8. The expenses of proceedings instituted by the Comptroller of the Currency for the forfeiture of the charter of a national banking association, including the fee of the United States attorney for his services in such proceedings, should be defrayed out of the funds or assets of the association. 19 Op. 633.

9. Same. What would be a reasonable fee for the services of the district attorney depends upon the circumstances of the particular case. Ib.

10. Suits and proceedings instituted by the receiver of a failed national bank to enforce the payment of a debt which may be maintained in a State court as well as in a United States court, fall within the provisions of section 380, Revised Statutes, and are therefore to be conducted by district attorneys under the direction of the Solicitor of the Treasury. 20 Op. 476.

11. Same. A receiver of a failed national bank is an officer or agent of the United States within the meaning of said section. Ib.

12. Same. The compensation of the United States attorney appearing for such receiver is not regulated by the fee bill prescribed by statute, nor should it be paid by the Government, but out of the funds of the trust.

Ib.

13. Sale of assets-Dividend money.-If the receiver of a national bank has authority of the proper district court and the consent of every one of the creditors of the bank to a private sale of any of its assets, then the dividend money could be used to purchase such asset. The money thus used would again become assets of the bank for distribution. 20 Op. 269.

14. Same. The Comptroller of the Currency can not inquire what use the creditors of a bank propose to make of a dividend paid them. Ib.

15. National banks desiring to withdraw their circulating notes and take up the bonds deposited with the United States Treasurer as security therefor, may do so, under section 4 of the act of June 20, 1874 (18 Stat. 124),

16. A national banking association may, under section 3 of the act of June 20, 1874 (18 Stat. 123), deposit coin in the Treasury for the redemption of its circulation. 17 Op.

144.

17. Same. The Treasury, while privileged under sections 3 and 4 of that act to redeem such circulation in United States notes, has also the right to redeem the same circulation in coin. Ib.

18. Same. The act of 1874 was not intended to repeal or affect the general provisions of law making the coins of the United States a legal tender in all payments. (Secs. 3585 et. seq. Rev. Stat.) Ib.

19. Certification of check where drawer has not the amount named actually on deposit.— Section 5208, Revised Statutes, and section 13 of the act of July 12, 1882 (22 Stat. 166) prohibits the certification of a check drawn upon a national bank, where at the time of certification the drawer has not on deposit with the bank, and regularly entered to his credit on its books, an amount of money equal to the amount of the check. 17 Op. 471.

"ac

20. Same-Check marked "good" or cepted."-Whether the check be marked by the bank "accepted," or simply "good," can make no difference; either constitutes a certification within the meaning of the statute. Ib.

21. Same. The acceptance of a check, where the drawer has no funds on deposit, is a loan of the credit of the bank rather than a loan of money, and, if otherwise unobjectionable, is not within the restriction provided by section 5200, Revised Statutes. Ib.

22. Same.-Liabilities so incurred by a bank are within the limit imposed by section 5202, Revised Statutes. Ib.

23. Insolvent-Government subrogated to rights of private creditors, but is not a preferred creditor.-Where (as in the case of the First National Bank of New Orleans) a national bank is hopelessly insolvent, and the United States pays private creditors the amounts owed by the bank, the Government is subrogated to their claims against the bank, but is not entitled to be preferred. 17 Op. 360.

25. Same-Check marked "good."-Where, after such bank was found to be insolvent, a creditor thereof who was indebted to the United States, and whom the records showed to be a depositor to the amount of $315,879.10, delivered his check of that amount on the bank to an agent of the United States in part satisfaction of the debt, which check had been marked "good" by the receiving teller, who added his signature thereto: Held that the check created no obligation against the bank. Ib.

26. Withdrawal of bonds deposited to secure circulation.-A national bank whose charter is about to expire, but which has taken no steps toward going into liquidation under sections 5220 to 5224, Revised Statutes, can not withdraw all of the bonds deposited to secure its circulation, upon depositing lawful money equal to the amount of its outstanding circulation, notwithstanding the provisions of sections 5159 and 5160, Revised Statutes, and section 4 of the act of June 20, 1874 (18 Stat. 124). 17 Op. 409.

