Act for associations originally organized as national banking as

sociations.

Act June 3, 1864, c. 106, § 44, 13 Stat. 112. Act Dec. 23, 1913, c. 6, § 8, 38 Stat. ―.

This section, as enacted in the Revised Statutes, was as follows: "Any bank incorporated by special law, or any banking institution organized under a general law of any State, may become a national association under this Title by the name prescribed in its organization certificate; and in such case the articles of association and the organization certificate may be executed by a majority of the directors of the bank or banking institution; and the certificate shall declare that the owners of two-thirds of the capital stock have authorized the directors to make such certificate, and to change and convert the bank or banking institution into a national association. A majority of the directors, after executing the articles of association and organization certificate, shall have power to execute all other papers, and to do whatever may be required to make its organization perfect and complete as a national association. The shares of any such bank may continue to be for the same amount each as they were before the conversion, and the directors may continue to be the directors of the association until others are elected or appointed in accordance with the provisions of this chapter; and any State bank which is a stockholder in any other bank, by authority of State laws, may continue to hold its stock, although either bank, or both, may be organized under and have accepted the provisions of this Title. When the Comptroller of the Currency has given to such association a certificate, under his hand and official seal, that the provisions of this Title have been complied with, and that it is authorized to commence the business of banking, the association shall have the same powers and privileges, and shall be subject to the same duties, responsibilities, and rules, in all respects, as are prescribed for other associations originally organized as national banking associations, and shall be held and regarded as such an association. But no such association shall have a less capital than the amount prescribed for associations organized under this Title."

Other provisions of said Federal Reserve Act, mentioned in this section, are set forth post, §§ 9785-9805.

It was amended by the Federal Reserve Act of Dec. 23, 1913, c. 6, § 8, cited above, to read as set forth here.

State banks may not become members of federal reserve banks unless possessed of a paid-up unimpaired capital sufficient to entitle them to become national banking associations, by said Federal Reserve Act of Dec. 23, 1913, c. 6. § 19, post, § 9792.

§ 9695. (R. S. § 5155.) State banks having branches.

It shall be lawful for any bank or banking association organized under State laws, and having branches, the capital being joint and assigned to and used by the mother-bank and branches in definite proportions, to become a national banking association in conformity with existing laws, and to retain and keep in operation its branches, or such one or more of them as it may elect to retain; the amount of the circulation redeemable at the mother-bank, and each branch, to be regulated by the amount of capital assigned to and used by each.

Act March 3, 1865, c. 78, § 7, 13 Stat. 484.

§ 9696. (R. S. § 5156.) Reservation of rights of associations organized under act of 1863.

Nothing in this Title shall affect any appointments made, acts done, or proceedings had or commenced prior to the third day of June, eighteen hundred and sixty-four, in or toward the organization of

any national banking association under the act of February twentyfive, eighteen hundred and sixty-three; but all associations which, on the third day of June, eighteen hundred and sixty-four, were organized or commenced to be organized under that act, shall enjoy all the rights and privileges granted, and be subject to all the duties, liabilities, and restrictions imposed by this Title, notwithstanding all the steps prescribed by this Title for the organization of associations were not pursued, if such associations were duly organized under that act.

Act June 3, 1864, c. 106, § 62, 13 Stat. 118.

CHAPTER TWO

Obtaining and Issuing Circulating Notes

§ 9697. (R. S. § 5157.) What associations are governed by chapters 2, 3, and 4.

The provisions of chapters two, three, and four of this Title, which are expressed without restrictive words, as applying to "national banking associations," or to "associations," apply to all associations

organized to carry on the business of banking under any act of Congress.

The Federal Reserve Act Dec. 23, 1913, c. 6, post, §§ 9785-9805, created a new system for the government and regulation of all national banks, and such of the state banks and trust companies as, possessing the necessary qualifications, should signify their acceptance of the act.

§ 9698. (R. S. § 5158.) Registered bonds intended by the term "United States bonds."

The term "United States bonds," as used throughout this chapter, shall be construed to mean registered bonds of the United States. Act June 3, 1864, c. 106, § 4, 13 Stat. 100.

