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of bonds to closed banks.

deemed at Treas. ury.

other to the Comptroller of the Currency, stating the amount received by him, and the purpose for which it has been re. ceived; and the money shall be paid into the Treasury of the United States, and placed to the credit of such associa

tion upon redemption account. Consolidating SEC. 5223. Au a:sociation which is in good faith winding deposit lawful up its business for the purpose of consolidating with another

See act of July association shall not be required to deposit lawful money 14, 1870, ante, p. for its outstanding circulation; but its assets and liabilities

shall be reported by the association with which it is in

process of consolidation, Reassignment SEC. 5224. Whenever a sufficient deposit of lawful money

to redeem the outstauding circulation of an association pro. 3 June, 1864, s.

posing to close its business has been made, the bonds de. 42, ante, p. 173.

posited by the association to secure payment of its notes

shall be reassigned to it, in the manuer prescribed by secNotes to be re- tion hundred and sixty-two. And thereafter the

association and its sbareholders shall stand dischargeil from all liabilities upon the circulating notes, and those notes

shall be redeemed at the Treasury of the United States. Proceedings And if any such bauk shall fail to make the deposit and when association to deposit take up its bonds for thirty days after the expiration of the

time specified, the Comptroller of the Currency shall have 18, 1875, correct. iny Rev. Stat,

power to sell the bonds pledged for the circulation of said post, p. 214.

bank, at public auction in New York City, and, after pro. viding 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 representative.

SEC. 5225. Whenever the Treasurer bas redeemed any of

the notes of an association which has commenced to close 23, 1874, post, p. its affairs under the six (five) preceding sections, he shall

3 June, 1864, s. cause the notes to be mutilated and charged to the redemp43, ante, p. 173.

tion account of the association; and all notes so redeemed by the Treasurer shall, every three months, be certified to and burned in the manner prescribed in section fifty-one hundred and eighty-four.

SEC. 5226. Whenever any national banking association testing notes. Ibid., 8.46, ante, fails to redeem in the lawful money of the United States

any of its circulating notes, upon demand of payment duly

made during the usual hours of business, at the office of such See act of June association, or at its designated place of redemption, the 20, 1874, post, p.

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 tbe president or cashier of the association at the place at which

lawful money.

See act of Feb.

Destruction of redeemed notes.

See act of June


Mode of


p. 175.


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they are redeemable offers to waive demand and notice of the protest, and, in pursuance of such offer, makes, signs, and delivers to the party making such demand an adinission in writing, stating the time of the demand, the amount demanded, and the fact of the non-payment thereof. The notary public, on making such protest, or upon receiving such admission, shall forth with forward such admission or notice of protest to the Comptroller of the Currency, retaining a copy thereof. If, however, satisfactory proof is produced to the notary public that the payment of the notes demanded is restrained by order of any court of competent jurisdiction, he shall not protest the same. When the holder One protest fee

only, on of any notes causes more than one note or package to be day. protested on the same day, he shall not receive pay for more tban one protest.

SEC. 5227. On receiving notice that any national banking Examination association has failed to redeem any of its circulating notes, after notice of as specified in the preceding section, the Comptroller of the protest.

3 June, 1864, s. Currency, with the concurrence of the Secretary of the 47, ante, p. 123. Treasury, may appoint a special agent, of whose appointment immediate notice shall be given to such association, who shall immediately proceed to ascertain whether it has refused to pay its circulating notes in the lawful money of the United States, when demanded, and shall report to the Comptroller the fact so ascertained. If, from such protest, Forfeiture and the report so made, the Comptroller is satisfied that such association has refused to pay its circulating notes and is in default, be 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.

SEC. 5228. After a default on the part of an association to pay any of its circulating notes has been ascertained by

of protest. the Comptroller, and notice thereof has been given by him to the association, it shall not be lawful for the association 18, 1875, correctsuffering the same to pay out any of its notes, discount any post, p. 214.

3 June, 1864, s. notes or bills, or otherwise prosecute the business of bank- 46, ante, p. 175. ing, except to receive and safely keep money belonging to it, and to deliver special deposits. SEC. 5229. Immediately upon declaring the bonds of an

holders. association forfeited for non-payment of its notes, the Comp- Ibid., 8. 47. troller shall give notice, in such manner as the Secretary of the Treasury shall, by general rules or otherwise, direct, to the holders of the circulating notes of such association, to Redemption of present them for payment at the Treasury of the United States; and the same shall be paid as presented in lawful



Association not to do busi. ness after notice

See act of Feb.

Notice to note. at anction.

notes at Treas. ury, and cancel. lation of bonds.

upon assets ofag. sociations.

