Page:United States Statutes at Large Volume 35 Part 1.djvu/566

 548 SIXTIETH CONGRESS. Sess. I. Ch. 229. 1908. m on stm, the cash value of the securities sodeposited: Provided, That upon the eccabouds. deposit of any of the State, city, town, county, or other mumcipahbonds, of a character described in section three of this_Act, cir- · cu ating notes may be issued to the extent of not ezrceedinlg ninety per centum of the market value of such bonds so deposited: nd prozvzded cm1.1ms;:»¤»wmme¤_ji;rther, That no national banking association shall be authorized. in °°‘ any event t0_ issue circulating notes based on commercial paper in H excess of thirty per centum of its ummpaired capital and surplus. per9<_3,¤§8¤gé;r:ti2j]_ v¤- The t/erm_ commercial paper shall  eld   include only notes representing actual commercial transactions, which when accepted by the! a§soc1ation shalg bear the names of at least two responsible parties an ave not excee ing four months to run. u°E¤,g§¥,g;_;¤d:_§¤— The banks and the assets of all banks belonging to the association ' shall be_ ]o1ntly and severally liable to the nited States for _ the {gn gbg-plc1L redemptmn of such additional circulation; and to secure such liability "’the hen created by section fifty-two hundred and thirty of the Revised zltatutes small extepdttouand cover thedassets of all btplnlfabglongipg lto e associa 1on an o e securities eposite y e n s wit the mm ¤¢¢¤¤¤ association puizsuant to the provisions of this Act; but as between the several ban s composing such association each bank shall be liable Ammon! r K. only in the propormon that its capital and surygus bears_ to the aggrechmge 0, néugmm gate capital an_ surplus of all such banks. he association may, at any time, require of any of 1ts constituent banks a degmosit of additional securities or commercial paper, or an exchange _0 the securities hésgrecnzuxmuu already on deposit, to secure such additional circulation; and in case ' ‘ of the failure of such bank to make such deposit or exchange the association may, after ten days’ notice to the bank, sell the securities P¢r¤¤¤¤»ipm¤••¤¤· and paper already in its han s at public sale, and deposit the roceeds with the Treasurer of the United States as a fund for the redemption dggigtegnxhigzeggt of such additional circulation. If such fund be insufficient for that purpose the association may recover from the bank the amount of the denciency by suit in the circuit court of the United States, and shall have the benefit of the lien herembefore provided for in favor of the _ hd - United States upon the assets of such bank. The association or the w'{{_',,,,{{f;;‘  Secretary of the Treasury may permit or reclluire the withdrawal of mama. any such securities or cpmmercnal papir and the substitution of other securities or commercia paper of equa value therefor. mGc$ig¤¤l:il€¤t::p1b;;s Sec.  That whenever any bank bclongin to a national currency ,;.,,3,,,;;.,,, ;.,,,d_ association shall fail to preserye or make good its redemption fund in V¤l-}$·P-1B. the Treasury of the United States, required by section three of the Act of June twentieth, eighteen hundred and seventy-four, chapter three hundred and forty-three, and the provisions of this Act, the Treasurer of the United States shall notify such national currency U H d { h association to make good such redemption fund, and upon the failure of the redemption fund belonging id the other banks lcomposing such national currency association as may be necessary for that purpose; maxaigcigpdeghxii and such nationa currency association may, after five days’ notice to · gn, ,,,,,,,_ such bank, proceed to sel at public sale the securities deposited by such bank with the association pursuant to the provisions of section fopepgmétsgmgplwdp one of this Act, and dgposit the proceeds with the Treasurer of the rims. Dnltglk States is a fu; bftor the redemption of the additional circulation en out y suc nk under this Act. m;;1¤;3;»¤;:uT.m¤i,»: Sec. 3. That any national banking association which has circulating 33,;  6,,,,,,1 notes outstanding, secured by the deposit of United States bonds to Application to ar:] amount of not less than forty per centum of 1ts capital stock, and Comptroller. w ich has a surplus of not less than twenty per centum, mav make application to the Comptroller of the Currency for authority to issue a dntional circulating notes to be secured by the deposit of bonds
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