27. Redemption-Retirement of circulation.Where certain 3 per cent bonds of the United States, held by the United States Treasurer as security for the circulating notes of a national bank, were called in for redemption and ceased to be interest bearing: Advised that unless the bank substitute interestbearing bonds for the called bonds, the proceeds of the latter must be applied to retiring the circulation secured thereby. 18 Op. 493. 28. Organization of national banks in Porto Rico. By virtue of section 14 of the act of April 12, 1900 (31 Stat. 80), the laws of the United States relative to the organization and powers of national banks were extended to Porto Rico. 23 Op. 169.

29. Organization of national banks in Hawaii. The act of April 30, 1900 (31 Stat. 141), extended the national banking laws of the United States to the Territory of Hawaii, and

30. Same.-Sections 5154 and 5155, Revised Statutes, do not apply to banks existing in Hawaii prior to the passage of the act of April 30, 1900, but refer exclusively to banks organized under special or general laws of a State. Ib.

31. Establishment of national banks in Oklahoma. Under existing legislation [1889] relating to the establishment of national banking associations, and in the present condition of Oklahoma (being without a government and system of laws), such banking associations can not lawfully be authorized and established in the Territory known by that name. 19 Op. 315.

32. Same. A national bank can not be lawfully established at Muskogee, a town in the territory of the Creek Nation. 19 Op. 342.

33. Same. The effect of certain provisions in the treaties with the Creek Nation of Indians of August 28, 1856, and August 11, 1866, which render inoperative in the Creek territory the various national banking laws, considered. Ib.

34. National banks may be established in the Indian Territory.-In view of the provisions of the act of May 2, 1890 (26 Stat. 81), entitled "An act to provide a temporary government for the Territory of Oklahoma," etc.: Advised that there no longer exists any obstacle to the establishment of national banking associations in the Indian Territory. 19 Op. 585.

35. The laws relating to national banking associations are, by virtue of the act of May 17, 1884 (23 Stat. 24), in force in the Territory of Alaska, and such associations may be lawfully organized in that Territory. 19Op. 678. TAX ON CIRCULATION. See INTERNAL REVENUE, II, c.

III. State Banks.

36. The tax on State banks imposed by section 19 of the act of February 8, 1875 (18 Stat. 311), applies only to promissory notes and not to other negotiable or quasi negotiable paper. 20 Op. 681.

The papers submitted are not notes within the meaning of that act. Ib.

3. Same. Only the market price of the bonds at the time of the purchase should be paid; no commissions in addition to the par value of the bond and the premium thereon can be lawfully paid. Ib.

4. Same. The power conferred by the statute does not extend to the making of contracts for future delivery, but is limited to actual cash purchases. lb. (281.)

5. A proposed issue of interest-bearing bonds by the county commissioners of Floyd County, Ga., will not conflict with the banking laws of the United States. 21 Op. 70.

6. Certain interest-bearing bonds of the State of Arkansas held not to bear interest after maturity. (United States v. North Carolina, 136 U. S. 211, followed.) 21 Op. 135.

7. As a recourse to law for the settlement or collection of certain bonds issued by certain States and owned by the United States would involve the grave act of suing a State, and as Congress has had this question before it repeatedly and has not directed such a course, the Secretary of the Treasury is advised not to institute suit. 21 Op. 478.

8. A bond is an obligation in writing and under seal, binding the obligor to pay a sum of money to the obligee. It is sometimes denominated a specialty, being under seal, as distinguished from a simple promise to pay not sealed. 22 Op. 368.

I. Generally.

1. Redemption of continued fives of 1881.— In calling for redemption the new bonds issued by the Secretary of the Treasury, known as "continued fives," those which have the highest number, i. e., "the bonds of each class last dated and numbered," as provided by the third section of the act of July 14, 1870 (16 Stat. 272), should be called first. 17 Op. 349.

2. Purchase of United States bonds.-The power given the Secretary of the Treasury by section 2 of the act of March 3, 1881 (21 Stat. 457), to purchase United States bonds with the surplus money in the Treasury not otherwise appropriated, does not include the payment of commissions to private parties to purchase for the Government. 19 Op. 279.

