Page:United States Statutes at Large Volume 18 Part 1.djvu/1078

 1006 TITLE Lx11.——NATIONAL BANKS.-Ch. 3. Associations not Sm:. 5201. No association shall make any loan or discount on uw 5’]1‘?““ °'P‘;2;lI;“"° security of the shares of its own capital shock, nor be the purchaser 0;- holder of any such shares, unless such security or purchase shall be nec- U>id-’¤·35,p·N0- essary to prevent loss upon a debt previously contracted in good faith; Bank ,._ L,mc,, and stock so purchased or acquire shall, within six months from the 11 Wall.,369; Bal- time of its purchase, be sold or disposed of at public or private sale; md t'- B¤¤k· 18 or, in default thereof, a receiver may be appointed to close up the Wall" 589‘ business of the association. according to section fifty-two hundre and thirtv-four. Limit upon in- Sec. 5202. No association shall at any time be indebted, or in any way fl€b“°d¤°SS *0 be liable. to an amount exceeding the amount of its capital stock at such m°“"°d‘ time actually paid in and remaining) undiminished by osses or otherwise, 3 June, 1864, c. except on account of demands of the nature following: lggv “· 36v V· I3- P- First. Notes of circulation. ‘ Second. Moneys de sited with or collected by the association. Third. Bills of exchsnge or drafts drawn against money actually on de ’·it to the credit of the association, 01* clue thereto. mrth. Liabilities to the stockholders of the association for dividends und reserved rohts. Rwricyiou upon $1:0. 5203. go association shall, either directly or indirectly, pledge or
 * 1**;*08;** °“°“l“"’·‘¥ hypothecate any of its notes or circulation. for the purpose of procuring

_.._Q..t.* money to be paid in on its capital stock, or to be used in its banking Ibidq F- 37- operations, or otherwise; nor shall any association use its circulating notes, or any part thereof. in any manner or form, to create or increase its capital stock. {*1-ohibixienupen Sm`. 5204. No association, or any member thereof, shall, during the }"’*hd”"'¤l°f °¤P· time it shall continue its banking operations, withdraw, or permit to be 2 __ withdrawn, either in the form of dividends or otherwise, any portion of Ibid., e. 38. its capital. If losses have at any time been sustained by any such association, equal to or exceeding its undivided profits then on hand, no dividend shall be made; and no dividend shall ever be made byany association, while it continues its banking operations, to an amount greater than its net profits then on hand, deducting therefrom its losses and had debts. All debts due to any associations, on which interest is past due and unpaid for a period of slx months, unless the same are well secured, and in process of collection, shall he considered Incl debts within the meaning of this section. But nothing in this section shall prevent the reduction of the capital stock of the association under section fifty- one hundred and forty-thx·ee. Enfo¤·ing_pay Sec. 5205. Every association which shall have failed to pay up its ¥“°”*‘?f‘}°H°*;”°Y capital stock, as required by law,and every association whose capital $,i_ _ stock shall have become impaired by losses or otherwise, shall, within _3 MM-, 1873, <·. three months after receiving notice thereof from the Comptroller of gggv S- 1» '· 17· P- the Currency, pay the deficiency in the capital stock, by assessment upon ab Jam 1876 v_ the shareholders pro rata for the amount of capital shock held by each: 156, 8, 4, 1-,,19, ,,,2;;, and the Treasurer of the United States shall withhold the interest upon all bonds held by him in trust for any such association, upon notification from the C0n1pt1·0ller of the Currency, until otherwise notilied bv him. If any such association shall fail to ay up its capital stock, uml shall refuse to go into liquidation. as provi<l)ed bylaw, for three months after receiving notice from the Comptroller. a receiver may be appointed to close up the business of the association, su·c0rding· to the rovisions of section fifty-two hundred and thirty-four. [And prm·fdedF That if any shareholder or shareholders of such bank shall neglect or refuse, after three n10nths’ notice, to pay the assessment, as provided in this section, it shall be the duty of the beard of directors to cause a. sufficient amount of the capital shock of such shareh0lde1‘ or shareholders to be sold at; public auction (after thirty da.vs’ notice shall be given bv posting such notice of sale in the office of the bank, and bv publishin 'such notice in a. newspaper of the city or town in which the bank is located, or in a newspaper pubhshed nearest theretoy to make good the deiiciency, and the balance, 1f any, shall be returne to such delinquent shareholder of shareholders.]