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Bank Laws 
 
 Bank Act of California. 
 PubKc Deposit Acts of California. 
 National Bank Act as Amended. 
 Currency Act of March 14, 1900. 
 Additional Circulation Act. 
 New York Savings Bank Law. 
 
 
 
 COMPILED BY 
 
 ' 
 
 
 N. 
 
 W. 
 
 Halsey 
 
 & Company, 
 
 Bankers 
 
 
 
 SAN 
 
 FRANCISCO 
 1909 
 
 
 
 Of THi 
 

 COPYRIGHTED 1909 
 
 N. W. HALSEY & COMPANY 
 
 BANKERS 
 
 424 CAUFORNIA STREET 
 San Frandico, California 
 
 Bolte & Braden Company 
 
 'Prinien 
 
 San Francisco, California 
 
 1909 
 
Pref 
 
 rerace 
 
 The purpose of this volume is to give in compact and conven- 
 ient form the Statutes, both National and State, which affect the 
 bond holdings of California banks. We therefore present the 
 Bank Act, passed at the 1 909 Session of the California Legislature, 
 which applies to Commercial Banks, Savings Banks and Trust Com- 
 panies doing business in the State, and the National Bank Act, as 
 amended to date, which governs the operations of National Banks. 
 In order to add to the reference value of the book, we have care- 
 fully annotated these Statutes and have had the parts of the law 
 referring specifically to bonds printed in black-faced type. 
 
 In addition to these two fundamental Statutes, we include the 
 slate laws governing the deposit of public moneys in California 
 Banks and the so-called National Emergency Currency Law, passed 
 by the sixtieth Congress. The effect of the two latter laws has 
 unquestionably been to materially add to the value of Public Bonds, 
 State and Municipal, as a reserve holding for Banks. A Congres- 
 sional Commission has been engaged for several months in the 
 preparation of a bill aimed to establish the banking and currency 
 system of the country on a more scientific and permanently satis- 
 factory basis. It is therefore improbable that the Emergency Cur- 
 rency Law, in its present form, will remain permanently on the 
 Statute Books. It is believed, however, that the principle of the 
 Public Deposit Laws in California is sound and that these laws, 
 permitting the deposit of Public Moneys in banks against the pledge 
 of Public Bonds, will remain a part of the permanent policy of the 
 State. 
 
 We also give an extract from the New York Savings Bank 
 Law, defining the character of bonds which may be purchased and 
 held by the Savings Banks in that State, which operate exclusively 
 
 181444 
 
on a mutual basis. Our reason for including this extract is twofold: 
 In the first place, the New York Savings Bank Law is generally 
 recognized as a model of its kind, particularly with reference to its 
 limitations on bonds legal for trust fund investment, and it is there- 
 fore reasonable to expect a development of the California Savings 
 Bank Law along the lines established by the New York Statute as 
 the development of the State justifies the adoption of Eastern stand- 
 ards. In the second place, the prestige and additional market 
 standing attaching to a bond which satisfies the limitations of the 
 New York Savings Bank Law is such as to make the question as to 
 whether or not securities conform to this law of interest to bankers 
 in other States. 
 
 This compilation has been made by our Statistical Department, 
 which aims to keep on file, available for the inspection of bankers 
 and other investors, complete official data relative to banking and 
 investment matters, including information relative to the regulations 
 of the National Treasury Department, the State Treasurer's office, 
 and the Banking Department of California, together with copies of 
 all forms incident to dealing with these offices; also official statistics 
 to the property and earnings of railroad and other quasi-public cor- 
 porations, the assessed valuation and other essential particulars relative 
 
 to municipal securities. 
 
 N. W. Halsey & Company. 
 
 March 22. 1909. 
 
Contents 
 
 Bank Act of California 9 
 
 Public Deposit Acts of California 57 
 
 National Bank Act as Amended 65 
 
 Currency Act of March 14, 1900 151 
 
 Additional Circulation Act 161 
 
 New York Savings Bank Law 1 75 
 
 General Index 183 
 
Bank Ad of California. 
 
 An Act to Define and Regulate 
 THE Business of Banking. 
 
 The people of the State of California, represented in senate and 
 assembly, do enact as follows: 
 
 Article I. 
 GENERAL PROVISIONS. 
 
 Section 1. This act shall be known as the "Bank Act," and Title of act. 
 shall be applicable to all corporations and individuals specified in 
 the next section. 
 
 Sec. 2. The word "bank" as used in this act includes every Definition of 
 person, firm, company, copartnership or corporation which conducts "bank" 
 the business of receiving money on deposit. Banks are divided into 
 the following classes: 
 
 (a) Savings banks; Kinds of banks. 
 
 (b) Commercial banks; and 
 
 (c) Trust companies. 
 
 Sec. 3. Corporations may be formed under the laws of this Formation of 
 state to conduct, as provided in this act, and not otherwise, any one ^an^s. 
 or all of the businesses mentioned in divisions a, b and c of section 
 2, of this act. 
 
 Sec. 4. The term "savings bank," when used in this act, means Savings banks. 
 a bank organized for the purpose of accumulating and loaning the 
 funds of its members, stockholders, and depositors, and which may 
 loan and invest the funds thereof, receive deposits of money; loan, 
 invest and collect the same with interest; and may repay depositors 
 with or without interest, and having power to invest said funds 
 in such property, securities and obligations as may be prescribed 
 by this act ; and to declare and pay dividends on its general deposits, 
 and a stipulated rate of interest on deposits made for a stated period 
 or upon special terms. 
 
10 
 
 N. W. HALSEY & CO. 
 
 Commercial Sec. 5. The term "commercial bank," when used in this act, 
 banks, means any bank authorized by law to receive deposits of money, 
 deal in commercial paper or to make loans thereon, and to lend 
 money on real or personal property, and to discount bills, notes, or 
 other commercial paper, and to buy and sell securities, gold and 
 silver bullion, or foreign coins or bills of exchange. 
 
 Yrust Sec. 6. The term "trust company," when used in this act, 
 companies, means any company which is incorporated for the purpose of con- 
 ducting the business of acting as executor, administrator, guardian of 
 estates, assignee, receiver, depositary, or trustee. 
 
 Foreign Sec. 7. No foreign corporation shall transact a banking busi- 
 corporations. ness in this state without first complying with all the requirements of 
 the laws of this state relative to banks as defined in this act, and 
 without havmg the capital paid up in this state as required by this 
 act. And no such foreign corporation shall transact any banking 
 business in this state until it has executed and filed with the superin- 
 tendent of banks a written instrument appointing such superintendent, 
 or his successor in office, its true and lawful attorney, upon whom all 
 process in any action or proceeding by any resident of the state 
 against it may be served, with the same effect as if such corporation 
 was formed under the laws of this state and had been law- 
 fully served with process therein. Service in favor of a resident of 
 this state upon such attorney shall be deemed personal service on 
 such corporation. The superintendent of banks shall forthwith for- 
 ward by mail a copy of every process served upon him under the 
 provision of this section, postage prepaid, and directed to the secre- 
 tary of such corporation, at its last known post office address. For 
 each copy of process, the superintendent of banks shall collect the 
 sum of two dollars, which shall be paid by the plaintiff or moving 
 party at the time of such service, to be recovered by him as part of 
 . * his taxable costs if he succeed in the suit or proceeding. 
 
 Filing articles of ^EC. 8. Every corporation, at the time it applies for a certificate 
 incorporation to do a banking business, must file with the superintendent of banks 
 
 and amendments, a certified copy of its articles of incorporation, or of the statute 
 chartering such corporation, also all instruments amending or altering 
 such articles of incorporation or charter. Thereafter all amendments 
 and certificates shall hkewise be so filed before such instruments take 
 
BANK ACT OF CALIFORNIA 11 
 
 effect. In like manner all copartnerships shall file certified copies of 
 their articles of copartnership and all amendments thereto. 
 
 Sec. 9. No bank in this state, or any officer or director thereof. Branch banks. 
 shall hereafter open or keep an office other than its principal place of 
 business, without first having obtained the written approval of the 
 superintendent of banks to the opening of such branch office, which 
 written approval may be given or withheld in his discretion, and 
 shall not be given by him until he has ascertained to his satisfaction 
 that the public convenience and advantage will be promoted by the 
 opening of such branch office; and, provided further, that no bank 
 or any officer or director thereof, shall open or maintain such branch 
 unless the capital of such bank, actually paid in cash, shall exceed 
 the amount required by this act by the sum of twenty-five thousand 
 dollars for each branch office opened and maintained. Every bank, 
 and every such officer or director violating the provisions of this sec- 
 tion shall be guilty of a misdemeanor. 
 
 Sec. 1 0. No person shall be eligible for election as a director EUgihilii^ of 
 of a bank unless he is a stockholder of the bank, owning, in his own directors. 
 right, shares thereof of the actual market value of at least five hun- 
 dred dollars; and every person elected to be director who, after 
 such election, shall cease to be the owner in his own right of the 
 amount of stock aforesaid, shall then cease to be a director of the 
 bank, and his office shall then become vacant. If a bank be 
 organized without capital stock, no person shall be eligible as a 
 director thereof unless he .•is both a member and a depositor of such 
 bank. 
 
 Sec. 1 1 . Each director of a bank, when appointed or elected. Directors* oath. 
 shall take an oath that he will, so far as the duty devolves on him, 
 diligently and honestly administer the affairs of such bank, and will 
 not knowingly violate or wilfully permit to be violated any of the 
 provisions of law applicable to such bank, and that he is the owner 
 in good faith and in his own right of the shares of stock of the 
 actual market value required by section 1 of this act, subscribed by 
 him or standing in his name on the books of the bank, and that the 
 same is not hypothecated or in any way pledged as security for any 
 loan or debt; and, in case of re-election or re-appointment, that such 
 
12 N. W. HALSEY & CO. 
 
 stock was not hypothecated or in any way pledged as security for 
 any loan or debt during his previous term. Such oath shall be 
 subscribed by the director making it, and certified by the officer 
 before whom it is taken; and shall be immediately transmitted to 
 the superintendent of banks, and filed and preserved in his office. 
 
 Use of words Sec. 12. No person, firm, company, co-partnership or corpora- 
 
 indicating lion not subject to the supervision of the superintendent of banks, 
 
 performance of gjjj j^^j required to report to him by the provisions of this act, shall 
 
 banking business. , r a: • i»li l ll- 
 
 •■ make use or any omce sign, at the place wriere sucii business is 
 
 transacted, having thereon any artificial or corporate name, or other 
 words indicating that such place or office is the place or office of a 
 bank, or that deposits are received there or payments made on check, 
 or any other form of banking business transacted, nor shall such 
 person or persons, firm, company, co-partnership or corporation make 
 use of or circulate any letter heads, billheads, blank notes, blank 
 receipts, certificates or circulars, or any written or printed, or partly 
 written and partly printed, paper whatever, having thereon any arti- 
 ficial or corporate name or other word or words indicating that such 
 business is the business of a bank, savings bank or trust company. 
 Every person, firm, company, co-partnership or officer of a corpora- 
 tion violating the provisions of this section shall be guilty of a 
 misdemeanor. 
 
 Private hanliers. Sec. 1 3. Every person or number of persons, not being incorpo- 
 rated, engaged in the business of banking or publicly receiving money 
 on deposits, must conduct such business under a name which shows 
 the true name of all persons engaged therein, unless such person or 
 persons have complied with the provisions of article 7, of chapter II, 
 of title 1 0, of part IV of division 3 of the Civil Code. 
 
 Advertising Sec. 14. No bank, or any officer thereof, shall advertise in any 
 statement of manner, or publish any statement of the capital authorized or sub- 
 capitaL. scribed, unless it or he advertise and publish, in connection therewith, 
 the amount of capital actually paid up. Any bank, or any officer 
 thereof, advertising in any manner, or publishing any statement of 
 such capital, authorized or subscribed, without a statement in connec- 
 tion therewith of the capital actually paid up, shall be guilty of a 
 misdemeanor. 
 
BANK ACT OF CALIFORNIA 13 
 
 Sec. 15. The president or managing officer of every bank must. Report of 
 within fifteen days after the first day of January of every odd num- deceased or 
 bered year, return to the superintendent of banks a sworn statement . ■. 
 showing the names of depositors known to be dead, or who have not 
 made further deposits, or withdrawn any moneys during the preced- 
 ing ten years. Such statements shall show the amount of the account, 
 the depositor's last known place of residence or post office address, 
 and the fact of death, if known to such president or managing 
 officer. Such president or managing officer must give notice of these 
 deposits in one or more newspapers published in or nearest to the 
 town or city where such bank has its principal place of business, at 
 least once a week for four consecutive weeks, the cost of such publi- 
 cation to be paid pro rata out of such unclaimed deposits. This 
 section does not apply to any deposit made by or in the name of a 
 person known to the president or managing officer to be living, or 
 which, with the accumulation thereon, is less than fifty dollars. 
 The superintendent of banks must incorporate in his subsequent 
 report such returns made to him as provided in this section. Any 
 president or managing officer of any bank who neglects or refuses to 
 make the sworn statement required by this section shall be guilty of 
 a misdemeanor. 
 
 Sec. 1 6. When any deposit with a bank shall be made by or Deposits in name 
 
 in the name of any married woman or minor, the same shall be held '^^ ^ mamea 
 ,, .... iirrii- irr Woman or mmor. 
 
 ■tor the exclusive right and benefit or such depositor, and tree trom 
 
 the control or lien of all other persons, except creditors, and shall 
 
 be paid, together with the dividends, if any, and interest, if any, 
 
 thereon to the person in whose name deposits shall have been 
 
 made, and the receipt or acquittance of such minor shall be a valid 
 
 and sufficient release and discharge for such deposit, or any part 
 
 thereof, to the bank. When any deposit with a bank shall be made 
 
 by any person in trust for another, and no other or further notice of '" trust. 
 
 the existence and terms of a legal and valid trust shall have been 
 
 given in writing to such bank, in the event of the death of the 
 
 trustee, the same or any part thereof, together with the dividends or 
 
 interest, if any, thereon, may be paid to the person for whom the 
 
 deposit was made. When a deposit with a bank shall be made by 
 
 any person in the names of such depositor and another person or Joint accounts. 
 
14 N. W. HALSEY & CO. 
 
 persons, and in form to be paid to either or the survivor or survivors 
 of them, such deposit thereupon, and any additions thereto made by 
 either of such persons upon the making thereof, shall become the 
 property of such persons as joint tenants, and the same, together 
 with ail interest thereon, shall be held for the exclusive use of the 
 persons so named, and may be paid to either during the Hfetime of 
 all or any or to the survivor or survivors after the death of one or 
 more of them, and such payments and the receipt or acquittance of 
 the one to whom such payment is made shall be a valid and suffi- 
 cient release and discharge to said bank for all payments made on 
 account of such deposit. 
 Payment of The surviving husband or wife of any deceased person, or, if no 
 deposits of husband or wife is living, then the children of such decedent, and if 
 deceased persons jjq children are living, then the father or mother of such decedent, 
 10. ujj^y^ without procuring letters of administration, collect of any bank 
 any sum which said deceased may have left on deposit in such bank 
 at the time of his or her death; provided, such deposit shall not 
 exceed the sum of five hundred dollars. Any bank, upon receiving 
 an affidavit stating that said depositor is dead, and that affiant is the 
 survivmg husband or wife, as the case may be, or stating that 
 decedent left no husband or wife, and that affiant is, or affiants are, 
 the children, or the father or mother, of said decedent, and that the 
 whole amount that decedent left on deposit in any and all banks of 
 deposit in this state does not exceed the sum of five hundred dollars, 
 may pay to said affiant or affiants any deposit of said decedent, if 
 the same does not exceed the sum of five hundred dollars, and the 
 receipt of such affiant is sufficient acquittance therefor. 
 
 Information to be Sec. 1 7. Every bank now in existence or hereafter organized 
 
 liept on file for ^\^q\\ jrgep in its offices, in a place accessible to the stockholders, 
 
 s oc/f ers. jgpQgjtQyg, and creditors thereof, and for their use, a book containing 
 
 a list of stockholders in such corporation, and the number of shares 
 
 of stock held by each; and every such bank shall keep posted in its 
 
 Information for office, m a conspicuous place, accessible to the public generally, a 
 
 the public, notice signed by the president or secretary, showing: 
 
 1. The names of the directors of such bank. 
 
 2. The number and the par value of the shares of stock held by 
 each director. 
 
BANK ACT OF CALIFORNIA 
 
 15 
 
 The entries on such book and such notice shall be made and 
 posted within twenty-four hours after any transfer of stock, and 
 shall be prima facie evidence against each director and stockholder 
 of the number of shares of stock held by each. 
 
 Sec. 18. Every co-partnership doing a banking business shall Co-partnership. 
 keep in its oHice, in a place accessible to the partners and depositors 
 and the creditors thereof, a list of the partners and the capital paid 
 into the co-partnership of each partner. 
 
 Sec. 19. The aggregate of paid up capital, together with the r?e/a/,'on of 
 surplus, of every bank, must equal ten per centum of its deposit paid-up capital 
 liabilities; such deposit liabilities shall not be increased when such to deposit 
 proportion of paid up capital and surplus is wanting, and in no event tic^bilittes. 
 shall said paid up capital be less than the minimum paid up capital 
 provided by this act. And, provided also, that no savings bank 
 shall be required to have a paid up capital and surplus of more than 
 one million dollars or if organized without a capital stock, a reserve 
 fund of more than one million dollars. 
 
 Sec. 20. Every bank, other than a savings bank, shall at all Lawful monej; 
 limes have on hand, in lawful money of the United States, gold and reserve, 
 silver coin, gold certificates or silver certificates, an amount equal to 
 fifteen per centum of the aggregate amount of its deposits, exclusive 
 of state, county and municipal deposits. The amount thus to be 
 kept on hand shall be called its lawful money reserve. Three-fifths 
 of such lawful money reserve of any bank other than a savings bank 
 may consist of moneys on deposit subject to call with any bank or 
 banks other than a savings bank in this state; provided, that every 
 bank receiving deposits of other banks shall maintain as a 
 lawful money reserve at least twenty per centum of the aggregate 
 smount of its deposits, exclusive of state, county and municipal 
 deposits. If the lawful money reserve of any bank shall be less 
 than the amount required by this section, such bank shall not increase 
 its liability by making any new loans or discounts, otherwise than by 
 discounting bills of exchange payable on sight, or making any 
 dividends from profits until the full amount of its lawful money 
 reserve has been restored. The superintendent of banks may notify 
 any bank, whose lawful money reserve shall be below the amount 
 
J_6 N. W. HALSEY & CO. 
 
 herein required, to make good such reserve; and, if it shall fail for 
 thirty days thereafter to make good such reserve, such bank shall be 
 deemed insolvent and may be proceeded against under the provisions 
 of this act. 
 
 Dividends. Sec. 21. The directors of banks having a capital stock may, 
 at such times and in such manner as the by-laws prescribe, declare 
 and pay dividends to depositors and stockholders of so much of the 
 profits of the bank, and of the interest arising from the capital and 
 deposits, as may be appropriated for that purpose under the by-laws 
 or under their agreements with depositors, but every such bank shall, 
 before the declaration of such dividend, carry at least one-tenth 
 (1-10) part of the net profits of the stockholders for the preceding 
 half year to its surplus or reserve fund until the same shall amount to 
 twenty-five per centum of its paid-up capital stock. But the whole 
 or any part of such surplus or reserve fund, if held as the exclusive 
 property of stockholders, may at any time be converted into paid-up 
 capital stock, in which event such surplus or reserve fund shall be 
 restored in manner as above provided until it amounts to twenty-five 
 per centum of the aggregate paid-up capital stock. A larger surplus 
 or reserve fund may be created, and nothing herein contained shall 
 be construed as prohibitory thereof. The capital and the assets of 
 the bank are a security to depositors and stockholders, depositors 
 having the priority of security over the stockholders, but the by-laws 
 may provide that the same security shall extend to deposits made by 
 stockholders. 
 
 Department Sec. 22. Any corporation authorized by its articles of incor- 
 banl(s. poration so to do, may combine the business of a commercial bank 
 and savings bank and trust company, or any or all of them. 
 
 Paid-up capital Sec. 23. Every bank doing a departmental business, shall have 
 required, paid up in cash a capital stock of not less than twenty-five thousand 
 dollars if it transacts both a commercial and savings business; and 
 paid up in cash a capital stock of not less than two hundred twenty- 
 five thousand dollars if it transacts both a commercial and trust busi- 
 ness; and paid up in cash a capital stock of not less than two hun- 
 dred twenty-five thousand dollars if it transacts both a savings and 
 trust business; and paid up in cash a capital stock of not less than 
 
BANK ACT OF CALIFORNIA 17 
 
 two hundred twenty-five thousand dollars if it transacts a com- 
 mercial, savings and trust business. Such capital stock shall be 
 increased from time to time in the same manner and to the same 
 extent as provided for in section nineteen of this act. 
 
 Sec. 24. Every bank, before it commences to do business or Certificate of the 
 before it opens a new department and commences to transact busi- Superintendeni 
 ness in or under such new department, shall obtain the certificate of ^' banlis. 
 the superintendent of banks for the opening of each of the depart- 
 ments specified. Each certificate herein provided for shall be given 
 when the superintendent shall, by the examination required by this 
 act, have satisfied himself that the proper amount of cash has been 
 paid in as capital and the provisions of this act complied with. The 
 applicant shall pay for such certificate a fee of fifty dollars. 
 
 Sec. 25. Every bank shall maintain for each department a Lawful money 
 
 lawful money reserve equal in amount to that required by this act ^^^^^^ required 
 
 for the respective business conducted, and shall keep separate and , 
 v-iifi r , rir department. 
 
 distinct the lawrul money reserve or any department from that of 
 
 any other department; and all deposits made with other banks, ^^'a/ions of 
 
 whether temporary or otherwise, shall be assets of the respective ^'^^'^ ments. 
 
 departments by which they were made, and shall be so carried on 
 
 the books of such other banks, and shall be repaid only upon the 
 
 order of the department to whose credit they stand. 
 
 No department shall receive deposits of any other department of Deposits. 
 
 the same corporation; provided, however, that any bank having 
 
 departments shall have the right to sell and transfer any 
 
 bonds, securities or loans from one department to another upon 
 
 receipt of the actual value thereof, if such bonds, securities or loans 
 
 are a legal investment for the department purchasing the 
 
 same under the provisions of this act. 
 
 Sec. 26. Every bank having different departments shall keep Separate books. 
 separate books of account for each department of its business, and 
 shall be governed as to all deposits, reserves, investments and trans- 
 actions relating to each department by the provisions in this act 
 specifically provided for the respective kind of business. 
 
 It shall keep all investments relating to the savings department Separate 
 entirely separate and apart from the investments of its other depart- '"^es/men/s. 
 ment or departments. 
 
]S N. W. HALSEY & CO. 
 
 Separate, cash Every bank shall conduct the business of all its departments in 
 
 securities and ^j^g building, or in adjoining buildings, and shall keep entirely 
 
 separate and apart in each department the cash, securities and prop- 
 
 Assets of each erty belonging to such department, and shall not mingle the cash, 
 
 department, securities and property of one department with that of another. 
 
 Sec. 27. All money belonging to each department, whether 
 cash on hand or with other banks, and the investments made, shall 
 be held solely for the repayment of the depositors in said department, 
 until all depositors of such department shall have been paid, and the 
 overplus then remaining shall be applied to the other liabilities of 
 such bank. 
 
 Kind of banking Sec. 28. Every individual, firm or corporation doing a banking 
 
 business business in this state must, on all its window-signs and in advertising, 
 
 iransac e mus ^^j ^^ letterheads and other stationery on which its business is trans- 
 be advertised. . . , .. • „ .f . , ... 
 
 acted, use the word savmgs ir it conducts a savmgs busmess, or 
 
 the word "trust" if it conducts a trust department, and the word 
 
 "commercial" if it conducts a commercial department. 
 
 Steps necessary to Sec. 29. Every corporation heretofore created under the laws 
 
 convert a banking ©f this state, doing a banking business therein, and which has no 
 
 . , (corporation (.^pitaj stock, may elect to have a capital stock, and may issue 
 "Without capital ... r i i r • i 
 
 stoch into a stoch certificates or stock therefor, in the same manner as corporations 
 
 corporation, formed under the provisions of part IV, title 1, chapter I, article I, 
 of the Civil Code, relating to the formation of corporations; pro- 
 vided, that no such corporation shall use or convert any moneys or 
 funds theretofore belonging to it, or under its control, into capital 
 stock; but such funds or moneys must be held and managed only 
 for the purposes and in the manner for which they were created. 
 Before such change is made, a majority of the members of such 
 corporation present at a meeting called for the purpose of consider- 
 ing the proposition whether it is best to have a capital stock, its 
 amount, and the number of shares into which it shall be divided, 
 must vote in favor of having a capital stock, fix the amount thereof, 
 and the number of shares into which it shall be divided. Notice of 
 the time and place of holding such meeting, and its object, must be 
 given by the president of such corporation by mailing notice of such 
 meeting to each member of such corporation at his last known post 
 
BANK ACT OF CALIFORNIA 19 
 
 office address at least ten days prior to the day fixed for such meet- 
 ing, and by publication in some newspaper printed and published in 
 the county, or city and county, in which the principal place of busi- 
 ness of the corporation is situated, at least once a week for three 
 successive weeks prior to the holding of the meeting. A copy of 
 the proceedings of this meeting, giving the number of persons present, 
 the votes taken, the notice calling the meeting, the proof of its publi- 
 cation, the amount of capital actually subscribed, and by whom, all 
 duly certified by the president and secretary of the corporation, 
 must be filed in the office of the secretary of state and clerk of the 
 county where the articles of incorporation are filed. Thereafter 
 such corporation is possessed of all the rights and powers, and is 
 subject to all the obligations, restrictions, and limitations, as if it had 
 been originally created with a capital stock. 
 
 Sec. 30. Any bank may conduct a safe deposit department. Safe deposit 
 but shall not invest more than one-tenth of its capital and surplus in department. 
 such safe deposit department 
 
 Sec. 31. Any bank may sell the whole or any portion of its ^^/g qj. purchase 
 assets to any other bank which may purchase its assets after obtain- of assets of banks. 
 ing the consent of the stockholders of the selling and of the purch- 
 asing bank holding of record at least two-thirds of the issued capital 
 stock of each of such corporations; such consent to be expressed 
 either in writing executed and acknowledged by such stockholders 
 and attached to the instrument of sale, or to a copy thereof, or by 
 vote at a stockholders' meeting of such banks called for that 
 purpose. 
 
 The selling and purchasing banks may for such purposes enter Agreement of sale 
 into an agreement of sale and purchase, which agreement shall con- and purchase. 
 tain all the terms and conditions connected with the sale and pur- 
 chase of its assets. 
 
 Such agreement shall contain proper provision for the payment of Provisions of 
 liabilities of the selling bank, and in this particular shall be subject agreement. 
 to the approval of the superintendent of banks; and shall not be 
 valid until such approval is obtained. Such agreement may contain 
 provisions for the transfer of all deposits to the purchasing bank, sub- 
 ject, however, to the right of every depositor of the selling bank to 
 
20 N. W. HALSEY & CO. 
 
 withdraw his deposit in full on demand after such transfer, irrespec- 
 tive of the terms under which it was deposited with the selling bank. 
 
 Trusl funds must Sec. 32. Any bank receiving trust funds in accordance with the 
 be Itept separate, provisions of this act relating to trust companies must not mingle 
 such trust funds with the other assets of the corporation, and such 
 funds shall not be carried or counted as any part of the lawful reserve 
 provided for in this act. The officers of any bank who knowingly 
 violate or consent to the violation of this provision shall be guilty of 
 a felony. 
 
 No official or Sec. 33. No officer or employee of any bank shall, directly or 
 empLo^ee oj a indirectly, for himself or as the partner or agent of others, borrow 
 I r any of the deposits or other funds of such bank, nor shall he nor 
 
 that bank' ^^^ director become an endorser or surety for loans to others nor in 
 any manner be obligor for moneys borrowed or loaned by such 
 bank. The office of any officer or employee who acts in contraven- 
 tion of the provisions of this section shall immediately become vacant, 
 and he shall be guilty of a misdemeanor. 
 
 I\o oan/p ma)} Sec. 34. No bank shall purchase or invest its capital or money 
 
 inves in or oan ^^ jj^ depositors, or any part of either, in the shares of its own 
 
 on snares of its • i i i • • i i r • i • 
 
 oiun cabiial stock *^^P'*''^ stock; nor loan its capital or the money or its depositors, or 
 
 any part of either, on the shares of its own capital stock, unless such 
 purchase or loan shall be necessary to prevent loss on debts pre- 
 viously contracted in good faith. 
 
 Stock thus purchased or carried shall, within six months from the 
 time of its purchase, be sold or disposed of at public or private sale. 
 
 The officers of any bank who knowingly violate or consent to the 
 violation of this provision shall be guilty of a felony. 
 
 Transactions Sec. 35. No director, or officer, or employee, or controlling 
 
 between a banti stockholder of any bank shall, directly or indirectly, for himself or 
 
 /r ' as the partner or agent of others, sell or transfer, or cause to be sold 
 
 officers or 
 
 emploVees. °^ transferred to the bank of which he is a director, officer, 
 employee, or controlling stockholder, any mortgage on real estate or 
 contract arising from the sale of real estate made by any corporation 
 or syndicate in which such director or officer, or employee, or con- 
 trolling stockholder is personally or financially interested, without the 
 consent in writing of the superintendent of banks. 
 
BANK ACT OF CALIFORNIA 21 
 
 Any director, or officer, or employee, or controlling stockholder 
 of any bank who knowingly violates or consents to the violation of 
 this provision shall be deemed guilty of a felony. 
 
 Sec. 36. No bank receiving deposits of money shall Limitation of 
 purchase, agree to purchase, underwrite or guarantee any i>ond underwriting 
 bond issue in excess of five per centum of its assets, except °^ giiarantee. 
 bonds of the United States, of the State of California, of 
 the cities, cities and counties, counties or school districts 
 of this state. 
 
 Sec. 37. No bank shall purchase, or invest its capital or money Investment in 
 of its depositors, or any part of either, in shares of corporations, stocks prohibited. 
 unless such purchase shall be necessary to prevent loss on debts 
 previously contracted in good faith, and stock thus purchased or 
 carried shall, within six months from the time of its purchase, be 
 sold or disposed of at public or private sale, unless permission to 
 hold said stock for a longer period shall be obtained from the 
 superintendent of banks. 
 
 The officers of any bank who knowingly violate or consent to the 
 violation of this provision shall be deemed guilty of a felony. 
 
 Sec. 38. A director, officer, agent or employee of any bank False entries. 
 who. 
 
 First — Knowingly receives or possesses himself of any of its prop- 
 erty otherwise than in payment for a just demand, and with intent 
 to defraud, omits to make or to cause or direct to be made a full 
 and true entry thereof in its books and accounts; or. 
 
 Second — Concurs in omitting to make any material entry thereof; 
 or. 
 
 Third — Knowingly concurs in making or publishing any written 
 report, exhibit or statement of its affairs or pecuniary condition con- 
 taining any material statement which is false; or. 
 
 Fourth — Having the custody or control of its books, wilfully 
 refuses or neglects to make any proper entry in the books of such 
 corporation as required by law, or to exhibit or allow the same to 
 be inspected and extracts to be taken therefrom by the superintendent 
 of banks, his chief deputy or any of his examiners, shall be guilty 
 cf a felony. 
 
22 N. W. HALSEY & CO. 
 
 Overdrafts fep Sec. 39. Any officer, director, agent, teller, clerk or employee 
 
 persons connected ^f any bank who either. 
 
 jvith bank i— i^ . i 
 
 prohibited. ^^^^^ — Knowingly overdraws his account with such bank, and 
 
 thereby obtains the money, notes or funds of any such bank; and. 
 
 Commissions to Second — ^Asks or receives or consents or agrees to receive any 
 persons connected commissions, emoluments, gratuity or reward, or any money, prop- 
 
 ^ ,.,."? erty or thing of value or of personal advantage, for procuring or 
 prohibited. , . ^ , ^ . , 
 
 endeavormg to procure ror any person, hrm or corporation any loan 
 
 from, or the purchase or discount of any paper, note, draft, check 
 
 or bill of exchange, by such bank, or for permitting any person, firm 
 
 or corporation to overdraw any account with such bank, is guilty of 
 
 a felony. 
 
 / Stockholders' Sec. 40. No bank mentioned in this act shall make any con- 
 
 liabiht^ cannot tract with any of its depositors whereby the stockholders' liability 
 
 li'flivea. provided for by the constitution of this state is in any manner 
 
 waived, and if any such contract shall be so made, such contract 
 
 shall be void. 
 
 Purchase of Sec. 4 1 . No director, officer, agent, or servant of any bank 
 obligatiarns of ^hall, directly or indirectly, for his own personal benefit, purchase or 
 baniis p |tjg interested in the purchase of any of the obligations of said bank 
 ' f or a less sum than shall appear upon the face thereof. 
 
 Purchase of Sec. 42. No director, officer, agent, or servant of any bank 
 assets of bank shall, directly or indirectly, for his own personal benefit, purchase 
 oy directors, etc. ^^ ^^ interested in the purchase of any of the assets of said bank, 
 for a less sum than the current market value thereof. Every per- 
 son violating the provisions of this subdivision shall be guilty of a 
 misdemeanor. 
 
 Deposits with Sec. 43. No bank shall deposit any of its funds with any other 
 
 other banks rnust bank, unless such other bank has been designated as a depositary for 
 
 , ^,P" , ^"^'^^ , its funds by the vote of a majority of the directors or trustees of the 
 bjj disinterested ,,,.,,. i • r i r v 
 
 directors "^"^ making the deposit, exclusive ot the vote ot any director or 
 
 trustee who is an officer, director or trustee of the depositary so 
 
 designated. 
 Loans secured 
 
 b^ stocks of Sec. 44. No bank shall hereafter make a loan secured by the 
 
 other banks, stock of another bank, if by making such loan the total stock of such 
 
BANK ACT OF CALIFORNIA 23 
 
 other bank held by such loaning bank as collateral will exceed in 
 the aggregate ten per centum of the capital stock of such other bank; 
 provided that no loan upon the capital stock of any bank shall be 
 made unless such bank has been in existence for two or more years 
 and has earned and paid a dividend upon its capital stock. 
 
 Sec. 45. Interest unpaid, although due or accrued, on debts Unpaid interest. 
 owing to any bank, shall not be included in calculation of its profits 
 previous to a dividend. 
 
 Sec. 46. No bank shall invest or loan more than five j ;~,:yQ*;on q/ 
 per centum of its assets in any one bond issue, except jnvesi/nenf in 
 bonds of the United States, of the State of California, of bonds. 
 the counties, cities and counties, cities or school districts 
 of this state. 
 
 Sec. 47. No bank shall make any loan on real esate except it J^oans on real 
 be a first lien, but this provision shall not prevent the acceptance of estate must be 
 a second lien to secure the payment of a debt previously contracted first lien. 
 in good faith. 
 
 Sec. 48. Any national bank of this state receiving the deposits Examinations of 
 of banks organized and conducting business under this act, must, at national banks 
 the request of the superintendent of banks, submit to an examination receiving 
 by him, or his duly appointed examiners, should the superintendent ^^P°^^^ ^f 
 of banks in his discretion deem it necessary or desirable that such 
 examination be made; and the expense of such examination shall be 
 paid by such national bank; and if any such national bank shall 
 refuse to permit such examination to be made by the superintendent 
 of banks, then the superintendent of banks shall notify in writing any 
 and all banks depositing its funds with such national bank, to with- 
 draw its deposits therefrom, and such bank shall comply with such 
 order, and failure so to do shall be a misdemeanor. 
 
 Sec. 49. It shall not be lawful for any commercial bank, indi- q„/^ "savines 
 
 vidual banker, trust company, association, firm, stock company, or banks" ma}) 
 
 corporation, to advertise or put forth a sign as a savings bank, either solicit or receive 
 
 directly or indirectly, or in any way to solicit or receive deposits as savings deposits. 
 a savings bank, except in the case of savings banks or banks having 
 a savings department, subject to the provisions of this act. . 
 
24 N. W. HALSEY & CO. 
 
 Posting of Sec. 50. Every bank shall post in a conspicuous place in its 
 
 certificate, banking room the last certificate obtained from the superintendent of 
 
 banks, as provided for in section 127 of this act. Every bank that 
 
 fails to comply with the provisions of this section is guilty of a 
 
 misdemeanor. 
 
 Deposits b}) Sec 51. Any court having appointed and having jurisdiction 
 court officers of any executor, administrator, guardian, assignee, receiver, depos- 
 or trustees, jtary or trustee, upon the application of such executor, administrator, 
 guardian, assignee, receiver, depositary or trustee, or upon the appli- 
 cation of any person having an interest in the estate administered 
 upon by such officer or trustee, after notice to other parties in interest 
 as the court may direct, and after a hearing upon such application, 
 may authorize such officer or trustee to deposit any money then in 
 his hands as such officer or trustee or which may thereafter come 
 into his hands, and until the further order of the court, in any bank 
 organized under the laws of the State of California; and upon such 
 deposit being made, the officer or trustee so depositing the same shall 
 thereafter and while such moneys remain on deposit in such bank, 
 be relieved and discharged from all liability and responsibility 
 therefor, and the bond required of such officer or trustee given upon 
 his appointment shall be thereupon by said court reduced to such an 
 amount as the court may deem reasonable; such deposit shall be 
 repaid only upon the orders of said court, and shall be a preferred 
 claim against such bank and be paid in full before any other 
 depositor of such bank shall have been paid. 
 
 Article II. 
 SAVINGS BANKS. 
 
 Capital stock. ^^^' ^^* livery savings bank must have actually paid in a 
 capital stock of not less than twenty-five thousand dollars, or, if 
 organized without capital stock, a reserve fund of at least one million 
 dollars and until said sum of twenty-five thousand dollars, or said 
 sum of one million dollars, shall be actually paid in, the superin- 
 tendent of banks shall refuse to issue the certificate required by this 
 act; provided that nothing herein shall be construed to affect the 
 
BANK ACT OF CALIFORNIA 25 
 
 provisions of section twenty-three of this act relative to the capital Real and 
 
 stock required of banks doing a departmental business. personal 
 
 property) Hfhich 
 Sec. 6 1 . Savings banks may purchase, hold and convey real may; be purchased, 
 and personal property as follows: held or conve})ed. 
 
 1 . The lot and building in which the business of the bank is j^q^ ^^j building. 
 carried on; such lot and building shall not cost the savings bank an 
 
 amount exceeding its capital and surplus; and the authority of a 
 two-th»rds vote of a full board of directors shall be necessary to 
 authorize the purchase or construction thereof. 
 
 2. Such as may have been mortgaged, pledged, or conveyed to Property in trust. 
 it in trust for its benefit in good faith, for money loaned in pursuance 
 
 of the regular business of the corporation. 
 
 3. Such as may have been purchased at sales under pledges. Purchased 
 mortgages or deeds of trust made for its benefit for money so loaned, under pledges. 
 and such as may be conveyed to it by borrowers in satisfaction and 
 
 discharge of loans made thereon. 
 
 No savings bank shall purchase, hold or convey real estate in any Restrictions. 
 other case or for any other purpose; and all real estate described 
 in subdivision 3 of this section must be sold by the bank within ten 
 years after the title thereto is vested in it by purchase or otherwise, 
 unless permission to hold said real estate for a longer period be 
 given by the superintendent of banks in writing. Parcels of real 
 estate not sold within ten years, or extension of said period as above 
 provided, may be purchased by any persons or parties wanting 
 them, 8t the price to be determined by arbitration of three persons 
 appointed by the superior court as appraisers, at the request of the 
 would-be purchaser. 
 
 No savings bank shall purchase, own, or sell personal property, 
 except such as may be requisite for its immediate accommodation 
 for the convenient transaction of its business, and mortgages on real 
 estate, bonds, securities or evidences of indebtedness, public 
 or private gold and silver bullion and United States mint certifi- 
 cates of ascertained value, and evidences of debt issued by the 
 United States. 
 
 No savings bank shall purchase, hold or convey bonds. Bonds ivhich 
 securities or evidences of indebtedness, public or private, "^'^^ "^ " , , ^ 
 except as follows: a savings bank. 
 
26 N. W. HALSEY & CO. 
 
 United States (a) Bonds or interest-bearing notes or obligations of the 
 bonds. United States, or those for which the faith of the United 
 State of States is pledged for the payment of interest and principal. 
 California (^) go^^js o£ ^jjig gtate. 
 
 (c) Bonds of any state in the United States that have 
 
 s oj any jjQ^^ within five years previous to making such investment 
 
 by such bank, defaulted in the payment of any part of 
 
 either principal or interest thereof. 
 
 Municipal and (J) Bonds of any city, county, city and county, town, 
 
 school bonds township or school district of this state. 
 
 in California. y ^ ts -, r • ,.,,. , 
 
 (e) Bonds of any city, town or county which has m each 
 
 Municipal bonds ^ ^^ ^j^^ ^^^^ ^^ ^^^ investment, more than twenty 
 
 issued outside 
 of California thousand inhabitants, as ascertained by the United States 
 
 or state census made next preceding such investment, in 
 any of the states of the United States, other than in the 
 State of California, issued pursuant to the authority of any 
 law of such states; provided, the entire bonded indebted- 
 ness of such city or county or town shall not exceed five 
 per centum of the assessed value of the taxable property 
 therein, including the issue of bonds in which said invest- 
 ment is made as shown by the last assessment preceding 
 the investment; and provided, further, that such city, town 
 or county or state in which it is situated has not defaulted 
 in the payment of any part of either principal or interest 
 thereon within five years previous to making such 
 investment. 
 Railroad bonds. (/) First mortgage or underlying bonds of any steam 
 railway, the income of which is sufficient to pay all oper- 
 ating expenses and fixed charges, and which is completed 
 and operated, wholly or in part, in any of the states of the 
 United States. 
 Public service (§) Bonds of street railroads, water, light, light and 
 corporation and power, gas, and other public utility and industrial corpora- 
 industrtal bonds, ^ions. All bonds authorized for investment by this section 
 shall be secured by a mortgage or trust deed, which is, 
 at the time of making such investment, (1) a first or under- 
 lying mortgage or trust deed of the corporation issuing 
 
BANK ACT OF CALIFORNIA 27 
 
 said bonds, or (2) a refunding mortgage or trust deed used 
 to retire all prior lien mortgage debts of said corporation 
 outstanding at the time of making said investment; pro- 
 vided, that the income of such corporation is sufficient to 
 pay all operating expenses and fixed charges and such 
 income shall have been so sufficient for the term of three 
 years preceding the issuance of such bonds, or that payment 
 of its said bonds have been guaranteed by a corporation 
 that has paid all its operating expenses and fixed charges 
 for a period of three years prior to guaranteeing the pay- 
 ment of such bonds. 
 
 (h) First mortgage bonds or deeds of trust issued by Real estate 
 real estate corporations ; provided, that said bond issue shall corporation 
 not exceed sixty per centum of the market value of the °°^^^' 
 real estate taken as security. 
 
 No savings bank shall purchase the bonds of any cor- Limitations. 
 poration or make a loan on the bonds of any corporation, 
 if the franchise of such corporation expires prior to the 
 maturity of its bonds, or if the franchise or special privilege 
 granted to such corporation by any city, county, or city 
 and county, expires before the maturity of such bond issue. 
 
 Sec. 62. No savings bank shall, directly or indirectly, deal or 
 trade in real or personal property in any other case or for any other 
 purpose than is authorized by this act, and shall not contract any 
 debt or liability for any purpose whatever other than for deposits, 
 except as in this section provided. 
 
 Savings banks may pay regular depositors, when requested by Deposits ma^ be 
 them, by draft upon deposits to the credit with their banks, and p(iid b}f draft. 
 charge current rate of exchange for such drafts. 
 
 No savings bank shall borrow money, or pledge or hypothecate nojronj'ns 
 any of its securities, except to meet the immediate demands of its monev. 
 own depositors, and then only in pursuance of a resolution adopted 
 by a vote of a majority of its board of directors, duly entered upon 
 their minutes, wherein shall be recorded the ayes and nays upon 
 each vote; also with the written approval of the superintendent of 
 banks, and he shall have the authority to fix the amount to be 
 borrowed, and the term and rate of interest thereon; provided. 
 
28 N. W. HALSEY & CO. 
 
 State, county, hoTvever, that savings banks may, in the manner authorized 
 
 and municipal by law, and without the written approval of the superin- 
 
 deposits. pendent of banks, borrow the public moneys of the state, 
 
 counties, cities and counties, and towns and receive such 
 
 public moneys on deposit. 
 
 Certificates Sec. 63. Savings banks may issue general certificates of 
 of deposit, deposit, which are transferable, as in other cases, by indorsement 
 and delivery; may issue, when requested by the depositor, special 
 certificates, acknowledging the deposit of the person therein named 
 of a specified sum of money, and expressly providing on the face 
 of such certificate that the sum so deposited and therein named may 
 be transferred only on the books of the bank; payment thereafter 
 made by the bank to the depositor named in such certificate, or to 
 his assignee named upon the books of the bank, or in case of death, 
 to the legal representative of such person, of the sum for which 
 such special certificate was issued, shall discharge the bank from all 
 further liability on account of the money so paid. 
 
