N. NAME What constitutes, etc.] The law knows | NATIONAL BANK - continued. 2. In tracing titles, identity of names is, prima facie, evidence of identity of persons. Stebbins v. Duncan, 108 U. S. 32. Mistake in Christian Name of Patentee in the completeness of the organization, in a suit to enforce the liability of a stockholder or a contract with the bank. Časey v. Galli, 94 U. S. 673. 2. Power-To buy and sell Coin, certify Checks, receive Special Deposits, lend Money — To compromise Claims, guarantee Payment, deal in Stocks – To acquire a Lien on Debtor's Stock.] Under the national banking act of June 3, 1864 (13 Sts. 99), which authorizes banks organized thereunder to buy and sell coin, such a bank, having coin in pledge, may sell and assign its special property therein, with all its legal What constitutes - Mistake in Initial of rights. Merchants' National Bank v. State Middle Name. Tille. See LANDS OF UNITED STATES-PATENT, See DEPOSITION, 2. NATIONAL BANK- Organization Authority necessary. See pl. 1. Power-To buy and sell Coin, certify Checks, receive Special Deposits, lend Money - To compromise Claims, guarantee Payment, To acquire a Lien on deal in Stocks Debtor's Stock. See pl. 2-14. Liability For Unauthorized Act of Cashier Winding up National Bank, 10 Wal. 604. 3. The provision of the act, that a bank shall transact its usual business at an office or bankinghouse in the place specified in its certificate of organization, does not prevent it from purchasing coin at the banking-house of another bank. Ib. 4. Section 23, which prohibits the issue of notes other than the ordinary bank-bills to circulate as money, does not forbid the certification of checks given in the usual course of business. Ib. 5. National banks may receive special deposits. This is clearly implied from Rev. Sts. § 5228, which provides that such banks, on their failure to pay their circulating notes, while stopping business generally, may "deliver special deposits." Carlisle First National Bank v. Graham, 100 U. S. 699. Power Suits by Receiver 6. Even if the law did not confer the power, and Duty of Comptroller Liability of a bank accustomed to take such deposits with Rights of Creditors, De- the knowledge and acquiescence of the directors positors, Government, etc. Status of would be liable for such a deposit lost through Bank pending Liquidation. gross negligence. Ib. Shareholders See pl. 17-44. Suits by and against — Where brought-What See pl. 45-50. 7. A national bank cannot make a valid loan or discount on the security of its own stock, except to prevent a loss on a debt previously contracted in good faith. South Bend First National Bank v. Lanier, 11 Wal. 369. 8. The placing by a bank of its funds in permanent deposit with another bank, is a loan within the meaning of the act. Ib. 9. There is nothing in the letter or spirit of the act which prohibits a loan by a bank on the Criminal Liability of Officials under Rev. security of the stock of another bank. Germania Sts. § 5209. See pl. 82-95. - Authority necessary.] National Bank v. Case, 99 U. S. 628. 10. In compromising a contested claim resulting from a legitimate banking transaction, a 1. Organization national bank may pay a sum larger than otherNo authority other than that conferred by con-wise would be exacted in order thereby to obtain gress is required to enable a bank existing under a state law to become a national bank; and the certificate of the comptroller is conclusive as to a transfer of stocks, if it be done honestly in the belief that in the future they may be turned into money so favorably as to prevent a part or the NATIONAL BANK continued. 11. A national bank may guarantee the payment of a note which it takes and negotiates, aud the benefit of the proceeds of which it retains, and the authority of the vice-president, who is also a director, to make the guarantee will be presumed, and may not be denied. People's Bank v. Manufacturers' National Bank, 101 U. S. 181. 12. National banks have no power to deal in stocks; for although the power is not expressly denied by the national banking act, denial is implied by the want of a grant of it. Charlotte First National Bank v. National Exchange Bank, 92 U. S. 122. of assets is one of his ordinary official duties. Metropolis National Bank v. Kennedy, 17 Wal. 19. 18. He may sue either in his own name or in the name of the bank. lb. 19. The debtors of a national bank sued by a person whom the comptroller, professing to act under section 50, has appointed receiver, cannot inquire into the lawfulness of the appointment. Cadle v. Baker, 20 Wal. 650. 20. The institution of a suit by the receiver against the shareholders, under section 50, must be preceded by action on the part of the comptroller touching their personal liability, and the fact of such action must be averred. Kennedy v. Gibson, 8 Wal. 498. 