It has authority to receive special de posits of securities, etc., and is responsible for their loss if occasioned by gross negli gence ; First N. Bk. v. Graham, 100 U. S. 699, 25 L. Ed. 750, affirming 79 Pa. 106, 21 Am. Rep. 49; Turner v. Bank, 26 Ia. 562; Smith v. Bank, 99.Mass. 605, 97 Am. Dec. 59; Chattahoochee N. Bk. v. Schley, 58 Ga. 369; Pattison v. Bank, 80 N. Y. 82, 36 Am. Rep. 582; Prather v. Kean, 29 Fed. 498; contra, Wiley v. Bank, 47 Vt. 546, 19 Am. Rep. 122 ; Whitney v. Bank, 50 Vt. 388, 28 Am. Rep. 503; or by want of ordinary care ; Bank v. Zent, 39 Ohio St. 105 ; Lancaster County N. Bk. v. Smith, 62 Pa. 47.
It may take legal proceedings to recover stolen property for itself or for depositors, and will be held responsible for lack of dili gence, skill, and care in performing such an undertaking ; Wylie v. Bank, 119 U. S. 361, 7 Sup. Ct. 268, 30 L. Ed. 455.
A national bank has no power to indorse a note for compensation ; Nat. Bk. v. Burr, 27 Hun (N. Y.) 109; but, should it do so, only the government may object; id.; Nat. Bk. v. Whitney, 103 13. S. 99, 26 L. Ed. 443 ;. but it may guarantee a note ; People's Bk. .v. Bank, 101 U. S. 183, 25 L. Ed. 907. It may not receive deposits when insolvent ; Cragie v. Hadley, 99 N. Y. 131, 1 N. E. 537. It can not be garnisheed for a deposit of a trust estate or pay out funds of a bankrupt ex cept upon a warrant of an assignee in bank ruptcy of the district or by the register in bankruptcy of the district; Havens v. Bank, 6 Thomp. & C. (N. Y.) 346.
National banks may purchase, hold, and convey real estate for the following pur poses, and for no others: 1. Such as shall be necessary for its immediate accommoda tion in the transaction of its business. 2. Such as shall be mortgaged to it in good faith by way of security, for debts previ ously contracted. 3. Such as shall be con veyed to it in satisfaction of debts previous ly contracted in the course of its dealings. 4. Such as it shall purchase at sales under judgments, decrees, or mortgages held by the association, or shall purchase to secure debts due to it; title in the latter case, or under mortgage, to be held for no longer than five years. And see Union N. Bk. v. Matthews, 98 U. S. 621, 25 L. Ed. 188.
It is now settled that a bank may law fully take a mortgage to secure future in debtedness ; Simons v. Bank, 93 N. Y. 269; ['hornton v. Bank, 71 Mo. 228 ; Winton v. hittle, 94 Pa. 64 ; Turner v. Bank, 78 Ind. 19; Oldham v. Bank, 85 N. C. 240. Such a loan of money on real estate security by a national bank is valid between the parties ; Union Nat. Bk. v. Matthews, 98 U. S. 621, 25
L. Ed. 188, reversing Matthews v. Skinker, 62 Mo. 329, 21 Am. Rep. 425; contra, Fowler 1 v. Scully, 72 Pa. 456, 13 Am. Rep. 699; Frid ley v. Bowen, 87I11. 151; and that it had so loaned money in violation of the prohibition of the national banking law does not give the debtor a right to object; the United States alone can complain ; Fortier v. Bank, 112 13. S. 439, 5 Sup. Ct. 234, 28 L. Ed. 764 ; Schnyler N. Bk. v. Gadsden, 191 U. S. 451, 24 Sup. Ct. 129, 48 L. Ed. 258. It may take a purchase-money mortgage on real estate sold by it ; Nei' Orleans N. Bk. v. Raymond, 29 La. Ann. 355, 29 Am. Rep. 335 ; and it may purchase real estate at a judgment sale; Heath v. Bank, 70 Ind. 106; Reynolds v. Bank, 112 U. S. 405, 5 Sup. Ct. 213, 28 L. Ed. 733; Upton v. Bank, 120 Mass. 153; Mapes v. Scott, 88 Ill. 352; and a prior mortgage if needful to protect the interest of the bank ; Holmes v. Boyd, 90 Ind. 332. It may take real estate in payment of a debt due it, and may pay the excess value thereof over the debt; Libby v. Bank, 99 Ill. 622; and may buy in outstanding interests in such real es tate, or encumbrances thereon, if necessary, to enable it better to handle or dispose of it ; Cockrill v. Abeles, 86 Fed. 505, 30 C. C. A. 223 ; Holmes v. Boyd, 90 Ind. 332. If hold ing a second mortgage, it may buy the prop erty at a foreclosure sale under the first mortgage; Heath v. Bank, 70 Ind. 106.
A converted bank may take real estate be longing to it whilst it was a state bank ; Scofield v. Bank, 9 Neb. 316, 2 N. W. 888, 31 Am. Rep. 412; it may accept personal prop erty in payment upon the sale of real estate belonging to it ; First N. Bk. v. Reno, 73 Ia. 145, 34 N. W. 796; and the assignment of a mortgage on land to secure a loan made at the time of the assignment ; First N. Bk. v. Andrews, 7 Wash. 261, 34 Pac. 913, 38 Am. St. Rep. 885.
A transfer of stock in a national bank which is insolvent at the time, made with an intent to avoid liability, where the trans feree has reason to believe that the bank is insolvent, will not relieve the transferrer from the residuary liability to pay the debt of the bank, and such a transfer may be treated by the receiver as inoperative with out regard to the financial condition of the transferee ; but if the bank is solvent at the time of the transfer the motive with which it is made is immaterial ; Stuart v. Hayden, 169 U. S. 1, 18 Sup. Ct. 274, 42 L. Ed. 639.