Chapter 290. to enable national-banking associations to extend their corporate existence, and for other purposes
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CHAP. 290.— An Act to enable national-banking associations to extend their corporate existence, and for other purposes.July 12, 1882. *Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled*,National banking associations authorized to extend corporate existence.12 Stat., 665.13 Stat., 99.21 Stat, 66.R. S. 5133, 992.R. S. 5134, 992.R. S. 5135, 992.R. S. 5136, 993.R. S. 5154, 996.Term of succession.Forfeiture of franchise.Consent in writing of two-thirds of shareholders to amendment of articles of association.
That any national banking association organized under the acts of February twenty-fifth, eighteen hundred and sixty-three, June third eighteen hundred and sixty-four, and February fourteenth, eighteen hundred and eighty, or under sections fifty-one hundred and thirty-three, fifty-one hundred and thirty- four, fifty-one hundred and thirty-live, fifty-one hundred and thirty-six, and fifty-one hundred and fifty four of the Revised Statutes of the United States, may, at any time within the two years next previous to the date of the expiration of its corporate existence under present law, and wit h the approval of the Comptroller of t he Currency, to be granted, as hereinafter provided, extend its period of succession by amending its articles of association for a term of not more than twenty years from the expiration of the period of succession named in said articles of association, and shall have succession for such extended period, unless sooner dissolved by the act of shareholders owning two-thirds of its stock, or unless its franchise becomes forfeited by some violation of law, or unless hereafter modified or repealed.
Sec. 2.— That such amendment of said articles of association shall be authorized by the consent in writing of shareholders owning not less than two-thirds of the capital stock of the association; and the board of directors shall cause such consent to be certified under the seal of the association, by its president or cashier, to the Comptroller of the Cur- 163 FORTY-SEVENTH CONGRESS. SESS. I. CH. 290. 1882. rency, accompanied by an application made by the president or cashier for the approval of the amended articles of association by the Comptroller; and such amended articles of association shall not be valid until the Comptroller shall give to such association a certificate under hisCertified tinder sent to Comptroller of Currency for approval. hand and seal that the association has complied with all the provisions required to be complied with, and is authorized to have succession for the extended period named in the amended articles of association.
Sec. 3.— That upon the receipt of the application and certificate of theComptroller to make special examination of associations, and issue certificate. association provided for in the preceding section, the Comptroller of the Currency shall cause a special examination to be made, at the expense of the association, to determine its condition; and if after such examination or otherwise it appears to him that said association is in a satisfactory condition, he shall grant his certificate of approval provided for in the preceding section, or if it appears that the condition of said association is not satisfactory, he shall withhold such certificate of approval.
Sec. 4.— That any association so extending the period of its successionAll rights, privileges,etc., of banking associations preserved. shall continue to enjoy all the rights anti privilegesand immunities granted and shall continue to be subject to all the duties, liabilities, and restrictions imposed by the Revised Statutes of the United States and other acts having reference to national banking associations, and it shall continue to Ire in all respects the identical association it was before the extension of its period of succession: *Provided, however,* That the jurisdiction*Proviso.*Jurisdiction for ' suits. for suits hereafter brought by or against any association established under any law providing for national-banking associations, except suits between them and the United States, or its officers and agents, shall be the same as, and not other than, the jurisdiction for suits by or against banks not organized under any law of the United States which do or might do banking business where such national-banking associations may be doing business when such suits may be begun :
And all laws and parts of laws of t he United States inconsistent with this proviso be, and the same are hereby, repealed. Sec. 5.— That when any national-banking association has amendedShareholder not consenting to amendment of articles of association may withdraw. its articles of association as provided in this act, and the Comptroller has granted his certificate of approval, any shareholder not assenting to such amendment may give notice in writing to the directors, within thirty «lays from the date of the certificate of approval, of his desire to withdraw from said association, in which case he shall be entitled toConditions of withdrawal. receive from said banking association the value of the shares so held by him, to be ascertained by an appraisal made by a committee of three persons, one to be selected by such shareholder, one by the directors, and the third by the first two; and in case the value so fixed shall not be satisfactory to any such shareholder, be may appeal to the Comptroller of the Currency, who shall cause a reappraisal to be made, which shall be final and binding; and if said reappraisal shall exceed the value fixed by said committee, the bank shall pay the expenses of said reappraisal, and otherwise the appellant shall pay said expenses; and the value so ascertained and determined shall be deemed to be a debt due, and be forthwith paid, to said shareholder from said bank; and the shares so surrendered and appraised shall, after due notice, be sold at public sale, within thirty days after the final appraisal provided in this section: *Provided,* That in the organization of any banking association*Proviso* intended to replace any existing banking association, and retaining the name thereof, the holders of stock in the expiring association shall be entitled to preference in the allotment of the shares of the new association in proportion to the number of shares held by them respectively in the expiring association.
