The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1882-06-28
BANK CHARTERS.
Text OF the Bill Passed by the Senate
To Enable National Banking Associa-
tions to Extend Their Cor
porate Existence.

Be 1t enacted that any National Banking Asso.
citation organized under the acts of February Is
1868; June 8. 1864 and February Il 1880 or under
Sections 5,l33, 5l35, Abs. 5,lS6 and 5l54 of tke
Revised Statutes OF the United States may at any
Of expiration of its cornorae eTenca 70 ,de uh.s
present law, and with the approval of the Comp
tr0ller OF the Currency, TO be granted, as herein
after provided extend its period of succession by
amending Its articles of association for term OF
not more than twenty years from the expiration
OF the period OF succession named in said articles
OF association and shall have succession for such
extended period unless sooner dissolved by the
the act OF the shareholders owning two-thirds OF
its stock or unless its franchise becomes forfeited
by some violation OF law, or unless hereafter
modified or repealed.
Sec. 3 That such amendment of said articles OF
association shall be authorized by the consent Ia
granting of the shareholders owning not less than
two-thirds OF the capital stock of the Association
and the Board of Directors shall cause such con.
sent TO be certified under the seal of the AsSocia-
ton byits President Cashier TO the Comptroller
OF the currency, accompanied by an application
made to the President or Cashier tor approval of
the amended articles of association by the Conn
troler. and such amended articles of association
| shall not be valid until the Comptroller shall
| give to such Association a certificate under the
hand aud seal that the Association has Complied
with the provisions required to be complied with
and is authorized TO have the succession for the
extended period named in the articles of associs-
| ton.
Sec. 8. That upon receipt of the application
| and certificate OF association provided for In the
| preceding section, the Comptroller of the Cur
| rency shall cause special examination to be
i made at the EXPENSE of the Association fo de-
termine It's condition, and it, after such examlua-
ton or otherwise II appears to him that said As
ISOLATION is in satisfactory condition, he shall
grant his certificate of approval provided for in
con6ition of said seoc 4s i appears taat the
he shall withhold such Certificate of approval
Sec. A. That any ASSOCIATION so extending the
period of its succession shall continue TO enjoy all
| rights and privileges and 1mmunities granted
and shall continue to be subject TO all duties
liabilities and restrictions imposed by the Revised
| ing reference to National Banking Associations
and ii shall continue TO be in all respects the
identical Association il was before the extension
that jurisdiction for suits hereafter brought by or
i against any Association, established under any
law providing for National Banking Associations,
| except suits between them and the United States
in its officers and agents, shall be the same as
rod not other than the jurisdiction for
su Is by or against Banks not organized under
any law of the United States which do or might
do banking business, where such National Bank
ing Association may be doing business, when such
suits NAV De begun unoer all laws and parts of
laws of the United States consistent with this pro-
yiso be, and the same are hereby repealed; and
or execution shall be issued against such National
Banking Association or lis property before final
Judgment In any suit. action or proceeding in any
State, County or Municipal Court.
Sec 5. That when any National Banking As
ISOLATION has amended Its articles OF association
as provided in this act and the Comptroller has
holders not asserting to such amendment may
give notice in writing TO the directors within
thirty days from the date Of the certificate Of ap-
prevail OF his desire to withdraw from said Asso-
citation, in which case he shall be entitled TO re-
ceive from said Banking Association the value OF
the shares so held by him, to be ascertained by
approval made by Committee of three persons
one to be selected by such shareholder one by the
directors and the third by the hrst two and in case
the value so fixed shall not be satisfactory to any
such shareholder, he may appeal 10 the Comp
troller of the Currency, who shall cause reap
praisal to be made which shall be final and bind
2 -.
ixed by said Committee, the said bank shall pay
the expenses of sand reappraisal, and otherwise
the appellant shall pay SAID expenses and value
so gScertained and determined shall be deemed to
be debt due, and be forthwith paid to said
shareholder from said bank. and shares so sur
rendered and appraised shall, after due notice,
b. sold at public sale.