21. A letter written by the comptroller to the receiver, directing him to institute legal proceedings to enforce the personal liability of sharehold 13. A national bank cannot acquire a lien on its debtor's stock therein, such an acquisition be-ers, sufficiently shows that the comptroller, before ing against the policy of the act, and a permission not being inferable from its general expressions. Bullard v. National Eagle Bank, 18 Wal. 589. And see South Bend First National Bank v. Lanier, 11 Wal. 369. Liability · For Unauthorized Act of Cashier For permitting Transfer of Stock without Surrender of Certificate.] Where the cashier of a national bank buys coin in its behalf, and the coin goes into the funds of the bank, the bank is liable on the principle of quantum valebant, although the cashier be without authority to make such purchase. Merchants' National Bank v. State National Bank, 10 Wal. 604. suit brought, decided that it was necessary to enforce it, no objection being made to the introduction in evidence of the letter, and no further proof being demanded. Bowden v. Johnson, 107 U. S. 251. 22. The amount to be paid by shareholders of a national bank which has become insolvent rests in the judgment and discretion of the comptroller; and his determination is conclusive, and cannot be controverted by a shareholder in an action brought against him by the receiver to enforce his liability. Kennedy v. Gibson, 8 Wal. 498; Casey v. Galli, 94 U. S. 673; Germania National Bank v. Case, 99 U. S. 628. 23. It cannot, therefore, be contended by the shareholder that the comptroller does not intend exacting similar contributions from other shareholders. Casey v. Galli, 94 U. S. 673. 24. The liability of the shareholders is several, not joint; and after the comptroller has duly assessed them, he may not be compelled to make another assessment because some of them are insolvent, or cannot, for other reasons, be made to respond. United States v. Knox, 102 U. S. 422. 16. Where a bank allows a stockholder to transfer his stock on the books of the bank, without producing and surrendering the certificate therefor, it is liable to a bona fide transferee for value of the same stock who produces the certificate with power of attorney to transfer, the certificate being in the usual form, declaring the stock transferable on the books on surrender of the certificate, and not otherwise; and this, although the bank had no notice of the latter transfer. South Bend First National Bank v. 26. If the comptroller orders the collection of Lanier, 11 Wal. 369. an amount equal to the full par value of the Suits by Receiver-stock, the receiver's suit must be at law, not in equity, the amount being liquidated. Ib. 17. Winding upPower and Duty of Comptroller.] A receiver of a national bank, appointed by the comptroller of the currency under § 50, act of 1864 (13 Sts. 114), which provides that he may act "under the direction of the comptroller," may sue for an ordinary debt due to the bank without an order from the comptroller. The words "under the direction," etc., mean no more than that the receiver shall be subject to direction, not that he shall do no act without special instructions; and the collection 25. Nor can it be contended that the comptroller intends paying claims for which the bank is not responsible, and that, but for this, contributions from shareholders would not be necessary. Casey v. Galli, 94 U. S. 673. 27. And interest is properly chargeable after the date of the comptroller's orders, the amount then being due and payable. Ib.; Bowden v. Johnson, 107 U. S. 251. 28. Section 56, act of 1864, which provides that suits under the act in which federal officers or agents are parties shall be conducted by the district attorney, is so far directory merely that shareholders cannot invoke it to defeat a suit against them by a receiver brought and conducted by private counsel employed by the receiver with the approval of the proper department. Kennedy v. Gibson, 8 Wal. 498. 29. It is no objection to such a bill that shareholders averred to be without the jurisdiction are not joined as defendants. Ib. 30. The receiver is the proper party complainant against the shareholders, and the creditors are not proper parties. Ib. 31. Where, pending a suit by a receiver of a national bank to enforce the personal liability of a stockholder, a new receiver is appointed, and a decree is afterwards entered dismissing the bill, and an appeal is taken to the supreme court in the name of the first receiver with the other as surety in the appeal-bond, the court, under § 954, Rev. Sts., may permit the substitution of the first receiver in place of the other as party appellant. Bowden v. Johnson, 107 U. S. 251. NATIONAL BANK - - continued. 37. The property of a national bank attached at the suit of an individual creditor after the bank has become insolvent, cannot be subjected to sale for the payment of his demand, as against the claim of a receiver subsequently appointed. Selma First National Bank v. Colby, 21 Wal. 609. 38. The decision of the receiver on the va lidity of a claim presented to him for a dividend is not final; the creditor may proceed afterwards to have his claim adjudicated by the proper state court. Bethel First National Bank v. Danbury National Pahquioque Bank, 14 Wal. 383. 