if not paid in time.

calation, &c., to be made.

half year, as aforesaid, on the average amount of its capital stock beyond the amount invested in United States bonds; How collected, and in case of default in the payment thereof of any associa tion, the duties aforesaid may be collected in the manner provided for the collection of United States duties of other corporations, or the treasurer may reserve the amount of said duties out of the interest, as it may become due, on the bonds deposited with him by such defaulting association Return of cir- And it shall be the duty of each association, within ten days from the first days of January and July of each year, to make a return, under the oath of its president or cashier, to the treasurer of the United States, in such form as he may prescribe, of the average amount of its notes in circulation, and of the average amount of its deposits, and of the average amount of its capital stock, beyond the amount invested in United States bonds, for the six months next preceding Penalty for de- said first days of January and July as aforesaid, and in default of such return, and for each default thereof, each defaulting association shall forfeit and pay to the United States the sum 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; and in case of such default the amount of 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, and upon the highest amount of its deposits and capital stock, to be ascertained in such other manner as the Shares not here- treasurer may deem best: Provided, That nothing in this by exempted from taxation by act shall be construed to prevent all the shares in any of state authority. the said associations, held by any person or body corporate,

fault.

from being included in the valuation of the personal property of such person or corporation in the assessment of taxes imposed by or under state authority at the place where such bank is located, and not elsewhere, but not at a greater rate than is assessed upon other moneyed capital in the hands of individual citizens of such state: Provided, further, Limit of state That the tax so imposed under the laws of any state upon the shares of any of the associations authorized by this act shall not exceed the rate imposed upon the shares in any of the banks organized under authority of the state where Real estate to such association is located: Provided, also, That nothing in this act shall exempt the real estate of associations from either state, county, or municipal taxes to the same extent, according to its value, as other real estate is taxed.

tax.

be taxed.

202.

SEC. 42. And be it further enacted, That any association How associa tions may be may go into liquidation and be closed by the vote of its closed. shareholders owning two thirds of its stock. And whenever Proceedings. such vote shall be taken it shall be the duty of the board 5224, post, pp. 201, R. S., 5220, 5222, of directors to cause notice of this fact to be certified, under the seal of the association, by its president or cashier, to the comptroller of the currency, and publication thereof to be made for a period of two months in a newspaper published in the city of New York, and also in a newspaper pub. lished in a city or town in which the association is located, and if no newspaper be there published, then in the newspaper published nearest thereto, that said association is closing up its affairs, and notifying the holders of its notes and other creditors to present the notes and other claims against the association for payment. And at any time after the expiration of one year from the time of the publication of such notice as aforesaid, the said association may pay over to the treasurer of the United States the amount of its outstanding notes in the lawful money of the United States, and take up the bonds which said association has on deposit with the treasurer for the security of its circulating notes; which bonds shall be assigned to the bank in the manner specified in the nineteenth section of this act, and from that time the outstanding notes of said association shall be redeemed at the treasury of the United States, and the said association and the shareholders thereof shall be discharged from all liabilities therefor.

Treasurer to executeduplicate

R. S., 5222, 5225,

SEC. 43. And be it further enacted, That the treasurer, on receiving from an association lawful money for the payment receipts. and redemption of its outstanding notes, as provided for in post, pp. 201, 202. the preceding section of this act, shall execute duplicate receipts therefor, 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, which amount shall be paid into the treasury of the United States, and placed to the credit of such association upon redemption account. And it shall be the duty of the treas- Redeemed notes urer, whenever he shall redeem any of the notes of said &c. See act of June association, to cause the same to be mutilated, and charged 23, 1874, post, p. to the redemption account of said association; and all notes so redeemed by the treasurer shall, every three months, be certified to and burned in the manner prescribed in the twenty-fourth section of this act.

to be mutilated,

211.

may become na

tions.

SEC. 44. And be it further enacted, That any bank incor- State banks porated by special law, or any banking institution organized tional associa under a general law of any state, may, by authority of this act, become a national association under its provisions, by

cedure.

the name prescribed in its organization certificate; and in such case the articles of association and the organization certificate required by this act may be executed by a majority of the directors of the bank or banking institution; and said certificate shall declare that the owners of twothirds of the capital stock have authorized the directors to make such certificate and to change and convert the said bank or banking institution into a national association under Mode of pro- 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.

cept, &c.;

agents.

p. 190.

Associations, SEC. 45. And be it further enacted, That all associations when so designated, may be de- under this act, when designated for that purpose by the positaries of publie moneys, ex-Secretary of the Treasury, shall be depositaries of public money, except receipts from customs, under such regulations may be financial as may be prescribed by the Secretary; and they may also be employed as financial agents of the government; and R.S., 5153, post, they shall perform all such reasonable duties, as depositaries of publie moneys and financial agents of the government, Designated de-as may be required of them. And the Secretary of the positaries to pay promptly; 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 govern

ment: Provided, That every association which shall be se- to receive national currency bills lected and designated as receiver or depositary of the pub. at par. lic 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.

If associations fail to redeem

&c.

Notice of protest, &c., to be

SEC. 46. And be it further enacted, That if any such association shall at any time fail to redeem, in the lawful money of their circulation, the notes may be the United States, any of its circulating notes, when pay-protested, unless, ment thereof shall be lawfully demanded, during the usual R. S., 5226, 5228, hours of business, at the office of such association, or at its post, pp. 202, 203. 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, forwarded to comptroller. 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 Association not comptroller, and notice by him to the association, it shall further, except, 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 mouey 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.

to do business

&c.

Notes not to be tain cases.

protested in cer

Fees of notary.

Upon notice of failure to redeem

circulation, comp

troller to

send

special agent to

ascertain facts;

R. S., 5227, 5229

SEC. 47. And be it further enacted, That 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 5230, 5234, post, 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

pp. 203, 204.

securities forfeit

ed.

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 when to declare and is in default, he shall, within 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, and the same shall thereupon be forfeited accordingly. And thereTonotify holders upon the comptroller shall immediately give notice in for 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; to pay notes and whereupon said comptroller may, in his discretion, cancel

of notes to pre

sent them payment;

cancel bonds.

States to have

upon assets for

an amount of bonds pledged by such association equal at current market rates, not exceeding par, to the notes paid. And it shall be lawful for the Secretary of the Treasury, from time to time, to make such regulations respecting the disposition to be made of such circulating notes after 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, The United shall be cancelled. And for any deficiency in the proceeds priority of lien of the bonds pledged by such association, when disposed of any deficiency in as hereinafter specified, to reimburse to the United States redemption of circulation. the amount so expended in paying the circulating notes of such 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. Bonds pledged SEC. 48. And be it further enacted, That whenever the be sold at auc- comptroller shall become satisfied, as in the last preceding section specified, that any association has refused to pay its circulating notes as therein mentioned, he may, instead of cancelling the United States bonds pledged by such association, as provided in the next preceding section, cause so much of them as may be 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.

as security may

tion;

R. S., 5230, post, p. 204.

SEC. 49. And be it further enacted, That 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