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recorded in the office of the register of deeds of the county where the office of such bank may be established, and a copy thereof shall be filed in the office of the Auditor of State ; and, upon the recording of such certificate the person or persons aforesaid shall become a body politic and corporate, by the name assumed as aforesaid, and by such name shall have power to contract and be contracted with, sue and be sued, and shall have all other powers, privileges and immunities incident to corporations and applicable to the end of such establishments, subject to the provisions and restrictions of this act.

SEC. 11. A copy of the certificate required by the next prece- Copy of certificate ding sections, duly certified by the register of deeds of the four or against county, or by the Auditor of State, may be used as evidence in all courts for or against such bank or any person or persons for or against whom any such evidence may be necessary, whether on civil or criminal trial.

SEC. 12. Such person or association of persons shall have powers of banke power to carry on the business of banking, by discounting bills, notes and other evidences of debt, by receiving deposits, by buying and selling gold and silver bullion, foreign coin and foreign and inland bills of exchange, by loaning money on real or personal securities, and by exercising such incidental powers as may be necessary to carry on such business ; may choose one of their number as president, and appoint a cashier and such other officers as their business may require, and to remove such president, cashier, oficers and agents at pleasure, and to appoint others in their places; but no such association or banker shall commence the business of banking under this act, until such association or banker shall have deposited with the Auditor of State the securities required by this act.

Sec. 13. The shares in such bank shall be deemned personal property, and shall be transferable on the books of the bank in such manner as may be agreed upon in the articles organizing such bank, and every person becoming a stockholder therein, shall, in proportion to his interest, succeed to all the rights and be subject to all the liabilities of prior shareholder or shareholders ; no change shall be made in the articles organizing such bank, whereby the rights, remedies or securities of existing creditors shall be in any manner impaired, and any association constituting such bank shall not be dissolved by the death or insanity of any one of the shareholders therein.

Sec. 14. If the maker or makers of any such circulating note

Shares deemed personal property Notes not redeemed may be protested.

or notes, countei signet and registered as aforesaid, shall, at any time hereafter, on lawful demand, during the usual hours of business, at the place where such note or notes is or are made payable, fail or refuse to redecin such ncte or notes, in the lawful money of the Unted States, the holders of such note or notes making such demand may cause the same to be protested, for non-payment, by a notary public under his official seal ; but the maker or makers of such 10le or notes shall not be liable for the expense of so protesting the same, unless, on such demand and refusal so to redeem the same, he or they shall refuse to waive protest and notice of protest thereon, and such waiver of protest shall, in all cases, be deemed equivalent to the regular protest thereof; and such notary shall, on protesting the same, forthwith forward notice of such protest to the Auditor of State; the notary making such protest shall certify in his notice of protest the number of notes on which said payment was refused, and describe them by their numbers and letters, and shall also certify to the aggregate amount of said notes; the Auditor of State on receiving and filing in his office such protest, together with such note or notes as aforesaid, shall forthwith give notice, in writing, to the maker or makers of such note or notes to pay the same; and, if they shali omit to do so for twenty days after such notice, the Auditor shail innmediately thereupon, unless he shall be satisfied there is a good and legal defense against the payment of such note or notes, give notice that all the circulating notes of such person or association of persons, and countersigned and registered as aforesaid, will be redeemed out of the trust funds in his hands for that purpose, which notice shall be given by publishing the same in some newspaper printed in the county where the business of such bank is established, and in some newspaper printed at the seat of government of this State ; and the Auditor of State shall be required to apply the said trust

funds belonging to the maker or makers of such protested note meat of all notes. or notes, to the payment of all circulating notes, whether protested

or not, put in circulation by the maker or makers of such protested note or notes, pursuant to the provisions of this act, and to adopt such measures for the payment of such notes as will, in his opinion, most effectually prevent loss to the holder of such notes ; and, to this end, the Auditor of State may, after the expiration of the said twenty days, and after giving thirty days notice, by publication in a newspaper printed at the seat of government of this State, and in a daily newspaper printed in the city of New

If bills not re-
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York, proceed to sell, at the Merchant's Exchange, in the city How the back of New York, at public auction, the securities so pledged, and, out of the proceeds of such sale shall pay pro rata and cancel Bill holders paid all bills and notes which have been issued and put in circulation by such bank under the provisions of this act; but nothing in this act contained shall be considere l as implying any pledge on the part of this State, for the payment of such bills or notes, Stato not hela aobeyond the proper application of the securities pledged to the Auditor of State for their redemption.

SEC. 15. Such bank or banking association shall be liable to Bankers liable for pay the holder of every bill or note put in circulation as money, the payment of which shall have been demanded and refused, at the banking house or usual place of business of such association or bankers, damage for non-payment thereof, from the time of such refusal until the payment or such evidence of debt, and damages thereon.

Sec. 16. It shall not be lawful for the Auditor of State, or Auditor shall not bis deputy, to countersign bills or notes for any association or curities. banker to an amount, in the aggregate, exceeding the securities at their value, as before provided in this act, deposited with him in trust by such association or banker, or to use or dispose of such securities in any manner other than provided for in this act; Penalty of breakand any Auditor of State, or deputy, who shall violate the provisions of this section, shall, upon conviction, be deemed guilty of a misdemeanor, and be punished by a fine not less than five thousand dollars, or be imprisoned not less than five years in the State's prison, or by both such fine and imprisonment.

