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Oath and bond The Deputy Comptroller shall also take the oath of office of Deputy. prescribed by the Constitution and laws of the United States, and shall give a like bond in the penalty of fifty thousand dollars.


Interest in national banks prohibited.

Seal of office.

See act of Feb. ing Rev. Stat.

18, 1875, correct

Rooms, vaults, furniture, etc., for Bureau.

Annual report.
See act of Feb.

Condition of national associations.

5. (SEC. 328.) The Comptroller of the Currency shall em ploy, from time to time, the necessary clerks, to be appointed and classified by the Secretary of the Treasury, to discharge such duties as the Comptroller shall direct.

6. (SEC. 329.) It shall not be lawful for the Comptroller or the Deputy Comptroller of the Currency, either directly or indirectly, to be interested in any association issuing national currency under the laws of the United States.

7. (SEC. 330.) The seal devised by the Comptroller of the Currency for his office, and approved by the Secretary of the Treasury, shall continue to be the seal of office of the Comptroller, and may be renewed when necessary. A description of the seal, with an impression thereof, and a certificate of approval of the Secretary of the Treasury, shall be filed in the office of the Secretary of State.

Comptroller to examine banks in

9. (SEC. 332.) The Comptroller of the Currency, in addiDistrict of Co- tion to the powers conferred upon him by law for the exam


ination of national banks, is further authorized, whenever he may deem it useful, to cause examination to be made into the condition of any bank in the District of Columbia organized under act of Congress. The Comptroller, at his discretion, may report to Congress the results of such examination. The expense necessarily incurred in any such examination shall be paid out of any appropriation made by Congress for special bank examinations.

10. (SEC. 333.) The Comptroller of the Currency shall

18, 1875, correct- make an annual report to Congress, at the commencement

ing Rev. Stat.

8. (SEC. 331.) There shall be assigned from time to time, to the Comptroller of the Currency, by the Secretary of the Treasury, suitable rooms in the Treasury building for conducting the business of the Currency Bureau, containing safe and secure fire-proof vaults, in which the Comptroller shall deposit and safely keep all the plates not necessarily in the possession of engravers or printers, and other valuable things belonging to his department; and the Comptroller shall from time to time furnish the necessary furniture, stationery, fuel, lights, and other proper conveniences for the transaction of the business of his office.

of its session, exhibiting

First. A summary of the state and condition of every association from which reports have been received the preceding year, at the several dates to which such reports re

fer, with an abstract of the whole amount of banking capital returned by them, of the whole amount of their debts and liabilities, the amount of circulating notes outstanding, and the total amount of means and resources, specifying the amount of lawful money held by them at the times of their several returns, and such other information in relation to such associations as, in his judgment, may be useful.


Second. A statement of the associations whose business Closed associahas been closed during the year, with the amount of their circulation redeemed and the amount outstanding.

Third. Any amendment to the laws relative to banking Amendments to banking laws. by which the system may be improved, and the security of" the holders of its notes and other creditors may be increased.


State banks and

Fourth. A statement exhibiting under appropriate heads Condition the resources and liabilities and condition of the banks, savings banks. banking companies, and savings banks organized under the laws of the several States and Territories; such information to be obtained by the Comptroller from the reports made by such banks, banking companies, and savings banks to the legislatures or officers of the different States and Territories, and, where such reports can not be obtained, the deficiency to be supplied from such other authentic sources as may be available.

Fifth. The names and compensation of the clerks employed by him, and the whole amount of the expenses of the reau. banking department during the year.

11. (SEC. 3811.) When the annual report of the Comp. troller of the Currency upon the national banks and banks under State and Territorial laws is completed, or while it is in process of completion, if thereby the business may be sooner dispatched, the work of printing shall be commenced, under the superintendence of the Secretary, and the whole shall be printed and ready for delivery on or before the first day of December next after the close of the year to which the report relates.

Clerks, and expenses of Bu


report may be printed. See act of Feb. ing Rev. Stat.

18, 1875, correct




12. (SEC. 5133.) Associations for carrying on the business of banking under this Title may be formed by any number of natural persons, not less in any case than five. They Articles of as- shall enter into articles of association, which shall specify in general terms the object for which the association is formed, and may contain any other provisions, not inconsistent with law, which the association may see fit to adopt for the regulation of its business and the conduct of its affairs. These articles shall be signed by the persons uniting to form the association, and a copy of them shall be forwarded to the Comptroller of the Currency, to be filed and preserved in his office.

Formation of national banking associations.

Organization certificate.

Name of association.

Place of busi


Capital stock.


Object of certificate.

Corporate powers of associations.

13. (SEC. 5134.) The persons uniting to form such an association shall, under their hands, make an organization certificate, which shall specifically state:

First. The name assumed by such association; which name shall be subject to the approval of the Comptroller of the Currency.