Sec. 6.— That the circulating notes of any association so extendingRedemption and destruction of certain circulating notes.18 Stat., 123. the period of its succession which shall have been issued to it prior to such extension shall be redeemed at the Treasury of the United States, as provided in section three of the act of June twentieth, eighteen hundred and seventy-four, entitled “An act fixing the amount of United States notes, providing for redistribution oi national-bank currency, 164 and fur other purposes,” and such notes when redeemed shall be Deposit of lawful money with Treasurer U.
S., for redemption of circulating notes, etc.R. S. 5222, 1010.R. S. 5224, 1010.R. S. 5225, 1010.Gains from failure to pro sent notes for redemption or inure to benefit of U. S.New notes to be issued distinguishable from the old.Cost of plates for notes reimbursed to Treasury by banking associations.*Proviso.*forwarded to the Comptroller of the Currency, and destroyed as now provided by law ; and at the end of three years from the date of the extension of the corporate existence of each bank the association so extended shall deposit lawful money with the Treasurer of the United States sufficient to redeem the remainder of the circulation which was outstanding at the date of its extension, as provided in sections fifty- two hundred and twenty-two, fifty-two hundred and twenty-four, and fifty-two hundred and twenty five of the Revised Statutes; and any gain that may arise from the failure to present such circulating notes for redemption shall inure to the benefit of the United States; and from time to time, as such notes are redeemed or lawful money deposited therefor as provided herein, new circulating notes shall be issued as provided by this act, bearing such devices, to be approved by the Secretary of the Treasury, as shall make them readily distinguishable from the circulating notes heretofore issued: *Provided however, *That each banking association which shall obtain the benefit of this act shall reimburse to the Treasury the cost of preparing the plate or plates for such new circulating notes as shall be issued to it.
Sec. 7. Closing of banking associations not accepting provisions of this net.R.S. 5221, 1010.R. S. 5223, 1010. That national-banking associations whose corporate existence has expired or shall hereafter expire, and which do not avail themselves of the provisions of this act, shall be required to comply with the provisions of sections fifty-two hundred and twenty one anti fifty-two hundred and twenty-two of the Revised Statutes in the same manner as if the shareholders had voted to go into liquidation, as provided in section R.
S. 5220, 1010.R. S. 5224, 1010.R. S. 5225, 1010.fifty-two hundred and twenty of the Revised Statutes; and the provisions of sections fifty-two hundred and twenty-four and fifty-two hundred and twenty-five of the Revised Statutes shall also be applicable to such associations, except as modified by this act; and the franchise of such association is hereby extended for the sole purpose of liquidating their affairs until such affairs are finally closed. Sec. 8. Bonds for security of circulation not to exceed one-fourth of capital stock; banks with bonds deposited in excess to reduce ciculation.
That national banks now organized or hereafter organized, having a capital of one hundred and fifty thousand dollars, or less, shall not be required to keep on deposit or deposit with the Treasurer of the United States United States bonds in excess of one fourth of their capital stock as security for their circulating notes ; but such banks shall keep on deposit or deposit with the Treasurer of the United States the amount of bonds as herein required. And such of those banks having on deposit bonds in excess of that amount tire authorized to reduce their circulation by the deposit of lawful money as provided by law ;
Circulation in no case to exceed ninety per centum of oar value of bonds deposited.*Provisos.**provided* That the amount of such circulating notes shall not in any case exceed ninety per centum of the par value of the bonds deposited as herei n provided: *Provided further,* That the national banks which shall hereafter make deposits of lawful money for the retirement in full of their circulation shall at the time of their deposit be assessed for the cost of transporting and redeeming their notes then outstanding, a sum equal to the average cost of the redemption of national-bank notes during the preceding year, and shall thereupon pay such assessment.
And all national banks which have heretofore made or shall hereaf ter make deposits of lawful money for the reduction of their circulation shall be Assessments for transportation and redemption of circulation outstanding.18 Stat., 123.assessed and shall payan assessment in the manner specified in section three of the act approved June twentieth, eighteen hundred and seventy-four, for the cost of transporting and redeeming their notes redeemed from such deposits subsequently to June thirtieth, eighteen hundred 18 Stat., 123.and eighty-one.
Sec. 9. That any national b inking association now organized, or hereafter organized, desiring to withdraw its circulating notes, upon a deposit of lawful money with the Treasurer of the United States, as provided in section four of the act of June twentieth, eighteen hundred and Withdrawal of circulation and deposit of lawfulseventy-four, entitled “An act fixing the amount of United States notes, providing for a redistribution of iiational-bauk currency, and for other purposes,” or as provided in this act, is authorized to deposit lawful 165 money and withdraw a proportionate amount of the bonds held as securitymoney therefor in the order of deposit.Increase of circulation, when.Limit to deposit of lawful money in any one month.*Provisos.* for its circulating notes in the order of such deposits; and no national bank which makes any deposit of lawful money in order to withdraw its circulating notes shall be entitled to receive any increase of its circulation for the period of six months from the time it made such deposit of lawful money for the purpose aforesaid: *Provided,* That not more than three millions of dollars of lawful money shall be deposited during any calendar month for this purpose: *And provided further, *That the provisions of this section shall not apply to bonds called forBonds called for redemption exempt from provisions of this net.R.S. 5159, 997.R.S. 5160, 997.18 Stat., 123. redemption by the Secretary of the Treasury, nor to the withdrawal of circulating notes in consequence thereof.