 Time certificates. ■^^^ *™^ certificates of deposit, issued by a savings bank, shall be 
 subject to the same limitations and conditions as applied to other 
 deposits, and notice thereof shall be given by the words "Subject to 
 conditions of agreement with depositors" printed on the face of 
 the certificate issued. 
 
 Withdrawal of Sec. 64. Savings banks may prescribe by their by-laws, or by 
 deposits, contract with depositors, the time and conditions on which repayment 
 is to be made to depositors, except as in this act otherwise pro- 
 hibited; but whenever there is any call by depositors for repayment 
 of a greater amount than the bank may have disposable for that 
 purpose, the directors or officers thereof must not make any new 
 loans or investments of the funds of the depositors, or of earnings 
 thereof, until such excess of call has ceased. The directors of any 
 such bank, having no capital stock, must retain, on each dividend 
 day, at least ten per centum of the net profits of the bank, to 
 constitute a reserve fund, which must be invested in the same 
 manner as other funds of the bank, and must be used toward 
 paying any losses which the bank may sustain in pursuing its lawful 
 business. The bank may provide by its by-laws for the disposal 
 
BANK ACT OF CALIFORNIA 29 
 
 of any excess in the reserve fund, as provided for in section 21 of 
 
 this act, and the final disposal, upon the dissolution of the bank, of 
 
 the reserve fund, or of the remainder thereof, after payment of 
 losses. 
 
 Sec. 65. No director, or officer of any savings bank must. No director or 
 directly or indirectly, for himself or as the partner or agent of officer ma^ 
 others, borrow any of the deposits or other funds of such bank, nor "^^^^ °' oanii. 
 must he become an endorser or surety for loans to others, nor in any 
 manner be obligor for moneys borrow^ed of or loaned by such bank. 
 The office of any director or officer who acts in contravention of 
 the provisions of this section immediately thereupon becomes vacant, 
 and every director or officer authorizing or consenting to such loan, 
 and the person who receives such loan, shall severally be guilty of 
 a misdemeanor. 
 
 Sec. 66. Receiving deposits, issuing certificates of deposit. Creation of debt 
 checks, and bills of exchange, and the like, in the transaction of the defined. 
 business of savings banks, must not be construed to be the creation 
 of debt within the meaning of the phrase "create debt" in section 
 three hundred and nine of the Civil Code and as provided for in 
 this act. 
 
 Sec 67. 1. No savings bank shall loan money except on Loans. 
 adequate security of real or personal property, and no such loan 
 shall be made for a period longer than ten years; provided, 
 that no loans shall be made on unsecured notes. 
 
 2. No savings bank shall invest or loan more than five Limitation of 
 per centum of its assets on any one bond issue, except ^n'^^^j^^^t m 
 bonds of the United States, of the State of California, of 
 
 the counties, cities and counties, cities or school districts 
 of this state. 
 
 3. No savings bank shall loan money to exceed ninety Loan on bonds. 
 per centum of the market value of bonds specified in sub- 
 divisions (a), (b), (c) and (J) of subdivision three of section Percentage of 
 sixty-one of this act, and no more than eighty-five per "'r • f ^^ "f 
 centum of the market value of bonds specified in subdivision loaned on 
 
 (e) of subdivision three of section sixty-one of this act, different classes 
 and no more than seventy-five per centum of the market of bonds. 
 
30 
 
 N. W. HALSEY & CO. 
 
 value of bonds specified in subdivisions (/) and (g) of sub- 
 division three of section sixty-one of this act, and no more 
 than sixty-five per centum of the market value of personal 
 property and stocks of corporations or banks; provided, 
 horvever, that no loan shall be made upon the capital stock 
 of any corporation or bank unless such corporation or bank 
 has been in existence for two or more years and has earned 
 and paid a dividend on its capital stock. 
 
 4. No savings bank shall make any loan on the security of real 
 estate except it be a first lien and in no event to exceed sixty per 
 centum of the market value of any piece of real estate to be taken 
 as security, except for the purpose of facilitating the sale of property 
 owned by the savings bank; provided, that a second lien may be 
 accepted to secure the repayment of a debt previously contracted 
 in good faith. 
 
 5. No savings bank shall purchase, invest or loan its capital or 
 the money of its depositors, or any part of either, in mining shares 
 or stock. 
 
 6. No savings bank shall hereafter make a loan secured by 
 the stock of another bank, if by making such loan the total stock 
 of such other bank held by such loaning bank as collateral will 
 exceed in the aggregate ten per centum of the capital stock of such 
 other bank. 
 
 Any president or managing officer who knowingly consents to a 
 violation of the above provisions shall be deemed guilty of a felony. 
 
 Sec. 68. Savings banks must carry in cash, or its equivalent, 
 an amount equal to four per centum of its deposit liabilities, of 
 which two per centum of such liabilities shall be in coin or currency 
 of standard value in its own keeping. The amount thus carried 
 shall be called the lawful money reserve. 
 
 No new loan shall be made during any deficiency in the lawful 
 money leserve. 
 
 Deposits with commercial banks and trust companies, on open 
 account, to facilitate business transactions, as provided in this 
 section, shall be permitted, and shall not be construed as loans. 
 
 Not more than five per centum of the deposits of any savings 
 bank shall be deposited with any one bank. 
 
 Percentage of 
 
 market value 
 
 tvhich ma}) be 
 
 loaned on real 
 
 estate. 
 
 Mining stocks 
 
 can not be 
 
 purchased or 
 
 accepted as 
 
 collateral. 
 
 Stock of other 
 
 banks as 
 
 collateral. 
 
 Laivful money) 
 reserve. 
 
 Deposits Tvith 
 other banks. 
 
 Limitations. 
 
BANK ACT OF CALIFORNIA 31 
 
 Sec. 69. Every savings bank, and the business of every 
 savings department of every other bank, must be conducted under 
 and in accordance with the provisions of this act. 
 
 Article III. 
 
 COMMERCIAL BANKS. 
 
 Sec. 80. No commercial bank shall make any loans to any Loans, 
 person, company, corporation or firm to an amount exceeding one- 
 tenth part of the capital stock of such bank actually paid in and 
 surplus; provided, however, that a bank may loan to any person, 
 company, corporation or firm a sum not exceeding twenty-five per 
 centum of its capital stock actually paid in and surplus upon 
 security worth at least fifteen per centum more than the amount of 
 its loans; or it may loan ten per centum of such capital and surplus 
 as first above provided, and a further sum not exceeding fifteen 
 per centum of such capital and surplus upon security worth at least 
 fifteen per centum more than the amount of such loan so secured; 
 except that a commercial bank may buy from, or discount, for any 
 person, company, corporation or firm, or loan upon bills of lading, 
 warehouse receipts and bills of exchange, drawn in good faith 
 against actual existing value or against commercial or business 
 paper actually owned by the person negotiating the same. 
 
 Sec, 8L No loan shall be made by any commercial bank Corporation 
 upon the securities of one or more corporations, the payment of f^oans. 
 which is undertaken, in whole or in part, severally, but not jointly, 
 by two or more individuals, firms, or corporations: 
 
 (a) If the borrowers or underwriters be obligated absolutely or 
 contingently to purchase the securities, or any of them, collateral to 
 such loan, unless the borrowers or underwriters shall have paid on 
 account of the purchase of such securities an amount in cash, or its 
 equivalent, equal to at least twenty-five per centum of the several 
 amounts for which they remain obligated in completing the purchase 
 of such securities; 
 
 (b) If the commercial bank making such loan be liable, directly 
 or indirectly, or contingently, for the repayment of such loan or 
 any part thereof; 
 
32 
 
 N. W. HALSEY & CO. 
 
 (c) If its term, including any renewal thereof by agreement, 
 express or implied, exceed the period of one year; 
 
 (d) Or to an amount under any circumstances in excess of 
 twenty-five per centum of the capital and surplus of the commercial 
 bank making such loan. 
 
 Capital required. Sec. 82. Every commercial bank which is now transacting, or 
 which may hereafter transact business, shall have actually paid in 
 d capital stock of not less than twenty-five thousand dollars; and 
 until said sum of twenty-five thousand dollars shall be actually 
 paid in, the superintendent of banks shall not issue the certificate 
 required by section twenty- four of this act; provided that nothing 
 herein shall be construed to affect the provisions of section twenty- 
 three of this act relative to the capital stock required of banks 
 doing a departmental business. 
 
 Loans to 
 directors. 
 
 Sec. 83. No commercial bank shall loan any of its funds to 
 any of its directors unless such loan shall first have been approved 
 by a two-thirds vote of its board of directors, on which vote the 
 borrowing director shall not participate, and the fact of making 
 such loan, the name of the director borrowing the same, the time 
 when the same shall become due, the rate of interest thereon, and 
 the amount, value, and character of the security pledged therefor, 
 if any, shall be forthwith forwarded by the cashier of such bank 
 to the superintendent of banks; and if the superintendent of banks 
 shall disapprove of such loan, he shall immediately notify such 
 bank of his disapproval thereof, and such bank shall forthwith 
 collect such loan; provided, however, that the total loans to all 
 directors of such bank shall not at any one time exceed thirty per 
 cent of the capital and surplus of such bank; and provided, 
 further, that each bank having any loan or loans outstanding to 
 any of its directors shall once each month report in writing to the 
 superintendent of banks the name of each director to whom such 
 loan is made, the amount of such loan, the rate of interest thereon, 
 the time when the same shall fall due, and the security pledged 
 therefor, if any. Any officer or director of any commercial bank 
 violating any of the provisions of this section shall be guilty of 
 a felony. 
 
BANK ACT OF CALIFORNIA 33 
 
 Article IV. 
 
 TRUST COMPANIES. 
 
 Sec. 90. Any corporation which has been or shall be incor- Capital required. 
 porated under the general incorporation laws of this state, authorized 
 by its articles of incorporation to act as executor, administrator, 
 guardian, assignee, receiver, depositary or trustee, and having a 
 capital of not less than two hundred thousand dollars actually paid 
 in, in cash, may be appointed to act in such capacity in like 
 manner as individuals and shall be known as a trust company. In 
 all cases in which it is required that an executor, administrator, 
 guardian, assignee, receiver, depositary or trustee, shall qualify by 
 taking and subscribing an oath, or in which an affidavit is required, 
 it shall be a sufficient quahfication by such corporation if such oath 
 shall be taken and subscribed or such affidavit made by the president 
 or secretary or manager or trust officer thereof, and such officer 
 shall be liable for the failure of such trust company to perform 
 any of the duties required by law to be performed by individuals 
 acting in like capacity and subject to like penalties; and such trust 
 company shall be liable for such failure to the full amount of its 
 capital stock; provided, any such appointment as guardian shall 
 apply to the estate only, and not to the person. Such trust company 
 shall be entitled to and shall be allowed proper compensation for 
 all the services performed by them under the foregoing provisions 
 of this act; but such compensation shall not exceed that allowed 
 to natural persons for like services. 
 
 court 
 
 Sec. 91. Any court, having appointed and having jurisdiction Deposits b^ 
 of any executor, administrator, guardian, assignee, receiver, depos- ^^thoril^ of 
 itary, or trustee, upon the application of such officer or trustee, or 
 upon the application of any person having an interest in the estate 
 administered by such officer or trustee, after notice to the other 
 parties in interest as the court may direct, and after a hearing upon 
 such application, may authorize such officer or trustee to deposit 
 any moneys then in his hands, or which may come into his hands 
 thereafter, and until the further order of said court, with any such 
 trust company; and upon deposit of such money, and its receipt 
 and acceptance by such trust company, the said officer or trustee 
 
34 N. W. HALSEY & CO. 
 
 shall be discharged from further care or responsibility therefor. 
 Such deposits shall be paid out only upon the orders of said court. 
 
 Deposits b^ Sec. 92. It shall be lawful for any public administrator to 
 . . P"^"^ deposit with any trust company having not less than two hundred 
 thousand dollars paid-up capital, doing business in the county, or 
 city and county, in which he is acting as such administrator, any 
 and all moneys of any estate upon which he is administering, not 
 required for the current expenses of the administration; provided 
 that such corporation deposit with the state treasurer the securities 
 required by this act. Such deposits shall relieve the public admin- 
 istrator from depositing with the county treasurer the moneys so 
 deposited with such corporation. Moneys so deposited by a public 
 administrator may be drawn, upon the order of such administrator, 
 countersigned by a judge of a superior court, when required for 
 the purpose of administration, or otherwise. 
 
 Deposits b^f Sec. 93. Whenever, in the judgment of any court having 
 order of court, jurisdiction of any estate in process of administration by any 
 executor, administrator, guardian, assignee, receiver, depositary, or 
 trustee, and after such notice to the parties in interest as the court 
 shall direct, and after a hearing on such application, the said court 
 may order the said officer or trustee to deposit with any such trust 
 company, for safe keeping, such portion or all of the personal 
 assets of said estate as it shall deem proper; and thereupon said 
 court shall, by an order of record, reduce the bond to be given or 
 theretofore given by such officer or trustee, so as to cover only the 
 estate remaining in the hands of said officer or trustee; and the 
 property as deposited shall thereupon be held by such trust company, 
 under the orders and directions of said court. Any court having 
 jurisdiction of an estate being administered by a public administrator, 
 may direct such public administrator to deposit all or any part of 
 the moneys of the estate not required for the current expenses of 
 the administration, with any such trust company doing business in 
 the county, or city and county, where such public administrator 
 is acting. 
 
 Responsibility Sec. 94. Such trust company shall not be required to give 
 for investments, any bond or security in case of any appointment hereinbefore 
 
BANK ACT OF CALIFORNIA 35 
 
 provided for, except as hereinafter provided, but shall be responsible 
 for all investments which shall be made by it of the funds which 
 may be entrusted to it for investment by such court, and shall be 
 Hable as natural persons in like positions now are, and as herein- 
 after provided. 
 
 Sec. 95. Such trust company shall pay interest upon all Payment of 
 moneys held by it as trustee, by virtue of this act, at such rate as interest. 
 may be agreed upon at the time of its acceptance of any such 
 appointment, or as shall be provided by the order of the court. 
 
 Sec. 96. Each trust company, before accepting any such Bonds or 
 appointment or deposit, shall deposit with the treasurer of state, securities to be 
 for the benefit of the creditors of said trust company, the ^^P^sited r»ith 
 sum of one hundred thousand dollars ($100,000), in bonds 
 of the United States, or municipal bonds of this state, or of 
 any county, or city, city and county, or school district 
 thereof, or on mortgages on improved and productive real estate in 
 this state, being first liens thereon; said bonds or mortgages 
 to be approved by the superintendent of banks. The bonds 
 and securities so deposited may be exchanged from time to 
 time for other securities, receivable as aforesaid. Said bonds 
 of the United States, or municipal bonds of this state, or 
 of any county, city, city and county, or school district 
 thereof, to be registered in the name of said treasurer, 
 officially, and all said securities to be subject to sale and 
 transfer, and to the disposal of the proceeds by said treas- 
 urer, only on the order of a court of competent jurisdiction 
 and as hereinafter provided. The state shall be responsible 
 for the safe return of such securities deposited with the 
 treasurer of the state, under this section. 
 
 ' Sec. 97. Any such trust company, having a paid-up capital in Property may 
 
 excess of two hundred thousand dollars, may be permitted by the ^^ mortgaged. 
 
 superintendent of banks to mortgage any improved and productive 
 
 real estate owned by it, in excess of said amount, to the treasurer 
 
 of state, for such sum as the said superintendent of banks may 
 
 determine, and such mortgage may be deposited with said treasurer, 
 
 and when so deposited it shall be included in the amount of 
 
36 ■ N. W. HALSEY & CO. 
 
 securities hereinabove required to be deposited with said treasurer 
 for the benefit of the creditors of said trust company. 
 
 Interest on Sec. 98. So long as the trust company so depositing 
 bonds deposited, shall continue solvent, it shall be permitted to receive from 
 said treasurer the interest or dividends on said deposits, 
 and whenever any trust company receives trust funds as 
 such trustee in excess of five hundred thousand dollars, it 
 shall deposit with the state treasurer securities mentioned 
 in section 96 of this act, to be approved by the superin- 
 tendent of banks, in the amount of another one hundred 
 thousand dollars, and for each five hundred thousand dollars 
 of such trust funds thereafter received, an additional deposit 
 Amount of of fifty thousand dollars of such securities likewise approved 
 deposit required shall be made with the said state treasurer; provided, hoT»- 
 as securij) jor ^^^^ ^^^^ ^^ trust company shall be required to deposit 
 trust funds. / •" ^ . 
 
 more than one million dollars of such securities. 
 
 The state shall be responsible for the safe return of such 
 securities deposited with the treasurer of the state under 
 this section. 
 
 Certificates of Sec. 99. When any part of such deposit with the state 
 Title required treasurer is made in bonds and mortgages, it shall be accompanied 
 with rnortgages ^^ ^^jj abstracts of titles and searches, or by certificates of title 
 issued by a person, company or corporation, whose business or 
 objects are to make searches of titles and issue certificates of titles, 
 and which said person, company or corporation shall be one desig- 
 nated or approved by said superintendent of banks, and shall be 
 Fees of counsel examined and approved by or under the direction of the said 
 and appraisers, superintendent of banks. The fees for an examination of title by 
 malting ^.^unsel to be paid by the trust company making the deposit, shall 
 exami ^ ° • j^^j exceed twenty dollars for each mortgage, and the fee for each 
 appraiser, not exceeding two, besides expenses, shall be five dollars 
 for each mortgage. 
 
 Affidavit of Sec. 100. Before the superintendent of banks issues his cer- 
 
 • Ah^i^^^ tificate to any trust company, there must be filed in his office the 
 
 require ejo e ^^^^^-^y^ ^^ ^ majority of its board of directors or the persons 
 
 issued, named in said articles as the first directors of the corporation that 
 
BANK ACT OF CALIFORNIA 37 
 
 at least two hundred thousand dollars of the capital stock has 
 actually been subscribed and paid in to a person named in such 
 affidavit for the benefit of the corporation. 
 
 Sec. 101. On making the report required by the terms of this List of trusts. 
 act, every trust company shall, in addition to the other facts to be 
 reported on, furnish a list and brief description of the trusts held 
 by such corporation, the source of the appointment thereto, and the 
 amount of real and personal estate held by such trust company by 
 virtue thereof; except that mere mortgage trusts, wherein no action 
 has been taken by such corporation, shall not be included in such 
 statement. 
 
 Sec. 1 02. Any trust company which desires to retire from Retiring from 
 business under this act, shall furnish to the superintendent of banks business. 
 satisfactory evidence of its release and discharge from all the 
 obligations and trusts hereinbefore provided for; whereupon he shall 
 revoke his certificate to such trust company, and thereupon the 
 treasurer of state shall return to said trust company all its securities. 
 
 Sec. 103. Except as herein otherwise provided, any trust Confidential 
 company exercising the powers and performing the duties provided relations of trust 
 for in this act, shall keep inviolate all communications confidentially ^^p^P^^^ *o 
 made to it touching the existence, condition, management and 
 administration of any trusts confided to it; and no creditor or 
 stockholder of any such trust company shall be entitled to disclosure 
 of any such communication; provided, however, that the president, 
 manager and secretary of such trust company shall be entitled to 
 knowledge of such communication; and provided, further, that in 
 any suit or proceeding touching the existence, condition, management 
 or administration of such trust, the court wherein the same is pending 
 may require disclosure of any such communication. 
 
 Sec. 104. The use of the word "trust" in combination with Companies not 
 or in connection with the word "company," "corporation," "incor- organized under 
 poration," "association," "society," "organization," or "syndicate," j^?. , . 
 is hereby prohibited to all persons, firms, associations, companies or • i 
 
 corporations other than corporations provided for by this act. Every "tfust." 
 person, firm, association, company, or corporation which uses the 
 word "trust" in combination with or in connection with the 
 
38 N. W. HALSEY & CO. 
 
 word "company," "corporation," "incorporation," "association," 
 "society," "organization," or "syndicate," as the name under which 
 business is done or transacted, shall be subject to the provisions of 
 this act and to the supervision of the superintendent of banks. Any 
 person, firm, association, company, or corporation making use of 
 the word "trust" in combination or in connection with the 
 word "company," "corporation," "incorporation," "association," 
 "society," "organization," or "syndicate," in the manner herein- 
 above mentioned, in the transaction of business, and not subject to 
 the provisions of this act and the supervision of the superintendent 
 of banks, shall be guilty of a misdemeanor. 
 
 No corporation hereafter formed shall use the word "trust" or 
 "trustee" as a part of its corporate name unless it shall be authorized 
 by its articles of incorporation to act as executor, administrator, 
 guardian, assignee, receiver, depositary or trustee; nor shall any 
 corporation hereafter formed accept or execute any trust mentioned 
 in this act, unless it shall have complied with the provisions of 
 this act. 
 
 Investment of Sec. 1 05. Every trust company shall invest its capital 
 
 trust funds. ^^^ trust funds received by it in accordance with the laws 
 
 relative to the investment of funds deposited with savings 
 
 banks, unless a specific agreement to the contrary is made 
 
 between the trust company and the party creating the trust. 
 
 Department Sec. 106 Every trust company desiring to do or doing a 
 business, commercial banking business or a savings bank business, or both, 
 in addition to its trust business, shall have paid up in cash the 
 capital as provided in section twenty-three of this act. Such capital 
 for each such department shall be increased from time to time in 
 the same manner and to the same extent as though such bank were 
 conducting separate banks instead of separate departments. 
 
 Every trust company doing a departmental business shall comply 
 with the provisions of this act governing each of such departments 
 as to its deposits, reserves, investments and loans. 
 
BANK ACT OF CALIFORNIA 39 
 
 Article V. 
 
 STATE BANKING DEPARTMENT. 
 
 Sec. 120. There is hereby created a state banking department. Superintendent 
 The chief officer of such department shall be the superintendent °^ ^nf(S. 
 thereof, and be known as the superintendent of banks. He shall 
 be appointed by the governor, and shall hold his office for a term 
 of four years, or until his successor shall have been appointed and 
 qualified. No person shall be appointed superintendent of banks 
 who has not had active banking experience, either as executive officer 
 or director of some commercial bank, savings bank or trust company, 
 at least one-half of which experience has been had in this state. 
 He shall not, either directly or indirectly, be interested in any 
 commercial bank, savings bank or trust company, or as an individual 
 banker. He shall receive an annual salary of ten thousand dollars, 
 to be paid monthly out of the state treasury on a warrant of the 
 controller. He shall, within fifteen days from the time of notice 
 of his appointment, take and subscribe to the constitutional oath of 
 office, and file the same in the office of the secretary of state, and 
 execute to the people of the state a bond in the penal sum of fifty 
 thousand dollars, with corporate surety or two or more sureties to 
 be approved by the governor of the state, conditioned for the 
 faithful discharge of the duties of his office. 
 
 Sec. 121. The superintendent of banks shall employ a chief Departmental 
 d^uty, attorney and such clerks and examiners as he may need to P ■> • 
 discharge in a proper manner the duties imposed upon him by law, 
 none of which examiners or clerks or attorney shall be interested 
 in any bank in this state as director, stockholder, officer or employee; 
 they shall perform such duties as he shall assign to them. He shall 
 fix the compensation of the attorney, clerks, and examiners, which 
 compensation shall be paid monthly, on his certificate and on the 
 warrant of the controller, out of the state treasury. The chief 
 deputy shall, within fifteen days from the time of his appointment, 
 take and subscribe to the constitutional oath of office, and file the 
 same in the office of the secretary of state, and his compensation 
 shall be four thousand dollars per annum; provided, however, that 
 
40 N. W. HALSEY & CO. 
 
 the total expenditure provided for in this act shall not exceed 
 seventy-five thousand dollars per annum. 
 Chief detutv ^° person shall be appointed a chief deputy who has not had 
 superintendent, at least three years' active banking experience, either as an executive 
 officer or employee of some bank in this state. In case of the 
 absence or inability to act, or vacancy in the office orf superintendent 
 of banks for thirty consecutive days, the chief deputy shall execute 
 to the people of the state a bond in the penal sum of fifty thousand 
 dollars, with corporate surety or two sureties to be approved by 
 the controller and treasurer of the state, conditioned for the faithful 
 discharge of the duties of the superintendent while such deputy 
 acts as superintendent, and upon filing such bond such deputy shall 
 have all the power and duties of superintendent of banks, until the 
 inability of the superintendent shall be removed, or until a new 
 superintendent of banks shall have been appointed by the governor. 
 No superintendent of banks, chief deputy or bank examiner shall be 
 or shall become indebted, directly or indirectly, either as borrower, 
 endorser, surety, or guarantor to any bank under his supervision or 
 subject to his examination. 
 
 Location of Sec. 122. The superintendent of banks shall have his principal 
 officers, ogjce in the city of San Francisco, and may also have suitable 
 rooms in the city of Los Angeles, wherein to conduct the business 
 of the state banking department. The superintendent shall, from 
 time to time, obtain the necessary furniture, stationery, fuel, lights, 
 and other proper conveniences for the transaction of such business; 
 the expense of which shall be paid out of the state treasury on the 
 certificate of the superintendent and the warrant of the controller. 
 
 State banking Sec. 123. A fund is hereby created, to be known as the state 
 fund, banking fund, and out of said fund shall be paid all the expenses 
 incurred in and about the conduct of the business of the banking 
 department, including the salary of the superintendent, chief deputy, 
 attorney, clerks and examiners, traveling expenses, furnishing of 
 rooms and rer.t. Each bank shall pay annually its share of the 
 total amount of the salaries and expenses of the banking department, 
 to be determined by the proportion which the deposits of any such 
 bank bear to the aggregate deposits of all such banks receiving 
 
BANK ACT OF CALIFORNIA 4! 
 
 certificates of authorization from the superintendent of banks, as 
 shown by the last report of such bank to the superintendent of 
 banks. 
 
 All moneys collected or received by the superintendent of banks, 
 under and by virtue of the provisions of this act, shall be by him 
 delivered to the treasurer of the state, who shall deposit the same 
 to the credit of said banking fund, and the unexpended balances of 
 all moneys heretofore paid into the state treasury by any of the 
 bank commissioners shall be retained and become a part of said 
 fund. If any such bank shall fail to pay such charges as are 
 herein required, the superintendent shall forthwith cancel the cer- 
 tificate of saii bank. 
 
 Sec. 124. Every bank shall be subject to the inspection of the Inspection of 
 superintendent of banks. The superintendent of banks, the chief banlis. 
 deputy, or some competent person or persons to be appointed by 
 the superintendent of banks, to be known as examiners, shall visit 
 and examine every bank, other than a savings bank, at least twice 
 in each year, and every savings bank at least once in each year. 
 On every such examination inquiry shall be made by him as to the 
 condition and resources of the bank, the mode of conducting and 
 managing its affairs, the action of its directors, the investment and 
 disposition of its funds, the safety and prudence of its management, 
 die security afforded to those by whom its engagements are held 
 rmd whether the requirements of its articles of incorporation and 
 the law have been complied with in the administration of its affairs, 
 and as to such other matters as the superintendent may prescribe. 
 He shall have power in like manner to examine every bank 
 whenever, in his judgment, its condition and management is such 
 as to render an examination of its affairs necessary or expedient. 
 
 He shall also have power to examine, or cause to be examined, ^''<")cnes oj 
 every agency located in this state of any foreign bank or banking 
 corporation, for the purpose of ascertaining whether it has complied 
 with the laws of the state, and for such other purposes and as to 
 such other matters as the superintendent may prescribe. 
 
 The superintendent, chief deputy, and every such examiner shall 
 have the power to administer an oath to any person whose testimony 
 he may require on the examination of any bank, or on the examination 
 
42 N. W. HALSEY 6r CO. 
 
 of any agency of any foreign bank or banking corporation, 
 and to compel appearance and attendance of any such person for 
 the purpose of any such examination. The result of such exam- 
 ination shall be certified by the persons making the examination on 
 the records of the bank examined. 
 
 When a bank shall have been examined by any examiner, and 
 he finds securities therein which are, in his judgment, of doubtful 
 value, he shall report the same to the superintendent of banks, who 
 thereupon shall be authorized to employ appraisers to appraise said 
 securities, at a compensation to be fixed by the superintendent of 
 banks. 
 
 Examiners. Sec. 125. Every examiner appointed by the superintendent of 
 banks shall, before entering upon the discharge of his duties, take 
 the constitutional oath of office and cause the same to be filed in 
 the office of the secretary of state. No such examiner shall be 
 appointed receiver of any bank whose books, papers and affairs he 
 shall have examined pursuant to his appointment. 
 
 Neglect to Sec. 126. If the chief deputy or any examiner shall have 
 
 report unsafe knowledge of the insolvency or unsafe condition of any bank 
 
 condition, jnentioned in this act, and that it is unsafe or inexpedient to permit 
 
 said bank to continue business, and shall neglect to forthwith report 
 
 such fact in writing over his signature to the superintendent of banks, 
 
 he shall be guilty of felony. 
 
 Certificate from Sec. 127. No bank shall transact any business in this state 
 Superintendent without the written approval of the superintendent of banks, and 
 necessary for ^JiJ^Qut his written certificate stating that it has complied with the 
 ifef'na Affcmoc/ provisions of this act, and with all the requirements of law, and 
 that it is authorized to transact, within this state, the business 
 specified therein, and that the requisite capital has been in good 
 faith subscribed and paid up in cash, or, if organized without capital 
 stock that it has accumulated the requisite surplus or reserve fund. 
 Before issuing such certificate the superintendent of banks shall 
 examine, or cause an examination to be made, in order to ascertain 
 whether the requisite capital of such bank has been paid up in cash 
 or the requisite reserve or surplus fund has been accumulated. The 
 superintendent of banks shall not authorize such bank to commence 
 
 banking business. 
 
BANK ACT OF CALIFORNIA 43 
 
 business until it appears from such examination, or other evidence 
 satisfactory to him, that the requisite capital has been, in good 
 faith, subscribed and paid in in cash, or that the requisite surplus 
 or reserve fund has been accumulated or paid in in cash, and until 
 such bank shall have paid a fee of fifty dollars. Every person 
 who neglects to comply with any requirement of this section shall 
 be guilty of a misdemeanor. 
 
 Sec. 128. When the articles of incorporation shall have been Investigation of 
 filed with the secretary of state, and application made for the applications for 
 issuance of a certificate to do business as a bank, the superintendent cerft^ca/e. 
 of bank shall ascertain, from the best sources of information at his 
 command, whether the character and general fitness of the persons 
 named as stockholders are such as to command the confidence of 
 the community in which such bank is proposed to be located, and, 
 if so satisfied, he shall, within sixty days after such application has 
 been made to him, issue, under his hand and official seal, the 
 certificate of authorization required by this act. The superintendent 
 of banks shall transmit such certificate of authorization to the county 
 clerk of such county, who shall file the same; the superintendent of 
 banks shall also file a duplicate of such certificate in his own office. 
 
 Sec. 129, Every bank doing a departmental business shall Reports h^ 
 render to the superintendent of banks for each department conducted departmental 
 by it, a separate report showing in detail as required by section one oanifs. 
 hundred thirty of this act, the actual financial condition of such 
 department and shall at the time of furnishing said report separately 
 publish the statement for each department as provided in section 
 one hundred thirty-two of this act. 
 
 Sec. 1 30. Every bank doing business in this state shall, when- Character of 
 ever required by the superintendent of banks, make a report in report required 
 writing to him, verified by the oath of its president and its secretary "P°" demand of 
 or cashier, or two principal officers. Such reports shall show the •^"P^'''"'^""^"** 
 actual financial condition of the bank making the report, at the 
 close of any past day specified by the superintendent, and shall 
 specify the following: 
 
 I. The amount of its capital stock and the number of shares Capital. 
 into which it is divided, or, if not incorporated, the amount of 
 capital actually paid in, and by whom. 
 
44 N. W. HALSEY & CO. 
 
 Names of 2. The names of the directors and the number of shares of 
 directors, stock held by each, or, if not incorporated, the names of each 
 member of the firm and the amount of capital paid in by each. 
 
 Reserve funds, 3. The total amount of capital actually paid up in money, and 
 ^'^* the total amount of contingent and other reserve funds, if any. 
 
 Liabilities. 4. The total amount due the depositors. 
 
 5. The total amount and character of any other liabilities it 
 may have. 
 
 Real estate. 6. The amount at which the lot and building occupied by the 
 bank for the transaction of its regular business stands debited on its 
 books, together with the market value of all other real estate held, 
 whether acquired in settlement of loans or otherwise; the amount 
 at which it stands debited on the bank books, in what counties 
 situated, and in what name the title is vested, if not in the name 
 of the bank itself. 
 
 Loans on 7. The amount loaned on real estate, specifying the amount 
 real estate, secured on real estate in each county separately; also specifying 
 the name of the person in whose name the property is held in trust 
 or as security, in case it is held in any name other than that of the 
 bank and the instrument creating the security does not itself disclose 
 the name of the bank. 
 
 Bonds. 8, The amount invested in bonds, designating the name 
 and amount of each particular kind. 
 
 Loans on bonds. 9. xhe amount loaned on stocks and bonds, designating 
 each particular class and the amount thereof. 
 
 Loans on |0. The amount of money loaned on other securities, with a 
 other securities, particular designation of each class and the amount loaned on each. 
 
 Money) on hand. ] ] . fhe actual amount of money on hand or deposited in any 
 other bank or place, with the name of the place where deposited 
 and the amount in each place. 
 Other items. 12. Any other property held, or any amount of money loaned, 
 deposited, invested or placed, not otherwise herein enumerated, and 
 the place where situate and the value of said property, and the 
 amount so loaned, deposited or placed, and any other information 
 he may request relative to the conduct and affairs of such bank. 
 
BANK ACT OF CALIFORNIA 45 
 
 The oaths of the officers and the statements above required shall Report must be 
 state that they and each of them have a personal knowledge of the sjvorn to. 
 matters therein contained, and that they believe every allegation, 
 statement, matter, and thing therein contained is true. Any wilful 
 false statement in the premises shall be perjury and shall be pun- 
 ished as such. 
 
 Sec. 131. The superintendent of banks shall call for reports Dates of reports. 
 specified by the previous section, at least three times each year, and 
 shall call for such reports as near as possible upon the same days 
 as those designated by the comptroller of the currency of the United 
 States for reports of national banking associations. 
 
 Sec. 1 32. At the time of furnishing such report to the super- Publication of 
 intendent of banks, every bank shall also publish a condensed state- financial 
 ment of its financial condition, at least once, in some newspaper of condition. 
 general circulation, published in the city or town where its principal 
 place of business is located, and, if no paper is published in such 
 town, then in some newspaper of general circulation in the county 
 where its principal place of business is located. Such published 
 statement shall show the total amount of loans, the total amount of 
 overdrafts, the total amount invested in bonds and other securi- 
 ties, the total amount due from banks, the total amount of checks and 
 ot!ier cash items, the total amount of cash on hand, capital paid 
 in, surplus funds; undivided profits, less expenses and taxes paid; 
 due to other banks and bankers, due to trust companies and savings 
 banks; individual deposits subject to checks; demand certificates of 
 deposit; time deposits; certified checks; cashier's checks outstanding; 
 and such other items as will show the actual financial condition of 
 the bank making the report. 
 
 Sec. 1 33. Whenever the superintendent of banks shall have Reduction of 
 reason to believe that the capital of any bank is reduced by impair- capital b\) 
 ment or otherwise below the amount required by law or by its '^P^"''"^"** 
 articles of incorporation, he may require such bank to make good 
 the deficiency within sixty days after the date of such requisition. 
 He may examine or cause to be examined any such bank to ascertain 
 the amount of such impairment or reduction of capital and whether 
 the deficiency has been made good as required by him. 
 
46 N. W. HALSEY & CO. 
 
 Violations of Sec. 134. If it shall appear to the superintendent of banks 
 articles of that any bank has violated its articles of incorporation, or any law 
 incorporation, [jinding upon it, he must, by an order under his hand and official 
 seal, which seal must be adopted by him, addressed to such bank, 
 direct the discontinuance of such violation; or, if it shall appear 
 to the superintendent of banks that such bank is conducting business 
 in an unsafe or injurious manner, he must in like manner direct 
 the discontinuance of such unsafe or injurious practices. Such 
 order shall require such bank to show cause, before the super- 
 intendent of banks, at a time and place to be fixed by him, why 
 said order should not be observed. If upon such hearing it shall 
 appear to the superintendent of banks that such bank is conducting 
 business in an unsafe or injurious manner, or is violating its articles 
 of incorporation, or any law of this state, then the superintendent 
 of banks shall make such order of discontinuance final, and such 
 bank shall immediately discontinue all practices named in such 
 order by the superintendent of banks. Such bank shall have ten 
 days after any such order is made final in which suit may be com- 
 menced to restrain enforcement of such order, and unless such 
 action be so commenced and enforcement of said order be enjoined 
 within ten days, by the court in which such suit is brought, then 
 such bank shall comply with such order; and, in the event of its 
 failure so to do, then the superintendent of banks shall have power 
 to take immediate charge and control of said bank, and liquidate its 
 affairs in the manner provided in this act for the liquidation of banks. 
 
 Procedure. Sec. 135. In any such action, no damage may be awarded, 
 but the action otherwise shall be commenced, tried and determined 
 according to the provisions of the Code of Civil Procedure of 
 California. 
 
 Superintendent Sec. 136. Whenever the superintendent of banks shall have 
 
 of Banks to reason to conclude that any bank is in an unsound or unsafe condi- 
 
 take charge of ^^^ ^^ transact the business for which it is organized, or that it 
 
 an/fs in . ^^ ^^ inexpedient for it to continue business, the superintendent 
 
 unsound ^ • r i i i_ • 
 
 condition, of banks may forthwith take possession of the property and busmess 
 
 of such bank, and retain such possession until such bank shall 
 resume business, or its affairs be finally liquidated, as herein provided. 
 
BANK ACT OF CALIFORNIA 47 
 
 On taking possession of the property and business of any such Possession b}) 
 bank, the superintendent of banks shall forthwith give notice in Superintendent 
 writing of such fact to any and all corporations and individuals of unsafe banks. 
 holding or in possession of any of the assets of such bank. 
 
 No bank, corporation or individual, knowing of such taking 
 possession by the superintendent of banks, or notified as aforesaid, 
 shall have a lien or charge for any payment, advance or clearance 
 thereafter made, or liability thereafter incurred against any of 
 the assets of the bank of whose property and business the super- 
 intendent of banks shall have taken possession as aforesaid. Such 
 bank may, with the consent of the superintendent of banks, resume 
 business upon such conditions as may be approved by him. 
 
 Upon taking possession of the property and business of such Liquidation. 
 bank, the superintendent of banks is authorized to collect moneys 
 due to such bank, and to do such other acts as are necessary to 
 conserve its assets and business, and shall proceed to liquidate 
 the affairs thereof as hereinafter provided. 
 
 The superintendent of banks shall collect all debts due and 
 claims belonging to it, and upon the order of the superior court 
 may sell or compound all bad or doubtful debts, and on like order 
 may sell all real and personal property of such bank on such 
 terms as the court shall direct; and may, if necessary to pay the 
 debts of such bank, enforce individual liability of the stockholders 
 by action to be brought within three years after the date of his 
 taking possession of the affairs of such bank. 
 
 The superintendent of banks may, under his hand and official Special deputy 
 seal, appoint one or more special deputy superintendents of banks, superintendent. 
 as agent or agents, to assist him in the duty of liquidation and 
 distribution, the certificate of appointment to be filed in the office 
 of the superintendent of banks, and a certified copy in the office 
 of the clerk of the county in which the principal office of such 
 bank is located. 
 
 The superintendent of banks may, from time to time, audiorize 
 a special deputy superintendent to perform such duties connected 
 with such liquidations and distribution as the superintendent of 
 banks may deem proper. The superintendent of banks may employ 
 such counsel, and procure such expert assistance and advice as Counsel. 
 may be necessary in the liquidation and distribution of the assets 
 
48 N. W. HALSEY 6- CO. 
 
 of such bank, and may retain such officers or employees of such 
 
 bank as he may deem necessary. The superintendent of banks 
 
 shall require, from a special deputy superintendent and from such 
 
 assistants, such security for the faithful discharge of their duties 
 
 as he may deem proper. 
 
 Claims against The superintendent of banks shall cause notice to be given by 
 
 OOTIDS in advertisement in such newspapers as he may direct, w^eekly, for 
 
 ^ ' three consecutive months, calling on all persons v^ho may have 
 
 claims against such bank, to present the same to the superintendent 
 
 of banks, and make legal proof thereof, at a place and within a 
 
 time not more than six months after the last day of publication, to 
 
 be therein specified. 
 
 The superintendent of banks shall mail a copy of such notice 
 to all persons whose names appear as creditors upon the books of 
 the bank. If the superintendent of banks doubts the justice and 
 validity of any claim, he may reject the same and serve notice of 
 such rejection upon the claimant, either by mail or personally. An 
 affidavit of the service of such notice shall be prima facie evidence 
 thereof, and shall be filed with the superintendent of banks. An 
 action upon a claim so rejected must be brought within six months 
 after such service. Claims presented after the expiration of the 
 time fixed in the notice to creditors shall be entitled to share ratably 
 in the distribution to the extent of the assets in the hands of the 
 superintendent of banks, equitably applicable thereto. 
 Inventory Upon taking possession of the property and assets of such 
 of assets, bank, the superintendent of banks shall make an inventory of the 
 assets of such bank in duplicate, one to be filed in the office of the 
 superintendent of banks, and one in the office of the clerk of the 
 county in which the principal office of such bank is located; upon 
 the expiration of the time fixed for the presentation of claims, 
 the superintendent of banks shall make in duplicate a full and complete 
 list of the claims presented, including and specifying such claims as 
 have been rejected by him, one to be filed in the office of the superin- 
 tendent of banks, and one in the office of the clerk of the county in 
 which the principal office of such bank is located; such inventory and 
 list of claims shall be open at all reasonable times for inspection. 
 Fees. The compensation of the special deputy superintendents, counsel, 
 and other officers and assistants, and all expenses of supervision 
 
BANK ACT OF CALIFORNIA 49 
 
 and liquidation, shall be fixed by the superintendent of banks on 
 notice to such bank, and shall upon his certificate be paid out 
 of the funds of such bank in his hands. 
 
 The sums collected by the superintendent of banks shall, from Deposit of 
 time to time, be deposited in one or more banks in this state, ("". ?j oa^'c* 
 subject to examination by the superintendent of banks. ^ 
 
 At any time after the expiration of the date fixed for the 
 presentation of claims, the superintendent of banks may, out of 
 the funds remaining in his hands after the payment of expenses, 
 declare one or more dividends, and after the expiration of one 
 year from the date of first publication of notice to creditors he 
 may declare a final dividend. 
 
 Objection to any claim not rejected by the superintendent of Court to rule on 
 banks may be made by any party interested, by filing a copy of such ^^^P^i^<* claims. 
 objection with the superintendent of banks, who shall present the 
 same to the superior court of the county in which such bank has 
 its principal place of business, with a petition that said court pass 
 upon the validity of such claims; and such court shall thereupon, 
 upon such notice to the party presenting the same, and to the 
 superintendent of banks, as the court may deem proper, accept 
 or reject said claim, and the superintendent of banks shall observe 
 the order of the court in that regard; provided, however, that should 
 the claim be rejected, such rejection shall not conclude the claimant 
 from bringing an action upon such claim within six months after 
 such rejection. 
 
 Upon the petition of the superintendent of banks, such court 
 may make proper provisions for unclaimed deposits. 
 
 Whenever any such bank, of whose property and business the BarJ^ ma^ 
 superintendent of banks has taken possession as aforesaid, deems <^PP^<ii- io courts, 
 itself aggrieved thereby, it may at any time within ten days after 
 such taking possession, and not thereafter, apply to the superior 
 court in the county in which the principal office of such bank is 
 located, to enjoin further proceedings; and said court, after citing 
 the superintendent of banks to show cause why further proceedings 
 should not be enjoined, and upon hearing the allegations and 
 proofs of the parties, and determining the facts, may, upon the 
 merits, dismiss such application, or enjoin the superintendent of 
 
50 N. W. HALSEY & CO. 
 
 banks from further proceedings, and direct him to surrender such 
 business and property to such bank. 
 
 Either party aggrieved by the judgment rendered thereon may 
 appeal therefrom to the supreme court, as in other cases of appeal 
 thereto from the judgment of a superior court. 
 
