Chapter CCLVII. to require national Banks going into Liquidation to retire their circulating Notes
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CHAP. CCLVII.— An Act to require national Banks going into Liquidation to retire their circulating Notes.July 14, 1870. *Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,* That every bank that has heretoforeNational banks that have gone, or shall go, into liquidation, to deposit lawful money for outstanding circulation. gone into liquidation under the provisions of section forty-two of the national currency act, shall be required to deposit lawful money of the United States for its outstanding circulation within sixty days from the date of the passage of this act.
And every bank that may hereafter go into liquidation shall be required to deposit lawful money of the United States for its outstanding circulation within six months from the date of the vote to go into liquidation; whereupon the bonds pledged as securityBonds then to be surrendered. for such circulation shall be surrendered to the association making such deposit. And if any bank shall fail to make the deposit and take up itsIf bank fails to make deposit, &c. comptroller may sell bonds at auction in New York. bonds for thirty days after the expiration of the time specified, the comptroller of the currency shall have power to sell the bonds pledged for the circulation of said bank at public auction in New York city, and after providing for the redemption and cancellation of said circulation, and the necessary expenses of the sale, to pay over any balance remaining from the proceeds to the bank, or its legal representative: *Provided,* ThatCertain banks exempt from this act banks which are winding up in good faith for the purpose of consolidating with other banks shall be exempt from the provisions of this act: *And provided further,* That the assets and liabilities of banks so in liquidationAssets to be reported. shall be reported by the banks with which they are in process of consolidation.
Approved, July 14, 1870.