in pursuance of such offer, make, sign and deliver to the party making such demand, an admission in writing, stating the time of the demand, the amount demanded and the facts of the non-payment thereof. The superintendent on receiving and filing in his office such admission or protest, together with such notes, shall forthwith give notice in writing to the maker thereof to pay the same, and if such maker shall omit to do so for fifteen days after such notice, the superintendent shall immediately, unless satisfied that there is a good and legal defense to the payment of such notes, give notice in the state paper that all the circulating notes issued by such bank or banker will be redeemed out of the trust funds in his hands for that purpose; and the superintendent shall apply such funds to the payment pro rata of all circulating notes put in circulation by such bank or banker pursuant to the provisions of this chapter, and adopt such measures for the payment of such notes as will, in his opinion, most effectually prevent loss to the holders thereof.

If payment of such notes is not made for a period of ten days after the first publication of such notice, the superintendent shall sell at public auction the securities so pledged, or any of them, and out of the proceeds of such sale pay and cancel such notes, but the state shall not be deemed as under any pledge for the payment of such notes beyond the proper application of the proceeds of such securities for their redemption.

Damages for non-payment of any such notes in lieu of interest at the rate of six per cent per annum from the time of refusal of payment, shall be paid by the bank or banker refusing to pay such notes on demand.

This section shall not apply to cases where circulating notes registered in the superintendent's office shall be presented for payment to an agent of any incorporated bank or individual banker appointed according to the provisions of this chapter relating to the redemption of bank notes, nor to any bank or individual banker for whom there shall not be at the time an agent duly appointed as prescribed in this chapter;

nor to banks or individual bankers whose place of business is in either of the cities of New York, Albany, Brooklyn or Troy.

All fees for protesting any such notes shall be paid by the person procuring the services to be performed and the bank or banker issuing such notes shall be liable for the same, but no part of the securities deposited by such bank or banker shall be applied to the payment of such fees.

R. S., 1535, L. 1882, ch. 409, §§ 92, 93, 94, 95.

§ 73. Appointment of agent by new corporation.- Every bank and individual banker who shall hereafter commence business under the laws of this state shall upon first receiving circulating notes from the superintendent, appoint an agent for the purpose of redemption, and be subject in all respects to the provisions of this chapter in relation thereto; and the superintendent shall not deliver any circulating notes to such bank or banker until such appointment is made and filed in his office, which shall be immediately published by the superintendent in the manner herein before provided.

R. S., 1536, L. 1882, ch. 409, § 97.

§ 74. Revocation of appointment. — Appointments of agents for the purpose of redemption may be revoked and new appointments of agents may be made from time to time by delivering such revocation of appointment to the superintendent, who shall cause the same to be published as hereinbefore provided. Several banks may appoint a common agent. Any number of banks and individual bankers may by agreement associate for raising a joint fund to be placed in the hands of their common agent for the redemption of their circulating notes in the city of New York or Albany, and also the circulating notes of other banks and individual bankers in such manner and under such regulations as may be agreed upon, and employ such agents and clerks as they

may deem necessary to carry on the business of the common agency. No such agency shall redeem or purchase any circulating notes at a discount of more than one-half of one per cent, nor relieve or discharge any such bank or banker from any duty or liability required or imposed by this chapter, nor shall any bank or individual banker purchase, buy in or take up, directly or indirectly, its or his circulating notes at an amount less than what purports to be due thereon at any other place or in any other manner than is directed in or by this chapter.

R. S., 1536, L. 1882, ch. 409, §§ 98, 99, 100.

§ 75. Distribution of funds of insolvent banks.-The superintendent shall make a final distribution of the funds in his hands arising from the sale of securities deposited with him by banks and individual bankers, which have failed or may hereafter fail to redeem their circulating notes. At the expiration of six years after the first sale made by the superintendent of such securities, he shall issue a final notice to the holders of the circulating notes issued by such bank or banker requiring the presentation thereof within six months after the date of the notice, and any of such notes which shall not be presented within the time thus specified shall cease to be a charge or claim upon the funds of such bank or banker remaining in the hands of the superintendent. Any such notes which shall be presented within the period above limited shall be received and paid by the superintendent at the same rate which shall have been paid on like notes previously presented, and if all the notes of any bank or individual banker so presented shall have been redeemed at their par value, he shall pay to such bank or banker, the residue of such funds remaining in his hands belonging thereto. If such notes shall not have been redeemed at par, then the holder shall be entitled to a certificate showing the balance, if any, due thereon.

K. S., 1536, L. 1882, ch. 409, § 101.

$76. Distribution of residue.-At the expiration of the notice required by the preceding section, the superintendent shall ascertain the amount of the residue of the fund remaining in his hands belonging to the creditors of such bank or banker and after deducting therefrom the expenses justly chargeable thereon, he shall make a pro rata distribution of the residue upon the outstanding certificates given for the balance due to the holders of the circulating notes of such bank or individual banker, which shall have been redeemed in part, and he shall issue a notice to the holders of such certificates stating the rate or amount payable thereon, and requiring them to present the same within six months after the date of such notice. Any certificate not presented within that time shall cease to be a charge or claim upon the residuary fund in the hands of the superintendent. After making the final distribution herein directed, if any portion of such fund shall remain unclaimed, it shall be deposited in the treasury and applied toward paying the ordinary expenses of the banking department.

R. S., 1537, L. 1882, ch. 409, §§ 102, 103, 104.

$77. Publication of notices.-The notices required to be given by this chapter to the creditors of an insolvent bank or banker shall be published at least six weeks in one or more newspapers which the superintendent shall deem best calculated to inform such creditors, and the cost of such publication shall be defrayed out of the fund to which such notice shall refer.

R. S., 1537, L. 1882, ch. 409, § 105.

$78. Redemption of notes held by banks and individual bankers. Any bank or individual banker receiving in the course of its business the circulating notes. issued by any other bank or individual banker, may present such notes for redemption and payment in the manner and upon the terms herein provided, either

to the lawful redeeming agent or at the counters of the banks or individual bankers issuing them; but every such bank or individual banker so presenting such notes for redemption, shall present all of such notes on hand at the time of such presentation either to the lawful agents or at the counters of the banks or individual bankers issuing them for redemption and payment in the manner provided by law as often at least as once in each successive week, when more than the sum of ten thousand dollars of such notes are held by the bank or banker presenting them for payment. Any such bank or individual banker holding such circulating notes who shall elect to present the same for redemption and payment at the counters of the bank or individual banker issuing them, shall cause written or printed notice of such election, attested by the signature of the president or cashier of the bank or banker holding them, under seal, that all of such notes on hand at the time will be presented duly sealed at the counter of the bank or banker issuing them, as often at least as once in each successive week when more than the sum of ten thousand dollars is held by such bank or banker, to be redeemed and paid in the manner required by law. When such notice shall have been given and received, such notes shall thereafter be presented at such counters and not elsewhere for redemption and payment, unless a further notice of ten days shall be given in the same manner that such notes will thereafter be presented for redemption and payment to the lawful redeeming agent of the bank or individual banker issuing them within the times and upon the terms prescribed by law. Any bank or individual banker may redeem, present, hold, pledge or exchange the circulating notes of any other bank or banker in the manner, within the times, and upon such terms conformable to the provisions of law as it may have been agreed upon.

Every bank or individual banker who shall knowingly and willfully neglect or or refuse to comply with any provision of this section shall forfeit