Burlington free press. [volume] (Burlington, Vt.) 1827-1865, 1840-12-04
NnB PRRSS
AN ACT-RrLArivo TO BASRs.


tate of Vermont, as follows;
SEC. |. ANY banking company chartered or re-
AharcJ nj the present session, or any future session.
hall be subject to tue pr1vlslons OF ts 'c. "nn .,
mend or repeal as the public good may require: ana
all be subject to the provisions OF the first twent
even, and the orcth and fotty-frst sections on l"e
eiphtrh chapter of the rvlscd staucs but shal moi
b. subject to the remaining sections OF sad clgneth
chapter except far as the same are re-tnnctcd u,
iii 3 act. Provided, that no such corporation snail
have accrued previous to their act OF incorporation or
re.charer by the failure of any sa,,y-iund bank
Sec2 No such banking company, Incorporated
Ms mentioned in the preceding section, snail make any
Loans DISCOUNTS or issue any bis Tor citcuauon,
until at least one half its capital stock shall nave bccn
pa.l into the bank in gold and SILVER and permanently
deposited for the Use of such hank; nor uniil the
amount shall have been nsctftc anu me ccriilchte
thereof oscd with the treasurer OF the state, as
provided in the succeeding section. And no such bank
shall continue to make loans or discounts tor longer
space than two years alter commencing BUSINESS nhuer
euch act of Incorporation unless ne whole OF 'hccap,
ita stock allowed in the charter shall have been paid
in subject to the provisions OF the succeeding section
SEC. 3. The commissioner appointed according TO
the provisions of the eghtcth chapter OF the revised
statutes, shall. on the application Of such banking
company, examine the amount paid for capita stock,
and ascertain by the oathS of MAJORITY OF the dircc-
tors that such money has been paid i'll by the stock
holders toward the payment OF their shares, and not
for any Other purpose, and that II Is intended thet the
same shall remain in said bnnl ms part of It's capital
stock and the commissioner shall make certificate
thereof To the treasurer of the state
SEC. 4. No such banking corpora'ion rc.chartered
as mrnt onei in the first section, shall continue III OPP
Grafton or take any benfi by of such rechar-
Ter, unless such corporation shall have remaining in
such bank or shall, cause to he paid into such bank
for capital funds which shall have been paid in under
its original charter and the amount asccrtalncd
AMI the certificate thereof deposited with The treasurer
according To the provisions of the preceding section
SEC. 5. Every such bauk whose chrrt"r shall he
extended shall with in one year after snch extension
taxes eff pay in all lis capital 10 be- asreraned and
ctrtiirI in the Uanner provided IN the third SECTION
provided that such corporation may reduce its capital
stock To any sum not below the amount actually paid
in Mt the ie of the renewal OF its charter and may,
with in year from the time If liz renewal file with
the treasurer Of the State certificate under the seal
OF the corporation setting forth the 10 which the
capital stock is to be reduced; ,nd the certified
after the filing of such certificate shall be taken to be
the amount ri the capital stock Of such bank
SEC. g. No part Of the c,plt, stock of any bank
shall, AT any time, during the period for which it is
authorized TO continue its banking operations be with
drawn from such bank.
SEC !. The stock, property, and concerns, Of eve
sucn bank, shall be managed and conducted by dl-
to such number, and appointed in such manner
the act Of incorporation shall direct, who shall be
stockholders and inhabitants of the State, and shall
hold their Offices until others are appointed and quail.
fled 10 act; and majority of the directors shall be
required to consttu quorum.
SEC. s. The directors Of any such bank shall be
liable to pay tothe creitorS and stockholders of such
bank all losses which may he sustained in consequence
of any violation by by them of the prDvsions Of tins
net or of any other law or other uninthlnesan the
discharge Of thlir official duties and any number Of
such directors be sued IN the same acton by any
cni,uant under the provisions of tins section.
Src. g. Further to secure the liabilities mentioned
in the eighth section, each Of the directors Shall exc
cute bond 10 the treasurer ut the State, m an equal
amount the aggregate amount of which bonds shall
b. equal to the amount of the capital stock actually
',id in, with condition for payment and discharge
: the liabilities mentioned in sad eighth section and
.ch bonds stall be secured by more su!licie,'
rc,ies residing in this State and not directors, or by
efficient mortgage ri real estate. 10 be examined ano
approved by the said commissioner and such bonds
shall he for the security, and may he prosecuted io
the benefit of any claimants under the provisions o.
the eighth section.