39. Winding up - Rights of Creditors, Depositors, Government, etc.] A creditor of an insolvent national bank, who establishes his debt by suit and judgment after the refusal of the comptroller to allow it, is entitled to dividends based on the amount of the debt at the time of 32. Winding up - Liability of Share- the failure, not at the time of the judgment, if holders.] A party who, by way of pledge or the judgment includes interest beyond the time collateral security for a loan, accepts stock of a of the failure. White v. Knox, 111 U. S. 784. national bank which he causes to be transferred 40. A depositor in a national bank, which to himself on its books, incurs immediate lia-suspends payment, is entitled to interest from bility as a shareholder, and he cannot relieve the date of his demand; and, when proved to himself therefrom by making a colorable transfer the satisfaction of the comptroller, his claim of the stock, with the understanding that at his stands on the footing of a judgment, and interrequest it shall be re-transferred. Germania est is to be computed under the rule applicable National Bank v. Case, 99 U. S. 628. to the computation of interest on judgments. Commonwealth National Bank v. Mechanics' National Bank, 94 U. S. 437. 33. The title to shares of national bank stock passes when the owner delivers his stock certificate to a purchaser, with authority to him or to any one whom he may name to transfer the shares on the books of the bank. Acting thus in good faith, the seller cannot be compelled to retake the stock at suit of a receiver of the bank because, through the purchaser, the shares have become the property of the bank. Johnston v. Laflin, 103 U. S. 800. 34. If a shareholder transfer his shares to an irresponsible person on the eve of the failure of the bank, the shareholder knowing or believing the failure to be imminent, he cannot by such transfer relieve himself of the personal liability for the bank's debts which the statute imposes on shareholders. Bowden v. Johnson, 107 U. S. 251. 35. Where one takes an assignment of national bank stock as security for a loan, and afterwards transfers it to an irresponsible person to avoid a possible future assessment in case of the failure of the bank, and receives no dividends, and exercises none of the rights of a shareholder, he incurs no liability to the creditors of the bank. [MILLER and MATTHEWS, JJ., dissenting.] Anderson v. Philadelphia Warehouse Co., 111 U. S. 479. 36. The receiver of an insolvent national bank may invoke the jurisdiction of a court of equity to enforce the personal liability of one who has transferred his shares to an irresponsible person for the purpose of escaping liability, the bill seeking a discovery, and the transfer being good as 41. The United States cannot enforce payment of a debt from an insolvent national bank from a surplus remaining in the treasury of the proceeds of the bonds deposited as security for the circulating notes of the bank, §§ 5162, 5167, Rev. Sts., expressly declaring that such bonds shall be held in trust for the payment of the circulating notes. Nor is the relation of the United States to the fund changed by the forfeiture of the bonds by the comptroller of the currency. Cook County National Bank v United States, 107 U. S. 445. 42. Winding up Status of Bank pending Liquidation] A national bank does not lose its corporate existence by mere default in paying its circulating notes, nor upon mere appointment of a receiver; and it may be sued, although such an appointment has been made. Bethel First National Bank v. Danbury National Pahquioque Bank, 14 Wal. 383. 43. A national bank in voluntary liquidation may sue and be sued, by name, for the purpose of winding up its business; and it is no defence to a suit on a disputed claim that, under § 2, act June 30, 1876 (19 Sts. 63), the plaintiff has also filed a creditor's bill to enforce the individual liability of the shareholders. Central National Bank v. Connecticut Mutual Life Insurance Co., 10 U. S. 54. 44. A suit against a national bank to enforce collection of a demand is abated by a decree of a NATIONAL BANK — continued. district court dissolving it and forfeiting its rights and franchises, rendered on an information filed by the comptroller of the currency. Selma First National Bank v. Colby, 21 Wal. 609. 45. Suits by and against Where brought- What Defences available.] Under § 57, act of 1864, suits may be brought by as well as against a banking association, although the word "by" is omitted in the act, it being apparent from the reason of the matter and from a corresponding provision of a preceding statute that the omission was accidental. Kennedy v. Gibson, 8 Wal. 498. 46. Under that act a national bank may sue where it is located in any state court having jurisdiction in similar cases. The objection to the jurisdiction founded in the character of such banks as instruments of the national government cannot prevail over the express provision of the statute. Bethel First National Bank v. Danbury National Pahquioque Bank, 14 Wal. 383. 