Sec. 10. That upon a deposit of bonds as described by sections fifty- one hundred and fifty-nine and fifty-one hundred and sixty, except as modified by section four of an act entitled “An act fixing the amount of United States notes, providing for a redistribution of the national-bank currency, and for other purposes,” approved June twentieth, eighteen hundred and seventy-four, and as modified by section eight, of this act,Association, upon deposit of bonds, to receive circulating notes in blank, etc.Circulation not to exceed ninety per c e n turn of paid-in capital stock.R.
S. 5171, 999, repealed.11. S. 5176, 1000, repealed.Three and a half per cent, bonds received in exchange for three per cent, registered bonds. the association making the same shall be entitled to receive from the Comptroller of the Currency circulating notes of different denominations, in blank, registered and countersigned as provided by law, equal in amount to ninety per centum of the current market value, not exceeding par, of the United States bonds so transferred and delivered, and at no time shall the total amount of such notes issued to any such association exceed ninety per centum of the amount at such time actually paid in of its capital stock; and the provisions of sections fifty-one hundred and seventy-one and fifty-one hundred and seventy-six of the Revised Statutes are hereby repealed.
Sec. 11. That the Secretary of the Treasury is hereby authorized to receive at the Treasury any bonds of the United States bearing three and a half per centum interest, and to issue in exchange therefor an equal amount of registered bonds of the United States of the denominations of fifty, one hundred, five hundred, one thousand, and ten thousand dollars, of such form as he may prescribe, bearing interest at the rate of three per centum per annum, payable quarterly at the Treasury of the United States.
Such bonds shall be exempt from all taxationExemption from tax, etc.*Proviso.* by or under State authority, and be payable at the pleasure of the United States: *Provided,* That the bonds herein authorized shall not be called in and paid so long as any bonds of the United States heretofore issued bearing a higher rate of interest than three per centum, and which shall be redeemable at the pleasure of the United States, shall be outstanding and uncalled. The last of the said bonds originally issued under this act, and their substitutes, shall be first called in, and this order ofGold certificates issued in exchange for deposits of gold coin,Gold received held for redemption of certificates.Certificates held by banking associations counted as part of lawful reserve.Associations prohibited from membership in clearing houses not receiving gold and silver certificates in settlement of balances.*Proviso.*Suspension of issue of gold certificates, when.R.S. 5207, 1007. payment shall be followed until all shall have been paid.
Sec. 12. That the Secretary of the Treasury is authorized and directed to receive deposits of gold coin with the Treasurer or assistant treas urers of the United States, in sums not less than twenty dollars, and to issue certificates therefor in denominations of not less than twenty dol hits each, corresponding with the denominations of United States notes. The coin deposited for or representing the certificates of deposits shall be retained in the Treasury for the payment of the same on demand.
Said certificates shall be receivable for customs, taxes, and all public dues, and when so received may be reissued; and such certificates? as also silver certificates, when held by any national-banking association, shall be counted as part of its lawful reserve; and no national-banking association shall be a member of any clearinghouse in which such certificates shall not be receivable in the settlement of clearinghouse balances: *Provided,* That the Secretary of the Treasury shall suspend the issue of such gold certificates whenever the amount of gold coin and gold bullion in the Treasury reserved for the redemption of United States notes falls below one hundred millions of dollars; and the provisions of section fifty two hundred and seven of the Revised Statutes shall be applicable to the certificates herein authorized and directed to be issued. 166 FORTY-SEVENTH CONGRESS.
SESS. I. CH. 290, 291. 1882. Sec. 13. Penalty for falsely certifying checks.15 Stat., 355.R. S. 5208, 1007. That any officer, clerk, or agent of any national-banking association who shall willfully violate the provisions of an act entitled “An act in reference to certifying checks by national banks,” approved March third, eighteen hundred and sixty-nine, being section fifty-two hundred and eight of the Revised Statutes of the United States, or who shall resort to any device, or receive any fictitious obligation, direct or collateral, in order to evade the provisions thereof, or who shall certify checks before the amount thereof shall have been regularly entered to the credit of the dealer upon the books of the banking association, shall be deemed guilty of a misdemeanor, and shall, on conviction thereof in any circuit or district court of the United States, be fined not more than five thousand dollars, or shall be imprisoned not more than five years, or both, in the discretion of the court.
Sec. 14. That Congress may at any time amend, alter, or repeal this act and the acts of which this is amendatory. Approved, July 12, 1882.