the law and was authorized to do banking business, was competent evi-
dence, and in connection with proof that the association had done bank-
ing business for several years, and the fact that the note was in terms
payable at the bank, makes a prima facie case. Mix v. National Bank of
Bloomington, 232.
Foreign, transfer of stock by.] See TRANSFER OF STOCK, 187.
Of trustee from personal liability.] See TRUSTEE, 110.
Jurisdiction of State court.] A teller of a National bank may be tried by a
State court for fraudulently making false entries in the bank books, with
intent to defraud the bank. Luberg v. Commonwealth, 408.
Liberal, not favored.] See NATIONAL CURRENCY ACT, 9.
1. Of notes by bank-authority of vice-president.] The vice-president of a
National bank, upon making a transfer for value of certain notes belong-
ing to the bank (the bank being the correspondent of the transferee), exe-
cuted this guaranty: “In accordance with your telegram I herewith hand
you ten notes of $5,000 each." "We debit your account $50,000." "This
bank hereby guarantees the payment of the principal sum and interest of
said notes." This was done in behalf of the bank, and the notes were
also indorsed by the same individual as vice-president of the bank. It was
done with the knowledge and consent of the president and cashier of the
bank, but without authority of the directors, as a board, or the majority of
its members individually. Held, that the bank was liable on the guaranty.
People's Bank of Belleville v. Manufacturers' National Bank of Chicago,
2. Lending of credit by.] A National bank, upon the deposit of collateral
security with it, has no power to guarantee the obligation of the person
making such deposit. Seligman v. Charlottesville National Bank, 195.
Form.] Any thing that forms a part of the description of the crime is not a
"matter of form " within the meaning of the National Bank Act. United
States v. Conant, 148.
See STOCKHOLDER, 144, 146; TRUSTEE, 110; ADMINISTRATOR, 115.
1. By married woman charging her estate— not a mortgage.]
by a married woman, expressly charging her estate with the payment of
the note, is such a security as a National bank may take. Third National
Bank v. Blake, 300.
2. By National bank and procural of discount
title to such paper.] A Na-
tional bank agreed with the maker of notes to procure their discount for
a commission, and indorsing them under an accommodation indorser, pro-
cured their discount by another National bank, before maturity, in good
faith, and without notice. The notes being dishonored, the bank indorser
took them up, and sued the accommodation indorser. Held, that the
action was maintainable. National Bank of Gloversville v. Wells, 333.
Accommodation.] See UsURY, 305.
INJUNCTION.
See TAXATION, 219.
Rate of] Under the National Banking Act, any National bank in Penn-
sylvania can charge and take the same rate of interest as any State bank
of issue is authorized to charge. First National Bank of Mt. Pleasant v.
Tinstman, 182.
INTERPLEADER.
See JURISDICTION, 104.
JUDICIAL NOTICE.
See EVIDENCE, 382.
For damages against insolvent bank - payment of] See TRANSFER OF
STOCK, 47.
1. Of Federal courts.] The Federal Circuit Court has unconditional jurisdic
tion of all suits to which a National bank is a party, irrespective of
amount or citizenship. Mitchell, for use of First National Bank of Butler,
v. Walker, 180.
-] Where the State and the Federal courts have concurrent jurisdic-
tion, a State statute of limitation may be pleaded as effectively in a Fed-
eral court as it could be in a State court; and in such cases the Federal
courts will follow the decisions of the local State tribunals and will ad-
minister the same justice which the State courts would administer
between the same parties. Price, receiver, v. Yates, 204.
of suits by banks.] National banks are not authorized to institute suits
in the Federal courts out of the districts where they are established, when
the amount in controversy does not exceed $500. St. Louis National
Bank v. Brinkman, 141.
removal.] A National bank, sued in a State court, cannot enforce the
removal of the cause to the Federal court on the ground that the latter
has exclusive jurisdiction. Pettilon v. Noble, 120.
local and transitory actions.] The provision of the National Bank Act in
relation to suits against National banks, section 5198, that "suits, actions,
and proceedings against any association under this title, may be had
in any circuit, district or territorial court of the United States, held
within the district in which such association may be established, or in
any State, county, or municipal court in the county or city in which said
association is located, having jurisdiction in similar cases," held, to apply
to transitory actions only, and not to such actions as are by law local in
their character. Casey, receiver of New Orleans National Banking Asso-
ciation, v. Adams, 102.
6. Of State courts.] State courts have jurisdiction of questions arising under
the National Banking Act. Pickett v. Merchants' National Bank of Mem-
phis, 209.
7. Bill in equity.] The District Court of the United States has jurisdiction
of a bill in equity filed by a National bank. Fifth National Bank of
Pittsburgh v. Pittsburgh and Castle Shannon Railroad Company, 190.
