Constantine republican. [volume] (Constantine, Mich.) 1836-1838, 1837-07-05
LAW FAvORING THE BANKS,

iio"oo ~ ite"co o"tudCtS " WC ptutc OF
Michigan, That every provision of the law
in force, requiring or authorizing proceed
ings against any bank in this state, with q
view to forfeit its charter or wind up its
l concerns, or which requires such bank to
Suspend its operations and proceedings, in
consequence Of refusal to pay its notes
or evidences Of debt in specie, is here
by suspended, until the sixteenth day of May
next.
p. In cases where notes or drafts dis.
counted at any bank, which shall avail it.
self Of the provisions of this act may be put
in suit, it shall be competent for the maker
or endorsers of such notes or drafts, to set
off the notes of such bank in discharge of
the notes or drafts so discounted in whatev-
er name the same may be sued and to
this end the officers of all such banks are
required to endorse upon the notes or drafts
so discounted by them the name of the
bank discounting the same and when dis.
counted: Provided, That this section shall
not be construed to exempt the defendant
from all costs of suit accruing previous to
the pleading of such set of, unless the
notes so set off were rendered either by the
makers or endorsers Of said note or draft,
previous 10 prosecution.
3. The amount of notes or bills issued
and in circulation Of the several banks Of
this state shall not hereafter exceed the fol-
lowing amounts respectively 4: those hav-
| ting capitals paid in to theamount Of 5000
circulation of 100000; those having CAPT.
tails paid in to the amount of $4,000, q
circulation of $4,000 those having cap
ltals paid in to the amount of $4,000, a
circulation of $4,000; those having cap
as paid in to the amount Of Ss65,0O0, q
circulation of $4,000; those having cap
itals paid in to the amount of 100000, a
circulation of $4,000 those having cap.
itals paid in to the amount of Ss150,O0O, a
circulation of $4,000 those having cap
itals paid in to the amount of 100000, a
circulation of 100000; those having cap
itals paid in to the amount of Ss250,000, a
circulation of $250,000 those having cap
itals paid in to the amount Of 100000, a
circulation of 100000; those having cap
itals paid in to the amount of 100000, a
circulation of 100000 those having cap
itals paid in to the amount of $450,000, a
circulation of SS450,000. But in all cases
where a bank has branch located at ano-
Their place, that portion of the whole capital
actually employed at each place of bust
ness, shall be taken and deemed the cap
ital thereof, under the provisions of this Sec
ton.
4. No such corporation shall directly
or indirectly divide, or pay to or among its
stockholders, or to any person for them, a.
ny dividends, interests or profits what
ever, until 1t shall resume the payment
of its notes and evidences of debt in spe-
Gle.
5. No bank, or officer, or agent of q
bank, shall, during the suspension of specie
payments by such bank, directly or indi-
rectly, sell, dispose of or part with at pre-
MUM, gold or silver bullion or specie, or
directly or indirectly purchase Its own notes
or bills, or the notes or bills of any other
bank at discount, or directly or Indirect
| ly, knowingly, furnish any person with spe-
Gle for the purpose Of purchasing bank bills
at discount; or directly or indirectly send
out of the state any bullion or specie and
every violation of this section shall be a
forfeiture of its charter: and it shall
be the duty of the bank commissioner, in
al! cases where he thinks the public good
requires it, to demand satisfactory security
of the direc tors of any bank availing it.
self of the provisions of this act, for the re-.
demption of its Lotcs in circulation and
if said directors shall refuse to give such
security satisfactory to said commissioner,
such bank shall be deprived of all benefits
proflered by this act, and said commission.
er shall forthwith proceed to wind up the
concerns thereof.
Sc. Each of the said banks shall trans.
init monthly to the bank commissioner and
to the secretary of state, statement under
oath of its condition, in such form as the
bank commissioner shall prescribe, alb.
stracts of which statements shall be publish
ed by said bank commissioner in the state
paper.
". No part of the income Of the shank
fund" shall be paid to the corporations by
which the said fund was created, until they
shall have resumed the payment Of their
debts in specie.
SO. This act shall not take effect in ia.
vor Of any bank not subject to the act en.i-
tied "An act to create fund for the bene-
fit of the creditors of certain moneyed cor.
porations," passed March %, 1886, unless
such bank shall signify its assent to the pro.
visions of this act, and of the last above
mentioned and referred to, so far as re-
CARDS the visitation Of the bank commits
sioner for the purposes specified in said
act and to ascertain their transactions in
the sale of specie or bullion, which said
assent shall be given within thirty days,
by an agreement under its corporate seal,
TO be deposited with the secretary of state.
so. 1t is hereby made the duty of the
bank commissioner, to require from the
presidents and cashiers of the banks of this
state, whose concerns he shall examine, an
; oath or affidavit that the bank under their
management is not directly or indirectly
concerned with, or connected in partner.
ship with any broker or brokers, or agen-
cy, whose business is the purchase of the
notes of the banks of this state or any 9th.
or state, at discount, or the selling of spc.
Gle at premium and if such officers of
any such bank or banks, refuse to make
such oath or affidavit, or if the bank com.
missioner is satisfied by proof that such
bank or banks is concerned with or
connected in partnership with any such
broker or brokers, or office or agency,
such bank or banks shall be deprived of the
49,, Good H., al, Il. 4