47. A national bank can be sued in a state court in a local action in a county or city other than that in which the bank is established. The restriction of the statute applies to transitory actions. Casey v. Adams, 102 U. S. 66. 48. Where one is sued by a national bank for money lent, he cannot set up as a bar that the amount exceeded one-tenth part of the capital stock of the bank actually paid in, although the act of 1864 provides that the liability of any person to such a bank shall not exceed such amount. Union Gold-Mining Co. v. Rocky Mountain National Bank, 96 U. S. 640. 49. Section 5201, Rev. Sts., which prohibits a national bank from making loans on the security of shares of its own capital stock, imposes no penalty for a violation of the law. If such a loan be made, and, under the contract with the borrower, the bank sell the shares and credit the borrower with the proceeds, the courts will not aid him to recover them. Xenia First National Bank v. Stewart, 107 U. S. 676. 50. Notwithstanding the implied prohibition in the national banking act, Rev. Sts. §§ 5136, 5137, of the lending of money by national banks on real-estate security, no one other than the government can question the validity of such a transaction. [MILLER, J., dissenting, holding the loan prohibited and the security, therefore, void.] Union National Bank v. Matthews, 98 U. S. 621; Genesee National Bank v. Whitney [MILLER and HARLAN, JJ., dissenting], 103 U. S. 99; Swope v. Leffingwell, 105 U. S. 3; Reynolds v. Crawfordsville First National Bank, 112 U. S. 405; Fortier v. New Orleans National Bank, 112 U. S. 439. tional securities exempt from such taxation, or not. [CHASE, C. J., and WAYNE and SWAYNE, JJ., dissenting.] Van Allen v. Assessors, 3 Wal. 573; People v. Commissioners, 4 Wal. 244; Louisville First National Bank v. Kentucky, 9 Wal. 353. 52. But a state statute which, in taxing such shares, fails-e. g., like the New York statute of March 9, 1865 - to provide that the rate of the tax imposed shall not exceed that of the tax imposed on shares of the state banks, there being no tax on such shares, but only one on capital, is unwarranted and void. Van Allen v. Assessors, 3 Wal. 573. And see Bradley v. People, 4 Wal. 459; People v. Tax Commissioners, 94 U. S. 415. 53. In New York, under the statute of 1866, shares of stock in a national bank are assessable at their actual value, although at more than par value; and this, notwithstanding the statute of 1865, providing otherwise, that statute having been pronounced void. People v. Tax Commissioners, 94 U. S. 415. 54. That clause of the first proviso of section 41 of the national banking act, which restricts state taxation of such shares to the rate "assessed upon other moneyed capital in the hands of individual citizens," means by moneyed capital such moneyed capital as is subject to taxation. People v. Commissioners, 4 Wal. 244. See also Adams v. Nashville, 95 U. S. 19. 55. It does not prohibit the assessment of such shares at an amount above their par value. Hepburn v. School Directors, 23 Wal. 480. 56. Nor because mortgages, judgments, recognizances, and moneys owing upon articles of agreement for the sale of real estate are exempt from taxation in a certain county, except for state purposes, are shares in a national bank located in the county exempt from municipal or school taxes. lb. See also Adams v. Nashville, 95 U. S. 19. 57. The exemption from county taxation of property considerable in quantity and value, consisting of railroad securities, shares of stock in corporations liable to state taxation, mortgages, judgments, recognizances, money due on contracts for the sale of land and corporation loans taxable by the state, constitutes an unlawful discrimination against national bank shares, the discrimination being substantial. Boyer v. Boyer, 113 U. S. 689. 58. A state statute, like the New York statute of April 23, 1866, which, while permitting one to deduct the amount of his indebtedness from the valuation of his personal property for purposes of taxation, refuses him the privilege, so far as such property consists of national bank shares, in effect, taxes such shares at a greater rate than other moneyed capital, and is, therefore, void as conflicting with 5219, Rev. Sts. People v. Weaver, 100 U. S. 539. 59. The collection of a state tax on the shares of a national bank will not be enjoined where it NATIONAL BANK - continued. does not appear that there is any statutory discrimination against them, or that under any rule established by the assessing officers they are rated higher in proportion to their actual value than other moneyed capital. It is not enough that assessments may be unequal and partial, and that some other property is rated at less than such shares. German National Bank v. Kimball, 103 U. S. 732. 