After said thirty-six months' period said reserves, other than those hereinbefore required to be held in the vaults of the member bank and in the Federal reserve bank, shall be held in the vaults of the member bank or in the Federal reserve bank, or in both, at the option of the member bank.

(b) A bank in a reserve city, as now or hereafter defined, shall hold and maintain reserves equal to fifteen per centum of the aggregate amount of its demand deposits and five per centum of its time deposits, as follows:

In its vaults for a period of thirty-six months after said date six-fifteenths thereof, and permanently thereafter five-fifteenths.

In the Federal reserve bank of its district for a period of twelve months after the date aforesaid at least three-fifteenths, and for each succeeding six months an additional one-fifteenth, until sixfifteenths have been so deposited, which shall be the amount permanently required.

For a period of thirty-six months after said date the balance of the reserves may be held in its own vaults, or in the Federal reserve bank, or in national banks in reserve or central reserve cities as now defined by law.

After said thirty-six months' period all of said reserves, except those hereinbefore required to be held permanently in the vaults of the member bank and in the Federal reserve bank, shall be held in its vaults or in the Federal reserve bank, or in both, at the option of the member bank.

(c) A bank in a central reserve city, as now or hereafter defined, shall hold and maintain a reserve equal to eighteen per centum of the aggregate amount of its demand deposits and five per centum of its time deposits, as follows:

In its vaults six-eighteenths thereof.

In the Federal reserve bank seven-eighteenths.

The balance of said reserves shall be held in its own vaults or in the Federal reserve bank, at its option.

Any Federal reserve bank may receive from the member banks as reserves, not exceeding one-half of each installment, eligible paper as described in section fourteen properly indorsed and acceptable to the said reserve bank.

(3) State banks or trust companies; limitation on amount of deposits by member banks with nonmember banks; member bank acting as agent for nonmember bank in applying for or receiving discounts from Federal reserve bank prohibited without permission from Federal Reserve Board.

If a State bank or trust company is required by the law of its State to keep its reserves either in its own vaults or with another State bank or trust company, such reserve deposits so kept in such State bank or trust company shall be construed, within the meaning of this section, as if they were reserve deposits in a national bank in a reserve or central reserve city for a period of three years after the Secretary of the Treasury shall have officially announced

the establishment of a Federal reserve bank in the district in which such State bank or trust company is situate. Except as thus provided, no member bank shall keep on deposit with any nonmember bank a sum in excess of ten per centum of its own paid-up capital and surplus. No member bank shall act as the medium or agent of a nonmember bank in applying for or receiving discounts from a Federal reserve bank under the provisions of this Act except by permission of the Federal Reserve Board.

(4) Checking against reserve deposits; restoration of reserve deposits as condition precedent to making new loans or payment of dividends.

The reserve carried by a member bank with a Federal reserve bank may, under the regulations and subject to such penalties as may be prescribed by the Federal Reserve Board, be checked against and withdrawn by such member bank for the purpose of meeting existing liabilities: Provided, however, That no bank shall at any time make new loans or shall pay any dividends unless and until the total reserve required by law is fully restored.

(5) Method of estimating amount of reserve deposits required.

In estimating the reserves required by this Act, the net balance of amounts due to and from other banks shall be taken as the basis for ascertaining the deposits against which reserves shall be determined. Balances in reserve banks due to member banks shall, to the extent herein provided, be counted as reserves.

(6) National banks in Alaska and outside continental United States may remain nonmember or may become member banks; re

serves.

National banks located in Alaska or outside the continental United States may remain nonmember banks, and shall in that event maintain reserves and comply with all the conditions now provided by law regulating them; or said banks, except in the Philippine Islands, may, with the consent of the Reserve Board, become member banks of any one of the reserve districts, and shall, in that event, take stock, maintain reserves, and be subject to all the other provisions of this Act. (38 Stat. -)

§ 9802. (Act Dec. 23, 1913, c. 6, § 20.) Repeal of law making funds deposited for redemption of national bank notes part of reserve fund.

So much of sections two and three of the Act of June twentieth, eighteen hundred and seventy-four, entitled "An Act fixing the amount of United States notes, providing for a redistribution of the nationalbank currency, and for other purposes," as provides that the fund deposited by any national banking association with the Treasurer of the United States for the redemption of its notes shall be counted as a part of its lawful reserve as provided in the Act aforesaid, is hereby repealed. And from and after the passage of this Act such fund of

five per centum shall in no case be counted by any national banking association as a part of its lawful reserve. (38 Stat. ———.)

The Currency Act of June 20, 1874, c. 343, §§ 2, 3, mentioned in this section, are set forth ante, §§ 9748, 9751.

