property of the shareholders, and of resident shareholders only. First National Bank v. City of Richmond, 39 Fed. Rep. 309. 21. Capital of national and State banks invested in United States securities cannot be subjected to State taxation; but shares of bank stock may be taxed in the hands of their individual owners at the actual, instead of their par value, without regard to the fact that part or whole of the capital of the corporation might be so invested. Palmer v. McMahon, 133 U. S. 660, 33 L. ed. 772, 10 Sup. Ct. Rep. 324. 22. "Under acts permitting the deduction of debts from the value of all a person's taxable property, such deductions must be permitted from the value of such shares; but a statute is not void because it does not provide for a deduction; nor is the assessment void if the deductions are not made but voidable only." Id. 23. When a law provides a mode for confirming or contesting an assessment for taxation, with appropriate notice to the person charged, the assessment cannot be said to deprive the owner of his property without due process of law. Id. 24. Assessors should give all persons taxed an opportunity to be heard, but it is sufficient if the law provides for a board of revision, authorized to hear complaints respecting the justice of the assessment, and prescribes the time during which and the place where such complaints may be made. Id. 25. The territories possess the same power of taxing national banks which the States enjoy. Talbot v. Silver Bow County, 139 U. S. 438, 35 L. ed. 210. 11 Sup. Ct. Rep. 594. 26. Trust companies in New York are not engaged in a "banking business" in a legal or commercial sense under the Banking Law, and assessing bank stock at a greater rate than individual capital is assessed in trust companies does not violate section 5219, U. S. Comp. Stat. 1901, p. 3502. Jenkins v. Neff, 163 N. Y. 320, 57 N. E. 408. 27. The deduction of debts from credits allowed in personal assessments, not allowed to national bank stock is not illegal discrimination. First National Bank of Wellington v. Chapman, 173 U. S. 205, 43 L. ed. 669, 19 Sup. Ct. Rep. 407. 28. As to state taxation of national banks, see editorial note to McHenry v. Downer, 45 L. R. A. 737, containing a full presentation of the authorities on that question; see also editorial note to South Covington & Cincinnati Street R. Co. v. Bellevue, 57 L. R. A. 56, as to state taxation of franchises of such banks. 29. The tax on property of a bank in which United States securities are included is beyond the State power, and is also within the prohibition of section 3701 of U. S. Revised Statutes. Home Sav. Bank v. Des Moines, 205 U. S. 503. CHAPTER IV. DISSOLUTION AND RECEIVERSHIP. SECTION 5220. Voluntary dissolution of association. 5221. Notice of intent to dissolve. 5222. Deposit of lawful money to redeem outstanding circulation. 5225. Destruction of redeemed notes. 5226. Mode of protesting notes. 5227. Examination by special agent. 5228. Continuing business after default. 5229. Notice to holders; redemption at Treasury; cancellation of bonds. 5230. Sale of bonds at auction. 5231. Sale of bonds at private sale. 5232. Disposal of protested notes. 5233. Cancellation of national bank-notes. 5234. Appointment of receivers. 5235. Notice to present claims. 5236. Dividends. 5237. Injunction upon receivership. 5238. Fees and expenses. 5239. Penalty for violation of this title. 5240. Appointment of occasional examiners. 5241. Limit of visitorial powers. 5242. Transfers when void. 5243. Use of the title "national." § 5220. [U. S. Comp. Stat. 1901, p. 3503.] Any association may go into liquidation and be closed by the vote of its shareholders owning two-thirds of its stock. It was not intended by this section that, upon simply resolving to go into liquidation, and providing for the redemption of its circulating notes, the banking association should be dissolved. If by such acts it were dissolved, all actions by or against it would abate, and parties might be left utterly without remedy for the enforcement of the plainest right, or recompense for the most grievous wrong. Ordway v. Central Nat. Bank, 47 Md. 217, 28 Am. Rep. 455. § 5221. [U. S. Comp. Stat. 1901, p. 3503.] Whenever a vote is taken to go into liquidation it shall be the duty of the board of directors to cause notice of this fact to be certified, under the seal of the association, by its president or cashier, to the Comptroller of the Currency, and publication thereof to be made for a period of two months 1 in a newspaper published in the city of New York, and also in a newspaper published in the city or town in which association is located, or if no newspaper is there published, then in the newspaper published nearest thereto, that the association is closing up its affairs, and notifying the holder of its notes and other creditors to present the notes and other claims against the association for payment. See Act of July 12, 1882, §§ 6 and 7, post. § 5222. [U. S. Comp. Stat. 1901, p. 3503.] Within six months from the date of the vote to go into liquidation, the association shall deposit with the Treasurer of the United States lawful money of the United States sufficient to redeem all its outstanding circulation. The Treasurer shall execute duplicate receipts for money thus deposited, and deliver one to the association and the other to the Comptroller of the Currency, stating the amount received by him, and the purpose for which it has been received; and the money shall be paid into the Treasury of the United States, and placed to the credit of such association upon redemption account. See Act of July 12, 1882, §§ 6 and 7, post. § 5223. [U. S. Comp. Stat. 1901, p. 3504.] An association which is in good