SEC. TO- Nolircctor shall enter upon. discharge
any Of the duties of his Office shall the bank g
into operation until such bonds shall have been exc
cutei and approved as mentioned IN the preceding
section.
SEC. II. Any director. who may have paid more
than his share of the Liabilities mentioned IN the pre-
cedin9 sections, may have any proper action, III law
equity, against such other dlyec,orsas shall no
have paid their full shares.
SEC. -. The directors after beng qualified to &C
as such, in the manner required nv law, may appoIn
Of their m nber 10 be president of such bank
anl may appoint and remove, n pleasure, cashier
and all other necessary officers and servants and fl
their compensation and make all other necessary by
avs and regulations not inconsistent with the act q
1corporalon or the laws o! ths State la regulated
|. The conduct and duties of he seNtia officers
?. The times and places Of holdingrHn the n'aLhe
of notifying the meetings Of the directors and OF tn
corporations;
g. Ths terms and conditions on which all loans an
discounts shall he madc,nnd other negotiations OF tn
corporation shall be transacted:
A. The disposition Of the stock property ana clirct
OF said corporation;
s. The election of directors and filing vacancies i:
that office;
An all other regulations necessary to the proper mar
agement Of the business Of the bank and to carry int
ei,ct the pur noses OF ITS incorporation
SEC. ID. The cashier of the bank shall he reqnirc'
h,f,lr he tel :,
bond - the Treasurer of this State, with sufficient 81
rcties, 20 he approvedh by the bank commissioner,
the sum Of not less thin twenty thousand dollar
CONDITIONED for the faithful discharge OF the duties
his office: which shall be for the security and may
prosecuted for the benefit not only Of the corporate
bu. of all others interested.
SEC H. Any such bank may loan and negociatc'
money and effects by dlscoun'ing on banking prime
pies, upon such security as the directors shall dee
cxpedient; and dividends OF the profits OF the ban
may be made by the directors every SIX months.
SEC L. Such corporation shall not receive Or d.
mand any greater interest or discount on any not
socuryhnn at the rate Of six per cent per annn'
but such discount may he CalculatcG taken accordii
70 the established rules of banking.
SIC. l6 No such corporation SHALL dlrccllyor Il
directly, employ in trade or commerce., or dcal
trade in buying or selling any goods chat't
wares m rchnndlze: PROVIDED that sucn corpo!
ton may sell al! kinds of property which shall con
into its possession in the ordinary cole ton OF It's del
SEC. II. M t,ckholdrr, director, or other oiic,
shall at any tine, he, either directly or ndirectl
per cent Of the capital stock actullly PAD ln nor s
any individual, company or corporation other TN
zach stockholder director or other officer be at NJ
one time indebted 10 any bank in greater amou
than the sum Of ten per cent Of the capital stock
raid in, except for depositcs made by such Lark
the purpose of Iedccmnng Their bills at the place
such redemption, or on the purchase of bills OF ,
change; aul all the directors and other officers sh
not, Mt any one time, he directly or indirectly, n.e
ed to the b1nk ~ greater amount Than the nEg
r1,e amount of three per cent. OF such capital so'
for each director.
bSEc L. No such bank shall issue bils or 9th
wise contract debts 10 greater amount than
amount Of Tie drposes and twice the amount OF
capital stock actually paid in ut the violation of 4
provision shall not avoid any contract, or be constr
10 prevent the collection Of any debt contracted
such bank.
SEC 10 All the bills and notes Of such bank s
hc deemed to be payable at such bank and shall n,
times be received by said bank, on all judgements,
ecn,ions. or demands made payable to, or the prop
~ of, such bank.
SEC. 90 If the officers of any such bank shall
fuse on delay payment, in gold silver money of n
bill or note Of such hank, presented for payment
their usual hours of business, the said bank shall
liable to pay the holder Of such bill or note dan
pes at the rate Of twelve per cent. year for the ii
~ dol.