Act July 28, 1892, c. 217; of the Comptroller of the Currency that such notes have been received by him and that they have been destroyed and that no new notes will be issued in their place, reimbursement of their amount shall be made to the Treasurer, under such regulations as the Secretary of the Treasury may prescribe, from an appropriation hereby created, to be known as "national-bank notes; Redemption account," but the provisions of this act shall not apply to the deposits received under section three of the act of June twentieth, eighteen hundred and seventyfour, requiring every national bank to keep in lawful money with the Treasurer of the United States a sum equal to five per centum of its circulation, to be held and used for the redemption of its circulating notes; and the balance remaining of the deposits so covered shall, at the close of each month, be reported on the monthly public debt statement as debt of the United States bearing no interest. NOTE. The other sections of this act relate to the purchase of silver bullion and issue of Treasury notes. REDEMPTION OF LOST OR STOLEN NOTES, AND OF NOTES 128. That the provisions of the Revised Statutes of 27 Stat. L., the United States, providing for the redemption of 322. Act June 3, 1864, c. 106, Stat. L., 109. national-bank notes, shall apply to all national-bank notes that have been or may be issued to, or received by, any national bank, notwithstanding such notes may have been lost by or stolen from the bank and put in circulation without the signature or upon the forged signature of the president or vice-president and cashier. 129. Sec. 5193. Repealed March 14, 1900. NOTE. This section as enacted June 8, 1872 (17 Stat. L., 337), authorized the Secretary of the Treasury to receive on deposit from national banking associations United States notes in sums of not less than ten thousand dollars and to issue certificates therefor payable on demand in denominations of not less than five thousand dollars. This was repealed by act March 14, 1900, section 6, page 97, post, which provides for issue of gold certificates payable to order in denominations of ten thousand dollars. 130. Sec. 5194. Dependent on 5193 and superseded by its repeal. PLACE FOR REDEMPTION OF CIRCULATING NOTES TO BE 131. Sec. 5195.-Each association organized in any of sec. 32; 13 the cities named in section fifty-one hundred and ninetyone shall select, subject to the approval of the Comptroller of the Currency, an association in the city of New York, [at which it will redeem its circulating notes at par;] and may keep one-half of its lawful money reserve in cash deposits in the city of New York. [But the foregoing provision shall not apply to associations organized and located in the city of San Francisco for the purpose of issuing notes payable in gold. Each association not organized within the cities named shall select, subject to the approval of the Comptroller, an association in either of the cities named, at which it will redeem its circulating notes at par.] The Comptroller shall give public notice of the names of the associations selected [at which redemptions are to be made by the respective associations], and of any change that may be made of the association [at which the notes of any association are redeemed. Whenever any association fails either to make the selection or to redeem its notes as aforesaid, the Comptroller of the Currency may upon receiving satisfactory evidence thereof appoint a receiver, in the manner provided for in section fifty-two hundred and thirty-four, to wind up its affairs.] But this section shall not relieve any association from its liability to redeem its circulating notes at its own. counter, at par, in lawful money on demand. NOTE.-Italicized words repealed by act June 20, 1874. NATIONAL BANKS NOT REQUIRED OR PERMITTED TO * 1874, c. 343, 132. Sec. 3.- **And provided further, That so Act June 20, much of section thirty-two (section 5195, Revised Stat- sec. 3; 18 utes) of said national-bank act requiring or permitting Stat. L., 123. the redemption of its circulating notes elsewhere than at its own counter, except as provided for in this section, is hereby repealed. NOTE.-Section 3, act of June 20, 1874, is set forth in full after Revised Statutes, 5192. ADDITIONAL CENTRAL RESERVE CITIES. ACT MARCH 3, 1887. peo Act Mar. 3, 1887, c. 378, 133. Sec. 2.