Lancaster gazette. [volume] (Lancaster, Mass.) 1828-1830, 1828-05-20


mon SEAL and the same at pleasure again to break al
er ana renew; and also to establish and put in force
such bylaws and regulations as to them shall anneor
necessary and convenient for the government of said
corporation and at any legal meeting of the stock
oiders duly called therefor by majority of votes
tne same to alter, mend or annul and to substitute
otierS IN thelr place, as shall seem to them right
ana ,expedent; which being entered on their books
shail be valid and binding Provided, that such by
laws and regulations shall in no wise be contrary to
the constitution and laws of this Commonwealth,
AND SAID banking corporations are hereby made ca
pablo In law to have, hold, purchase, receive, pos
sess and retain to them, their successors. and as
signs, lands, rents, tenements, and hereditaments
TO an amount authorized by law with power to bar
gain, sell and dispose of the same and to loan and
negotiate their moneys and effects by dscountnq
on banking principles such security as they shall
think advisable
SEC. 8. Be ittiutker enacted, That no bank shall
go into operation, make discounts, loan money. emit
pills or promissory notes. until fifty per cenfum, at
least of its capital stock shall have been paid in GOLD
and silver and existing in its vaults which shall
nave been examined by three Commissioners an
pointed by the Governour whose duty it shall be at
the expense OF the bank, to examine and count the
money actually in the vaults and to ascertain by the
oaths Of majority of the directors of said bank
that Its capital hath been bona de paid in by the
stockholders of said bank toward payment for their
respective shares and not for any other purpose and
that 1t is intended to have it therein remain as part
OF said capital and to return certificate thereof to
the Governor and no loan shall be made to any
stakeholder until the full amount of his shares shall
have been paid into the Bank and no part of the
capital stock of any Bank shall be sold or transfer
red until the whole amount thereof shall have been
PAID In and no permanent loan or loans shall be
made to any director Of Bank to an amount ex-
ceedng ten per centum of the actual capital of said
Bank.
CCH A. ID = I'M
amount of debts which any banking corporation
shall at any time owe, whether by bond bill, note
or other contract shall not exceed twice the amount
OF Its capital stock actually paid in, exclusive of
sums due on account of deposits; nor shall there
be due to said corporation at any time more than
double the amount of its capital stock actually paid
in. In case of excess the directors under whose
administration it shall happen, shall be liable for the
same in their private capacities and an action of
debt may IN such case be brought against Them or
any OF them, their any of their heirs executors
or administrators, in any court proper to try the
same by any creditor creditors of said corpora
ton, and may be prosecuted to final Judgment and
execution any condition. covenant or agreement
to the contrary Notwithstanding. But this shall not
be construed to exempt said corporation or the lands
tenements goods, chattels of the from being
also liable for and chargeable with said excess
Such of said directors who may have been absent
when said excess was contracted created, or who
may have dissented from the resolution or act
whereby the same was contracted or created, may
respectively exonerate themselves from being so IL
able, by forthwith giving notice of the fact and of
their absence or dissent, to the Governour and
Council, and to the Stockholders, at any general
meeting which they shall have power to call for
that purpose: ,,.,u.., .,,...,,,
corporation within and under the authority of this
Commonwealth, shall vest, use, or improve any of
its monies, goods, chatteis, effects in trade or
commerce but any corporation aforesaid may sell
all kinds Of personal pledges, lodged with it by way
of security, to amount sufficient to reimburse the
sum loaned with interest. Every banking corpora
ton aforesaid may hold real estate lands and te-
nements requisite for the convenient transaction of
its business, not exceeding five per centum on the
amount of its capital stock exclusive ofwhat it may
hold on mortgage receive on execution, or take as
security for or in payment of any debt due to said
corporation, and no more.
| SEC. 6. Be it further enacted That none but
member of the corporation for which he is chosen
a director being citizen of, and resident in the
Commonwealth, shall be eligible for that Office and
majority of directors in any bank must be residents
within the county where the bank is located and no
person shall be director in two banks at one and
the same time. No bank shall have less than five,
or more than twelve directors, to be determined by
their bylaws. The directors shall choose one Of
their own number to act president and in case of
the absence of the president chairman may be ap-
pointed for the time being. majority of the d.
rectors shall always be necessary to constitute a
| quorum for doing business. The directors may
make the president such compensation as shall ap-
| pear to them reasonable.
SEC. T. Be it. further enacted, That the directors
shall be chosen by ballot annually at a meeting to
be holden on the first Monday in October by the
| Stockholders, at such time and place, within the
city or town where said bank is established, the
president and directors for the time being may de-
signate, by giving public notice thereof fourteen
days previous thereto. The number of votes to
which each stakeholder shall be entitled shall be
according to the number of shares he shall hold In
the following proportions, that is to say, for one
share one vote and every two shares above one
| shall give right to one vote more. PrOotded, no
one member shall have more than ten votes; and
absent members may vote by proxy, being authorized
| in writing.
Vacancies occurring in the Board of Directors
before the expiration of the term for which they
were chosen, may be filed at any meeting of the
stockholders called for that purpose, as herein be-
fore provided. In like manner the directors shall
have power to call special meetings OF the stock
holders, often as they think the interest OF the
corporation may require 1t.
SEC g. Be 1t further enacted, That the Directors
shall make half yearly dividends ofthe profits of the
Bank
The Directors shall have power to appoint cash
ier clerks and such other officers, for carrying on
the business of the Bank with such salaries as to
them shall seem meet
SEC. 9. Be 1t further enacted, That the Cashier,
before he enters on the duties of his office, shall
give bond or bonds, with two or more suretles, to
the satisfaction of the Board of Directors, with con-
ditions for the faithful performance of the duties of
his office Provided, That in no case shall bonds
be taken for less sum than twenty thousand dol
lars, nor greater than fifty thousanddollars
1t shall be the duty of the Cashier of any Bank
aforesaid to call special meetings of the Stockhold-
ers at any time hereafter on the application in wr-