THIRTY—SEVENTH CONGRESS. Sess. III. Ch. 58. 1863. 677 Sec. 41. And be it further enacted, That every such association shall Associations to at all times have on hand, in lawful money of the United States, an h’“"’ Wim 8H10X1I1b of !11OI19y amount equal to at least twenty-five per centum of the aggregate amount on baud_ of its outstanding notes of circulation and its deposits; and whenever When not to the amount of its outstanding notes of circulation and its deposits shall 2***6 mw ]°”“S» exceed the above-named proportion for the space of twelve days, or °` whenever such lawful money of the United States shall at any time fall below the amount of twenty-five per centum of its circulation and deposits, such association shall not increase its liabilities by making any new loans or discounts otherwise than by discounting or purchasing bills of exchange, payable at sight, nor make any dividend of its profits, until the required proportion between the aggregate amount of its outstanding notes of circulation and its deposits and lawful money of the United States shall be restored: Provided, however, That clearing·house certificates, What may bc representing specie or lawful money specially deposited for the purpose d°*’m°d1““’f“1 of any clearing-house association, shall be deemed to be lawful money in momm the possession of any association belonging to such clearing-house holding and owning such certificates, and considered to be a part of the lawful money which such association is required to have, under the foregoing provisions of this section: Provided, further, That any balance due to any association organized under this act in other places from any association in the cities of Boston, Providence, New York, Philadelphia, Baltimore, Cincinnati, Chicago, St. Louis, or New Orleans, in good credit, subject to be drawn for at sight, and available to redeem their circulating notes and deposits, may be deemed to be a part of the lawful money which such association in other places than the cities of Boston, Providence, New York, Philadelphia, Baltimore, Cincinnati, Chicago, St. Louis, and New Orleans, are required to have by the foregoing provisions of this section, to the extent of three fifths of the said amount of twenty-five per centum required. And it shall be competent for the comptroller of the currency to notify any such association whose lawful money reserve, as aforesaid, shall fall below said proportion of twenty-five per centum, to make good such reserve; and if such association shall fail for thirty days thereafter so to make good its reserve of lawful money of the United States, the comptroller may, with the concurrence of the Secretary of the Treasury, appoint a receiver to wind up the business of such association, as provided in this act. Sec. 42. And be it further enacted, That no association shall at any Indebtedness or time be indebted, or in any way liable, to an amount exceeding the amount P“°°l“‘l°“s 1lm* . . . . . . . . . ited, except, &c. of its capital stock at such time actually paid m, and remaining undiminished by losses or otherwise, except on the following accounts, that is to say: First. On account of its notes of circulation. Second. On account of moneys deposited with, or collected by, such association. Third. On account of bills of exchange or drafts drawn against money actually on deposit to the credit of such association, or due thereto. Fourth. On account of liabilities to its stockholders, for money paid in on capital stock, and dividends thereon, and reserved profits. Sec. 43. And be it further enacted, That no association shall, either Assocgagipns directly or indirectly, pledge or hypothecate any.of: its nptes of c1rcula-3;’;i;°cE_€u,;‘€i0n· tion, for the purpose of procuring money to be paid in on its capital stock, or to be used in its banking operations, or otherwise. Sec. 44. And be it further enacted, That no association, or any mem- Capital rwt to ber thereof, shall, during the time it shall continue its banking operations, g;’v?$;‘;g;S}E‘;_by withdraw, or permit to be withdrawn, either in form of dividends, loans to ’ stockholders for a longer time than six months or in any other manner, any portion of its capital; and if losses shall at any time have 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
