The Powers possessed by national banking associations may be enumerated as follows:

1. To adopt and use a corporate seal.

2. To have succession for twenty years, unless sooner voluntarily dissolved or their franchises become forfeited by some violation of law.

3. To sue and to be sued.

4. To elect and appoint directors, and by the directors to appoint a president, cashier, etc.

5. To adopt necessary by-laws not inconsistent with law.

6. To make contracts.

7. To exercise by the directors such incidental powers as may be necessary to carry on the general business of banking, such as discounting paper, receiving deposits, loaning money on personal security, buying and selling exchange, etc., obtaining and issuing circulating notes.

The Principal Restrictions placed upon national banking associations may be enumerated as follows:

1. National banks can hold real estate on the following conditions: a. Such as may be needed for their immediate accommodation in the transaction of business.

b. Such as may be mortgaged or conveyed to them in good faith by way of security for debts previously contracted.

c. Such as they shall purchase at sales under judgments, etc., held by the association.

Possession of real estate under mortgage, or title and possession of any real estate purchased to secure debts due to national banks, cannot be held for a longer period than five years.

2. No increase or reduction of the capital stock of national banks can be made without the approval of the Comptroller. No increase is valid until the full capital stock has been paid.

3. They are prohibited from loaning a person or a firm an amount exceeding one-tenth part of their capital and surplus, providing the amount loaned does not exceed 30% of the capital. This restraint is to prevent excessive loans, which always impair the general usefulness of a bank.

4. They cannot use their own circulating notes to pay for or increase their capital stock.

5. They are expressly prohibited from certifying a check in excess of a depositor's account.

6. They may not establish branches.