(R. S. § 5159. Repealed.)

This section was as follows:

"Every association, after having complied with the provisions of this Title, preliminary to the commencement of the banking business, and before it shall be authorized to commence banking business under this Title, shall transfer and deliver to the Treasurer of the United States any United States registered bonds, bearing interest, to an amount not less than thirty thousand dollars and not less than one-third of the capital stock paid in. Such bonds shall be received by the Treasurer upon deposit, and shall be by him safely kept in his office, until they shall be otherwise disposed of, in pursuance of the provisions of this Title."

*

It was repealed by the Federal Reserve Act of Dec. 23, 1913, c. 6, § 17, .38 Stat. which provided that "so much of the provisions of section fiftyone hundred and fifty-nine of the Revised Statutes of the United States * as require that before any national banking associations shall be authorized to commence banking business it shall transfer and deliver to the Treasurer of the United States a stated amount of United States registered bonds is hereby repealed." The further provisions of the section not included in said description of the provisions repealed, as they related only to the custody and disposition of the bonds required to be deposited by the repealed provisions, became temporary merely upon such repeal.

Banks having a capital of $150,000, or less, were not to be required to keep on deposit bonds in excess of one-fourth of the capital stock as security for their circulating notes, by the Currency Act of July 12, 1882, c. 290, § 8, post, § 9708. So much of said Act July 12, 1882, c. 290, § 8, as required that before any national banking association should be authorized to commence banking business it should transfer and deliver to the Treasurer of the United States a stated amount of United States registered bonds was repealed by the Federal Reserve Act of Dec. 23, 1913, c. 6, § 17, 38 stat. —

Other provisions for the issue of circulating notes to members of national currency associations to be used in emergencies were made by the Aldrich-Vreeland Act of May 30, 1908, c. 229, post, §§ 9729-9743. Such notes were authorized to be issued on any securities, including commercial paper, on approval thereof by the Secretary of the Treasury. Said act also provided for the issue of additional circulating notes to national banking associations on the security of bonds, other than United States bonds, by sections 3 and 4 thereof, post, §§ 9731, 9732.

In bonds to defray and reimburse expenditures on account of the Panama Canal, issued under the Payne-Aldrich Tariff Act of Aug. 5, 1909, c. 6, § 39, ante, § 6828, the Secretary of the Treasury was authorized to insert a provision that such bonds should not be receivable as security for the issue of circulating notes to national banks, and bonds containing such provision were not to be receivable for that purpose, by Act March 2, 1911, c. 195, ante, § 6829.

§ 9699. (R. S. § 5160.) Increase or reduction of deposit to correspond with capital.

The deposit of bonds made by each association shall be increased

as its capital may be paid up or increased, so that every association shall at all times have on deposit with the Treasurer registered United States bonds to the amount of at least one-third of its capital stock actually paid in. And any association that may desire to reduce its capital or to close up its business and dissolve its organization, may take up its bonds upon returning to the Comptroller its circulating notes in the proportion hereinafter required, or may take up any excess of bonds beyond one-third of its capital stock, and upon which no circulating notes have been delivered."

Act June 3, 1864, c. 106, § 16, 13 Stat. 104.

All provisions of existing statutes, requiring that before any national banking association should be authorized to commence banking business it should transfer and deliver to the Treasurer of the United States a stated amount of United States registered bonds, were repealed by the Federal Reserve Act of Dec. 23, 1913, c. 6, § 17, 38 Stat.

§ 9700. (R. S. § 5161.) Exchange of coupon for registered bonds. To facilitate a compliance with the two preceding sections, the Secretary of the Treasury is authorized to receive from any association, and cancel, any United States coupon bonds, and to issue in lieu thereof registered bonds of like amount, bearing a like rate of interest, and having the same time to run.

Act June 3, 1864, c. 106, § 16, 13 Stat. 104.

