« PrejšnjaNaprej »
3 June 1864.
Ibid. 245. Associations may
47. All associations under this act, when designated for that purpose by the secretary of the treasury, shall be depositaries of public money, except receipts from cusbe designated as toms, under such regulations as may be prescribed by the secretary; (a) and they may ries and financial also be employed as financial agents of the government; and they shall perform all such reasonable duties, as depositaries of public moneys and financial agents of the government, as may be required of them. And the secretary of the treasury shall require of the associations thus designated 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 every association which shall be selected and 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 in to the government for internal revenue, or for loans or stocks.
Ibid. 46. Protest on failure to redeem.
48. If any such association shall at any time fail to redeem, in the lawful money of the United States, any of its circulating notes, when payment thereof shall be lawfully demanded, during the usual hours of business, at the office or such association, or at its place of redemption aforesaid, the holder may cause the same to be protested, in one package, by a notary public, unless the president or cashier of the association whose notes are presented for payment, or the president or cashier of the association at the place at which they are redeemable, shall offer to waive demand and notice of the protest, and shall in pursuance of such offer, make, sign and deliver to the party making such demand, an admission in writing, stating the time of the demand, the amount demanded, and the fact of the non-payment thereof; and such notary public, on making such protest, or upon receiving such admission, shall forthwith forward such admission or notice of protest to the comptroller of the currency, retaining a copy thereof. And after such default, on examination of the facts by the comptroller, and notice 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: Provided, That if satisfactory proof be produced to such notary public, that the payment of any such notes is restrained by order of any court of competent jurisdiction, such notary public shall not protest the same; and when the holder of such notes shall cause more than one note or package to be protested on the same day, he shall not receive pay for more than one protest.
49. On receiving notice that any such association has failed to redeem any of its circulating notes, as specified in the next 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 ascertain whether such association has refused to pay its circulating notes in the lawful money of the United States, when demanded as aforesaid, and report to the comptroller the fact so ascertained; and if, from such protest or the report so made, the comptroller shall be satisfied that such association has refused to pay its circulating notes as aforesaid, and is in default, he shall, within Securities to be thirty days after he shall have received notice of such failure, declare the United
States bonds and securities pledged by such association forfeited to the United States,
(a) See 11 Opin. 23.
Business to be discontinued.
the said bank or banking institution into a national association under this act. And a majority of the directors, after executing said 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 said conversion, and the directors aforesaid may be the directors of the association until others are elected or appointed in accordance with the provisions of this act; 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 act. When the comptroller shall give to such association a certificate, under his hand and official seal, that the provisions of this act have been complied with, and that it is authorized to commence the business of banking under it, the association shall have the same powers and privileges, and shall be subject to the same duties, responsibilities and rules in all respects as are prescribed in this act for other associations organized under it, and shall be held and regarded as an association under this act: Provided, however, That no such association shall have a less capital than the amount prescribed for banking associations under this act.
Ibid. 8 47. Comptroller to ascertain fact of
sented for pay
and the same shall thereupon be forfeited accordingly. And thereupon the comptroller shall immediately give notice, in such manner as the secretary of the treasury shall, by general rules or otherwise, direct, to the holders of the circulating notes of such 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; whereupon said 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. And Notes to be preit shall be lawful for the secretary of the treasury, from time to time, to make such ment at the trearegulations respecting the disposition to be made of such circulating notes, after sury. presentation thereof for payment as aforesaid, and respecting the perpetuation of the evidence of the payment thereof, as may seem to him proper; but all such notes, on being paid, shall be cancelled. And for any deficiency in the proceeds of the bonds To be cancelled. pledged by such association, when disposed of as hereinafter specified, to reimburse Preference of the to the United States the amount so expended in paying the circulating notes of such deficiency. association, the United States shall have a first and paramount lien upon all the assets of such association; 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.
United States for
3 June 1864.
tion, sell secur
50. Whenever the comptroller shall become satisfied, as in the last preceding section specified, that any association has refused to pay its circulating notes as therein men- Comptroller tioned, he may, instead of cancelling the United States bonds pledged by such asso- may, at his opciation, as provided in the next preceding section, cause so much of them as may be ities at auction. necessary to redeem the outstanding circulating notes of such association, to be sold at public auction, in the city of New York, after giving thirty days' notice of such sale to such association.
51. The comptroller of the currency may, if he shall be of opinion that the interests of the United States will be best promoted thereby, sell at private sale any of the bonds Or at private pledged by such association, and receive therefor either money or the circulating notes sale. of such failing association: Provided, That no such bonds shall be sold by private sale for less than par, nor less than the market value thereof at the time of sale: And provided further, That no sales of any such bonds, either public or private, shall be complete, until the transfer thereof shall have been made with the formalities prescribed in this act.
