on the same day, he shall not receive pay for more than one protest. NOTE. Circulation redeemable only at Treasury or over own counter. Designated places of redemption have not existed since act June 20, 1874. (See said act following Revised Statutes, 5192). BONDS FORFEITED IF CIRCULATION IS DISHONORED. 1864, c. 106, 171. Sec. 5227. On receiving notice that any national Act June 3, banking association has failed to redeem any of its cir-sec. 47; 13 culating notes, as specified in the preceding section, the Stat. L., 114. 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. SUSPENSION OF BUSINESS AFTER DEFAULT. 1864, c. 106, Act Feb. 18, 172. Sec. 5228 [as amended 1875].-After a default on Act June 3, the part of an association to pay any of its circulating sec. 46; 13 notes has been ascertained by the Comptroller, and notice Stat. L., 113. thereof has been given by him to the association, it shall 1875, c. 80; 18 not be lawful for the association suffering the same to Stat. L., 320. 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 PRESENT CIRCULATION FOR REDEMPTION. 1864, c. 106, 173. Sec. 5229.-Immediately upon declaring the bonds, Act June 3, of an association forfeited for nonpayment of its notes, sec. 47; 13 the Comptroller shall give notice, in such manner as the Stat. L., 114. 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 at 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. 1864, c. 106, secs. 13 Stat. 114. SALE OF BONDS AT AUCTION. FIRST LIEN FOR RE- Act June 3, 174. Sec. 5230.-Whenever the Comptroller has become 47, 48 satisfied, by the protest or the waiver and admission L specified in section fifty-two hundred and twenty-six, or by the report provided for in section fifty-two hundred and twenty-seven, that any association has refused to pay its circulating notes, he may, instead of canceling its bonds, cause so much of them as may be necessary to redeem its outstanding notes to be sold at public auction in the city of New York, after giving thirty days' notice of such sale to the association. For any deficiency in the proceeds of all the bonds of an association, when thus sold, to reimburse to the United States the amount expended in paying the circulating notes of the association, the United States shall have a paramount lien upon all its assets; and such deficiency shall be made good out of such assets in preference to any and all other claims whatsoever, except the necessary costs and expenses of administering the same. Act June 3, 1864, c. 106, Stat. L., 114. BONDS MAY BE SOLD AT PRIVATE SALE. 175. Sec. 5231.-The Comptroller may, if he deems it sec. 49; 13 for the interest of the United States, sell at private sale any of the bonds of an association shown to have made default in paying its notes, and receive therefor_either money or the circulating notes of the association. But no such bonds shall be sold by private sale for less than par, nor for less than the market value thereof at the time of sale; and no sales of any such bonds, either public or private, shall be complete until the transfer of the bonds shall have been made with the formalities prescribed by sections fifty-one hundred and sixty-two, fifty-one hundred and sixty-three, and fifty-one hundred and sixtyfour. 1864, C. 106, DISPOSAL OF REDEEMED NOTES; REGULATIONS FOR Act June 3, 176. Sec. 5232.-The Secretary of the Treasury may, sec. 47; 13 from time to time, make such regulations respecting the Stat. L., 114. disposition to be made of circulating notes after presentation at the Treasury of the United States for payment, and respecting the perpetuation of the evidence of the payment thereof, as may seem to him proper. Act June 3, 1864, c. 106, REDEEMED NOTES TO BE CANCELED. 177. Sec. 5233.-All notes of national banking associasec. 47; 13tions presented at the Treasury of the United States for payment shall, on being paid, be canceled. Stat. L., 114. 1864, C. 106, APPOINTMENT AND DUTIES OF RECEIVERS. Act June 3, 178. Sec. 5234. On becoming satisfied, as specified in sec. 50; 13 sections fifty-two hundred and twenty-six and fifty-two Stat. L., 114. hundred and twenty-seven, that any association has refused to pay its circulating notes as therein mentioned, and is in default, the Comptroller of the Currency may forthwith appoint a receiver, and require of him such bond 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 Treasurer of the United States, subject to the order of the Comptroller, and also make report to the Comptroller of all his acts and proceedings. NOTE. Other provisions authorizing the appointment of receivers of national banks and relating to powers and duties of receivers and agents will be found in the act of June 30, 1876, as amended August 3, 1892, and March 2, 1897, and the act of March 29, 1886. Both these acts are set forth following section 5238, Revised Statutes. A receiver may also be appointed, under the provisions of section fifty-two hundred and thirty-four of the Revised Statutes of the United States, for the following violations of law: Where the capital stock of a national bank has not been fully paid in and it is thus reduced below the legal minimum and remains so for thirty days. (Sec. 5141, R. S.) For failure to make good the lawful-money reserve within thirty days after notice. (Sec. 5191, R. S.) Where a bank purchases or acquires its own stock, to prevent loss upon a debt previously contracted in good faith, and the same is not sold or disposed of within six months from the time of its purchase. (Sec. 5201, R. S.) For failure to make good any impairment in its capital stock and refusing to go into liquidation within three months after receiving notice. (Sec. 5205, R. S.) For false certification of checks by any officer, clerk, or agent. (Sec. 5208, R. S.) NOTICE TO CREDITORS OF INSOLVENT BANKS TO PRE SENT CLAIMS. 