 Appeal to ^^ appeal as above provided shall operate as a stay of the 
 supreme court, judgment of the superior court, and no bond need be given if the 
 appeal be taken by the superintendent of banks; but if the appeal 
 be taken by such bank, a bond shall be given, as required by section 
 nine hundred and forty-three of the Code of Civil Procedure. 
 Final Whenever the superintendent of banks shall have paid to each 
 liquidation, and every depositor and creditor of such corporation (not including 
 stockholders) whose claim or claims as such creditor or depositor 
 shall have been duly approved and allowed the full amount of 
 such claim, and shall have made proper provisions for unclaimed 
 and unpaid deposits or dividends, and shall have paid all expenses 
 of the liquidation, the superintendent of banks shall call a meeting 
 of the stockholders of such corporation by giving notice thereof 
 for thirty days, in one or more newspapers published in the county 
 where the principal office of such corporation is located. At such 
 meeting, the superintendent of banks shall appear and deliver to 
 the stockholders all the property, effects and records of such bank, 
 and upon such transfer and delivery he shall be discharged from 
 any and all further liability to such bank and its creditors. And 
 thereupon the bank shall be in the same position as though it had 
 never been authorized to transact a banking business, and such bank, 
 by fulfilling the requirements of this act, and of the superintendent 
 of banks, can thereafter be authorized to resume the conduct of 
 its business as a bank. 
 
 Voluntary) Sec. 137. 1. Any bank shall have the right, on application of 
 
 dissolution of t^g stockholders or members to apply to the superior court of the 
 
 banlis. gQuj^ty y/herein its principal place of business is situated, to dissolve 
 
 said bank in the manner provided for in title six, part three of 
 
 the Code of Civil Procedure. 
 
 Funds of 2- ^* ^^ hereby made the duty of every person or corporation 
 
 dissolved banks, holding funds of any bank, at the end of five years from and after 
 
 such bank has ceased to receive deposits, or do business, to pay 
 
BANK ACT OF CALIFORNIA 51 
 
 the same into the state treasury, which money shall be held in 
 the state school land fund; and at the same time it shall be the 
 duty of such person or corporation to furnish to the state controller 
 a list of the names of all depositors to whom said moneys belong 
 or to whom said bank owes the same. 
 
 3. The money may be drawn out on the warrants of the state ]-Jqq) much 
 controller, issued on proofs of ownership, approved and allowed by money may he 
 the state board of examiners. drawn. 
 
 4. All moneys paid into the said fund, uncalled for within five 
 years after being paid in, shall by operation of law, and without 
 action had, escheat to the state, and thereafter only be drawn out 
 in such manner as now provided for by law for the estates of 
 deceased persons escheated to this state. 
 
 5. The state board of examiners must invest such moneys in the Investment 
 same manner that the state school land fund is invested as provided 
 
 by law. But any claimant shall be entitled to recover as herein 
 provided only the principal so paid into the state treasury. 
 
 Sec. 1 38. If any bank shall fail to make the report required Penali"^ for 
 by law or by the superintendent of banks, within ten days from the delaying or 
 day designated for the making thereof, or to include therein any Tifithholding 
 matter required by law or by the superintendent of banks, every '"^P*"'"' 
 such delinquent bank shall forfeit to the people of the state the 
 sum of one hundred dollars for each day that such report shall 
 be delayed or withheld, and for every day it shall fail to report 
 any such omitted matter. In the event of the failure of any such 
 bank to make the report required from it by law, or by the super- 
 intendent of banks, he shall immediately cause the books, papers 
 and affairs of such bank to be thoroughly examined. 
 
 Sec. 1 39. It shall be the duty of the board of directors of Examination of 
 every bank to examine fully into the books, papers and affairs of condition of 
 the bank of which they are directors, and particularly into the bank by 
 loans and discounts thereof, with a special view to ascertaining directors. 
 the value and security thereof, and of the collateral security, if 
 any given, in connection therewith, and into such other matters 
 as the superintendent of banks may require; such examination to be 
 made at least once a year, but no such subsequent yearly examinations 
 
52 N. W. HALSEY & CO. 
 
 shall be made within three months of the next preceding examination. 
 Such directors shall have power to employ such assistance 
 in making such examination as they may deem necessary. 
 Within ten days after the completion of such examination, a report 
 in writing thereof, sworn to by the directors making the same, shall 
 be made by the board of directors of such bank, and placed on file 
 with the records of said banks, and shall be subject to examination by 
 the superintendent of banks. 
 Report of Such report shall particularly contain a statement of the assets 
 
 examinations, and liabilities of the bank examined, as shown by its books, 
 together with any deductions from the assets, or additions to 
 liabilities, which such directors or committee, after such examination, 
 may determine to make. It shall also contain a statement, in detail, 
 of loans, if any, which in their opinion are worthless or doubtful, 
 together with their reasons for so regarding them; also a statement 
 of loans made on collateral security, which in their opinion are 
 insufficiently secured, giving in each case the amount of the loan, 
 the name and market value of the collateral, if it has any market 
 value, and, if not, a statement of that fact, and its actual value 
 as nearly as possible. Such report shall also contain a statement 
 of overdrafts, of the names and amounts of such as they consider 
 worthless or doubtful, and a full statement of such other matters 
 as affect the solvency and soundness of the bank. If the directors 
 of such bank shall fail to make, or cause to be made, and file 
 such report of examination in the manner and within the time 
 specified, the directors of such bank shall be guilty of a misdemeanor. 
 Report of 
 
 Supermendent 5^^ 140, jhg superintendent of banks shall report during 
 07 an/fs o ^^ ujQjith of October of each year, to the governor, for submission 
 
 to the next ensuing session of the legislature: 
 Summary of 1 . A summary of the state and condition of every bank required 
 conditions, to report to him, and from which reports have been received 
 the preceding year, with an abstract of the whole amount of capital 
 returned by them, the whole amount of their debts and liabilities, 
 and the total amount of means and resources, specifying the amount 
 of specie held by them at the time of the last report to him, and 
 such other information in relation to such banks as, in his judgment, 
 may be useful. 
 
BANK ACT OF CALIFORNIA 53 
 
 2. A statement of all banks authorized by him to do business A^en> ban{[s. 
 during the previous year, with their names and locations and 
 
 dates of incorporation, and particularly designating such as have 
 commenced business during the year. 
 
 3. A statement of the banks whose business has been closed Closed hanks. 
 during the year. 
 
 4. Any amendments to the banking law, which, in his judgment, Amendmenls. 
 may be desirable. 
 
 5. The names and compensation of all persons employed by Pay roll. 
 him, and the whole amount of the receipts and expenses of the 
 department during the year. 
 
 6. The names of banks placed in his hands in process of Banks in 
 liquidation, and the amount of dividends paid thereon. liquidation. 
 
 Such report, and the usual number of copies for the use of 
 the legislature, shall be printed and in readiness for distribution ' '"'"""^ of report. 
 by the state printer, and one thousand copies shall be printed for 
 the use of the department, the expense of which shall be charged 
 among the general expenses of the department. 
 
 Sec. 141. I. The superintendent of banks shall keep in his Information in 
 office, in a place accessible to the general public, a bulletin board Superintendent's 
 upon which he shall cause to be posted at noon on Friday of <'£"ce for public. 
 each week a detailed statement, signed by him or, in case of his 
 absence from San Francisco or inability to act, by the deputy 
 superintendent in charge, giving the following items of general 
 information with regard to the work of the department since the 
 preceding statement: 
 
 (a) The name of every bank that has filed in the banking [^{^i q* 
 department an application for authorization to commence business, applications. 
 its location and the date of filing of such application. 
 
 (fc) The name and location of every bank authorized by the Authorized 
 superintendent of banks to commence business, its capital, surplus, banks. 
 and the date of authorization. 
 
 (c) The name of every bank to which a certificate of authoriza- Banks refused 
 tion has been refused by the superintendent of banks, and the date authorization. 
 of notice of refusal. 
 
^4 N. W. HALSEY & CO . 
 
 Names of (J) The name and residence of every person appointed by the 
 
 employees, superintendent of banks as a deputy, examiner or employee in the 
 
 banking department, the title of the office to which appointed, 
 
 the compensation paid, and the date of appointment. 
 
 LMils Jor ^g^ yj^g j^jg Qjj which a call for a report by banks was 
 
 issued by the superintendent of banks, and the day designated 
 as the day with reference to which such report should be made. 
 Liquidated (/) The name and location of every bank whose creditors or 
 banlis. depositors have been paid in full by the superintendent of banks 
 and a meeting of whose stockholders shall have been called, 
 together with date of notice of meeting and date of meeting. 
 
 (g) The name and location of every bank subject to the banking 
 law whose affairs and business shall have been finally liquidated, 
 or in course of liquidation. 
 Lhange of ^^^ 'yhe name and location of every bank which has applied 
 for approval of a change of name, and the name proposed. 
 UuUeiins filed. 2. Every such bulletin, after having been posted as afoiesaid 
 for one week, shall be placed on a file for such statements, to be 
 kept in the office of the superintendent of banks. All such state- 
 ments shall be public documents, and at all reasonable times shall 
 be open to public inspection during usual banking hours. 
 
 Reports of .^^.t- «••! 111 -i 
 
 Superintendent SEC. 142. Every official report made by the supenntendenl 
 
 available as and every report duly verified of an examination made, shall be 
 
 evidence prima facie evidence of the facts therein stated, for all purposes 
 
 m court, jj^ j^ny action or proceeding wherein such bank is a party. 
 
 Neglect of Sec. 1 43. If the superintendent of banks shall have knowledge 
 
 o • . " 7 7 of the insolvency or unsafe condition of any bank mentioned in 
 Superintendent. . . i 1 • • r • ^• • • 1 i 1 
 
 this act, and that it is unsafe or inexpedient to permit said bank 
 
 to continue business, and shall neglect to forthwith take action as 
 
 provided in sections one hundred thirty-three, one hundred thirty- 
 
 » four, and one hundred thirty-six of this act, he shall be guilty of 
 
 a felony. 
 
 Penalties and Sec. 144. Whenever by the terms of this act a penalty or 
 
 forfeitures. fQffgjtu^g jg imposed, the same shall be recovered in an action 
 
 brought at the request of the superintendent of banks by the 
 
 attorney general, in the name of the people of the state, and 
 
BANK ACT OF CALIFORNIA 55 
 
 the sum recovered shall be paid into the state banking fund Articles of 
 and used in payment of claims against the said fund. incorporation. 
 
 Sec. 145. The powers, privileges, duties and restrictions 
 
 conferred and imposed upon any corporation or individual 
 
 existing and doing business under the laws of this state are 
 
 hereby abridged, enlarged or modified as each particular case p 
 
 may require, to conform to the provisions of this act, notwith- transactions 
 
 standing anything to the contrary in their respective articles of not affected b^ 
 
 incorporation or charters. The legality of investments here- this act. 
 
 tofore made, or of transactions heretofore had, pursuant to 
 
 any provisions of law in force when such investments were ^^i , 
 
 Lnanges of 
 
 made or transactions had, shall not be affected by the peo- investments to 
 visions of this act, nor shall such provisions require conform ma^ be 
 the changing of investments for those named in this act, gradual. 
 except as the same can be done gradually by the sale or 
 redemption of the securities so invested in, in such manner 
 as to prevent loss or embarrassment in the business of such 
 bank, or unnecessary loss or injury to the borrowers on 
 such security. 
 
 Sec. 146. All acts, or parts of acts, in conflict with this ^^'^ ^^^'^''^^• 
 act are hereby repealed. 
 
 Sec. 147. This act shall take effect July first, 1909. 
 
 I 
 
Public Deposit Ads of California 
 
 STATE DEPOSIT ACT 
 
 An Act to Authorize the Deposit of State Moneys in 
 Banks in this State, and to Repeal All Acts or 
 Parts of Acts in Conflict With This Act. 
 
 [Approved February 28, 1907.] 
 
 The people of the State of California, represented in senate and 
 assembly, do enact as follorvs: 
 
 Section 1. All moneys in the state treasury belonging to the Deposit of state 
 state not immediately required to meet current expenditures may moneys in hanks. 
 be deposited by the State treasurer to the credit of the state in 
 such state or national bank, or banks, in the state, as the treasurer, 
 with the approval of the governor and state controller, shall select 
 for the safe-keeping of such deposits, and any sum so deposited 
 shall be deemed to be in the state treasury; provided, that the bank 
 t or banks in which such money is deposited shall furnish security as Securit]f. 
 hereinafter provided, and provided further, that such depositary 
 bank or banks be selected from those agreeing to pay the highest 
 rate of interest, not less than two per centum per annum, for such Interest. 
 deposits, as may be determined by bids to be submitted at such 
 times and in such manner, as the treasurer, with the approval of 
 the governor and state controller, shall direct; provided, that not /ifjiount to be 
 more than one-tenth of the aggregate amount of state moneys deposited. 
 available for deposit and on deposit shall be deposited in any one 
 bank, and provided further, that such deposit shall not exceed 
 twenty-five per centum of the paid-up capital, exclusive of reserve 
 and surplus, of any depositary bank. Any and all bids may be 
 rejected by the treasurer, with the approval of the governor and 
 state controller, and new bids asked for. The expense of trans- n^^-^^ gt 
 portation of moneys to and from the state treasury to such depos- transporting 
 itaries shall be borne by such depositaries. Said deposits, with moneys. 
 
 Of Th 
 
 UNiVEP 
 
58 _^ N. W. HALSEY & CO. 
 
 interest thereon, shall be subject to withdrawal at any time upon 
 the demand of the state treasurer, or upon presentation of a certifi- 
 cate of deposit properly indorsed. 
 
 Interest, when Sec. 2. The interest to be paid by any such depositary bank 
 payable. ^}^q\\ jjg qj^ jj^g average daily balances of the state moneys kept on 
 deposit therewith, and shall be paid and credited to the state 
 monthly on the first day of each and every month, and such 
 interest shall accrue to the general fund of the state treasury; 
 School moneys. Provided that if any moneys belonging to the state school fund or 
 the state school land fund shall at any time be deposited under the 
 provisions of this act, the interest received thereon shall be paid 
 into the state school fund. 
 
 Security of Sec. 3. For the security of the funds deposited by the state 
 funds deposited, treasurer under the provisions of this act, there shall be 
 deposited with the treasurer bonds of the United States, 
 or of this state, or of any county, municipality or school 
 district within this state, which bonds shall be approved 
 by the governor, controller and treasurer, to an amount 
 in value at least ten per centum in excess of the amount of 
 the deposit with such bank or banks; and if in any case, 
 or at any time, such bonds are not deemed satisfactory 
 security to the governor, controller and treasurer, they 
 may require such additional security as may be satis- 
 factory to them. Said bonds or any part thereof may be 
 withdrawn on the written consent of the governor, con- 
 troller and treasurer; provided, that a sufficient amount 
 of said bonds to secure said deposits shall always be kept 
 in the treasury; and in the event that said bank or banks 
 of deposit shall fail to pay such deposits or any part 
 thereof on the demand of the state treasurer, or upon any 
 presentation of a certificate of deposit properly indorsed, 
 then it shall be the duty of the state treasurer to forthwith 
 convert said bonds into money and to disburse the same 
 according to law; provided, horvever, that he shall sell 
 no bonds for less than their face value except at public 
 sale after ten days' printed notice in some newspaper of 
 
PUBLIC DEPOSIT ACTS OF CALIFORNIA S2 
 
 general circulation published in the county where the sale 
 is to take place. 
 
 Sec. 4. The treasurer shall take from such depositary or depos- "fovisiom of 
 itaries a written contract, in duplicate setting forth the conditions and *'°" ^^^ ' 
 terms upon which the funds of the state are deposited therewith, 
 one of which shall be filed with the controller. One provision of 
 said contract shall be that each depositary shall at the end of each 
 month render to the treasurer a statement in duplicate showing the 
 daily balances or amount of money of the state held by it during 
 the month and the amount of the accrued interest thereon sepa- 
 rately, one of which shall be filed by the treasurer with the con- 
 troller. The treasurer shall annually on the first day of Tj-Msurer's 
 July furnish each depositary bank with a statement show- annual statement 
 ing the amount and description of the bonds on deposit to banks. 
 with him by such bank to secure state deposits. 
 
 Sec. 5. The treasurer, with the approval of the governor Indemnity) bonds. 
 and controller, shall, if in his judgment it shall appear 
 necessary for the security of the state, require said banks 
 of deposit to give an indemnity bond, the sureties on 
 which shall not be interested as stockholders in said bank 
 or banks, to be approved by the governor, controller and 
 treasurer, to secure the state against loss by any depre- 
 ciation in value that may occur in such bonds held by 
 him as security for the safe-keeping and prompt payment 
 of the state moneys in such depositaries. 
 
 Sec. 6. The state treasurer shall not be responsible for any Treasurer not 
 moneys deposited in a bank or in banks under the provisions of j^^^°"f' ^ 
 this act while the same remain there deposited with the consent 
 of the governor and controller; but the treasurer shall be charge- 
 able with the safekeeping, management and disbursement of the 
 bonds and certificates of deposit deposited with him as security 
 for deposits of State moneys, and with the interest thereon, and 
 the proceeds of any sale under the provisions of this act. 
 
 Sec. 7. At the time of depositing state moneys in any bank 
 designated as a depositary the treasurer shall take a certificate or 
 
 deposits. 
 
60 N. W. HALSEY & CO. 
 
 Certificates of certificate of deposits made payable to the treasurer of state in 
 
 deposit, such sum or sums as he shall deem advisable. Such certificate or 
 
 certificates of deposit in the possession of the treasurer shall be 
 
 deemed and counted as cash by the state board of examiners. 
 
 Warrants paid Controller's warrants drawn upon the state treasury may be paid 
 
 b}f certificates, by such certificates of deposit when properly indorsed by the 
 
 treasurer the same as in cash. 
 
 Act of 1905 Sec. 8. The act of March 20, 1905, entitled "An act to 
 
 repealed, authorize the deposit of state moneys in banks in this state, and 
 
 to repeal all acts or parts of acts in conflict with this act," and 
 
 all other acts or parts of acts in conflict with this act are hereby 
 
 expressly repealed. 
 
 COUNTY AND MUNICIPAL DEPOSIT ACT. 
 
 An Act to Provide for and Regulate the Deposit of 
 County and Municipal Moneys in Banks and Bank- 
 ing Corporations, Limiting the Amount of Public 
 Moneys that May Be Deposited Therein, and Pro- 
 viding A Penalty for the Illegal Deposit and Use 
 Thereof. 
 
 [Approved March 23, 1907.] 
 
 The people of the State of California, represented in senate and 
 assembly, do enact as follows: 
 
 Deposit of Section 1. All moneys belonging to any county or 
 
 public moneys, municipality within the state, may be deposited by any 
 
 other than state, officer of such county or municipality having the legal 
 
 in tjaniis. ^^stody of such county or municipal funds in any licensed 
 
 national bank, or banks, within this state, or in any bank, 
 
 banks or corporations authorized and licensed to do a 
 
 banking business, and organized under the laws of this 
 
 Security state, Provided that such bank or banks in which such 
 
 required, moneys are deposited shall furnish as security for such 
 
 deposits, bonds of the United States, or of this state, or 
 
 of any county, municipality or school district within this 
 
PUB LIC DEPOSIT ACTS OF CALIFORNIA 61 
 
 state, approved by the officer making the deposit and the 
 district attorney for the county or city attorney for the 
 municipality to which the deposit belongs. The market 
 value of the bonds furnished as security, shall be at least 
 ten per cent in excess of the amount of the deposit secured 
 thereby; but the amount of the deposit shall in no case 
 exceed the face value of the bonds furnished as security 
 therefor; and provided, that such bank, or banks, shall 
 pay a reasonable rate of interest, not less than two per 
 cent per annum on the daily balances therein deposited. 
 
 Sec. 2. The rate of interest shall be fixed annually as herein Rate of interest 
 provided in the month of January of each year on all deposits to ^^ "^ fixed, ivnen. 
 be made for such year; provided, that the rate of interest for the 
 year ending December 31st, 1907, may be fixed as herein pro- 
 vided within ninety days after this act goes into effect. The rate 
 of interest shall be fixed in the case of counties, by the treasurer, 
 auditor, and chairman of the board of supervisors, and in the case 
 of municipalities by the treasurer, auditor, (or clerk of munici- 
 palities having no auditor) and chairman of the council or other 
 governing body of such municipality. Said rate of interest shall J[{ifi{fjmfn fate. 
 be a reasonable rate and not less than two per cent per annum 
 on the daily balances deposited; and the rate of interest so estab- 
 lished for each year as herein provided, shall be the uniform rate 
 of interest required from all banks receiving deposits from the 
 county or municipality, for that year. 
 
 Interest on all moneys deposited as herein provided for shall Interest, "Ofhen 
 belong to the county or municipality represented by the officer payable. 
 making such deposit and shall be paid quarterly into the general 
 fund of such county or municipality except where the law other- 
 wise directs. 
 
 Sec. 3. It shall be the duty of the officer making the deposit. Receipt for 
 to receive from the bank in which the deposit is made, a receipt deposit. 
 or receipts in duplicate showing the date and amount of deposit 
 and rate of interest to be paid thereon, one copy of which 
 said officer shall keep on file in his office and he shall file one copy 
 
62 N. W. HALSEY & CO. 
 
 with the auditor of the county or auditor of the municipality (or 
 clerk in municipalities having no auditor) as the case may be. 
 
 Record of Sec. 4. Every treasurer shall keep a record in his office which 
 
 deposits, shall be open to public inspection, showing at all times the amount 
 
 of money on deposit and all banks in which the same is deposited, 
 
 and dates of deposit. Also a record of all banks making application 
 
 for the deposit of the public funds. 
 
 Amount that Sec. 5. The total amount of public moneys on deposit in any 
 ma\) be bank, shall not at any one time exceed fifty per cent of the paid-up 
 deposited, capital stock of such depositary bank or banks. No officer shall 
 have on deposit at any one time more than ten per cent of the 
 public moneys under his control and available for deposit in any 
 bank while there are other qualified banks requesting such deposits; 
 provided, that no treasurer of a county, or municipality, shall be 
 required to deposit public moneys in any bank outside of the county 
 owning the money or in which the municipality is situated. 
 
 Receipts to he Sec. 6. The receipt issued by any bank for deposits made 
 
 counted as cash, therein, together with the bonds held as security therefor, shall be 
 
 held by the treasurer making the deposit and be recognized and 
 
 counted as cash to the amount recited in the receipt by the officers 
 
 required by law to count the same. 
 
 Deposits subject Sec. 7. Deposits, with interest thereon, shall be subject 
 to call, to withdrawal on demand of the treasurer making the 
 same, or his successors in office, and any bank receiving 
 the deposit of public moneys, may at any time return the 
 same to the public officer making such deposit, together 
 with interest to date of return, and it shall be the duty 
 of the public officer upon receiving the return of such 
 deposit, to immediately return to such bank all bonds held 
 as security for the deposit returned. 
 
 When any officer withdraws his deposit he shall return, 
 on demand of the bank, such bonds as were held as 
 security for the deposit or portion thereof withdrawn. 
 
 On fadure of Sec. 8. Should any bank fail to pay any public moneys 
 anii repa^, j^^j^ ^^ deposit as herein provided, the officer making such 
 security to be ^ , ^ ^ , , . . , , , 
 
 sold deposit may, after ten days written notice to such bank, 
 
PUBLIC DEPOSIT ACTS OF CALIFORNIA 63 
 
 proceed to sell at public or private sale, such of the bonds 
 held by him as security as he may see fit; provided, 
 however, that he shall sell no bonds for less than their 
 face value except at public sale after ten days' printed 
 notice in some newspaper of general circulation published 
 in the county where the sale is to take place. The pro- 
 ceeds of such sale, after paying all expenses, shall be 
 credited to the account of the bank which deposited the 
 bonds as collateral. Any bank failing to make payment, 
 may, at any time before the sale of the bonds is com- 
 pleted, stop such sale by repaying all the moneys deposited 
 with it, together with any expense that may have been 
 incurred by the officer making such deposit, as the result 
 of such failure. Should the proceeds of any such sale fail to 
 fully repay any deposit, the balance remaining unpaid may 
 be collected in an action of law in the name of the officer 
 making the deposit. 
 
 Sec. 9. Public officials shall not be responsible for any loss of p„iL/,v oihcials 
 public moneys resulting from the deposit thereof when made in not responsible 
 accordance with the provisions of this act. It shall be the duty for loss. 
 of the officer making the deposit to safely keep all evidence of 
 indebtedness issued by banks for deposits made therein, and bonds 
 deposited for security and such public officer shall be responsible 
 for such evidence of indebtedness, and for bonds held as security 
 therefor, together with the interest thereon and the proceeds of any 
 sale of such bonds; and the city, county or municipality for which 
 said officer acts, shall be responsible to such bank for the safe 
 return of the securities furnished by it to such officer. 
 
 Sec. 10. The expenses of transportation of moneys to or from Transtoortation 
 the state, county or municipal treasuries to such depositaries shall of moneys, 
 be borne by such depositaries. 
 
 Sec. 1 1 . The making of profit out of county, city, town or yiolaiion of act 
 other public moneys, or using the same for any purpose not author- a felon}f. 
 ized by law by any officer having possession or control thereof, 
 shall be a felony. Any violation of the provisions of this act by 
 a bank or a banking corporation, shall be punishable by a fine not 
 exceeding five hundred dollars for each offense, and the officers 
 
64 N. W. HALSEY & CO. 
 
 Present lal)>s ^^ such bank or banking corporation and officer receiving such 
 not abrogated, deposit shall be guilty of a felony. 
 
 Sec. 12. Nothing in this act contained shall prevent any 
 county or municipality within this state from buying 
 bonds or otherwise investing its money in any manner 
 now provided by law and nothing herein contained as to 
 the disposition of interest on public moneys deposited shall 
 apply to any money received or held by any county or 
 municipality wherein any law provides for the payment 
 of interest or profit thereon, into any particular fund. 
 
 Sec. 13. All acts or parts of acts in conflict with this act are 
 hereby repealed. 
 
 Sec. 14. This act shall take effect immediately. 
 
National Bank Act as Amended 
 
 Chapter One. 
 THE CURRENCY BUREAU. 
 
 1. Sec. 1 of the act of June 20, 1874, provides that the act The 
 entitled "An act to provide a national currency secured by a pledge national-bank 
 of United States bonds, and to provide for the circulation and '^^^^ 
 redemption thereof," approved June third, eighteen hundred and 
 
 sixty-four, shall hereafter be known as the "National-bank act." 
 
 2. (Sec. 324.) There shall be in the Department of the Comptroller of 
 Treasury a Bureau charged with the execution of all laws passed the Currency. 
 by Congress relating to the issue and regulation of a national 
 
 currency secured by United States bonds, the chief officer of which 
 Bureau shall be called the Comptroller of the Currency, and shall 
 perform his duties under the general direction of the Secretary of 
 the Treasury. 
 
 3. (Sec. 325.) The Comptroller of the Currency shall be His appointment, 
 appointed by the President, on the recommendation of the Secretary term, and salary. 
 of the Treasury, by and with the advice and consent of the Senate, 
 
 and shall hold his office for the term of five years, unless sooner 
 removed by the President, upon reasons to be communicated by 
 him to the Senate; and he shall be entitled to a salary of five 
 thousand dollars a year. 
 
 4. (Sec. 326.) The Comptroller of the Currency shall, within //^ qualification. 
 fifteen days from the time of notice of his appointment, take and 
 
 subscribe the oath of office; and he shall give to the United 
 States a bond in the penalty of one hundred thousand dollars, 
 with not less than two responsible sureties, to be approved by the 
 
66 N. W. HALSEY & CO. 
 
 Secretary of the Treasury, conditioned for the faithful discharge of 
 the duties of his office. 
 
 Deputy; 5. (Sec. 327.) There shall be in the Bureau of the Comp- 
 comptroUer. troller of the Currency a Deputy Comptroller of the Currency, to 
 be appointed by the Secretary, who shall be entitled to a salary 
 of two thousand eight hundred dollars a year (increased to three 
 thousand five hundred dollars), and who shall possess the power 
 and perform the duties attached by law to the office of Comptroller 
 during a vacancy in the office or during the absence or inability 
 of the Comptroller. The Deputy Comptroller shall also take tlie 
 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. 
 
 Interest in 6. (Sec. 329.) It shall not be lawful for the Comptroller or 
 national banks t^g Deputy Comptroller of the Currency, either directly or indirectly, 
 ' to be interested in any association issuing national currency under the 
 laws of the United States. 
 
 Oj^ce clerks. 7. (Sec. 328.) The Comptroller of the Currency shall employ, 
 from time to time, the necessary clerks, to be appointed and classified 
 by the Secretary of the Treasury, to discharge such duties as the 
 Comptroller shall direct. 
 
 Seal of office. 8. (Sec. 330.) The seal devised by the Comptroller of the 
 Currency for his office, and approved by the Secretary of the 
 Treasury, shall continue to be the seal of office of the Comptroller, 
 and may be renewed when necessary. A description of the seal, 
 with an impression thereof, and a certificate of approval of the 
 Secretary of the Treasury, shall be filed in the office of the 
 Secretary of State. 
 
 Officers, 9. (Sec. 331.) There shall be assigned, from time to time, to 
 vaults, etc. the Comptroller of the Currency, by the Secretary of the Treasury, 
 suitable rooms in the Treasury building for conducting the business 
 of the Currency Bureau, containing safe and secure 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 Comp- 
 troller shall from time to time furnish the necessary furniture. 
 
NATIONAL BANK ACT 67 
 
 stationery, fuel, lights, and other proper conveniences for tlie 
 transaction of the business of his office. 
 
 10. (Sec. 333.) The Comptroller of the Currency shall make Annual report. 
 an annual report to Congress, at the commencement of its session, 
 
 exhibiting — 
 
 First. A summary of the state and condition of every asso- Condition of 
 ciation from which reports have been received the preceding year, national banlis. 
 at the several dates to which such reports refer, with an abstract 
 of the whole amount of banking capital returned by them, of the 
 whole amount of their debts and liabilities, the amount of circu- 
 lating notes outstanding, and the total amount of means and 
 resources, specifying the amount of lawful money held by them 
 at the times of their several returns, and such other information in 
 relation to such associations as in his jugdment may be useful. 
 
 Second. A statement of the associations whose business has Closed banks. 
 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 Amendments 
 which the system may be improved and the security of the holders proposed. 
 of its notes and other creditors may be increased. 
 
 Fourth. A statement exhibiting under appropriate heads the Condition of 
 resources and liabilities and condition of the banks, banking com- other ban^s. 
 panies, and savings banks organized under the laws of the several 
 States and Territories, such information to be obtained by the 
 Comptroller from the reports made by such banks, banking com- 
 panies, and savings banks to the legislatures or officers of the 
 different States and Territories, and, where such reports can not 
 be obtained, the deficiency to be supplied from such other authentic 
 sources as may be available. 
 
 Fifth. The names and compensation of the clerks employed by Employees and 
 him, and the whole amount of the expenses of the banking depart- expenses, 
 ment during the year. 
 
 11. (Sec. 3811.) When the Annual Report of the Comptroller When annual 
 of the Currency upon the national banks and banks under State report is printed. 
 and Territorial laws is completed, or while it is in process of 
 
 completion, if thereby the business may be sooner dispatched, the 
 
68 N. W. HALSEY & CO. 
 
 work of printing shall be commenced, under the superintendence of the 
 Secretary, and the whole shall be printed and ready for delivery 
 on or before the first day of December next after the close of the 
 year to which the report relates. 
 
 Number of 12. The act of January 12, 1895, provides that there shall be 
 
 copies to be printed of the Annual Report of the Comptroller of the Currency 
 
 prmtea. ^^^ thousand copies; one thousand for the Senate, two thousand for 
 
 the House, and seven thousand for distribution by the Comptroller 
 
 of the Currency. 
 
 Chapter Two. 
 
 ORGANIZATION AND POWERS OF NATIONAL 
 
 BANKS. 
 
 Articles of l^- (Sec. 5133.) Associations for carrying on the business of 
 association, banking under this title may be formed by any number of natural 
 persons, not less in any case than five. They shall enter into 
 articles of association, which shall specify in general terms the 
 object for which the association is formed, and may contain any 
 other provisions, not inconsistent with law, which the association 
 may see fit to adopt for the regulation of its business and the 
 conduct of its affairs. These articles shall be signed by the 
 persons uniting to form the association, and a copy of them shall 
 be forwarded to the Comptroller of the Currency, to be filed and 
 preserved in his office. 
 
 Organization 14. (Sec. 5134.) The persons uniting to form such an asso- 
 certificate. ciation shall, under their hands, make an organization certificate, 
 which shall specifically state — 
 
 Title. First. The name assumed by such association; which shall be 
 subject to the approval of the Comptroller of the Currency. 
 
 Location. Second. The place where its operations of discount and deposit 
 are to be carried on, designating the State, Territory, or District, and 
 the particular county and city, town or village. 
 
 Capital stock. Third. The amount of capital stock and the number of shares 
 into which the same is to be divided. 
 
NATIONAL BANK ACT ^ 
 
 Fourth. The names and places of residence of the shareholders Shareholders. 
 and the number of shares held by each of them. 
 
 Fifth. The fact that the certificate is made to enable such Object of 
 persons to avail themselves of the advantages of this Title. cerhjicale. 
 
 15. (Sec. 5135.) The organization certificate shall be acknowl- Execution of 
 edged before a judge of some court of record or notary public, organization 
 and shall be, together with the acknowledgment thereof, authenti- ^^rlijicate. 
 cated by the seal of such court or notary, transmitted to the Comp- 
 troller of the Currency, who shall record and carefully preserve the 
 
 same in his office. 
 
 16. (Sec. 5136.) Upon duly making and filing articles of Corporate 
 association and an organization certificate, the association shall poJ^c*** 
 become, as from the date of the execution of its organization 
 certificate, a body corporate, and as such, and in the name desig- 
 nated in the organization certificate, it shall have power — 
 
 First. To adopt and use a corporate seal. Seal. 
 
 Second. To have succession for the period of twenty years from Term of 
 its organization, unless it is sooner dissolved according to the provisions existence. 
 of its articles of association, or by the act of its shareholders owning 
 two-thirds of its stock, or unless its franchise becomes forfeited by 
 some violation of law. 
 
 Third. To make contracts. Contracts. 
 
 Fourth. To sue and be sued, complain and defend, in any Suits. 
 court of law and [or] equity, as fully as natural persons. 
 
 Fifth. To elect or appoint directors, and by its board of directors Officers. 
 to appoint a president, vice-president, cashier, and other officers, 
 define their duties, require bonds of them and fix the penalty thereof, 
 dismiss such officers or any of them at pleasure, and appoint others 
 to fill their places. 
 
 Sixth. To prescribe, by its board of directors, by-laws not By^-Lants. 
 inconsistent with law, regulating the manner in which its stock shall 
 be transferred, its directors elected or appointed, its officers appointed, 
 its property transferred, its general business conducted, and the 
 privileges granted to it by law exercised and enjoyed. 
 
70 N. W. HALSEY & CO. 
 
 Incidental Seventh. To exercise by its board of directors, or duly authorized 
 powers, officers or agents, subject to law, all such incidental powers as shall 
 be necessary to carry on the business of banking ; by discounting and 
 negotiating promissory notes, drafts, bills of exchange, and other 
 evidences of debt; by receiving deposits; by buying and selling 
 exchange, coin, and bullion; by loaning money on personal security; 
 and by obtaining, issuing, and circulating notes according to the 
 provisions of this Title; but no association shall transact any business 
 except such as is incidental and necessarily preliminary to its organ- 
 ization until it has been authorized by the Comptroller of the Cur- 
 rency to commence the. business of banking. 
 
 Amount of 17. (Sec. 5138, as amended by act of March 14, 1900.) No 
 Capital stock association shall be organized with a less capital than one hundred 
 required, thousand dollars, except that banks with a capital of not less than 
 fifty thousand dollars may, with the approval of the Secretary of 
 the Treasury, be organized in any place the population of which 
 does not exceed six thousand inhabitants, and except that banks 
 with a capital of not less than twenty-five thousand dollars may, 
 with the sanction of the Secretary of the Treasury, be organized 
 in any place the population of which does not exceed three thousand 
 inhabitants. No association shall be organized in a city the popu- 
 lation of which exceeds fifty thousand persons with a capital of 
 less than two hundred thousand dollars. 
 
 Shares of stock. 1 8- (Sec. 5 1 39.) The capital stock of each association shall be 
 divided into shares of one hundred dollars each, and be deemed per- 
 sonal property, and transferable on the books of the association in such 
 manner as may be prescribed in the by-laws or articles of association. 
 Every person becoming a shareholder by such transfer shall, in propor- 
 tion to his shares, succeed to all the rights and liabilities of the prior 
 holder of such shares. 
 
 Payment of 19. (Sec. 5140.) At least fifty per centum of the capital 
 capital slock, stock of every association shall be paid in before it shall be author- 
 ized to commence business; and the remainder of the capital stock 
 of such association shall be paid in installments of at least ten 
 per centum each, on the whole amount of the capital, as frequently 
 
NATIONAL BANK ACT 71 
 
 as one installment at the end of each succeeding month from the 
 time it shall be authorized by the Comptroller of the Currency to 
 commence business; and the payment of each installment shall be 
 certified to the Comptroller, under oath, by the president or cashier 
 of the association. 
 
 20. (Sec. 5141.) Whenever any shareholder, or his assignee. Enforcing 
 fails to pay any installment on the stock when the same is required payment of 
 by the preceding section to be paid, the 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 
 published 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 adver- 
 tisement and sale; and the excess, if any, shall be paid to the 
 delinquent shareholder. If no bidder can be found who will pay 
 for such stock the amount due thereon to the association, and the 
 cost of advertisement and sale, the amount previously paid shall 
 be forfeited to the association, and such stock shall be sold as the 
 directors may order, within six months from the time of such 
 forfeiture, and if not sold it shall be canceled and deducted from 
 the capital stock of the association. 
 
 21. (Sec. 5141.) If any such cancellation and reduction shall Restoration of 
 reduce the capital of the association below the minimum of capital capital. 
 required by law, the capital stock shall, within thirty days from 
 
 the date of such cancellation, be increased to the required amount; 
 in default of which a receiver may be appointed, according to the 
 provisions of section fifty-two hundred and thirty-four, to close up 
 the business of the association. 
 
 22. (Sec. 5168.) Whenever a certificate is transmitted to the Examination of 
 Comptroller of the Currency, as provided in this Title, and the organization 
 association transmitting the same notifies the Comptroller that at P''ocee</mgs. 
 least fifty per centum of its capital stock has been duly paid in, 
 
 and that such association has complied with all the provisions of 
 this Title required to be complied with before an association shall 
 
72 N. W. HALSEY & CO. 
 
 be authorized to commence the business of banking, the Comptroller 
 shall examine into the condition of such association, ascertain 
 especially the amount of money paid in on account of its capital, 
 the name and place of residence of each of its directors, and the 
 amount of the capital stock of which each is the owner in good 
 faith, and generally whether such association has complied with 
 all the provisions of this Title required to entitle it to engage in 
 the business of banking. 
 
 Certificate of 23. (Sec. 5168.) And shall cause to be made and attested 
 
 officers and by the oaths of a majority of the directors, and by the president 
 
 directors. ^^ cashier of the association, a statement of all the facts necessary 
 
 to enable the Comptroller to determine whether the association is 
 
 lawfully entitled to commence the business of banking. 
 
 Deposit of 24. (Sec. 5159.) Every association, after having complied 
 United States with the provisions of this Title, preliminary to the com- 
 bonds. mencement of the banking business, and before it shall 
 be authorized to commence banking business under this 
 Title, _shaU_transfer and deliver to jth-C Treasurer of the 
 United States, as security for its circulating notes, any 
 United States registered bonds bearing interest, to an 
 amount where the capital is one hundred and fifty thousand 
 dollars or less, of not less than one-fourth of the capital, 
 and fifty thousand dollars where the capital is in excess 
 of one hundred and fifty thousand dollars. (Note. — As 
 amended by sec. 8 of the act of July 12, 1882.) 
 
 Comptroller's 25. (Sec. 5169.) If, upon a careful examination of the facts 
 certificate of so reported, and of any other facts which may come to the knowl- 
 authorit^. ^jg^ ^f jj^g Comptroller, whether by means of a special com- 
 mission appointed by him for the purpose of inquiring into the 
 condition of such association, or otherwise, it appears that such 
 association is lawfully entitled to commence the business of banking, 
 the Comptroller shall give to such association a certificate, under his 
 hand and official seal, that such association has complied with all 
 the provisions required to be complied with before commencing the 
 business of banking, and that such association is authorized to 
 commence such business. But the Comptroller may withhold from 
 an association his certificate authorizing the commencement of 
 
NATIONAL BANK ACT 73 
 
 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. 
 
 26. (Sec. 5170.) The association shall cause the certificate Publication of 
 issued under the preceding section to be published in some news- certificate of 
 paper 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 news- 
 paper published nearest thereto. 
 
 27. (Sec. 5145.) The affairs of each association shall be Numher and 
 
 managed by not less than five directors, who shall be elected by ^'5^"^" °i 
 
 clircctoTs 
 the shareholders at a meeting to be held at any time before the 
 
 association is authorized by the Comptroller of the Currency to 
 
 commence the business of banking, and afterward at meetings to be 
 
 held on such day in January of each year as is specified therefor in 
 
 the articles of association. The directors shall hold office for one 
 
 year, and until their successors are elected and have qualified. 
 
 28. (Sec. 5146. as amended February 28, 1905.) Every Qualifications of 
 director must, during his whole term of service, be a citizen of the """actors. 
 United States, and at least three-fourths of the directors must have 
 
 resided in the State, Territory, or District in which the association 
 is located for at least one year immediately preceding their election, 
 and must be residents therein during their continuance in office. 
 Every director must own, in his own right, at least ten shares of 
 the capital stock of the association of which he is a director, 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. 
 
 29. Sec. 17 of the act of May 2, 1 890, provides "that the Qualifications of 
 provisions of Title sixty-two of the Revised Statutes of the United directors in 
 States relating to national banks, and all amendments thereto, shall ^'c'Q"oma. 
 have the same force and effect in the Territory of Oklahoma as 
 
 elsewhere in the United States: 
 
74 N. W. HALSEY & CO. 
 
 " Provided t That persons otherwise qualified to act as directors 
 shall not be required to have resided in said Territory for more 
 than three months immediately preceding their election as such." 
 
 Qualifications of 30. (Sec. 5144.) In all elections of directors, and in deciding 
 voters at j^j| questions at meetings of shareholders, each shareholder shall be 
 entitled to one vote on each share of stock held by him. Share- 
 holders may vote by proxies duly authorized in writing; but no 
 officer, clerk, teller, or bookkeeper of such association shall act as 
 proxy; and no shareholder whose liability is past due and unpaid 
 shall be allowed to vote. 
 
 Oaths of 31 (Sec. 5147.) Each director, when appointed or elected, 
 shall take an oath that he will, so far as the duty devolves on him, 
 dihgently and honestly administer the affairs of such association, 
 and will not knowingly violate, or willingly permit to be violated, 
 any of the provisions of this Title, and that he is the owner in 
 good faith, and in his own right, of the number of shares of stock 
 required by this Title, subscribed by him, or standing in his name 
 on the books of the association, and that the same is not hypoth- 
 ecated or in any way pledged as security for any loan or debt. 
 Such oath, subscribed by the director making it, and certified by 
 the officer before whom it is taken, shall be immediately transmitted 
 to the Comptroller of the Currency, and shall be filed and pre- 
 served in his office. 
 
 Failure to hold 32. (Sec. 5149.) If, from any cause, an election of directors 
 annual election, jg jj^j made at the time appointed, the association shall not for that 
 cause be dissolved, but an election may be held on any subsequent 
 day, thirty days' notice thereof in all cases having been given in 
 a newspaper published in the city, town, or county in which the 
 association is located; and if no newspaper is published in such 
 city, town, or county such notice shall be published in a newspaper 
 published nearest thereto. If the articles of association do not fix the 
 day on which the election shall be held, or if no election is held 
 on the day fixed, the day for the election shall be designated by 
 the board of directors in their by-laws, or otherwise; or if the 
 directors fail to fix the day, shareholders representing two-thirds 
 of the shares may do so. 
 
NATIONAL BANK ACT 75 
 
 33. (Sec. 5148.) Any vacancy in the board shall be filled by Vacancies in 
 appointment by the remaining directors, and any director so board of 
 appointed shall hold his place until the next election. directors. 
 
 34. (Sec. 5150.) One of the directors, to be chosen by the President shall 
 board, shall be the president of the board. ^^ ^ director. 
 
 35. (Sec. 5185.) Associations may be organized in the man- Organization of 
 ner prescribed by this Title for the purpose of issuing notes payable Sold banks. 
 
 in gold. 
 
 36. The act of February 14, 1880, provides that any national Conversion of 
 gold bank organized under the provisions of the laws of the United gold banl(S. 
 States may, in the manner and subject to the provisions prescribed 
 
 by section fifty-one hundred and fifty-four of the Revised Statutes 
 of the United States, for the conversion of banks incorporated under 
 the laws of any State, cease to be a gold bank and become such an 
 association as is authorized by section fifty-one hundred and thirty- 
 three, for carrying on the business of banking, and shall have the 
 same powers and privileges, and shall be subject to the same duties, 
 responsibilities, and rules, in all respects, as are by law prescribed 
 for such associations: Provided, That all certificates of organization 
 which shall be issued under this act shall bear the date of the 
 original organization of each bank respectively as a gold bank. 
 
