Year: 1866




be the duty of the comptroller of the currency to


receive wornout or mutilated circulating notes
| issued by any such banking association, and to


deliver in place thereof to such association other


blank circulating notes to an equal amount; and


such worn-out or mutilated notes, after memo


randum shall have been entered in the proper


books in accordance with such regulations as


may be established by the comptroller, as well as


all circulating notes which shall have been paid


or surrendered tOsbe cancelled, shall be burned
| to ashes in presence of three persons, one to be
appointed by the Secretary of the Treasury, one


by the comptroller of the currency, and one by


the Treasurer of the United States, uuder such


regulations as the Secretary of the Treasury may


prescribe; and in case such notes shall have been


delivered to the comptroller by officer agent


OF such association then in the presence, also, of
such officer or agent; and certificate of such


burning, signed by the parties SO appointed shall


be made in the books of the controller and a
duplicate thereof given to such officer agent.


Sec. 33. And be it further enacted, That it shall


be unlawful for any officer acting under the pro-
visions OF this act to countersign or deliver to
any such association or to any other company or
person, any circulating notes contemplated by
this act, except as hereinbefore provided, and in
accordance with the true intent and meaning of
this act and any officer who shall violate the pro-
visions of ts section shall be deemed guilty of
high misdemeanor, and conviction thereof
shall be published by fine not exceeding double
the amount so countersigned and delivered, and
discretion of the court in which he shall be tried
Sec. "a. And be it further enacted, That all
tees for protesting the notes issued by any such
| banking association shall be paid by the person
procuring the protest TO be made, and such bank
ing association shall be liable therefor; but no
! part OF the stock pledged by such banking asso-
citation, as aforesaid, shall be applied to the pay
lnent OF such fees: and all expenses of any pre-
liminary other examinations into the condi-
ton of any association shall be paid by such asso-
citation; and all expenses of any receivership
shall be paid out of the assets of such association
before distribution of the proceeds thereof.
| Sec. 35. And be it further enacted, That the
stockholders collectively, of any such associa-
ton shall at no time be liable to such association
either as principal debtors sureties. BOTH to
an amount greater than three tifths of the capital
stock actually paid in and remaining undiminish-
ed by losses or otherwise; nor shall the directors
be so liable, except to such amount and in such


manner as shall be prescribed by the bylaws of
| such association adopted by its stockholders to
| regulate such liabilities.


Sec. 81. And be it further enacted, That the
capital stock of any association formed under
this act shall be divided into shares of one hun
dred dollars each, and shall be aSsignable on the
books of the association in such manner its by
laws shall prescribe; but no shareholder in any
association under this act shall have power to sell
! or transfer and share held in his own right so
long he shall be liable, either as principal
debtor, surety, or otherwise, to the association
for any debt which shall have become due and re-
main unpaid, nor in any case shall such share
holder be entitled to receive any dividend, inter
est or profit on such shares long as such
liabilities shall continue, but all such dividends
interests and profits shall be retained by the as
sociation, and applied to the discharge eff such
liabilities; and stock shall be transferred with
out the consent of a ajority OF the directors
while the holder thereof is thus indebted to the
| association.


See 81. And be it further enacted That no
banking association shall take security tor any
loan or discount, lieu upon any part of its capt
tai stock but the same security, both in kind and
amount, shall be required of shareholders of
other persons and no such banking association
shall be the purchaser or holder of any portion of
its capital stock, or of the capital stock OF any
other Incorporated company, unless such purchase
shall be necessary to prevent loss upon debt
previously contracted in good faith, on security
which, at the time, was deemed adequate to in
the payment of such debt, Independent of
any lieu upon such stock or in case of forfeiture
of stock for the non-payment o. instalments due
thereon, and stock so purchased or acquired, shall
IN no case be held by such association purchas-
ing tor longer period of time than six months,


if the same can, within that time, be sold for what
the stock cost.


See. 81. And be it further enacted, That in all
elections of directors, and in deciding all ques,-
tions at meetings of shareholders, each SHARE
holder shall be entitled to one vote each share
of stock held by him; shareholders may vote by
clerk, teller, or boOk-keeper of such association
shall act proxy; and no stockhoder whose
liability is past due and unpaid shall be allowed
to vote.


Sec. 50. And be it further enacted, That the
affairs of every such association shall be managed
by not less than five than nine directors,
one of whom shall be president of the associa-
ton every director SHALL during his whole term
of service be a citizen of the United States and
resident of the state in which such association is
located. AT least three tourths of the directors
shall have resided in the state in which such as
sociation is located one year next proceeding their
election directors; and each director shall own
in his own right, at least one per centum OF the
stock
two hundred thousand dollars, and the half of one
per centum of its, capital if over two hundred
thousand dollars Each director shall take an oath
that he will, SO far as the duty devOlves on him,
diligently and honestly administer the affairs of
such association, and will not knowingly violate,
or willingly permit to be violated any of the pro-
visions OF this act, and that he is the bona tde
owner, in his own right, of the shares of stock
standing in his name on the books of the associa-
ton, and that the same Is not hypothecated, or
in any way pledged, security for any loan OBJ
tanned or debt owing to the association of which
he is director, which oath, subscribed oy MN
taken, shall be Immediately transmitted to the
comptroller of the currency, and by him filed and


Sec 40 And be it further enacted, That the
directors any such association first elected shall
hold their places until their successors shall he
elected and qualified All subsequent elections
shall be held annually, on such day in the month
of January the stockholders of said association
may prescribe; and the directors so elected shall
hold their places for one year. and until theirs
cessors are elected and qualified But any direc-
tor removing from the state, Or ceasing to be the
owner of the requisite amount of stock, shall
thereby vacate his place. Amy vacancy in the
board shall be filed by appointment by the re-
naming directors. The director so appointed shall
hold his place until the next annual election and
if, from any cause an election of directors shall
not be made at the time appointed, the associa-
ton shall not for that cause be dissolved, but an
election may be held any subsequent day. thirty
days notice thereof having been given in a news
paper printed, or of general circulation, in the
city, town. or county in which the association is
located, and if no newspaper is published in such
city, town, or county, such notice shall be pub
lshcd in newspaper in the county adjoining


Sec. Al. And be it further enacted, That every
such association shall at all times have on hand,
in lawful money Of the United States an amount
equal TO at least twenty-five per ceutum of the
aggregate amount off outstanding notes of cir
culation and its deposits; and whenever the
amount ofits outstanding notes OF circulation and
its deposits shall exceed the abovenamed proper
ton for the space of twelve days, whenever
such lawful money of the United States shall at
any time fall below the amount of twenty five per
centum of its circulation and deposits, such as
socaton shall not increase its liabilities by max
ing any new loans of discounts otherwise than by
discounting or purchasing bills of exchange, pay
able at sight, nor make dividend of its profits,
until the required proportion between the aggre-
gate amount of its outstanding notes of cireula-
ton and its deposits and lawful money OF the
United States shall be T., stored: Provided how
ever, That clearing house certificates represent
ing specie or lawful money specially deposited
for the purpose ofany clearing house association,
shall be deemed TO be lawful money in the pos
session of any association belonging to such
clearing house holding and owning such eertif,
cafes, and considered to be part OF the lawful
money which such association is required to have,
under the foregoing provisions of this section:
DrOxJ dad fnrth thnr hat t>ofo n ~ ~ Y