1864, C. 106, 179. Sec. 5235.-The Comptroller shall, upon appoint- Act June 3, ing a receiver, cause notice to be given, by advertisement sec. 50; 13 in such newspapers as he may direct, for three consecutive Stat. L., 114. months, calling on all persons who may have claims against such association to present the same, and to make legal proof thereof. DIVIDENDS; DISTRIBUTION OF ASSETS OF INSOLVENT 1864, C. 106, 50; 13 Stat. L., 114. 180. Sec. 5236. From time to time, after full provi-Act June 8: sion has been first made for refunding to the United sec States any deficiency in redeeming 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 adjudicated; 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. WHEN BANK MAY ENJOIN FURTHER PROCEEDINGS. Act June 3, 181. Sec. 5237.-Whenever an association against which sec. 50: 13 proceedings have been instituted, on account of any alStat. L., 114. leged refusal to redeem its circulating notes as aforesaid, 1864, c. 106, Act June 3, 1864, c. 106, Stat. L., 115. 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, as provided in section fifty-two hundred and twenty-seven, 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 the 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. NOTE. See also sections 629 and 736, Revised Statutes, page 81, post. FEES AND EXPENSES. 182. Sec. 5238.—All fees for protesting the notes issued sec. 51; 13 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. Act June 30, 1876, c. 156, WHEN RECEIVER MAY BE APPOINTED. ACT JUNE 30, 1876. 183. Sec. 1. That whenever any national banking asi; 1sociation shall be dissolved, and its rights, privileges, and franchises declared forfeited, as prescribed in section fifty-two hundred and thirty-nine of the Revised Statutes of the United States, or whenever any creditor of any national banking association shall have obtained a judg ment 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 the national banking association, he may, after due examination of its affairs, in either case, appoint a receiver who shall proceed to close up such asso ciation, and enforce the personal liability of the shareholders, as provided in section fifty-two hundred and thirty-four of said statutes. CREDITOR'S BILL AGAINST SHAREHOLDERS. ACT JUNE 30, 1876. Act June 30, Stat. L., 63. 184. Sec. 2. That when any national banking associa- 1876, c. 156, tion shall have gone into liquidation under the provi-sec. 2; 19 sions of section five thousand two hundred and twenty of said statutes, the individual liability of the shareholders provided for by section fifty-one hundred and fifty-one of said statutes may be enforced by any creditor of such association, by bill in equity, in the nature of a creditor's bill, brought by such creditor on behalf of himself and of all other creditors of the association, against the shareholders thereof, in any court of the United States having original jurisdiction in equity for the district in which such association may have been located or established. APPOINTMENT, QUALIFICATION, AND DUTIES OF SHAREHOLDERS' AGENT. ACT JUNE 30, 1876, AS AMENDED 1892, 1897. 1876, c. 156, amended Aug. Stat. L., 345, 185. Sec. 3. That whenever any association shall have Act June 30, been or shall be placed in the hands of a receiver, as pro- sec. 3; 19 vided in section fifty-two hundred and thirty-four and Stat... 63. as other sections of the Revised Statutes of the United 3, 1892, 27 States, and when, as provided in section fifty-two hun- and Mar. 2. dred and thirty-six thereof, the Comptroller of the Cur-1897, 29 Stat. rency shall have paid to each and every creditor of such association, not including shareholders who are creditors of such association, whose claim or claims as such creditor shall have been proved or allowed as therein prescribed, the full amount of such claims, and all expenses of the receivership, and the redemption of the circulating notes of such association shall have been provided for by depositing lawful money of the United States with the Treasurer of the United States, the Comptroller of the Currency shall call a meeting of the shareholders of such association by giving notice thereof for thirty days in a newspaper published in the town, city, or county where the business of such association was carried on, or if no newspaper is there published, in the newspaper published nearest thereto. At such meeting the shareholders shall determine whether the receiver shall be continued and shall wind up the affairs of such association, or whether an agent shall be elected for that purpose, and in so determining the said shareholders shall vote by ballot, in person or by proxy, each share of stock entitling the holder to one vote, and the majority of the stock in value and number of shares shall be necessary to determine whether the said receiver shall be continued, or whether an agent shall be elected. In case such majority shall determine that the said receiver shall be continued, the said receiver shall thereupon proceed with the execution |