itself from its obligation to pay the required bonus, and that the State could
not require it, in reorganizing as a National bank, to pay any bonus
State v. The Nat. Bank of Baltimore, 528.
2. Effect of] The conversion of a State bank into a National bank, under
the act of Congress of June 3d, 1864, did not work an annihilation or
dissolution, but only a change of the bank. Maynard v. Bank, 892.
Such change does not adeem a residuary legacy in certain shares of
the bank, limited upon a life estate in such shares which is to become an
absolute one, in case the bank should pay off or refund its stock, by
reason of the expiration of its charter or from any other cause. The
change is not equivalent in law to a paying off in fact, and the residuary
legatee is entitled to the stock on the death of a legatee for life. lb.
] When a bank, organized under the laws of a State, reorganizes
as a National bank under the act of Congress, it escapes none of its liabil-
ities by the change. Coffey v. The National Bank of Missouri, 644.
5. Measure of damages.] In an action of trover against a bank, after its
reorganization as a National bank, for the value of certain special deposits
in coin made prior thereto; held, that the measure of damage was the
value of the coin at the date of its conversion, with interest thereon. Ib.
Evidence of incorporation.] See EVIDENCE; ORGANIZATION.
When incorporation cannot be questioned.] See ESTOPPEL, 142, 406, 784.
A National bank suing in New York must give security for costs. Nat.
Park Bank v. Gunst, 797, and note.
1. In an action by a National bank the defendant cannot be allowed a
counter-claim for unlawful interest paid by him more than two years prior
thereto. Nat. State Bank v. Boylan, 798.
2. One of two or more defendants cannot set up an individual counter-
claim, unless, under the pleadings, there can be a several judgment against
him. lb.
Creditors are not proper parties to an action against stockholders, to enforce
their liability. Kennedy v. Gibson, 17.
CURRENCY.
See CIRCULATION.
When transfer of stock to escape liability to, void.] See STOCKHOLDERS, 271.
On loss of bonds pledged as collateral.] See BANKING BUSINESS, 545; CONVER-
SION, 644.
For sale of shares subject to lien.] See SALE, 921.
Where, from the tax on other moneyed capital, the entire indebtedness of the
owner was deducted, a tax on National bank shares was held invalid,
because no similar deduction was made. City Nat. Bank v. Paducah, 300.
Against National banks, what are.] See WINDING Up, 454.
Deduction from tax on account of.]
See TAXATION, 684.
DEPOSITARIES.
Of public moneys.] See PUBLIC DEPOSITARIES, 363.
DEPOSITORS.
See SET-OFF, 758.
1. Set-off against debt in bank.] A National bank having become insolvent, a
depositor therein assigned his deposit to a debtor of the bank. Held,
that the latter could not offset such deposit against his debt in an action
thereon. Venango Nat. Bank v. Taylor, 842.
-] A depositor may set-off his deposit against a debt due the bank when
the bank becomes insolvent. Platt v. Bently, 758.
3. When demand of, not necessary.] Where a National bank has, by its own
default, been placed in the hands of a receiver, a demand of payment of
a deposit is no longer a necessary condition precedent to a right of action
for the deposit, and the deposit bears interest from the time of such
default. Chemical Nat. Bank v. Bailey, 260.
4. Interest on, after demand and refusal.] A National bank, holding deposits,
refused to pay the same on demand and thereafter a receiver was ap.
pointed. Held, that the depositor was entitled to interest thereon from
the date of the demand. Nat. Bank of Commonwealth v. Mechanics'
-] The entire principal of the deposits, but no interest thereon, was
paid by the receiver. Held, that interest upon the aggregate of unpaid
interest was recoverable. lb.
6. Nature of claim for deposits.] The claims of depositors in a suspended
National bank are, when proved to the satisfaction of the Comptroller of
the Currency, on the same footing as if they were reduced to judgments.
Ib.
Of bank to secure circulation — courts cannot interfere with.] See JURISDIC-
TION, 208, 219.
DEPOSITS FOR SAFE-KEEPING.
1. National bank not authorized to take.] The taking of special deposits, to
keep merely for the accommodation of the depositor, is not within the
authorized business of National banks; and the cashiers of such banks
have no power to bind them on any express contract accompanying, or
any implied contract arising out of, such taking. Wiley v. First Nat. Bank,
905, and note.
DEPOSITS FOR SAFE-KEEPING--Continued.
2. Power of cashier to take.] The cashier or other executive officer of a
National bank has not, in the absence of special authority from the
directors or of a usage or practice so to do, power to receive, on behalf of
the bank, property for safe-keeping. First Nat. Bank v. Ocean Nat.
Bank, 728.
-] Quere as to the power of a National bank to become a bailee of prop-
erty either gratuitously or for hire. Ib.
4. Liability for.] A gratuitous bailee is only liable for gross negligence; he
is not bound to any special or extraordinary measures to protect the
property, and the negligence with which he can be charged, or which is
the proper subject of evidence, is only that which is connected with and
directly contributes to the loss. Ib.
5. Admissions of officers.] In an action against a bank for the loss of prop-
erty which it had received as gratuitous bailee, held, that the declaration
and admissions of the president, tending to show negligence on his part,
made after the transaction, and when not acting within the limit of his
authority, were not binding upon the bank. Ib.
6. Liability of National banks as to deposits for safe-keeping.] Semble, a
National bank which habitually receives special deposits for safe-keep-
ing as matter of accommodation, is bound by the act of its cashier in
receiving, on special deposit, a package of stocks and bonds. The bank,
though acting without reward, becomes a bailee and is responsible for
gross negligence. Chattahoochee Nat. Bank v. Schley, 379.
