298 



CONGRESS, U. S. 



their articles of association, for the purposes author- 

 ized by this act, and by exercising such incidental 

 powers as shall be necessary to carry on such business ; 

 to choose one of their number as president of such as- 

 sociation, and to appoint a cashier and such other of- 

 ficers and agents as their business may require ; and 

 to remove such president, cashier, officers, and agents 

 at pleasure, ana appoint others in their place; and 

 their usual business shall be transacted in banking of- 

 fices located at the places specified respectively in its 

 certificate of association, and not elsewhere. 



SEC. 12. And be it further enacted, That the shares 

 of associations formed under this act shall be deemed 

 personal property, and shall be transferable on the 

 books of the association in such manner as may be 

 prescribed in the by-laws or articles of association ; 

 and every person becoming a shareholder by such 

 transfer shall, in proportion to his shares, succeed to 

 all the rights and liabilities of the prior holder of such 

 shares ; and no change shall be made in the articles of 

 association by which the rights, remedies, or security 

 of the existing creditors of the association shall be im- 

 paired. For all debts contracted by such association 

 tor the circulation, deposits, or otherwise, each share- 

 holder shall be liable to the amount, at their par value, 

 of the shares held by him, in addition to the amount 

 invested in such shares. 



SEC. 13. And be ttfurflier enacted,, That it shall be 

 lawful for any association formed under this act, by its 

 articles of association, to provide for an increase of its 

 capital from time to time as may be deemed expedient, 

 subject to the limitations of this act ; but no such in- 

 crease shall be valid until the increased capital shall 

 be paid in, and notice thereof shall have been trans- 

 mitted to the Comptroller of the Currency, and his cer- 

 tificate obtained, specifying the amount of such in- 

 crease of capital stock, and that the same has been 

 duly paid to such association. 



SEC. 14. And, be it further enacted, That it shall be 

 lawful for any such association to purchase, hold, and 

 convey real estate as follows : 



First. Such as shall be necessary for its imme- 

 diate accommodation in the transaction of its busi- 

 ness. 



Second. Such as shall be mortgaged to it in good 

 faith by way of security for loans made by such associ- 

 ation, or for moneys due thereto. 



Third. Such as shall be conveyed to it in satisfac- 

 tion 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 such asso- 

 ciation. 



Such association shall not purchase or hold real es- 

 tate in any other case or for any other purpose than as 

 specified in this section. 



SEC. 15. And be U further enacted, That every asso- 

 ciation, after having complied with the provisions of 

 this act preliminary to the commencement of banking 

 business under its provisions, shall transfer and deliv- 

 er to the Treasurer of the United States any United 

 States bonds bearing interest to an amount not less 

 than one third of the capital stock paid in, which bonds 

 shall be deposited with the Treasurer of the United 

 States, and by him safely kept in his office until the 

 same shall be otherwise disposed of, in pursuance of 

 the provisions of this act. 



SEC. 16. And be it further enacted, That upon the 

 making of any such transfer and delivery, the associ- 

 ation making the same shall be entitled to receive from 

 the Comptroller of the Currency circulating notes of 

 different denominations, in blank, registered and coun- 

 tersigned as hereinafter provided, equal in amount to 

 ninety per centum of the current market value of the 

 United States bonds so transferred and delivered, but 

 not exceeding the par value thereof, if bearing interest 

 at the rate ofsix per centum, or of equivalent United 

 States bonds bearing a less rate of interest; and at no 

 time shall the total amount of such notes, issued to any 

 such association, exceed the amount at such time actu- 

 ally paid in of its capital stock. 



SEC. 17. And be it further enacted, That the entire 

 amount of circulating notes to be issued under this act 

 shall not exceed three hundred millions of dollars. 

 One hundred and fifty millions of which sum shall be 

 apportioned to associations in the States, in the District 

 01 Columbia, and in the Territories, according to repre- 

 sentative population, and the remainder shall be appor- 

 tioned by the Secretary of the Treasury among associ- 

 ations formed in the several States, in the District of 

 Columbia, and in the Territories, having due regard to 

 the existing banking capital, resources, and business 

 of such States, District, and Territories. 



SEC. 18. And be itfurther enacted, That, in order to 

 furnish suitable notes for circulation, the Comptroller 

 of the Currency is hereby authorized and required, un- 

 der the direction of the Secretary of the Treasury, to 

 cause plates to be engraved in the best manner, to 

 guard against counterfeiting and fraudulent altera- 

 tions, and to have printed therefrom, and numbered, 

 such quantity of circulating notes, in blank, of the de- 

 nominations of five dollars, ten dollars, twenty dollars, 

 fifty dollars, one hundred dollars, five hundred dollars, 

 and one thousand dollars, as may be required to sup- 

 ply, under this act, the associations entitled to receive 

 the same ; which notes shall express upon their face 

 that they are secured by United States bonds, deposit- 

 ed with the Treasurer of the United States, and issued 

 under the provisions of this act, which statement shall 

 be attested by the written or engraved signatures of 

 the Treasurer and Register, and by the imprint of the 

 seal of the Treasury ; and shall also express upon their 

 face the promise of the association receiving the same, 

 to pay on demand, attested by the signatures of the 

 president, or vice-president, and cashier; and the 

 said notes shall bear such devices and such other state- 

 ments, and shall be in such form, as the Secretary of 

 the Treasury shall, by regulation, direct. 



SEC. 19. And be it further enacted, That the plates 

 and special dies to be procured by the Comptroller of 

 the Currency for the printing of such circulating notes 

 as shall remain under his control and direction, and 

 the expenses necessarily incurred in executing the pro- 

 visions of this act respecting the procuring of such 

 notes, shall be*audited and paid as contingent expenses 

 of the Treasury Department ; and for the purpose of 

 reimbursing the same, and all other expenses incurred 

 under this act, and in lieu of all taxes upon the circu- 

 lation authorized by this act, or upon the bonds de- 

 posited for the- security of the same, such association 

 organized under this act shall semi-anmially, on tho 

 first days of January and July, after its organization, 

 pay to the Comptroller of the Currency, in lawful 

 money of the United States, one per centum on the 

 amount of circulating notes received by such associa- 

 tion, and in default thereof, the Treasurer of the 

 United States is hereby authorized to reserve and re- 

 tain one per centum on the amount of said bonds so 

 deposited, at each semi-annual payment of interest 

 thereon ; and all sums so reserved and retained shall 

 be paid into the Treasury under the direction of the 

 Secretary; and every bank, banking association, or or- 

 ganization, not organized under the provisions of this 

 act, issuing notes calculated or intended to circulate 

 as money, shall, on the first day of July next, and reg- 

 ularly on the first days of January and July thereafter, 

 make and deliver to the Comptroller of the Currency 

 a true and accurate return of the gross amount of notes 

 issued by it, whether in circulation, or in its vaults, 

 or on deposit elsewhere, and in default of any such re- 

 turn, the bank, banking association, or corporation so 

 failing to make return, shall pay to the United States 

 a penalty of two per centum upon. its entire capital 

 stock, to be recovered, for the use of the United States, 

 in any court of competent jurisdiction. 



SEC. 20. And be it further enacted, That after any 

 such association shall have caused its promise to pay 

 such notes on demand to be signed by the president 

 or vice-president and cashier thereof, in such manner 

 as to make them obligatory promissory notes, payable 

 on demand, at its place of business, such association r 

 hereby authorized to issue and circulate the same 



