12 U.S.C. § 192 — Default in payment of circulating notes

Page 64 TITLE 12—BANKS AND BANKING § 192 1 See References in Text note below. SHORT TITLE Act June 30, 1876, ch. 156, § 1, as added by Pub. L. 102–550, title XVI, § 1603(d)(7)(A), Oct. 28, 1992, 106 Stat. 4080, provided that: ‘‘This Act [enacting this section, sections 65 and 197 of this title, and section 424 of former Title 31, Money and Finance, and amending sec- tion 55 of this title] may be cited as the ‘National Bank Receivership Act’.’’ APPLICATION TO DISTRICT OF COLUMBIA Provisions of this section were made applicable to banks, etc., in the District of Columbia by act Mar. 4, 1933, ch. 274, § 4, 47 Stat. 1567. TERMINATION OF NATIONAL BANK CLOSED RECEIVERSHIP FUND Pub. L. 96–221, title VII, §§ 721–723, Mar. 31, 1980, 94 Stat. 190, 191, as amended Pub. L. 97–320, title IV, § 409, Oct. 15, 1982, 96 Stat. 1515, provided that: ‘‘SEC. 721. The purpose of this part [enacting this pro- vision] is to terminate the closed receivership fund by— ‘‘(1) providing final notice of availability of liqui- dating dividends to creditors of national banks which have been closed and for which the Comptroller has appointed a receiver other than the Federal Deposit Insurance Corporation; ‘‘(2) barring rights of creditors to collect liqui- dating dividends from the Comptroller of the Cur- rency after a reasonable period of time following such final notice; and ‘‘(3) refunding to the Comptroller the principal amount of such fund and any income earned thereon. ‘‘SEC. 722. For purposes of this part— ‘‘(1) the term ‘closed receivership fund’ means the aggregation of undisbursed liquidating dividends from national banks which have been closed and for which the Comptroller has appointed a receiver other than the Federal Deposit Insurance Corporation, held by the Comptroller in his capacity as successor to re- ceivers of those banks; ‘‘(2) the term ‘Comptroller’ means the Comptroller of the Currency; ‘‘(3) the term ‘claimant’ means a depositor or other creditor who asserts a claim against a closed national bank for a liquidating dividend; and ‘‘(4) the term ‘liquidating dividend’ means an amount of money in the closed receivership fund de- termined by a receiver of a closed national bank or by the Comptroller to be owed by that bank to a de- positor or other creditor. ‘‘SEC. 723. (a) The Comptroller shall publish notice once a week for four weeks in the Federal Register that all rights of depositors and other creditors of closed na- tional banks to collect liquidating dividends from the closed receivership fund shall be barred after twelve months following the last date of publication of such notice. ‘‘(b) The Comptroller shall pay the principal amount of a liquidating dividend, exclusive of any income earned thereon, to a claimant presenting a valid claim, if the claimant applies to collect within twelve months following the last date notice is published. ‘‘(c) If a creditor shall fail to apply to collect a liqui- dating dividend within twelve months after the last date notice is published, all rights of the claimant against the closed receivership fund with respect to the liquidating dividend shall be barred. ‘‘(d) The principal amount of any liquidating divi- dends (1) for which claims have not been asserted with- in twelve months following the last date notice is pub- lished or (2) for which the Comptroller has determined a valid claim has not been submitted shall, together with any income earned on liquidating dividends and other moneys, if any, remaining in the closed receiver- ship fund, be covered into the general funds of the Comptroller.’’ Executive Documents EXCEPTION AS TO TRANSFER OF FUNCTIONS Functions vested by any provision of law in Comp- troller of the Currency, referred to in this section, not included in transfer of functions to Secretary of the Treasury, see note set out under section 1 of this title. § 192. Default in payment of circulating notes On becoming satisfied, as specified in sections 131 and 132 1 of this title, that any association is in default, the Comptroller of the Currency may forthwith appoint a receiver, and require of him such bond and security as he deems proper. Such receiver, under the direction of the Comptroller, shall take possession of the books, records, and assets of every description of such association, collect all debts, dues, and claims belonging to it, and, upon the order of a court of record of competent jurisdiction, may sell or compound all bad or doubtful debts, and, on a like order, may sell all the real and personal property of such association, on such terms as the court shall direct. Such receiver shall pay over all money so made to the Treasurer of the United States, subject to the order of the Comptroller, and also make report to the Comptroller of all his acts and proceedings. Provided, That the Comptroller may, if he deems proper, deposit any of the money so made in any regular Government depositary, or in any State or national bank either of the city or town in which the insolvent bank was located, or of a city or town as adjacent thereto as practicable; if such deposit is made he shall require the de- positary to deposit United States bonds or other satisfactory securities with the Treasurer of the United States for the safekeeping and prompt payment of the money so deposited: Provided, That no security in the form of deposit of United States bonds, or otherwise, shall be required in the case of such parts of the deposits as are in- sured under section 12B of the Federal Reserve Act, as amended. Such depositary shall pay upon such money interest at such rate as the Comp- troller may prescribe, not less, however, than 2 per centum per annum upon the average month- ly amount of such deposits. (R.S. § 5234; May 15, 1916, ch. 121, 39 Stat. 121; Aug. 23, 