1886, sec.

C. 73,

Stat. L., 19.

Currency; but no change of name or location shall be valid until the Comptroller shall have issued his certificate of approval of the same.

DEBTS NOT AFFECTED BY CHANGE. ACT MAY 1, 1886. Act May 1, 22. Sec. 3.-All debts, liabilities, rights, provisions, and 3; 24 powers of the association under its old name shall devolve upon and inure to the association under its new name. NO RELEASE FROM LIABILITIES. ACT MAY 1, 1886. 23. Sec. 4.-Nothing in this act contained shall be so 24 construed as in any manner to release any national bankStat. L., 19. ing association under its old name or at its old location from any liability, or affect any action or proceeding in law in which said association may be or become a party or interested.

Act May 1, 1886, C. 73, sec. 4;

Act Mar. 3, 1887, sec. 4;

554.

sec. 4; 25

NATIONAL BANKS DEEMED CITIZENS OF STATES IN
WHICH LOCATED. ACT AUGUST 13, 1888.

24. Sec. 4. All national banking associations estab24 Stat. L., lished under the laws of the United States shall, for the Act Aug. 13, purposes of all actions by or against them, real, personal, 1888, c. 866, or mixed, and all suits in equity, be deemed citizens of Stat. L., 436. the States in which they are respectively located; and in such cases the circuit and district courts shall not have jurisdiction other than such as they would have in cases between individual citizens of the same State. The provisions of this section shall not be held to affect the jurisdiction of the courts of the United States in cases commenced by the United States or by direction of any officer thereof, or cases for winding up the affairs of any such bank.

Act July 12, 1882, c. 290,

sec.

1;

EXTENSION OF CORPORATE EXISTENCE. ACT JULY 12, 1882.

25. Sec. 1. That any national banking association or22 ganized under the acts of February twenty-fifth, eighteen Stat. L., 162. 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-five, 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 with the approval of the Comptroller of the 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.

NOTE.-Act of Feb. 14, 1880, relates to the conversion of gold banks into currency banks, and is inserted after Revised Statutes 5186.

CONSENT OF TWO-THIRDS NECESSARY. ACT JULY 12,

1882.

26. Sec. 2.-That such amendment of said articles of Act July 12, 1882, c. 290, association shall be authorized by the consent in writing sec. 2; 22 of shareholders owning not less than two-thirds of the Stat. L., 162. capital stock of the association; and the board of directors shall cause such consent to be certified under the seal of the association, by the president or cashier, to the Comptroller of the Currency, 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 his 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.

ACT

SPECIAL EXAMINATION OF BANK AND ISSUE OF CER-
TIFICATE OF APPROVAL BY COMPTROLLER.
JULY 12, 1882.

1882, C. 290,

27. Sec. 3. That upon the receipt of the application Act July 12, and certificate of the association provided for in the pre-sec. 3; 22 ceding section, the Comptroller of the Currency shall Stat. L., 163. 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.

STATUS NOT CHANGED BY EXTENSION, JURISDICTION

OF SUITS BY OR AGAINST NATIONAL BANKS. ACT
JULY 12, 1882.

1882, c. 290,

28. Sec. 4. That any association so extending the Act July 12, period of its succession shall continue to enjoy all the sec. 4; 22 rights and privileges and immunities granted and shall Stat. L., 163. 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 be in all respects the identical association it was before the extension of its period of succession: Provided, however, That the jurisdiction 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

88020°-11-2

Act July 12, 1882, C. 290, sec.

by or against banks not organized under any law of the United States which do or might do banking business where such national banking association may be doing business when such suits may be begun: And all laws and parts of laws of the United States inconsistent with this proviso be, and the same are hereby, repealed.

NOTE. See also act of August 13, 1888, relating to citizenship of national banks and jurisdiction of the circuit and district courts, which follows sec. 5136, page 16, ante.

DISSENTING SHAREHOLDERS

JULY 12, 1882.

MAY WITHDRAW. ACT

29. Sec. 5. That when any national banking associa5; 22 tion has amended its articles of association as provided Stat. L., 163. 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 days from the date of the certificate of approval, of his desire to withdraw from said association, in which case he shall be entitled to 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, he 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 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. REDEMPTION OF CIRCULATING NOTES ISSUED PRIOR TO EXTENSION. ACT JULY 12, 1882.

