The Rhode-Island Republican. [volume] (Newport, R.I.) 1809-1841, 1836-07-06
Laws Of RhOde-Island.
STATE OF RHODE-ISLAND AND PRO
yIDENCE PLANTATIONS.

In General Assembly, June SESSION, A. D'io'o'
AN ACT in addition TO an act entitled IAN
Act to regulate process against BANKS, ah9
for other purposes therein mentioned anu
also, in addition TO an act entitled " Al act
fixing the rate of legal interest"
BE il enactsd BY the General Assembly, ana
bp the authority tAereof IL IS enacted sJ0H'~S
SECTION |. Every act hereafter passed by the
C,onerJ Assembly authorizing the establish
80 ofa RINK. Savings Banks excepted) shall
;ncorporato no other persons than the stock
bolders of such bank, made in such manner
hereinafter provided, their successors X assigns.
Src. 3. In every such act thereShall be ma
med and appointed not less than three Commis-
sioners, whose duty il shall be at time x place
or times and places, to be specified IN the act,
10 open book or books of subscription for the
captal stock of the bank Incorporated by such
act. in the town or city, wherein such bank
shall be located (the inhabitants Of which town
or city. and the inhabitants of any town IN the
same county, shall have preference IN tho
subscription,) Twenty days public notice OF
the time and place for receiving such subscrip-
tions shall be given by the Commissioners, IN
at least two newspapers printed WITHIN tho
State. If those having preference as aiore-
said shall subscribe for more than the whole
number of shares limited in the charter OF such
hank. then tho commissioners shall distribute
the stock among them in rateable proportion,
as near as may be, reducing nosubscrlplion,
however, below a certain limit to bo liked IN
the charter. If they shall subscribe for less
than the whole number, and other persons
shall subscribe for more than enough to supply
the deficiency, then the commissioners shall
distribute in rateabe proportion, as near as may
be, among such other persons, so many shares
as in addition to the shares subscribed for by
said inhabitanls shall make up the number
limited in the charter. When the subscription
shall be completed, the commissioners shall,
forthwith, cause a copy thereof, togethcr wan
n copy oftheir apportionmeDt,if If any snail nave
been necessary, TO be published at the expense
ofthe bank, in a newspaper oftho town,where-
in the bank shall be, by its charter located, II
any be printed therein otherwise in some one
ofthe newspapers printed in Newport or Pro-
yidence. The commissioners shall also make
an immediate return ofthe subscription IN de-
tall with their apportionment, to tho Secretary
of State, who shall keep regular hle oil all
such returns, and thereupon the persons ap-
poaring by such return TO be entitled TO the
stock ofthe bank, shall have and exercise Us
body corporate, all the rights, powers, and pri-
yileges conferred by the act of Incorporation,
under the limitations and restrictions imposed
by law and they shall be forthwith convened
by the commissioners for the purpose OF or.
ranizing the corporation, and proceeding IN
the transaction Of their business. A majority
oil tho commissioners bldil N COlllbtb1hb w "hN'
Their compensation shall be provided for IN
the charter Before proceeding TO the oxocu-
tion of their duties they shall be sworn or ai-
frmed, before some competent magistrate,
faithfully and impartially TO discharge tho same
according TO law. And tho magistrate admin.
istering tho oath or Affirmation, SHALL without
delay, furnish the commissioners with ccrtifi-
cate thereof which certificate tho commission
crs shall transmit with their return Of tho sub
"a
Of State.
SEcS3 No Bank shall bo incorporated with
less cupital than fifty thousand dollars.
SEC. 4. No Bank shall go into operation un-
ill one half its capital stock shall be actually
paid in, TO the satisfaction of the Commission
ers. upon whose certificate to that effect fur
nshcd to tho Cashier, banking business may
be commenced A copy of such certificate
shall be transmitted by tho Commissioners TO
the Secretary Of State, TO be by him laid before
the General Assembly. The remaining half Of
said capital shall be paid in within six months
from tic time the Bank shall commence opc-
rations. The payment of the whole shall be
effected within one year from the date of the
act of incorporation, otherwise tho charter OF
the Bank shall he forfeited.
SEC. g. The capital stock Of any bank shall
not be reduced by division of any part of tho
Same without the consent of the General As
senib V. And if by reason of losses the capital
sock of any bank shall be diminished ono
fourth part or more OF the whole sum fixed by
the charter of such Bank the eamo shall DO
filed up to its original amount within one year
after such loss shall havo been incurred Any
violation ofthc provisions of this section, shall
work forfeiture ofthc charter Of the offend
ing bank
SEc 6. No bank shall be removed from the
town or city whore it is located by is charter
Nor shall any bank establish any branch, office
or agency thereof. for discount, in any other
place than that in which such bank is located,
unless by permission of the General Assembly.
Ifany bank shall violate the provisions Of this
section, its charter shall be forfeited.
SEC. Z. No person shall be director Of any
bank unless he be stockholder therein, and n
cisizcn of and resident in this State unless in
cases where it is otherwise specially provided
for.
SEC. 8. No person shall, alor thirty days
from the rising ofthis Geleral Assembly, cNcr-
else or perform the duties of President Dress
tor or Cashier Of any Bank in this State, ,unloac
he shall have been sworn or affirmed before
competent magistrate, faithfully to discharge
the duties Of said Office according TO law, and in
his said capacity to abide by and support the
laws regulating the interest of money. And in
case any person shall after said time, exercise
either of said Offices without being sworn or
affirmed as aforesaid, the person offending
shall forfeit and pay the sum of one thousand
dollars, to bc recovered by an action of.dcbt in
the name of the GencIal Treasuror, before any
court proper TO try the same.
SEC 8. The NINTH tenth, and eleventh sec
lions, and the thirteenth section, as far as the
pIoviso, of the act entitled I" an act TO regulate
process against banks, and for other purposes
therein mentioned" are hereby repealed, and
from and after the pussago hereof, all debts due
TO, or from any bank, by bond, bill, note oI
otherwise, shall be recoverable in tho same
manner as arc debts due to, or from individuals
within this State, except as is hereinafter pro
vided, and not otherwise provided noverthe
less. that every bank shall continue TO have th,
remedy provided for in said ninth section for the
recovery of all debts contracted herewith, o
actually owing TO the same, bofor tho passag,
hereof and all renewals thereof in the Same