oath required of trustee, etc...............................................................
Officers........................................................................................................




Page.

713

126

124
691
691, 691a 124, 125
605

118

717
719 !
j

128
128

717 1

128

714
713 :
i

127
126

i

713 |
126
118
605
607
119
123
631
118
605 1
1J8
605
612
120
123
633
118
606
622,623
121
121
621
120
611
12 L
617,619
121
620
120
613, 616
6L5, 626 120,122
119
608,610
124
639
722

130

7 1 3

126

133
730
745,746 135,136
' 134
738
132,
728,
735, 743 134,135
744
135
128
717
131
725
739, 740
135
132
727
722,742 130,135
135
743
128
718
723
131
134
737
171

172

IN D E X TO CODE OP T H E DISTRICT OF C O L U M B IA .

'
Loan, trust, mortgage, etc., companies— Continued.
Organization..............................................................................................
Penalty for false swearing, misappropriations, etc.......................
Purposes for which formed...................................................................
Real estate investments.........................................................................
Recording charter with recorder of deeds.......................................
Reports to be made to comptroller....................................................
Shares of capital stock............................................................................ !
Security to be given by, when........................................................... |
Special powers..........................................................................................
State corporations doing business in District to comply with
conditions of..........................................................................................
Stockholders’ liability...........................................................................
Trustee, executor, etc............................................................................
Trustees’ liability....................................................................................
Organization:
General corporations m District of Columbia.................................
Loan, trust, etc., companies................................................................
Powers:
Commissioners of the District of Columbia.....................................
Loan, trust, etc., companies................................................................
Recorder of deeds:
Certificates of incorporation to be filed with..................................
Savings banks:
Banking institutions, including, to make reports and submit
to examinations....................................................................................
Expenses of examinations.....................................................................
Insolvent, comptroller to take possession cf...................................
Organized under code, subject to supervision of Comptroller
of the Currency.....................................................................................
Publication of reports from...................................................................




Section.

Page.

715,716 127,128
133
732
715
127
726
132
719
128
720
129
132
729
745,746 135.136
721
129
725, 747 131.136
734
134
722
130
731
133
605
715

118
127

717
721

128
129

605, 719 118,128

713
714
713

126
127
126

713
713

126
126

INDEX TO SECTIONS OF REVISED STATUTES.
i
Page.

!,

Section.

e.

Section.

Page.

i

Section.

i

9
9
9
io
10
io

i ' 3701
I 1 3847
' i 4046

;; 5133
1 5134
! 5135
I 5136
11 i! 5137
11 j ! 5138
U i ! 5139
81 ! 5140
■
81 i ' 5141
81 1 5142
82 |: ! 5143
82 ! j 5144
:
82 1! 5145
8 3 : | 5146
83 !1 5147
83 !i 5148
83 ;1 5149
84 . 5150
84 | 515 L
84 1 5152
86 | 5153
86 | 5154
86 !! 5155
86 5156
87 !! 5157
87 I 5158
87 i 5159
87 ' 5160
88 ' 5161
25 ! 5162
25 j 5163
25 , 5164
25 : 5165
25 5166
25 | 5167
25 5168
2o j 5169
25 j 5170
25 ! 5171

11




85
88
89
14
14
14
14
20
20
20
21
21
22
22
22
23
23
23
23
23
24
24
24
25
26
26
27
29
29
29
30
31
31
31
31
32
32
32
35
35
36
36

5172
5173
5174
5175
5176
5177
5178
5179
5180
5181
1
5182
5183
5184
5185
5186
5187
5188
5189
5190........
5191
5192
5193
5194
5195
5196
5197
5198
5199........
5200
5201
5202
5203
5204 .
5205
5206
5207
5208
5209
52 JO
5211
5212
5213

37
38
38
39
39
39
39
39
39
39
39
40
40
40
41
41
42
42
52
52
53
56
56
56
58
58
58
59
59
59
59
60
60
60
61
61
62
62
63
64
64
64

; 5214
i 5215

5216
5217
5218
5219
5220
i 5221
5222
5223
5224
5225
5226
5227
5228
1 5229.
5230
1 5231
! 5232
5233
5234
5235
5236
5237
5238
5239
5240
5241
5242
5243
5413
5414
5415
5430
5431
5432
5433
5434
5437
5488
5497

65
66

66
66
66
67
68

68
69
69
69
70
70
71
71
71
72
72
72
72
72
73
73
74
74
78
79
80
80
80
91
91
91
91
92
93
93
93
93
90
90

OF CODE OF THE DISTRICT OF
Section.

118
118
119
119
119
119
120
120
120
120
120
120
121
121
121
121
121
121
121




624.
625.
626.
627.
628.
629.
630.
631.
632.
633.
634.
635.
636.
637.
638.
639.
640.
691.
691a

Section.

Page.

122
122
122

122
122
122

123
123
123
123
123
123
123
124
124
124
124
124
125

O

713
714
715
716
717
718
719
720
721
722
723
724
725
726
727
728
729
730
731

Page.

126
127
127
128
128
128
128
129
129
130
131
131
131
132
132
132
132
133
133

L lx *

Section.

732.
733.
734.
735.
736.
737.
738.
739.
740.
741.
742.
743.
744.
745.
746.
747.
748.

133
133
134
134
134
134
134
135
135
135
135
135
135
135
136
136
136