faith winding up its business for the purpose of consolidating with another association shall not be required to deposit lawful money for its outstanding circulation; but its assets and liabilities shall be reported by the association with which it is in process of consolidation. § 5224. [U. S. Comp. Stat. 1901, p. 3504.] Whenever a sufficient deposit of lawful money to redeem the outstanding circulation of an association proposing to close its business has been made, the bonds deposited by the association to escure payment of its notes shall be reassigned to it, in the manner prescribed by section fifty-one hundred and sixty-two. And thereafter the association and its shareholders shall stand discharged from all liabilities upon the circulating notes, and those notes shall be redeemed at the Treasury of the United States. And if any such bank shall fail to make the deposit and take up its bonds for thirty days after the expiration of the time specified, the Comptroller of the Currency shall have power to sell the bonds pledged for the circulation of said bank, at public auction in New York city, and, after providing for the redemption and cancellation of said circulation and the necessary expenses of the sale, to pay over any balance remaining to the bank or its legal representative. (As amended by Act of February 18, 1875.) See Act of July 12, 1882, §§ 6 and 7, post. § 5225. [U. S. Comp. Stat. 1901, p. 3504.] Whenever the treasurer has redeemed any of the notes of an association which has commenced to close its affairs under the five preceding sections, he shall cause the notes to be mutilated and charged to the redemption account of the association; and all notes so redeemed by the Treasurer shall, every three months, be certified to and burned in the manner prescribed in section fifty-one hundred and eighty-four. (As amended by Act of February 27, 1877.) See Act of June 23, 1874, post; Act of July 12, 1882, §§ 6 and 7, post. § 5226. [U. S. Comp. Stat. 1901, p. 3505.] Whenever any national banking association fails to redeem in the lawful money of the United States any of its circulating notes, upon demand of payment duly made during the usual hours of business, at the office of such association, or at its designated place of redemption, the holder may cause the same to be protested, in one package by a notary public, unless the president or cashier of the association whose notes are presented for payment, or the president or cashier of the association at the place at which they are redeemable, offers to waive demand and notice of the protest, and in pursuance of such offer, makes, signs and delivers to the party making such demand an admission in writing, stating the time of the demand, the amount demanded, and the fact of the non-payment thereof. The notary public, on making such protest, or upon receiving such admission, shall forthwith forward such admission or notice of protest to the Comptroller of the Currency, retaining a copy thereof. If, however, satisfactory proof is produced to the notary public that the payment of the notes demanded is restrained by order of any court of competent jurisdiction, he shall not protest the same. When the holder of any notes causes more than one note or package to be protested on the same day, he shall not receive pay for more than one protest. § 5227. [U. S. Comp. Stat. 1901, p. 3505.] On receiving notice that any national banking association has failed to redeem any of its circulating notes, as specified in the preceding section, the Comptroller of the Currency, with the concurrence of the Secretary of the Treasury, may appoint a special agent, of whose appointment immediate notice shall be given to such association, who shall immediately proceed to ascertain whether it has refused to pay its circulating notes in the lawful money of the United States, when demanded, and shall report to the Comptroller the fact so ascertained. If from such protest, and the report so made, the Comptroller is satisfied that such association has refused to pay its circulating notes and is in default, he shall, within thirty days after he has received notice of such failure, declare the bonds deposited by such association forfeited to the United States, and they shall thereupon be so forfeited. § 5228. [U. S. Comp. Stat. 1901, p. 3506.] After a default on the part of an association to pay any of its circulating notes has been ascertained by the Comptroller, and notice thereof has been given by him to the association, it shall not be lawful for the association suffering the same to pay out any of its notes, discount any notes or bills, or otherwise prosecute the business of banking, except to receive and safely keep money belonging to it, and to deliver special deposits. The provision of this section which makes it lawful for a national bank, after its failure to "deliver special deposits," implies that such banks may, as a part of their legitimate business, receive special deposits, and this implication is as effectual as an express declaration of the same thing would be. The phrase "special deposits," thus used, embraces securities of the United States. National Bank v. Graham, 100 U. S. (10 Otto) 699, 25 L. ed. 750. And see Pattison v. Syracuse National Bank, 80 N. Y. 82, 36 Am. Rep. 582. § 5229. [U. S. Comp. Stat. 1901, p. 3506.] Immediately upon declaring the bonds of an association forfeited for non-payment of its notes, the Comptroller shall give notice, in 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 in lawful money of the United States; whereupon the Comptroller may, in his discretion, cancel an amount of bonds pledged by such association equal at current market rates, not exceeding par, to the notes paid. |