52. On becoming satisfied, as specified in this act, that any association has refused to pay its circulating notes as therein mentioned, and is in default, the comptroller of Appointment of the currency may forthwith appoint a receiver, and require of him such bond and receiver. security as he shall deem proper, who, under the direction of the comptroller, shall His powers and take possession of the books, records and assets of every description of such association, collect all debts, dues and claims belonging to such association, and upon the order of a court of record of competent jurisdiction, (a) may sell or compound all bad or doubtful debts, and on a like order, 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 Proceedings on association, enforce the individual liability of the stockholders provided for by the appointment of twelfth section of this act; and such receiver shall pay over all money so made to the treasurer of the United States, subject to the order of the comptroller of the currency, and also make report to the comptroller of the currency of all his acts and proceedings. The comptroller shall thereupon cause notice to be given, by advertisement in such newspapers as he may direct, for three consecutive months, calling on all persons who may have claims against such association, to present the same, and to make legal proof thereof. And from time to time the comptroller, after full provision shall have been first made for refunding to the United States any such deficiency in redeeming the notes of such association as is mentioned in this act, shall make a rateable 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 from time to time, as the proceeds of the assets of such association shall be paid over to him, he shall make further dividends as aforesaid, on all claims previously proved or adjudicated; and the remainder of such proceeds, if any, shall be paid over to shareholders of such association or their legal representatives, in proportion to the stock by them respectively held: Provided, however, That if such association against which proceedings have been so instituted, on account of any alleged refusal to redeem its circulating notes as aforesaid, shall deny having failed to do so, such association may, at any time within ten days after such association shall have been notified of the appointment of an agent, as provided in this act, apply to the nearest circuit or district (a) See Ex parte Platt, 1 Ben. 534.
Association may have an issue as pension.
to the fact of sus
3 June 1864.
53. All fees for protesting the notes issued by any such banking association shall be Payment of fees paid by the person procuring the protest to be made, and such banking association shall be liable therefor; but no part of the bonds pledged by such banking association, as aforesaid, shall be applied to the payment of such fees. And all expenses of any preliminary or other examinations into the condition of any association, shall be paid by such association; and all expenses of any receivership shall be paid out of the assets of such association, before distribution of the proceeds thereof.
54. All transfers (a) of the notes, bonds, bills of exchange, and other evidences of debt owing to any association, or of deposits to its credit; all assignments of mortgages, sureties on real estate, or of judgments or decrees in its favor; all deposits of money, bullion or other valuable thing for its use, or for the use of any of its shareholders or creditors; and all payments of money to either, made after the commission of an act of insolvency, or in contemplation thereof, with a view to prevent the application of its assets in the manner prescribed by this act, 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.
Ibid. § 52. Transfers in con
templation of insolvency to be void.
55. If the directors of any association shall knowingly violate, or knowingly permit Penalty for viola- any of the officers, agents or servants of the association to violate any of the provisions tion of the act. of this act, all the rights, privileges and franchises of the association derived from this How determined. act shall be thereby forfeited. Such violation shall, however, be determined and ad
judged by a proper circuit, district or territorial court of the United States, in a suit brought for that purpose, by the comptroller of the currency, in his own name, before the association shall be declared dissolved. And in cases of such violation, every individually lia- director who participated in or assented to the same shall be held liable, in his personal
Directors to be
and individual capacity, for all damages which the association, its shareholders or any other person shall have sustained in consequence of such violation.
56. The comptroller of the currency, with the approbation of the secretary of the treasury, as often as shall be deemed necessary or proper, shall appoint a suitable person or persons to make an examination of the affairs of every banking association, which person shall not be a director or other officer in any association whose affairs he shall be appointed to examine, and 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. And the association shall not be subject to any other visitorial powers than such as are authorized by this act, except such as are vested in the several courts of law and chancery. And every person appointed to make such examination shall receive for his services at the rate of five dollars for each day by him employed in such examination, and two dollars for every twenty-five miles he shall necessarily travel in the performance of his duty, which shall be paid by the association by him examined.
Ibid. 2 54.
Examination into affairs of banking associations.
or territorial court of the United States, to enjoin further proceedings in the premises; and such court, after citing the comptroller of the currency to show cause why further proceedings should not be enjoined, and after the decision of the court or finding of a jury, that such association has not refused to redeem its circulating notes, when legally presented, in the lawful money of the United States, shall make an order enjoining the comptroller, and any receiver acting under his direction, from all further proceedings on account of such alleged refusal.
Ibid. 55. Punishment of embezzlement.