Sec. 17. It shall be lawful for any person or association of capitale steal may persons organized under ihe provisions of this act, by his or their articles of association, to provide for an increase of their capital stock and of the numbers of such association, from time to time, as they may think proper.

Sec. 18. Contracts made by any bank or banking associations Bills shall bo established under the provisions of this act, and all notes or bills and Cashier. issued and put in circulation as money, shall be signed by the president and cashier thereof, and all suits, actions and proceedings brought or prosecuted by and in behalf of such bank or banking association, shall be bronghi ard prosecuted in the corporate name mentioned in the certificate made and filed as hereinbefore required.

Ses. 19. It shall be lawful for such bank or banking associa- Many haldearad.contion to purchase, hold and convey real estate, for the following

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A list of all names of shareholders shall be kept.

purposes : First-Such as shall be necessary for its immediate accommodation in the convenient transaction of its business. Second-Such as shåll be mortgaged to it in good faith by way of security for loans made by, or money due to, such bank. Third-Such as shall be conveyed to it in satisfaction of debts previously contracted in the course of its dealings. FourthSuch as it shall acquire by sale on execution or decree of any court in its favor. The said bank shall not purchase, hold or convey real estate in any other case or for any other purpose whatever, and all conveyances of such real estate shall be made to the corporations, and which real estate the president and cashier may sell, assign, grant or convey, under the direction of the association, free from any claim thereon in favor of or against the shareholders or any person claiming under them.

SEC. 20. The president and cashier of every bank formed pursuant to the provisions of this act, shall, at all times, keep a true and correct list of the names of all the shareholders of such bank, with the amount of stock held by each, the time of transfer and to whom transferred, and shall file a copy of such list in the office of the register of deeds of the county wherein such bank may be located, and, also, in the office of the Auditor of State, on the first Monday in January and July in each year, and the stockholders in each bank shall be individually liable in

amount equal to double the amount of stock owned by them, for Stockholders lia all the debts of such bank, and such individual liability shall con

tinue for one year after any transfer or sale of stock by any stockholder or stockholders.

SEC. 21. In the event of the insolvency of any bank established under the provisions of this act, the bill holders thereof shall be entitled to preference in payment over all other creditors of such bank.

Sec. 22. It shall not be lawful for any bank formed under the provisions of this act to make any of its bills, or notes to be put in circulation as money, payable at any other place than the office where the business of the bank is carried on and conducted, nor to issue of the same at any other place, and said bills or notes shall be made payable on demand and without interest.

SEC. 23. When the owner or owners of any bank, desirous of relinquishing the banking business, shall notify the State Auditor of such intention, then, and in such case, it shall be competent for said bank or bankers to redeem and deposit with the Auditor of State, from time to time, any amount of their circu

In cage of insolvency bill holders have the preferanoe.

All bills payable at the office.

Bankers to close up may redeem stock by notes.

twenty-five thou


give notice to

lating notes which may have been issued to said association, bank or bankers, in sums, however, not less than one thousand dollars at any one time, and to receive therefor and withdraw an equal amount of securities by them deposited with the Auditor of State;

but no bank shall continue to transact any business whatever, further than what may be required to close up after their No bank shall do capital stock, securities or circulation shall have been reduced to capital is below less than twenty-five thousand dollars, nor in any case after two sand dollars. years from the date of said notice of intention to relinquish and close up their banking business, as aforesaid ; and, whenever the

l retiring bank or bankers shall desire to withdraw all the securities heretofore lodged with the Auditor of State, they may do so, by producing and filing with the Auditor of State a certificate of deposit to his credit, in such bank as he shall approve of, an equal amount with the circulating notes of such bank or banks then remaining unredeemed, and the Auditor of State, on being satisfied of such deposits, and of the sufficiency thereof, shall give up all the remaining securities heretofore deposited by such bank or bankers for the redemption of the circulating notes issued.

Sec. 24. Such banking association or bankers, after having Barbecii eball complied with the provisions of the last preceding section, shall redeem their bills: give notice, for two years, in some newspaper printed in the county where such bank shall have been located, and in a paper printed at the seat of government of this State, that all circulating notes issued by such banking association or banker (must be presented] at the Auditor of State's office, within two years after two years from the date of such notice, or that the funds deposited for the shall relinquish redemption of the notes will be given up to the banking association or banker; and, on receiving satisfactory proof of the giving of such notice for the time aforesaid, the Auditor of State shall surrender to the order of such banking association or banker, any securities which he may hold for the payment of any unredeemed notes of the said banking association or bankers.

Sec. 25. Any banking association or banker wishing to with- Barbores mange draw

any of the securities by them deposited with the Auditor of ties. State, may do so by depositing an equal amount of the circulating notes which may have been issued to said association or banker by the Auditor of State, in sums of not less than one thousand dollars; Provided, That the amount of securities thus withdrawn, by deposits of said circulating notes, shall not reduce the amount of stock securities remaining in the hands of the Auditor of State, to less than twenty-five thousand dollars.


withdraw certain amount of securi

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