 37. (Sec. 5154.) Any bank incorporated by special law, or Conversion of 
 any banking institution organized under a general law of any State, state banks. 
 may become a national association under this Title by the name 
 
 prescribed in its organization certificate; and in such case the articles 
 of association and the organization certificate may be executed by 
 a majority of the directors of the bank or banking institution; and 
 the certificate shall declare that the owners of two-thirds of the 
 capital stock have authorized the directors to make such certificate, 
 and to change and convert the bank or banking institution into a 
 national association. A majority of the directors, after executing the 
 articles of association and organization certificate, shall have power 
 to execute all other papers, and to do whatever may be required to 
 make its organization perfect and complete as a national association. 
 The shares of any such bank may continue to be for the same 
 amount each as they were before the conversion, and the directors may 
 
76 N. W. HALSEY & CO. 
 
 continue to be the directors of the association until others are elected 
 or appointed in accordance with the provisions of this chapter; and 
 any State bank which is a stockholder in any other bank, by 
 authority of State laws, may continue to hold its stock, although 
 either bank, or both, may be organized under and have accepted 
 the provisions of this Title. When the Comptroller of the Currency 
 has given to such association a 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 asso- 
 ciation shall have the same powers and privileges, and shall be 
 subject to the same duties, responsibilities, and rules, in all respects, 
 as are prescribed for other associations, originally organized as 
 national banking associations, and shall be held 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. 
 
 Capital of 38. (Sec. 3410.) The capital of any State bank or banking 
 
 state banlis. association which has ceased or shall cease to exist, or which has 
 
 been or shall be converted into a national bank, shall be assumed 
 
 to be the capital as it existed immediately before such bank ceased 
 
 to exist or was converted as aforesaid. 
 
 Converted banks 39. (Sec. 5155.) It shall be lawful for any bank or banking 
 ma\) retain association, organized under State laws and having branches, the 
 orancnes. ^j^pj^^] being joint and assigned to and used by the mother bank 
 and branches in definite proportions, to become a national banking 
 association in conformity with existing laws and to retain and keep 
 in operation its branches, or such one or more of them as it may 
 elect to retain, the amount of the circulation redeemable at the 
 mother bank and each branch to be regulated by the amount of 
 capital assigned to and used by each. 
 
 Personal liahilit\f 40. (Sec. 5151.) The shareholders of every national banking 
 of shareholders, association shall be held individually responsible, equally and 
 ratably, and not one for another, for all contracts, debts, and 
 engagements of such association to the extent of the amount of their 
 stock therein, at the par value thereof, in addition to the amount 
 invested in such shares, except that shareholders of any banking 
 
NATIONAL BANK ACT 77 
 
 association now existing under State laws having not less than five 
 millions of dollars of capital actually paid in and a surplus of 
 twenty per centum on hand, both to be determined by the Comp- 
 troller of the Currency, shall be liable only to the amount invested 
 in their shares; and such surplus of twenty per centum shall be 
 kept undiminished, and be in addition to the surplus provided for 
 in this Title; and if at any time there is a deficiency in such 
 surplus of twenty per centum such association shall not pay any 
 dividends to its shareholders until the deficiency is made good; and 
 i^base of such deficiency the Comptroller of the Currency may 
 compel the association to close its business and wind up its affairs 
 under the provisions of chapter four of this Title. 
 
 41. (Sec. 5152.) Persons holding stock as executors, adminis- Exceptions for 
 trators, guardians, or trustees shall not be personally subject to any trustees, etc. 
 liability as stockholders; but the estates and funds in their hands 
 
 shall be liable in like manner and to the same extent as the testator, 
 intestate, ward, or person interested in such trust funds would be if 
 living and competent to act and hold the stock in his own name. 
 
 42. Sec. 5 1 39 provides that no change shall be made in the Amendment 
 articles of association of a national bank by which the rights, of articles 
 remedies, or security of the existing creditors of the association shall restricted. 
 be impaired. 
 
 43. (Sec. 5142.) Any association formed under this Title Increase of 
 may, by its articles of association, provide for an increase of its capital stock- 
 capital from time to time, as may be deemed expedient, subject to 
 
 the limitations of this Title. But the maximum of such increase 
 to be provided in the articles of association shall be determined by 
 the Comptroller of the Currency. Sec. 1 of the act of May 1, 
 1886, provicles_jhat any national banking association may, with 
 the approval of the Comptroller of the Currency, by the vote of 
 shareholders owning t wo-thirds of the stock of such association, 
 increase its capital stock, in accordance with existing laws, to any 
 sum approved by the said Comptroller, notwithstanding the limit 
 fixed in its original articles of association and determined by said 
 Comptroller; and no increase of the capital stock of any national 
 banking association either within or beyond the limit fixed in its 
 
78 N. W. HALSEY & CO. 
 
 original articles of association shall be made except in the manner 
 herein provided. 
 
 When increase 44. (Sec. 5142.) And no increase of capital shall be valid 
 becomes vaiia. yjjfjj jj^g ^^ole 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. 
 
 Reduction of 45, (Sec. 5143.) Any association formed under this IWe 
 capital stocl(. may, by the vote of shareholders owning two-thirds of its capital 
 stock, reduce its capital to any sum not below the amount required 
 by this Title to authorize the formation of associations, but no such 
 reduction shall be allowable which will reduce the capital of the 
 association below the amount required for its outstanding circulation, 
 nor shall any such reduction be made until the amount of the proposed 
 reduction has been reported to the Comptroller of the Currency and 
 his approval thereof obtained. 
 
 Change of title 46. Sees. 2, 3, and 4 of the act of May 1, 1886, provide: 
 and location. 
 
 Sec. 2. That any national banking association may change its 
 
 name or the place where its operations of discount and deposit are 
 to be carried on to any other place within the same State, not more 
 than thirty miles distant, with the approval of the Comptroller of 
 the Currency, by the vote of shareholders owning two-thirds of the 
 stock of such association. A duly authenticated notice of the vote 
 and of the new name or location selected shall be sent to the office 
 of the Comptroller of the Currency, but no change of name or 
 location shall be valid until the Comptroller shall have issued his 
 certificate of approval of the same. 
 
 Sec. 3. That all debts, liabilities, rights, provisions, and powers 
 of the association under its old name shall devolve upon and inure 
 to the association under its new name. 
 
 Sec. 4. That nothing in this act contained shall be so construed 
 as in any manner to release any national banking association under 
 its old name or at its old location from any liability, or affect any 
 
NATIONAL BANK ACT 79 
 
 action or proceeding in law in which said association may be or 
 become a party or interested. 
 
 47. (Sec. 5156.) That nothing in this title shall affect any Status of national 
 appointments made, acts done, or proceedings had or commenced banks organized 
 prior to the third day of June, eighteen hundred and sixty-four, under the act of 
 in or toward the organization of any national banking association ; oV^*"^^ 
 
 under the act of February twenty-five, eighteen hundred and sixty- 
 three; but ail associations which on the third day of June, eighteen 
 hundred and sixty-four, were organized or commenced to be 
 organized under that act shall enjoy all the rights and privileges 
 granted, and be subject to all the duties, liabilities, and restrictions 
 imposed by this Title, notwithstanding all the steps prescribed by 
 this Title for the organization of associations were not pursued, if 
 such associations were duly organized under that act. 
 
 Note — See page 161 for Additional Circulation Act of May 
 30. 1908. 
 
 Chapter Three. 
 BANK CIRCULATION. 
 
 48. (Sec. 5158.) The term "United States Bonds," as United States 
 used throughout this chapter, shall be construed to mean bonds defined. 
 registered bonds of the United States, 
 
 49. (Sec. 5159 as amended by section 8, act of July 12, Security) for 
 1882, and section 1, act of December 21, 1905.) Every circulation. 
 association, after having complied with the provisions of 
 
 this Title, preliminary to the commencement of the bank- 
 ing business, and before it shall be authorized to com- 
 mence banking business under this Title, shall transfer and 
 deliver to the Treasurer of the United States any United 
 States registered bonds, bearing interest, or Panama canal 
 bonds, to an amount not less than one-fourth of the 
 capital, the capital being $150,000 or less, as security for 
 their circulating notes. Such bonds shall be received by 
 the Treasurer upon deposit and shall be by him safely 
 kept in his office until they shall be otherwise disposed 
 of in pursuance of the provisions of this Title. 
 
80 N. W. HALSEY & CO. 
 
 Section 4, act of June 20, 1874, provides in part that the 
 amount of bonds on deposit for circulation shall not 
 be reduced below $50,000. This determines the amount 
 of bonds required to be deposited by banks organizing 
 with capital stock of over $150,000. 
 
 (See sec. 5159 of the United States Revised Statutes; 
 Sec. 4, act of June 20, 1874; sec 8, act of July 12, 1882, 
 and act of March 14, 1900, as to relation of bond deposit 
 to capital.) 
 
 Relation of 50. (Sec. 5160.) The deposit of bonds made by each 
 bond deposit association shall be increased as its capital may be paid 
 to capital, yp Qj. increased, so that every association shall at all 
 times have on deposit with the Treasurer registered United 
 States bonds to the amount required by law. 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 the amount required by 
 law, and upon which no circulating notes have been 
 delivered. 
 
 Exchange of 51. (Sec. 5161.) To facilitate a compliance with the 
 bonds, two preceding sections, the Secretary of the Treasury is 
 authorized to receive from any association, and cancel, 
 any United States coupon bonds, and to issue in lieu 
 thereof registered bonds of like amount, bearing a like rate 
 of interest, and having the same time to run. 
 
 Bonds held b\f 52. (Sec. 5162.) All transfers of United States bonds 
 treasurer, made by any association under the provisions of this 
 Title shall be made to the Treasurer of the United States 
 in trust for the association, with a memorandum written 
 or printed on each bond, and signed by the cashier, or 
 some other officer of the association making the deposit. 
 A receipt shall be given to the association, by the 
 Comptroller of the Currency, or by a clerk appointed 
 by him for that purpose, stating that the bond is held in 
 
NATIONAL BANK ACT 81 
 
 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 
 countersigned by the Comptroller of the Currency. 
 
 53. (Sec. 5163.) The Comptroller of the Currency shall Record of bond 
 keep in his office a book in which he shall cause to be ^^°"^f^^^' 
 entered, immediately upon countersigning it, every transfer 
 
 or assignment by the Treasurer, of any bonds belonging 
 to a national banking association, presented for his 
 signature. He shall state in such entry the name of the 
 association from whose account the transfer is made, the 
 name of the party to whom it is made, and the par value 
 of the bonds transferred. 
 
 54. (Sec. 5 1 64.) The Comptroller of the Currency shall, Notice of 
 immediately upon countersigning and entering any transfer ^°^^i^^' 
 or assignment by the Treasurer of any bonds belonging to 
 
 a national banking association, advise by mail the associa- 
 tion from whose accounts the transfer is made of the kind 
 and numerical designation of the bonds and the amount 
 thereof so transferred. 
 
 55. (Sec. 5 1 65.) The Comptroller of the Currency shall Examination of 
 have at all times, during office hours, access to the books °^ j°" 
 
 of the Treasurer of the United States for the purpose of 
 ascertaining the correctness of any transfer or assignment 
 of the bonds deposited by an association presented to 
 the Comptroller to 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 ihe same; and 
 the Comptroller shall also at all times have access to the 
 bonds on deposit with the Treasurer to ascertain their 
 amount and condition. 
 
 56. (Sec. 5166.) Every association having bonds depos- Annual 
 
 ited in the office of the Treasurer of the United States shall, e^aminaf/on of 
 once or oftener in each fiscal year, examine and compare 
 
82 N. W. HALSEY & CO. 
 
 the bonds pledged by the association with the books 
 of the Comptroller of the Currency and with the accounts 
 of the association, and, if they are found correct, to execute 
 to the Treasurer a certificate setting forth the different 
 kinds and the amounts thereof, and that the same are in 
 the possession and custody of the Treasurer at the date 
 of the certificate. Such examination shall be made at 
 such time or times during the ordinary business hours as 
 the Treasurer and the Comptroller, respectively, may select, 
 and may be made by an officer or agent of such association, 
 duly appointed in writing for that purpose; and his certifi- 
 cate before mentioned shall be of like force and validity 
 as if exectuted by the president or cashier. A duplicate 
 of such certificate, signed by the Treasurer, shall be 
 retained by the association. 
 
 Central 57. (Sec. 5 167.) The bonds transferred to and deposited 
 provisions ^ith the Treasurer of the United States by any association 
 respecting ^^^ ^j^^ security of its circulating notes shall be held ex- 
 ' clusively for that purpose until such notes are redeemed, 
 except as provided in this Title. The Comptroller 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 inoperative 
 whenever such association fails to redeem its circulating 
 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 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 
 
NATIONAL BANK ACT 83 
 
 without prejudice to the United States; and he may direct 
 the return of any bonds to the association which trans- 
 ferred the same, in sums of not less than one thousand 
 dollars, upon the surrender to him and the cancellation 
 of a proportionate amount of such circulating notes: 
 Provided, That the remaining bonds which shall have been 
 transferred by the association offering to surrender circu- 
 lating notes are equal to the amount required for the 
 circulating notes not surrendered by such association, and 
 that the amount of bonds in the hands of the Treasurer 
 is not diminished below the amount required to be kept 
 on deposit with him, and that there has been no failure 
 by the association to redeem its circulating notes, nor any 
 other violation by it of the provisions of this Title, and 
 that the market or cash value of the remaining bonds is 
 not below the amount required for the circulation issued 
 for the same. 
 
 58. Sec. 10 of the act of July 12, 1882, as amended by Amount of 
 act of March 14, 1900, provides that upon the deposit with circulation 
 the Treasurer of the United States, by any national bank- obtamable. 
 ing association, of any bonds of the United States in the 
 manner provided by existing law, such association shall 
 be entitled to receive from the Comptroller of the Currency 
 circulating notes in blank, registered and countersigned 
 as provided by law, equal in amount to the par value of 
 the bonds so deposited; and any national banking associa- 
 tion now having bonds on deposit for the security of 
 circulating notes, and upon which an amount of circulating 
 notes has been issued less than the par value of the bonds, 
 shall be entitled, upon due application to the Comptroller 
 of the Currency, to receive additional circulating 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 subject to all 
 the provisions of law affecting such notes: Provided, 
 That the circulating notes furnished to national banking 
 
84 N. W. HALSEY & CO. 
 
 associations under the provisions of this act shall be of the 
 denominations prescribed by law, except that no national 
 banking association shall, after the passage of this act, 
 be entitled to receive from the Comptroller of the Cur- 
 rency, or to issue or reissue or place in circulation, more 
 than one-third in amount of its circulating notes of the 
 denomination of five dollars; And provided further. That 
 the total amount of such notes issued to any such associa- 
 tion may equal at any time but shall not exceed the amount 
 at such time of its capital stock actually paid in. 
 
 Preparation of "Sec. 5 1 72. (As amended May thirtieth, nineteen hundred and 
 bank circulation, eight.) In order to furnish suitable notes for circulation, the 
 Comptroller of the Currency shall, under the direction of the 
 Secretary of the Treasury, cause plates and dies to be engraved, 
 in the best manner to guard against counterfeiting and fradulent 
 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 
 entitled 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 associa- 
 tion 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 direction of the Secretary of the 
 Treasury, shall as soon as practicable caused to be prepared circu- 
 lating 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 association, and to be held for such 
 association, subject to the order of the Comptroller of the Currency, 
 for their delivery as provided by law: Provided, That the 
 Comptroller of the Currency may issue national bank notes of the 
 
NATIONAL BANK ACT 85 
 
 present form until plates can be prepared and circulating notes 
 issued as above provided: Provided, however. That in no event 
 shall bank notes of the present form be issued to any bank as 
 additional circulation provided for by this Act." 
 
 60. Sec. 5 of the act of June 20, 1874, provides that the Circulation shall 
 Comptroller of the Currency shall, under such rules and regulations bear charter 
 
 as the Secretary of the Treasury may prescribe, cause the charter number. 
 numbers of the associations to be printed upon all national-bank 
 notes which may be hereafter issued by him. 
 
 61. (Sec. 5173.) The plates and special dies to be procured Control of plates 
 by the Comptroller of the Currency for the printing of such circu- and dies. 
 lating notes shall remain under his control and direction and the 
 
 expenses necessarily incurred in executing the laws respecting the 
 procuring of such notes and all other expenses of the Bureau of the 
 Currency [except as provided by sec. 3, act June 20, 1874, 
 and sees. 6 and 8, act of July 12, 1882] shall be paid out of 
 the proceeds of the taxes or duties assessed and collected on the 
 circulation of national banking associations under this Title. 
 
 62. (Sec. 51 74.) The Comptroller of the Currency shall cause Examination of 
 to be examined, each year, the plates, dies, but pieces [bed pieces], plates and dies. 
 and other material from which the national-bank circulation is 
 
 printed, in whole or in part, and file in his office annually a correct 
 list of the same. Such material as shall have been used in the 
 printing of the notes of associations which are in liquidation, or 
 have closed business, shall be destroyed, under such regulations 
 as shall be prescribed by the Comptroller of the Currency and 
 approved by the Secretary of the Treasury. The expenses of 
 any such examination or destruction shall be paid out of any 
 appropriation made by Congress for the special examination of 
 national banks and bank-note plates. 
 
 63. (Sec. 5182.) After any association receiving circulating (^^^^^/q^'q^^ ^^j. 
 notes under this Title has caused its promise to pay such notes ivhat receivable. 
 on demand to be signed by the president or vice-president and 
 
 cashier thereof, in such manner as to make them obligatory 
 promissory notes, payable on demand at its place of business, such 
 association may issue and circulate the same as money. And the 
 
86 N. W. HALSEY & CO. 
 
 same shall be received at par in all parts of the United States 
 in payment of taxes, excises, public lands, and all other dues to 
 the United States, except duties on imports; and also for all 
 salaries and other debts and demands owing by the United States 
 to individuals, corporations, and associations within the United 
 States, except interest on the public debt, and in redemption of the 
 national currency. 
 
 Circulation of 64. (Sec. 5185.) Associations may be organized in the manner 
 gold banlis. prescribed by this Title for the purpose of issuing notes payable in 
 gold; and upon the deposit of any United States bonds bearing 
 interest payable in gold with the Treasurer of the United States, 
 in the manner prescribed for other associations, it shall be lawful 
 for the Comptroller of the 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. 
 
 JVorn-out or 65. (Sec. 5184.) It shall be the duty of the Comptroller 
 mutilated of the Currency to receive worn-out or mutilated circulating notes 
 circutation. issued by any banking association, and also, on due proof of the 
 destruction of any such circulating notes, to deliver in place thereof 
 to the association other blank circulating notes to an equal amount. 
 Such worn-out or mutilated notes, after a memorandum has been 
 entered in the proper books, in accordance with such regulations 
 as may be established by the Comptroller, as well as all circulating 
 notes which shall have been paid or surrendered to be canceled, 
 shall be macerated in presence of four persons, one to be appointed 
 by the Secretary of the Treasury, one by the Comptroller of the 
 Currency, one by the Treasurer of the United States, and one by 
 the association, under such regulations as the Secretary of the 
 Treasury may prescribe. A certificate of such maceration, signed 
 by the parties so appointed, shall be made in the books of the 
 Comptroller, and a duplicate thereof forwarded to the association 
 whose notes are thus canceled. 
 
NATIONAL BANK ACT 87 
 
 66. Sec. 3 of the act of June 20, 1874, provides that every Provisions for 
 association organized, or to be organized, under the provisions Tedeeming 
 of the said act, and of the several acts amendatory thereof, shall ^^f^^^'^^'^^' 
 at all times keep and have on deposit in the Treasury of the United 
 States, in lawful money of the United States, a sum equal to five 
 per centum of its circulation, to be held and used for the redemption 
 of such circulation; which sum shall be counted as a part of its 
 lawful reserve, as provided in section two of this act; and when 
 the circulating notes of any such associations, assorted or unassorted, 
 shall be presented for redemption, in sums of one thousand dollars 
 or any multiple thereof, to the Treasurer of the United States, 
 the same shall be redeemed in United States notes. All notes 
 so redeemed shall be charged by the Treasurer of theUnited States 
 to the respective associations issuing the same, and he shall notify 
 them severally, on the first day of each month, or oftener, at his 
 discretion, of the amount of such redemptions; and whenever such 
 redemptions for any association shall amount to the sum of five 
 hundred dollars, such association so notified shall forthwith deposit 
 with the Treasurer of the United States a sum in United States 
 notes equal to the amount of its circulating notes so redeemed. 
 And all notes of national banks, worn, defaced, mutilated, or other- 
 wise unfit for circulation, shall, when received by any assistant 
 treasurer, or at any designated depositary of the United States, 
 be forwarded to the Treasurer of the United States for redemption 
 as provided herein. And when such redemptions have been so 
 reimbursed, the circulating notes so redeemed shall be forwarded 
 to the respective associations 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 of said associations shall reimburse to the 
 Treasury the charges for transportation and the costs for assorting 
 such notes; and the associations hereafter organized shall also 
 severally reimburse to the Treasury the cost of engraving such 
 plates as shall be ordered by each association respectively; and the 
 amount assessed upon each association shall be in proportion to 
 the circulation redeemed, and be charged to the fund on deposit 
 with the Treasurer. 
 
88 N. W. HALSEY & CO. 
 
 Withdrawing 67. Sec. 4 of the act of June 20, 1874, provides that 
 circulation, ^jjy association organized under this act, or any of the 
 acts of which this is an amendment, desiring to withdraw 
 its circulating notes, in whole or in part, may, upon the 
 deposit of lawful money with the Treasurer of the United 
 States in sums of not less than nine thousand dollars, 
 take up the bonds which said association has on deposit 
 with the Treasurer for the security of such circulating 
 notes, which bonds shall be assigned to the bank in the 
 manner specified in the nineteenth section of the national- 
 bank act; and the outstanding notes of said association, 
 to an amount equal to the legal-tender notes deposited, 
 shall be redeemed at the Treasury of the United States, 
 and destroyed as now provided by law: Provided, That 
 the amount of the bonds on deposit for circulation shall 
 not be reduced below fifty thousand dollars. 
 
 Ceneral 68. The act of July 12, 1882, provides: (Sec. 8.) That 
 
 provisions for the national banks which shall hereafter make deposits of lawful 
 
 withdrawing money for the retirement in full of their circulation shall, at the 
 
 circa a ion. ^^^ ^^ ^^^^^ deposit, be assessed for the cost of transporting and 
 
 redeeming their notes then outstanding, a sum equal to the average 
 
 cost of the redemption of national-bank notes during the preceding 
 
 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 of the act approved June twentieth, eighteen hundred 
 
 and seventy-four, for the cost of transporting and redeeming their 
 
 notes redeemed from such deposits subsequently to June thirtieth, 
 
 eighteen hundred and eighty-one. 
 
 "Sec, 9. (As amended May thirtieth, nineteen hundred 
 and eight.) That any national banking association desiring 
 to withdraw its circulating notes, secured by deposit of 
 United States bonds in the manner provided in section 
 four of the Act approved June twentieth, eighteen hundred 
 and seventy-four, is hereby authorized for that purpose 
 to deposit lawful money with the Treasurer of the United 
 
NATIONAL BANK ACT 89 
 
 States and, with the consent o£ the Comptroller of the 
 Currency and the approval of the Secretary of the Treas- 
 ury to withdraw a proportionate amount of bonds held 
 as security for its circulating notes in the order of such 
 deposits: Provided, That not more that nine millions o£ 
 dollars of lawful money shall be so deposited during any 
 calendar month for this purpose. 
 
 "Any national banking association desiring to withdraw 
 any of 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 making such deposit." 
 
 69. Sec. 6 of the act of July 12, 1882, provides that the Circulation of 
 circulating notes of any association so extending the period of its extended banl^s. 
 succession which shall have been issued to it prior to such extension 
 shall be redeemed at the Treasury of the United States, as pro- 
 vided 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 redistribution of national bank currency, 
 and for other purposes," and such notes when redeemed shall be 
 forwarded to the Comptroller of the Currency, and destroyed, as 
 now provided by law; and at the end of three years from the 
 date of the extension of the corporate existence of each bank the 
 association so extended shall deposit lawful money with the Treas- 
 urer of the United States sufficient to redeem the remainder of the 
 circulation which was outstanding at the date of its extension, as 
 
90 N. W. HALSEY & CO. 
 
 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 
 for by this act, bearing such devices, to be approved by the Secre- 
 tary of the Treasury, as shall make them readily distinguishable 
 from the circulating notes heretofore issued: Provided, however. 
 That each banking association which shall obtain the benefit of 
 this act shall reimburse to the Treasury the cost of preparing the 
 plate or plates for such new circulating notes as shall be issued 
 to it. 
 
 Circulation of 70. (Sec. 5225.) Whenever the Treasurer has redeemed any 
 Liquiaating ban^s. ^^ ^^ notes of an association which has commenced to close its 
 affairs, he shall cause the notes to be mutilated and charged to 
 the redemption account of the association; and all notes so 
 redeemed by the Treasurer shall, every three months, be certified 
 to and destroyed in the manner prescribed in section fifty-one 
 hundred and eighty-four. 
 
 Circulation of 71. Sec. 8 of the act of June 20, 1874, provides: And it 
 closed banfis. gj^j^jj j^g ^^ j^^y ^f jj^g Treasurer, assistant treasurers, designated 
 depositaries, and national bank depositaries of the United States 
 to assort and return to the Treasury for redemption the notes of 
 such national banks as have failed, or gone into voluntary liquida- 
 tion for the purpose of winding up their affairs, and of such as 
 shall hereafter so fail or go into liquidation. 
 
 Regulations for 72. (Sec. 5232.) The Secretary of the Treasury may, from 
 
 redemption ^^^^ j^ time, make such regulations respecting the disposition to 
 
 be made of circulating notes after presentation at the Treasury 
 
 of the United States for payment, and respecting the perpetuation of 
 
 the evidence of the payment thereof, as may seem to him proper. 
 
 Redeemed notes 73, (Sec. 5233.) All notes of national banking associations 
 to be canceled, presented at the Treasury of the United States for payment shall, 
 on being paid, be canceled. 
 
NATIONAL BANK ACT 91 
 
 74. Sec. 3 of the act approved June 20, 1 874, provides that Redemption in 
 when the circulating notes of any such associations, assorted or United States 
 unassorted, shall be presented for redemption, in sums of one ''o'^*- 
 thousand dollars or any multiple thereof, to the Treasurer of the 
 
 United States, the same shall be redeemed in United States notes. 
 
 75. Sec. 6 of the act of July 14, 1890, provides that upon Disposition of 
 the passage of this act the balances standing with the Treasurer redemption 
 
 of the United States to the respective credits of national banks account. 
 for deposits made to redeem the circulating notes of such banks, 
 and all deposits thereafter received for like purpose, shall be 
 covered into the Treasury as a miscellaneous receipt, and the 
 Treasurer of the United States shall redeem from the general 
 cash in the Treasury the circulating notes of said banks which 
 may come into his possession subject to redemption; and upon the 
 certificate of the Comptroller of the Currency that such notes 
 have been received by him and that they have been destroyed 
 and that no new notes will be issued in their place, reimburse- 
 ment of their amount shall be made to the Treasurer, under such 
 regulations as the Secretary of the Treasury may prescribe, 
 from an appropriation hereby created, to be known as "national- 
 bank notes, redemption account." But the provisions of this act 
 shall not apply to the deposits received under section three of 
 the act of June twentieth, eighteen hundred and seventy-four, 
 requiring every national bank to keep in lawful money with the 
 Treasurer of the United States a sum equal to five per centinn 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. 
 
 76. The act of July 28, 1 892, stipulates that the provisions Redemption of 
 of the Revised Statutes of the United States, providing for the incomplete 
 redemption of national-bank notes shall apply to all national-bank cifc^^<iuon. 
 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 circulation without the signature 
 
92 N. W. HALSEY & CO. 
 
 or upon the forged signature of the president or vice-president 
 and cashier. 
 
 Banks take 77. (Sec. 5196.) Every national banking association formed 
 circulation ^^ existing under this Title shall take and receive at pE". for 
 any debt or liability to it, any and all notes or bills issued by any 
 lawfully organized national banking association. But this provision 
 shall not apply to any association organized for the purpose of 
 issuing notes payable in gold. 
 
 Issue of other 78. (Sec. 5183.) No national banking association snail issue 
 notes prohibited, post notes or any other notes to circulate as money than such as 
 
 are authorized by the provisions of this Title. 
 
 Fraudulent notes 79, Sec. 5 of the act of June 30, 1876. provides that all 
 
 ' " United States officers charged with the receipt or disbursement 
 
 of public moneys, and all officers of national banks, shall stamp 
 
 or write in plain letters the word "counterfeit," "altered," or 
 
 "worthless," upon all fraudulent notes issued in the form of and 
 
 intended to circulate as money which shall be presented at their 
 
 places of business; and if such officer shall wrongfully stamp any 
 
 genuine note of the United States, or of the national banks, they 
 
 shall, upon presentation, redeem such notes at the face value thereof. 
 
 Note. — See page 161 for additional Circulation Act of May 
 
 30, 1908. 
 
 Chapter Four. 
 TAX ON CIRCULATION. 
 
 Tax on "Sec. 5214. (As amended May thirtieth, nineteen hun- 
 circulalion. dred and eight.) National banking associations having on 
 deposit bonds of the United States, bearing interest at the 
 rate of two per centum per annum, including the bonds 
 issued for the construction of the Panama Canal, under 
 the provisions of section eight of 'An Act to provide for 
 the construction of a canal connecting the waters of the 
 Atlantic and Pacific oceans,' approved June twentieth, 
 nineteen 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 
 
NATIONAL BANK ACT 93 
 
 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 of its notes in circulation as are based upon the 
 deposit of such bonds. National banking associations 
 having circulating notes secured otherwise than by bonds 
 of the United States shall pay for the first month a tax 
 at the rate of five per centum per annum upon the average 
 amount of 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 of 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 president or cashier, to the Treasurer of 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 circula- 
 tion 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 Redemption of the Treasury and credited 
 and added to the reserve fund held for the redemption of 
 United States and other notes." 
 
 81. (Sec. 5215.) In order to enable the Treasurer to assess Semi-annual 
 the duties imposed by the preceding sections, each association return of 
 shall, within ten days from the first days of January and July circulation. 
 of each year, make a return, under the oath of its president or 
 cashier, to the Treasurer of the United States, in such form as 
 the Treasurer may prescribe, of the average amount of its notes 
 in circulation for the six months next preceding the most recent 
 
94 N. W. HALSEY & CO. 
 
 first day of January or July. Every association which fails so 
 to make such returns shall be liable to a penalty of two hundred 
 dollars, to be collected either out of the interest as it may become 
 due such association on the bonds deposited with the Treasurer, 
 or, at his option, in the manner in which penalties are to be collected 
 of other corporations under the laws of the United States. 
 
 Proceedings on 82. (Sec. 5216.) Whenever any association fails to make 
 
 aejau L ^^ ^^^^ yearly return required by the preceding section, the duties 
 
 to be paid by such association shall be assessed upon the amount 
 
 of notes delivered to such association by the Comptroller of the 
 
 Currency. 
 
 Enforcing tax 83. (Sec. 5217.) Whenever an association fails to pay the 
 on circuLation. Jyfjgg imposed by the three preceding sections, the sums due may 
 be collected in the manner provided for the collection of United 
 States taxes from other corporations; or the Treasurer may reserve 
 the amount out of the interest, as it may become due, on the bonds 
 deposited with him by such defaulting association. 
 
 Refunding 84. (Sec. 5218.) In all cases where an association has paid 
 excess tax. ^j, ^j^^y p^^y ^ excess of what may be or has been found due 
 'from it, on account of the duty required to be paid to the 
 Treasurer of the United States, the association may state an 
 account therefor, which, on being certified by the Treasurer of the 
 United States, and found correct by the Comptroller of the 
 Treasury, shall be refunded in the ordinary manner by warrant 
 on the Treasury. 
 
 Circulation, 85. (Sec. 3411.) Whenever the outstanding circulation of 
 
 en exemp ^ bank, association, corporation, company, or person is reduced 
 from tax. ■' ,. r r i i i 
 
 to an amount not exceedmg hve per centum or the chartered or 
 
 declared capital existing at the time the same was issued, said 
 
 circulation shall be free from taxation; and whenever any bank 
 
 which has ceased to issue notes for curculation 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. 
 
NAT IONAL BANK ACT 95 
 
 86. Sees. 19, 20, and 21 of the act of February 8, 1875, Tax on 
 provide: unauthorized 
 
 circulation. 
 
 Sec. 19. That every person, firm, association, other than 
 national banking associations, and every corporation. State bank, 
 or State banking association shall pay a tax of ten per centum 
 on the amount of their own notes used for circulation and paid 
 out by them. 
 
 Sec. 20. That every such person, firm, association, corporation. 
 State bank, or State banking association, and also every national 
 banking association, shall pay a like tax of ten per centum on 
 the amount of notes of any person, firm, association, other than 
 a national banking association, or of any corporation, State bank, 
 or State banking association, or of any town, city, or municipal 
 corporation, used for circulation and paid out by them. 
 
 Sec. 2 1 . That the amount of such circulating notes, and of 
 the tax due thereon, shall be returned, and the tax paid at the 
 same time, and in the same manner, and with like penalties for 
 failure to return and pay the same, as provided by law for the 
 return and payment of taxes on deposits, capital, and circulation 
 imposed by the existing provisions of internal-revenue law. 
 
 87. (Sec. 3414.) A true and complete return of the monthly Semi-annual 
 amount of circulation, as aforesaid, and of the monthly amount ''^'"'"" ''/ laxable 
 of notes of persons, town, city, or municipal corporations. State 
 banks, or State banking associations paid out as aforesaid for 
 the previous six months, shall be made and rendered in dupHcate 
 on the first day of December and the first day of June by each of 
 such banks, associations, corporations, companies, or persons, with 
 a declaration annexed thereto, under the oath of such person, or 
 of the president, or cashier of such bank, association, corporation, 
 or company, in such form and manner as may be prescribed by 
 the Commissioner of Internal Revenue, that the same contains 
 a true and faithful statement of the amounts subject to tax, as 
 aforesaid; and one copy shall be transmitted to the collector of 
 the district in which any such bank, association, corporation, 
 or company is situated, or in which such person has his place of 
 business, and one copy to the Commissioner of Internal Revenue. 
 
96 N. W. HALSEY & CO. 
 
 Failure to make 88. (Sec. 3415.) In default of the returns provided in the 
 such return, preceding section the amount of circulation and notes of persons, 
 town, city, and municipal corporations, State banks, and State 
 banking associations paid out, as aforesaid, shall be estimated by 
 the Commissioner of Internal Revenue, upon the best information 
 he can obtain. And for any refusal or neglect to make return 
 and payment any such bank, association, corporation, company, 
 or person so in default shall pay a penalty of two hundred dollars, 
 besides the additional penalty and forfeitures provided in other cases. 
 
 Tax on 89. (Sec. 3416.) Whenever any State bank or banking associa- 
 converted banii ^^^ j^j^g j^gg^ converted into a national banking association, and 
 such national banking association has assumed the liabilities of 
 such State bank or banking association, including the redemption of 
 its bills, by any agreement or understanding whatever with the 
 representatives of such State bank or banking association, such 
 national banking association shall be held to make the required 
 return and payment on the circulation outstanding, so long as such 
 circulation shall exceed five per centum of the capital before such 
 conversion of such State bank or banking association. 
 
 Tax provisions 90. (Sec. 3417.) The provisions of this chapter relating to 
 restricted, tl^g tax on the circulation of banks and to their returns, except as 
 contained in sections thirty-four hundred and eleven, thirty-four 
 hundred and twelve, thirty-four hundred and thirteen, and thirty- 
 four hundred and sixteen, and such parts of sections thirty-four 
 hundred and fourteen and thirty-four hundred and fifteen as relate 
 to the tax of ten per centum on certain notes, shall not apply to 
 associations which are taxed under and by virtue of Title 
 "National Banks." 
 
 Taxation of 91. (Sec. 3701.) All stocks, bonds. Treasury notes, and other 
 notes, etc. obligations of the United States shall be exempt from taxation by 
 or under State or municipal or local authority. The act of August 
 13, 1894, provides: (Sec. 1.) That circulating notes of national 
 banking associations and United States legal-tender notes and other 
 notes and certificates of the United States, payable on demand 
 and circulating or intended to circulate as currency, and gold, 
 silver, or other coin shall be subject to taxation as money on hand 
 
NATIONAL BANK ACT 97 
 
 or on deposit under the laws of any State or Territory: Provided, 
 That any such taxation shall be exercised in the same manner and 
 at the same rate that any such State or Territory shall tax money 
 or currency circulating as money within its jurisdiction. 
 
 Sec. 2. That the provisions of this act shall not be deemed 
 or held to change existing laws in respect of the taxation of 
 national banking associations. 
 
 Chapter Five. 
 REGULATION OF TJtiE BANKING BUSINESS. 
 
 92. (Sec. 5157:) The provisions of chapters two, three, and Lan>s governing 
 four [three, five, and seven of this edition] of this Title, which certain 
 
 are expressed without restrictive words, as applying to "national ^^^^^cianons. 
 banking association," or to "associations," apply to all associations 
 organized to carry on the business of banking under any act of 
 Congress. 
 
 93. (Sec. 5190.) The usual business of each national banking Place of 
 association shall be transacted at an office or banking house located tiusmess. 
 in the place specified in its organization certificate. 
 
 94. (Sec. 5191.) Every national banking association in either Reserve cities 
 of the following cities: Albany, Baltimore, Boston, Cincinnati, ^"" reserve 
 Chicago, Cleveland, Detroit, Louisville, Milwaukee, New Orleans, requirements. 
 New York, Philadelphia, Pittsburg, Saint Louis, San Francisco, 
 
 and Washington, shall at all times have on hand in lawful money 
 of the United States, an amount equal to at least twenty-five per 
 centum of the aggregate amount of its deposits in all respects; and 
 every other association shall at all times have on hand, in lawful 
 money of the United States, an amount equal to at least fifteen 
 per centum of the aggregate amount of its deposits in all respects. 
 (See paragraphs 104 and 105.) 
 
 NOTE— Act of May 30, 1908. 
 
 "Sec. 1 4. That the provisions of section fifty-one hundred and No reserve need 
 
 ninety-one of the Revised Statutes, with reference to the reserves of ^^ held against 
 
 national banking associations, shall not apply to deposits of public "^/^^f " °/ 
 
 I .1 T T • 1 o • 1 • 11 •• .. public money. 
 
 moneys by the United otates m designated depositaries. 
 
98 N. W. HALSEY & CO. 
 
 Reserve not 95. (Sec. 5191.) Whenever the lawful money of any associa- 
 maintained. tion in any of the cities named shall be below the amount of twenty- 
 five per centum of its deposits, and whenever the lawful money 
 of any other association shall be below fifteen per centum of its 
 deposits, such association shall not increase its liabilities by making 
 any new loans or discounts otherwise than by discounting or 
 purchasing bills of exchange payable at sight, nor make any dividend 
 of its profits until the required proportion between the aggregate 
 amount of its deposits and its lawful money of the United States 
 has been restored. And the Comptroller of the Currency may 
 notify any 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 there- 
 after so to make good its reserve of lawful money, the Comptroller 
 may, with the concurrence of the Secretary of the Treasury, appoint 
 a receiver to wind up the business of the association, as provided 
 in section fifty-two hundred and thirty-four. 
 
 Reserve agents' 96. (Sec. 5192.) Three-fifths of the reserve of fifteen per 
 balances counted centum required by the preceding section to be kept may consist 
 as reserve, of balances due to an association from associations approved by 
 the Comptroller of the Currency, organized under the act of June 
 three, eighteen hundred and sixty-four, or under this Title, and 
 doing business in the cities of Albany, Baltimore, Boston, Charles- 
 ton, Chicago, Cincinnati, Cleveland, Detroit, Louisville, Milwaukee, 
 New Orleans, New York, Philadelphia, Pittsburg, Richmond, 
 Saint Louis, San Francisco, and Washington. 
 
 Clearing-house 97. Clearing-house certificates, representing specie or lawful 
 
 certificates money specially deposited for the purpose, of any clearing-house 
 
 counted as association shall also be deemed to be lawful money in the posses- 
 
 sion of any association belonging to such clearing house, holding 
 
 and owning such certificate, within the preceding section. 
 
 Redemption 98. Sec. 3 of the act of June 20, 1874, provides that the five 
 fund counted pgj. ^.g^t redemption fund, which shall at all times be kept on 
 as reserve. ^jgpQgjj ^j^j^ ^j^g Treasurer of the United States, shall be counted as 
 a part of the lawful reserve. 
 
 99. (Sec. 5193.) The Secretary of the Treasury may receive 
 United States notes on deposit, without interest, from any national 
 
NATIONAL BANK ACT 99 
 
 banking association, in sums of not less than ten thousand dollars. United States 
 and issue certificates therefor in such form as he may prescribe, in note certificates 
 denominations of not less than five thousand dollars, and payable counted as 
 on demand in United States notes at the place where the deposits f^^^^' 
 were made. The notes so deposited shall not be counted as part 
 of the lawful-money reserve of the association; but the certificates 
 issued therefor may be counted as part of its lawful-money reserve, 
 and may be accepted in the settlement of clearing-house balances 
 at the places where the deposits therefor were made. (Repealed 
 March 14, 1900.) 
 
 100. (Sec. 5194.) The pwwer conferred on the Secretary of Redemption of 
 the Treasury by the preceding section shall not be exercised so s"c/i certificates. 
 as to create any expansion or contraction of the currency; and 
 
 United States notes for which certificates are issued under that 
 section, or other United States notes of like amount, shall be 
 held as special deposits in the Treasury and used only for redemption 
 of such certificates. 
 
 101. Sec. 12 of the act of July 12, 1882, provides that the United States 
 Secretary of the Treasury is authorized and directed to receive gold certificates 
 deposits of gold coin with the Treasurer or assistant treasurers of counted as 
 
 the United 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 denominations 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 reissued; and such certificates, as also silver certificates, when 
 held by any national banking association, shall be counted as 
 part of its lawful reserve; and no national banking association shall 
 be a member of any clearing house in which such certificates shall 
 not be receivable in the settlement of clearing-house balances: 
 PTovided, That the Secretary 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 redemption of 
 United States notes falls below one hundred millions of dollars; 
 and the provisions of section fifty-two hundred and seven of the 
 
100 N. W. HALSEY & CO. 
 
 Revised Statutes shall be applicable to the certificates herein 
 authorized and directed to be issued. 
 
 Reserve 102. (Sec. 5186.) Every association organized for the purpose 
 rcquvrements ^f issuing notes payable in gold shall at all times keep on hand 
 ° ^ ' not less than twenty-five per centum of its outstanding circulation, 
 
 in gold or silver coin of the United States; and shall receive at par 
 in the payment of debts the gold notes of every other such associa- 
 tion which at the time of such payment is redeeming its circulating 
 notes in gold coin of the United States, and shall be subject to 
 all the provisions of this Title: 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 con- 
 strued 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. 
 
 Reserve deposit 103. (Sec. 5195.) Each association organized in any of the 
 in central cities named in section fifty-one hundred and ninety-one may keep 
 esc e ci p. Qjjg.jjj^if Qf Jts lawful-money reserve in cash deposits in the city of 
 New York. But the foregoing provision shall not apply to associa- 
 tions organized and located in the city of San Francisco for the 
 purpose of issuing notes payable in gold. This section shall not 
 relieve any association from its liability to redeem its circulating 
 notes at its own counter at par in lawful money on demand. 
 
 Additional 104. Sec. 1 of the act of March 3, 1887, as amended by 
 reserve cities, jhe act of March 3. 1903, provides that whenever three-fourths 
 in number of the national banks located in any city of the United 
 States having a population of twenty-five thousand people shall 
 make application to the Comptroller of the Currency, in writing, 
 asking that the name of the city in 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 Revised 
 Statutes, the Comptroller shall have authority to grant such request, 
 and every bank located in such city shall at all times thereafter 
 have on hand, in lawful money of the United States, an amount 
 equal to at least twenty-five per centum of its deposits, as provided 
 in sections fifty-one hundred and ninety-one and fifty-one hundred 
 and ninety-five of the Revised Statutes. 
 
NATIONAL BANK ACT 
 
 101 
 
 105. Sec. 2 of the act of March 3, 1887, provides that when- Additional 
 ever three-fourths in number of the national banks located in any central reserve 
 city of the United States having a population of two hundred ci<ies. 
 thousand people shall make application to the Comptroller of the 
 
 Currency, in writing, asking that such city may be a central reserve 
 city, like the city of New York, in which one-half of the lawful- 
 money reserve of the national banks located in other reserve cities 
 may be deposited, as provided in section fifty-one hundred and 
 ninety-five of the Revised Statutes, the Comptroller shall have 
 authority, with the approval of the Secretary of the Treasury, < 
 
 to grant such request, and every bank located in such city shall 
 at all times thereafter have on hand, in lawful money of the United 
 States, twenty-five per centum of its deposits, as provided in section 
 fifty-one hundred and ninety -one of the Revised Statutes. 
 