60. Section 41, in providing that the state taxes on shares in national banks "shall not exceed the rate imposed" on shares in "any of the banks organized under the authority of the state," does not preclude a state from taxing them at a rate higher than that to which in taxing certain state banks of issue the state by contract with those banks is limited, the rate not being higher than that at which shares in all the other state banks and corporations are taxed, it being intended only that the states shall tax shares in their own banks at the same rate, only so far as they have the capacity. Lionberger v. Rouse, 9 Wal. 468. 61. The state banks had in contemplation by that section were banks of issue. lb. 62. A statute which lays a tax on bank stock of "fifty cents on each share" equal to one hundred dollars, or on "each one hundred dollars of stock," is a tax on shares as distinguished from capital invested in government securities; and this, although the tax is to be collected directly of the bank. Louisville First National Bank v. Kentucky, 9 Wal. 353. 63. A state law requiring national banks, instead of their stockholders, to pay a tax on shares therein, is not invalid as being legislation affecting an instrument of federal government, the doctrine forbidding such legislation being founded only on the necessity of the government for the use of such instruments, and so not reaching legislation which does not impair their usefulness. 1b.; Lionberger v. Rouse, 9 Wal. 468. 64. So a state, for the purposes of taxation, may require, under a penalty, cashiers of national banks to transmit, on or before a certain date, to the clerks of towns in which stockholders live, a list of such stockholders, together "with the amount actually paid int on each share. The ground of such an act is not covered by congress by an enactment requiring lists of stockholders to be posted in the offices of such banks. Waite v. Dowley, 94 U. S. 527. 65. There is nothing in the requirement of a state constitution that taxation shall be uniform which renders invalid a statute requiring shares of national banks owned by shareholders resident in the state to be assessed for taxation at the place of the location of the bank elsewhere than at the place of the shareholder's residence. Tappan v. Merchants' National Bank, 19 Wal. 490. 66. National bank stock, although in a sense intangible and incorporeal, may have, and under NATIONAL BANK - continued. section 41 of the national banking act does have, a situs for the purposes of taxation separate from that of its owner; and a state in which such a bank is located has jurisdiction for such purposes of all shareholders and shares, and, state constitution apart, power to legislate in accordance with that act. Ib. 67. The personal property of an insolvent national bank in the hands of a receiver appointed by the comptroller of the currency, pursuant to §5234, Rev. Sts., is exempt from taxation under state laws; such property, in legal contemplation, still belongs to the bank. Rosenblatt v. Johnston, 101 U. S. 462. 68. Although the constitution and statutes of a state provide for the valuation of all moneyed capital, including shares of the national banks at its true cash value, a federal court will enjoin the collection of a tax assessed on such shares, where, through systematic undervaluation of other property, such shares are not fairly assessed; and especially is an injunction properly granted where the statutes of the state provide for that remedy in the case of illegal assessments. [WAITE, C. J., dissenting, on the ground that, as the state law provided for a uniform valuation, an injunc tion should not be granted on the ground of inequality thereof; that the valuation should be deemed conclusive.] Pelton v. Commercial National Bank, 101 U. S. 143; Cummings v. Merchants' National Bank, Id. 153. 69. And where a bank is required to pay taxes assessed on shares, withholding the amounts so paid from dividends due shareholders, if an illegal assessment is made, the remedy of the bank by action to recover back the amount after payment is not plain, adequate, and complete, so as to preclude the bank from applying for an injunction; even did not the state statute expressly recognize the right to demand an injunction to restrain an illegal levy. Cummings v. Merchants' National Bank, 101 U. S. 153. 70. Where a tax is illegally assessed on bank shares under statutes requiring the banks to report the facts necessary to an assessment, and to pay the tax, deducting the amount from dividends due the shareholders, proceedings to procure an injunction against the collection of the tax are properly brought by the bank; they need not necessarily be brought by the shareholders. Ib. And see Hills v. National Albany Exchange Bank, 105 U. S. 319. 71. While a state has no right to tax shareholders in national banks without permitting them to deduct their debts from the value of their shares, a deduction being permitted in the case of all other personal taxable property, the validity of a statute making such discrimination cannot be questioned by a shareholder who has no debts to deduct, or who has not notified the assessing officers that he claims the right to make the deduction. As to him the statute is valid. [BRADLEY, J., dissenting, holding such a statute |