8. Cancellation of mortgage.] A proceeding against a National bank for the
cancellation of a mortgage may be brought in a parish of Louisiana
where the bank is not situated. Section 5198 of the National Bank Act
does not exclude other forums than those specified, and relates only to
actions to recover usurious interest. New Orleans Banking Association
v. Adams, 207.
9. Cross-bill-interpleader.] The Federal courts have jurisdiction over all
suits by and against National banks, irrespective of the subject-matter.
Joining merely nominal or personal parties has no effect either to confer
or exclude the jurisdiction; but trustees, executors and the like are not
formal parties, within the meaning of the rule, where in fact interested
in the litigation. Accordingly, where two or three persons, claiming a
certain fund which was in the custody of a National bank, brought their
bill in equity against the bank and a third claimant, and the bank ex-
hibited its cross-bill, praying that the parties might interplead, held to
confer jurisdiction. Foss v. First National Bank of Denver, 104.
-on contract.] A State court has jurisdiction of an action on contract
brought by a resident of the State against a National bank located in an-
other State, and except as against a National bank which has committed
or is contemplating an act of insolvency. Robinson v. National Bank of
New Berne, 309.
to recover illegal interest.] State courts have jurisdiction of actions
to recover illegal interest reserved by National banks upon loans. Bletz
v. Columbia National Bank, 366.
See EMBEZZLEMENT, 404; FRAUDULENT ENTRIES, 408; TAXATION, 74;
USURY, 382, 395, 421.
A city has no power to exact a license fee from a National bank. City of
Carthage v. First Nat. Bank of Carthage, 279.
Of bank.] See TAXATION, 177.
MARRIED WOMAN.
See INDORSEMENT, 300.
MORTGAGE.
Power to enforce.] A National bank, organized as successor to a State bank,
may maintain an action to foreclose a mortgage of real estate executed to
the State bank as security for a note, and assigned to it by the State bank
on the formation of the National bank. Scofield v. State Nat. Bank of
Lincoln, 280.
As security.] See REAL ESTATE, 222, 224, 227, 237, 293, 300, 424, 426.
No power to exact license fee.] See LICENSE, 279; TAXATION, 219.
Construction of liberal forfeitures not favored.] The National Currency Act
should be liberally construed to effect the ends for which it was passed,
but a forfeiture under its provisions should not be declared unless the
facts upon which it rests are clearly established. In case of a claim of
forfeiture against a bank for taking unlawful interest upon the discount
of bills of exchange payable at another place, it should appear affirma-
tively that the bank knowingly received or reserved an amount in excess
NATIONAL CURRENCY ACT-Continued.
of the statutory rate of interest and the current exchange for sight drafts.
Accordingly, where it was not shown what the rate of exchange was, a
charge of one-quarter of one per cent in addition to the statutory rate of
interest would not be sufficient to authorize a forfeiture. Wheeler v. Union
Nat. Bank of Pittsburg, 9.
Liability for loss of special deposit.] See DEPOSITS FOR SAFE-KEEPING, 64.
1. Conflict of law.] The courts of the United States, in determining questions of
general commercial law, are not controlled by the decisions of a State
court, even in an action instituted by a National bank, located in the State
rendering such decision, against one of its own citizens, upon a negotiable
note there executed and payable. Such decisions, not based upon local
legislative enactments, are not “laws" within the meaning of the Federal
statute, which provides that "the laws of the several States, except
where the Constitution, treaties or statutes of the United States otherwise
require or provide, shall be regarded as rules of decision in trials at com-
mon law in the courts of the United States, in cases where they apply."
Brooklyn City and Newtown R. R. Co. v. Nat. Bank of the Republic, 90.
2. Power to purchase.] A bank, empowered to discount negotiable notes, has
power to purchase such notes. Pape v. Capitol Bank of Topeka, 238.
3. -] National banks have no power to purchase negotiable paper except
from surplus capital. Lazear v. Nat. Union Bank of Baltimore, 261.
4. Coupons.] A National bank may take, hold and sue upon coupons issued
with and annexed to town bonds, but payable to bearer and separated
from the bonds, and assumpsit is the proper form of action. First Nat.
Bank of North Bennington v. Town of Bennington, 437.
NON-RESIDENTS.
See TAXATION, 350.
Purchase of.] See NEGOTIABLE PAPER, 238, 261; ACTION, 266, 273.
1. Of National bank --- power to bind bank away from banking-house.] Although
the duties of the president of a National bank are generally transacted
at its place of business, yet the bank will be bound by his acts, within the
apparent scope of his authority, although performed away from the place
where the bank is situated, and even in another State, when the bank is
informed of them and does not object, and there is no fraud. Burton,
receiver of First Nat. Bank of La Crosse, v. Burley, receiver, 134.
may borrow money of bank.] An officer of a National bank may bor-
row money of the bank. Blair v. First National Bank of Mansfield, 173.
VOL. II-76
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