 106. (Sec. 5137.) A national banking association may pur- Real estate. 
 chase, hold, and convey real estate for the following purposes, and 
 
 for no others: 
 
 First. Such as shall be necessary for its immediate accommodation 
 in the transaction of its business. 
 
 Second. Such as shall be mortgaged to it in good faith by way 
 of security for debts previously contracted. 
 
 Third. Such as shall be conveyed to it in satisfaction of debts 
 previously contracted in the course of its dealings. 
 
 Fourth. Such as it shall purchase at sales under judgments, 
 decrees, or mortgages held by the association, or shall purchase 
 to secure debts due to it. 
 
 But no such association shall hold the possession of any real 
 estate under mortgage, or the title and possession of any real estate 
 purchased to secure any debts due to it, for a longer period than 
 five years. 
 
 107. (Sec. 5197.) Any association may take, receive, reserve. Interest. 
 and charge on any loan or discount made, or upon any note, bill 
 
 of exchange, or other evidence of debt, interest at the rate allowed 
 by the laws of the State, Territory, 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 
 
102 N. W. HALSEY & CO. 
 
 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 Territory, or District, the bank 
 may take, receive, reserve, or charge a rate not exceeding seven 
 per centum, and such interest may be taken in advance, reckoning 
 the days from which the note, bill, or other evidence of debt has 
 to run. And the purchase, discount, or sale of a bona fide bill 
 of exchange, payable at another place than the place of such pur- 
 chase, discount, or sale, at not more than the current rate of 
 exchange for sight drafts in addition to the interest, shall not be 
 considered as taking or receiving a greater rate of interest. 
 
 Penalty for 108. (Sec. 5198.) The taking, receiving, reserving, or charg- 
 unlavtful interest, ing a rate of interest greater than is allowed by the preceding section, 
 when knowingly done, shall be deemed a forfeiture of the entire 
 interest which the note, bill, or other evidence of debt carries with it, 
 or which has been agreed to be paid thereon. In case the greater 
 rale of interest has been paid, the person by whom it has been paid, 
 or his legal representatives, may recover back, in an action in the 
 nature of an action of debt, twice the amount of the 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. 
 
 Surplus and '09. (Sec. 5199.) The directors of any association may semi- 
 dividends. annually declare a dividend of so much of the net profits of the 
 association as they shall judge expedient; but each association shall, 
 before the declaration of a dividend, carry one-tenth part of its 
 net profits of the preceding half year to its surplus fund until the 
 same shall amount to twenty per centum of its capital stock. 
 
 Restriction on HO- (Sec. 5200, as amended June 22, 1906.) The total 
 loans, liabilities to any association, of any person, or of any company, 
 corporation, or firm for money borrowed, including in the liabilities 
 of a company or firm the liabilities of the several members thereof, 
 shall at no time exceed one-tenth part of the amount of the capital 
 stock of such association, actually paid in and unimpaired and one- 
 tenth part of its unimpaired surplus fund: Provided, however. That 
 the total of such liabilities shall in no event exceed thirty per centum 
 
NATIONAL BANK ACT 103 
 
 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. 
 
 111. (Sec. 5201.) No association shall make any loan or Associations 
 discount on the security of the shares of its own capital stock, nor '""f ' "°' "°'" 
 be the purchaser or holder of any such shares, unless such security ^' 
 or purchase shall be necessary to prevent loss upon a debt previously 
 
 contracted in good faith; and stock so purchased or acquired 
 shall, within six months from the time of its purchase, be sold or 
 disposed of at public or private sale; or, in default thereof, a 
 receiver may be appointed to close up the business of the association, 
 according to section fifty-two hundred and thirty-four. 
 
 112. (Sec. 5202.) No association shall at any time be in- Restriction on 
 debted, or in any way liable, to an amount exceeding the amount oanlis liabUtty. 
 of its capital stock at such time actually paid in and remaining 
 undiminished by losses or otherwise, except on account of demands 
 
 of the nature following: 
 
 First. Notes of circulation. 
 
 Second. Moneys deposited with or collected by the association. 
 
 Third. Bills of exchange or drafts drawn against money actually 
 on deposit to the credit of the association, or due thereto. 
 
 Fourth. Liabilities to the stockholders of the association for div- 
 idends and reserve profits. 
 
 113. (Sec. 5203.) No association shall, either directly or in- Improper use of 
 directly, pledge or hypothecate any of its notes of circulation for ^^^^ circulation. 
 the purpose of procuring money to be paid in on its capital stock, 
 
 or to be used in its banking operations, or otherwise; nor shall any 
 association use its circulating notes, or any part thereof, in any manner 
 or form, to create or increase its capital stock. 
 
 114. (Sec. 5204.) No association, or any member thereof. Unearned 
 shall, during ' le time it shall continue its banking operations, with- f.f. j 
 draw, or per .lit to be withdrawn, either in the form of dividends ^ 
 
 or otherwise, any portion of its capital. If losses have at any 
 
104 N. W. HALSEY & CO. 
 
 time been sustained by any such association equal to or exceeding its 
 undivided profits then on hand, no dividend shall be made; and no 
 dividend shall ever be made by any association, while it continues 
 its banking operations, to an amount greater than its net profits 
 then on hand, deducting therefrom its losses and bad debts. All 
 debts due to any 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. But nothing in this section shall prevent 
 the reduction of the capital stock of the association under section 
 fifty-one hundred and forty-three. 
 
 Assessment for 1|5. (Sec. 5205.) Every association which shall have failed 
 impairment oj j^ p^^y ^p j^^ capital stock, as required by law, and every associa- 
 tion whose capital stock shall have become impaired by losses or 
 otherwise, shall, within three months after receiving notice thereof 
 from the Comptroller of the Currency, pay the deficiency in the 
 capital stock, by assessment upon the shareholders pro rata for the 
 amount of capital stock held by each; and the Treasurer of the 
 United States shall withhold the interest upon all bonds held by 
 him in trust for any such association, upon notification from the 
 Comptroller of the Currency, until otherwise notified by him. If any 
 such association shall fail to pay up its capital stock, and shall refuse 
 to go into liquidation, as provided by law, for three months after 
 receiving notice from the Comptroller, a receiver may be appointed 
 to close up the business of the association, according to the provisions 
 of section fifty-two hundred and thirty-four. 
 
 Provision for ] ] 6. Sec. 4 of the act of June 30, 1 876, provides that if any 
 enforcement of shareholder or shareholders of a bank shall neglect or refuse, after 
 three months' notice, to pay the assessment, as provided in this 
 section, it shall be the duty of the board of directors to cause a 
 sufficient amout of the capital stock of such shareholder or share- 
 holders 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 newspaper of the city or town in 
 which the bank is located, or in a newspaper published nearest 
 thereto) to make good the deficiency; and the balance, if any, shall 
 be returned to such delinquent shareholder or shareholders. 
 
NATIONAL BANK ACT 105 
 
 117. (Sec. 5206.) No association shall at any time pay out Prohibition 
 
 on loans or discounts, or in purchasing drafts or bills of exchange, against uncurrent 
 
 or in payment of deposits, or in any other mode pay or put in "°'"' 
 
 circulation the notes of any bank or banking association which are 
 
 not, at any such time, receivable, at par, on deposit, and in payment 
 
 of debts by the association so paying out or circulating such notes; 
 
 nor shall any association knowingly pay out or put in circulation 
 
 any notes issued by any bank or banking association which at the 
 
 time of such paying out or putting in circulation is not redeeming its 
 
 circulating notes in lawful money of the United States. 
 
 1 18. (Sec. 5210.) The president and cashier of every national List of 
 banking association shall cause to be kept at all times a full and shareholders. 
 correct list of the names and residences of all the shareholders in 
 
 the association, and the number of shares held by each, in the office 
 
 where its business is transacted. Such lists 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, V 
 
 during business hours of each day in which business may be 
 
 legally transacted. A copy of such list, on the first Monday of July 
 
 of each year, verified by the oath of such president or cashier, shall 
 
 be transmitted to the Comptroller of the Currency. 
 
 119. (Sec. 5211.) Every association shall make to the ^cp<""'s o/ 
 Comptroller of the Currency not less than five reports during each ^°" ' "'"• 
 year, according to the form which may be prescribed by him, verified 
 
 by the oath or affirmation of the president or cashier of such associa- 
 tion, and attested by the signature of at least three of the directors. 
 Each such report shall exhibit, in detail and under appropriate 
 heads, the resources and liabilities of the association at the close of 
 business on any past day by him specified, and shall be transmitted 
 to the Comptroller within five days after the receipt of a request 
 or requisition therefor from him, and in the same form in which it 
 is made to the Comptroller shall be published in a newspaper 
 published in the place where such association is established, or if 
 there is no newsoaper in the place, then in one published nearest 
 thereto in the same county, at the expense of the association; and 
 such proof of publication shall be furnished as may be required 
 by the Comptroller. The Comptroller shall also have power to 
 
106 N. W. HALSEY & CO. 
 
 call for special reports from any particular association whenever in 
 his judgment the same are necessary in order to a full and complete 
 knowledge of its condition. 
 
 Verification of 120. The act of February 26, 1881, provides that the oath or 
 such reports affirmation required by section 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 located, or any other officer 
 having an official seal, authorized 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 administering the 
 oath is not an officer of the bank. 
 
 Reports of 121. (Sec. 5212.) In addition to the reports required by the 
 
 dividends and preceding section, each association shall report to the Comptroller 
 
 earnings. ^£ ^^ Currency, within ten days after declaring any dividend, the 
 
 amount of such dividend and the amount of net earnings in excess 
 
 of such dividend. Such reports shall be attested by the oath of 
 
 the president or cashier of the association. 
 
 Penalty for 122. (Sec. 5213.) Every association which fails to make and 
 failure to report, transmit any report required under either of the two preceding* 
 sections shall be subject to a penalty of one hundred dollars for 
 each day after the periods, respectively, therein mentioned, that it 
 delays to make and transmit its report. Whenever any association 
 delays or refuses to pay the penalty herein imposed, after it has 
 been assessed by the Comptroller of the Currency, the amount 
 thereof may be retained by the Treasurer of the United States, 
 upon the order of the Comptroller of the Currency, out of the 
 interest, as it may become due to the association, on the bonds 
 deposited with him to secure circulation. All sums of money 
 collected for penalties under this section shall be paid into the 
 Treasury of the United States. 
 
 Reports of 123. Sec. 6 of the act of June 30, 1876, as amended by 
 
 other banks, ^cts of March 3, 1901. and June 30, 1902, provides that all 
 
 banks or savings companies or institutions organized under authority 
 
NATIONAL BANK ACT 107 
 
 of any act of Congress to do business in the District of Columbia 
 shall be, and are hereby, required to make to the Comptroller 
 of the Currency, and publish, all the reports which national banking 
 associations are required to make and publish, under the provisions 
 of sections fifty-two hundred and eleven, fifty-two hundred and 
 twelve, and fifty-two hundred and thirteen of the Revised Statutes, 
 and shall be subject to the same penalties for failure to make or 
 publish such reports as are therein provided, which penalties may be 
 collected by suit before the supreme court of the District of 
 Columbia. 
 
 124. (Sec. 5219.) Nothing herein shall prevent all the shares State taxation of 
 in any association from being included in the valuation of the national banf(s. 
 personal property of the owner or holder of such shares, in assessing 
 
 taxes imposed by authority of the State within which the association 
 is located; but the legislature of each State may determine and 
 direct the manner and place of taxing all the shares of national 
 banking associations located within the State, subject only to the two 
 restrictions, that the taxation shall not be at a greater rate than is 
 assessed upon other moneyed capital in the hands of individual 
 citizens of such State, and that the shares of any national banking 
 association owned by nonresidents of any State shall be taxed in 
 the city or town where the bank is located, and not elsewhere. 
 Nothing herein shall be construed to exempt the real property of 
 associations from either State, county, or municipal taxes, to the 
 same extent, according to its value, as other real property is taxed. 
 
 125. (Sec. 5240.) The Comptroller of the Currency, with the National-bank 
 approval of the Secretary of the Treasury, shall, as often as shall be examiners. 
 deemed necessary or proper, appoint a suitable person or persons 
 
 to make an examination of the affairs of every banking association, 
 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 of the association to the Comptroller. 
 
 126. (Sec. 5240.) But no person shall be appointed to ex- Qualification for 
 amine the affairs of any banking association of which he is a ^xamuier. 
 director or other officer. 
 
108 N. W. HAU5EY & CO. 
 
 Compensation 127. (Sec. 5240.) All persons appointed to be examiners of 
 of examiners, 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, Cali- 
 fornia, and Nevada, or in the Territories, shall receive compensation 
 for such examination as follows: For examining national banks 
 having a capital less than one hundred thousand dollars, twenty 
 dollars; those having a capital of one hundred thousand dollars 
 and less than three hundred thousand dollars, twenty-five dollars; 
 those having a capital of three hundred thousand dollars and less 
 than four hundred thousand dollars, thirty-five dollars; those having 
 a capital of four 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 examined, and shall be in lieu of the 
 compensation and mileage heretofore allowed for making said 
 examinations; and persons appointed to make examinations of 
 national banks in the cites named 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 receive such compensation as may be fixed 
 by the Secretary of the Treasury upon the recommendation of the 
 Comptroller of the Currency; and the same shall be assessed and 
 paid in the manner hereinbefore provided. 
 
 Examinations 128. (Sec. 332.) The Comptroller of the Currency, in addition 
 m District of j^ ^^ powers conferred upon him by law for the examination of 
 '^' national banks, is further authorized, whenever he may deem it use- 
 ful, to cause examination to be made into the condition of any bank 
 in the District of Columbia organized under act of Congress. The 
 Comptroller, at his discretion, may report to Congress the results of 
 such examination. The expense necessarily incurred in any such 
 examination shall be paid out of any appropriation made by Congress 
 for special bank examinations. 
 
NATIONAL BANK ACT 109 
 
 129. (Sec. 5241.) No association shall be subject to any Limitation of 
 visitorial powers other than such as are authorized by this Title, visitorial poTvers. 
 or are vested in the courts of justice. 
 
 130. (Sec. 5243.) All banks not organized and transacting Use of 
 business under the national currency laws, or under this Title, and all "National" in 
 persons or corporations doing the business of bankers, brokers, or ""S^- 
 savings institutions, except savings banks authorized by Congress 
 
 to use the word "national" as a part of their corporate name, are 
 prohibited from using the word "national" as a portion of the name 
 or title of such bank, corporation, firm, or partnership; and any 
 violation of this prohibition committed after the third day of 
 September, eighteen hundred and seventy-three, shall subject the 
 party chargeable therewith to a penalty of fifty dollars for each day 
 during which it is permitted or repeated. 
 
 Chapter Six. 
 
 EXTENSION OF CORPORATE EXISTENCE. 
 
 131. The act of July 12, 1882, provides: (Sec. 1) That any Corporate 
 national banking association organized under the acts of February existence ma^ be 
 twenty-fifth, eighteen hundred and sixty-three, June third, eighteen extended. 
 hundred and sixty-four, and February fourteenth, eighteen hundred 
 and eighty, or under sections fifty-one hundred and thirty-three, fifty- 
 one hundred and thirty-four, fitfy-one hundred and thirty-five, fifty- 
 one hundred and thirty-six, and fifty-one hundred and fifty-four of 
 the Revised Statutes of the United States, may, at any time within 
 the two years next previous to the date of the expiration of its cor- 
 porate existence under present law, and with the approval of the 
 Comptroller of the Currency, to be granted as hereinafter provided, 
 extend its period of succession by amending its articles of association 
 for a term of not more than twenty years from the expiration of the 
 period of succession named in said articles of association, and shall 
 have succession for such extended period, unless sooner dissolved by 
 the act of shareholders owning two-thirds of its stock, or unless its 
 franchise becomes forfeited by some violation of law, or unless here- 
 after modified or repealed. 
 
110 
 
 N. W. HALSEY & CO. 
 
 Consent of 132. (Sec. 2.) That such amendment of said articles of associa- 
 ttvo-tnirds tJon shall be authorized by the consent in writing of shareholders own- 
 necessar}). j^^g ^^^ |ggg ^j^^^^ two-thirds of the capital stock of the association; and 
 the board of directors shall cause such consent to be certified under the 
 seal of the association, by its president or cashier, to the Comptroller of 
 the Currency, accompanied by an application made by the president or 
 cashier for the approval of the amended articles of association by 
 the Comptroller; and such amended articles of association shall not 
 be valid until the Comptroller shall give to such association a certifi- 
 cate 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 1 33. (Sec. 3.) That upon the receipt of the application and cer- 
 examination tificate of the association provided for in the preceding section, the 
 ^' Comptroller of the Currency shall cause a special examination to be 
 made, at the expense of the association, to determine its condition ; and 
 if after such examination or otherwise it appears to him that said asso- 
 ciation is in a satisfactory condition, he shall grant his certificate of 
 approval provided for in the preceding section, or if it appears that the 
 condition of said association is not satisfactory, he shall withhold such 
 certificate of approval. 
 
 Status not 134. (Sec. 4.) That any association so extending the period 
 changed b\) ^f jjg succession shall continue to enjoy all the rights and privileges 
 and immunities granted and shall continue to be subject to all the 
 duties, liabilities, and restrictions imposed by the Revised Statutes 
 of the United States and other acts having reference to national 
 banking associations, and it shall continue to be in all respects the 
 identical association it was before the extension of its period of 
 
 extension. 
 
 succession. 
 
 Dissenting 135. (Sec. 5.) That when any national banking association 
 shareholders Jj^s amended its articles of association as provided in this act, and 
 ma}) i»ithdran>. ^^^ Comptroller has granted his certificate of approval, any share- 
 holder not assenting to such amendment may give notice in writing 
 to the directors, within thirty days from the date of the certificate 
 of approval, of his desire to withdraw from said association, in 
 
NATIONAL BANK ACT 111 
 
 which case he shall be entitled to receive from said banking asso- 
 ciation the value of the shares so held by him, to be ascertained 
 by an appraisal made by a committee of three persons, one to be 
 selected by such shareholder, one by the directors, and the third 
 by the first two; and in case the value so fixed shall not be 
 satisfactory 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 committee, the bank shall pay the 
 expenses of said reappraisal, and otherwise the appellant shall pay 
 said expenses; and the value so ascertained and determined 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 entitled to preference in the allotment of the shares of the 
 new association in proportion to the number of shares held by 
 them respectively in the expiring association. 
 
 136. The act of Congress, approved April 12, 1902, provides Re-extension oj 
 that the Comptroller of the Currency is hereby authorized in the corporate 
 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 charteir of any national banking association extended 
 under said act which shall desire to continue its existence after 
 the expiration of its charter. 
 
 Chapter Seven. 
 LIQUIDATION AND RECEIVERSHIP. 
 
 137. (Sec. 5220.) Any association may go into liquidation Tn>o-thirds vote 
 and be closed by the vote of its shareholders owning two-thirds ^^Q^^i^'^d for 
 
 of its stock. liquidation. 
 
112 N. W. HALSEY & CO. 
 
 Notice of 138. (Sec. 5221.) Whenever a vote is taken to go into 
 voluntary liquidation it shall be the duty of the board of directors to cause 
 Liqmaauon. j^^jj^.^ ^f jj^j, ^^^^ jq j^g certified, under the seal of the association, 
 by its president or cashier, to the Comptroller of the Currency, 
 and the publication thereof to be made for a period of tv^o months 
 in a newspaper published in the city of New York, and also in a 
 newspaper published in the city or town in which the association 
 is located, or if no newspaper is there published, then in the 
 newspaper published nearest thereto, that the association is closing 
 up its affairs, arid notifying the holders of its notes and other 
 creditors to present the notes and other claims against the association 
 for payment. 
 
 Deposit of 139. (Sec. 5222.) Within six months from the date of the 
 /flDj/u/ mone];. ^^^^ ^^ ^^ -^^^^ liquidation the association shall deposit with the 
 Treasurer of the United States lawful money of the United States 
 sufficient to redeem all its outstanding circulation. The Treasurer 
 shall execute duplicate receipts for money thus deposited, and 
 deliver one to the association and the other to the Comptroller of 
 the Currency, stating the amount received by him, and the purpose 
 for which it has been received; and the money shall be paid into 
 the Treasury of the United States, and placed to the credit of 
 such association upon redemption account. 
 
 No deposit 140. (Sec. 5223.) An association which is in good faith 
 
 required for vvinding up its business for the purpose of consolidating with another 
 
 consoli a ion. ^^^^^i^^^^^ gjj^n poj. j^g required to deposit lawful money for its 
 
 outstanding circulation; but its assets and liabilities shall be reported 
 
 by the association with which it is in process of consolidation. 
 
 Bonds of 141. (Sec. 5224.) Whenever a sufficient deposit of lawful 
 liquidating money to redeem the outstanding circulation of an asso- 
 banf(s. ^.Jj^^Jqjj proposing to close its business has been made, the 
 bonds deposited by the association to secure payment of 
 its notes shall be reassigned to it, in the manner prescribed 
 by section fifty-one hundred and sixty-two. And there- 
 after the association and its shareholders shall stand dis- 
 charged from all liabilities upon the circulating notes, and 
 
NATIONAL BANK ACT 113 
 
 those notes shall be redeemed at the Treasury of the 
 United States. And if any such bank shall fail to make 
 the deposit and take up its bonds for 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 New 
 York City, and, after providing for the redemption and 
 cancellation of said circulation, and the necessary expenses 
 of the sale, to pay over any balance remaining to the bank 
 or its legal representatives. 
 
 142. Sec. 7 of the act of July 12, 1882, provides that Banks whose 
 national banking associations whose corporate existence has expired existence has 
 or shall hereafter expire, and which do not avail themselves of c^'''^"- 
 
 the provisions of this act, shall be required to comply with the 
 provisions of sections fifty-two hundred and twenty-one and fifty-two 
 hundred and twenty-two of the 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 fifty-two 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 associations is 
 hereby extended for the sole purpose of liquidating their affairs 
 until such affairs are finally closed. 
 
 143. (Sec. 5226.) Whenever any national banking association Protest of bank 
 fails to redeem in the lawful money of the United States any of circulation. 
 
 its circulating notes, upon demand of payment duly made during 
 the usual hours of business, at the office of such association, the 
 holder may cause the same to be protested, in one package by a 
 notary public, unless the president or cashier of the association 
 whose notes are presented for payment offers to waive demand and 
 notice of the protest, and, in pursuance of such offer, makes, signs, 
 and delivers to the party making such demand an admission in 
 writing, stating the time of the demand, the amount demanded, 
 and the fact of the nonpayment thereof. The notary public, on 
 making such protest, or upon receiving such admission, shall 
 
114 N. W. HALSEY & CO. 
 
 forthwith forward such admission or notice of protest to the Comp- 
 troller of the Currency, retaining a copy thereof. If, however, 
 satisfactory proof is produced to the notary pubHc that the payment 
 of the notes demanded is restrained by order of any court of 
 competent jurisdiction, he shall not protest the same. When the 
 holder of any notes causes more than one note or package to be 
 protested on the same day, he shall not receive pay for more than 
 one protest. 
 
 Bonds forfeited 144. (Sec. 5227.) On receiving notice that any national 
 if circulation banking association has failed to redeem any of its circu- 
 is dishonored. Jating notes, as specified in the preceding section, the 
 Comptroller of the Currency, with the concurrence of the 
 Secretary of the Treasury, may appoint a special agent, 
 of whose appointment immediate notice shall be given to 
 such association, who shall immediately proceed to 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 ascertained. 
 If from such protest, and the report so made, the Comp- 
 troller is satisfied that such association has refused to pay 
 its circulating notes and is in default, he shall, within 
 thirty days after he has received notice of such failure, 
 declare the bonds deposited by such association forfeited 
 to the United States, and they shall thereupon be so 
 forfeited. 
 
 Bank ma}) 145. (Sec. 5237.) Whenever an association against which 
 enjom further proceedings have been instituted, on account of any alleged refusal 
 proceedings. ^^ 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 Comp- 
 troller of the Currency to show cause why further proceedings 
 should not be enjoined, and after the decision of the court or finding 
 of the jury that such association has not refused to redeem its 
 
NATIONAL BANK ACT US 
 
 circulating notes, when legally presented, in the lawful money of 
 the United States, shall make an order enjoining the Comptroller, 
 and any receiver acting under his direction, from all further pro- 
 ceedings on account of such alleged refusal. 
 
 146. (Sec. 736.) All proceedings by any national banking Where 
 association to enjoin the Comptroller of the Currency, under the proceedings 
 provisions of any law relating to national banking associations, shall ^"^ ^ °"° * 
 be had in the district where such association is located. 
 
 147. (Sec. 5228.) After a default on the part of an asso- Suspension of 
 ciation to pay any of its circulating notes has been ascertained ^"^iness after 
 by the Comptroller, and notice thereof has been given by him to 
 
 the association, it shall not be lawful for the association suffering 
 the same to pay out any of its notes, discount any notes or bills, 
 or otherwise prosecute the business of banking, except to receive 
 and safely keep money belonging to it, and to deliver special 
 deposits. 
 
 148. (Sec. 5229.) Immediately upon declaring the bonds Notice to present 
 of an association forfeited for nonpayment of its notes, circulation for 
 the Comptroller shall give notice, in such manner as the redemption. 
 Secretary of the Treasury shall, by general rules or other- 
 wise direct, to the holders of the circulating notes of such 
 association, to present them for payment at the Treasury 
 
 of the United States; and the same shall be paid as 
 presented in lawful money of the United States; where- 
 upon 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. 
 
 149. (Sec. 5230.) Whenever the Comptroller has become Bonds sold at 
 satisfied, by the protest or the waiver and admission public auction. 
 specified in section fifty-two hundred and twenty-six, or 
 by the report provided for in section fifty-two hundred 
 and twenty-seven, that any association has refused to pay 
 its circulating notes, he may, instead of canceling its 
 bonds, cause so much of them as may be necessary to 
 redeem its outstanding notes to be sold at public auction 
 
116 N. W. HALSEY & CO. 
 
 in the city of New York, after giving thirty days* notice 
 of such sale to the association. 
 
 First lien for 150. (Sec. 5230.) For any deficiency in the proceeds of all 
 redeeming the bonds of an association, when thus sold, to reimburse to the 
 circulation. UjjJted States the amount expended in paying the circulating notes 
 of the association, the United States shall have a paramount lien 
 upon all its assets; and such deficiency shall be made good out of 
 such assets in preference to any and all other claims whatsoever, 
 except the necessary costs and expenses of administering the same. 
 
 Bonds sold at 151. (Sec. 5231.) The Comptroller may, if he deems it 
 private sale. £qj. ^jje interest of the United States, sell at private sale 
 any of the bonds of an association shown to have made 
 default in paying its notes, and receive therefor either 
 money or the circulating notes of the association. But 
 no such bonds shall be sold by private sale for less than 
 par, nor for less than the market value thereof at the time 
 of sale; and no sales of any such bonds, either public or 
 private, shall be complete until the transfer of the bonds 
 shall have been made with the formalities prescribed by 
 sections fifty-one hundred and sixty-two, fifty-one hundred 
 and sixty-three, and fifty-one hundred and sixty-four. 
 
 Appointment 152. (Sec. 5234.) On becoming satisfied, as specified in sec- 
 ana duties of tions fifty-two hundred and twenty-six and fifty-two hundred and 
 receiver, twenty-seven, that any association has refused to pay its circulating 
 notes as therein mentioned, and is in default, the Comptroller of 
 the Currency may forthwith appoint a receiver, and require of him 
 such bond and security as he deems proper. Such receiver, under 
 the direction of the Comptroller, shall take possession of the books, 
 records, and assets of every description of such association, collect 
 all debts, dues, and claims belonging to it, and, upon the order of a 
 court of record of competent jurisdiction, may sell or compound all 
 bad or doubtful debts, and, on a like order, may sell all the real and 
 personal property of such association, on such terms as the court 
 shall direct; and may, if necessary to pay the debts of such 
 association, enforce the individual liability of the stockholders. Such 
 receiver shall pay over all money so made to the Treasurer of 
 
NATIONAL BANK ACT 117 
 
 the United States, subject to the order of the Comptroller, and 
 also make report to the Comptroller of all his acts and proceedings. 
 
 153. Sec. 1 of the act of June 30, 1876, provides that when- When receiver 
 ever any national banking association shall be dissolved, and its ^^^ Y^ 
 rights, privileges, and franchises declared forfeited, as prescribed 
 
 in section fifty-tw^o hundred and thirty-nine of the Revised Statutes 
 of the United States, or whenever any creditor of any national 
 banking association shall have obtained a judgment against it in 
 any court of record, and made application, 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 of the national banking association, he may, after 
 due examination of its affairs, in either case, appoint a receiver, 
 who shall proceed to close up such association, and enforce the 
 personal liability of the shareholders, as provided in section fifty- 
 two hundred and thirty-four of said statutes. 
 
 A receiver may also be appointed, under the provisions of 
 section fifty-two hundred and thirty-four of the Revised Statutes 
 of the United States, for the following violations of law: 
 
 Where the capital stock of a national bank has not been fully 
 paid in and it is thus reduced below the legal minimum and 
 remains so for thirty days. (Sec. 5141, R. S.) 
 
 For failure to make good the lawful-money reserve within thirty 
 days after notice. (Sec. 5191, R. 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, R. S.) 
 
 For failure to make good any impairment in its capital stock 
 and refusing to go into liquidation within three months after 
 receiving notice. (Sec. 5205, R. S.) 
 
 For false certification of checks by any officer, clerk, or agent. 
 (Sec. 5208, R. S.) 
 
 154. (Sec. 5235.) The Comptroller shall, upon appointing a (.f^JiiQ^^ qj 
 receiver, cause notice to be given, by advertisement in such insolvent bankS' 
 
118 N. W. HALSEY & CO. 
 
 newspapers as he may direct, for three consecutive months, calHng on 
 all persons who may have claims against such association to present 
 the same and to make legal proof thereof. 
 
 Distribution of 155. (Sec. 5236.) From time to time, after full provision has 
 assets of been first made for refunding to the United States any deficiency 
 msoLveni cantos. -^^ redeeming the notes of such association, the Comptroller shall 
 make a ratable dividend of the money so paid over to him by 
 such receiver on all such claims as may have been proved to his 
 satisfaction or adjudicated in a court of competent jurisdiction, and, 
 as the proceeds of the assets of such association are paid over to 
 him, shall make further dividends on all claims previously proved 
 or adjudicated; and the remainder of the proceeds, if any, shall 
 be paid over to the shareholders of such association, or their legal 
 representatives, in proportion to the stock by them respectively held. 
 
 Expenses of 156. (Sec. 5238.) All fees for protesting the notes issued by 
 Teceivership—- ^jjy national banking association shall be paid by the person 
 ' procuring the protest to be made, and such association shall be 
 liable therefor; but no part of the bonds deposited by such asso- 
 ciation shall be applied to the payment of such fees. All expenses 
 of any preliminary or other examinations into the condition of any 
 association shall be paid by such association. All expenses of 
 any receivership shall be paid out of the assets of such association 
 before distribution of the proceeds thereof. 
 
 Forfeiture of 157. (Sec. 5239.) If the directors of any national banking 
 charter, association shall knowingly violate, or knowingly permit any of 
 the officers, agents, or servants of the association to violate, any 
 of the provisions of this Title, all the rights, privileges, and fran- 
 chises of the association shall be thereby forfeited. Such violation 
 shall, however, 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 of the Currency, in his own 
 name, before the association shall be declared dissolved. 
 
 Individual 158. (Sec. 5239.) And in cases of such violation every 
 
 liability o/ director who participated in or assented to the same shall be held 
 
 directors. jjj^Hjjg in his personal and individual capacity for all damages 
 
NATIONAL BANK ACT 119 
 
 which the association, its shareholders, or any other person shall 
 have sustained in consequence of such violation. 
 
 159. The act of March 29, 1886, provides: (Sec. 1.) That Receiver ma\f 
 whenever the receiver of any national bank duly appointed by the Purchase property 
 Comptroller of the Currency, and who shall have duly qualified ° '^ ° ^^ 
 and entered upon the discharge of his trust, shall find it in his 
 opinion necessary, in order to fully protect and benefit his said 
 trust, to the extent of any and all equities that such trust may 
 have in any property, real or personal, by reason of any bond, 
 mortgage, assignment, or other proper legal claim attaching thereto, 
 and which said property is to be sold under any execution, decree 
 of foreclosure, or proper order of any court of jurisdiction, he 
 may certify the facts in the case, together with his opinion as to 
 the value of the property to be sold and the value of the equity 
 his said trust may have in the same, to the Comptroller of the 
 Currency, together with a request for the right and authority to 
 use and employ so much of the money of said trust as may be 
 necessary to purchase such property at such sale. 
 
 Sec. 2. That such request, if approved by the Comptroller of 
 the Currency, shall be, together with the certificate of facts in the 
 case and his recommendation as to the amount of money which in 
 his judgment should be so used and employed, submitted to the 
 Secretary of the Treasury, and if the same shall likewise be 
 approved by him the request shall be by the Comptroller of the 
 Currency allowed, and notice thereof, with copies of the request, 
 certificate of facts, and indorsement of approvals, shall be filed 
 with the Treasurer of the United States. 
 
 Sec. 3. That whenever any such request shall be allowed as 
 hereinbefore provided, the said Comptroller of the Currency shall 
 be, and is, empowered to draw upon and from such funds of any 
 such trust as may be deposited with the Treasurer of the United 
 States for the 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 
 
120 
 
 N. W. HALSEY & CO. 
 
 Currency direct, with the approval of the Secretary of the Treasury, 
 for such purpose only and in such manner as he may determine 
 and order. 
 
 Taxes on ] 60. The act of March 1, 1879, provides that whenever and 
 
 .. II . after any bank has ceased to do business by reason of insolvency 
 national banks . . , „ , i n i • i • 
 
 remilied. '^^ bankruptcy no tax shall be assessed or collected, or paid mto 
 
 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. 
 
 Appointment 
 
 and qualification 
 
 of shareholders' 
 
 agent. 
 
 161. Sec. 3 of the act of June 30, 1876, as amended by acts 
 of August 3, 1892, and March 2, 1897, provides that whenever 
 any association shall have been or shall be placed in the hands 
 of a receiver, as provided in section fifty-two hundred and thirty- 
 four and other sections of the Revised Statutes of the United 
 States, and when, as provided in section fifty-two hundred and 
 thirty-six thereof, the Comptroller of the Currency shall have paid to 
 each and every creditor of such association, not including share- 
 holders who are creditors of such association, whose claim or 
 claims as such creditor shall have been proved or allowed as therein 
 prescribed, the full amount of such claims, and all expenses of 
 the receivership and the redemption of the circulating notes of such 
 association shall have been provided for by depositing lawful money 
 of the United States with the Treasurer of the United States, the 
 Comptroller of the Currency shall call a meeting of the share- 
 holders of such association by giving notice thereof for thirty days 
 in a newspaper published in the town, city, or county where the 
 business of such association was carried on, or if no newspaper is 
 there published, in the newspaper published nearest thereto. At 
 such meeting the shareholders shall determine whether the receiver 
 shall be continued and shall wind up the affairs of such association, 
 or whether an agent shall be elected for that purpose, and in so 
 
NATIONAL BANK ACT 121 
 
 determining 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 of 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 be 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 of a majority of the stock in value and number of 
 shares, determine that an agent shall be elected, the said meeting 
 shall thereupon proceed to elect an agent, voting by ballot, in 
 person or by proxy, each share of stock entitling the holder to 
 one vote, and the person who shall receive votes representing at 
 least a majority of stock in value and number shall be declared 
 the agent for the purposes hereinafter provided; and whenever any 
 of the shareholders of the association shall, after the election of 
 such agent, have executed and filed a bond to the satisfaction of 
 the Comptroller of the Currency, conditioned for the payment and 
 discharge in full of each and every claim that may hereafter 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 uncollected or other assets 
 of such association then remaining in the hands or subject to the 
 order and control of said Comptroller and said receiver, or either 
 of them; and for this purpose said Comptroller and said receiver 
 are hereby severally empowered and directed to execute any deed, 
 assignment, transfer, or other instrument in writing that may be 
 necessary 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 discharged from any and 
 all liabilities to such association and to each and all the creditors 
 and shareholders thereof. 
 
122 N. W. HALSEY & CO. 
 
 Duties of 1 62. Sec. 3 of the act of June 30, 1 876, as amended by acts 
 shareholders of August 3, 1892, and March 2, 1897, provides: 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 asso- 
 ciation, 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 prop- 
 erty in his hands, and may sell, compromise, or compound the 
 debts due to such association, with the consent and approval of the 
 circuit or district court of the United States for the district where 
 the business of such association was carried on, and shall at the 
 conclusion of his trust render to such district or circuit court a 
 full account of all his proceedings, receipts, and expenditures as 
 such agent, which court shall, upon due notice, settle and adjust 
 such accounts and discharge said agent and the sureties upon said 
 bond. And in case any such agent so elected shall refuse to serve, 
 or die, resign, or be removed, any shareholder may call a meeting 
 of the shareholders of such association in the town, city, or village 
 where the business of the said association was carried on, by 
 giving notice thereof for thirty days in a newspaper published in said 
 town, city, or village, or if no newspaper is there published, in 
 the newspaper published nearest thereto, at which meeting the 
 shareholders shall elect an agent, voting by ballot, in person or by 
 proxy, each share of stock entitling the holder to one vote, and 
 when such agent shall have received votes representing 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 penalty 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 hereinbefore provided administrators or 
 executors of deceased shareholders may act and sign as the decedent 
 
NATIONAL BANK ACT 123 
 
 might have done if living, 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 property of any 
 such association which may be undistributed at the time of such 
 meeting or may be subsequently received 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 assessments 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 
 
 "Third. The balance ratably among such stockholders, in pro- 
 portion 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 Comp- 
 troller or said agent." 
 
 163. (Sec. 5242.) All transfers of the notes, bonds, bills of m^goi preference 
 exchange, or other evidences of debt owing to any national banking of creditors, 
 association, or of deposits to its credit; all assignments of mort- 
 gages, sureties on real estate, or of judgments or decrees in its 
 
 favor; all deposits of money, bullion, or other valuable thing for 
 its use, or for the use of any of its shareholders or creditors; and 
 all payments of money to either, made after the commission of an 
 act of insolvency, or in contemplation thereof, made with a view 
 to prevent the application of its assets in the manner prescribed by 
 this chapter, or with a view to the preference of one creditor to 
 another, except in payment of its circulating notes, shall be utterly 
 null and void. No attachment, injunction, or execution shall be 
 issued against such association or its property before final judgment 
 in any suit, action, or proceeding in any State, county, or municipal 
 court. 
 
 164. Sec. 2 of the act of June 30, 1876, provides that when . . 
 
 any national banking association shall have gone into liquidation shareholders. 
 
124 N. W. HALSEY & CO. 
 
 under the provisions of section five thousand two hundred and 
 twenty of 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 by such 
 creditor on behalf of himself and of all other creditors of the asso- 
 ciation, against the shareholders thereof, in any court of the United 
 States having original jurisdiction in equity for the district in 
 which such association may have been located or established. 
 
 Chapter Eight. 
 CRIMES. JURISDICTION. ETC. 
 
 Penalty for 165. (Sec. 5187.) No officer acting under the provisions of 
 
 imp ope jjjjg Title shall countersign or deliver to any association, or to any 
 countersigning . • i • i i i 
 
 or deliverins ^"^^^ company or person, any circulatmg notes contemplated by 
 
 circulation. ^^^ Title, except in accordance with the true intent and meaning 
 
 of its provisions. Every officer who violates this section shall be 
 
 deemed guilty of a high misdemeanor, and shall be fined not more 
 
 than double the amount so countersigned and delivered, and 
 
 imprisoned not less than one year and not more than fifteen years. 
 
 Penalty) for |66. (Sec. 5207.) No association shall hereafter offer or 
 
 pledging United j-gceive United States notes or national-bank notes as security or 
 
 otates notes or n . i -^ r i r r • 1 • 
 
 banh cir I It n ^^ collateral security tor any loan or money, or for a consideration 
 
 agree to withhold the same from use, or offer or receive the custody 
 
 or promise of custody of such notes as security, or as collateral 
 
 security, or consideration for any loan of money. Any association 
 
 offending against the provisions of this section shall be deemed 
 
 guilty of a misdemeanor, and shall be fined not more than one 
 
 thousand dollars and a further sum equal to one-third of the money 
 
 so loaned. The officer or officers of any association who shall 
 
 make any such loan shall be liable for a further sum equal to 
 
 one-quarter of the money loaned; and any fine or penalty incurred 
 
 by a violation of this section shall be recoverable for the benefit 
 
 of the party bringing such suit. Sec. 12 of the act of July 12, 
 
NATIONAL BANK ACT 125 
 
 1882, provides that the provisions of this section shall apply to 
 the United States certificates of gold and silver coin. 
 
 167. (Sec. 5188.) It shall not be lawful to design, engrave. Penally for 
 
 print, or in any manner make or execute, or to utter, issue, distribute, iniitatmg banii 
 
 circulate, or use any business or professional card, notice, placard^ , ... ' 
 I 1 11 11 1 • 111 -v I f advertising 
 
 circular, handbill, or advertisement in the likeness or similitude or purpose*. 
 
 any circulating note or other obligation or security of any banking 
 
 association organized or acting under the laws of the United States 
 
 which has been or may be issued under this Title, or any act of 
 
 Congress, or to write, print, or otherwise impress upon any such 
 
 note, obligation, or security any business or professional card, 
 
 notice, or advertisement, or any notice or advertisement of any 
 
 matter or thing whatever. Every person who violates this section 
 
 shall be liable to a penalty of one hundred dollars, recoverable 
 
 one-half to the use of the informer. 
 
 168. (Sec. 5189.) Every person who mutilates, cuts, defaces. Penalty for 
 disfigures, or perforates with holes, or unites or cements together, "i""'^"[i? 
 or does any other thing to any bank bill, draft, note, or other 
 
 evidence of debt, issued by any national banking association, or 
 who causes or procures the same to be done, with intent to render 
 such bank bill, draft, note, or other evidence of debt unfit to be 
 reissued by said association, shall be liable to a penalty of fifty 
 dollars, recoverable by the association. 
 
 169. (Sec. 5415.) Every person who falsely makes, forges. Penalty for 
 or counterfeits, or causes or procures to be made, forged, or counterfeiting 
 counterfeited, or willingly aids or assists in falsely making, forging, ^ ^" ^ '*'"• 
 or counterfeiting, any note in imitation of, or purporting to be in 
 
 imitation of, the circulating notes issued by any banking association 
 now or hereafter authorized and acting under the laws of the 
 United States; or who passes, utters, or publishes, or attempts to 
 pass, utter, or publish, any false, forged, or counterfeited note 
 purporting to be issued by any such association doing a banking 
 business, knowing the same to be falsely made, forged, or counter- 
 feited, or who falsely alters, or causes or procures to be falsely 
 altered, or willingly aids or assists in falsely altering any such 
 
126 N. W. HALSEY & CO. 
 
 circulating notes, or passes, utters, or publishes, or attempts to pass, 
 utter, or publish as true, any falsely altered or spurious circulating 
 note issue, or purporting to have been issued, by any such banking 
 association, knowing the same to be falsely altered or spurious, 
 shall be imprisoned at hard labor not less than five years nor more 
 than fifteen years, and fined not more than one thousand dollars. 
 
 What are 170. (Sec. 5413.) The v^ords "obligation or other security of 
 ^ ofc(«ga'ions of ^^ Uj^jj^j States" shall be held to mean all bonds, certificates of 
 indebtedness, national-bank currency, coupons. United States notes, 
 Treasury notes, fractional notes, certificates of deposit, bills, checks, 
 or drafts for money drawn by or upon authorized officers of the 
 United States, stamps and other representatives of value, of what- 
 ever denomination, which have been or may Ibe] issued under 
 any act of Congress. 
 
 Penalt\ffor 171. (Sec. 5430.) Every person having control, custody, or 
 
 illegal possession of any plate, or any part thereof, from which has been 
 
 ± I • 1 printed, or which may be prepared by direction of the Secretary 
 use of material *^, , ' . , ... 1 1 •■ i 
 
 for circulation, °f *"^ Treasury for the purpose of prmtmg, any obligation or other 
 
 security of the United States, who uses such plate, or knowingly 
 
 suffers the same to be used for the purpose of printing any such 
 
 or similar obligation, or other security, or any part thereof, except 
 
 as may be printed for use of the United States by order of the 
 
 proper officer thereof; and every person who engraves, or causes 
 
 or procures to be engraved, or assists in engraving, any plate in 
 
 the likeness of any plate designed for the printing of such obligation 
 
 or other security, or who sells any such plate, or who brings into 
 
 the United States from any foreign place any such plate, except 
 
 under the direction of the Secretary of the Treasury or other 
 
 proper officer, or with any other intent, in either case, than that such 
 
 plate be used for the printing of the obligations or other securities 
 
 of the United States; or who has in his control, custody, or 
 
 possession any metallic plate engraved after the similitude of any 
 
 plate from which any such obligation or other security has been 
 
 printed, with intent to use such plate, or suffer the same to be used 
 
 in forging or counterfeiting any such obligation or other security, 
 
 or any part thereof; or who has in his possession or custody. 
 
