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CONGRESS, U. S. 



when demanded as aforesaid, and report to the Comp- 

 troller the facts so ascertained ; and if, from such pro- 

 tests or the reports so made, the Comptroller shall be 

 satisfied that such association has refused to pay its 

 circulating notes as aforesaid, and is in default, he 

 shall, within thirty days after he shall have received 

 notice of such failure, declare the United States bonds 

 and securities pledged by such association forfeited to 

 the United States, and the same shall thereupon be 

 forfeited accordingly, and thereupon the Comptroller 

 shall immediately give notice, iu 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 at the 

 Treasury of the United States ; and the same shall be 

 paid as presented, whereupon said Comptroller may, 

 in his discretion, cancel an equal amount of the bonds 

 pledged by such association, equal at current market 

 rates, not exceeding par, to the notes paid ; and it shall 

 be lawful for the Secretary of the Treasury, from time 

 to time, to make such regulations respecting the dis- 

 position to be made of such circulating notes after 

 presentation thereof for payment as aforesaid, and re- 

 specting the perpetuation of the evidence of the pay- 

 ment thereof, as may seem to him proper ; but all such 

 notes, on facing paid, shall be cancelled ; and for any 

 deficiency in the proceeds of the bonds pledged by such 

 association, when disposed of as hereinafter specified, 

 to reimburse to the United States the amount so ex- 

 pended in paying the circulating notes of such asso- 

 ciation, the United States shall have a first and para- 

 mount lien upon all the assets of such association, 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 administer- 

 ing the same. 



SEC. 27. And be it further enacted, That, whenever 

 the Comptroller shall become satisfied, as in the last 

 preceding section specified, that any such association 

 has refused to pay its circulating notes as therein 

 mentioned, he may, instead of cancelling the United 

 States bonds pledged by such association, as provided 

 in the next preceding section, cause so much of them 

 as may be necessary to redeem the outstanding circu- 

 lating notes of such association to be sold at public 

 auction in the city of New York, after giving thirty 

 days' notice of such sale to such association. 



SEC. 28. And be it further enacted, That the Comp- 

 troller of the Currency may, if he shall be of opinion 

 that the interests of the United States will be best pro- 

 moted thereby, sell at private sale any_ of the stock so 

 transferred to him by such association, and receive 

 therefor either money or the circulating notes of such 

 failing association : Provided, That no such bonds 

 shall be sold by private sale for less than the par, nor 

 less than the market value thereof at the time of 

 sale. And provided further, That no sales of any 

 such stock, either public or private, shall be complete 

 until the transfer thereof shall have been made with 

 the formalities prescribed in this act. 



SEC. 29. And be it further enacted, That on becom- 

 ing satisfied, as specified in this act, that any such as- 

 sociation 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 shall 

 deem proper, who, under the direction of the Comp- 

 troller, shall take possession of the books, records, and 

 assets of every description of such association, collect 

 all debts, dues, and claims belonging to such associa- 

 tion, and, upon the order of a court of record of com- 

 petent jurisdiction, may sell or compound all bad or 

 doubtful debts, and, on a like order, sell all the real 

 and personal property of such association, on such 

 terms as the court shall direct; and such receiver shall 

 pay^ over all moneys so made to the Treasurer of the 

 United States, and also make report to the Comptroller 

 of the Currency of all his acts and proceedings. The 

 Comptroller shall thereupon 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 pre- 

 sent the" same, and to make legal proof thereof; and 

 from time to time the Comptroller, after full provision 

 shall have been first made for refunding to the United 

 States any such deficiency in redeeming the notes of 

 such association as is mentioned in this act, shall make 

 a ratable dividend of the moneys so paid over to him 

 by such receiver on all such claims as may have been 

 so proved or adjudicated in a court of competent juris- 

 diction, and from time to time, as the proceeds of the 

 assets of such association shall be paid over to him, 

 he shall make further dividends, as aforesaid, on all 

 claims previously proved or adjudicated ; and the re- 

 mainder of such proceeds, if any, shall be paid over 

 to the shareholders of such association, or their legal 

 representatives, in proportion to the stock by them re- 

 spectively held : Provided, however, That if any such 

 association, against which proceedings have been so 

 instituted on account of any alleged refusal to redeem 

 its circulating notes as aforesaid, shall deny having 

 failed to do so, such association may at any time within 

 ten days after such association shall have been notified 

 of the appointment of an agent, as provided in this 

 act, apply to the nearest circuit, or district, or territorial 

 court of the United States, to enjoin further proceed- 

 ings in the premises ; and such court, after citing the 

 Comptroller of the Currency to show cause why fur- 

 ther 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 or 

 the United States, shall make an order enjoining the 

 Comptroller, and any receiver acting under his direc- 

 tion, from all further proceedings on account of such 

 alleged refusal. 



SEC. 30. And be it further enacted, That the bonds 

 transferred to the Treasurer of the United States, as 

 hereinbefore provided, by any banking association for 

 the security of its circulating notes, shall be held ex- 

 clusively for that purpose, until such notes shall be re- 

 deemed, except as provided in this act ; but the Comp- 

 troller of the Currency may give to any such banking 

 association powers of attorney to receive and appro- 

 priate to its own use the interest on the bonds which 

 shall have been so transferred to the Treasurer by it ; 

 but such powers shall become inoperative whenever 

 such banking association shall fail to redeem its circu- 

 lating notes as aforesaid ; and said Comptroller may 

 direct the return of any of said bonds to the banking 

 association which transferred the same, upon the sur- 

 render to him and the cancellation of a proportionate 

 amount of such circulating notes : Provided, That 

 ninety per centum of the current market value of the 

 remaining bonds which shall have been transferred by 

 the banking association ofTering to surrender sucli cir- 

 culating notes shall be equal to the amount of all the 

 circulating notes retained by such banking association : 

 And provided further, That there shall nave been no 

 failure by such association to redeem its circulating 

 notes, and that there shall have been no other violation 

 by such association of any of the provisions of this 

 act for the security of the creditors of such association; 

 nor shall the Treasurer be required to surrender such 

 bonds in fractional sums of less than one thousand 

 dollars ; and if, at any time after said bonds shall be 

 deposited with the Treasurer of the United States, as 

 aforesaid, the market or cash value shall be reduced, 

 the Comptroller of the Currency is hereby authorized 

 to demand and receive the amount of such deprecia- 

 tion in other United States bonds at cash value, or in 

 money, from the association receiving said bills, to be 

 deposited with the Treasurer of the United States, as 

 long as such depreciation continues. 



SEC. 31. And be it further enacted, That whenever 

 the price of any of the bonds pledged ns aforesaid for 

 the redemption of the circulating notes of any such 

 banking association shall be, at the stock exchange in 

 the city of New York, for four consecutive weeks, at a 

 rate less than that at which they shall have been esti- 

 mated when so pledged, and such depreciation shall 

 not have been made good by a deposit of other bonds 