7. Power to withdraw deposits.] If a person withdraws from a bank a special
deposit, in pursuance of authority conferred upon him by the depositor,
the bank is discharged, though at the time its officers were not aware of
his authority. Ib.
-] Written authority indorsed on a certificate of deposit of stocks and
bonds to pay to a certain person dividends or coupons is no authority for
surrendering the stocks and bonds themselves. Ib.
9. Liability of National bank for.] In an action to recover of a bank the
value of bonds deposited for safe-keeping by plaintiff, and stolen by the
teller of the bank, held, that the bank being a gratuitous bailee was not
liable, although an examination of the teller's accounts, after the theft,
proved them to have been falsely kept, and showed that he had been
abstracting funds for two years, and although it was known to the presi-
dent of the bank that he had dealt once or twice in stocks. Mistaken
confidence is not a ground of liability in such cases. Scott v. Nat. Bank,
864.
10. Negligence in keeping.] Whether or not a National bank has the power to
take bonds, etc., on deposit for safe-keeping, it is not liable for the loss of
such property so taken without compensation, unless it has been guilty of
gross negligence contributing to the loss. De Haven v. Kensington Nat.
Bank, 882.
11. Liability of bailee.] In an action against a National bank to recover bonds
deposited with it for safe-keeping, without compensation, and which the
DEPOSITS FOR SAFE-KEEPING-Continued.
bank alleged were stolen from its vaults, held, (1) that the bank was liable
only for gross negligence; (2) that its failure to give prompt notice of the
robbery was a question for the jury as bearing on the question of negli-
gence; and (3) that while the mere voluntary act of the cashier in receiv-
ing the funds would not subject the bank to liability, yet if the deposit
was known to the directors and they acquiesced in its retention, a contract
relation was created by which the defendants would be held bound. First
Nut. Bank v. Graham, 875.
1. Qualification of] Where no qualification is required and there is no
usage to control, a person who is elected a bank director is presumed
to accept the office unless he decline it. This presumption may be rebut-
ted. Whether simple non-action as a director, for five months, would be
ordinarily sufficient to rebut it-query. But where the stockholders of
a bank, in an instrument authorizing its conversion from a State to a
National bank, named all the directors who had been elected at the last
annual election as those who are now directors of said bank," the court
cannot hold that two of those so named were not directors at the time of
such conversion, because they had never acted in that capacity since their
election five months previously. Lockwood v. American Nat. Bank, 895.
-] By the provisions of section 44 of the National Banking Act, upon
conversion of a State to a National bank, all the directors of the former
become those of the latter, until an election or appointment by the
National bank. Semble, that no oath is required from these ad interim
directors, the oath prescribed by section 9 of the aforesaid act being
designated for those regularly elected by the National bank, but, assum-
ing its necessity, a majority of those who were the directors of the State
bank before its conversion is necessary to make a quorum of the board of
the National bank. Ib.
3. Number necessary to hold meeting.] In all cases where an act is to be
done by a corporate body or a part of a corporate body and the number is
definite, a majority of the whole number is necessary to constitute a legal
meeting, although at a legal meeting, where a quorum is present, a
majority of those present may act. lb.
4. By-laws. Hence, a by-law adopted at a meeting of six ad interim directors
of a National bank, which had twelve directors before its conversion, is
invalid, because not adopted by a majority or quorum of the board. Ib.
Right of, to remove officers.] See OFFICERS.
Negligence of.] See BONDS; DEPOSITS FOR SAFE-KEEPING.
Of National banks abates actions against.] See ACTION, 109.
DISTRAINT.
See PAYMENT, 268.
1. Lien of National bank on dividends.] A National bank has a lien on and
the right to hold a cash dividend as pledge for the indebtedness of the
Hagar v. Union Nat. Bank, 523.
2. Attachment of shares.] A National bank may attach the shares of a stock-
holder therein for his debt due the bank. Ib.
3. Demand of dividend.] A National bank sued a shareholder therein for
money due and attached his shares. Pending the suit he demanded pay-
ment of the dividends declared upon the attached shares, which was
refused. He afterward settled the suit and brought an action for his divi-
dends, without renewing his demand. Held, that the demand while the
shares were attached was a nullity, and as dividends were not payable
until demanded, the action could not be maintained. Ib.
EMBEZZLEMENT AND LARCENY.
1. Embezzlement and false entries by officers of National banks.] The presi
dent of a National bank was charged before a United States Commissioner
with embezzlement of the funds of the bank, and with having made false
entries in its books, and, after examination, was held for trial. The pro-
ceedings having been brought before the District Court for review by
habeas corpus, and certiorari, held, (1) that the court would examine the
evidence and do what the commissioner ought to have done; (2) that if
the evidence showed probable cause of the defendant's guilt he was right-
fully held for trial; (3) that proof of the de facto existence of a bank
called a National bank and that the defendant acted as president of it was
sufficient to establish the legal incorporation of such bank and of the
defendant's official connection therewith. In the Matter of Van Campen,
185.
2. False entries.] Where false entries are made in the books of a bank by a
clerk in the bank, by direction of the president, the latter is liable there-
for as principal. Ib.
3. Intent.] An intent to defraud a bank is to be inferred from the fact of
embezzlement. lb.
4. What is embezzlement.] Where the president of a National bank, charged
as trustee with the administration of the funds of the bank in his hands,
converts them to his own use, he embezzles and abstracts them, within
section 55 of the National Banking Act (13 Stat. at Large, 116) unless he
shows authority for so doing. Ib.
5. Indictment for embezzling and misapplying funds of bank — evidence of
intent.] The cashier of a National bank was indicted under section 55 of
the act of 1864 (13 Stat. at Large, 116), for embezzling, abstracting and
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