The Parity Act of March 14, 1900, c. 41, mentioned in this section, prescribing the standard unit of value of money, and providing for the redemption of United States notes and Treasury notes, etc., is set forth ante, §§ 64806487.

§ 9803. (Act Dec. 23, 1913, c. 6, § 26.)

Repeal; borrowing gold on security of United States bonds or one year gold notes; sale of such bonds or notes.

All provisions of law inconsistent with or superseded by any of the provisions of this Act are to that extent and to that extent only. hereby repealed: Provided, Nothing in this Act contained shall be construed to repeal the parity provision or provisions contained in an Act approved March fourteenth, nineteen hundred entitled "An Act to define and fix the standard of value, to maintain the parity of all forms of money issued or coined by the United States, to refund the public debt, and for other purposes," and the Secretary of the Treasury may for the purpose of maintaining such parity and to strengthen the gold reserve, borrow gold on the security of United States bonds. authorized by section two of the Act last referred to or for one-year gold notes bearing interest at a rate of not to exceed three per centum per annum, or sell the same if necessary to obtain gold. When the funds of the Treasury on hand justify, he may purchase and retire such outstanding bonds and notes. (38 Stat. -)

§ 9804. (Act Dec. 23, 1913, c. 6, § 29.) Effect of partial invalidity of act.

If any clause, sentence, paragraph, or part of this Act shall for any reason be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder of this Act, but shall be confined in its operation to the clause, sentence, paragraph, or part thereof directly involved in the controversy in which such judgment shall have been rendered. (38 Stat.

§ 9805. (Act Dec. 23, 1913, c. 6, § 30.) Reservation of power to amend, alter, or repeal act.

The right to amend, alter, or repeal this Act is hereby expressly reserved. (38 Stat. -)

Sec.

CHAPTER FOUR

Dissolution and Receivership

9S06. Voluntary dissolution of associa

tions. 9807. Enforcement of shareholders' individual liability by creditors on voluntary dissolution. 9808. Notice of intent to dissolve.

Sec.

9809. Deposit of lawful money to redeem outstanding circulation. 9810. Exemption as to an association consolidating with another. 9811. Reassignment of bonds and redemption of notes, etc.

§ 9806. (R. S. § 5220.) Voluntary dissolution of associations. Any association may go into liquidation and be closed by the vote of its shareholders owning two-thirds of its stock.

Act June 3, 1864, c. 106, § 42, 13 Stat. 112.

§ 9807. (Act June 30, 1876, c. 156, § 2.) Enforcement of shareholders' individual liability by creditors on voluntary dissolution.

When any national banking association shall have gone into liquidation under the provisions of section five thousand two hundred and twenty of said statutes, the individual liability of the shareholders provided for by section fifty-one hundred and fifty-one of said statutes may be enforced by any creditor of such association, by bill in equity, in the nature of a creditor's bill, brought by such creditor on behalf of himself and of all other creditors of the association, against the shareholders thereof, in any court of the United States having original jurisdiction in equity for the district in which such association may have been located or established. (19 Stat. 63.)

This section was part of an act authorizing the appointment of receivers of national banks, etc., cited above.

See notes to section 1 of the act, post, § 9826.

R. S. § 5220, mentioned in this section, is set forth ante, § 9806.

R. S. 5151, also mentioned in this section, providing for individual liability of shareholders of national banks, was superseded by the provisions of the same nature of the Federal Reserve Act of Dec. 23, 1913, c. 6, § 23, ante, 9689.

Said Federal Reserve Act of Dec. 23, 1913, ante, §§ 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, signify their acceptance of the act.

§ 9808. (R. S. § 5221.) Notice of intent to dissolve.

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 in a newspaper published in the city of New York, and also in a newspaper published in the city or town in which the 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 holders of its notes and other creditors to present the notes and other claims against the association for payment.

Act June 3, 1864, c. 106, § 42, 13 Stat. 112.

§ 9809. (R. S. § 5222.) Deposit of lawful money to redeem outstanding circulation.

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.

Act June 3, 1864, c. 106, §§ 42, 43, 13 Stat. 112. Act July 14, 1870, c. 257, 16 Stat. 274.

§ 9810. (R. S. § 5223.) Exemption as to an association consolidating with another.

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.

Act July 14, 1870, c. 257, 16 Stat. 274.

§ 9811. (R. S. § 5224, as amended, Act Feb. 18, 1875, c. 80, § 1.) Reassignment of bonds and redemption of notes, etc. 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 secure payment of its notes shall be re-assigned 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 neces