Fourth. The names and places of residence of the shareholders and the number of shares held by each of them.

ment of organiza

Fifth. The fact that the certificate is made to enable such persons to avail themselves of the advantages of this Title. Acknowledg- 14. (SEC. 5135.) The organization certificate shall be action certificate. knowledged before a judge of some court of record, or notary public; and shall be, together with the acknowledgment thereof, authenticated by the seal of such court, or notary, transmitted to the Comptroller of the Currency, who shall record and carefully preserve the same in his office.

15. (SEC. 5136.) Upon duly making and filing articles of association and an organization certificate, the association 2 Abb., U. S., shall become, as from the date of the execution of its organ


ization certificate, a body corporate, and as such, and in the

Second. The place where its operations of discount and deposit are to be carried on, designating the State, Territory, or district, and the particular county and city, town, or village.

Third. The amount of capital stock and the number of shares into which the same is to be divided.

name designated in the organization certificate, it shall have power

First. To adopt and use a corporate seal.

Second. To have succession for the period of twenty years from its organization, unless it is sooner dissolved according to the provisions of its articles of association, or by the act of its shareholders owning two-thirds of its stock, or unless its franchise becomes forfeited by some violation of law.


Third. To make contracts.


Fourth. To sue and be sued, complain and defend, in any Suits. court of law and [or] equity, as fully as natural persons.

of officers.

Fifth. To elect or appoint directors, and by its board of Appointment directors to appoint a president, vice-president, cashier, and other officers, define their duties, require bonds of them and fix the penalty thereof, dismiss such officers or any of them at pleasure, and appoint others to fill their places.

First. Such as shall be necessary for its immediate accommodation in the transaction of its business.

Succession. See act July 12, 1882, page 68.

Sixth. To prescribe, by its board of directors, by-laws By-laws. not inconsistent with law, regulating the manner in which its stock shall be transferred, its directors elected or ap pointed, its officers appointed, its property transferred, its general business conducted, and the privileges granted to it by law exercised and enjoyed.

Seventh. To exercise by its board of directors, or duly Incidental authorized officers or agents, subject to law, all such incidental powers as shall be necessary to carry on the business of banking; by discounting and negotiating promissory notes, drafts, bills of exchange, and other evidences of debt; by receiving deposits; by buying and selling exchange, coin, and bullion; by loaning money on personal security; and by obtaining, issuing, and circulating notes according to the provisions of this Title.

mence business.

But no association shall transact any business except such When may comas is incidental and necessarily preliminary to its organization, until it has been authorized by the Comptroller of the Currency to commence the business of banking.

real property.

16. (SEC. 5137.) A national banking association may pur- Power to hold chase, hold, and convey real estate for the following purposes, and for no others:

Second. Such as shall be mortgaged to it in good faith by way of security for debts previously contracted.

Third. Such as shall be conveyed to it in satisfaction of debts previously contracted in the course of its dealings.



Limitation to mortgages, etc.

Minimum capital required.

Fourth. Such as it shall purchase at sales under judg ments, decrees, or mortgages held by the association, or shall purchase to secure debts due to it.

But no such association shall hold the possession of any real estate under mortgage, or the title and possession of any real estate purchased to secure any debts due to it, for a longer period than five years.

17. (SEC. 5138.) No association shall be organized under this Title with a less capital than one hundred thousand dollars; except that banks with a capital of not less than fifty thousand dollars may, with the approval of the Secretary of the Treasury, be organized in any place the popula tion of which does not exceed six thousand inhabitants. No association shall be organized in a city the population of which exceeds fifty thousand persons with a less capital than two hundred thousand dollars.

Value and transfer of shares of stock.

18. (SEC. 5139.) The capital stock of each association shall be divided into shares of one hundred dollars each, and be deemed personal property, and transferable on the books of the association in such manner as may be prescribed in Rights and lia- the by-laws or articles of association. Every person becom

bilities of persons

holding shares by ing a shareholder by such transfer shall, in proportion to


Van Allen vs. his shares, succeed to all the rights and liabilities of the

The Assessors, 3
Wall., 573.

prior holder of such shares; and no change shall be made in

the articles of association by which the rights, remedies, or security of the existing creditors of the association shall be impaired.

When capital 19. (SEC. 5140.) At least fifty per centum of the capital

stock must be

paid in and certi- stock of every association shall be paid in before it shall be


authorized to commence business; and the remainder of the capital stock of such association shall be paid in installments of at least ten per centum each, on the whole amount of the capital, as frequently as one installment at the end of each succeeding month from the time it shall be authorized by the Comptroller of the Currency to commence business; and the payment of each installment shall be certified to the Comptroller, under oath, by the president or cashier of the association.

Proceedings if 20. (SEC. 5141.) Whenever any shareholder, or his as

shareholder fails

to ments.

pay install- signee, fails to pay any installment on the stock when the same is required by the preceding section to be paid, the directors of such association may sell the stock of such delinquent shareholder at public auction, having given three weeks' previous notice thereof in a newspaper published and of general circulation in the city or county where the association is located, or if no newspaper is pub

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