The tri-weekly standard. [volume] (Raleigh, N.C.) 1866-1868, 1866-12-15
! RALEIGH. n. c., SATURDAY,

socation has refused to pay its circulating notes
in the lawful money of the United States, when
demanded aforesaid, and report to the comp
troilor the facts so ascertaned; and if, from such
protest or the reports so made, the comptroller
snail be satisfied that such association has refused
to pay its circulating notes aforesaid, and is in
default, he SHALL within thirty days after he shall
have received notice of such failure, declare the
United State bonds and securities pledged by
such association forfeited to the United States
and the same shall thereupon be forfeited accord.
ingly; and thereupon the comptroller shall i'm
mediatcly give notice, in such manner as the Sec.
retary OF the Treasury shall, by general rules or
otherwise, direct, to the holders of the circula.
ting notes of such association to present them fol-
payment at the treasury of the United States and
the same shall be paid presented, where upon
said comptroller may, in his discretion, cancel an
equal amount of the bonds pledged by such as
sociatiOn, equal at current market rates not ex-
ceeding 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 perpetuatfon of the
evidence of the payment thereof, 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 pledged by such associa-
ton, when disposed OF as hereinafter specified to
reimburse to the United States the amount so cx-
pended in paying the circulating notes of such
association, the United States shall have 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
See. 81 And be it further enacted, That when
ever the comptroller snail become satisfied as in
the last preceding section specified, that any such
association has refused to pay its circulating
notes as therein MENTIONED he may, instead Of
canceling the United States bonds pledged by
such association, as provided in the next preced-
ing section, much of them as NAV 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 associa-
tion.
Sec. %. 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 at private sale
anv of the stock so transferred to him by such
association, and receive therefor either money or
me ciTc9latng notes OF such failing ASSOCIATION:
Provided, That no such bonds shall be sold by
private sale for less than the par, nor less than
the market value thereof at the time of sale. And
provided further, That no sales of aiy such stock
either public or private, shall be complete until
the transfer thereof snail have been made with
the formalities prescribed in this act.
Sec. %. And be it further enacted, That on be-
coming satisfied, specified in this act that any
such association has refused to pay its circuatns
notes as therein mentioned, and is i'll default, the
comptroller of the currency may forthwith ap-
point receiver, and require of him such bond
and security as he shall deem proper who, under
the direction of the COMPTROLLER, shall take pos
session 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 court of record of COM
petent jurisdiction, may sell or compound all bad
doubtful debts, and, like order sell all
the real ana lersOnal property OF such aSSOcla-
ton, such terms as the court shall direct; and
such receiver shall pay over all moneys made
to the treasurer of the United States, 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 adj
yertiSinG i'll such newspapers as he may direct,
for three consecutive months calling ali per
sons who may have claims against such ssocia-
ton 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 tor
O de
in redecining the notes of such association is
mentioned in this act, shall make ratable divi
dend of the moneys paid over TO him by such
receiver on all such claims as may have been SO
proved adjudicated in Il court of competent
jurisdiction, and from time to time, as the pro-
ceedS of the assets of such association shall be
paid over to him, he shall make further dividends,
> aforesaid, all claims previously proved or
adjudicatcd: and the remainder OF such proceeds,
if amy, shall be paid to the shareholders of
such association, their legal representatives, in
proportion t. the stock by them respectively
held: Provided, however, That If any such aSso
citation, against which proceedings have been so
instituted account OF any alleged refusal to re-
deem its circulating notes Us 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, district, territorial court of the Uni
ted States, to Ell Join further proceeding in the
premises; and such court, alter citing the comp
troller OF the currency to show cause why further
proceedings should not be enioincd, and after the
decision of the court or finding of jury that
culating 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 pro-
ceedngs account of such alleged refusal.
Sec. 80. And be it further enacted, That the
bonds transferred to the treasurer of the United
States, hcreinbefore provided, by any banking
association for the security of it's circulating
notes, shall be held exclusively for that purpose
until such notes shall be redeemed except us
provided in this act; but the comptroller OF the
currency may give to any snch banking assOcia-
ton powers OF attorney to receive and appropri-
ate to its own use the interest on the bonds which
shall have been so transferred TO the treasurer by
it; but such powers shall become imperative
whenever such banking association shall fail to
redeem its circulating notes aforesaid and said
comptroller may direct fhe return of any of said
bonds to the banking association which trans
ferred the same, upon the surrender to him and
the cancellation of proportionate amount of
such circulating notes Provided, That ninety per
centum of the current market value of the re
naming bonds which shall have been transferred
by the banking association offering to surrender
such circulating notes shall be equal to the
amount of all the circulating notes retained by
such banking ass ociatiou And provided, further,
That there shall have been no failure by such as
sociation to redeem its circulating notes, and
that there shall have been no other violation by
such association of any of the provisions of this
act for the security of the creditors of such asso
citation shall the treasurer be required to sur
render such bonds in fractional sums of less than
one thousand dollars; and if, at any time after
said bonds shall be deposited with the treasurer
of the United States, aforesaid, the mark ct or
cash value shall be reduced, the comptroller of
the currency is hereby authorized to demand and
receive the amount of such depreciation in other
United States bonds at cash value, in money,
from the association receiving said bills, to be de-
posted with the treasurer Of the United States,
as long such depreciation continues.
Sec. 81. And be it further enacted, That when
the price of any of the bonds pledged as
aforesaid for the redemption of the circulating
notes of any such banking association shall be, at
the stock exchange in tie city of New York. for
four consecutive weeks at rate less than that at
which they sh IL have been estimated when
pledged, and such depreciation shall not have
been made good by deposit of other bonds
money, it shall be the duty of the comptroller of
the currency to notify the treasurer OF the Uni
ted States of such fact, and the payment of inter
est upon such depreciated bonds shall be suspen-
ded and such interest shall be retained by said
treasu until the same, when added to the cur
rent market value of the bonds pledged to be
ascertained before provided shall be equal to
the amount for which such bonds were pledged
Provided, That it shall be the duty of the comp
troller of the currency at the expiration of every
period of three months, to cause the whole of the
sums so retained, and then ining in the treas
ury of the United States, to be invested in Uni
ted States bonds, in the name of the comptroller
of the currency, in trust for the respective
Citations by which the bonds which such inter
oefe ebo1lb rr1a6c chol