To Withdraw Circulation and Take Up Bonds Deposited.

Any association desiring to withdraw its circulating notes, in whole or in part, may, upon the deposit of lawful money with the Treasurer of the United States in sums not less than $9000.00, take up the bonds which said association has on deposit with the Treasurer for the security of such circulating notes, which bonds shall be assigned to the bank in the manner specified, and the outstanding notes of said association, to an amount equal to the legal tender notes deposited, shall be redeemed at the Treasury of the United States, and destroyed as now provided by law. Provided, that the amount of bonds on deposit for circulation shall not be reduced below $50,000.00. Exemption as to an Association Consolidating With Another.

An association which is in good faith winding up its business for the purpose of consolidating with another association shall not be required to deposit lawful money for its outstanding circulation; but its assets and liabilities shall be reported by the association with which it is in process of consolidation.

Examination by Special Agent.

On receiving notice that any national banking association has failed to redeem any of its circulating notes, the Comptroller of the Currency, with the concurrence of the Secretary of the Treasury, may appoint a special agent, of whose appointment immediate notice shall be given to such association, who shall immediately proceed to ascertain whether it has refused to pay its circulating notes in the lawful money of the United States, when demanded, and shall report to the Comptroller the fact so ascertained. If, from such protest and the report so made, the Comptroller is satisfied that such association has refused to pay its circulating notes, and is in default, he shall, within. thirty days after he has received notice of such failure, declare the bonds deposited by such association forfeited to the United States, and they shall thereupon be so forfeited.

Continuing Business After Default.

After a default on the part of the association to pay any of its circulating notes has been ascertained by the Comptroller, and notice (of forfeiture of the bonds) thereof has been given by him to the association, it shall not be lawful for the association suffering the same to pay out any of its notes, discount any notes or bills, or otherwise prosecute the business of banking, except to receive and safely keep money belonging to it, and to deliver special deposits.

Notice to Holders; Cancellation of Bonds; Redemption at Treasury.

Immediately upon declaring the bonds of an association forfeited for non-payment of its notes, the Comptroller shall give notice, in such manner as the Secretary of the Treasury shall, by general rules or otherwise, direct, to the holders of the circulating notes of such association, to present them for payment to the Treasury of the United States, and the same shall be paid as presented in lawful money of the United States; whereupon the Comptroller may, in his discretion, cancel an amount of bonds pledged by such association equal at current market rates, not exceeding par, to the notes paid.

Appointment of Receivers.

On becoming satisfied that any association has refused to pay its circulating notes as herein mentioned, and is in default, the Comptroller of the Currency may forthwith appoint a receiver, and require of him such bonds and security as he deems proper. Such receiver, under the direction of the Comptroller, shall take possession of the books, records, and assets of every description of such association, collect all debts, dues, and claims belonging to it, and, upon the order of a court of record of competent jurisdiction, may sell or compound all bad or doubtful debts, and, on a like order, may sell all the real and personal property of such association, on such terms as the court shall direct, and may, if necessary to pay the debts of such association, enforce the individual liability of the stockholders. Such receiver shall pay over all money so made to the Treasury of the United States, subject to the order of the Comptroller, and also make report to the Comptroller of all his acts and proceedings.

Votes for Agent on Shares of Deceased Owners-How Given.

In selecting an agent, administrators or executors of deceased shareholders may act and sign as the decedent might have don : if living, and guardians may so act and sign for their ward or wards.

Notice to Present Claims,

The Comptroller shall, upon appointing a receiver, cause notice to be given, by advertisement in such newspapers as he may direct, for three consecutive months, calling on all persons who may have claims against such association to present the same, and to make legal proof thereof.

Dividends.

From time to time, after full provision has been first made for refunding to the United States any deficiency in rede ming the notes of such association, the Comptroller shall make a ratable dividend of the money so paid over to him by such receiver on all such claims as may have been proved to his satisfaction or adjudicated in a court of competent jurisdiction, and, as the proceeds of the assets of such association are paid over to him, shall make further dividends on all claims previously proved or adjudieated; and the remainder of the proceeds, if any, shall be paid over to the shareholders of such association, or their legal representatives, in proportion to the stock by them respectively held.

Injunction Upon Receivership.

Whenever an association against which proceedings have been instituted, on account of any alleged refusal to redeem its circulating notes as aforesaid, denies having failed to do so, it may, at any time within ten days after it has been notified of the appointment of an agent, apply to the nearest Circuit, or District, or Territorial Court of the United States, to enjoin further proceedings in the premises; and such court, after citing the Comptroller of the Currency to show cause why further proceedings should not be enjoined, and after the decision of the court or finding of a jury that such association has not refused to redeem its circulating notes, when legally presented, in the lawful money of the United States, shall make an order enjoining the Comptroller, and any receiver acting under his direction, from all further proceedings on account of such alleged refusal.

