Page:United States Statutes at Large Volume 13.djvu/131

 THIRTY-EIGHTH CONGRESS.. Sess. I. Ch. 106. 1864. 108 books of the association in such manner as may be prescribed in the by- laws or articles of association ; and every person becoming a shareholder by such transfer shall, in proportion to his shares, succeed to all the rights T'”“Sf°"· and liabilities of the prior holder of such shares, and no change shall Rights or sxbe made in the articles of association by which the rights, remedies, or MDS i)f°<}ll°’¤ security of the existing creditors of the association shall be impaired. ;;f,,;°,_ ° lm` The shareholders of each association formed under the provisions of this act, and of each existing bank or banking association that may accept the provisions of this act, shall be held individually responsible, equally and dndividual liaratably, and not one for another, for allrcontracts, debts, and engagements b'l“Y‘ of such association to the extent of the amount of their stock therein at the par value thereof in addition to the amount invested in such shares ; except that shareholders of any banking association now existing under state laws, having not less than five millions of dollars of capital actually paid in, and a surplus of twenty per centum on hand, both to be determined by the comptroller of the currency, shall be liable only to the amount invested in their shares ; and such surplus of twenty per centum shall be kept undiminished, and be in addition to the surplus provided for in this act; and if at any time there shall be a deficiency in said surplus of twenty per centum, the said banking association shall not pay any dividends to its shareholders until such deiiciency shall be made good; and in case of such deticiency, the comptroller of the currency may compel said banking association to close its business and wind up its aiihirs under the provisions of this act. And the comptroller shall have authority to with- When comphold from an association his certificate authorizing the commencement of 1'°;"§g°’ "g*g’c;'t;*h‘ business, whenever he shall have reason to suppose that the shareholders 0 cer ' thereof have formed the same for any other than the legitimate objects contemplated by this act. Sec. 13. And be itfurtber enacted, That it shall be lawful for any asso- _ Incmseofcapciation formed under this act, by its articles of association, to provide for an lm “°°°k· increase of its capital from time to time, as may be deemed expedient, subject to the limitations of this act: Provided, That the maximum of such Maximum. increase in the articles of association shall be determined by the comptroller of the currency; and no increase of capital shall be valid until the whole amount of such increase shall be paid in, and notice thereof shall have been transmitted to the comptroller of the currency, and his certificate obtained specifying the amount of such increase of capital stock, with his approval thereof, and that it has been duly paid in as part of the capital of such association. And every association shall have power, by the vote of shareholders owning two thirds of its capital stock, to reduce the capital of such- association to any sum not below the amount required by _ _ this act, in the formation of associations : Provided, That by no such re- Mm“““'“· duction shall its capital be brought below the amount required by this act for its outstanding circulation, nor shall any such reduction be made until the amount of the proposed reduction has been reported to the comptroller of the currency and his approval thereof obtained. Sec. 14. And be it further enacted, That at least fifty per centum of %;"}°“é1*,;;’ l’° the capital stockof every association shall be paid in before it shall be £:;,,,Q2,,§,,g° authorized to commence business; and the remainder of the capital stock business. of such association shall be paid in instalments of at least ten per centum lpemuirgdernd each on the whole amount of the capital as frequently as one instalment W °° °° ° Pm ‘ at the end of each succeeding month from the time it shall be authorized by the comptroller to commence business ; and the payment of each instalment shall be certified to the comptroller, under oath, by the president or cashier of the association. "SEc. 15. And be it jiertluer enacted, That if any shareholder, or his as- proceedings, signee, shall fail to pay any instalment on the stock when the same is re- géhgwvldsr quired by the foregoing section to be paid, the directors of such associa- smjuenggly m` tion may sell the stock of such° delinquent shareholder at public auction,