Within thirty days after the final appraisal pro-
vided in this section, provided that no organiZa-
place any existing Banking Association and re-
tanning the name thereof, the holders of stock in
the expiring Association shall be entitled to pre-
ference in allotment of shares in the new AssOcia-
ton in proportion to the number of shares held
by them respectively in the expiring Association.
Sec. g. That the circulating notes of any As
sion which shall have been issued to it prior to
such extension, shall be redeemed by the Treas |
ury of the United States, as provided for in Sec
ton of the act of June 20, 1874, entitled act
fixing the amount of United States notes, |
providing for a redistribution of National |
Bank currency and for other purposes; and |
the Comptroller of the Currency and destroyed |
as now provided by law. At the end of three |
existence OF such bank, the Association so ex-
tended shall deposit lawful money with the |
Treasurer of the United States sufficient to redeem
landing at the date OF its extension as pro- |
vided in Sections 222 5,224 and sos OF the Re-
vised Statutes and any gain that may arise from |
demptiOn 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 circulat-
ing notes, bearing such devices TO be approved by
the Secretary of the Treasury shall make them |
readily distingushable from the circulating notes
heretofore issued; provided. however, that each
Banking Association which shall OBTAIN the |
benefit of the act shall reimburse 70 the Treasury
the cost of preparing the plate or plates for such
new circulating notes as shall be issued to it.
Sec. Z. That the National Banking Association |
whose corporate existence has expired, or shall |
hereafter expire and which do not avail them |
selves of the provisions OF this act, shall be re-
uuired to comply with the provisions of Sections
5,22I and 2l2 of the Revised Statutes in the
manner as IL the shareholders had voted TO go |
into liquidation as provided in Section 500 OF the
Revised Statutes, and provisions OF Sections 5,224
ard 5 pa of the Revised Statutes shall also be APP
by this act aud the franchise OF such Association
Is hereby extended for the sole purpose OF lqui-
dating their affairs until such affairs are finally
Sec. s. That the National Banks organized or
hereafter organized, having capital OF 500 900
or less shall be required to keep on deposit or
deposit Win Ine lTehsurtT Vi Oulteu CIdles,
United States bonds in excess OF one third OF
their capital stock security for their circulating
notes, and such of these banks having on deposit
bonds in excess of that amount are authorized 20
reduce their circulation by the deposit of lawful
money as provided by law: provided that the
amount of such circulating notes shall not in any
case exceed 80 per cent. of the par value of the
bonds deposited as herein provided; provided
further that all National Banks which shall here
after make deposits of lawful money for the re-
tirement in full of their circulation shall at the
time of their deposit be assessed for the cost
of transporting and redeeming their notes
then outstanding in sum equal TO
the average cost of the redemption Of National
Bank notes during the preceding year, and shall
thereupon pay such assessment, aud all National
Banks which have heretofore made, or shall here
duction of their circulation, shall be assessed,
and shall pay ansasSessment in the mannerspeci-
fed in this section of the act approved January
90 1874 for the cost of transporting and redeem
ing their notes redeemed from such deposit, sub
seQuent to June 30, 1881.
Sec. 9. That any National Banking Association
now organized or hereafter organized. desiring to
withdraw Ats circulating notes, upon deposit OF
lawful money with the Treasurer of the UEited
States as provided in Sections of the act of June
20, 1874, entitled IAN act fixing the amount OF
United States notes, providing for the
redistribution of National Bank currency,
and for other purposes" or as provided
in this act is authorized to deposit lawful
money and withdraw a proportionate amount OF
bonds held security for its circulating notes in
order OF such deposits. and no National Bank
which makes any deposit of lawful money in or
der TO withdraw its circulating notes shall be
titled TO receive any increase in its circulation
for period of six months from the time it made
such deposit of lawful money for the purpose