Fees and Expenses.

All fees for protesting the notes issued by any national banking association shall be paid by the person procuring the protest to be made, and such association shall be liable therefor; but no part of the bonds deposited by such association shall be applied to the payment of such fees. All expenses of any preliminary or other examinations into the condition of any association shall be paid by such association. All expenses of any receivership shall be paid out of the assets of such association before distribution of the proceeds thereof.

Receiver May be Appointed When National Banks Violate any Provision of Law, or Neglects for Thirty Days to Pay a Judgment, or Becomes Insolvent.

Whenever any national banking association shall be dissolved, and its rights, privileges and franchises declared forfeited, or whenever

any creditor of any national banking association shall have obtained a judgment against it in any court of record, and made application, accompanied by a certificate from the clerk of the court stating that such judgment has been rendered and has remained unpaid for the space of thirty days, or whenever the Comptroller shall become satisfied of the insolvency of a national banking association, he may, after due examination of its affairs, in either case, appoint a receiver, who shall proceed to close up such association, and enforce the personal liability of the shareholders.

Appointment of Occasional Examiners.

The Comptroller of the Currency, with the app:oval of the Secretary of the Treasury, shall, as often as he deems necessary or proper, appoint a suitable person or persons to make an examination of the affairs of every banking association, who shall have power to make a thorough examination into all the affairs of the association, and, in doing so, to examine any of the officers and agents thereof on oath ; and shall make a full and detailed report of the condition of the association to the Comptroller.

All persons appointed to be examiners of national banks not located in the redemption cities, or in any one of the States of Oregon, California, and Nevada, or in the Territories, shall receive compensation for such examination as follows: For examining national banks having a capital less than $100,000, $20; those having a capital of $100,000 and less than $300,000, $25; those having a capital of $300,000 and less than $400,000, $35; those having a capital of $400,000 and less than $500,000, $40; those having a capital of $500,000 and less than $600,000, $50; those having a capital of $600,000 and over, $75; which amounts shall be assessed by the Comptroller of the Currency upon, and paid by, the associations so examined, and shall be in lieu of the compensation and mileage heretofore allowed for making said examinations; and persons appointed to make examination of national banks in the cities, or in any of the States of Oregon, California, Nevada, or in the Territories, shall receive such compensation as may be fixed by the Secretary of the Treasury upon the recommendation of the Comptroller of the Currency, and the same. shall be assessed and paid in the manner hereinbefore provided.

Limit of Visitorial Powers.

No association shall be subject to any visitorial powers other than those authorized by law, or vested in the courts of justice.

Transfers-When Void.

All transfers of the notes, bonds, bills of exchange, or other evidences of debt owing to any national banking association, or of deposits to its credit; all assignments of mortgages, sureties on real estate, or of judgments or decrees in its favor; all deposits of money, bullion, or other valuable thing for its use or for the use of any of its shareholders or creditors; and all payments of money to either, made after the commission of an act of insolvency, or in contemplation thereof, made with a view to prevent the application of its assets in the manner prescribed, or with the view to the preference of one creditor to another, except in payment of its circulating notes, shall be utterly null and void; and no attachment, injunction, or execution shall be issued against such association or its property before final judgment in any suit, action, or proceeding in any State, county, or municipal court.

Use of the Title "National."

All banks not organized and transacting business under the national currency laws, and all persons or corporations doing the business of bankers, brokers, or savings institutions, except savings banks authorized by Congress to use the word "national" as a part of their corporate name, are prohibited from using the word "national" as a portion of the name or title of such bank, corporation, firm, or partnership; and any violation of this prohibition shall subject the party chargeable therewith to a penalty of $50 for each day during which it is committed or repeated.

Bank Bookkeeping.

The opening entries for the books of National Banks are always founded on actual values, and are therefore very simple. The number and forms of books used in a bank depend upon the volume of business, the cashier's preference as to a system of accounting, and the knowledge and ability of the head bookkeeper. The details of a banking business are uniform and simple; the main difference in different institutions is from the extent rather than from the character of the business. The difference lies in the classification of labor, rather than in the character of the entries or the avenues of profit.

Ex. 284. The Union National Bank of Cleveland was incorporated with a Capital Stock of $1,000,000, 10,000 shares, par value $100.