All provisions of existing statutes including R. S. § 5159, one of the two preceding sections mentioned in this section, requiring that before any national banking associations should be authorized to commence banking business it should transfer and deliver to the Treasurer of the United States a stated amount of United States registered bonds, were repealed by the Federal Reserve Act of Dec. 23, 1913, c. 6, § 17, 38 Stat.

§ 9701. (R. S. § 5162.) Manner of making transfers of bonds. All transfers of United States bonds, made by any association under the provisions of this Title, shall be made to the Treasurer of the United States in trust for the association, with a memorandum written or printed on each bond, and signed by the cashier, or some other officer of the association making the deposit. A receipt shall be given to the association, by the Comptroller of the Currency, or by a clerk appointed by him for that purpose, stating that the bond is held in trust for the association on whose behalf the transfer is made, and as security for the redemption and payment of any circulating notes that have been or may be delivered to such association. No assignment or transfer of any such bond by the Treasurer shall be deemed valid unless countersigned by the Comptroller of the Cur

rency.

Act June 3, 1864, c. 106, § 19, 13 Stat. 105.
See notes to R. S. § 5160, ante, § 9699.

§ 9702. (R. S. § 5163.) Registry of transfers.

The Comptroller of the Currency shall keep in his Office a book in which he shall cause to be entered, immediately upon countersigning it, every transfer or assignment by the Treasurer, of any bonds belonging to a national banking association, presented for his signature. He shall state in such entry the name of the association from

whose accounts the transfer is made, the name of the party to whom it is made, and the par value of the bonds transferred.

Act June 3, 1864, c. 106, §§ 19, 20, 13 Stat. 105.

The provisions of this section were made applicable to bonds, other than United States bonds, deposited by national banks for the issue of the additional circulating notes authorized by the Aldrich-Vreeland (National Currency Associations) Act of May 30, 1908, c. 229, § 3, post, § 9731, by section 4 of that act, post, § 9732.

See notes to R. S. § 5160, ante, § 9699.

§ 9703. (R. S. § 5164.) Notice of transfer to be given to association interested.

The Comptroller of the Currency shall, immediately upon countersigning and entering any transfer or assignment by the Treasurer, of any bonds belonging to a national banking association, advise. by mail the association from whose accounts the transfer is made, of the kind and numerical designation of the bonds, and the amount thereof so transferred.

Act June 3, 1864, c. 106, § 19, 13 Stat. 105.

The provisions of this section were made applicable to bonds, other than United States bonds, deposited by national banks for the issue of the additional circulating notes authorized by the Aldrich-Vreeland (National Currency Associations) Act of May 30, 1908, c. 229, § 3, post, § 9731, by section 4 of that act, post, § 9732.

See notes to R. S. § 5160, ante, § 9699.

§ 9704. (R. S. § 5165.) Examination of registry and bonds.

The Comptroller of the Currency shall have at all times, during office-hours, access to the books of the Treasurer of the United States for the purpose of ascertaining the correctness of any transfer or assignment of the bonds deposited by an association, presented to the Comptroller to countersign; and the Treasurer shall have the like. access to the book mentioned in section fifty-one hundred and sixtythree, during office-hours, to ascertain the correctness of the entries in the same; and the Comptroller shall also at all times have access to the bonds on deposit with the Treasurer, to ascertain their amount and condition.

Act June 3, 1864, c. 106, § 20, 13 Stat. 105.

The provisions of this section were made applicable to bonds, other than United States bonds, deposited by National banks for the issue of the additional circulating notes authorized by the Aldrich-Vreeland (National Currency Associations) Act of May 30, 1908, c. 229, § 3, post, § 9731, by section 4 of that act, post, § 9732.

See notes to R. S. § 5160, ante, § 9699.

§ 9705. (R. S. § 5166.) Annual examination of bonds by associations.

Every association having bonds deposited in the office of the Treasurer of the United States shall, once or oftener in each fiscal year, examine and compare the bonds pledged by the association with the books of the Comptroller of the Currency and with the accounts of the association, and, if they are found correct, to execute to the Treasurer a certificate setting forth the different kinds and the amounts thereof, and that the same are in the possession and custody of the Treasurer at the date of the certificate. Such examination shall be