NATIONAL BANK ACT 127 
 
 except under authority from the Secretary of the Treasury or other 
 proper officer, any obligation or other security, engraved and 
 printed after the simiHtude of any obHgation 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, 
 photographed, made, or executed, or aids in printing, photographing, 
 making, or executing any engraving, photograph, print, or impression 
 in the likeness of any such obligation or other security, or any part 
 thereof, or who sells any such engraving, photograph, print, or 
 impression, except to the United States, or who brings into the 
 United States from any foreign place any such engraving photo- 
 graph, print, or impression, except by direction of some proper 
 officer of the United States, or who has or retains in his control 
 or possession, after a distinctive paper has been adopted by the 
 Secretary of the Treasury for the obligations and other securities 
 of the United States, any similar paper adapted to the making of 
 any such obligation or other security, except under the authority of 
 the Secretary of the Treasury or some other proper officer of the 
 United States, shall be punished by a fine of not more than five 
 thousand dollars, or by imprisonment at hard labor not more than 
 fifteen years, or by both. 
 
 172. (Sec. 5431.) Every person who, with intent to defraud. Penalty for 
 passes, utters, publishes, or sells, or attempts to pass, utter, publish, P<^^^^8 ^ 
 or sell, or brings into the United States with intent to pass, publish, • i •• 
 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 imprisonment at hard labor 
 not more than fifteen years. 
 
 173. (Sec. 5432.) Every person who, without authority from Penalty for 
 
 the United States, takes, procures, or makes, upon lead, foil, wax, '^^'"^ _ 
 
 1 , iL u I * • 1 • • unauthorized 
 
 plaster, paper, or any other substance or material, an impression, . . /. 
 
 f f II f III II impressions of 
 
 stamp, or imprint or, from, or by the use or, any bedplate, bed- (qqI^^ 
 
 piece, die, roll, plate, seal, type, or other tool, implement, instru- 
 ment, or thing used or fitted, or intended to be used, in printing. 
 
128 N. W. HALSEY & CO. 
 
 stamping, or impressing, or in making other tools, implements, 
 instruments, or things, to be used, or fitted or intended to be used, 
 in printing, stamping, or impressing any kind or description of obHga- 
 tion or other security of the United States, now authorized or hereafter 
 to be authorized by the United States, or circulating note or evidence 
 of debt of any banking association under the laws thereof, shall be 
 punished by imprisonment at hard labor not more than ten years, 
 or by a fine of not more than five thousand dollars, or both. 
 
 Penalty) for 1 74. (Sec. 5433.) Every person who, with intent to defraud, 
 having such Jj^s J^ J^is possession, keeping, custody, or control, without authority 
 '^ * from the United States, any imprint, stamp, or impression, taken or 
 
 made upon any substance or material whatsoever, of any tool, 
 implement, instrument, or thing used, or fitted, or intended to be used 
 for any of the purposes mentioned in the preceding section; or who, 
 with intent to defraud, sells, gives, or delivers any such imprint, stamp, 
 or impression to any other person, shall be punished by imprison- 
 ment at hard labor not more than ten years, or by a fine of not 
 more than five thousand dollars. 
 
 Penalty) for 175. (Sec. 5434.) Every person who buys, sells, exchanges, 
 dealing m transfers, receives, or delivers any false, forged, counterfeited, or 
 counterfeit ^i^gj-ed obligation or other security of the United States, or circu- 
 lating note of any banking association organized or acting under 
 the laws thereof, which has been or may hereafter be issued by 
 virtue of any act of Congress, with the intent that the same be 
 passed, published, or used as true and genuine, shall be imprisoned 
 at hard labor not more than ten years, or fined not more than 
 five thousand dollars, or both. 
 
 Penalty for 1 76. (Sec. 5437.) In all cases where the charter of any cor- 
 
 issuing poration which has been or may be created by act of Congress 
 
 circutation ^^^ expired or may hereafter expire, if any director, officer, or 
 
 • V- agent of the corporation, or any trustee thereof, or any agent of 
 
 such trustee, or any person having in his possession or under his 
 
 control the property of the corporation for the purpose of paying 
 
 or redeeming its notes and obligations, knowingly issues, reissues, 
 
 or utters as money, or in any other way knowingly puts in circulation 
 
 any bill, note, check, draft, or other security purporting to have 
 
NATIONAL BANK ACT 129 
 
 been made by any such corporation whose charter has expired, 
 or by any officer thereof, or purporting to have been made under 
 authority derived therefrom, or if any person knowingly aids in 
 any such act, he shall be punished by a line of not more than ten 
 thousand dollars, or by imprisonment not less than one year nor 
 more than five years, or by both such fine and imprisonment. But 
 nothing herein shall be construed to make it unlawful for any 
 person, not being such director, officer, or agent of the corporation, 
 or any trustee thereof, or any agent of such trustee, or any person 
 having in his possession or under his control the property of the 
 corporation for the purpose hereinbefore set forth, who has received 
 or may hereafter receive such bill, note, check, draft, or other 
 security, bona fide and in the ordinary transactions of business, to 
 utter as money and otherwise circulate the same. 
 
 1 n . (Sec. 5208.) It shall be unlawful for any officer, clerk, Fahe certification 
 or agent of any national banking association to certify any check °f checl^s. 
 drawn upon the association unless the person or company drawing 
 the check has on deposit with the association, at the time such 
 check is certified, an amount of money equal to the amount specified 
 in such check. Any check so certified by duly authorized officers shall 
 be a good and valid obligation against the association; but the act 
 of any officer, clerk, or agent of any association, in violation of 
 this section, shall subject such bank to the liabilities and proceedings 
 on the part of the Comptroller as provided for in section fifty-two 
 hundred and thirty-four. 
 
 1 78. Sec. 1 3 of the act of July 1 2, 1 882, provides that any Penalty) for 
 officer, clerk, or agent of any national banking association who /^"^ certification 
 shall willfully violate the provisions of section fifty-two hundred °' ^"^^'i^' 
 and eight of the Revised Statutes of the United States, or who shall 
 resort to any device, or receive any fictitious obligations, direct or 
 collateral, in order to evade the provisions thereof, or who shall 
 certify checks before the amount thereof shall have been regularly 
 entered to the credit of the dealer upon the books of the banking 
 association, shall be deemed guilty of a misdeamor an4 shall, 
 on conviction thereof in any circut or district court of the United 
 States, be fined not more than five thousand dollars, or shall be 
 
130 N. W. HALSEY & CO. 
 
 imprisoned not more ^an five years, or both, in the discretion of 
 the court. 
 
 Penaltv for ' ^^* (^EC. 5209.) Every president, director, cashier, teller, 
 official clerk, or agent of any association who embezzles, abstracts, or 
 malfeasance, willfully misapplies any of the moneys, funds, or credits of the 
 association, or who, without authority from the directors, issues 
 or puts in circulation any of the notes of the association; or who, 
 without such authority, issues or puts forth any certificate of deposit, 
 draws any order or bill of exchange, makes any acceptance, assigns 
 any note, bond, draft, bill of exchange, mortgage, judgment, or 
 decree; or who makes any false entry in any book, report, or 
 statement of the association, with intent, in either case, to injure 
 or defraud the association or any other company, body politic or 
 corporate, or any individual person, or to deceive any officer of the 
 association or any agent appointed to examine the affairs of any 
 such association; and every person who with Hke intent aids or 
 abets any officer, clerk, or agent in any violation of this section, 
 shall be deemed guilty of a misdemeanor, and shall be imprisoned 
 not less than five years nor more than ten. 
 
 Jurisdiction of '®0- (Sec. 629.) The circuit courts shall have original 
 
 circuit courts jurisdiction of all suits brought by any banking association 
 
 to enjom established in the district for which the court is held, under 
 
 Comptroller, jj^^ provisions of Title "The NATIONAL Banks," to enjoin the 
 
 Comptroller of the Currency, or any receiver acting under his 
 
 direction, as provided by said Title. 
 
 General '^'* ^ec. 4 of the act of July 12, 1882, provides that the 
 
 jurisdiction of jurisdiction for suits hereafter brought by or against any association 
 
 national-bank established under any law providing for national banking associa- 
 
 *^^"* tions, 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 by or against banks not organized under 
 
 any law of the United States which do or might do banking 
 
 business where such national banking associations may be doing 
 
 business when such suits may be begun. And all laws and parts 
 
 of laws of the United States inconsistent with this proviso be, 
 
 and the same are hereby, repealed. Sec. 4 of the act of March 
 
NATIONAL BANK ACT 131 
 
 3, 1887, provides that all national banking associations established 
 
 under the laws of the United States shall, for the purposes of all 
 
 actions by or against them, real, personal, or mixed, and all suits 
 
 in equity, be deemed citizens of the States in which they are 
 
 respectively located; and in such cases the circuit and district 
 
 courts shall not have jurisdiction other than such as they would have 
 
 in cases between individual citizens of the same State. The 
 
 provisions of this section shall not be held to afFect the jurisdiction 
 
 of the courts of the United States in cases commenced by the , 
 
 United States or by direction of any officer thereof, of cases for 
 
 winding up the affairs of any such bank. 
 
 182. (Sec. 884.) Every certificate, assignment, and conveyance Sealed 
 executed by the Comptroller of the Currency, in pursuance of law, ^"""J^^^^^^ oj 
 and sealed with his seal of office, shall be received in evidence in competent 
 all places and courts; and all copies of papers in his office, evidence. 
 certified by him and authenticated by the said seal, shall in all 
 
 cases be evidence equally with the originals. An impression of 
 such seal directly on the paper shall be as vaUd as if made on 
 wax or wafer. 
 
 183. (Sec. 885.) Copies of the organization certificate of any Certified cop]} of 
 national banking association, duly certified by the Comptroller of ^'^Sf^/^^zation 
 
 the Currency and authenticated by his seal of office, shall be • j 
 evidence in all courts and places within the jurisdiction of the 
 United States of the existence of the association and of every 
 matter which could be proved by the production of the original 
 certificate. 
 
 184. (Sec. 380.) All suits and proceedings arising out of Suits against 
 the provisions of law governing national banking associations, ^"''S" otates 
 
 in which the United States or any of its officers or agents shall ''^''^" '"' ''^^"^' 
 
 be parties, shall be conducted by the district attorneys of the 
 
 several districts under the direction and supervision of the Solicitor 
 of the Treasury. 
 
 185. Sec. 31 of the Act of May 2, 1890, provides that all laws /nt/wn Territory, 
 relating to national banking associations shall have the same force 
 
 and effect in Indian Territory as elsewhere in the United States. 
 
132 N. W. HALSEY 6- CO. 
 
 Chapter Nine. 
 
 TRUST COMPANIES. ETC.. DISTRICT OF COLUMBIA. 
 
 Provision for 1 86. The act of October 1 . 1 890. sec. I . provides that 
 organization, corporations may be formed within the District of Columbia 
 for the purposes hereinafter mentioned in the following manner: 
 Any time hereafter any number of natural persons, citizens of 
 the United States, not less than twenty-five, may associate them- 
 selves together to form a company for the purpose of carrying 
 on in the District of Columbia any one of the three classes of 
 business herein specified, to wit: 
 
 First. A safe deposit, trust, loan, and mortgage business. 
 
 Second. A title insurance, loan, and mortgage business. 
 
 Third. A security, guaranty, indemnity, loan, and mortgage 
 business: Provided, That the capital stock of any of said companies 
 shall not be less than one million of dollars: Provided further. That 
 any of said companies may also do a storage business when their 
 capital stock amounts to the sum of not less than one million two 
 hundred thousand dollars. 
 
 Organization 187. (Sec. 2.) That such persons shall, under their hands 
 certificate of and seals, execute, before some officer in said District competent 
 company, j^ jj^j^g j|^g acknowledgment of deeds, an organization certificate, 
 which shall specifically state — 
 Title. First. The name of the corporation. 
 Purposes. Second. The purposes for which it is formed. 
 
 Period of Third. The term for which it is to exist, which shall not exceed 
 existence, t^g term of fifty years, and be subject to alteration, amendment, or 
 repeal by Congress at any time. 
 
 Officers. Fourth. The number of its directors, and the names and residences 
 of the officers who for the first year are to manage the affairs of the 
 company. 
 
 Capital stock. Fifth. The amount of the capital stock and its subdivision into 
 shares. 
 
NATIONAL BANK ACT 133 
 
 188. (Sec. 3.) That this certificate shall be presented to Charter obtained 
 the Commissioners of the District, who shall have power and f^°^ district 
 discretion to grant or to refuse to said persons a charter of incorpora- commissjone s. 
 tion upon the terms set forth in the said certificate and the provisions 
 
 of this act. 
 
 189. (Sec. 4.) That previous to the presentation of the said Notice of 
 certificate to the said Commissioners notice of the intention to '"'enfion to apply 
 apply for such charter shall be inserted in two newspapers of 
 
 general circulation printed in the District of Columbia at least 
 four times a week for three weeks, setting forth briefly the name 
 of the proposed company, its character and object, the names 
 of the proposed corporators, and the intention to make application 
 for a charter on a specified day, and the proof of such publica- 
 tion shall be presented with said certificate when presentation 
 thereof is made to said Commissioners. 
 
 190. (Sec. 5.) That if the charter be granted as aforesaid Charter filed 
 
 it, together with the certificate of the Commissioners granting ^^""^^corder of 
 the same indorsed thereon, shall be filed for record in the office ?• , • . 
 of the recorder of deeds for the District of Columbia, and shall 
 be recorded by him. On the filing of the said certificate with the 
 said recorder of deeds as herein provided, approved as aforesaid 
 by the said Commissioners, the persons named therein and their 
 successors shall thereupon and thereby be and become a body 
 corporate and politic, and as such shall be vested with all the 
 powers and charged with all the liabilities conferred upon and 
 imposed by this act upon companies organized under the provisions 
 hereof: Provided, however. That no corporation created and 
 organized under the provisions hereof, or availing itself of the pro- 
 visions hereof as provided in section eleven, shall be authorized to 
 transact the business of a trust company, or any business of a fiduciary 
 character, until it shall have filed with the Comptroller of the Currency 
 a copy of its certificate of 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 capital stock of said company has been 
 paid in and the deposit of securities made with said Comptroller in 
 the manner and to the extent required by this act. 
 
134 N. W. HALSEY & CO. 
 
 Trust companies ^91. (Sec. 6.) That all companies organized hereunder, or 
 under which shall under the provisions hereof become entitled to transact 
 Comptroller s ^^ business of a trust company, shall report to the Comptroller of 
 ^ * the Currency in the manner prescribed by sections fifty-two hundred 
 
 and eleven, fifty-two hundred and twelve, and fifty-two hundred 
 and thirteen. Revised Statutes of the United States, in the case 
 of national banks, and all acts amendatory thereof or supplementary 
 thereto, and with similar provisions for compensating examiners, 
 and shall be subject to like penalties for failure to do so. The 
 Comptroller shall have and exercise the same visitorial powers 
 over the affairs of the said corporation as is conferred upon him 
 by section fifty-two hundred and forty of the Revised Statutes 
 of the United States in the case of national banks. He shall also 
 have power, when in his opinion it is necessary, to take possession 
 of any such 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. 
 
 Pollers of these 192. (Sec. 7.) That all companies organized under this act 
 companies, are hereby declared to be corporations possessed of the powers 
 and functions of corporations generally, and shall have power — 
 
 Contracts. First. To make contracts. 
 
 Suits. Second. To sue and be sued, implead and be impleaded, in 
 any court as fully as natural persons. 
 
 Seal. Third. To make and use a common seal and alter the same at 
 pleasure. 
 
 Loans. Fourth, To loan money. 
 
 Special powers. Fifth. When organized under subdivision one of the first section 
 of this act to accept and execute trusts of any and every description 
 which may be committed or transferred to them, and to accept the 
 office and perform the duties of a receiver, assignee, executor, adminis- 
 trator, guardian of the estates of minors, with the consent of the guar- 
 dian of the person of such minor, and committee of the estates of 
 lunatics and idiots whenever any trusteeship or any such office or 
 appointment is committed or transferred to them, with their consent, by 
 any person, body politic or corporate, or by any court in the District 
 
NATIONAL BANK ACT 135 
 
 of Columbia, and all such companies organized under the first sub- 
 division of section one of this act are further authorized to accept 
 deposits of money for the purposes designated herein upon such 
 terms as may be agreed upon from time to time with depositors, 
 and to act as agent for the purpose of issuing or countersigning 
 the bonds or obligations of any corporation, association, munici- 
 pality, or State, or other public authority, and to receive and 
 manage any sinking fund on any such terms as may be agreed 
 upon, and shall have power to issue its debenture bonds upon 
 deeds of trust or mortgages of real estate to a sum not exceeding 
 the face value of said deeds of trust or mortgages, and which 
 shall not exceed fifty per centum of the fair cash value of the 
 real estate covered by said deeds or mortgages, to be ascertained 
 by the Comptroller of the Currency. But no debenture bonds 
 shall be issued until the securities on which the same are based 
 have been placed in the actual possession of the trustee named 
 in the debenture bonds, who shall hold said securities until all 
 of said bonds are paid; and when organized under the second 
 subdivision of the first section of this act said company is authorized 
 to insure titles to real estate and to transact generally the business 
 mentioned in said subdivision; and when organized under the 
 third subdivision of section one of this act said company is hereby 
 authorized, in addition to the loan and mortgage business therein 
 mentioned, to secure, guaranty, and insure individuals, bodies 
 politic, associations, and corporations against loss by or through 
 trustees, agents, servants, or employees, and to guaranty the faithful 
 performance of contracts and of obligations of whatever kind 
 entered into by or on the part of any person or persons, association, 
 corporation or corporations, and against loss of every kind: 
 Provided, That any corporation formed under the provisions of 
 this act when acting as trustee shall be liable to account for 
 the amounts actually earned by the moneys held by it in trust 
 in addition to the principal so held; but such corporation may be 
 allowed a reasonable compensation for services performed in 
 the care of the trust estate. 
 
 193. (Sec. 8.) That in all cases in which application shall Competent to 
 be made to any court in the District of Columbia, or wherever °^^ *" trustee, etc. 
 
136 N. W. HALSEY & CO. 
 
 it becomes necessary or proper for said court to appoint a trustee, 
 receiver, administrator, guardian of the estate of a minor, or com- 
 mittee of the estate of a lunatic, it shall and may be lawful for said 
 court (but without prejudice to any preference in the order of 
 any such appointments required by existing law) to appoint any 
 such company organized under the first subdivision of section one 
 of this act, with its assent, such trustee, receiver, administrator, 
 committee, or guardian, with the consent of the guardian of the 
 person of such minor: Provided, however. That no court or judge 
 who is an owner of or in any manner financially interested in 
 the stock or business of such corporation shall commit by order 
 or decree to any such corporation any trust or fiduciary duty. 
 
 Qualifications of 194. (Sec. 9.) That whenever any corporation operating under 
 such trustee, etc. this act shall be appointed such trustee, executor, administrator, 
 receiver, assignee, guardian, or committee as aforesaid, the presi- 
 dent, vice-president, secretary, or treasurer of said company shall 
 take the oath or affirmation now required by law to be made by 
 any trustee, executor, receiver, assignee, guardian, or committee. 
 
 Security for 195. (Sec. 10.) That when any court shall appoint the 
 faithful said company a trustee, receiver, administrator, or such guardian, 
 
 perjormance ^^ committee, or shall order the deposit of money or other valuables 
 with said company, or where any individual or corporation shall 
 appoint any of said companies a trustee, executor, assignee, or such 
 guardian, the capital stock of said company subscribed for or taken, 
 and all property owned by said company, together with the liability 
 of the stockholders and officers as herein provided, shall be taken 
 and considered as the security required by law for the faithful 
 performance of its duties, and shall be absolutely liable in case 
 of any default whatever. 
 
 Privileges ^^^- (Sec. 11.) That any safe deposit company, trust com- 
 
 extended to pany, surety or guaranty company, or title-insurance company 
 
 existing now incorporated and operating under the laws of the United 
 
 corporations, states or of the District of Columbia, or any of the States, and 
 
 now doing business in said District, may avail itself of the provisions 
 
 of this act on the filing in the office of the recorder of deeds of 
 
 the District of Columbia, or with the Comptroller of the Currency, 
 
NATIONAL BANK ACT 137 
 
 a certificate of its intention to do so, which certificate shall specify 
 which one of the three classes of business set out in section one 
 it will carry on, and shall be verified by the oath of its president 
 to the effect that it has in every respect complied with the require- 
 ments of existing law, especially with the provisions of this act; 
 that its capital stock is paid in as provided in section twenty-one 
 of this act and is not impaired, and thereafter such company may 
 exercise all powers and perform all duties authorized by any 
 one of the subdivisions of section one of this act in addition to flie 
 powers now lawfully exercised by such company. 
 
 197. (Sec. 12.) That any company operating under this ^^^ ffenl estate 
 may lease, purchase, hold, and convey real estate, not exceeding in 
 
 value five hundred thousand dollars, and such in addition as it 
 may acquire in satisfaction of debts due the corporation, under 
 sales, decrees, judgments, and mortgages. But no such association 
 shall hold the possession of any real estate under foreclosure of mort- 
 gage, or the title and possession of any real estate purchased to secure 
 any debts due to it, for a longer period than five years. 
 
 198. (Sec. 13.) That the charters for incorporations named J" pg^.'^ J ^f 
 this act may be made perpetual, or may be limited in time by corporations' 
 their provisions, subject to the approval of Congress. existence. 
 
 rovisions 
 
 199. (Sec. 14.) That the capital stock of every such company p 
 shall be at least one million dollars, and at least fifty per centum relating to 
 thereof must have been paid in, in cash or by the transfer of assets capital stock- 
 as hereinafter provided in section twenty-one of this act, 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 company, or to become and act as an administrator, executor, 
 guardian of the estate of a minor, or undertake any other kindred 
 fiduciary duty, it shall deposit, either in money or in bonds, 
 mortgages, deed of trust, or other securities equal in actual value 
 to one-fourth of the capital stock paid in, with the Comptroller 
 of the Currency, to be kept by him upon the trust and for the 
 purposes hereinafter provided; and the said Comptroller may 
 from time to time require an additional deposit from any such 
 
138 N. W. HALSEY & CO. 
 
 company, to be held upon and for the same trust and purposes, 
 not exceeding, however, in value one-half the paid-in capital stock; 
 and the said Comptroller shall not issue to any corporation the 
 certificate heretofore provided for until said deposit with him of 
 securities required by this section. Within one year after the 
 organization of any corporation under the provisions of this act, 
 or after any corporation heretofore existing shall have availed 
 itself of the powers and rights given by this act in the manner 
 herein provided for, its entire capital stock shall have been paid in. 
 
 Enforcement of 200. (Sec. 15.) That the capital stock of every such com- 
 '^ , pany shall be divided into shares of one hundred dollars each. 
 It shall be lawful for such company to call for and demand from 
 the stockholders, respectively, all sums of money by them sub- 
 scribed, at such time and in such proportions as its board of 
 directors shall deem proper, within the time specified in section 
 fourteen, and it may enforce payment by all remedies provided 
 by law; and if any stockholder shall refuse or neglect to pay any 
 installment as required by a resolution of the board of directors, 
 after thirty days' notice of the same, the said board of directors 
 may sell at public auction, to the highest bidder, so many shares 
 of said stock as shall pay said installment, under such general 
 regulations as may be adopted in the by-laws of said company, 
 and the highest bidder shall be taken to be the person who offers to 
 purchase the least number of shares for the assessment due. 
 
 Annual report of 201. (Sec. 16.) That every such company shall annually, 
 Comptroller. ^itJ^Jn twenty days after the first of January of each year, make 
 a report to the Comptroller of the Currency, which shall be 
 published in a newspaper in the District, which shall state the 
 amount of capital and of the proportion actually paid, the amount 
 of debts, and the gross earnings for the year ending December 
 thirty-first then next previous, together with their expenses, which 
 report shall be signed by the president and a majority of the 
 directors or trustees, and shall be verified by the oath of the 
 president, secretary, and at least three of the directors or trustees. 
 
 Tax on gross 202. (Sec. 16.) And said company shall pay to the District 
 of Columbia, in lieu of personal taxes for each next ensuing year. 
 
NATIONAL BANK ACT 139 
 
 one and a half per centum of its gross earnings for the preceding 
 year, shown by said verified statement, which amount shall be payable 
 to the collector of taxes at the times and in the manner that 
 other taxes are payable. 
 
 203. (Sec. 17.) That if any company fails to comply with ^iabilit]) for 
 
 the provisons of the preceding section, all the directors or trustees '^ * 
 
 of such company shall be jointly and severally liable for the debts 
 
 of the company then existing, and for all that shall be contracted 
 
 before such report shall be made: Provided, That in case of 
 
 failure of the company in any year to comply with the provisions 
 
 of section sixteen of this act, and any of the directors shall, on 
 
 or before January fifteenth of such year, file his written request 
 
 for such compliance with the secretary of the company, the 
 
 Comptroller of the Currency, and the recorder of deeds of the 
 
 District of Columbia, such director shall be exempt from the liability 
 
 prescribed in this section. 
 
 204. (Sec. 18.) That any willful false swearing in regard Perjury and 
 to any certificate or report or public notice required by the pro- 'O^'cen];. 
 visions of this act shall be perjury, and shall be punished as such 
 according to the laws of the District of Columbia. And any 
 misappropriation of any of the money of any corporation or com- 
 pany formed under this act, or any money, funds, or property 
 
 intrusted to it, shall be held to be larceny, and shall be punished 
 as such under the laws of said District 
 
 205. (Sec. 19.) That the stock of such company shall be Transfer of stoc^. 
 deemed personal estate, and shall be transferable only on the books 
 
 of such company in such manner as shall be prescribed by the 
 by-laws of the company; but no shares shall be transferable until 
 all previous calls thereon shall have been fully paid, and the said 
 stock shall not be taxable, in the hands of individual owners, 
 the tax on the capital stock, gross earnings of the company herein- 
 before provided being in lieu of other personal tax. All certificates 
 of the stock of any company organized under this act shall show 
 upon their face the par value of each share and the amount paid 
 thereon. 
 
140 N. W. HAL5EY & CO. 
 
 Liabilit}) of 206. (Sec. 20.) That all stockholders of every company 
 stockholders, incorporated under this act, or availing itself of its provisions under 
 section eleven, shall be severally and individually liable to the 
 creditors of such company to an amount equal to and in addition 
 to the amount of stock held by them, respectively, for all debts and 
 contracts made by such company. 
 
 Mone^ 207. (Sec. 21.) That nothing but money shall be considered 
 payment of as payment of any part of the capital stock, except that in the 
 capital stoc^ ^.j^gg ^f ^^y company now doing business in the District of Columbia 
 in any of the classes herein provided for, or under any act of 
 Congress or by virtue of the laws of any of the States, and which 
 company has actually received full payment in money of at least 
 fifty per centum of the capital stock required by this act and 
 which company desires to obtain a charter under this act, all 
 the assets or property may be received and considered as money, 
 at a value to be appraised and fixed by the Comptroller of the 
 Currency: Provided, That all such assets and property are also 
 transferred to and are thereafter owned by the company organized 
 under this act. 
 
 Number and 208. (Sec. 22.) That the stock, property, and concerns of such 
 election of company shall be managed by not less than nine nor more than 
 directors, thirty directors or trustees, who shall, respectively, be stockholders 
 and at least one-half residents and citizens of the District of 
 Columbia, and shall, except the first year, be annually elected 
 by the stockholders at such time and place and after such published 
 notice as shall be determined by the by-laws of the company, 
 and said directors or trustees shall hold until their successors are 
 elected and qualified. 
 
 Appointment of 209. (Sec. 23.) That there shall be a president of the 
 officers, company, who shall be a director, also a secretary and a treasurer, 
 all of whom shall be chosen by the directors or trustees: Provided, 
 That only one of the above-named 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. 
 
NATIONAL BANK ACT Ml^ 
 
 210. (Sec. 24.) That the directors or trustees shall have By-Laws. 
 power to make such by-laws as they deem proper for the manage- 
 ment or disposal of the stock and business affairs of such company, 
 not inconsistent with the provisions of this act, and prescribing 
 the duties of officers and servants that may be employed, for the 
 appointment of all officers, and for carrying on all kinds of 
 business within the objects and purposes of such company. 
 
 211. (Sec. 25.) That if the directors or trustees of any Directors' liable 
 
 for pa})me\ 
 unearned 
 dividends. 
 
 company shall declare or pay any dividend, the payment of /o'' pa})ment of 
 which would render it insolvent, or which would create a debt ""^^''"^ 
 
 against such company, they shall be jointly and severally liable 
 as guarantors for all of the debts of the company then existing, 
 and for all that shall be thereafter contracted, while they shall, 
 respectively, remain in office. 
 
 212. (Sec. 26.) That if any of the directors or trustees shall Directors' 
 object to declaring of such dividend or the payment of the same, liability may be 
 and shall at any time before the time fixed for the payment thereof °^°'"^"* 
 
 file a certificate of their objection in writing with the secretary 
 of the company and with the recorder of deeds of the District 
 they shall be exempt from liability prescribed in the preceding section. 
 
 213. (Sec. 27.) That if the liabilities of any company shall Responsibility of 
 at any time exceed the amount of the fair cash value of the assets, directors for 
 
 the directors or trustees of such company assenting thereto shall ^^'-^^^ "^ ' ' '^*' 
 be personally and individually liable for such excess to the creditors 
 of the company after the additional liabiHty of the stockholders 
 has been enforced. jr 
 
 214. (Sec. 28.) That no person holding stock in such company Trustee, etc. 
 as executor, administrator, guardian, or trustee shall be personally not liable on 
 subject to any liability as stockholder of such company, but the ^'oc/f assessment. 
 estate and funds in the hands of such executor, administrator, 
 
 guardian, or trustee shall be liable in like manner and to the 
 same extent as the testator or intestate or the ward or the person 
 interested in such trust fund would have been if he had been 
 living and competent to act and hold the stock in his own name. 
 
142 
 
 N. W. HALSEY & CO. 
 
 Increase of 215. (Sec. 29.) That any corporation which may be formed 
 capital, under this chapter may increase its capital stock by complying 
 with the provisions of this chapter to any amount which may be 
 deemed sufficient and proper for the purposes of the corporation. 
 
 Certified copy 216. (Sec. 30.) That a copy of any certificate of incorpora- 
 
 0/ incorporation jjon filed in pursuance of this chapter, certified by the recorder 
 
 ^ of deeds to be a true copy and the whole of such certificate, 
 
 evidence ^^^^^ ^ received in all courts and places as presumptive legal 
 
 evidence of the facts therein stated. 
 
 No bond or 217. (Sec. 31.) That no bond or other collateral security, 
 other security except as hereinafter stated, shall be required from any trust 
 fj. f • company incorporated under this act for or in respect to any 
 
 trust, nor when appointed trustee, guardian, receiver, executor, 
 or administrator, with or without the will annexed, committee of the 
 estate of a lunatic or idiot, or other fiduciary appointment; but 
 the capital stock subscribed for or taken, and all property owned 
 by said company and the amount for which said stockholders shall 
 be liable in excess of their stock, shall be taken and considered 
 as the security required by law for the faithful performance of 
 its duties and shall be absolutely liable in case of any default 
 whatever; and in case of the insolvency or dissolution of said 
 company the debts due from the said company as trustee, guardian, 
 receiver, exectuor, or administrator, committee of the estate of 
 lunatics, idiots, or any other fiduciary appointment, shall have a 
 preference. 
 
 District supreme 218. (Sec. 32.) That the supreme court of the District of 
 court has Columbia, or any justice thereof, shall have power to make orders 
 
 jurisdiction of 
 tust companies. 
 
 respecting such company whenever it shall have been appointed 
 trustee, guardian, receiver, executor, or administrator, with or with- 
 out the will annexed, committee of the estate of a lunatic, idiot, 
 or any other fiduciary, and require the said company to render all 
 accounts which might 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, 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 
 
NATIONAL BANK ACT 143 
 
 of any person interested, may appoint some suitable person to 
 examine into the afiairs 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 of 
 said company a bond with sureties or other securities 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. 
 
 219. (Sec. 33.) That no corporation or company organized All similar 
 by virtue of the laws of any of the States of this Union and having district 
 
 its principal place of business within the District of Columbia, ^°J"PO''''|'o^ 
 shall carry on, in the District of Colimfibia, any of the kinds of ^^^ 
 business named in this act without strict compliance in all particulars 
 with the provisions of this act for the government of such corpora- 
 tions formed under it, and each one of the officers of the corpora- 
 tion or company so offending shall be punished by fine not exceeding 
 one thousand dollars, or imprisonment in some State's prison not 
 exceeding one year, or by both fine and imprisonment, in the 
 discretion of the court. This section shall not take e^ect till 
 six months after the approval of this acL 
 
 220. (Sec. 34.) That Congress may at any time alter, amend. Provisions for 
 or repeal this act, but any such amendment or repeal shall not, nor amendment. 
 shall the dissolution of any company formed under this act, take 
 
 away or impair any remedy given against such corporation, its 
 stockholders or officers, for any liability or penalty which shall 
 have been previously incurred: Provided, That the courts of the 
 District of Columbia shall not have power to appoint any trustee, 
 trustees, guardians, receivers, or other trustee of a fund or property 
 located outside of the District of Columbia, or belonging to a 
 corporation or person having a legal residence or location outside 
 of said District. 
 
144 N. W. HALSEY 6- CO. 
 
 Chapter Ten. 
 SAVINGS BANKS. ETC.. DISTRICT OF COLUMBIA. 
 
 INCORPORATION OF SAVINGS BANKS IN THE 
 DISTRICT OF COLUMBIA. 
 
 'An Act to Establish a Code of Law for the District of 
 Columbia," Approved March Third, Nineteen Hun- 
 dred AND One, as Amended by the Acts Approved 
 January Thirty-first and June Thirtieth, Nineteen 
 Hundred and Two. 
 
 Chapters XVIII. Subchapter IV. Sec. 605. 
 
 Provision for 221. "Any three or more persons who desire to form a company 
 organuation. f^j jj^g purpose of carrying on any enterprise or business which 
 may be lawfully conducted by an individual, excepting banks of 
 circulation or discount (corporations to buy, sell, or deal with real 
 property), railroads, and such other enterprise or business as may 
 be otherwise specially provided for in this code, may make, sign, 
 and acknowledge, before some officer competent to take the 
 acknowledgment of deeds, and file in the office of the recorder 
 of deeds a certificate in writing: Provided, That nothing herein 
 contained shall be held to authorize the organization of corpora- 
 tions to buy, sell, or deal in real estate, except corporations to 
 transact the business ordinarily carried on by real-estate agents or 
 brokers." 
 Report to be 222. (Sec. 713.) All savings banks or savings companies or 
 made fo institutions organized under authority of any act of Congress to 
 Comptroller. ^Q business in the District of Columbia shall be, and are hereby, 
 required to make to the Comptroller of the Currency, and publish, 
 all the reports which national banking associations are required to 
 make and publish under the provisions of sections fifty-two hundred 
 and eleven, fifty-two hundred and twelve, and fifty-two hundred 
 and thirteen of the Revised Statutes, and shall be subject to the 
 same penalties for failure to make or publish such reports as are 
 therein provided, which penalties may be collected by suit before 
 
NATIONAL BANK ACT 145 
 
 the supreme court of the District of Columbia. — ^Act of June 
 30, 1902. 
 
 223. (Sec. 714.) The Comptroller of the Currency, in addition Comptroller 
 to the powers now conferred upon him by law for the examination authorized to 
 of national banks, is hereby further authorized, whenever he may fi*^'"'"** 
 deem it useful, to cause examination to be made into the condition 
 
 of any bank in the District of Columbia organized under act of 
 Congress. The Comptroller, at his discretion, may report to 
 Congress the results of such examination. The expenses necessarily 
 incurred in the execution of this section shall be paid out of any 
 appropriation made by Congress for special bank examinations. 
 
 An Act to amend sections seren hundred and thirteen and seven hundred and 
 fourteen of "An Act to establish a code of law for the District of Columbia," 
 approved March third, nineteen hundred and one, as amended by the Acts 
 approved January thirty>first and June thirtieth, nineteen hundred and two, and for 
 other purposes. 
 
 224. Be it enacted b^ the Senate and House of Representatives Amendments 
 of the United States of America in Congress assembled. That to law. 
 sections seven hundred and thirteen and seven hundred and 
 
 fourteen of an Act entitled "An Act to establish a code of law 
 for the District of Columbia," approved March third, nineteen 
 hundred and one, as amended by the Acts approved January 
 thirty-first and June thirtieth, nineteen hundred and two, are 
 hereby amended so as, respectively, to read as follows: 
 
 "Sec. 713. All savings banks, or savings companies, or trust 
 companies, or other banking institutions, organized under authority 
 of any Act of Congress to do business in the District of Columbia, 
 or organized by virtue of the laws of any of the States of this 
 Union, and having an office or banking house located within the 
 District of Columbia where deposits or savings are received, shall 
 be, and are hereby, required to make to the Comptroller of the 
 Currency and to publish all the reports which national banking 
 associations are required to make and publish under the provisions 
 of sections fifty-two hundred and eleven, fifty-two hundred and 
 twelve, and fifty-two hundred and thirteen of the Revised Statutes 
 of the United States, and shall be subject to the same penalties 
 
146 N. W. HALSEY & CO. 
 
 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, horvever. That banking 
 institutions having offices or banking houses in foreign countries 
 as well as in the District of Columbia shall only be required to make 
 and publish the reports provided for in this section semi-annually: 
 And provided further. That all publications authorized or required 
 by said section fifty-two hundred and eleven of the Revised 
 Statutes, and all other publications authorized or required by existing 
 law to be made in the District of Columbia, shall be printed in 
 two or more daily newspapers of general circulation, published in 
 the City of Washington, one of which shall be a morning newspaper. 
 
 "Sec. 714. The Comptroller of the Currency, in addition 
 to the powers now conferred upon him by law for the examination 
 of national banks, is hereby further authorized, whenever he may 
 deem it useful, to cause examination to be made into the condition 
 of any bank mentioned in the preceding section. The expense of 
 such examination shall be paid in the manner provided by section 
 fifty-two hundred and forty of the Revised Statutes of the United 
 States relating to the examination of national banks." 
 
 Approved, June 25, 1906. 
 
 Chapter Eleven. 
 
 GOVERNMENT DEPOSITARIES. 
 
 Designation and 225. (Sec. 5153, as amended by the act of March 4, 1907.) 
 duties of public p^\ national banking associations, designated for that purpose by 
 eposi a les. ^^ Secretary of the Treasury, shall be depositaries of public money, 
 under such regulations as may be prescribed by the Secretary; 
 and they may also be employed as financial agents of the Govern- 
 ment; and they shall perform all such reasonable duties, as 
 depositaries of public money and financial agents of the Government, 
 
NATIONAL BANK ACT 147 
 
 as may be required of them. The Secretary of the Treasury 
 shall require the associations thus designated to gire satisfactory 
 security, by the deposit of United States bonds and otherwise, for 
 the safe-keeping and prompt payment of the public money deposited 
 with them, and for the faithful performance of their duties as 
 financial agents of the Government: Provided, That the Secretary 
 shall, on or before the first of January of each year, make a 
 public statement of 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 whatever 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 distribute the deposits herein provided for, as far as practicable, 
 equitably between the different States and sections. 
 
 226. (Sec. 3620.) It shall be the duty of every disbursing ^5^°"' ^"f 
 officer having any public money intrusted to him for disbursement ^ i ;• 
 
 to deposit the same with the Treasurer or some one of the assistant 
 treasurers of the United States, and to draw from the same only 
 as it may be required for payments to be made by him in pursuance 
 of law; and draw from the same only in favor of the persons to 
 whom payment is made, and all transfers from the Treasurer of 
 the United States to a disbursing officer shall be by draft or warrant 
 on the Treasurer or assistant treasurer of the United States. In 
 places, however, where there is no Treasurer or assistant treasurer, 
 the Secretary of the Treasury may, when he deems it essential to 
 the public interest, specially authorize in writing the deposit of 
 such public money in any other public depositary, 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. 
 
 227. (Sec. 3847.) Any postmaster, having public money ^^°^^^j°^fo^ 
 belonging to the Government, at an office within a county where ^J!i^:„ 
 
 there are no designated depositaries, treasurers of mints, or Treasurer postmasters. 
 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 
 
148 N. W. HALSEY & CO. 
 
 town, city, or county where the said postmaster resides; but no 
 authority 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 described; and every 
 postmaster who makes any such deposit shall report quarterly to 
 the Postmaster-General the name of the bank where such deposits 
 have been made, and also state the amount which may stand 
 at the time to his credit. 
 
 Penaltv for 228. (Sec. 4046.) Every postmaster, assistant, clerk, or other 
 misapplication of person employed in or connected with the business or operations 
 mone^-order ^f ^ny money-order office who converts to his own use, in any way 
 Jun s. ^i^j^jgygr^ Qj loans, or deposits in any bank, except as authorized 
 by this Title, or exchanges for other funds, any portion of the 
 money-order funds, shall be deemed guilty of embezzlement, and 
 any such person, as well as every other person advising or partici- 
 pating therein, shall, for every such offense, be imprisoned for 
 not less than six months nor more than ten years, and be fined in a sum 
 equal to the amount embezzled; and any failure to pay over or 
 produce any money-order funds intrusted to such person shall be 
 taken to be prima facie evidence of embezzlement; and upon the 
 trial of any indictment against any person for such embezzlement 
 it shall be prima facie evidence of a balance against him to produce 
 a transcript from the money-order account books of the Sixth 
 Auditor. But nothing herein contained shall be construed to 
 prohibit any postmaster depositing, under the direction of the Post- 
 master-General, in a national bank designated by the Secretary of 
 the Treasury for that purpose, to his own credit as postmaster, 
 any money-order or other funds in his charge, nor prevent his 
 negotiating drafts or other 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 another, to be used in pa3Tnent of money-orders. Dis- 
 bursing officers of the United States shall issue, under regulations 
 to be prescribed by the Secretary of the Treasury, duplicates of 
 lost checks drawn by them in favor of any postmaster on account 
 
NATIONAL BANK ACT 149 
 
 of money-order or other public funds received by them from 
 some other postmaster. 
 
 229. (Sec. 5488.) Every disbursing officer of the United Penalt}f for 
 States who deposits any public money intrusted to him in any tinauihorized 
 place or in any manner, except as authorized by law, or converts ^P^^' °' "" 
 to his own use in any way whatever, or loans with or without 
 
 interest, or for any purpose not prescribed by law withdraws from 
 the Treasurer or any assistant treasurer, or any authorized depos- 
 itary, 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 of an embezzlement of the money so deposited, 
 converted, loaned, withdrawn, transferred, or appHed; 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. 
 
 230. (Sec. 5497.) Every banker, broker, or other person not Penalty jot 
 an authorized depositary of public moneys, who knowingly receives unauthorized 
 from any disbursing officer, or collector of internal revenue, or other '"^ccipf or use of 
 agent of the United States, any public money on deposit, or by '^ ^' 
 way of loan or accommodation, with or without interest, or other- 
 wise than in payment of a debt against the United States, or who 
 
 uses, transfers, converts, appropriates, or applies any portion of the 
 public money for any purpose not prescribed by law, and every 
 president, cashier, teller, director, or other officer of any bank or 
 banking association, who violates any of the provisions of this 
 section, 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 prescribed in section fifty-four 
 hundred and eighty-eight. 
 
150 N. W. HALSEY & CO. 
 
 Chapter Twelve. 
 
 MISCELLANEOUS. 
 
 Legal tender 231. The following statement concerning the legal-tender prop- 
 and laivful erties of money of the United States is based upon United States 
 mone\). Revised Statutes, sections 3585, 3586, 3587, 3588, 3589, and 
 3590, and the acts amendatory thereof and additional thereto: 
 
 Gold coin, standard silver dollars, subsidiary silver, minor coins, 
 United States notes, and Treasury notes of 1 890 have the legal- 
 tender quality as follow^s: Gold coin is legal tender for its nominal 
 value vs^hen not below the limit of tolerance in weight; when below 
 that limit it is legal tender in proportion to its weight; standard 
 silver dollars and Treasury notes of 1890 are legal tender for all 
 debts, public and private, except where otherwise expressly stipu- 
 lated in the contract; subsidiary silver is legal tender to the extent 
 of $ 1 0, minor coins to the extent of 25 cents, and United States 
 notes for all debts, public and private, except duties on imports 
 and interest on the public debt. Gold certificates, silver certificates, 
 and national-bank notes are nonlegal-tender money. Both kinds 
 of certificates, however, are receivable for all public dues, and 
 national-bank notes are receivable for all public dues except duties 
 on imports, and may be paid out for all public dues, except 
 interest on the public debt. 
 
 The term "lawful money" is understood to apply to every form 
 of money which is endowed by law with the legal-tender quality. 
 (See Opinions of Attorneys-General, vol. 17, p. 123.) 
 