6 April 1869 2 1. 16 Stat. 7.
57. Every president, director, cashier, teller, clerk or agent of any association, who shall embezzle, abstract or wilfully misapply (b) any of the moneys, funds or credits of the association, (c) or shall, without authority from the directors, issue or put in circulation any of the notes of the association, or shall, without such authority, issue or put forth any certificate of deposit, draw any order or bill of exchange, make any acceptance, assign any note, bond, draft, bill of exchange, mortgage, judgment or decree, or shall make any false entry in any book, report or statement of the associa tion, with intent, in either case, to injure or defraud the association or any other company, body politic or 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, shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be punished by imprisonment not less than five nor more than ten years.
58. Every person who shall aid or abet any officer or agent of any association in doing any of the acts enumerated in section fifty-five of an act entitled "An act to
(a) This applies to legal as well as voluntary transfers. Venango Bank v. Taylor, 56 Penn. St. 14.
(b) A bank officer who, without authority, converts the funds of the bank to his own use, is guilty of embezzling and abstracting them. Ex parte Van Campen, 1 Am. L. T. Rep. 67.
(c) The fraudulent conversion of the property of an individual deposited in the bank. is not punishable under the laws of the United States. Commonwealth v. Tarney, 97 Mass. 50. State v. Tuller, 34 Conn. 280.
6 April 1869.
provide a national currency secured by a pledge of United States bonds, and to provide for the circulation and redemption thereof," approved June 3d 1864, (a) with intent to Punishment of defraud or deceive, shall be liable to the same punishment therein provided for the accessories. principal.
13 Stat. 116.
59. All suits and proceedings arising out of the provisions of this act, in which the 3 June 1864 256. United States or 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 Duties of district of the treasury.
60. Suits, actions and proceedings, against any association under this act, may be had in any circuit, district or territorial court of the United States held within the dis- Jurisdiction of trict in which such association may be established; or in any state, county or municipal the federal court in the county or city in which said association is located, (b) having jurisdiction in similar cases: Provided, however, That all proceedings to enjoin the comptroller under this act shall be had in a circuit, district or territorial court of the United States, held in the district in which the association is located.
61. Every person who shall mutilate, cut, deface, disfigure or perforate with holes, Ibid. 2 58. or shall unite or cement together, or do any other thing to any bank-bill, draft, note or Penalty for mutiother evidence of debt, issued by any such association, or shall cause or procure the lating notes. 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, upon conviction, forfeit fifty dollars to the association who shall be injured thereby, to be recovered by action in any court having jurisdiction.
62. If any person shall falsely make, forge or counterfeit, or cause or procure to be made, forged or counterfeited, or willingly aid or assist in falsely making, forging or Punishment of counterfeiting, any note in imitation of, or purporting to be in imitation of, the cir- forgery. culating notes issued under the provisions of this act; or shall pass, utter or publish, or attempt to pass, utter or publish, any false, forged or counterfeited note, purporting to be issued by any association doing a banking business under the provisions of this act, knowing the same to be falsely made, forged or counterfeited; or shall falsely alter or cause or procure to be falsely altered, or willingly aid or assist in falsely altering, any such circulating notes, issued as aforesaid; or shall pass, utter or publish, or attempt to pass, utter or publish, as true, any falsely altered or spurious circulating note issued, or purporting to have been issued, as aforesaid, knowing the same to be falsely altered or spurious; every such person shall be deemed and adjudged guilty of felony, and being thereof convicted by due course of law shall be sentenced to be imprisoned and kept at hard labor for a period of not less than five years, nor more than fifteen years, and fined in a sum not exceeding one thousand dollars.(c)
63. If any person shall make or engrave, or cause or procure to be made or engraved, Ibid. 2 60. or shall have in his custody or possession any plate, die or block after the similitude of Engraving any plate, die or block from which any circulating notes issued as aforesaid shall have plates, &c. been prepared or printed, with intent to use such plate, die or block, or cause or suffer the same to be used, in forging or counterfeiting any of the notes issued as aforesaid; or shall have in his custody or possession any blank note or notes engraved and printed after the similitude of any notes issued as aforesaid, with intent to use such blanks, or cause or suffer the same to be used, in forging or counterfeiting any of the notes issued as aforesaid; or shall have in his custody or possession any paper adapted to the making Possession of of such notes, and similar to the paper upon which any such notes shall have been paper, &c. issued, with intent to use such paper, or cause or suffer the same to be used, in forging or counterfeiting any of the notes issued as aforesaid; every such person, being thereof convicted by due course of law, shall be sentenced to be imprisoned and kept to hard labor for a term not less than five or more than fifteen years, and fined in a sum not exceeding one thousand dollars.