II. Official Bonds.

9. Assistant treasurers-Form of bond.The form of the bond required to be given by assistant treasurers of the United States under section 3600, Revised Statuteswhether the parties thereto are to be jointly and severally, or may be only jointly bound, and whether each surety is to bind himself for the full amount of the penalty, or may restrict his liability to a less amount—is not made the subject of statutory regulation, but is left to the determination of the officers by whom the bond is to be approved. 18-274.

10. Same. But the form ordinarily made use of in practice is that wherein the principal and sureties are jointly and severally bound for the full amount of the penalty. Ib.

11. Same. This form being preferable to any other, and its use sanctioned by long practice, the adoption of a different form

ing the Indians other than and in addition to those prescribed whenever the exigencies of the public service require it. 17 Op. 391.

12. The suspension of an officer involves a suspension of his bond; the bond required of the person designated to take the place of the former being substituted therefor while the person so designated is performing the duties of the office. 18 Op. 318.

13. The omission of the words "in the State of Vermont" from the official bond of the collector of customs for the district of Vermont does not impair its validity. The bond is valid, either under the statute or at common law. 18 Op. 458.

14. The Secretary of the Navy has power, under section 1383, Revised Statutes, to approve a pay-officer's bond in which the sureties are corporations, or a corporation joined with a natural person, if he deems such sureties sufficient. 19 Op. 175.

15. Pension agent's bond.-The provision in the act of June 30, 1890 (26 Stat. 187), "making appropriations for the payment of invalid and other pensions," etc., which requires a new bond “from all pension agents now in office," is mandatory, and applies to all pension agents then in office, without any exception whatever. 19 Op. 581.

16. The act authorizing the acceptance of bonds and undertakings of surety and fidelity companies (28 Stat: 279) does not permit the imposition of conditions and regulations by Government officials relative to the percentage of capital stock to liability on a single official bond, or the minimum rates to be charged for such insurance, etc. 22 Op. 421.

17. The five years' limitation, fixed by section 2 of the act of August 8, 1888 (25 Stat. 387), within which suits may be brought upon the official bonds of disbursing officers begins to run from the time the accounting officers of the Treasury make the statement of the account showing an indebtedness to the United States. 22 Op. 611.

18. Indian inspector's bond.-Although the general functions and duties of Indian inspectors do not include specifically the disbursement of public money, and these officers are not required by statute to give bond, yet the Secretary of the Interior may lawfully assign

19. Same. Where the particular duty thus assigned to an inspector involves the receipt or disbursement of public money, it is competent for the Secretary to take a bond for the protection of the Government against loss, although such bond may not be required by statute; and the bond would be valid and binding upon both principal and sureties if voluntarily given by the officer. lb.

See also DIPLOMATIC AND CONSULAR OFFICERS, 1, 3.

III. Other Bonds.

20. Contractor's bond.-An erasure and interlineation in a bond increasing the amount of the penalty does not invalidate that instrument or impair its legal effect, if in fact it was made prior to its execution. 17 Op. 285.

21. Same. The attestation of witnesses to a bond is merely for convenience of proof. The law does not require such witnesses, but it is expedient and safe always to require them. Ib.

22. Same. If any material change is made in a bond subsequent to its execution, the instrument is thereby rendered void, unless it can clearly be shown that after the change the parties assented to it and still acknowledge the signing and sealing to be their act. Ib.

23. On contract-Certificate of sufficiency of bondsmen.-There is no law requiring a United States judge or a United States attorney to certify as to the sufficiency of guarantors or bondsmen offered in connection with proposals and contracts with the Navy Department, and no fees are chargeable against the Government for such service. 19 Op. 181. 24. Same. The expense of obtaining a certificate from the officer must be borne by the bidder or contractor as other expenses are incurred by him in the proper execution of the papers. Ib.

25. A proposed bond of indemnity for advances made and to be made to a contractor for building a vessel, deemed ineffectual. Suggested that the contractor be required to execute a refunding bond with adequate per