banks need not money. 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. Consolidating SEC. 5223. An association which is in good faith winding deposit lawful up its business for the purpose of consolidating with another association shall not be required to deposit lawful money See act of July 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. 185. Reassignment of bonds to closed banks. 42, ante, p. 173. deemed at Treasury. SEC. 5224. Whenever a sufficient deposit of lawful money to redeem the outstanding circulation of an association pro3 June, 1864, 8. posing 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 manuer prescribed by secNotes to be re- tion fifty-one hundred and sixty-two. And thereafter the association and its shareholders shall stand discharged from all liabilities upon the circulating notes, and those notes shall be redeemed at the Treasury of the United States. Proceedings And if any such bank shall fail to make the deposit and fails to deposit take up its bonds for thirty days after the expiration of the time specified, the Comptroller of the Currency shall have ing Rev. Stat, 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 representative. when association lawful money. See act of Feb. 18, 1875, correct post, p. 214. redeemed notes. See act of June 211. Destruction of SEC. 5225. Whenever the Treasurer has 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, 8. 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. Mode of pro testing notes. p. 175. SEC. 5226. Whenever any national banking association Ibid., s. 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 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 20, 1874, post, p. 208. they are redeemable offers to waive demand and notice of the protest, and, in pursuance of such offer, makes, signs, and delivers to the party making such demand an admission in writing, stating the time of the demand, the amount demanded, and the fact of the non-payment thereof. The 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. 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 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 than one protest. only, on protest. same of 3 June, 1864, s. SEC. 5227. On receiving notice that any national banking Examination by special agent, association has failed to redeem any of its circulating notes, after notice as specified in the preceding section, the Comptroller of the Currency, with the concurrence of the Secretary of the 47, ante, p. 175. 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 of and the report so made, the Comptroller is satisfied that such association has refused to pay its circulating notes and is in default, he shall, within thirty days after he has received notice of such failure, declare the bonds deposited by such association forfeited to the United States, and they shall thereupon be so forfeited. bonds. not to do busi. ness after notice of protest. ing Rev. Stat., SEC. 5228. After a default on the part of an association Association to pay any of its circulating notes has been ascertained by the Comptroller, and notice thereof has been given by him See act of Feb. 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. 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. 3 June, 1864, 8. holders. SEC. 5229. Immediately upon declaring the bonds of an Notice to note. 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 ury, and cancelStates; and the same shall be paid as presented in lawful notes at Treas lation of bonds. Sale of bonds at auction. money of the United States; whereupon the Comptroller may, in his discretion, cancel an amount of bonds pledged by such association equal at current market rates, not exceeding par, to the notes paid. SEC. 5230. Whenever the Comptroller has become satisIvid. secs. 47.48. 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 has 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 proceeds of all the bonds of an paramount lien association, when thus 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 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. States to have a upon assets of associations. Sale of bonds at private sale. Ibid., s. 49. SEC. 5231. The Comptroller may, if he deems it for the interest of the United States, sell at private sale any of the bonds of an association shown to have made default in paying its notes, and receive therefor either money or the circulating notes of the association. But no such bonds shall be sold by private sale for less than par, nor for less 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 fifty-one hundred and sixty-two, fifty-one hundred and sixty-three, and fifty-one hundred and sixty-four. bonds sold. Disposition to pe made of notes Treasurer. Ibid., s. 47. 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 Treasury of the United States for payment, and respecting the perpetuation of the evidence of the payment thereof, as may seem to him proper. Cancellation of notes. Ibid. and duties of receivers. SEC. 5233. All notes of national banking associations presented at the Treasury of the United States for payment shall, 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 vs. twenty-seven, that any association has refused to pay its Gibson, 8 Wall., 498; Bank of circulating notes as therein mentioned, and is in default, vs. Kennedy. 16 Platt, Receiver, Ibid., s. 50, ante, p. 177. p. 216. the Comptroller of the Currency may forthwith appoint a Bethel vs. Pahquicque Bank, 14 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 all debts, dues, and claims belonging to it, aud, 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. Dividends by Comptroller to creditors. 3 June, 1864, s. SEC. 5236. From time to time, after full provision has been first made for refunding to the United States any 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 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. receivership. Ibid. SEC. 5237. Whenever an association against which pro- Injunction upon 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 hundred and twenty-seven, apply to the nearest circuit, or district, or territorial court of the United States to enjoin further proceedings in the premises; and such court, after citing the Comptroller of the Currency to show cause why further proceedings should not be enjoined, and after the decision of the court or finding of a jury that such association has not refused to redeem its 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 penses of protest p. 178. SEC. 5238. All fees for protesting the notes issued by 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, assignments, &c., Ibid., s. 52. SEC. 5242. All transfers of the notes, bonds, bills of exafter 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 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 of 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. Use cf the title "national." Ibid., s. 52. * * SEC. 5243. All banks not organized and transacting 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 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. ante, p. 187. Penalty for un. lawfully counter notes. CRIMES AND MISDEMEANORS. SEC. 5187. No officer acting under the provisions of this signing 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, 8. 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 |