64. It shall be the duty of the comptroller of the currency to report annually to congress at the commencement of its session :
I. A summary of the state and condition of every association from whom reports annual reports. have been received the preceding year, at the several dates to which such reports refer, with an abstract of the whole amount of banking capital returned by them, of the whole amount of their debts and liabilities, the amount of circulating notes outstanding, and the total amount of means and resources, specifying the amount of lawful money held by them at the times of their several returns, and such other information in relation to said associations as, in his judgment, may be useful.
(a) Supra 57.
(b) This clause is permissive, not restrictive of the right to sue a national bank in any court of law or equity given by the 8th section (supra 8). They are liable to be sued in the courts of another state than that in which they are located. Cooke v. VOL. II.-6
State Bank of Boston, 3 Abb. Pr. (N. S.) 339.
(c) The offence of passing a counterfeit note of a national bank, is punishable in a state court; the jurisdiction of the federal and state courts, in such cases, is concurrent. Jett v. Virginia, 16 Am. L. R. 260.
3 June 1864.
Trustees, &c., not to be personally
liable as stockholders.
IV. The names and compensation of the clerks employed by him, and the whole amount of the expenses of the banking department during the year. And such report shall be made by or before the first day of December in each year, and the usual number of copies for the use of the senate and house, and one thousand copies for the use of the department, shall be printed by the public printer and in readiness for distribution at the first meeting of congress.
65. The act entitled "An act to provide a national currency, secured by a pledge of Repeal of act of United States stocks, and to provide for the circulation and redemption thereof," approved February 25th 1863, is hereby repealed: Provided, That such repeal shall not affect any appointments made, acts done or proceedings had, or the organization, acts of proceedings of any association organized or in the process of organization under the act aforesaid: And provided also, That all such associations so organized or in process of organization shall enjoy all the rights and privileges granted, and be subject to all the duties, liabilities and restrictions imposed by this act, and with the approval of the comptroller of the currency, in lieu of the name specified in their respective organization certificates, may take any other name preferred by them and duly certified to the comptroller, without prejudice to any right acquired under this act, or under the act hereby repealed; but no such change shall be made after six months from the passage of this act: Provided also, That the circulation issued or to be issued by such association shall be considered as a part of the circulation provided for in this act.
Ibid. 64. 3 March 1865 ? 1. 13 Stat. 484.
Existing state banks to have preference in organizing national banks.
2 March 1867. 14 Stat. 572. Excess of duty paid by banks to be refunded.
3 March 1869 2 1. 15 Stat. 326. When banks to make reports. What such roports to contain.
II. A statement of the associations whose business has been closed during the year, with the amount of their circulation redeemed and the amount outstanding.
III. Any amendment to the laws relative to banking, by which the system may be improved, and the security of the holders of its notes and other creditors may be increased.
66. Persons holding stock as executors, administrators, guardians and trustees, shall not be personally subject to any liabilities as stockholders; but the estates and funds in their hands shall be liable in like manner and to the same extent as the testator, intestate, ward or person interested in said trust-funds would be if they were respectively living and competent to act and hold the stock in their own names.
67. Congress may at any time amend, alter or repeal this act.
68. Any existing bank organized under the laws of any state having a paid-up capital of not less than seventy-five thousand dollars, which shall apply before the first day of July next for authority to become a national bank under the act entitled "An act to provide a national currency secured by a pledge of United States bonds, and to provide for the circulation and redemption thereof," approved June 3d 1864, and shall comply with all the requirements of said act, shall, if such bank be found by the comptroller of the currency to be in good standing and credit, receive such authority in preference to new associations applying for the same: Provided, that it shall be lawful for any bank or banking association organized under state laws, and having branches, the capital being joint and assigned to and used by the mother bank and branches in definite proportions, to become a national bank 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. 69. In all cases where a national bank has paid or may pay in excess of what may be, or has been found due from said bank, on account of the duty required to be paid to the treasurer of the United States, the bank so having paid or paying such excess of duty may state an account therefor, which, on being certified by the treasurer of the United States, and found correct by the first comptroller of the treasury, shall be refunded in the ordinary manner by warrant on the treasury.
70. In lieu of all reports required by section thirty-four of the national currency act, every association shall make to the comptroller of the currency not less than five reports during each and every year, according to the form which may be prescribed by him, verified by the oath or affirmation of the president or cashier of such association, and attested by the signature of at least three of the directors; which 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 to be by him specified, and shall transmit such report to the comptroller within five days after the receipt of a request or requisition therefor from him; and the report of each association above required, 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 be no newspaper in the place, then in the one published nearest thereto in the same county,