Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1882-06-23
NATIONAL BANKS.
Full Text of the Bill Allowing Them TO
Extend Their Charters as 1t
Passed the Senate.
A Very Full and Complete Measure, APP
pareDtly Covering Every COntin-
gency that May Arise.


SECTION /. Be 1t enacted, That any Ma
tional Banking Association, organized under
the acts of February 25, 1853, June 3, 1864
aud February IA, 1880, or under sections
5I33, 5134, 5I35, 5136 and 5154 Of the re-
yised statutes of the United States, may, at
any time within two years next previous to
the date OF the expiration OF Its corporate
existence under the present law, and with
the approval of the comptroller OF the cur
rency, to be granted as hereinafter provided,
extend its period Of succession, by amending
its articles Of association, for a term OF not
more than twenty years from the expiration
of the period of succession named in said
articles of association; and shall have sue
cession for such extended period, unless
sooner dissolved by the act of shareholders
owning two-thirds Of its stock, or unless its
franchise becomes forfeited by some viola
ton of law, or unless hereafter modified or
repealed.
Sec. 2. That such amendment of said ar
ticles of association shall be authorized by
consent in the granting of shareholders
owning not less than two-thirds OF the capI-
tai stock of the association, and the Board OF
Directors all cause such consent TO be certi-
fed under the seal of the association by Its
president or cashier TO the comptroller OF
currency, accompanied by the application
m ade by the president or cashier Tor the APP
proval of the amended articles OF association
by the comptroller, and such amended
ticles of association shall not be valid until
the comptroller shall give to such associa-
ton certificate under his hand and
seal that the association has complied with
all the provisions required to be complied
with, and is authorized to have succession
for the extended period named in the amend
ed articles of association.
Sec. 8. That upon receipt OF the application
and certificate # association provided Tor In
the preceding section, The comptroller OF
currency shall cause a special examination
to be made at the expense of the association
to determine its condition, and if, after such
examination, or otherwise, it appears to him
that said association is in a satisfactory con-
clifton he shall grant his certificate OF APP
provsl provided for IN the preceding sec
lion, or if it appears that the condition OF
said association is not satisfactory he shall
withhold such certificate OF approval
Sec 4. That any association so extending
its period, its successor shall continue to en-
Joy all the rights and privileges and immu-
mites granted, and shall continue to be sub
iect to all the duties, liabilities aud restrlc-
ton imposed by the revised statutes OF the
United States, and other acts having refer
ence to national banking associations, and 1t
shall continue to be ia all respects the iden-
tIcal association it was before the extension
of its period of its succession; provided,
however, that jurisdiction for suits hereafter
brought by or against any association estab-
lished under the law providing for national
banking associations, except suits between
them and the United States, or its ofhcers
and agents, shall be the same as, and not
other than the jurisdiction for suits by or
against banks not organized under any law
OF the United States, which do, or might do,
a banking business where such national
banking assoc ations may be doing business
when such suits may be begun; and all laws
and parts of laws of the United States lncon-
sistent with this proviso be and the same are
hereby repealed And provided further, tn at
no attachment, injunction or execution shall
be issued against such national banking as
ISOLATION, or it's property, before final judg-
ment in any suit, action or proceeding, IN
any State, county or municipal court.
Sec. 5. That when any national banking
association has ans nded its articles of asso-
citation as provided in this act, and the
comptroller has granted his certificate OF
approval, any shareholder not asserting to
such amendment may give notice in writing
10 the directors within thirty days from the
date of the certificate OF approval OF his
desire to withdraw from said association, in
which case he shall be entitled to receive
from said association the value OF the share
so held by him, TO be ascertained by the
appraisal made by commission OF three per-
sons, one to be selected by such shareholder,
one by the directors and the third by the first
two; and in case the value SO fixed shall not
be satisfactory to any such shareholder ne
may appeal to the comptroller OF currency,
who shall cause a reappraisal to be made,
which sha all be final and binding; and If said
reappraisal shall exceed the value fixed by
said commission, the bank shall pay the
expenses of said reappraisal, and other
wise the appellant shall pay the said
expenses, and the value so ascertained
and determined shall be deemed the debt to
be due, and be forthwith paid to said share
holder from such bank, and shares so sur
rendered and appraised shall after due no
ice be sold at public sale within thirty days
after the final appraisal provided in this sec
ton; provided, tia at in organization any bank
ing association intended to replace any ex-
isting banking association, and retaining the
name thereof, the holders of stock in the ex-
piring association shall be entitled TO prefer
ence in the allotment of the shares OF the
new association in proportion to the number
of shares held by them respectively in the
expiring association.
Sec. g. That the circulating notes of any
association so extending the period of its
succession, which shall have been Issued to it
prior to such extension, shall be redeemed at
the treasury of the United States, as pro-
vided in section OF the act of June 20, 1874,
entitled San act fixing the amount of United
States notes and providing for the redistrl-
button of the national bank currency and
for other purposes" and such notes when re-
deemed shall be forwarded to the mptroller
of currency and destroyed as now provided
by law, At the end of three years from the
date of the extension of the corporate exist
ence of each bank the association so extended
shall deposit lawful money with the treas
urer of the United States sufficient to redeem
the remainder of the circulation which WAS
outstanding at the date OF its extension, as
provided in sections 5000, 1924 and 5225 of
the revised statutes, and any gain that may
arise from failure to preserve such circu-
lating notes for redemption, shall inure TO
the benefit of the United States, and from
time to time as such notes are redeemed they
shall be replaced by new circulating notes,
bearing such devices, to De approved by the
secretary of the treasury, as shall make them
readily distInguishable from the circulating
notes heretofore issued; provided, however,
that each banking association which shall
obtain the benefits of this act shall reimburse
to the treasury the cost of preparing plate,
or pl ates, for such new circulating notes as
shall be issued to 1t.
Sec. Z. That national banking associations
whose corporate existence has expired, or
ahau hereafter ex pire, and which do not aV all
themselves of the provisions OF this act
ions of sections 1921 and 5222 of the revised
statutes in the same manner as ii the share
holders had voted to go into liquidation, as
provided in section 1920 of the revised stat
utes; and the provisions of sections 1924 and
1925 of the revised statutes shall also be
applicable to such associations, except as
modified by this act, and the franchise Of
such associations is hereby extended for the
sole purpose of Gquidating their affairs IN
I'll such affairs are finally closed.
Sec. s. That national banks now organized
| or hereafter organized, having a capital Of
| s., O0O, 600, or less, shall not be required tC
Keep on deposit, or deposit with the treasurer
| of the United States, United States bonds il
excess of one-third of their capital stock a:
security for their circulating notes, and suct
of those banks having on deposit bonds IL
| excess of that amount are authorized Il
| reduce their circulation by a deposit of law
| full money as provided by law; provided tina
amount of such circulating notes shall no
in any case exceed ninety per cent. OF pa
| value bonds deposited as herein provided
prouuded further, that all national bank
| which shall hereafter make deposits Of law
| full money for retirement in full of their cir
| culation shall, at the time of their deposit
be assessed the cost of transporting and re
| deeming their notes then outstanding a sun
| equal to the average cost OF the redemption
| of national bank notes during the preceding
| year, and shall thereupon pay such assess
| ment. and all national banks which have
heretofore made, or shall hereafter make
| deposits Of lawful money for the reduction
| of their circulation shall be assessed anC
shall paw the assessment in the manne
| specified in the section of the act approved