Evansville Nat. Bank v. Metropolitan Nat. Bank, 189; Conklin v. Second
Nat. Bank, 693.
6. Paramount lien of United States on assets of National banks.] The National
Banking Act gives to the United States a first and paramount privilege
upon all the assets of a banking association organized under the act to
reimburse to the United States the amount expended in paying the cir-
culating notes of such bank association. Therefore, the privilege given
to an attaching creditor over the assets of the First National Bank of Selma
must be postponed to that of the privilege of the United States where it
is shown, as in this case, that the Louisiana National Bank, a debtor of
the First National Bank of Selma, had notice of the claim of the United
States on the assets of the First National Bank of Selma before the seiz-
ure by the creditors under the attachment. Schmidt v. First Nat. Bank,
505.
Sale of shares subject to.] See SALE, 921.
Where action for penalty for excessive interest barred.] See INTEREST, 360, 824,
849, 883.
1. When banks can make, on security of its own stock.] National banks can
make valid loans and discounts on the security of their stock only when
necessary to prevent loss on debts previously contracted in good faith.
Bank v. Lanier, 70.
-] The placing by one bank of its funds on permanent deposit with
another bank is a loan within the prohibition. Ib.
] Loans by National banks to their stockholders do not give them a
lien on the stock of such stockholders. Ib.
4. Bank may take stock as collateral security.] National banks may take stock
as collateral security for a loan. Shoemaker v. Nat. Mechanics' Bank,
169; Canfield v. State Nat. Bank, 312.
5. National banks may take pledge of chattels.] National banks may take
personal chattels (e. g., a locomotive) as security for loans and discounts.
Pittsburgh Locomotive and Car Works v. State Nat. Bank of Keokuk, 315.
6. Loans in excess of one-tenth of capital.] Loans by a National bank to a
person or corporation are valid and recoverable, although in excess of
one-tenth of its capital stock. Union Hill Mining Co. v. Rocky Mountain
Nat. Bank, 151; Shoemaker v. Nat. Mechanics' Bank,
169;
Stewart v. Nat.
Union Bank, 175; Allen v. First Nat. Bank, 828; Elder v. First Nat.
Bank, 488; O'Hare v. Second Nat. Bank, 869.
7. Renewal notes, acceptance of] Whether other notes have been accepted
by a bank in renewal of notes sued on is a question for the jury. Cake
v. First Nat. Bank, 890.
MESNE PROCESS.
See ATTACHMENT.
MISAPPLYING FUNDS.
Injunction to restrain.] See INJUNCTION.
Right of National banks to take.] See REAL ESTATE; CHATTEL MORTGAGE,
486.
1. Liable for obligations of State bank.] A State bank was robbed, and a
reward was offered by the cashier for the detection of the thieves. The
bank afterward became a National bank, and suit was brought against it
as such for the reward. Held, that the action was properly brought, as
the National bank was responsible for all the liabilities of the State
bank. Kelsey v. Nat. Bank, 847.,
-.] No authority from a State is necessary to enable a State bank to
become a National bank. Casey v. Galli, 142.
Cannot be garnisheed.] See Havens v. Nat. City Bank, 783.
Cannot keep a branch office for discount and deposit in another State.] See
OFFICE, 784.
Liability of banks for, in preserving special deposits.] See DEPOSITS FOR SAFE-
When discharges sureties on cashier's bond.] See BOND.
See CIRCULATION; PROMISSORY NOTES.
Where a statute required, that on complaint to the board of equalization that
another was assessed too low, notice of such complaint should be given to
such other or his agent, held that a National bank was the agent of its
shareholders, and that notice to the bank was sufficient. Nickerson v.
Kimball, 409.
National banks cannot maintain branch offices in New York.] A National
bank located in another State cannot keep an office for discount and
deposit in New York, and cannot maintain an action upon a note dis-
counted at such office. Nat. Bank v. Phonix Warehousing Co., 784.
1. Removal of.] Where the articles of association of a National bank, signed by
all the original stockholders, and giving express authority to the directors
to remove the president, have been transmitted to the Comptroller of the
Currency, who has, on receiving the same, issued circulating notes to the
bank, he will be deemed to have approved of the articles, and the
directors will have the power to remove the president, even though the
bank has never legally adopted any by-laws. Taylor v. Hutton, 755.
-] It is not necessary that any by-laws should be adopted before a
president may be chosen or removed, and another appointed in his place.
Ib.
-] Section 11 of the act of Congress, relative to National banks,
authorizes the directors to remove the president of a banking associa
tion. lb.
4. Directors may remove at any time.] Plaintiff, who had been hired by the
president of a National bank as teller for a specified time, refused to
obey certain orders of the cashier. Some time afterward the cashier
informed the president of such disobedience, and he thereupon, before the
expiration of the specified time, discharged plaintiff. Held, that plaintiff
was not entitled to recover his salary for the unexpired portion of the term
of service. Harrington v. First Nat. Bank, 760.
-] A servant may be discharged by the master for misconduct before
the expiration of the time for which he was hired, although the discharge
is not made at the precise time of the misconduct, nor the grounds stated.
