rate is limited for banks of issue organized under State laws, the rate so limited shall be allowed for associations organized in any such State under this act. And when no rate

Action to be

commenced in

of

Amount money to be kept

post, pp. 197, 198.

R. S., 5191, 5192,

is fixed by the laws of the State or Territory, the bank may take, receive, reserve, or charge a rate not exceeding seven per centum, and such interest may be taken in advance, reckoning the days for which the note, bill, or other evidence of debt has to run. And the knowingly taking, receiving, Penalty for reserving, or charging a rate of interest greater than afore- interest. said shall be held and adjudged 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. And in case a greater rate of interest has been paid, the person or persons paying the same, or their legal representetives may recover back, in any action of debt, twice the amount of the interest thus paid from the association taking or receiving the same: Provided, That such action is commenced within two years from the time the usurious transaction occurred. two years. But 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 agreater rate of interest. SEC. 31. And be it further enacted, That every association on hand. in the cities hereinafter named shall, at all times, have on hand, in lawful money of the United States, an amount 20, 1874, s. 2, post, equal to at least twenty-five per centum of the aggregate P. 208. amount of its notes in circulation and its deposits; and every other association shall, at all times, have on hand, in lawful money of the United States, an amount equal to at least fifteen per centum of the aggregate amount of its notes in circulation, and of its deposits. And whenever the lawful money of any association in any of the cities hereinafter named shall be below the amount of twenty-five per centum of its circulation and deposits, and whenever the lawful money of any other association shall be below fifteen per centum of its circulation and deposits, such associations 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 outstanding notes of circulation and deposits and its lawful money of the United States shall be restored: Provided, That three fifths of said fifteen per ed for redempcentum may consist of balances due to an association avail-tion of circulation in certain able for the redemption of its circulating notes from associ- cities to be inations approved by the comptroller of the currency, organ

See act of June,

Liabili ies not

to be increased

until reserve is made good

Money deposit

cluded.

certificates to be

money for this purpose.

ized under this act, in the cities of Saint Louis, Louisville Chicago, Detroit, Milwaukie, New Orleans, Cincinnati, Cleveland, Pittsburg, Baltimore, Philadelphia, Boston, New York, Albany, Leavenworth, San Francisco, and Washington Clearing-house City: Provided, also, That clearing-house certificates repredeemed lawful senting specie or lawful money specially deposited for the purpose of any clearing-house association, shall be deemed to be lawful money in the possession of any association belonging to such clearing house holding and owning such certificate, and shall be considered to be a part of the lawful money which such association is required to have under the foregoing proCharleston and visions of this section: Provided, That the cities of Charleston and Richmond may be added to the list of cities in the national associations of which other associations may keep three fifths of their lawful money, whenever, in the opinion of the comptroller of the currency, the condition of the Southern States will warrant it. And it shall be competent If association for the comptroller of the currency to notify any association, to make good its whose lawful money reserve as aforesaid shall be below the

Richmond.

fails, after notice,

reserve.

Circulation to be redeemed in

R. S., 5195, post, p. 199.

amount to be kept on hand as aforesaid, to make good such reserve; and if such association shall fail for thirty days thereafter so to make good its reserve of lawful money of the United States, the comptroller may, with the concurrence of the Secretary of the Treasury, appoint a receiver to wind up the business of such association, as provided in this act. SEC. 32. And be it further enacted, That each association New York at par. Organized in any of the cities named in the foregoing section shall select, subject to the approval of the comptroller of the currency, an association in the city of New York, at which it will redeem its circulating notes at par. And each of such associations may keep one half of its lawful money reserve in cash deposits in the city of New York. And each association not organized within the cities named in the preced. ing section shall select, subject to the approval of the See s. 3, act of comptroller of the currency, an association in either of the cities named in the preceding section at which it will redeem its circulating notes at par, and the comptroller shall give public notice of the names of the associations so selected at which redemptions are to be made by the respective associations, and of any change that may be made of the association Proceedings in at which the notes of any association are redeemed. If any

Certain associa

tions to select place for redemption of circulation.

June 20,

post, p. 209.

1874,

case of failure.

association shall fail either to make the selection or to redeem its notes as aforesaid, the comptroller of the currency may, upon receiving satisfactory evidence thereof, appoint a receiver, in the manner provided for in this act, to wind up its affairs: Provided, That nothing in this section shall

associa

relieve any association from its liability to redeem its circulating notes at its own counter, at par, in lawful money, on demand: And provided, further, That every associationEach tion to take notes formed or existing under the provisions of this act shall of other associa take and receive at par, for any debt or liability to said association, any and all notes or bills issued by any association existing under and by virtue of this act.

tions.

SEC. 33. And be it further enacted, That the directors of Dividends. any association may, semi-annually, each year, declare a dividend of so much of the nett 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 nett profits of the preceding half year to its surplus fund Surplus funds. until the same shall amount to twenty per centum of its capital stock.

report to comp

port.

ing to report.

Comptroller to publish abstracts.