Currency Act 
 
 of March 14, 1900 
 
 An Act to Define and Fix the Standard of Value, to 
 Maintain the Parity of All Forms of Money Issued 
 OR Coined by the United States, to Refund the 
 Public Debt, and for Other Purposes. 
 
 Be it enacted by the Senate and House of Representatives of the Dollar standard 
 United States of America in Congress assembled. That the dollar """ , 
 
 r r 11 1 f 1 1 . ^ of Vfl/UC. 
 
 consisting or twenty-hve and eight-tenths grains or 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 
 of value, and all forms of money issued or coined by the United 
 States shall be maintained at a parity of value with this standard, 
 and it shall be the duty of the Secretary of the Treasury to maintain 
 such parity. 
 
 Sec. 2. That United States notes, and Treasury notes issued Redemption of 
 under the Act of July fourteenth, eighteen hundred and ninety, J^' ^' "°'" ^"^ 
 when presented to the Treasury for redemption, shall be redeemed 
 in gold coin of the standard fixed in the first section of this Act, 
 and in order to secure the prompt and certain redemption of such 
 notes as herein provided it shall be the duty of the Secretary of 
 the Treasury to set apart in the Treasury a reserve fund of one 
 hundred and fifty million dollars in gold coin and bullion, which 
 fund shall be used for such redemption purposes only, and when- 
 ever and as often as any of said notes shall be redeemed from 
 said fund it shall be the duty of the Secretary of the Treasury 
 to use said notes so redeemed to restore and maintain such reserve Maintenance of 
 fund in the manner following, to wit: First, by exchanging the reserve. 
 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 
 
152 
 
 N. W. HALSEY & CO. 
 
 Issuing of bonds 
 
 to maintain 
 
 reserve. 
 
 notes, in accordance with the provisions of section thirty-seven 
 hundred of the Revised Statutes of the United States. If the 
 Secretary of the Treasury is unable to restore and maintain the 
 gold coin in the reserve fund by the foregoing methods, and the 
 amount of such gold coin and bullion in said fund shall at any 
 time fall below one hundred million dollars, then it shall be his 
 duty to restore the same to the maximum sum of one hundred and 
 fifty million dollars by borrowing money on the credit of the United 
 States, and for the debt thus incurred to issue and sell 
 coupon or registered bonds of the United States, in such 
 form as he may prescribe, in denominations of fifty dollars 
 or any multiple thereof, bearing interest at the rate of not 
 exceeding three per centum per annum, payable quarterly, 
 such bonds to be payable at the pleasure of the United 
 States after one year from the date of their issue, and to be 
 payable, principal and interest, in gold coin of the present 
 standard value, and to be exempt from the payment of all 
 taxes or duties of the United States, as well as from taxa- 
 tion in any form by or under State, municipal, or local 
 authority; and the gold coin received from the sale of said bonds 
 shall first be covered into the general fund of the Treasury and then 
 exchanged, in the manner hereinbefore provided, 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 of the United States, or 
 for any other lawful purpose the public interests may require, except 
 that they shall not be used to meet deficiencies in the current 
 revenues. That United States notes when redeemed in accordance 
 with the provisions of this section shall be reissued, but shall be 
 held in the reserve fund until exchanged for gold, as herein pro- 
 vided; 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. 
 
 Legal tender. Sec. 3. That nothing contained in this Act shall be construed 
 to affect the legal-tender quality as now provided by law of the 
 silver dollar, or of any other money coined or issued by the 
 United States. 
 
 Notes 
 
 re-issuec 
 
CURRENCY ACT OF MARCH 14. 1900 153 
 
 Sec. 4. That there be established in the Treasury Department, DivisioTJs of 
 as a part of the office of the Treasurer of the United States, '""^ ^"^ 
 divisions to be designated and known as the division of issue and ^ 
 
 the division of redemption, to which shall be assigned, respectively, 
 under such regulations as the Secretary of the Treasury may 
 approve, all records and accounts relating to the issue and redemp- 
 tion of United States notes, gold certificates, silver certificates, and 
 currency certificates. There shall be transferred from the accounts 
 of the general fund of the Treasury of the United States, and 
 taken up on the books of said divisions, respectively, accounts 
 relating to the reserve fund for the redemption of United States Reserves are 
 notes and Treasury notes, the gold coin held against outstanding ""^' fuTUts. 
 gold certificates, the United States notes held against outstanding 
 currency certificates, and the silver dollars held against outstanding 
 silver certificates, and each of the funds represented by these 
 accounts shall be used for the redemption of the notes and certifi- 
 cates for which they are respectively pledged, and shall be used 
 for no other purpose, the same being held as trust funds. 
 
 Sec. 5. That it shall be the duty of the Secretary of the Coinage of 
 Treasury, as fast as standard silver dollars are coined under the *"^^'' doUars, 
 provisions of the Acts of July fourteenth, eighteen hundred and 
 ninety, and June thirteenth, eighteen hundred and ninety-eight, from 
 bullion purchased under the Act of July fourteenth, eighteen 
 hundred and ninety, to retire and cancel an equal amount of Retirement of 
 Treasury notes whenever received into the Treasury, either by f^^osury notes. 
 exchange in accordance with the provisions of this Act or in the 
 ordinary course of business, and upon the cancellation of Treasury 
 notes silver certificates shall be issued against the silver dollars so 
 coined. 
 
 Sec. 6. (As amended by act of March 4, 1907.) That the Gold certificates. 
 Secretary of the Treasury is hereby authorized and directed to 
 receive deposits of gold coin with the Treasurer or any assistant 
 treasurer of the United States in sums of not less than twenty 
 dollars, and to issue gold certificates therefor in denominations of 
 not less than ten dollars, and the coin so deposited shall be retained 
 in the Treasury and held for the payment of such certificates on 
 demand, and used for no other purpose. Such certificates shall be 
 
 U N i V E R 
 
154 N. W. HALSEY & CO. 
 
 receivable for customs, taxes, and all public dues, and when so 
 received may be reissued, and when held by any national banking 
 association may be counted as a part of its lawful reserve: Pro- 
 vided, That whenever and so long as the gold coin and bullion held 
 in the reserve fund in the Treasury for the redemption of United 
 States notes and Treasury notes shall fall and remain below one 
 When authority hundred million dollars the authority to issue certificates as herein 
 to issue is provided shall be suspended: And provided further, That when- 
 suspended. ^^^^ ^^^ ^^ ^^^^ ^^ ^^ aggregate amount of United States notes 
 and silver certificates in the general fund of the Treasury shall 
 exceed sixty million dollars the Secretary of the Treasury may, in 
 his discretion, suspend the issue of the certificates herein provided 
 for: And provided further. That of the amount of such out- 
 standing certificates one-fourth at least shall be in denominations 
 of fifty dollars or less: And provided further. That the Secretary 
 of the Treasury may, in his discretion, issue such certificates in 
 denominations of ten thousand dollars, payable to order. And 
 section fifty-one hundred and ninety-three of the Revised Statutes 
 of the United States is hereby repealed. The act of March 4, 
 1907 (sec. 2), provides that whenever and so long as the out- 
 standing silver certificates of the denominations of one 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 of all forms of money issued or 
 coined by the United States, to refund the public debt, and for 
 other purposes," approved March fourteenth, nineteen hundred, 
 shall be, in the opinion of the Secretary of the Treasury, insufficient 
 to meet the public demand therefor, he is hereby authorized to issue 
 United States notes of the denominations of one dollar, two dollars, 
 and five dollars, and upon the issue of United States notes of such 
 denominations an equal amount of United States notes of higher 
 denominations shall be retired and canceled: Provided, however. 
 Amount of That the aggregate amount of United States notes at any time 
 U. S. notes outstanding shall remain as at present fixed by law: And provided 
 outstanding further. That nothing in this Act shall be construed as affecting 
 fixed by laTV, ^^ ^.jgj^^ ^£ ^^^ national bank to issue one-third in amount of its 
 circulating notes of the denomination of five dollars, as now pro- 
 vided by law. 
 
CURRENCY ACT OF MARCH 14. 1900 155 
 
 Sec. 7. That hereafter silver certificates shall be issued only of 5i7ver certificates. 
 denominations of ten dollars and under, except that not exceeding 
 in the aggregate ten per centum of the total volume of said certifi- 
 cates, in the discretion of the Secretary of the Treasury, may be 
 issued in denominations of twenty dollars, fifty dollars, and one 
 hundred dollars; and silver certificates of higher denomination 
 than ten dollars, except as herein provided, shall, whenever received 
 at the Treasury or redeemed, be retired and canceled, and certifi- 
 cates of denominations of ten dollars or less shall be substituted there- 
 for, and after such substitution, in whole or in part, a like volume of 
 United States notes of less denomination than ten dollars shall 
 from time to time be retired and canceled, and notes of denomina- 
 tions of ten dollars and upward shall be reissued in substitution 
 therefor, with like qualities and restrictions as those retired and 
 canceled. 
 
 Sec. 8. That the Secretary of the Treasury is hereby author- Subsidiar\f coin. 
 ized to use, at his discretion, any silver bullion in the Treasury of 
 the United States purchased under the Act of July fourteenth, 
 eighteen hundred and ninety, for coinage into such denominations 
 of subsidiary silver coin as may be necessary to meet the public 
 requirements for such coin: Provided, That the amount of sub- 
 sidiary silver coin outstanding shall not at any time exceed in the 
 aggregate one hundred millions of dollars. Whenever any silver 
 bullion purchased under the Act of July fourteenth, eighteen 
 hundred and ninety, shall be used in the coinage of subsidiary 
 silver coin, an amount of Treasury notes issued under said Act 
 equal to the cost of the bullion contained in such coin shall be 
 cancelled and not reissued. 
 
 Sec. 9. That the Secretary of the Treasury is hereby authorized Worn and 
 and directed to cause all worn and uncurrent subsidiary silver coin uncurrent 
 of the United States now in the Treasury, and hereafter received, ^^^^^^diary saver 
 to be recoined, and to reimburse the Treasurer of the United 
 States for the difference between the nominal or face value of such 
 coin and the amount the same will produce in new coin from any 
 moneys in the Treasury not otherwise appropriated. 
 
 Sec. 10. That section fifty-one hundred and thirty-eight of 
 tiie Revised Statutes is hereby amended so as to read as follows: 
 
156 N. W. HALSEY & CO. 
 
 Amendment to "Section 5 1 38. No association shall be organized with a less 
 section 5138. capital than one hundred thousand dollars, except that banks with 
 *^' '^' a capital of not less than fifty thousand dollars may, with the 
 approval of the Secretary of the Treasury, be organized in any 
 place the population of which does not exceed six thousand inhab- 
 itants, 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." 
 
 Exchange of Sec. 1 1 . That the Secretary of the Treasury is hereby 
 outstanding authorized to receive at the Treasury any of the out- 
 U. S. bonds standing bonds of the United States bearing interest at 
 authonzed. £^g pgj. centum per annum, payable February first, nine- 
 teen 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 hundred 
 and eight, and to issue in exchange therefor an equal 
 amount of coupon or registered bonds of the United 
 States in such form as he may prescribe, in denominations 
 of fifty dollars or any multiple thereof, bearing interest at 
 the rate of two per centum per annum, payable quarterly, 
 such bonds to be payable at the pleasure of the United 
 States after thirty years from the date of their issue, and 
 said bonds to be payable, principal and interest, in gold 
 coin of the present standard value, and to be exempt from 
 the payment of all taxes or duties of the United States, 
 as well as from taxation in any form by or under State, 
 municipal, or local authority: Provided, That such out- 
 standing 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 authorized to pay to the 
 
CURRENCY ACT OF MARCH 14, 1900 157 
 
 holders of the outstanding bonds surrendered for exchange, 
 out of any money in the Treasury not otherwise appro- 
 priated, a sum not greater than the difference between 
 their present worth, computed as aforesaid, and their par 
 value, and the payments to be made hereunder shall be 
 held to be payments on account of the sinking fund 
 created by section thirty-six hundred and ninety-four of 
 the Revised Statutes: And provided further. That the two 
 per centum bonds to be issued under the provisions of 
 this Act shall be issued at not less than par, and they 
 shall be numbered consecutively in the order of their issue, 
 and when payment is made the last numbers issued shall 
 be first paid, and this order shall be followed until all the 
 bonds are paid, and whenever any of the outstanding 
 bonds are called for payment interest thereon shall cease 
 three months after such call; and there is hereby appro- 
 priated out of any money in the Treasury not otherwise 
 appropriated, to effect the exchanges of bonds provided 
 for in this Act, a sum not exceeding one-fifteenth of one 
 per centum of the face value of said bonds, to pay the 
 expense of preparing and issuing the same and other 
 expenses incident thereto. 
 
 Sec. 1 2. That upon the deposit with the Treasurer of Deposit of bonds 
 the United States, by any national banking association, '*? ^^^"'^•^ 
 of any bonds of the United States in the manner provided "'"^"'^^'"^ "°'"- 
 by existing law, such association shall be entitled to 
 receive from the Comptroller of the Currency circulating 
 notes in blank, registered and countersigned as provided 
 by law, equal in amount to the par value of the bonds so 
 deposited; and any national banking associations now 
 having bonds on deposit for the security of circulating 
 notes, and upon which an amount of circulating notes has 
 been issued less than the par value of the bonds, shall 
 be entitled, upon due application to the Comptroller of 
 the Currency, to receive additional circulating notes in 
 blank to an amount which will increase the circulating 
 notes held by such association to the par value of the 
 
158 N. W. HALSEY & CO. 
 
 bonds deposited, such additional notes to be held and 
 treated in the same way as circulating notes of national 
 banking associations heretofore issued, and subject to all 
 the provisions of law affecting such notes: Provided, That 
 nothing herein contained shall be construed to modify or 
 repeal the provisions of section fifty-one hundred and 
 sixty-seven of the Revised Statutes of the United States, 
 authorizing the Comptroller of the Currency to require 
 Additional additional deposits of bonds or of lawful money in case the 
 secuntyj. jjj^j-j^g^ 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 
 
 Denomination provisions of this Act shall be of the denominations pre- 
 of notes, scribed by law, except that no national banking associa- 
 tion shall, after the passage of this Act, be entitled to 
 receive from the Comptroller of the Currency, or to issue 
 or reissue or place in circulation, more than one-third in 
 amount of its circulating notes of the denomination of five 
 
 Total amount dollars: And provided further. That the total amount of 
 of notes, such notes issued to any such association may equal at 
 any time but shall not exceed the amount at such time of 
 its capital stock actually paid in: And provided further. 
 That under regulations to be prescribed by the Secretary 
 of the Treasury any national banking association may 
 Substitution of substitute the two per centum bonds issued under the 
 bonds, provisions of this Act for any of the bonds deposited with 
 the Treasurer to secure circulation or to secure deposits 
 of public money; and so much of an Act entitled "An 
 Act to enable national banking associations to extend their 
 corporate existence, and for other purposes," approved July 
 twelfth, eighteen hundred and eighty-two, as prohibits any 
 national bank which makes any deposit of lawful money 
 in order to withdraw its circulating notes from receiving 
 any increase of its circulation for the period of six months 
 from the time it made such deposit of lawful money for 
 the purpose aforesaid, is hereby repealed, and all other 
 
CURRENCY ACT OF MARCH 14. 1900 159 
 
 Acts or parts of Acts inconsistent with the provisions of 
 this section are hereby repealed. 
 
 Sec. 13. That every national banking association having Tax on notes, 
 on deposit, as provided by law, bonds of the United States 
 bearing interest at the rate of two per centum per annum, 
 issued under the provisions of this Act, to secure its circu- 
 lating notes, shall pay to the Treasurer of the United 
 States, in the months of January and July, a tax of one- 
 fourth of one per centum each half year upon the average 
 amount of such of its notes in circulation as are based 
 upon the deposit of said two per centum bonds; and such 
 taxes shall be in lieu of existing taxes on its notes in 
 circulation imposed by section fifty-two hundred and four- 
 teen of the Revised Statutes. 
 
 Sec. 14. That the provisions of this Act are not intended to International 
 preclude the accomplishment of international bimetallism whenever oimetallism, 
 conditions shall make it expedient and practicable to secure the 
 same by concurrent action of the leading commercial nations of 
 the world and at a ratio which shall insure permanence of relative 
 value between gold and silver. 
 
 FAILED NATIONAL BANKS. ETC. 
 
 Provided, That for the fiscal year of nineteen hundred and two Provisions of 
 and thereafter, a full and complete list of all officers, agents. ^^^ ?Qrn 
 clerks, and other employees of the office of the Comptroller of the ' 
 Currency, including bank examiners, receivers and attorneys for 
 receivers, and clerks employed by such examiners and receivers, 
 or any other person connected with the work of said office in 
 Washington or elsewhere, whose salary or compensation is paid 
 from the Treasury of the United States or assessed against or 
 collected from existing or failed banks under their supervision or 
 control, shall be transmitted to the Secretary of the Interior in 
 accordance with the provisions of an Act of Congress approved 
 January twelfth, eighteen hundred and eighty-five, relating to the 
 Official Register: And provided further. That the Comptroller of 
 the Currency is hereby directed to include in his Annual Report to 
 
160 N. W. HALSEY & CO. 
 
 the Speaker of the House of Representatives, expenses incurred 
 during each year, in liquidation of each failed national bank 
 separately. 
 
 CORPORATION CONTRIBUTIONS TO POLITICAL 
 ELECTIONS PROHIBITED. 
 
 Act of ^^ '' ^^^<^i^^ ^V the Senate and House of Representatives of 
 January 26, the United States of America in Congress assembled. That it shall 
 1907. be unlawful for any national bank, or any corporation organized 
 by authority of any laws of Congress, to make a money contribu- 
 tion 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 Representative in Congress is 
 to be voted for or any election by any State legislature of a United 
 States Senator. Every corporation which shall make any con- 
 tribution in violation of the foregoing provisions shall be subject to 
 a fine not exceeding five thousand dollars, and every officer or 
 director of any corporation who shall consent to any contribution 
 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 hundred and fifty dollars, or by imprison- 
 ment for a term of not more than one year, or both such fine and 
 imprisonment in the discretion of the court. 
 
^ Additional Circulation Act 
 
 (Emergency Currency Act) 
 
 Be it enacted fcp the Senate and House of Represenatives of National 
 the United States of America in Congress assembled. That national currency) 
 banking associations, each having an unimpaired capital and a o^oaattora. 
 surplus of not less than twenty per centum, not less than ten in 
 number, having an aggregate capital and surplus of at least five 
 millions of dollars, may form voluntary associations to be designated 
 as national currency associations. The banks uniting to form such 
 association shall, by their presidents or vice-presidents, acting under 
 authority from the board of directors, make and file with the Certificate to be 
 Secretary of the Treasury a certificate setting forth the names of ^'^" ^^^" 
 the banks composing the association, the principal place of business ^ ^^ ^' 
 of the association, and the name of the association, which name 
 shall be subject to the approval of the Secretary of the Treasury. 
 Upon the filing of such certificate 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 mentioned: * 
 Provided, That not more than one such national currency associa- 
 tion shall be formed in any city: Provided further. That the several Membership. 
 members of such national currency association shall be taken, as 
 nearly as conveniently 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 prescribed for membership 
 in such national currency association, shall, upon its application 
 to and upon the approval 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 
 
162 N. W. HALSEY & CO. 
 
 Bank ^ap the rights and privileges and subject to all the liabilities of an 
 belong to but original member: And provided further. That each national currency 
 one association, 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 of 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 corporation with respect to the assertion of all rights in favor 
 
 of or against such association. The affairs of the association shall 
 
 Management, be managed by a board consisting of one representative from each 
 
 B}f-laT»s. bank. By-laws for the government of the association shall be 
 
 made by the board, subject to the approval of the Secretary of the 
 
 Officers. Treasury. A president, vice-president, secretary, treasurer, and 
 
 an executive committee of not less than five members, shall be 
 
 Powers of board, elected by the board. The powers of such board, except in the 
 
 election of officers and making of by-laws, may be exercised through 
 
 its executive committee. 
 
 Purposes. 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 render 
 
 available, under the direction and control of the Secretary 
 
 Securities of the Treasury, as a basis for additional circulation any 
 
 basis for securities, including commercial paper, held by a national 
 
 additional banking association. For the purpose of obtaining such 
 
 additional circulation, any bank belonging to any national 
 
 Application b^ currency association, having circulating notes outstanding 
 
 mem e s oj ggj.yj.gjj ^y ^jjg deposit of bonds of the United States to an 
 association for ■^ ^ 
 
 additional an^ount not less than forty per centum of its capital stock, 
 
 circulation, and which has its capital unimpaired and a surplus of not 
 less than twenty per centum, may deposit with and trans- 
 fer to the association, in trust for the United States, for 
 
 Deposit of *^^ purpose hereinafter provided, such of the securities 
 securities, above mentioned as may be satisfactory to the board of 
 the association. The officers of the association may there- 
 upon, in behalf of such bank, make application to the 
 
ADDITIONAL CIRCULATION ACT 163 
 
 Comptroller of the Currency for an issue of additional Additional 
 
 circulating notes to an amount not exceeding seventy- circulation 
 
 five per centum of the cash value of the securities or com- "United to 
 
 mercial paper so deposited. The Comptroller of the Cur- ^^/c^i^m of 
 
 rency shall immediately transmit such application to the cash value of 
 
 Secretary of the Treasury with such recommendation as commercial 
 
 he thinks proper, and if, in the judgment of the Secretary securities. 
 
 of the Treasury, business conditions in the locality demand 
 
 additional circulation, and if he be satisfied with the 
 
 i- 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 protection of 
 
 the United States, he may direct an issue of additional 
 
 circulating notes to the association, on behalf of such 
 
 bank, to an amount in his discretion, not, however, 
 
 exceeding seventy-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, circulating notes may be issued to the extent 
 
 of not exceeding ninety per centum of the market value of w. 
 
 such bonds so deposited: And provided further. That no centum 
 
 national banking association shall be authorized in any in case of 
 
 event to issue circulating notes based on commercial paper municipals. 
 
 in excess of thirty per centum of its unimpaired capital Additional 
 
 and surplus. The term "commercial paper" shall be held limitations. 
 
 to include only notes representing actual commercial ^ . , 
 
 , . , , , , , . . Commercial 
 
 transactions, which when accepted by the association papQj-^ 
 
 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 Liability of 
 
 association shall be jointly and severally liable to the members of 
 
 United States for the redemption of such additional association. 
 
 circulation; and to secure such liability the lien created 
 
 by section fifty-two hundred and thirty of the Revised 
 
 Statutes shall extend to and cover the assets of all banks 
 
 belonging to the association, and to the securities deposited 
 
164 N. W. HALSEY & CO. 
 
 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- 
 Additional stituent banks a deposit of additional securities or com- 
 securities. mercial paper, or an exchange of the securities already 
 on deposit, to secure such additional circulation; and in 
 Failure to ^^^^ ^^ *^^ failure of such bank to make such deposit or 
 deposit, exchange 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 Treasurer 
 of the United States as a fund for the redemption of such 
 additional circulation. If such fund be insufficient for 
 that purpose the association may recover from the bank 
 Associations the amount of the deficiency by suit in the circuit court 
 ma}) be sued in of the United States, and shall have the benefit of the lien 
 U. S. circuit 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 require the with- 
 drawal of any such securities or commercial paper and 
 Substitution of *^® substitution of other securities or commercial paper 
 securities, of equal value therefor. 
 
 Redemption Sec. 2. That whenever any bank belonging to a 
 fund, 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 
 June twentieth, eighteen hundred and seventy-four, chapter 
 three hundred and fourty-three, and the provisions of 
 this Act, the Treasurer of the United States shall notify 
 such national currency association to make good such 
 Failure to redemption fund, and upon the failure of such national 
 
 make good, currency association to make good such fund, the 
 Treasurer of the United States may, in his discretion, apply 
 so much of the redemption fund belonging to the other 
 banks composing such national currency association as 
 
ADDITIONAL CIRCULATION ACT 165 
 
 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 provi- 
 sions of section one of this Act, and deposit the proceeds 
 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. 
 
 Sec. 3. That any national banking association which Application fc]> 
 has circulating notes outstanding, secured by the deposit association as a 
 
 of United States bonds to an amount of not less than ''f'^^°\''lt ^° ,^ 
 
 . , , •■ , • , 1 iOT additional 
 
 forty per centum of its capital stock, and which has a circulation. 
 
 surplus of not less than twenty per centum, may make 
 application to the Comptroller of the Currency for author- 
 ity to issue additional circulating notes to be secured by 
 the deposit of bonds other than bonds of the United States. 
 The Comptroller of the Currency shall transmit immedi- 
 ately the application, with his recommendation, to the 
 Secretary of 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 receiving notice of such approval 
 any such association shall deposit with the Treasurer or Deposit of 
 any assistant treasurer of the United States such of the securities. 
 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 en- 
 titled to receive, upon the order of the Comptroller of the 
 Currency, circulating notes in blank, registered and Additional 
 countersigned as provided by law, not exceeding in amount circulation 
 
 ninety per centum of the market value, but not in excess ''f""f" '^ 
 
 r , ■, r ,, , ., , , nmety per 
 
 of the par value of any bonds so deposited, such market centum of 
 
 value to be ascertained and determined under the direction market value 
 
 of the Secretary of the Treasury. of securities. 
 
166 N. W. HALSEY & CO. 
 
 Bonds available The Treasurer of the United States, with the approval 
 for security, of the Secretary of the Treasury, shall accept as security 
 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 authorized bonds 
 issued by any city, town, county, or other legally consti- 
 tuted 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 valuation 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 approval of the Secretary of 
 the Treasury, shall accept, for the purposes of this section, 
 securities herein enumerated in such proportions as he may 
 from time to time determine, and he may with such 
 approval at any time require the deposit of additional 
 securities, or require any association to change the charac- 
 ter of the securities already on deposit. 
 
 Legal title of Sec. 4. That the legal title of all bonds, whether coupon 
 bonds to be or registered, deposited to secure circulating notes issued 
 ransjerre . -^^ accordance with the terms of section three of this Act 
 shall be transferred to the Treasurer of the United States 
 in trust for the association depositing them, under regula- 
 tions to be prescribed by the Secretary of 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 redemp- 
 tion 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 countersigned by the Comptroller of 
 the Currency. The provisions of sections fifty-one hundred 
 
ADDITIONAL CIRCULATION ACT 167 
 
 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, inclusive, of 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. 
 
 Sec. 5. That the additional circulating notes issued under Status of 
 this Act shall be used, held, and treated in the same way additional 
 as circulating notes of national banking associations here- circulating notes. 
 tofore issued and secured by a deposit of United States 
 bonds, and shall be subject to all the provisions of law 
 affecting such notes except as herein expressly modified: 
 Provided, That the total amount of circulating notes out- 
 standing of any national banking association, including 
 notes secured by United States bonds as now provided by 
 law, and notes secured otherwise than by deposit of such 
 bonds, shall not at any time exceed the amount of its [^irnit of issue, 
 unimpaired capital and surplus: And provided further. 
 That there shall not be outstanding at any time circulating 
 notes issued under the provisions of this Act to an amount 
 of more than five hundred millions of dollars. 
 
 Sec. 6. That whenever and so long as any national Amount in 
 
 banking association has outstanding any of the additional redemption fund 
 
 circulating notes authorized to be issued by the provisions """( fo^^'" 
 
 of this Act it shall keep on deposit in the Treasury of the ^"'''''o"^' 
 
 ^ ^ , . , . , circulation. 
 
 United States, in addition to the redemption fund required 
 
 by section three of the Act of June twentieth, eighteen 
 hundred and seventy-four, an additional sum equal to five 
 per centum of such additional circulation at any time out- 
 standing, such additional five per centum to be treated, 
 held, and used in all respects in the same manner as the 
 original redemption fund provided for by said section three 
 of the Act of June twentieth, eighteen hundred and 
 seventy-four. 
 
168 N. W. HALSEY & CO. 
 
 Distribution •^^c. 7. In order that the distribution of notes to be 
 of notes issued under the provisions of this Act shall be made as 
 geographically), 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 vi^hich such State would be 
 entitled 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 
 of the national banking associations of the United States: 
 Provided, hoTvever, That in case the applications from 
 associations in any State shall not be equal to the amount 
 which the associations of such State would be entitled 
 to under this method of distribution, the Secretary of the 
 Treasury may, in his discretion, to meet an emergency, 
 assign the amount not thus applied for to any applying 
 association or associations in States in the same section 
 of the country. 
 
 Information Sec. 8. That it shall be the duty of the Secretary of 
 relative to value ^he Treasury to obtain information with reference to the 
 
 of SCCllTltlCS 
 
 17 7 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 banking 
 associations as to such securities as would be acceptable 
 under the provisions of this Act. 
 
 Amendment to Sec. 9. That section fifty-two hundred and fourteen of 
 section ^'^, tijg Revised Statutes, as amended, be further amended to 
 ' * read as follows: 
 
 Tax on "Sec. 5214. National banking associations having on 
 circulation, deposit bonds of the United States, bearing interest at the 
 rate of two per centum per annum, including the bonds 
 issued for the construction of the Panama Canal, under 
 the provisions of section eight of 'An Act to provide for 
 the construction of a canal connecting the waters of the 
 
ADDITIONAL CIRCULATION ACT 169 
 
 Atlantic and Pacific oceans,' approved June twenty-eighth, 5ecure J b\) 
 nineteen hundred and two, to secure its circulating notes, U. S. bonds. 
 shall pay to the Treasurer of the United States, in the 
 months of January and July, a tax of one-fourth of one 
 per centum each half year upon the average amount of 
 such of its notes in circulation as are based upon the deposit 
 of 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 of its notes in circulation as are based upon the 
 deposit of such bonds. National banking associations Secured h\) other 
 having circulating notes secured otherwise than by bonds than U. S. bonds. 
 of the United States shall pay for the first month a tax 
 at the rate of five per centum per annum upon the average 
 amount of 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 of 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 Monthly returns 
 its president or cashier, to the Treasurer of the United under oath. 
 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 circula- 
 tion to be verified by examination of the bank's records. 
 The taxes received on circulating notes secured otherwise 
 than by bonds of the United States shall be paid into 
 the Division of Redemption of the Treasury and credited 
 and added to the reserve fund held for the redemption of 
 United States and other notes." " 
 
 Sec. 10. That section nine of the Act approved July twelfth, Amendment 
 eighteen hundred and eighty-two, as amended by the Act approved to R. S. 
 
170 N. W. HALSEY & CO. 
 
 March fourth, nineteen hundred and seven, be further amended to 
 read as follows: 
 
 Withdrawal of "Sec. 9. That any national banking association desiring 
 circulating notes, ^q withdraw its circulating notes, secured by deposit of 
 United States bonds in the manner provided in section 
 four of the Act approved June twentieth, eighteen hundred 
 and seventy-four, is hereby authorized for that purpose 
 to deposit lawful money with the Treasurer of the United 
 States and, with the consent of the Comptroller of the 
 Currency and the approval of the Secretary of the Treas- 
 ury 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 of lawful money shall be so deposited during any 
 calendar month for this purpose. 
 
 "Any national banking association desiring to withdraw 
 any of 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 making such deposit." 
 
 Amendment to Sec. 1 1 . That section fifty-one hundred and seventy-two of the 
 section ^''^' Revised Statutes be, and the same is hereby, amended to read as 
 ^'^' follows: 
 
ADDITIONAL CIRCULATION ACT 171 
 
 "Sec. 5 1 72. In order to furnish suitable notes for circulation, the p,-jnfinp of 
 Comptroller of the Currency shall, under the direction of the circulating notes. 
 Secretary of the Treasury, cause plates and dies to be engraved, 
 in the best manner to guard against counterfeiting and fradulent 
 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 
 entitled 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 associa- 
 tion 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 direction of the Secretary of the 
 Treasury, shall as soon as practicable cause to be prepared circu- 
 lating 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 Distribution. 
 in the Treasury or in the subtreasury of the United States nearest 
 the place of business of each association, and to be held for such 
 association, subject to the order of the Comptroller of the Currency, 
 for their delivery 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 of the present form be issued to any bank as 
 additional circulation provided for by this Act." 
 
 Sec. 1 2. That circulating notes of national banking associa- Redemption at 
 tions, when presented to the Treasury for redemption, as provided "^<^^^V' 
 in section three of the Act approved June twentieth, eighteen 
 hundred and seventy-four, shall be redeemed in lawful money of 
 the United States. 
 
172 N. W. HALSEY & CO. 
 
 Authority. Sec. 1 3. That all acts and orders of the Comptroller of the 
 Currency and the Treasurer of the United States authorized by 
 this Act shall have the approval of the Secretary of the Treasury 
 v/ho 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. 
 
 Public deposits. Sec. 14. That the provisions of section fifty-one hundred and 
 ninety-one of the Revised Statues, with reference to the reserves 
 of national banking associations, shall not apply to deposits of public 
 moneys by the United States in designating depositaries. 
 
 Interest on Sec. 1 5. That all national banking associations designated as 
 deposits, 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, however, 
 than one per centum per annum upon the average monthly amount 
 of such deposits :ProviJe J, however. That nothing contained in 
 this Act shall be construed to change or modify the obligation of 
 any association or any of its officers for the safe-keeping of public 
 money: Provided, further, that the rate of interest charged upon 
 such deposits shall be equal and uniform throughout the United 
 States. 
 
 • Appropriation Sec. 1 6. That a sum sufficient to carry out the purposes of 
 to carr^ out act. the preceding sections of this Act is hereby appropriated out of 
 any money in the Treasury not otherwise appropriated. 
 
 National Sec. 1 7. That a Commission is hereby created, to be called 
 Monetary the "National Monetary Commission," to be composed of nine 
 Commission, 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 Com- 
 mission shall be filled in the same manner as the original appointment. 
 
 Sec. 1 8. That it shall be the duty of this Commission to inquire 
 into and report to Congress at the earliest date practicable, what 
 
ADDITIONAL CIRCULATION ACT 
 
 173 
 
 changes are necessary or desirable in the monetary system of the Dut}) of 
 United States or in the laws relating to banking and currency, commission. 
 and for this purpose 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 administer oaths, 
 to summons and compel the attendance of witnesses, and to employ 
 a disbursing officer and such secretaries, experts, stenographers, 
 messengers, and other assistants as shall be necessary to carry out 
 the purposes for which said Commission was created. The Com- 
 mission shall have the power, through subcommittee or otherwise, 
 to examine witnesses and to make such investigations and examina- 
 tions, in this or other countries, of the subjects committed to their 
 charge as they shall deem necessary. 
 
 Sec. 19. That a sum sufficient to carry out the purposes Expenses of 
 of sections seventeen and eighteen of this Act, and to pay the commission. 
 necessary expenses of the Commission and its members, is hereby 
 appropriated, out of any money in the Treasury not otherwise 
 appropriated. Said appropriation 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. 
 
 Sec. 20. That this Act shall expire by limitation on the thirtieth Expiration of act. 
 day of June, nineteen hundred and fourteen. 
 
 Approved. May 30. 1908. Date of act. 
 
<*> 
 
New York Savings Bank Law 
 
 The Banking Laws of the State of New York Relative 
 TO Securities in Which Deposits in Savings Banks 
 May Be Invested, as Amended and in Effect May 
 23. 1906. 
 
 1 1 6. The trustees of any Savings Bank may invest the moneys In ivhat securities 
 
 deposited therein and the income derived therefrom only as follows: ^^posits ma}f be 
 
 invested. 
 
 1. In the stocks or bonds or interest-bearing notes or Qonds of the 
 obligations of the United States, or those for which the United States and 
 faith of the United States is pledged to provide for the of the District of 
 payment of the interest and principal, including the bonds Columbia. 
 
 of the District of Columbia. 
 
 2. In the stocks or bonds or interest-bearing obligations Bonds of state 
 of this State, issued pursuant to the authority of any law °f ^^^ York. 
 of the State. 
 
 3. In the stocks or bonds or interest-bearing obligations Bonds of 
 of any State of the United States which has not within ^^^ *^^'«^- 
 ten years previous to making such investment by such 
 corporation defaulted in the payment of any part of either 
 principal or interest of any debt authorized by the Legisla- 
 ture of any such State to be contracted; and in the bonds 
 
 or interest-bearing obligations of any State of the United 
 States, issued in pursuance of the authority of the Legisla- 
 ture of such State, which have, prior to the passage of 
 this act, been issued for the funding or settlement of any 
 previous obligation of such State theretofore in default, 
 and on which said funding or settlement obligation there 
 has been no default in the payment of either principal 
 or interest since the issuance of such funded or settlement 
 
1^6 N. W. HALSEY & CO. 
 
 obligation, and provided the interest on such funded or 
 settlement obligation has been paid regularly for a period 
 of not less than ten years next preceding such investment. 
 
 Bonds of school 4. In the stocks or bonds of any city, county, town or 
 
 districts, counties village, school district bonds and union free school district 
 
 and "i""'cipamies|jQjj^g issued for school purposes, or in the interest-bearing 
 
 of New York. ,v *• r V ^ \ -iv c ^u- 
 
 obligations of any city, county, town or viUiage of this 
 
 State, issued pursuant to the authority of any law of the 
 
 State for the payment of which the faith and credit of 
 
 the municipality issuing them are pledged. 
 
 Bonds of other 5. In the stocks or bonds of any incorporated city 
 municipalities situated in one of the States of the United States, which was 
 of the ^"''e^admitted to Statehood prior to January 1, 1896, and which, 
 'since January 1, 1861, has not repudiated or defaulted in 
 the payment of any part of the principal or interest of 
 any debt authorized by the Legislature of any such State 
 to be contracted, provided said city has a population as 
 shown by the Federal Census next preceding said invest- 
 ment of not less than 45,000 inhabitants, and was incorpor- 
 ated as a city at least twenty-five years prior to the making 
 of said investment, and has not since January 1, 1878 
 defaulted for more than ninety days in the payment of 
 any part either of principal or interest of any bond, note, 
 or other evidence of indebtedness, or effected any com- 
 promise of any kind with the holders thereof. But if, after 
 such default on the part of any such State or city, the 
 debt or security in the payment of the principal or interest 
 of which such default occurred has been fully paid, 
 refunded, or compromised by the issue of new securities, 
 then the date of the first failure to pay principal or 
 interest, when due, upon such debt or security, shall be 
 taken to be the date of such default within the provisions 
 of this subdivision, and subsequent failures to pay instal- 
 ments of principal or interest upon such debt or security, 
 prior to the refunding or final payment of the same, shall 
 not be held to continue said default or fix the time thereof 
 within the meaning of this subdivision, at a date later than 
 
NEW YORK SAVINGS BANK LAW 177 
 
 the date of said first failure in payment. If at any time the 
 indebtedness of any such city, together with the indebted- 
 ness of any district, or other municipal corporation or 
 subdivision except a county, which is wholly or in part 
 included within the bounds or limits of said city, less its 
 water debt and sinking funds, shall exceed 7 per centum of 
 the valuation of said city for purposes of taxation, its 
 bonds and stocks shall thereafter, and until such indebted- 
 ness shall be reduced to 7 per centum of the valuation for 
 purposes of taxation, cease to be an authorized investment 
 for the moneys of savings banks; but the Superintendent 
 of the Banking Department may, in his discretion, require 
 any savings bank to sell such bonds or stocks of said city 
 as may have been purchased prior to said increase of debt. 
 
 6. In bonds and mortgages on unincumbered real Bonds and 
 property situated in this State, to the extent of sixty per mortgages on 
 centum of the value thereof. Not more than sixty-five ^^^'- ^^'^'^• 
 per centum of the whole amount of deposits shall be so 
 loaned or invested. If the loan is on unimproved and un- 
 productive real property, the amount loaned thereon shall 
 not be more than forty per centum of its actual value. 
 No investment in any bonds and mortgages shall be made 
 by any savings bank except upon the report of a com- 
 mittee of its trustees charged with the duty of investi- 
 gating the same, who shall certify to the value of the 
 premises mortgaged or to be mortgaged, according to 
 their best judgment, and such report shall be filed and 
 preserved among the records of the corporation. 
 
 Also in the following securities: 
 
 (a) The first mortgage bonds of any railroad corpora- Bonds of railroad 
 tion of this State, the principal part of whose railroad is corporations of 
 located within this State, or of any railroad corporation ^^^ York. 
 of this or any other State or States connecting with and 
 controlled and operated as part of the system of any such 
 railroad corporation of this State, and of which connecting 
 railroad at least a majority of its capital stock is owned 
 by such a railroad corporation of this State or in the 
 
178 N. W. HALSEY & CO. 
 
 mortgage bonds of any such railroad corporation of an 
 
 issue to retire all prior mortgage debt of such railroad 
 
 Payment of companies respectively; provided that at no time within 
 
 interest and five years next preceding the date of any such investment 
 
 dividends on shall such railroad corporation of this State or such con- 
 
 capia socii ^g^.^jj^g railroad corporation respectively have failed reg- 
 
 punctual. ularly and punctually to pay the matured principal and 
 
 interest of all its mortgaged indebtedness, and in addition 
 
 thereto regularly and punctually to have paid in dividends 
 
 to its stockholders during each of said five years an 
 
 amount at least equal to four per centum upon all its 
 
 outstanding capital stock; and provided, further, that at 
 
 the date of every such dividend the outstanding capital 
 
 stock of such railroad corporation, or such connecting 
 
 railroad company respectively shall have been equal to 
 
 at least one-third of the total mortgage indebtedness of 
 
 such railroad corporations respectively, including all bonds 
 
 issued or to be issued under any mortgage securing any 
 
 bonds in which such investment shall be made. 
 
 Bonds of railroad (e) The mortgage bonds of any railroad corporation 
 corporations of incorporated under the laws of any of the United States, 
 ^", which actually owns in fee not less than five hundred 
 miles of standard gauge railway exclusive of sidings, 
 within the United States, provided that at no time within 
 five years next preceding the date of any such investment 
 shall such railroad corporation have failed regularly and 
 punctually to pay the matured principal and interest of 
 all its mortgage indebtedness and in addition thereto 
 regularly and punctually to have paid in dividends to 
 its stockholders during each of said five years an amount 
 at least equal to four per centum upon all its outstanding 
 capital stock; and provided further that during said five 
 years the gross earnings in each year from the operations 
 of said company, including therein the gross earnings of 
 all railroads leased and operated or controlled and operated 
 by said company, and also including in said earnings the 
 
 States. 
 
NEW YORK SAVINGS BANK LAW 179 
 
 amount received directly or indirectly by said company 
 from the sale of coal from mines owned or controlled by 
 it, shall not have been less in amount than five times the 
 amount necessary to pay the interest payable during that 
 year upon its entire outstanding indebtedness, and the 
 rentals for said year of all leased lines, and further pro- 
 vided that all bonds authorized for investment by this 
 subdivision shall be secured by a mortgage which is at 
 the time of making said investment or was at the date 
 of the execution of said mortgage (1) a first mortgage 
 upon not less than seventy-five per centum of the railway 
 owned in fee by the company issuing said bonds exclusive 
 of sidings at the date of said mortgage or (2) a refunding 
 mortgage issued to retire all prior lien mortgage debts of 
 said company outstanding at the time of said investment 
 and covering at least seventy-five per centum of the rail- 
 way owned in fee by said company at the date of said 
 mortgage. But no one of the bonds so secured shall be a 
 legal investment in case the mortgage securing the same 
 shall authorize a total issue of bonds which together with 
 all outstanding prior debts of said company, after deduct- 
 ing therefrom in case of a refunding mortgage, the bonds 
 reserved under the provisions of said mortgage to retire 
 prior debts at maturity, shall exceed three times the out- 
 standing capital stock of said company at the time of 
 making said investment. And no mortgage is to be 
 regarded as a refunding mortgage, under the provisions 
 of this act, unless the bonds which it secures mature at 
 a later date than any bond which it is given to refund, 
 nor unless it covers a mileage at least twenty-five per 
 centum greater than is covered by any one of the prior 
 mortgages so to be refunded. 
 
 (f ) Any railway mortgage bonds which would be a legal Bonds of railroad 
 
 investment under the provisions of subdivision (e) of this corporations 
 
 section, except for the fact that the railroad corporation oivning less than 
 
 issuing said bonds actually owns in fee less than five ^^,f hundred 
 hundred miles of road provided that during five years 
 next preceding the date of any such investment the gross 
 
180 N. W. HALSEY & CO. 
 
 earnings in each year from the operations of said corpora- 
 tion, including the gross earnings of all lines leased and 
 operated or controlled and operated by it, shall not have 
 been less than ten million dollars. 
 
 Guaranteed (g) The mortgage bonds of a railroad corporation 
 bonds, described in the foregoing subdivisions (e) or (f) or the 
 mortgage bond of a railroad owned by such corporation, 
 assumed or guaranteed by it by indorsement on said 
 bonds, provided said bonds are prior to and are to be 
 refunded by a general mortgage of said corporation the 
 bonds secured by which are made a legal investment under 
 the provisions of said subdivision (e) or (f) ; and provided, 
 further, that said general mortgage covers all the real 
 property upon which the mortgage securing said under- 
 lying bonds is a lien. 
 
