Prior to the passage of the Federal Reserve Act, an applicant bank before being permitted to do business was required to deposit with the Treasurer of the United States what were known as "charter bonds." The Federal Reserve Act repealed this requirement, so that now it is not necessary for the bank to purchase and deposit bonds unless it desires to take out circulating notes. To take out circulation, the bank must send to the Comptroller United States registered interest-bearing bonds, having the circulation privilege, to the amount provided by the National Bank Act, and these bonds in turn are transferred to, and deposited with, the Treasurer of the United States in trust for the sending bank.