Year: 1866

I


the production of the original certificate.
Sec. Z. And be it further enacted, That at least


thirty per centum of the capital stock of such


socation shall be paid in at the time of the COM


mencement of its banking business, and the


mainder of the capital stock of such association
| shall be paid in instalments of at least ten Der


centum each on the whole amount to which the


association shall be limited, frequently as one
| lnstalment at the end of each succeeding two


months from the time of the commencement of
| its banking operations, until the whole of the
capital stock shall be paid in.


Sec; 8. And be it further enacted, That if any
shareholder, or his assignee shall fail to pay any


instalment on the stock when the same is required


by the foregoing section to be paid, the directors
| of such associ ton may sell the stock held by
such delinqent shareholder, at public auction
! having given three weeks previous notice there
| of in newspaper published and of general cir


culation in the city where the association is loca-


ted, if the same be located in city, and if not
located, then in a newspaper printed, or of gen


eral circulation, in the county where the same is
located, to any person who will pay the highest


price therefor, and not less than the amount due
thereon, with the expenses of advertisement and


aa the II shall be paid to the he
found who will pay for such stock the amount
due thereon to the association, and the costs of
advertisement and sale, the amount previously
paid shall be forfeited to the association and such
stock stock may subsequently be sold the di-
rectors may order.


Sec 9. And be it further enacted, That when
ever certificate shall have been transmitted to
the comptroller OF the currency, as provided in
same shall notify the comptro Ter that at least
thirty per centom of its capital stock has been
paid as aforesaid, and that such association has


quired to be complied with before such associa-
tion shall be authorized to commence the busi-


ness of banking, and that such association is de-
sirous of commencing such business, the comp
troller shall Immediately proceed, in such manner
as he shall by general rules prescribe, to examine
the condition of such association; to ascertain
especially the amount of money paid in


count of its capital stock the name and place of
residence of each of the directors of such asso
citation, and the amount of the capital stock of
which each is the bona fde owner, and generally
whether such association has complied with all
the requirements of this act to entitle it to en-
gage in the business of banking and shall cause
to be made, and attested by the oaths of maori-
ty of the directors any by the president CASH
ier of such association, statement of all the
facts necessary to enable the comptroller to de-
termne whether such association is lawfully en-
| titled to commence the business of banking
der this act


Sec TO- And be it further enacted That if up-


on careful examination of the facts so reported,
and of any other facts hich may come to the
knowledge of the comptroller, whether by means
! of special commission appointed by him for the
purpose of inquiring into tie condition of such
association, otherwise, it shall appear that such
association is lawfully entitled to commence the
business of banking, the comptroller shall give
| to such association n certificate under his hand


and official SEAL showing that such association
has complied with all the provisions of this act
required to be complied with before being enti-
tied t. commence the business of banking under
it. and that association is authorized to commence
the business of banking under it, and that such
association is authorized to commence said busi-
ness accordingly; and ii shall be the duty of such
association to cause said certificate to be pub
lished in some newspaper, published in the city
or county where such association is located, for
at least sixty days next after the issuing thereof;
Provided, That if no newspaper is published in
such city county, such certificate shall be pub
lished as the comptroller of the currency shall
direct.


See. II. And be it further enacted, That every
association formed pursuant to the provisions of
this act may make and use common seal, and
shall have succession by the name designated in
its articles of association and for the period imi
ted therein, not, however, exceeding twenty years
from the passage of this act: by such name may
make contracts, and be sued, complain and
defend in any court of law equity fully
natural persons, and may make bylaws, approv-
ed by the comptroller of the currency, not incon-
sistent with the laws of the United States or the
provisions of this act, for the election of direc
tors, the management of its property, the rcgula-
ton of its affairs, and for the transfer of it's
stock and shall have power to carry on the busi-
ness of banking by obtaining and issuing circu-
latng notes i'll accordance with the provisions of
this act; by discounting bills, notes, and other
evidences of debt by receiving deposits; by buy
ing and selling gold and silver bullion, foreign
coins, and bills of exchange: by loaning money
on real and personal security, in the manner spec
flied in their articles of association, for the pur
poses authorized by this act, and by exercising
such Incidental powers as shall be necessary to
carry such business; to choose one of their
number president of such association, and to
appoint a cashier and such other officers and
agents as their business may require; and to re-
move such president, cashier, officers, and agents
at pleasure, and appoint Others in their place;
and their usual business shall be transacted i'll
banking offices located at the places specified re-
spectvely in its certificate of association, and not
elsewhere.


shares of associations formed under this act shall
be deemed personal property, and shall be trans
ferrablc on the books of the association in such
manner as may be prescribed in the by-laws or
articles of association; and every person becom-
ing shareholder by such transfer SHALL in pro-
portion to his shares succeed to all the rights and
liabilities of the prior holder of such shares and
change shall be made in the articles OF associa
tion by which the rights, remedies, or security of
the existing creditors of the association shall be
impaired. For all debts, contracted by such as
sociation for circulation, deposits, otherwise,
each shareholder shall be liable to the amount, at
their par value, of the shares held by him in addi-
tion to the amount invested in such shares.


Sec. IL. And be it further enacted, That it shall
be lawful for any association formed under this
act, by its articles of association to provide Tor
an increase of its capital from time to time as
may be deemed eXpedent subject to the Hmita-
tions of this act; but no such increase shall be
valid until the increased capital shall be paid in,
and notice thereof shall have been transmitted to
the comptroller of the currency, and his certif-
cate obtained, specifying the amount of such in
crease of capital stock, and that the same has
been duly paid 10 such association.


Sec. IA. And be it further enacted, That it shall
be lawful for any such association to purchase,
hold, and convey real estate as follows:


First. Such as shall be necessary for its i'm
mediat accommodation in the transaction of its
business.





good faith by way of security for loans made by
such association, or for moneys due thereto. =.


Third. Such as shall be conveyed to it in salts
faction of debts previously contracted in the
course of its dealings.


Fourth. Such it shall purchase at sales un-
der judgments, DEGREES, or mortgages held by
such association.


Such association shall not purchase or hold real
estate in any other case or for any other purpose
than as specified in this section.


Sec. Is. And be it further enacted, That every
association, after having complied with the pro-
visions of this act preliminary to the commence
ment of banking business under its provisions,
shall transfer and deliver to the treasurer of the
United States any United States bonds bearing
interest to an amount not less than third of
the capital stock paid in which bonds shall be
deposited with the treasurer of the United States,
and by him safely kept in his Office until the same
shall be otherwise disposed of, in pursuance of
the provisions of this act.


Sec. l6. And be it further enacted, That upon
the making of any such transfer and delivery, the
association making the shall be entitled to
receive from the comptroller of the currency cir
culating notes of different denominations, in
blank. registered and countersigned as hereinafter
provided, equal in amount to ninety per centum
of the current market value of the United States
bonds SO transferred and delivered, but not ex-
he hearu int