 (h) Any railway mortgage bonds which would be a 
 legal investment under the provisions of subdivisions (e) 
 or (g) of this section, except for the fact that the railroad 
 corporation issuing said bonds actually owns in fee less 
 than five hundred miles of road, provided the payment of 
 principal and interest of said bonds is guaranteed by 
 endorsement thereon by, or provided said bonds have been 
 assumed by a corporation whose first mortgage, or refund- 
 ing mortgage bonds, are a legal investment under the 
 provisions of subdivision (e) or (f) of this section. But 
 no one of the bonds so guaranteed or assumed shall be a 
 legal investment in case the mortgage securing the same 
 shall authorize a total issue of bonds which, together 
 with all the outstanding prior debts of the corporation 
 making said guarantee or so assuming said bonds, includ- 
 ing therein the authorized amount of all previously 
 guaranteed or assumed bond issues, shall exceed three 
 times the capital stock of said corporation, at the time of 
 making said investment. 
 
 Underlying (i) The first mortgage bonds of a railroad, the entire 
 
 bonds, capital stock of which, except shares necessary to qualify 
 
 directors, is owned by, and which is operated by a railroad 
 
NEW YORK SAVINGS BANK LAW 181 
 
 whose last issued refunding bonds are a legal investment 
 under the provisions of subdivisions (a), (e), or (f) of 
 this section, provided the payment of principal and interest 
 of said bonds is guaranteed by endorsement thereon by 
 the company so owning and operating said road, and 
 further provided the mortgage securing said bonds does 
 not authorize an issue of more than twenty thousand 
 dollars in bonds for each mile of road covered thereby. 
 But no one of the bonds so guaranteed shall be a legal 
 investment in case the mortgage securing the same shall 
 authorize a total issue of bonds, which together with all 
 the outstanding prior debts of the company making said 
 guarantee, including therein the authorized amount of all 
 previously guaranteed bond issues, shall exceed three times 
 the capital stock of said company, at the time of making 
 said investment. 
 
 Bonds which have been or shall become legal invest- 
 ments for Savings Banks under any of the provisions of 
 this act shall not be rendered illegal as investments, ^ 
 though the property upon which they are secured has been 
 or shall be conveyed to another corporation, and though 
 the railroad corporation which issued or assumed said 
 bond has been or shall be consolidated with another rail- 
 road corporation, if the consolidated or purchasing cor- 
 poration shall assume the payment of said bonds and 
 shall continue to pay regularly interest or dividend or 
 both upon the securities issued against, in exchange for 
 or to acquire the stock of the company consolidated or 
 the property purchased or upon securities subsequently 
 issued in exchange or substitution therefor to an amount 
 at least equal to four per centum per annum upon the 
 capital stock outstanding at the time of such consolidation 
 or purchase of said corporation which has issued or 
 assumed said bonds. 
 
 Not more than twenty-five per centum of the assets of Jij^^Uniion of 
 any bank shall be loaned or invested in railroad bonds, lond holdings. 
 and not more than ten per centum of the assets of any 
 bank shall be invested in the bonds of any one railroad 
 
182 N. W. HALSEY & CO. 
 
 corporation described in paragraph (a) of this subdivision, 
 
 and not more than five per centum of such assets in the 
 
 bonds of any other railroad corporation. In determining 
 
 the amount of the assets of any bank under the provisions 
 
 of this subdivision its securities shall be estimated in the 
 
 manner prescribed for determining the per centum of 
 
 surplus by section one hundred and twenty-four of this 
 
 Street railroad act. Street railroad corporations shall not be considered 
 
 corporations railroad corporations within the meaning of this sub- 
 no/ railroad j. • • 
 
 ,. division. 
 corporations. 
 
 NOTE. 
 
 California Under the provisions of Section "3" bonds of the 
 
 bonds legal State of California are legal investments for New York 
 
 for investment Savings Banks. Under the provisions of Section "5" bonds 
 
 Savinss Banks °^ *^^ cities of San Francisco, Los Angeles and Oakland 
 
 are legal. These are the only California securities which 
 
 come at present within the limitations of the New York 
 
 Savings Bank Law. Under the provisions of Section "6e," 
 
 however, the Southern Pacific Railroad First Refunding 
 
 4 per centum bonds and all underlying issues should become 
 
 legal in 1911, provided dividends on the Company's stock are 
 
 continued at the prescribed rate. 
 
General Index 
 
 Page 
 
 Index to Additional Circulation Act (Emergency Currency 
 
 Act) 201 
 
 Index to Bank Act of California 1 84 
 
 Index to Code of the District of Columbia 1 98 
 
 Index to Currency Act of 1900 200 
 
 Index to Deposit Acts of California 191 
 
 Index to National Bank Act as Amended 1 92 
 
 Index to New York Savings Bank Law 202 
 
 Index to Sections of the Revised Statutes 1 99 
 
184 N. W. HALSEY 5- CO. 
 
 Bank Act of California 
 
 Section Page 
 
 Act — date effective 147 55 
 
 Title I 9 
 
 Adjustment of investments 14S 55 
 
 Administrator — deposits in trust company by 92 34 
 
 Advertising 28 18 
 
 Advertising — capital 14 12 
 
 Applications — investigations of 128 43 
 
 Articles of incorporation as affected by this act 145 55 
 
 Violation of 134 46 
 
 Assets — purchase of other banks 31 19 
 
 Of banks, purchase by employees 42 22 
 
 Sale of, to other banks 31 19 
 
 Bank — definition of 2 9 
 
 Banks — use of word limited 12 12 
 
 Branch 9 11 
 
 Commercial 5 10 
 
 Departmental 22 16 
 
 Departmental, certificate required 24 17 
 
 Departmental, paid-up capital 23 16 
 
 Departmental, relations of departments 26 17 
 
 Departmental, reserve required 25 17 
 
 Examination of, by director 139 51 
 
 Foreign, inspection of 124 41 
 
 Funds of, dissolved 137 50 
 
 In unsound condition 136 46 
 
 In unsound condition, neglect to report 126 42 
 
 Inspection of 124 41 
 
 National, examination of 48 23 
 
 Private 13 12 
 
 Publication of financial condition 132 45 
 
 Purchase of 31 19 
 
 Report of departmental 129 43 
 
 Reports to Superintendent 130 43 
 
 Sale of 31 19 
 
 Savings , 4 9 
 
 Trust companies 6 10 
 
 Voluntary dissolution of 137 50 
 
 Withheld reports of 138 51 
 
 Without capital, to convert into stock corporation 29 18 
 
 Bonds — deposited by trust company 96 35 
 
 Legal, for savings banks 61 26 
 
 Limitation of investment in 46 23 
 
INDEX 185 
 
 BANK ACT OF CALIFORNIA— Con/inueJ 
 
 Bonds — Continued Section Page 
 
 Limitation of investment in, by savings banks 67 29 
 
 Limitation of loans by savings banks on ^ 67 29 
 
 Limitation of underwriting, purchase or guarantee of 36 21 
 
 Not legal for investment by savings banks 61 27 
 
 On deposit by trust company to draw interest 98 36 
 
 Branch banks 9 11 
 
 Call of county or municipal deposits 7 62 
 
 Capital — advertising of 14 12 
 
 Paid up, relation to deposit liabilities 19 15 
 
 Reduced by impairment 133 45 
 
 Required by commercial banks 82 32 
 
 Required by savings banks 60 24 
 
 Required by trust companies 90 33 
 
 Stock, investment in own 34 20 
 
 Certificate of State Superintendent of Banks 127 42 
 
 Certificate — posting of 50 24 
 
 Certificates of deposit 63 28 
 
 Certificates of deposit taken for state deposits.' 7 59 
 
 Title required with mortgages deposited by 99 36 
 
 Change of investments to conform to act 145 55 
 
 Claims against bank in liquidation 136 46 
 
 Collateral — stock of other banks as 67 30 
 
 Commercial banks — capital required by 82 32 
 
 Corporation loans by 81 31 
 
 Definition of 5 10 
 
 Loans by 80 31 
 
 Loans by, to directors 83 32 
 
 Commission to employees prohibited 39 22 
 
 Condition — banks in unsound 136 46 
 
 Publication of reports of 132 45 
 
 Contract for state deposit 4 59 
 
 Contracts — real estate 35 20 
 
 Co-partnership 18 15 
 
 Corporation loans by commercial banks 81 31 
 
 Corporations — foreign 7 10 
 
 Counsel — when may be employed 136 47 
 
 Counties — deposit law does not prohibit buying bonds 12 64 
 
 County deposits 60 
 
 County deposits in savings banks 28 62 
 
 Officials not responsible for deposits in county depositaries 9 63 
 
 Court — report of Superintendent admissible as evidence in 142 54 
 
 Courts — deposits by order of 51 24 
 
 Deceased depositors 15 13 
 
186 N. W. HALSEY & CO. 
 
 BANK ACT OF CALIFORNIA— Continued 
 
 Section Page 
 
 Departmental banks. (See banks) 22 16 
 
 Deposit — certificates of 63 28 
 
 Of state moneys in banks i 57 
 
 Depositors — deceased 15 13 
 
 Depositors in savings banks may be paid by draft ■. 61 27 
 
 Married women 16 13 
 
 Minors 16 13 
 
 Unknown 15 13 
 
 Deposits — by order of court 51 24 
 
 By trustees 51 24 
 
 In trust 16 13 
 
 In trust company by authority of court 91 33 
 
 In trust company by public administrator 92 34 
 
 In trust company by order of Court 93 34 
 
 Joint 16 13 
 
 Limitation of deposits by savings banks with other banks 68 30 
 
 National banks receiving deposits of state banks 48 23 
 
 Of county moneys in banks 60 
 
 Of municipal moneys in banks 60 
 
 Payment to survivors 16 14 
 
 Savings 49 23 
 
 State, county and municipal, in savings banks 62 28 
 
 Withdrawal of, from savings banks 64 28 
 
 With other banks 43 22 
 
 With other banks by savings banks 68 30 
 
 Deputy superintendent of banks 121 39 
 
 Directors — eligibility of 10 11 
 
 Examination of bank by 139 51 
 
 Loans to, by commercial banks 83 32 
 
 May not borrow of savings banks 65 29 
 
 Oath II II 
 
 Transactions with bank 35 20 
 
 Dissolution of bank, voluntary 137 50 
 
 Dividends 21 16 
 
 Drafts — depositors may be paid by 62 27 
 
 Employees — loans to, prohibited 33 20 
 
 Transactions with bank 35 20 
 
 Entries — false 38 21 
 
 Examination of bank by directors 139 51 
 
 Of national banks 48 23 
 
 Reports of ^ 140 52 
 
 Examiners — state bank department 125 42 
 
INDEX 187 
 
 BANK ACT OF CALIFORNIA— Continued 
 
 Section Page 
 
 Examiner — when not qualified to examine 125 42 
 
 Expense of state banking department 123 40 
 
 Transporting moneys to and from county or municipal depos- 
 itaries 10 63 
 
 Transporting moneys to and from state depositaries i 57 
 
 Foreign banks — inspection of 124 41 
 
 Corporations 7 10 
 
 Forfeitures 144 54 
 
 Funds — deposit of with other banks 43 22 
 
 Of dissolved banks 137 50 
 
 Guarantee of bonds 36 21 
 
 Indemnity bonds for security of state deposits 5 59 
 
 Information for public 17-18 14-15 
 
 On file for stockholders 17 14 
 
 Public records in superintendent's office 141 53 
 
 Inspection of banks 123 40 
 
 Of foreign banks 124 41 
 
 Interest on county or municipal deposits 2 61 
 
 On state deposits i 57 
 
 Paid by trust company as trustee 95 35 
 
 Unpaid, not profit 45 23 
 
 When payable on state deposits 2 58 
 
 Investment in bonds 46 23 
 
 Investment in stocks prohibited 36 21 
 
 Investments — change of, to conform to act 145 55 
 
 Legal for trust companies 105 38 
 
 Joint accounts 16 13 
 
 Liabilities — deposit, relation to paid-up capital 19 15 
 
 Liability — stockholders' 40 22 
 
 Limit of county or municipal deposits 5 62 
 
 To amount of state deposit i 57 
 
 Liquidation — by action of superintendent 136 46 
 
 Penalty for violation of law 134 46 
 
 Loans — By commercial banks 80 31 
 
 Savings banks 67 29 
 
 On bonds by savings banks 67 29 
 
 On own capital stock limited 34 20 
 
 On real estate 47 23 
 
 On real estate by savings banks 67 29 
 
 Secured by bank stocks 44 22 
 
 To directors of commercial banks 83 32 
 
 To officers or employees prohibited ^3 20 
 
 Married women depositors 16 13 
 
188 N. W. HALSEY & CO. 
 
 BANK ACT OF CALIFORNIA— ConiinueJ 
 
 Section Page 
 
 Mining stocks — savings banks may not invest in or loan on 67 30 
 
 Minors depositors 16 13 
 
 Mortgages 35 20 
 
 Municipal deposits 60 
 
 In savings banks 62 2? 
 
 Municipalities — deposit law does not prohibit buying bonds 12 64 
 
 Municipal officials not responsible for deposits in municipal depos- 
 itaries 9 63 
 
 Mutual corporations may have capital stock 29 18 
 
 National banks — examination of 48 23 
 
 Oath of examiner 125 42 
 
 Obligations of banks — purchase of by employees 41 22 
 
 Officers — loans to, prohibited 33 20 
 
 May not borrow of savings bank 65 29 
 
 State Banking Department 122 40 
 
 Transactions with banks 35 20 
 
 Overdrafts by employees prohibited 39 22 
 
 Partnership 18 15 
 
 Penalties 144 54 
 
 Penalty for failure to report 138 51 
 
 Private banks 13 12 
 
 Publication of financial condition of banks 132 45 
 
 Public administrator, deposits in trust companies by 92 34 
 
 Deposits in savings banks 63 28 
 
 Information for 17-18 14-15 
 
 Purchase of banks 31 19 
 
 Of bonds 36 21 
 
 Real estate loans by savings banks 67 29 
 
 Loans on 47 23 
 
 Mortgages and contracts 35 20 
 
 Receipt for county or municipal deposits 3 61 
 
 Record of county or municipal deposits 4 62 
 
 Report of superintendent to Governor 140 52 
 
 Reports of examination by directors 139 51 
 
 Penalty for withholding 138 51 
 
 Publication of 132 45 
 
 Reports to superintendent — dates of 131 45 
 
 Reserve — lawful money 20 15 
 
 Of savings banks 68 30 
 
 Relation to deposits 20 15 
 
 Safe deposit department 30 19 
 
 Sale of banks 31 19 
 
 Savings bank — use of words 12 12 
 
INDEX 189 
 
 BANK ACT OF CALIFORNIA— Con^mueJ 
 
 Section Page 
 
 Savings banks — bonds legal for investment by 6i 25 
 
 Not legal for investment of 61 27 
 
 Capital stock 60 24 
 
 "Creation of debt" defined 4 9 
 
 Deposits with other banks 68 30 
 
 How they may borrow 62 27 
 
 Limitations of deposits with other banks 68 30 
 
 Limitations of investment in bonds 67 29 
 
 Loans by 67 29 
 
 Loans may not be made to directors, etc 65 29 
 
 Savings banks — loans on real estate by 67 30 
 
 Only, can receive savings deposits 49 23 
 
 Reserve 68 30 
 
 Stock of other banks used as collateral with 67 30 
 
 Withdrawal of deposits 64 28 
 
 May not invest in mining stock 67 30 
 
 May take state, county and municipal deposits 62 28 
 
 Property which may be purchased, held or conveyed by 61 25 
 
 School moneys 2 58 
 
 Security for county or municipal deposits I 60 
 
 For state deposits 3 58 
 
 Special deputy superintendent 138 51 
 
 State bank department — certificate from superintendent necessary.. 127 42 
 
 Chief deputy 121 40 
 
 Dates for reports to 131 45 
 
 Employees 121 39 
 
 Examiners 125 42 
 
 Funds 123 40 
 
 Investigations of applications 128 43 
 
 Location of offices 122 40 
 
 Neglect to report unsound condition 126 42 
 
 Reports of departmental banks 129 43 
 
 Reports from banks, character required 130 43 
 
 State deposits 57 
 
 In savings banks 62 28 
 
 State treasurer not responsible for deposits with state depositaries. . . 6 59 
 
 Treasurer's annual statement to state depositaries 4 59 
 
 Stockholders — information for 17 14 
 
 Stockholders' liability cannot be waived 40 22 
 
 Stockholders' transactions with bank 35 20 
 
 Stocks — bank, used as collateral with savings banks 67 30 
 
 Investment in, prohibited 37 21 
 
190 N. W. HALSEY & CO. 
 
 BANK ACT OF CALIFORNIA— Continued 
 
 Section Page 
 
 Superintendent — information in office of 141 S3 
 
 Neglect of duty by I43 54 
 
 Of banks 120 39 
 
 To take charge of unsound banks 136 46 
 
 Superintendent's report to Governor 140 52 
 
 Surplus — portion of net profits set aside for 21 16 
 
 Surviving relatives — payment of deposits to 16 13 
 
 Survivor may collect joint deposit 16 13 
 
 Transactions — prior to passage of act 145 55 
 
 Trust companies — definition of 6 10 
 
 Trust companies only, can use word "trust" 104 37 
 
 Trust company — affidavit of directors 100 36 
 
 Allowed to draw interest on bonds deposited with state treasurer 98 36 
 
 Amount of deposit required of 98 36 
 
 Bonds deposited with state by 96 35 
 
 Capital required 90 33 
 
 Confidential relations with clients 103 37 
 
 Departmental business 106 38 
 
 Deposits by authority of court 91 33 
 
 Deposits by order of court in 93 34 
 
 Deposits by public administrator with 92 34 
 
 Fees of counsel and appraisers 99 36 
 
 Legal investments for 105 38 
 
 May mortgage property 97 35 
 
 Responsibility of, for investments 94 34 
 
 Retiring from business 102 37 
 
 Shall furnish list of trusts 101 37 
 
 Shall pay interest on moneys held as trustee 95 35 
 
 Use of words 12 12 
 
 Trustees — deposits by 51 24 
 
 Trust funds 32 20 
 
 "Trust"— use of word limited 104 37 
 
 Underwriting of bonds 36 21 
 
 Unlocated depositors 15 13 
 
 Unsafe banks 136 46 
 
 Unsafe condition of banks — failure to report 143 54 
 
 Violation of articles of incorporation 134 46 
 
 Public deposit laws 11 63 
 
 Voluntary liquidations I37 50 
 
INDEX 191 
 
 State Deposit Act 
 
 Section Page 
 
 Act of 1905 repealed 
 
 Additional security may be required 3 58 
 
 Bonds which may be used as security for funds on deposit 3 58 
 
 Certificate of deposit taken by state treasurer counted as cash 7 59 
 
 Deposit of state moneys in banks i 57 
 
 Deposits subject to call i 57 
 
 Expense of transporting moneys to and from depositary banks i 57 
 
 Indemnity bonds may be required S 59 
 
 Interest — rate on deposits i 57 
 
 Interest — when payable 2 58 
 
 Limitation of deposits i 57 
 
 Provisions of contract 4 59 
 
 School moneys on deposit 2 58 
 
 Security for deposits i 57 
 
 Treasurer's annual statement to bank 4 59 
 
 Treasurer not responsible for deposits 6 59 
 
 Warrants may be paid by certificates of deposit 7 60 
 
 Value of bonds deposited as security 3 58 
 
 County and Municipal Deposit Act 
 
 Section Page 
 
 Amount that may be deposited 5 62 
 
 Bonds required as security I 60 
 
 Counties or municipalities may buy bonds 12 64 
 
 Deposit of public moneys, other than state, in banks i 60 
 
 Deposits subject to call 7 62 
 
 Expense of transportation of moneys to and from depositary banks.. 10 63 
 
 Interest payable quarterly 2 61 
 
 Minimum rate two per centum 2 61 
 
 On failure of bank to repay, security to be sold 8 62 
 
 Public officials not responsible for deposits 9 63 
 
 Rate of interest to be fixed, when 2 61 
 
 Receipt for deposit 3 61 
 
 Receipts to be counted as cash 6 62 
 
 Record of deposits 4 62 
 
 Repeal of acts in conflict 13 64 
 
 Value of bonds deposited as security. i 61 
 
 Violation of deposit laws ll 63 
 
192 N. W. HALSEY & CO. 
 
 National Bank Act 
 
 Section Page 
 
 Act — national bank i 65 
 
 Additional Circulation Act ibr 
 
 Amendments to articles of association 42 jj 
 
 Appointment — term and salary of Comptroller 3 65 
 
 Articles of association 13 68 
 
 Assessment for impairment of capital 1 15 104 
 
 Assessment — provision for enforcement of 116 104 
 
 Associations must not hold their own capital stock in 103 
 
 Bank circulation Chapter III 79 
 
 Bank circulation — penalty for imitating for advertising purposes 167 125 
 
 Pledging 166 124 
 
 preparation of 59 84 
 
 Bank — closed circulation of 71 90 
 
 Bank may enjoin further liquidation proceedings 145 114 
 
 Bank — proceedings to liquidate must be brought 146 115 
 
 Banks — liquidating circulation of 89 96 
 
 National, failed 160 120 
 
 To take circulation at par yj 92 
 
 Whose existence has expired 142 1 13 
 
 Bonds — annual examination of 56 81 
 
 Deposit of United States 24 72 
 
 Examination of 55 81 
 
 Exchange of 51 80 
 
 Forfeited if circulation is dishonored 144 114 
 
 General provisions respecting 57 82 
 
 Held by treasurer 52 80 
 
 Notice of transfer of 54 81 
 
 Of liquidating banks 141 1 12 
 
 Record of transfer of 53 81 
 
 Relation of bonds deposited to capital 50 80 
 
 Security for circulation 49 79 
 
 Sold at private sale 151 116 
 
 Sold at public auction 149 115 
 
 United States, defined 48 79 
 
 Capital — assessment for impairment of 115 104 
 
 Relations of, to bonds deposited 50 80 
 
 Capital stock — associations must not hold their own in 103 
 
 Amount required 17 70 
 
 Enforcing payment of 20 71 
 
 Increase of 43 77 
 
 Payment of 19 70 
 
 Reduction of 45 78 
 
INDEX 193 
 
 NATIONAL BANK ACT— Continued 
 
 Capital Stock — Continued Section Page 
 
 Restoration of 21 71 
 
 Shares of 18 70 
 
 When increase becomes valid 24 72 
 
 Certificate of authority 25 72 
 
 Organization 15 69 
 
 Publication of 26 yz 
 
 Officers and directors 23 72 
 
 Certification of checks — false 177 129 
 
 False, penalty for 178 129 
 
 Certified copies of organization certificate as evidence 183 131 
 
 Charter — forfeiture of 157 118 
 
 Circuit courts may enjoin Comptroller 180 130 
 
 Circulation — amount obtainable 58 83 
 
 Banks Chapter III 79 
 
 Of extended banks 69 89 
 
 For what receivable 63 85 
 
 Improper use of bank 113 103 
 
 Of expired banks, penalty for issue of 176 128 
 
 Of gold banks 64 86 
 
 Shall bear charter number of bank 60 85 
 
 Tax on Chapter IV 92 
 
 Clearing house certificates counted as reserve. 
 
 Clerks in Comptroller's office 7 66 
 
 Closed bank — circulation of 71 90 
 
 Comptroller of the Currency 2 65 
 
 Condition — reports of 1 19 105 
 
 Verification of, report of condition 120 106 
 
 Consent of two-thirds necessary for extension 132 no 
 
 Contributions — corporation, to political parties prohibited 160 
 
 Converted bank may retain branches 39 76 
 
 Corporate existence — extension of •• Chapter VI 109 
 
 Powers 16 69 
 
 Counterfeit circulation — penalty for 169 125 
 
 Penalty for dealing in I75 128 
 
 Penalty for improper 165 124 
 
 Penalty for passing 172 127 
 
 Creditor's bill against shareholders 164 123 
 
 Creditors — illegal preference of 163 123 
 
 Crimes Chapter VIII 124 
 
 Currency Act, March 14, 1900 151 
 
 Currency bureau Chapter I 65 
 
 Delivering circulation — penalty for improper 165 124 
 
194 N. W. HALSEY & CO. 
 
 NATIONAL BANK ACT— Continued 
 
 Section Page 
 
 Deposit and withdrawal of public moneys in government depositaries. 226 147 
 
 By certain postmasters in, provision for government depositaries. 227 147 
 
 Not required for consolidation 140 112 
 
 Of lawful money for redemption of outstanding circulation 139 112 
 
 Of United States bonds 24 72 
 
 Depositaries — government Chapter XI 146 
 
 Deputy comptroller 5 66 
 
 Designation and duties of government depositaries 225 146 
 
 Directors in Oklahoma — qualifications of 29 73 
 
 Number and election of 27 73 
 
 Oaths of 31 74 
 
 Qualifications of 28 73 
 
 Vacancies in board of 33 75 
 
 Dissenting shareholders may withdraw 135 no 
 
 Dividends by national banks 109 102 
 
 Reports of 121 106 
 
 Unearned, prohibited 1 14 103 
 
 Earnings — reports of 121 106 
 
 Election — failure to hold annual 32 74 
 
 Qualifications of voters at 30 74 
 
 Enforcing tax on circulation 83 94 
 
 Evidence 182 131 
 
 Examination in District of Columbia 128 108 
 
 Examiners 125 107 
 
 Compensation of 127 108 
 
 Qualification for 126 107 
 
 Existence — corporate Chapter VI 109 
 
 Extended banks — circulation of 69 8g 
 
 Extension of corporate existence Chapter VI 109 
 
 Failure to make semi-annual return of taxable circulation 88 96 
 
 First lien for redeeming circulation 150 116 
 
 Fraudulent notes to be marked 79 92 
 
 Gold bank — conversion of 36 75 
 
 Organization of 35 75 
 
 Circulation of 64 86 
 
 Reserve requirements for 102 100 
 
 Gold certificates counted as reserve loi 99 
 
 Government depositaries Chapter XI 146 
 
 Impairment of capital — assessment for 115 104 
 
 Impressions of tools, penalty for having 174 128 
 
 Penalty for taking unauthorized 173 127 
 
 Indian Territory — ^jurisdiction in 185 131 
 
INDEX 195 
 
 NATIONAL BANK ACT— Continued 
 
 Section Page 
 
 Insolvent bank — distribution of assets of i55 nS 
 
 Notes to creditors of IS4 "7 
 
 Taxes unremitted i6o 120 
 
 Interest by Comptroller in national banks prohibited 6 66 
 
 Interest — penalty for unlawful 108 102 
 
 Which may be charged by national banks 107 101 
 
 Issue of other notes prohibited 78 92 
 
 Jurisdiction Chapter VIII 124 
 
 Lawful money 231 150 
 
 Laws apply to all national banks 92 97 
 
 Legal tender and lawful money 231 150 
 
 Liabilities — exception for trustees, etc 41 77 
 
 Liability of directors 158 118 
 
 Personal, of shareholders 40 76 
 
 Restriction on banks H2 103 
 
 Liquidating banks, circulation of 70 90 
 
 Liquidation Chapter VII lii 
 
 Location — change of 46 78 
 
 Material for circulation — penalty for illegal possession or use of 171 126 
 
 Money order funds — penalty for misapplication of 228 148 
 
 Mutilating circulation — penalty for 168 125 
 
 National bank act i 65 
 
 National bank cases — jurisdiction of 181 130 
 
 National banks — powers and organization of Chapter II 68 
 
 Regulation of Chapter V 97 
 
 "National," use of — in titles 130 109 
 
 Notice to present circulation for redemption 148 115 
 
 Uncurrent — prohibition against 117 105 
 
 United States, redemption in 74 91 
 
 Notice of voluntary liquidation 138 112 
 
 "Obligations of the United States" defined 170 126 
 
 Office malfeasance — penalty for 179 130 
 
 Offices, vaults, etc.. Comptroller's 9 66 
 
 Organization and power of national banks Chapter II 68 
 
 Certificate 14 68 
 
 Proceedings, examination of 22 71 
 
 Organized under the act of February 25, 1863 — status of 47 79 
 
 Penalty for failure to report 122 106 
 
 For unlawful interest charges 108 102 
 
 Place of business 93 97 
 
 Plates and dies — control of 61 85 
 
 Examination of 62 85 
 
 Pledging United States notes — penalty for 166 124 
 
196 N. W. HALSEY & CO. 
 
 NATIONAL BANK ACT— Continued 
 
 Section Page 
 
 Powers and organization of national banks Chapter II 68 
 
 Powers — corporate i6 69 
 
 President shall be a director 34 75 
 
 Private sale — bonds sold at 151 1 16 
 
 Proceedings in default of tax on circulation 82 94 
 
 Protest of bank circulation 143 113 
 
 Public auction — bonds sold at 149 115 
 
 Provisions for redeeming circulation 66 87 
 
 Qualifications of Comptroller 4 65 
 
 Real estate — dealings of national banks in 106 loi 
 
 Receiver — appointment and duties 152 1 16 
 
 When may be appointed 153 117 
 
 When he may purchase property 159 119 
 
 Receivership Chapter VII 1 1 1 
 
 Expenses of — how paid 156 118 
 
 Redeemed notes to be cancelled 7Z 90 
 
 Redemption account — disposition of 75 91 
 
 Fund counted as reserve 98 98 
 
 Of incomplete circulation 76 91 
 
 Of circulation in United States notes 74 91 
 
 Of United States note certificates 100 99 
 
 Refunding excess tax on circulation 84 94 
 
 Regulation for redemption records T^ 9° 
 
 Of the banking business Chapter V 97 
 
 Report — annual, of Comptroller 10 67 
 
 Reports of condition 119 105 
 
 Of condition, verification of 120 106 
 
 Of dividends and earnings 121 106 
 
 Of other banks 123 106 
 
 Penalty for failure to 122 106 
 
 Reserve — agents' balances counted as 96 98 
 
 Cities 94 97 
 
 Clearing house certificates counted as 97 98 
 
 Deposit in central reserve city 103 100 
 
 Cities, additional 104 100 
 
 Not maintained 95 98 
 
 Redemption fund counted as 98 98 
 
 Requirements 94 97 
 
 Requirements for gold banks 102 100 
 
 United States gold certificates counted as loi 99 
 
 United States note certificates counted as 99 98 
 
INDEX 197 
 
 NATIONAL BANK ACT— Continued 
 
 Section Page 
 
 Restrictions on liability 112 103 
 
 On loans no 102 
 
 Savings banks in the District of Columbia Chapter X 144 
 
 Seal of Comptroller's office 8 66 
 
 Semi-annual return of circulation 81 93 
 
 Return of taxable circulation 87 95 
 
 Shareholders' agent — appointment and qualifications of 161 120 
 
 Agents, duties of 162 122 
 
 Dissenting, may withdraw I3S i ^0 
 
 Liability 40 76 
 
 List of 118 IDS 
 
 Special examination necessary for extension 133 no 
 
 State banks — conversion of 37 75 
 
 Capital of 38 76 
 
 State taxation of national banks 124 107 
 
 Status not changed by extension 134 1 10 
 
 Suspension of business after default 147 115 
 
 Suits against United States officers or agents 184 131 
 
 Surplus of national banks 109 102 
 
 Tax on authorized circulation 86 95 
 
 Circulation Chapter IV 92 
 
 Circulation of converted banks 89 96 
 
 Circulation provisions restricted 90 96 
 
 Taxation of national banks by state 124 107 
 
 Of notes, etc 91 96 
 
 Title — change of 46 78 
 
 Trust companies in the District of Columbia Chapter IX 132 
 
 Unauthorized deposit of public moneys — penalty for 229 149 
 
 Receipt or use of public money 229 149 
 
 United States note certificates counted as reserve 99 98 
 
 Use of "National" in titles ^ 130 109 
 
 Violation of banking law Chapter VIII 124 
 
 Visitorial power — limitations of 129 109 
 
 Vote required for liquidation I37 1 1 1 
 
 When circulation is exempt from taxation 85 94 
 
 Withdrawing circulation 67 88 
 
 Circulation, general provisions for 68 88 
 
 Worn-out or mutilated circulation 65 86 
 
198 N. W. HALSEY & CO. 
 
 CODE OF THE DISTRICT OF COLUMBIA 
 
 Section Page 
 
 Amendment — provision for 220 143 
 
 By-laws 210 141 
 
 Capital — increase of 215 142 
 
 Capital stock — money payments of — required 207 140 
 
 Provisions relating to 199 137 
 
 Charter 188 133 
 
 Filing of 190 133 
 
 Competent to act as trust, etc 193 135 
 
 Corporate existence 198 137 
 
 Directors' liability for payment of unearned dividends 211 141 
 
 Liability may be avoided 212 141 
 
 Number and election of 208 140 
 
 Responsibility of, for excess liabilities 213 141 
 
 District court — all similar, subject to this act 219 143 
 
 Enforcement of subscriptions to 200 138 
 
 Evidence — certified copy of incorporation certificate competent 216 142 
 
 Jurisdiction, district supreme court has 218 142 
 
 Larceny 204 139 
 
 Liability for failure to report 203 139 
 
 No bond or other security required 217 142 
 
 Notice of intention to apply for charter 189 133 
 
 Officers — appointment of 209 140 
 
 Organization certificate • 187 132 
 
 Perjury 204 139 
 
 Powers 192 134 
 
 Privileges extended to existing corporations 196 136 
 
 Provisions for organization 186 132 
 
 Qualifications as trustee 194 136 
 
 Real estate — dealings in 197 137 
 
 Report — annual of Comptroller 201 138 
 
 Security for faithful performance of trust 195 136 
 
 Stock — interest of 205 139 
 
 Stockholders' liability 206 140 
 
 Supervision — under Comptroller 191 134 
 
 Tax on gross earnings 202 138 
 
 Trust companies, etc. — provisions for charter 189 133 
 
 Trustee not liable on stock assessment 214 141 
 
 SAVINGS BANKS, ETC.— DISTRICT OF COLUMBIA 
 
 Savings banks in — formation of 221 144 
 
 Reports to Comptroller 222 144 
 
 Examination of, by Comptroller 223 145 
 
 Act of June 25, 1906, relative to 224 145 
 
INDEX 
 
 199 
 
 Index to Sections of Revised Statutes Included 
 in the National Bank Act as Amended 
 
 Section 
 
 Paragraph 
 
 Section 
 
 Paragraph 
 
 Section 
 
 Paragraph 
 
 Section 
 
 Paragraph 
 
 324 
 
 2 
 
 5136 
 
 16 
 
 5182 
 
 63 
 
 6220 
 
 137 
 
 325 
 
 3 
 
 5137 
 
 106 
 
 6183 
 
 78 
 
 6221 
 
 138 
 
 326 
 
 4 
 
 6138 
 
 17 
 
 5184 
 
 65 
 
 6222 
 
 139 
 
 327 
 
 5 
 
 5139 
 
 18,42 
 
 5185 
 
 35,64 
 
 6223 
 
 140 
 
 328 
 
 7 
 
 5140 
 
 19 
 
 5186 
 
 102 
 
 6224 
 
 141 
 
 329 
 
 6 
 
 5141 
 
 20,21 
 
 5187 
 
 165 
 
 5226 
 
 70 
 
 330 
 
 8 
 
 5142 
 
 43,44 
 
 5188 
 
 167 
 
 5226 
 
 143 
 
 331 
 
 9 
 
 6143 
 
 45 
 
 6189 
 
 168 
 
 5227 
 
 144 
 
 332 
 
 128 
 
 5144 
 
 30 
 
 6190 
 
 93 
 
 5228 
 
 147 
 
 333 
 
 10 
 
 5145 
 
 27 
 
 5191 
 
 94,95 
 
 5229 
 
 148 
 
 380 
 
 184 
 
 5146 
 
 28 
 
 6192 
 
 96 
 
 5230 
 
 149, 150 
 
 605 
 
 221 
 
 5147 
 
 31 
 
 5193 
 
 99 
 
 6231 
 
 151 
 
 629 
 
 180 
 
 6148 
 
 33 
 
 5194 
 
 100 
 
 6232 
 
 72 
 
 713 
 
 222,224 
 
 5149 
 
 32 
 
 5196 
 
 103 
 
 6233 
 
 73 
 
 714 
 
 222,224 
 
 5150 
 
 34 
 
 6196 
 
 77 
 
 5234 
 
 152 
 
 736 
 
 146 
 
 5151 
 
 40 
 
 6197 
 
 107 
 
 5235 
 
 164 
 
 884 
 
 182 
 
 5152 
 
 41 
 
 6198 
 
 108 
 
 5236 
 
 155 
 
 885 
 
 183 
 
 5153 
 
 226 
 
 6199 
 
 109 
 
 6237 
 
 146 
 
 3410 
 
 38 
 
 5154 
 
 37 
 
 6200 
 
 110 
 
 6238 
 
 166 
 
 3411 
 
 85 
 
 5156 
 
 39 
 
 6201 
 
 111 
 
 5239 
 
 167,158 
 
 3414 
 
 87 
 
 5156 
 
 47 
 
 5202 
 
 112 
 
 5240 
 
 125,126, 
 
 3415 
 
 88 
 
 5157 
 
 92 
 
 6203 
 
 113 
 
 127 
 
 3416 
 
 89 
 
 6158 
 
 48 
 
 5204 
 
 114 
 
 6241 
 
 129 
 
 3417 
 
 90 
 
 6159 
 
 24,49 
 
 6205 
 
 115 
 
 5242 
 
 163 
 
 3585 
 
 231 
 
 5160 
 
 60 
 
 5206 
 
 117 
 
 5243 
 
 130 
 
 3586 
 
 231 
 
 5161 
 
 61 
 
 5207 
 
 166 
 
 6413 
 
 170 
 
 3587 
 
 231 
 
 5162 
 
 52 
 
 5208 
 
 177 
 
 6416 
 
 169 
 
 3588 
 
 231 
 
 5163 
 
 63 
 
 5209 
 
 179 
 
 5430 
 
 171 
 
 3589 
 
 231 
 
 5164 
 
 54 
 
 5210 
 
 118 
 
 5431 
 
 172 
 
 3590 
 
 231 
 
 5165 
 
 56 
 
 5211 
 
 119 
 
 5432 
 
 173 
 
 3620 
 
 226 
 
 5166 
 
 66 
 
 5212 
 
 121 
 
 5433 
 
 174 
 
 3701 
 
 91 
 
 5167 
 
 67 
 
 5213 
 
 122 
 
 6434 
 
 175 
 
 3811 
 
 11 
 
 5168 
 
 22,23 
 
 5214 
 
 80 
 
 6437 
 
 176 
 
 3847 
 
 227 
 
 5169 
 
 25 
 
 5215 
 
 81 
 
 6488 
 
 229 
 
 4046 
 
 228 
 
 5170 
 
 26 
 
 5216 
 
 82 
 
 6497 
 
 230 
 
 5133 
 
 13 
 
 6172 
 
 69 
 
 5217 
 
 83 
 
 
 
 5134 
 
 14 
 
 5173 
 
 61 
 
 6218 
 
 84 
 
 
 
 5135 
 
 15 
 
 6174 
 
 62 
 
 5219 
 
 124 
 
 
 
200 N. W. HALSEY <5- CO. 
 
 Currency Act 
 
 Section Page 
 
 Amendment to section 5138, R. S 10 156 
 
 Bimetallism — international 14 159 
 
 Bonds — deposit of, to secure circulating notes 12 157 
 
 Issued to maintain reserve 2 152 
 
 Substitution of 12 150 
 
 U. S., exchange of outstanding issues authorized 11 156 
 
 Certificates — gold 6 153 
 
 Gold, when authority to issue is suspended 6 154 
 
 Silver, denominations 7 155 
 
 Coin — subsidiary issue of 8 155 
 
 Coinage of silver dollars 5 153 
 
 Deposit of bonds to secure circulating notes 12 157 
 
 Division of issue 4 153 
 
 Division of redemption 4 153 
 
 Dollar — gold, standard of value i 151 
 
 Dollars — silver, coinage of, to retire treasury notes 5 153 
 
 Gold certificates 6 153 
 
 When authority to issue is suspended 6 154 
 
 International bimetallism 14 159 
 
 Issues — division of 4 153 
 
 Legal tender quality not affected 3 152 
 
 Notes — circulating, additional security may be required for 12 150 
 
 Circulating, denomination of 12 150 
 
 Circulating, secured by deposit of bonds 12 157 
 
 Circulating, shall not exceed paid-up capital 12 150 
 
 Circulating, tax on 13 159 
 
 Reissued 2 152 
 
 Treasury 2 151 
 
 United States, amount outstanding fixed by law 6 154 
 
 Redemption of treasury notes 2 151 
 
 Of United States notes 2 151 
 
 Reserve — maintenance of 2 151 
 
 In trust funds 4 153 
 
 Redemption — division of 4 153 
 
 Silver certificates — denomination 7 155 
 
 Dollars, coinage of 5 153 
 
 Standard of value — gold dollar i 151 
 
 Subsidiary coin — issue of 8 155 
 
 Tax on circulating notes 13 159 
 
INDEX 201 
 
 Additional Circulation Act 
 
 Section Page 
 
 Additional circulation act, appropriations to carry out i6 172 
 
 Date of expiration of act 20 173 
 
 Date of act 20 173 
 
 Additional circulation — application for, by banks i 162 
 
 Application for, by a national currency association 3 165 
 
 Deposit of securities for i 162 
 
 Deposit of securities for," by national currency association 3 165 
 
 Distribution geographically 7 168 
 
 Distribution of notes 10 171 
 
 Information regarding securities pledged for 8 168 
 
 Legal title of bonds as security for, transferred 4 166 
 
 Limit of indebtedness of municipality in proportion to balance 
 
 of taxable property 3 166 
 
 Limit of issue S 167 
 
 Limited to ninety per centum of cash value of municipals 1-3 163-165 
 
 Limited to seventy-five per centum of cash value of commercial 
 
 securities i 163 
 
 Not to exceed thirty per centum of capital when based on 
 
 commercial paper i 163 
 
 Redemption fund must cover 6 167 
 
 Reports, monthly 9 169 
 
 Securities available for i 162 
 
 Status of 5 167 
 
 Tax on 9 169 
 
 Value of securities pledged for 8 168 
 
 Withdrawal of 10 170 
 
 Circulation — printing of notes 11 171 
 
 Redemption of notes 12 171 
 
 Tax on 9 168 
 
 Withdrawal of notes 10 170 
 
 163 
 161 
 162 
 
 Commercial paper — definition of.. 
 National Currency Association.... 
 A bank may belong to but one. 
 
 Application by, for additional circulation 3 165 
 
 By-Laws of 
 
 Capital of 
 
 Certificates of 
 
 162 
 161 
 161 
 
 Deposit of securities for additional circulation 3 165 
 
 162 
 164 
 
 Dissolution of members of 
 
 Failure of member to deposit additional securities. 
 
 Failure of member to make good redemption fund 2 164 
 
202 N. W. HALSEY & CO. 
 
 ADDITIONAL CIRCULATION ACT— Con/mueJ 
 
 National Currency Association — Continued Section Page 
 
 Substitution of securities i 164 
 
 Liability of member of i 163 
 
 Management of i 162 
 
 May be sued i 161 
 
 May require additional securities i 164 
 
 Members may be sued in circuit court i 164 
 
 Membership i 161 
 
 Name of i 161 
 
 Number of banks required to form . ; i 161 
 
 Officers of i 162 
 
 Purposes of i 162 
 
 Place of business i 161 
 
 Powers of board i 162 
 
 Receipt given for bonds deposited 4 166 
 
 Sale of securities deposited by members 2 165 
 
 Under authority of Secretary of Treasury 13 172 
 
 National Monetary Commission, creation of 17 172 
 
 Expiration of 19 173 
 
 To report 18 173 
 
 Public deposits 14 172 
 
 Interest on 15 172 
 
 New York Savings Bank Law 
 
 Bonds — limitation of holdings of railroad bonds 6i 181 
 
 Bonds legal for investment. 
 
 Of United States 
 
 Of District of Columbia 
 
 Of State of New York 
 
 Of counties of New York 
 
 Of municipalities of New York 
 
 Of school districts of New York 
 
 On real estate in New York 
 
 Of various states, provided 
 
 Of municipalities outside of New York, provided 
 
 Of railroad corporations of New York, provided 
 
 Of railroad corporations of the United States, provided 
 
 Of railroad corporations owning less than 500 miles of road, pro- 
 vided 
 
 Of railroad corporations, guaranteed, provided 
 
 Of railroad corporations, underlying, provided ; . . 
 
 Street railroad, not railroad bonds 
 
 Mortgages on real estate 
 
 Of Tv. 
 
 I 
 
 175 
 
 I 
 
 17s 
 
 2 
 
 175 
 
 4 
 
 176 
 
 4 
 
 176 
 
 4 
 
 176 
 
 6 
 
 177 
 
 3 
 
 175 
 
 5 
 
 176 
 
 6a 
 
 177 
 
 6e 
 
 178 
 
 6f 
 
 179 
 
 6g 
 
 180 
 
 6i 
 
 180 
 
 6i 
 
 182 
 
 6 
 
 177 
 
14 DAY USE 
 
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 This book is due on the last date stamped below, or 
 
 on the date to which renewed. 
 
 Renewed books are subject to immediate recaU. 
 
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