1935, ch. 614, title III, § 339, 49 Stat. 721; Pub. L. 86–230, § 17, Sept. 8, 1959, 73 Stat. 458; Pub. L. 103–325, title VI, § 602(g)(11), Sept. 23, 1994, 108 Stat. 2294.) Editorial Notes REFERENCES IN TEXT Sections 131 and 132 of this title, referred to in text, were repealed by Pub. L. 103–325, title VI, § 602(e)(14), (15), Sept. 23, 1994, 108 Stat. 2292. Section 12B of the Federal Reserve Act, as amended, referred to in text, formerly classified to section 264 of this title, has been withdrawn from the Federal Re- serve Act and incorporated in the Federal Deposit In- surance Act which is classified generally to chapter 16 (§ 1811 et seq.) of this title. CODIFICATION R.S. § 5234 derived from act June 3, 1864, ch. 106, § 50, 13 Stat. 114, which was part of the National Bank Act. See section 38 of this title. Page 65 TITLE 12—BANKS AND BANKING § 197 AMENDMENTS 1994—Pub. L. 103–325 struck out ‘‘has refused to pay its circulating notes as therein mentioned, and’’ before ‘‘is in default’’. 1959—Pub. L. 86–230 struck out provisions which re- quired receiver to enforce the personal liability of shareholders. 1935—Act Aug. 23, 1935, inserted second proviso in sec- ond par. Statutory Notes and Related Subsidiaries APPLICATION TO DISTRICT OF COLUMBIA Provisions of this section were made applicable to banks, etc., in the District of Columbia by act Mar. 4, 1933, ch. 274, § 4, 47 Stat. 1567. INTEREST ON DEPOSITS So much of existing law requiring the payment of in- terest with respect to any funds deposited by the United States or by any public instrumentality, agen- cy, or officer thereof, as is inconsistent with former section 371a, sections 371b, 374, 374a, and 461, former sec- tions 462 to 465, and section 466 of this title, repealed, see former section 371a of this title. Executive Documents TRANSFER OF FUNCTIONS For transfer of functions to Secretary of the Treas- ury, see note set out under section 55 of this title. § 193. Notice to present claims The Comptroller shall, upon appointing a re- ceiver, cause notice to be given, by advertise- ment in such newspapers as he may direct, for three consecutive months, calling on all persons who may have claims against such association to present the same, and to make legal proof thereof. (R.S. § 5235.) Editorial Notes CODIFICATION R.S. § 5235 derived from act June 3, 1864, ch. 106, § 50, 13 Stat. 114, which was part of the National Bank Act. See section 38 of this title. Statutory Notes and Related Subsidiaries APPLICATION TO DISTRICT OF COLUMBIA Provisions of this section were made applicable to banks, etc., in the District of Columbia by act Mar. 4, 1933, ch. 274, § 4, 47 Stat. 1567. Executive Documents EXCEPTION AS TO TRANSFER OF FUNCTIONS Functions vested by any provision of law in Comp- troller of the Currency, referred to in this section, not included in transfer of functions to Secretary of the Treasury, see note set out under section 1 of this title. § 194. Dividends on adjusted claims; distribution of assets From time to time, the comptroller shall make a ratable dividend of the money so paid over to him by such receiver on all such claims as may have been proved to his satisfaction or adjudicated in a court of competent jurisdiction, and, as the proceeds of the assets of such asso- ciation are paid over to him, shall make further dividends on all claims previously proved or ad- judicated; and the remainder of the proceeds, if any, shall be paid over to the shareholders of such association, or their legal representatives, in proportion to the stock by them respectively held. (R.S. § 5236; Pub. L. 103–325, title VI, § 602(g)(12), Sept. 23, 1994, 108 Stat. 2294.) Editorial Notes CODIFICATION R.S. § 5236 derived from act June 3, 1864, ch. 106, § 50, 13 Stat. 114, which was the National Bank Act. See sec- tion 38 of this title. AMENDMENTS 1994—Pub. L. 103–325 struck out ‘‘, after full provision has been first made for refunding to the United States any deficiency in redeeming the notes of such associa- tion’’ after ‘‘From time to time’’. Statutory Notes and Related Subsidiaries APPLICATION TO DISTRICT OF COLUMBIA Provisions of this section were made applicable to banks, etc. in the District of Columbia by act Mar. 4, 1933, ch. 274, § 4, 47 Stat. 1567. Executive Documents EXCEPTION AS TO TRANSFER OF FUNCTIONS Functions vested by any provision of law in Comp- troller of the Currency, referred to in this section, not included in transfer of functions to Secretary of the Treasury, see note set out under section 1 of this title. § 195. Repealed. Pub. L. 103–325, title VI, § 602(e)(36), Sept. 23, 1994, 108 Stat. 2292 Section, R.S. § 5237; Mar. 3, 1911, ch. 231, § 289, 36 Stat. 1167, related to injunction by bank denying failure to redeem notes. § 196. Expenses All expenses of any preliminary or other ex- aminations into the condition of any association shall be paid by such association. All expenses of any receivership shall be paid out of the assets of such association before distribution of the proceeds thereof. (R.S. § 5238; Pub. L. 103–325, title VI, § 602(g)(13), Sept. 23, 1994, 108 Stat. 2294.) Editorial Notes CODIFICATION R.S. § 5238 derived from act June 3, 1864, ch. 106, § 51, 13 Stat. 115, which was the National Bank Act. See sec- tion 38 of this title. AMENDMENTS 1994—Pub. L. 103–325 struck out at beginning ‘‘All fees for protesting the notes issued by any national banking association shall be paid by the person procuring the protest to be made, and such association shall be liable therefor; but no part of the bonds deposited by such as- sociation shall be applied to the payment of such fees.’’ § 197. Shareholders’ meeting; continuance of re- ceivership; appointment of agent; winding up business; distribution of assets (a) Whenever any national banking associa- tion shall have been or shall be placed in the