12 U.S.C. § 55

Enforcing payment of deficiency in capital stock; assessments; liquidation; receivership

Read at: OLRCuscode.house.gov CornellLII GovInfogovinfo.gov JustiaTitle 12 CasesGoogle Scholar

Every association which shall have failed to pay up its capital stock, as required by law, and every association whose capital stock shall have become impaired by losses or otherwise, shall, within three months after receiving notice thereof from the Comptroller of the Currency, pay the deficiency in the capital stock, by assessment upon the shareholders pro rata for the amount of capital stock held by each; and the Treasurer of the United States shall withhold the interest upon all bonds held by him in trust for any such association, upon notification from the Comptroller of the Currency, until otherwise notified by him. If any such association shall fail to pay up its capital stock, and shall refuse to go into liquidation, as provided by law, for three months after receiving notice from the comptroller, a receiver may be appointed to close up the business of the association, according to the provisions of section 192 of this title. And provided, That if any shareholder or shareholders of such bank shall neglect or refuse, after three months’ notice, to pay the assessment, as provided in this section, it shall be the duty of the board of directors to cause a sufficient amount of the capital stock of such shareholder or shareholders to be sold at public auction (after thirty days’ notice shall be given by posting such notice of sale in the office of the bank, and by publishing such notice in a newspaper of the city or town in which the bank is located, or in a newspaper published nearest thereto,) 11 So in original. to make good the deficiency, and the balance, if any, shall be returned to such delinquent shareholder or shareholders.

Notes of Decisions

Cited in 7 cases, 1929–2017 · leading case: Deitrick v. Greaney

Sort: Relevance Newest Treatment

Deitrick v. Greaney (1940) scotus · cites it 2× “§ 5205, 12 U.S.C. § 55 . To insure performance of these duties and as a safeguard to creditors and the public, violation of the provisions of the Act by any director or officer of the bank or by any person aiding or abetting him, is made a criminal offense, R.”

Laverpool v. Taylor Bean & Whitaker Reo LLC (2017) dcd “¶ 98(e), and also “requests a Civil Investigative Demand (CID) Order 12 U.S.C.A. § 55 [6]2(e); 12 C.F.R. § 1080.”

Metropolitan Holding Co. v. Snyder (1935) ca8 “They knew that a pro rata assessment would be required under 12 USCA § 55, or that a voluntary contribution would have to be effected, and that the Vandeventer Securities Company was not in a financial condition to make such a contribution.”

Willcox v. Goess (1937) ca2 “Code ( 12 U.S.C.A. § 55 ). But not every contingency makes a claim improvable (Maynard v.”

Vargas v. Wells Fargo Bank N.A. (2013) cand “Compare 12 U.S.C. § 55 (requiring notice of sale of capital stock “in *1176 a newspaper of the city or town in which the bank is located”) with 12 U.”

Guaranty Trust Co. of New York v. Grand Rapids, G. H. & M. Ry. Co. (1931) miwd “As the statute has provided a remedy, under section 5205 [12 USCA § 55], for the impairment of the capital, which includes the ease of an impairment produced by the payment of a dividend, we think the payment and receipt of a dividend, under the circumstances detailed in the…”

Brunner v. Johnson (1929) ca8 · cites it 3× “It is the contention of the appellant Brunner that his surrender of the stock to the bank to be sold to pay the 65 per cent, assessment made by the board of directors under section 5205, Revised Statutes (12 US CA § 55), relieves him from liability upon the subsequent assessment…”

Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.