Sale of bonds

money of the United States; whereupon the Comptroller may, in his discretion, cancel an amount of bonds pledged by such association equal at current market rates, not ex.

ceeding par, to the notes paid. Sale of bonds SEC. 5230. Whenever the Comptroller has become satisIbid. secs. 17.48. fied, by the protest or the waiver and admission specified

in section fifty-two hundred and twenty-six, or by the report provided for in section fifty-two hundred and twenty-seven, that any association bas refused to pay its circulating notes, be may, instead of canceling its bonds, cause so much of them as may be necessary to redeem its outstanding notes to be sold at public auction in the city of New York, after

giving thirty days' notice of such sale to the association. The United For any deficiency in the oceeds of all the bonds of an paramount lien association, when tbus sold, to re-imburse to the United

States the amount expended in paying the circulating notes of the association, the United States shall have a paramount lied 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.

SEC. 5231. The Comptroller may, if he deems it for the at private sale.

interest of the United States, sell at private sale any of the Ibid., s. 19.

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 Transfer of 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 hundred and sixty-two, fifty one huudred and sixty-three,

and fifty-one hundred and sixty-four. Disposition to SEC. 5232. The Secretary of the Treasury may, from time redeemed by to time, make such regulations respecting the disposition

to be made of circulating notes after presentation at the Ibid., s. 47.

Treasury of the United States for payment, and respecting the perpetuation of the evidence of the payment thereof, as

may seem to bim proper. Cancellation of SEC. 5233. All notes of national banking associations

presented at the Treasury of the United States for payment

sball, on being paid, be canceled. Appointment SEC. 5234. On becoming satisfied, as specified in sections

fifty-two hundred and twenty-six and fifty two hundred and Kennedy, 28. twenty-seven, that any association has refused to pay its 498 ; Bank of circulating notes as therein mentioned, and is in default,

bonds sold.

pe made of notes




and duties of receivers.

p. 177.

See s. 3, act of

p. 216.

3 June, 1864, 8.

the Comptroller of the Currency may forth with appoint a Bethel vs. Pah. receiver, and require of him such bond and security as he wall.. 383; Bank deems proper. Such receiver, under the direction of the wall., 19; In re Comptroller, shall take possession of the books, records, &c., i Ben., 534. and assets of every description of such association, collect Ibid., s. 50, ante, all debts, dues, and claims belonging to it, and, upon the order of a court of record of competent jurisdiction, may June 30,1876, pust, sell or compound all bad or doubtful debts, and, on a like order, may sell all the real and personal property of such association, on such terms as the court shall direct; and may, if necessary to pay the debts of such association, enforce the individual liability of the stockholders. Such receiver shall pay over all money so made to the Treasurer of the United States, subject to the order of the Comptroller, and also make report to the Comptroller of all his acts and proceedings. SEC. 5236. From time to time, after full provision has coDividender bi

Comptroller to been first made for refunding to the United States any

creditors. deficiency in redeeming the notes of such association, the Comptroller shall make a ratable dividend of the money so 50, ante, p. 177. 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 bim, shall make further divideuds 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. SEC. 5237. Whenever an association against which pro- Injunction upon

receiver-hip. ceedings have been instituted, on account of any alleged refusal to redeem its circulating notes as aforesaid, denies having failed to do so, it may, at any time within ten days after it has been notified of the appointment of an agent, as provided in section fifty-two bundred and twenty-seven, apply to the nearest circuit, or district, or territorial court of the United States to enjoin further proceedings in the premises; and such court, after citing the Comptroller of the Currency to show cause wby 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.


Fees and ex. SEC. 5238. All fees for protesting the notes issued by penses of protest and receivership. any national banking association shall be paid by the perIbid., s. 51, ante, son procuring the protest to be made, and such association

shall be liable therefor; but no part of the bonds deposited by such association shall be applied to the payment of such fees. All expenses of any preliminary or other examinations into the condition of any association shall be paid by such association. All expenses of any receivership shall be paid out of the assets of such association before distribution of the

proceeds thereof. Transfers, as- SEC. 5242. All transfers of the notes, bonds, bills of exsignments, &c., atter an act of in: change, or other evidences of debt owing to any national solvency, void.

banking association, or of deposits to its credit; all assignIbid., s. 52.

ments of mortgages, sureties on real estate, or of judgments or decrees in its favor; all deposits of money, bullion, or other valuable thing for its use, or for the use of any of its shareholders of creditors; and all paymeuts 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.

SEC. 5:43. All banks not organized and transacting Ibid., s. 52. business under the national-currency laws, or under this

Title, and all persons or corporations doing the business of bankers brokers or saving institutions except savings-banks authorized by Congress to use the word "national" as a

part of their corporate name, are prohibited from using the 3 Mar., 1873, word “national” as a portion of the name or title of such ante, p. 187.

bank, corporation, firm, or partnership; and any violation of this prohibition committed after the third day of September, eighteen hundred and seventy-three, shall subject the party chargeable therewith to a penalty of fifty dollars for each day during which it is committed or repeated.

Use of the title "national."



Penalty for an. SEC. 5187. No officer acting under the provisions of this lawfully countersigning or deliv. Title shall countersign or deliver to any association, or to ering circulating

any other company or person, any circulating notes contem3 June, 1864, s. plated by this Title, except in accordance with the true intent 27, ante, p. 166.

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 coun.

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