Ib.
-] A National bank cannot hire one of its officers for a specified time.
Ib.
] Knowledge, without objection, by the directors of a bank that one
is acting in its employ does not ratify the details of a contract for his
employment, by the president, unless they know of such details. Ib.
Indictment of.] See EMBEZZLEMENT.
When bank not bound by representations of.] See BANKING BUSINESS, 533.
1. Of National bank -how put in issue.] The organization of a National bank
under the National Banking Act may be put in issue by a party who has
not estopped himself. But a party who has accepted as payee a promis-
sory note payable at a banking institution which the parties to the note
style a National bank, and has sold and transferred the note to such
banking institution, cannot be allowed to raise that issue by merely
averring want of knowledge or information sufficient to form a belief as
to whether the institution is a body corporate, etc. Huffaker v. Nat.
Bank, 504.
] The certificate of the Comptroller is conclusive evidence of the
validity of the organization of the bank in an action by a receiver against
stockholders. Casey v. Galli, 142.
To an action to enforce liability of shareholders.] See ACTION, 17.
When bank may maintain suit to restrain tax on shares.] See TAXATION, 825.
1. Of tax.] National banks may be required to pay the tax assessed on the
shares. Nat. Bank v. Commonwealth, 34.
-] Under a statute providing that the tax levied against shares of
stock should be paid by the bank, held, that payment of a tax so levied
could be enforced by distraint of the property of the bank. First Nat.
Bank v. Douglas County, 268.
.] In the absence of express statutory authority, a tax collector cannot
seize the property of the bank to enforce a tax assessed against share-
holders. First Nat. Bank v. Hershire, 465.
-.] Where the warrant for the collection of a tax assessed against share-
holders directs the collector "to levy the same of the goods and chattels
of such person," the collector cannot seize the property of the bank
thereon. First Nat. Bank v. Fancher, 697.
Presenting check for.] See CHECK, 590.
Action to recover.] See ACTIONS; INTEREST.
Not taxable.] The personal property of National banks, such as safes, office
furniture, etc., is not taxable. Nat. Bank v. Young, 451.
PLACE OF BUSINESS.
See BANKING BUSINESS.
In an action against a stockholder to enforce his liability, the prior determina-
tion of the Comptroller that such proceeding is necessary and the extent
to which the liability shall be enforced must be pleaded and proved.
Kennedy v. Gibson, 17.
Liability of pledgee of stock.] See STOCKHOLDER, 406, 471, 554.
PLEDGEE.
See STOCKHOLDER.
PRESIDENT.
See ACCEPTANCE, 600.
PRINCIPAL AND SURETY.
See BOND.
acceptance of] Whether other notes have been accepted by
a bank in renewal of notes sued on is a question for the jury. Cake v.
Right of bank to purchase.] See BANKING BUSINESS, 629.
Aocommodation note.] See BANKING BUSINESS, 622.
Sureties on.] See SURETIES, 811.
1. National banks as depositaries of public money.] Designating a National
bank as a depositary of public moneys does not constitute it an agent of
the government, or render the government liable for moneys lost by a
failure of such bank. Branch v. The United States, 363.
2. Such bank does not become a custodian of the public moneys
deposited with it, but it becomes a debtor to the United States the same
as it does to other depositors for individual deposits. Ib.
-] Certain moneys coming into the possession of the clerk of a 'Fed-
eral court pending a litigation were by him deposited in a National bank
which had been designated as a depositary of public moneys. The bank
failed. Held, that the United States were not liable for the money so
deposited. Ib.
1. When National banks can take mortgages on.] A National bank may
take a mortgage on real estate to secure a debt previously contracted, but
not to secure either a contemporaneous loan or future advances. Kan
sas Valley Nat. Bank v. Rowell, 264; Merchants' Nat. Bank v. Mears, 353;
First Nat. Bank v. Haire, 480; Ornn v. Merchants' Nat. Bank, 490;
Matthews v. Skinker, 647; Crocker v. Whitney, 745; Allen v. First Nat.
Bank, 828; Fowler v. Scully, 854; Wood v. People's Nat. Bank, 888.
2. When National banks can take real security.] A National bank cannot
loan money on real estate security; but after a creditor has made default,
or after a loan has been actually made, the bank may take real estate
security there for unless the transaction be colorable for the purpose of
evading the statute. Merchants' Nat. Bank v. Mears, 353.
3. When National bank may take mortgage on real estate.] A National bank
loaned money upon a note made by one member of a firm to another, and
indorsed by the latter to the bank. The maker, when the note was made,
gave the indorser a bond and mortgage on real estate to secure him
against loss, and it was agreed between the parties and the bank that in
case of default the security should inure to the bank. Held, that the bond
and mortgage were not within the provision of the National Banking Act
forbidding National banks purchasing real estate, and that they were legal
and binding and could be enforced by the bank. First Nat. Bank v.
Haire, 480.
4. Mortgage of, to National bank.] A National bank took a mortgage on real
estate to secure the payment of money previously loaned. There was a
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