SEC. 34. And be it further enacted, That every association Associations to shall make to the comptroller of the currency a report, ac- troller quarterly. cording to the form which may be prescribed by him, verified by the oath or affirmation of the president or cashier of such association; which report shall exhibit in detail, and Contents of reunder appropriate heads, the resources and liabilities of the association before the commencement of business on the morning of the first Monday of the months of January, April, July, and October of each year, and shall transmit the same to the comptroller within five days thereafter. And any bank failing to make and transmit such report Penalty for failshall be subject to a penalty of one hundred dollars for each day after five days that such report is delayed beyond that time. And the comptroller shall publish abstracts of said reports in a newspaper to be designated by him for that purpose in the city of Washington, and the separate report of each association shall be published in a newspaper in the place where such association is established, or if there be no newspaper at such place, then in a newspaper published at the nearest place thereto, at the expense of the association making such report. In addition to the quarterly reports Monthly state required by this section, every association shall, on the first Tuesday of each month, make to the comptroller of the currency a statement, under the oath of the president or cashier, showing the condition of the association making such statement, on the morning of the day next preceding the date of such statement, in respect to the following items and particulars, to wit: average amount of loans and discounts, specie, and other lawful money belonging to the association, deposits, and circulation. And associations in other places than those cities named in the thirty-first

ments.

Associations not to make loans,

curity of their

section of this act shall alsc return the amount due them available for the redemption of their circulation.

SEC. 35. And be it further enacted, That no association &c., on the se- shall make any loan or discount on the security of the own stock. shares of its own capital stock, nor 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, in default of which a receiver may be appointed to close up the business of the association, according to the provisions of this act.

Indebtedness

not to exceed

cept, &c.

SEC. 36. And be it further enacted, That no association capital stock, ex- shall at any time be indebted, or in any way liable, to an amount exceeding the amount of its capital stock at such time actually paid in and remaining undiminished by losses or otherwise, except on the following accounts, that is to say:

Associations not to hypothe

notes, for, &c. ;

p. 199.

First. On account of its notes of circulation.

Second. On account of moneys deposited with, or collected by, such association.

Third. On account of bills of exchange or drafts drawn against money actually on deposit to the credit of such association, or due thereto.

Fourth. On account of liabilities to its stockholders for dividends and reserved profits.

SEC. 37. And be it further enacted, That no association cate circulating shall, either directly or indirectly, pledge or hypothecate R. S., 5203, post, any of its notes of circulation, for 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.

not to withdraw any portion of their capital.

SEC. 38. And be it further enacted, That no association, or any member thereof, shall, during the time it shall continue its banking operations, withdraw, or permit to be withdrawn, either in form of dividends or otherwise, any portion of its capital. And if losses shall at any time have 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 shall continue its banking operations, to an amount greater than its nett profits then on hand, deducting therefrom its losses and bad debts. And all debts due to any association, on which interest is past due and unpaid for a period of six months, unless the same shall be well secured, and shall be

What to be

in process of collection, shall be considered bad debts within deemed bad the meaning of this act: Provided, That nothing in this sec- debts. tion shall prevent the reduction of the capital stock of the association under the thirteenth section of this act.

SEC. 39. And be it further enacted, That no association Associations not to pay out shall at any time pay out on loans or discounts, or in pur- certain notes. R. S, 5206, post, chasing drafts or bills of exchange, or in payment of depos. p. 200. its, or in any other mode pay or put in circulation the notes of any bank or banking association which shall not, at any such time, be receivable, at par, on deposit and in payment of debts by the association so paying out or circulating such notes; nor shall it 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.

List of names and residences of

be kept;

inspection;

to

SEC. 40. And be it further enacted, That the president and cashier of every such association shall cause to be kept at shareholders all times a full and 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; and such list shall be subject to the inspection to be subject to of all the shareholders and creditors of the association, and the officers authorized to assess taxes under state authority, during business hours of each day in which business may be legally transacted; and a copy of such list, on the first Monday of July in each year, verified by the oath of such president or cashier, shall be transmitted to the comptroller to be sent to of the currency.

comptroller.

keep control of

dies.

borne by associn

SEC. 41. And be it further enacted, That the plates and Comptroller to special dies to be procured by the comptroller of the cur- plates and special rency for the printing of such circulating notes shall remain R. S., 5173, 5214, under his control and direction, and the expenses necessarily post, pp. 194, 200. incurred in executing the provisions of this act respecting the procuring of such notes, and all other expenses of the Expenses to be bureau, shall be paid out of the proceeds of the taxes or tions. duties now or hereafter to be assessed on the circulation, and collected from associations organized under this act. And in lieu of all existing taxes, every association shall pay to the treasurer of the United States, in the months of January and July, a duty of one half of one per centum Duty upon circulation, deposeach half year from and after the first day of January, its, and capital stock to be paid eighteen hundred and sixty-four, upon the average amount semi-annually. of its notes in circulation, and a duty of one quarter of one per centum each half year upon the average amount of its deposits, and a duty of one quarter of one per centum each