-That whenever three-fourths in number of the national banks located in any city of the United sec. 2; 24 States having a population of two hundred thousand Stat. L., 560. ple shall make application to the Comptroller of the Ĉurrency, in writing, asking that such city may be a central reserve city, like the city of New York, in which one-half of the lawful-money reserve of the national banks located in other reserve cities may be deposited, as provided in section fifty-one hundred and ninety-five of the Revised Statutes, the Comptroller shall have authority, with the approval of the Secretary of the Treasury, to grant such request, and every bank located in such city shall at all times thereafter have on hand, in lawful money of the United States, twenty-five per centum of its deposits, as provided in section fifty-one hundred and ninety-one of the Revised Statutes. NOTE.--Other sections of act March 3, 1887: Section 1, relating to additional reserve cities as amended by act of March 3, 1903, follows Revised Statutes, section 5192. Section 3 of this act relates to redemption of legal-tender notes. 1864, C. 106, Act July 12, NATIONAL BANKS TO TAKE NOTES OF OTHER NATIONAL Act June 3, 134. Sec. 5196.-Every national banking association sec. 32: 13 formed or existing under this Title, shall take and receive Stat. L., 109. at par, for any debt or liability to it, any and all notes or 1870, 282, bills issued by any lawfully organized national banking sec. 516 association. But this provision shall not apply to any association organized for the purpose of issuing notes payable in gold. C. LIMITATION UPON RATE OF INTEREST WHICH MAY BE Act June 3, 135. Sec. 5197.-Any association may take, receive, re30; 13 serve, and charge on any loan or discount made, or upon 1864, C. 106, sec. Stat. L., 108. Act June 3, 1864, C. 106, Act Feb. 18, any note, bill of exchange, or other evidences of debt, interest at the rate allowed by the laws of the State, Territory, or District where the bank is located, and no more, except that where by the laws of any State a different rate is limited for banks of issue organized under State laws, the rate so limited shall be allowed for associations organized or existing in any such State under this Title. When no rate is fixed by the laws of the State, or Territory, or District, the bank may take, receive, reserve, or charge a rate not exceeding seven per centum, and such interest may be taken in advance, reckoning the days for which the note, bill, or other evidence of debt has to run. And the purchase, discount, or sale of a bona fide bill of exchange, payable at another place than the place of such purchase, discount, or sale, at not more than the current rate of exchange for sight drafts in addition to the interest, shall not be considered as taking or receiving a greater rate of interest. PENALTY FOR TAKING UNLAWFUL INTEREST. JURISDICTION OF SUITS BY OR AGAINST NATIONAL BANKS. 136. Sec. 5198 [as amended 1875].—The taking, receivsec. 30; 13ing, reserving, or charging a rate of interest greater than Stat. L., 108. is allowed by the preceding section, when knowingly done, 1875, c. 80; 18 shall be deemed a forfeiture of the entire interest which Stat. L., 320. the note, bill, or other evidence of debt carries with it, or which has been agreed to be paid thereon. In case the greater rate of interest has been paid, the person by whom it has been paid, or his legal representative, may recover back, in an action in the nature of an action of debt, twice the amount of the interest thus paid from the association taking or receiving the same; provided such action is commenced within two years from the time the usurious transaction occurred. That suits, actions, and proceedings against any association under this Title may be had in any circuit, district, or territorial court of the United States held within the district in which such association may be established, or in any State, county, or municipal court in the county or city in which said association is located having jurisdiction in similar cases. NOTE. Additional provisions relating to jurisdiction of actions by and against national banks are contained in Act July 12, 1882, which is inserted after Revised Statutes, section 5136. See sections 629 and 736, Revised Statutes of United States, page 81, post, as to jurisdiction of circuit courts to enjoin Comptroller under section 5237, Revised Statutes, United States. DIVIDENDS. 1864, c. 106. 137. Sec. 5199.-The directors of any association may, Act June 3, semiannually, declare a dividend of so much of the net sec. 33; 13 profits of the association as they shall judge expedient; Stat. L., 109. but each association shall, before the declaration of a dividend, carry one-tenth part of its net profits of the preceding half year to its surplus fund until the same shall amount to twenty per centum of its capital stock. LIMITATION OF LIABILITIES WHICH MAY BE INCURRED BY ANY ONE PERSON, COMPANY, ETC. 1864, c. 106, Stat. L., 108. 