Constantine republican. [volume] (Constantine, Mich.) 1836-1838, 1837-03-22
Act to organizes or regulate Banking As.
Socidtions in Michigan.
March IA, 1887.


We had intended to lay before our readers 70.
day, this most important measure, but we have
not found it practicable to do so. The following
is a synopsis of its general features.
The preliminary steps for the formation Of any
of the associations contemplated in the act, arc
by at least twelve resident freeholders of Coun-
ty making written application to the Treasurer
and Clerk Of the same, stating the capital stock
of the association sought to be formed, and tho
place where it is to be located in tho County
On this being done, the Clerk and Treasured arc
to give thirty days public notice of the fact sot
ting forth the terms of the application.
Tho Capital stock Of any association is not to
be less than $4,000, nor moro than 100000.
II is to be divided into shares of fifty dollars each.
At the expiration of thirty days, the Treasur-
or and Clerk are to open subscription books pur-
suant to notice. Before subscribing, the appli-
cants must appoint Treasurer, who is required
to give bond of $50, 000 with sureties to be ap-
proved by the Treasurer and Clerk, conditioned
for the faithful performance of his duties as pre-
scribed in the act.
No one person is allowed to subscribe for moro
than one tenth of the whole capital stock of any
association. Every person before subscribing
must make oath, that the stock for which he in
tends to subscribe is for his own use or that Of
the firm Of which he is a partner, or for persons
whom no represents as agent or attorney.
ten per cent in specie, ON the amount subscribed
| for, which amount thus paid in the Treasurer is
required to pay over to the Cashier Of the Insti-
tuition on the order of the President and Direc-
tors--a failure to pay over in five days after de-
mand, is declared misdemeanor, and punisha-
| bic by fine or imprisonment or both.
If more than the capital stock of ony associa-
ton is subscribed for, the Clerk and Treasurer
are required to distribute it in proportion to tho
number Of shares subscribed. No person how
ever, is to receive less than FIVE shares if he SUBJ
scribe for SO many. The expenses to be paid TO
the Clerk and Treasurer for opening books, &c.
| which are not to exceed three dollars per day.
are to be paid by the association if it goes into
| effect, but by the applicants fit fails.
Whenever the capital stock is subscribed for,
pursuant to the act, the Clerk and Treasurer ars
required to call meeting of the subscribers first
giving thirty days notice and lay the books before
| them. Whereupon the stockholders are author.
zed to elect nine Directors, who must be stock
| holders and residents of the State, and fivo Of
| them to be residents of the County where tho
bank is to be located. They arc also empowered
| TO elect one of their number President
| The association when duly organized is do.
clarcd to be body polite and corporate and by
such name as they may adopt, may sue and DO
sued and enjoy the usual legal rights Of corpora
tions.
Whenever the President and Directors shall
have complied with the conditions of the act, the
Treasurer and Clerk Of tho proper County, arc
required to transfer statement Of the fact to tho
! Secretary of State, with a particular statement
of tho capital stock, the of the association,
i its location, &c. which statement the Secretary
| is to publish in one or moro of the papers, au-
thorizcd to publish tho laws.
Before the bank can commence operations, at
least thirty per cent. Of its capital stock, must
be paid in, in specie. One third of the capital
stock must be owned and continue to be held BY
residents of the County in which it is established
| -Chippewa excepted. Ten por cent. in addition
is to be paid every six months, until tho whole
capital stock is paid in.
Before business is commenced, the President
and Directors arc required to give security ITO be
approved by the Clerk and Treasurer,) to the peo-
pie of this State conditioned lin case of failure Of
other liablties) for the payment of the debts and
redemption of the notes of the institution. The
security is to be in the full amount which the az.
socation shall DO authorized to owe or have in
circulation, and Is to consist of bonds and mort
cages upon real estate within this state, or bonds
executed by resident ffeeholders of this state
The bank commissioner may require the security
to be changed or renewed whenever he may con-
slider the public safety demands il.
The Directors before entering upon their duties
arc required to take an oath that they will con-
duct the institution according to law, &c. They
are to furnish tho bank commissioner semi-annu-
ally, and otner If tho Legislature shall require it..
with true and detailed statement OF It's affairs,
and also cause the Same to be published in some
newspaper published within the state
The books, papers &c. Of tho corporation, are
to be at oil tinios open to tho inspection of any
person or committee appointed under authority
of the Legislature; and II lie msde the duty ofths