The Hawaiian gazette., 1884-06-04
THE UNITED STATES NATIONAL
BANK ACT.

Act win show where the new Bank Act
agrees with and where it differs from the
law Of the United States. Citizens should
read the extracts carefully:
SIC. 5IS6 Upon duly making and
filing articles Of association and an organ
ization certificate, the association shall
become, rs from the date of the exeeu-
ton OF its organization certificate, body
corporate, and as such, and in the name
designated in the organization certificate,
it shall have power
First. To adopt and use a corporate
seal.
Second. To have succession for the
period of tlreRty years from its organiza-
ton, unless it Is sooner dissolved accord
ing to the provisions OF its articles of
association, or by the act of its sharehold-
ers owning twO-thirds Of its stock, or
unless its franchise becomes forfeited by
some violation OF law.
Third. To make contracts.
Fourth. To sue and Be sued, to COM
plain and defend. in any court of law and
equity, as fully rs natural persons.
Fifth To elect or appoint directors,
and BY its board o. directors to appoint
q president, president, cashier, and
other officers, define their duties, require
bonds Of them and fix the penalty thereof,
dismiss such officers or any of them at
pleasure, and appoint Others TO ill their
places
Sixth To prescribe, by its board of
directors, bylaws not inconsistent with
law, regulating the manner in which its
stock shall be transferred, its directors
elected or appointed, its officers appoint
ed, its property transferred, its general
business conducted, and the privileges
granted to it by law exercised and en-
joyed.
Seventh. TO exercise by its board of
directors, or duly authorized officers or
agents, subject to law, all such incidental
powers a shall be necessary to carry on
the business Of banking by discounting
and negotiating promissory notes, drafts,
bills of exchange, and other evidences of
debt; ty receiving deposits by buying
and selling exchange, coin. and bullion ;
by loaning money on personal security
and by obtaining, Issuing, and circulating
notes according to the provisions OF this
Title.
But no association shall transact any
business except such rs is incidental and
necessarily preliminary to its organiza-
ton, until it has been authorized by the
Comptroller of the Currency to commence
the business of banking.
SEC. 5137. \ national banking aSsoci-
alton may purchase, hold, and convey
real estate for the following purposes,
and for no others:
First. Such rs shall be necessary for
its Immediate accommodation in the
transaction Of its business.
Second. Such As shall be mOrtgaged to
it in good faith by way of security for
debts previously contracted.
Third. Such rs shall be conveyed to it
in satisfaction of debts previously con-
tracted in the course of its dealing.
Fourth. Such As it shall purchase at
sales under judgments, DEGREES or mort
cages held by the association, or shall
purchase to secure debts due TO it.
But no such association shall hold the
possession of any real estate under mort
gage, or the title and possession of any
real estate purchased to secure any debts
due to it, for longer period than fire
years.
SEC. $40. At least titty per ceHtum of
the capital stock Of every association shall
be paid in before it shall be authorized to
commence business; and the remainder
Of the capital stock of each association
shall be paid in installments of at least
ten per ceRfiBi each on the whole amount
of the capital stock, as frequently as one
instdllpent at the end of each succeeding
month from the time it shall be author
lied by the Comptroller of the Currency
to commence business and the payment
Of each installment shall be certified to
the Comptroller, under oath, by the
president or cashier of the association.
SEC. 5146. Every director must, dur
ing his whole term Of service, be a citizen
of the United States, and Mt least three
fourths of the directors must have re-
sided in the State, Territory, or District
in which the association is located, for at
least one year Immediately preceding
their election, and must be residents
therein during their continuance in office.
Every director must own, in his own
right, at least ten shares Of the capital
stock Of the association Of which he is a
director. Any director who ceases to be
the owner of ten shares of the stock, or
who becomes in any other manner dis
qualified, shall thereby vacate his place.
SEC. 5147. Each director, when APP
pointed or elected, shall take an oath that
he will, 50 far as the duty devolves on
him, diligently and honestly administer
the affairs of such association, and will
not knowingly violate, or willingly per-
nit to be violated, any of the provisions
of this Title, and that he IS the owner in
good faith, and in his own right, of the
number Of shares of stock required by
this Title, subscribed by him, or stand
ing in his name on the books of the as
ISOLATION, and that the same is not by
pothecated, or in any way pledged, as
security for any loan or debt Such oath,
subscribed by the director making it, and
certified by the officer before whom it Is
taken, shall be Immediately transmitted
to the Comptroller of the Currency, and