138. Sec. 5200 [as amended 1906]. The total liabilities, Act June 3, to any association, of any person, or of any company, sec. 29; 13 corporation, or firm for money borrowed, including in Act June 22, the liabilities of a company or firm the liabilities of the 1906; 34 Stat. several members thereof, shall at no time exceed one-tenth L., 451. part of the amount of the capital stock of such associations, actually paid in and unimpaired, and one-tenth part of its unimpaired surplus fund: Provided, however, That the total of such liabilities shall in no event exceed thirty per centum of the capital stock of the association. But the discount of bills of exchange drawn in good faith against actually existing values, and the discount of commercial or business paper actually owned by the person negotiating the same shall not be considered as money borrowed. ASSOCIATIONS MUST NOT LOAN ON OR PURCHASE THEIR Act June 3, 1864, c. 106. 139. Sec. 5201.-No association shall make any loan or discount on the security of the shares of its own capital sec. 35; 13 stock, nor be the purchaser or holder of any such shares, Stat. L., 110. unless such security or purchase shall be necessary to prevent loss upon a debt previously contracted in good faith; and stock so purchased or acquired shall, within six months from the time of its purchase, be sold or disposed of at public or private sale; or, in default thereof, a receiver may be appointed to close up the business of the association, according to section fifty-two hundred and thirty-four. RESTRICTION ON BANK'S INDEBTEDNESS. 1864, C. 106, 140. Sec. 5202.-No association shall at any time be in- Act June 3, debted, or in any way liable, to an amount exceeding the sec: 36; 13 amount of its capital stock at such time actually paid in Stat. L., 110. Act June 3, 1864, C. 106, and remaining undiminished by losses or otherwise, except on account of demands of the nature following: First. Notes of circulation. Second. Moneys deposited with or collected by the association. Third. Bills of exchange or drafts drawn against money actually on deposit to the credit of the association, or due thereto. Fourth. Liabilities to the stockholders of the association for dividends and reserve profits. RESTRICTION UPON USE OF CIRCULATING NOTES. 141. Sec. 5203.-No association shall, either directly or sec: 37; 13 indirectly, pledge or hypothecate any of its notes or cirStat. L., 110. culation, for the purpose of procuring money to be paid in on its capital stock, or to be used in its banking operations, or otherwise; nor shall any association use its circulating notes, or any part thereof, in any manner or form, to create or increase its capital stock. Act June 3, 1864, C. 106, PROHIBITION UPON WITHDRAWAL OF CAPITAL. UN- 142. Sec. 5204.-No association, or any member thereof, sec. 38; 13 shall, during the time it shall continue its banking operaStat. L., 110. tions, withdraw, or permit to be withdrawn, either in the form of dividends or otherwise, any portion of its capital. If losses have at any time been sustained by any such association, equal to or exceeding its undivided profits then on hand, no dividend shall be made; and no dividend shall ever be made by any association, while it continues its banking operations, to an amount greater than its net profits then on hand, deducting therefrom its losses and bad debts. All debts due to any association, on which interest is past due and unpaid for a period of six months, unless the same are well secured, and in process of collection, shall be considered bad debts within the meaning of this section. But nothing in this section shall prevent the reduction of the capital stock of the association under section fifty-one hundred and forty-three. 1873, C. 269, Stat. L., 603. sec. c. Stat. L., 64. ASSESSMENT FOR FAILURE TO PAY UP CAPITAL STOCK Act Mar. 3, 143. Sec. 5205 [as amended 1876].-Every association. sec. 1; 17 which shall have failed to pay up its capital stock, as reAct June 30, quired by law, and every association whose capital stock 1876, C. 156, shall have become impaired by losses or otherwise, shall, 419 within three months after receiving notice thereof from the Comptroller of the Currency, pay the deficiency in the capital stock, by assessment upon the shareholders pro rata for the amount of capital stock held by each; and the Treasurer of the United States shall withhold the interest upon all bonds held by him in trust for any such association, upon notification from the Comptroller of the Currency, until otherwise notified by him. If any such association shall fail to pay up its capital stock, and shall refuse to go into liquidation, as provided by law, |