Act July 12, 1882, C. 290, sec. Stat. L., 163.

30. Sec. 6. That the circulating notes of any associa6; 22 tion so extending 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 of national bank currency, and for other purposes,'

and such notes when redeemed shall be 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.

NOTE.-Act of June 20, 1874, section 3, mentioned above, is inserted after Revised Statutes 5192. The destruction of bank notes by burning, as provided in sections 5184, 5225, Revised Statutes, is superseded by act of June 23, 1874, which requires bank notes to be macerated.

DISSOLUTION OF BANKS NOT EXTENDING PERIOD OF
SUCCESSION. ACT JULY 12, 1882.

31. Sec. 7. That national banking associations whose Act July 12, 1882, c. 290, corporate existence has expired or shall hereafter expire, sec. 7: 22 and which do not avail themselves of the provisions of Stat. L., 164. this act, shall be required to comply with the provisions of sections fifty-two hundred and twenty-one and fiftytwo 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 fifty-two hundred and twenty of the Revised Statutes; and the provisions of sections fifty-two hundred and twenty-four and fiftytwo 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 associations is hereby extended for the sole purpose of liquidating their affairs until such affairs are finally closed.

NOTE.-Other sections of act of July 12, 1882.

SEC. 8.-[Relates to bond deposits and circulating notes.] Follows Revised Statutes, section 5167.

SEC. 9.-[Relates to withdrawal of circulating notes.] Follows Revised Statutes, section 5167.

SEC. 10.-Repealed sections 5171-5176, Revised Statutes, and was superseded by act of March 14, 1900. (See section 5171, Revised Statutes.)

Act April 12, 1902, c. 503;

32

102.

SEC. 11.-Authorizes the exchange of three per cent bonds for outstanding three and one-half per cent bonds.

SEC. 12.-Authorizes the issue of gold certificates upon the deposit of gold coin. Inserted after section 5207.

SEC. 13. [Relates to false certification of checks.] Follows Revised Statutes, section 5208.

REEXTENSION OF CORPORATE EXISTENCE. ACT OF
APRIL 12, 1902.

32. That the Comptroller of the Currency is hereby "Stat. L., authorized, in the manner provided by, and under the conditions and limitations of, the act of July 12, 1882, to extend for a further period of twenty years the charter of any national banking association extended under said act which shall desire to continue its existence after the expiration of its charter.

Act June 3, 1864, C. 106,

POWER TO HOLD REAL PROPERTY.

33. Sec. 5137.-A national banking association may sec. 28, 13 purchase, hold, and convey real estate for the following purposes, and for no others:

Stat. L., 107.

1864, sec.

C. 106,

7;

First. Such as shall be necessary for its immediate accommodation in the transaction of its business.

Second. Such as shall be mortgaged to it in good faith by way of security for debts previously contracted.

Third. Such as shall be conveyed to it in satisfaction of debts previously contracted in the course of its dealings. Fourth. Such as it shall purchase at sales under judgments, decrees, or mortgages held by the association, or shall purchase to secure debts due to it.

But no such association shall hold the possession of any real estate under mortgage, or the title and possession of any real estate purchased to secure any debts due to it, for a longer period than five years.

REQUISITE AMOUNT OF CAPITAL.

Act June 3, 34. Sec. 5138 [as amended 1900].-No association shall 13 be organized with a less capital than one hundred thouStat. L., 101. sand dollars, except that banks with a capital of not less 41, than fifty thousand dollars may, with the approval of the 198 31 Secretary of the Treasury, be organized in any place the

Act Mar. 14,

1900, C. sec.

Stat. L., 48.

Act June 3, 1864, C. 106, sec. 12:

13

population of which does not exceed six thousand inhabitants, and except that banks with a capital of not less than twenty-five thousand dollars may, with the sanction of the Secretary of the Treasury, be organized in any place the population of which does not exceed three thousand inhabitants. No association shall be organized in a city the population of which exceeds fifty thousand persons with a capital of less than two hundred thousand dollars.

SHARES OF STOCK AND TRANSFERS.

35. Sec. 5139.-The capital stock of each association shall be divided into shares of one hundred dollars each Stat. L., 102. and be deemed personal property, and transferable on the books of the association in such manner as may be pre