The Hawaiian gazette., 1884-06-04

ana deposits, ana whenever the lawful !
money of any other association shall be
below fifteen percentum Of its circulation
and deposits, such association shall not
increase its liabilities by making any
new loans or discounts otherwise than By
discounting or purchasing bills Of ex-
change 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 aud its lawful money Of the
/ United States, has been restored. And
the Comptroller Of the Currency may
notify any association, whose lawful
money reserve shall be below the amount
above required to be kept on hand, to
make good such reserve; and if such as
ISOLATION shall fail for thirty days there
after 50 to make good its reserve of law
I full money, the Comptroller may, with
the concurrence of the Secretary of the
Treasury, appoint receiver to wind up
the business of the association, ss pro-
vided in section fifty-two hundred and
thirty-four.
SEC. 5192. Three-ffths of the.reserve
of fifteen per centum required by the
preceding section TO be kept, may consist
of balances due to an association, availa-
bic for the redemption of its circulating
notes, from associations approved by the
Comptroller of the Currency, organized
under the act of June three, eighteen
hundred and siNty-four, or under this
Title, and doing business in the cities Of
Albany, Baltimore, Boston, Charleston,
Chicago, Cincinnati, Cleveland, Detroit,
Louisville, Milwaukee, New Orleans,
New York, Philadelphia, Pittsburg, Rich
mond, Saint Louis, San Francisco, and
Washington. Clearing house certificates,
representing specie or lawful money
specially deposited for the purpose, of
any clearinghouse association, shall also
be deemed to be lawful money in the
possession of any association belonging to
such clearing house, holding and owning
such certificate, within the preceding
section.
SEC. 5197. Any association may take,
receive, reserve and charge on any loan
or discount made, or upon any note, bill
OF exchange, or other evidences of debt,
interest at The rate Gloired By the tG'rs of
the State, Territory or district where the
bank is located, and no more, except that
where by the laws OF any State different
rate is limited for banks of issue organ
lied under State laws, the rate so limited
shall be allowed for associations organized
or existing in any such state under this
Title. When no rate is fixed by the laws
of the State, or Territory, or district, the
bank may take, receive, reserve or charge
a rate not exceeding Seren per eentlml,
and such interest may be taken in adj
vance, reckoning the days for which the
note, bill, or other evidence of debt has
to run. And the purchase, discount Of
sale OF bona-fide bill of exchange, pay
able at another place than the place of
such purchase, discount or sale, at not
more than the current rate of exchange
for sight drafts in addition TO the inter-
est, shall not be considered as taking or
receiving greater rate of interest.
SEC. 5199. The directors of any assO-
citation may, semi-annually, declare q
dividend of so much of the net profits of
the association as they shall judge expe-
dient but each association shall, before
the declaration of dividend, carry one
tenth part of its net profits of the preced-
ing half-year to its surplus fund until
centum of its capital stock.
SEC. 500. No association 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 aecoSnt of
demands of the nature following:
First. Notes of circulation.
Second. Moneys deposited with or
collected by the association.
Third. Bills of exchange or drafts
drawn against money actually on deposit
to the credit of the association, or due
thereto.
Fourth. Liabilities to the stockholders
of the association for dividends and re-
served profits.
SEC. 1908. No association shall, either
directly or Indirectly, pledge or hypothe-
cate any of its notes or 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
NUTS VI any part lhtItOl, III any HAIL.
ner or form, to create or increase its capt.
tai stock.
SEC. 1904. No association, or any
member thereof, shall, during the time
it shall continue its banking operations,
withdraw, or permit to be withdrawn,
either in the form of dividends or other
wise, any portion of its capital Iflosses
have at any time 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 continues its banking operations,
to an amount greater than its net profits
then OH hand, deducting therefrom its
losses and bad debts. All debts due to
any associations, on which interest is
past due and unpaid for period of six
months, unless the same are well secured,
and in process oil collection, shall be con-
side-ed bad debts within the meaning OF
this section. But nothing in this section
shall prevent the reduction of the capital
STOCK Of the association undpr section